Shares drop again as Angus Energy acquires 100% of Saltfleetby gas project for £14m+

Angus Energy announced today it had bought out its partner in the Saltfleetby gas field in Lincolnshire for more than £14m.

Shares in Angus Energy, 24 May 2022. Chart: London South East

The deal, which gives Angus a 100% interest in the field, saw the company’s shares fall for the second day.

Yesterday, the market dropped 6% following news that oil production had resumed as the company’s Brockham field in Surrey.

Today, shares were down 15.69% at the time of writing on the £14.052m deal.

Angus said it had agreed to acquire the remaining 49% shareholder in Saltfleetby from Forum Energy Service Limited.

Details of the deal include:

  • £250,000 to be paid in cash on competition
  • Issue of 91 million ordinary shares at £1.098 on completion
  • Issue of 546,000,000 ordinary shares at 1.2p
  • Up to £6,250,000 deferred consideration to be paid in instalments up to 31 March 2025

Angus Energy’s chief executive, George Lucan, said:

“An opportunity has arisen to consolidate our partners’ 49% holding in the Saltfleetby asset for up to £14.052 million which represents a significant discount to the October 2021 P90 valuation of our own 51% interest at £25.4 million.”

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