TIDMECHO
RNS Number : 2316O
Echo Energy PLC
29 September 2023
Certain of the information contained within this announcement is
deemed by the Company to constitute inside information as
stipulated under The Market Abuse Regulation (EU 596/2014) pursuant
to the Market Abuse (Amendment) (EU Exit) Regulations 2018. Upon
the publication of this announcement via a Regulatory Information
Service ("RIS"), this inside information is now considered to be in
the public domain.
29 September 2023
Echo Energy plc
("Echo Energy", "Echo" or the "Company")
Interim Results 2023
Echo Energy PLC is pleased to announce its Interim Results for
the period ended 30 June 2023.
Chairman's and Chief Executive Officer's Statement
In the 2022 Annual Report, released at the same time as this
2023 Interim Report, the following statement was made.
"Echo Energy, similar to many companies in the oil and gas
sector, faced exceptional challenges during recent years, with the
global pandemic impacting all aspects of the Company's operations
and finances in Argentina. The Company emerged from the COVID-19
period (during which the assets were sub economic) with a large
creditor position, 100%+ per annum inflation in Argentina and
Argentine currency exchange controls, which have prevented funds
being withdrawn from the country without significant penalties. As
a result of these factors, the raising of additional equity for an
Argentine business was challenging and the Company took the
decision in November 2022 to partially sell its Santa Cruz Sur
portfolio.
This partial sale enabled to the Company to:
-- Address its near-term funding challenges by providing
near-term cash, enabling the Company to transfer to buyers the
significant in-country creditors which had built up during the
COVID-19 period and providing access to funding for the Santa Cruz
assets.
-- Benefit from continued exposure (both directly through the
retained 5% working interest, the contingent payments, the further
5% option and the indirect holding in the Operator) to a
well-funded Santa Cruz portfolio, with the concessions likely to be
extended as a result of the provision of guarantee.
The Company, now with significantly reduced creditors and a
heavily reduced cost base, sits with a 5% interest in a producing
Santa Cruz Sur portfolio and an equity position in the operator
InterOil Exploration and Production ASA. In addition to the
divestment, the Company successfully completed a restructuring of
its legacy debt position, converting the majority of previously
outstanding debt into equity, substantially improving the balance
sheet and providing the additional flexibility to best manage the
financial requirements going forward. The Board see significant
opportunities at this point in the economic cycle to secure new
energy assets at attractive valuations and is currently exploring a
number of these opportunities. "
In addition, the directors draw attention to the Accounting
Policy notes regarding Going Concern, Estimates and the previous
audit.
James Parsons Martin Hull
Chairman Chief Executive
Officer
For further information, please contact:
Echo Energy C avendish Securities
Martin Hull, Chief Executive Officer (Nominated Adviser)
via Vigo Consulting Adrian Hadden
Ben Jeynes
+44 (0) 20 7397 8900
Vigo Consulting (PR Advisor) Zeus plc (Corporate Broker)
Patrick d'Ancona Simon Johnson
Finlay Thomson + 44 (0) 203 829 5000
Kendall Hill
+44 (0) 20 7390 0230
Financial Statements
Consolidated Statement of Comprehensive Income
Period ended 30 June 2023
Unaudited Unaudited Audited
1 January 2023 1 January 20222 Year to
to 30 June to 30 June 2022 31 December
Notes 2023 US $ 2022
US $ US $
----------------------------------- -------- ---------------- ----------------- --------------
Continuing operations
Revenue 3 - 6,230,288 86
Cost of sales 4 - (7,256,796) -
----------------------------------- -------- ---------------- ----------------- --------------
Gross (loss)/profit - (1,026,508) 86
Exploration expenses - (143,545) -
Administrative expenses (857,722) (1,125,073) (2,951,806)
Operating loss (857,722) (2,295,126) (2,951,720)
Financial income 5 175,311 2,161,898 1,618,844
Financial expense 6 (77,263) (1,834,643) (2,981,409)
Loss before tax (759,654) (1,967,871) (4,314,285)
Taxation 8 - 62,477
----------------------------------- -------- ---------------- ----------------- --------------
