TIDMPMG
RNS Number : 1473T
Parkmead Group (The) PLC
24 March 2016
24 March 2016
The Parkmead Group plc
("Parkmead", "the Company" or "the Group")
Interim Results for the six-month period ended 31 December
2015
Parkmead, the UK and Netherlands focused oil and gas group, is
pleased to report its interim results for the six-month period
ended 31 December 2015.
HIGHLIGHTS
Successful fast-track development, substantial increase in gas
production
-- First commercial gas production achieved at the Diever West
gas field in the Netherlands, following a successful fast-track
development
-- Excellent Diever-2 well is outperforming, averaging
approximately 30 million cubic feet per day during February
2016(approximately 5,100 barrels of oil equivalent per day)
-- Diever West field brought onstream within just 14 months of discovery
-- Low-cost onshore gas portfolio in the Netherlands produces
from four separate gas fields with an average operating cost of
US$14 per barrel of oil equivalent
-- Further production enhancement work planned on Parkmead's
Netherlands portfolio, including new wells at the Geesbrug and Wijk
en Aalburg gas fields to maximise production, serving as a natural
hedge to the current low oil price environment
-- Significant development opportunities exist within Parkmead's
Netherlands portfolio, in addition to low-risk exploration upside
such as the Rotliegendes De Mussels prospect
-- Detailed technical work has allowed Parkmead to high-grade
its portfolio and release non-core acreage, significantly reducing
licence costs
Significant progress on valuable development projects and
additional licence award
-- New minimal platform concept at the Platypus gas field
further increases the attractiveness of the development
-- Awarded a further new UK offshore licence, completing an excellent 28th Round for Parkmead
-- Parkmead's new licence is located in the highly prospective
West of Shetland area targeting two new prospects (Sanda North and
Sanda South) adjacent to existing Parkmead licences
Building substantial oil and gas reserves and resources
-- 2P reserves of 23.5 million barrels of oil equivalent as at 31 December 2015
-- Contingent resources of 41.9 million barrels of oil equivalent as at 31 December 2015
Well positioned for further acquisitions
-- Six acquisitions, at both asset and corporate level, have
already been completed since repositioning Parkmead as a new
independent oil and gas company
-- Parkmead is well capitalised with US$43.8 million (GBP29.6
million) of cash resources as at 31 December 2015
-- The Parkmead team is evaluating further acquisition
opportunities to take advantage of the current low oil price
environment
Financial strength
-- Net assets of GBP74.6 million at 31 December 2015 (2014: GBP82.8 million)
-- Revenue of GBP7.0 million (2014: GBP10.1 million)
-- Strong cash position of GBP29.6 million (US$43.8 million) as at 31 December 2015
-- Parkmead operates the majority of assets within its portfolio
and therefore controls the timing and quantum of capital
expenditure, with low capital commitments in 2016
Tom Cross, Executive Chairman of Parkmead commented:
"I am pleased to report significant progress in the period to 31
December 2015. Parkmead has developed a new gas field at Diever
West, in the Netherlands, following its successful discovery. This
is delivering profitable gas production and important additional
cash flow to the Group. We successfully brought this new gas field
onstream within 14 months of discovery, which is an outstanding
achievement.
Parkmead is increasing the Group's overall gas production in the
Netherlands through a low-cost, onshore work programme. This will
act as a natural hedge to the current low global oil prices.
We are delighted with our new additional licence award, in the
West of Shetland region, which further increases the scale of
Parkmead's oil and gas operations in the UK. West of Shetland is an
area we understand well and has the potential to add major value to
the Company.
Parkmead is well positioned to take advantage of the lower oil
price environment and the opportunities that are arising from this.
We have excellent regional expertise, significant cash resources
and a growing, low-cost gas portfolio. The Group will continue with
its licensing and acquisition-led growth strategy, securing
opportunities that maximise long-term value for our
shareholders."
