TIDMPMG
RNS Number : 5476P
Parkmead Group (The) PLC
18 November 2016
18 November 2016
The Parkmead Group plc
("Parkmead", "the Company" or "the Group")
Preliminary Results for the year ended 30 June 2016
Parkmead, the UK and Netherlands focused oil and gas group, is
pleased to report its preliminary results for the
year ended 30 June 2016.
HIGHLIGHTS
Successful fast-track development. Substantial increase in gas
production
-- Increased Netherlands gas production more than six fold
-- First commercial gas production achieved at the Diever West
gas field in the Netherlands, following a successful fast-track
development
-- Gas production has continuously outperformed expectations,
averaging approximately 34 million cubic feet per day during June
2016 (approximately 5,850 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, ensuring that Parkmead is cash
flow positive on an operating basis
-- Further production enhancement work planned on Parkmead's
Netherlands portfolio, including a new well at the Geesbrug gas
field to maximise production, serving as a natural hedge to the
current low oil price environment
Attractive new licence awards strengthen asset base
-- Awarded a new oil and gas licence in the West of Shetland
area, targeting the Sanda North and Sanda South prospects which
have the potential to contain 280 million barrels of recoverable
oil on a most likely, P50 basis
-- New West of Shetland licence completes Parkmead's total award
of six new oil and gas licences in the UKCS 28th Licensing Round,
covering 10 offshore blocks
-- Detailed technical work undertaken this year has allowed
Parkmead to release non-core acreage, considerably reducing licence
costs
Major progress on valuable development projects. Additional
licence acquisitions
-- New minimal platform concept at the Platypus gas field
further increases the attractiveness of the development
-- Doubled stake in the Polecat and Marten oil fields in the
Central North Sea in August 2016, which are jointly estimated to
hold over 90 million barrels of oil in place
-- Increased stake in the Perth and Dolphin fields to 60.05% in
September 2016, building Parkmead's oil reserves
-- Perth and Dolphin are at the core of Parkmead's
Perth-Dolphin-Lowlander (PDL) oil hub project which has been fully
appraised, with a combined total of 13 wells drilled, and has
expected recoverable reserves of approximately 80 million barrels
of oil
-- The Polecat and Marten fields have the potential to be highly
valuable to Parkmead as, given their close proximity to PDL, they
could be jointly developed as part of the Greater PDL Area
project
Increasing oil and gas reserves and resources
-- Considerable 2P reserves of 27.9 million barrels of oil
equivalent as at 30 September 2016, a 19% increase from Parkmead's
31 December 2015 reserves position of 23.5 million barrels of oil
equivalent
-- 2C resources increased by 41% to 59.1 million barrels of oil
equivalent as at 30 September 2016 (41.9 million barrels of oil
equivalent at 31 December 2015)
Well positioned for further acquisitions
-- Six acquisitions, at both an asset and corporate level, have been completed to date
-- The Parkmead team is evaluating further acquisition
opportunities to take advantage of the current low oil price
environment
Financial Strength
-- Strong total asset base of GBP87.5 million at 30 June 2016
-- Parkmead maintains strict financial discipline
-- Well capitalised, with cash balances of US$37.9 million
(GBP28.3 million) as at 30 June 2016
-- Parkmead remains debt free
-- Since January 2016, Parkmead has been cash flow positive on an operating basis
-- All revenues from Netherlands gas production received in
Euros, mitigating recent currency fluctuations
Parkmead's Executive Chairman, Tom Cross, commented:
"I am pleased to report an excellent year of progress for
Parkmead, despite the challenges of the low oil price environment.
Parkmead discovered and brought onstream a new gas field at Diever
West, in the Netherlands, within just 14 months. This field is
delivering profitable gas production and important additional cash
flow to the Group.
Parkmead is increasing the Group's gas production in the
Netherlands through a low-cost, onshore work programme. This acts
as a natural hedge to low global oil prices.
The Group's reserves and resources have significantly increased
in 2016 through two licence acquisitions. Parkmead has strengthened
its position around the important PDL oil hub in the UK North
Sea.
