Angus Energy confirms signing of finance facility for Saltfleetby

Angus Energy updated the market on finance and operations at the Saltfleetby Gas Field on Thursday, announcing that a £12m facility for the field’s redevelopment had been signed, the conditions fulfilled and the facility now available and being drawn.

The AIM-traded firm said both itself and Saltfleetby Energy had now secured all funding required to commission the plant by the fourth quarter of 2021, and achieve first gas by December.

By making the full £12m facility available immediately, Angus said it was able to bring forward plans for the side-track well, which would be fully funded from the facility, and increase production to the plateau rate sooner than expected.

With the financial, commercial and technical support of Mercuria, Aleph and its partner Albanwise Synergy, Angus said it was continuing its plan to redevelop the Saltfleetby Gas Field and develop ‘energy transition’ projects, with a particular focus on geothermal energy.

“£5.84m has currently been drawn down with the balance to be drawn over the coming weeks against invoices in line with the field development plan and the plans for the acceleration of production through the fast-tracking of the side-track well,” the Angus Energy board said in its statement.

“Simultaneous with drawdown, the company has hedged approximately 70% of the company's and its partners' share of future gas sales, estimated under a conservative projection, for three years beginning in July 2022, providing Angus with downside revenue protection, all the while allowing the company to capture upside in the event of higher gas prices.

“The average achieved price under the Hedge, including all fees, costs and charges, is 43p per therm.”

At 1516 BST, shares in Angus Energy were up 2.19% at 0.82p.