TIDMCEG
RNS Number : 2518B
Challenger Energy Group PLC
30 September 2022
30 September 2022
Challenger Energy Group PLC
("Challenger Energy" or the "Company")
Interim Results for the six months ended 30 June 2022
Challenger Energy (AIM: CEG), the Caribbean and Atlantic -margin
focused oil and gas company, with oil production, appraisal,
development and exploration assets across the region, announces its
Interim Results for six months to 30 June 2022.
The Interim Results are set out in full below and are also
available on the Company's website https://www.cegplc.com/ .
For further information, please contact:
Challenger Energy Group PLC Tel: +44 (0) 1624
Eytan Uliel, Chief Executive Officer 647 882
Strand Hanson Limited - Nomad Tel: +44 (0) 20 7409
Rory Murphy / James Spinney / Rob 3494
Patrick
Arden Partners plc - Broker Tel: +44 (0) 20 7614
Simon Johnson 5900
CAMARCO Tel: +44 (0) 20 3757
Billy Clegg / James Crothers / Hugo 4980
Liddy
Notes to Editors
Challenger Energy is a Caribbean and Atlantic margin focused oil
and gas company, with a range of exploration, appraisal,
development and production assets and licences, located onshore in
Trinidad and Tobago, and Suriname, and offshore in the waters of
Uruguay and The Bahamas. In Trinidad and Tobago, Challenger Energy
has five (5) producing fields, two (2) appraisal / development
projects and a prospective exploration portfolio in the South West
Peninsula. In Suriname, Challenger Energy has on onshore appraisal
/ development project. Challenger Energy's exploration licences in
Uruguay, the South West Peninsula of Trinidad, and The Bahamas
offer high-impact value exposure within the overall portfolio
value.
Challenger Energy is quoted on the AIM market of the London
Stock Exchange.
https://www.cegplc.com
S
Financial Statements
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHSED 30 JUNE 2022
Six months Six months Year ended
ended 30 June 2022 (Unaudited) ended 30 June 2021 (Unaudited) 31 December 2021
(Audited)
Note $ 000's $ 000's $ 000's
Net petroleum
revenue 2,680 2,305 4,360
Cost of sales (2,522) (3,188) (6,121)
--------------------------------- ---------------------------------
Gross profit/(loss) 158 (883) (1,761)
Administrative
expenses (4,720) (4,768) (9,098)
Impairment charges - (416) (7,416)
Operating foreign
exchange losses (1,378) (283) (17)
--------------------------------- ---------------------------------
Operating loss (5,940) (6,350) (18,292)
Other income 2 8,567 - 256
Finance income 2 1,927 1 7
Finance costs (275) (5,480) (5,630)
--------------------------------- ---------------------------------
Profit/(loss)
before taxation 4,279 (11,829) (23,659)
Income tax expense - 8 (38)
--------------------------------- --------------------------------- -------------------
Profit/(loss) for
the year
attributable to
equity holders of
the parent company 4,279 (11,821) (23,697)
--------------------------------- --------------------------------- -------------------
Other comprehensive
income/(expense)
Exchange
differences on
translation of
foreign operations 1,105 (469) (148)
--------------------------------- ---------------------------------
Other comprehensive
income/(expense)
for the year net
of taxation 1,105 (469) (148)
--------------------------------- --------------------------------- -------------------
Total comprehensive
income/(expense)
for the year
attributable to
equity holders of
the parent
company 5,384 (12,290) (23,845)
--------------------------------- --------------------------------- -------------------
Earnings/(loss) per
share (cents)
Basic and diluted * 0.1 (2.19) (3.6)
* Earnings/loss per share for the six-month period to 30 June
2022 and 30 June 2021 is stated after the effects of the 1 for 10
share consolidation which took effect on 28 May 2021.
All operations are considered to be continuing (see note 3).
