TIDMAST
RNS Number : 0561D
Ascent Resources PLC
24 April 2017
24 April 2017
Ascent Resources plc
("Ascent" or "the Company")
Audited final results for the year ended 31 December 2016
Ascent Resources plc, the AIM quoted European oil and gas
exploration and production company is pleased to report its audited
full year results for the year ended 31 December 2016.
2016 Highlights:
-- Gas sales agreement signed with INA giving the joint venture
a route to market for gas via the export production pipeline.
-- Acquisition of Trameta, providing the Company with access to
the export production pipeline to Croatia.
-- Raised GBP6.0 million via equity and convertible loan placings.
-- Reduction in debt of GBP5.0 million though loan note
conversions and repayment of short-term facility.
-- Reduced loss for the year by GBP1.0 million through reduced
administrative expenses (GBP0.5 million) and lower finance costs
(GBP0.5 million).
Post Period Highlights:
-- First commercial sale of gas delivered from Pg-10 in April 2017.
-- GBP3.0m raised via equity placing through PrimaryBid.com in February 2017.
-- Further GBP4.0 million of loan note conversions significantly reducing debt.
Colin Hutchinson, CEO of Ascent, commented:
"In the period under review and subsequently the Company has
transformed itself from an explorer into a properly funded
producer.
We look forward to continued success in the future."
Enquiries:
Ascent Resources plc
Clive Carver, Chairman
Colin Hutchinson, CEO 0207 251 4905
Stockdale Securities Limited, Nominated
Adviser and Joint Broker
Richard Johnson
Edward Thomas 0207 601 6100
Northland Capital Partners Limited,
Joint Broker
Tom Price 0203 861 6625
IFC Advisory Ltd, Financial PR and
IR
Tim Metcalfe
Heather Armstrong 0203 053 8671
Chairman's Statement
Progress in the period under review and the first few months of
2017 is probably the greatest in the Company's history.
At the date of the last annual review we were heavily occupied
by Slovenia's interpretation of EU environmental regulations;
without a market for our gas; and unsure of the productive
qualities of our two drilled wells Pg-10 & Pg-11A. However,
thanks to surviving on successive equity placements and the support
of our principal partners and financial backers, we ended the year
on a sound financial footing.
Now, we have demonstrated the productive capabilities of our
main well, Pg-10; re-commissioned and constructed connecting
pipelines; and signed a contract with INA to sell our gas across
the Slovenian border for treatment in Croatia. We are better funded
to maximise the opportunities ahead and the ultimate progress is
that we are now selling gas, with production and gas sales having
started in 2017.
Under the terms of the Petišovci Joint Venture Agreement, we are
entitled to retain up to 90% of the income received against
historic costs, which to date are EUR43 million. We therefore
anticipate a build-up in the Company's cash reserves over the
coming months.
This has all been achieved whilst reducing our general and
administrative expenditure from GBP1.9 million to GBP1.4
million.
However, much remains to be done.
We remain hopeful of an early decision by the Slovenian
authorities to allow the much-delayed environmental permit to be
issued. This will enable the construction of a larger gas treatment
facility, which will be required to develop the Petišovci project
to its fullest potential.
We are indebted to our workforce, led by Chief Executive Colin
Hutchinson, all of whom deserve praise for their commitment to the
Company. We are also grateful for the continued support and strong
working relations with our Slovenian partners Petrol and Nafta
Lendava.
I look forward to reporting further progress in the coming
months and thank shareholders for their continued support.
Yours faithfully
Clive Carver
Non-executive Chairman.
Chief Executive's Review
Introduction
The period under review has been one of the most transformative
in the Company's history.
In July 2016, we responded to the surprising decision of the
Slovenian Administrative Court to withdraw the IPPC Permit by
completing the acquisition of the Slovenian company Trameta and
signing a gas sales agreement with INA. These two transactions
opened up a significant market for Joint Venture gas.
In October and November 2016, we completed a GBP4.5 million
fund-raising (GBP3.5 million equity and GBP1 million of convertible
loan notes), which provided the Company with the funding to pay
down short-term debt and complete the work programme to bring our
wells into production. In February 2017, a further placing of
GBP3.0 million through PrimaryBid provided the Company a
significant cash buffer.
Post period end, in January 2017 we successfully recompleted and
tested well Pg-10 which flowed at a rate that exceeded Management
expectations, by matching rates achieved in 2011. Production at
these levels would enable us to comfortably meet the minimum
requirement in our INA contract.
In April 2017, the Company commenced the commercial production
of gas from well Pg-10. This marked an historic step forward for
Ascent after nearly ten years in country and around six years since
Pg-10 first indicated the significant potential of the field.
Financial Performance for the year
Despite this increased level of commercial activity, it is
pleasing to report that losses for the year decreased compared to
the prior year by almost GBP1 million from GBP3.6 million to GBP2.7
million. This has been driven by a GBP0.5 million reduction in
administrative expenditure as cuts made in previous periods
materialise and a GBP0.5 million reduction in finance costs for the
period as the value of outstanding loan notes decreased.
The balance sheet has been materially strengthened with year-end
cash of over GBP3 million compared to GBP32,000 at the end of 2015.
Cash from operations primarily relates to the administrative costs
incurred. Cash from investing relates to capital expenditure with
cash from financing primarily relating to the placings and issue of
convertible loan notes in the year. In the period under review GBP5
million of debt was extinguished with the conversion of loan notes
and, since the period, end another GBP2.5 million of debt has
similarly been extinguished with further loan note conversions.
Finally, we have benefited from the appreciation of the euro
against sterling, as the majority of our assets are euro
denominated.
IPPC Permit
Petrol Geoterm, the contractor to our Joint Venture and the
entity that filed the original IPPC Environmental Permit
Application to build a new processing facility at Petišovci, was
informed in May 2016 of the Administrative Court's decision to
withdraw the IPPC Permit, which had previously been granted by the
Slovenian Environment Agency, in June 2015.
The reason given by the Administrative Court for this decision
was that, after the original application had been made in June
2014, the relevant law had changed and the process that had been
followed did not comply with the new law. This is despite the new
law explicitly stating that, any applications submitted (but not
yet resolved) prior to the effective date for the new law should be
pursued exclusively under the old rules.
The Administrative Court's decision is not related to objections
to the Petišovci project by interest groups but is based solely on
the permit application process. It is clear to the Company and its
advisers that the decision of the Administrative Court is directly
contrary to prevailing Slovenian law.
The Administrative Court referred the case back to the Slovenian
Environment Agency to process. After further discussions with the
Environment Agency, the Joint Venture submitted additional
documentation to satisfy specific points raised by the
Administrative Court. This has satisfied the Environment Agency,
which has ruled that the Joint Venture will not be required to
submit a second full Environmental Impact Assessment ('EIA'), as
stipulated by the new law, to progress its application for an IPPC
Permit.
We believe it is a flaw in the system that allows one entity to
lodge the same discredited arguments against the issue of the
Permit time and time again. The big losers here are the Slovenian
state and its public who are forced to import virtually all of
their gas requirements while Slovenian gas produced from the
Petisovci field will be exported to neighbouring Croatia.
Inevitably Ascent also suffers from delays and uncertainty as each
permitted appeal takes several months.
Given the system it was not a huge surprise that once again the
same NGO appealed the decision of the Environment Agency in
November 2016. We note though that the Slovenian state may be
finally losing patience with this particular objector as its appeal
has once again be dismissed as being entirely without merit.
We await confirmation on whether there will be a further appeal
to the Court.
Sales agreement with INA
When we became aware that INA, Croatia's leading oil and gas
company, was constructing a pipeline to link its field at
Medjimurje with a processing facility at Molve, both within Croatia
we were clear that the best interest of the Company would be served
with an agreement to supply INA with our untreated gas. The
Petišovci field, which is some 5 kilometres from the Croatian
border, is already connected to Medjimurje by an existing pipeline
constructed by INA towards the end of the previous century.
In July 2016, we announced that we had signed a gas sales
agreement to run for twelve months from first production while we
tested the productivity of the wells and the responsiveness of the
gas reservoirs. After twelve months, the agreement can be renewed.
Gas will be sold at a price indexed to the day ahead Central
European gas hub pricing. We expect to commence supplying INA in Q2
2017.
Acquisition of Trameta
To allow an agreement with INA to move forward we first had to
secure the Slovenian section of the existing production pipeline.
To do so in July 2016 we acquired 100% of Trameta, a Slovenian
company that controlled the land over which the relevant pipelines
run.
Under the terms of the Trameta Sale & Purchase Agreement
Ascent undertook to issue the Trameta vendors up to 75 million new
Ascent shares and options over a further 7.5 million Ascent shares
(subject to triggering tranches 1 & 2) as follows:
Tranche Event / Date Shares
/ Condition (millions)
On the one-year anniversary of the
completion of the SPA following
1 the General Meeting 5.0
On the one-year anniversary of the
pipeline being certified for the
2 transportation of gas. 20.0
On the one-year anniversary of the
pipeline being used to transport
1 million cubic metres of natural
3 gas. 22.5
On the one-year anniversary of the
pipeline being used to transport
50 million cubic metres of natural
4 gas 27.5
In addition, the Seller will be issued with options to subscribe
for up to a further 7.5 million subscription shares at the option
price of 2 pence per share following the pipeline being certified
for the transportation of gas. As at the balance sheet date,
conditions 1 & 2 had already been satisfied and options issued
in the financial year.
The purchase of Trameta has avoided years of potential delay to
the project and the associated legal costs.
Funding
During 2016, the Company raised a total of GBP6 million gross
(GBP5 million of equity and GBP1 million of convertible loan
notes). The first three issues, which took place during April and
June 2016, provided the Company with the funds to finalise the INA
and Trameta agreements and to undertake the planning required to
carry out the work programmes required for first gas.
In October 2016, the Company announced a fund-raising of up to
GBP4.5 million, which was carried out in tranches. The first for
GBP3,677,500, GBP2,627,500 of equity and GBP1,050,000 of
convertible loan notes, which included a subscription for GBP50,000
in loan notes from Directors, was implemented immediately and the
second for GBP871,510 was carried out following the approval of
shareholders at a General Meeting held on 15 November 2016. In
addition in October 2016 the repayment date of the CLN's was
extended to November 2019.
Recompletion of Pg-10
The recompletion of Pg-10 commenced in November 2016 and
completed in January 2017, with a successful three-day flow
test.
This was a significant achievement. Pg-10 had previously been
tested for only a short period in 2011 and management were
therefore happy to be able to report that there had been no
deterioration in the flow rates over the subsequent period.
Sales of gas
In April 2017, the joint venture partners commenced commercial
production from well Pg-10 for the first time. Production is being
processed at the existing processing facility ('CPP') owned by our
partner, Petrol Geoterm, and is being sold to a local industrial
customer.
This marks the step from explorer to producer and would not have
been possible without the faith and perseverance of our employees,
partners, contractors and importantly shareholders.
If 2016 was the most transformative year in the Company's
history, we believe 2017 is already on track to exceed this.
Colin Hutchinson
Chief Executive Officer
Operations Review
Slovenia
Ascent Slovenia Ltd 75% (operator), Geoenergo d.o.o. 25%
(concession holder)
The Petišovci Tight Gas Project, in a 98 km2 area in north
eastern Slovenia, targets the development of tight gas reservoirs
known to be in Miocene clastic sediments.
Ascent first acquired an interest in the Petišovci project in
2007 and in 2009 an extensive 3D seismic survey was conducted
across the Petišovci concession area.
The structure has two sets of reservoirs, the shallower Upper
Miocene and the deeper Middle Miocene. The Middle Miocene Badenian
reservoirs, or Pg sands, are the focus of Ascent's development
objectives; however, the shallow reservoirs, which were extensively
developed during the 1960s, are not considered to be fully
depleted.
The north-east region of Slovenia has been an oil and gas
producing area since the early 1940s and contains much of the
infrastructure necessary for processing and exporting produced
hydrocarbons.
Two new appraisal wells, Pg-10 and Pg-11, drilled in 2010/2011
to a total vertical depth of 3,497 m and 3,500 m respectively,
confirmed gas in all six Middle Miocene Badenian reservoirs ('A' to
'F' Pg sands). Gas flowed for the first time from the shallowest
'A' sands and, in addition, gas and condensate were sampled from
the Lower Badenian 'L' to 'Q' sands. Pg-10 proved productive from
the 'F' sands and Pg--11A (Pg-11 was side-tracked for technical
reasons to Pg-11A) from the deeper 'L' to 'Q' sands. Both wells
were successfully fracture stimulated resulting in flow rates of 8
MMscfd from the 'F' sands and 2 MMscfd from the 'L, M and N' sands,
proving the commercial potential of both wells.
