TIDMPPP
RNS Number : 1745O
Pennpetro Energy PLC
30 September 2019
30 September 2019
Pennpetro Energy plc
("Pennpetro", the "Company" or the "Group")
Results for the 6 months ended 30 June 2019 (Unaudited)
Pennpetro Energy, an independent oil and gas company focusing on
production in the Gonzales Oil Field in Texas, USA, announces today
its financial results for the six months ended 30 June 2019.
Financial summary
-- The financial results for the six months ended 30 June 2019
show a loss after tax of $929,000 (at H1 2018: loss $457,000).
-- The Group's borrowings, which were non-current, at 30 June
2019 were $5,996,000 (at H1 2018: $6,021,000).
-- The Group expects to generate revenue in H2 2019 from its
first horizontal well and intends to use its cash balances and
cashflow from oil production to fund additional development of its
lease interests in Gonzales.
-- During the period the Company raised net proceeds of $945k
through the issue of 1,433,702 new shares.
Operational summary
-- Secured increased ownership of City of Gonzales license, with
working interest increasing from 75% to 100%. This translates into
an uplifted interest of 4,000 MBBL and 2,000 MMcf of gas from 2,000
MBBL of oil and 1,000 MMcF of gas, of proven petroleum
reserves.
-- The Group's undiscounted Net Revenue Interest increases to
$124,000,000 (at H1 2018: $62,000,000) as a result of the
additional acquired interests, based upon most recent CPR prepared
in December 2017 out to 2031 at an average price of oil of $55,
non-escalated, per barrel West Texas Intermediate.
-- Following disruption in pumping activities during the period,
due to issues in the City of Gonzales electrical grid, operations
have now resumed, leading towards commencement of production from
COG#1-H.
Outlook
In line with our strategy, all our operations are in highly
active plays where the economics of drilling and producing remain
attractive at sub-US$30 oil prices. This highlights the success we
have had in taking advantage of the prior industry downturn to
accelerate the positioning of our South Texas leasehold position in
favour of the Austin Chalk and Eagleford Shale. We can now add the
unexpected bonus of the Buda Limestone formation reserves which we
can now confidently state will increase our overall proved oil
reserves, albeit we await a formal new CPR to be prepared in this
regard. Pennpetro's priorities for the remainder of 2019 are
focused on project delivery:
-- Commence full production of the COG#1-H well
-- Acquire additional land leases and carry out a 3-D seismic survey
Chairman's Statement
I am pleased to advise that, following an interruption to
pumping activities, the Company has resumed steady progress towards
bringing the first well COG#1-H into production. During this
reporting period the Company also issued 1,433,702 new shares,
raising net proceeds of $945k.
During the period under review the Company encountered
electricity delivery issues due to redevelopment work required for
the City of Gonzales electrical grid system within the area of the
production facility, and electrical surges which caused damage to
our jet pumping unit, together with various ancillary units,
rendering them inoperable. All ancillary units have been replaced
and a new unit incorporating anti-surge protection technologies has
been successfully installed with pumping being resumed.
The testing of this infrastructure is ongoing. Test oil will be
delivered into the tanks, with salt water being disposed by a daily
tanker pickup from site.
Ongoing negotiations with the pumping unit supplier, Tech Flo,
are ongoing with regard to the technical liability issues pursuant
to this issue, as it is the Company's position that the systems
supplied were inadequate to account for higher electrical
currents.
The Operator, pursuant to the State of Texas petroleum reporting
requirements, has formally advised the Texas Railroad Commission
that the COG#1-H is completed as a producer initially to the Buda
formation, with initial Buda oil having been delivered into the
tanks. As we near decisions regarding the timing of the drilling of
the second horizontal well, which will be located in the northern
section of the leases, the Company took the decision to enable its
subsidiary Nobel Petroleum USA, Inc., ("Nobel") to take over as
Operator. Filings have been delivered to the Texas Railroad
Commission. Current Operator management will continue to be
utilised alongside the Nobel management team. In conjunction with
this development, as reported recently, we have increased our
interest in the City of Gonzales oilfield leases to 100% from our
previous 75% holding.