Loss from continuing operations (759,654) (1,967,871) (4,382,427)
Loss after taxation for
the year from discontinued
operations 10 (5,818,517) - (5,204,409)
Gain on sale of discontinued 17,115,930 - -
operations
Profit/(loss) for the
period 10,537,759 (1,967,871) (9,586,836)
Other comprehensive income:
Exchange difference on - 26,834 -
translating foreign operations
----------------------------------- -------- ---------------- ----------------- --------------
Total comprehensive profit/(loss)
for the period 10,537,759 (1,941,036) (9,586,836)
----------------------------------- -------- ---------------- ----------------- --------------
Profit/(loss) attributable
to: Owners of the parent 10,537,759 (1,941,036) (9,586,836)
----------------------------------- -------- ---------------- ----------------- --------------
Total comprehensive profit/(loss)
attributable to: Owners
of the parent 10,537,759 (1,941,036) (9,586,836)
----------------------------------- -------- ---------------- ----------------- --------------
Profit/(loss) per share
(cents) 9
Basic 0.19 (0.14) (0.50)
----------------------------------- -------- ---------------- ----------------- --------------
Diluted 0.19 (0.14) (0.50)
----------------------------------- -------- ---------------- ----------------- --------------
Profit/(loss) per share
(cents) for continuing
operations
Basic 0.19 (0.14) (0.27)
----------------------------------- -------- ---------------- ----------------- --------------
Diluted 0.19 (0.14) (0.27)
----------------------------------- -------- ---------------- ----------------- --------------
The notes form an integral part of these financial
statements.
Consolidated Statement of Financial Position
Period ended 30 June 2023
Unaudited Unaudited Audited
1 January 1 January Year to
2023 2022 31 December
Notes to 30 June to 30 June 2022
2023 2022 US $
US $ US $
--------------------------------- -------- -------------- -------------------------- --------------
Non-current assets
Property, plant and equipment 11 2,299 2,668,770 2,299
Other intangibles 12 - 6,662,805 -
Available-for-sale financial
assets 13 555,562 - -
557,861 9,331,575 2,299
Current Assets
Inventories - 1,415,225 -
Other receivables 349,590 3,566,742 769,551
Cash and cash equivalents 14 994,504 1,314,969 1,132,616
--------------------------------- -------- -------------- -------------------------- --------------
1,344,094 6,296,936 1,902,166
Assets of group held for
resale 10 - 18,739,291
--------------------------------- -------- -------------- -------------------------- --------------
Total assets 1,901,955 15,648,511 20,643,756
--------------------------------- -------- -------------- -------------------------- --------------
Current Liabilities
Trade and other payables (1,661,557) (19,511,235) (1,329,991)
(1,661,557) (19,511,235) (16,023,500)
Liabilities of disposal
group held for resale - - (29,620,264)
--------------------------------- -------- -------------- -------------------------- --------------
Non-current liabilities
Loans due in over one year 17 (5,341,036) (28,031,316) (5,463,301)
Provisions - (3,039,911) -
--------------------------------- -------- -------------- -------------------------- --------------
Total Liabilities (7,002,593) (50,582,462) (36,413,556)
--------------------------------- -------- -------------- -------------------------- --------------
Net Liabilities (5,100,638) (34,953,951) (15,769,800)
--------------------------------- -------- -------------- -------------------------- --------------
Equity attributable to
equity holders of the parent
Share capital 15 19,893,385 7,686,151 19,795,863
Shares not issued - - 97,523
Share premium 16 83,790,504 64,884,556 83,790,504
Capital contribution reserve 7,212,492 - 7,212,492
Warrant reserve 260,201 12,589,970 1,433,428
Share option reserve 644,560 1,522,499 644,560
Foreign currency translation
reserve (3,481,041) (3,504,752) (3,481,041)
Retained earnings (113,420,740) (118,132,375) (125,263,129)
--------------------------------- -------- -------------- -------------------------- --------------
Total Equity (5,100,638) (34,953,951) (15,769,800)
--------------------------------- -------- -------------- -------------------------- --------------
The notes form an integral part of these financial
statements.