The accompanying accounting policies and notes form an integral
part of these financial statements.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
FOR THE SIX MONTHSED 30 JUNE 2022
At At At
30 June 30 June 2021 31 December
2022 2021
(Unaudited) (Unaudited) (Audited)
Note $ 000's $ 000's $ 000's
Assets
Non-current assets
Intangible exploration and evaluation
assets 4 94,389 96,020 94,405
Goodwill 4 4,610 4,610 4,610
Tangible assets 5 21,874 26,152 22,748
Right of use assets 6 6 40 14
Investment in associate - 47 -
Escrow and abandonment funds 1,601 1,344 1,564
Deferred tax asset 6,998 8,065 6,929
-------------- --------------- --------------
Total non-current assets 129,478 136,278 130,270
Current assets
Trade and other receivables 5,428 4,518 4,274
Inventories 270 177 259
Restricted cash 434 946 560
Cash and cash equivalents 5,308 6,957 1,555
-------------- --------------- --------------
Total current assets 11,440 12,598 6,648
-------------- --------------- --------------
Total assets 140,918 148,876 136,918
-------------- --------------- --------------
Liabilities
Current liabilities
Trade and other payables 7 (11,985) (22,792) (23,537)
Lease liabilities (27) (65) (36)
Borrowings (77) (286) (643)
-------------- --------------- --------------
Total current liabilities (12,089) (23,143) (24,216)
Non-current liabilities
Borrowings (147) (890) (187)
Provisions (6,164) (6,283) (6,294)
Deferred tax liability (7,009) (8,065) (6,941)
-------------- --------------- --------------
Total non-current liabilities (13,320) (15,238) (13,422)
-------------- --------------- --------------
Total liabilities (25,409) (38,381) (37,638)
-------------- --------------- --------------
Net assets 115,509 110,495 99,280
============== =============== ==============
Shareholders' equity
Called-up share capital 8 2,540 218 218
Share premium reserve 8 180,272 171,411 171,734
Share based payments reserve 5,411 5,295 5,312
Retained deficit (97,102) (89,505) (101,381)
Foreign exchange reserve 1,104 (322) (1)
Convertible debt option reserve - 114 114
Other reserves 23,284 23,284 23,284
-------------- --------------- --------------
Total equity attributable to
equity holders of the parent
company 115,509 110,495 99,280
============== =============== ==============
The accompanying accounting policies and notes form an integral part
of these financial statements.
These Interim Financial Statements were approved and authorised for
issue by the Board of Directors on 29 September 2022 and signed on its
behalf by:
Eytan Uliel Simon Potter
Director Director
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHSED 30 JUNE 2022
Six months Six months Year ended
ended 30 June ended 30 31 December
2022 (Unaudited) June 2021 2021
(Unaudited)
(Audited)
$ 000's $ 000's $ 000's
Cash flows from operating activities
Profit/(loss) before taxation 4,279 (11,829) (23,659)
(Increase)/decrease in trade and
other receivables (539) (388) 772
(Decrease) in trade and other
payables (1,188) (4,801) (5,105)
(Increase) in inventories (11) (5) (87)
Impairment of tangible and intangible
assets - 416 7,416
Depreciation of property, plant
and equipment 1,077 1,690 2,944
Depreciation of right of use asset 9 57 86
Loss on disposal of investment
in associate - - 47
Loss on disposal of property,
plant and equipment 10 - 11
Amortisation 16 150 263
Share settled payments 1,113 638 644
Other income (8,567) - (256)
Finance income (1,927) (1) (7)
Finance costs 275 5,480 5,630
Share based payments 99 67 84
Income tax received/(paid) - 9 (99)
Foreign exchange loss on operating
activities 1,378 283 17
------------------- -------------- --------------
Net cash outflow from operating
activities (3,976) (8,234) (11,299)
------------------- -------------- --------------
Cash flows from investing activities
Purchase of property, plant and
equipment (212) (2,140) (5,385)
Proceeds from sale of property,
plant and equipment 5 - 36
Payments for exploration and evaluation
assets - (13,595) (13,745)
Decrease in restricted cash 125 1 386
Other income received - - 256
Interest received - 1 7
-------------------
Net cash outflow from investing
activities (82) (15,733) (18,445)
------------------- -------------- --------------
Cash flows from financing activities
Issue of ordinary share capital 8,508 14,532 14,456
Share issue costs - (410) (19)
Principal elements of lease payments (9) (40) (86)
Interest payable on lease liabilities - (5) (7)
Finance costs (265) (2,427) (2,575)
Repayment of borrowings (144) (248) (648)
Proceeds of borrowings - 2,259 2,259
-------------------
Net cash inflow from financing
activities 8,090 13,661 13,380
------------------- -------------- --------------
Net increase in cash and cash
equivalents 4,032 (10,306) (16,364)
Effects of exchange rate changes
on cash and cash equivalents (279) (599) 57
Cash and cash equivalents at beginning
of period 1,555 17,862 17,862
------------------- -------------- --------------
Cash and cash equivalents at
end of period 5,308 6,957 1,555
------------------- -------------- --------------
The accompanying accounting policies and notes form an integral
part of these financial statements.
STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHSED 30 JUNE 2022
Called up Share Share Retained Foreign Convertible Other Total
share premium based deficit exchange debt option reserves Equity
capital reserve payments reserve reserve
reserve
$ 000's $ 000's $ 000's $ 000's $ 000's $ 000's $ 000's $ 000's
Group
At 1 January
2022 218 171,734 5,312 (101,381) (1) 114 23,284 99,280
Loss for the
period - - - 4,279 - - - 4,279
Currency
translation
differences - - - - 1,105 - - 1,105
----------- ----------- ---------- ----------- ---------- ------------ ----------- -----------
Total
comprehensive
expense - - - 4,279 1,105 - - 5,384
Issue of
ordinary
shares 2,322 8,538 - - - - - 10,860
Realisation of
conversion
feature - - - - - (114) - (114)
Share based
payments - - 99 - - - - 99
----------- ----------- ---------- ----------- ---------- ------------ ----------- -----------
Total
contributions
by and
distributions
to owners of
the Company 2,322 8,538 99 - - (114) - 10,845
----------- ----------- ---------- ----------- ---------- ------------ ----------- -----------
Balance at 30
June 2022 2,540 180,272 5,411 (97,102) 1,104 - 23,284 115,509
Called up Share Share Retained Foreign Convertible Other Total
share premium based deficit exchange debt option reserves Equity
capital reserve payments reserve reserve
reserve
$ 000's $ 000's $ 000's $ 000's $ 000's $ 000's $ 000's $ 000's
Group
At 1 January
2021 123 152,717 5,228 (77,684) 147 396 23,284 104,211
Loss for the
period - - - (11,821) - - - (11,821)
Currency
translation
differences - - - - (469) - - (469)
----------- ----------- ---------- ----------- ---------- ------------ ----------- -----------
Total
comprehensive
expense - - - (11,821) (469) - - (12,290)
Issue of
ordinary
shares 95 18,694 - - - - - 18,789
Recognition of
conversion
feature - - - - - 505 - 505
Realisation of
conversion
feature - - - - - (787) - (787)
Share based
payments - - 67 - - - - 67
----------- ----------- ---------- ----------- ---------- ------------ ----------- -----------
Total
contributions
by and
distributions
to owners of
the Company 95 18,694 67 - - (282) - 18,576
----------- ----------- ---------- ----------- ---------- ------------ ----------- -----------
Balance at 30
June 2021 218 171,411 5,295 (89,505) (322) 114 23,284 110,495
STATEMENT OF CHANGES IN EQUITY (CONTINUED)
FOR THE SIX MONTHSED 30 JUNE 2022
Called up Share Share Retained Foreign Convertible Other Total
share premium based deficit exchange debt option reserves Equity
capital reserve payments reserve reserve
reserve
$ 000's $ 000's $ 000's $ 000's $ 000's $ 000's $ 000's $ 000's
Group
As at 31
December 2019 61 96,157 4,868 (63,692) - - 23,284 60,678
Loss for the
year - - - (13,992) - - - (13,992)
Currency
translation
differences - - - - 147 - - 147
---------- ---------- ---------- ----------- ---------- ------------ ----------- -----------
Total
comprehensive
expense - - - (13,992) 147 - - (13,845)
Share capital
issued 62 56,560 - - - - - 56,622
Recognition of
conversion
feature - - - - - 396 - 396
Share based
payments - - 360 - - - - 360
Total
contributions
by and
distributions
to owners of
the Company 62 56,560 360 - - 396 - 57,378
As at 31
December 2020 123 152,717 5,228 (77,684) 147 396 23,284 104,211
---------- ---------- ---------- ----------- ---------- ------------ ----------- -----------
Loss for the
year - - - (23,697) - - - (23,697)
Currency
translation
differences - - - - (148) - - (148)
---------- ---------- ---------- ----------- ---------- ------------ ----------- -----------
Total
comprehensive
expense - - - (23,697) (148) - - (23,845)
Share capital
issued 95 19,017 - - - - - 19,112
Recognition of
conversion
feature - - - - - 505 - 505
Realisation of
conversion
feature - - - - - (787) - (787)
Share based
payments - - 84 - - - - 84
Total
contributions
by and
distributions
to owners of
the Company 95 19,017 84 - - (282) - 18,914
As at 31
December 2021 218 171,734 5,312 (101,381) (1) 114 23,284 99,280
---------- ---------- ---------- ----------- ---------- ------------ ----------- -----------
NOTES TO THE FINANCIAL STATEMENTS FOR THE INTERIM PERIODED 20
JUNE 2022
1 Basis of preparation
The financial statements have been prepared on the historical cost
basis, except for the measurement of certain assets and financial instruments
at fair value as described in the accounting policies below.
