TIDMBOIL
RNS Number : 2614A
Baron Oil PLC
23 May 2023
23 May 2022
Baron Oil Plc
("Baron Oil", "Baron", the "Company", or the "Group")
Final Results for the Year Ended 31 December 2022
Baron Oil (AIM: BOIL), the AIM-quoted oil and gas exploration
company, is pleased to announce its audited financial results for
the year ended 31 December 202 2.
Operational Highlights (including post period)
-- During the year, both the Chuditch PSC and Dunrobin projects,
were subject to intensive technical work aimed at maturing
the assets to "drill ready" status.
-- Delivery of the reprocessed Chuditch 3D seismic data and
its interpretation significantly improved the subsurface
image, enabling for the first time, the delineation of the
Chuditch discovery and its adjacent prospects.
-- The key Dunrobin technical work components of the Phase A
commitments - those of seismic reprocessing plus geochemical
studies - were delivered during second half of 2022 on time
and budget. Detailed seismic attribute analysis, designed
to investigate candidate direct hydrocarbon indicators, followed
in early 2023.
-- In early 2023 two Competent Person's Reports ("CPRs") were
published which validate both projects to the industry standard
SPE PRMS Contingent and/or Prospective Resource estimates.
-- Throughout the period the Company kept updated Virtual Datarooms
for the benefit of potentially interested funding partners
for the next phase of both Chuditch and P2478 projects, a
process which continues.
Financial Highlights
-- Two oversubscribed funding events in 2022, as a result we
have a well-funded balance sheet covering our current activities
and commitments.
-- Cash Reserves at 31 December 2021 were GBP 5,807,000 (31
December 2021: GBP1,650,000).
-- Exploration and evaluation expenditure of GBP213,000 (2021:
GBP218,000).
-- Administration expenses for the year were GBP1,191,000 (2021:
GBP1,321,000), an overall reduction on the prior year of
GBP130,000.
-- Loss after taxation o f GBP 1,387,000 (2021: GBP1,127,000
loss).
Commenting on the results, John Wakefield, Non-executive
Chairman, said: " 2022 was a year of considerable progress for
Baron. O ur overriding task was to progress our two material
projects, Chuditch and Dunrobin, to their key evaluation points
which was achieved with the publication of CPRs on both projects in
early 2023. The considerable and potentially transformative value
for shareholders in the Company's assets offshore Timor-Leste and
in the UK is now clearly defined and our efforts are now focused on
the drilling decisions to be made in 2023 for a Chuditch-1
appraisal well and a Dunrobin West exploration well.
"Both assets continue to attract attention via our active
farmout campaigns and presentations at relevant industry events. In
particular, there are a number of ongoing discussions with third
parties regarding participation in the Chuditch appraisal well and
future activities. We are grateful for the support of our investors
through the two funding events which took place during the year and
as a result, we have a well-funded balance sheet covering our
current activities and commitments.
"Baron is highly encouraged by the developments being made and I
look forward to reporting on our further progress in due
course."
Posting of Annual Report and Notice of AGM
The Company's Annual Report and Financial Statements, for the
year ended 31 December 2022, will be available for download from
the Company's website (https://www.baronoilplc.com/) later today
and will be despatched by post shortly to those shareholders that
have requested a hard copy.
The Company will hold its Annual General Meeting at 11 a.m. BST
on 29 June 2022 at 38-43 Lincoln's Inn Fields, London WC2A 3PE and
the Notice of Annual General Meeting to that effect will be sent to
shareholders shortly and will be available on the Company's
website.
Online Investor Q&A
Baron intends to hold an investor Q&A session for existing
and potential new shareholders around mid-June 2023. Further
details of the date and time will be released in due course.
For further information, please contact:
Baron Oil Plc +44 (0) 20 7117 2849
Andy Yeo, Chief Executive
Allenby Capital Limited +44 (0) 20 3328 5656
Nominated Adviser and Broker
Alex Brearley, Nick Harriss, George Payne (Corporate
Finance)
Kelly Gardiner (Sales and Corporate Broking)
IFC Advisory Limited +44 (0) 20 3934 6630
Financial PR and IR baronoil@investor-focus.co.uk
Tim Metcalfe, Florence Chandler
Qualified Person's Statement
Pursuant to the requirements of the AIM Rules - Note for Mining
and Oil and Gas Companies, the technical information and resource
reporting contained in this announcement has been reviewed by Jon
Ford BSc, Fellow of the Geological Society, Technical Director of
the Company. Mr Ford has more than 40 years' experience as a
petroleum geoscientist. He has compiled, read and approved the
technical disclosure in this regulatory announcement and indicated
where it does not comply with the Society of Petroleum Engineers'
standard.
CHAIRMAN'S STATEMENT & OPERATIONS REPORT
Financial Review
The net result for the year was a loss before taxation of
GBP1,387,000, which compares to a loss of GBP1,127,000 for the
preceding financial year; the loss after taxation attributable to
Baron Oil shareholders was GBP1,387,000, compared to a loss of
GBP1,127,000 in the preceding year, representing a loss of 0.01p
per share (2021: loss of 0.012p). It should be noted that the
results for 2021 included a one-off non-cash gain on the deemed
disposal of an associated undertaking amounting to GBP302,000.
Turnover for the year was GBPnil (2021: GBPnil), there being no
sales activity during the period.
Exploration and evaluation expenditure incurred included in the
Income Statement amounts to GBP213,000 (2021: GBP218,000). The
Impairment provision in respect of Peru Block XXI was released and
offset against the write off of the accumulated cost on the
project. The Directors judged that no other exploration assets
required impairment.
Administration expenses for the year were GBP1,191,000 (2021:
GBP1,321,000), an overall reduction on the preceding year of
GBP130,000. This is made up of a number of pluses and minuses. As
anticipated last year, administration costs arising in SundaGas
(Timor-Leste Sahul) Pte. Ltd. ("TLS") have increased from
GBP285,000 previously to GBP441,000 this year as we moved to a full
12 month reporting period at the Group level and the Dili office in
Timor-Leste is now fully operational. There were also non-recurring
support costs of GBP65,000 in Peru. Directors and UK staff salaries
and related costs are lower than 2021 by GBP37,000 with the earlier
year including a severance payment to a former director. Finally,
there have been no share-based payment charges this year (2021:
GBP286,000).
Throughout 2022, the Pound Sterling weakened considerably
against the US Dollar, with an opening rate of $1.35 and a closing
rate of $1.21. This has given rise to a gain on holdings of US
Dollar denominated balances of GBP43,000 (2021: gain of
GBP22,000).
At the end of the financial year, cash reserves of the Group had
increased to GBP5,807,000 from a level at the preceding year end of
GBP1,650,000. The proceeds from the issue of new shares in the year
amounting to GBP7,131,000 gross (GBP6,619,000 net of costs)
bolstered the Company's cash reserves. The Group's investment in
exploration and evaluation assets in the UK and Timor-Leste
amounted to GBP806,000 in the period, and GBP602,000 was repaid to
SundaGas Pte Ltd to settle the outstanding amount of the remaining
share of the Timor-Leste Bank Guarantee resulting from the
Company's acquisition of the remaining interest in TLS, as
announced on 15 November 2022. In the case of the guarantee bond
held in Peru, this was released in full on the relinquishment of
the Block XXI licence resulting in a cash inflow of GBP128,000.
After taking into account these items, operating cash outflow
amounted to GBP1,182,000.
The Group continues to take a conservative view of its asset
impairment policy, giving it a Statement of Financial Position that
consists of significant net current assets and what the Board
considers to be a realistic value for its exploration assets. The
Board will continue to take a prudent approach in entering into new
capital expenditures beyond those expected to be committed to
existing ventures.
Report On Operations
Introduction
During 2022 both projects were subject to intensive technical
work aimed at maturing the assets to "drill ready" status, which
culminated in early 2023 with the publication of two Competent
Person's Reports ("CPRs") which validate the projects to the
industry standard SPE PRMS Contingent and/or Prospective Resource
estimates.
Southeast Asia: Timor-Leste TL-SO-19-16 PSC ("Chuditch PSC" or
"PSC") (Baron 75% interest)
Background
The Chuditch PSC is located approximately 185 kilometres south
of Timor-Leste, 100 kilometres east of the producing Bayu-Undan
field, 50 kilometres south of the potential Greater Sunrise
development and covers approximately 3,571 km(2) in water depths of
50-100 metres. The Chuditch-1 discovery well, drilled by Shell in
1998 in 64 metres water depth, encountered a 25 metre gas column in
Jurassic Plover Formation sandstone reservoirs at a depth of around
3,000 metres on the flank of a large faulted structure. The
discovery and neighbouring prospects are largely covered by a 3D
seismic survey acquired in 2012.
Baron holds a 75% working interest and operates the PSC through
its wholly owned subsidiary company SundaGas Banda Unipessoal Lda.
("Banda"), with the remaining 25% held by TIMOR GAP Chuditch
Unipessoal Lda. ("TIMOR GAP"), a subsidiary of the state-owned
national oil company, whose share of PSC expenditure is carried
until first production.
The technical work programme obligations in the first two years
of the initial three-year term of the PSC include the reprocessing
of legacy seismic data, aimed at addressing reservoir imaging
issues caused by sea-bed topography and shallow geological
features, and for which a US$1 million Bank Guarantee is in place.
The commitment within the PSC for contract year 3 is for the
drilling of one appraisal well to the Plover Formation, subject to
seismic reprocessing supporting the presence of a significant
structure associated with the Chuditch discovery.
2022 and subsequent activities
The most significant component of the technical work programme
in 2022 was the delivery of the reprocessed 3D seismic data and its
interpretation. The reprocessing was performed to a high standard
using the most modern Pre-Stack Depth Migration ("PSDM")
techniques. We have significantly improved the subsurface image,
enabling for the first time, the delineation of the Chuditch
discovery and its adjacent prospects. This technical evaluation was
enhanced through the completion of a number of further geological
and engineering studies.
In October 2022, Baron announced its preliminary evaluation
arising from the reprocessed data. The resultant mapping indicated
a significant increase in management's aggregate Gas-in-Place and
Recoverable Gas Resource estimates for the Chuditch PSC. In
particular, it indicated a greater concentration of resources into
the Chuditch-1 discovery in a simplified and robust structure. The
understanding of the adjacent prospectivity was also matured, with
three low-risk exploration targets confirmed on the Chuditch
trend.
Consultancy group ERC Equipoise Ltd ("ERCE") was engaged to
prepare a CPR to provide an independent assessment of the Chuditch
resource to a SPE PRMS compliant standard. The CPR was released on
28 February 2023. For the Chuditch-1 discovery, ERCE assessed gross
Pmean Contingent Resources of 1.16Tcf of gas. The recognition of
the resources as being Contingent, rather than Prospective, is a
major milestone and sets the foundation for the next stage of the
project cycle. This phase typically includes pre-development
feasibility studies and preliminary work on gas sales arrangements
alongside the drilling of an appraisal well. Baron believes that
the Chuditch-1 Contingent Resources are potentially sufficiently
large to be economically viable to be developed standalone or in
parallel with other developments in the region.
In addition, aggregated gross Pmean Prospective Resources
attributable to the licence according to the CPR amounted to 1,562
Bscf gas across three prospects, Chuditch SW, Chuditch NE and
Quokka. Geological Chances of Success ("GCOS") for these prospects
range from 52% to 26%, providing substantial follow on, low risk
exploration potential to any Chuditch-1 development. It is notable
that Baron's in-house probabilistic estimates of aggregated gross
Prospective gas Resources for these prospects, at 2,128 Bscf of
gas, are higher that ERCE's estimates. This arises mainly through
the Company's preferred use of the latest reprocessed seismic data
velocity model to define the extent of the prospects.
Detailed tabulations of the resources assessed within the
Chuditch PSC and further commentary can be accessed via the
Company's RNS announcement of 28 February 2023 and the full CPR
document which is available on Baron's corporate website
(www.baronoilplc.com).
Also in October 2022, we announced a six-month extension to
Contract Year Two of the Chuditch PSC granted by the relevant
Timor-Leste national authority, Autoridade Nacional do Petróleo e
Minerais ("ANPM"). The PSC Contract now has an expiry date of 18
June 2023.
On entry into Contract Year 3 of the PSC, the commitment will be
to drill an appraisal well within a 12-month period. Such an
appraisal well would likely be drilled to a total depth of around
3,000 metres and would include a production test. Recent
geopolitical events and post-pandemic supply chain issues have led
to considerable disruption in rig availability and drilling
services globally such that a drill deadline of June 2024 could
prove challenging.