Consolidated Statement of Changes in Equity
Period ended 30 June 2023
Foreign
Capital Share currency
Retained Share Shares Share contribution Warrant option translation
earnings capital to be premium reserve reserve reserve reserve Total
US $ US $ issued US $ US$ US $ US $ US $ equity
US$ US $
---------------------- ---------------- ------------- --------- ----------- -------------- ------------ ---------- ------------ -------------
1 January 2023 (125,263,129) 19,795,863 97,523 83,790,504 7,212,492 1,433,428 644,560 (3,481,041) (15,769,800)
Loss for the period (759,654) - - - - - - - (759,654)
Discontinued
operations (5,818,517) - - - - - - - (5,818,517)
Profit on sale of
discontinued
business 17,115,930 - - - - - - - 17,115,930
Total comprehensive
loss for the period 10,048,159 - - - - - - - 10,048,159
Warrants lapsed 1,071,987 - - - - (1,071,987) - - -
Warrants exercised 101,239 - - - - (101,239) - - -
Share issue 97,523 (97,523) - - - - - -
30 June 2023 (113,420,740) 19,893,385 - 83,790,504 7,212,492 260,201 644,560 (3,481,041) (5,100,638)
1 January 2022 (116,164,504) 7,209,086 64,977,243 -- 12,177,786 1,522,499 (3,531,587) (33,809,477)
Loss for the period (1,967,871) - - - - - - - (1,967,871)
Exchange Reserve - - - - - - - 26,835 26,835
---------------------- ---------------- ------------- --------- ----------- -------------- ------------ ---------- ------------ -------------
Total comprehensive
loss for the period (1,967,871) - - - - - - 26,835 (1,941,036)
Warrants issued - 433,696 - 400,735 - - - - 834,431
Share issue - - - (412,184) - 412,184 - - -
Transaction costs - 43,369 (81,238) -- - - - (37,869)
30 June 2022 (118,132,375) 7,686,152 - 64,884,556 - 12,589,970 1,522,499 (3,504,752) (34,953,951)
---------------------- ---------------- ------------- --------- ----------- -------------- ------------ ---------- ------------ -------------
Consolidated Statement of Changes in Equity (continued)
Period ended 30 June 2023
Foreign
Capital Share currency
Retained Share Shares Share contribution Warrant option translation
earnings capital to be premium reserve reserve reserve reserve Total
US $ US $ issued US $ US$ US $ US $ US $ equity
US$ US $
--------------- -------------- ----------- -------- ----------- -------------- ------------- ------------ ------------ -------------
1 January 2022 (116,164,504) 7,209,086 - 64,977,243 12,177,786 1,522,499 (3,531,587) (33,809,477)
Loss for the
period (4,382,425) - - - - - - (4,382,425)
Discontinued
operations (5,204,409) - - - - (5,204,409)
Exchange
Reserve - - - - - - 50,546 50,546
--------------- -------------- ----------- -------- ----------- -------------- ------------- ------------ ------------ -------------
Total
comprehensive
loss for the
period (9,586,834) - - - - - - 50,546 (9,536,288)
New shares
issued - 12,586,777 - 7,521,415 - - - - 20,108,192
Capital
contribution
on debt - -
restructuring - - - -- 7,212,492 -- - 7,212,492
Cash received
for shares
not issued - - 97,523 - - - - - 97,523
Warrants
lapsed - - - 11,291,846 (11,291,846) - - -
Share options
lapsed 1,035,696 - - - - - (1,035,696) - -
Share based
payments - - - - 157,757 - 157,757
--------------- -------------- ----------- -------- ----------- -------------- ------------- ------------ ------------ -------------
31 December
2022 (125,263,129) 19,795,863 97,523 83,790,504 7,212,492 1,433,428 644,560 (3,481,041) (15,769,800)
--------------- -------------- ----------- -------- ----------- -------------- ------------- ------------ ------------ -------------
The notes form an integral part of these financial
statements.
