TIDMAEN
RNS Number : 8491N
Andes Energia PLC
21 May 2015
21 May 2015
Andes Energia plc
("Andes" or "the Company")
Final Results for the year ended 31 December 2014
The Board of Andes Energia is pleased to report final results
for the year ended 31 December 2014.
OVERVIEW
Year ended 31 December 2014 2013
----------------------------------- ------ -------
US$m US$m
----------------------------------- ------ -------
Revenue 48.2 22.5
----------------------------------- ------ -------
Operating profit/(loss) **5.5 *(3.9)
----------------------------------- ------ -------
EBITDA **8.8 *(2.4)
----------------------------------- ------ -------
Net operating cash generated from
operations 14.6 3.4
----------------------------------- ------ -------
* Before exceptional items of US$6.2 million
** Before impairment charges of US$3.8 million
HIGHLIGHTS
The 2014 highlights were:
-- Average production rate of 1,700 bpd in 2014 (2013: 916 bpd),
representing a 73% increase over the previous year.
-- A total of 25 development and appraisal wells drilled. 9
wells were converted to injection wells in the Chachahuen block,
which is now producing 709 bpd net to Andes.
-- Las Varillas x-1 well was successfully fracked, tested and
brought in to production from the Vaca Muerta shale formation, in
partnership with YPF.
-- Successful test of the Vaca Muerta formation from the Vega
Grande x-1 well, in a 100% owned and operated block. Currently in
production.
-- Three new blocks containing historical conventional oil
discoveries awarded to Andes by the regulator (ANH) in the Llanos
basin, Colombia.
-- Revenue rose 114% year on year of which 79% results from
production growth and 35% from recognising the results of 2013
acquisitions for the full year.
-- 2014 average selling price of US$73 per barrel.
Post year end highlights:
-- On 20 January 2015 Andes acquired a 51% interest in Interoil
Exploration and Production ASA ("IOX") for a consideration of
US$4.7 million. The acquisition provides Andes with operational
capability in exploration and producing licences in Colombia, which
includes 5.7 million bbls net of 2P reserves and 1,500 boepd net of
production. The acquisition allows Andes to consolidate its
position in Colombia and increase and diversify its production,
reserve base and cash flow.
-- Current daily production: Argentina 1,952 bpd; Colombia 1,500 (IOX); total 3,452 bpd.
-- Current selling price in Argentina is US$77 per barrel and in Colombia US$61 per barrel.
Alejandro Jotayan, CEO said:
"During 2014 we accomplished very demanding objectives,
significantly increasing our revenues resulting in positive and
growing maiden operating profits, as well as continuing to develop
our shale acreage in the Vaca Muerta with two discoveries this
year. In 2015 we expect further growth, and will further develop
our unconventional licences and consolidate our position as the
leading independent public company in the Vaca Muerta."
For further information please contact:
Andes Energia plc Nicolas Mallo Huergo, Chairman T: +54 11 4110
Alejandro Jotayan, CEO 5150
Billy Clegg, Head of Communications
T: +44 20 3757
4983
Macquarie Capital (Europe) Jon Fitzpatrick T: +44 20 3037
Ltd Fergus Marcroft 2000
Nick Stamp
Westhouse Securities Antonio Bossi T: +44 20 7601
David Coaten 6100
GMP Europe LLP Rob Collins T: +44 20 7647
Emily Morris 2800
Camarco Georgia Mann T: +44 20 3757
4986
Note to Editors:
Andes Energia is an oil and gas company focused on onshore South
America with a market capitalisation of circa GBP150m. The Company
has its main operations in Argentina and Colombia.