Our new licence awards in the 28th Round were an outstanding
result for Parkmead, with 10 new offshore oil and gas blocks
awarded to the Group. We are delighted with the new award in the
West of Shetland region targeting two prospects, Sanda North and
Sanda South. 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 ongoing
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 to build upon the inherent value in its existing interests
with a 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
(Financial Adviser, NOMAD
and Corporate
Broker to Parkmead) +44 (0) 20 7886 2500
Adam James
James Greenwood
Instinctif Partners Limited
(PR Adviser to
Parkmead) +44 (0) 20 7457 2020
David Simonson
George Yeomans
CHAIRMAN'S STATEMENT
This has been an excellent year of progress for Parkmead,
despite the challenging low oil price environment. Building on the
significant growth in the prior period, the Company achieved first
commercial gas production from the Diever West field in the
Netherlands. The field has performed well above expectations,
averaging some 30 million cubic feet per day (approximately 5,340
barrels of oil equivalent per day) since first production.
Parkmead has also delivered a highly successful period of
licence acquisition growth. The Company increased its equity in a
major oil area of the UK Central North Sea through two
transactions. The first doubled Parkmead's stake in the Polecat and
Marten oil fields, increasing the Company's 2C resources by 41%.
This was followed by Parkmead increasing its interest in the Perth
and Dolphin oil fields which are at the core of the major
Perth-Dolphin-Lowlander (PDL) oil hub project.
Operations and Portfolio Growth
Parkmead has made further progress towards building a balanced
independent oil and gas group of breadth and scale, by developing
its current portfolio and adding new assets through acquisition and
through the licensing round process.
Major milestones have been achieved across Parkmead's licence
portfolio in the Netherlands. In November 2015, first commercial
production was achieved at the Diever West gas field.
The field was discovered in September 2014 and, through a
fast-track and low-cost development programme, it was tied into
existing production facilities through a new dedicated pipeline
with gas export via the Garijp treatment system. Parkmead 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.
The Diever-2 well was drilled 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 field has performed well above
expectations since first production, averaging 30 million cubic
feet per day (approximately 5,340 barrels of oil equivalent per
day). The new production from Diever West has increased Parkmead's
net gas production in the Netherlands more than six fold.
Parkmead's low-cost onshore portfolio in the Netherlands
produces gas from four separate fields with a very low average
operating cost of just US$14 per barrel of oil equivalent. The
profitable gas production from Diever West, and Parkmead's wider
portfolio of gas fields in the Netherlands, provides important cash
flow to the Group.
A number of enhanced production opportunities have been
identified within Parkmead's existing Netherlands portfolio, which
the Group intends to capitalise on with the aim of further
increasing its gas production. These include a new low-cost infill
well at Geesbrug and workovers at Brakel and Grolloo. In addition,
a further Rotliegendes exploration target, De Mussels, has been
identified. Parkmead's robust gas production in the Netherlands
serves as a natural hedge to low and volatile oil prices.
Parkmead also achieved a successful period of licence
acquisition growth. In August 2016, the Group doubled its stake in
the Polecat and Marten oil fields in the UK Central North Sea. The
Polecat and Marten fields are located in Blocks 20/3c & 20/4a
within Licence P. 2218. Parkmead acquired a further 50% of Licence
P. 2218, and now operates this area with 100% equity. Parkmead
initially secured its first 50% interest in these blocks as part of
its success in the UK 28(th) Licensing Round awards, where the
Company gained a total of six new oil and gas licences covering 10
offshore blocks.
The Polecat and Marten fields lie approximately 20km east of the
Buzzard field, and are located close to Parkmead's major PDL hub
project in the prolific Moray Firth area of the Central North Sea.
Polecat and Marten are two sizeable existing Buzzard sandstone oil
accumulations, which are jointly estimated to hold over 90 million
barrels of oil in place and over 33 million barrels of 2C
resources. Through this acquisition, Parkmead has increased the
Group's total 2C resources by 41%, from 41.9 to 59.1 million
barrels of oil equivalent.