There continues to be an excellent working relationship between
the Company, the Government Ministry of Petroleum and Mineral
Resources ("MPM"), Autoridade Nacional do Petróleo e Minerais
("ANPM"), the Government regulatory authority of petroleum and
mining, and TIMOR GAP. We meet regularly with all of these bodies
and provide detailed updates around our activities, plans and
timelines on the PSC. The Company appreciates the support that we
receive from these various state entities and will continue to work
on maintaining these close relationships.
As part of our in-country activities, including the efforts of
our local Dili offices, we are also undertaking various initiatives
to develop the capabilities of the Timorese geological community,
through relationships with local universities, welcoming student
interns and sponsoring a new local chapter of the Society of
Petroleum Engineers.
More generally in Timor-Leste, there was increased E&P
activity during the year as Timor Resources Pty Ltd commenced an
onshore drilling campaign, the first in 50 years. In addition, the
Greater Sunrise development project continued to move towards
development with negotiations between its many stakeholders. In
April successful bidders of five blocks in the Second Licencing
Round were announced by the Timor-Leste authorities, including
Block P, which sits between the Chuditch PSC and Greater Sunrise,
to a subsidiary of the Italian major ENI.
Throughout the period the Company hosted and kept updated a
Virtual Dataroom for the benefit of potentially interested funding
partners for the next phase of the Chuditch project, a process
which continues.
United Kingdom Offshore Licence P2478 ("Dunrobin") (Baron 32%
interest)
Background
Innovate Licence P2478, awarded in September 2019, is currently
held by a joint operation comprising Reabold North Sea Limited
("Reabold", Licence Administrator, interest 36%), Baron (32%), and
Upland Resources (UK Onshore) Limited (32%). The licence covers
blocks 12/27c, 17/5, 18/1 and 18/2 in the Inner Moray Firth area of
the North Sea and contains the Dunrobin and Golspie prospects, in a
province where regional and local petroleum systems are considered
by the partners to be proven. Target depths are as shallow as 660
metres subsea and water depths are less than 100 metres.
The work commitments on the Licence are to undertake
reprocessing of legacy 3D and 2D seismic data and perform other
studies, in order to better understand the subsurface risks, reduce
the range of volumetric uncertainty, as well as providing drilling
location candidates ahead of making a decision whether to proceed
beyond the end of the Phase A evaluation stage of the licence on 14
July 2023.
2022 and subsequent activities
The key technical work components of the Phase A commitments -
those of seismic reprocessing plus geochemical studies - were
delivered during second half of 2022 on time and budget. Detailed
seismic attribute analysis, designed to investigate candidate
direct hydrocarbon indicators, followed in early 2023. A thorough
revised evaluation of the prospectivity of P2478 is now finalised,
with the UK's North Sea Transition Authority ("NSTA") recording
that the work programme was fully complete during March 2023. Baron
maintained direct technical involvement during 2022.
Towards the end of 2022, consultancy group RPS was engaged by
the joint operation to prepare a CPR to provide an independent
validation of resource estimates to a SPE PRMS compliant standard.
The CPR was announced and published on Baron's website on 16
February 2023.
The CPR provided independent confirmation of the Company's
belief that the western part of the Dunrobin complex had matured
into a drillable prospect where a relatively low-cost exploration
well can target more than 100 MMbbl of gross Pmean Prospective
Resources with low geological risk. The key points from the CPR can
be summarised as follows:
-- 201mmboe gross unrisked Pmean Prospective Resources on
licence when aggregated;
-- the Dunrobin West prospect ("Dunrobin West") estimated
to contain 119mmboe gross unrisked Pmean Prospective
Resources aggregated across the Jurassic and Triassic
stacked targets;
-- 34% Geological Probability of Success (GPoS) at the Dunrobin
West Jurassic primary target, with an estimated 71mmbbl
(gross) of Pmean Prospective Resources.
The CPR estimates indicate that Baron's farm-up arrangement of
August 2021 increased the Company's share of aggregate net Pmean
Prospective Resources on the Licence from 30mmboe to 64mmboe at a
capped cost to Baron of GBP160,000.
Detailed tabulations of the resources assessed within the P2478
licence, and further commentary, can be accessed via the Company's
RNS announcement of 16 February 2023, along with the full CPR
document which is available on Baron's corporate website
(www.baronoilplc.com).
During the first quarter of 2023, the Licence Administrator, on
behalf of the joint operation, hosted a Virtual Dataroom in order
to attract funding for an exploration well on the Dunrobin West
prospect, a process which continues.
Current gross cost estimates for an exploration well to be
drilled to a total depth of approximately 700 metres are
approximately US$10 million on a dry hole basis.
Block XXI, Peru
In April 2022, Baron requested the relinquishment of the legacy
Licence Block XXI in Peru. The Licence had been largely under Force
Majeure for a variety of reasons since 2017 and the Company had
been frustrated in its attempts to access the area in order to
carry out operations. The Bank Guarantee of US$160,000 was released
in full to Baron in June. We continue to work with the Peruvian
authorities to establish and file an Abandonment Plan. Ongoing
costs are minimal and we hope to complete our withdrawal from Peru
by the end of 2023.
New Ventures
In line with our strategy, the Company continued to screen early
stage opportunities. In this context, in January 2023 the Company
announced that, as a joint venture non-operating partner, it had
submitted an application in the UK's 33rd Offshore Licensing
Round.
Further potential new ventures remain under consideration in
both our existing areas of activity and elsewhere.
Corporate
In April 2022, the Company completed an oversubscribed Placing
and Subscription of new ordinary shares at 0.06p to raise GBP1.65
million (gross). The monies were to be applied to support the
Chuditch PSC (Timor-Leste) and P2478 (UK) projects as they moved
towards their key milestones.
In November 2022, the Company completed an oversubscribed
Placing and Subscription and Rex Retail Offer of new ordinary
shares at 0.12p, double the funding price achieved in April, to
raise GBP5.36 million (gross). These monies were predominantly
raised to support workstreams underpinning the ongoing farm-out
discussions and to provide working capital into 2023.
The Company was pleased to announce on 15 November 2022 the
appointment of Keith Bush, the former Chief Executive Officer of
Cabot Energy Plc (previously known as Northern Petroleum Plc), as
an independent non-executive Director. Keith has a petroleum
engineering background, with significant experience in the oil and
gas sector. He is a member of the Audit Committee and Chairman of
the Remuneration Committee.
Conclusions
I am pleased to report that Baron's overriding task during 2022
- to progress our two material projects, Chuditch and Dunrobin, to
their key evaluation points - was achieved, as signaled by the
publication of CPRs on both assets in early 2023. This represents
the culmination of large volumes of detailed, diligent and high
quality technical work carried out by Baron's team of global
consultants, employees and joint operation partners.
The considerable and potentially transformative value for
shareholders in the Company's assets offshore Timor-Leste and UK is
now clearly defined. We are now directing our efforts onto the
drilling decisions to be made in 2023 for a Chuditch-1 appraisal
well and a Dunrobin West exploration well.
In Timor-Leste, the independent assessment of approximately
1.1Tcf of gross Pmean Contingent Resources for the Chuditch-1
discovery underpins the viability of the project. We are updating
the development and gas export option studies and commencing
environmental baseline studies in preparation for a drilling
campaign. The Board currently believes that a single appraisal well
may be sufficient to determine commerciality without the need for
an immediate follow-on exploration campaign.
In the UK an exploration well on Dunrobin West will be designed
to test gross Pmean Prospective Resources of 71mmbbl in the
primary, regionally proven, Jurassic target, and 45mmbbl in the
vertically underlying secondary Triassic target. Due to the shallow
target depths, gross drilling costs to test such a substantial
volume are likely to be relatively modest. Success at Dunrobin West
would de-risk the potential follow up targets Dunrobin Central
& East plus Golspie, which are directly analogous
prospects.
Both assets continue to attract attention via our active farmout
campaigns and presentations at relevant industry events. In
particular, there are a number of ongoing discussions with third
parties regarding participation in the Chuditch appraisal well and
future activities. We look forward to updating shareholders on
progress as and when appropriate.
Our search for new venture opportunities to enhance and
complement the existing portfolio resulted in an application as a
non-operating partner for a licence in the offshore UK 33(rd) Round
of Licensing and we continue to actively pursue other material new
business opportunities.
We are grateful for the support of our investors through the two
funding events in 2022. As a result we have a well-funded balance
sheet covering our current activities and commitments. As at 31
December 2022 we had cash reserves of GBP5.8 million (2021: GBP1.65
million). The addition of Mr Keith Bush as an independent
non-executive Director in 2022 also strengthens and broadens the
Board's talents as we enter a decisive phase of operations.
John Wakefield
Non-executive Chairman
22 May 2023
CONSOLIDATED INCOME STATEMENT
FOR THE YEARED 31 DECEMBER 2022
Notes 2022 2021
GBP'000 GBP'000
Revenue - -
Cost of sales - -
Gross profit - -
Exploration and evaluation expenditure (213) (218)
Intangible asset impairment 9 - (17)
Property, plant and equipment
impairment
and depreciation 8 (33) (11)
Receivables and inventory impairment 3 - (7)
Administration expenses (1,191) (1,321)
Gain on exchange 3 43 22
Other operating income 3 - 89
Operating loss 3 (1,394) (1,463)
Income from associated undertaking 11 - 29
Gain on disposal of associated
undertaking - 302
Loss before interest
and taxation (1,394) (1,132)
Finance cost 5 (5) ( 2)
Finance income 5 12 7
Loss on ordinary activities
before taxation (1,387) (1,127)
Income tax expense 6 - -
Loss on ordinary activities
after taxation (1,387) (1,127)
Dividends - -
Loss for the year (1,387) (1,127)
---------------------------------------- ------ ------------------------------- -------------------------------
Loss on ordinary activities
after taxation is attributable
to:
Equity shareholders (1,387) (1,127)
Non-controlling interests - -
(1,387) (1,127)
-------------------------------------- ------ ------------------------------- -------------------------------
Earnings per ordinary share -
continuing operations 7
Basic (0.010p) (0.012p)
Diluted (0.010p) (0.012p)
CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME FOR THE YEARED 31 DECEMBER 2022
Restated
2022 2021
GBP'000 GBP'000
Loss on ordinary activities after taxation
attributable to the parent (1,387) (1,127)
Other comprehensive income: items
which may subsequently be reclassified
to profit or loss:
Exchange difference on translating foreign
operations 174 33
Total comprehensive loss for the year (1,213) (1,094)
----------------------------------------------- -------- ---------
Total comprehensive loss attributable
to
Owners of the parent (1,213) (1,094)
------------------------------------------------ -------- ---------
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AT 31 DECEMBER 2022 Restated
Notes 2022 2021
GBP'000 GBP'000
Assets
Non current assets
Property plant and equipment
--- oil and gas assets 8 - -
--- others 8 78 34
Intangible fixed assets 9 3,696 2,736
Goodwill 10 - -
Associated undertaking 11 - -
3,774 2,770
------------------------------------- --------- --------------------- ---------------------
Current assets
Trade and other receivables 13 101 54
Performance bond guarantee deposit 14 827 859
Cash and cash equivalents 15 5,807 1,650
6,735 2,563
------------------------------------- --------- --------------------- ---------------------
Total assets 10,509 5,333
--------------------------------------- --------- --------------------- ---------------------
Equity and liabilities
Capital and reserves attributable
to owners of the parent
Share capital 18 4,730 2,896
Share premium account 19 38,846 34,061
Share option reserve 19 332 388
Foreign exchange translation
reserve 19 1,735 1,561
Retained earnings 19 (35,555) (34,224)
Total equity 10,088 4,682
--------------------------------------- --------- --------------------- ---------------------
Current liabilities
Trade and other payables 16 377 620
Taxes payable 16 14 12
391 632
------------------------------------- --------- --------------------- ---------------------
Non-current liabilities
Lease finance 17 30 19
--------------------------------------- --------- --------------------- ---------------------
Total equity and liabilities 10,509 5,333
--------------------------------------- --------- --------------------- ---------------------
The financial statements were approved and authorised for issue
by the Board of Directors on 22 May 2023 and were signed on
its behalf by:
Andrew
John Wakefield Yeo
Director Director
Company number: 05098776
COMPANY STATEMENT OF FINANCIAL POSITION AT 31 DECEMBER 2022
Notes 2022 2021
GBP'000 GBP'000
Assets
Non current assets
Property plant and equipment
--- oil and gas
assets - -
--- others 8 21 33
Intangible fixed
assets 9 159 68
Investments 12 5,002 3,029
5,182 3,130
--------------------------------------- ------------- --------- ---------
Current assets
Trade and other
receivables 13 61 46
Cash and cash equivalents 15 5,625 1,527
5,686 1,573
--------------------------------------- ------------- --------- ---------
Total assets 10,868 4,703
----------------------------------------- ------------- --------- ---------
Equity and liabilities
Capital and reserves attributable
to owners of the parent
Share capital 18 4,730 2,896
Share premium account 19 38,846 34,061
Share option reserve 19 332 388
Foreign exchange translation
reserve 19 (163) (163)
Retained earnings 19 (33,085) (32,586)
Total equity 10,660 4,596
----------------------------------------- ------------- --------- ---------
Current liabilities
Trade and other
payables 16 185 76
Taxes payable 16 14 12
199 88
--------------------------------------- ------------- --------- ---------
Non-current liabilities
Lease finance 17 9 19
----------------------------------------- ------------- --------- ---------
Total equity and
liabilities 10,868 4,703
----------------------------------------- ------------- --------- ---------
As permitted by section 408 of the Companies Act 2006, the Parent
Company's income statement has not been included in these financial
statements. The loss of the Parent Company for the year was
GBP555,000 (2021: loss of GBP1,096,000).