The data generated from the Pg-11A well, including three 18 m
core samples and state-of-the-art wireline logging, supplemented
the 2009 3D survey of the project area. The Company has reported
independently verified P50 estimate of gas in place of 456 Bcf (13
Bm3; 76 MMboe).
Following the recompletion of Pg-10 in January 2017 a flow test
was carried out over a three day period. The maximum stabilised
flow rate was 8.8 million standard cubic feet of gas per day
('MMscfd'). Over the course of the 56 hour test the well was open
for a total of 37 hours. The well produced total gas of 295,387
cubic metres (10,431,595 cubic feet) along with 28,250 litres of
water and 2,930 litres of condensate. The average flowing well head
pressure was 271 barg (3,930 psi absolute).
Back-in Rights
Netherlands
As part of the Sale and Purchase Agreement signed in 2013 with
Tulip Oil for the Company's former Dutch licences, Ascent has the
right to re-purchase a 10% interest in each of the Dutch licences
once Tulip has made a final investment decision with respect to the
commercial development of the Terschelling-Noord Field.
Switzerland
The permits over which Ascent held back in rights expired during
the year.
Strategic report
Section 414C of the Companies Act 2006 ('the Act') requires that
the Company inform its members as to how the Directors have
performed their duty to promote the success of the Company by way
of a Strategic Report.
Fair review of the business
The Act requires the Company to set out in the Directors' Report
a fair review of the business of the Company during the financial
year ended 31 December 2016 including an analysis of the position
of the business at the end of the financial year and a description
of the principal risks and uncertainties facing the Company (the
'Business Review'). The purpose of the Business Review is to enable
shareholders to assess how the Directors have performed their
duties under Section 172 of the Companies Act 2006, being the duty
to promote the success of the Company. The Chairman's Statement and
the Chief Executives Review, together with the Operations Review,
Corporate Responsibility Statement, corporate governance statements
and Principal Risks and Uncertainties section of the Annual Report,
which are incorporated herein by reference, are considered to
fulfil the requirements of the Business Review.
Principal risks and uncertainties
The Group operates in an industry characterised by a range of
business risks. The key risks and uncertainties faced by the Group
are summarised below.
-- Strategic - the achievement of corporate objectives is
dependent on the strategy followed by the Group, as well as the
interaction with stakeholders and shareholders, good governance and
an understanding of economic and market dynamics. This risk is
mitigated by the expertise of the Company's Directors and
specialists.
-- Operations - the operations of the Group may be adversely
affected by its ability to find and develop adequate gas and oil
reserves, to develop and exploit new gas and oil acreage and to
recruit and retain management and staff with the right technical
skills. This risk is mitigated through the experience and expertise
of the Company's Directors, staff, specialists and consultants, the
application of appropriate technology and the selection of
appropriate prospective exploration and development assets.
-- Financial - the Group's ability to meet its obligations and
achieve objectives is influenced by its liquidity, gearing,
movements in commodity prices and costs, movements in foreign
exchange and funding. Foreign exchange risk is mitigated by close
monitoring of exchange rate movements and holding cash reserves
with a variety of different institutions in a variety of currencies
being euro, US dollar and British pound. The Group's liquidity risk
is set out in Notes 1 and 23 to the financial statements. All other
financial risks are mitigated, to the extent possible, by the
expertise of the Company's financial staff.
-- Compliance - the Group must comply with a range of corporate,
legal and industry regulations and the nature of its operations
necessitates strong controls around contractual arrangements,
especially in respect of areas such as joint venture agreements.
This risk is mitigated by the expertise of the Company's Directors
and advisers.
-- Knowledge - the Group is dependent on the efficient and
effective operation of its information systems, and the management
and reporting of project data and reserves information is key. Loss
of key personnel may also lead to the potential loss of corporate
'intellectual property'. This risk is mitigated by ensuring all
Company information is both readily available to the relevant
Company employees and is securely maintained on a regularly backed
up, password protected IT system.
Analysis of the development and performance of the business
Information is contained in the Chairman's statement and Chief
Executives Review. The Group incurred a loss of GBP2.7 million
(2015: GBP3.6 million) arising from GBP1.4 million (2015: GBP1.9
million) of administrative costs and net finance costs of GBP1.3
million (2015: GBP1.8 million). Further details of the net finance
costs are provided in Note 5.
Analysis of the position of the business
Information is contained the Chairman's statement and Chief
Executives Review. The exploration and evaluation asset totals
GBP37.5 million (2015: GBP32.7 million) including GBP1.8m (2015:
GBP0.7m) of additions and a GBP3.0 million gain due to the effect
of foreign exchange. The Group's borrowings and other liabilities
totalled GBP6.2 million (2015: GBP11.2 million) as detailed in Note
13.
Analysis using other key performance indicators
The Directors consider a range of financial and non-financial
key performance indicators. Financial indicators are principally
focussed on the regular review of major projects, comparing actual
costs with budgets and projections and analysis of expenditure, see
Note 2. More detailed assessments are also made of un-risked and
risked net present values ('NPVs'), project rates of return and
investment ratios such as 'success case investment efficiency'.
Monthly trading and cash movements are also reviewed for each of
the Group companies. Specific exploration-related key performance
indicators include: the probability of geological success (Pg), the
probability of commerciality or completion (Pc) and the probability
of economic success (Pe). For more details, see Summary of Group
Net Oil and Gas Reserves on page 15.
The projected NPV of the Petišovci project is regularly
reassessed by management and offers a significant premium to the
current market capitalisation of the Company.
Approved for issue by the Board of Directors
and signed on its behalf
Clive Carver
Chairman
21 April 2017
Summary of Group Net Oil and Gas Reserves
Net Reserves and Resources
Net Attributable Net Attributable Net Attributable
----------
Reserves Contingent Prospective
Resources Resources
----------
(Bcfe) (Bcfe) (Bcfe)
--------------------- --------------------- ---------------------
P90 P50 P10 Low Best High Low Best High
---------- ------ ------ ----- ----- ------ ------ ----- ------ ------
Slovenia 41 88 173 42 76 140 - - -
---------- ------ ------ ----- ----- ------ ------ ----- ------ ------
These figures are based on RPS gas-in-place estimates with a
management assumption of a 50% recovery factor and Ascent's 75%
participation.
Tested and/or produced commercial sands are included as reserves
while untested and unproduced sands remain as resources. The
condensate content of gas is not included.
Remaining reserves have been adjusted to take account of
historic field production, which to the end of 2016 was 8.8
Bcfe.
Proven Reserves (P90) are those quantities of petroleum which
can be estimated with reasonable certainty to be commercially
recoverable, from known reservoirs and under current economic
conditions, operating methods and government regulations.
Proven + Probable Reserves (P50) includes those unproven
reserves which are more likely than not to be recoverable.
For the P90 (P50 and P10) Reserves, there is at least a 90%
(50%; 10%) probability that the quantities actually recovered will
equal or exceed the estimate.
Contingent Resources are those quantities of petroleum
estimated, as of a given date, to be potentially recoverable from
known accumulations, but the applied project(s) are not yet
considered mature enough for commercial development due to one or
more contingencies. Contingent resources may include, for example,
projects for which there are currently no viable markets or where
commercial recovery is dependent on technology under development or
where evaluation of the accumulation is insufficient to clearly
assess commerciality.
Prospective Resources are those quantities of petroleum which
are estimated to be potentially recoverable from undiscovered
accumulations.
The range of estimates shown for each category of reserves or
resources is a measure of the uncertainty inherent in the
estimation of producible volumes and includes the current
perceptions of geological, operational and commercial risk.
Summary of Ascent Resources plc's Licence Interests as at 31
December 2016
Permit
Working Area
Interest Gross Net
(%) (km(2) (km(2)
Permit Subsidiary ) ) Status
Operations
Slovenia
Petišovci Ascent Slovenia Oil & gas
Concession Limited 75 98 73 exploitation
Back in rights
The Netherlands
Ascent Resources
M10a/M11 Netherlands Gas exploration
Terschelling-Noord BV 110 59 and appraisal
Glossary
M Thousand* cf Cubic feet
MM Million* scf Standard cubic
feet
B Billion* scfd Standard cubic
feet per day
km(2) Square kilometres
m(3) Cubic metres
* These are 'oilfield' units, as commonly used in the oil and
gas industry. Other units conform to the Système International
d'unités (SI) convention
Corporate Responsibility
Ascent operates a Management System that embodies Environmental,
Health, Safety ('EHS') and Social Responsibility ('SR') principles.
This system defines objectives to be met by Ascent, its
subsidiaries, affiliates, associates and operated joint ventures
(hereinafter collectively referred to as Ascent) in the management
of EHS and SR.
The policy of the Board of Ascent is to be fully accountable for
the necessary practices, procedures and means being in place so as
to ensure that each EHS and SR objective is demonstrated in full
and that continuous improvement practices are operating to ensure
that the required practices, procedures and means are being
monitored, refined and optimised as necessary. The Board will
accordingly review and report regularly to external stakeholders as
to the achievement of the objectives of this policy.
In accordance with this policy, the Executive Directors of
Ascent are directly and collectively responsible to the Board for
demonstrating that the EHS and SR objectives are attained
throughout Ascent. The Executive Directors have adopted Management
System Guidelines as guidance for demonstrating this.
The objectives of the Environment, Health, Safety and Social
Responsibility Policy are:
-- Ascent shall manage all operations in a manner that protects
the environment and the health and safety of employees, third
parties and the community.
-- The Executive Director provides the vision, establish the
framework, set the objectives and provide the resources for
responsible management of Ascent's operations.
-- Leadership and visible commitment to continuous improvement
are critical elements of successful operations.
-- A process that measures performance relative to policy aims
and objectives is essential to improving performance. Sharing best
practices and learning from each other promotes improvement.
-- Effective business controls ensure the prevention, control
and mitigation of threats and hazards to business stewardship.
-- Risk identification, assessment and prioritisation can reduce
risk and mitigate hazards to employees, third parties, the
community and the environment. Management of risk is a continuous
process.
-- Safe, environmentally sound operations rely on well-trained,
motivated people. Careful selection, placement, training,
development and assessment of employees and clear communication and
understanding of responsibilities are critical to achieving
operating excellence.
-- The use of internationally recognised standards, procedures
and specifications for design, construction, commissioning,
modifications and decommissioning activities are essential for
achieving operating excellence.
-- Operations within recognised and prudent parameters are
essential to achieving clear operating excellence. This requires
operating, inspection and maintenance procedures and information on
the processes, facilities and materials handled, together with
systems to ensure that such procedures have been properly
communicated and understood.
-- Adhering to established safe work practices, evaluating and
managing change and providing up-to-date procedures to manage
safety and health risks contribute to a safe workplace for
employees and third parties.
-- The minimisation of environmental risks and liabilities are
integral parts of Ascent's operations.
-- Third parties who provide materials and services (personnel
and equipment) or operate facilities on Ascent's behalf have an
impact on EHS and SR excellence. It is essential that third-party
services are provided in a manner consistent with Ascent's EHS and
SR Policy and Management System Guidelines.
-- Compliance with regulatory requirements and company
guidelines must be periodically measured and verified as part of
the continuous improvement process.
-- Preparedness and planning for emergencies are essential to
ensuring that all necessary actions are taken if an incident
occurs, to protect employees, third parties, the public, the
environment, the assets and brand of Ascent.
-- Effective reporting, incident investigation, communication
and lessons learned are essential to attaining and improving
performance.
-- Open and honest communication with the communities,
authorities and stakeholders with which Ascent operates builds
confidence and trust in the integrity of Ascent.
During 2016, the Group was Operator of one project which was
closely managed for maintaining the EHS and SR policy aims.
There have been no breaches of any applicable Acts recorded
against the Group during the reporting period.
Statement of Directors' Responsibilities
The Directors are responsible for preparing the Directors'
Report, the Strategic Report and the Financial Statements in
accordance with applicable law and regulations.
Company law requires the Directors to prepare financial
statements for each financial year. Under that law the Directors
have elected to prepare the Group and Company financial statements
in accordance with International Financial Reporting Standards
('IFRSs') as adopted by the European Union. Under company law the
Directors must not approve the financial statements unless they are
satisfied that they give a true and fair view of the state of
affairs of the Group and Company and of the profit or loss of the
Group for that period. The Directors are also required to prepare
financial statements in accordance with the rules of the London
Stock Exchange for companies trading securities on the AIM
Market.
