TIDMTRP
RNS Number : 6292A
Tower Resources PLC
30 September 2015
Tower Resources plc
Operational Update and Interim Results to 30 June 2015
30 September 2015
Tower Resources plc (the "Company" or "Tower" (TRP.L, TRP LN)),
the AIM-listed Africa-focussed oil and gas exploration company,
announces an Operational Update and its Interim Results for the six
months ended 30 June 2015.
HIGHLIGHTS
o Signing in September 2015 of the Thali Block PSC, located in
the prolific proven producing Niger delta, offshore Cameroon; Tower
is now reviewing existing discoveries (7 million bbls) and upside,
as well as planning for H1 2016 3D seismic;
o Institutional placing in July 2015 raising approximately
GBP5.2 million (US$8.0 million), after expenses, at a price of 0.19
pence per share: Key support from M&G Investments who now hold
an 18% interest in the enlarged share capital and directors,
consultants and employees who now hold a 15%+ interest;
o Completion of the Company's Initial Period commitments in
Blocks 40 and 41 of the frontier Zambezi basin, Zambia, with
encouraging results;
o Application for new licences covering PEL0010 and other areas
submitted to the Namibian Ministry of Mines and Energy following
PEL0010 relinquishment notice being submitted by the Operator,
Repsol;
o Drilling of the unsuccessful Badada-1 exploration well in the
Block-2B, Anza Basin, onshore Kenya. Premier Oil plc (55%) and
Tower (15%) have given notice to withdraw from the licence;
o Cost reductions including closure of regional East Africa
office in Uganda and relocation of Tower's corporate office;
and
o Appointment to the Board of highly experienced technical
experts, Phil Frank as Independent Non-Executive Director and Nigel
Quinton as Exploration Director.
Graeme Thomson, CEO, commented "Our September entry into the
Cameroon shallow waters marks a shift in our risk profile from
frontier towards proven producing basins and introduces an asset
with existing discoveries and significant upside to the Tower
portfolio. In Namibia, we have a number of applications in process
as we seek to build our acreage position in what remains a hugely
underexplored but highly prospective area. Our early stage field
work in Zambia has been encouraging, and we have now received
approvals in South Africa to move into the next licence stage on
Algoa-Gamtoos. These positive developments have been made possible
largely through the support of existing and major new institutional
shareholders and the unstinting efforts of the directors, employees
and consultants, for which we are grateful.
We have now refocussed our portfolio and resources to areas
predominantly on the Atlantic Margin where we are confident we can
add value even in this difficult market. Accordingly, we have
withdrawn from areas where we feel there is no medium-term
likelihood of commercially worthwhile success. Our near-term
commitments are low, and yet we have significant working interest
holdings which we aim to farm down as appropriate to manage our
risk-reward position. Tower intends to take advantage of the
current difficulties in the sector to continue to assemble a high
quality acreage portfolio in our focus areas. "
Contacts
Tower Resources plc
Jeremy Asher (Chairman)
Graeme Thomson (CEO)
Andrew Matharu (VP - Corporate Affairs)
+44 20 7253 6639
Peel Hunt LLP (Nominated Adviser and Joint Broker)
Richard Crichton/Ross Allister
+44 20 7418 8900
GMP Securities Europe LLP (Joint Broker)
Rob Collins/Emily Morris
+44 20 7647 2800
Vigo Communications
Chris McMahon/ Alex Aleksandrov
+44 20 7016 9572
JOINT CHAIRMAN AND CHIEF EXECUTIVE OFFICER'S STATEMENT FOR THE
SIX MONTHS ENDED 30 JUNE 2015
Dear Shareholder,
The year to date has been a very tough one for the exploration
and production sector but we have positioned ourselves favourably
with a growing focus on proven and prospective basins and
increasingly as an early-stage Operator.
Our September entry into the Cameroon shallow waters marks a
shift in our risk profile from frontier towards proven producing
basins and introduces an asset with existing discoveries of some
seven million barrels to the Tower portfolio. In Namibia, we have a
number of applications in process as we seek to build our acreage
position in what remains a hugely underexplored but highly
prospective area. Our early stage fieldwork in Zambia has been
encouraging, and we have now received approvals in South Africa to
move into the next licence stage on Algoa-Gamtoos. These positive
developments have been made possible largely through the support of
existing and major new institutional shareholders and the
unstinting efforts of the directors, employees and consultants for
which we are grateful.
