TIDMPXEN
RNS Number : 0713A
Prospex Energy PLC
25 September 2020
Prospex Energy PLC/ Index: AIM / Epic: PXEN / Sector: Oil and
Gas
Prospex Energy PLC ('Prospex' or the 'Company')
Half Year Report
Prospex Energy PLC, the AIM quoted investment company, is
pleased to announce its unaudited Interim Results for the six
months ended 30 June 2020.
Advancing a portfolio of late stage, onshore European gas
projects that cover the entire energy cycle from exploration and
development to production and power generation.
Portfolio Overview
Podere Gallina Exploration Permit, onshore Italy - first
production at Selva gas field ('Selva') at an initial rate of up to
150,000 scm/day expected H1 2021
-- Progressing permitting process for production concession
o Formal technical environmental approval for the development of
Selva received from the Italian Environment Ministry
o Next steps include final sign off by Ministerial decree, the
issuing of the required INTESA (intergovernmental agreement) and
the final grant of a production concession from Italy's Economic
Development Ministry
-- Pursuing early discussions regarding non-equity linked
funding of Prospex's c. EUR400,000 share of Selva development
costs
El Romeral, onshore Spain - acquisition of integrated gas and
power project
-- Acquisition of 49.9% interest in El Romeral for net
consideration of EUR375,000, which has been paid
o Transfer of interest to Prospex's Spanish affiliate ongoing,
delayed by COVID-19
-- Multiple low risk opportunities to increase gas production
via two development locations with 5 billion cubic feet ('Bcf') of
gross contingent resources and 11 prospects with 90 Bcf of gross,
un-risked prospective resources with high Chance of Success of
>70% (in most cases)
-- Significant scope to increase power generation at plant -
power plant currently constrained to operating at c. 22% capacity
due to current wells' tail production
o Full capacity at the plant can be achieved with one successful
new well coming on stream
o Operating at 100% capacity and selling electricity at Spain's
historic average price of EUR70 per MWh (including subsidy) has the
potential to generate annual revenues and profit before tax of
EUR4.2 million and EUR2.4 million, respectively, (EUR1.8 million
profit after tax) from the asset
-- Low cost preparatory work underway to ensure a three-well
campaign can commence as soon as possible once the transfer has
been completed
EIV-1 Suceava Concession, onshore Romania - production at Bainet
field 10% above expectations
-- Average daily production 10% ahead of budgeted - at 15,000m3
per day and above the 14,000m3 per day average in 2019
-- Ongoing evaluation of the concession's gas prospectivity to
determine licence extension and next drilling targets
Tesorillo Gas Project, onshore Spain - de-risking up to 830 Bcf
of gas (Best Estimate) of gross un-risked prospective resources
-- Encouraging results of ongoing work programmes, initial results include:
o Multiple potential gas traps on exploration target identified
following reprocessing and interpretation of historic 2D seismic
data
o Identification of four promising leads in the northern half of
the concession following integration of new structural maps and
cross sections with well reinterpretation and satellite images
-- Working towards decision to drill and increase stake to 49.9% from current 15%
Financial/Corporate Overview
-- Total Assets of GBP6,202,327 as at 30 June 2020, providing significant asset backing
-- 14% reduction in administrative expenses to GBP416,885 (H1 2019: GBP484,713)
-- GBP720,000 raised via an oversubscribed placing of
600,000,000 new ordinary shares to help fund the Company's
acquisition of a 49.9% indirect stake in El Romeral
o Certain Directors acquired new shares in the Company with an
aggregate value of GBP140,000 as part of the Placing
-- Share re-organisation effecting one new ordinary share for 25 existing ordinary shares
-- Change of Company name to Prospex Energy plc
Edward Dawson, Managing Director of Prospex, said, " Total asset
value of GBP6,202,327 as at period end provides significant asset
backing when compared to our current market cap, but it does not
tell the whole of the story. Total Assets do not reflect the
considerable run room that exists within our portfolio to grow
production and revenues: the additional prospects identified on the
Podere Gallina permit in Italy, which are estimated to hold
aggregate gross prospective resources (best estimate) of 91.5 Bcf;
the 11 prospects on the El Romeral Project, which have been
assigned 90 Bcf of gross, un-risked prospective resources with high
chance of success of >70% (in most cases); and the up to 830 Bcf
of gross prospective resources estimated at the Tesorillo Project
in Spain. With a roadmap in place to de-risk these company-making
volumetrics, we are confident we can generate a substantial uplift
in the value of the Company for our shareholders.