For enquiries please contact:
The Parkmead Group plc +44 (0) 1224 622200
Tom Cross (Executive Chairman)
Ryan Stroulger (Chief Financial
Officer)
Panmure Gordon (UK) Limited +44 (0) 20 7886 2500
(Financial Adviser, NOMAD
and Corporate Broker to Parkmead)
Adam James
Karri Vuori
James Greenwood
Instinctif Partners Limited +44 (0) 20 7457 2020
(PR Adviser to Parkmead)
David Simonson
George Yeomans
Review of Activities
Parkmead has delivered significant growth across its oil and gas
operations in the UK and the Netherlands, continuing to build a
high quality portfolio at every stage of the asset life cycle.
In July 2015, Parkmead was awarded a new offshore licence in the
West of Shetland region under the UK 28th Licensing Round. This
newly awarded licence was part of the second tranche of 28th Round
awards. This latest award followed Parkmead's award of six licences
covering nine offshore blocks in the first tranche of awards. The
new licence, operated by Parkmead, is located in the highly
prospective West of Shetland area where the Group has a deep
technical knowledge of the exploration plays, and a strong
track-record of successful discoveries. This new licence completes
an excellent 28th Round for Parkmead.
The newly awarded licence, covering Block 205/13, is situated
adjacent to some of Parkmead's existing blocks in the West of
Shetland area, all of which are operated by Parkmead. Block 205/13
(Parkmead 74% and operator) is located immediately to the east of
the Parkmead operated Block 205/12, which contains the important
Davaar prospect. The primary play fairway developed on this acreage
is the Paleocene Vaila Formation which forms the reservoir in the
adjacent Foinaven, Schiehallion and Loyal oil fields, and also in
the Laggan and Tormore gas discoveries. Two prospects, Sanda North
and Sanda South, have been identified in Block 205/13 and provide
material upside to the Davaar prospect. On a P50 pre-drill basis,
Davaar has a potential resource of 186 million barrels of
recoverable oil. Parkmead has increased its equity interest in
Block 205/12, containing Davaar, to 74% and aligned the equity
ownership across the two licences.
Parkmead's experienced geoscience team has already initiated a
work programme on the new licence, with detailed biostratigraphic
work underway. The team will continue to work hard on licensing
round applications, both in the UK and Netherlands, and views this
as a key component in the Group's strategy to build an attractive
and balanced portfolio that offers considerable exploration
upside.
In November 2015, first commercial gas production was achieved
at the Diever West gas field in the Netherlands. The field was
discovered in September 2014 and, under a fast-track and low-cost
development programme, was tied into existing production facilities
through a new dedicated pipeline with gas extraction via the Garijp
treatment system. Parkmead has worked closely with its
joint-venture partners on the fast-track development of the Diever
West field, and the partnership successfully brought the field
onstream within just 14 months of discovery. This is an outstanding
achievement.
Diever West is located onshore on the western edge of the Lower
Saxony Basin, approximately 10km to the east of the producing
Weststellingwerf, Noordwolde, Vinkega and Nijensleek fields, on the
Drenthe IIIb Production licence, which also contains Parkmead's
producing Geesbrug gas field.
The Diever-2 well was drilled in September 2014 on behalf of the
co-venturers by operator Vermilion Energy, and gas was discovered
in a good quality Rotliegendes age sandstone reservoir. A 157 foot
gas column was encountered, with both net pay and porosity values
exceeding pre-drill expectations. The well was flow tested after
the successful discovery and recorded an excellent flow rate of 29
million cubic feet of gas per day (approximately 5,000 barrels of
oil equivalent per day).
The Lower Permian Rotliegendes sandstone in this area contains
three productive formations, and Diever-2 confirmed the presence of
all three reservoir sections. The Slochteren Sandstone formation in
the vicinity possesses excellent reservoir properties, typically
exhibiting a net-to-gross ratio in excess of 90% and porosities of
approximately 20%.
