TIDMPMG
RNS Number : 8031W
Parkmead Group (The) PLC
17 November 2017
17 November 2017
The Parkmead Group plc
("Parkmead", "the Company" or "the Group")
Preliminary Results for the year ended 30 June 2017
Parkmead, the UK and Netherlands focused independent energy
group, is pleased to report its preliminary results for the year
ended 30 June 2017.
HIGHLIGHTS
Parkmead delivers full-year gross profit and demonstrates
financial strength
-- Gross profit for the period of GBP1.2 million (2016: GBP4.6 million loss)
-- Strong total asset base of GBP82.2 million at 30 June 2017
-- Maintains strict financial discipline
-- Well capitalised, with cash balances of US$34.3 million
(GBP26.4 million) as at 30 June 2017
-- Debt free
-- Low-cost Netherlands gas production provides positive cash flow to Parkmead
-- All revenues from Netherlands production received in Euros,
mitigating recent currency fluctuations
Doubled gas volumes at Diever West. Significant increase in gas
production
-- New dynamic reservoir modelling suggests Diever West has
approximately 108 billion cubic feet ("Bcf") of gas-in-place
volumes, more than double the post drill static volume estimate of
41 Bcf
-- The Group has substantially increased production from its
Diever West gas field by perforating the Akkrum reservoir
formation
-- Gross production at the end of October 2017 at Diever West
was 39.3 million cubic feet per day, approximately 6,764 barrels of
oil equivalent per day ("boepd")
-- Low-cost onshore gas portfolio in the Netherlands produces
from four separate gas fields with an average operating cost of
just US$10 per barrel of oil equivalent, generating positive cash
flows
-- Further production enhancement work planned on Parkmead's
Netherlands portfolio, including a new well at the Geesbrug gas
field to maximise production and early development planning at the
Ottoland discovery
-- Production at the Brakel field is set to recommence within
the next few months following compression work that is currently
being undertaken
Major progress on valuable development projects. Additional
licence acquisitions
-- Doubled stakes in the Polecat and Marten oil fields to 100%
in the UK Central North Sea, which are jointly estimated to hold
over 90 million barrels of oil in place
-- Increased stakes in the Perth and Dolphin oil fields to
60.05%, building Parkmead's oil reserves
-- Greater Perth Area ("GPA") invitation to tender announced to
the service provider market, covering the pre-FEED, FEED and
subsequent development phases of the project
o 13 alliance submissions received from 35 companies across all
project components of drilling, subsea construction and export
route options
o In discussions with a number of leading, international service
companies and oil companies
o Parkmead has received financial proposals for significant
parts of the development, reducing the capital expenditure needed
to bring the project onstream
-- New minimal platform concept at the Platypus gas field
further increases the value of this development
-- The Platypus joint venture group is working towards
optimising the export route for Platypus ahead of an offtake
agreement, with various export options available given the
availability of infrastructure in the UK Southern Gas Basin
-- Acquisition of a 50% interest in UK North Sea Licence P.2209
covering the Farne Extension prospect and a further four
prospective leads, potentially containing 175 Bcf of gas initially
in place on a most likely, P50 basis
Substantial oil and gas reserves and resources
-- Net 2P reserves of 27.7 million barrels of oil equivalent as at 30 September 2017
-- Net 2C resources of 62.0 million barrels of oil equivalent as at 30 September 2017
Well positioned for further acquisitions
-- Seven acquisitions, at both an asset and corporate level, have been completed to date
-- Parkmead evaluating further acquisition opportunities and
prioritising those that provide growth
Parkmead's Executive Chairman, Tom Cross, commented:
"2017 has been an important year of progress for Parkmead. The
Group moved into gross profit as a result of increased gas
production and the cost reduction programme in the UK. This is an
outstanding achievement for Parkmead at a time when global oil
prices have remained low.
Parkmead's gas production acts as a natural hedge in the
challenging oil price environment.
We are delighted to have significantly increased production at
the Diever West gas field, which increases Parkmead's cash flow.