"Prospex is not just an asset play but a revenue growth one too.
Starting with first gas at the Selva field in Italy in H1 2021 and
the transfer of a 49.9% interest in the El Romeral project to our
Spanish affiliate, our annual production could reach 7,800,000 scm
net to Prospex in 2021. This would translate into a significant
revenue stream even at current gas prices, which in turn will
enable us to pursue the additional prospectivity and opportunities
that have been identified across our asset base. COVID-19 may
impact exact timings, but the roadmap we have to build a highly
cash flow generative investment company focused on cleaner natural
gas and power projects remains very much in place and I look
forward to providing further updates on our progress in the months
ahead."
* *S * *
For further information visit www.prospexoilandgas.com or
contact the following:
Edward Dawson Prospex Oil and Gas Plc Tel: +44 (0) 20 3948
1619
Rory Murphy Strand Hanson Limited Tel: +44 (0) 20 7409
Ritchie Balmer 3494
Jack Botros
Colin Rowbury Novum Securities Limited Tel: +44 (0) 20 7399
Jon Belliss 9427
Duncan Vasey Peterhouse Corporate Finance Tel: +44 (0) 20 7469
0932
Frank Buhagiar St Brides Partners Ltd Tel: +44 (0) 20 7236
Cosima Akerman 1177
Chairman's Report
This is the first Chairman's Report since shareholders voted in
favour of the resolution put forward at the last AGM to change the
Company's name to Prospex Energy plc. The name change not only
better reflects our existing portfolio of late stage onshore
projects in Italy, Romania and Spain, which are centred around gas
production and power generation, but also the future direction of
the Company and the importance the Board places on its ESG
obligations.
Prospex's focus on gas is not solely down to the structure of
gas markets where prices are typically sold via long-term contracts
which provide significant visibility to earnings. It is also due to
natural gas, which is by far the cleanest hydrocarbon in terms of
carbon emissions when combusted, being increasingly viewed as an
important transition fuel as the world moves towards net zero
emissions. For example, the EIA has estimated that in terms of CO2
emitted per unit of energy output, natural gas emits 117 pounds of
CO2 per million British thermal units ('Btu') of energy. This
compares favourably to 228.6 pounds of CO2 emitted by coal, 161.3
pounds of CO2 from diesel fuel and heating oil, and 157.2 pounds
from gasoline. Natural gas can therefore play a key role in
satisfying the world's demand for energy as it moves towards zero
emissions and Prospex intends to play its part both in the short
and medium term. Two of our four core projects, the Bainet field in
Romania and the El Romeral gas and power project in Spain, are
currently producing gas, while first gas at another, the Selva
field in Italy, is targeted for 2021. At the Tesorillo project in
Spain, work programmes are underway to evaluate historic
discoveries and de-risk up to 830 Bcf of gas resources.
While all four projects are at various stages of development,
all offer multiple follow-up opportunities which, if advanced and
developed, have the potential to substantially grow the number of
gas fields within our portfolio and in turn transform Prospex into
a highly cash flow generative gas and power focused investment
company. Our strategy is to rapidly scale up gas production in the
short term to generate internal revenues that can then be deployed
to develop our asset base and increase production further. Our
existing projects and the progress that has been made to date
provide us with a realistic roadmap to achieve this. Specifically,
once the Selva field comes on stream at an initial gross rate of
150,000 scm per day in H1 2021 and once the transfer of the El
Romeral integrated gas and power project to our Spanish affiliate
Tarba Energia has received final regulatory sign off, the number of
producing wells in our portfolio will jump from one to five. These
five wells have the potential to produce over 7,800,000 scm net to
Prospex in 2021. Even at current subdued gas prices, this level of
production would generate material cash flows to further develop
the considerable gas resources we have identified across our
portfolio.