The financial statements have been prepared on a going concern basis,
refer to the Going Concern section below for more details.
The financial statements are presented in United States dollars ($)
and all values are rounded to the nearest thousand dollars ($'000)
unless otherwise stated.
Basis of consolidation
The financial statements incorporate the results of the Company and
its subsidiaries (the "Group") using the acquisition method. Control
is achieved where the Company is exposed to, or has rights to, variable
returns from its involvement with the entity and has the ability to
affect those returns through its power over the entity.
Inter-company transactions and balances between Group companies are
eliminated in full.
Where necessary, adjustments are made to the financial statements of
subsidiaries to bring the accounting policies used in line with those
used by the Group.
The investment in associate (an entity over which the Group had significant
influence) had been recorded at cost and had not been adjusted to reflect
the Group's 25% share of the net profits/losses and assets/liabilities
of the associate from the date of acquisition to the balance sheet
date as it was deemed immaterial. Pursuant to commercial negotiations
in relation to the associate during 2021, the Group relinquished its
interest in the associate for nil consideration and does not hold any
further interest in this associate at 30 June 2022 and at 31 December
2021.
Going Concern
These nancial statements have been prepared by the Directors on a going
concern basis, which assumes that the Group and Company will continue
in operation for the foreseeable future.
At 30 June 2022, the Group and Company had $5.3 million and $4.2 million
in unrestricted cash funding.
During the reporting period, the Group and Company completed a comprehensive
restructuring and recapitalisation exercise which resulted in:
i) the Group and Company raising approximately GBP7.3 million (or approximately
$10 million) (before expenses) via the issue of new shares, to fund
certain payments to creditors as part of the agreed discounted payment
plan, as well as to fund a work programme for 2022;
ii) a substantial reduction in balance sheet payables, debts and potential
liability exposures, that would have reasonably required settlement
in cash, from approximately $23.5 million as of 31 December 2021 to
approximately $2.5 million, being the estimated liabilities amount
that would be required for settlement in cash by the Group in the foreseeable
future. The substantial majority of liability settlements took place
during the reporting period; and
iii) the Company reducing its net current liability position from approximately
$10.1 million at 31 December 2021 to a net current asset position of
approximately $4.1 million at 30 June 2022 as a result of the settlements
made during the reporting period.
Following the restructuring and recapitalisation, the Directors have
prepared a cash flow forecast which anticipates the Group and Company
being able to continue in operation for at least the next twelve months
from the date of this report.
The cash flow forecast includes underlying assumptions and estimates,
including oil price, sustained production from the Group's producing
fields in Trinidad and Tobago along with certain incremental production
from the intended work programme, reliability of reserves estimates
and renewal of licences upon expiry.
In addition, the projections assume offsetting of certain tax liabilities
and deferral of certain historical liabilities in Trinidad and Tobago
that the Directors believe are either not likely to require settlement
in cash or are capable of being deferred and settled on long-dated
payment terms so as to not require material amounts of cash during
the forecast period.
Certain of these items are outside of the Group and Company's control
and unfavourable actual outcomes may materially and adversely affect
the Group's cash resources and cast significant doubt on the Group
and the Company's ability to continue as a going concern. In such an
event, the Group and the Company may be required to implement certain
other measures including, but not limited to,
i) raising additional third-party capital in form of equity, debt or
other instruments of a similar nature, and / or
ii) undertake cost reduction, and / or
iii) sell certain assets of the Group,
and a successful outcome of such measures cannot be guaranteed.
These financial statements do not include the adjustments that would
result if the Group or the Company were unable to continue as a going
concern.
