TIDMMUST
RNS Number : 6540R
Mustang Energy PLC
30 October 2019
Wednesday 30 October, 2019
Mustang Energy PLC
Interim Results Half Year to 31 July 2019
Mustang Energy PLC
30 October 2019
Mustang Energy PLC
Interim Results Half Year to 31 July 2019
Mustang Energy PLC (the "Company" or "Mustang"), a special
purpose acquisition company formed to acquire oil and gas projects
in developed jurisdictions, is pleased to announce its unaudited
interim results for the half year ended 31 July 2019.
Highlights:-
* Successful Listing of the Company's shares on the LSE
Standard List in July 2019
* Decent deal flow with due diligence ongoing on a
number of producing US assets
* Acquisition targets remain in GBP2-50million range
* Tight control on overheads with Directors not
receiving remuneration
Commenting, Dean Gallegos, Managing Director of the Company,
said: "We remain confident of moving forward with our strategy and
are encouraged by the potential opportunities currently being
evaluated. We look forward to providing further updates when there
are developments"
ABOUT THE COMPANY
Mustang aims to use strong management experience and
relationships to acquire interests in low cost, low risk
development projects that possess significant undeveloped upside
with access to existing infrastructure.
ENQUIRIES
For further information, please visit www.mustangplc.com, follow
us on Twitter @Mustang_Plc, or contact:
Mustang Energy PLC
Dean Gallegos, Managing Director
dg@mustangplc.com
+61 416 220007
Optiva Securities (Broker)
Jeremy King
Jeremy.king@optivasecurities.com
+44(0)203 137 1904
Chairman's Statement
Dear Fellow Shareholders
The Company was formed to undertake an acquisition of a target company
or business or asset(s) with operations in the energy or natural
resources sectors.
As you are aware the Company's shares began trading on the standard
list of the London Stock Exchange on the 29 July 2019. Even though
the Company has only been funded for a very short period of time
we have been active in executing the Company's objectives as outlined
in the Company's prospectus.
The directors believe that their network and profile following admission
mean that the Company will be able to target an acquisition where
the target company or business or asset(s) has a transaction value
of between GBP2 million and GBP50 million.
The Company's determinations in identifying a prospective target
company or business or asset(s) in the energy or natural resources
sectors will not be limited to a specific geographic region, stage
of development from exploration through to production. However,
it is the Company's preference that the target is generating cashflow
or has the capability of generating cash flow within 12-18 months
of acquisition.
Since admission to the London Stock Exchange the Company has been
actively seeking suitable acquisition opportunities and has seen
good deal flow. The Company has commenced due diligence on a number
of assets located in the USA, all of these assets are already in
production and have development upside.
The due diligence process for each of these assets is in the early
stages and there can be no guarantee that the assets will fulfil
the Company's requirements and if they do fulfil these requirements
that the Company can attract the required funding to be able to
successfully complete an acquisition.
The Company will remain diligent in minimising its overheads. The
Company does not rent an office space and is not paying any remuneration
to its directors until an acquisition is successfully completed.
I look forward to communicating with you further once a suitable
acquisition has been identified and secured by the Company.
A J Broome AM
Chairman
30 October 2019
INTERIM MANAGEMENT REPORT
FOR THE SIX MONTH PERIODED 31 JULY 2019
The directors are responsible for preparing the interim report in
accordance with applicable law and regulations. The directors confirm
that the condensed interim financial information has been prepared
in accordance with International Accounting Standard 34 ('Interim
Financial Reporting') as adopted by the European Union.
The interim management report includes a fair review of the information
required by the Disclosure and Transparency Rules paragraphs 4.2.7
R and 4.2.8 R, namely:
* the interim condensed financial statements, which
have been prepared in accordance with applicable
accounting standards, give a true and fair view of
the assets, liabilities, financial position, and
profit or loss of the issuer as required by DTR
4.2.4R; and
- an indication of important events that have occurred during the
six months ended 31 July 2019 and their impact on the condensed
set of financial information, and a description of the principal
risks and uncertainties for the remaining six months of the year;
and
* material related-party transactions during the six
months ended 31 July 2019 and any material changes in
the related-party transactions described in the
Annual report and accounts 2019.
The directors of the company are listed in the interim condensed
financial statements.
The directors are responsible for the maintenance and integrity
of, amongst other things, the financial and corporate governance
information.
The interim condensed financial statements have been prepared on
a going concern basis.
The interim report was approved by the Board of Directors and authorised
for issue on 30 October and signed on its behalf by:
D L Gallegos
Managing Director
30 October 2019
Period Period
ended ended
31 July 31 July
2019 2018
(unaudited) (unaudited)
Notes GBP GBP
Administrative expenses (142,827) (58,788)
Operating loss (142,827) (58,788)
Income tax expense - -
Loss and total comprehensive
income (142,827) (58,788)
Loss per share 3
Basic (0.20) (14,697)
Diluted (0.20) (14,697)
The income statement has been prepared on the basis that all operations
are continuing operations.
