TIDMNPE
RNS Number : 2558P
Nautical Petroleum PLC
23 March 2009
?
+----------------------------------------+----------------------------------------+
| Immediate Release | 23 March 2009 |
+----------------------------------------+----------------------------------------+
Nautical Petroleum plc
("Nautical" or "the Company")
Interim Results
for the six month period to 31 December 2008
Nautical Petroleum plc (AIM: NPE), the independent Exploration and Production
company specialising in the development of heavy oil assets in the UK and
Europe, today announces its Interim Results for the six month period to 31
December 2008.
Operational highlights:
* Ocean Bottom Cable (OBC) seismic surveys completed over Mariner
* Acquired High Resolution 2D seismic over Scylla
* Drilled appraisal well on Kraken
* Awarded 7 new blocks in the 25th Licensing round in the North Sea and a new
licence in France
Financial highlights:
* Strong cash position of GBP21.4 million at 31 December 2008
* Completed farmouts on Kraken, Hydra and Selkie for GBP11.5 million of cash and
past cost contribution
* GBP7.5 million spent on portfolio development
Cornerstone Assets:
Mariner
* 23mmbo net proven and probable reserves
* 44mmbo net best estimate contingent resources
Kraken
* 37mmbo net best estimate contingent resources
Commenting on the developments in the period, Steve Jenkins, Chief Executive of
Nautical said:
"The interim period to December 2008 marked further progress for Nautical,
completing a highly successful farm out programme to minimise our cash outflows
and further progressing our cornerstone assets, Kraken and Mariner.
Nautical is well positioned with excellent resource and reserve potential and
sufficient cash to bring our cornerstone assets to field development plan
submission."
For further information please contact:
+-----------------------------------------------------+---------------------------+
| Nautical Petroleum plc | 020 7550 4890 |
+-----------------------------------------------------+---------------------------+
| Steve Jenkins, Chief Executive Officer | |
| Paul Jennings, Commercial Director | |
| Will Mathers, Chief Financial Officer | |
+-----------------------------------------------------+---------------------------+
| | |
+-----------------------------------------------------+---------------------------+
| Buchanan Communications | 020 7466 5000 |
+-----------------------------------------------------+---------------------------+
| Ben Willey | |
| Ben Romney | |
+-----------------------------------------------------+---------------------------+
| | |
+-----------------------------------------------------+---------------------------+
| KBC Peel Hunt Ltd, Nominated Advisor and Broker | 020 7418 8900 |
+-----------------------------------------------------+---------------------------+
| Jonathan Marren | |
+-----------------------------------------------------+---------------------------+
| Matt Goode | |
+-----------------------------------------------------+---------------------------+
CHIEF EXECUTIVE'S STATEMENT
Nautical is pleased to report another period of progress to its shareholders in
what have been increasingly challenging global economic conditions. Against the
backdrop of $40 to $50 oil, Nautical is on track to bring Mariner and Kraken to
development and with cash of GBP21.4 million has the resources to do so.
Significant progress in challenging times
During the period Nautical targeted the appraisal of its cornerstone assets by
drilling an operated well on Kraken and participating in two seismic surveys
over Mariner. On the exploration front, an operated seismic survey was acquired
over the Scylla lead (Blocks 8/5 and 9/1). In the autumn a planned exploration
well on the Hydra block encountered an extensive period of challenging weather
conditions, resulting in the postponement of the well to the summer of 2009.
The period saw a drop of $105 per barrel in the Brent spot price, and the
precipitous decline of world equity markets. Nautical was partially shielded,
having preserved its cash (GBP21.4 million) and by farming out wells to mitigate
the exposure to the high cost operating environment (especially rig rates),
enabling us to maintain planned activity levels.
Nautical has sufficient funds to take both Kraken and Mariner to Field
Development Plan (FDP) submission and to carry out planned activity on our other
assets and remains well placed to realise value from the extensive and
burgeoning asset base through sound portfolio and cash management.