Annual Report
The Company will shortly be posting to shareholders a copy of
the audited annual report for the year ended 31 December 2014
together with the notice for the Annual General Meeting, to be held
at the offices of Nabarro LLP at Lacon House, 84 Theobald's Road,
London WC1X 8RW at 10.00a.m. on 25 June 2015. The annual report
will be made available on the Group's website at
www.andesenergiaplc.com.ar after it has been posted to
shareholders
STRATEGIC REPORT
OVERVIEW
Andes Energia plc ("Andes" or the "Company" and with its
subsidiaries the "Group") is a Latin American oil and gas group,
with interests in Argentina, Colombia, Brazil and Paraguay.
Year ended 31 December 2014 2013
----------------------------------- ------ -------
US$m US$m
----------------------------------- ------ -------
Revenue 48.2 22.5
----------------------------------- ------ -------
Operating profit / (loss) **5.5 *(3.9)
----------------------------------- ------ -------
EBITDA **8.8 *(2.4)
----------------------------------- ------ -------
Net operating cash generated from
operations 14.6 3.4
----------------------------------- ------ -------
* Before exceptional items of US$6.2 million
** Before impairment charges of US$3.8 million
Our financial results incorporating the results of Andes
together with its subsidiaries for the year ended 31 December 2014
are set out below.
The Group recorded an operating profit of US$5.5 million for the
year before provisions for impairment compared to an operating loss
before exceptional items on continuing operations of US$3.9 million
in 2013.
BUSINESS REVIEW
Andes's portfolio includes:
-- 46 licences
-- 7.5 million net acres of licence area
-- 20 million bbls of 2P net reserves in Argentina
-- 640 million boe of net contingent and prospective resources
-- 2014 average production of approximately 1,700 bpd
Andes is an oil and gas company focused on South America with
interests in Argentina, Colombia, Brazil and Paraguay. The Company
has interests in exploration, development and producing assets. The
Company has 20 million bbls of conventional 2P reserves in
Argentina and certified resources of 640 million boe. The Company's
licences cover 7.5 million acres across South America with 2
million net acres in unconventional plays including 250,000 net
acres in the Vaca Muerta formation, which is the second largest
shale oil deposit in the world and the only producing shale oil
deposit outside of the USA. Over 250 wells have already been
drilled and fracked in the Vaca Muerta formation. The Company
currently produces 1,952 bpd in Argentina from 6 conventional
fields, with positive cash flow generated. Andes, with its partner
YPF, has 30 wells planned over the next 12 months, which will be
funded primarily by cash flow from production.
OPERATIONAL REVIEW
2014 highlights:
-- Average production rate of 1,700 bpd in 2014 (2013: 916 bpd).
-- A total of 25 development and appraisal wells were drilled
and 9 wells were converted to injection wells in the Chachahuen
block, which is now producing 709 bpd net to Andes.
-- Las Varillas x-1 well was successfully fracked and tested in
the Vaca Muerta shale formation.
-- Successful operation on the Vega Grande x-1well, testing the Vaca Muerta formation.
-- Three new blocks with conventional oil discoveries were
awarded to Andes by the regulator (ANH) in the Llanos basin,
Colombia.
-- Revenue increase of 114% year on year of which 79% results
from production growth and 35% from recognising the results of 2013
acquisitions for the full year.
-- 2014 average selling price of US$73 per barrel.
Post year end highlights:
-- On 20 January 2015 Andes acquired a 51% interest in Interoil
Exploration and Production ASA. The acquisition provides Andes with
an interest in exploration and producing licences in Colombia and
5.7 million bbls of 2P reserves. The acquisition allows Andes to
increase and diversify its production and reserve base.
-- Current daily production: Argentina 1,952 bpd; Colombia 1,500 (IOX); total 3,452 bpd.
-- Current selling price in Argentina is US$77 per barrel and Colombia US$61 per barrel.
Andes continued with its stated strategy to expand and diversify
its oil and gas portfolio during 2014 and has been able to increase
its average production in 2013 from 916 bpd to 1,700 bpd in 2014.
Andes has experienced strong performance from its conventional
activities and is well placed to develop its position in the Vaca
Muerta formation.
