At the forefront of the energy industry in 2021

Jan 12, 2022 / Blog

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Christopher Raggett, Co-Head of Corporate Finance, finnCap Capital Markets

“For nearly a decade commentators have spoken of the “energy transition” as the world moves away from a reliance on fossil fuels. But a transition never occurs precipitously – it is an evolution not a revolution. So there are opportunities across the energy sector as the transition continues – from traditional hydrocarbon plays representing great value to new technologies providing a renewable solution. At finnCap, we have experienced this first hand advising on over seven fundraises for our energy clients in 2021. We are proud to have provided an array of solutions across the energy spectrum and to be at the forefront of the industry in all its guises. We look forward to more of the same in 2022.”

Jonathan Wright, Research Director, Energy, finnCap Capital Markets

"The last year has seen the urgency behind the energy transition accelerate dramatically, with the issue moving front and centre in government, investor and corporate thinking. Traditional Oil and Gas companies are adapting their operations and evolving strategies to deliver on net zero ambitions, while new clean energy companies and technologies are emerging that can help facilitate the transition. The ultimate shape of future energy supply remains uncertain, there is no one size fits all approach, but at finnCap we are proud to play our part in helping clients from across the entire energy transition spectrum meet the climate challenges ahead."

Fuelling Savannah's acquisition strategy

$65m fundraise and $700m acquisitions

image of Savannah Energy December 2021  tombstone

We advised Savannah Energy Plc on its US$65m equity placing and subsequent acquisitions of both ExxonMobil and Petronas’s oil businesses in Chad and Cameroon for up to US$700m in December 2021.

Doubling Savannah's scale

These transactions more than double Savannah’s upstream scale in Africa and will transform Savannah into a significant West and Central African regional oil, gas, and midstream player.

Christopher Raggett, Co-Head of Corporate Finance, finnCap Capital Markets:

“These acquisitions will be transformational for Savannah and we are delighted to have assisted them with their very successful equity fundraise. 2021 was an exciting year for Energy companies and we have supported a number of our clients secure growth capital to execute on their plans for growth. We look forward to even more in the year to come.”

Atome, Gelion and Eneraqua Technologies lead green energy IPOs in 2021

finnCap Capital Markets has advised three companies approaching green energy solutions on their recent admissions to AIM.

This tallies with our recent survey of UK fund managers, demonstrating a dramatic shift over last year as all fund managers now appear to be using ESG factors in their portfolio decision-making process.

Atome Energy Plc: IPO and £9m Placing

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Spun out of our client President Energy, Atome is the first green hydrogen and ammonia production company listed on the UK market, with large-scale production planned in Iceland and Paraguay targeting the fast-growing global demand for green products.

Christopher Raggett, Co-Head of Corporate Finance, finnCap Capital Markets:

“Delighted to help Atome with its admission to AIM. In doing so we have introduced an innovative and exciting company with impeccable green credentials to the London capital markets. We have also added significant value for the shareholders of longstanding client, President Energy. Increased hydrogen production will be critical to hitting reduced emission targets and we are sure Atome will be at the forefront of this burgeoning economy.”

Gelion Plc: IPO and £19m fundraise

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Gelion is the Australian developer of a revolutionary zinc-bromide battery technology, which provides a safe, cost-effective, long-life and recyclable alternative to lithium-ion and lead-acid technologies for storage of renewable energy. 

Andrew Grimes, CEO, Gelion:

"Gelion's highly successful IPO was thanks in no small part to the efforts of its Nomad and broker finnCap who introduced us to many blue chip funds and supported all aspects of the listing process with the utmost professionalism."

Christopher Raggett, Co-Head of Corporate Finance, finnCap Capital Markets:

“We are very proud to bring Gelion to the London capital markets and assist with the next stage of their growth journey. They have a truly outstanding technology which has the potential to be at the forefront of the energy storage requirements of the future. We look forward to working with the team as they commercialise and grow.”

In conversation with Andrew Grimes, CEO, Gelion

In this interview, Christopher Raggett, Co-Head of Corporate Finance, finnCap Capital Markets, speaks with Gelion CEO Andrew Grimes about the listing process, why the company chose AIM, and what are Gelion's future growth plans on the public markets.