In preparing these financial statements the Directors are
required to:
-- select suitable accounting policies and then apply them consistently;
-- make judgements and accounting estimates that are reasonable and prudent;
-- state whether they have been prepared in accordance with
IFRSs as adopted by the European Union, subject to any material
departures disclosed and explained in the financial statements;
and
-- prepare the financial statements on a going concern basis
unless it is inappropriate to presume that the Company will
continue in business.
The Directors are responsible for keeping adequate accounting
records that are sufficient to show and explain the Company's
transactions and disclose with reasonable accuracy at any time the
financial position of the Company and enable them to ensure that
the financial statements comply with the requirements of the
Companies Act 2006. They are also responsible for safeguarding the
assets of the Company and hence for taking reasonable steps for the
prevention and detection of fraud and other irregularities.
Website publication
The Directors are responsible for ensuring the Annual Report and
the Financial Statements are made available on a website. Financial
statements are published on the Company's website
(www.ascentresources.co.uk) in accordance with legislation in the
United Kingdom governing the preparation and dissemination of
financial statements, which may vary from legislation in other
jurisdictions. The maintenance and integrity of the Company's
website is the responsibility of the Directors. The Directors'
responsibility also extends to the ongoing integrity of the
Financial Statements contained therein.
Independent Auditors Report to the Members of Ascent Resources
plc
We have audited the financial statements of Ascent Resources plc
for the year ended 31 December 2016 which comprise the consolidated
income statement and consolidated statement of comprehensive
income, the consolidated and company statements of financial
position, the consolidated and company statements of changes in
equity, the consolidated and company statements of cash flows and
the related notes. The financial reporting framework that has been
applied in their preparation is applicable law and International
Financial Reporting Standards (IFRSs) as adopted by the European
Union and, as regards the parent company financial statements, as
applied in accordance with the provisions of the Companies Act
2006.
This report is made solely to the company's members, as a body,
in accordance with Chapter 3 of Part 16 of the Companies Act 2006.
Our audit work has been undertaken so that we might state to the
company's members those matters we are required to state to them in
an auditor's report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to
anyone other than the company and the company's members as a body,
for our audit work, for this report, or for the opinions we have
formed.
Respective responsibilities of directors and auditors
As explained more fully in the statement of directors'
responsibilities, the directors are responsible for the preparation
of the financial statements and for being satisfied that they give
a true and fair view. Our responsibility is to audit and express an
opinion on the financial statements in accordance with applicable
law and International Standards on Auditing (UK and Ireland). Those
standards require us to comply with the Financial Reporting
Council's (FRC's) Ethical Standards for Auditors.
Scope of the audit of the financial statements
A description of the scope of an audit of financial statements
is provided on the FRC's website at
www.frc.org.uk/auditscopeukprivate.
Opinion on financial statements
In our opinion:
-- the financial statements give a true and fair view of the
state of the group's and the parent company's affairs as at 31
December 2016 and of the group's loss for the year then ended;
-- the group financial statements have been properly prepared in
accordance with IFRSs as adopted by the European Union;
-- the parent company financial statements have been properly
prepared in accordance with IFRSs as adopted by the European Union
and as applied in accordance with the provisions of the Companies
Act 2006; and
-- the financial statements have been prepared in accordance
with the requirements of the Companies Act 2006.
Opinion on other matters prescribed by the Companies Act
2006
In our opinion, based on the work undertaken in the course of
the audit:
-- the information given in the strategic report and directors'
report for the financial year for which the financial statements
are prepared is consistent with the financial statements; and
-- the strategic report and directors' report have been prepared
in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and
the parent company and its environment obtained in the course of
the audit, we have not identified material misstatements in the
strategic report or the directors' report.
We have nothing to report in respect of the following matters
where the Companies Act 2006 requires us to report to you if, in
our opinion:
-- adequate accounting records have not been kept by the parent
company, or returns adequate for our audit have not been received
from branches not visited by us; or
-- the parent company financial statements are not in agreement
with the accounting records and returns; or
-- certain disclosures of directors' remuneration specified by law are not made; or
-- we have not received all the information and explanations we require for our audit.
Ryan Ferguson (senior statutory auditor)
For and on behalf of BDO LLP, statutory auditor
London
United Kingdom
21 April 2017
BDO LLP is a limited liability partnership registered in England
and Wales (with registered number OC305127).
Consolidated Income Statement & Statement of Other
Comprehensive Income
For the year ended 31 December 2016
Year ended Year ended
31 December 31 December
2016 2015
Notes GBP '000s GBP '000s
Other administrative
expenses (1,382) (1,609)
Termination payments - (279)
-------------------------------- ------ ------------ ------------
Total administrative
expenses (1,382) (1,888)
------------ ------------
Loss from operating activities 3 (1,382) (1,888)
Finance income 5 159 745
Finance cost 5 (1,453) (2,501)
------------ ------------
Net finance costs (1,294) (1,756)
Loss before taxation (2,676) (3,644)
------------ ------------
Income tax expense 6 - -
------------ ------------
Loss for the year (2,676) (3,644)
Loss per share
Basic & fully diluted
loss per share (pence) 7 (0.49) (4.13)
Year ended Year ended
31 December 31 December
2016 2015
GBP '000s GBP '000s
Loss for the year (2,676) (3,644)
Other comprehensive income
Foreign currency translation
differences for foreign
operations * 2,997 (1,059)
Total comprehensive gain
/ (loss) for the year 321 (4,703)
* Foreign currency translation differences from foreign
operations may be recycled through the income statement in the
future if certain future conditions arise.
Consolidated Statement of Changes in Equity
For the year ended 31 December 2016
Share Share Equity Share Translation Accumulated Total
capital premium reserve based reserve Losses
payment
reserve
GBP '000s GBP '000s GBP '000s GBP '000s GBP GBP GBP
'000s '000s '000s
Balance at 1 January 2015 1,459 55,911 2,576 861 (1,746) (38,613) 20,448
Comprehensive expense
Loss for the year - - - - - (3,644) (3,644)
Other comprehensive expense
Currency translation
differences - - - - (1,059) - (1,059)
Total comprehensive expense - - - - (1,059) (3,644) (4,703)
Transactions with owners
Extinguishment of convertible
loan notes - - (4,586) - - 4,586 -
Extension of convertible
loan notes - - 3,481 - - - 3,481
EnQuest liability restructured
into loan notes 101 101
Conversion of loan notes 4 1 - - - - 5
Issue of shares during the
year net of costs 415 781 - - - - 1,196
Share-based payments and
expiry of options - - - (378) - 524 146
Balance at 31 December 2015 1,878 56,693 1,572 483 (2,805) (37,147) 20,674
-------------------------------- ---------- ---------- ---------- ---------- ------------ ------------ --------
Balance at 1 January 2016 1,878 56,693 1,572 483 (2,805) (37,147) 20,674
Comprehensive income -
Loss for the year - - - - - (2,676) (2,676)
Other comprehensive income
Currency translation
differences - - - - 2,997 - 2,997
Total comprehensive income - - - - 2,997 (2,676) 321
Transactions with owners
Acquisition of Trameta - - - 1,103 - - 1,103
Extinguishment of convertible
loan notes - - (1,572) - - 1,572 -
Extension of convertible
loan notes - - 2,787 - - - 2,787
Issue of convertible loan
notes - - 360 - - - 360
Conversion of loan notes 749 2,996 - - - - 3,745
Issue of shares during the
year net of costs 1,105 3,584 - - - - 4,689
Share-based payments and
expiry of options - - - 94 - 94 188
Balance at 31 December 2016 3,732 63,273 3,147 1,680 192 (38,157) 33,867
-------------------------------- ---------- ---------- ---------- ---------- ------------ ------------ --------
Company Statement of Changes in Equity
For the year ended 31 December 2016
Share Share Equity Share Accumulated Total
capital premium reserve based Losses parent
payment equity
reserve
GBP '000s GBP '000s GBP '000s GBP '000s GBP GBP
'000s '000s
Balance at 1 January 2015 1,459 55,911 2,576 861 (39,566) 21,241
Comprehensive expense
Loss and total comprehensive
expense for the year - - - - (4,306) (4,306)
Transactions with owners
Extinguishment of convertible
loan notes - - (4,586) - 4,586 -
Extension of convertible
loan notes 3,481 - - 3,481
EnQuest liability restructured
into loan notes - - 101 - - 101
Conversion of loan notes 4 1 - - - 5
Issue of shares during the
year net of costs 415 781 - - - 1,196
Share-based payments - - - (378) 524 146
Balance at 31 December 2015 1,878 56,693 1,572 483 (38,762) 21,864
-------------------------------- ---------- ---------- ---------- ---------- ------------ --------
Balance at 1 January 2016 1,878 56,693 1,572 483 (38,762) 21,864
Comprehensive income
Profit and total comprehensive
income for the year - - - - 1,774 1,774
Transactions with owners
Acquisition of Trameta - - - 1,103 - 1,103
Extinguishment of convertible
loan notes - - (1,572) - 1,572 -
Extension of convertible
loan notes - - 2,787 - - 2,787
Issue of convertible loan
notes - - 360 - - 360
Conversion of loan notes 749 2,996 - - - 3,745
Issue of shares during the
year net of costs 1,105 3,584 - - - 4,689
Share-based payments - - - 94 94 188
Balance at 31 December 2016 3,732 63,273 3,147 1,680 (35,322) 36,510
-------------------------------- ---------- ---------- ---------- ---------- ------------ --------
Consolidated Statement of Financial Position
As at 31 December 2016
31 December 31 December
2016 2015
Assets Notes GBP '000s GBP '000s
Non-current assets
Property, plant and equipment 4 3
Exploration and evaluation
costs 8 37,541 32,711
------------ ------------
Total non-current assets 37,545 32,714
Current assets
Trade and other receivables 10 32 61
Cash and cash equivalents 3,153 32
------------ ------------
Total current assets 3,185 93
Total assets 40,730 32,807
============ ============
Equity and liabilities
Attributable to the equity
holders of the Parent Company
Share capital 17 3,732 1,878
Share premium account 63,273 56,693
Equity reserve 3,147 1,572
Share-based payment reserve 1,680 483
Translation reserves 192 (2,805)
Accumulated losses (38,157) (37,147)
------------ ------------
Total equity 33,867 20,674
------------ ------------
Non-current liabilities
Borrowings 13 6,162 -
Provisions 14 447 386
Total non-current liabilities 6,609 386
Current liabilities
Trade and other payables 15 254 508
Borrowings 13 - 11,239
Total current liabilities 254 11,747
Total liabilities 6,863 12,133
------------ ------------
Total equity and liabilities 40,730 32,807
============ ============
The Notes are an integral part of these consolidated financial
statements.
These financial statements were approved and authorised for
issue by the Board of Directors on 21 April 2017
and signed on its behalf by:
Clive Carver,
Chairman
21 April 2017
Company Statement of Financial Position
As at 31 December 2016
31 December 31 December
2016 2015
Notes GBP '000s GBP '000s
Non-current assets
Property, plant and equipment 2 1
Investment in subsidiaries
and joint ventures 9 15,443 14,340
Intercompany receivables 20 24,239 19,108
------------ ------------
Total non-current assets 39,684 33,449
Current assets
Trade and other receivables 11 10 44
Cash and cash equivalents 3,143 28
------------ ------------
Total current assets 3,153 72
Total assets 42,837 33,521
============ ============
Equity
Share capital 17 3,732 1,878
Share premium 63,273 56,693
Equity reserve 3,147 1,572
Share-based payment reserve 1,680 483
Accumulated losses (35,322) (38,762)
Total equity 36,510 21,864
------------ ------------
Non-Current liabilities
Borrowings 13 6,162 -
------------ ------------
Total current liabilities 6,162 -
Current liabilities
Trade and other payables 16 165 418
Borrowings 13 - 11,239
------------ ------------
Total current liabilities 165 11,657
Total liabilities 6,327 11,657
Total equity and liabilities 42,837 33,521
============ ============
The Company profit for the year was GBP1.8 million (2015: loss
of GBP4.3 million).
The Notes are an integral part of these consolidated financial
statements.