Podere Gallina, Po Valley onshore Italy
Current focus at the Podere Gallina Permit remains to bring the
Selva field, which was successfully tested by the Podere Maiar 1dir
well in 2018, into production at an initial daily rate of up to
150,000 cubic metres (5.3 mmscf/d). At an estimated net cost to
Prospex of EUR400,000, the development is low cost and will involve
installing a fully automated gas plant at the well site which will
be connected to the Italian National Grid by a one-kilometre long
pipeline. Having received formal technical environmental approval
from the Italian Environment Ministry during the period, the Selva
development is awaiting final sign off by Ministerial decree, the
issuing of the required INTESA (intergovernmental agreement) and
the final grant of a production concession from Italy's Economic
Development Ministry. The operator is currently guiding Q4 2020 for
approval. As the permitting process progresses, management will
target non-equity linked funding options for Prospex's c.
EUR400,000 share of Selva's development costs. In keeping with our
ESG obligations, the footprint of the planned Selva development
will be less than half a hectare, while there will be zero
emissions arising from any future gas production at the site. The
site has been readily accessible during the period and
environmental monitoring equipment was installed in June.
Podere Gallina's potential does not begin and end with Selva. In
addition to assigning 13.3 Bcf (2P) gross gas reserves to Selva, a
CPR produced by geophysical services consultancy, CGG Services (UK)
Limited, estimated Selva's two historic gas producing North Flank
and South Flank reservoirs have a 60% - 70% chance of holding gross
contingent resources ('2C') of 14.1 Bcf. Furthermore, there are
four large prospects outside Selva (East Selva, Fondo Perino,
Cembalina, and Riccardina), which are estimated to hold aggregate
gross prospective resources (best estimate) of 91.5 Bcf. Once Selva
is up and running, the partners intend to investigate these
additional opportunities further, all of which lie within the
proposed production concession area. This has the potential to fast
track the permitting process for any future development.
El Romeral, onshore Spain
The El Romeral gas project has similarities with Podere Gallina:
a proven gas field, historic/current production, and multiple low
risk opportunities to build production - gross contingent resources
of 5 Bcf and gross prospective gas resources of 90 Bcf have been
identified at El Romeral at two development locations and 11
prospects respectively. One notable difference between the two
projects is that El Romeral includes a 100%-owned 8.1 MW power
station, which is currently supplied with gas from three late life
wells. The maximum gas productivity of these wells currently limits
the power plant to operating at c. 22% capacity. However, the
identified contingent and prospective resources offer significant
scope to increase the plant's operational capacity to 100%, which
we believe could be achieved in the event of one new well being
brought online.
We estimate achieving full capacity at the plant will transform
El Romeral into a material revenue stream for Prospex, one that
would be of a similar magnitude to Selva in Italy, assuming
electricity prices in Spain return to historic averages from their
current COVID-19 induced lows. Generating electricity at the power
plant's name plate rate of c. 60,000 MWh gross per annum and
selling at Spain's historic average electricity price of EUR70 per
MWh (including subsidy) has the potential to deliver annual
revenues and profit before tax of EUR4.2 million and EUR2.4 million
respectively (EUR1.8 million profit after tax) from the asset.
Together with Selva, these two assets alone could transform Prospex
in terms of its production and revenue profile.
The transfer of the asset to our Spanish affiliate, Tarba
Energia ('Tarba') has progressed a number of key steps since the
application was submitted. Encouragingly interactions have
continued during the period, with various parties working from
home. Whilst hard to assess, it is clear the COVID-19 pandemic has
meant some delay, but we remain confident that this will be
completed as soon as it is practicable to do so. In the meantime,
low cost preparatory work for an extensive drilling campaign is
already underway so that we can proceed once the transfer has been
completed.
Tesorillo, onshore Spain
El Romeral is not our only project in Spain. Prospex also holds
a 15% interest along with an option to increase this to 49.9% in
Tesorillo, a large gas project in southern Spain where historic
discoveries, notably the 1957 Almarchal-1 discovery well, have been
made. In 2015, a report by Netherland Sewell and Associates
estimated Tesorillo could hold gross un-risked Prospective
Resources of 830 Bcf of gas (Best Estimate), with upside in excess
of 2 Tcf. Initial results of an ongoing work programme to
investigate the considerable resource base have been encouraging
and have increased our confidence in the subsurface geometry of the
exploration target, the Aljibe sandstone in the Lowermost Miocene,
specifically the presence of several folds and thrust ramps of 3km
to 5km length, which could be potential gas traps. In addition,
four very promising leads in the northern half of the concession
have been identified. Further work is required and whilst a
promising start has been made, work has been paused since March and
the onset of COVID-19.
