Angus Energy raises £3m through share placing

Angus Energy has raised more than £3m though a share placing, as part of plans to acquire a 51% interest in an onshore gas field.

The AIM-listed oil and gas producer raised £3,010,050 by issuing new ordinary shares at a price of 4.25p each on Tuesday morning. The placing was intended to raise between £3m and £5m.

Angus Energy has already agreed outline commercial terms to buy a 51% stake in the licence and operatorship of an existing UK onshore gas field for £1.0. The fund raising, it said, would allow it to progress “due diligence on the potential acquisition target”.

Angus said the gas field had been in production “on and off” for 20 years and had eight surface wells already drilled; seven were completed and ready for production. It continued: “Historical records indicate that 67bn cubic feet of dry gas, and 1.1m barrels of condensate, have been produced during the 20 year period which, records suggest, represents 60% of the gas in place.” Angus believes a recovery of between 70% and 80% is “achievable”.

The funds will also be used to support ongoing works at its Brockham oil field, forthcoming works at the Balcombe field and a seismic overview of Lidsey field.

Shares in Angus, which debuted on the London Stock Exchange's junior market in 2016, were down 16% at 4.32p by 1015 BST.