TIDMRMP
RNS Number : 1264L
Red Emperor Resources NL
29 September 2016
29 September 2016
Red Emperor Resources NL ("Red Emperor")
Annual Report for the Year Ending 30 June 2016
Please see below extracts from the Company's annual report for
the year ending 30 June 2016 (the "Annual Report"), being:
-- Extracts from the Directors' Report
-- Consolidated Statement of Comprehensive Income
-- Consolidated Statement of Financial Position
-- Consolidated Statement of Cash Flows
A copy of the entire Annual Report will be sent to shareholders
and is available on the Company's website -
www.redemperorresources.com
The information contained within this announcement is considered
to be inside information prior to its release, as defined in
Article 7 of the Market Abuse Regulation No. 596/2014, and is
disclosed in accordance with the Company's obligations under
Article 17 of those Regulations.
For further information please visit www.redemperorresources.com
or contact:
Red Emperor
Greg Bandy +61 8 9212 0102
Grant Thornton UK LLP
Philip Secrett/Jen Clarke/Jamie Barklem +44 20 7383 5100
Directors Report
The Directors present their report for Red Emperor Resources NL
("Red Emperor", "Red Emperor" or "the Company") and its
subsidiaries ("the Group") for the year ended 30 June 2016.
DIRECTORS
The names of the Company's Directors in office during the year
and until the date of the Annual Report are as
follows. Mr. Greg Bandy (Managing Director)
Mr. Jason Bontempo (Non-Executive Director)
Mr. Nathan Rayner (Non-Executive Director)
INTERESTS IN THE SECURITIES OF THE COMPANY
As at the date of the Annual Report, the interests of the
Directors in the securities of Red Emperor Resources NL are:
Director Ordinary Shares Options - exercisable
at $0.055 each
on or before
31-Dec-17
---------------- ----------------- ----------------------
Greg Bandy 1,000,000 -
---------------- ----------------- ----------------------
Jason Bontempo - -
---------------- ----------------- ----------------------
Nathan Rayner - 3,500,000
---------------- ----------------- ----------------------
RESULTS OF OPERATIONS
The Company's net loss after taxation attributable to the
members of Red Emperor for the year to 30 June 2016 was $9,034,572
(2015: $19,723,800).
DIVIDS
No dividend was paid or declared by the Company during the year
and up to the date of the Annual Report.
CORPORATE STRUCTURE
Red Emperor Resources NL is a company limited by shares, which
is incorporated and domiciled in Australia.
NATURE OF OPERATIONS AND PRINCIPAL ACTIVITIES
The principal activity of the Company during the financial year
was oil and gas exploration.
REVIEW OF OPERATIONS
Philippines (SC 55)
Red Emperor announced in August 2015 that the Hawkeye-1
exploration well was drilled to the planned total depth of 2,920m
with the top reservoir intersected at 2,710m. The well proved the
existence of hydrocarbons in SC55, however the hydrocarbon size
discovered was at the low end of expectations and not likely to be
economic to develop. Hawkeye-1 was plugged and abandoned. The
drilling program was executed smoothly, ahead of schedule and
significantly under budget with Red Emperor having paid a total of
approximately AU$4.8m for its 15% equity proportion.
The Company announced during the year that the Joint Venture
(JV) had formally received approval from the Philippines Department
of Energy for a two-year moratorium, until 23 December 2017, on
required work activity under Service Contract 55. During the
moratorium period, the consortium will conduct specialised
geophysical studies in the area surrounding the Hawkeye Prospect,
which encountered gas shows when it was drilled last year. Although
the Hawkeye well did not encounter gas in commercial quantities, it
proved the presence of an active petroleum system in the contract
area that hosts the "Cinco Prospect" as well as several other
leads.
As announced previously, Otto Energy Limited (ASX: OEL) has
advised the JV of its intention to exit the Block SC 55 as part of
its strategy to focus on its North American assets. Red Emperor
intends to have its full, proportionate interest be assigned and as
a result its working interest will increase from 15% to 37.5%.