Efficient portfolio management
Whilst the emphasis remains on the progression of Kraken and Mariner to FDP
submission, the portfolio has a third leg of material appraisal and exploration
opportunities, which has been supplemented by recently added production.
The combined portfolio, including recent awards in the 25th Seaward Licensing
Round and new and pending awards in France, now totals 24 blocks (18 licences),
with Nautical operating 12 blocks (8 licences). We aim to continue to secure
attractive farmins at significant premiums enabling us to mitigate risk whilst
maintaining a high level of seismic and drilling activity.
Mariner - high activity levels from a committed operator
During the period the joint ventures' energy was focused on characterising and
defining the areal distribution of the shallower Heimdal Sandstone reservoir and
enhancing our already detailed characterisation of the deeper, Paleocene Maureen
Sandstone reservoir. This was achieved by acquiring two seismic surveys; firstly
151 square kilometres of 3D seismic data followed by an ocean bottom cable (OBC)
survey. The 3D seismic is currently being processed and has shown an improvement
in imaging both reservoirs and the fault fabric. Further significant enhancement
has been evidenced by the initial processing of the OBC data.
The data from both surveys will be interpreted in summer 2009 and should
markedly increase the joint ventures' understanding of both reservoirs,
endorsing this proven methodology previously applied to the StatoilHydro ASA
operated, Grane field in Norway.
Having successfully passed through a major decision gate in October 2008 the
operator will interpret both surveys to further define, delineate and
characterise both reservoirs. This substantial subsurface effort will be
utilised in reservoir simulation prior to the concept selection stage and front
end engineering and design (FEED) studies, leading to FDP submission which is
now scheduled to be in 2011, although this could be accelerated in response to
improving market conditions.
The resultant increase in definition of the Mariner discovery is expected to
raise the best estimate contingent resources in the Heimdal reservoir from
180mmbo (44 mmbo net to Nautical within the block) whilst confirming the
reserves volume in the Maureen Sandstone reservoir. No new drilling is required
prior to project sanction since there is sufficient existing test data over both
reservoirs.
Kraken
Nautical's second operated appraisal well on the Kraken discovery was spudded on
21 September 2008. The well was drilled on the northern east flank, 3.3 km ENE
of the successful 9/2b-2 well, and 5km from the original 9/2-1A discovery well.
The well was designed to intersect the oil water contact and investigate the
upside (P10) resources.
The Heimdal Sandstone proved to be absent. However, there are still substantial
best estimate contingent resources (106 mmbo gross, 37 mmbo net) in the core
south and west areas of Kraken. Efforts are now focused on defining the
reservoir distribution over this large accumulation, mainly through the further
re-processing and interpretation of the existing seismic data.
A recently acquired controlled source electromagnetic (CSEM) line will be
interpreted to further increase our knowledge of the sand and hydrocarbon
distribution. Dependent on the outcome of a series of subsurface studies further
data (seismic, EM or drilling) may be acquired prior to submitting the FDP to
the Department of Energy and Climate Change (DECC) at the end of 2009. The joint
venture is considering a range of development options (including phased, subsea,
and fixed platform) leading to anticipated first oil in 2012.
In order to mitigate risk Nautical farmed out a further gross 10% equity to
Canamens Energy North Sea Limited in exchange for back costs and a carry on the
September well. On FDP submission an additional cash bonus will be paid to
Nautical. The combination of the farmout to Canamens and the previously
negotiated farmout to Celtic Oil Limited reduced Nautical's financial exposure
in the 9/2b-3 appraisal well to zero, whilst retaining operatorship and
maintaining a significant interest in this large oil discovery.
Active in both exploration and production
In addition to progressing Mariner and Kraken, Nautical carried out significant
work on the existing portfolio, added 7 full/part blocks in the 25th Seaward
Licensing Round, added to the French onshore portfolio and acquired a small
interest in a UK onshore producing asset.
Nautical's position on the East Shetland Platform was strengthened with the
award of 5 full / part blocks in the 25th Seaward Licensing Round. These new
blocks are adjacent to or in close proximity to our existing cluster of assets
consisting of the Mariner and Kraken discoveries, the Hydra prospect and the
Scylla leads.