Polecat and Marten have the potential to be highly valuable to
Parkmead as, given their close proximity to PDL, they could be
jointly developed as part of the Greater PDL Area project. Polecat
was discovered in 2005 and appraised in 2010. The 2010 appraisal
well flow tested at 4,373 barrels per day of good quality 32deg API
oil. The Marten discovery was made in 1984, encountering three oil
bearing Upper Buzzard sandstone intervals. Parkmead benefits from
the large amount of existing data on the block, gathered as a
result of wells already drilled in the area.
In September 2016, Parkmead increased its stake in the centre of
the PDL area by securing additional equity in the Perth and Dolphin
oil fields. The Perth and Dolphin fields are located across Blocks
15/21a, b, c and f & 14/25a in the UK Central North Sea.
Through this growth step, Parkmead has increased its equity in
these licences to 60.05%. The Perth and Dolphin fields, which are
both operated by Parkmead, are at the core of Parkmead's PDL oil
hub project.
Perth and Dolphin are located in the Moray Firth area of the UK
Central North Sea, which contains very large oil fields such as
Piper, Claymore and Tartan. Through a series of licensing round
successes and strategic acquisitions, Parkmead has established an
important position for itself in this area of the North Sea. Perth
and Dolphin are two substantial Upper Jurassic Claymore sandstone
accumulations that have tested 32-38deg API oil at production rates
of up to 6,000 bopd per well. As a result of this latest move,
Parkmead has increased the Group's total proved and probable (2P)
reserves by 19% from 23.5 to 27.9 million barrels of oil
equivalent.
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 area.
An integrated, single project would create valuable economies of
scale, by using the same dedicated production facilities, whilst
providing a new long-term hub for other 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,
which is double the initial recoverable reserves of the Perth field
as a standalone project.
Parkmead has made further progress in the period on the PDL
project, conducting detailed engineering and commercial work in
addition to working alongside regional partners in line with the
Wood Review and Moray Firth area study. Parkmead has continued to
work 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
these is the Athena oil field to the west of Perth, in which
Parkmead is the largest equity owner.
Parkmead has also added exciting exploration acreage to its
portfolio during this reporting period. In July 2015, the Company
was awarded a new licence in the highly prospective West of
Shetland area. This new licence, covering Block 205/13, lies
adjacent to Parkmead's existing licence in the area targeting the
large Davaar prospect. Detailed mapping of Block 205/13 indicates
two new exploration targets, Sanda North and Sanda South, which
have the potential to contain 280 million barrels of recoverable
oil on a most likely, P50 basis. Parkmead's experienced team of
geoscientists has already begun detailed seismic reprocessing work
on this new licence.
Parkmead will continue to invest in licensing round applications
and views this as a key component in the Group's strategy of
building an attractive and balanced portfolio with significant
exploration upside.
Results
The Group's revenue for the year to 30 June 2016 was GBP10.4m
(2015: GBP18.6m). The significant reduction in global oil prices
has in turn reduced the Group's revenue during the period. During
the financial year the price of Brent crude oil averaged US$43 per
barrel and fell to a thirteen-year low of US$26 per barrel in
January 2016. This is a significant reduction from the previous
year's average oil price of US$74 per barrel and has therefore
severely impacted the revenues and cash flows of oil and gas
producers globally. Parkmead and its co-venturers have worked
tirelessly to reduce operating costs across the entire asset
portfolio to reflect the considerably altered macro
environment.
Oil production at the Athena field was shut-in in January 2016
as part of this cost reduction programme, substantially reducing
the Group's cost of sales from this point forward. Parkmead has
re-allocated capital to the Company's low-cost producing gas fields
in the Netherlands, where Parkmead's four separate gas fields have
an average operating cost of just US$14 per barrel of oil
equivalent. The new Diever West field in particular has extremely
low operating costs in the region of US$12 per barrel of oil
equivalent. Parkmead's gas portfolio in the Netherlands generates
positive cash flows despite the low current commodity prices.
Administrative expenses were GBP0.5m (2015: GBP1.2m credit), which
includes a credit in respect of a non-cash share based payment
charge.