These financial statements were approved and authorised for
issue by the Board of Directors on 21 April 2017 and signed on its
behalf by:
Clive Carver
Chairman
21 April 2017
Consolidated Cash Flow Statement
For the year ended 31 December 2016
Year Year
ended ended
31 December 31 December
2016 2015
GBP '000s GBP '000s
Cash flows from operations
Loss after tax for the year (2,676) (3,644)
DD&A charge - (1)
Decrease in receivables 29 37
Decrease in payables (252) (222)
Increase in share based
payments 188 146
Exchange differences 1 36
Finance income (159) (745)
Finance cost 1,453 2,501
Net cash used in operating
activities (1,416) (1,892)
------------------------- -------------------------
Cash flows from investing
activities
Interest received 1 1
Payments for fixed assets (1) -
Payments for investing in
exploration (677) (661)
Net cash used in investing
activities (677) (660)
------------------------- -------------------------
Cash flows from financing
activities
Interest paid and other
finance fees (73) (18)
Proceeds from loans 1,400 950
Repayment of loan (800) -
Proceeds from issue of shares 4,999 1,252
Share issue costs (311) (56)
Net cash generated from
financing activities 5,215 2,128
------------------------- -------------------------
Net increase in cash and
cash equivalents for the
year 3,122 (424)
Effect of foreign exchange (1) -
differences
Cash and cash equivalents
at beginning of the year 32 456
Cash and cash equivalents
at end of the year 3,153 32
========================= =========================
Company Cash Flow Statement
For the year ended 31 December 2017
Year Year
ended ended
31 December 31 December
2016 2015
GBP '000s GBP '000s
Cash flows from in operations
Profit/(loss) after tax
for the year 1,774 (4,306)
Depreciation charge - -
(Increase) / Decrease in
receivables 34 (324)
Increase / (Decrease) in
payables (251) (94)
Increase in share based
payments reserve 188 146
Foreign exchange (3,921) 1,424
Finance income (154) (745)
Finance cost 1,441 2,501
Net cash generated from
/ (used in) operating activities (889) (1,398)
============= =============
Cash flows from investing
activities
Interest received - 4
Payments for fixed assets (1) -
Advances to subsidiaries (1,211) (1,158)
Net cash flows used in investing
activities (1,212) (1,154)
------------- -------------
Cash flows from financing
activities
Interest paid (73) (5)
Proceeds from loans 1,400 951
Repayment of loan (800) -
Cash proceeds from issue
of shares 4,999 1,252
Share issue costs (311) (56)
Net cash generated from
financing activities 5,215 2,142
------------- -------------
Net increase in cash and
cash equivalents 3,114 (410)
Cash and cash equivalents
at beginning of the year 28 439
Effects of foreign exchange
differences 1 (1)
Cash and cash equivalents
at end of the year 3,143 28
============= =============
Notes to the accounts
1 Accounting policies
Reporting entity
Ascent Resources plc ('the Company' or 'Ascent') is a company
domiciled and incorporated in England. The address of the Company's
registered office is 5 New Street Square, London EC4A 3TW. The
consolidated financial statements of the Company for the year ended
31 December 2016 comprise the Company and its subsidiaries
(together referred to as the 'Group') and the Group's interest in
associates and joint ventures. The Parent Company financial
statements present information about the Company as a separate
entity and not about its Group.
The Company is admitted to AIM, a market of the London Stock
Exchange.
The consolidated financial statements of the Group for the year
ended 31 December 2016 are available from the Company's website at
www.ascentresources.co.uk.
Statement of compliance
The Group's and Company's financial statements for the year
ended 31 December 2016 were approved and authorised for issue by
the Board of Directors on 21 April 2017 and the Statements of
Financial Position were signed on behalf of the Board by Clive
Carver.
Both the Parent Company financial statements and the Group
financial statements give a true and fair view and have been
prepared and approved by the Directors in accordance with
International Financial Reporting Standards as adopted by the EU
('IFRSs').
Basis of preparation
In publishing the Parent Company financial statements here
together with the Group financial statements, the Company is taking
advantage of the exemption in section 408 of the Companies Act 2006
not to present its individual income statement and related notes
that form a part of these approved financial statements. The
Company loss for the year was GBP2.0 million.
Measurement Convention
The financial statements have been prepared under the historical
cost convention. The financial statements are presented in sterling
and have been rounded to the nearest thousand (GBP'000s) except
where otherwise indicated.
The principal accounting policies set out below have been
consistently applied to all periods presented.
Going Concern
The Financial Statements of the Group are prepared on a going
concern basis. Following the placings, loan note subscriptions and
extension of the maturity of existing loan notes in 2016 the
directors consider the Company has sufficient cash to fund its
current obligations for the next 12 months.
New and amended Standards effective for 31 December 2016
year-end adopted by the Group:
i. The following new standards and amendments to standards are
mandatory for the first time for the Group for the financial year
beginning 1 January 2016. The adoption of these standards and
amendments has had no material effect on the Group's accounting
policies.
Standard Description Effective
date
----------- --------------------------------- -----------
IAS 19 Defined Benefit Plans: Employee 1 February
Contributions 2016
----------- --------------------------------- -----------
IFRS 11 Accounting for Acquisitions 1 January
of Interests in Joint Operation 2016
----------- --------------------------------- -----------
IAS 16 and Clarification of Acceptable 1 January
IAS 38 Methods of Depreciation 2016
and Amortisation
----------- --------------------------------- -----------
ii. Standards, amendments and interpretations, which are
effective for reporting periods beginning after the date of these
financial statements which have not been adopted early:
Standard Description Effective
date
--------- ---------------------------- ----------
IFRS 9 Financial instruments 1 January
2018
--------- ---------------------------- ----------
IFRS15 Revenue from Contracts with 1 January
Customers 2018
--------- ---------------------------- ----------
IFRS 16* Leases 1 January
2019
--------- ---------------------------- ----------
IAS 12 Recognition of deferred 1 January
tax assets for unrealised 2017
losses
--------- ---------------------------- ----------
* not yet adopted by the European Union
IFRS 15 is intended to introduce a single framework for revenue
recognition and clarify principles of revenue recognition. This
standard modifies the determination of when to recognise revenue
and how much revenue to recognise. The core principle is that an
entity recognises revenue to depict the transfer of promised goods
and services to the customer of an amount that reflects the
consideration to which the entity expects to be entitled in
exchange for those goods or services.
IFRS 16 introduces a single lease accounting model. This
standard requires lessees to account for all leases under a single
on-balance sheet model. Under the new standard, a lessee is
required to recognise all lease assets and liabilities on the
balance sheet; recognise amortisation of leased assets and interest
on lease liabilities over the lease term; and separately present
the principal amount of cash paid and interest in the cash flow
statement.
IFRS 9 introduces significant changes to the classification and
measurement requirements for financial instruments. It replaces the
guidance in IAS 39 that relates to the classification and
measurement of financial instruments. IFRS 9 retains but simplifies
the mixed measurement model and establishes three primary
measurement categories for financial assets: amortized cost, fair
value through other comprehensive income (OCI) and fair value
through profit or loss. For financial liabilities there were no
changes to classification and measurement except for the
recognition of changes in credit risk in other comprehensive
income, for liabilities designated at fair value through profit or
loss.
The Group is currently assessing the impact of these standards
and based on the Group's current operations do not expect them to
have a material impact on the financial statements.
Critical accounting estimates and assumptions and critical
judgements in applying the Group's accounting policies
The preparation of the consolidated financial statements in
conformity with IFRSs requires management to make estimates and
assumptions that affect the application of policies and reported
amounts of assets, liabilities, income, expenses and related
disclosures. The estimates and underlying assumptions are based on
practical experience and various other factors that are believed to
be reasonable under the circumstances, the results of which form
the basis for making the judgments about carrying values of assets
and liabilities that are not readily apparent from other sources.
Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an
ongoing basis. Changes in accounting estimates may be necessary if
there are changes in the circumstances on which the estimate was
based or as a result of new information. Such changes are recorded
in the period in which the estimate is revised.
The application of the Group's accounting policies may require
management to make judgements, apart from those involving
estimates, which can have a significant effect on the amounts
amortised in the financial statements. Management judgement is
particularly required when assessing the substance of transactions
that have a complicated structure or legal form.
The key areas where management judgement has needed to be
applied are:
(a) Exploration and evaluation assets - exploration and
evaluation costs are initially classified and held as intangible
fixed assets rather than being expensed. The carrying value of
intangible exploration and evaluation assets are then determined.
Management considers these assets for indicators of impairment at
least annually based on an estimation of the recoverability of the
cost pool from future development and production of the related oil
and gas reserves. This assessment requires estimates of gas
reserves, production, gas prices, operating and capital costs
associated with the field and discount rates (see Note 8);
(b) Decommissioning provision - the cost of decommissioning is
estimated by reference to operators and internal specialist staff
and requires estimates regarding the cost of decommissioning,
inflation, discount rates and the timing of works (see Note
14);
(c) New CLNs and modification to existing CLNs - the Group has
entered into a series of significant modifications to the maturity
on its CLNs and subscribed to a new convertible loan note. These
transactions required judgment in terms of the appropriate
accounting treatment. In addition, judgment and estimation was
required in determining the fair value of liability and equity
components of the loan notes (see Note 13);
(d) Commercial reserves - Commercial reserves are proven and
probable oil and gas reserves calculated on an entitlement basis
and are integral to the assessment of the carrying value of the
exploration and evaluation assets. Estimates of commercial reserves
include estimates of the amount of oil and gas in place,
assumptions about reservoir performance over the life of the field
and assumptions about commercial factors which, in turn, will be
affected by the future oil and gas price;
(e) The accounting treatment of the Trameta acquisition which,
as it possessed land and pipeline rights but no employees or active
business processes was accounted for as an asset acquisition.
Estimates were required in determining the fair value of
consideration (see Note 22).
Basis of consolidation
Where the Company has control over an investee, it is classified
as a subsidiary. The Company controls an investee if all three of
the following elements are present: power over the investee,
exposure to variable returns from the investee, and the ability of
the investor to use its power to affect those variable returns.
Control is reassessed whenever facts and circumstances indicate
that there may be a change in any of these elements of control.
The consolidated financial statements present the results of the
Company and its subsidiaries as if they formed a single entity.
Intercompany transactions and balances between Group companies are
therefore eliminated in full.
The results of undertakings acquired or disposed of are
consolidated from or to the date when control passes to or from the
Group. The results of subsidiaries acquired or disposed of during
the period are included in the Consolidated Income Statement from
the date that control commences until the date that control
ceases.
Where necessary, adjustments are made to the results of
subsidiaries to bring the accounting policies they use into line
with those used by the Group.
Business combinations
On acquisition, the assets, liabilities and contingent
liabilities of subsidiaries are measured at their fair values at
the date of acquisition. Any excess of cost of acquisition over net
fair values of the identifiable assets, liabilities and contingent
liabilities acquired is recognised as goodwill. Any deficiency of
the cost of acquisition below the net fair values of the
identifiable assets, liabilities and contingent liabilities
acquired (i.e. discount on acquisition) is credited to profit and
loss in the period of acquisition.
Joint arrangements
The Group is party to a joint arrangement when there is a
contractual arrangement that confers joint control over the
relevant activities of the arrangement to the Group and at least
one other party. Joint control is assessed under the same
principles as control over subsidiaries.
The Group classifies its interests in joint arrangements as
either joint ventures, where the Group has rights to only the net
assets of the joint arrangement, or joint operations where the
Group has both the rights to assets and obligations for the
liabilities of the joint arrangement.
All of the Group's joint arrangements are classified as joint
operations. The Group accounts for its interests in joint
operations by recognising its assets, liabilities, revenues and
expenses in accordance with its contractually conferred rights and
obligations.
Oil and Gas Exploration Assets
All licence/project acquisitions, exploration and appraisal
costs incurred or acquired on the acquisition of a subsidiary, are
accumulated in respect of each identifiable project area. These
costs, which are classified as intangible fixed assets are only
carried forward to the extent that they are expected to be
recovered through the successful development of the area or where
activities in the area have not yet reached a stage which permits
reasonable assessment of the existence of economically recoverable
reserves.
Pre-licence/project costs are written off immediately. Other
costs are also written off unless commercial reserves have been
established or the determination process has not been completed.
Thus, accumulated cost in relation to an abandoned area are written
off in full to the statement of comprehensive income in the year in
which the decision to abandon the area is made.
When production commences the accumulated costs for the relevant
area of interest are transferred from intangible fixed assets to
Property, Plant and Equipment as 'Developed oil and gas
assets'.
Impairment of oil and gas exploration assets
Exploration/appraisal assets are reviewed regularly for
indicators of impairment following the guidance in IFRS 6
'Exploration for and Evaluation of Mineral Resources' and tested
for impairment where such indicators exist.