31 July 31 January
2019 2019
(unaudited) (unaudited)
Notes GBP GBP
Non-current assets
Property, plant and equipment 711 902
Current assets
Trade and other receivables 4 390,202 13,260
Cash and cash equivalents 275,281 -
665,483 13,260
Total assets 666,194 14,162
Current liabilities
Trade and other payables 37,469 88,310
Net current assets/(liabilities) 628,014 (75,050)
Total liabilities 37,469 88,310
Net assets/(liabilities) 628,725 (74,148)
Equity
Called up share capital 6 84,000 -
Share premium account 7 675,000 -
Share based payment reserve 86,700 -
Retained earnings (216,975) (74,148)
Total equity 628,725 (74,148)
Share capital Share premium Share based Retained Total
account payment earnings
reserve
Notes GBP GBP GBP GBP GBP
Balance at 17 January
2018 - - - - -
Loss and total comprehensive
income for the period - - - (58,788) (58,788)
Balance at 31 July 2018
(unaudited) - - - (58,788) (58,788)
Loss and total comprehensive
income for the period - - - (15,360) (15,360)
Balance at 31 January
2019 (unaudited) - - - (74,148) (74,148)
Loss and total comprehensive
income for the period - - - (142,827) (142,827)
Issue of share capital
- paid 6 37,500 337,500 - - 375,000
Issue of share capital - unpaid 46,500 337,500 - 384,000
Share based payment - - 86,700 - 86,700
Balance at 31 July 2019 (unaudited) 84,000 675,000 86,700 (216,975) 628,725
31 July 2019 31 July 2018
(unaudited) (unaudited)
Notes GBP GBP GBP GBP
Cash flows used in operating
activities
Cash (used in)/generated
from operations 11 (20) 1,160
Net cash (outflow)/inflow
from operating activities (20) 1,160
Investing activities
Purchase of property, plant and
equipment - (1,160)
Net cash used in investing
activities - (1,160)
Financing activities
Proceeds from issue of shares 275,301 -
Net cash generated from/(used
in) financing activities 275,301 -
Net increase in cash and cash
equivalents 275,281 -
Cash and cash equivalents at
beginning of year - -
Cash and cash equivalents
at end of year 275,281 -
1 Notes to the interim financial statements
General information
Mustang Energy PLC (the "Company") is a Public Limited Company
incorporated and domiciled in England and Wales. The interim
condensed financial statements for the six months ended 31 July
2019. The address of the Company's registered office is 48 Chancery
Lane, c/o Keystone Law, London, WC2A 1JF. The interim condensed
financial statements of the Company were authorised for issue
in accordance with a resolution of the Directors on 30 October
2019.
These interim condensed financial statements do not comprise
statutory accounts within the meaning of section 434 of the Companies
Act 2006. The unaudited statutory accounts for the period ended
31 January 2019 have been delivered to the Registrar of Companies
in England and Wales and are publicly available on the Company's
website: www.mustangplc.com. The interim condensed financial
statements have been prepared on a going concern basis.
1.1 Accounting convention
The Interim Financial Statements are for the six months ended
31 July 2019 and have been prepared in accordance with IAS 34
'Interim Financial Reporting'. They do not include all of the
information required in annual financial statements in accordance
with IFRS, and should be read in conjunction with the financial
statements for the period ended 31 January 2019.
The financial statements have been prepared under the historical
cost convention.
1.2 Accounting policies, critical estimates and judgements
The accounting policies, methods of computation, critical estimates
and judgements followed in the interim financial statements are
in accordance with those followed in preparing the financial
statements for the period ended 31 January 2019.
Accounting policies adopted since the preparation of the financial
statements for the period ended 31 January 2019 are as follows:
1.3 Financial instruments
The Company adopted IFRS 9 on 1 January 2018. IFRS 9 addresses
the classification, measurement and derecognition of financial
assets and financial liabilities and introduces new rules for
hedge accounting, a new impairment model for financial assets
and early recognition of expected credit losses.
Under IFRS 9, the assessment of impairment of financial assets
is based on an 'expected credit loss' model. It is required to
consider historic, current and forward-looking information (including
macro-economic data). This will result in the earlier recognition
of credit losses.
The classification and measurement of financial liabilities are
not affected by the adoption of IFRS 9.
1.4 Share-based payments
Equity-settled share-based payments are measured at fair value
at the date of grant by reference to the fair value of the equity
instruments granted. The fair value determined at the grant date
is expensed on a straight-line basis over the vesting period,
based on the estimate of shares that will eventually vest. A
corresponding adjustment is made to equity.