Argentina
Summary
Current
Type Province Licences 2P reserves Resources Production Net acres
(MMbbls) (MMbbls) (bbls/day)
Conventional production/shale
development Mendoza 6 17.5 368.7 1,952 420,393
Conventional development Mendoza 4 1.6 0.0 0 1,384
Shale oil development Neuquén 2 0.2 171.0 0 39,230
Conventional/unconventional
exploration Rio Negro 1 N/A 32.0 0 124,788
Conventional/unconventional
exploration Chubut 7 N/A 16.7 0 2,771,402
Conventional exploration Salta 3 0.3 50.0 0 2,865,439
Total 23 19.6 638.4 1,952 6,222,636
--------- ------------ ---------- ------------ ----------
Chachahuen block - Mendoza
Licence status
The Argentine Province of Mendoza granted a 25 year right to
develop the "Chachahuen Sur" ("ChuS") oil field located in the
Chachahuen block, to a joint operation between Andes, the state-run
energy company YPF and the local firm Energia Mendocina. This
development block covers an area of 72 km(2) in the south of the
Chachahuen block that borders the energy-rich Neuquén Province. The
remaining area (approximately 3,063 km(2)) is still in the
exploration phase.
Development drilling (ChuS)
The 2014 drilling program focused on developing and delineating
the ChuS field discovery by the well Chus x.-2. The well program
targeted the clastic member, cycle 2 and 3 of the Rayoso formation.
This unit was deposited during the early Cretaceous in a
predominantly continental environment and is composed of a
succession of fine sandstones, red mudstones, and minor evaporates.
A total of 23 development wells were drilled and completed
successfully during the year.
The JV is planning to drill a total of 30 development wells
during 2015.
Exploratory drilling
Two appraisal wells ChuS e-186 and ChuS e-187 were drilled and
completed successfully, which targeted the sandstone of cycle 5 of
Rayoso formation. The wells were placed approximately 2.2 km and
3.6 km respectively southeast of the discovery well ChuS x-44.ChuS
e-186 came on stream in December 2014 at an initial rate of 96
bpd.
Enhanced Oil Recovery -Water Flood project
In order to enhance oil recovery a water flood pressure
maintenance project, a method of secondary recovery, was initiated
to displace residual oil. The project commenced continuous
operation in November 2014 to support the pressure of the
reservoirs and sweep or displace oil from the prolific cycle 2 of
the Rayoso formation.
Nine producing wells were converted to injector wells and a
network of brine injection wells were built as an extension of the
facilities in the neighbouring DBE field. Each water flood pattern
comprises four producing wells surrounding an injection well (an
inverted five spot pattern).
An average rate of 1,800 bpd was injected during the first stage
of the project. In 2015, it is planned to continue with this
secondary recovery program, converting an additional 10 producing
wells into injector wells.
Oil production (ChuS)
At the end of 2014 a total of 59 wells were on stream, producing
approximately 3,545 bpd (Andes has a 20% working interest
equivalent to 709 bpd).
In all of the wells, a progressing cavity pump artificial lift
system was installed, which best suits the conditions of the wells
and has long been proven to be efficient.
Puesto Pozo Cercado and Chañares Herrados blocks - Mendoza
During 2014, three wells were worked over, as a result
production increased by an average of 30 bpd.
El Manzano West - Mendoza
During February 2014, Andes announced the results of the
multi-target unconventional and conventional exploration well, Las
Varillas x-1. The well, the most northerly well to be drilled into
the Vaca Muerta formation, was vertically drilled reaching a total
depth of 7,851 feet (2,393 metres) and encountered 410 feet (125
metres) of gross pay in the unconventional Vaca Muerta formation,
the primary target. The drilling was characterised by the
persistent presence of oil and gas shows through most of the Vaca
Muerta interval. Geochemical data were sampled at two metre
intervals through the entire Vaca Muerta column. Oil was also found
in the mud pits. Two 18 metre core samples from the Vaca Muerta
formation have been recovered and a comprehensive suite of logs has
been run. The analysis of this data was used to design the
completion, fracking and production testing of this well. The Las
Varillas x-1 well was drilled by YPF. Andes was fully carried
during the drilling of this well, as part of the farm-in agreement
with YPF under which Andes has a 100% working interest in all
production from the Agrio formation, which overlays the Vaca Muerta
formation and a 40% carried interest in the Vaca Muerta and other
formations.
