TIDMCLON
RNS Number : 2106A
Clontarf Energy PLC
22 September 2022
22 September 2022
Clontarf Energy plc
("Clontarf" or the "Company")
Interim Statement for the period ended 30 June 2022
Clontarf Energy plc (AIM: CLON), the energy company focused on
Australia, Africa and Bolivia, announces its unaudited financial
results for the six months ended 30 June 2022:
The principal activities during this period were exploring
Australian North West Shelf WG 519-P Block , in which Clontarf
Energy holds a 10% Working Interest , and on which the partners
drilled the Sasanof-1 well in May/June 2022. While this well did
not flow commercial hydrocarbons, it showed that 1,000 metre
offshore wells can again be funded. Clontarf's liquidity and
international contacts helped attract funding above the then share
price.
The spectacular boom in LNG prices, and shipments to Asia, as
well as to the rationed European gas market, show that we are in a
new boom market for gas discoveries in safe jurisdictions.
Evaluation of deeper plays on the North West Shelf WG 519-P Block ,
as well as nearby offshore and onshore plays, opens up new
exploration potential.
Following the C-19 pandemic, Clontarf Energy also restored
contacts with the Ghanaian authorities to update the acreage to be
explored, and resuscitate the ratification of our signed Petroleum
Agreement on Tano 2A Block. Slowness in ratification of signed
contracts had constrained the development of Ghana's oil and gas
industry. The current Ghanaian government has indicated its
determination to recover momentum. Ghanaian fiscal terms are
competitive, while West African infrastructure steadily
improves.
Financial markets and farm-out interest in petroleum had been
depressed since the oil price war starting in 2014, and continuing
periodically until 2022. This had constrained our options for early
seismic or wells in Ghana or Chad. But recent price surges show
that major new investment is required to service global demand.
Clontarf plans to participate in the coming boom.
Aside from petroleum, Clontarf advanced its negotiations with
international Direct Lithium Extraction (DLE) processing experts,
and has agreed in principle on a Joint Venture to test brines in
medium-sized Bolivian salt-lakes. Our priority has been to maximise
throughput without relying on extensive evaporation ponds. At the
same time, the rising battery market now requires over 99.5%
Lithium content, with minimal impurities, especially Magnesium. It
has been a long process, but we now anticipate that high recoveries
may be possible with these specifications at a reasonable cost.
Nonetheless only full-scale production will confirm
performance.
There is rising market and investor interest in DLE, both in
Bolivia and elsewhere, due to surging demand for battery-grade
lithium salts, both in EVs, grid storage and other "Green
Transition" requirements. If laboratory test-work results are
satisfactory, we understand that Australian and other funding is
available to build an on-site pilot plant to production test the
Direct Lithium Extraction process.
Preparatory to this work, Clontarf recently conducted an
augering campaign on priority areas of the targeted salt-lakes,
subject as always to following strict environmental standards and
obtaining the necessary approvals from the Bolivian
authorities.
Anticipated lithium salts' demand will be impossible to serve
without developing several Bolivian salt-lakes. We expect that the
Bolivian Lithium Law will soon be updated to make clear the legal
basis for Joint Ventures with the authorities.
In oil and gas, the tightening hydrocarbons' supply-demand
balance promises a revival of exploration and the farm-out market.
Shortages of piped gas and LNG feedstock have driven prices to
record levels. There has rarely been a better time to hold
prospective acreage.
The resurgence of interest in African exploration and
development may lead to additional proposals in the coming
months.
In summary, Clontarf progresses its interests in Bolivia,
Australia, Chad and Ghana, maintaining cordial communications with
the relevant authorities, and continues to operate efficiently on
minimal expenditure.
Funding
Subject to technical verification of its exploration projects,
and permitting, Clontarf is confident of adequate funding, whether
in London or Australia, for near to medium term ongoing
activities.
David Horgan
Chairman
21 September 2022
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) 596/2014.
