Angus Energy has entered into non-binding heads of terms with Trafigura for a £20 million senior secured debt facility. The facility will be used to refinance existing debt, fund additional capex projects, and raise production at the Saltfleetby Field. The debt facility has a 5-year amortising term with a one-year repayment grace period and reduced cash sweep for accelerated repayment. The interest margin over SONIA is 8%, compared to 12% on existing senior debt and 15% on the bridge facility. Trafigura will act as the offtaker, and the existing hedge contract will be replaced with a fixed price offtake. The funds from the facility will also be used to accelerate work on gas storage feasibility and revise subsurface mapping. The expected closing date for the facility is in January 2024.
In addition, Angus Energy has appointed Ross Pearson, former Technical Director of Star Energy plc, as the lead on all wells and subsurface activity. Pearson will receive an options package of 25,000,000 options at 0.67p, subject to contract milestones.