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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Falkland O&G | LSE:FOGL | London | Ordinary Share | FK00B030JM18 | ORD 0.002P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 8.50 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From Apr 2019 to Apr 2024
TIDMFOGL
RNS Number : 9417W
Falkland Oil and Gas Limited
25 August 2015
25 August 2015
Falkland Oil and Gas Limited
("FOGL" or "the Company")
Interim Results for the six months ended 30 June 2015
Falkland Oil and Gas Limited (AIM:FOGL), the oil and gas exploration company focused on its extensive licence areas to the North, South and East of the Falkland islands, announces its Interim Results for the six months ended 30 June 2015.
Highlights
-- Two oil discoveries in the North Falkland basin:
Zebedee well oil and gas discovery announced on 5 April 2015
- Discovered 27.5 metres of net oil-bearing reservoir and 17.5 metres of net gas-bearing reservoir
- Reservoir better developed than anticipated
-- Isobel Deep oil discovery announced on 28 May 2015
- Drilled to a depth of 2,527 metres reaching top reservoir on prognosis
- Bottom 24 metres of the well consisted of oil bearing F3 sands
- Has opened up a new play in the previously unexplored southern part of PL004
-- Financial Position
- Cash Balance of $40.1 million at period end
-- Outlook - 2015 high impact drilling campaign continues
- Operations are ongoing at the Humpback exploration well in the South Falklands Basin. Results are now expected in September 2015.
- Alternate drilling options under consideration for next North Falklands Basin well
-- Board changes
- John Martin appointed as Non-Executive Chairman in June 2015
- Non-Executive Chairman, Richard Liddell and Non -Executive directors Stephen Phipps and Ian Duncan retired.
John Martin, Chairman of FOGL, said:
"The first six months of 2015 was a highly successful period which saw significant exploration success for the Company and I am delighted to have joined the Board as Non-Executive Chairman at this exciting time.
"In the North Falkland Basin, FOGL has announced two material oil and gas discoveries. The Zebedee well was an excellent result and one that adds to the proven hydrocarbon resources of the licence and confirms the extension of the Sea Lion discovery and associated reservoirs into PL004b. The Isobel Deep oil discovery opens a new play area with upside potential.
"Drilling on the Humpback prospect in the South Falkland basin is currently on-going and we look forward to receiving and sharing the results of this well following completion of the drilling operations."
"With two successes under our belt already and two more wells to complete, the Board looks to the future with confidence".
- Ends-
Enquiries:
Falkland Oil and Gas Limited Tim Bushell, Chief Executive +44 (0) 20 7563 1260 RBC Capital Markets (Nominated Advisor and Joint Broker) Matthew Coakes / Daniel Conti +44 (0) 20 7653 4000 Numis Securities Limited (Joint Broker) John Prior / Ben Stoop / Paul Gillam +44 (0) 20 7260 1000 FTI Consulting Ed Westropp / George Parker +44 (0) 20 3727 1000
Chairman's Report
The first half of 2015 was marked by a very successful start to our 2015 drilling campaign with two material oil and gas discoveries.
Zebedee oil and gas discovery
On 2 April 2015, FOGL announced the results of the 14/15b-5 Zebedee well. The well discovered 27.5 metres of net oil-bearing reservoir and 17.5 metres of net gas-bearing reservoir. The well penetrated multiple targets in the Cretaceous F2 and F3 formations with a total net hydrocarbon pay of 45 metres. The reservoir in both the Hector and Zebedee intervals was of good quality and the results better than FOGL's pre-drill expectations. Oil was also encountered in a 5 metre sand (2.5 metres of net oil pay), lying below Hector which may be a southern extension of the Beverley sand encountered in the 14/15b-4 well.
Formation pressure measurements taken over the Zebedee interval plot on the same oil gradient as that observed in the Sea Lion field. As such, FOGL considers it very likely that the Zebedee reservoir is in pressure communication with, and has the same oil-water contact as, the Sea Lion field.
The Hector sand, which has not been drilled previously, has been proven to have very good reservoir properties. In addition to the gas discovered in Hector, the flank of the Hector reservoir may well have potential for additional oil resources.
FOGL is currently evaluating the Zebedee results in detail and their impact on potential hydrocarbon resources within PL004b. An independent third party assessment has been commissioned, the results of which will be published in Q4 2015.
Isobel Deep oil discovery
On 28 May 2015, FOGL announced an oil discovery at the Isobel Deep exploration well 14/20-1 in the North Falkland Basin, approximately 30km south of the Sea Lion field. The Isobel Deep exploration well was drilled to a depth of 2,527 metres reaching top reservoir on prognosis. The bottom 24 metres of the well consisted of oil bearing F3 sands. These sands were at a higher than expected reservoir pressure and this resulted in an influx into the well.