Parkmead's total assets at 30 June 2016 were GBP87.5m (2015:
GBP105.6m). Available-for-sale financial assets were GBP2.6m (2015:
GBP3.3m). Cash and cash equivalents at year end were GBP28.3m
(2015: GBP41.1m). Parkmead is very carefully managed and remains
debt free. The Group's net asset value was GBP73.2m (2015:
GBP80.5m). Parkmead is therefore well positioned to withstand the
current market conditions, and indeed views the current macro
environment as an opportunity for further growth. This positive
position is a direct result of experienced portfolio management and
a strong focus on capital discipline.
Due to Parkmead's ongoing growth opportunities and associated
investment programme, the Board is not recommending the payment of
a dividend in 2016 (2015:GBPnil).
Investments
The Group's principal available-for-sale investment is its
shareholding in Faroe Petroleum plc ("Faroe") (LSE AIM: FPM.L). As
at 30 June 2016, the value of this investment was GBP2.6m (30 June
2015: GBP3.3m). Faroe's closing share price at 30 June 2016 was
68.00 pence per share.
Outlook
The Directors of Parkmead are pleased with the Group's
continuing progress in building an independent oil and gas company
of increasing breadth and scale. Parkmead has a balanced portfolio
of licences, growing gas production and a strong asset base.
Therefore, we believe Parkmead is well positioned to build further
on the progress to date and to capitalise on new opportunities. In
particular, we are delighted by the outperformance of production
achieved at Diever West and the significant additional oil reserves
secured in the UK North Sea at Perth and Dolphin, which strengthens
our strategic position in the region.
As we move towards 2017, Parkmead maintains its appetite for
acquisitions. We will also seek to add shareholder value through a
dynamic work programme to maximise the inherent value in our
existing assets. The Group has built a strong platform from which
to become a key E&P player in the North Sea, and we look
forward to updating shareholders as we make further progress.
Tom Cross
Executive Chairman
17 November 2016
This announcement is inside information for the purposes of
Article 7 of Regulation 596/2014.
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. Parkmead's evaluation of reserves and resources
was completed 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.
Glossary of key terms
Oil in place The total quantity of petroleum that is estimated to exist originally in naturally
occurring
reservoirs
Contingent Resources Those quantities of petroleum estimated, as of a given date, to be potentially
recoverable
from known accumulations by application of development projects but which are not
currently
considered to be commercially recoverable due to one or more contingencies.
Contingent Resources
are a class of discovered recoverable resources
Recoverable resources Those quantities of hydrocarbons that are estimated to be producible from discovered
or undiscovered
accumulations.
Proved and Probable or "2P" Those additional Reserves which analysis of geoscience and engineering data indicate
are less
likely to be recovered than Proved Reserve but more certain to be recovered than
Possible
Reserves. It is equally likely that actual remaining quantities recovered will be
greater
than or less than the sum of the estimated Proved plus Probable Reserves (2P). In
this context,
when probabilistic methods are used, there should be at least a 50 per cent.
probability that
the actual quantities recovered will equal or exceed the 2P estimate
Reserves Reserves are those quantities of petroleum anticipated to be commercially recoverable
by application
of development projects to known accumulations from a given date forward under
defined conditions.
