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Andalas Energy & Power #ADL – Resignation of Director

Andalas Energy and Power Plc (AIM: ADL) announces the resignation of Dan Jorgensen as Finance Director of the Company with immediate effect.  Dan is leaving to pursue other private commercial opportunities.  He will assist the Company by providing on-going support as it transitions to a new arrangement, as detailed below.

FIM Capital Limited, the Company’s administrator, will take up the financial management functions which Dan had been responsible for whilst Graham Smith, a non-executive director of Andalas and the CEO of FIM Capital Limited, will assume responsibility for finance on the Board.

Simon Gorringe, CEO of Andalas Energy and Power PLC said: “I would like to thank Dan for his support and commitment over the last few years.  He has been a key member of our management team and will be sorely missed.  We wish him the very best in his future endeavours.”

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (‘MAR).  Upon the publication of this announcement via a Regulatory Information Service (‘RIS’), this inside information is now considered to be in the public domain.

For further information, please contact:

Simon Gorringe Andalas Energy and Power Plc Tel: +44 1624 681250
Graham Smith Andalas Energy and Power Plc Tel: +44 1624 681250
Roland Cornish/ James Biddle Beaumont Cornish Limited
(Nominated Adviser)
Tel: +44 20 7628 3396
Colin Rowbury Novum Securities Limited
(Joint Broker)
Tel: +44 207 399 9427
Christian Dennis Optiva Securities Limited
(Joint Broker)
Tel: +44 20 3411 1881
Stefania Barbaglio Cassiopeia Services Ltd Stefania@cassiopeia-ltd.com

Andalas Energy & Power #ADL – Holdings in Company

Andalas Energy and Power Plc

Holding(s) in Company

TR-1: Standard form for notification of major holdings

NOTIFICATION OF MAJOR HOLDINGS (to be sent to the relevant issuer and to the FCA in Microsoft Word format if possible)i
1a. Identity of the issuer or the underlying issuer of existing shares to which voting rights are attachedii: Andalas Energy & Power plc
1b. Please indicate if the issuer is a non-UK issuer   (please mark with an “X” if appropriate)
Non-UK issuer X
2. Reason for the notification (please mark the appropriate box or boxes with an “X”)
An acquisition or disposal of voting rights X
An acquisition or disposal of financial instruments
An event changing the breakdown of voting rights
Other (please specify)iii:
3. Details of person subject to the notification obligationiv
Name Optiva Securities Limited
City and country of registered office (if applicable) London, UK
4. Full name of shareholder(s) (if different from 3.)v
Name
City and country of registered office (if applicable)
5. Date on which the threshold was crossed or reachedvi: 19/03/19
6. Date on which issuer notified (DD/MM/YYYY): 29/03/19
7. Total positions of person(s) subject to the notification obligation
% of voting rights attached to shares (total of 8. A) % of voting rights through financial instruments
(total of 8.B 1 + 8.B 2)
Total of both in % (8.A + 8.B) Total number of voting rights of issuervii
Resulting situation on the date on which threshold was crossed or reached 9.82% 9.82% 603,970,301
Position of previous notification (if
applicable)

 

8. Notified details of the resulting situation on the date on which the threshold was crossed or reachedviii
A: Voting rights attached to shares
Class/type of
shares

ISIN code (if possible)
Number of voting rightsix % of voting rights
Direct
(Art 9 of Directive 2004/109/EC) (DTR5.1)
Indirect
(Art 10 of Directive 2004/109/EC) (DTR5.2.1)
Direct
(Art 9 of Directive 2004/109/EC) (DTR5.1)
Indirect
(Art 10 of Directive 2004/109/EC) (DTR5.2.1)
IM00B1FPZP63 59,292,583 9.82%
SUBTOTAL 8. A 59,292,583 9.82%
B 1: Financial Instruments according to Art. 13(1)(a) of Directive 2004/109/EC (DTR5.3.1.1 (a))
Type of financial instrument Expiration
date
x
Exercise/
Conversion Period
xi
Number of voting rights that may be acquired if the instrument is
exercised/converted.
% of voting rights
SUBTOTAL 8. B 1
B 2: Financial Instruments with similar economic effect according to Art. 13(1)(b) of Directive 2004/109/EC (DTR5.3.1.1 (b))
Type of financial instrument Expiration
date
x
Exercise/
Conversion Period
 xi
Physical or cash
settlementxii
Number of voting rights % of voting rights
SUBTOTAL 8.B.2

