ANGUS ENERGY PLC

CONSOLIDATED STATEMENT OF CASH FLOWS

For the period ended 31 March 2026

NOTES TO THE FINANCIAL INFORMATION

1.                GENERAL INFORMATION AND PRINCIPAL ACTIVITIES

Angus Energy Plc (the "Company") was incorporated in United Kingdom as a limited company with company number 09616076.  The registered office of the Company is Building 3, Chiswick Park, 566 Chiswick High Road, London, W4 5YA, UK.

This financial information is for the Company and its subsidiaries undertakings (together, the "Group").

The principal activities of the entities of the Group are as follows:

The principal place of business of the Group is in United Kingdom.

The interim consolidated financial information is presented in the nearest thousands of Pound Sterling (£'000), which is the presentation currency of the group. The functional currency of each of the individual entity is the local currency of each individual entity.

2.            BASIS OF PREPARATION

The interim consolidated financial information for the six months ended 31 March 2026 and 31 March 2025 have been prepared in accordance with IAS 34, Interim Financial Reporting which are unaudited and do not constitute a set of statutory financial statements.

The principal accounting policies used in preparing the interim results are the same as those applied in the Group's financial statements as at and for the year ended 30 September 2025, which have been prepared in accordance with International Accounting Standards in conformity with the requirements of the Companies Act 2006. The auditors' report on those accounts was unqualified and did not draw attention to any matters by way of emphasis.

A copy of the audited consolidated financial statements for the year ended 30 September 2025 is available on the Company's website.

The interim report for the six months ended 31 March 2026 was approved by the Directors on 22 June 2026.

Going Concern

The Group recorded a loss of £0.069 million for the six months ended 31 March 2026 (2025: profit of £0.757 million), which included an operating profit of £1.537 million (2025: £3.367 million). EBITDA for the period was £5.258 million (2025: £6.943 million). The Group generated net cash inflows from operating activities of £4.401 million during the period (2025: inflow of £1.511 million). As at 31 March 2026, the Group held cash balances of £0.682 million (2025: £0.785 million).

Subsequent to the reporting date, the Company has continued to progress the restructuring of its financing arrangements with Trafigura, the counterparties to the Overriding Royalty Interest attached to the Saltfleetby Gas Field and Forum Energy Services Limited in respect of the deferred consideration relating to the acquisition of Saltfleetby Energy Limited. The Company has reached agreement on the principal commercial terms of the proposed restructuring and is working with the relevant parties and its advisers to finalise the definitive documentation required to implement these arrangements. The Directors remain confident that the restructuring process will be completed in the near term.

The Directors have prepared detailed cash flow forecasts covering a period of at least 12 months from the date of approval of these financial statements. In assessing the appropriateness of the going concern basis, the Directors considered forecast revenues, operating costs, financing obligations and committed capital expenditure together with a number of reasonably plausible downside scenarios, including potential delays to expected future production and revenues.

In making this assessment, the Directors considered the current performance of the Saltfleetby Gas Field, including the successful completion of the well workover programme during the period, which has resulted in an approximate 30 per cent increase in production rates. The Directors also considered the Group's obligations under its financing arrangements and derivative instruments, together with the additional hedging arrangements entered into during the period, which provide increased revenue visibility and cash flow certainty through to June 2027.

The Group's forecast cash flows remain sensitive to any prolonged interruption to gas production, a failure to complete the proposed restructuring or any breach of obligations under the Group's financing arrangements. Although current production levels exceed the volumes required to settle the Group's derivative obligations and the Directors believe there are no current operational concerns, a significant or sustained disruption to production could require the Group to seek waivers from lenders, renegotiate certain obligations or obtain additional funding.

Based on the Directors' current expectations, including forecast production levels, commodity prices, operating costs and the anticipated completion of the proposed restructuring, the Directors consider that the Group has sufficient resources to continue in operational existence for a period of at least 12 months from the date of approval of these financial statements. Accordingly, the Directors have adopted the going concern basis in preparing these interim financial statements.

Notwithstanding the Directors' expectation that the proposed restructuring will be successfully completed, the Group's dependence on continued gas production, compliance with the terms of its financing arrangements and the successful completion of the restructuring give rise to a material uncertainty that may cast significant doubt upon the Group's ability to continue as a going concern.

These financial statements do not include any adjustments that would result if the Group were unable to continue as a going concern.

Other Matters

The Group continually assesses potential obligations and claims arising in the ordinary course of business. Where appropriate, provisions are recognised in accordance with applicable accounting standards. The Directors are not aware of any contingent liabilities requiring disclosure at the reporting date.

