WTI (Jan)* $59.00 +90c, Brent (Jan) $63.38 -13c, Diff -$4.38 +31c*
USNG (Dec) $4.47 -8c, UKNG (Dec) 80.08p -1.5p, TTF (Dec) €30.425 -€0.635
*Denotes expiry of WTI December contract

Oil price

Oil has fallen today, yesterday was mixed, WTI expired quite well but the US plan for Ukraine appears to be a bit one sided in favour of Russia, an end to sanctions may not be imminent but the market is cautious.

Angus Energy

Update on Potential Acquisition, Financial Restructuring and Suspension of Trading on AIM

• Due diligence completed on the potential acquisition of an attractive portfolio of producing assets in the Gulf of America as announced on 19 May 2025.
• Introduction of an experienced US based third-party operator to manage the project, enabling Angus to focus financial and human capital efficiently, reduce operational risk and enhance potential returns on investment.
• Board now pursuing a strategically advantageous minority, non-operated interest, expected to deliver enhanced returns on capital while significantly lowering capital and operational commitments.
• If terms are agreed, the transaction is no longer expected to constitute a reverse takeover, streamlining the process and reducing regulatory complexity.
• Constructive debt-restructuring discussions with Angus creditors continue, with momentum and progress achieved.
• Given the ongoing financial uncertainty, suspension in trading of the Company’s shares to remain in place pending a satisfactory conclusion of the financial restructuring.

Potential Acquisition

During the comprehensive due diligence process, the Board recognised the complex nature of the operations offshore in the Gulf of America and the Company’s existing financial and human capital constraints. As a result, it introduced and opened discussions with a specialist, experienced, US-based offshore operator to take forward the operations of the project. This step enables Angus to retain potential upside from the asset while benefiting from the proposed operator’s technical and operational capabilities and financial contribution.

Following the progression of due diligence (and subject to the vendor providing clarification on certain outstanding items identified during the process), the Board has determined that securing a minority non-operated interest represents the most value-enhancing and risk-appropriate structure for the Company and its shareholders. This structure would allow Angus to participate in the project’s potential returns with materially lower financial and human capital requirements and reduced execution risk.

Terms are still under negotiation between the relevant parties, however, the Board notes that, should an agreement for a minority interest be reached, and subject to a number of matters, including funding, the transaction is no longer expected to be considered a reverse takeover under Rule 14 of the AIM Rules for Companies, significantly simplifying the regulatory process and reducing associated costs and timelines. A further update on the target assets and the detailed terms will be provided should we reach final agreement. 

Finance Update

As previously notified, while the Company continues to meet its obligations to trade creditors, it has sought to defer and restructure its arrangements with three key creditor groups where payments are currently overdue, namely the senior debt provided by Trafigura (including amounts due in relation to crystallised and other hedging arrangements), the Overriding Royalty Interest in connection with the Company’s principal Saltfleetby asset and the Deferred Consideration due to Forum Energy Services Ltd. In aggregate, the total amount of debt being restructured is circa £29 million.

The Company confirms that positive discussions with the above-mentioned creditors remain ongoing, with the preparation of long-form term sheets underway which will underpin definitive agreements with the aim of creating a solid foundation for future growth. The Board is encouraged by the progress and momentum achieved. The Board reiterates that failure to reach a suitable agreement could create material uncertainty in respect of the Company’s ability to continue as a going concern.

The Company will update the market once terms have been agreed. In the meantime, the Board continues to prudently manage working capital in close coordination with its lenders.

Suspension of Trading on AIM

The Company’s shares are expected to remain suspended from trading on AIM pending the conclusion of its financial restructuring.

The Board remains committed to delivering a sustainable and value-driven strategy for the Company and will provide further updates as appropriate.

A good round up from Angus who can give some details of the flagged US deal as well as sharing the discussions with regard to debt restructuring. 

The company has announced that due diligence has been completed on a potential acquisition of a portfolio of producing assets in the Gulf of America, the board has stated that it is now pursuing a ‘strategically advantageous minority, non-operated interest, expected to deliver enhanced returns on capital while significantly lowering capital and operational commitments’.

The way that this looks to have been structured is quite smart, non-operated is clever, no one wants to do that job and the operator will manage the project leaving Angus to ‘focus on the financial and human capital efficiently, reduce operational risk and enhance potential returns on investment’.

Also good is that is not a reverse takeover, this simplifies things a great deal and reduces costs particularly in the regulatory area and also should shorten the process. The company also notes that it is discussions with creditors with regard to the debt restructuring with ‘momentum and progress achieved’ and the shares will remain suspended until these discussions are concluded. 

The company say that this is in order to create a ‘solid foundation’ for future growth’ which probably means that they plan further M&A activity once the debt is sorted and this acquisition is bedded down, they say that they ‘remain committed to delivering a sustainable and value-driven strategy for the Company and will provide further updates as appropriate’ which I like. 

When all these matters are sorted and the shares return from suspension there is every chance that Angus will look a very interesting play, I look forward to seeing how it pans out but shareholders have every right to be optimistic. 

Prospex Energy

Prospex yesterday provided an operational update on the Viura field in northern Spain.  The operator of the Viura field is HEYCO Energía Iberia S.L.

Prospex owns 7.24% of the Viura field through its ownership of 7.5% of HEI.  Prospex is accruing 14.47% of the production income from the Viura gas field until payback of its initial capital investment (expected to be ≈£8 million) plus the accrued 10% p.a. interest thereon.

Viura Operational Highlights

• Steady production from the Viura Well at a gross plateau rate averaging more than 190,000 scm/d (≈6.6 MMscfd) in line with expectations.
• Average production rate net to Prospex at 14.47% is more than 27,100 scm/d (≈1 MMscfd).
• Water production has reduced to an average of less than 10 cubic metres per day which equates to an average of ≈9 Bbls/MMscf.  This improved performance is a direct result of the new completion installed earlier in the year.
• The operator is working on the reprocessed 3D seismic database with a view to optimising the structural model so that a reserve report can be commissioned to support a debt facility to fund the development wells now scheduled in late 2026 or early 2027.

Mark Routh, Prospex’s CEO, commented:
“I am pleased to report that after a month of gas production from bringing the Viura-1B well back online on 17 October 2025, the well is producing gas at a steady plateau rate of more than 190,000 scm/d with a reduced water cut on account of the newly installed well completion.  This confirms our long-held view that the Viura field is a strongly performing asset and that the recent production outage was an anomaly.

“Subsurface studies are ongoing with the objective to independently verify the gas reserves in the Viura field to support a debt facility for future funding of the development wells.  Further months of production at this stabilised plateau rate will further enhance viability of an independent reserves report.”

Time will tell but Viura appears to be producing well enough but the market is yet to be convinced, the recent small rally has not followed through. Should the rate stay positive it will lead the company to debt financing the next wells and hopefully on the back of a decent CPR, watch this space…

Original article   l   KeyFacts Energy Industry Directory: Malcy's Blog