 

9. Information in relation to the person subject to the notification obligation (please mark the
applicable box with an “X”)
Person subject to the notification obligation is not controlled by any natural person or legal entity and does not control any other undertaking(s) holding directly or indirectly an interest in the (underlying) issuerxiii
Full chain of controlled undertakings through which the voting rights and/or the
financial instruments are effectively held starting with the ultimate controlling natural person or legal entityxiv (please add additional rows as necessary)
Namexv % of voting rights if it equals or is higher than the notifiable threshold % of voting rights through financial instruments if it equals or is higher than the notifiable threshold Total of both if it equals or is higher than the notifiable threshold
10. In case of proxy voting, please identify:
Name of the proxy holder
The number and % of voting rights held
The date until which the voting rights will be held
11. Additional informationxvi

 

Place of completion London, UK
Date of completion 29/03/19

Andalas Energy & Power #ADL – Result of EGM and Total Voting Rights

The Extraordinary General Meeting (“EGM”) for Andalas Energy and Power plc (AIM:ADL) was held today at 10.00am. All resolutions were passed.

Following the passing of the resolutions at the EGM, the Conditional Placing, as announced on 27 February 2019, was approved.

Accordingly, the Company has issued the conditional placing shares totalling 48,888,889 Ordinary Shares, which will rank pari passu in all respects with all existing ordinary shares in the Company, and has applied for Admission to trading on AIM of such shares with effect from 19 March 2019 (“Admission”).  Following Admission, the Company will have an issued share capital of 603,970,301 Ordinary Shares.

Simon Gorringe, CEO of Andalas Energy & Power PLC said: “With the EGM resolutions passed, we can focus on the Colter South discovery and new opportunities for the Company.   We believe that the market has undervalued the positive drill results at the Colter South discovery and the impact of the recently completed placing on the Company’s cash position.  The conditional element of that placing can now complete.  It will provide an additional cash injection at a time when the Company has no outstanding asset funding commitments.

“Our immediate focus is to continue to support the joint ventures’ evaluation of the Colter South discovery, which includes the assessment of the data from both the initial well and the side track as well as the data from the previous wells and seismic across the licence area over the coming weeks.   In addition we are currently reviewing a number of opportunities, which could create significant value for shareholders.  We look forward to updating the market in the near future as and when these opportunities develop further.

“In closing Andalas would like to take this opportunity to thank its shareholders and advisors for their continued support of the company as we continue to work towards our long term objective of building a substantial production and exploration company.”

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (‘MAR).  Upon the publication of this announcement via a Regulatory Information Service (‘RIS’), this inside information is now considered to be in the public domain.

Simon Gorringe Andalas Energy and Power Plc Tel: +62 21 2965 5800
Roland Cornish/ James Biddle Beaumont Cornish Limited
(Nominated Adviser)
Tel: +44 20 7628 3396
Colin Rowbury Novum Securities Limited
(Joint Broker)
Tel: +44 207 399 9427
Christian Dennis Optiva Securities Limited
(Joint Broker)
Tel: +44 20 3411 1881
Stefania Barbaglio Cassiopeia Services Ltd Stefania@cassiopeia-ltd.com

Andalas Energy & Power #ADL – Update on Eagle Gas Limited

Andalas Energy and Power Plc, the AIM listed oil and gas company (AIM: ADL), has been advised by Eagle Gas Limited (“Eagle”) that Holywell Resources Limited (“Holywell”), the operator of Southern North Sea Licence P2112 (“Licence”), and Atlantic Petroleum UK Ltd (“Atlantic”) have elected to relinquish the Licence.

Simon Gorringe, CEO of Andalas Energy and Power PLC said: “We are disappointed that the Licence will be relinquished.  However, whilst Holywell has undertaken discussion with a number of interested parties regarding participation in drilling the proposed well, it has been unable to secure a partner within the time permitted under the Licence and therefore it has no other practical course of action.  We remain interested in the Badger prospect and we will consider options to apply for a new licence.  In parallel Eagle will continue to pursue various other opportunities it is developing.

“We are continuing to assess new business opportunities and will make a further announcement as and when appropriate.”

Andalas holds 25% of the equity of Eagle which wholly owns Holywell.  Holywell owns 66.67% interest in the Licence and the remainder is held by Atlantic.