The financial statements were approved and authorised for issue
by the Board of Directors on 22 May 2023 and were signed on
its behalf by:
John Wakefield Andrew Yeo
Director Director
Company number:
05098776
CONSOLIDATED AND COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEARED 31 DECEMBER 2022
Foreign
Share
Share Share Retained option exchange Total
capital premium earnings reserve translation equity
Group GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
As at 1
January
2021 1,107 32,156 (33,130) 135 1,528 1,796
--------------- --------------------------------- ------------------------------- ------------------------------- ------------------------------- ------------------------------- --------------------
Shares issued
(net
of
transaction
costs) 1,789 1,905 - - - 3,694
--------------- --------------------
Transactions
with
owners 1,789 1,905 - - - 3,694
--------------- --------------------------------- ------------------------------- ------------------------------- ------------------------------- ------------------------------- --------------------
Loss for the
year
attributable
to
equity
shareholders - - (1,127) - - (1,127)
Share based
payments - - - 286 - 286
Share option
reserve
released - - 33 (33) - -
Foreign
exchange
translation
adjustments - - - - 33 33
--------------- ------------------------------- --------------------
Total
comprehensive
income for
the period - - (1,094) 253 33 (808)
--------------------------------- ------------------------------- ------------------------------- ------------------------------- ------------------------------- --------------------
As at 1
January
2022 2,896 34,061 (34,224) 388 1,561 4,682
--------------- --------------------------------- ------------------------------- ------------------------------- ------------------------------- ------------------------------- --------------------
Shares issued
(net
of
transaction
costs) 1,834 4,785 - - - 6,619
--------------- --------------------
Transactions
with
owners 1,834 4,785 - - - 6,619
--------------- --------------------------------- ------------------------------- ------------------------------- ------------------------------- ------------------------------- --------------------
(Loss) for the
year
attributable
to
equity
shareholders - - (1,387) - - (1,387)
Share option
reserve
released - - 56 (56) - -
Foreign
exchange
translation
adjustments - - - - 174 174
--------------- ------------------------------- --------------------
Total
comprehensive
income for
the period - - (1,331) (56) 174 (1,213)
--------------- --------------------------------- ------------------------------- ------------------------------- ------------------------------- ------------------------------- --------------------
As at 31
December
2022 4,730 38,846 (35,555) 332 1,735 10,088
--------------- --------------------------------- ------------------------------- ------------------------------- ------------------------------- ------------------------------- --------------------
CONSOLIDATED AND COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEARED 31 DECEMBER 2022 - continued
Share Foreign
Share Share Retained option exchange Total
capital premium earnings reserve translation equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Company
As at 1
January
2021 1,107 32,156 (31,523) 135 (163) 1,712
--------------- ----------------------------------- --------------------------------- ---------------- ------------------ ------------------------------- ------------------
Shares issued
(net
of
transaction
costs) 1,789 1,905 - - - 3,694
---------------
Transactions
with
owners 1,789 1,905 - - - 3,694
--------------- ----------------------------------- --------------------------------- ---------------- ------------------ ------------------------------- ------------------
Profit for the
year - - (1,096) - - (1,096)
Share based
payments - - - 286 - 286
Share option
reserve
released - - 33 (33) - -
Total
comprehensive
income for
the period - - (1,063) 253 - (810)
--------------- ----------------------------------- --------------------------------- ---------------- ------------------ ------------------------------- ------------------
As at 1
January
2022 2,896 34,061 (32,586) 388 (163) 4,596
--------------- ----------------------------------- --------------------------------- ---------------- ------------------ ------------------------------- ------------------
Shares issued
(net
of
transaction
costs) 1,834 4,785 - - - 6,619
---------------
Transactions
with
owners 1,834 4,785 - - - 6,619
--------------- ----------------------------------- --------------------------------- ---------------- ------------------ ------------------------------- ------------------
Loss for the
year - - (555) - - (555)
Share option
reserve
released - - 56 (56) - -
Total
comprehensive
income for
the period - - (499) (56) - (555)
--------------- ----------------------------------- --------------------------------- ---------------- ------------------ ------------------------------- ------------------
As at 31
December
2022 4,730 38,846 (33,085) 332 (163) 10,660
--------------- ----------------------------------- --------------------------------- ---------------- ------------------ ------------------------------- ------------------
Share capital is the amount subscribed for shares at nominal
value.
Share premium represents the excess of the amount subscribed
for share capital over the nominal value of those shares net
of share issue expenses.
Retained earnings represents the cumulative loss of
the Group attributable to equity shareholders.
Foreign exchange translation occurs on consolidation of the
translation of the subsidiaries balance sheets at the closing
rate of exchange and their income statements at the average
rate.
CONSOLIDATED AND COMPANY STATEMENT OF CASH FLOWS
FOR THE
YEARED 31 DECEMBER 2022
Restated
Group Company Group Company
2022 2022 2021 2021
-------------------------------- -------------------- -------------------- ---------------- -------------------
GBP'000 GBP'000 GBP'000 GBP'000
Operating activities (1,750) (582) (1,179) (681)
Investing activities
Return from investment and
servicing
of finance 12 11 7 7
Advances to subsidiary and
associated
undertakings - (1,848) 323 (707)
Performance bond guarantee
deposit
returned 128 - - -
Additions to exploration and
evaluation assets (806) (91) (1,356) (50)
Acquisition of tangible assets (17) - (1) (1)
Investment in associated
undertaking - - (93) (1,909)
(683) (1,928) (1,120) (2,660)
-------------------------------- -------------------- -------------------- ---------------- -------------------
Financing activities
Net proceeds from issue of share
capital 6,619 6,619 2,768 3,694
Lease financing (29) (11) (9) (9)
6,590 6,608 2,759 3,685
-------------------- -------------------- ---------------- -------------------
Net cash inflow 4,157 4,098 460 344
Cash and cash equivalents at
the beginning of the year 1,650 1,527 1,190 1,183
Cash and cash equivalents at
the end of the year 5,807 5,625 1,650 1,527
--------------------------------- -------------------- -------------------- ---------------- -------------------
Note to the Consolidated and
Company Statement of Cash Flow
Restated
Group Company Group Company
2022 2022 2021 2021
------------------------------- ------------------- -------------------- ------------------- ------------------
GBP'000 GBP'000 GBP'000 GBP'000
Operating activities
Loss for the year
attributable to controlling
interests (1,387) (555) (1,127) (1,096)
Depreciation, amortisation and
impairment charges 33 55 28 135
Share based payments - - 286 286
Finance income shown as an
investing
activity (12) (11) (7) (7)
Interest on lease liability 4 1 - -
Gain on disposal of associated
undertaking - - (163) -
Income from associated
undertaking - - (29) -
Foreign exchange
translation (74) (205) 19 (19)
Operating cash outflows before
movements in working capital (1,436) (715) (993) (701)
-------------------------------- ------------------- -------------------- ------------------- ------------------
(Increase)/decrease
in receivables (47) 22 (743) 6
(Decrease)/increase in payables (267) 111 557 14
Net cash outflows from
operating
activities (1,750) (582) (1,179) (681)
-------------------------------- ------------------- -------------------- ------------------- ------------------
NOTES TO THE FINANCIAL STATEMENTS
General Information
Baron Oil Plc is a company incorporated in England and Wales and
quoted on the AIM market of the London Stock Exchange. The address
of the registered office is disclosed on page 2 of the financial
statements. The principal activity of the Group is described in the
Strategic Report in section 4 on page 9.
(1) Significant accounting policies
The principal accounting policies applied in the preparation of
these consolidated financial statements are set out below. These
policies have been consistently applied to all the periods
presented, unless otherwise stated.
Going concern basis
The Directors have prepared a cash ow forecast covering a period
extending beyond 12 months from the date of these nancial
statements which contains certain assumptions about the development
and strategy of the business. The Directors are aware of the risks
and uncertainties facing the business but the assumptions used are
the Directors' best estimate of its future development.
After considering the forecasts and the risks, the Directors
have a reasonable expectation that the Group has adequate resources
to continue in operational existence for the foreseeable future.
For these reasons, they continue to adopt the going concern basis
of accounting in preparing the annual nancial statements.
The nancial statements do not include any adjustments that would
result if the Group was unable to continue as a going concern.
Basis of preparation
The financial statements have been prepared in accordance with
UK adopted International Accounting Standards and IFRIC
interpretations issued by the International Accounting Standards
Board (IASB) and with those parts of the Companies Act 2006
applicable to companies reporting under IFRS. The financial
statements have been prepared under the historical cost convention.
The principal accounting policies adopted are set out below.
Changes in accounting policies and disclosures
Adoption of new and revised standards
During the year the Group adopted the following IFRS amendments
and standards for the first time:
* Onerous contracts (Amendments to IAS 37)
* Property, plant and equipment (Amendments to IAS 16)
* Annual Improvements 2018-2020 cycle (IFRS 1, IFRS 9,
IFRS 16 and IAS 41), and
* References to Conceptual Framework (Amendments to
IFRS 3)
Details of the impact of these standards on the Group are as
follows:
Onerous Contracts - Cost of Fulfilling a Contract (Amendments to
IAS 37)
IAS 37 defines an onerous contract as a contract in which the
unavoidable costs (costs that the Group has committed to as part of
the contract) of meeting the obligations under the contract exceed
the economic benefits expected to be received under it. The
amendments to IAS 37.68A clarify that the costs relating directly
to the contract consist of both:
-- The incremental costs of fulfilling that contract- e.g.
direct labour and material; and
-- an allocation of other costs that relate directly to
fulfilling contracts: e.g. allocation of depreciation charge on
property, plant and equipment used in fulfilling the contract.
The Board has assessed that under the revised definition the
Group held no onerous contracts in the current or comparative
periods.
Property, Plant and Equipment: Proceeds before Intended Use
(Amendments to IAS 16)
The amendment to IAS 16 prohibits an entity from deducting from
the cost of an item of PP&E any proceeds received from selling
items produced while the entity is preparing the asset for its
intended use (for example, the proceeds from selling samples
produced during the testing phase of a manufacturing facility after
it is being constructed but before start of commercial production).
The proceeds from selling such samples, together with the costs of
producing them, are now recognised in profit or loss. The Board
considers that there is no material impact of this amendment.
Annual Improvements to IFRS Standards 2018-2020 (Amendments to
IFRS 1, IFRS 9, IFRS 16 & IAS 41) .
-- IFRS 1: Subsidiary as a First-time Adopter (FTA)
-- IFRS 9: Fees in the '10 per cent' Test for Derecognition of
Financial liabilities
-- IAS 41: Taxation in Fair Value Measurements
The Board considers that there is no material impact of this
amendment.
References to Conceptual Framework (Amendments to IFRS 3)
In May 2020, the IASB issued amendments to IFRS 3, which update
a reference to the Conceptual Framework for Financial Reporting
without changing the accounting requirements for business
combinations. The Board considers that there is no material impact
of this amendment.
a) New standards, interpretations and amendments not yet effective
The following IFRSs and amendments have been issued by the IASB
but are not effective until a future period.
* IFRS 17 Insurance Contracts and Initial Application
of IFRS 17 and IFRS 9, Comparative Information
(Amendments to IFRS 17)
* Disclosure of Accounting Policies (Amendments to IAS
1 and IFRS Practice Statement 2)
* Definition of Accounting Estimates (Amendments to IAS
8)
* Deferred Tax Relating to Assets and Liabilities
arising from a Single Transaction (Amendments to IAS
12)
* IFRS 16 Leases (Amendment, Liability in a Sale and
Leaseback) (not yet endorsed by the UK Endorsement
Board)
* IAS 1 Presentation of Financial Statements
(Amendments to Classification of Liabilities as
Current or Non-current) (not yet endorsed by the UK
Endorsement Board)
* IAS 1 Presentation of Financial Statements (Amendment
to Non-current liabilities with covenants).