The Diever-2 well has performed excellently since first
production was achieved. The average field production in February
2016 was approximately 30 million cubic feet per day (approximately
5,100 barrels of oil equivalent per day). The profitable gas
production from Diever West, and Parkmead's wider portfolio of gas
fields in the Netherlands, provides important additional cash flow
to the Group. A number of enhanced production opportunities are
available across Parkmead's existing Netherlands portfolio, which
the Group intends to capitalise on, with the aim of significantly
increasing its net gas production. These include new low-cost
infill wells at Geesbrug and Wijk en Aalburg, in addition to a
further Rotliegendes exploration target at De Mussels. The new
production from Diever West and the additional Geesbrug well are
forecast to more than quadruple Parkmead's net gas production in
the Netherlands. This will serve as a natural hedge to low and
volatile oil prices.
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Significant progress was made during the period at Parkmead's
Platypus gas field development. Detailed development concept work
was undertaken by the joint-venture partners in order to optimise
the development of the Platypus field. It was found that by
collaborating with other facilities in the area a minimal platform
concept can be adopted, substantially reducing development
expenditure. In addition, the field's gas reserves can be
efficiently recovered from two rather than three development wells.
This increases the value of the already economic Platypus
development. The Platypus gas field was discovered in 2010 and was
successfully appraised with a horizontal well in 2012. Platypus was
flow tested at a rate of 27 million cubic feet of gas per day
(approximately 4,600 barrels of oil per day on an equivalent
basis).
Parkmead has made further progress in the period with the major
Perth, Dolphin and Lowlander (PDL) oil hub development. Detailed
engineering and commercial work was carried out in addition to
working alongside regional partners in line with the Wood Review
and Moray Firth area study. Parkmead has continued to make progress
towards incorporating other proven oil fields in the wider area
into the PDL development. The Group's technical team is studying a
number of further oil accumulations in the area, one of which is
the Athena oil field to the west of Perth.
PDL is one of the largest undeveloped oil projects in the North
Sea. During 2014, a joint development study was carried out to
assess the potential of a development of the Lowlander field with
Perth and Dolphin. The analysis indicated that a joint development
of the three fields could significantly increase the value of the
Perth project. This marked an important milestone for Parkmead.
The development of the Perth, Dolphin and Lowlander fields as a
single project creates significant economies of scale, by using the
same dedicated production facilities, whilst providing a new
long-term hub for future projects in the area. The three fields
have been fully appraised, with a combined total of 13 wells
drilled, and contain oil in place of over 400 million barrels. It
is expected that recoverable reserves from the PDL oil hub
development will be over 80 million barrels of oil, double the
initial recoverable reserves of Perth as a standalone project.
Financial Results
During the six month period to 31 December 2015, the Group
generated revenues of GBP7.0 million (2014: GBP10.1 million). The
reduction in revenues was principally attributable to the global
drop in commodity prices with Brent crude oil averaging US$48 per
barrel in the second half of 2015 compared to US$91 per barrel in
the second half of 2014. The reduction in revenue was partly offset
by the increasing contribution from Diever West in the Netherlands
following first gas in November 2015.
A significant reduction in operating costs was achieved in the
period which, combined with no impairment charge being recorded
compared to the corresponding period last year, reduced the Group's
post-tax loss substantially to GBP4.8 million (2014: GBP14.9
million). The Athena field was shut-in in January 2016 following
which the final operating costs will substantially be incurred
before the end of Q1 2016. Parkmead's low-cost producing gas fields
in the Netherlands (where the four separate gas fields have an
average operating cost of US$14 per barrel of oil equivalent)
generate positive cash flows despite very low current commodity
prices. The new Diever West field in particular has extremely low
operating costs in the region of US$12 per barrel of oil
equivalent.
Administrative expenses provided a credit of GBP0.3 million
(2014: GBP1.5 million credit), arising principally from the lower
share price impacting the non-cash share based payment charge. In
addition to the share-based charges recurring administrative
expenses have been reduced and are continually being monitored and
challenged to ensure Parkmead maintains a strong balance sheet.