Whilst it was not possible to acquire wireline logs over the Isobel Deep reservoir, the presence of oil bearing sands is very positive. FOGL believes these initial results open up a new oil play in this part of PL004 and also significantly reduce the risk on FOGL's other prospects in the adjacent PL005 licence. Further drilling options on Isobel/Elaine are currently being evaluated.
The PL004a licence operator (Premier Oil) currently estimate un-risked Pmean resources for the Isobel/Elaine fan complex of 400 mmbbls. This is in line with FOGL's own resource estimate for the Isobel/Elaine fan complex. FOGL has a 40% interest in this licence and the Isobel Deep discovery.
Humpback Drilling ongoing
The Humpback well spudded on 13 June 2015 on licence PL012, testing multiple stacked reservoirs within the Cretaceous Diomedea fan complex. A series of unforeseen equipment and operational issues has resulted in a delay to the completion of the well. These delays are expected to extend the duration of the well from 65 days to approximately 100 days. FOGL anticipates that the results of the well should be available in September 2015 and a further update will be provided once target depth has been reached and wireline logs have been run.
FOGL anticipates that a proportion of the additional costs of this delay will be borne by Noble Energy under a commercial arrangement that is currently being negotiated and the details of which will be announced when finalised.
Forward programme
Following the completion of the Humpback well the Eirik Raude will return to the North Falklands basin. Consideration is currently being given to further drilling at Isobel Deep and this may replace the planned Jayne East well. Any further drilling in the South Falkland basin, as part of the current programme, will be dependent on the Humpback results.
Financials
The loss before tax for the six months was $1.95 million (2014: $1.3 million), with interest earned in the period of $0.1 million (2014: $0.7 million). Foreign exchange gains of $0.1 million (2014: gains of $0.2 million) were incurred, principally resulting from Sterling bank balances held for costs incurred in the UK.
At 30 June 2015 the Company had cash and bank balances of $40.1 million which is sufficient to fund the current proposals approved by the licence holders. FOGL is carried on the Jayne East well by Premier and Rockhopper. The Noble Farm-out agreement, covering the South and East Falkland Basin, provides a partial carry on Humpback.
Outlook
Despite current commodity prices, FOGL has a strong track record, excellent assets with significant upside potential and is well-positioned for growth. As such, the Board of FOGL views the future with optimism.
Falkland Oil and Gas Limited
Consolidated Condensed Statement of Comprehensive Income
For the six months ended 30 June 2015
Hot Features
Premium
6 months 6 months Year ended
ended 30 ended 30 31 December
June 2015 June 2014 2014
(Unaudited) (Unaudited) (Audited)
Note $000 $000 $000
Administrative expenses (1,608) (1,590) (3,319)
Share based payment charges (548) (598) (1,085)
Loss from operations (2,156) (2,188) (4,404)
Finance income 98 703 1,093
Foreign exchange gains 103 190 79
------------------------------------- ------------ ------------ -------------
Net finance income 201 893 1,172
(Loss) before tax (1,955) (1,295) (3,232)
Taxation - - -
(Loss) for the period/ year (1,955) (1,295) (3,232)
============================== ===== ============ ============ =============
(Loss) per share (US cents)
Basic and diluted 2 (0.37c) (0.24c) (0.61c)
------------------------------ ----- ------------ ------------ -------------
All amounts included above relate to continuing operations.