We have now refocused our portfolio and resources to areas,
predominantly on the Atlantic Margin, where we are confident we can
add value even in this difficult market. Accordingly, we have
withdrawn from areas where we feel there is no medium-term
likelihood of commercially worthwhile success. Our near-term
commitments are low, and yet we have significant working interest
holdings which we aim to farm down in due course as appropriate to
manage our risk-reward position.
Our July 2015 placing to raise c$8.0 million net was
over-subscribed with a mixture of existing and new major
institutional shareholders, including M&G Investments with an
18% interest in the current issued share capital and Standard Life
with a 5% interest. We are grateful for their support. Like all
companies in the sector, our share price has been hit hard by
external factors, not least the sharp drop in oil prices, which
have fallen by about two-thirds in the last year. However, our
directors, employees and consultants showed their belief in the
Company, subscribing $1.4 million of the Placing funds.
With the increase in technical and operational capability
required for Tower's portfolio, we have been seeking to add a
broader range of technical voices to the Boardroom. Accordingly, we
are delighted to welcome Dr Phil Frank as Independent Non-Executive
Technical Director and Nigel Quinton, formerly Head of Exploration,
as Executive Exploration Director. Phil and Nigel each have over 30
years' extensive technical experience and expertise and will
contribute greatly to the Company's development.
We believe Tower is well positioned, we are comfortable with our
current funding position, and we are optimistic about the
future.
Jeremy Asher Graeme Thomson
Chairman Chief Executive Officer
OPERATIONAL UPDATE
__________________________________________________________________________________
JULY 2015 PLACING
On 14 July 2015, the Company announced a placing and
subscription to institutional and other investors of 2,904,989,747
new ordinary shares in the capital of the Company at a price of
0.19 pence per share to raise net proceeds of approximately GBP5.2
million (US$8.0 million). Of note, M&G Investments invested
GBP2.3 million ($3.6 million) in the Placing and currently holds an
18% interest in the enlarged share capital of the Company.
M&G's investment in Tower was made in conjunction with the
Company's broader strategy in Namibia.
CAMEROON
Negotiations for a 100% interest in the shallow water Thali
Block PSC (the "Thali PSC" or the "PSC", previously referred to as
"Dissoni") continued through 2015 and the PSC was signed with the
Government of Cameroon on 15 September 2015. Thali is located in
the Rio del Rey Basin, a proven producing sub-basin of the
petroliferous Niger Delta, offshore Cameroon.
The PSC covers an area of 119.2 km(2) , with water depths
ranging from 8 to 48 metres. The Rio del Rey basin has, to date,
produced over one billion barrels of oil and has estimated
remaining recoverable reserves of 1.2 billion boe, primarily within
water depths of less than 2,000 metres.
The Thali Block includes existing oil and gas discoveries
totalling 7 million barrels and contains a number of already
identified exploration opportunities across four distinct play
systems. We believe that the application of high quality modern
seismic technology has the potential to add further incremental
reserves to existing discoveries to achieve commerciality and also
de-risk the significant potential of the additional plays.
On signing the Thali PSC, a three-year Initial Exploration
Period commenced with a work programme designed to unlock both
appraisal and exploration potential. Tower's initial priority is
the acquisition of 3D seismic in the first half of 2016. The
seismic will be used to update the existing 24-year-old data set to
allow better resolution of shallow plays as well as imaging of
deeper sections. Tower expects to be drilling in 2017/18. The
market downturn in the services sector presents the opportunity for
the Company to leverage lower seismic and drilling costs and a
partner will be sought to share Tower's financial commitment and
provide additional technical input.
Entry into Cameroon marks a strategic shift in our risk
management philosophy, introducing an asset within a proven
producing basin to Tower's portfolio of high exploration upside
opportunities.
NAMIBIA
(MORE TO FOLLOW) Dow Jones Newswires
September 30, 2015 02:03 ET (06:03 GMT)
Tower, through its wholly-owned subsidiary, Neptune Petroleum
(Namibia) Limited ("Neptune"), received formal notification from
Repsol Exploration (Namibia) (Pty) Limited ("Repsol"), the Operator
of Namibia PEL0010 (Neptune 30% working interest), of their
decision not to proceed into the second year of the third and final
renewal period on PEL0010, which would have required a commitment
to drill a well. The first year of the third renewal period expired
on 23 August 2015 and therefore the joint venture's interest in
PEL0010 has been relinquished with all current licence obligations
being met. As part of a wider strategy for Namibia, Tower has
itself submitted a proposal to the Namibian Ministry of Mines and
Energy for a new licence covering the former PEL0010 acreage. As
previously announced, the Company is also negotiating other new
operated acreage positions offshore Namibia and these will be
announced once they have been formally awarded.