New reservoir modelling indicates that Diever West could be more
than double the size originally expected.
We are also pleased to have been able to increase our stakes in
core areas of the Group's portfolio during the year, particularly
around the Greater Perth Area oil hub in the UK North Sea, where
Parkmead has strengthened its position. The Group is in discussions
with leading, international service companies and oil companies
with regards to the Greater Perth Area.
The team at Parkmead is working intensively to evaluate and
execute further value-adding opportunities which could provide
additional cash flow to the Company. Parkmead is analysing both oil
and gas, and wider energy sector opportunities, which could broaden
and enhance the Group's revenue stream.
Parkmead is well positioned for growth. 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 balanced,
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
Atholl Tweedie
Instinctif Partners Limited
(PR Adviser to
Parkmead) +44 (0) 20 7457 2020
David Simonson
George Yeomans
CHAIRMAN'S STATEMENT
2017 has been an important year of progress for Parkmead,
despite the challenging low oil price environment. Building on the
strong foundations established in recent years, the Company
significantly increased its position in key assets across its UK
portfolio through four separate transactions. The first of these
doubled Parkmead's stake in the Polecat and Marten oil fields,
increasing the Company's 2C resources by some 41%.
Parkmead's increased gas production pushed the Company into
gross profit in 2017, thanks to outstanding success at the Diever
West gas field and the cost reduction programme in the UK. Moving
into gross profit is an excellent achievement for Parkmead,
creating momentum to continue this progress.
The Group is currently analysing a number of value-adding
opportunities. These are primarily in oil and gas, but include
wider energy related opportunities, which could broaden and enhance
the Group's revenue stream.
Operations and Portfolio Growth
Parkmead has made further progress towards building a balanced
independent energy group of breadth and scale, by developing its
current portfolio and increasing its asset base through
acquisitions.
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 28th 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
major Buzzard field, and are located close to Parkmead's Greater
Perth Area ("GPA") oil hub project, in the prolific Moray Firth
area of the Central North Sea. Polecat and Marten are two sizeable
Buzzard sandstone oil accumulations, which are jointly estimated to
hold over 90 million barrels of oil in place and over 33 million
barrels of gross 2C resources. Through this acquisition, Parkmead
increased the Group's total 2C resources by 41%, from 41.9 to 59.1
million barrels of oil equivalent as at 31 December 2016.
Polecat and Marten have the potential to be highly valuable to
Parkmead given their close proximity to a number of possible export
routes, including Perth. Parkmead notes the recent Verbier
discovery made by Statoil in Blocks 20/5b & 21/1d,
approximately 12km east of Polecat and Marten. Verbier lies in the
same play fairway as these fields, and shares many similarities
with them. The discovery at Verbier could have the potential to
considerably increase the value of Polecat and Marten.
In September 2016, Parkmead increased its stake in the GPA by
securing additional equity in the Perth and Dolphin oil fields. The
Perth and Dolphin fields are located across Blocks 15/21a & c
and 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 GPA 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 a
key position 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 increasing its equity in these
licences, Parkmead has grown the Group's total proved and probable
(2P) reserves by 19% from 23.5 to 27.9 million barrels of oil
equivalent as at 31 December 2016.
Parkmead has made a number of important growth steps during 2017
in relation to the GPA project. An invitation to tender was
announced to the service provider market earlier in the year,
covering the pre-FEED, FEED and subsequent development phases of
the project. Parkmead is pleased to report that 13 alliance
submissions were received, comprising 35 companies, across all
project components of drilling, subsea construction and export
route options. After analysing the proposals, Parkmead is holding
discussions with a number of leading, internationally renowned
service companies.
The majority of the proposals have focused on innovative
approaches to the potential development, with significant new work
carried out on well planning, timeline to production and financing.
A number of the proposals have also offered finance to the Group
and Parkmead has received financial proposals for major parts of
the development, reducing the capital expenditure needed to bring
the project onstream.
