UK’s Andalas Energy Completes Placing for Funding Sumatra-1 project

Photo: Andalas Energy

 JAKARTA (TheInsiderStories) – United Kingdom’s Andalas Energy and Power plc (AIM:ADL) said it has finalized the placing of the company’s shares to the new and existing shareholders, which enables the company to raise £500,000 of fresh funds.

The placing was led by 1798 Volantis Fund Ltd who has subscribed for a total of 1.28 billion units of shares, equating to 21.33 per cent of of the enlarged share capital of the company.

In addition, Volantis has provided the company with a flexible convertible loan note facility for up to £2,000,000 (subscription price £1,800,000) to provide access to follow-on capital that will be required to develop at least one of its projects through to final investment decision.

“The funds raised in the placing enable the Company to advance each of its projects,” Simon Gorringe, Chief Executive of Andalas Energy & Power, said.

It is expected that, taken together the proceeds from the equity subscription alongside the convertible loan note would, if drawn down, provide the capital to fund the company through to the first projects final investment decision, which is the precursor to construction.

The proceeds of the placing will be used to provide additional working capital and project development capital to advance Andalas’ portfolio of wellhead IPP projects.

An application has been made to the London Stock Exchange for admission of the Placing Shares to trading on AIM, the company said.

The placing of shares was made after the company signed a memorandum of understanding (MOU) with PT Pertamina Power Indonesia, a subsidiary of state-owned energy company PT Pertamina and Siemens AG Andalas Energy and Power Plc, for development of a well-head power plant with installed capacity of 20-50 MW in the Puspa Field.

The Puspa gas field is operated by PT Pertamina EP, an upstream oil and gas subsidiary of Pertamina. The MoU provides the basis to negotiate further on the project arrangements as well as other related issues.

Andalas said it will make a final investment decision (FID) after the project has been included in the power plants business planning (RUPTL) of the state electricity company PLN. (*)