Testing of the Austin Chalk horizontal formation which delivered
oil over the shakers during drilling, will be initiated once a full
longer-term test of the lower located Buda reservoir has been
finalised. The Buda limestone reserves have never been included in
our evaluation of our reserves, nor in the Competent Persons Report
(CPR) that accompanied the prospectus. We are aware that the Buda
has been and is currently a successful target for vertical
completions in the Gonzales area. Generally, the Buda limestone
formation has an EUR of between 140,000 - 175,000 bbls, and thus as
now having been proved as a flowing production formation within the
Company's acreage can be included within the Company's future
technical evaluations and further vertical infill drilling
locations on reduced spacing parameters.
As previously reported, Nobel Petroleum UK Limited, the
Company's wholly owned subsidiary, through its US-based
subsidiaries owns a portfolio of leasehold petroleum mineral
interests centred on the City of Gonzales, in southeast Texas,
comprising the undeveloped central portion of the Gonzales Oil
Field. It is intended that this legacy structure be simplified by
the transfer of the US subsidiaries direct to the Company and the
removal of Nobel UK from ownership. We have written to HMRC
advising that we have requested Companies House to remove Nobel UK
from registry. The petroleum assets include approximately 1,000
leases covering 2,500 acres of land and contain proven oil
condensates.
We have once again increased our holding in the oil asset and
whereas at IPO we owned 50% of the total reserves we now own 100%.
The CPR prepared in advance of the acquisition estimated that, as a
result of the acquisition, Pennpetro Group would now have a Working
Interest in the portfolio of petroleum mineral leases of 4,000 MBBL
of oil and 2,000 MMcf of gas.
The period under review has been challenging due to a period of
cessation of our pumping activities but one of real progress in our
increased ownership and the Company is now well placed to
capitalise on the recovery in sentiment within the US and global
petroleum sectors.
We remain confident in our petroleum assets and our US
operations, and the Board will continue to build upon what has been
a promising and busy period for the Group.
Keith Edelman
Non-Executive Director, Chairman
30 September 2019
Executive Director's Statement
Operations
As reported in the prior period, we had begun completion
operations which entailed the construction of a new tankerage farm
and the Operator was pump testing to remove accumulated water from
the reservoirs, while at the same time recovering oil as the
oil-cut progressively increased. As reported in the Chairman's
Statement, we encountered issues with the pumping unit and certain
ancillary installations due to factors out of our control, namely
problems associated with the electrical delivery to the production
site from the City of Gonzales electricity grid which necessitated
the City to overhaul its grid systems. This further resulted in the
destabilization of the electrical engineering to the production
facility which rendered the pumping units and certain ancillary
units inoperable due to overload failures. We are in negotiations
with Tech Flo, from whom the jet pumping unit was purchased, as we
consider the facility supplied should not have been compromised
with differing electrical inputs.
We have addressed this electrical hiatus with new built
componentry incorporating anti-surge protection to both the jet
pumping units and ancillary equipment. Pumping is ongoing with the
removal of the built-up reservoir water during the period of
pumping inactivity with a view to returning to oil deliveries and
sales.
As prior reported the Operator filed formal completion
certificates with the Texas Railroad Commission confirming that the
COG#1-H well is being completed as an initial producer, albeit full
testing is ongoing. In addition, the Operator had also filed the
requisite Pooling and Divisional Orders necessary. In the context
of looking forward to the drilling of the second horizontal well
which is designated as COG#3H and will be located within the
northern leases section, in conjunction with our increasing our
ownership of the oilfield leases from 75% to 100%, we are taking
steps to assume the Operatorship of the project. We have filed with
the Texas Railroad Commission and wait formal transfer. Our
management team will also have alongside the current Operator's
management team to expand and assist our ongoing activities.
Our land management team has continued to acquire contiguous
acreage. We also agreed with the City of Gonzales administration
(formal council meeting approvals) to reposition certain of our
petroleum leases by amending certain boundaries and at the same
time we have been able to extend our drilling timelines for those
particular leases by another initial twelve months. This
re-programming has enabled the revisions that will be necessary for
the 3-D seismic operations that we are in current discussions over.
Permitting for this well is ongoing and is expected to be completed
by the year's end.