ZAMBIA
Tower is the Operator and Licence holder of Blocks 40 and 41
within the frontier Zambesi basin, onshore Zambia, and during
August 2014 completed a comprehensive programme of geological
fieldwork as part of the initial work period. Analysis of the
samples taken from the fieldwork programme continued throughout H1
2015. Results are encouraging and indicate that elements for a
working petroleum system are present with the potential for both
oil and gas generation. No modern seismic or drill data exists in
this basin.
In August 2015, Tower completed its second programme of
fieldwork and obtained more encouragement that the area has
significant exploration potential. The presence of potential source
rock, reservoir and seal is now proven.
Given the existing surrounding infrastructure and constrained
domestic energy market, Tower believes that there is a significant
gas to power opportunity in the area, with its Blocks well
positioned relative to markets and distribution infrastructure.
The three-year secondary period has been split into three one
year periods with respective commitments to further field work,
airborne gravity and magnetic data acquisition and interpretation,
and a 2D seismic programme. The acreage can be relinquished at the
end of each annual decision point if results are discouraging, so
commitments are light and proportionate to prospectivity. Tower is
actively looking for a partner to accelerate the programme so that
prospects could be drilled as early as 2017.
SOUTH AFRICA
In September 2015, approval was received to enter into the
two-year First Renewal Period on the offshore Algoa-Gamtoos licence
(Tower 50%). Evaluation continues by the Operator, New Age (50%),
of the previously acquired 3D and 2D seismic: several prospective
plays are being worked up. Whilst commitments are limited to
additional geophysical work, further seismic acquisition is
planned, although this will not be possible before 2017 due to
environmental restrictions. It is anticipated that drilling in
2016/17 by the "majors" will materially help to prove the potential
of these various plays. A funding partner will be sought in due
course.
Approval to convert the Orange Basin TCP (Tower 50%) into an
Exploration Right is awaited.
KENYA
In February 2015, Tower announced that the Block 2B Badada-1
well (Tower 15%) had been drilled to a total depth of 3,500 metres
MDBRT and following completion of logging operations would be
plugged and abandoned as a dry hole.
In May 2015 the Kenyan Ministry of Energy granted an extension
of six months to the First Additional Exploration Period to 30
November 2015 to enable the joint-venture partners to assess the
results of the well and its implication for any remaining
prospectivity on the block.
Following Tower's detailed assessment a decision has
nevertheless been made to exit the licence effective 31 August
2015, partly in order to prioritise its more prospective licences.
Premier Oil plc (55%) has also given notice to withdraw, and so the
operator, Taipan, will have a 100% interest. All licence
commitments of the First Additional Exploration Period have been
met.
NEW VENTURES
As a result of renewed political uncertainty in Madagascar and a
lack of progress with negotiations for Block 2102, the Company has
withdrawn its interest for the time being.
Tower will continue to be highly selective in pursuing new
ventures within its stated strategy and areas of focus, but
believes there will be outstanding opportunities as a result of the
current difficult market conditions.
OFFICES
With the Group's focus now being on the western parts of Africa,
the East African Regional office in Kampala, Uganda, has been
closed.
Following the completion of a review into head office
requirements and expenditures, the Company has now moved to more
suitable and cost effective premises at:
Tower Resources plc,
2(nd) Floor,
127 Cheapside
London EC2V 6BT.
APPOINTMENT OF NEW DIRECTORS
With the increase in Technical and Operational capability
required for Tower's portfolio, it has appointed Dr Phil Frank as
Independent Technical Non-Executive Director and Nigel Quinton,
formerly Head of Exploration, as Executive Exploration Director.
They both have many decades of experience in the international
exploration and production arenas, including extensive experience
in Africa. In the context of Tower's growing portfolio, including
the recent signing of the Thali PSC, the Company will be enhanced
by having their additional technical expertise on the Board.