Operational activity during the period was concentrated on this area,
specifically the acquisition of 725 km of high resolution 2D seismic over the
Scylla leads and adjacent blocks. The data has been processed and will be
interpreted prior to the initiation of a farmout campaign.
Nautical started to drill a well on the Hydra Prospect (Block 3/27a) during
November 2008. Unfortunately, very poor weather prevented the well from
spudding. Due to the high standby costs that would have been incurred if the rig
had been held until drilling could commence, the joint venture demobilised the
rig, postponing the well until summer 2009. Our exposure for this upcoming well
is expected to be less than GBP1 million due to our farmouts.
Elsewhere, Nautical was awarded two further blocks in the 25th Seaward Licensing
Round; 8/25b and 15/21g in the Moray Firth, the latter containing the Spaniards
lead. Also, in the Moray Firth, the joint venture is conducting development
studies over the Tudor Rose discovery (Block 14/30a).
Similarly, to the west of Britain in the East Irish Sea Basin, the seismic
interpretation has confirmed the large Merrow prospect at both Triassic,
Ormskirk and Permian Collyhurst levels. The joint venture may acquire further
seismic data before deciding to drill a directional well from onshore.
At the end of 2008 Nautical purchased its first production (10% of the UK
onshore Keddington Field PEDL 005) from Egdon Resources plc. We see considerable
upside in this field and aim to boost production in 2009. To this end the joint
venture has just completed a workover of the Keddington 2 well and may drill a
sidetrack in the summer.
Onshore France, the Pontenx licence (Aquitaine Basin) was awarded on 19
December 2008 (Nautical 20%) and we will commence marketing the large Audignon
Ridge gas prospect (St Laurent Permit Nautical 22%) in 2009.
Financial Results
Nautical's strong cash management continued during the period, with GBP21.4
million of cash and deposits held in Nautical accounts and GBP2.4 million held
in joint venture accounts at 31 December 2008. GBP11.5 million of cash and past
cost contribution was received during the period from farmouts, of which GBP7.5
million was spent on the continued exploration and evaluation of our assets.
The Company made a loss after taxation of GBP1.4 million for the six months to
31 December 2008, including a net tax credit of GBP0.4 million, finance income
of GBP0.9 million, a GBP2.4 million impairment charge relating to the Extended
Well Test equipment and a gain on disposal arising from farmouts of GBP0.5
million.
Farmouts were completed on 9/2b Kraken, 3/27 Hydra and 8/25 Selkie during the
period with receipts in excess of the carrying value of the assets disposed of,
resulting in a net gain of GBP0.4 million. The successful farmouts have lead to
both a GBP0.6 million taxable capital gain and a deferred tax credit of GBP1.0
million, resulting in the net credit of GBP0.4millon to the income statement.
Finance income of GBP0.9 million includes a non cash credit of GBP0.4 million
from an adjustment to the non-current conditional payments on the Mariner
assets.
A concerted effort has been undertaken to utilise the Extended Well Test
Equipment over the past two years, however this has not been successful. As a
consequence the decision has been made to impair the asset with a GBP2.4 million
non-cash charge to the income statement.
Managing the Current Challenging Market
Nautical is not immune to the global banking crisis and resultant recession,
which have been major contributors to the falling oil price, weak equity markets
and choking off credit availability. However, amongst our peers Nautical is well
capitalised, having raised funds in 2007, preserved our cash through farmouts
and minimised our obligations.
Nautical is well placed to take advantage of falling costs, which have followed
the oil price down. Semi submersible rig rates have already reduced from over
$400,000 to less than $250,000 per day and have further to go when current
contracts expire. Similarly, development costs are declining as steel prices
fall and construction yards have gaps in their order book.
