Angus Energy reported today it has raised £7.1m in a share placing and subscription.
In a statement to investors, the company said the money would be used as working capital, to fund operations and to settle a hedge liability.
Shares in the company fell about 18% on the news. At the time of writing, they were down 16.67% at 1.55p.
The details of the fundraising are:
- £1.89m through the placing of 115m ordinary shares
- £3.7m through a subscription of more than 226m ordinary shares
- £1.5m through a further subscription of more than 89m ordinary shares, subject to approval of shareholders
The placing shares will be accompanied by the issue of 57.5m warrants. The initial and conditional subscription shares will be accompanied by the issue of 158m warrants.
Each warrant grants the holder the right to subscribe to one additional new ordinary share at the fundraising price, exercisable for three years. This is also subject to investor approval.
The 341m+ first tranche shares bring the total share capital in the company to more than 3.279 billion.
Angus Energy currently has two producing operations in the UK onshore.
The Saltfleetby gasfield in Lincolnshire reported production in September 2022, for the first time after a break of nearly five years. Data published by the North Sea Transition Authority recorded 3,580ksm of gas.
Angus Energy said today the upper sections of the new Saltfleetby sidetrack well (SF7v) had now been cased.
The well had been drilled to a depth of ,2492m, the company said. The reservoir was now due to be drilled for about 3,100m, starting on 5 January 2022. This work was expected to take about 10 days and would be followed by well testing and connection to the processing plant.
Also in early 2023, the company said it planned to run a second compressor at Saltfleetby.
At Angus Energy’s second site, at Brockham in Surrey, oil production resumed in June 2022. The most recent data, for September 2022, recorded monthly production of 49.9 tonnes of oil.
Earlier this month, DrillOrDrop reported that the Environment Agency had granted consent for importing radioactive liquid waste for disposal at Brockham.