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2015
During the six months to 30 June 2015, the Group capitalised
exploration and evaluation costs totalling $3.7 million. Included
within this figure were expenditures subsequently impaired
totalling $2.8 million, being approximately $2.2 million in Kenya
and $0.6 million in Namibia. Impairments in the first half of 2014
were $45.5 million. Subject to the resale of unused inventory items
in Kenya, it is not expected that there will be any further
material impairments for the year relating to Block 2B.
In addition to advancing the exploration programmes on existing
licences, the Group continues to actively seek out new venture
opportunities and spent a total of $1.5 million to 30 June 2015 (H1
2014: $1.3 million). On 16 September 2015, the Group announced the
award of the Thali licence, of which $0.8 million was included
within these pre-licence expenditures.
The loss for the period was $5.4 million (H1 2014: loss $49.1
million) as detailed in the Interim Consolidated Statement of
Comprehensive Income.
INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Six months ended 30 June 2015 Six months ended 30 June 2014
(unaudited) (unaudited)
Note $ $
------------------------------------------ ----- ------------------------------ --- ------------------------------
Revenue - -
Cost of sales - -
------------------------------------------ ----- ------------------------------ --- ------------------------------
Gross profit - -
Other administrative expenses (1,047,275) (2,290,861)
Pre-licence expenditures (1,511,445) (1,315,770)
Impairments 4 (2,841,308) (45,476,399)
------------------------------------------ ----- ------------------------------ --- ------------------------------
Total administrative expenses (5,400,028) (49,083,030)
------------------------------------------ ----- ------------------------------ --- ------------------------------
Group operating loss (5,400,028) (49,083,030)
Finance income 1,436 5,512
Finance expense (5,781) -
------------------------------------------ ----- ------------------------------ --- ------------------------------
Loss for the period before taxation (5,404,373) (49,077,518)
Taxation - -
------------------------------------------ ----- ------------------------------ --- ------------------------------
Loss for the period after taxation (5,404,373) (49,077,518)
Other comprehensive income - -
------------------------------------------ ----- ------------------------------ --- ------------------------------
Total comprehensive expense for the
period (5,404,373) (49,077,518)
------------------------------------------ ----- ------------------------------ --- ------------------------------
Basic loss per share (USc) 3 (0.14c) (1.51c)
------------------------------------------ ----- ------------------------------ --- ------------------------------
(MORE TO FOLLOW) Dow Jones Newswires
September 30, 2015 02:03 ET (06:03 GMT)
Diluted loss per share (USc) 3 (0.14c) (1.51c)
------------------------------------------ ----- ------------------------------ --- ------------------------------
INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION
30 June 2015(unaudited) 31 December 2014
(audited)
Note $ $
----------------------------------- ----- ------------------------ --- -----------------
Non-current assets
Property, plant and equipment 6,026 2,611
Exploration and evaluation assets 4 34,834,483 34,004,145
----------------------------------- ----- ------------------------ --- -----------------
34,840,509 34,006,756
----------------------------------- ----- ------------------------ --- -----------------
Current assets
Trade and other receivables 5 2,623,066 2,313,714
Cash and cash equivalents (1) 1,227,810 7,941,833
----------------------------------- ----- ------------------------ --- -----------------
3,850,876 10,255,547
----------------------------------- ----- ------------------------ --- -----------------
Total assets 38,691,385 44,262,303
----------------------------------- ----- ------------------------ --- -----------------
Current liabilities
Trade and other payables 6 2,691,425 4,058,445
----------------------------------- ----- ------------------------ --- -----------------
Total liabilities 2,691,425 4,058,445
----------------------------------- ----- ------------------------ --- -----------------
Net assets 35,999,960 40,203,858
----------------------------------- ----- ------------------------ --- -----------------
Equity
Share capital 7 6,384,551 6,346,538
Share premium 137,703,078 137,554,592
Retained losses (108,087,669) (103,697,272)
----------------------------------- ----- ------------------------ --- -----------------
Total shareholders' equity 35,999,960 40,203,858
----------------------------------- ----- ------------------------ --- -----------------
(1) Includes restricted cash of $nil (2014: $693k).