In accordance with IFRS 6 the Group considers the following
facts and circumstances in their assessment of whether the Group's
oil and gas exploration assets may be impaired:
-- whether the period for which the Group has the right to
explore in a specific area has expired during the period or will
expire in the near future, and is not expected to be renewed;
-- whether substantive expenditure on further exploration for
and evaluation of mineral resources in a specific area is neither
budgeted nor planned;
-- whether exploration for and evaluation of oil and gas
reserves in a specific area have not led to the discovery of
commercially viable quantities of oil and gas and the Group has
decided to discontinue such activities in the specific area;
and
-- whether sufficient data exists to indicate that although a
development in a specific area is likely to proceed, the carrying
amount of the exploration and evaluation assets is unlikely to be
recovered in full from successful development or by sale.
If any such facts or circumstances are noted, the Group, as a
next step, perform an impairment test in accordance with the
provisions of IAS 36. In such circumstances the aggregate carrying
value of the oil and gas exploration and assets is compared against
the expected recoverable amount of the cash generating unit. The
recoverable amount is the higher of value in use and the fair value
less costs to sell.
The Group has identified one cash generating unit, the Petišovci
project in Slovenia. Any impairment arising is recognised in the
Income Statement for the year.
Where there has been a charge for impairment in an earlier
period that charge will be reversed in a later period where there
has been a change in circumstances to the extent that the
discounted future net cash flows are higher than the net book value
at the time. In reversing impairment losses, the carrying amount of
the asset will be increased to the lower of its original carrying
values or the carrying value that would have been determined (net
of depletion) had no impairment loss been recognised in prior
periods.
Decommissioning costs
Where a material obligation for the removal of wells and
production facilities and site restoration at the end of the field
life exists, a provision for decommissioning is recognised. The
amount recognised is the net present value of estimated future
expenditure determined in accordance with local conditions and
requirements. An asset of an amount equivalent to the provision is
also added to oil and gas exploration assets and depreciated on a
unit of production basis once production begins. Changes in
estimates are recognised prospectively, with corresponding
adjustments to the provision and the associated asset.
Foreign currency
The Group's strategy is focussed on developing oil and gas
projects across Europe funded by shareholder equity and other
financial assets which are principally denominated in sterling. The
functional currency of the Company is sterling.
Transactions in foreign currency are translated to the
respective functional currency of the Group entity at the rates of
exchange prevailing on the dates of the transactions. At each
reporting date, monetary assets and liabilities that are
denominated in foreign currencies are retranslated to the
functional currency at the rates prevailing on the reporting date.
Exchange gains and losses on short-term foreign currency borrowings
and deposits are included with net interest payable.
The assets and liabilities of foreign operations are translated
to sterling at foreign exchange rates ruling at the balance sheet
date. The revenues and expenses of foreign operations are
translated to sterling at the average rate ruling during the
period. Foreign exchange differences arising on retranslation are
recognised directly in a separate component of equity. Foreign
exchange differences arising on inter-company loans considered to
be permanent as equity are recorded in equity. The exchange rate
from euro to sterling at 31 December 2016 was GBP1: EUR1.1722
(2015: GBP1: EUR1.3558).
On disposal of a foreign operation, the cumulative exchange
differences recognised in the foreign exchange reserve relating to
that operation up to the date of disposal are transferred to the
consolidated income statement as part of the profit or loss on
disposal.
Exchange differences on all other transactions, except
intercompany foreign currency loans, are taken to operating
loss.
Taxation
The tax expense represents the sum of the tax currently payable
and any deferred tax.
The tax currently payable is based on the estimated taxable
profit for the period. Taxable profit differs from net profit as
reported in the income statement because it excludes items of
income or expense that are taxable or deductible in other years and
it further excludes items that are never taxable or deductible. The
Group's liability for current tax is calculated using the expected
tax rate applicable to annual earnings.
Deferred tax is the tax expected to be payable or recoverable on
differences between the carrying amounts of assets and liabilities
for financial reporting purposes and the corresponding tax bases
used in the computation of taxable profit. It is accounted for
using the balance sheet liability method. Deferred tax liabilities
are 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. The carrying amount of
deferred tax assets is reviewed at each reporting 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.
Equity-settled share-based payments
The cost of providing share-based payments to employees is
charged to the income statement over the vesting period of the
related share options or share allocations. The cost is based on
the fair values of the options and shares allocated determined
using the binomial method. The value of the charge is adjusted to
reflect expected and actual levels of vesting. Charges are not
adjusted for market related conditions which are not achieved.
Where equity instruments are granted to persons other than
directors or employees the Consolidated Income Statement is charged
with the fair value of any goods or services received.
Grants of options in relation to acquiring exploration assets in
licence areas are treated as additions to Slovenian exploration
costs at Group level and increases in investments at Company
level.
Provisions
A provision is recognised in the Statement of Financial Position
when the Group has a present legal or constructive obligation as a
result of a past event, and it is probable that an outflow of
economic benefits will be required to settle the obligation. If the
effect is material, provisions are determined by discounting the
expected future cash flows at a pre-tax rate that reflects current
market assessments of the time value of money and the risks
specific to the liability.
Convertible loan notes
Upon issue of a new convertible loan, where the convertible
option is at a fixed rate, the net proceeds received from the issue
of CLNs are split between a liability element and an equity
component at the date of issue. The fair value of the liability
component is estimated using the prevailing market interest rate
for similar non-convertible debt. The difference between the
proceeds of issue of the CLNs and the fair value assigned to the
liability component, representing the embedded option to convert
the liability into equity of the Group, is included in equity and
is not re-measured.
Subsequent to the initial recognition the liability component is
measured at amortised cost using the effective interest method.
When there are amendments to the contractual loan note terms
these terms are assessed to determine whether the amendment
represents an inducement to the loan note holders to convert. If
this is considered to be the case the estimate of fair value
adjusted as appropriate and any loss arising is recorded in the
income statement.
Where there are amendments to the contractual loan note terms
that are considered to represent a significant modification to the
loan note, without representing an inducement to convert, the Group
treats the transaction as an extinguishment of the existing
convertible loan note and replaces the instrument with a new
convertible loan note. The fair value of the liability component is
estimated using the prevailing market interest rate for similar
non-convertible debt. The fair value of the conversion right is
recorded as an increase in equity. The previous equity reserve is
reclassified to accumulated loss. Any gain or loss arising on the
extinguishment of the instrument is recorded in the income
statement, unless the transaction is with a counterparty considered
to be acting in their capacity as a shareholder whereby the gain or
loss is recorded in equity.
Non-derivative financial instruments
Non-derivative financial instruments comprise of investments in
equity and debt securities, trade and other receivables, cash and
cash equivalents, loans and borrowings and trade and other
payables.
Financial instruments
Financial assets and financial liabilities are recognised on the
statement of financial position when the Group becomes a party to
the contractual provisions of the instrument.
Trade and other receivables are measured at initial recognition
at fair value and are subsequently measured at amortised cost using
the effective interest method. A provision is established when
there is objective evidence that the Group will not be able to
collect all amounts due. The amount of any provision is recognised
in the income statement.
Cash and cash equivalents comprise cash held by the Group and
short-term bank deposits with an original maturity of three months
or less.
Trade and other payables are initially measured at fair value
and are subsequently measured at amortised cost using the effective
interest rate method.
Financial liabilities and equity instruments issued by the Group
are classified in accordance with the substance of the contractual
arrangements entered into and the definitions of a financial
liability and an equity instrument. Where a financial liability is
extinguished and replaced by a convertible loan note and the
counterparty is acting in their capacity as a debt holder, the
liability is derecognised and replaced with a new convertible loan
note (see above). Any gain or loss arising on the extinguishment is
recorded in the income statement.
Equity
Equity instruments issued by the Company are recorded at the
proceeds received, net of any direct issue costs.
Investments and loans
Shares and loans in subsidiary undertakings are shown at cost.
Provisions are made for any permanent diminution in value when the
fair value of the assets is assessed as less than the carrying
amount of the asset. Intercompany loans are repayable on demand but
are included as non-current as the realisation is not expected in
the short term.
Segment reporting
Operating segments are reported in a manner consistent with the
internal reporting provided to the chief operating decision-maker.
The chief operating decision maker has been identified as the Chief
Executive Officer ('CEO').
2 Segmental Analysis
The Group has two reportable segments, an operating segment and
a head office segment, as described below. The operations and day
to day running of the business are carried out on a local level and
therefore managed separately. The operating segment reports to the
UK head office which evaluates performance, decide how to allocate
resources and make other operating decisions such as the purchase
of material capital assets and services. Internal reports are
generated and submitted to the Group's CEO for review on a monthly
basis.
The operations of the Group as a whole are the exploration for,
development and production of oil and gas reserves.
The two geographic reporting segments are made up as
follows:
Slovenia - exploration and development
UK - head office
The costs of exploration and development works are carried out
under shared licences with joint ventures and subsidiaries which
are co-ordinated by the UK head office. Segment revenue, segment
expense and segment results include transfers between segments.
Those transfers are eliminated on consolidation.
Information regarding the current and prior year's results for
each reportable segment is included below. Initial performance is
measured by the results that arise from the exploration and
development works carried out. Once producing, other production
performance measures are based on the production revenues achieved.
This is reported to the Group's CEO by the level of capitalised
exploration costs and the results from studies carried out at the
individual locations of the wells. The CEO uses these measures to
evaluate project viability within each operating segment. There is
no revenue in the current year from continuing operations.
2016 UK Slovenia eliminations Total
GBP '000s GBP '000s GBP '000s GBP '000s
Intercompany sales 160 (160) -
Total revenue 160 - (160) -
Administrative expenses (870) (665) 153 (1,382)
Material non-cash
items
Net finance costs (1,296) (5) 7 (1,294)
---------- ---------- ------------- ----------
Reportable segment
loss before tax (2,006) (670) - (2,676)
Taxation - - - -
----------
Reportable segment
loss after taxation (2,006) (670) - (2,676)
---------- ---------- ------------- ----------
Reportable segment
assets
Opening carrying value
of exploration assets - 32,711 - 32,711
Additions to exploration
assets - 1,779 - 1,779
Effects of exchange
rate movements - 3,051 - 3,051
Total plant and equipment 2 2 - 4
Total non-current
assets 2 37,543 - 37,545
Other assets 27,382 31 (24,228) 3,185
----------
Consolidated total
assets 27,384 37,574 (24,228) 40,730
---------- ---------- ------------- ----------
Reportable segmental
liabilities
Trade payables (84) (64) - (148)
External loan balances (6,162) - - (6,162)
Inter-group borrowings - (27,382) 27,382 -
Other liabilities (81) (472) - (553)
----------
Consolidated total
liabilities (6,327) (27,918) 27,382 (6,863)
2015 UK Slovenia elims Total
GBP '000s GBP '000s GBP '000s GBP '000s
Intercompany sales 276 - (276) -
Total revenue 276 - (276) -
Administrative expenses (1,466) (698) 276 (1,888)
Material non-cash items
Net finance costs (1,741) (15) - (1,756)
---------- ---------- ---------- ----------
Reportable segment loss
before tax (2,931) (713) - (3,644)
Taxation - - - -
----------
Reportable segment loss
after taxation (4,482) (1,116) (25) (3,644)
---------- ---------- ---------- ----------
Reportable segment assets
Carrying value of exploration
assets - 33,166 - 33,166
Additions to exploration
assets - 661 - 661
Effects of exchange rate
movements - (1,116) - (1,116)
Total plant and equipment 1 2 - 3
Total non-current assets 1 32,713 - 32,714
Other assets 19,180 368 (19,455) 93
----------
Consolidated total assets 19,181 33,081 (19,455) 32,807
---------- ---------- ---------- ----------
Reportable segmental liabilities
Trade payables (418) (90) - (508)
External loan balances (11,239) - - (11,239)
Inter-group borrowings - (20,662) 20,662 -
Other liabilities - (386) - (386)
----------
Consolidated total liabilities (11,657) (21,138) 20,662 (12,133)
3 Operating loss is stated after charging:
Year Year
ended ended
31 December 31 December
2016 2015
GBP '000s GBP '000s
Employee costs (see Note
4) 560 702
Termination payments - 279
Share based payment charge 188 147
Foreign Exchange differences - 3
Included within Admin Expenses
Audit Fees 60 59
Fees payable to the company's
auditor other services 2 3
------------- -------------
62 62
4 Employees and directors
a. Employees
The average number of persons employed by the Company and Group,
including Executive Directors, was:
Year Year
ended ended
31 December 31 December
2016 2015
Management and technical 6 7
============= =============
b. Directors and key management remuneration
Year Year
ended ended
31 December 31 December
2016 2015
Employees & Executive Directors GBP '000s GBP '000s
Wages and salaries 439 550
Termination payments - 279
Social security costs 81 113
Pension costs 37 36
Share-based payments 188 147
Taxable benefits 2 3
747 1,128
============= =============
c. Directors remuneration
2016 Salary/fees Pension 2016
contributions Total
GBP GBP GBP
Executive Directors
C Hutchinson 154,500 16 154,516
Non-executive Directors
C Carver 60,000 - 60,000
C Davies 30,000 - 30,000
N Moore 30,000 - 30,000
------------ --------------- ------------
Total 274,500 16 274,516
2015 Salary/fees Termination Termination 2015
payments payments Total
paid accrued
in the in the
year year
GBP GBP GBP
Executive Directors
L Reece * 146,667 127,318 151,828 425,813
C Hutchinson 137,500 - - 137,500
Non-executive Directors -
C Carver 60,000 - - 60,000
C Davies 30,000 - - 30,000
N Moore 30,000 - - 30,000
------------ --------------- ------------ --------
Total 404,167 127,318 151,828 683,313
*Len Reece resigned on 14 August 2015
The highest paid Director in the year ended 31 December 2016 was
Colin Hutchinson earning GBP154,516 (2015: L Reece earning
GBP146,667 excluding termination payments). Colin Hutchinson (2015:
Nil) is a member of the defined contribution pension scheme which
commenced in December 2016.
