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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

Andalas Energy & Power #ADL – Bunga Mas PSC one of 6 licences to be converted to gross split PSC by mid-Feb 2019

Andalas Energy and Power PLC, is pleased to report that Arcandra Tahar, Deputy Minister of Energy and Mineral Resources (“Deputy Minister”) issued a press release on Friday 11 January 2019, that the Bunga Mas PSC will be one of 6 licences that will be converted to gross split PSC’s by mid-February 2019. As announced on 29 August 2018, Andalas has a conditional agreement to acquire an initial 25% (rising to 49% and then 100%) interest in the Bunga Mas PSC.

The operator of the Bunga Mas PSC applied to convert the PSC to a gross split PSC as part of the process to extend the exploration period, one of the key conditions to completion of Andalas’s acquisition of an interest in the Bunga Mas PSC.  Andalas regards the conversion to a gross split PSC as an important and positive step in this process.

The modelling performed by the Company to date indicates that the conversion of the PSC to the gross split PSC is likely to alter the economic profile of a successful development of Bunga Mawar.  Importantly, however, it does not alter Andalas’ view that the deal exposes shareholders to significant upside under both the original PSC terms and the gross split PSC terms.

In addition, Andalas believes that the new gross split PSC will provide operating advantages – the Deputy Minister highlighted that the gross split PSC regime was created to make oil and gas licences efficient, uncomplicated, simple and with more secure processes.

Andalas will advise on the terms of the extension at such time as approval is granted by the government.  The terms will include, amongst other things, the terms of the extension of the exploration period and the application of any transitional provisions between the old and the new regime.

Simon Gorringe, CEO of Andalas Energy and Power PLC said, “This change in licence terms is in line with the Indonesian government’s intention to have all oil and gas licences structured on a Gross Split basis and although we still do not know the exact terms of the new licence the company has the ability to renegotiate its economic interest with the operator to ensure the project meets our investment criteria.

“This news validates our decision to grant a short extension to the long stop date last month.  The announcement by the vice Energy Minister indicates that the PSC will be formally converted in February, during which time we will continue to work with the vendor towards finalising the acquisition. 

“We have established a good relationship with the Bunga Mas Operator who wants to close the deal as soon as possible and is willing to work with ADL to ensure that a satisfactory deal can be agreed.  I look forward to updating the market as we progress with what continues to be an exciting deal.

“Andalas is paying consideration for the acquisition of Bunga Mas of 19.2 million shares (£177,600 at the closing share price on 11 January 2019), which we believe would represent very good business should we be successful in the planned development of the Bunga Mawar formation that has 2.3 million barrels of best case contingent and prospective resources. 

“Furthermore, successfully developing Bunga Mawar is expected to provide cash flow to support the exploration and appraisal of the other leads and prospects on the licence that have total operator assessed best estimate prospective resources of 54 million barrels of oil and 26 BCF of.

“We look forward to an exciting few weeks and months as we provide the market with updates across our portfolio, including completion of our acquisition of an interest in the Bunga Mas PSC and both the forthcoming Colter new drill, which is targeting 22 million barrels of oil (1.76 million net to Andalas) and the additional studies on our Badger investment.”

Gross Split PSC Regime

Indonesia introduced a new PSC scheme based on gross production split in 2017.  The Government’s intention was to incentivise exploration and exploitation activities by providing spending and operational freedom to operators.

The new regime is based on a gross production split without regard to a cost recovery mechanism.  Hydrocarbons produced from the PSC are shared between the contractor and the government.  The production split is determined by reference to the characteristics of the project.  The base split for oil is 57% to the government and 43% to the contractor and for gas is 52% to the government and 48% to the contractor.  The base split is adjusted by reference to variable and progressive components.  The variable components include the status of the working area, field location, depth of the reservoir, availability of infrastructure, type of reservoir, carbon dioxide content, hydrogen sulphide content, specific gravity of oil and domestic component during the developments stage and the production stage.  The progressive components comprise oil and gas prices and cumulative oil and gas production.  By way of example, the first plan of development under a gross split PSC will attract an additional 5% contractors split and an off-shore field in water depths greater than 1000m would attract an additional 16% contractors split.