The Board is currently assessing the impact of these new
amendments on the Group's financial reporting for future periods.
However, the board does not expect any of the above to have a
material impact on future results.
Basis of consolidation
The consolidated financial statements include the financial
statements of the Company and its subsidiaries and associated
undertakings.
Subsidiaries
Subsidiaries are all entities over which Baron Oil Plc has the
power to govern the financial and operating policies generally
accompanying a shareholding of more than one half of the voting
rights, or where Baron Oil Plc exercises effective operational
control. The existence and effect of potential voting rights that
are currently exercisable or convertible are considered when
assessing whether the Group controls another entity. Subsidiaries
are fully consolidated from the date on which control is
transferred to the Company. They are de-consolidated from the date
that control ceases.
Inter-company transactions, balances and unrealised gains on
transactions between Group companies are eliminated. Unrealised
losses are also eliminated but considered an impairment indicator
of the asset transferred. Accounting policies of subsidiaries have
been changed where necessary to ensure consistency with the
policies adopted by the Group.
Impairment of non-financial assets
At each statement of financial position date, the Group reviews
the carrying amounts of its tangible and intangible assets to
determine whether there is any indication that those assets have
suffered an impairment loss. If any such indication exists, the
recoverable amount of the asset is estimated in order to determine
the extent of the impairment loss (if any). Where the asset does
not generate cash flows that are independent from other assets, the
Group estimates the recoverable amount of the cash-generating unit
to which the asset belongs. An intangible asset with an indefinite
useful life is tested for impairment annually and whenever there is
an indication that the asset may be impaired.
Recoverable amount is the higher of fair value less costs to
sell and value in use. In assessing value in use, the estimated
future cash flows are discounted to their present value using a
pre-tax discount rate that reflects current market assessments of
the time value of money and the risks specific to the asset for
which the estimates of future cash flows have not been
adjusted.
If the recoverable amount of an asset (or cash-generating unit)
is estimated to be less than its carrying amount, the carrying
amount of the asset (cash-generating unit) is reduced to its
recoverable amount. An impairment loss is recognised as an expense
immediately, unless the relevant asset is carried at a re-valued
amount, in which case the impairment loss is treated as a
revaluation decrease.
Where an impairment loss subsequently reverses, the carrying
amount of the asset (cash-generating unit) is increased to the
revised estimate of its recoverable amount, but so that the
increased carrying amount does not exceed the carrying amount that
would have been determined had no impairment loss been recognised
for the asset (cash-generating unit) in prior periods. A reversal
of an impairment loss is recognised as income immediately, unless
the relevant asset is carried at a revalued amount, in which case
the reversal of the impairment loss is treated as a revaluation
increase.
Intangible Assets
Oil and gas assets: exploration and evaluation
The Group has continued to apply the 'successful efforts' method
of accounting for Exploration and Evaluation ("E&E") costs,
having regard to the requirements of IFRS 6 'Exploration for the
Evaluation of Mineral Resources'.
The successful efforts method means that only the costs which
relate directly to the discovery and development of specific oil
and gas reserves are capitalised. Such costs may include costs of
licence acquisition, technical services and studies, seismic
acquisition; exploration drilling and testing but do not include
costs incurred prior to having obtained the legal rights to explore
the area. Under successful efforts accounting, exploration
expenditure which is general in nature is charged directly to the
income statement and that which relates to unsuccessful drilling
operations, though initially capitalised pending determination, is
subsequently written off. Only costs which relate directly to the
discovery and development of specific commercial oil and gas
reserves will remain capitalised and to be depreciated over the
lives of these reserves. The success or failure of each exploration
effort will be judged on a well-by-well basis as each potentially
hydrocarbon-bearing structure is identified and tested. Exploration
and evaluation costs are capitalised within intangible assets.
Capital expenditure on producing assets is accounted for in
accordance with SORP 'Accounting for Oil and Gas Exploration'.
Costs incurred prior to obtaining legal rights to explore are
expensed immediately to the income statement.
All lease and licence acquisition costs, geological and
geophysical costs and other direct costs of exploration, evaluation
and development are capitalised as intangible or property, plant
and equipment according to their nature. Intangible assets comprise
costs relating to the exploration and evaluation of properties
which the Directors consider to be unevaluated until reserves are
appraised as commercial, at which time they are transferred to
tangible assets as 'Developed oil and gas assets' following an
impairment review and depreciated accordingly. Where properties are
appraised to have no commercial value, the associated costs are
treated as an impairment loss in the period in which the
determination is made.
Costs are amortised on a field by field unit of production
method based on commercial proven and probable reserves, or to the
expiry of the licence, whichever is earlier.
The calculation of the 'unit of production' amortisation takes
account of the estimated future development costs and is based on
the current period and un-escalated price levels. Changes in
reserves and cost estimates are recognised prospectively.
E&E costs are not amortised prior to the conclusion of
appraisal activities.
Property, plant and equipment
Non oil and gas assets
Non oil and gas assets are stated at cost of acquisition less
accumulated depreciation and impairment losses. Depreciation is
provided on a straight-line basis at rates calculated to write off
the cost less the estimated residual value of each asset over its
expected useful economic life. The residual value is the estimated
amount that would currently be obtained from disposal of the asset
if the asset were already of the age and in the condition expected
at the end of its useful life.
Buildings, plant and equipment unrelated to production are
depreciated using the straight-line method based on estimated
useful lives.
The annual rate of depreciation for each class of depreciable
asset is:
Equipment and machinery 4-10 years
The carrying value of tangible fixed assets is assessed annually
and any impairment is charged to the income statement.
Investments
Investments are stated at cost less provision for any impairment
in value.
Trade and other receivables
Trade receivables are recognised initially at fair value and
subsequently measured at amortised cost using the effective
interest method, less provision for impairment. A provision for
impairment is established when there is objective evidence that the
Group will not be able to collect all amounts due according to the
original terms of the receivables. Significant financial
difficulties of the debtor, probability that the debtor will enter
bankruptcy or financial reorganisation, and default or delinquency
in payments are considered indicators that the trade receivable is
impaired.
Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held on
call with banks, other short-term highly liquid investments with
original maturities of three months or less, and bank overdrafts.
Bank overdrafts are shown within borrowings in current liabilities
on the statement of financial position.
Taxation
Income tax
Income tax expense represents the sum of the tax currently
payable and deferred tax.
The tax currently payable is based on taxable profit or loss for
the year. Taxable profit or loss differs from profit or loss as
reported in the same income statement because it excludes items of
income or expense that are taxable or deductible in other periods
and it further excludes items that are never taxable or deductible.
The Company's liability for current tax is calculated using tax
rates that have been enacted or substantively enacted by the
statement of financial position date.
Deferred tax
Deferred tax is recognised on differences between the carrying
amounts of assets and liabilities in the financial statements and
the corresponding tax bases used in the computation of taxable
profit and is accounted for using the statement of financial
position liability method. Deferred tax liabilities are generally
recognised for all taxable temporary differences and deferred tax
assets are recognised to the extent that it is probable that
taxable profits will be available against which deductible
temporary differences can be utilised. Such assets and liabilities
are not recognised if the temporary difference arises from goodwill
or from the initial recognition (other than in a business
combination) of other assets and liabilities in a transaction that
affects neither the taxable profit nor the accounting profit.
The carrying amount of deferred tax is reviewed at each
statement of financial position date and reduced to the extent that
it is no longer probable that sufficient taxable profits will be
available to allow all or part of the asset to be recovered.
Deferred tax is calculated at the tax rates that are expected to
apply in the period when the liability is settled or the asset
realised. Deferred tax is charged or credited to income statement,
except when it relates to items charged or credited directly to
equity, in which case the deferred tax is also dealt with in
equity.
Deferred tax assets and liabilities are offset when there is a
legally enforceable right to set off current tax assets against
current tax liabilities and when they relate to income taxes levied
by the same taxation authority and the Company intends to settle
its current tax assets and liabilities on a net basis.
Trade and other payables
Trade payables are not interest bearing and are stated at their
nominal value. Trade and other payables are initially recognised at
fair value. They are subsequently measured at amortised cost using
the effective interest method unless the effect of discounting
would be immaterial, in which case they are stated at cost.
Fair values
The carrying amounts of the financial assets and liabilities
such as cash and cash equivalents, receivables and payables of the
Group at the statement of financial position date approximated
their fair values, due to the relatively short term nature of these
financial instruments.
Share-based compensation
The fair value of the employee and suppliers services received
in exchange for the grant of the options is recognised as an
expense. The total amount to be expensed over the vesting period is
determined by reference to the fair value of the options granted,
excluding the impact of any non-market vesting conditions (for
example, profitability and sales growth targets). Non-market
vesting conditions are included in assumptions about the number of
options that are expected to vest. At each statement of financial
position date, the entity revises its estimates of the number of
options that are expected to vest. It recognises the impact of the
revision to original estimates, if any, in the income statement,
with a corresponding adjustment to equity.
The proceeds received net of any directly attributable
transaction costs are credited to share capital (nominal value) and
share premium when the options are exercised.
Share based payments (Note 20)
The fair value of share-based payments recognised in the income
statement is measured by use of the Black Scholes model, which
takes into account conditions attached to the vesting and exercise
of the equity instruments. The expected life used in the model is
adjusted based on management's best estimate, for the effects of
non-transferability, exercise restrictions and behavioural
considerations. The share price volatility percentage factor used
in the calculation is based on management's best estimate of future
share price behaviour and is selected based on past experience,
future expectations and benchmarked against peer companies in the
industry.
Equity instruments
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new
shares or options are shown in equity as a deduction, net of tax,
from proceeds.
Loans and receivables
The Group classifies all its financial assets as trade and other
receivables. The classification depends on the purpose for which
the financial assets were acquired.
Trade receivables and other receivables that have fixed or
determinable payments that are not quoted in an active market are
classified as loans and receivables financial assets. Loans and
receivables financial assets are measured at amortised cost using
the effective interest method, less any impairment loss.
The Group's loans and receivables financial assets comprise
other receivables (excluding prepayments) and cash and cash
equivalents included in the Statement of Financial Position.
Lease accounting
At the commencement date, the Group measures the lease liability
at the present value of the lease payments unpaid at that
date, discounted using the interest rate implicit in the lease
if that rate is readily available or the Group's incremental
borrowing rate.
Lease payments included in the measurement of the lease liability
are made up of xed payments (including in substance xed),
variable payments based on an index or rate, amounts expected
to be payable under a residual value guarantee and payments
arising from options reasonably certain to be exercised.
Subsequent to initial measurement, the liability will be reduced
for payments made and increased for interest. It is remeasured
to re ect any reassessment or modi cation, or if there are
changes in in-substance xed payments.
When the lease liability is remeasured, the corresponding
adjustment is re ected in the right-of-use asset, or pro t
and loss if the right-of-use asset is already reduced to zero.
Interest payable and similar charges include interest payable,
nance charges on shares classi ed as liabilities and nance
leases recognised in pro t or loss using the effective interest
method, unwinding of the discount on provisions, and net foreign
exchange losses that are recognised in the pro t and loss
account.
On the statement of nancial position, lease liabilities have
been included in current and non-current liabilities.
Financial liabilities
Financial liabilities are recognised when, and only when, the
Group becomes a party to the contracts which give rise to them and
are classified as financial liabilities at fair value through the
profit and loss or loans and payables as appropriate. The Group's
loans and payables comprise trade and other payables.
When financial liabilities are recognised initially, they are
measured at fair value plus directly attributable transaction costs
and subsequently measured at amortised cost using the effective
interest method other than those categorised as fair value through
income statement.
The Group determines the classification of its financial
liabilities at initial recognition and re-evaluates the designation
at each financial year end.
A financial liability is derecognised when the obligation under
the liability is discharged, cancelled or expires.
When an existing financial liability is replaced by another from
the same party on substantially different terms, or the terms of an
existing liability are substantially modified, such an exchange or
modification is treated as a de-recognition of the original
liability and the recognition of a new liability, and the
difference in the respective carrying amounts is recognised in the
income statement.
Provisions
Provisions are recognised when the Company has a present
obligation as a result of a past event, and it is probable that the
Company will be required to settle that obligation. Provisions are
measured at the Directors' best estimate of the expenditure
required to settle the obligation at the statement of financial
position date and are discounted to present value where the effect
is material.
