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Angus Energy completes financing for Balcombe acquisition
(WebFG News) - Conventional oil and gas production and development company Angus Energy has issued a £3m unsecured convertible security at an interest rate of 0%, completing the financing for its acquisition of a 25% interest in PEDL244 on the Balcombe Licence.
As a result of the acquisition, Angus Energy will assume control of all operations at the Balcombe Field Discovery, considered to be in the "sweet spot" of England's Weald Basin given its 568-metre thickness, on behalf of its partners, Cuadrilla Balcombe and Lucas Bolney.
The firm highlighted that all operations at Balcombe will be performed conventionally through the naturally fractured, Kimmeridge limestones without a need for hydraulic fracturing or "fracking".
Proceeds raised from the issue of the convertible security note, an interest-free, unsecured, unsubordinated obligation of the company convertible to ordinary shares issued by Bergen Global Opportunity Fund, will provide Angus with financing to complete the acquisition of the 25% interest in the Balcombe Licence.
Paul Vonk, Angus' managing director, said, "Unanimously supported by our board, this transaction is not only recognition of our ability to generate cash and maintain a low cost of capital within a flexible capital structure, but it fulfilled our goal, to the extent possible, to limit dilution for our existing shareholders."
"Our institutional financing partner understood the value of Angus Energy's Balcombe acquisition and the cash contribution of our current production levels, demonstrate our ability to not only produce oil efficiently but create long-term value for shareholders," he added.
As of 1620 BST, shares had shot up 19.14% to 7.30p.