Considerable progress was also made during the period at
Parkmead's Platypus gas field development. Detailed development
concept work has 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
Platypus development. The joint venture partnership is currently
working towards optimising the export route for Platypus ahead of
an offtake agreement. Various export options are available to the
partnership, given the extensive availability of infrastructure in
the UK Southern Gas Basin.
In April 2017, Parkmead significantly increased its stake in the
major Sanda North and Sanda South structures in the West of
Shetland area of the UK. These two large Palaeocene prospects are
both located within Block 205/13. Through this accretive step,
Parkmead has increased its equity in the licence from 56% to 100%.
The Sanda North and Sanda South prospects, which are both operated
by Parkmead, have the potential to contain 280 million barrels of
recoverable oil on a most likely, P50 basis.
In May 2017, the Company announced that it had signed a Sale and
Purchase Agreement with Verus Petroleum (SNS) Limited to acquire a
50% interest in UK North Sea Licence P.2209 which contains the
Farne Extension prospect and a further four prospective leads. The
acquisition was completed in August 2017, doubling Parkmead's
equity in the licence to 100%. Licence P.2209 comprises two
adjacent blocks, Block 42/19 and Block 42/20b. The range of
prospects and leads within this licence, which is operated by
Parkmead, have the potential to contain 175 billion cubic feet of
gas initially in place on a most likely, P50 basis.
Strong Netherlands asset base
The Group has substantially increased production from the Diever
West gas field over the last few months. The Akkrum formation
section of the field has been perforated, almost quadrupling the
perforated reservoir interval from approximately 16 to 62 feet.
Gross production at the end of October 2017 at Diever West was 39.3
million cubic feet per day (approximately 6,764 boepd, 507 boepd
net to Parkmead).
The Diever West field has performed above expectations since
first production, and new dynamic reservoir modelling suggests the
field has approximately 108 billion cubic feet of gross
gas-in-place volumes, more than double the post drill static volume
estimate of 41 billion cubic feet.
The portfolio comprises four separate producing gas fields with
a very low average operating cost of just US$10 per barrel of oil
equivalent. This profitable gas production from the Netherlands
provides important cash flow to the Group. This is valuable income
for Parkmead, particularly given the relatively low oil price
environment.
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. Production at the Brakel field is
set to recommence within the next few months following compression
work that is currently being undertaken to optimise production. The
field is expected to come back onstream at a gross rate of 1.85
million cubic feet per day (approximately 318 boepd, Parkmead 15%
working interest).
Detailed work is set to begin on the Ottoland discovery, located
on the same Andel Va block as the Brakel gas field. Structural and
static modelling, followed by seismic interpretation and depth
migration studies, will refine the volumetrics ahead of a
development plan potentially including a new horizontal well. In
addition, seismic reprocessing will be carried out on the Andel Vb
licence ahead of updating the prospectivity estimates for this
area. This extensive new work will be conducted throughout
2018.
At Parkmead's producing Geesbrug field, the potential for a new
low-cost infill well is being studied in order to maximise
production. New work is also being undertaken on the Papekop
onshore oil and gas discovery. Previous evaluation of the discovery
by the joint venture partnership indicates that Papekop contains
gross unrisked oil-in-place of 40 million barrels and gas-in-place
of 24 billion cubic feet on a most likely, P50 case. New structural
and static modelling will look to refine the volume estimates at
Papekop, after which development scenarios will be analysed and
planned.
Results
The Group's revenue for the year to 30 June 2017 was GBP4.1m
(2016: GBP10.4m), generating a milestone gross profit of GBP1.2m
(2016: GBP4.6m loss). This is a significant achievement and is
testament to the success of the Group's onshore gas portfolio and
careful financial discipline. The difference in revenue from 2016
to 2017 is a result of the Athena oil field being shut-in in
January 2016 as part of a cost reduction programme, substantially
reducing the Group's cost of sales from that 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$10
per barrel of oil equivalent. The new Diever West field in
particular has extremely low operating costs in the region of US$6
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 GBP2.3m (2016:
GBP0.5m), which included a charge in respect of share based
payments of GBP0.7m (2016: credit GBP1.4m).