Consolidated Statement of Cash Flows
Period ended 30 June 2023
Unaudited Unaudited
1 January 1 January Year to
2023 2022 31 December
to 30 June to 30 June 2022
2023 2022 US $
US $ US $
--------------------------------------- ------------ --------------- --------------
Cash flows from operating activities
Profit/(loss) from continuing
operations (759,654) (1,967,871) (4,382,425)
Loss from discontinued operations (5,204,409)
(759,654) (1,967,871) (9,586,834)
Adjustments for:
Depreciation and depletion of
property, plant and equipment - 8,449 16,537
Depreciation and depletion of
intangible assets - 503,706 1,419,193
Impairment of intangible assets
and goodwill - - 506.818
Share-based payments - - 157,757
Sale of interest in joint venture (555,562) - -
for non-cash consideration
Financial income - (2,161,898) -
Financial expense 77,263 1,834,643 2,980,994
Exchange difference (141,286) (171,072) (1,582,441)
(1,379,239) 13,828 3,498,858
Increase)/decrease in inventory - (50,000) 863,196
Decrease in other receivables 259,128 657,790 978,758
Increase in trade and other payables (150,932) 1,371,642 2,150,092
--------------------------------------- ------------ --------------- --------------
108,196 1,979,432 3,992,046
Net cash used in operating activities (1,271,043) 25,389 (2,095,912)
Cash flows from investing activities
Purchase of intangible assets - (34,604) (61,233)
Purchase of property, plant and
equipment - (2,813) (217,578)
Sale of interests in joint venture 1,133,172
--------------------------------------- ------------ --------------- --------------
Net cash used in investing activities 1,133,172 (37,417) (278,811)
Cash flows from financing activities
Interest received - 26 -
Bank fees and other finance cost - (42,276) -
Issue of share capital - 834,430 2,714,574
Share issue costs - (37,867) -
Net cash from financing activities - 754,313 2,714,574
--------------------------------------- ------------ --------------- --------------
Net (decrease)/increase in cash
and cash equivalents (137,871) 742,286 339,853
Cash and cash equivalents at
the beginning of the period 1,132,375 742,339 742,339
--------------------------------------- ------------ --------------- --------------
Foreign exchange gains/(losses)
on cash and cash equivalents - (169,655) 50,447
--------------------------------------- ------------ --------------- --------------
Cash and cash equivalents at
the end of the period 994,504 1,314,969 1,132,375
--------------------------------------- ------------ --------------- --------------
The notes form an integral part of these financial
statements.
Notes to the Financial Statements
Period ended 30 June 2023
1. Accounting Policies
General Information
These financial statements are for Echo Energy plc ("the
Company") and subsidiary undertakings ("the Group"). The Company is
registered, and domiciled, in England and Wales and incorporated
under the Companies Act 2006.
Basis of Preparation
The condensed and consolidated interim financial statements for
the period from 1 January 2023 to 30 June 2023 and have been
prepared in accordance with International Accounting Standards
("IAS") 34 Interim Financial Reporting, and on the going concern
basis. They are in accordance with the accounting policies set out
in the statutory accounts for the year ended 31 December 2022 and
are expected to be applied for the year ending 31 December
2023.
The comparatives shown are for the period 1 January 2022 to 30
June 2022, and for the year ended 31 December 2022, and do not
constitute statutory accounts, as defined in section 435 of the
Companies Act 2006, but are based on the statutory financial
statements for the year ended 31 December 2022.
A copy of the Company's statutory accounts for the year ended 31
December 2022 is being delivered to the Registrar of Companies; the
accounts will very soon be available to download from the Company
website at www.echoenergyplc.com .
Going Concern
The financial information has been prepared assuming the Group
will continue as a going concern. Under the going concern
assumption, an entity is ordinarily viewed as continuing in
business for the foreseeable future with neither the intention nor
the necessity of liquidation, ceasing trading or seeking protection
from creditors pursuant to laws or regulations.
The consolidated statement of financial position at 31 December
2022 showed a negative net asset position. Moreover, after
persistent difficulties, the board made the difficult decision in
late 2022 to divest of its operating assets in Argentina. This
decision came to fruition in June 2023 when, apart from a small 5%
retention holding, Echo Energy sold its interest in the SCS assets
to its joint venture partner and obtained a full, 100%, indemnity
against any future costs arising from those SCS operations.
The cash received from that sale was sufficient to partly, but
not fully, pay down backlog creditors. Further, the delay in
publishing the December 2022 Annual Report gave rise to an
automatic suspension of the trading in the company's shares on AIM,
preventing any equity fund raising until the Annual Report is
published and the suspension lifted.
Nevertheless, the directors have held positive discussions with
potential financial intermediaries with a view to raise additional
funding and also are in advanced negotiations to acquire a number
of assets including outside South America to replace the SCS
assets.
