WTI (Oct) $73.01 +$1.08, Brent (Oct) $77.22 +$1.17, Diff -$4.21 +9c
USNG (Sep) $2.06 -12c, UKNG (Sep) 88.19p -1.06p, TTF (Oct) €36.925 -€0.50 

Oil price

Oil has fallen during the week as poor economic news and the growing thoughts of peace talks success in Cairo took oil to being down on the year. Higher today as markets await news from the Jackson Hole symposium and Jerome Powell is speaking as I write, the dollar has remained weak on interest rate worries. 

Petrofac- Forbearance required…

Petrofac confirms it has extended its existing forbearance agreement in respect of the non-payment of the interest coupon on its senior secured notes from 23 August to 20 September 2024.

The forbearance agreement is entered into by an ad hoc group of noteholders representing approximately 47% of the outstanding senior secured notes and certain other acceding noteholders. It provides assurance that these noteholders will not take any action in respect of the non-payment of the coupon until at least 20 September 2024, allowing additional time for the Group’s financial restructuring to be progressed.

Further announcements will be made as appropriate.

The roller-coaster ride of being a Petrofac bond holder are here for all to see as their forbearance is almost continually required at the moment. So bear a thought for the equity holders who must live in constant fear of a trip to the barbers…

Sound Energy

Sound has announced entry into a bridge financing facility agreement pursuant to which up to £1.5 million will be made available to the Company, if drawn down. The Facility Agreement has been entered into with a high-net-worth individual trading as 2i Partners, introduced by Lyndisfarne Partners ltd, in respect of a short-term bridge facility for up to £ 1.5 million available for three months from 1 September 2024. The Company has not drawn down any funds under the Facility which, if required, will provide the Company with access to additional working capital resources prior to receipt of funds associated with the sale of Sound Energy Morocco East (“SEME”) to Managem SA, the terms of which were announced on 14 June 2024.

Any amounts drawn down under the Facility will attract an interest rate of 15 per cent. per quarter and will fall for repayment on the earlier of three-months from the date of draw down or within 3 days of completion of the sale of SEME. The Company will pay the lender a fee of £50,000 in the event that no draw down is made prior to expiry of the availability period and the Facility will, from first draw down, be secured by way of a charge over the shares of Arran Energy Holdings Limited, the Company’s wholly owned subsidiary.

The Facility provides the security of access to working capital for the Company, should it be required, prior to closing of the transaction with Managem, which remains on track within the forthcoming months.

This is a very handy arrangement indeed and it sums up the lateral thinking exerted by Exec Chairman Graham Lyon. Not content with a ‘little raise’ that some may have done. he has procured an insurance policy that means that Sound can carry on with business as usual allowing Sound to carry on and not lose momentum while the deal is closing. 

The flexibility that this provides means also that all activities across the portfolio can continue without having to be constrained by any delay in the Managem deal, very smart. There is plenty to go for in Sound and when the deal completes there will be much to be happy with. 

Trinity Exploration & Production

On 2 August 2024, the boards of directors of Trinity and Lease Operators announced in accordance with Rule 2.7 of the Takeover Code (the “Rule 2.7 Announcement”) that they had reached agreement on the terms of a recommended cash acquisition for the entire issued, and to be issued, share capital of Trinity by Lease Operators at a price of 68.05 pence per Trinity Share (the “Acquisition”), to be effected by means of a Court-sanctioned scheme of arrangement under Part 26 of the Companies Act 2006 (the “Scheme”).

The Rule 2.7 Announcement noted that a shareholder circular containing full details of the Acquisition and the Scheme, along with notices of the Court Meeting and General Meeting (the “Scheme Document”), together with the associated forms of proxy, was expected to be published and sent to Trinity Shareholders in August 2024 in accordance with the Takeover Code.

The Trinity Directors today announce that they have sought and received the consent of the Panel to delay the publication of the Scheme Document to allow for coordination with the expected receipt of remaining regulatory approval relating to the Acquisition and agreement of a Court approved timetable for the Scheme.

Trinity Shareholders will be advised of the revised timetable for the publication of the Scheme Document as soon as practicable by the issuance of an announcement by Trinity through a Regulatory Information Service.

This announcement has been made with the consent of Lease Operators.

Defined terms used but not defined in this announcement shall have the meaning given to them in the Rule 2.7 Announcement.

Funny that, the last to the ball getting a delay to the process, the last to know will be the Trinity shareholders I suspect and this one could run and run….

KeyFacts Energy Industry Directory: Malcy's Blog