Parkmead's total assets at 30 June 2017 were GBP82.2m (2016:
GBP87.5m). Available-for-sale financial assets were GBP3.2m (2016:
GBP2.6m). Cash and cash equivalents at year end were GBP26.4m
(2016: GBP28.3m). Parkmead is very carefully managed and is debt
free. The Group's net asset value was GBP68.9m (2016: GBP73.2m).
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 Parkmead's experienced team, its pro-active
portfolio management and its 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 2017 (2016: 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 2017, the value of this investment was GBP3.2m (30 June
2016: GBP2.6m). Faroe's closing share price at 30 June 2017 was
83.00 pence per share.
Outlook
The Directors of Parkmead are pleased with the Group's
continuing progress in building an energy company of increasing
breadth and scale. Parkmead has a balanced portfolio of licences,
growing gas production and a strong oil and gas reserves base.
Therefore, we believe Parkmead is well positioned to build further
on the progress to date and to capitalise on new opportunities. We
are delighted by the outperformance achieved at Diever West and the
increased stakes we have secured in key assets across the
portfolio.
As we move towards 2018, Parkmead maintains its appetite for
acquisitions and is looking carefully at both oil and gas, and at
wider energy sector opportunities. 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 successful energy group, and we
look forward to updating shareholders as we make further
progress.
Tom Cross
Executive Chairman
16 November 2017
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 35 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
boped Barrels of oil equivalent per day
Bcf Billions of cubic feet of gas
Gas in place The total quantity of gas that is estimated to exist originally in naturally
occurring reservoirs
Oil in place The total quantity of oil 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 Reserves 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
FEED Front End Engineering Design
Group statement of profit
or loss
for the year ended 30 June
2017
Note 2017 2016
GBP'000 GBP'000
Continuing operations
Revenue 4,137 10,441
Cost of sales (2,959) (15,061)
Gross profit / (loss) 1,178 (4,620)
Exploration and evaluation
expenses (2,669) (669)
Administrative expenses 2 (2,344) (527)
Operating loss (3,835) (5,816)
Finance income 281 164
Finance costs (749) (766)
Loss before taxation (4,303) (6,418)
Taxation (607) (274)
-------------------------------- ----- -------- ----------
Loss for the year attributable
to the equity holders of
the Parent (4,910) (6,692)
-------------------------------- ----- -------- ----------
Loss per share (pence)
Continuing operations
Basic 3 (4.96) (6.76)
Diluted (4.96) (6.76)
Group and company statement of profit or loss and
other comprehensive income
for the year ended 30 June 2017
Group Company
2017 2016 2017 2016
GBP'000 GBP'000 GBP'000 GBP'000
Profit / (loss)
for the year (4,910) (6,692) (1,882) 523
Other comprehensive
income
Items that may
be reclassified
subsequently to
profit or loss
Fair value gain
/ (loss) on available-for-sale
financial assets 583 (671) 583 (671)
---------------------------------- ---------- --------- --------- ---------
583 (671) 583 (671)
Other comprehensive
profit / (loss)
for the year, net
of tax 583 (671) 583 (671)
---------------------------------- ---------- --------- --------- ---------
Total comprehensive
loss for the year
attributable to
the equity holders
of the Parent (4,327) (7,363) (1,299) (148)
---------------------------------- ---------- --------- --------- ---------
Group and company statement of financial position
as at 30 June 2017
Group Company
2017 2016 2017 2016
GBP'000 GBP'000 GBP'000 GBP'000
Non-current assets
Property, plant and
equipment: development
& production 15,993 17,986 - -
Property, plant and
equipment: other 55 75 52 75
Goodwill 2,174 2,174 - -
Other intangible
assets - - - -
Exploration and evaluation
assets 33,382 34,642 - -
Investment in subsidiaries
and joint ventures - - 23,922 25,025
Available-for-sale
financial assets 3,227 2,644 3,227 2,644
Deferred tax assets 3 3 - -
Total non-current
assets 54,834 57,524 27,201 27,744
------------------------------ --------- --------- ----------- ----------
Current assets