Ñirihuau block - Chubut
An additional 500 soil gas samples were collected bringing the
total to 3,000 samples. As part of our commitment work a total of
160 km of 2D seismic is being reprocessed and reinterpreted.
Colombia
In six out of the eight areas where Andes holds interests in
Colombia (VMM-8, LLA-79, LLA-12, LLA-2, LLA-49 and LLA-28), the
country's regulatory authority, ANH, has approved the start of
operational phase 1. This means that Andes can commence the
operations needed to realise the potential of these areas. These
activities will include the recording of new seismic data, the
reprocessing of existing data using new technologies and the
evaluation of existing wells in the area. Data from recent
discoveries in nearby areas will be incorporated into Andes's
regional database to evaluate similar features within Andes's
acreage.
In August 2014, three new blocks with conventional oil
discoveries were awarded to Andes by the regulator (ANH) in the
Llanos basin (YD LLA 2, YD LLA 5 and YD LLA 8).
Brazil and Paraguay
The Board is focused on the development of its Colombia and
Argentina operations and is considering its options with regards to
the development of its interests in Brazil and is still pursuing
analysis and exploration activities in Paraguay.
TRADING PERFORMANCE
Revenue from operations increased from US$22.5 million in 2013
to US$48.2 million in 2014. Average production has increased from
916 bpd in 2013 to 1,700 bpd in 2014. Exploration and development
activities continue and we expect to see the benefit of these
programs in future years. Revenue increase of 114% year on year of
which 79% results from production growth and 35% from recognising
the results of 2013 acquisitions for the full year.
FINANCIAL PERFORMANCE
Revenue has significantly increased to US$48.2 million compared
to US$22.5 million in 2013, an increase of 114% primarily as a
result of production from Chachahuen and CHPPC. The loss before tax
of US$4.1 million (before impairment provisions of US$3.8 million)
compares favourably with the US$6.3 million loss before tax in 2013
(before the exceptional gain of US$6.2 million) particularly given
the investment of US$20 million in exploration and development
activities during the year.
The Group's total assets have decreased from US$319 million in
2013 to US$265 million at the end of the year mainly due to the
devaluation of the Argentine Peso. The devaluation of the Argentine
Peso resulted in US$49 million of exchange losses being recognised
in the comprehensive loss for the year (2013: US$68 million).
Borrowings increased from US$56 million in 2013 to US$58 million
at the end of the year. Net current liabilities increased from US$1
million at the end of 2013 to US$2 million at the end of 2014.
At year end, the Group had cash resources of US$10.6 million
compared to US$8.2 million at the end of 2013, which management
believes together with the free cash flow generated from existing
activities will be sufficient to meet its ongoing working capital
requirements. The directors will not be recommending the payment of
a dividend.
EARNINGS PER SHARE
Basic and diluted loss per share increased from 0.1 cents in
2013 to 2.11 cents in 2014. During the year the number of shares in
issue increased by 37 million to 552 million.
SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE
On 20 January 2015 Andes acquired a 51% interest in Interoil
Exploration and Production ASA for a consideration of US$4.7
million. The acquisition provides Andes with an interest in
exploration and producing licences in Colombia and 5.7 million bbls
of 2P reserves. The acquisition allows Andes to increase and
diversify its production and reserve base.
There were no other significant events after the balance sheet
date.