NOTES TO THE FINANCIAL STATEMENTS FOR THE INTERIM PERIODED 30
JUNE 2022 (CONTINUED)
2 Other income and Finance income
Other income and Finance income predominantly comprise haircuts secured
from the Group's historical creditors and a secured financier, as part
of negotiated settlements agreed pursuant to the Group's restructuring
and recapitalisation exercise.
3 Turnover and segmental analysis
Management has determined the operating segments based on the reports
reviewed by the Board of Directors that are used to make strategic
decisions. The Board has determined there is a single operating segment:
oil and gas exploration, development and production. However, there
are three geographical segments: Trinidad & Tobago & Suriname (operating),
The Bahamas (operating) and The Isle of Man, UK, Uruguay, Spain, Saint
Lucia, Cyprus, Netherlands & USA (all non-operating).
The segment including Trinidad & Tobago has been reported as the Group's
direct oil and gas producing and revenue generating operating segment.
The Bahamas segment includes the Bahamian exploration licences on which
drilling activities were conducted in 2020 and 2021. The non-operating
segment including the Isle of Man (the Group's parent), which provides
management service to the Group and entities in Uruguay, Saint Lucia,
Cyprus, Spain, the Netherlands, and the U.S.A. all of which are non-operating
in that they either hold investments, or are dormant, or in the case
of Uruguay had not yet commenced operations as of the year-end. Their
results are consolidated and reported on together as a single segment.
Six months to 30 Operating Operating Total
June 2022 Non-Operating
Entities
(*)
Trinidad Bahamas
& Suriname
$'000 $'000 $'000 $'000
Operating profit/(loss)
by geographical area
Net petroleum revenue
(**) 2,680 - - 2,680
------------ ---------- ---------------- ---------
Operating profit/(loss) (1,316) (127) (4,497) (5,940)
Other income 1,937 - 6,630 8,567
Finance (charges) (86) - (189) (275)
Finance income 1 - 1,926 1,927
Profit/(loss) before
taxation 536 (127) 3,870 4,279
------------ ---------- ---------------- ---------
Other information
Depreciation, amortisation
and impairment 1,079 5 18 1,102
Capital additions 203 - 8 211
------------ ---------- ---------------- ---------
Segment assets
Tangible and intangible
assets 22,196 93,971 4,712 120,879
Deferred tax asset 6,998 - - 6,998
Abandonment fund 1,601 - - 1,601
Trade and other receivables 3,860 516 1,052 5,428
Inventories 270 - - 270
Restricted cash 380 - 54 434
Cash 986 4 4,318 5,308
------------ ---------- ---------------- ---------
Consolidated total
assets 36,291 94,491 10,136 140,918
------------ ---------- ---------------- ---------
Segment liabilities
Trade and other payables (9,704) (1,049) (1,232) (11,985)
Borrowings (224) - - (224)
Deferred tax liability (7,009) - - (7,009)
Lease liabilities - (21) (6) (27)
Provisions (3,825) - (2,339) (6,164)
------------ ---------- ---------------- ---------
Consolidated total
liabilities (20,762) (1,070) (3,577) (25,409)
------------ ---------- ---------------- ---------
NOTES TO THE FINANCIAL STATEMENTS FOR THE INTERIM PERIODED 30
JUNE 2022 (CONTINUED)
3 Turnover and segmental analysis (continued)
Six months to 30 Operating Operating Total
June 2021 Non-Operating
Entities
(*)
Trinidad Bahamas
& Suriname
$'000 $'000 $'000 $'000
Operating profit/(loss)
by geographical
area
Net petroleum revenue
(**) 2,305 - - 2,305
------------ ---------- ---------------- ---------
Operating profit/(loss) (2,110) (1,359) (2,881) (6,350)
Other income - - - -
Finance (charges) (119) (8) (5,353) (5,480)
Finance income 1 - - 1
Loss before taxation (2,228) (1,367) (8,234) (11,829)
------------ ---------- ---------------- ---------
Other information
Depreciation, amortisation
and impairment 1,817 459 37 2,313
Capital additions 2,136 21,338 3 23,477
------------ ---------- ---------------- ---------
Segment assets
Tangible and intangible
assets 28,215 93,880 4,727 126,822
Investment in associate 47 - - 47
Deferred tax asset 8,065 - - 8,065
Abandonment fund 1,344 - - 1,344
Trade and other
receivables 3,377 590 551 4,518
Inventories 177 - - 177
Restricted cash 888 - 58 946
Cash 678 4 6,275 6,957
------------ ---------- ---------------- ---------
Consolidated total
assets 42,791 94,474 11,611 148,876
------------ ---------- ---------------- ---------
Segment liabilities
Trade and other
payables (8,714) (931) (13,147) (22,792)
Borrowings (768) - (408) (1,176)
Deferred tax liability (8,065) - - (8,065)
Lease liabilities (20) (40) (5) (65)
Provisions (3,617) - (2,666) (6,283)
------------ ---------- ---------------- ---------
Consolidated total
liabilities (21,184) (971) (16,226) (38,381)
------------ ---------- ---------------- ---------
(*) Intercompany balances and transactions between Group
entities have been eliminated.
