Angus Energy shares soar as it considers possibility of sale
Angus Energy’s (Angus) shares skyrocketed nearly 30 per cent today after it announced it will consider selling the firm to prospective buyers.
It will now undertake a review of its strategic options, which includes the option of a formal sale process.
In a statement, the company said a “valuation mismatch”, which it says are experienced by “many other smaller energy companies”, has resulted in a series of approaches for the company and its 51 per cent interest in the Saltfleeby Gas Field (Saltfleeby) asset.
The energy firm argued it had a responsibility to shareholders to evaluate any proposals, and has appointed Beaumont Cornish (BC) as its financial adviser.
Following the announcement, the company’s shares soared 29.03 per cent, trading at £1 per share on the FTSE AIM All-Share market at noon on Thursday.
Angus is currently pushing to achieve first gas at the Saltfleetby while also looking to support transitional energy projects in the geothermal sector in South West England.
However, it has faced pushback from some shareholders that its current market capitalisation doesn’t reflect the short-term value of its hydrocarbon assets and its potential cashflow.
Supply issues have also resulted in delays at Saltfleeby which have increased costs by potentially 10 per cent.
Chief executive George argued said the shortage of gas supplies in the energy market and the deficit of renewable sources will likely lead to more periodic crises in the UK and high gas prices for years to come.
He said: “Presently, the market is attributing little value to hydrocarbon reserves in general, or in our instance, the immediate cashflow prospects of the Saltfleetby Gas Field. Accordingly, in the light of this and the interest expressed by other energy market participants, we think it in the best interests of shareholders to conduct this strategic review and formal sale process.”