Within this oil price environment, Pennpetro has emerged from
the downturn as a low-cost, asset-backed US onshore oil and gas
business. Subject to oil prices, market conditions and sentiment, I
remain confident that we can deliver our strategy by acquiring
leases in active and producing US onshore plays and proving up the
reserves by drilling new wells. In furtherance of this agenda, our
subsidiary Pennpetro USA Corp., with a mandate to seek out
additional conventional producing petroleum assets only, which
possess the ability to be upscaled with the adoption of
unconventional horizontal drilling techniques, is currently
examining a number of Texas opportunities in the Gulf Coast Region,
where unconventional technology can be applied to conventional
reservoirs in established fields which have been de-risked by prior
vertical drilling. This will be fully reported on when
progressed.
This platform is one that has, at its core, the active
management of all types of risk associated with the oil and gas
industry. Broadly speaking development risk is managed by focusing
on proven formations; execution risk is managed by participating in
drilling activities alongside established industry partners and
operators. Additionally, our operations offset those of major
industry players, such as EOG Resources, Inc., a $67.5 billion
goliath; individual well risk is managed by building a diversified
portfolio of leases and wells and limiting the amount of interest
the Group holds in any one well; meanwhile oil price risk is
managed by focusing on areas that require relatively low oil prices
to breakeven and ensuring our cost base, capital commitments and
financing costs remain low, manageable and flexible.
As prior reported, EOG Resources has now also turned its full
attention to the Austin Chalk formations both in Texas and its
continuance into Louisiana with recent acquisitions by
Conoco-Phillips, Marathon Oil Corp, alongside the recent formation
of Magnolia Oil by TPG Pace Energy and EnerVest to specifically
focus on the Austin Chalk, as the Austin Chalk has a higher oil
content then Permian drilled completions. Gonzales County sits
right in the middle of the Austin Chalk trend.
Pennpetro's Board currently comprises four Directors, who
collectively have extensive international experience and a proven
track record in investment, corporate finance and business
acquisition, operation and development and are well placed to
implement the Company's business objectives and strategy.
We believe the Company's Board and US management team is strong
in terms of having the right mix of industry expertise covering all
key areas of the business, including lease acquisition, geology,
engineering, and finance.
Oil Price
West Texas Intermediate ("WTI") has continued its strength
throughout the period under review averaging US$57.31 /bbl. The
value of WTI as at 18 September 2019 was US$58.25/bbl (source:
Bloomberg Markets). We will receive a premium of approximately
US$5/bbl for Gonzales crude oil deliveries.
Outlook
In line with our strategy, all our operations are in highly
active plays where the economics of drilling and producing remain
attractive at sub-US$30 oil prices. This highlights the success we
have had in taking advantage of the prior industry downturn to
accelerate the positioning of our South Texas leasehold position in
favour of the Austin Chalk and Eagleford Shale. To this we can now
add the unexpected bonus of the Buda Limestone formation reserves
which we can now confidently state will increase our overall proved
oil reserves, albeit we await a formal new CPR to be prepared in
this regard.
With a strategic foothold in these prolific, low-cost plays
established and a proven management team in place, we will look to
further expand our position in this US onshore sweet spot, as and
when management considers it most advantageous to do so.
For 2019, our main City of Gonzales objectives are to commence
full production of the COG#1-H well, acquire additional land leases
and basis a review of legacy 2D seismic to carry out a 3-D seismic
survey of our land interests. I look forward to providing updates
on our progress in the year ahead.
Finally, I would like to thank the Board, management team and
all our advisers for their hard work over the period under review
and also to our shareholders for their continued support.
Thomas Evans
Executive Director
30 September 2019
For further information, please contact:
Pennpetro Energy plc
Thomas Evans tme@pennpetroenergy.co.uk
Instinctif
David Simonson +44 (0)20 7457 2020 pennpetro@instinctif.com
NOTES TO EDITORS
Pennpetro Energy is an independent oil and gas company focusing
on production in the Gonzales Oil Field in Texas, USA. Shares in
the company were admitted to the Official List of the London Stock
Exchange by way of a Standard Listing on 21 December 2017.
Further information on the Company can be found at
www.pennpetroenergy.co.uk
IMPORTANT NOTICE - FORWARD-LOOKING STATEMENTS
This announcement may include statements that are, or may be
deemed to be, "forward-looking statements". These forward-looking
statements may be identified by the use of forward-looking
terminology, including the terms "believes", "estimates", "plans",
"projects", "anticipates", "expects", "intends", "may", "will" or
"should" or, in each case, their negative or other variations or
comparable terminology, or by discussions of strategy, plans,
objectives, goals, future events or intentions. These
forward-looking statements include all matters that are not
historical facts and involve predictions. Forward-looking
statements may and often do differ materially from actual results.
