Angus Energy plc today announced it was considering selling the company as part of a strategic review.
MARKET VALUE
The onshore hydrocarbon producer said that the sale of some or all of its interest (51%) in the Saltfleetby gas field, Lincolnshire was also under consideration.
Angus added it remained fully committed to achieving first gas at Saltfleetby as soon as possible.
It has also been addressing geothermal projects particularly in southwest England.
In a statement today the company said: “Even though progress in these twin goals is steady and sure, the board share the outlook of some of our shareholders that our market capitalisation doesn’t reflect the short-term value of existing hydrocarbon assets and their immediate cashflow potential and any long-term value in the company’s scaleable geothermal project.”
INDICATIONS
Angus added: “This valuation mismatch, also experienced by many other smaller energy companies, has resulted in a series of approaches with interest in, and in one instance an indicative non-binding offer for, some or all of the company’s 51% interest in the Saltfleetby gas field asset which is under consideration.
“Additionally, the board has received indications that certain parties may be interested in making an offer for the company.”
The company said it had to meet its responsibility to shareholders to evaluate any proposals.
“As such, the board has been considering options for the company with its advisers.”
Angus will review the strategic options which include, but are not limited to, a sale of the company which will be conducted under the framework of a “formal sale process” in accordance with the Takeover Code.
The company has appointed Beaumont Cornish as its financial adviser.
SHAREHOLDERS’ INTEREST
Chief executive George Lucan added that the market was attributing little value to hydrocarbon reserves in general, or for the immediate cashflow prospects of the Saltfleetby gas field.
“Accordingly, in the light of this and the interest expressed by other energy market participants, we think it in the best interests of shareholders to conduct this strategic review and formal sale process.”
SALTFLEETBY
Angus said it continued to make progress at Saltfleetby and was confident of “achieving first gas in a timeframe not materially different from that advised”.
It also expected another increase in the contingency for the project of up to 10% of the budget.
The company will issue a detailed week-by-week construction and commissioning timetable during January 2022.