Georgia
Red Emperor, a 20% shareholder of Strait Oil and Gas Limited
(Strait), was advised that the Georgian Government had confirmed
the validity of the Production Sharing Contract (PSC) across Block
VIa and the ability for Strait to access existing gas pipeline
infrastructure, free of taxes. This important confirmation paves
the way for ongoing sales negotiations with a potential purchaser
of the PSC to continue. Red Emperor is not involved in these
negotiations and can provide no certainty as to the likelihood of a
successful outcome. Due diligence by both parties remains
ongoing.
Corporate
In July 2015, the Company, through its London broker, Brandon
Hill Capital, and its Australian broker, 708 Capital, placed
65,750,000 new ordinary shares at 4 pence (A$0.08) per share to
raise GBP2.63 million (A$5.26 million) before expenses. Proceeds
from the capital raising and existing cash resources were used to
fund the drilling activities in the Philippines.
The Company also issued 4,320,000 unlisted options, exercisable
at $0.08 each on or before 2 July 2018 as part consideration to
advisors of the Company for capital raising fees associated with
the July 2015 Share Placement.
Red Emperor reviewed a number of new opportunities with both its
Australian and UK advisers respectively during the year. Whilst
none of the projects reviewed resulted in a transaction, the Board
remains committed to finding suitable new asset(s) to compliment
the Company's current portfolio while oil & gas prices remain
subdued.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
There have been no significant changes in the state of affairs
of the Group during the financial year, other than as set out in
the annual report.
SIGNIFICANT EVENTS AFTER THE REPORTING DATE
There have been no other significant events subsequent to the
end of the financial year to the date of the annual report.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS OF OPERATIONS
The Group will continue its investment in resource projects with
the object of identifying commercial resources. The Company intends
to pursue acquisition and investment opportunities to secure new
projects in the natural resources sector.
Greg Bandy
Managing Director
Perth, Western Australia
29 September 2016
Consolidated Statement of Profit or Loss and Other Comprehensive
Income
for the year ended 30 June 2016
Note 30 June 30 June
2016 2015
$ $
---------------------------------- ------ ----------- -------------
Continuing Operations
Interest received 3 239,406 338,059
Employee and director benefits
expense (265,950) (274,858)
Professional and Consultants (570,771) (301,157)
ASX and AIM and share registry
fees (83,731) (113,661)
Travel expenditure (72,799) (119,284)
Impairment expense (7,711,110) (19,355,434)
Gain on derivative liability 12 - 783
Realised gain on investment 8 - 320,000
Realised Foreign exchange gain 28,341 -
Unrealised Foreign exchange
(loss)/gain (423,331) 14,632
Share based payment expense 21(a) (30,934) (57,519)
Other expenses (143,693) (175,361)
Loss before income tax (9,034,572) (19,723,800)
Income tax expense 4 - -
Net loss for the year (9,034,572) (19,723,800)
Other comprehensive loss
Items that may be reclassified
to profit or loss
Other comprehensive loss 13,938 (356)
----------- -------------
Other comprehensive income for
the year net of tax 13,938 (356)
----------- -------------
Total comprehensive loss for
the year (9,020,634) (19,724,156)
----------- -------------
Loss per share
Basic loss per share (cents) 19 (2.13) (6.77)
Diluted loss per share (cents) 19 N/A N/A
The above Statement of Profit or Loss and Other Comprehensive
Income should be read in conjunction with the accompanying
notes.