Reserves must further satisfy four criteria: they must be discovered, recoverable,
commercial,
and remaining (as of the evaluation date) based on the development project(s)
applied. Reserves
are further categorized in accordance with the level of certainty associated with the
estimates
and may be sub-classified based on project maturity and/or characterized by
development and
production status
P50 Reflects a volume estimate that, assuming the accumulation is developed, there is a
50% probability
that the quantities actually recovered will equal or exceed the estimate. This is
therefore
a median or best case estimate
2C Denotes the best estimate scenario, or P50, of Contingent Resources
Group statement of profit
or loss
for the year ended 30 June
2016
Note 2016 2015
GBP'000 GBP'000
Continuing operations
Revenue 10,441 18,639
Cost of sales (15,061) (39,418)
Impairment of property, plant
and equipment 2 - (12,905)
-------------------------------- ----- --------- -----------
Gross loss (4,620) (33,684)
Exploration and evaluation
expenses (669) (266)
Administrative expenses 3 (527) 1,237
Operating loss (5,816) (32,713)
Finance income 164 4,074
Finance costs (766) (2,193)
Loss before taxation (6,418) (30,832)
Taxation (274) (529)
-------------------------------- ----- --------- -----------
Loss for the year attributable
to the equity holders of
the Parent (6,692) (31,361)
-------------------------------- ----- --------- -----------
Loss per share (pence)
Continuing operations
Basic 4 (6.76) (35.22)
Diluted (6.76) (35.22)
Group and company statement of profit or loss and
other comprehensive income
for the year ended 30 June 2016
Group Company
2016 2015 2016 2015
GBP'000 GBP'000 GBP'000 GBP'000
Profit / (loss)
for the year (6,692) (31,361) 523 (14,451)
Other comprehensive
income
Items that may
be reclassified
subsequently to
profit or loss
Fair value loss
on available-for-sale
financial assets (671) (1,506) (671) (1,506)
------------------------- --------- --------- --------- ---------
(671) (1,506) (671) (1,506)
Other comprehensive
loss income for
the year, net of
tax (671) (1,506) (671) (1,506)
------------------------- --------- --------- --------- ---------
Total comprehensive
loss for the year
attributable to
the equity holders
of the Parent (7,363) (32,867) (148) (15,957)
------------------------- --------- --------- --------- ---------
Group and company statement of financial position
as at 30 June 2016
Group Company
2016 2015 2016 2015
GBP'000 GBP'000 GBP'000 GBP'000
Non-current assets
Property, plant and
equipment: development
& production 17,986 18,717 - -
Property, plant and
equipment: other 75 139 75 135
Goodwill 2,174 2,174 - -
Other intangible
assets - - - -
Exploration and evaluation
assets 34,642 33,630 - -
Investment in subsidiaries
and joint ventures - - 25,025 16,640
Available-for-sale
financial assets 2,644 3,315 2,644 3,315
Deferred tax assets 3 242 - -
Total non-current
assets 57,524 58,217 27,744 20,090
------------------------------ --------- --------- --------- ---------
Current assets
Trade and other receivables 1,475 5,978 45,367 45,024
Current tax assets 195 243 - -
Cash and cash equivalents 28,288 41,121 15,492 26,069
------------------------------ --------- --------- --------- ---------
Total current assets 29,958 47,342 60,859 71,093
------------------------------ --------- --------- --------- ---------
Total assets 87,482 105,559 88,603 91,183
------------------------------ --------- --------- --------- ---------
Current liabilities
Trade and other payables (2,528) (14,634) (2,581) (4,821)
Interest-bearing
loans and borrowings - (412) - -
Current tax liabilities - - - -
Total current liabilities (2,528) (15,046) (2,581) (4,821)
------------------------------ --------- --------- --------- ---------
Non-current liabilities
Other liabilities (27) (278) (26) (276)
Deferred tax liabilities (1,284) (1,284) - -
Decommissioning provisions (10,479) (8,482) - -
------------------------------ --------- --------- --------- ---------
Total non-current
liabilities (11,790) (10,044) (26) (276)
------------------------------ --------- --------- --------- ---------
Total liabilities (14,318) (25,090) (2,607) (5,097)
------------------------------ --------- --------- --------- ---------
Net assets 73,164 80,469 85,996 86,086
------------------------------ --------- --------- --------- ---------
Equity attributable
to equity holders
Called up share capital 19,533 19,533 19,533 19,533
Share premium 87,805 87,805 87,805 87,805
Merger reserve 27,187 27,187 27,187 27,187
Revaluation reserve (3,381) (2,710) (3,381) (2,710)
Retained deficit (57,980) (51,346) (45,148) (45,729)
------------------------------ --------- --------- --------- ---------
Total Equity 73,164 80,469 85,996 86,086
------------------------------ --------- --------- --------- -----------
Group statement of changes in equity
for the year ended 30 June 2016