Going Concern
Consequently, the directors consider the going concern
assumption continues to be appropriate although there remain
material uncertainties as to;
1. Successfully raising sufficient funds.
2. Finding an appropriate investment within a suitable timescale
3. That investment being sufficiently cash-positive to fund the Group going forwards.
Estimates
The preparation of the interim financial information requires
management to make judgements, estimates and assumptions that
affect the application of accounting policies and the reported
amounts of assets and liabilities, income and expense. Actual
results may differ from these estimates.
In preparing this condensed interim financial information, the
significant judgements made by management in applying the Group's
accounting policies and the key sources of estimation uncertainty
were the same as those applied to consolidated financial statements
for the year ended 31 December 2022. The key sources of uncertainty
in estimates that have a significant risk of causing material
adjustment to the carrying amounts of assets and liabilities,
within the next financial year, are the Group's going concern
assessment.
Previous Audit
For reasons set out therein, the auditors did not express an
opinion in their report on the accounts for the year ended 31
December 2022.
In addition to the December 2022 balance sheet forming the
starting point for these accounts to 30 June 2023, similar
difficulties have manifested themselves in obtaining information
relating to the operations in Argentina for the preparation of the
interim accounts to June 2023. As a result certain figures
contained herein are necessarily based on estimates
Accordingly, the directors have taken a prudent view in
evaluating certain figures, including but not limited to the assets
and liabilities retained in Argentina, particularly trade debtors
and tax assets and liabilities, following the completion of the
sale of the majority of its interests there.
Revenue Recognition
Revenue comprises the invoice value of goods and services
supplied by the Group, net of value added taxes and trade
discounts. Revenue is recognised in the case of oil and gas sales
when goods are delivered and title has passed to the customer. This
generally occurs when the product is physically transferred into a
pipeline or vessel. Echo recognised revenue in accordance with IFRS
15. We have a contractual arrangement with our joint venture
partner who markets gas and crude oil on our behalf. Gas is
transferred via a metred pipeline into the regional gas
transportation system, which is part of the national transportation
system, control of the gas is transferred at the point at which the
gas enters this network, this is the point at which gas revenue is
recognised. Gas prices vary from month to month based on seasonal
demand from customer segments and production in the market as a
whole. Our partner agrees pricing with their portfolio of gas
clients based on agreed pricing mechanisms in multiple contracts.
Some pricing is regulated by government such as domestic supply.
Echo receive a monthly average of gas prices attained. Oil
shipments are priced in advance of a cargo and revenue is
recognised at the point at which cargoes are loaded onto a shipping
vessel at terminal.
2. Business Segments
The Group has adopted IFRS 8 Operating Segments. Per IFRS 8,
operating segments are regularly reviewed and used by the board of
directors being the chief operating decision maker for strategic
decision-making and resources allocation, in order to allocate
resources to the segment and assess its performance.
At the balance sheet date, there is only one business segment,
being the company, its activity disclosed in within continuing
operations.
Activity in Argentina, being the Santa Cruz Sur operations, are
set out within discontinued operations within note 10.
Activity within the group's Bolivian subsidiary is
immaterial.
3. R evenue
Unaudited Unaudited Audited
1 January 1 January Year to
2023 2022 31 December
to 30 June to 30 June 2022
2023 2022 US $
US $ US $
Oil revenue - 2,514,419 -
Gas revenue - 3,715,668 -
Other income - 201 86
Total Revenue - 6,230,288 86
--------------- ------------- ------------ -------------
Revenue for December 2022 and 2023 all derives from discontinued
operations held for resale and is shown in Note 10. At June 2022,
those operations had not been discontinued.
4. Cost of Sales
Unaudited Unaudited Audited
1 January 1 January Year to
2023 2022 31 December
to 30 June to 30 June 2022
2023 2022 US $
US $ US $
Production costs - 5,870,851 -
Selling and distribution - 928,235 -
costs
Movement in stock of crude - (50,000) -
oil
Depletion - 507,710 -
Total Costs - 7,256,796 -
--------------------------- ------------ ------------ -------------
Revenue for December 2022 and 2023 all derives from discontinued
operations held for resale and is shown in Note 10. At June 2022,
those operations had not been discontinued.