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (‘MAR).  Upon the publication of this announcement via a Regulatory Information Service (‘RIS’), this inside information is now considered to be in the public domain.

For further information, please contact:

Simon Gorringe Andalas Energy and Power Plc Tel: +62 21 2965 5800
Roland Cornish/ James Biddle Beaumont Cornish Limited
(Nominated Adviser)
Tel: +44 20 7628 3396
Colin Rowbury Novum Securities Limited
(Joint Broker)
Tel: +44 207 399 9427
Christian Dennis Optiva Securities Limited
(Joint Broker)
Tel: +44 20 3411 1881

Andalas Energy & Power #ADL – Update on Colter

Andalas Energy and Power Plc (AIM: ADL) has been informed by the Operator (Corallian Energy Limited) that the sidetrack well 98/11a-6Z has encountered the top of the Sherwood Sandstone reservoir below the level of the 98/11-3 oil water contact and did not penetrate the predicted fault bounding the target Colter Prospect.  The well will now be plugged and abandoned and the rig released.  Andalas has an 8% interest in Licence P1918, including the Colter Area Prospects.

As previously reported on 25 February 2019, the Colter well (98/11a-6) was drilled as a vertical well with the Ensco-72 jack-up rig and reached a Total Depth of 1870m MD in the Sherwood Sandstone. The well was drilled to appraise the 98/11-3 well, drilled in 1986 by British Gas, within the Colter Prospect. The 98/11a-6 well unexpectedly remained on the southern side of the Colter Prospect bounding fault but encountered oil and gas shows over a 9.4m interval at the top of the Sherwood Sandstone reservoir.  A petrophysical evaluation of the LWD data has calculated a net pay of 3m. Similar indications of oil and gas were encountered in the 98/11-1 well, drilled in 1983 by British Gas, within the Colter South fault terrace.  Provisional analysis of the new data indicates that the two wells may share a common oil-water-contact having both intersected the down-dip margin of the Colter South Prospect. The Operator (Corallian Energy Limited) gave its most recent assessment of the Colter South Prospect prior to drilling the 98/11a-6 well at an estimated mean recoverable volume of 15 mmbbls.  Further work will be required to refine this assessment with the new well data.

A decision was made by the Joint Venture to drill a side-track (98/11a-6Z) to the north to evaluate the Colter Prospect.  The well has now been drilled to a Total Depth of 1910m MD and encountered the Sherwood Sandstone below the oil-water-contact of the 98/11-3 well.  Initial evaluation of the data from both wells indicates that the Colter Prospect is smaller than pre-drill estimates.  The Colter South discovery remains an opportunity to evaluate further as it is now areally more extensive than indicated by the pre-drilling mapping.  In addition, the side-track encountered oil and gas shows in the Jurassic Cornbrash-Lower Oxfordian interval, the producing reservoirs in the Kimmeridge oilfield, and this provides an interesting potential target on trend to the west within the onshore licences held by the Joint Venture.  The data from these well results and existing data will be incorporated to determine the best forward plan.

The Joint Venture partners would like to thank the well operator Fraser Well Management, rig operator Ensco and all the many contractors who assisted with the drilling operations which have been completed safely in an environmentally sensitive area.

Simon Gorringe, CEO of Andalas Energy and Power PLC said: “The Colter appraisal programme has delivered a larger than expected Colter South prospect and significantly increased our understanding of the broader Colter prospect.  The results of the sidetrack does, however, indicate that overall the Colter prospect is smaller than initially expected, but the results from the drilling of the sidetrack did deliver encouragement for our adjacent onshore prospects from the good shows encountered in the Middle Jurassic. 

“The joint venture will now integrate the results of the programme into its evaluation of the way forward to commercialisation of the Colter prospect and the enlarged Colter South prospect.  We have now met our financial obligations under the farm-in agreement and there are currently no outstanding obligations under the licence.”

Qualified Person’s Statement

The technical information contained in this announcement has been reviewed and approved by Mr. Gregor Mawhinney. Mr. Mawhinney is consulting for Andalas, acting in the role of Vice President Operations.  He has nearly 40 years experience in the oil and gas industry, is a member of the Society of Petroleum Engineers (SPE) and a member of the Professional Engineers and Geoscientists of Newfoundland and Labrador (PEGNL).

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (‘MAR).  Upon the publication of this announcement via a Regulatory Information Service (‘RIS’), this inside information is now considered to be in the public domain.