Nautical will seek to 'lock in' these lower costs in the development of both
Mariner and Kraken, improving the margin when oil prices rise, in response to
increased demand, as the world emerges from recession. Furthermore, the demand
for UKCS heavy oil is relatively strong, narrowing or even eradicating the
discount to Brent. Mariner and Kraken can meet this shortfall in supply and
continue to be robust economic developments.
The Coming Years
Nautical plan to drill up to 4 wells in 2009 and a further 3 in 2010. The
Company will continue to mitigate risk and share the upside with industry
partners through farmouts. Continuing strong cash management is a major
objective to enable your company to increase production and provide value to
shareholders. We will remain flexible on equity interests in development assets,
depending on the availability of development funding. The Directors of Nautical
feel confident that the markets will recognise the value of our reserves,
resources and exploration portfolio, resulting in the rise in the market
capitalisation of Nautical Petroleum plc.
Steve Jenkins
Chief Executive Officer
23 March 2009
PORTFOLIO OVERVIEW
as at March 2009
Kraken: Block 9/2b and 9/2c*
(Licence P1077 - 35% interest)
· Successful 2007 appraisal well confirmed hydrocarbon column of at least
77m
· Crude at least 15oAPI and a viscosity of 110cp similar to producing Alba
field
· Gross best estimate contingent resources of 106mmbo (net: 37.1mmbo)
Mariner: Block 9/11a
(Licence P335 - 26.67% interest)
· Large discovery consisting of Maureen and Heimdal reservoirs
· 1998 test produced 662,000 barrels of 14.5oAPI oil at a maximum
14,991bopd from Maureen formation sands
· 3D seismic and Ocean Bottom Cable (OBC) survey acquired in summer 2008 to
better image the Heimdal reservoir
· Gross reserves of 94mmbo (net: 23mmbo) and gross best estimate contingent
resources of 180mmbo (net:44mmbo)
Hydra: Block 3/27a
(Licence P1203 - 35% interest)
· Well postponed to summer 2009
Scylla: Blocks 8/5 and 9/1
(Licence P1277 - 100% interest)
· High resolution 2D seismic acquired in 2008
· Contingent well in 2009
Tudor Rose: Block 14/30a
(Licence P1463 - 20% interest)
· Tudor rose discovery gross best estimate contingent resources of 49mmbo
(net:10mmbo)
· Further upside in undrilled sand lobe and surrounding prospects
Catcher: Blocks 28/9 and 28/10b
(Licence P1430 - 15% interest)
· Well to be drilled in 2009
· Gross prospective resources of 21.8mmbo (net:3.3mmbo)
Merrow: Blocks 113/29c and 113/30
(Licence P1475 - 50% interest)
· East edge of East Irish Sea Basin
· Seismic has confirmed large Merrow prospect
· Considering limited seismic acquisition, planning test from onshore.
Blocks 8/25a and Ceolacanth Block 8/25b*
(Licence P976 - 50% interest)
· Contains Kelpie and Coelocanth prospects, west of Skipper discovery.
Scylla South Blocks 9/6* and 9/7*
(Licence P1575 35% interest)
· New award continuation of Scylla channel
Mermaid: Block 9/11c
(Licence P979 80% interest)
· Possible southern extension of Mariner accumulation in Heimdal Sandstone.