S
For further information please visit http://clontarfenergy.com
or contact:
Clontarf Energy
David Horgan, Chairman
Jim Finn, Director +353 (0) 1 833 2833
Nominated & Financial Adviser
Strand Hanson Limited
Rory Murphy
Ritchie Balmer +44 (0) 20 7409 3494
Broker
Novum Securities Limited
Colin Rowbury +44 (0) 207 399 9400
Public Relations
BlytheRay
Megan Ray +44 (0) 207 138 3206
Teneo
Luke Hogg
Alan Tyrrell
Ciara Wylie +353 (0) 1 661 4055
Clontarf Energy plc
Financial Information (Unaudited)
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Six Months Ended Year Ended
30 June 22 30 June 21 31 Dec 21
unaudited unaudited Audited
GBP'000 GBP'000 GBP'000
Administrative
expenses ( 414 ) ( 137 ) ( 402 )
Impairment of
exploration
and evaluation
assets - - ( 62 )
Sasanof project
expenditure
(Note 3) ( 4,095 ) - -
------------------------------------------ ------------------------------------------- --------------------------------------------
LOSS BEFORE
TAXATION ( 4,509 ) ( 137 ) ( 464 )
Income Tax - - -
COMPREHENSIVE
INCOME FOR THE
PERIOD ( 4,509 ) ( 137 ) ( 464 )
========================================== =========================================== ============================================
LOSS PER SHARE
- basic and
diluted (0.34p) (0.02p) (0.06p)
========================================== =========================================== ============================================
CONDENSED
CONSOLIDATED
STATEMENT OF
FINANICAL
POSITION
30 June 22 30 June 21 31 Dec 21
unaudited unaudited audited
GBP'000 GBP'000 GBP'000
ASSETS:
NON-CURRENT
ASSETS
Intangible
assets 868 932 868
868 932 868
------------------------------------------ ------------------------------------------- --------------------------------------------
CURRENT ASSETS
Other
receivables 1 5 2
Cash and cash
equivalents 188 470 344
------------------------------------------ ------------------------------------------- --------------------------------------------
189 475 346
TOTAL ASSETS 1,057 1,407 1,214
------------------------------------------ ------------------------------------------- --------------------------------------------
LIABILITIES:
CURRENT
LIABILITIES
Trade payables (608 ) ( 74 ) ( 65 )
Other payables ( 1,480 ) ( 1,360 ) ( 1,420 )
------------------------------------------ ------------------------------------------- --------------------------------------------
( 2,088 ) ( 1,434 ) ( 1,485 )
------------------------------------------ ------------------------------------------- --------------------------------------------
TOTAL
LIABILITIES ( 2,088 ) ( 1,434 ) ( 1,485 )
NET LIABILITES ( 1,031 ) ( 27 ) ( 271 )
========================================== =========================================== ============================================
EQUITY
Called-up share
capital 5,927 2,177 2,177
Share premium 10,985 10,985 10,985
Share based
payment
reserve 186 104 186
Retained
deficit ( 18,129 ) ( 13,293 ) ( 13,620 )
------------------------------------------ ------------------------------------------- --------------------------------------------
TOTAL EQUITY ( 1,031 ) ( 27 ) ( 272 )
========================================== =========================================== ============================================
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Called-up Share based
Share Share Payment Retained
Capital Premium Reserves Deficit Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
As at 1
January 2021 1,792 10,900 104 ( 13,156 ) ( 360 )
Shares issued 385 115 - - 500
Share issue
expenses - ( 30 ) - - ( 30 )
Total
comprehensive
income ( 137 ) ( 137 )
--------------------------------------- --------------------------------------- ------------------------------------------ ----------------------------------------- ---------------------------------------
As at 30 June
2021 2,177 10,985 104 ( 13,293 ) ( 27 )
Share based
payment charge - - 82 - 82
Total
comprehensive
income - ( 327 ) ( 327 )
--------------------------------------- --------------------------------------- ------------------------------------------ ----------------------------------------- ---------------------------------------
As at 31
December 2021 2,177 10,985 186 ( 13,620 ) ( 272 )
Shares issued 3,750 - - - 3,750
Total
comprehensive
income - - - ( 4,509 ) ( 4,509 )
------------------------------------------
As at 30 June
2022 5,927 10,985 186 ( 18,129 ) ( 1,031 )
======================================= ======================================= ========================================== ========================================= =======================================
CONDENSED
CONSOLIDATED CASH
FLOW Six Months Ended Year Ended
30 June 22 30 June 21 31 Dec 21
unaudited unaudited audited
GBP'000 GBP'000 GBP'000
CASH FLOW USED IN
OPERATING ACTIVITIES
Loss for the period ( 4,509 ) ( 137 ) ( 464 )
Impairment of
exploration and
evaluation assets - - 62
Share based payment
charge - - 82
Exchange movements 1 - 1
------------------------------------------ ------------------------------------------- -------------------------------------------
( 4,508 ) ( 137 ) ( 319 )
Movements in Working
Capital 603 49 120
------------------------------------------ ------------------------------------------- -------------------------------------------