(**) Sales revenues were derived from a single customer within
each of these operating countries.
NOTES TO THE FINANCIAL STATEMENTS FOR THE INTERIM PERIODED 30
JUNE 2022 (CONTINUED)
4 Intangible assets - Group
-------------------------------------------- --------- --------------------------------
Goodwill Exploration & evaluation assets
$ 000's $ 000's
Cost
As at 1 January 2021 7,045 75,372
Additions - 21,489
Foreign exchange difference on translation - (29)
--------- --------------------------------
As at 31 December 2021 7,045 96,832
--------- --------------------------------
Foreign exchange difference on translation - (16)
--------- --------------------------------
As at 30 June 2022 7,045 96,816
--------- --------------------------------
Accumulated amortisation and impairment
As at 1 January 2021 2,435 113
Amortisation - 263
Impairment - 2,069
Foreign exchange difference on translation - (18)
--------- --------------------------------
As at 31 December 2021 2,435 2,427
--------- --------------------------------
Amortisation - 16
Foreign exchange difference on translation - (16)
--------- --------------------------------
As at 30 June 2022 2,435 2,427
--------- --------------------------------
Net book value
As at 30 June 2022 4,610 94,389
--------- --------------------------------
As at 31 December 2021 4,610 94,405
--------- --------------------------------
As at 31 December 2020 4,610 75,259
--------- --------------------------------
NOTES TO THE FINANCIAL STATEMENTS FOR THE INTERIM PERIODED 30
JUNE 2022 (CONTINUED)
5 Tangible assets
------------------------- ------------------- ------------------------- --------------------------------
Oil and gas assets Property, plant and Decommissioning costs Total
equipment (*)
$ 000's $ 000's $ 000's $ 000's
Cost or Valuation
As at 1 January 2021 23,398 2,258 1,995 27,651
Additions 5,065 79 241 5,385
Disposals - (117) - (117)
Foreign exchange difference
on translation (160) (207) (11) (378)
------------------- ------------------------- ---------------------- --------
As at 31 December 2021 28,303 2,013 2,225 32,541
------------------- ------------------------- ---------------------- --------
Additions 33 178 - 211
Disposals - (76) - (76)
Foreign exchange difference
on translation 19 (195) 1 (175)
------------------- ------------------------- ---------------------- --------
As at 30 June 2022 28,355 1,920 2,226 32,501
------------------- ------------------------- ---------------------- --------
Accumulated depreciation
and Impairment
At 1 January 2021 1,115 616 137 1,868
Depreciation 2,330 346 268 2,944
Disposals - (83) - (83)
Impairment 3,933 68 1,346 5,347
Foreign exchange difference
on translation (84) (196) (3) (283)
------------------- ------------------------- ---------------------- --------
At 31 December 2021 7,294 751 1,748 9,793
------------------- ------------------------- ---------------------- --------
Depreciation 859 187 31 1,077
Disposals - (61) - (61)
Foreign exchange difference
on translation 10 (193) 1 (182)
------------------- ------------------------- ---------------------- --------
As at 30 June 2022 8,163 684 1,780 10,627
------------------- ------------------------- ---------------------- --------
Net book value
As at 30 June 2022 20,192 1,236 446 21,874
------------------- ------------------------- ---------------------- --------
As at 31 December 2021 21,009 1,262 477 22,748
------------------- ------------------------- ---------------------- --------
As at 31 December 2020 22,283 1,642 1,858 25,783
------------------- ------------------------- ---------------------- --------
(*) Property, plant and equipment includes leasehold
improvements.
