TIDMAEN
RNS Number : 0180B
Andes Energia PLC
30 March 2017
30 March 2017
Andes Energia plc
("Andes" or "the Company")
US$60,000,000 credit facilities and Board and Senior Management
Changes
The Company is pleased to announce two new credit facilities
totaling US$60,000,000 with Mercuria Energy Trading S.A.
("Mercuria") and changes to the senior management team.
Highlights
-- US$20,000,000 debt facility from Mercuria to finance drilling
activities in Chachahuen and other working capital requirememts
-- US$40,000,000 credit facility from Mercuria to finance
drilling activities across the Andes portfolio encompassing the
Company's highly valuable Vaca Muerta acreage
-- Appointment of Mr Anuj Sharma as non board level Chief
Executive Officer with immediate effect, replacing Alejandro
Jotayan
-- Nicolas Mallo Huergo, to assume the role of Executive Chairman, on an interim basis
Credit facilities
The Company has entered into two credit facilities with
Mercuria.
A US$20,000,000 debt facility which shall be used to finance (i)
the drilling activities in Chachahuen, the Company's producing
field in partnership with YPF, and (ii) finance other working
capital requirements of the Andes group. This facility carries
interest at a rate of US$ LIBOR plus a margin of 12.5%. Interest is
payable monthly with effect from 31 May 2017 and the principal is
repayable in 6 monthly installments from 31 July 2017. The loan
maturity date is 31 December 2017. The loan is secured by way of a
charge over shares representing 45% of the issued share capital of
Kilwer S.A. and Ketsal S.A. Kilwer S.A. and Ketsal S.A. are wholly
owned subsidiaries of the Company and hold the interest in the
Chachahuen licence.
A further US$40,000,000 credit facility shall be used to finance
other drilling activities of the Company, encompassing activity on
the Vaca Muerta, where the Company has 250,000 net acres. This
facility is available until 31 December 2018 with a maturity date
of 31 December 2019 and termed out date (see below) of 31 December
2020 and carries interest at a rate of US$ LIBOR plus a margin of
9% until the maturity date and a margin of 11% after the maturity
date until the termed out date and is payable monthly. Principal
repayments will be funded from each project cash flow subject to a
maximum of 18 equal monthly installments after a grace period of 9
months from the date of drawdown for each project. Principal for
each draw down is to be repaid by the maturity date with the option
to extend to the termed out date in which case the maximum number
of installments shall be increased by 12. Once the principal for a
project has been repaid the lender shall receive 60% of a project's
cash flow until it has received an internal rate of return of 15%
on the actual amount funded under the facility on each specific
project. This shall be increased to 17% if the Company extends the
maturity date to the termed out date. The loan is secured over the
cash flows generated from a project and the economic interest in
the project.
Mercuria holds a 8.16% interest in the issued share capital of
the Company.
Changes to Senior Management
The Company is pleased to announce the appointment of Mr Anuj
Sharma as non board level Chief Executive Officer with immediate
effect.
Anuj Sharma, Chief Executive Officer, has 20 years of experience
in the oil and gas industry and most recently headed Mercuria
Energy Group's investments in Argentina. As the head of Mercuria's
Argentine subsidiaries, he led Petrolera El Trebol S.A., Mercuria
Group's upstream oil and gas company in Argentina, to significant
exploration and development success, which resulted in more than a
doubling of the firm's production and reserves. Prior to that, he
was the Vice President and Director, originating investment
opportunities for a multi-billion dollar family office in Houston,
USA. Anuj also held positions in upstream equity research, and
portfolio management for a large commodity investment firm, making
principal investments in the upstream oil and gas sector and
managing the firm's unconventional shale portfolio in the US. He
started his oil and gas career as an engineer for Schlumberger Oil
Field Services. Anuj received his Bachelor of Electrical
Engineering in India and MBA from Duke University, USA where he
graduated with the highest honors as a Fuqua Scholar. Anuj in the
short term will continue in his role at Mercuria as investment
manager for Mercuria Energy Group's investments in Argentina to
facilitate a smooth transition.
Alejandro Jotayan, presently Chief Executive Officer, has agreed
to step down from the Chief Executive Officer position and the
Board, with immediate effect.
As the appointment of the new CEO is a non board position,
Nicolas Mallo Huergo, currently Non-executive Chairman, will, with
immediate effect, assume the role of Executive Chairman on an
interim basis.
Nicolas Mallo Huergo, Executive Chairman, commented: "We are
very pleased with these credit facilities that will allow us to
capitalise on the positive business environment in Argentina and
the progress as to the oil agreement reached by the Argentine
government, the government of the province of Neuquen, the Industry
and the Trade Unions. 2017 and 2018 will be significant years for
the development of our portfolio in Argentina. These credit
facilities reflect our growing relationship with Mercuria. We
welcome Anuj who brings a wealth of knowledge and experience in
South American oil exploration and production. I would like to also
take this opportunity to thank Alejandro for his contribution to
the Company during his tenure.".
Anuj Sharma, Chief Executive Officer, commented: "I am honoured
to be given the opportunity to be working with Andes Energia as its
CEO into the next phase of its development. I am looking forward to
working with the Andes team members that have contributed to its
success thus far and alongside our investors, expanding the
Company's operations in developing its conventional and vast Vaca
Muerta unconventional resources to create a best-in-class
independent E&P company."
For further information, please contact:
Andes Energia plc Nicolas Mallo Huergo, Chairman T: +54 11 5530
Billy Clegg, Head of Communications 9920
Stockdale Securities Antonio Bossi T: +44 20 7601
David Coaten 6100
Panmure Gordon Adam James T: +44 207 886
2500
Atholl Tweedie
Tom Salvesen
Camarco Gordon Poole T: +44 20 3757
4980
Note to Editors:
Andes Energia plc is an oil and gas exploration and production
company focused on onshore assets in South America with a market
capitalisation of circa GBP220m. The Company has its main
operations in Argentina and Colombia.
The Company has approximately 25* MMbbls of conventional 2P
reserves, and it also has certified prospective resources of 640
MMboe, primarily in the Vaca Muerta unconventional development in
Argentina and over 7.5 million acres across South America.
The Company has approximately 250,000 net acres in the Vaca
Muerta formation, which is the second largest shale oil deposit in
the world and the only producing shale oil deposit outside of North
America, currently producing 45,000 boepd. Over 300 wells have
already been drilled and fracked in the Vaca Muerta formation.
Andes is the only AIM quoted company on the London Stock
Exchange with exposure to the Vaca Muerta shale.
*Includes 100% of Interoil's net reserves and production in
which Andes has a 26.02% interest
This information is provided by RNS
The company news service from the London Stock Exchange
END
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