WH Ireland Ltd is acting as broker in relation to the Placing. A placing agreement has been entered into today between the company and the broker in connection with the placing.
The placing is being conducted, subject to the satisfaction of certain conditions set out in the Appendix to this announcement, through an accelerated book-build process, which will be launched immediately following this announcement. The funding will be conducted utilising the company’s existing share authorities.
Reasons for the placing and open offer
The funds raised are to be applied, after provision for general working capital, approximately equally to support ongoing works at the company’s Brockham asset, forthcoming works at the company’s Balcombe asset, a seismic overview of the company’s Lidsey asset and to fund the exploration of potential acquisition opportunities.
The principal acquisition over which the company is currently performing due diligence and for which outline commercial terms have been agreed, is the acquisition of a 51% interest in a licence and operatorship of an existing UK onshore gas field (the “Proposed Acquisition”). Whilst there can be no guarantee that the Proposed Acquisition will complete, and it is still subject, amongst other things, to due diligence, regulatory consents, legal opinion and execution of legally binding agreements, the Proposed Acquisition cost under discussion is £1.00.
The asset which is the underlying subject of the Proposed Acquisition (the “Gas Field”), has been in production on and off for 20 years and has 8 surface wells already drilled with 7 completed and ready for production. Historical records indicate that 67 billion ft3 of dry gas (and 1.1 million bbls of condensate) have been produced during the 20 year period which, records suggest, represents 60% of gas in place. The company’s internal estimates, which have not been independently verified but are based on generally accepted industry methodology, suggest that recovery of between 70% and 80% is achievable.
Commenting, George Lucan, Managing Director, said: “We continue to develop and improve our asset base in the Weald Basin and are very excited to bring this new opportunity to investors. Should the Proposed Acquisition proceed to a successful conclusion it would offer clear diversification benefits and the possibility of cashflow generating production without the near term need for further equity capital.”
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/02052019/angus-energy-announces-fundraise-and-open-offer-to-support-brockham-balcombe-lidsey-and-potential-acquisition/