In addition, even if results or developments are consistent with
the forward-looking statements contained in this announcement,
those results or developments may not be indicative of results or
developments in subsequent periods. Any forward-looking statements
reflect the Group's current view with respect to future events and
are subject to risks relating to future events and other risks,
uncertainties and assumptions relating to the Group's business,
results of operations, financial position, liquidity, prospects,
growth or strategies and the industry in which it operates.
Forward-looking statements speak only as of the date they are made
and cannot be relied upon as a guide to future performance.
Strategic report and business review
To the members of Pennpetro Energy plc
Cautionary statement
This business review has been prepared solely to provide
additional information to shareholders to assess the Company's
strategies and the potential for those strategies to succeed.
The business review contains certain forward-looking statements.
These statements are made by the Directors in good faith based on
the information available to them up to the time of their approval
of this report and such statements should be treated with caution
due to the inherent uncertainties, including both economic and
business risk factors, underlying any such forward looking
information.
This business review has been prepared for the Group as a whole
and therefore gives greater emphasis to those matters which are
significant to Pennpetro Energy plc and its subsidiary undertakings
when viewed as a whole.
The Group's business model
Pennpetro's intention is to become an active independent North
American development production company.
The key elements of Pennpetro's strategy for achieving this goal
are:
-- The creation of value through production development success
and operational strengths, commencing with the Group's COGLA
assets.
-- Focusing on commercialisation and monetisation of oil and gas
discoveries, and potentially utilising cash flows from initial
projects to fund the acquisition or development of future
projects.
-- Active asset portfolio management.
-- Positioning the Company as a competent partner of choice to
maximise opportunities and value throughout the E&P
lifecycle.
Summary results for the 2019 interim financial period
A summary of the key financial results is set out in the table
below:
Half year Full year Half year
ended ended ended
30 Jun 2019 31 Dec 2018 30 Jun 2018
$'000 $'000 $'000
--------------------- ------------------------- ------------ ------------
Revenue - - -
Operating expenses (645) (595) (321)
--------------------- ------------------------- ------------ ------------
Operating loss (645) (595) (321)
Finance income - 273 -
Finance costs (284) (467) (136)
--------------------- ------------------------- ------------ ------------
Loss before tax (929) (789) (457)
Taxation - - -
--------------------- ------------------------- ------------ ------------
Loss for the period (929) (789) (457)
Interest
The net interest cost for the Group for the period was $0.3m
(2018: $0.1m).
Loss before tax
Loss before tax for the period was $0.9m (2018: $0.5m).
Taxation
Taxation charge was $nil for the period (2018: $nil).
Earnings per share
Basic and diluted earnings per share for the period were 1.29c
loss (2018: 0.64c loss).
Financial position
The Group's balance sheet as at 30 June 2019 can be summarised
as set out in the table below:
Assets
Liabilities Net assets
GBP'm GBP'm GBP'm
$'000 $'000 $'000
-------------------------------- ------- ------------ -----------
Non-current assets 5,499 - 5,499
Current assets and liabilities 814 (142) 672
Loans and provisions - (5,996) (5,996)
Total as at 30 June 2019 6,313 (6,138) 175
-------------------------------- ------- ------------ -----------
Total as at 31 December 2018 5,977 (6,002) (25)
-------------------------------- ------- ------------ -----------
Total as at 30 June 2018 6,385 (6,128) 257
-------------------------------- ------- ------------ -----------
Cash flow
Net cash inflow for 2019 was $nil (2018: $nil).