Blocks 3/22* and 3/26*
(Licences 1573 and P1574 40% interest)
· New 2D high density, high resolution data confirms Lusca prospect
· EM feasibility studies ongoing
Spaniards: Block 15/21g*
(Licence P1655 30% interest)
· 3D seismic to be obtained and reprocessed
Keddington
(Licence PEDL005 10% interest)
· Acquired interest in this UK onshore producing field in January 2009
St Laurent Permit
(22% interest)
· Aquitaine Basin
· Grenade Sur Adour well produced 8000 barrels in a series of tests
· Deep gas prospect beneath the Audignon Ridge prospective resources 1.3
TCF (gross) 0.3 TCF net
Pontenx
(20% interest)
· Parentis Basin
· Awarded 2009 contains redevelopment, appraisal and exploration
opportunities
Gex**
(20% interest)
· Located in eastern France
· Shallow oil already encountered
*25th Round Award
**Permit is awaiting French Government award
Consolidated income statement
For the 6 months ended 31 December 2008
+----------------------------+-------+---------------+--------------+--------------+
| | | 6 months to | 6 months to | Year to |
+----------------------------+-------+---------------+--------------+--------------+
| | | 31 December | 31 December | 30 June 2008 |
| | | 2008 | 2007 | |
+----------------------------+-------+---------------+--------------+--------------+
| | | (unaudited) | (unaudited) | |
+----------------------------+-------+---------------+--------------+--------------+
| |Notes | GBP'000 | GBP'000 | GBP'000 |
+----------------------------+-------+---------------+--------------+--------------+
| Operating costs | | (84) | (79) | (157) |
+----------------------------+-------+---------------+--------------+--------------+
| Impairment of equipment | | (2,376) | - | - |
+----------------------------+-------+---------------+--------------+--------------+
| Gross loss | | (2,460) | (79) | (157) |
+----------------------------+-------+---------------+--------------+--------------+
| Administrative expenses | | (633) | (1,209) | (1,711) |
+----------------------------+-------+---------------+--------------+--------------+
| | | (3,093) | (1,288) | (1,868) |
+----------------------------+-------+---------------+--------------+--------------+
| Gains on disposals | | 491 | - | - |
+----------------------------+-------+---------------+--------------+--------------+
| Exploration costs written | | (24) | (3,243) | (3,244) |
| off | | | | |
+----------------------------+-------+---------------+--------------+--------------+
| Operating loss | | (2,626) | (4,531) | (5,112) |
+----------------------------+-------+---------------+--------------+--------------+
| Finance income | | 926 | 483 | 1,130 |
+----------------------------+-------+---------------+--------------+--------------+
| Finance costs | | (131) | (404) | (538) |
+----------------------------+-------+---------------+--------------+--------------+
| Loss before tax | | (1,831) | (4,452) | (4,520) |
+----------------------------+-------+---------------+--------------+--------------+
| Tax | 3 | 409 | - | - |
+----------------------------+-------+---------------+--------------+--------------+
| Loss for the period | | (1,422) | (4,452) | (4,520) |
+----------------------------+-------+---------------+--------------+--------------+
| Attributable to: | | | | |
+----------------------------+-------+---------------+--------------+--------------+
| Equity holders | | (1,422) | (4,438) | (4,505) |
+----------------------------+-------+---------------+--------------+--------------+
| Minority interests | | - | (14) | (15) |
+----------------------------+-------+---------------+--------------+--------------+
| | | (1,422) | (4,452) | (4,520) |
+----------------------------+-------+---------------+--------------+--------------+
| | | | | |
+----------------------------+-------+---------------+--------------+--------------+
| Basic and diluted loss per | 4 | (2.24) | (7.68) | (7.44) |
| share (pence) | | | | |
+----------------------------+-------+---------------+--------------+--------------+
| | | | | |
+----------------------------+-------+---------------+--------------+--------------+
The results above were entirely derived from continuing operations.
