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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 & 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 – 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

 

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 Department for Business, Energy and Industrial Strategy, Offshore Petroleum Regulator for Environment and Decommissioning (OPRED) has advised the Oil and Gas Authority of its in principle agreement to the issue of the relevant consent for the Colter well, in which Andalas has an 8% interest.

There are several regulatory approvals and notifications still required before the consenting process is completed for the work programme.  When all the necessary approvals have been obtained, Corallian expects to commence a two-well work programme, with the drilling of the Wick well (in which Andalas does not have an interest) expected to commence during December 2018.  Following completion of the Wick well, the rig will be mobilised from the Moray Firth to the English Channel to drill the Colter well.

No further announcements are expected from Corallian until all the approvals are in place and the drilling programme has commenced.

Simon Gorringe, CEO of Andalas Energy and Power PLC said “We are pleased with the continued progress of the operator towards the commencement of the proposed well, which follows today’s announcement and the recent announcement of the contracting of the Ensco-72 rig to execute the Wick and Colter drilling programme.

“The drilling of the Colter well will expose Andalas shareholders to an exciting period of drilling activity, whilst we continue to work with our partners to complete the acquisition of Bunga Mas and to provide updates on the Badger licence.  I look forward to keeping the market informed as we continue to progress 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 – Award of Share Options

Andalas Energy and Power Plc, the AIM listed oil and gas company (AIM: ADL), announces the award of a total of 36 million options over ordinary shares in the Company to its Executive Directors and key consultants.

The Options are all exercisable at 2 pence per share, representing a premium of 83.5% over the closing share price on 1 October 2018, and vest, over a two-year period as set out below:

  • Tranche 1 vests immediately;
  • Tranche 2 vests on 1 October 2019; and
  • Tranche 3 vests on 1 October 2020.
 Beneficiary Tranche 1 Tranche 2 Tranche 3 Exercise price Expiry
Simon Gorringe 4,000,000 4,500,000 4,500,000 2 pence 1 October 2023
Ross Warner 3,000,000 3,000,000 3,000,000 2 pence 1 October 2023
Daniel Jorgensen 3,000,000 2,500,000 2,500,000 2 pence 1 October 2023
Consultants 2,000,000 2,000,000 2,000,000 2 pence 1 October 2023
Total 12,000,000 12,000,000 12,000,000

Vesting of the options is subject to the option holder providing continuous service during the vesting period and there are no other performance conditions attached to the options.

The independent Directors of the Company, Dr Robert Arnott and Graham Smith, consider, having consulted with the Company’s nominated adviser, Beaumont Cornish Limited, that the terms of the grant of Options are fair and reasonable insofar as shareholders are concerned.

Chairman of the remuneration committee, Dr Robert Arnott said:  “Simon and the team have worked tirelessly over the past 11 months to secure funding and new opportunities that together position Andalas to deliver on multiple fronts over the next few months.  The options have been struck at a significant premium to ensure that the Companies management team is only rewarded when it has delivered value to its shareholders.”

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 – Farm-in to Colter and issue of equity

Andalas Energy and Power Plc, the AIM listed upstream oil and gas and energy company (AIM: ADL), is pleased to announce it has, through its 100% owned subsidiary Resolute Oil & Gas (UK) Limited, entered into an agreement with Corallian Energy Limited under which it has acquired, via a farm-in, an 8% interest in UK Continental Shelf Licence P1918, which contains the Colter prospect and PEDL 330 and PEDL 345.

In addition, the Company has raised £800,000 (gross) at 1.15 pence, via an oversubscribed placing, which, together with existing funds, fully finances the expected costs of the Acquisition.  The Placing Price represents a 2% discount to the closing mid-market share price on 20 September 2018.