Trade and other receivables 927 1,475 47,033 45,367
Current tax assets - 195 - -
Cash and cash equivalents 26,396 28,288 12,889 15,492
------------------------------ --------- --------- ----------- ----------
Total current assets 27,323 29,958 59,922 60,859
------------------------------ --------- --------- ----------- ----------
Total assets 82,157 87,482 87,123 88,603
------------------------------ --------- --------- ----------- ----------
Current liabilities
Trade and other payables (2,364) (2,528) (2,315) (2,581)
Current tax liabilities (457) - - -
Total current liabilities (2,821) (2,528) (2,315) (2,581)
------------------------------ --------- --------- ----------- ----------
Non-current liabilities
Other liabilities (70) (27) (68) (26)
Deferred tax liabilities (1,284) (1,284) - -
Decommissioning provisions (9,102) (10,479) - -
------------------------------ --------- --------- ----------- ----------
Total non-current
liabilities (10,456) (11,790) (68) (26)
------------------------------ --------- --------- ----------- ----------
Total liabilities (13,277) (14,318) (2,383) (2,607)
------------------------------ --------- --------- ----------- ----------
Net assets 68,880 73,164 84,740 85,996
------------------------------ --------- --------- ----------- ----------
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
Revaluation reserve (2,798) (3,381) (2,798) (3,381)
Retained deficit (35,660) (57,980) (19,800) (45,148)
------------------------------ --------- --------- ----------- ----------
Total Equity 68,880 73,164 84,740 85,996
------------------------------ --------- --------- ----------- ------------
Group statement of changes in equity
for the year ended 30 June 2017
Share Share Merger Revaluation Retained Total
capital premium reserve reserve deficit
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 July
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
----------------------------- --------- --------- --------- ------------ --------- -------------------
Loss for
the year - - - - (4,910) (4,910)
Fair value
gain on available-for-sale
financial
assets - - - 583 - 583
----------------------------- --------- --------- --------- ------------ --------- -------------------
Total comprehensive
income/(loss)
for the year - - - 583 (4,910) (4,327)
Transfer
merger reserve - - (27,187) - 27,187 -
Share-based
payments - - - - 43 43
----------------------------- --------- --------- --------- ------------ --------- -------------------
At 30 June
2017 19,533 87,805 - (2,798) (35,660) 68,880
----------------------------- --------- --------- --------- ------------ --------- -------------------
Company statement of changes in equity
for the year ended 30 June 2017
Share Share Merger Revaluation Retained Total
capital premium reserve reserve deficit
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 July
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
----------------------------- --------- --------- --------- ------------ --------- ------------------
Loss for
the year - - - - (1,882) (1,882)
Fair value
gain on available-for-sale
financial
assets - - - 583 - 583
----------------------------- --------- --------- --------- ------------ --------- ------------------
Total comprehensive
income/(loss)
for the year - - - 583 (1,882) (1,299)
Transfer
merger reserve - - (27,187) - 27,187 -
Share-based
payments - - - - 43 43
----------------------------- --------- --------- --------- ------------ --------- ------------------
At 30 June
2017 19,533 87,805 - (2,798) (19,800) 84,740
----------------------------- --------- --------- --------- ------------ --------- ------------------
Group and company statement of cashflows
for the year ended 30 June 2017
Group Company
2017 2016 2017 2016
Note GBP'000 GBP'000 GBP'000 GBP'000
Cashflows from operating
activities
Continuing activities 4 (464) (10,581) (2,605) (10,739)
Taxation credit 56 45 - -
---------------------------------- ----- --------- ---------- ------------- --------------
Net cash used operating
activities (408) (10,536) (2,605) (10,739)
---------------------------------- ----- --------- ---------- ------------- --------------
Cash flow from investing
activities
Interest received 271 132 24 102
Acquisition of exploration
and evaluation assets (1,164) (1,490) - -
Proceeds from available-for-sale
financial assets 10 32 10 32