Financial instruments
Non-derivative financial instruments comprise investments in
equity and debt securities, trade and other receivables, cash and
cash equivalents, loans and borrowings, and trade and other
payables.
Non-derivative financial instruments are recognised initially at
fair value plus, for instruments not at fair value through profit
or loss, any directly attributable transactions costs, except as
described below. Subsequent to initial recognition non-derivative
financial instruments are measured as described below.
A financial instrument is recognised when the Group becomes a
party to the contractual provisions of the instrument. Financial
assets are derecognised if the Group's contractual rights to the
cash flows from the financial assets expire or if the Group
transfers the financial assets to another party without retaining
control or substantially all risks and rewards of the asset.
Regular purchases and sales of financial assets are accounted for
at trade date, i.e. the date that the Group commits itself to
purchase or sell the asset. Financial liabilities are derecognised
if the Group's obligations specified in the contract expire or are
discharged or cancelled.
Foreign currencies
i) Functional and presentation currency
Items included in the financial statements of the Group are
measured using the currency of the primary economic environment in
which the entity operates (the functional currency), which are
mainly in Pounds Sterling (GBP) and US Dollars (USD). The financial
statements are presented in Pounds Sterling (GBP), which is the
Group's presentation currency.
ii) Transactions and balances
Foreign currency transactions are translated into the
presentational currency using exchange rates prevailing at the
dates of the transactions. Foreign exchange gains and losses
resulting from the settlement of such transactions and from the
translation at period-end exchange rates of monetary assets and
liabilities denominated in foreign currencies are recognised in the
income statement.
iii) Group companies
The results and financial position of all Group entities (none
of which has the currency of a hyper-inflationary economy) that
have a functional currency different from the presentation currency
are translated into the presentation currency as follows:
a) assets and liabilities for each statement of financial
position presented are translated at the closing rate
at the date of that statement of financial position;
b) income and expenses for each income statement are translated
at average exchange rates (unless this average is not
a reasonable approximation of the cumulative effect of
the rates prevailing on the transaction dates, in which
case income and expenses are translated at the rate on
the dates of the transactions); and
c) all resulting exchange differences are recognised as
a separate component of equity. On consolidation, exchange
differences arising from the translation of the net investment
in foreign operations, and of borrowings and other currency
instruments designated as hedges of such investments,
are taken to shareholders' equity. When a foreign operation
is partially disposed of or sold, exchange differences
that were recorded in equity are recognised in the income
statement as part of the gain or loss on sale.
Management of capital
The Group's policy is to ensure that it will always have
sufficient cash to allow it to meet its liabilities when they
become due. To achieve this aim, it seeks to raise new equity
finance and debt sufficient to meet the next phase of exploration
and where relevant development expenditure.
The Board receives cash flow projections on a regular basis as
well as information on cash balances. The Board will not commit to
material expenditure in respect of its ongoing exploration work
prior to being satisfied that sufficient funding is available to
the Group to finance the planned programmes.
Dividends cannot be issued until there are sufficient reserves
available.
Critica l accounting judgements and key sources of estimation
uncertainty
The preparation of the consolidated financial statements
requires management to make estimates and assumptions concerning
the future that affect the reported amounts of assets and
liabilities and the disclosure of contingent assets and liabilities
at the dates of the financial statements and the reported amounts
of revenues and expenses during the reporting periods. The
resulting accounting estimates will, by definition, differ from the
related actual results.
Carrying value of intangible exploration and evaluation
assets
Valuation of oil and gas properties: judgements regarding timing
of regulatory approval, the general economic environment, and the
ability to finance future activities has an impact on the
impairment analysis of intangible exploration and evaluation
assets. All these factors may impact the viability of future
commercial production from unproved properties, and therefore may
be a need to recognise an impairment. The timing of an impairment
review and the judgement of when there could be a significant
change affecting the carrying value of the intangible exploration
and evaluation asset is a critical accounting judgement in
itself.
The Board also assesses potential impairment of the Company's
net investment in subsidiaries by reference to the same judgements
around the circumstances of the Group's oil and gas exploration
projects. At year end the Group's exploration assets which the
board reviewed for impairment were carried at GBP3.7m and the
Company's net investment in subsidiaries was held at GBP5.0m.
Further details are given in Notes 9 and 12 respectively.
Commercial reserves estimates
Oil and gas reserve estimates: estimation of recoverable
reserves include assumptions regarding commodity prices, exchange
rates, discount rates, production and transportation costs all of
which impact future cashflows. It also requires the interpretation
of complex geological and geophysical models in order to make an
assessment of the size, shape, depth and quality of reservoirs and
their anticipated recoveries. The economic, geological and
technical factors used to estimate reserves may change from period
to period. Changes in estimated reserves can impact developed and
undeveloped property carrying values, asset retirement costs and
the recognition of income tax assets, due to changes in expected
future cash flows.
2. Segmental
information
In the opinion of the Directors the Group has one class of
business, being the exploration for, and development and
production of, oil and gas reserves, and other related activities.
The Group's primary reporting format is determined to be
the geographical segment according to the location of the
oil and gas asset. There are currently three geographic reporting
segments: South East Asia where production, development and
exploration activity is being assessed, South America, which
has previously been involved in production, development and
exploration activity but is now being phased out, and the
United Kingdom being the head office and where exploration
activity is taking place.
Exploration and production year ended 31 December
2022
United South South
East
Kingdom America Asia Total
GBP'000 GBP'000 GBP'000 GBP'000
Revenue - - - -
Cost of sales - - - -
Gross profit - - - -
Exploration and
evaluation
expenditure (67) (8) (138) (213)
Property, plant
and equipment
impairment and
depreciation (12) (21) (33)
Administration
expenses (686) (64) (441) (1,191)
Gain on exchange 43 - - 43
Loss before
interest and
taxation (722) (72) (600) (1,394)
Finance cost (1) - (4) (5)
Finance income 11 1 - 12
Loss before
taxation (712) (71) (604) (1,387)
Income tax
expense - - - -
Loss after
taxation (712) (71) (604) (1,387)
----------------- --------------------------------- --------------------------------- --------------------------------- -------------------------------
Assets and
liabilities
Segment assets 298 1 4,403 4,702
Cash and cash
equivalents 5,625 5 177 5,807
Total assets 5,923 6 4,580 10,509
----------------- --------------------------------- --------------------------------- --------------------------------- -------------------------------
Segment
liabilities 194 1 212 407
Current tax
liabilities 14 - - 14
Total
liabilities 208 1 212 421
----------------- --------------------------------- --------------------------------- --------------------------------- -------------------------------
Other segment
items
Capital
expenditure 92 - 794 886
Depreciation,
amortisation
and impairment
charges 12 - 21 33
Exploration and production year ended 31 December 2021
(restated)
United South South
East
Kingdom America Asia Total
GBP'000 GBP'000 GBP'000 GBP'000
Revenue - - - -
Cost of sales - - - -
Gross profit - - - -
Exploration and
evaluation
expenditure (50) (101) (67) (218)
Intangible asset
impairment - (17) - (17)
Property, plant
and equipment
impairment and
depreciation (11) - - (11)
Receivables and
inventory
impairment - (7) - (7)
Administration
expenses (1,031) (5) (285) (1,321)
Gain on exchange 22 - - 22
Other operating
income - - 89 89
Operating
(loss)/profit (1,070) (130) (263) (1,463)
Income from
associated
undertaking - - 29 29
Gain on disposal
of associated
undertaking - - 302 302
Loss before
interest and
taxation (1,070) (130) 68 (1,132)
Finance costs (2) - - (2)
Finance income 7 - - 7
(Loss)/Profit
before
taxation (1,065) (130) 68 (1,127)
Income tax
expense - - - -
Loss/(Profit)
before
taxation (1,065) (130) 68 (1,127)
----------------- --------------------------------- --------------------------------- --------------------------------- -------------------------------
Assets and
liabilities
Segment assets 2,816 4 863 3,683
Cash and cash
equivalents 1,527 5 118 1,650
Total assets 4,343 9 981 5,333
----------------- --------------------------------- --------------------------------- --------------------------------- -------------------------------
Segment
liabilities 94 3 542 639
Current tax
liabilities 12 - - 12
Total
liabilities 106 3 542 651
----------------- --------------------------------- --------------------------------- --------------------------------- -------------------------------
Other segment
items
Capital
expenditure 50 - 1,307 1,357
Depreciation,
amortisation
and impairment
charges 11 24 - 35
3. Operating loss 2022 2021
------------------ ---------------------
GBP'000 GBP'000
The operating loss is stated
after charging:
Auditor' remuneration
Audit of group and company financial statements
- current year 29 25
Audit of group and company financial statements
- prior year 4 -
Non-audit services: Tax compliance 2 2
Non-audit services: Other assurance
services 2 1
Exploration and evaluation expenditure 213 218
Impairment of intangible
assets - 17
Depreciation of property, plant
and equipment 33 11
Impairment of foreign tax receivables - 7
Gain on exchange (43) (22)
Other operating
income - (89)
Other operating income in 2021 arose on the capitalisation
into cost of investment of development costs written off in
prior years in respect of Chuditch, Timor-Leste. This was due
to a reconstruction of the balance sheet of SundaGas (Timor-Leste
Sahul) Pty Ltd ("TLS") when the Group took majority control
in TLS.
The analysis of development and administrative expenses in
the consolidated income statement by nature of expense is:
2022 2021
-------------------------------------------------- ------------------ ---------------------
GBP'000 GBP'000
Employee benefit
expense 632 521
Share based payments - 261
Exploration and evaluation expenditure 213 218
Depreciation, amortisation and
impairment charges 33 35
Legal and professional
fees 410 454
(Gain) on exchange (43) (22)
Other expenses 149 85
1,394 1,552
-------------------------------------------------- ------------------ ---------------------
4. Staff numbers
and cost
The average number of persons employed by the Group (including
directors) during the year, analysed by category, were as follows:
2022 2021
--------------------------------------------- ---------------------------------
Group Company Group Company
Number Number Number Number
Directors 3 3 3 3
Technical and production 4 - -
Administration 2 1 2 1
Total 9 4 5 4
The aggregate payroll
costs of these persons
were as follows: GBP'000 GBP'000 GBP'000 GBP'000
Wages and salaries 206 49 96 80
Directors' fees, salaries
and benefits 390 390 349 349
Share based payments - - 286 286
Social security
costs 47 47 51 51
643 486 782 766
--------------------------- ---------------------- --------------------- ----------------------- --------
5. Finance income and expenses 2022 2021
----------------------------------- ------------------- -----------------
GBP'000 GBP'000
Bank and other interest received 12 7
Interest on lease liability (4) (2)
Other finance cost (1) -
Total 7 5
6. Income tax expense 2022 2021
---------------------------------------------------- -------------------- -------------------------
GBP'000 GBP'000
The tax charge on the loss on ordinary
activities was:-
UK Corporation Tax
- current - -
Foreign taxation - -
- -
------------------------------------------------- -------------------- -------------------------
The total charge for the year can be reconciled
to the accounting result as follows:
2022 2021
------------------------------------------------- -------------------- -------------------------
GBP'000 GBP'000
(Loss) before tax
Continuing operations (1,387) (1,127)
Tax at composite group rate of 18.6%
(2021: 22.4%) (258) (253)
Effects of:
Losses not subject
to tax 163 123
Movement on capital allowances (76) (97)
Increase in tax
losses 171 227
Foreign taxation - -
Tax expense - -
---------------------------------------------------- -------------------- -------------------------
At 31 December 2022, the Group had estimated tax losses of
GBP36,011,000 (2021 - GBP32,933,000) to carry forward against
future profits. The potential deferred tax asset on these tax
losses at a composite group rate of 29.5% of GBP10,636,000
(2021: at 18.1%, GBP5,964,000) has not been recognised due
to uncertainty over the timing and existence of future taxable
profits. The current tax reconciliation has been prepared using
a blended rate of 18.6% (2021: 22.4%) based on prevailing headline
taxation rates as applied to the Group's taxable entities in
the year. The rate assessed for the unrecognised deferred tax
asset reflects management's best estimate of the applicable
rates which would apply to oil and gas revenues in the Group's
respective countries of operation.
7. Earnings per
share
2022 2021
------------------------------------- ----------------- -----------------
Loss per ordinary
share
- Basic (0.010p) (0.012p)
- Diluted (0.010p) (0.012p)
Earnings per ordinary share is based on the Group's loss attributable
to controlling interests for the year of GBP1,387,000 (2021:
GBP1,127,000).
The weighted average number of shares used in the calculation
is the weighted average ordinary shares in issue during the
year of 13,784,079,264 (2021: 9,460,727,853).