Suceava Concession, Romania
The Bainet field, which was discovered in 2017/2018, continues
to generate revenues from gas production for Prospex's subsidiary
PXOG Massey ltd. The 15,000m3 per day average daily production
levels in H1 2020 were 1,000m3 above daily production levels in
2019. Revenues were strong in Q1 but dropped in Q2, with production
up to the end of Q1 sold under a fixed price contract. When
production first started from Bainet it was designated as
"experimental" by the authorities, as is customary in Romania.
During the period a production licence was approved for Bainet.
This carves out the production from the wider Suceava Concession.
Following the unsuccessful low cost Bainet-2 well in 2019, a
re-evaluation of the additional prospectivity at Suceava is being
carried out taking into account the lower price environment since
the onset of COVID 19.
Commodity Price Changes and Volatility
Commodity markets during the period have been volatile with
energy prices lower at the end of the period than at the start.
Energy as a whole started to move significantly lower in January
with the well reported jockeying of OPEC members and non-members
for market share. This was then exacerbated by the drop in demand
during the early days of the COVID pandemic. Prices have since
recovered from the lows seen in April.
Price movements have not been consistent across the board.
Importantly, for shareholders long term energy prices have not
moved as much as spot prices. This time last year spot and
near-term prices were above medium and long term prices. This is
not the case now. Prices have increased along the forward curve
relative to spot prices. This is pertinent for considering
valuations of assets with a CPR in place. Whilst long-dated energy
prices have decreased, the fall has been significantly less than
spot and near-dated contracts.
Financial Review
For the period ended 30 June 2020, the Company is reporting
Total Assets of GBP6,202,327 (31 Dec 2019: GBP6,341,890), which
provide significant asset backing to the Company when compared to
its current market capitalisation.
As at the 30 June 2020, the bulk of the Investments is comprised
of the Company's investment in PXOG Marshall Ltd, the vehicle for
the Company's Italian assets. In determining period end valuations,
the Company takes a number of criteria into account at both a macro
and micro level, which, as described above have changed somewhat.
Taken in isolation, the effect of changes in energy prices led to a
7% reduction.
Aside from the nominal cost of equity being included in the
Company's Investments, the bulk of the carrying value of the
Company's Romanian and Spanish investments is represented within
loans made by the Company to the respective investment vehicles for
the Romanian and Spanish assets and other receivables.
Administrative expenses for the half year period totalled
GBP416,885, a 14% reduction on H1 2019's GBP484,713, as management
continued to actively manage the Company's cost base.
The Company is reporting a net loss after taxation from
continuing operations of GBP1,027,875 (H1 2019: loss - GBP680,906).
Unrealised losses arising on revaluation of financial assets at
fair value totalled GBP664,949 (H1 2019: loss - GBP207,999).
In February 2020, the Company raised GBP720,000 gross via an
oversubscribed placing of 600,000,000 new ordinary shares to help
fund the Company's acquisition of a 49.9% indirect stake in El
Romeral. Certain Directors of the Company took part in the Placing,
acquiring new shares in the Company with an aggregate value of
GBP140,000. As at 30 June 2020, the Company held cash and cash
equivalents of GBP170,866 (30 June 2019: GBP265,094). During the
period, the Company received a loan of approximately GBP50,000 from
its bank under the Government's COVID-19 Bounce Back Loan
Scheme.
In June 2020 the Company completed a share re-organisation
effecting a one new ordinary share for 25 existing ordinary
shares.
Outlook
A global pandemic, societies in lockdown, energy prices hitting
historic lows, the backdrop to this latest half-year report has
been unprecedented. Despite the challenging environment and the
ongoing uncertainty regarding COVID-19 and its effect on society
and the global economy, progress continues to be made to advance
the Company's portfolio of late stage onshore European gas
projects. We will continue to follow relevant government advice and
guidance to ensure the safety of our employees. While this may
impact timings of certain planned field work, crucially, the
roadmap we have put in place to achieve a major step-up in
production and revenues remains intact and achievable.