Consolidated Statement of Financial Position as at 30 June
2016
2016 2015
Note $ $
----------------------------------------------------------- ------ ------------- ------------
Current Assets
Cash and cash equivalents 5 11,715,540 12,494,427
Trade and other receivables 6 33,415 618,316
Assets held for sale 7 - 3,000,000
Total Current Assets 11,748,955 16,112,743
------------- ------------
Non-Current Assets
Financial assets at fair value through profit and loss 8 400 400
Investment accounted for using the equity method 9 - -
Exploration and evaluation expenditure 10 - -
Total Non-Current Assets 400 400
------------- ------------
Total Assets 11,749,355 16,113,143
------------- ------------
Current Liabilities
Trade and other payables 11 69,946 819,254
Derivative financial liability 12 - -
------------- ------------
Total Current Liabilities 69,946 819,254
------------- ------------
Total Liabilities 69,946 819,254
------------- ------------
Net Assets 11,679,409 15,293,889
------------- ------------
Equity
Issued capital 13 57,329,505 52,167,148
Reserves 14 4,096,879 3,839,144
Accumulated losses 15 (49,746,975) (40,712,403)
------------- ------------
Total Equity 11,679,409 15,293,889
------------- ------------
The above Consolidated Statement of Financial Position should be read in conjunction with
the accompanying notes.
Consolidated Statement of Changes in Equity for the year ended
30 June 2016
Foreign Share
exchange based
Issued Accumulated translation payments
capital losses reserve reserve Total
$ $ $ $ $
--------------------------- ----------- ------------- ------------- ---------- -------------
Balance at 1 July
2014 49,646,733 (20,988,603) (28,405) 3,831,386 32,461,111
----------- ------------- ------------- ---------- -------------
Total comprehensive
loss for the year
Loss for the year - (19,723,800) - - (19,723,800)
Other Comprehensive
Loss - - (356) - (356)
Total comprehensive
loss for the year - (19,723,800) (356) - (19,724,156)
----------- ------------- ------------- ---------- -------------
Transactions with
owners in their capacity
as owners
Issue of shares 3,475,965 - - - 3,475,965
Share based payments 21,000 - - 36,519 57,519
Cost of issue (976,550) - - - (976,550)
Balance at 30 June
2015 52,167,148 (40,712,403) (28,761) 3,867,905 15,293,889
----------- ------------- ------------- ---------- -------------
Balance at 1 July
2015 52,167,148 (40,712,403) (28,761) 3,867,905 15,293,889
----------- ------------- --------- ---------- ------------
Total comprehensive
loss for the year
Loss for the year - (9,034,572) - - (9,034,572)
Other Comprehensive
Loss - - 13,938 - 13,938
Total comprehensive
loss for the year - (9,034,572) 13,938 - (9,020,634)
----------- ------------- --------- ---------- ------------
Transactions with
owners in their capacity
as owners
Issue of shares 5,763,718 - - - 5,763,718
Share based payments - - - 30,934 30,934
Cost of issue (601,361) - - 212,863 (388,498)
Balance at 30 June
2016 57,329,505 (49,746,975) (14,823) 4,111,702 11,679,409
----------- ------------- --------- ---------- ------------
The above Consolidated Statement of Changes in Equity should be
read in conjunction with the accompanying notes.
Consolidated Statement of Cash Flows for the year ended 30 June
2016
2016 2015
Note $ $
---------------------------------------------------------------------- ----- ------------ ------------
Cash flows from operating activities
Payments to suppliers and employees (1,113,641) (1,020,479)
Interest received 239,406 338,059
Finance cost 28,341 (1,705)
Net cash used in operating activities 5 (845,894) (684,125)
------------ ------------
Cash flows from investing activities
Payments for purchase of equities - (182,299)
Payments for exploration and evaluation (5,119,286) (365,705)
Refund of Hawkeye-1 well costs 397,822 -
Proceeds from sale of equities - 798,279
Payments for investment in associate - (59,140)
------------ ------------
Net cash (used in) / provided by investing activities (4,721,464) 191,135
------------ ------------
Cash flows from financing activities
Proceeds from issue of shares and options 5,600,300 2,802,618
Payment of share issue costs (388,498) (136,550)
Net cash provided by financing activities 5,211,802 2,666,068
------------ ------------
Net (decrease) / increase in cash and cash equivalents (355,556) 2,173,078
Cash and cash equivalents at beginning of year 12,494,427 10,321,349
Effects of exchange rate changes on cash and cash equivalents (423,331) -
------------ ------------
Cash and cash equivalents at the end of the year 5 11,715,540 12,494,427
------------ ------------
The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying
notes.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR SEDFIAFMSEFU
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