For further information, please contact:

Simon Gorringe Andalas Energy and Power Plc Tel: +62 21 2965 5800
Roland Cornish/ James Biddle Beaumont Cornish Limited
(Nominated Adviser)
Tel: +44 20 7628 3396
Colin Rowbury Novum Securities Limited
(Joint Broker)
Tel: +44 207 399 9427
Christian Dennis Optiva Securities Limited
(Joint Broker)
Tel: +44 20 3411 1881

Andalas Energy & Power #ADL – Placing, notice of EGM and issue of consideration shares

Andalas Energy and Power plc (AIM:ADL) announces that it has conditionally raised gross proceeds of £1,000,000 via a placing (‘Placing’) of 222,222,222 ordinary shares of nil par value (“Ordinary Shares”) at a price of 0.45pence (the “Placing Price”) per Ordinary Share (“Placing Shares”), compared to the mid-market price of 0.575 pence at the close of business on 26th February 2019.

The Placing is split between a firm placing to raise £780,000 through the issue of 173,333,333 Ordinary Shares at the Placing Price (the “Unconditional Placing”); admission of the Unconditional Placing Shares is expected to occur on or around 5 March 2019; and a conditional placing to raise £220,000 through the issue of 48,888,889 Ordinary Shares at the Placing Price (the “Conditional Placing”); the Conditional Placing is conditional on the approval of Andalas Shareholders at an EGM to be convened shortly and further detailed below.

The net proceeds of the Placing will be used to fully fund Andalas’ participation in the forthcoming Colter side-track, as announced on 25 February 2019, working capital and to provide additional capital to continue the Company’s business development efforts as it looks to broaden its portfolio of upstream opportunities.

Simon Gorringe, CEO of Andalas Energy and Power PLC commented, “We are now fully funded to participate in the forthcoming Colter side-track, following the announcement on Monday which identified the additional Colter South prospect.  We have also secured support from new and existing shareholders for further upstream business development activity as we look to broaden our portfolio further, which we look forward to updating the market on in due course.”

Posting of Shareholder Circular and Notice of Extraordinary General Meeting (“EGM”)

The Placing is conditional on the Placing Shares, which will rank pari passu with the existing Ordinary Shares, being admitted to trading on AIM.  The Placing comprises a placing of 173,333,333 shares (£780,000) placed pursuant to existing authorities granted to the Directors (“Unconditional Placing Shares”) and a placing of 48,888,889 shares (£220,000) (“Conditional Placing Shares”).  The placing of the Conditional Placing Shares is also conditional on the Company passing at a general meeting such resolutions as the directors consider necessary to authorise and otherwise permit the directors and the Company to issue the Conditional Placing Shares.

The resolutions will be proposed at an extraordinary general meeting of the Company to be held at 10.00am on 15th March 2019.

A copy of the notice of EGM is expected to be sent to Shareholders tomorrow and made available for inspection at the Company’s registered office at IOMA House, Hope Street, Douglas, Isle of Man, IM1 1AP and on the Company’s website (www.andalasenergy.co.uk).  Shareholders should read the notice of EGM.

Application will be made to the London Stock Exchange for the Placing Shares to be admitted to trading on AIM.  It is expected that dealings in the Unconditional Placing Shares will commence on or about 5th March 2019 (“First Admission”) and that dealings in the Conditional Placing Shares will commence on or around 19th March 2019 (“Second Admission”) subject to the passing of the necessary resolutions at the EGM.

Warrants over 16,666,667 ordinary shares will be issued with a three year life and an exercise price of 0.45p per share will be issued in connection with the placing.  The issue of all warrants are conditional on the approval of increased authorities to be voted on by shareholders at the forthcoming Extraordinary General Meeting.

Issue of consideration shares

As announced on 25 July 2018, the terms of our subscription agreement with Eagle Gas Limited required that a further £100,000 of consideration shares would be issued when the licence was extended beyond 31 December 2018.  Accordingly 15,998,439 nil par value shares have been issued.  The number of shares was calculated by reference to the £100,000 contingent consideration and to the share price calculated as 90% of the volume weighted average price over the 3 trading days prior to 1 January 2019, being 0.625pence per share.

Following the admission of the consideration and unconditional placing shares Eagle Gas Limited is the holder of 21,880,792 nil par value shares (3.94%) of the Company.