The role of SKK Migas is limited to control and monitoring of gross split PSCs and whilst it will approve work programmes it will not approve budgets which will be provided as a supporting document.  Contractors may carry out procurement of goods and services independently and the governments procurement regulations will not apply the same restrictions as under the former regime.

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 CEO Simon Gorringe purchases 3m shares

Andalas Energy and Power PLC announces the following dealing in the ordinary shares of the Company made by, Simon Gorringe, Chief Executive Officer of the Company.

On 27 December 2018, Mr Gorringe acquired 3,000,000 Andalas ordinary shares at a price of 0.66 pence per share, representing 0.82% of the Company’s issued ordinary share capital.

Following the acquisition, Mr Gorringe now holds an interest of 5,057,503 Andalas ordinary shares, representing approximately 1.4% of the Company’s issued ordinary share capital.

Simon Gorringe said, “My purchase of shares today reflects my belief that Andalas is well positioned having made significant progress in securing an exciting future for the Company.”

“I believe in the potential of Andalas; we have the right strategy, an excellent team and we have a portfolio of opportunities each with near term activity.   My acquisition of shares is in addition to other commitments made by myself, and the rest of the executive directors, to support Andalas as we progress to delivering on our projects in 2019.  Since the board changes in April 2018, the executive Directors have sought to preserve the Company’s cash by keeping costs tightly under control, including continuing to only be paid part of their salary entitlement, which is alongside the directors write off of $300,000 of contractual unpaid salaries that was announced on 22 May 2018.”

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

 

Notification of a Transaction pursuant to Article 19(1) of Regulation (EU) No. 596/2014
1 Details of the person discharging managerial responsibilities/person closely associated
a. Name Simon Gorringe
2 Reason for notification
a. Position/Status Executive Director
b. Initial notification/
Amendment
Initial
3 Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor
a. Name Andalas Energy and Power PLC
b. LEI
4 Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted
a. Description of the financial instrument, type of instrument

Identification Code

Ordinary Shares
b. Nature of the transaction On market Purchase
c. Price(s) and volume(s)
Price(s) Volume(s)
0.0066 GBP 3,000,000
d. Aggregated information
– Aggregated Volume
– Price
3,000,000
0.0066 GBP
e. Date of the transaction 27/12/2018
f. Place of the transaction UK

Andalas Energy & Power #ADL extends long stop date for Bunga Mas PSC sale & purchase agreement

Andalas Energy and Power PLC, is pleased to report that we have agreed with the vendor of the Bunga Mas PSC to extend the long stop date for satisfaction of the sale and purchase agreement conditions precedent to 15 February 2019 (originally announced on 29 August 2018).

We have agreed to extend the long stop date after consultations with the vendor and the Indonesian Government regarding the vendor’s request to vary the terms of the PSC by extending the exploration period and converting it to the new gross split regime.  These consultations have led us to conclude that there is a reasonable prospect of the extension being granted.

Simon Gorringe, CEO of Andalas Energy and Power PLC said, “I am pleased with the steady progress being made by the vendor towards receiving the regulatory consent for the licence extension on terms, including the conversion to gross split, that are acceptable to the vendor and Andalas.

“In our opinion the new gross split regime and the former regime can provide broadly similar outcomes for development projects such as Bunga Mas and therefore we would be satisfied with an extension under either regime.

“Bunga Mas PSC represents a huge opportunity for Andalas, it has near term production potential and longer term has up to five potential exploration targets each with multi-million barrel of oil potential, the exploration of which we believe could be financed in full or in part by the production from the first phase of the project development.

“We look forward to providing the market with an update on our acquisition of Bunga Mas PSC in due course.”