5. Finance Income
Unaudited Unaudited Audited
1 January 1 January Year to
2023 2022 31 December
to 30 June to 30 June 2022
2023 2022 US $
US $ US $
---------------------------- ------------ ------------ -------------
Interest income - 340 622
Net foreign exchange gains 175,331 2,161,558 1,618,222
Total 175,331 2,161,898 1,618,884
---------------------------- ------------ ------------ -------------
6. Financial Expense
Unaudited Unaudited Audited
period to period to Year to
30 June 30 June 2022 31 December
2023 US$ 2022
US $ US $
------------------------------------ ----------- -------------- -------------
Interest payable - 227 415
Net foreign exchange losses - 432,660 -
Unwinding of discount on
long term loan 77,263 1,272,735 2,598,746
Amortisation of loan fees - 86,745 234,101
Bank fees and overseas transaction - 42,276 -
taxes
------------------------------------ ----------- -------------- -------------
Total 77,263 1,834,643 8,993,432
------------------------------------ ----------- -------------- -------------
7. Taxation
The Group has tax losses available to be carried forward in
certain subsidiaries and the parent company. Due to uncertainty
around timing of the Group's projects, management have not
considered it appropriate to anticipate an asset value for them. No
tax charge has arisen during the six-month period to 30 June 2023,
or in the six-month period to June 2022, or the year to 31 December
2022.
8. Loss Per Share
The calculation of basic and diluted loss per share at 30 June
2023 was based on the loss attributable to ordinary shareholders.
The weighted average number of ordinary shares outstanding during
the period ended 30 June 2023 and the effect of the potentially
dilutive ordinary shares to be issued are shown below.
Period to Period to Year to
30 June 30 June 31 December
2023 2022 2022
----------------------------------- -------------- -------------- --------------
Net profit/(loss) for the year
(US $) 10,537,759 (1,967,871) (9,586,834)
----------------------------------- -------------- -------------- --------------
Basic weighted average ordinary
shares in issue during the
period 5,527,427,674 1,440,666,214 1,909,205,746
----------------------------------- -------------- -------------- --------------
Diluted weighted average ordinary
shares in issue during the
period 5,527,427,674 1,440,666,214 1,909,205,746
----------------------------------- -------------- -------------- --------------
Loss per share (cents)
Basic 0.19 (0.14) (0.27)
----------------------------------- -------------- -------------- --------------
Diluted 0.19 (0.14) (0.27)
----------------------------------- -------------- -------------- --------------
9. Discontinued Operations
In November 2022 the company committed to selling virtually all
of its interest in the Santa Cruz oil and gas operations in
Argentina to its joint-venture partner Interoil. A term of the sale
was for Echo to relinquish any management and accounting in respect
of the joint venture, instead receiving a profit share in
proportion to the remaining 5% holding in the joint venture,
effectively as investment income.
The sale was completed on 26 June 2023, satisfied by GBP825,000
in cash, shares to the value of GBP400,000 in Interoil and
GBP150,000 investment in Echo Energy PLC shares by Interoil. At 31
December 2022 the Argentinian operations were classified as a
disposal group held for sale and as discontinued operations.