Total voting rights

Following the admission of the unconditional placing shares and the consideration shares but before the Second Admission, the Company’s issued share capital will consist of 555,081,412 ordinary shares of nil par value (“Ordinary Shares”), with each Ordinary Share carrying the right to one vote. The Company does not hold any Ordinary Shares in treasury. This figure of 555,081,412 Ordinary Shares may therefore be used by shareholders in the Company, between the dates of First Admission and Second Admission, as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA’s Disclosure Guidance and Transparency Rules (“DTRs”).

Following the Second Admission the Company’s issued share capital will consist of 603,970,301 Ordinary Shares, with each Ordinary Share carrying the right to one vote. The Company does not hold any Ordinary Shares in treasury. This figure of 603,970,301 Ordinary Shares may therefore be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the DTRs.

The impact of the consolidation on the total voting rights of the Company is analysed below.

EXPECTED TIMETABLE OF PRINCIPAL EVENTS

Announcement of the Placing 27th February 2019
First Admission and commencement of dealings in the Unconditional Placing Shares on or around 5th March 2019
Latest time and date for receipt of Forms of Proxy for the Extraordinary General Meeting 10 a.m. on 13th March 2019
Extraordinary General Meeting 10 a.m. on 15th March 2019
Completion of the Placing of the conditional shares, conditional on passing EGM resolution 15th March 2019
Commencement of dealings in the Conditional Shares 19th March 2019

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (‘MAR).  Upon the publication of this announcement via a Regulatory Information Service (‘RIS’), this inside information is now considered to be in the public domain.

Simon Gorringe Andalas Energy and Power Plc Tel: +62 21 2965 5800
Roland Cornish/ James Biddle Beaumont Cornish Limited
(Nominated Adviser)
Tel: +44 20 7628 3396
Colin Rowbury Novum Securities Limited
(Joint Broker)
Tel: +44 207 399 9427
Christian Dennis Optiva Securities Limited
(Joint Broker)
Tel: +44 20 3411 1881
Stefania Barbaglio Cassiopeia Services Ltd Stefania@cassiopeia-ltd.com

Andalas Energy and Power Plc (ADL) Colter Well Update

Andalas Energy and Power Plc, the AIM listed oil and gas exploration and development company, is pleased to provide the following update on the Colter appraisal well (‘the Well’ or ‘Colter’), currently being drilled by Corallian Energy Limited (‘Corallian’) in the P1918 licence in the Wessex Basin.  Andalas holds an 8% interest in the licence.

The Colter well (98/11a-6) has been drilled as a vertical well with the Ensco-72 jack-up rig and has reached a Total Depth of 1870m MD in the Sherwood Sandstone. The Well is an appraisal of the 98/11-3 well, drilled in 1986 by British Gas, within the Colter Prospect.

The 98/11a-6 well unexpectedly remained on the southern side of the Colter Prospect bounding fault but encountered oil and gas shows over a 9.4 metres interval at the top of the Sherwood Sandstone reservoir – a separate discovery to the original appraisal target.  A petrophysical evaluation of the LWD data has calculated a net pay of 3 metres. Similar indications of oil and gas were encountered in the 98/11-1 well, drilled in 1983 by British Gas, within the Colter South fault terrace.

Provisional analysis of the new data indicates that the two wells may a share a common oil-water-contact having both intersected the down-dip margin of the Colter South prospect. Corallian’s most recent assessment of the Colter South Prospect prior to drilling the 98/11a-6 well had estimated a mean recoverable volume of 15 mmbbls. Further work will be required to refine this assessment with the new well data

The joint venture has commenced preparations to side-track the 98/11a-6 well. The side-track will be drilled directionally to a Sherwood Sandstone target within the Colter prospect on the northern side of the bounding fault and will take approximately two weeks to complete.

Andalas Energy and Power plc CEO, Simon Gorringe, said: “The initial results from Colter have delivered valuable information on the potential of an additional hydrocarbon structure called the Colter South Prospect.  This is an added bonus and offers opportunity for future appraisal to increase the overall value of the Colter licence area.  The oil and gas shows encountered in Colter South mean that we maintain our confidence levels for the side-track into the main the main Colter Prospect target.  We look forward to updating share  in the coming weeks.”

Qualified Person’s Statement

The technical information contained in this announcement has been reviewed and approved by Mr. Gregor Mawhinney. Mr. Mawhinney is consulting for Andalas, acting in the role of Vice President Operations. He has nearly 40 years experience in the oil and gas industry,  is a member of the Society of Petroleum Engineers (SPE) and a member of the Professional Engineers and Geoscientists of Newfoundland and Labrador (PEGNL).