Consolidated Income Statement
For the six months ended 30 June 2019
Notes Unaudited Audited Unaudited
Half year Full year Half year
ended ended ended
31 Dec 30 Jun
30 Jun 2019 2018 2018
Continuing operations $'000 $'000 $'000
Revenue - - -
Cost of sales - - -
---------------------------------- ------ ------------ ----------- -----------
Gross profit - - -
---------------------------------- ------ ------------ ----------- -----------
Operating expenses (645) (595) (321)
---------------------------------- ------ ------------ ----------- -----------
Operating loss (645) (595) (321)
Finance income - 273 -
Finance expense (284) (467) (136)
Loss before income tax (929) (789) (457)
Taxation - - -
Loss for the period attributable
to the owners of the Company (929) (789) (457)
---------------------------------- ------ ------------ ----------- -----------
Loss per share attributable
to owners of the Company
From continuing operations:
Basic & diluted (cents per
share) 2 (1.29) (1.11) (0.64)
Consolidated Statement of Comprehensive Income
For the six months ended 30 June 2019
Unaudited Audited Unaudited
Half year Full year Half year
ended ended ended
30 Jun 2019 31 Dec 2018 30 Jun 2018
$'000 $'000 $'000
--------------------------------- ----------- ----------- -----------
Loss for the period (929) (789) (457)
Other comprehensive income
--------------------------------- ----------- ----------- -----------
Items that may be subsequently
reclassified as profit or loss
Currency translation differences 4 (27) (16)
--------------------------------- ----------- ----------- -----------
Total comprehensive loss for the
year attributable to the owners
of the Company (925) (816) (473)
--------------------------------- ----------- ----------- -----------
Consolidated Balance Sheet
As at 30 June 2019
Notes Unaudited Audited Unaudited
30 Jun 2019 31 Dec 2018 30 Jun 2018
$'000 $'000 $'000
Non-current assets
------------------------------- ------ ------------- ------------- -------------
Property, plant & equipment 3 1,335 1,280 1,267
Intangible assets 4 4,163 4,007 2,597
------------------------------- ------ ------------- ------------- -------------
Total non-current assets 5,498 5,287 3,864
------------------------------- ------ ------------- ------------- -------------
Current assets
------------------------------- ------ ------------- ------------- -------------
Trade and other receivables 345 524 1,703
Short term investments 470 166 796
Cash - - 22
------------------------------- ------ ------------- ------------- -------------
Total current assets 815 690 2,521
------------------------------- ------ ------------- ------------- -------------
Total assets 6,313 5,977 6,385
=============================== ====== ============= ============= =============
Equity and liabilities
------------------------------- ------ ------------- ------------- -------------
Share capital 5 927 908 908
Share premium 5 1,551 625 625
Convertible reserve 6,022 6,022 6,022
Reorganisation reserve (6,578) (6,578) (6,578)
Foreign exchange reserve (3) (7) 4
Share based payment reserve 240 60 -
Retained losses (1,984) (1,055) (724)
------------------------------- ------ ------------- ------------- -------------
Total equity 175 (25) 257
------------------------------- ------ ------------- ------------- -------------
Non-current liabilities
------------------------------- ------ ------------- ------------- -------------
Borrowings 5,996 5,863 6,021
------------------------------- ------ ------------- ------------- -------------
Total non-current liabilities 5,996 5,863 6,021
------------------------------- ------ ------------- ------------- -------------
Current liabilities
------------------------------- ------ ------------- ------------- -------------
Trade and other payables 142 139 107
------------------------------- ------ ------------- ------------- -------------
Total current liabilities 142 139 107
------------------------------- ------ ------------- ------------- -------------
Total Equity and Liabilities 6,313 5,977 6,385
=============================== ====== ============= ============= =============
Consolidated statement of changes in equity
For the six months ended 30 June 2019
Share Share premium Convertible Share based Re-organisation Foreign Retained Total
capital reserve payment reserve exchange losses Equity
reserve reserve
$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
------------------- -------- ------------- ----------- ----------- --------------- ---------- -------- -------
Balance at 1
January 2018 908 625 6,022 - (6,578) 20 (266) 731
Loss for the period - - - - - - (457) (457)
Currency
translation
differences - - - - - (16) - (16)
Total comprehensive
loss for
the period - - - - - (16) (457) (473)
------------------- -------- ------------- ----------- ----------- --------------- ---------- -------- -------
Balance at 30 June
2018 908 625 6,022 - (6,578) 4 (723) 258
------------------- -------- ------------- ----------- ----------- --------------- ---------- -------- -------
Loss for the period - - - - - - (332) (332)
Currency
translation
differences - - - - - (11) - (11)
Total comprehensive
loss for
the period - - - - - (11) (332) (343)