The results of the Argentinian operations for the period are
presented below
Period to Period to Year to
30 June 2023 30 June 2022 31 December
US $ US$ 2022
US $
----------------------------------- -------------- -------------- --------------
Oil and gas revenue 3,632,389 - 14,114,331
----------------------------------- -------------- -------------- --------------
Cost of sales -
Production costs (7,912,008) - (16,933,985)
Depletion - - (1,419,193)
----------------------------------- -------------- -------------- --------------
Total cost of sales (7,912,008) - (18,353,178)
----------------------------------- -------------- -------------- --------------
Gross loss - (15,147,779)
Exploration expenses - - (287,919)
Impairment of plant and equipment - - (506,818)
Administrative expenses (490,245) - (578,011)
Operating loss from discontinued
activities (4,769,864) - (5,611,595)
Finance revenue - -
Finance expense `(4,157,561) - (788,847)
Foreign exchange gain 3,413,143 - 1,208,083
----------------------------------- -------------- -------------- --------------
Loss for the period before
taxation from discontinued
operations (5,818,517) - (5,192,359)
Deferred tax asset write-off - - (12,050)
----------------------------------- -------------- -------------- --------------
Loss for the period after
taxation from discontinued
operations (5,818,517) - (5,204,409)
----------------------------------- -------------- -------------- --------------
The major classes of assets and liabilities of the Argentinian
operations classified as held for sale as at 31 December 2022 were
as follows
As at
31 December
2022
US $
------------------------------- -------------
Property, plant and equipment 2,658,382
Intangible assets 5,267,129
Inventories 716,794
Joint venture receivables 9,729,937
Other receivables 279,012
Prepayments 87,916
Cash 121
--------------------------------- -------------
Assets of disposal group
held for sale 18,739,291
--------------------------------- -------------
Liabilities
Trade and other payables (14,095)
Joint venture payables 26,594,448
Provisions 3,039,911
--------------------------------- -------------
Liabilities of disposal group
held for sale 29,620,264
--------------------------------- -------------
Net liabilities (10,880,794)
--------------------------------- -------------
10. Property, Plant and Equipment
PPE - O&G Fixtures
Properties & Fittings Total
US $ US $ US $
------------------ ------------- ------------- ------------
30 JUNE 2023
Cost
1 January 2023 - 98,210 98,210
Additions - - -
Disposals - - -
------------------ ------------- ------------- ------------
30 June 2023 - 98,210 98,210
------------------ ------------- ------------- ------------
Depreciation
1 January 2023 - 95,911 95,911
Charge for the - - -
period
Disposals - - -
------------------ ------------- ------------- ------------
30 June 2023 - 95,911 95,911
------------------ ------------- ------------- ------------
Carrying amount
30 June 2023 - 2,299 2,299
------------------ ------------- ------------- ------------
30 JUNE 2022
Cost
1 January 2022 2,873,147 95,397 2,968,544
Additions - 2,813 2,813
Disposals - - -
------------------ ------------- ------------- ------------
30 June 2022 2,873,147 98,210 2,971,357
------------------ ------------- ------------- ------------
Depreciation
1 January 2022 202,718 91,421 294,139
Charge for the
period 4,004 4,445 8,449
Disposals - - -
------------------ ------------- ------------- ------------
30 June 2022 206,722 95,866 302,588
------------------ ------------- ------------- ------------
Carrying amount
30 June 2021 2,666,425 2,344 2,668,769
------------------ ------------- ------------- ------------
31 DECEMBER
2022
Cost
1 January 2022 2,873,147 95,397 2,968,544
Additions - 2,813 2,813
Reclassification
of assets of
disposal group
held for sale
(note 10) (2,873,147) (1,858) (2,873,147)
------------------ ------------- ------------- ------------
31 December 2022 - 98,210 98,210
------------------ ------------- ------------- ------------
Depreciation
1 January 2021 202,718 91,421 294,139
Charge for the
year 12,047 4,490 16,337
Reclassification
of assets of
disposal group
held for sale
(note 10) (214,765) - (214,765)
------------------ ------------- ------------- ------------
31 December 2022 - 95,911 95,911
------------------ ------------- ------------- ------------
Carrying amount
31 December 2022 - 2,299 2,299
------------------ ------------- ------------- ------------
31 December 2021 2,541,980 3,976 2,674,405
------------------ ------------- ------------- ------------
11. Intangible Assets
Argentina
Exploration & Evaluation
US $
------------------------------ --------------------------
30 June 2023
Cost
1 January 2023 -
Additions -
Disposals -
30 June 2023 -
------------------------------ --------------------------
Impairment
1 January 2023 -
Depletion -
Depreciation decommissioning -
assets
Impairment charge for -
the period
30 June 2023 -
------------------------------ --------------------------
Carrying amount
30 June 2023 -
------------------------------ --------------------------
30 JUNE 2022
Cost
1 January 2022 10,875,022
Additions 34,604
Disposals -
------------------------------ --------------------------
30 June 2022 10,909,626
------------------------------ --------------------------
Impairment
1 January 2022 3,743,115
Depletion 443,706
Depreciation decommissioning
assets 60,000
Impairment charge for -
the period
------------------------------ --------------------------
30 June 2021 4,246,821
------------------------------ --------------------------
Carrying amount
30 June 2022 6,662,805
------------------------------ --------------------------
30 June 2021 7,773,210
------------------------------ --------------------------
31 DECEMBER 2022
Cost
1 January 2022 10,875,022
Additions 61,233
Reclassification of
assets of disposal
group held for sale
(note 10) (10,429,437)
31 December 2022 506,818
------------------------------ --------------------------
Impairment
1 January 2022 3,743,115
Disposals -
Depletion 1,419,193
Impairment charge for
the year 506,818
Reclassification of
assets of disposal
group held for sale
(note 10) (5,162,308)
31 December 2022 506,818
------------------------------ --------------------------
Carrying amount
31 December 2022 -
------------------------------ --------------------------
31 December 2021 7,131,907
------------------------------ --------------------------
12 . AVAILABLE-FOR-SALE FINANCIAL ASSETS.