Acquisition of property,
plant and equipment:
development and production (725) (621) - -
Acquisition of property,
plant and equipment:
other (47) (21) (43) (21)
Net cash (used in)
/ generated by investing
activities (1,655) (1,968) (9) 113
---------------------------------- ----- --------- ---------- ------------- --------------
Cash flow from financing
activities
Interest paid (8) (29) (1) -
Repayments of loans
and borrowings - (438) - -
Net cash used in
financing activities (8) (467) (1) -
---------------------------------- ----- --------- ---------- ------------- --------------
Net decrease in cash
and cash equivalents (2,071) (12,971) (2,615) (10,626)
---------------------------------- ----- --------- ---------- ------------- --------------
Cash and cash equivalents
at beginning of year 28,288 41,121 15,492 26,069
Effect of foreign
exchange rate differences 179 138 12 49
---------------------------------- ----- --------- ---------- ------------- --------------
Cash and cash equivalents
at end of year 26,396 28,288 12,889 15,492
---------------------------------- ----- --------- ---------- ------------- --------------
Notes to the financial information for the year ended 30 June
2017
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 2017 or 30 June 2016.
The financial information has been extracted from the audited
statutory accounts for the years ended 30 June 2017 and 30 June
2016. 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 2016 have been
delivered to the Registrar of Companies. The
statutory accounts for the year ended 30 June 2017 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 2016 and the statutory accounts for the year
ended 30 June 2016, which have been prepared
in accordance with International Financial Reporting Standards
("IFRS").
2. Administrative expenses
Administrative expenses include a charge in respect of a
non-cash revaluation of share appreciation rights (SARs) and share
based payments totalling GBP654,000 (2016: credit GBP1,359,000).
The SARs may be settled by cash and are therefore revalued with the
movement in share price. The valuation was impacted by the global
reduction in oil prices leading to a decline in share price between
30 June 2016 and 30 June 2017.
3. Loss per share
Loss per share attributable to equity holders of the Company
arising from continuing operations was as follows:
2017 2016
Loss per 1.5p ordinary share
from continuing operations
(pence)
Basic (4.96) (6.76)
Diluted (4.96) (6.76)
The calculations were based on the following information:
2017 2016
GBP'000 GBP'000
Loss attributable to ordinary
shareholders
Continuing operations (4,910) (6,692)
Total (4,910) (6,692)
------------------------------------- ----------- -----------
Weighted average number of
shares in issue
Basic weighted average number
of shares 98,929,160 98,929,160
------------------------------------- ----------- -----------
Dilutive potential ordinary
shares
Share options - -
------------------------------------- ----------- -----------
Loss per share is calculated by dividing the 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.
4. Notes to the statement of cashflows
Reconciliation of operating loss to net cash flow from
continuing operations
Group Company
2017 2016 2017 2016
GBP'000 GBP'000 GBP'000 GBP'000
Operating loss (3,835) (5,816) (1,916) (12,400)
Depreciation 667 2,724 66 81
Amortisation and exploration write off 2,424 478 - -
Provision for share based payments 43 (674) 43 (674)
Provision for intercompany receivable - - - (4,983)
Impairment in subsidiary - - - 17,405
Currency translation adjustments (179) (138) (12) (49)
Decrease / (increase) in receivables 548 4,473 (1,480) (8,362)
(Decrease) / increase in payables (132) (11,605) 694 (1,757)
Decrease in other provisions - (23) - -
----------------------------------------- -------- --------- -------- ---------
Net cash flow from operations (464) (10,581) (2,605) (10,739)
----------------------------------------- -------- --------- -------- ---------
5. Approval of this preliminary announcement
This announcement was approved by the Board of Directors on 16
November 2017.
6. 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 LIFFRLLLDLID
(END) Dow Jones Newswires
November 17, 2017 02:01 ET (07:01 GMT)
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