------------------- -------- ------------- ----------- ----------- --------------- ---------- -------- -------
Share based
payments - - - 60 - - - 60
Balance at 31
December 2018 908 625 6,022 60 (6,578) (7) (1,055) (25)
Loss for the period - - - - - - (929) (929)
Currency
translation
differences - - - - - 4 - 4
Total comprehensive
loss for
the period - - - - - 4 (929) (925)
------------------- -------- ------------- ----------- ----------- --------------- ---------- -------- -------
Shares issued 19 1,002 - - - - - 1,021
Cost of shares
issued - (76) - - - - - (76)
Share based
payments - - - 180 - - - 180
------------------- -------- ------------- ----------- ----------- --------------- ---------- -------- -------
Balance at 30 June
2019 927 1,551 6,022 240 (6,578) (3) (1,984) 175
=================== ======== ============= =========== =========== =============== ========== ======== =======
Consolidated Cash Flow Statement
For the six months ended 30 June 2019
Unaudited Audited Unaudited
Half year Full year Half year
ended ended ended
30 Jun 2019 31 Dec 2018 30 Jun 2018
$'000 $'000 $'000
-------------------------------------- ------------ ------------ ------------
Cash flows from operating activities
-------------------------------------- ------------ ------------ ------------
Loss for the period (929) (789) (457)
Adjustment for:
Depreciation 1 3 -
Amortisation 45 100 55
Unrealised foreign exchange 4 (183) -
Finance income - (273) -
Finance costs 284 467 136
Share based payment charge 180 60 -
(Increase)/decrease in receivables (13) (169) (219)
Increase/(decrease) in payables (47) (71) (103)
Interest paid (102) (196) (136)
Net cash used in operating activities (577) (1,051) (724)
-------------------------------------- ------------ ------------ ------------
Cash flows from investing activities
-------------------------------------- ------------ ------------ ------------
Purchase of development expenditure (8) (750) (481)
Purchase of property, plant &
equipment (56) (56) -
Short-term investments (304) 1,906 1,277
Net cash used in investing activities (368) 1,100 796
-------------------------------------- ------------ ------------ ------------
Cash flows from financing activities
-------------------------------------- ------------ ------------ ------------
Shares issued 1,021 - -
Cost of shares issued (76) - -
(Repayment)/proceeds from borrowings - (71) (72)
Net cash generated from financing
activities 945 (71) (72)
-------------------------------------- ------------ ------------ ------------
Net increase/(decrease) in cash
and cash equivalents - (22) -
-------------------------------------- ------------ ------------ ------------
Cash and cash equivalents brought
forward - 22 22
-------------------------------------- ------------ ------------ ------------
Exchange gain on cash and cash
equivalents - - -
-------------------------------------- ------------ ------------ ------------
Cash and cash equivalents carried
forward - - 22
-------------------------------------- ------------ ------------ ------------
General Information
The Consolidated Financial Statements of Pennpetro Energy plc
("the Company") consists of the following companies (together "the
Group"):
Pennpetro Energy plc UK registered company
Nobel Petroleum UK Limited UK registered company
Nobel Petroleum USA Inc US registered company
Nobel Petroleum LLC US registered company
Pennpetro USA Corp US registered company
The Company is a public limited company which is listed on the
standard market of the London Stock Exchange and incorporated and
domiciled in England and Wales. Its registered office address is
First Floor, 88 Whitfield Street, London, W1T 4EZ.
The Group is an oil and gas developer with assets in Texas,
United States. The Company's US-based subsidiaries own a portfolio
of leasehold petroleum mineral interests centred on the City of
Gonzalez, in southeast Texas, comprising the undeveloped central
portion of the Gonzales Oil Field.
Responsibility statement
Each of the Directors of the Company confirms that to the best
of his or her knowledge:
a. the condensed set of financial statements has been prepared
in accordance with IAS 34 "Interim Financial Reporting";
b. the half year report includes a fair review of the
information required by DTR 4.2.7R (indication of important events
during the first six months and description of principal risks and
uncertainties for the remaining six months of the year);
c. the half year report includes a fair review of the
information required by DTR 4.2.8R (disclosure of related parties'
transactions and changes therein.
Summary of significant accounting policies
Except as described below, the accounting policies applied in
these interim financial statements are the same as those applied in
the Group's consolidated financial statements as at and for the
year ended 31 December 2018.
The changes in accounting policy set out below will also be
reflected in the Group's consolidated financial statements for the
year ended 31 December 2019, if any.
1. New standards, interpretations and amendments effective from 1 January 2019
There are no material adjustments required to be made to the
Group's consolidated financial statements as a result of the
application of IFRS 16 from 1 January 2019.
