Business
Oil & Gas Transaction Completion
Oil & Gas Transaction Completion.
About this update from Atlas Metals Group Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 8411L\n MetalNRG PLC\n 15 January 2021\n \n \n \n \n \n This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.\n \n \n \n \n \n \n \n \n \n \n \n 15th January 2021\n \n \n \n \n \n MetalNRG plc\n \n \n (The \"Company\" or \"MetalNRG\")\n \n \n \n \n \n OIL & GAS TRANSACTION COMPLETION\n \n \n \n \n \n MetalNRG plc (LON:MNRG), the natural resource investing and exploration company, announces that it has received confirmation from the Oil & Gas Authority (\"OGA\") that it does not oppose the change of control of Sunswept Enterprise Limited and associated subsidiaries to BritNRG Limited (\"BritNRG\"), the special purpose vehicle created for the acquisition. \n \n \n As a result, BritNRG has now completed the transaction as announced on 9th October 2020 and has acquired 100% of Sunswept Enterprises Limited and related assets.\n \n \n Following completion of the acquisition and at current modest production levels, Sunswept is expected to be net cashflow positive at Brent prices sub $40/bbl, which is significantly below the current Brent price. A reduction of the breakeven oil price reference is expected as production levels are restored by bringing the Whisby #6 Well back on stream (by a wax removal workover) possibly within Q1/2021. Further reductions and additional cash generation is expected with the near-term development in both the Whisby and Newton on Trent assets. The relevant appraisals are nearing finalisation and BritNRG intends to present detailed plans to the OGA in the shortest possible timeframes.\n \n \n The initial investment made by MetalNRG in BritNRG will be via a convertible loan note for a total amount of 450,000, payable in 3 tranches and which upon redemption will convert into 50% of the total BritNRG equity. \n \n \n The total working capital investment in BritNRG via MetalNRG's convertible loan note and the private investor group will be 750,000, which will enable BritNRG to meet: i) purchase commitments, ii) all financial commitments as required to maintain the current operations on a stable footing for at least the next 18 months and iii) priority accretive interventions.\n \n \n The gross ...