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 year - - - - (31,361) (31,361)
Fair value
loss on available-for-sale
financial
assets - - - (1,506) - (1,506)
----------------------------- --------- --------- --------- ------------ ---------- ---------
Total comprehensive
loss for
the year - - - (1,506) (31,361) (32,867)
Issue of
new ordinary
shares 168 12,838 - - - 13,006
Gains arising
on repayment
of employee
share based
loans - - - - 271 271
Share-based
payments - - - - 343 343
----------------------------- --------- --------- --------- ------------ ---------- ---------
At 30 June
2015 19,533 87,805 27,187 (2,710) (51,346) 80,469
----------------------------- --------- --------- --------- ------------ ---------- ---------
Loss for
the year - - - - (6,692) (6,692)
Fair value
loss on available-for-sale
financial
assets - - - (671) - (671)
----------------------------- --------- --------- --------- ------------ ---------- ---------
Total comprehensive
loss for
the year - - - (671) (6,692) (7,363)
Share-based
payments - - - - 58 58
----------------------------- --------- --------- --------- ------------ ---------- ---------
At 30 June
2016 19,533 87,805 27,187 (3,381) (57,980) 73,164
----------------------------- --------- --------- --------- ------------ ---------- ---------
Company statement of changes in equity
for the year ended 30 June 2016
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) (31,892) 88,423
Loss for
the year - - - - (14,451) (14,451)
Fair value
loss on available-for-sale
financial
assets - - - (1,506) - (1,506)
----------------------------- --------- --------- --------- ------------ ---------- ---------
Total comprehensive
loss for
the year - - - (1,506) (14,451) (15,957)
Issue of
new ordinary
shares 168 12,838 - - - 13,006
Gains arising
on repayment
of employee
share based
loans - - - - 271 271
Share-based
payments - - - - 343 343
----------------------------- --------- --------- --------- ------------ ---------- ---------
At 30 June
2015 19,533 87,805 27,187 (2,710) (45,729) 86,086
----------------------------- --------- --------- --------- ------------ ---------- ---------
Profit for
the year - - - - 523 523
Fair value
loss on available-for-sale
financial
assets - - - (671) - (671)
----------------------------- --------- --------- --------- ------------ ---------- ---------
Total comprehensive
income /
(loss) for
the year - - - (671) 523 (148)
Share-based
payments - - - - 58 58
----------------------------- --------- --------- --------- ------------ ---------- ---------
At 30 June
2016 19,533 87,805 27,187 (3,381) (45,148) 85,996
----------------------------- --------- --------- --------- ------------ ---------- ---------
Group and company statement of cashflows
for the year ended 30 June 2016
Group Company
2016 2015 2016 2015
Note GBP'000 GBP'000 GBP'000 GBP'000
Cashflows from operating
activities
Continuing activities 5 (10,581) (1,762) (10,739) (10,865)
Taxation paid 45 (469) - -
---------------------------------- ----- --------- --------- --------- ---------
Net cash (used in)
/ generated by operating
activities (10,536) (2,231) (10,739) (10,865)
---------------------------------- ----- --------- --------- --------- ---------
Cash flow from investing
activities
Interest received 132 152 102 124
Acquisition of exploration
and evaluation assets (1,490) (3,485) - -
Proceeds from available-for-sale
financial assets 32 - 32 -
Acquisition of property,
plant and equipment:
development and production (621) (9,026) - -
Acquisition of property,
plant and equipment:
other (21) (55) (21) (55)
Repayment of employee
share based loans - 271 - 271
Net cash (used in)
/ generated by investing
activities (1,968) (12,143) 113 362
---------------------------------- ----- --------- --------- --------- ---------
Cash flow from financing
activities
Issue of ordinary
shares - 13,007 - 13,007
Interest paid (29) (1,219) - -
Repayments of loans
and borrowings (438) (2,389) - (2,000)
Net cash (used in)
/ generated by financing
activities (467) 9,399 - 11,007
---------------------------------- ----- --------- --------- --------- ---------
Net decrease in cash
and cash equivalents (12,971) (4,975) (10,626) (15,490)
---------------------------------- ----- --------- --------- --------- ---------
Cash and cash equivalents
at beginning of year 41,121 46,346 26,069 41,589
Effect of foreign
exchange rate differences 138 (250) 49 (30)
---------------------------------- ----- --------- --------- --------- ---------
Cash and cash equivalents
at end of year 28,288 41,121 15,492 26,069
---------------------------------- ----- --------- --------- --------- ---------
Notes to the financial information for the year ended 30 June
2016
1. Basis of preparation of the financial information
The financial information set out in this announcement does not
comprise the Group and Company's statutory accounts for the years
ended 30 June 2016 or 30 June 2015.