NOTES TO THE FINANCIAL STATEMENTS FOR THE INTERIM PERIODED 30
JUNE 2022 (CONTINUED)
6 Right of use assets
---------------------------------------------------------------------- ---------------------
Group leased properties Group motor vehicles Total Group
$ 000's $ 000's $ 000's
Cost
As at 1 January 2021 468 62 530
Additions 17 - 17
Disposals - (30) (30)
Foreign exchange difference on translation (1) - (1)
------------------------ --------------------- ------------
As at 31 December 2021 484 32 516
------------------------ --------------------- ------------
Additions - - -
Foreign exchange difference on translation 1 - 1
------------------------ --------------------- ------------
As at 30 June 2022 485 32 517
Accumulated depreciation
As at 1 January 2021 398 35 433
Depreciation 72 14 86
Disposals - (17) (17)
Foreign exchange difference on translation - - -
------------------------ --------------------- ------------
As at 31 December 2021 470 32 502
------------------------ --------------------- ------------
Depreciation 9 - 9
Foreign exchange difference on translation - - -
As at 30 June 2022 479 32 511
Net book value
As at 30 June 2022 6 - 6
------------------------ --------------------- ------------
As at 31 December 2021 14 - 14
------------------------ --------------------- ------------
As at 31 December 2020 70 27 97
------------------------ --------------------- ------------
7 Trade and other payables
----------------------------------------------------------------------------------------------------------
Trade and other payables at 30 June 2022 amount to approximately $12.0 million reflecting
effects of the restructuring exercise that the Group commenced in December 2021.
Trade and other payables include dues, amounting to approximately $2.5 million in aggregate,
that are considered to be of a routine working capital nature, and that are being settled
in the ordinary course of business and / or under certain agreed payment plans.
The remainder of trade and other payables are not expected to be required to be settled in
cash in the foreseeable future, and with a vast majority of these amounts not expected to
require any cash settlement at all, and thus will ultimately, with the passage of time, will
cease to be recorded as liabilities. A summary of these is set out below:
(i) approximately $4.6 million is in respect of legacy trade and other payables in Trinidad
and Tobago which are not expected to require any settlement in cash. This includes dues in
relation to one of the Group's dormant licences in Trinidad and Tobago, and which the Group
expects to settle by way of negotiation with the Trinidadian Ministry of Energy and Energy
Industries ("MEEI"). Specifically, the Group has proposed to MEEI a rebasing of this licence
whereby all claimed past dues would be cancelled, the annual licence fees rebased to an appropriate
level, and a new future work programme agreed. To the extent a suitable arrangement of this
nature cannot be agreed with MEEI, the Company intends to surrender the licence, in which
case the subsidiary company holding the licence will be placed into administration, and all
liabilities claimed in respect of this licence will be eliminated, without recourse to the
Company, as confirmed by a legal opinion;
NOTES TO THE FINANCIAL STATEMENTS FOR THE INTERIM PERIODED 30
JUNE 2022 (CONTINUED)
7 Trade and other payables (continued)
(ii) approximately $3.3 million is in respect of taxes owed in Trinidad and Tobago that the
Group expects to settle by way of offset against tax refunds due to the Group in Trinidad
and Tobago ($2.1 million, including under 'Trade and other receivables'). The balance amount
relates to a notional estimate of penalties that apply in accordance with the tax laws in
Trinidad and Tobago - as at the date of this report these are notional estimates only and
have not been levied or assessed, and the Group does not expect that they will be levied or
assessed and that ultimately no cash payment will be required as the Group had claimed the
benefit of a tax amnesty during the 2021 tax amnesty period implemented by the Trinidad and
Tobago tax authorities, with the final resolution of this matter remaining pending; and
(iii) approximately $1.6 million is in respect of various dues comprising, i) $0.5 million
is in respect of accruals in relation to restructuring and recapitalisation costs, which are
expected to be settled in shares without any cash cost to the Company, ii) $0.5 million is
in respect of potential insurance "top-up" exposure, due to the ultimate cost of the Perseverance-1
well in The Bahamas exceeding the initial estimated cost - however, as at the date of this
report no demand for this additional payment has been made and the Group expects that this
exposure will not crystalise given that the well was completed safely and without incident
over 18 months ago, and iii) $0.6 million is in respect of accrued licence fee which the Group
expects to offset against $0.5 million refundable advances (included in trade and other receivables)
resulting in no material incremental cash exposure to the Group.