Upcoming milestones on this roadmap include first gas at Selva
in Italy and the transfer of a 49.9% interest in the El Romeral gas
and power project to our Spanish affiliate. Once these have been
achieved, Prospex will have material interests in five gas wells,
which we estimate have the potential to produce 7,800,000 scm net
to Prospex in 2021, and a 49.9% interest in an operational power
plant, which cost EUR10 million to build. At this point, Prospex
will have become the highly cash flow generative energy investment
company we are looking to build. Importantly, we will have the
platform with which to target the next set of milestones on the
roadmap, ramping up electricity generation at the El Romeral power
plant towards its name plate capacity and advancing the numerous
follow-up opportunities that have been identified across our asset
base. We have the assets and we have the management team to deliver
on our objectives and I look forward to providing further updates
on our progress.
As always, I would like to take this opportunity to thank the
Board and management team for their continued hard work and support
during what has been a highly challenging period for all. I look
forward to working with them all during what promises to be an
exciting period ahead for Prospex Energy.
Bill Smith
Non-executive Chairman
September 2020
Prospex Energy Plc
Interim results
For the six months ended 30 June 2020
Statement of profit or loss and other comprehensive income
Six months ended Six months ended Year ended
30 June 30 June 31 December
---------------------------- --------------------------- ---------------------------
2020 2019 2019
(unaudited) (unaudited) (audited)
GBP GBP GBP
CONTINUING OPERATIONS
Other income 136,292 22,045 198,528
Administrative expenses (416,885) (484,713) (1,091,871)
Share-based payment
charge (102,175) - -
---------------------------- --------------------------- ---------------------------
OPERATING LOSS (382,768) (462,668) (893,343)
Loss on revaluation of
investments and loans (664,949) (207,999) (473,925)
Gain on disposal of
investment - 14,791 40,462
---------------------------- --------------------------- ---------------------------
(1,047,717) (655,876) (1,326,806)
Finance income 47,334 - 76,612
Finance costs (27,492) (25,030) (50,475)
---------------------------- --------------------------- ---------------------------
LOSS BEFORE INCOME TAX (1,027,875) (680,906) (1,300,669)
Income tax - - -
---------------------------- --------------------------- ---------------------------
LOSS AND TOTAL
COMPREHENSIVE LOSS FOR
THE PERIOD (1,027,875) (680,906) (1,300,669)
============================ =========================== ===========================
LOSS PER SHARE
- Basic and diluted (1.236)p (1.178)p (2.116)p
============================ =========================== ===========================
Statement of financial position
As at 30 June 2020
30 June 30 June 31 December
--------------------------- --------------------------- ---------------------------
2020 2019 2019
(unaudited) (unaudited) (audited)
GBP GBP GBP
ASSETS
NON-CURRENT ASSETS
Property, plant and
equipment - - -
Investment 3,983,439 4,021,066 3,998,388
Loans and other
financial assets 359,717 1,308,741 1,048,978
Trade and other
receivables 921,643 937,401 808,360
5,264,799 6,267,208 5,855,726
--------------------------- --------------------------- ---------------------------
CURRENT ASSETS
Trade and other
receivables 766,662 458,191 416,777
Cash and cash
equivalents 170,866 265,094 69,387
--------------------------- --------------------------- ---------------------------
937,528 723,285 486,164
--------------------------- --------------------------- ---------------------------
TOTAL ASSETS 6,202,327 6,990,493 6,341,890
=========================== =========================== ===========================
EQUITY
SHAREHOLDERS' EQUITY
Called up share capital 7,035,588 6,435,587 6,435,587
Share premium account 10,185,820 10,085,220 10,095,358
Capital redemption
reserve 43,333 43,333 43,333
Merger reserve 2,416,667 2,416,667 2,416,667
Retained earnings (14,186,413) (12,630,812) (13,260,713)
--------------------------- --------------------------- ---------------------------
TOTAL EQUITY 5,494,995 6,349,995 5,730,232
--------------------------- --------------------------- ---------------------------
LIABILITIES
NON-CURRENT LIABILITIES
Financial liabilities -
borrowings
Bank loans 49,632 - -
Interest bearing loans
and borrowings 265,848 240,000 386,523
--------------------------- --------------------------- ---------------------------
315,480 240,000 386,523
--------------------------- --------------------------- ---------------------------
CURRENT LIABILITIES
Trade and other payables 143,011 160,498 96,294
Financial liabilities -
borrowings
Interest bearing loans