Highlights:

  • Farm-in to Colter prospect (“Colter”) fully funded through to drilling of the well expected in Q4 2018, expected well cost £7.5m gross.
  • To earn its 8% interest Andalas is funding 10.67% of the well cost up to a maximum of £8million, thereafter it funds 8%.
    • Colter scheduled to be drilled in Q4 2018
    • Colter will evaluate a prospect that has been assessed to contain gross unrisked Mean Prospective Resources of 22 million barrels of oil (“MMBO”) recoverable (1.76MMBO net) (Operator estimate).
  • Andalas portfolio now contains short, medium and long term value catalysts, each with significant potential and activity expected over the remainder of 2018 including:
    • Progress updates on our interest in the Badger licence, including updates on the ongoing farm-out process;
    • Updates on the licence extension at our recently announced Bunga Mas project; and
    • Drilling of the Colter well planned for Q4 2018.
  • £800,000 (gross) raised via the issue of 69,565,217 new ordinary shares of no par value, at a price of 1.15 pence per share (“Placing Shares”).
    • Funds to be applied to fully fund the farm-in;
    • 34,782,608 (on a 2 for 1 basis) warrants will be issued in connection with the placing. Warrants have an exercise price of 2pence and a three year life.

Simon Gorringe, CEO of Andalas Energy and Power PLC said:  “With this transaction and recent fund raises we have completed the first phase of the transformation of Andalas into a well-funded and well-diversified oil and gas company.  We now have a portfolio of short, medium and long term value catalysts, in both the UK and Indonesia and we thank shareholders for their support. 

“We are acquiring an interest in a fully funded well, planned for the Q4 2018, which is targeting a significant oil prospect that is attractive due to its significant resource potential and also its proximity to the Wytch farm oilfield and its facilities.

“We have worked hard to create a business capable of delivering value to shareholders since the change in the board of the Company We look forward to providing the market with further updates as we make progress across our existing portfolio and the other potential opportunities”

Dave Gaudoin, MD of Corallian Energy Limited said: “We are pleased to welcome the Andalas team as a partner in the Colter project.  They have significant previous experience in developing and commercialising major oil and gas projects in the UK continental shelf and we are looking forward to working with them”.

About Colter

The Colter Prospect lies in Poole Bay, immediately south of the Wytch Farm oilfield, operated by Perenco.  Mapping of 3D seismic data by the operator, Corallian, indicates that the 98/11-3 well, which encountered oil in the Triassic Sherwood sandstone reservoir in 1986, lies on the flank of a structure that has the potential to hold gross unrisked Mean Prospective Resources of 22 million barrels of oil (“MMBO”) recoverable (1.76MMBO net) from this reservoir (Operator estimate).

The Colter Prospect will be appraised by a well drilled to a total depth of 1,800 metres subsea in a water depth of 16 metres.  The well is currently scheduled to be drilled in the fourth quarter of 2018, subject to regulatory approvals.   Under the terms of the agreement with Corallian, Andalas has, subject to governmental consents, acquired an interest of 8% in the licences from Corallian.

The total cost to Andalas of farming into the licence, will include the funding of the back costs on the licence (£45,000), together with the obligation to fund 10.67% of the forward costs related to this well, capped at a gross cost of £8.0 million.  Andalas will be responsible for funding its 8% share of incremental costs above this cap.  The Operator currently estimates the well cost to be £7.5m (£800,000 net to Andalas).  Andalas will be added to the licence upon the payment of the back costs and the receipt of the necessary government approvals.

Corallian has also conducted preliminary mapping of a separate area around the 98/11-1 well, south of the Colter prospect, which indicates that there is the potential for Prospective Resources of up to 27 million barrels of recoverable oil.  Further definition of this separate area will be possible once the results of the Colter well (98/11a-E) are available.

Issue of equity

The farm-in is funded via the placing of new ordinary shares of no par value, raising gross proceeds of £800,000, at a price of 1.15 pence per share.  The proceeds of the placing will also be applied for general working capital purposes.  Application has been made for the Placing Shares to be admitted to trading on AIM and dealings are expected to commence on or around 4 October 2018 (“Admission”).

In connection with the placing, a total 5,217,391, three year warrants exercisable at the placing price have been issued as part payment of commission.

Furthermore 34,782,608 warrants have been issued to the placees, on a 1 for 2 basis, with a three year life and an exercise price of 2pence per share.

Total voting rights

Following Admission, the Company’s issued share capital will consist of 365,749,640 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 365,749,640 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 FCA’s Disclosure Guidance and Transparency Rules (“DTRs”).

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 #ADL CEO Simon Gorringe discusses the conditional Bunga Mas PSC acquisition on the Vox Markets podcast

 

Simon Gorringe, Chief Executive Officer of Andalas Energy & Power (ADL) discusses progress at the company including their recent acquisition in Indonesia.

(Interview starts at 12 minute 29 seconds)

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