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 – Update on Colter well programme

Andalas Energy and Power PLC, is pleased to report that Corallian Energy Limited (“Corallian”), the Exploration Operator for Licence P1918, has informed the joint venture partners that the Ensco 72 rig has commenced mobilisation to the Wick drilling location.

This milestone represents the commencement of the planned two well programme, as announced on 13 November 2018, that will include Colter (in which Andalas has an 8% interest) which is now scheduled to be drilled in Q1 2019.  Andalas will provide further updates on the Colter well programme in the new year.

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

Brand CEO Alan Green talks Bluefield Solar #BSIF, Thomas Cook #TCG, Petrofac #PFC & Andalas Energy #ADL on Vox Markets podcast

Brand CEO Alan Green discusses Bluefield Solar Income Fund (BSIF), Thomas Cook Group (TCG), Petrofac (PFC) & Andalas Energy & Power (ADL) with Justin Waite on the Vox Markets podcast. Interview starts at 12 minutes 20 seconds.

Andalas Energy and Power (ADL) – Update on Eagle Gas investment

Andalas is the owner of a 25% interest in Eagle Gas Limited that is itself the 100% owner of Holywell Resources Limited (“Holywell”), which owns a 66 2/3% interest in licence P2112 (“the licence”).

The operator, Holywell, is currently negotiating an extension to the initial licence term which ends on 19 December 2018, with the Oil and Gas Authority (“OGA”), on behalf of itself and joint venture partner, Atlantic Petroleum (“Atlantic”), the owner of the remaining 33.3% non-operated interest in the licence. Andalas will update shareholders on the status of the negotiation as soon as further information is made available to it.

Following completion of the 2018 work programme, Holywell provided the results of its seismic interpretation to its partner, Atlantic, and also to its shareholders, including Andalas, which were announced by the Company on 20 August 2018.

Holywell reported to Andalas that Atlantic, having completed a technical evaluation of the seismic reinterpretation completed by Holywell, formed the view that there was the potential for there to be a further upside gas reserve on the licence that may influence the factors that led to the selection of the initial well location that had been recommended by Holywell.

The licence partners therefore agreed to request an extension to ensure that sufficient time is allowed under the licence to enable the joint venture to complete additional seismic interpretation work on the potential upside gas reserve.  Any additional seismic interpretation will provide additional data to enable the joint venture partners to agree the technical and commercial appraisal and development plans for the licence that will inform the joint venture partners individual decision to drill or drop the licence.

The additional seismic reprocessing may result in the operator, Holywell, issuing an updated resource assessment.  However, as at the date of this announcement, the previously announced operator assessment of the resource remains unchanged.  Any update resulting from the proposed additional seismic reprocessing will be announced at that time.

In parallel with the request for an extension to the licence, the joint venture partners have continued to evaluate potential funding options with regard to progressing the licence to the drill phase.

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 – Investor Event

Andalas Energy and Power Plc, the AIM listed upstream oil and gas and energy company (AIM: ADL), is pleased to announce that Chief Executive Officer, Simon Gorringe, will be attending and presenting at the Cassiopeia Investor Symposium at 7 pm on 21th November 2018.  The event will be held at The Mayfair Hotel and Spa, 110 Stratton Street, W1J 8LQ London, from 18:30 to 21:00 (GMT). For more information and to register attendance for the event please visit: https://www.eventbrite.co.uk/e/cassiopeia-investor-symposium-tickets-47398735895 

or email: stefania@cassiopeia-ltd.com

 

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

 

Brand CEO Alan Green talks Europa Metals #EUZ, Andalas Energy & Power #ADL, Concurrent Technologies #CNC and Harley Davidson ($HOG) on Vox Markets podcast

https://audioboom.com/posts/7083852-emmerson-eml-and-alan-green-on-euz-adl-cnc-hog

 

Brand Communications CEO Alan Green talks about: Europa Metals #EUZ, Andalas Energy & Power #ADL, Concurrent Technologies #CNC and Harley Davidson ($HOG) with Justin Waite on the Vox Markets podcast. Interview is 7 minutes 18 seconds in.

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