Due to the Group's results, the diluted earnings per share
was deemed to be the same as the basic earnings per share for
that year.
8. Property, plant and equipment
Equipment Right of
and use
machinery assets Total
GBP'000 GBP'000 GBP'000
Group
Cost
At 1 January 2021 29 - 29
Foreign exchange translation adjustment 1 - 1
Additions 1 45 46
At 1 January 2022 31 45 76
Foreign exchange translation adjustment 4 - 4
Additions 17 62 79
Disposals (34) - (34)
At 31 December 2022 18 107 125
------------------------------------------ -------------------- ---------------------- -------------------
Depreciation
At 1 January 2021 29 2 31
Charge for the period - 11 11
At 1 January 2022 29 13 42
Foreign exchange translation adjustment 5 1 6
Charge for the period 5 28 33
Disposals (34) - (34)
At 31 December 2022 5 42 47
------------------------------------------ -------------------- ---------------------- -------------------
Net book value
At 31 December 2022 13 65 78
At 31 December 2021 2 32 34
Included in the above line items are Right of Use assets of
GBP65,000 (2021: GBP32,000) in respect of a motor vehicle and
an office lease.
Equipment Right of
and use
machinery asset Total
GBP'000 GBP'000 GBP'000
Company
Cost
At 1 January 2021 - 45 45
Additions 1 - 1
At 1 January and 31 December 2022 1 45 46
--------------------------------------- -------------------------- ---------------------- ---------------------
Depreciation
At 1 January 2021 - 2 2
Charge for the period - 11 11
At 1 January 2022 - 13 13
Charge for the period - 12 12
At 31 December 2022 - 25 25
--------------------------------------- -------------------------- ---------------------- ---------------------
Net book value
At 31 December 2022 1 20 21
At 31 December 2021 1 32 33
Included in the above line items are Right of Use assets of
GBP20,000 (2021: GBP32,000) in respect of a motor vehicle.
9. Intangible fixed
assets Exploration
and evaluation
assets Total
GBP'000 GBP'000
Group
Cost
At 1 January 2021 2,319 2,319
Foreign exchange translation
adjustment 17 17
Additions 1,356 1,356
Consolidation of single asset
company 1,362 1,362
At 1 January 2022 5,054 5,054
Foreign exchange translation
adjustment 275 275
Additions 806 806
Disposals (2,439) (2,439)
At 31 December 2022 3,696 3,696
---------------------------------- --------------------------------- ---------------------------------
Impairment
At 1 January 2021 2,301 2,301
Foreign exchange translation
adjustment - -
Charge for the period 17 17
---------------------------------- --------------------------------- ---------------------------------
At 1 January 2022 2,318 2,318
Foreign exchange translation
adjustment 121 121
Charge for the period - -
Disposals (2,439) (2,439)
At 31 December 2022 - -
------------------------------- --------------------------------- ---------------------------------
Net book value
At 31 December 2022 3,696 3,696
At 31 December 2021 2,736 2,736
Exploration
and evaluation
assets Total
GBP'000 GBP'000
Company
Cost
At 1 January 2021 653 653
Additions 50 50
At 1 January 2022 703 703
Additions 91 91
Disposals (635) (635)
At 31 December 2022 159 159
------------------------------- ------------------------------ ------------------------------
Impairment
At 1 January 2021 and 2022 635 635
Disposals (635) (635)
At 31 December 2022 - -
---------------------------- ------------------------------ ------------------------------
Net book value
At 31 December 2022 159 159
At 31 December 2021 68 68
Exploration and evaluation assets represent amounts capitalised
in progressing the Group's interest in licences for the exploration
of oil and gas in the UK and Timor-Leste.
The Directors have performed an assessment of impairment as
at the balance sheet date in respect of exploration and evaluation
assets, taking account of the facts and circumstances which
existed at that date. Impairment reviews were performed at
the Operating Segment level and therefore separate tests were
performed for the Chuditch and Inner Moray Firth P2478 exploration
assets. The directors concluded that the facts did not give
rise to an impairment and therefore no impairment charge has
been reflected in 2022 (2021: GBP17,000).
During the previous year, the Group increased its holding in
SundaGas (Timor-Leste Sahul) Pty. Ltd ("TLS") from 33.33% to
100%. As a consequence of the increased holding in TLS, the
Company was consolidated into the Group Income Statement and
Statement of Financial Position. As TLS is a single asset company
in pre-production phase, it is included as an oil and gas asset
purchase rather than as a business combination, and its carrying
value is included in intangible assets.
Block XXI Peru: this licence was fully impaired in 2018 and
was relinquished in April 2022.
Goodwill
10. Goodwill on
consolidation
of subsidiaries
GBP'000
Group
Cost
At 1 January 2021 and 1 January
2022 81
Goodwill written off (81)
At 31 December 2022 -
------------------------------------- ------------------------------- ---------------------------------
Impairment
At 1 January 2021 and 1 January
2022 81
Adjustment on write off of goodwill (81)
At 31 December 2022 -
------------------------------------- ------------------------------- ---------------------------------
Net book value
At 31 December 2022 -
At 31 December 2021 -
The carrying value of goodwill represents the purchase of shares
in Gold Oil Peru SAC. This has been written off during the period
as there is no prospect of recovery.
11. Associated undertaking
Shares
in
associated
undertaking Total
GBP'000 GBP'000
Group
Gross investment
value
At 1 January 2021 151 151
Additions 93 93
Share of post acquisition net
result 29 29
Disposal (273) (273)
At 1 January and 31
December 2022 - -
---------------------------------------- ------------------------------- ---------------------------------
Impairment
At 1 January 2021, 1 January
and 31 December 2022 - -
-------------------------------------- ------------------------------- ---------------------------------
Carrying value
At 31 December 2022 - -
At 31 December 2021 - -
On 27 April 2020, the Group acquired a 33.33% interest in SundaGas
(Timor-Leste Sahul) Pte. Ltd, incorporated in Singapore at a
gross cost of GBP195,000. In accordance with IAS28, the Group
accounted for its investment in this company using the equity
method.
During the preceding period, the Company increased its stake
in SundaGas (Timor-Leste Sahul) Limited ("TLS") from 33.33%
to 100%. In accordance with IFRS3, this is treated as an effective
disposal of the interest in the associated undertaking requiring
a remeasurement of its cost to fair value. This resulted in
a gain on disposal of GBP302,000 in 2021.
12. Investments
Shares Shares
Loans to in in
group group associated
undertaking undertaking undertaking Total
GBP'000 GBP'000 GBP'000 GBP'000
Company
Cost
At 1 January 2021 775 5,444 195 6,414
Exchange rate
adjustment 19 - - 19
Additions - 2,104 93 2,197
Net loan movements 1,030 - - 1,030
Disposals - - (288) (288)
At 1 January 2022 1,824 7,548 - 9,372
Exchange rate
adjustment 205 - - 205
Net loan movements 1,811 - - 1,811
--------------------- ---------------------- ----------------------- ----------------------- -------------------
At 31 December 2022 3,840 7,548 - 11,388
--------------------- ---------------------- ----------------------- ----------------------- -------------------
Impairment
At 1 January 2021 775 5,444 - 6,219
Chargefor the year 124 - - 124
--------------------- ---------------------- ----------------------- ----------------------- -------------------
At 1 January 2022 899 5,444 - 6,343
Charge for the year 43 - - 43
At 31 December 2022 942 5,444 - 6,386
--------------------- ---------------------- ----------------------- ----------------------- -------------------
Carrying value
At 31 December 2022 2,898 2,104 - 5,002
At 31 December 2021 925 2,104 - 3,029
The Company elected to recognise the investment in associate
in respect of SundaGas (Timor-Leste Sahul) Pte. Ltd. under the
cost model.
The Company makes loans to its subsidiary operations as part
of its longer term strategy of undertaking exploration activities.
Whilst the loans are made on informal terms, the board considers
that such loans form part of the Company's net investment in
its subsidiaries and therefore are presented within investments
and treated as non-current. No interest is charged on intercompany
loans.
The Company has made provision on the investment in Gold Oil
Peru S.A.C. of GBP6,386,000 (2021: GBP6,343,000).
The Company's subsidiary undertakings at the
year end were as follows:
Place of Proportion Proportion
incorporation of ownership of voting Nature
Subsidiary and operation interest power held of business
% %
---------------- -------------- ------------ -------------
SundaGas (Timor-Leste Exploration
Sahul) Pte. Ltd. of oil
8 Chang Charn Road Singapore 100 100 and gas
#02-01
Link (Thim) Building
Singapore 159637
SundaGas Banda Unipessoal,
Lda * Exploration
Timor Plaza Pisso 3. of oil
#337 Timor-Leste 100 100 and gas
Av. President Nicolau
Lobato
20 de Setembro, Bebonuk,
Dom Aleixo
Dili, Timor-Leste
Gold Oil Peru S.A.C Exploration
Jr. General Julian Arias of oil
Araguez 250 Peru 100 100 and gas
Miraflores, Lima-18, Peru
All shareholdings are in ordinary,
voting shares.
* A direct subsidiary of SundaGas (Timor-Leste Sahul)
Pte. Ltd.
13. Trade and
other
receivables 2022 2021
------------------------------------------------------------------ ------------------------------------------------------------------
Group Company Group Company
GBP'000 GBP'000 GBP'000 GBP'000
Trade
receivables - - - -
Other
receivables 24 24 12 12
Prepayments
and accrued
income 77 37 42 34
101 61 54 46
------------- --------------------------------- ------------------------------- --------------------------------- -------------------------------
14. Bank guarantee bond 2022 2021
----------------------------- ----------------------------
Group Company Group Company
GBP'000 GBP'000 GBP'000 GBP'000
Bank guarantee bond at 31
December 2022 827 - 859 -
-------------------------------- -------- ------------------- -------- ------------------
The Company's wholly-owned subsidiary, SundaGas Banda Unipessoal,
Lda ("Banda"), has provided a performance guarantee to Autoridade
Nacional do Petróleo e Minerais ("ANPM") in respect of
the offshore Timor-Leste TL-SO-19-16 Production Sharing Contract
("PSC"). This performance guarantee is secured by a bank guarantee
given by United Overseas Bank Limited of Singapore ("UOB")
backed by a cash deposit of US$1 million. This arrangement
was originally put in place in November 2019 at the outset
of the PSC, was extended in November 2022, and now expires
on 1 August 2023. It is anticipated that the bank guarantee
will be released following the conclusion of the current phase
of the PSC which is currently 18 June 2023 as the Directors
consider that all work commitments to the end of the current
phase will have been met.
The original bond was set up by SundaGas Pte. Ltd ("SGPL"),
the former owners of Banda, and has remained in their name
beyond the acquisition of Banda by the Company, so as not to
disrupt the contractual position of the PSC. As a result, the
bond will be initially released to SGPL which is contractually
bound by the Relationship Agreement that exists between the
parties to account for the funds released to Banda.
As the bond represents a financial asset with contractual cash
flows, the Directors have had regard to the credit risk associated
with the recovery of the asset. In taking account of the Group's
close working relationship with both ANPM and SGPL along with
the Group's history of dealings with them, the Directors consider
that any credit risk associated with the bond asset is immaterial
and therefore no provision for credit loss has been made.
Restated
15. Cash and cash equivalents 2022 2021
----------------------------- ----------------------------
Group Company Group Company
GBP'000 GBP'000 GBP'000 GBP'000
Bank current accounts 837 655 238 120
Bank deposit accounts 4,970 4,970 1,412 1,407
5,807 5,625 1,650 1,527
------------------------------- -------- ------------------- -------- ------------------
Bank deposit accounts comprise cash held by the Group and short-term
bank deposits with an original maturity of three months or
less and earn interest at respective short-term deposit rates.
The carrying amount of these assets approximates to their fair
value.
16. Trade and other
payables 2022 2021
---------------------------------------- ----------------------------------------
Group Company Group Company
GBP'000 GBP'000 GBP'000 GBP'000
Trade payables 67 66 19 18
Other payables - - 495 -
Accruals 274 109 96 48
Lease finance liabilities
due within 12 months 36 10 10 10
Taxation 14 14 12 12
391 199 632 88
--------------------------- ------------------- ------------------- ---------------- ----------------------
Non-current liabilities
Lease finance liabilities
due after 12 months 30 9 19 19
---------------------------- ------------------- ------------------- ---------------- ----------------------
17. Lease finance
Lease liabilities are presented in the statement
of nancial position as follows:
2022 2021
--------------------------- ------------------------- ------------------
Group Company Group Company
GBP'000 GBP'000 GBP'000 GBP'000
Current 36 10 10 10
Non-current 30 9 19 19
66 19 29 29
--------------------------- ------------ ----------- -------- --------
18. Share capital 2022 2021
-------------------------------------------------------- --------- ---------
GBP'000 GBP'000
Allotted, called up and fully
paid
Equity:18,920,260,428 (2021: 11,583,612,461)
ordinary shares of GBP0.00025 each 4,730 2,896
4,730 2,896
----------------------------------------------------- --------- ---------
The Company issued the following new shares for cash during the
year.