The Group's cash and cash equivalents stood at GBP29.6 million
at 31 December 2015 with nominal debt, reflecting the strength of
the Group's balance sheet. Parkmead is well positioned to withstand
the unprecedented market conditions, and indeed views the current
macro environment as an opportunity for further growth. This
position is as a result of careful and experienced portfolio
management, with a keen focus on capital discipline. Parkmead
operates the majority of assets within its portfolio and therefore
controls the timing and quantum of capital expenditure, with low
planned capital commitments in 2016.
Total assets were GBP90.3 million as at 31 December 2015
(GBP109.6 million as at 31 December 2014). Net assets were GBP74.6
million as at 31 December 2015 (GBP82.8 million as at 31 December
2014).
Investments
The Group's largest investment is in Faroe Petroleum plc (LSE
AIM: FPM.L). As at 31 December 2015 this investment was carried at
a value of GBP2.1 million.
Outlook
Parkmead has delivered significant growth in its asset base in
the six month period to 31 December 2015. This was achieved through
a successful fast-track development and new licence award, all
within our core areas of the UK and the Netherlands.
The Group is in a strong position, both operationally and
financially, at a challenging time in the global oil and gas
industry. The Board has positioned Parkmead to take advantage of
the lower oil price environment and views this as a good
opportunity to continue the Group's strong trajectory. Our
acquisition-led growth strategy has resulted in six deals for
Parkmead since repositioning the business as an independent oil and
gas company in 2011, and we intend to build on this excellent track
record. As we look forward into 2016 and beyond, we will continue
to keep shareholders informed of our progress across our
exploration, appraisal, development and production activities. The
Board of Directors is pleased with the Group's progress, and
believes that Parkmead is well positioned to drive the business
forward and to build upon the achievements already made to
date.
Tom Cross
Executive Chairman
24 March 2016
Notes:
1. Dr Colin Percival, Parkmead's Technical Director, who holds a
First Class Honours Degree in Geology and a Ph.D in Sedimentology
and has over 30 years of experience in the oil and gas industry,
has reviewed and approved the technical information contained in
this announcement. Reserves and contingent resource estimates are
stated as at 31 December 2015. Parkmead's evaluation of reserves
and resources was prepared in accordance with the 2007 Petroleum
Resources Management System prepared by the Oil and Gas Reserves
Committee of the Society of Petroleum Engineers and reviewed and
jointly sponsored by the World Petroleum Council, the American
Association of Petroleum Geologists and the Society of Petroleum
Evaluation Engineers.
Group statement of profit
or loss
for the six months ended 31 December 2015
Twelve
Six months Six months months
to 31 to 31 to 30
December December June
2015 2014 2015
Notes (unaudited) (unaudited)
GBP'000 GBP'000 GBP'000
Continuing operations
Revenue 6,996 10,118 18,639
Cost of sales (11,081) (16,871) (39,418)
Impairment of property,
plant and equipment 2 - (12,905) (12,905)
----------------------------------------------------- -------- ------------ ------------ ---------
Gross loss (4,085) (19,658) (33,684)
Exploration and evaluation
expenses (550) (57) (266)
Administrative credit 3 347 2,282 1,237
----------------------------------------------------- -------- ------------ ------------ ---------
Operating loss (4,288) (17,433) (32,713)
Finance income 120 1,487 4,074
Finance costs (395) (1,072) (2,193)
Loss before taxation (4,563) (17,018) (30,832)
Taxation (192) 2,091 (529)
----------------------------------------------------- -------- ------------ ------------ ---------
Loss for the period attributable
to the equity
holders of the Parent (4,755) (14,927) (31,361)
--------------------------------------------------------------- ------------ ------------ ---------
Loss per share (pence)
Continuing operations
Basic 4 (4.81) (19.59) (35.22)
Diluted (4.81) (19.59) (35.22)
Group statement of profit or loss and other comprehensive
income
for the six months ended 31 December 2015
Twelve
Six months Six months months