It is also noted that, following the completion of the restructuring and recapitalisation,
the Company has no remaining financial debt and the vast majority of the liability position
across the Group as detailed above is at the level of subsidiary undertakings, without recourse
to the Company.
8 Share capital - Group & Company
----------------------------------------------------------- --------------
Called up, allotted, issued Number of Nominal Share premium
and fully paid ordinary shares shares value
of 0.0002p each
$ 000's $ 000's
At 1 January 2021 4,506,673,349 123 152,717
At 1 January 2021 after capital
reorganisation 450,667,335 123 152,717
Shares issued at average price
of 1.9p per share 19,687,500 5 5,106
Shares issued at average price
of 0.27p per share 13,500,000 4 515
Shares issued at average price
of 0.15p per share 14,938,577 4 300
Shares issued at average price
of 3.5p per share 196,688,957 55 8,689
Shares issued at average price
of 3.5p per share 74,658,600 21 3,665
Shares issued at average price
of 0.15p per share 19,111,423 5 391
Shares issued at average price
of 0.15p per share 7,270,522 1 351
-------------- -------- --------------
At 31 December 2021 796,522,914 218 171,734
-------------- -------- --------------
At 1 January 2022 796,522,914 218 171,734
Shares issued at average price
of 0.1p per share 691,401,490 185 739
Shares issued at average price
of 0.1p per share 3,480,645,475 919 3,366
Shares issued at average price
of 0.1p per share 4,651,629,600 1,218 4,433
At 30 June 2022 9,620,199,479 2,540 180,272
Number of Nominal Share premium
shares value
$ 000's $ 000's
At 31 December 2020 450,667,335 123 152,717
-------------- -------- --------------
At 31 December 2021 796,522,914 218 171,734
-------------- -------- --------------
At 30 June 2022 9,620,199,479 2,540 180,272
-------------- -------- --------------
During the period, 8,823 million shares were issued (2021: 339
million).
At the end of the period, the number of shares in issue comprised
9,620 million ordinary shares (2021: 789 million).
During the period, transaction costs for issued share capital totalled
$748,777 (2021: $754,068), these amounts were allocated to share
premium.
The total authorised number of ordinary shares at 30 June 2022 was
50,000,000,000 shares with a par value of 0.02 pence per share (2021:
2,000,000,000 shares of 0.02 pence per share). All issued shares
of 0.02 pence are fully paid.
NOTES TO THE FINANCIAL STATEMENTS FOR THE INTERIM PERIODED 30
JUNE 2022 (CONTINUED)
9 Share based payments
reserve
--------------------- --- ---
Options and warrants
Share options have been granted to Directors, selected employees
and consultants to the Company.
The Group had no legal or constructive obligation to repurchase
or settle any options in cash. Movements in the number of share
options and warrants outstanding during the year are as
follows:
Average exercise No. Options &
price per share Warrants
At 1 January 2022 12.81p 96,797,894
Expired 35p (9,375,000)
Cancelled 10.23 (73,803,215)
Granted 0.14p 1,536,559,485
Exercised - -
----------------- --------------
As at 30 June 2022 0.24p 1,550,179,164
Exercisable at end of period 0.01p 816,559,485
----------------- --------------
The fair value of the warrants and options granted in the period
was estimated using the Black Scholes model.
10 Events after reporting date
---------------------------------------------------------------------
There were no material events which took place following the
reporting date which require disclosure in these Interim Financial
Statements except that on 15 July 2022 Mr. Tim Eastmond resigned
as the Chief Financial Officer and an Executive Director of
the Company for personal reasons and Mr. Gagan Khurana, the
Group's Chief Commercial Officer assumed the role of acting
Chief Financial Officer in addition to his commercial duties.
11 Other Information
--------------------------------------------------------------------
The financial information set out above does not constitute
the Group's statutory accounts for the period ended 31 December
2021 but is derived from those accounts.
A copy of this interim statement is available on the Company's
website: www.cegplc.com
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END
IR BIGDCRDDDGDC
(END) Dow Jones Newswires
September 30, 2022 02:02 ET (06:02 GMT)
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