(i) 2,750,000,000 new ordinary shares of GBP0.00025 each at GBP0.0006
per share on 9 May 2022.
(ii) 117,125,001 new ordinary shares of GBP0.00025 each at GBP0.0010
per share on 4 November 2022.
(iii) 4,469,522,966 new ordinary shares of GBP0.00025 each at
GBP0.0012 per share on 29 November 2022.
Ordinary shares entitle the holder to full rights as to voting,
dividends and any distribution upon winding up.
19. Share premium and reserves Foreign
Share Share exchange Profit
premium Option translation and loss
account reserve reserve account
GBP'000 GBP'000 GBP'000 GBP'000
Group
-------------------------------------- -------------------- -------- -------------------- ---------------------
At beginning of the year 34,061 388 1,561 (34,224)
Loss for the year attributable
to controlling interests - - - (1,387)
Issue of new shares 5,296 - - -
Share issue costs (511) - - -
Share option reserve released - (56) - 56
Foreign exchange translation
adjustments - - 174 -
38,846 332 1,735 (35,555)
-------------------------------------- -------------------- -------- -------------------- ---------------------
Company
-------------------------------------- -------------------- -------- -------------------- ---------------------
At beginning of the year 34,061 388 (163) (32,586)
Loss for the year - - - (555)
Issue of new shares 5,296 - - -
Share issue costs (511) - - -
Share option reserve released - (56) - 56
38,846 332 (163) (33,085)
-------------------------------------- -------------------- -------- -------------------- ---------------------
Details of options and warrants issued, exercised and lapsed during the year
together with options and warrants outstanding at 31 December 2022 are as
follows:
Lapsed
1 January New or 31 December
Exercise 2022 Issue Exercised cancelled 2022
Final
Issue exercise
date date price Number Number Number Number Number
---------- ---------- ------------ ----------------- ---------------------- ------------------- ------------------ ----------------------
6 August 6 August
2019 2022 GBP0.00080 27,500,000 - - (27,500,000) -
26 March 26 March
2020 2023 GBP0.00100 117,125,001 - (117,125,001) - -
26 May 26 May
2020 2030 GBP0.00100 290,000,000 - - (165,000,000) 125,000,000
10 10
November November
2020 2030 GBP0.00100 75,000,000 - - (75,000,000) -
22 July 22 July
2021 2031 GBP0.00070 440,000,000 - - - 440,000,000
31
22 July December
2021 2025 * GBP0.00070 150,000,000 - - - 150,000,000
17 17
December December
2021 2031 GBP0.00060 530,000,000 - - - 530,000,000
14 July 14 July
2022 2025 GBP0.00070 - 175,000,000 - - 175,000,000
1,629,625,001 175,000,000 (117,125,001) (267,500,000) 1,420,000,000
---------------------------------- ----------------- ---------------------- ------------------- ------------------ ----------------------
* These options have been granted to two external contractors who have been
engaged by SundaGas (Timor-Leste Sahul) Pte. Ltd. The final exercise dates
of these options were extended during the year from 22 July 2024 to 31 December
2025.
Details of options and warrants issued, exercised and lapsed during the year
together with options and warrants outstanding at 31 December 2021 are as
follows:
1 January New 31 December
Exercise 2021 Issue Exercised Lapsed 2021
Final
Issue exercise
date date price Number Number Number Number Number
---------- ---------- ------------ ----------------- ---------------------- ------------------- ------------------ ----------------------
27 27
November November
2018 2021 GBP0.00435 20,000,000 - - (20,000,000) -
3 3
December December
2018 2021 GBP0.00440 10,000,000 - - (10,000,000) -
6 August 6 August
2019 2022 GBP0.00080 27,500,000 - - - 27,500,000
26 March 26 March
2020 2023 GBP0.00100 117,125,001 - - - 117,125,001
26 May 26 May
2020 2030 GBP0.00100 290,000,000 - - - 290,000,000
10 10
November November
2020 2030 GBP0.00100 75,000,000 - - - 75,000,000
22 July 22 July
2021 2031 GBP0.00070 - 440,000,000 - - 440,000,000
22 July 22 July
2021 2024 GBP0.00070 - 150,000,000 - - 150,000,000
17 17
December December
2021 2031 GBP0.00060 - 530,000,000 - - 530,000,000
539,625,001 1,120,000,000 - (30,000,000) 1,629,625,001
---------------------------------- ----------------- ---------------------- ------------------- ------------------ ----------------------
The number of share options which were exercisable at year end was
1,245,000,000 (2021: 1,099,625,001). The weighted average remaining
life of share options at the year end was 7 years (2021: 8 years).
The weighted average exercise price (in pence) applying to share
options during the year was as follows:
2022 2021
Opening 0.08p 0.12p
Exercised 0.10p -
Lapsed 0.08p 0.44p
Cancelled 0.10p -
Issued 0.07p 0.07p
Closing 0.07p 0.08p
20. Share based
payments
Th e fai r value s o f th e option s and warrants
grante d hav e bee n calculate d usin g Black--Schole
s mode l assumin g th e input s show n below :
14 July 17 December 22 July 22 July 26 May
Grant date 2022 2021 2021 2021 2020
Number of options or
warrants granted 175,000,000 530,000,000 150,000,000 440,000,000 290,000,000
Share price at grant
date 0.07p 0.06p 0.07p 0.07p 0.05p
Exercise price at
grant date 0.07p 0.06p 0.07p 0.07p 0.1p
Option life 3 years 10 years 3 years 10 years 10 years
Risk free rate 0.86% 0.86% 0.86% 0.86% 0.86%
Expected volatility 80% 80% 80% 80% 80%
Expected dividend
yield 0% 0% 0% 0% 0%
Fair value of option 0.017p 0.025p 0.02p 0.03p 0.02p
During the year, as announced on 14 July 2022, the Company awarded
175,000,000 share options to a director of both SundaGas (Timor-Leste
Sahul) Pte. Ltd and SundaGas Banda Unipessoal Lda, the latter being
the operator of the 'Chuditch' Timor-Leste TL-SO-19-16 PSC. The share
options are exercisable at 0.07p, expire three years from grant date
and will only vest upon Baron Oil making an announcement that the
first appraisal well on the Chuditch PSC has spudded, or in certain
limited circumstances such as a takeover event. SundaGas (Timor-Leste
Sahul) Pte. Ltd and SundaGas Banda Unipessoal Lda are wholly owned
subsidiaries of Baron Oil Plc.
Given that vesting is contingent on the spudding of a well at the
Chuditch project and that the occurrence of this event is dependent,
inter alia, on events outside the control of the director, the Board
considered that the current degree of certainty over vesting was such
that no share-based payment charges were recorded in respect of these
options during 2022. A detailed summary of the current status and
future plans for the Chuditch project are given in the Chairman's
Statement & Operations Report.
Volatility was determined by reference to the Company's
historical share price volatility over a suitable period. During
the year, and as announced on 12 January 2022, 240,000,000 share
options were cancelled.
21. Directors'
emoluments
2022 2021
-------------------------------------------- --------------------------- --------------------------
GBP'000 GBP'000
Directors' remuneration 390 349
Compensation for
loss of office - 53
Share based payments - 256
390 658
-------------------------------------------- --------------------------- --------------------------
Highest paid director emoluments and other
benefits are as listed below.
2022 2021
-------------------------------------------- --------------------------- --------------------------
GBP'000 GBP'000
Remuneration 214 216
Post termination
benefits 17 -
Share based payments - 145
231 361
-------------------------------------------- --------------------------- --------------------------
Total remuneration in respect of key management personnel amounted
to GBP432,000 (2021: GBP698,000).
22. Financial instruments
The Group's activities expose it to a variety of financial
risks: credit risk, cash flow interest rate risk, foreign currency
risk, liquidity risk, price risk and capital risk. The Group's
activities also expose it to non-financial risks: market risk. The
Group's overall risk management programme focuses on
unpredictability and seeks to minimise the potential adverse
effects on the Group's financial performance. The Board, on a
regular basis, reviews key risks and, where appropriate, actions
are taken to mitigate the key risks identified.
Financial instruments - Risk Management
The Group is exposed through its operations to the following
risks:
Ø Credit risk
Ø Cash flow interest rate risk
Ø Foreign Exchange Risk
Ø Liquidity risk
Ø Price risk
Ø Capital risk
Ø Market risk
In common with all other businesses, the Group is exposed to
risks that arise from its use of financial instruments. This note
describes the Group's objectives, policies and processes for
managing those risks and the methods used to measure them. Further
quantitative information in respect of these risks is presented
throughout these financial statements.
There have been no substantive changes in the Group's exposure
to financial instrument risks, its objectives, policies and
processes for managing those risks or the methods used to measure
them from previous periods unless otherwise stated in this
note.
Principal financial instruments
The principal financial instruments used by the Group, from
which financial instrument risk arises are as follows:
Ø Loans and receivables
Ø Trade and other receivables
Ø Cash and cash equivalents
Ø Trade and other payables
General objectives, policies and processes
The Board has overall responsibility for the determination of
the Group's risk management objectives and policies and, whilst
retaining responsibility for them, it has delegated the authority
for designing and operating processes that ensure the effective
implementation of the objectives and policies to the Group's
finance function. The Board receives regular updates from the
Executive Directors through which it reviews the effectiveness of
the processes put in place and the appropriateness of the
objectives and policies it sets. The overall objective of the Board
is to set policies that seek to reduce risk as far as possible
without unduly affecting the Group's competitiveness and
flexibility. Further details regarding these policies are set out
below:
Credit risk
The Group's principal financial assets are bank balances and
cash, and other receivables. The credit risk on liquid funds is
limited because the counterparties are banks with high credit
ratings assigned by international credit-rating agencies. The
amounts presented in the statement of financial position are net of
allowance for doubtful receivables. An allowance for impairment is
made where there is an identified loss event which, based on
previous experiences, is evidence of a reduction in the
recoverability of the cash flows.
As at 31 December 2022 and 2021 there were no trade
receivables.
Cash flow interest rate risk
The Group is exposed to cash flow interest rate risk from its
deposits of cash and cash equivalents with banks.
The cash balances maintained by the Group are proactively
managed in order to ensure that the maximum level of interest is
received for the available funds but without affecting the working
capital flexibility the Group requires.
The Group is not at present exposed to cash flow interest rate
risk on borrowings as it has no significant debt. No subsidiary
company of the Group is permitted to enter into any borrowing
facility or lease agreement without the prior consent of the
Company.
Interest rates on financial assets
The Group's financial assets consist of cash and cash
equivalents, loans, trade and other receivables. The interest rate
profile at period end of these assets was as follows:
31 December 2022 Financial
assets Financial
on which assets on
interest which interest
earned not earned Total
GBP'000 GBP'000 GBP'000
UK sterling 4,802 397 5,199
US dollar (USD) 168 1,287 1,455
Singapore Dollar
(SGD) - 4 4
--------------------- ---------- ---------------- --------
Peruvian Nuevo Sol
(PEN) - - -
-------------------- ---------- ---------------- --------
4,970 1,688 6,658
-------------------- ---------- ---------------- --------
31 December 2021 Financial
assets Financial
on which assets on
interest which interest
earned not earned Total
GBP'000 GBP'000 GBP'000
UK sterling 780 123 903
US dollar (USD) 1,486 174 1,660
Peruvian Nuevo Sol
(PEN) - - -
-------------------- ---------- ----------------
2,266 297 2,563
-------------------- ---------- ---------------- --------
The Group earned interest on its interest bearing financial
assets at rates between 1.5% and 4% (2021 0.3% and 1%) during the
period.
A change in interest rates on the statement of financial
position date would increase/(decrease) the equity and the
anticipated annual income or loss by the theoretical amounts
presented below. The analysis is made on the assumption that the
rest of the variables remain constant. The analysis with respect to
31 December 2021 was prepared under the same assumptions.
Change of 1.0% in the interest rate
as of
--------------------------------------------------
31 December 2022 31 December 2021
------------------------ ------------------------
Increase Decrease Increase Decrease
of 1.0% of 1.0% of 1.0% of 1.0%
----------- ----------- ----------- -----------
Instruments bearing
variable interest
(GBP'000) 50 (50) 10 (10)
----------- ----------- ----------- -----------
It is considered that there have been no significant changes in
cash flow interest rate risk at the reporting date compared to the
previous period end and that therefore this risk has had no
material impact on earnings or shareholders' equity.