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to 31 to 31 to 30
December December June
2015 2014 2015
(unaudited) (unaudited)
GBP'000 GBP'000 GBP'000
Loss for the period (4,755) (14,927) (31,361)
----------------------------------------------------- -------- ------------ ------------ -----------
Other comprehensive income
Items that may be reclassified
subsequently to profit
or loss
Fair value loss on available-for-sale
financial assets (1,205) (2,468) (1,506)
----------------------------------------------------- -------- ------------ ------------ -----------
(1,205) (2,468) (1,506)
Income tax relating to
components of other comprehensive
income - - -
Other comprehensive loss
for the period, net of
tax (1,205) (2,468) (1,506)
Total comprehensive loss
for the period attributable
to the equity holders
of the Parent (5,960) (17,395) (32,867)
----------------------------------------------------- -------- ------------ ------------ -----------
Group statement of financial position
as at 31 December 2015
At 31 At 31 At 30
December December June
2015 2014 2015
(unaudited) (unaudited)
GBP'000 GBP'000 GBP'000
Non-current assets
Property, plant and equipment:
development & production 18,493 25,491 18,717
Property, plant and equipment:
other 112 156 139
Goodwill 2,174 2,174 2,174
Exploration and evaluation
assets 33,675 33,858 33,630
Available-for-sale financial
assets 2,109 2,352 3,315
Deferred tax assets 51 2,942 242
Total non-current assets 56,614 66,973 58,217
--------------------------------- ------------ ------------ ---------
Current assets
Trade and other receivables 3,931 3,159 5,978
Current tax asset 173 111 243
Cash and cash equivalents 29,581 39,394 41,121
Total current assets 33,685 42,664 47,342
--------------------------------- ------------ ------------ ---------
Total assets 90,299 109,637 105,559
--------------------------------- ------------ ------------ ---------
Current liabilities
Trade and other payables (4,184) (6,995) (14,634)
Interest-bearing loans and
borrowings (67) (542) (412)
Other provisions (64) (128) -
Total current liabilities (4,315) (7,665) (15,046)
--------------------------------- ------------ ------------ ---------
Non-current liabilities
Interest-bearing loans and - (4,181)
borrowings -
Other liabilities - (699) (278)
Deferred tax liabilities (1,284) (1,541) (1,284)
Decommissioning provisions (10,121) (12,770) (8,482)
--------------------------------- ------------ ------------ ---------
Total non-current liabilities (11,405) (19,191) (10,044)
--------------------------------- ------------ ------------ ---------
Total liabilities (15,720) (26,856) (25,090)
--------------------------------- ------------ ------------ ---------
Net assets 74,579 82,781 80,469
--------------------------------- ------------ ------------ ---------
Equity attributable to equity
holders
Called up share capital 19,533 19,365 19,533
Share premium 87,805 74,967 87,805
Merger reserve 27,187 27,187 27,187
Revaluation reserve (3,915) (3,672) (2,710)
Retained deficit (56,031) (35,066) (51,346)
--------------------------------- ------------ ------------ ---------
Total equity 74,579 82,781 80,469
--------------------------------- ------------ ------------ ---------
Group statement of changes in equity
for the six months ended 31 December 2015
Share Share Merger Revaluation Retained Total
capital premium reserve reserve earnings
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 July
2014 19,365 74,967 27,187 (1,204) (20,599) 99,716
Loss for
the period - - - - (14,927) (14,927)
Fair value
loss on available-for-sale
financial
assets - - - (2,468) - (2,468)
Total comprehensive
loss for
the period - - - (2,468) (14,927) (17,395)
Gains arising
on repayment
of employee
share based
loan - - - - 271 271
Share-based
payments - - - - 189 189
----------------------------- --------- --------- --------- ------------ ---------- ---------
At 31 December
2014 19,365 74,967 27,187 (3,672) (35,066) 82,781
----------------------------- --------- --------- --------- ------------ ---------- ---------
Loss for
the period - - - - (16,434) (16,434)
Fair value
gain on available-for-sale
financial
assets - - - 962 - 962
----------------------------- --------- --------- --------- ------------ ---------- ---------
Total comprehensive
gain/(loss)