CASH USED BY
OPERATIONS ( 3,905 ) ( 88 ) ( 199 )
NET CASH USED IN
OPERATING
ACTIVITIES ( 3,905 ) ( 88 ) ( 199 )
------------------------------------------ ------------------------------------------- -------------------------------------------
CASH FLOWS USED IN
INVESTING ACTIVITIES
Payments for
intangible assets - ( 2 ) ( 15 )
NET CASH USED IN
INVESTING
ACTIVITIES - ( 2 ) ( 15 )
------------------------------------------ ------------------------------------------- -------------------------------------------
CASH FLOW FROM
FINANCING ACTIVITIES
Issue of shares 3,750 500 500
Share issue expenses 0 (30) (30)
------------------------------------------ ------------------------------------------- -------------------------------------------
NET CASH GENERATED
FROM FINANCING
ACTIVITIES 3,750 470 470
------------------------------------------ ------------------------------------------- -------------------------------------------
NET
(DECREASE)/INCREASE
IN CASH AND CASH
EQUIVALENTS ( 155 ) 380 256
Cash and cash
equivalents at
beginning of the
period 344 89 89
Exchange loss on
cash and cash
equivalents ( 1 ) 1 ( 1 )
CASH AND CASH
EQUIVALENT AT THE OF THE PERIOD 188 470 344
========================================== =========================================== ===========================================
Notes:
1. INFORMATION
The financial information for the six months ended 30 June 2022
and the comparative amounts for the six months ended 30 June 2021
are unaudited. The financial information above does not constitute
full statutory accounts within the meaning of section 434 of the
Companies Act 2006.
The Interim Financial Report has been prepared in accordance
with IAS 34 Interim Financial Reporting as adopted by the U.K. The
accounting policies and methods of computation used in the
preparation of the Interim Financial Report are consistent with
those used in the Group 2021 Annual Report, which is available at
www.clontarfenergy.com
The interim financial statements have not been audited or
reviewed by the auditors of the Group pursuant to the Auditing
Practices board guidance on Review of Interim Financial
Information.
2. No dividend is proposed in respect of the period.
3. SASANOF PROJECT
On 9 May 2022 the Company announced that it had acquired a 10
per cent. interest in the high-impact multi-TCF (Trillion Cubic
Feet) Sasanof exploration prospect (located mainly within
Exploration Permit WA-519-P ) through the acquisition of a 10 per
cent. interest in Western Gas, which wholly owns the prospect.
The Acquisition consideration comprised of a cash consideration
of US$4,000,000, and 100,000,000 ordinary shares of 0.25p each in
the Company. In the event of a discovery being declared at the
Sasanof-1 Well, further consideration would have been payable.
On 6 June 2022 the Company announced that no commercial
hydrocarbons were intersected and the Sasanof-1 Well would be
plugged and permanently abandoned. De-mobilisation activities would
then commence. Accordingly, the total costs of GBP4,095,294
incurred on the Sasanof-1 Well were written off in full in the
current period.
4. GOING CONCERN
The Group incurred a loss for the period of GBP4,508,893 (2021:
GBP463,501) and had net current liabilities of GBP1,898,554 (2021:
GBP1,139,661) at the balance sheet date. These conditions, as well
as those noted below, represent a material uncertainty that may
cast doubt on the Group's ability to continue as a going
concern.
Included in current liabilities is an amount of GBP1,480,565
(2021: GBP1,420,565) owed in respect of unpaid remuneration due at
the balance sheet date. The directors have confirmed that they will
not seek settlement of these amounts in cash until 31 December
2024.
The Group had a cash balance of GBP188,459 (2021: GBP344,253) at
the balance sheet date. The directors have prepared cashflow
projections for a period of at least 12 months from the date of
approval of the financial statements which indicate that the group
will require additional finance to fund working capital
requirements and develop existing projects. As the Group is not
revenue or cash generating it relies on raising capital from the
public market. On 27 April 2022 the Group raised GBP3,500,000 on a
placing, further information is detailed in Note 9.
As in previous years the Directors have given careful
consideration to the appropriateness of the going concern basis in
the preparation of the financial statements and believe the going
concern basis is appropriate for these financial statements. The
financial statements do not include the adjustments that would
result if the Group and Company were unable to continue as a going
concern.
5. LOSS PER SHARE
Basic loss per share is computed by dividing the loss after
taxation for the year attributable to ordinary shareholders by the
weighted average number of ordinary shares in issue and ranking for
dividend during the year. Diluted earnings per share is computed by
dividing the loss after taxation for the year by the weighted
average number of ordinary shares in issue, adjusted for the effect
of all dilutive potential ordinary shares that were outstanding
during the year.