 

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (‘MAR).  Upon the publication of this announcement via a Regulatory Information Service (‘RIS’), this inside information is now considered to be in the public domain.

 

For further information, please contact:

Simon Gorringe

Andalas Energy and Power Plc

Tel: +62 21 2965 5800

Roland Cornish/ James Biddle

Beaumont Cornish Limited
(Nominated Adviser)

Tel: +44 20 7628 3396

Colin Rowbury

Novum Securities Limited
(Joint Broker)

Tel: +44 207 399 9427

Christian Dennis

Optiva Securities Limited
(Joint Broker)

Tel: +44 20 3411 1881

Stefania Barbaglio

Cassiopeia Services Limited
(Public Relations)

Stefania@cassiopeia-ltd.com

 

 

Andalas Energy and Power Plc – Bunga Mas Update

Andalas Energy and Power Plc provides the following update in relation to its proposed acquisition of an interest in the Bunga Mas production sharing contract (“PSC”) (announced 29 August 2018).

The long stop date for fulfilment of the conditions precedent to the sale and purchase agreement expired on Friday, 15 February,  and the parties have not extended it.  The vendor has advised Andalas that the government of Indonesia (“GOI”) has advised that it intends to issue a letter terminating the PSC during the week commencing today.  If, as is expected, the GOI issues the termination letter, Andalas will terminate the sale and purchase agreement.

As advised on 12 February 2019, the GOI asked the PSC contractors to deposit sums into an escrow account and lodge performance bonds as a condition of renewal of the PSC.  The escrow sum is understood to be approximately US$5.8 million and the contractors have not satisfied this request.  The directors have concluded that it would not be in the interests of the Company to seek to raise funds sufficient to fulfil these requirements.

As previously announced, to date Andalas has incurred direct costs of an estimated £200,000 of legal, professional and other direct costs in connection with Bunga Mas.

Andalas Energy & Power PLC CEO, Simon Gorringe, said: “We are disappointed by the recent developments at Bunga Mas. We could not ask shareholders for the funds to lock up US$6 million in addition to the capital required to develop the field. However, Andalas will only terminate the agreement when we know that the licence has been terminated by GOI.

“Colter is currently drilling, and we look forward to providing shareholders with further news in the coming weeks both on Colter and the Company’s interest in Badger.”

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (‘MAR).  Upon the publication of this announcement via a Regulatory Information Service (‘RIS’), this inside information is now considered to be in the public domain.

For further information, please contact:

Simon Gorringe Andalas Energy and Power Plc Tel: +62 21 2965 5800
Roland Cornish/ James Biddle Beaumont Cornish Limited
(Nominated Adviser)
Tel: +44 20 7628 3396
Colin Rowbury Novum Securities Limited
(Joint Broker)
Tel: +44 207 399 9427
Christian Dennis Optiva Securities Limited
(Joint Broker)
Tel: +44 20 3411 1881
Stefania Barbaglio Cassiopeia Services Limited                                       (Public Relations) Stefania@cassiopeia-ltd.com

Andalas Energy and Power Plc (ADL) Bunga Mas update

Andalas Energy and Power Plc recognises recent press speculation regarding the Bunga Mas PSC (“PSC”) acquisition (announced 29 August 2018) and would like to clarfy the current position.

Andalas has been advised that the government of Indonesia (“GOI”) has provided the PSC contractors, with an agreement to convert the PSC into a gross split production sharing contract.  The contractors, including the vendor, Tilegarre Corporation, have elected not to sign it because certain issues regarding the terms of the renewal have not yet been resolved to their satisfaction. 

Andalas has been advised that the GOI has requested that the contractors deposit funds into an escrow account as security against a future work programme.   This requirement would result in Andalas having to raise significant amounts of additional capital which has a material negative impact on the  economics of the project.

The sale and purchase agreement is conditional on the PSC being extended on terms satisfactory to Andalas and includes a representation from the vendor that no performance bonds or other financial guarantees or obligations are required or in place under the PSC.  At this stage, this condition precedent has not been fulfilled and the representation is incorrect. 

Andalas will continue to monitor the situation over the coming days as further information becomes available following the decision by the vendor not to sign the gross split PSC. 

