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Let's be courteous to the clearly very poorly informed. This from page 69 of the last FY report (and this had been announced several times before that):-
"24. Loan Payable
On 17 May 2021, the Group signed a Loan Facility, conditional on the setting of the hedge (see Note 25) and regulatory approval of the royalty from the Oil and Gas Authority, between Angus Energy and Saltfleetby Energy Limited and Mercuria Energy Trading Limited and Aleph Saltfleetby Limited as the co-Lender. The term of the Loan Facility provides for a four year amortisation loan facility of up to £12 million with a 12% margin over LIBOR, a 3% commitment fee payable out of the facility, a share granted of 30 million shares in Angus, issued over the life of the facility and an override of 8% of gross revenue following the repayment of the facility."
The last sentence is the one that those having done a bare modicum of research are referring to here.
How much have we made out of hedge2 hits?
I'm sure you can do the simple maths, Maddog? Or use Gallder's figures?
I'm failing to see the point you're obviously keen to make?
The reduction in the swap loss resulting from the changes to the swap schedule in Sept 22 and
new swaps in H1 23 are as follows.
SEP 22 £582,955 reduction in swap loss.
JAN 23 £813,603 reduction in swap loss.
FEB 23 £787,812 reduction in swap loss.
MAR 23 £956,825 reduction in swap loss.
APR 23 £603,941 reduction in swap loss.
MAY 23 £701,075 reduction in swap loss.
JUN 23 £700K estimate of reduction in swap loss.
Total is £5,146,002 reduction in swap loss resulting in an increase to profit of £5,146,002
There you go Maddog.... ty Gallder.
As I said, swap 2 will have been wildly profitable for ANGS over the Jan-Jun 23 6 months it was put in palce.
Now that makes sense, lol, hits
Thanks gallder, the was you posted shows the board what we are making from the side tracking and the s/p should rise with that info
Actually no it doesn't at all. Instead, Gallder's posted info shows the extra revenue that ANGS has benefitted from, solely because of the second hedge (which ends this month). It's got precisely nothing at all to do with the sidetrack.
(I don't understand why people find this so hard to grasp?)
Gallders figures would look encouraging apart from the fact that they are just hopes.
Note 25. Derivative Liability in the annual accounts gives details on this.
The first paragraph “METS will pay AWB3 the fixed price on the sale of gas from the field.”
Well they didn’t produce the gas for the secondary hedge in January, February, March and April!
The last paragraph
“In the event that the group does not meet its production timetable, the swaps will crystallise as a liability at the dates proposed of gas production in the swap agreements”
The guy who signed the contract has been selling all he can, They took the £3 million credit card rate loan out (why would they have needed too if this money was available) and we have the evidence from the £3 million mega placing payback and the £4.1 million derivative catch up due this month that the 1st missed hedge was crystallised as a liability.
I guess we will see in the half yearly at the end of the month?
HITS, I'm still pmsl about the 8% & 30m shares given to the lenders. Firstly you don't have to clear the loan say leaving 15% or £1.8m in the coffers with any interest Tax deductable. And the 30m shares out of 3,590m is only roughly 0.8% in issue. Now if Angus make 20,30 or 50m per year it's a drop in the ocean and will never effect the Company. Regards to the 2nd swap which you wasn't expecting, you have had yet another big slap after our finance expert GL covered the Companies back being a responsible Director. So I'm sure that GL being a Tax Law expert will take care of your friend Sonia, not bad from a so called uniformed poster using your Headmaster routine to belittle others. P.S. I didn't expect you to answer the positive side of the 2nd swap because it would make you cringe eh HITS!
WG/aka Joiler banned "wanting Angus to disappear asap" It's a pity you can't read this post having filtered me and all that, let's see which other ID you use to reply 54321 lol!
We can cherry pick possible reasons for a depressed SP/MC all we want, but the now producible reserves still have a bookable value of anything between 300 & 500m depending on what you use as an average to establish that producible value.
Before Angus went in to SLBY the reserves were deemed "stranded", so at best they only had an "in the ground" value, which normally is a tiny fraction of producing reserves, generally "in the ground" being anything from 3 up to 10% of their true production value, and that is more or less exactly what it has cost Angus "in total" to this point to both acquire and get it in to production.