The following table sets out the computation for basic and
diluted earnings per share (EPS):
Six months Ended Year Ended
30 June 22 30 June 21 31 Dec 21
GBP'000 GBP'000 GBP'000
Loss for the
year
attributable
to equity
holders (4,509) (137) (464)
==================================== ================================== ==================================
Denominator Number Number Number
For basic
and diluted
EPS 1,328,908,309 763,344,558 817,717,558
==================================== ================================== ==================================
Basic and
diluted EPS (0.34p) (0.02p) (0.06p)
==================================== ================================== ==================================
Basic and diluted loss per share are the same as the effect of
the outstanding share options is anti-dilutive and is therefore
excluded.
6. INTANGIBLE ASSETS
30 June 30 June 31 Dec
22 21 21
GBP'000 GBP'000 GBP'000
Exploration
and
evaluation
assets
Cost:
At 1 January 8,640 8,625 8,625
Additions - 17 15
Closing
Balance 8,640 8,642 8,640
============================ ============================ ============================
Impairment:
At 1 January 7,772 7,710 7,710
Provision
for
impairment - - 62
Closing
Balance 7,772 7,710 7,772
============================ ============================ ============================
Carrying
value:
At 1 January 868 915 915
============================ ============================ ============================
At period
end 868 932 868
============================ ============================ ============================
Regional 30 Jun 30 Jun 31
Analysis 22 21 Dec21
GBP'000 GBP'000 GBP'000
Bolivia - 79 -
Ghana 868 853 868
---------------------------- ---------------------------- ----------------------------
868 932 868
============================ ============================ ============================
Exploration and evaluation assets relate to expenditure incurred
in prospecting and exploration for lithium, oil and gas in Bolivia
and Ghana. The directors are aware that by its nature there is an
inherent uncertainty in exploration and evaluation assets and
therefore inherent uncertainty in relation to the carrying value of
capitalised exploration and evaluation assets.
During 2018 the Group resolved the outstanding issues with the
Ghana National Petroleum Company (GNPC) regarding a contract for
the development of the Tano 2A Block. The Group has signed a
Petroleum Agreement in relation to the block and this agreement
awaits ratification by the Ghanaian government.
The Company is in negotiations with the Ministry of Electricity
Technologies and the State Lithium Company in Bolivia on
exploration and development of salt-lakes in accordance with law.
Samples have been analysed and process work is underway.
The Group incurred expenditure of GBP62,074 in Bolivia up to 31
December 2021. As no licences have yet been granted, the directors
decided to impair the costs. Accordingly, an impairment of
GBP62,074 was been recorded by the Group in the prior year.
The directors believe that there were no facts or circumstances
indicating that the carrying value of intangible assets may exceed
their recoverable amount and thus no impairment review was deemed
necessary by the directors. The realisation of these intangibles
assets is dependent on the successful discovery and development of
economic deposit resources and the ability of the Group to raise
sufficient finance to develop the projects. It is subject to a
number of potential significant risks, as set out below.
The Group's activities are subject to a number of significant
potential risks including:
-- licence obligations;
-- exchange rate risks;
-- uncertainties over development and operational costs;
-- political and legal risks, including arrangements with
Governments for licences, profit sharing and taxation;
-- foreign investment risks including increases in taxes,
royalties and renegotiation of contracts;
-- title to assets;
-- financial risk management;
-- going concern; and
-- ability to raise finance.
7. TRADE PAYABLES
30 June 30 June 31 Dec
22 21 21
GBP'000 GBP'000 GBP'000
Creditor
- Western
Gas 550 - -
Trade
payables 48 64 49
Other
accruals 10 10 16
---------------------------- ---------------------------- ----------------------------
608 74 65
============================ ============================ ============================
Creditor - Western Gas relate to cash calls due for costs
incurred on the Sasanof-1 Well accrued but not paid at period
end.
8. OTHER PAYABLES
30 June 30 June 31 Dec
22 21 21
GBP'000 GBP'000 GBP'000
Amounts due
for unpaid
remuneration 1,480 1,360 1,420
1,480 1,360 1,420
============================ ============================ ============================
Other payables relate to amounts due to directors and former
director for remuneration accrued but not paid at period end.
9. SHARE CAPITAL
Allotted,
called-up
and fully
paid:
Number Share Capital Premium
GBP'000 GBP,000
At 1
January
2021 716,979,964 1,792 10,900
Issued
during
the
period 153,846,153 385 115
Share
issue
expenses - - (30)
---------------------------------- ------------------------------------- -----------------------------
At 30 June
2021 870,826,117 2,177 10,985
Issued - - -
during the
period
---------------------------------- ------------------------------------- -----------------------------
At 31
December
2021 870,826,117 2,177 10,985
Issued
during
the
period 1,500,000,000 3,750 -
At 30 June
2022 2,370,826,117 5,927 10,985
================================== ===================================== =============================
On 6 May 2021 the Company raised GBP500,000 via a placing of
153,846,153 ordinary shares at a price of 0.325p per share.