Andalas expects to be in a position to provide an update on or before 7.00am 18 February 2019.

To date Andalas has incurred direct costs of an estimated £200,000 of legal, professional and other direct costs in connection with Bunga Mas.  No consideration has yet been paid to the vendor and will not be paid unless and until Andalas secures an interest in the licence.

Andalas Energy & Power PLC CEO, Simon Gorringe, said: “We are disappointed by the recent developments at Bunga Mas.  As its stands the financial commitment required for Andalas to fund its participation in the Bunga Mas PSC would require significantly more capital than the original SPA envisaged.  We are currently of the opinion that, without significant changes to the GOI’s expectations around funding the commitments it makes it very difficult for Andalas to proceed with the acquisition. 

“We remain hopeful that an amicable position can be reached with GOI and look forward to updating the market next week.”

“To end on a positive note, Colter is currently drilling, and we expect further news on the Company’s interest in Badger in the coming weeks.  Each of these projects has the potential to transform the near term outlook for the Company, whilst the Company looks to secure other opportunities and provide further guidance on Bunga Mas.” 

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (‘MAR).  Upon the publication of this announcement via a Regulatory Information Service (‘RIS’), this inside information is now considered to be in the public domain.

For further information, please contact:

Simon Gorringe

Andalas Energy and Power Plc

Tel: +62 21 2965 5800

Roland Cornish/ James Biddle

Beaumont Cornish Limited
(Nominated Adviser)

Tel: +44 20 7628 3396

Colin Rowbury

Novum Securities Limited
(Joint Broker)

Tel: +44 207 399 9427

Christian Dennis

Optiva Securities Limited
(Joint Broker)

Tel: +44 20 3411 1881

Stefania Barbaglio

Cassiopeia Services Limited                                       (Public Relations)

Stefania@cassiopeia-ltd.com

Andalas Energy & Power #ADL – Colter Well Spud

Andalas Energy and Power Plc is pleased to announce that it has been notified by Corallian Energy Limited (‘Corallian’), the operator of the P1918 licence in the Wessex Basin, that the Colter 98/11a-5 appraisal well (‘the Well’ or ‘Colter’) spudded at 10:10hrs on February 6th 2019.  The drilling is expected to take three weeks.

Andalas holds an 8% interest in the Well which will appraise a historic discovery that lies immediately to the south of Europe’s largest onshore oil field at Wytch Farm.  The discovery was made in 1986 by well 98/11-3, which encountered a 10.5m oil column in the Sherwood Sandstone reservoir, the same play that has proven to be so productive at Wytch Farm where over 450mmbbls have been produced to date.

The Ensco-72 jack-up drilling unit has been contracted to drill the Well to an intended total depth of 1,830m metres, with drilling expected to take approximately three weeks.  Colter will be drilled updip of 98/11-3 targeting significant potential that has been identified following reprocessing of 3D seismic data.  Colter will evaluate a prospect that has been assessed to contain gross unrisked Mean Prospective Resources of 22 million (1.76 net) barrels of oil (“MMBO”) recoverable (Operator estimate) and a further 1 million (0.08 net) barrels of oil equivalent (“MMBOE”) as gas.

Andalas Energy & Power PLC CEO, Simon Gorringe, said: “We are delighted to announce the spud of the Colter appraisal well, which we invested in because of its attractive risk return profile.  The well is targeting a historic discovery that lies close to existing infrastructure and is immediately south of Europe’s largest onshore oil field at Wytch Farm Field. 

“Colter is the first well to be drilled in which Andalas has an interest since I became CEO and we look forward to announcing the results of this well, whilst the Andalas team continues to work on the other opportunities in our portfolio.” 

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (‘MAR).  Upon the publication of this announcement via a Regulatory Information Service (‘RIS’), this inside information is now considered to be in the public domain.

For further information, please contact:

Simon Gorringe Andalas Energy and Power Plc Tel: +62 21 2965 5800
Roland Cornish/ James Biddle Beaumont Cornish Limited
(Nominated Adviser)
Tel: +44 20 7628 3396
Colin Rowbury Novum Securities Limited
(Joint Broker)
Tel: +44 207 399 9427
Christian Dennis Optiva Securities Limited
(Joint Broker)
Tel: +44 20 3411 1881
Stefania Barbaglio Cassiopeia Services Limited                                       (Public Relations) Stefania@cassiopeia-ltd.com
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