2 Adoption of new and revised standards and changes in accounting
policies
Standards which are in issue but not yet effective
At the date of authorisation of these interim condensed financial
statements, the following Standards and Interpretations, which
have not yet been applied in these financial statements, were
in issue but not yet effective:
IFRS 16 Leases
* Not yet endorsed for use in the EU.
The Directors are currently assessing the impact of these standards
and interpretations on the financial statements. It is not anticipated
that adoption of these standards and interpretations will have
a material impact on the current financial position and performance
of the Company.
3 Loss per share 31 July 31 July
2019 2018
GBP GBP
Number of shares
Weighted average number of Ordinary shares
for basic loss per share 706,081 4
Weighted average number of Ordinary shares
for diluted loss per share 706,081 4
Loss
Continuing operations
Loss for the period from continued operations (142,827) (58,788)
Loss for basic and diluted loss per share being
net loss attributable to equity shareholders
of the company for continued operations (142,827) (58,788)
Loss per share for continuing operations
Basic loss per share (0.20) (14,697)
Diluted loss per share (0.20) (14,697)
4 Trade and other receivables
31 July 31 January
2019 2019
GBP GBP
Unpaid share capital 383,699 -
Other receivables - 11,260
VAT recoverable 6,503 2,000
390,202 13,260
5 Share-based payment transactions
Number of share warrants/options
31 July 31 July 2018
2019
Granted 1,100,000 -
In July 2019 210,000 Warrants and 900,000 options were granted
with an exercise price of 10p each.
Each Warrant entitles the Warrant Holder to subscribe for one
Ordinary Share at the Placing Price per each Ordinary Share.
The Warrants have not been admitted to trading on the Official
List but are freely transferable. The Warrant Holder must exercise
the Warrants within a three year period from 29 July 2019. The
Warrants can be transferred by means of an instrument of transfer
in any usual form or any other form approved by the Board.
The Warrants have been granted to Optiva Securities Limited
in consideration for the provision of brokering services to
the Company (and other services ancillary to the Admission of
shares onto the London Stock Exchange).
On 29 July 2019, the Company granted 900,000 Options to company
directors. Each Option entitles the Option Holder to subscribe
for one Ordinary Share at the Placing Price per each Ordinary
Share. The Options vest when the share price of the Ordinary
Shares reaches 15p. The Option Holders must exercise the Options
within a five year period from 29 July 2019, subject to the
Options having vested.
Black Scholes Model 31 July 31 July
2019 2019
Warrants Options
Share price GBP0.10 GBP0.10
Exercise price GBP0.10 GBP0.10
Expected volatility 120% 120%
Risk-free interest rate 0.68 0.68
Expected life 3 years 5 years
Number of warrants/options granted 210,000 900,000
31 July 31 January
6 Share capital 2019 2019
GBP GBP
Ordinary share capital
Issued
4 Ordinary shares of 1p each - unpaid - -
899,996 Ordinary shares of 1p each
- unpaid 9,000 -
3,750,000 Ordinary shares of 1p each
- paid 37,500 -
3,750,000 Ordinary shares of 1p each
- unpaid 37,500 -
84,000 -
On 15 July 2019 899,996 Ordinary shares of 1p each were issued
at par.
On 17 July 2019 7,500,000 Ordinary shares of 1p each were issued
at 10p per share.
Of the 3,750,000 Ordinary shares that were paid for, 2,750,000
shares were settled in cash and 100,000 shares were settled through
the capitalisation a director's loan account.
The Ordinary shares have attached to them full voting rights,
dividend and capital distribution rights (including on a winding
up) but they do not confer any rights of redemption.
7 Share premium account
31 July 31 January
2019 2019
GBP GBP
At beginning of six month period - -
Issue of new shares - paid 337,500 -
Issue of new shares
- unpaid 337,500 -
At end of six month period 675,000 -
8 Related party transactions
At the interim reporting date GBP10,210 (31 January 2019 - GBP70,789)
was due to D L Gallegos, a director of the company. The amount
is interest free and repayable on demand.
9 Events after the reporting date
There have been no material events since the interim reporting
date which require disclosure.
10 Principal risks and uncertainties
The Directors consider that the principal risks and uncertainties
that could have a material effect on the Company's performance
are unchanged from those identified on page 13 of the Annual Report
and unaudited financial statements for the period ended 31 January
2019.
11 Cash generated from operations
31 July 31 July
2019 2018
GBP GBP
Loss for the six month period after tax (142,827) (58,788)
Adjustments for:
Depreciation and impairment of property, plant
and equipment 191 -
Equity settled share based payment expense 86,700 -
Movements in working capital:
Decrease/(increase) in trade and other receivables 6,757 (1,266)
Increase in trade and other payables 49,159 61,214
Cash (absorbed by)/generated from operations (20) 1,160
Copies of this interim report will be made available on the
Company's website, www.mustangplc.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.
END
IR LLFELIFLIVIA
(END) Dow Jones Newswires
October 30, 2019 08:00 ET (12:00 GMT)
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