d. Directors' incentive share options
2016 As Granted/ As Date Share Exercise Exercise
at at Price Period
01-Jan-16 (Lapsed) 31-Dec-16 Granted at Price* Start End
Grant*
C Carver 1,328,443 - 1,328,443 30-Apr-13 16.40p 20p 30-Apr-16 30-Apr-23
C Carver - 13,985,884 13,985,884 05-May-16 1.58p 1.58p 05-May-19 06-May-26
C
Hutchinson 265,688 - 265,688 23-May-13 13.00p 20p 23-May-16 30-Apr-23
C
Hutchinson - 34,964,709 34,964,709 05-May-16 1.58p 1.58p 05-May-19 06-May-26
N Moore - 6,992,942 6,992,942 05-May-16 1.58p 1.58p 05-May-19 06-May-26
C Davies - 6,992,942 6,992,942 05-May-16 1.58p 1.58p 05-May-19 06-May-26
2015 As Impact Granted/ As Date Share Exercise Exercise
at of capital at Price Period
01-Jan-15 reorganisation (Lapsed) 31-Dec-15 Granted at Price Start End
Grant
L Reece 69,079,066 (65,625,113) - 3,453,953 30-Apr-13 16.40p 20p 30-Apr-16 30-Apr-23
C Carver 26,568,871 (25,240,428) - 1,328,443 30-Apr-13 16.40p 20p 30-Apr-16 30-Apr-23
C
Hutchinson 5,313,774 (5,048,086) - 265,688 23-May-13 13.00p 20p 23-May-16 23-May-23
N Moore 500,000 - (500,000) - 17-Nov-10 5.25p 7.313p 17-Nov-11 17-Nov-15
N Moore 500,000 - (500,000) - 17-Nov-10 5.25p 15p 17-Nov-11 17-Nov-15
C Davies 500,000 - (500,000) - 17-Nov-10 5.25p 7.313p 17-Nov-11 17-Nov-15
C Davies 500,000 - (500,000) - 17-Nov-10 5.25p 15p 17-Nov-11 17-Nov-15
* Post share consolidation. Refer to Note 18.
5 Finance income and costs recognised in the year
Year Year
ended ended
31 December 31 December
2016 2015
GBP '000s GBP '000s
Finance income
Income on bank deposits - 1
Foreign exchange movements
realised 6 3
Other income 153 -
Gain on EnQuest liability
restructuring - 741
159 745
============= =============
Finance cost
Interest payable on borrowings (51) (11)
Accretion charge on convertible
loan notes (1,380) (1,440)
Loan fees (16) (4)
Bank Charges (6) (1)
Unwinding of EnQuest liability - (186)
Foreign exchange movements
realised - (3)
Loss on extinguishment of
convertible loan notes - (856)
(1,453) (2,501)
============= =============
Please refer to Note 13 for a description of financing activity
during the year.
6 Income tax expense
Year Year
ended ended
31 December 31 December
2016 2015
GBP '000s GBP '000s
Current tax expense - -
Deferred tax expense - -
Total tax expense for the - -
year
============= =============
The difference between the total tax expense shown above and the
amount calculated by applying the standard rate of UK corporation
tax to the loss before tax is as follows:
Year Year
ended ended
31 December 31 December
2016 2015
GBP '000s GBP '000s
Loss for the year (2,676) (3,644)
Income tax using the Company's
domestic tax rate at 20%
(2015: 20%) (535) (729)
Effects of:
Net increase in unrecognised
losses c/f 666 782
Change in unrecognised temporary - -
differences
Effect of tax rates in foreign
jurisdictions 20 29
Other non-taxable items (195) (186)
Other non-deductible expenses 44 104
Total tax expense for the - -
year
============= =============
7 Loss per share
31 December 31 December
2016 2015
GBP '000s GBP '000s
Result for the year
Total loss for the year attributable
to equity shareholders 2,676 3,644
Weighted average number of Number Number
ordinary shares
For basic earnings per share 544,270,848 88,160,768
Loss per share (pence) (0.49) (4.13)
As the result for the year was a loss no diluted EPS is
disclosed. At 31 December 2016, potentially dilutive instruments in
issue were 973,469,828 (2015: 1,362,874,079). Dilutive shares arise
from share options and CLNs issued by the Company and from the
deferred consideration on the Trameta transaction.
8 Exploration and evaluation costs - Group
Exploration Costs - Group Slovenia Total
Cost
At 1 January 2015 33,166 33,166
Additions 661 661
Effects of exchange rate movements (1,116) (1,116)
At 31 December 2015 32,711 32,711
--------- --------
At 1 January 2016 32,711 32,711
Additions 1,779 1,779
Effects of exchange rate movements 3,051 3,051
At 31 December 2016 37,541 37,541
--------- --------
Carrying value
At 31 December 2016 37,541 37,541
--------- --------
At 31 December 2015 32,711 32,711
--------- --------
At 1 January 2015 33,166 33,166
--------- --------
For the purposes of impairment testing the intangible oil and
gas assets are allocated to the Group's cash-generating unit, which
represent the lowest level within the Group at which the intangible
oil and gas assets are measured for internal management purposes,
which is not higher than the Group's operating segments as reported
in Note 2.
In the year, the Company has accounted for the Trameta
transaction as the acquisition of land and pipeline rights.
relating to the exploration project. This acquisition has been
valued at GBP1.1 million, see Note 22.
The amounts for intangible exploration assets represent costs
incurred on active exploration projects. Amounts capitalised are
assessed for impairment indicators under IFRS 6 at each period end
as detailed in the Group's accounting policy. In addition, the
Group routinely reviews the economic model and reasonably possible
sensitivities and considers whether there are indicators of
impairment. As at 31 December 2016 and 2015 the net present value
significantly exceeded the carrying value of the assets. The key
estimates associated with the economic model net present value are
detailed in Note 1. The outcome of ongoing exploration, and
therefore whether the carrying value of intangible exploration
assets will ultimately be recovered, is inherently uncertain.
9 Investment in subsidiaries - Company
GBP 000s
At 1 January & 31
December 2015 14,340
=========
At 1 January 2016 14,340
Acquisition of Trameta 1,103
At 31 December 2016 15,443
=========
Name of company Principal Country of % of % of
activity incorporation share share
capital capital
held held
2016 2015
Ascent Slovenia
Limited
Arias Fabrega
& Fabrega Trust
Co. BVI Limited
Level 1, Palm
Grove House
Wickham's Cay
1, Road Town
Tortola, British Oil and Gas British Virgin
Virgin Islands exploration Islands 100% 100%
Ascent Resources
doo
Glavna ulica
7
9220 Lendava-Lendva Oil and Gas
Slovenia exploration Slovenia 100% 100%
Trameta doo Infrastructure Slovenia 100% -
Glavna ulica owner
7
9220 Lendava-Lendva
Slovenia
Ascent Resources
Netherlands
BV
c/o Ascent Resources
plc
c/o Taylor Wessing
LLP
5 New Street
Square
London EC4A Oil and Gas
3TW exploration Netherlands 100% 100%
All subsidiary companies are held directly by Ascent Resources
plc.
10 Trade and other receivables - Group
2016 2015
GBP '000s GBP '000s
VAT recoverable 26 31
Other receivables - 15
Prepayments & accrued
income 6 15
32 61
========== ==========
11 Trade and other receivables - Company
2016 2015
GBP '000s GBP '000s
VAT recoverable 4 14
Other receivables - 15
Prepayments & accrued
income 6 15
10 44
========== ==========
12 Deferred tax - Group & Company
2016 2015
GBP '000s GBP '000s
Group
Total tax losses (31,203) (27,896)
Unrecorded deferred
tax asset at 17% (2015:
20%) (5,305) (5,858)
---------- ----------
Company
Total tax losses (10,322) (9,834)
Unrecorded deferred
tax asset at 17% (2015:
20%) (1,755) (1,967)
---------- ----------
No deferred tax asset has been recognised in respect of the tax
losses carried forward as the recoverability of this benefit is
dependent on the future profitability of the Company, the timing of
which cannot reasonably be foreseen.
13 Borrowings - Group & Company
2016 2015
Group GBP '000s GBP
'000s
Current
Short-term loan facility - 461
Convertible loan notes - 10,778
- 11,239
---------- ---------
Company
Current
Short-term loan facility - 461
Convertible loan notes - 10,778
- 11,239
---------- ---------
Group & Company
---------- ---------
Non-current
Convertible loan notes 6,162 -
---------- ---------
6,162 -
---------- ---------
Convertible Loan Note 2016 2015
GBP '000s GBP
'000s
Liability brought forward 10,778 9,624
Interest expense 1,380 1,346
Modification to existing notes (8,140) -
- de-recognition November 2016
(viii)
Modification to existing notes 5,352 -
- recognition of amended note
- November 2016 (viii)
Fair value of new loan notes issued 690 -
in November 2016 (vii)
Convertible notes drawn in the
period (ii) - 500
Modification to existing notes
- de-recognition February 2015
(iii) - (9,983)
Modification to existing notes
- recognition of amended note
- February 2015 (iii) - 8,829
EnQuest debt liability restructured
into loan notes (iv) - 2,038
Modification to existing notes
- de-recognition November 2015
(v) - (12,021)
Modification to existing notes
- recognition of amended note
- November 2015 (v) - 10,449
Converted notes (ix) (3,745) (4)
Other movements (153) -
Liability at 31 December 6,162 10,778
---------- ---------
There were several transactions during 2015 & 2016 in
relation to CLNs:
(i) Background
The Group issued GBP5 million of 9 per cent 2013 CLNs during
2012 and 2013, convertible at any time at the discretion of the
holder, into Ordinary Shares at 200 Ordinary Shares per GBP1
principal of loan note, an effective conversion price of between
0.1p and 0.5p per Ordinary share depending on whether the balance
could be sold to independent third party investors. The CLNs were
due to mature in January 2015.
On 5 February 2014, the Group agreed with Henderson to create a
new GBP5 million class of 9 per cent CLNs with a maturity date of
December 2014, convertible at any time at the discretion of the
holder, into Ordinary Shares at 100 Ordinary Shares per GBP1
principal of loan note, an effective conversion price of 1 pence
per Ordinary share. The first GBP2 million available under these
2014 CLNs was drawn immediately with the balance intended for sale
to independent third party investors, with the intention that the
pricing of all the 2014 CLNs would be reset to the lowest price
paid by these new investors.
(ii) Variation of terms in 2014
On 8 September 2014, by when it had become clear that it would
not be possible to secure investment from new third party
subscribers for the GBP3 million balance outstanding under the 2014
CLNs, the Company agreed with Henderson to vary the terms of the
2014 CLNs whereby Henderson agreed to subscribe for a further GBP2
million in principal of 2014 CLNs convertible into Ordinary Shares
at 500 Ordinary Shares per GBP1 principal of loan note, an
effective conversion price of 0.2p. Additionally, Henderson was
granted security in the form of a charge over the Company's assets.
The variation to the loan note terms was considered to be an
inducement to convert and resulted in a one-off charge to the
income statement of GBP2,520,000 in 2014. The Company drew GBP1.5
million between September and December 2014. At 31 December 2014,
the carrying value of the loan notes stood at GBP9,624,000. On 5
February 2015, the Company drew the final GBP500,000 available
under the loan notes.