The company retains a passive 5% minority stake in the joint
venture in Argentina, the valuation being based on the achieved
price on the sale of the majority, discounted to reflect the
minority status. The company intends to hold this investment for
the medium-to-long term.
13 . Cash and Cash Equivalents
Unaudited Unaudited Audited
At 30 June At 30 June 31 December
2023 2022 2022
US $ US $ US $
------------------------------------- ------------ ------------ -------------
Cash held by joint venture partners - 54,604 -
Cash and cash equivalents 994,504 1,260,365 1,132,616
------------------------------------- ------------ ------------ -------------
Total 994,504 1,314,969 1,132,616
------------------------------------- ------------ ------------ -------------
14. Share Capital
Unaudited
At 30 Unaudited Audited
June 2023 At 30 June 31 December
2022 2022
US $ US $ US $
--------------------------------------------- ----------- ------------- --------------
Issued, Called Up and Fully Paid
5,560,618,550.32c (June 2022: 1,452,491,345
0.32c) ordinary shares
1 January 19,795,863 7,209,086 7,209,086
Equity shares issued 97,523 477,065 12,586,777
--------------------------------------------- ----------- ------------- --------------
30 June / 31 December 19,893,385 7,686,151 19,795,863
--------------------------------------------- ----------- ------------- --------------
The holders of 0.32c (0.25p) ordinary shares are entitled to
receive dividends from time to time and are entitled to one vote
per share at meetings of the Company.
During the six-month period to 30 June 2023, 97,523 shares were
issued.
15. Share Premium Account
Unaudited Unaudited Audited
At 30 June At 30 June 31 December
2023 2022 2022
US$ US $ US $
------------------------------------ ------------ ------------ -------------
1 January 83,790,504 64,977,243 64,977,243
Premium arising on issue of equity
shares/warrants - 400,735 7,521,415
Warrants Issued - (412,184) 11,291,846
Transaction costs - (81,238) -
------------ ------------ -------------
30 June 83,790,504 64,884,556 83,790,504
------------------------------------ ------------ ------------ -------------
16. Loans (due over 1 year)
Unaudited
Unaudited At 30 June Audited
At 30 June 2022 31 December
2023 2022
------------------------ ---------------- ----------------- ------------- -------------- --------------
Five-year secured
bonds (4,000,154) (20,909,700) (4,170,086)
Additional net
funding - (5,871,466) (6,059,126)
Other loans (1,340,882) (1,250,150) (1,293,215)
------------------------ ---------------- ----------------- ------------- -------------- --------------
Total (5,341,036) (28,031,316) (5,463,301)
------------------------ ---------------- ----------------- ------------- -------------- --------------
Amortised Repayment
Balance as finance charges of Exchange
at less cash principle adjustments 30 June
31 December interest US $ 2022
2022 paid US$ US$
US $ US $
------------------------ ---------------- ----------------- ------------- -------------- --------------
EUR 20 million five-year
secured bonds 4,170,086 44,188 - (214,120) 4,000,154
Other loans 1,293,215 33,075 - 14,592 1,340,882
Total 5,463,301 77,263 (199,528) 5,341,036
------------------------ ---------------- ----------------- ------------- -------------- --------------
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END
IR LLMITMTITBPJ
(END) Dow Jones Newswires
September 29, 2023 11:50 ET (15:50 GMT)
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