28th Mar 2023 18:36
(Alliance News) - Angus Energy PLC on Tuesday said that in line with the well completed, coiled tubing operations are taking place this week at Saltfleetby.
It said these will be immediately followed by a short period of well testing before flowing the well directly into the process facility for export. Accordingly, the firm now expects first export during the week of April 7.
Angus Energy is an AIM-quoted independent onshore energy transition company. The Saltfleetby gas field is its onshore licence in East Lincolnshire, UK.
The company has now entered into a GBP3 million junior debt facility to manage costs arising from the extended drilling operations as well as initial studies around the development of natural gas and hydrogen storage at Saltfleetby.
The bridge facility is provided by the company's shareholder Kemexon Ltd, and has an initial term of three months, extendable with the payment of a 3% roll fee for a further three months.
Angus assured investors on Tuesday that it will resort to equity finance only to support accretive acquisitions or projects.
Revenues from the existing operations and the sidetrack are expected to repay both the senior and junior facilities.
"This bridge facility demonstrates the strong support for Angus that exists as well as our commitment to our shareholders to deliver growth and shareholder returns through share price appreciation and distributions. With the new SF07v well expected to come online shortly, the company's financial position is strengthening and we will be able to access lower costs of funds," said Executive Chair George Lucan.
"Angus is positioning itself as a global player in the aggregation, production, and storage of gas and transition fuels. We are grateful for the continued support of our shareholders, like Kemexon, which demonstrates a clear institutionalisation of our shareholder base and long-term support for the company."
Angus Energy shares closed flat at 1.60 pence each in London on Tuesday.
By Holly Beveridge, Alliance News reporter
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