(iii) First variation of terms in 2015
On 19 February 2015, the shareholders and note holders approved
the variation of the terms on the 2013 and 2014 CLNs. In total GBP5
million had been drawn under the 2013 CLNs and GBP4 million had
been drawn under the 2014 CLNs; including accrued interest some
GBP10 million was due for repayment, in part on 23 December 2014
and in part on 31 January 2016. In return for extending the
maturity date of the CLNs to 19 November 2015 and terminating the
accrual of further interest, the Board of Ascent agreed to adjust
the conversion price in respect of both the 2013 and 2014 CLNs from
0.5p and 0.2p respectively to 0.1p (pre-share consolidation) for
all loan notes. The 2013 and 2014 CLNs were extinguished and
replaced with the amended convertible loan. On initial recognition,
the liability and equity element of the CLNs were fair valued. As
part of this transaction, a loss on extinguishment of GBP856,000
was recognised as a finance cost as the loan note holder was
considered to be acting in its capacity as a debt holder. The loan
was recognised at a discount rate of 15% and the interest charge
accretes over the loan period.
(iv) EnQuest convertible loan note
On 9 July 2015, the Company agreed to restructure other payables
due to EnQuest as deferred consideration on the acquisition of
their 48.75% interest in the Petišovci project in 2010. In total
GBP3,024,000 was due to be payable to EnQuest on 19 December 2015.
As at July 2015, the liability stood at GBP2,779,000 and would have
accreted this up to the full amount payable during the year had
this restructuring not occurred. The entire debt payable was
restructured into a GBP2,038,000 convertible loan note. The terms
of these CLNs are identical to the GBP4 million of notes issued in
2015 to Henderson and benefit from security over the Company's
shareholding in Ascent Slovenia Limited which owns an interest in
the Petišovci concession. On initial recognition, the liability and
equity element of the CLNs were fair valued. The loan was
recognised at a discount rate of 15% and the interest charge
accretes over the loan period. The extinguishment of the previous
liability gave rise to a GBP741,000 gain recorded in finance income
as EnQuest was considered to be acting in its capacity as a debt
holder.
(v) Second variation of loan note terms in 2015
In November 2015, prior to the notes falling due for repayment,
the holders of the CLNs agreed to extend the maturity to 19
November 2016 in exchange for the conversion price being rebased
from 0.1 pence to 0.05 pence. The carrying value of the CLN
liabilities at 19 November 2015 was GBP12,021,000. The CLNs were
extinguished and replaced with amended convertible loans. On
initial recognition, the liability and equity element of the CLNs
were fair valued. The loans were recognised at a discount rate of
15% (equating to GBP10,449,000) and the interest charge will
accrete over the loan period.
The fair value attributable to the equity portion were recorded
in equity (GBP1,572,000), representing the fair value of the
conversion option and the difference between the previous and new
liability which represented a capital contribution by shareholders
as the loan note holders were considered to be acting in their
capacity as shareholders. The loan amount was convertible at any
time into ordinary shares of the Company.
Unlike the previous position in relation to the 2013 and 2015
CLN's the notes are no longer subject to a waiver of the provisions
of Rule 9 of the City Code on Takeovers and Mergers. Accordingly,
if Henderson or any other holder of the 2013 and 2015 CLN's
exercise their right of conversion and they hold equal to or more
than 30 per cent of the total voting rights of the Company, such
holder will be required to make a mandatory bid for the remaining
ordinary shares in the capital of the Company not held by them.
(vi) Capital reorganisation - November 2015
On 30 November 2015 shareholders approved a placing, amendment
to convertible loan note terms and a capital reorganisation. The
capital reorganisation reduced the nominal share price from 0.1
pence to 0.01 pence and subsequently to consolidate ordinary shares
by a factor of 20 thereby increasing the nominal share price to 0.2
pence. The conversion price on the loan notes was similarly
adjusted by a factor of 20 to 1 pence.
(vii) Issue of loan notes pursuant to the placing - November 2016
On 27 October 2016 shareholders approved a placing which
included the issuance of GBP1,050,000 of new convertible loan notes
('The 2016 CLN's'), GBP50,000 of which were subscribed for by the
Directors of the Company. The notes were to be on identical terms
to the 2013 & 2014 CLNs.
On initial recognition, the liability and equity element of the
CLNs have been fair valued. The loans have been recognised at a
discount rate of 15% (equating to GBP690,000) and the interest
charge will accrete over the loan period.
The fair value attributable to the equity portion has been
recorded in equity (GBP360,000), representing the fair value of the
conversion option. The loan amount is convertible at any time into
ordinary shares of the Company, GBP1million of which was converted
post period end.
(viii) Variation of loan note terms in 2016
In November 2016, prior to the notes falling due for repayment,
the holders of the CLNs agreed to extend the maturity to 19
November 2019 with no adjustment to the conversion price or any
other terms. The carrying value of the CLN liabilities at 19
November 2016 was GBP8,140,000. The CLNs were extinguished and
replaced with amended convertible loans. On initial recognition,
the liability and equity element of the CLNs have been fair valued.
The loans have been recognised at a discount rate of 15% (equating
to GBP5,352,000) and the interest charge will accrete over the loan
period.
The Directors consider that the carrying amount of the loans
approximates to their fair value. The weighted average coupon
interest rate of the convertible loan is 0% as interest ceased to
accrue on the convertible notes in January 2015.
The fair value attributable to the equity portion has been
recorded in equity (GBP2,788,000) representing the fair value of
the conversion option. The loan amount is convertible at any time
into ordinary shares of the Company.
The notes are not subject to a waiver of the provisions of Rule
9 of the City Code on Takeovers and Mergers. Accordingly, if
Henderson or any other holder of the 2013 and 2015 CLN's exercise
their right of conversion and the hold equal to or more than 30 per
cent of the total voting rights of the Company, such holder will be
required to make a mandatory bid for the remaining ordinary shares
in the capital of the Company not held by them.
(ix) Conversions
There were a number of loan note conversions carried out during
the periods:
2016 2016 2015 2015
Notes converted Notes converted
(including (including
rolled Shares rolled Shares
up interest) issued up interest) issued
January - - - -
February - - - -
March - - 139 138,520
April 1,088,390 108,838,990 473 473,030
May 463,113 46,311,258 - -
June 1,273,923 127,392,263 - -
July - - 244 244,392
August 845,053 84,505,321 - -
September 563 56,312 2,747 2,746,912
October - - - -
November 73,455 7,345,491 - -
December 357 35,702 1,014 101,362
---------------- ------------ ---------------- ----------
Total 3,744,853 374,485,337 4,616 3,704,216
(x) GBP7 million short- term funding facility
On 12 May 2015, the Company announced that it had agreed a GBP7
million loan facility (the 'Loan') for general corporate purposes
with Henderson. The Loan was capable of being drawn at any time
from signing to 30 June 2016 at the discretion of Henderson.
The Loan accrued interest at the rate of 7.5% per annum on the
amount drawn and this was added to the amount of the Loan. The Loan
was subject to a drawdown fee of 1.75% per tranche which was
deducted from the funds advanced. The Loan was also subject to a
repayment fee of 1.25% on any amounts repaid by the Company. The
balance outstanding was repayable on demand at any time.
As at 31 December 2015 the Company had drawn GBP450,000 from the
facility on which GBP11,000 of interest had accrued; a further
GBP250,000 was drawn from this facility during January 2016 and
another GBP100,000 during March 2016.
In November 2016 following the approval of a placing by
shareholders at a general meeting the outstanding balance of
GBP871,510 was repaid in full. This consisted of GBP800,000
principal, GBP61,510 of accrued interest and a GBP10,000 repayment
fee.
14 Provisions - Group
GBP000s
At 1 January 2015 410
Foreign exchange movement (24)
At 31 December 2015 386
--------
At 1 January 2016 386
Foreign exchange movement 61
At 31 December 2016 447
--------
The amount provided for decommissioning costs represents the
Group's share of site restoration costs for the Petišovci field in
Slovenia. The most recent estimate is that the year-end provision
will become payable after 2022.
15 Trade and other payables - Group
2016 2015
GBP '000s GBP '000s
Trade payables 147 166
Tax and social security
payable 10 22
Other payables - 152
Accruals and deferred income 97 168
254 508
========== ==========
16 Trade and other payables - Company
2016 2015
GBP '000s GBP '000s
Trade payables 84 114
Tax and social security
payable 10 22
Other Payables - 152
Accruals and deferred income 70 130
164 418
========== ==========
17 Called up share capital
2016 2015
GBP '000s GBP '000s
Authorised
10,000,000,000 ordinary shares
of 0.2pence each 10,000 10,000
Allotted, called up and fully
paid
1,084,074,224 (2015: 157,306,900)
ordinary shares of 0.2 pence
each
(2015: 0.2p each) and 1,737,110,494
(2015: 1,737,110,494) deferred
shares of 0.09p each 3,732 1,878
Reconciliation of share capital movement 2016 2015
Number Number
At 1 January 157,306,900 1,458,507,909
-------------- ----------------
Capital Reorganisation - (1,650,255,225)
Loan note conversions 374,485,337 3,704,216
Placings
April 35,714,294 -
May - 275,000,000
June 166,666,666 -
October & November 349,901,027 70,350,000
At 31 December 1,084,074,224 157,306,900
============== ================
Shares issued during the year
There were a number of conversion requests processed during the
year; for the details please see Note 13.
The Company also raised funds through placings during the
year:
-- On 12 April 2016, the Company raised GBP500,000 (GBP477,500
net of costs) via the Placing of 35,714,285 Ordinary Shares with
investors using the PrimaryBid.com platform.
-- On 7 June 2016, the Company raised GBP500,000 (GBP477,500 net
of costs) via the Placing of 83,333,333 Ordinary Shares with
investors using the PrimaryBid.com platform.
-- On 15 June 2016, the Company raised GBP500,000 (GBP500,000
net of costs) via the Placing of 83,333,333 Ordinary Shares to
Henderson Global Investors.
-- On 31 October 2016, the Company raised GBP2,627,500
(GBP2,402,434 net of costs) via the Placing of 262,750,000 Ordinary
Shares.
-- On 7 November 2016, the Company raised GBP871,510 (GBP871,510
net of costs) via the Placing of 87,151,027 Ordinary Shares to
Henderson Global Investors.
Shares issued during the prior year
There were a number of conversion requests processed during the
prior year; for the details please see Note 13.
The Company also raised funds through placings during the prior
year:
-- In May 2015, the Company raised GBP550,000 (GBP525,250 net of
costs) via the Placing of 275,000,000 Ordinary Shares with
investors using the PrimaryBid.com platform.
-- In November 2015, the Company raised GBP703,000 (GBP671,843
net of costs) via the Placing of 70,350,000 Ordinary Shares with
investors using the PrimaryBid.com platform.
Reserve description and purpose
The following describes the nature and purpose of each reserve
within owners' equity:
-- Share capital: Amount subscribed for share capital at nominal value.
-- Equity reserve: Amount of proceeds on issue of convertible
debt relating to the equity component and contribution on
modification of the convertible loan notes, i.e. option to convert
the debt into share capital.
-- Share premium: Amounts subscribed for share capital in excess
of nominal value less costs of shares associated with share
issues.
-- Share-based payment reserve: Value of share options granted
and calculated with reference to a binomial pricing model. When
options lapse or are exercised, amounts are transferred from this
account to retained earnings.
-- Translation reserve: Exchange movements arising on the
retranslation of net assets of operation into the presentation
currency.
-- Accumulated losses: Cumulative net gains and losses recognised in consolidated income.
18 Operating lease arrangements
At the balance sheet date, the Group had no outstanding
commitments under non-cancellable operating leases (2015:
GBPnil).
19 Exploration expenditure commitments
In order to maintain an interest in the oil and gas permits in
which the Group is involved, the Group is committed to meet the
conditions under which the permits were granted and the obligations
of any joint operating agreements. The timing and the amount of
exploration expenditure commitments and obligations of the Group
are subject to the work programmes required as per the permit
commitments. This may vary significantly from the forecast
programmes based upon the results of the work performed. Drilling
results in any of the projects may also cause variations to the
forecast programmes and consequent expenditure. Such activity may
lead to accelerated or decreased expenditure. It is the Group's
policy to seek joint operating partners at an early stage to reduce
its commitments.
At 31 December 2016, the Group had exploration and expenditure
commitments of GBP Nil (2015 - Nil).