Proceeds raised were used to provide additional working capital and
fund development costs.
On 5 May 2022 the Company raised GBP3,500,000 via a placing of
1,400,000,000 ordinary shares at a price of 0.25p per share.
Proceeds raised were used to finance the drilling of the Sasanof-1
Well in Western Australia.
On 9 May 2022, as part of the acquisition of a 10% interest in
the Sasanof-1 Well, the Company issued 100,000,000 shares at a
price of 0.25p per share to Western Gas Australia.
10. SHARE BASED PAYMENTS
SHARE OPTIONS
The Group issues equity-settled share-based payments to certain
directors and individuals who have performed services for the
Group. Equity-settled share-based payments are measured at fair
value at the date of grant.
During 2019, 40,500,000 options with an exercise price of 0.7p
were granted with a fair value of GBP246,788. These options will
vest over a 3 year period and will be capitalised or expensed on a
straight line basis over the vesting period.
Fair value is measured by use of a Black-Scholes valuation
model.
The Group plan provides for a grant price equal to the average
quoted market price of the ordinary shares on the date of
grant.
30 Jun 22 30 Jun 21 31 Dec21
Options Weighted Options Weighted Options Weighted
Number average Number average Number average
'000 exercise '000 exercise '000 exercise
price in price in price in
pence pence pence
At 1 January 40,500 0.7 40,500 0.7 40,500 0.7
Issued - - -
---------------------------- ----------------------------- ---------------------------- ----------------------------- ---------------------------- -----------------------------
Outstanding
at end of
period 40,500 0.7 40,500 0.7 40,500 0.7
---------------------------- ----------------------------- ---------------------------- ----------------------------- ---------------------------- -----------------------------
Exercisable
at end of
period 30,500 0.7 27,167 0.7 30,500 0.7
============================ ============================= ============================ ============================= ============================ =============================
WARRANTS
30 Jun 22 30 Jun 21 31 Dec21
Warrants Weighted Warrants Weighted Warrants Weighted
Number average Number average Number average
'000 exercise '000 exercise '000 exercise
price in price in price in
pence pence pence
At 1 January - - - - -
Issued 435,683 0.25 - - - -
----------------------------- ----------------------------- ----------------------------- ----------------------------- ----------------------------- -----------------------------
Exercisable
at end of
period 435,683 0.25 - - - -
============================= ============================= ============================= ============================= ============================= =============================
On 12 January 2022 , the Company announced that as a result of
it accruing and not paying in cash, salaries of the Directors since
2010 , t he accrued liability as at 31 December 2021 for the three
longest serving directors (Dr Teeling, Mr Horgan and Mr Finn) was
GBP1,340,564. The Board remains cognisant of the need to conserve
cash resources in the current environment and therefore Dr Teeling
(who has now retired from the Board), Mr Horgan and Mr Finn have
agreed to continue deferring payment of this amount, in cash, until
the end of 2024.
In consideration for this past and continued deferral, the
Company have issued 3.25 warrants over Ordinary Shares per each 1p
of accrued salary due until 31 December 2021. The Warrants are
exercisable at 0.25p at any time until 11 January 2025 and have
been allocated as follows:
Accrued salary Warrants exercisable
(GBP) at conversion price
of 0.25p per share
David Horgan GBP569,037 184,937,025
John Teeling GBP395,704 128,603,800
James Finn GBP375,823 122,142,475
Accordingly, in aggregate, 435,683,300 Warrants have been
issued. Any exercise of the Warrants is restricted to the extent
that, if by exercising, the Warrant holders in aggregate hold
greater than 29.9 per cent. of the total voting rights of the
Company.
For the avoidance of doubt, the deferred salaries, unless
otherwise settled, will remain payable in cash after the end of
2024 .
11. POST BALANCE SHEET EVENTS
There were no material post balance sheet events affecting the
group or company.
12. The Interim Report for the six months to 30 June 2022 was
approved by the Directors on 21 September 2022.
13. The Interim Report will be available on the Company's
website at www.clontarfenergy.com .
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
IR PPUCPBUPPGQG
(END) Dow Jones Newswires
September 22, 2022 02:00 ET (06:00 GMT)
Clontarf Energy (LSE:CLON)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
Clontarf Energy (LSE:CLON)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024