OUTLOOK
Operationally, 2015 has started well, with group production
increasing to 1,952 bpd in Argentina and 1,500 bpd in Colombia from
Interoil's production, taking production levels to 3,452 bpd.
Selling prices in Argentina have remained at US$77/bbl (with Andes
receiving a slight discount to this based on oil
specification).
Andes, with its partner YPF, has 30 wells planned over the next
12 months, which will be funded primarily by field production cash
flow.
With the General Election in Argentina set for October 2015 and
pro-business candidates leading comfortably in the polls, Andes is
very well placed to benefit from the development of the world class
Vaca Muerta shale, where we have 250,000 net acres, all underpinned
by oil prices of US$77/bbl.
Alejandro Jotayan
Chief Executive Officer
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2014
31-Dec-14 31-Dec-13
US$'000 US$'000
Revenue 48,229 22,456
Production cost (30,630) (14,224)
Gross profit 17,599 8,232
Other operating income/(expense) before exceptional items 996 (1,066)
Exceptional items - 6,211
----------------------------------------------------------- -------------------- ----------
Total other operating income 996 5,145
----------------------------------------------------------- -------------------- ----------
Impairment charge (3,796) -
Distribution costs (3,115) (1,711)
Administrative expenses (9,977) (9,387)
-------------------- ----------
Operating profit 1,707 2,279
Finance income 3,783 6,188
Finance costs (13,397) (8,561)
Loss before taxation (7,907) (94)
Taxation (3,012) (334)
--------------------
Loss for the year from continuing operations (10,919) (428)
-------------------- ----------
Loss per ordinary share from continuing operations Cents Cents
Adjusted basic and diluted loss per share (2.11) (1.58)
Basic and diluted loss per share (2.11) (0.10)
The finance costs are accrued and no interest has been paid
during the year and the Group has the option on a large proportion
of the loans to satisfy the interest in shares.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2014
31-Dec-14 31-Dec-13
US$'000 US$'000
Loss for the year (10,919) (428)
Translation differences (48,760) (68,058)
Total comprehensive loss for the year (59,679) (68,486)
---------- ----------
The above items will not be subsequently reclassified to profit
and loss.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
31 DECEMBER 2014
31-Dec-14 31-Dec-13
US$'000 US$'000
Non-current assets
Intangible assets 165,104 219,831
Property, plant and equipment 61,185 60,812
Available for sale financial assets 1,646 1,634
Trade and other receivables 10,592 10,724
Deferred income tax assets 464 1,490
Total non-current assets 238,991 294,491
--------- ---------
Current assets
Inventories 618 540
Available for sale financial assets 2,644 3,680
Trade and other receivables 12,339 12,151
Restricted cash 5,944 3,561
Cash and cash equivalents 4,700 4,617
Total current assets 26,245 24,549
--------- ---------
Current liabilities
Trade and other payables 20,348 17,436
Financial liabilities 7,870 7,957
Total current liabilities 28,218 25,393
--------- ---------
Non-current liabilities
Trade and other payables 9,326 8,854
Financial liabilities 49,793 48,018
Deferred income tax liabilities 47,614 66,405
Provisions 1,727 454
Total non-current liabilities 108,460 123,731
--------- ---------
Net assets 128,558 169,916
--------- ---------
Capital and reserves
Called up share capital 90,164 84,216
Share premium account 73,248 58,281
Other reserves (69,554) (17,753)
Retained earnings 34,700 45,172
Total equity 128,558 169,916
--------- ---------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2014
Capital and
reserves Share Share Retained Other Total
capital premium earnings reserves
US$'000 US$'000 US$'000 US$'000 US$'000
At 1 January
2013 34,814 1,111 45,192 40,662 121,779
-------------------- -------------------- -------------------- ------------------------ ---------
Loss for the
year - - (428) - (428)
Translation
differences - - - (68,058) (68,058)
Total
comprehensive
loss for the
year - - (428) (68,058) (68,486)