The Group and its subsidiaries are, from time to time, parties to legal proceedings and claims arising in the ordinary course of business. The Directors do not consider that the outcome of any such proceedings or claims outstanding at the reporting date will have a material adverse effect on the Group's financial position, results of operations or cash flows.

3.            CRITICAL ACCOUNTING ESTIMATES AND SOURCES OF ESTIMATION UNCERTAINTY

In applying the accounting policies, the directors may at times require to make critical accounting judgements and estimates about the carrying amount of assets and liabilities. These estimates and assumptions, when made, are based on historical experience and other factors that the directors consider are relevant.

The key estimates and assumptions concerning the future and other key sources of estimation uncertainty at the end of the financial year, that have significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are reviewed are as stated below.

Key accounting judgements

(a)   Impairment of non-current asset

The group's non-current assets represent its most significant assets, comprising of oil production assets, exploration and evaluation (E&E) assets on its onshore site.

Management is required to assess exploration and evaluation (E&E) assets for indicators of impairment and has considered the economic value of individual E&E assets. The carrying amount of the E&E asset are subject to a separate review for indicators of impairment, by reference of the impairment indicators set out in IFRS 6, which is inherently judgemental.

Processing operations are large, scarce assets requiring significant technical and financial resources to operate. Their value may be sensitive to a range of characteristics unique to each asset and key sources of estimation uncertainty include proved reserve estimates, future cash flow expected to arise from the cash-generating unit and a suitable discount rate.

In performing impairment reviews, the Group assesses the recoverable amount of its operating assets principally with reference to the Group's independent competent person's report, estimates of future oil prices, operating costs, capital expenditure necessary to extract those reserves and the discount rate to be applied to such revenues and costs for the purpose of deriving a recoverable value.

As detailed in note 6 and 7, the carrying value amount of the Group's E&E assets and Oil production assets at 31 March 2026 were approximately £5.464m and £67.699m respectively. No impairments were made during the interim period.

4.            OPERATING SEGMENTS

Operating segments are prepared in a manner consistent with the internal reporting provided to the management as its chief operating decision maker in order to allocate resources to segments and to assess their performance. 

Currently, the Group's principal revenue is derived from the sale of natural gas and condensate and crude oil. All revenue arose from continuing operations within the United Kingdom. Therefore, management considers no detail of operating and geographical segments information is to be reported. Nonetheless, the Group's revenue can be classified into the following streams:

All the non-current assets of the Group are located in the United Kingdom.  All revenue arising from the sale of natural gas is derived from sales to Shell plc and represents over 93% of the Company's revenue.

5.            PROPERTY, PLANT AND Equipment

During the period, the Group incurred £nil in additions to property, plant and equipment (2025: £40,000). The depreciation charge for the period on the Group's property, plant and equipment was £3,832 (2025: £4,368).

6.            EXPLORATion ANd evALUaTion ASSETS

As of 31 March 2026, the Group retained a 25% interest in the Balcombe Field and is still the operator of the field.

7.            OIL AND GAS PRODUCTION ASSETS

As of 31 March 2026, the Group retained a 100% interest in the Saltfleetby Field, an 80% interest in the Lidsey field and an 80% in the Brockham field and is still the operator of all the fields.

8.            TRADE AND OTHER RECEIVABLES

The carrying amount of trade and other receivables approximates to their fair value.

9.            TRADE AND OTHER PAYABLES

Included within trade and other payables are obligations relating to the Overriding Royalty Interest attached to the Saltfleetby Gas Field, deferred consideration payable in connection with the acquisition of Saltfleetby Energy Limited and crystallised hedge settlement balances.

Subsequent to the reporting date, the Company has continued to progress the proposed restructuring of these obligations together with its financing arrangements. The Company has reached agreement on the principal commercial terms of the proposed restructuring and is currently working with the relevant parties and its advisers to finalise the definitive documentation required to implement these arrangements.

10.         LOAN PAYABLE

The Group's borrowings principally comprise the financing facility provided by a subsidiary of Trafigura Group Pte Ltd ("Trafigura").

On 22 February 2024, the Company entered into definitive loan documentation and drew down in full a £20 million secured loan facility (the "Facility"). The proceeds of the Facility were used to refinance existing debt, settle a portion of the deferred consideration payable in respect of the acquisition of Saltfleetby Energy Limited and provide funding for working capital and capital expenditure.

The Facility is secured by first fixed and floating charges over substantially all of the Group's assets, licences and contracts. The Group's gas sales and hedging arrangements were novated to Trafigura as part of the refinancing.