Eneraqua Technologies Plc: IPO and £20m Placing

Eneraqua IPO 2021 deal tombstone

We advised Eneraqua Technologies on its admission to AIM and £20m Placing. Eneraqua is a specialist in energy and water efficiency, helping customers to reduce carbon emissions and water consumption to meet corporate goals, comply with increasing regulation and save money.

LSE Green Economy Mark

The Company qualifies for the London Stock Exchange's Green Economy Mark from Admission, recognising that the Company derives 50% or more of its annual revenues from products and services that contribute to the global green economy.

Mitesh Dhanak, CEO, Eneraqua Technologies:

“Our admission to AIM is an exciting milestone for Eneraqua Technologies. The successful completion of our IPO represents the beginning of a new chapter as we look to accelerate our expansion into new markets and geographies. The London Stock Exchange’s Green Economy Mark, received today, recognises our Company’s ongoing contribution to the global green economy. I am delighted to welcome our new shareholders and would like to thank them for their support. We look forward to working with them in the years ahead as we build on our strong foundations and push forward with our growth plans."

Ed Frisby, Director, Corporate Finance, finnCap Capital Markets:

“Eneraqua supports their clients in the transition to Net Zero and with the achievement of sustainability goals. Our firm is delighted to support Eneraqua Technologies in its growth journey."

Oversubscribed placing helps IOG move from strength to strength

£8.5m Placing

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In September 2021, we advised IOG Plc on its oversubscribed £8.5m Placing, enabling allow the UK energy firm to trigger an “attractive extension option” for use of the Noble Hans Deul rig for a “dual-lateral well” in 2022. This will allow for the appraisal of Kelham North and Kelham Central prospects.

11 for 22: Investment ideas for 2022

At the start of every year, the finnCap Research Team looks for the individual companies within our coverage that potentially offer strong upside, be it from organic growth, restructuring, M&A, the trend towards ESG or promising emerging therapies. IOG Plc is included for 2022.

The start-up of IOG’s Saturn Banks gas development in early 2022 is set to transform the company into a highly cash-generative Southern North Sea gas producer. The frustrations at the delay of start-up from Q4 will melt away once the assets come onstream into a rampant UK gas market. IOG is well placed to reap this gas price windfall, which will help fund the next phase of the Saturn Banks development and progress potential future additional production hubs surrounding its key Saturn Banks pipeline infrastructure.

To read the report, including our IOG company note in full please click on the link below to register for our Research Portal.

Growing alongside Chariot over 2021

$23m and $9.5m Placing

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Over the course of 2021 we advised Chariot on placings worth in aggregate $31.5m, to help develop opportunities in the Anchois-1 discovery well, as well as fund a feasibility work programme on a large-scale green hydrogen project in Mauritania, and progress the power project pipeline under the firm’s recently-expanded partnership with Total Eren.

Transformational gas strategy comes up trumps

Excellent news this week for Chariot, who – after a number of drilling disappoints over the years – has seen its revamped, lower risk, Transformational Gas strategy come good at the first asking. The Anchois-2 appraisal/exploration well on the Lixus licence, offshore Morocco, has come up trumps, significantly exceeding expectations with multiple high-quality gas reservoirs encountered. Further analysis will be needed to fully understand the positive implications of the well on the gas resources of the expanded Anchois field and its development scale. However, even without fully de-risking the Anchois deep discoveries or raising resource estimates, and still giving zero value for the significant number of similar prospects identified on the licence, our risked-NAV and price target doubles from 27p to 54p/sh. This well result transforms Chariot’s Moroccan gas ambitions and sets it firmly on a path to becoming a strategically important transitional gas producer.

To read this Chariot research note in full please click on the link below to register for our Research Portal.

Placing for Jersey Oil & Gas fuels ambitions for North Sea oil hub

£15m Placing

Image of Jersey Oil & Gas 2021 tombstone

In March 2021, we advised Jersey Oil & Gas on a £15m Placing which aimed to deliver production from the planned n respect of its Greater Buchan Area ("GBA") development project at an industry leading carbon intensity level due to platform electrification.

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