-------------------- -------------------- -------------------- ------------------------ ---------
Issue of
ordinary
shares 49,402 57,170 - - 106,572
Deferred
contingent
consideration
shares - - - 9,355 9,355
Fair value of
share based
payments - - 408 - 408
Issue of
warrants - - - 288 288
At 31 December
2013 84,216 58,281 45,172 (17,753) 169,916
-------------------- -------------------- -------------------- ------------------------ ---------
Loss for the
year - - (10,919) - (10,919)
Translation
differences - - - (48,760) (48,760)
Total
comprehensive
loss for the
year - - (10,919) (48,760) (59,679)
-------------------- -------------------- -------------------- ------------------------ ---------
Issue of
ordinary
shares 5,948 14,967 - - 20,915
Deferred
contingent
consideration
shares - - - (3,041) (3,041)
Fair value of
share based
payments - - 447 - 447
At 31 December
2014 90,164 73,248 34,700 (69,554) 128,558
-------------------- -------------------- -------------------- ------------------------ ---------
Other reserves Merger Warrant Reverse Translation Deferred Total
reserve reserve acquisition reserve consideration Other
reserve reserve Reserves
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
At 1 January
2013 55,487 1,817 - (16,642) - 40,662
-------------------- -------------------- -------------------- -------------------- ------------------------ ---------
Translation
differences - - - (68,058) - (68,058)
Total
comprehensive
loss for the
year - - - (68,058) - (68,058)
-------------------- -------------------- -------------------- -------------------- ------------------------ ---------
Deferred
contingent
consideration
shares - - - 204 9,151 9,355
Issue of
warrants - 288 - - - 288
At 31 December
2013 55,487 2,105 - (84,496) 9,151 (17,753)
-------------------- -------------------- -------------------- -------------------- ------------------------ ---------
Translation
differences - - - (48,760) - (48,760)
Total
comprehensive
loss for the
year - - - (48,760) - (48,760)
-------------------- -------------------- -------------------- -------------------- ------------------------ ---------
Deferred
contingent
consideration
shares - - - 84 (3,125) (3,041)
At 31 December
2014 55,487 2,105 - (133,172) 6,026 (69,554)
-------------------- -------------------- -------------------- -------------------- ------------------------ ---------
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2014
31-Dec-14 31-Dec-13
US$'000 US$'000
Cash generated from operations 14,640 3,431
Tax paid - (59)
Cash flows generated from operating activities 14,640 3,372
--------------------- ----------
Cash flows from investing activities
Purchase of property, plant and equipment (18,234) (1,828)
Purchase of exploration assets (1,785) (1,625)
Purchase of financial assets (84) (2,525)
Acquisition of subsidiaries - 23
Net cash used in investing activities (20,103) (5,955)
--------------------- ----------
Cash flows from financing activities
Funds from borrowing 8,601 10,386
Interest received - 11
Interest paid - -
Proceeds from issue of shares 33 359
Net cash generated from financing activities 8,634 10,756
--------------------- ----------
Exchange losses on cash and cash equivalents (705) (174)
Net increase in cash and cash equivalents 2,466 7,999
Cash and cash equivalents at the beginning of the year 8,178 179
Cash and cash equivalents at the end of the year 10,644 8,178
--------------------- ----------
Significant non-cash transactions
Significant non-cash transactions in 2013 were the acquisitions
of Kilwer S.A., Ketsal S.A. and CHPPC Andes S.L.R (formerly MGM
International S.R.L.).
1. GENERAL INFORMATION
1.1 Introduction
The financial information set out in this announcement does not
comprise the Group's statutory accounts for the years ended 31
December 2014 or 31 December 2013.
The financial information has been extracted from the statutory
accounts of the Company for the years ended 31 December 2014 and 31
December 2013. The auditors reported on those accounts; their
reports were unqualified and did not contain a statement under
Section 498(2) or Section 498(3) of the Companies Act 2006.