2. Earnings per share
Basic and diluted
Earnings per share is calculated by dividing the loss
attributable to the equity holders of the Company by the weighted
average number of ordinary shares in issue during the period,
excluding ordinary shares purchased by the Company and held as
treasury shares.
Half year Half year
ended (Audited) Full year ended ended
30 Jun 2019 31 Dec 2018 30 Jun 2018
Loss attributable to equity holders of the Company ($'000) (929) (789) (457)
Weighted average number of shares in issue
(Number '000) 71,977 70,900 70,900
----------------------------------------------------------- ----------- ------------------------- -----------
Earnings per share (cents) (1.29) (1.11) (0.64)
----------------------------------------------------------- ----------- ------------------------- -----------
3. Property, plant and equipment
Petroleum Office Total
(Mineral Leases) Equipment $
Cost $ $
At 1 January 2018 1,219,215 11,683 1,230,898
Additions 40,702 - 40,702
Currency translation - (327) (327)
At 30 June 2018 1,259,917 11,356 1,271,273
Additions 15,680 - 15,680
Currency translation - (213) (213)
At 31 December 2018 1,275,597 11,143 1,286,740
Additions 56,406 - 56,406
Currency translation - 25 25
At 30 June 2019 1,332,003 11,168 1,343,171
Accumulated Depreciation and Impairment
At 1 January 2018 - 4,251 4,251
Charge for the period - 1,460 1,460
Currency translation - (201) (201)
At 30 June 2018 - 5,510 5,510
Charge for the period - 1,447 1,447
Currency translation - (131) (131)
At 31 December 2018 - 6,826 6,826
Charge for the period - 1,411 1,411
Currency translation - (37) (37)
At 30 June 2019 - 8,200 8,200
Net Book Amount
At 1 January 2018 1,219,215 7,432 1,226,647
================== =========== ==========
At 30 June 2018 1,259,917 5,846 1,265,763
================== =========== ==========
At 31 December 2018 1,275,597 4,317 1,279,914
================== =========== ==========
At 30 June 2019 1,332,003 2,968 1,334,971
================== =========== ==========
4. Intangible assets
Drilling costs Loan arrangement fees Total
Cost $ $ $
At 1 January 2018 1,908,751 270,339 2,179,090
Additions 477,920 - 477,920
At 30 June 2018 2,386,671 270,339 2,657,010
Additions 272,553 - 272,553
Add: Reclassification from other receivables 1,183,017 - 1,183,017
At 31 December 2018 3,842,241 270,339 4,112,580
Additions 8,430 - 8,430
Add: Reclassification from other receivables 192,085 - 192,085
At 30 June 2019 4,042,756 270,339 4,313,095
Amortisation
At 1 January 2018 - 5,557 5,557
Amortisation charge for the year - 54,518 54,518
At 30 June 2018 - 60,075 60,075
Amortisation charge for the year - 45,057 45,057
At 31 December 2018 - 105,132 105,132
Amortisation charge for the year - 45,056 45,056
At 30 June 2019 - 150,188 150,188
Net Book Amount
At 1 January 2018 1,908,751 264,782 2,173,533
At 30 June 2018 2,386,671 210,264 2,596,935
At 31 December 2018 3,842,241 165,207 4,007,448
At 30 June 2019 4,042,756 120,151 4,162,907
5. Share capital and premium
Ordinary shares Share premium
Group Number of shares Value Value Value Value Total
GBP $ GBP $ $
At 1 January 2018 70,900,000 709,000 908,404 472,400 625,504 1,533,908
================== ======== ======== ========== ========== ==========
At 30 June 2018 70,900,000 709,000 908,404 472,400 625,504 1,533,908
================== ======== ======== ========== ========== ==========
At 31 December 2018 70,900,000 709,000 908,404 472,400 625,504 1,533,908
================== ======== ======== ========== ========== ==========
Share issue 1,433,702 14,337 18,558 774,198 1,002,136 1,020,694
Issue costs - - - (59,100) (76,500) (76,500)
At 30 June 2019 72,333,702 723,337 926,962 1,187,498 1,551,140 2,478,102
================== ======== ======== ========== ========== ==========
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London Stock Exchange. RNS is approved by the Financial Conduct
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END
IR LLFVLALIIVIA
(END) Dow Jones Newswires
September 30, 2019 07:35 ET (11:35 GMT)
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