Consolidated balance sheet
As at 31 December 2008
+---------------------------------+----------------+--------------+--------------+
| | As at | As at | As at |
+---------------------------------+----------------+--------------+--------------+
| | 31 December | 31 December | 30 June 2008 |
| | 2008 | 2007 | |
+---------------------------------+----------------+--------------+--------------+
| | (unaudited) | (unaudited) | |
+---------------------------------+----------------+--------------+--------------+
| | GBP'000 | GBP'000 | GBP'000 |
+---------------------------------+----------------+--------------+--------------+
| Non-current assets | | | |
+---------------------------------+----------------+--------------+--------------+
| Intangible assets | 51,122 | 51,380 | 56,400 |
+---------------------------------+----------------+--------------+--------------+
| Property, plant and equipment | - | 2,517 | 2,446 |
+---------------------------------+----------------+--------------+--------------+
| | 51,122 | 53,897 | 58,846 |
+---------------------------------+----------------+--------------+--------------+
| Current assets | | | |
+---------------------------------+----------------+--------------+--------------+
| Trade & other receivables | 1,430 | 4,055 | 604 |
+---------------------------------+----------------+--------------+--------------+
| Short term deposits | 12,500 | 14,000 | 15,000 |
+---------------------------------+----------------+--------------+--------------+
| Cash and cash equivalents | 11,270 | 13,702 | 5,118 |
+---------------------------------+----------------+--------------+--------------+
| | 25,200 | 31,757 | 20,722 |
+---------------------------------+----------------+--------------+--------------+
| Total Assets | 76,322 | 85,654 | 79,568 |
+---------------------------------+----------------+--------------+--------------+
| Current liabilities | | | |
+---------------------------------+----------------+--------------+--------------+
| Trade and other payables | (2,928) | (10,856) | (4,658) |
+---------------------------------+----------------+--------------+--------------+
| Non-current liabilities | | | |
+---------------------------------+----------------+--------------+--------------+
| Deferred tax | (5,376) | (6,431) | (6,431) |
+---------------------------------+----------------+--------------+--------------+
| Other payables | (3,839) | (3,074) | (3,024) |
+---------------------------------+----------------+--------------+--------------+
| | (9,215) | (9,505) | (9,455) |
+---------------------------------+----------------+--------------+--------------+
| Total liabilities | (12,143) | (20,361) | (14,113) |
+---------------------------------+----------------+--------------+--------------+
| Net Assets | 64,179 | 65,293 | 65,455 |
+---------------------------------+----------------+--------------+--------------+
| Equity attributable to equity | | | |
| holders | | | |
+---------------------------------+----------------+--------------+--------------+
| Called up share capital | 11,588 | 11,588 | 11,588 |
+---------------------------------+----------------+--------------+--------------+
| Share premium | 37,748 | 37,748 | 37,748 |
+---------------------------------+----------------+--------------+--------------+
| Other reserves | 29,169 | 29,169 | 29,169 |
+---------------------------------+----------------+--------------+--------------+
| Cumulative translation reserve | (1,659) | (1,659) | (1,659) |
+---------------------------------+----------------+--------------+--------------+
| Accumulated losses | (12,667) | (11,553) | (11,391) |
+---------------------------------+----------------+--------------+--------------+
| Equity attributable to equity | 64,179 | 65,293 | 65,455 |
| holders | | | |
+---------------------------------+----------------+--------------+--------------+
Consolidated statement of changes in equity
For the 6 months ended 31 December 2008
+------------------------------------+--------------+---------------+------------+
| | 6 months to | 6 months to | Year to |
+------------------------------------+--------------+---------------+------------+
| | 31 December | 31 December | 30 June |
| | 2008 | 2007 | 2008 |
+------------------------------------+--------------+---------------+------------+
| | (unaudited) | (unaudited) | |
+------------------------------------+--------------+---------------+------------+
| | GBP'000 | GBP'000 | GBP'000 |
+------------------------------------+--------------+---------------+------------+
| Loss for the period attributable | (1,422) | (4,438) | (4,505) |
| to shareholders | | | |
+------------------------------------+--------------+---------------+------------+
| Currency translation adjustments | - | (329) | (329) |
+------------------------------------+--------------+---------------+------------+
| Share based payment charges | 146 | 221 | 450 |