It is about as good as it gets for Angus, a bargain on UK land, piped directly to the grid.
When the big guns behind the market decide to make this move, then it will do just that, at which point we will all change our questioning format to suit what is driving that.
I expect Angus is carefully managing the production, especially from B7T, and the reason for that condensate production that is virtually all coming from SU4 well is being naturally formed "as the reservoir pressure/temp lowers further into the "dew point", and by managing the flow of gas, the condensates are likely to continue to drop out from A2 & B7T (not produce condensate to surface) and SU4 will likely remain as the main drain of the condensate due to the trajectory of the producing wellbore, and the condensate production is likely to increase over the years, it could be that Angus even try to work over SU4 in the future to focus on condensate drainage from the reservoir to allow for strong gas production from the other wells.
I really don't deem the debt as some kind of significant issue for Angus with the good production rates seen and direct to grid sales based on a reasonable annual average pricing, it "may" be having a small weighting on current sp/mc, but if they are doing things the right way, and that is seen on paper once figures are released then happy days.
BV seriously? What are you talking about?
Yesterday (and to the amusement of many) you posted thus:-
"Lol point out where Angus give away 8% gross of " ALL THE SBY FIELD PRODUCTION" at the end of the loan."
So, since you were bizarrely ignorant of the terms surrounding the loan, I helpfully pasted directly from last year's FY report giving those terms and confirming the 8% of gross revenue override you knew nothing about.
Here's the phrase again, just for you:-
"...and an override of 8% of gross revenue following the repayment of the facility."
Separately, of course the 30m shares granted at the time the £12 million loan was taken is a complete irrelevance. No-one has ever claimed otherwise.
And of course finex is tax deductible, just like any other valid business expense. That's very basic stuff and taken for granted, so why state the obvious?
And finally, whyever would I not state how positive the 2nd swap has been for ANGS over the last 6 months? Of course it has... that's a fact and I at least consider facts to be important.
Sadly, you really are becoming more clownish every day that passes.
@Bubble/P2, although I largely agree (unsurprisingly). I suspect there may be a potential short-term cashflow issue between now and Sept, revolving around the £4.175m catch-up payment - which is probably the reason that ANGS took out that 3 month (extendable to 6 months) £3m bridging facility at an eyebrow-raising 19.5%.
However, taking a 2 or 3 year view, things look far rosier.
HITS, anything you say Headmaster. Now just to clarify that on the other site you call us "all mug punters and once bitten that you wouldn't spend any of your hard earned cash on Angus shares". Now that sounds like a grudge against the company after losing money in the past. I wonder how long it will take for you to have the post removed again to cover your agenda eh HITS!
HITS,
I agree, it is a little "eye watering" at that rate, but this is what happens since RBL (reserves based lending) was pretty much abolished, and that means minnows like Angus are always going to have to either place or take funding at unreasonable rates.
That said, taking the debt & dilution in to consideration, Angus has developed a significantly rosier future than what it was and what it had pre SLBY, be that through a bit of both luck & judgement from their side, and the weight of the old GL ways, I would take Angus today, all day, compared to pre SLBY Angus regardless of that significant dilution and debt.
I just hope they prove themselves much, much smarter with what they do going forward and how they utilize the benefits gained from SLBY, and don't return to Angus of old and basically squander it.
Bubble/P2, agreed, it's a much better prospect now even with the debt and dilution (because it's actually got a serious monetisable asset)...
...but also particularly because GL is no longer at the helm. That is an equally significant plus point in my book.
Great in depth analysis as usual . Very glad you are back. Many thanks. GLA
My 11:39 from yesterday........!
"Fortunately HITS.........!
we have "George Lucan is an experienced finance professional with over thirty years’ behind him in debt and equity markets" as our Executive Chairman.........! :)
All the best (hmmm.......! :()"
Chesh, you may appreciate this.
That quoted phrase of yours - which has been much bandied about over the years - sounds like marketing speak to me.
A well-known former boss of mine once told me that the most accurate definition of marketing he'd ever heard was "lying, but with style"...
...not to be confused with public relations, defined as "organised lying."