The Group incurred transaction costs of £1.85 million in connection with the Facility, which were capitalised and are being amortised over the term of the loan using the effective interest method. At 31 March 2026, the unamortised balance of these costs was £1.137 million (31 March 2025: £1.448 million; 30 September 2025: £1.263 million).

As a waiver in respect of the relevant covenant conditions had not been obtained at the reporting date, the Facility has been presented as a current liability in accordance with IFRS requirements. The lender has not demanded repayment and has continued to support the Company while discussions regarding the proposed restructuring have been ongoing.

Subsequent to the reporting date, the Company has continued to progress the restructuring of its financing arrangements with Trafigura as part of a broader restructuring of the Group's capital structure. The Company has reached agreement on the principal commercial terms of the proposed restructuring and is currently working with the relevant parties and its advisers to finalise the definitive documentation required to implement these arrangements.

11. DERIVATIVES LIABILITY

The Group enters into gas price derivative contracts in order to satisfy the requirements of its financing arrangements and to manage exposure to fluctuations in commodity prices.

Under the terms of the Trafigura financing facility, the Group is required to maintain rolling gas price protection in line with minimum hedging thresholds set out in the financing agreement.

During the period, the Group entered into additional gas hedging arrangements covering production from April 2026 to June 2027. These hedges secure approximately 7.745 million therms at an average weighted price of approximately 101 pence per therm.

When combined with the Group's existing hedge portfolio, the total hedged position at 31 March 2026 was approximately 12.3 million therms at a weighted average price of approximately 100 pence per therm through to June 2027, representing approximately 44 per cent of the Group's forecast gas production over that period.

The Group recognised a realised derivative gain of £0.899 million during the period (31 March 2025: realised derivative cost of £5.437 million) together with an unrealised fair value loss of £1.165 million (31 March 2025: gain of £4.412 million).

The net derivative liability at 30 September 2025 included crystallised hedge settlement balances of approximately £3.648 million. During the period these balances were invoiced by Trafigura and reclassified to trade and other payables. Accordingly, the derivative liability at 31 March 2026 reflects only the fair value of the Group's outstanding hedge portfolio, including additional hedging arrangements entered into during the period, and is therefore not directly comparable with the net derivative liability reported at 30 September 2025.

At 31 March 2026, crystallised and deferred hedge settlement balances of £5.391 million were included within trade and other payables.

As at 31 March 2026, the expected net cash settlement value of the Group's outstanding hedge portfolio, excluding crystallised hedge settlement balances reclassified to trade and other payables, resulted in a derivative liability of £2.945 million. The comparative net derivative liability at 30 September 2025 was £1.780 million, although this included crystallised hedge settlement balances subsequently reclassified to trade and other payables.

Expected settlement profile of outstanding hedge portfolio:

The Group's derivative financial instruments are measured at fair value through profit and loss.

The fair value of the derivative portfolio has been determined using observable market inputs, including forward commodity pricing curves and market data available at the reporting date supplied by the Group's derivative counterparty. The valuation is classified as Level 2 within the fair value hierarchy as defined by IFRS 13.

There have been no changes to the valuation techniques applied during the period.

In the event that production volumes are insufficient to satisfy contracted hedge volumes, the relevant derivative contracts may crystallise into cash settlement obligations at the applicable contractual settlement dates.

12.          EARNINGS PER SHARE

Basic EPS amounts are calculated by dividing the profit or loss for the period attributable to equity holders of the Group by the weighted average number of ordinary shares outstanding during the period.

Diluted EPS amounts are calculated by dividing the profit or loss for the period attributable to equity holders of the Group by the weighted average number of ordinary shares outstanding during the period plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares.

                The following reflects the income and share data used in the basic and diluted EPS computations:

The diluted profit per share is the same as the basic profit per share as there were no dilutive potential ordinary shares outstanding at the end of the reporting period.

13.          SEASONALITY OF GROUP BUSINESS

There are no seasonal factors that materially affect the operations of any company in the Group.

14.          PROVISIONS FOR OTHER LIABILITIES AND CHARGES

The Group makes full provision for the future costs of decommissioning of oil and gas production facilities and pipelines on the installation of those facilities. The amount of the provision is expected to be incurred up to 2029 when the producing oil and gas properties are expected to cease operations.

These provisions have been created based on the Group's internal estimates and expectation of the decommissioning costs likely to incur in the future. For the period under review, the directors have assessed that the discount rate and inflation rate to be applied to the current cost of decommissioning to be similar. On this basis, the current cost is considered to be similar to the discounted net present value.

15.          SUBSEQUENT EVENTS

There are no subsequent events to report.