The financial information has been extracted from the audited
statutory accounts for the years ended 30 June
2016 and 30 June 2015. The auditors reported on those accounts;
their reports were unqualified and 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 statutory accounts for the year ended 30 June 2015 have been
delivered to the Registrar of Companies. The
statutory accounts for the year ended 30 June 2016 will be
delivered to the Registrar of Companies following the
Company's Annual General Meeting.
The accounting policies are consistent with those applied in the
preparation of the interim results for the period
ended 31 December 2015 and the statutory accounts for the year
ended 30 June 2015, which have been prepared
in accordance with International Financial Reporting Standards
("IFRS").
2. Impairment of property, plant and equipment
The prior year comparative includes an impairment charge of
GBP12,905,000 in respect of the Athena producing asset in
accordance with IAS 36 "Impairment of assets". The impairment
reflected the difference between the carrying book value and the
estimated future economic value in use as a result of the altered
commodity price environment. Full details of the assumptions
applied in the impairment review as at 30 June 2016 are detailed in
Note 13 of the 2016 Annual Report.
3. Administrative expenses
Administrative expenses include a credit in respect of a
non-cash revaluation of share appreciation rights (SARs) and share
based payments totalling GBP1,359,000 (2015: GBP3,695,000). The
SARs may be settled by cash and are therefore revalued with the
movement in share price. The valuation was impacted by the altered
commodity price environment leading to a decline in share price
between 30 June 2015 and 30 June 2016.
4. Loss per share
Loss per share attributable to equity holders of the Company
arising from continuing operations was as follows:
2016 2015
Loss per 1.5p ordinary share
from continuing operations
(pence)
Basic (6.76) (35.22)
Diluted (6.76) (35.22)
The calculations were based on the following information:
2016 2015
GBP'000 GBP'000
Loss attributable to ordinary
shareholders
Continuing operations (6,692) (31,361)
Total (6,692) (31,361)
------------------------------------- ----------- -----------
Weighted average number of
shares in issue
Basic weighted average number
of shares 98,929,160 89,048,512
------------------------------------- ----------- -----------
Dilutive potential ordinary
shares
Share options - -
------------------------------------- ----------- -----------
Profit / (loss) per share is calculated by dividing the profit
or loss for the year by the weighted average number of ordinary
shares outstanding during the year.
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
continuing operations
Group Company
2016 2015 2016 2015
GBP'000 GBP'000 GBP'000 GBP'000
Operating loss (5,816) (32,713) (12,400) (14,597)
Depreciation 2,724 6,422 81 88
Amortisation and exploration write off 478 265 - -
Impairment of property, plant and equipment - 12,905 - -
Provision for share based payments (674) (3,506) (674) (3,506)
Provision for intercompany receivable - - (4,983) 5,247
Impairment in subsidiary - - 17,405 11,377
Currency translation adjustments (138) 250 (49) 30
Decrease / (increase) in receivables 4,473 5,582 (8,362) (24,180)
Increase / (decrease) in payables (11,605) 9,494 (1,757) (857)
Increase / (decrease) in other provisions (23) (461) - (461)
---------------------------------------------- --------- --------- --------- ---------
Net cash flow from operations (10,581) (1,762) (10,739) (26,859)
---------------------------------------------- --------- --------- --------- ---------
6. Approval of this preliminary announcement
This announcement was approved by the Board of Directors on 17
November 2016.
7. Posting of annual report and accounts
Copies of the Annual Report and Accounts will be posted to
shareholders shortly. The Annual Report and Accounts will be made
available to download, along with a copy of this announcement, on
the investor relations section of the Company's website
www.parkmeadgroup.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR LIFFRLTLTLIR
(END) Dow Jones Newswires
November 18, 2016 02:01 ET (07:01 GMT)
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