Falkland Oil and Gas Limited
Consolidated Condensed Statement of Financial Position
(MORE TO FOLLOW) Dow Jones Newswires
August 25, 2015 02:00 ET (06:00 GMT)
At 30 June 2015
At 30 June At 30 June At 31 December
2015 2014 2014
(unaudited) (unaudited) (audited)
Note $000 $000 $000
Assets
Non-current assets
Intangible assets 3 298,917 228,973 240,293
Inventory 6,508 4,597 8,576
Property, plant and equipment 5,679 8,481 12,340
311,104 242,051 261,209
--------------------------------- ----- ------------- ------------- ---------------
Current assets
Trade and other receivables 3,466 2,824 646
Cash and cash equivalents 4 40,092 68,656 35,462
Cash on deposit 4 - 40,000 60,000
43,558 111,480 96,108
--------------------------------- ----- ------------- ------------- ---------------
Total assets 354,662 353,531 357,317
--------------------------------- ----- ------------- ------------- ---------------
Liabilities
Current liabilities
Trade and other payables (6,288) (2,300) (7,536)
Net current assets 37,270 109,180 88,572
--------------------------------- ----- ------------- ------------- ---------------
Net assets 348,374 351,231 349,781
================================= ===== ============= ============= ===============
Capital and reserves
Called up share capital 18 18 18
Share premium account 369,632 369,632 369,632
Retained deficit (21,276) (18,419) (19,869)
Total Equity 348,374 351,231 349,781
================================= ===== ============= ============= ===============
Falkland Oil and Gas Limited
Consolidated Condensed Statement of Cash Flows
For the six months ended 30 June 2015
Year ended
6 months ended 6 months ended 31 December
30 June 2015 30 June 2014 2014
(unaudited) (unaudited) audited
$000 $000 $000
Operating activities
Loss on operating activities (1,955) (1,295) (3,232)
Total finance income (98) (703) (1,093)
Foreign exchange (gains)/losses (103) (190) -
Depreciation and amortisation 63 44 98
Share based payment charges 548 598 1,085
Net cash flow from operations (1,545) (1,546) (3,142)
(Increase)/Decrease / in trade and
other receivables (2,820) 81 3,310
(Decrease) / Increase in trade and
other payables (1,248) (18,428) (6,735)
Net cash provided (used in) operating
activities (5,617) (19,893) (6,567)
--------------------------------------------- --------------- --------------- -------------
Investing activities
Exploration & evaluation expenditure (49,626) (22,435) (39,586)
Inventory - (1,094) (5,073)
Purchase of property, plant
and equipment (139) (358) (5,811)
Cash on deposit 60,000 40,000 20,000
Interest received 98 703 980
Net cash provided /(used in) investing
activities 10,333 16,816 (29,490)
--------------------------------------------- --------------- --------------- -------------
Financing activities
Issue of ordinary shares - - -
Costs related to issue of ordinary
shares - - -
Net cash used in financing activities - - -
--------------------------------------- ---- --------------- --------------- -------------
Net Increase/(decrease) in cash and
cash equivalents 4,716 (3,077) (36,057)
Cash and cash equivalents at the start
of the period/ year 35,462 71,409 71,409
Effect of foreign exchange rates (86) 324 110
Cash and cash equivalents at the end
of the period/ year 40,092 68,656 35,462
============================================= =============== =============== =============
Falkland Oil and Gas Limited
Consolidated Condensed Statement of Changes in Equity
For the six months ended 30 June 2015
Retained
Share capital Share premium deficit Total equity
$000 $000 $000 $000
Balance at 1 January 2014 18 369,632 (17,722) 351,928
Total comprehensive loss
for the period - - (1,295) (1,295)
Share based payment charges - - 598 598
Balance at 30 June 2014
(unaudited) 18 369,632 (18,419) 351,231
Total comprehensive loss
for the period - - (1,937) (1,937)
Share based payment charges - - 487 487
Balance at 31 December 2014
(audited) 18 369,632 (19,869) 349,781
Total comprehensive loss
for the period - - (1,955) (1,955)
Share based payment charges - - 548 548
Balance at 30 June 2015
(unaudited) 18 369,632 (21,276) 348,374
============================= ============== ============== ========= =============
Falkland Oil and Gas Limited
Notes forming part of the Interim Results
For the six months ended 30 June 2015
1. Accounting policies
The consolidated condensed unaudited interim financial information set out in this report is based on the financial statements of Falkland Oil and Gas Limited ("FOGL"). The condensed financial information should be read in conjunction with the annual financial statements for the year ended 31 December 2014, which were prepared in accordance with International Financial Reporting Standards as adopted by the European Union. The financial statements of the group for the 6 months ended 30 June 2015 were approved and authorised for issue by the Board on 26 August 2015. These financial statements have been prepared in accordance with the accounting policies that are expected to be applied in the Report and Accounts of the group for the year ending 31 December 2015 and are consistent with International Financial Reporting Standards adopted for use in the European Union.
The Directors are in the process of assessing the impact of the new standards, amendments to existing standards and interpretations in order to determine their impact on the Group. Based on the Directors assessment so far, the effect of the changes is considered likely to affect disclosure only.
Basis of preparation
The financial information for the six months ended 30 June 2015 and 30 June 2014 is unreviewed and unaudited and does not constitute the group's statutory financial statements for those periods. The comparative financial information for the full year ended 31 December 2014 has been derived from the statutory financial statements for that period. The statutory accounts for the year ended 31 December 2014 have been filed with the Registrar of Companies. The auditors' report on those accounts was unqualified.
The financial statements are presented in United States Dollars and all values are rounded to the nearest thousand dollars ($'000) except when otherwise indicated.
The Group has certain contractual agreements with other participants to engage in joint activities that do not create an entity carrying on a trade or business of its own. The Company includes its share of assets, liabilities and cash flows in joint arrangements, measured in accordance with the terms of each arrangement.
Falkland Oil and Gas Limited
Notes forming part of the Interim Results (continued)
For the six months ended 30 June 2015
2. Loss per share
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August 25, 2015 02:00 ET (06:00 GMT)
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