Angus Energy plc has signed an agreement to acquire the remaining share from its joint venture partner in the onshore Saltfleetby gas project in east Lincolnshire.
SUBSCRIPTION
The company will acquire the entire issued share capital of Saltfleetby Energy Ltd (SEL), which owns a 49% working interest in the project, from the seller Forum Energy Services Ltd.
To support the acquisition, Angus said it had arranged a discounted direct subscription with affiliates of Aleph International Holdings (UK) Ltd for 546 million ordinary shares in Angus at a price of 1.09896011 pence.
The sum of £6 million will be split into an initial unconditional tranche of £3m and a second of £3m, conditional on shareholder approval.
Angus will pay a total of £14,052,000 comprising £250,000 on completion and the issue of 91 million ordinary shares at 1.09896011 pence per share.
The company will also issue and allot 546,000,000 ordinary shares at a price of 1.2 pence per ordinary share at completion.
Up to £6,250,000 deferred consideration will be paid in instalments from net cash payments to Angus Energy from the project through to 31 March 2025.
POST ACQUISITION
Following completion of the acquisition, Angus will own a 100% working interest in, and continue to be operator of, the Saltfleetby licence.
Forum will hold 637,000,000 ordinary shares in Angus representing approximately 28% of the enlarged issued share capital and just under 25% of the enlarged issued share capital following the issue of the secondary subscription shares.
Chief executive George Lucan said that progress at Saltfleetby was “excellent” with all major equipment on site, electrical and pipework tie-in underway, and select dry commissioning started.
“With a conservative estimate for wet commissioning we are confident of being able to make initial nominations, or first gas, toward the middle of June.
“We aim to focus on new opportunities as soon as this milestone is achieved.”
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