+------------------------------------+--------------+---------------+------------+
| Effect of changes in minority | - | 4,276 | 4,276 |
| interest | | | |
+------------------------------------+--------------+---------------+------------+
| New shares issued | - | 19,162 | 19,162 |
+------------------------------------+--------------+---------------+------------+
| Net change in equity attributable | (1,276) | 18,892 | 19,054 |
| to shareholders | | | |
+------------------------------------+--------------+---------------+------------+
| Equity attributable to | 65,455 | 46,401 | 46,401 |
| shareholders brought forward | | | |
+------------------------------------+--------------+---------------+------------+
| Equity attributable to | 64,179 | 65,293 | 65,455 |
| shareholders at the end of the | | | |
| period | | | |
+------------------------------------+--------------+---------------+------------+
Consolidated cash flow statement
For the 6 months ended 31 December 2008
+---------------------------------+---+--------------+---------------+--------------+
| | | 6 months to | 6 months to | Year to |
+---------------------------------+---+--------------+---------------+--------------+
| | | 31 December | 31 December | 30 June 2008 |
| | | 2008 | 2007 | |
+---------------------------------+---+--------------+---------------+--------------+
| | | (unaudited) | (unaudited) | |
+---------------------------------+---+--------------+---------------+--------------+
| | | GBP'000 | GBP'000 | GBP'000 |
+---------------------------------+---+--------------+---------------+--------------+
| Net cash flows from operating |5 | 752 | (680) | (1,684) |
| activities | | | | |
+---------------------------------+---+--------------+---------------+--------------+
| Cash flows from investing | | | | |
| activities | | | | |
+---------------------------------+---+--------------+---------------+--------------+
| Finance income | | 213 | 483 | 988 |
+---------------------------------+---+--------------+---------------+--------------+
| Expenditure on intangible | | (7,507) | (2,340) | (7,222) |
| assets | | | | |
+---------------------------------+---+--------------+---------------+--------------+
| Net cash flows from investing | | (7,294) | (1,857) | (6,234) |
| activities | | | | |
+---------------------------------+---+--------------+---------------+--------------+
| Cash flows from financing | | | | |
| activities | | | | |
+---------------------------------+---+--------------+---------------+--------------+
| Proceeds from issue of ordinary | | - | 19,162 | 19,162 |
| shares | | | | |
+---------------------------------+---+--------------+---------------+--------------+
| Proceeds from asset disposals | | 11,488 | - | - |
+---------------------------------+---+--------------+---------------+--------------+
| (Decrease) / Increase in | | (851) | 2,969 | 562 |
| amounts due to JV partners | | | | |
+---------------------------------+---+--------------+---------------+--------------+
| Finance expense | | (38) | (316) | (366) |
+---------------------------------+---+--------------+---------------+--------------+
| Decrease / (increase) in cash | | 2,500 | (14,000) | (15,000) |
| placed on short-term deposits | | | | |
+---------------------------------+---+--------------+---------------+--------------+
| Decrease in balances due to | | (405) | (519) | (265) |
| related undertakings | | | | |
+---------------------------------+---+--------------+---------------+--------------+
| Net cash flows from financing | | 12,694 | 7,296 | 4,093 |
| activities | | | | |
+---------------------------------+---+--------------+---------------+--------------+
| Increase / (decrease) in cash | | 6,152 | 4,759 | (3,825) |
| and cash equivalents | | | | |
+---------------------------------+---+--------------+---------------+--------------+
| Cash and cash equivalents at | | 5,118 | 8,943 | 8,943 |
| beginning of period | | | | |
+---------------------------------+---+--------------+---------------+--------------+
| Cash and cash equivalents at | | 11,270 | 13,702 | 5,118 |
| end of period | | | | |
+---------------------------------+---+--------------+---------------+--------------+
Notes to the interim financial statements
1. General Information
The information for the period ended 31 December 2008 does not constitute
statutory accounts as defined in section 240 of the Companies Act 2006. The
interim financial statements were authorised for issue on 23 March 2009 by the
Board of Directors.
2. Basis of Preparation
The interim accounts have been prepared on the basis of the accounting policies
set out in the June 2008 annual report and accounts. The June 2008 figures have
been extracted from the audited accounts and the audit report was unqualified.
Certain comparatives for December 2007 have been adjusted for consistency with
the June 2008 presentation.