Foreign exchange risk
Foreign exchange risk arises because the Group has operations
located in various parts of the world whose functional currency is
not the same as the functional currency in which other Group
companies are operating. Although its geographical spread reduces
the Group's operation risk, the Group's net assets arising from
such overseas operations are exposed to currency risk resulting in
gains and losses on retranslation into Sterling. Only in
exceptional circumstances will the Group consider hedging its net
investments in overseas operations, as generally it does not
consider that the reduction in foreign currency exposure warrants
the cash flow risk created from such hedging techniques. It is the
Group's policy to ensure that individual Group entities enter into
local transactions in their functional currency wherever possible
and that only surplus funds over and above working capital
requirements should be transferred to the parent company treasury.
The Group considers this policy minimises any unnecessary foreign
exchange exposure.
In order to monitor the continuing effectiveness of this policy
the Board, through its approval of both corporate and capital
expenditure budgets and review of the currency profile of cash
balances and management accounts, considers the effectiveness of
the policy on an ongoing basis.
The following table discloses the major exchange rates of those
currencies utilised by the Group:
USD SGD PEN
Average for year ended 31
December 2022 1.24 1.71 4.73
At 31 December 2022 1.21 1.62 4.55
Average for year ended 31
December 2021 1.37 1.84 5.27
At 31 December 2021 1.35 1.82 5.35
A change in exchange rates on the statement of financial
position date would increase/(decrease) the equity and net asset
position by the theoretical amounts presented below. The analysis
is made on the assumption that the rest of the variables remain
constant. The analysis with respect to 31 December 2021 was
prepared under the same assumptions.
Change of 10.0% in the GBP/USD rate
as of
------------------------------------------------------
31 December 2022 31 December 2021
-------------------------- --------------------------
Increase Decrease Increase Decrease
of 10.0% of 10.0% of 10.0% of 10.0%
------------ ------------ ------------ ------------
Net assets (GBP'000) (279) 340 (148) 393
------------ ------------ ------------ ------------
It is considered that there have been no significant changes in
exchange rate risk at the reporting date compared to the previous
period end and that therefore this risk has had no material impact
on earnings or shareholders' equity.
Liquidity risk
Liquidity risk arises from the Group's management of working
capital and the finance charges and principal repayments on its
debt instruments. It is the risk that the Group will encounter
difficulty in meeting its financial obligations as they fall
due.
The Group's policy is to ensure that it will always have
sufficient cash to allow it to meet its liabilities when they
become due. To achieve this aim, it seeks to maintain readily
available cash balances (or agreed facilities) to meet expected
requirements for a period of at least 60 days. The Group currently
has no long term borrowings.
Price risk
Potential oil and gas sales revenue is subject to energy market
price risk.
Given that the Company currently does not have production , it
is not considered appropriate for the Group to enter into any
hedging activities or trade in any financial instruments, such as
derivatives. This strategy will continue to be subject to regular
review.
It is considered that price risk of the Group at the reporting
date has not increased compared to the previous period end.
Volatility of oil and gas prices
A material part of the Group's revenue will be derived from the
sale of oil and gas that it expects to produce. A future
substantial or extended decline in prices for oil and gas and
refined products could adversely affect the Group's future
revenues, cash flows, profitability and ability to finance its
planned capital expenditure. The movement of crude oil and natural
gas prices is shown below:
31 December Average 31 December
2022 price 2021
2022
Crude oil - WTI
Per barrel - US$ $81 $92 $75
Per barrel - GBP GBP67 GBP74 GBP56
Natural gas LNG Japan/Korea
Marker (Platts)
Per Million Btu -
US$ $19 $32 $25
Per Million Btu - GBP15 GBP26 GBP18
GBP
Oil and gas prices are dependent on a number of factors
impacting world supply and demand. Due to these factors, prices may
be subject to significant fluctuations from year to year. However,
these prices had no effect on the Group's results for 2022, since
it had no production.
Capital risk
The Group's objectives when managing capital are to safeguard
the ability to continue as a going concern in order to provide
returns for shareholders and benefits to other stakeholders and to
maintain an optimal capital structure to reduce the cost of
capital.
23. Capital commitments
As of 31 December 2022, there were no capital commitments (2021:
none).
24. Contingent Liabilities
The Company considers that there are no potential
decommissioning costs in respect of abandoned fields.
25. Events after the reporting period
On 20 February 2023, the Company issued 62,500,000 new ordinary
shares of 0.025p each following the exercise of options by a former
director, raising new capital of GBP62,000 gross, GBP50,000 net of
costs.
26. Ultimate controlling party
Baron Oil Plc is listed on the AIM market operated by the London
Stock Exchange. At the date of the Annual Report in the Directors'
opinion there is no controlling party.
27. Related party transactions
Company
During the year, the Company advanced loans to its subsidiaries.
The details of the transactions and the amount owed by the
subsidiaries at the year end were.
Year ended 31 December Year ended 31 December
2022 2021
--------------------------------- -------------------------------------------------
Balance Loan advance Balance Loan advance
GBP'000 GBP'000 GBP'000 GBP'000
SundaGas (Timor-Leste Sahul)
Pty. Ltd 2898 1,972 926 926
Gold Oil Peru S.A.C
* 941 42 899 124
* The Company has provided for an impairment of GBP941,000
(2021: GBP899,000) on the outstanding loans.
Group and company
SundaGas (Timor-Leste Sahul) Pty. Ltd ("TLS"), a wholly-owned
subsidiary paid fees amounting to US$285,000 (2021: US$369,000)
to SundaGas Pte. Ltd, a company in which Dr. Andrew Butler,
a director of TLS, held a significant interest.
The Directors' aggregate remuneration and any associated bene
ts in respect of qualifying services are disclosed in note
21.
During the year, key management personnel subscribed for new
ordinary shares of GBP0.00025 each in the Company as part
of placings and subscriptions of new ordinary shares as follows.
Announced 29
April 2022, at Announced 16 November
a price of 0.06p 2022, at a price
per share of 0.12p per share
Andrew Yeo 16,150,000 shares 8,000,000 shares
Dr Andrew Butler
* - 50,000,000 shares
During the year, key management personnel were awarded options
to subscribe to new ordinary shares of GBP0.00025 each in
the Company as follows.
Exercise Final exercise
Number price date
Dr Andrew Butler 14 July
* 175,000,000 0.07p 2025
* Director of SundaGas (Timor-Leste Sahul) Pty. Ltd.
On 25 November 2022, the Company assumed 100% of the collateral
for a US$1 million amount (the "Deposit") in relation to the
performance bank guarantee arrangements connected to the Chuditch
PSC (the "Guarantee"), by providing approximately US$667,000
to SundaGas Pte. Ltd ("SGPL") to replace the two thirds contribution
(approximately US$667,000) previously made by SGPL, which
was the other indirect shareholder in SundaGas Banda Unipessoal
Lda. until 18 June 2021. The relationship agreement between
SGPL, its principals and Baron as originally announced on
18 June 2021 (the "Relationship Agreement") was also varied
so that Baron is entitled to all the benefit of and rights
to the return of the Deposit should it be released or when
the Guarantee expires in due course on 1 August 2023. The
changes to the provision of the funds for the Deposit and
the variations to the Relationship Agreement were deemed to
be related party transactions pursuant to the AIM Rules for
Companies.
In June 2021, the Company agreed to acquire the remaining
15% of SundaGas Timor-Leste (Sahul) Pte. Ltd. ("TLS") which
the Company did not own in exchange for the issuance of 1,157,202,885
new ordinary shares in the Company to SundaGas Pte. Ltd ("SGPL")
(the "Share Exchange"). TLS is the parent company of the Timor-Leste
subsidiary SundaGas Banda Unipessoal Lda. ("Banda"), which
is the Operator of and 75% interest holder in the offshore
Timor-Leste TL-SO-19-16 PSC (the "Chuditch PSC"). SGPL is
the parent company of SundaGas Resources Pte. Ltd. ("SGR"),
which was the holder of the 15% interest in TLS acquired by
Baron pursuant to the Share Exchange.
Through the Share Exchange, the Company became the sole shareholder
of TLS, which provided a 75% effective interest in the Chuditch
PSC. The Company's responsibility to carry SGR's share of
nancial contributions until the end of the PSC's Firm Commitment
Period in November 2022 was extinguished following completion
of the Share Exchange. Under the terms of an Amended Services
Agreement between SGPL and TLS (which was extended to the
end of December 2022), SGPL will continue to be paid fees
for management and administrative services.
As SGPL through its subsidiary SGR held more than 10% of TLS's
ordinary shares immediately before the Share Exchange, the
Share Exchange was deemed to be a related party transaction
pursuant to rule 13 of the AIM Rules for Companies.
28. Restatement of comparative figures
The Directors have reviewed the presentation of the performance
bonds deposited with banks as part of the Group's exploration
activities and have concluded that such deposits should not be
considered as cash equivalents. Therefore the comparative period
has been restated to represent this reallocation. Further details
of the terms of the performance bonds held are given in Note
15.
In addition, the Board have reviewed the allocation of certain
non-cash items within the cash flow statement have restated the
comparative consolidated cash flow statement accordingly.
The comparative figures in the Statement of Other Comprehensive
Income have also been restated so that movements in the share-based
payment reserve following share option exercises or lapses are
presented as an adjustment between reserves within equity and not
within Other Comprehensive Income.
None of the restatements impact on the Earnings Per Share as
reported in 2021.
Glossary
BSCF Billion standard cubic feet of natural gas.
Geological chance of success or Geological Probability of The estimated probability that exploration activities will
Success confirm the existence of a significant
accumulation of potentially recoverable petroleum.
Contingent Resources Those quantities of petroleum estimated, as of a given
date, to be potentially recoverable
from known accumulations by application of development
projects, but which are not currently
considered to be commercially recoverable owing to one or
more contingencies.
GIIP Volume of natural gas initially in-place in a reservoir.
High or 3U Estimate Denotes the high estimate qualifying as Prospective
Resources. Reflects a volume estimate
that there is a 10% probability that the quantities
actually recovered will equal or exceed
the estimate.
Licence Operator or Administrator The Company nominated to carry out operational
activities. In the context of the UK jurisdiction,
during the initial Phase A of a licence the nominated
Company is termed a licence administrator.
MMBBL Million barrels of oil or condensate.
MMBOE, Oil equivalent Million barrels of oil equivalent. Volume derived by
dividing the estimate of the volume of
natural gas in billion cubic feet by six in order to
convert it to an equivalent in million
barrels of oil or condensate, and, where relevant,
adding this to an estimate of the volume
of oil in millions of barrels.
Prospective Resources Quantities of petroleum that are estimated to exist
originally in naturally occurring reservoirs,
as of a given date. Crude oil in-place, natural gas
in-place, and natural bitumen in-place
are defined in the same manner.
SPE PRMS 2018 The Society of Petroleum Engineers' ("SPE") Petroleum
Resources Management System ("PRMS")
is a system developed for consistent and reliable
definition, classification, and estimation
of hydrocarbon resources prepared by the Oil and Gas
Reserves Committee of SPE and approved
by the SPE Board in June 2018 following input from six
sponsoring societies: the World Petroleum
Council, the American Association of Petroleum Geologists,
the Society of Petroleum Evaluation
Engineers, the Society of Exploration Geophysicists, the
European Association of Geoscientists
and Engineers, and the Society of Petrophysicists and Well
Log Analysts.
SPE PRMS Unrisked Prospective Denotes the unrisked estimate qualifying as SPE PRMS
Resources 2018 Prospective Resources.
Mean Reflects an unrisked median or best-case volume estimate
of resource derived using probabilistic
methodology. This is the mean of the probability
distribution for the resource estimates and
is often not the same as 2U as the distribution can be
skewed by high resource numbers with
relatively low probabilities.
PSC Production Sharing Contract.
PSDM Pre-Stack Depth Migration version of processed seismic
data.
TCF Trillion standard cubic feet of natural gas
TGS-NOPEC TGS-NOPEC Geophysical Company.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
FR NKBBKFBKDBPB
(END) Dow Jones Newswires
May 23, 2023 02:00 ET (06:00 GMT)
Baron Oil (LSE:BOIL)
Gráfica de Acción Histórica
De Abr 2024 a May 2024
Baron Oil (LSE:BOIL)
Gráfica de Acción Histórica
De May 2023 a May 2024