for the period - - - 962 (16,434) (15,472)
Issue of
new ordinary
shares 168 12,838 - - - 13,006
Share-based
payments - - - - 154 154
----------------------------- --------- --------- --------- ------------ ---------- ---------
At 30 June
2015 19,533 87,805 27,187 (2,710) (51,346) 80,469
----------------------------- --------- --------- --------- ------------ ---------- ---------
Loss for
the period - - - - (4,755) (4,755)
Fair value
loss on available-for-sale
financial
assets - - - (1,205) - (1,205)
Total comprehensive
loss for
the period - - - (1,205) (4,755) (5,960)
Share-based
payments - - - - 70 70
----------------------------- --------- --------- --------- ------------ ---------- ---------
At 31 December
2015 19,533 87,805 27,187 (3,915) (56,031) 74,579
----------------------------- --------- --------- --------- ------------ ---------- ---------
Group statement of cashflows
for the six months ended 31 December
2015
Twelve
Six months Six months months
to 31 to 31 to 30
December December June
2015 2014 2015
(unaudited) (unaudited)
Notes GBP'000 GBP'000 GBP'000
Cashflows from operating
activities
Continuing activities 5 (9,772) 4,977 (1,762)
Taxation received/(paid) 80 (139) (469)
----------------------------------- ------ ------------ ------------ ---------
Net cash (used in)/generated
by operating activities (9,692) 4,838 (2,231)
----------------------------------- ------ ------------ ------------ ---------
Cash flow from investing
activities
Interest received 120 92 152
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Acquisition of exploration
and evaluation assets (1,005) (2,685) (3,485)
Acquisition of property,
plant and equipment: development
& production (627) (8,634) (9,026)
Acquisition of property,
plant and equipment: other (21) (25) (55)
Repayment of employee share
based loans - 271 271
Net cash (used in) investing
activities (1,533) (10,981) (12,143)
----------------------------------- ------ ------------ ------------ ---------
Cash flow from financing
activities
Issue of ordinary shares - - 13,007
Interest paid (4) (679) (1,219)
Repayments of loans and
borrowings (401) (130) (2,389)
Net cash (used in)/generated
by financing activities (405) (809) 9,399
----------------------------------- ------ ------------ ------------ ---------
Net decrease in cash and
cash equivalents (11,630) (6,952) (4,975)
----------------------------------- ------ ------------ ------------ ---------
Cash and cash equivalents
at beginning of period 41,121 46,346 46,346
Effect of foreign exchange
rate differences 90 - (250)
----------------------------------- ------ ------------ ------------ ---------
Cash and cash equivalents
at end of period 29,581 39,394 41,121
----------------------------------- ------ ------------ ------------ ---------
Notes to the Interim financial statements
1 Accounting policies
Basis of preparation
The interim financial information in this report has been
prepared using accounting policies consistent with International
Financial Reporting Standards (IFRS) as adopted by the European
Union and IFRS Interpretations Committee (IFRIC) interpretations.
IFRS is subject to amendment and interpretation by the
International Accounting Standards Board (IASB) and IFRIC and there
is an ongoing process of review and endorsement by the European
Commission. The financial information has been prepared on the
basis of IFRS that the Directors expect to be adopted by the
European Union and applicable as at 30 June 2016.
The Group has chosen not to adopt IAS 34 - Interim Financial
Statements, in preparing these financial statements.
Non-statutory accounts
The financial information set out in this interim report does
not constitute the Group's statutory accounts.
The financial information for the year ended 30 June 2015 has
been extracted from the audited statutory accounts. The statutory
accounts for the year ended 30 June 2015 have been delivered to the
Registrar of Companies. The auditors reported on those accounts;
their report was unqualified, did not contain a statement under
either Section 498 (2) or Section 498 (3) of the Companies Act 2006
and did not include references to any matters to which the auditor
drew attention by way of emphasis.
The financial information for the 6 months ended 31 December
2015 and 31 December 2014 is unaudited.