3. Taxation
+------------------------------------+--------------+---------------+--------------+
| | 6 months to | 6 months to | Year to |
+------------------------------------+--------------+---------------+--------------+
| | 31 December | 31 December | 30 June 2008 |
| | 2008 | 2007 | |
+------------------------------------+--------------+---------------+--------------+
| | (unaudited) | (unaudited) | |
+------------------------------------+--------------+---------------+--------------+
| | GBP'000 | GBP'000 | GBP'000 |
+------------------------------------+--------------+---------------+--------------+
| Current income tax charge for the | (646) | - | - |
| period | | | |
+------------------------------------+--------------+---------------+--------------+
| Deferred income tax movement in | 1,055 | - | - |
| the period | | | |
+------------------------------------+--------------+---------------+--------------+
| Income tax credit for the period | 409 | - | - |
+------------------------------------+--------------+---------------+--------------+
4. Loss per share
+------------------------------------+--------------+---------------+--------------+
| | 6 months to | 6 months to | Year to |
+------------------------------------+--------------+---------------+--------------+
| | 31 December | 31 December | 30 June 2008 |
| | 2008 | 2007 | |
+------------------------------------+--------------+---------------+--------------+
| | (unaudited) | (unaudited) | |
+------------------------------------+--------------+---------------+--------------+
| Loss for the period attributable | (1,422) | (4,438) | (4,505) |
| to equity holders (GBP'000) | | | |
+------------------------------------+--------------+---------------+--------------+
| Basic weighted average number of | 63,408 | 63,408 | 63,408 |
| shares in issue in the period | | | |
| ('000) | | | |
+------------------------------------+--------------+---------------+--------------+
| Basic and diluted loss per | (2.24) | (7.68) | (7.44) |
| ordinary share (pence) | | | |
+------------------------------------+--------------+---------------+--------------+
5. Net cash flows from operating activities
+------------------------------------+--------------+---------------+--------------+
| | 6 months to | 6 months to | Year to |
+------------------------------------+--------------+---------------+--------------+
| | 31 December | 31 December | 30 June 2008 |
| | 2008 | 2007 | |
+------------------------------------+--------------+---------------+--------------+
| | (unaudited) | (unaudited) | |
+------------------------------------+--------------+---------------+--------------+
| | GBP'000 | GBP'000 | GBP'000 |
+------------------------------------+--------------+---------------+--------------+
| Loss for the period | (1,422) | (4,452) | (4,520) |
+------------------------------------+--------------+---------------+--------------+
| Finance income | (926) | (483) | (1,130) |
+------------------------------------+--------------+---------------+--------------+
| Finance costs | 131 | 404 | 538 |
+------------------------------------+--------------+---------------+--------------+
| Taxation | (409) | - | - |
+------------------------------------+--------------+---------------+--------------+
| Impairment of equipment | 2,376 | - | - |
+------------------------------------+--------------+---------------+--------------+
| Gains on disposals | (491) | - | - |
+------------------------------------+--------------+---------------+--------------+
| Exploration costs written off | 24 | 3,243 | 3,244 |
+------------------------------------+--------------+---------------+--------------+
| Share-based payment charges | 146 | 219 | 450 |
+------------------------------------+--------------+---------------+--------------+
| Depreciation | 71 | 70 | 142 |
+------------------------------------+--------------+---------------+--------------+
| Unrealised foreign exchange | 1,275 | 90 | 171 |
| movements | | | |
+------------------------------------+--------------+---------------+--------------+
| Gain on settlement of amounts due | (113) | - | - |
| to related undertakings | | | |
+------------------------------------+--------------+---------------+--------------+
| Operating cash flow before working | 662 | (909) | (1,105) |
| capital movements | | | |
+------------------------------------+--------------+---------------+--------------+
| Increase in trade and other | (7) | (77) | (433) |
| receivables | | | |
+------------------------------------+--------------+---------------+--------------+
| Increase / (decrease) in trade and | 97 | 306 | (146) |
| other payables | | | |
+------------------------------------+--------------+---------------+--------------+
| Net cash flows from operating | 752 | (680) | (1,684) |
| activities | | | |
+------------------------------------+--------------+---------------+--------------+
This information is provided by RNS
The company news service from the London Stock Exchange
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