and borrowings 248,841 240,000 128,841
--------------------------- --------------------------- ---------------------------
391,852 400,498 225,135
--------------------------- --------------------------- ---------------------------
TOTAL LIABILITIES 707,332 640,498 611,658
--------------------------- --------------------------- ---------------------------
TOTAL EQUITY AND
LIABILITIES 6,202,327 6,990,493 6,341,890
=========================== =========================== ===========================
Statement of changes in equity
For the six months ended 30 June 2020
Capital
Share Share Retained redemption Merger
capital premium earnings reserve reserve Total
GBP GBP GBP GBP GBP GBP
Unaudited
At 1 January
2020 6,435,587 10,095,358 (13,260,713) 43,333 2,416,667 5,730,232
Total
comprehensive
income
for the period - - (1,027,875) - - (1,027,875)
Issue of shares 600,001 120,000 - - - 720,001
Costs in respect
of shares
issued - (29,538) - - - (29,538)
Equity settled
share-based
payment - - 102,175 - - 102,175
At 30 June 2020 7,035,588 10,185,820 (14,186,413) 43,333 2,416,667 5,494,995
=========================== =========================== ====================== ========================== ====================== =====================
Unaudited
At 1 January
2019 6,035,587 9,756,759 (11,955,212) 43,333 2,416,667 6,297,134
Total
comprehensive
income
for the period - - (680,906) - - (680,906)
Issue of shares 400,000 400,000 - - - 800,000
Costs in respect
of shares
issued - (66,233) - - - (66,233)
Equity settled
share-based
payment - (5,306) 5,306 - - -
At 30 June 2019 6,435,587 10,085,220 (12,630,812) 43,333 2,416,667 6,349,995
=========================== =========================== ====================== ========================== ====================== =====================
Audited
At 1 January
2019 6,035,587 9,756,759 (11,955,212) 43,333 2,416,667 6,297,134
Total
comprehensive
income
for the year - - (1,300,669) - - (1,300,669)
Issue of shares 400,000 400,000 - - - 800,000
Costs in respect
of shares
issued - (66,233) - - - (66,233)
Lapse of share
options - 10,142 (10,142) - - -
Equity-settled
share-based
payments - (5,310) 5,310 - - -
At 31 December
2019 6,435,587 10,095,358 (13,260,713) 43,333 2,416,667 5,730,232
=========================== =========================== ====================== ========================== ====================== =====================
Statement of Cash Flows
For the six months ended 30 June 2020
Six months ended Six months ended Year ended
30 June 30 June 31 December
---------------------- ------------------------- ----------------------
2020 2019 2019
(unaudited) (unaudited) (audited)
GBP GBP GBP
Operating activities
Loss before income tax (1,027,875) (680,906) (1,300,669)
(Increase)/decrease in trade and
other receivables (415,834) (397,207) 105,929
Increase in trade and other payables 41,824 64,721 10,436
Share-based payment charge 102,175 - -
Gain on disposal of investments - (14,791) (40,462)
Loss on revaluation of investments 664,949 207,999 473,925
Finance income (47,334) - (76,612)
Finance expense 27,492 25,030 50,475
---------------------- ------------------------- ----------------------
Net cash used in operating
activities (654,603) (795,154) (776,978)
---------------------- ------------------------- ----------------------
Investing activities
Sale of investments - 93,343 119,014
Interest paid (23,274) - -
---------------------- ------------------------- ----------------------
Net cash generated/(used in) from
investing activities (23,274) 93,343 119,014
---------------------- ------------------------- ----------------------
Financing activities
New bank loans in period 49,632 - -
Loan (repaid)/issued in period 39,261 - (239,554)
Issue of share capital 720,000 800,000 800,000
Costs in respect of share issue (29,537) (66,233) (66,233)
---------------------- ------------------------- ----------------------
Net cash generated from financing
activities 779,356 733,767 494,213
---------------------- ------------------------- ----------------------
Net increase in cash and cash
equivalents 101,479 31,956 (163,751)
Cash and cash equivalents at start
of period 69,387 233,138 233,138
---------------------- ------------------------- ----------------------
Cash and cash equivalents at end of
period 170,866 265,094 69,387
====================== ========================= ======================
Notes to the interim financial statements
1 General information
Prospex Energy Plc is a company incorporated in the United
Kingdom, which is listed on the Alternative Investment Market of
the London Stock Exchange Plc. The address of its registered office
is Stonebridge House, Chelmsford Road, Hatfield Heath, Essex CM22
7BD. The Group is primarily involved in the exploration for, and
the production of, natural gas.