2 Impairment of property, plant and equipment
The prior year comparative includes an impairment charge of
GBP12,905,000 recorded in respect of the Athena producing asset in
accordance with IAS 36 "Impairment of assets". Full details of the
impairment were disclosed in the 2015 Annual Report. Further
details on the Athena asset are contained within Note 6 below
(events after the end of the interim period).
3 Administrative expenses
Administrative expenses include a credit in respect of a
non-cash revaluation of share appreciation rights (SARs) totalling
GBP1,428,000 (Six months to 31 December 2014: GBP3,121,000 credit,
Twelve months to 30 June 2015: GBP4,038,000 credit). The SARs are
revalued with the movement in share price. The valuation was
impacted by the decline in share price between 30 June 2015 and 31
December 2015.
4 Loss per share
Loss per share attributable to equity holders of the Company
arise from continuing operations as follows:
Twelve
Six months Six months months
to 31 to 31 to 30
December December June
2015 2014 2015
(unaudited) (unaudited)
Loss per 1.5p ordinary share
from continuing operations
(pence)
Basic (4.81) (19.59) (35.22)
Diluted (4.81) (19.59) (35.22)
-------------------------------- ------------ ------------ --------
The calculations were based on the following information:
Twelve
Six months Six months months
to 31 to 31 to 30
December December June
2015 2014 2015
(unaudited) (unaudited)
GBP'000 GBP'000 GBP'000
Loss attributable to ordinary
shareholders
Continuing operations (4,755) (14,927) (31,361)
Total (4,755) (14,927) (31,361)
------------------------------- ------------ ------------ -----------
Weighted average number
of shares in issue
Basic weighted average
number of shares 98,929,160 76,215,704 89,048,512
------------------------------- ------------ ------------ -----------
Dilutive potential ordinary
shares
Share options - - -
------------------------------- ------------ ------------ -----------
Profit/(loss) per share is calculated by dividing the profit or
loss for the period by the weighted average number of ordinary
shares outstanding during the period.
Diluted loss per share
Loss per share requires presentation of diluted loss per share
when a company could be called upon to issue shares that would
decrease net profit or increase net loss per share. When the Group
makes a loss the outstanding share options are therefore
anti-dilutive and so are not included in dilutive potential
ordinary shares.
5 Notes to the statement of cashflows
Reconciliation of operating loss to net cash flow from
operations
Twelve
Six months Six months months
to 31 to 31 to 30
December December June
2015 2014 2015
(unaudited) (unaudited)
GBP'000 GBP'000 GBP'000
Operating loss (4,288) (17,433) (32,713)
Depreciation 2,589 3,169 6,422
Amortisation and exploration
write-off 550 51 265
Impairment of property,
plant and equipment - 12,905 12,905
Provision for share based
payments (1,289) (2,932) (3,506)
Currency translation adjustments (77) - 250
Decrease in receivables 2,048 8,401 5,582
(Decrease)/Increase in
payables (9,369) 795 9,494
Increase/(decrease) in
other provisions 64 21 (461)
---------------------------------- ------------ ------------ ---------
Net cash flow from operations (9,772) 4,977 (1,762)
---------------------------------- ------------ ------------ ---------
6 Events after the end of the interim period
A decision was made to shut-in the Athena field on 4 January
2016 and the BW Athena FPSO has since been moved off-station. This
followed a dramatic decline in oil price from mid-2014 which was
sustained into 2015. This rendered the offtake solution of a
dedicated FPSO servicing the Athena field no longer commercially
viable in the current environment. The Company will continue to
evaluate an alternative low-cost offtake route, potentially using
Parkmead's other assets in the wider area, to extract the proven
reserves which exist in the Athena reservoir. The financial impact
from the above, all other things being equal, will be a reduction
in both revenue and cost of sales in future periods. Due to the
nature of the oil price environment during the course of 2015 we
anticipate this will have a positive impact on operating results in
2016.
This information is provided by RNS
The company news service from the London Stock Exchange
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Parkmead (LSE:PMG)
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