Angus Energy PLC (AIM: ANGS) said it will hold an investor presentation following a £3 million fundraising and restructuring that it said has strengthened its balance sheet and simplified its capital structure.
The company said the restructuring crystallised royalties, converted deferred consideration into equity and removed a number of legacy liabilities and equity overhangs.
Investor Presentation Following Proposed Restructuring and Fundraising
- The £3 million fundraising combined institutional demand through the placing with significant participation from existing major shareholders and the Board through direct subscriptions, demonstrating broad support for the Company’s next phase of growth.
- The restructuring has materially strengthened the Company’s balance sheet through the crystallisation of the overriding royalty, conversion of deferred consideration into equity and simplification of the capital structure, removing significant legacy liabilities and equity overhangs.
- The revised financing structure enables Angus to fund its operating expenditure, capital investment programme and corporate overheads while maintaining a prudent liquidity position. Surplus cash is then applied to reducing debt, strengthening the balance sheet and increasing value attributable to shareholders over time, while the Company retains the flexibility to fund its growth strategy.
- Production has increased following the successful Saltfleetby workover programme, with further growth expected from facility optimisation, the Brockham workover and the planned fourth Saltfleetby well.
- The roll-off of legacy low-priced gas hedges, together with replacement hedges entered into at significantly higher prices and increased production, has materially improved hedge-adjusted revenues and cash generation.
- With a stronger financial platform, aligned stakeholders and established operating infrastructure, Angus is well positioned to deliver organic production growth alongside disciplined, value-accretive acquisition opportunities.
Angus said the revised financing gives it funding for operations, capital investment and overheads, while preserving liquidity. The company also expects to use surplus cash to reduce debt.
Operationally, Angus reported increased production from the Saltfleetby workover, with further growth expected from facility optimisation, the Brockham workover and a planned fourth well at Saltfleetby.
The company said the roll-off of lower-priced gas hedges and their replacement with higher-priced hedges, combined with increased production, has materially improved hedge-adjusted revenues and cash generation.
Angus said the improved financial position gives it a stronger platform to pursue organic growth and consider value-accretive acquisitions.
For further information please visit www.angusenergy.co.uk.
