Two shareholders in Angus Energy have called a general meeting in a bid to remove the managing director, Paul Vonk, from the board.
In a stock market statement this morning, Angus said it believed Jonathan Tidswell-Pretorius, the operations director and former company chairman, had a “direct interest” in shares held by one of the shareholders, HSBC Global Custody Nominee (UK) Limited.
Mr Tidswell-Pretorius stepped down as chairman in July 2018 after questions were raised over his involvement in share transfers.
The general meeting, the date of which has not yet been announced, will be asked to remove Mr Vonk and appoint George Bingham and Adam Salim Habib.
In a statement, the Board of Directors said:
“Without reservation, the Board of Angus Energy views this General Meeting requisition as unwelcome and unnecessary. The Board strongly believes that the Company has planned a very productive year for the Company. Managing Director Paul Vonk has our full support.”
Angus also announced that non-executive director, Rob Shepherd had resigned from the board.
At the time of writing, shares were down 19.74% at 9.15p.
Angus also gave details of a new two-year £3 million loan facility. it said this would be used mainly to fund further activities at its oil exploration site at Balcombe, in West Sussex. (see more below)
The loan is at 0% interest but each advance of money has a 8.5% “implementation and commitment fee”. The loan companies also have the right to convert money loaned into shares.
The statement also referred to production plans for the Balcombe site, which Angus took over as operator from Cuadrilla in 2018.
The company carried out a seven-day flow test at the end of September 2018. It reported unexpectedly high levels of water coming to the surface. The first recorded flow included 22% produced water.
Angus said in October 2018 it believed that the horizontal section of the well had intersected a small high-pressure water zone.
But today, it said analysis of the water had shown high levels of salt and the water could be “unrecovered brine from previous activities at the site”.
“the Company believes that continuous oil with a low watercut can be produced from the Balcombe-2Z well under normal pumped production conditions and it now plans to demonstrate commercial oil production.”
The loan would be used to “support near-term planning and testing as well as a successive Field Development Plan submission”, Angus added.
The company confirmed that the flow test programme on the Brockham well BR-X4Z, targeting the Kimmeridge formation, resumed on 4 January 2019.
It added that the well was perforated before Christmas and logged.
Although the company does not have planning permission for oil production from the BR-X4Z well at Brockham, the statement added:
“A standard stimulation programme to bring the well into production, similar to the recent successful operations and testing programme at Horse Hill, is in progress.”
10/1/19 Edited to clarify that Angus do not have planning permission to produce from BR-X4Z