The Company has produced its statutory accounts for the year
ended 31 December 2014 in accordance with International Financial
Reporting Standards as adopted by the European Union and in
accordance with the Group's accounting policies that are unchanged
from those set out in the 2013 statutory accounts.
The statutory accounts for the year ended 31 December 2013 have
been delivered to the Registrar of Companies, whereas those for the
year ended 31 December 2014 will be delivered to the Registrar of
Companies following the Company's Annual General Meeting.
1.2 Taxation
Current tax (3,635) (1,172)
Deferred taxation 623 838
Tax charge (3,012) (334)
-------- --------
Loss on ordinary activities before tax (7,907) (94)
Tax credit on loss at standard rate of 35% 2,768 33
Effects of:
Expenses not deductible for tax purposes
Items not deductible for tax purposes (132) (1,132)
Effect of items not taxable 375 2,278
Temporary timing differences (210) 0
Recovery of deferred tax position 1,316 179
Tax losses for which no deferred tax asset is recognised (7,129) (1,692)
Current tax charge (3,012) (334)
-------- --------
It should be noted that under Argentine tax law group relief,
allowing taxable profits to be offset against taxable losses of
companies with the same group, are not available.
The tax rate used for the 2014 and 2013 reconciliations above is
the corporate tax rate of 35% payable by corporate entities in
Argentina on taxable profits under tax law in that jurisdiction.
There is no tax arising on any items within the consolidated
statement of comprehensive income.
The Group is liable to pay a minimum notional income tax at the
applicable tax rate (1%) for Argentina's subsidiaries, calculated
on the amount of computable assets at the closing of the financial
year. This tax is supplementary to income tax and the Group's tax
liability in each fiscal year will be the higher of the minimum
notional income tax and the income tax for the year. If the minimum
notional income tax for a given financial year exceeds the amount
of income tax, such excess may be carried forward as a partial
payment of income tax for any of the ten following fiscal
years.
1.3 Loss per share
Basic loss per share is calculated by dividing the net loss for
the year attributable to ordinary shareholders of the Group by the
weighted average number of ordinary shares outstanding during the
year. The basic and diluted loss per share are the same as there
are no instruments that have a dilutive effect on earnings.
Adjusted basic and diluted loss per share are presented after
adjustment of exceptional items.
31-Dec-14 31-Dec-13
Cents Cents
Basic and diluted loss per share (2.11) (0.10)
Adjusted basic and diluted loss per share (2.11) (1.58)
US$'000 US$\'000
Loss for the financial year attributable to equity holders (10,919) (428)
Exceptional ítems - (6,211)
Tax on exceptional ítems - -
Adjusted loss for the financial year attributable to equity holders (10,919) (6,639)
-------------------- ------------------------
No,'000 No,'000
Weighted average number of shares 516,786 419,224
Effect of dilutive warrants - -
Diluted weighted average number of shares 516,786 419,224
-------------------- ------------------------
No,'000 No,'000
Potential number of dilutive shares 38,656 34,728
-------------------- ------------------------
The warrants are deemed to be non-dilutive for the purposes of
this calculation.
1.4 Events after the balance sheet date
On 20 January 2015, the Group acquired a 51% interest in IOX.
Andes acquired its interest through the participation in a private
placement by Interoil of 330,000,000 shares at NOK0.11. The
acquisition provides Andes with an interest in exploration and
producing licences in Colombia and 5.7 million bbls of 2P reserves.
The acquisition allows Andes to increase and diversify its
production and reserve base. Andes believes its management and
technical capabilities established in the region, combined with
Interoil's existing operational base and personnel will contribute
to accelerating the development of both companies' acreage in
Colombia. At the date of these financial statements, the Group does
not have sufficient information to perform a purchase price
allocation required by IFRS 3 as the acquired group's financial
statements have not yet been closed. Consequently, the initial
accounting for the acquisition is not yet complete.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR BIGDURGDBGUG
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