Industry

Angus to borrow £12m for Saltfleetby

Current facilities at Saltfleetby site B. Image: Angus Energy

Angus Energy is looking to borrow up to £12m to redevelop the Saltfleetby gas field in Lincolnshire.

The debt will be secured against the field, Angus said in a statement this morning.

A separate statement confirmed that the company had raised £1m in a placing of more than 111 million shares. This would be used for a working capital contingency fund required by debt providers, it said.

Angus has a 51% stake in Saltfleetby and was approved as operator in December 2019. The remaining 49% interest is held by Saltfleetby Energy Limited, the new name of the former operator, Wingas. The field stopped production in 2017 when a nearby terminal closed.

The new loan would be serviced by cash from the sale of gas when flows recommence, Angus said. It would be spent on:

  • Pipeline installation and connection to the National Transition System – £1.8m (£1.1m spent so far)
  • Gas processing facilities – £5.7m
  • Site preparation, planning and contingencies – £1.6m
  • Reserve for sidetrack drilling planned for 2021 – £2.4m
  • Reserve for field abandonment – £1.5m

The company said estimates made in March 2020 for capital expenditure of £1.7m for the processing had “proved to be inadequate”.

Angus said it had hoped to use North American certified high-pressure gas equipment but discovered that the cost of recertification for use in Europe would be “prohibitive”. It said it now planned to buy all field equipment, rather than have a mix of leasing and purchasing.

The total number of shares in Angus now stands at more than 715 million. At the time of writing, the share price was down 9.45% at 0.91p.

The company has now used most of the authority given to directors in March 2020 to issue ordinary shares. It said it may need to allot further shares and will arrange a general meeting to agree this.

  • Angus managing director, George Lucan, will be answering questions on an investor conference call at 5pm on Thursday 24 September 2020.

6 replies »

  1. So, Jono is upset that Angus are investing more into UK business than they first considered.

    Yep, there are a few who are against investment by UK companies within the UK. Good job they are a small minority.

    Strange though, how the antis seem to gravitate to that minority viewpoint, and then ignore the repeated $BILLIONS loaned by Tesla to try and take it to the repeated promised land of making a profit. Same people who criticize the salaries of company employees who have yet to deliver a profit-with the same myopia.

    Great news from Tesla yesterday!?-Jono. And $50 BILLION was knocked off the company value, as a result. Looks as if markets are suspicious of promises from all quarters.

    (Bit of an aside, but how many people in UK want to “drive” a car which is fully automated to drive itself? I think there is that option available already. They are called buses/taxis/trains. What is possible is not the same as what is desirable. Keynes Law-demand creates it’s own supply-not the other way round. Do it the other way round and many years later still having to raise funding.)

  2. Good grief Martin Collyer “… demand creates it’s own supply-not the other way round. “!
    Where have you been burying your head while the advertisers sell stuff nobody ever thought they wanted?

  3. Well, Deborah, if people buy stuff there is a demand! No one is forced to buy, unless they have a situation where the product is life sustaining. You were not forced to buy your means of communicating in the middle of the night, but obviously decided that either your communication was vital to humanity, or you wished to support the fossil fuel industry. Maybe you imply that “advertisers” had some control over you? Depends on how gullible people are for that to occur. Where people are not gullible, advertising informs people of choices. (The advert with the attractive model in swimwear may make the gullible think they will look the same if they purchase, but will make the majority consider buying because the swimwear is to their liking and they noticed the product because it was attractively presented.) The vast majority are NOT gullible, so advertising to the gullible is hardly mainstream. But, yes, the gullible are present and some will take advantage of them. This is a good place to observe that.

    Me burying my head? Well, I qualified in marketing and advertising many years ago and then worked within that sector for many years. I would suspect I posted with a lot more experience of the subject than yourself. But, don’t let that bother you. There are quite a few antis who repeatedly post around subject matter without knowledge or experience, and then are surprised to find on an open forum that there may be some who offer the reality. Shocking!? Not really. Same in any pub, any time.

    Try living in N. Korea and you can enjoy the delights of Says Law, where supply does create demand in most situations. Or any country where supply of even basic items of food may create riots. In western countries, Says Law disappeared from serious consideration around the late 1940s.

    Or, you can just look at the antis trucking around in their diesels to various gigs and observe Keynes Law. The supply for that demand being created, oil companies supplying it!

    Ironic really.

  4. Well, Martin, (he said, condescendingly), I rather suspect you are more gullible than you think. You certainly seem to have swallowed the ‘pro’s’ arguments hook, line and sinker. You might also like to consider that it is just possible (although perhaps unlikely) that your ‘reality’ might suffer from subjectivity just like that of lesser mortals such as myself. Not to deny that ‘reality’ exists: just that it might differ from yours. I’ve noticed that anyone whose conduct or beliefs differ from your own are styled ‘antis’ – proponents of negativity in contrast to your positivity. Give us a break!

  5. Please explain where my reality in my last post was not reality, 1720.

    Was it just easier to post a ramble?

    The only point Deborah had that was reality is that some people do purchase what others think they don’t want. In some cases that is correct as some people just want to purchase/shop. Interesting that if you watch a group of tourists from some countries where being able to purchase much a few years ago was an exception, many now follow the same pattern. So, as that develops the REALITY is that demand for stuff will continue to increase. Some may decide to buy a yurt, but many more will buy an airline ticket having escaped from the life of a yurt dweller. Maybe, as they become more “sophisticated” and have exhausted their desires to travel etc., they will decide to revert to yurts? A few may be, but to be replaced by many more who follow the same cycle.

    Come on iaith-try and be positive. No need to panic.

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