20 Related party transactions
a. Group companies - transactions
2016 2016 2015 2015
Cash Services Cash Services
Ascent Slovenia Limited 541 183 840 -
Ascent Resources doo 275 212 318 344
816 395 1,158 344
----- --------- ------ ---------
b. Group companies - balances
2016 2016 2015 2015
Cash Services Cash Services
Ascent Slovenia Limited 16,690 3,175 13,445 2,572
Ascent Resources doo 2,369 1,735 1,790 1,301
19,329 4,910 15,235 3,873
------- --------- ------- ---------
c. Directors
Key management are those persons having authority and
responsibility for planning, controlling and directing the
activities of the Group. In the opinion of the Board, the Group's
key management are the Directors of Ascent Resources plc.
Information regarding their compensation is given in Note 4.
2016
In October 2016, the Directors subscribed for GBP50,000 of
convertible loan notes in connection with the Placing which raised
GBP4.5 million (GBP3.5 million equity and GBP1m convertible loan
notes) before costs. Clive Carver, Cameron Davies and Nigel Moore
subscribed for GBP13,333 each with Colin Hutchinson subscribing for
GBP10,001.
Clive Carver is a director of Darwin Strategic Limited, which is
the owner of PrimaryBid through which the Company raised GBP1.0
million in equity during 2016. Refer to Note 17 for further share
issues.
2015
Clive Carver is a director of Darwin Strategic Limited, which is
the owner of PrimaryBid through which the Company raised GBP1.2
million in equity during 2016. Refer to Note 17 for further share
issues.
d. Henderson Global Investors
-- Advanced GBP350,000 under the short-term loan facility during January and March 2016.
-- Converted loan notes with a face value of GBP3,137,068 during
the year into 434,297,145 Ordinary Shares.
-- Subscribed GBP500,000 for 83,333,333 shares in June 2016.
-- Subscribed GBP500,000 for 83,333,333 shares in June 2016.
-- Subscribed GBP1,000,000 for 100,000,000 shares in October 2016.
-- Subscribed GBP871,510 for 87,151,027 shares in November 2016.
-- In November 2016, the Company repaid in full the balance of
GBP871,150 due under the GBP7 million facility as described in Note
13.
-- Henderson Global Investors provided GBP450,000 of short-term
working capital funding in 2015
21 Events subsequent to the reporting period
Recompletion of Pg-10
On 30 January 2017, the Company announced that it had
recompleted well Pg-10 and the well had flowed at a peak stabilised
rate of 8.8 mmscfd.
Placing on PrimaryBid
On 13 February 2017, the Company announced that it had raised
GBP2,987,750 (GBP2,838,363 net of costs) through an underwritten
offer using the PrimaryBid.com platform. The fundraise included a
subscription for 270,270 shares by Colin Hutchinson, Chief
Executive. On 16 February 161,500,000 new ordinary shares were
issued and admitted to trading.
Conversion of loan notes
Since the year end a total of GBP4,065,607 of convertible loan
notes have been converted into 424,912,491 ordinary shares.
22 Share based payments
The Company has provided the Directors, certain employees and
institutional investors with share options and warrants
('options'). Options are exercisable at a price equal to the
closing market price of the Company's shares on the date of grant.
The exercisable period varies and can be up to seven years once
fully vested after which time the option lapses.
The share options below have been rebased following the capital
reorganisation which was completed during 2016. All options have
been adjusted by a factor of 20. The comparatives have been
restated to show like for like.
Details of the share options outstanding during the year are as
follows:
Shares Weighted
Average
price
(pence)
Outstanding at 1 January
2016 5,935,738 16.88
Granted during the year 78,828,006 1.58
Expired during the year (250,000) 170.00
Outstanding at 31 December
2016 84,513,744 2.94
Exercisable at 31 December
2016 13,185,738 20.00
Outstanding at 1 January
2015 6,710,738 39.62
Expired during the year (775,000) 207.58
Outstanding at 31 December
2015 5,935,738 24.07
Exercisable at 31 December
2015 250,000 170.00
The value of the options is measured by the use of a binomial
pricing model. The inputs into the binomial model made in 2016 were
as follows:
Share price at grant 1.32p
date - 1.54p
Exercise price 1.54p
- 2.00p
Volatility 50%
Expected life 3-5 years
Risk free rate 0.5%
Expected dividend
yield 0%
Expected volatility was determined by calculating the historical
volatility of the Group's share price over the previous 5 years.
The expected life is the expiry period of the options from the date
of issue.
Options outstanding at 31 December 2016 have an exercise price
in the range of 1.58p and 20p (31 December 2015: 20p and 240p) and
a weighted average contractual life of 9.1 years (31 December 2015:
7.0 years).
Trameta acquisition
During the year, the Company acquired Trameta doo which owned
land and access rights over the export pipeline. Consideration for
the transaction was 75 million ordinary shares which vest in four
tranches on the one year anniversary of various conditions being
met. An option over a further 7.5 million ordinary shares at an
exercise price of 2pence is valid for three years from November
2016 when the second condition was met.
The 75 million shares have been valued using the Black-Scholes
model under the assumption that 100% of the shares will vest as
management expects all four of the vesting criteria to be
successfully achieved. The conditions have been met for the first
two tranches, being completion of the SPA and certification of the
pipeline.
The value of the options is measured by the use of a binomial
pricing model. The inputs into the binomial model in respect of the
Trameta consideration shares were as follows:
Share price at grant
date 1.425p
Exercise price Nil
101% -
Volatility 130%
Expected life 1 -3 years
Risk free rate 1.75%
Expected dividend
yield 0%
Expected volatility was determined by calculating the historical
volatility of the Group's share price over the previous comparable
periods. The expected life is the expiry period of the options from
the date of issue.
The value of the shares and options was GBP1.1 million which has
been recognised as an addition to exploration and evaluation costs,
see note 8.
23 Financial risk management
Group and Company
The Group's financial liabilities comprise CLNs, other loans and
trade payables. All liabilities are measured at amortised cost.
These are detailed in Notes 13, 15 and 16.
The Group has various financial assets, being trade receivables
and cash, which arise directly from its operations. All are
classified as loans and receivables. These are detailed in Notes 10
and 11.
The main risks arising from the Group's financial instruments
are credit risk, liquidity risk and market risk (including interest
risk and currency risk). The risk management policies employed by
the Group to manage these risks are discussed below:
a. Credit risk
Credit risk refers to the risk that a counterparty will default
on its contractual obligations resulting in financial loss to the
Group.
The Group does not have any significant credit risk
exposure.
The Group makes allowances for impairment of receivables where
there is an identified event which, based on previous experience,
is evidence of a reduction in the recoverability of cash flows.
The credit risk on liquid funds (cash) is considered to be
limited because the counterparties are financial institutions with
high and good credit ratings assigned by international credit
rating agencies in the UK.
The carrying amount of financial assets, trade receivables and
cash held with financial institutions recorded in the financial
statements represents the exposure to credit risk for the
group.
At Company level, there is the risk of impairment of
intercompany receivables if the full amount is not deemed as
recoverable from the relevant subsidiary company. These amounts are
written down when their deemed recoverable amount is deemed less
than the current carrying value.
b. Market risk
(i) Currency risk
Currency risk refers to the risk that fluctuations in foreign
currencies cause losses to the Company.
The Group's operations are predominantly in Slovenia. Foreign
exchange risk arises from translating the euro earnings, assets and
liabilities of the Ascent Resources doo and Ascent Slovenia Limited
into sterling. The Group manages exposures that arise from receipt
of monies in a non-functional currency by matching receipts and
payments in the same currency.
The Company often raises funds for future development through
the issue of new shares in sterling. These funds are predominantly
to pay for the Company's exploration costs abroad in Euros. As such
any sterling balances held are at risk of currency fluctuations and
may prove to be insufficient to meet the Company's planned euro
requirements if there is devaluation.
Foreign currency sensitivity analysis
The Group is mainly exposed to the currency of the European
Union (the euro).
The Group operates internationally and is exposed to currency
risk on sales, purchases, borrowings and cash and cash equivalents
that are denominated in a currency other than sterling. The
currencies giving rise to this are the euro and the United States
dollar.
Foreign exchange risk arises from transactions and recognised
assets and liabilities.
The Group does not use foreign exchange contracts to hedge its
currency risk.
Sensitivity analysis
The following table details the Group's sensitivity to a 10%
increase and decrease in sterling against the stated currencies.
10% is the sensitivity rate used when reporting foreign currency
risk internally to key management personnel and represents the
management's assessment of the reasonably possible change in
foreign exchange rates. The sensitivity analysis comprises cash and
cash equivalents held at the balance sheet date. A positive number
below indicates an increase in profit and other equity where
sterling weakens 10% against the relevant currency.
Euro currency US$ Currency
change change
Year Year Year Year
ended ended ended ended
31 December 31 December 31 December 31 December
2016 2015 2016 2015
Group GBP000s GBP000s GBP000s GBP000s
Profit or loss
10% strengthening of
sterling 47 89 2 2
10% weakening of sterling (58) (109) (2) (2)
Equity
10% strengthening of
sterling (1,983) (1,616) (3) -
10% weakening of sterling 2,424 1,976 4 -
Company
Profit or loss
10% strengthening of
sterling (13) (4) 2 2
10% weakening of sterling 16 5 (2) (2)
Equity
10% strengthening of
sterling (2,687) (2,201) (3) -
10% weakening of sterling 3,288 2,690 4 -
(ii) Interest rate risk
Interest rate risk refers to the risk that fluctuations in
interest rates cause losses to the Company.
The Group and Company have no exposure to interest rate risk
except on cash and cash equivalent which carry variable interest
rates. The group carries low units of cash and cash equivalents and
the group and company's monitor the variable interest risk
accordingly.
At 31 December 2016, the Group and Company has GBP loans valued
at GBP6,162,000 rates of 0% per annum.
At 31 December 2015, the Group and Company has GBP loans valued
at GBP10,778,000 rates of 0% per annum and loans of GBP450,000 at
7.5% per annum.
c. Liquidity risk
Liquidity risk refers to the risk that the Company runs low on
cash resources to meet working capital requirements.
The Group and Company manages its liquidity requirements by
using both short- and long-term cash flow projections, supplemented
by maintaining debt financing plans and active portfolio
management. Ultimate responsibility for liquidity risk management
rests with the Board of Directors, which has built an appropriate
liquidity risk management framework for the management of the
Group's short-, medium- and long-term funding and liquidity
management requirements.
The Group closely monitors and manages its liquidity risk. Cash
forecasts are regularly produced and sensitivities run for
different scenarios (see Note 1).
For further details on the Group's liquidity position, please
refer to the going concern paragraph in Note 1 of these
accounts.
Maturity analysis of financial 2016 2015
liabilities
GBP GBP
'000s '000s
Less than six months - loans
and borrowings - 461
Less than six months - trade
and other payables 256 508
Between six months and a
year - 10,778
Between one and three years 6,162 -
d. Capital management
The Group manages its shares and CLN's as capital.
e. There are no externally imposed capital requirements. Fair value of financial instruments
Set in the foregoing is a comparison of carrying amounts and
fair values of the Group's and the Company's financial
instruments:
Carrying Fair Carrying Fair
amount Value Value
of financial of financial
instruments instruments
Year Year Year Year
ended ended ended ended
31 December 31 December 31 December 31 December
2016 2016 2015 2015
Financial assets
Cash and cash equivalents 3,153 3,153 32 32
Trade receivables - - - -
Financial liabilities
Trade Creditors 147 147 171 171
Convertible loans
at fixed rate 6,162 6,162 10,778 10,778
Capital Management Year Year Year Year
- Company ended ended ended ended
31 December 31 December 31 December 31 December
2016 2016 2015 2015
Carrying Fair Carrying Fair
Value Value
of financial of financial
instruments instruments
Financial assets
Cash and cash equivalents 3,154 3,154 27 27
Trade receivables - - 19,152 19,152
Financial liabilities
Trade Creditors 84 84 114 114
Convertible loans
at fixed rate 6,162 6,162 10,778 10,778
Convertible loan at fixed rate
Fair value of convertible loans has been determined based on
tier 3 measurement techniques. The fair value is estimated at the
present value of future cash flows, discounted at estimated market
rates. Fair value is not significantly different from carrying
value.
Trade and other receivables/payables & intercompany
receivables
All trade and other receivables and payables have a remaining
life of less than one year. The ageing profile of the Group and
Company receivable and payables are shown in Notes 10, 11, 15 and
16.
Cash and cash equivalents
Cash and cash equivalents are all readily available and
therefore carrying value represents a close approximation to fair
value.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR UOOARBVASUAR
(END) Dow Jones Newswires
April 24, 2017 02:00 ET (06:00 GMT)
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