2 Financial information
The interim financial information for the six months ended 30
June 2020 and 2019 have not been audited or reviewed and do not
constitute statutory accounts within the meaning of Section 434 of
the Companies Act 2006. The comparative financial information for
the year ended 31 December 2019 has been derived from the audited
financial statements for that period. A copy of those statutory
financial statements for the year ended 31 December 2019 has been
delivered to the Registrar of Companies. The report of the
independent auditors on those financial statements was unqualified,
drew attention to a material uncertainty relating to going concern
and did not contain a statement under Sections 498 (2) or (3) of
the Companies Act 2006.
The interim financial statements have been prepared in
accordance with International Financial Reporting Standards
('IFRS') as adopted by the European Union, IFRIC interpretations
and the Companies Act 2006 applicable to companies reporting under
IFRS and under the historical cost convention. They have also been
on a basis consistent with the accounting policies expected to be
applied for the year ending 31 December 2020 and which are also
consistent with those set out in the statutory accounts of the
Company for the year ended 31 December 2019.
The interim financial statements are presented in pounds
sterling because that is the currency of the primary economic
environment in which the company operates.
3 Taxation
On the basis of these accounts there is no tax charge for the
period .
4 Earnings per share
The earnings and number of shares used in the calculation of
earnings per share are as follows:
Six months ended Six months ended Year ended
30 June 30 June 31 December
------------------- ------------------- -------------------
2020 2019 2019
(unaudited) (unaudited) (audited)
Basic and diluted
Loss for the financial period (1,027,875) (680,906) (1,300,669)
Weighted average number of shares 83,137,132 57,825,493 61,475,232
Loss per share (1.24)p (1.18)p (2.12)p
=================== =================== ===================
The comparative figures for 30 June 2019 and 31 December 2019
have been adjusted for the share re-organisation that took place in
June 2020 whereby 1 new ordinary share was issued in exchange for
25 existing ordinary shares.
The loss and the weighted average number of shares used for
calculating the diluted loss/earnings per share are identical to
those for the basic loss/earnings per share. The exercise prices of
the outstanding share options and share warrants are above the
average market price of the shares and would therefore not be
dilutive under IAS 33 'Earnings per Share.'.
5 Non-current investment
Shares in
group Investments
--------------------------------------------------------
undertakings Listed Unlisted Totals
GBP GBP GBP GBP
Unaudited
At 1 January
2020 3,948,388 - 50,000 3,998,388
Revaluations (14,949) - - (14,949)
At 30 June
2020 3,933,439 - 50,000 3,983,439
=========================== =========================== =========================== ====================
Unaudited
At 1 January
2019 4,154,065 78,552 75,000 4,307,617
Disposals - (78,552) - (78,552)
Revaluations (207,999) - - (207,999)
At 30 June
2019 3,946,066 - 75,000 4,021,066
=========================== =========================== =========================== ====================
Audited
At 1 January
2019 4,154,065 78,552 75,000 4,307,617
Additions 39,543 - - 39,543
Disposals - (78,552) - (78,552)
Revaluations (245,220) - (25,000) (270,220)
At 31 December
2019 3,948,388 - 50,000 3,998,388
=========================== =========================== =========================== ====================
The investments in subsidiary undertakings are accounted for at
fair value through the profit and loss, as the Company is deemed to
be an Investment Entity.
6 Dividends
The directors do not propose to declare a dividend for the
period.
7 Copies of interim results
Copies of the interim results can be obtained from the website
www.prospex.energy. From this site you may access our financial
reports and presentations, recent press releases and details about
the company and its operations.
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END
IR KZLFLBKLXBBZ
(END) Dow Jones Newswires
September 25, 2020 02:00 ET (06:00 GMT)
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