Signed on behalf of the Board of Directors
Graeme Thomson
Chief Executive Officer
29 September 2015
INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share-based
Share Share payments Retained
capital premium reserve (1) losses Total
$ $ $ $ $
At 1 January 2014 4,398,933 73,954,330 2,368,079 (51,126,593) 29,594,749
----------------------------------------------- ---------- ------------ ------------ -------------- -------------
Shares issued for cash net of costs 966,729 31,462,438 - - 32,429,167
Shares issued on acquisition of subsidiary 920,700 31,295,880 - - 32,216,580
Shares issued on settlement of third party
fees 12,511 466,482 - - 478,993
Share-based payment charges - - 544,006 - 544,006
Total comprehensive income for the period - - - (49,077,518) (49,077,518)
Transfers between reserves - - (817,119) 817,119 -
At 30 June 2014 6,298,873 137,179,130 2,094,966 (99,386,992) 46,185,977
----------------------------------------------- ---------- ------------ ------------ -------------- -------------
Shares issued on settlement of third party
fees 47,665 375,462 - - 423,127
Share-based payment charges - - 1,120,725 - 1,120,725
Total comprehensive income for the period - - - (7,525,971) (7,525,971)
Transfers between reserves - - 360,991 (360,991) -
At 31 December 2014 6,346,538 137,554,592 3,576,682 (107,273,954) 40,203,858
----------------------------------------------- ---------- ------------ ------------ -------------- -------------
Shares issued for cash net of costs 5,516 15,500 - - 21,016
Shares issued on settlement of third party
fees 32,497 132,986 - - 165,483
Share-based payment charges - - 1,013,976 - 1,013,976
Total comprehensive income for the period - - - (5,404,373) (5,404,373)
At 30 June 2015 6,384,551 137,703,078 4,590,658 (112,678,327) 35,999,960
----------------------------------------------- ---------- ------------ ------------ -------------- -------------
(1) The share-based payment reserve has been included within the
retained loss reserve and is a non-distributable reserve.
INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS
Six months ended 30 June 2015 (unaudited) Six months ended 30
June 2014
(unaudited)
Note $ $
---------------------------------------- ----- ------------------------------------------ --- --------------------
Cash outflow from operating activities
Group operating loss for the period (5,400,028) (49,083,030)
Depreciation of property, plant and
equipment 826 135
Share-based payments 8 1,013,976 544,006
Impairment of intangible exploration
and evaluation assets 4 2,841,308 45,476,399
---------------------------------------- ----- ------------------------------------------ --- --------------------
Operating cash flow before changes in
working capital (1,543,918) (3,062,490)
(Increase)/decrease in receivables and
prepayments (309,352) 1,915,116
Decrease in trade and other payables (1,201,537) (152,548)
---------------------------------------- ----- ------------------------------------------ --- --------------------
Cash used in operations (3,054,807) (1,299,922)
Interest received 1,436 5,512
---------------------------------------- ----- ------------------------------------------ --- --------------------
Cash used in operating activities (3,053,371) (1,294,410)
---------------------------------------- ----- ------------------------------------------ --- --------------------
Investing activities
Exploration and evaluation costs 4 (3,671,646) (11,720,040)
Purchase of property, plant and (4,241) -
equipment
Cash element of licence farm-in - (4,025,474)
Cash acquired on acquisition of
subsidiary - 89,749
---------------------------------------- ----- ------------------------------------------ --- --------------------
Net cash used in investing activities (3,675,887) (15,655,765)
---------------------------------------- ----- ------------------------------------------ --- --------------------
Financing activities
Cash proceeds from issue of ordinary
share capital net of issue costs 7 21,016 32,429,167
(MORE TO FOLLOW) Dow Jones Newswires
September 30, 2015 02:03 ET (06:03 GMT)
Finance costs (5,781) -
---------------------------------------- ----- ------------------------------------------ --- --------------------
Net cash from financing activities 15,235 32,429,167
---------------------------------------- ----- ------------------------------------------ --- --------------------
(Decrease)/increase in cash and cash
equivalents (6,714,023) 15,478,992
Cash and cash equivalents at beginning
of year 7,941,833 17,454,712
---------------------------------------- ----- ------------------------------------------ --- --------------------
Cash and cash equivalents at end of
period 1,227,810 32,933,704
---------------------------------------- ----- ------------------------------------------ --- --------------------
NOTES TO THE INTERIM FINANCIAL INFORMATION
1. Accounting policies
a) Basis of preparation
This interim financial report, which includes a condensed set of
financial statements for the Company and its subsidiary
undertakings ("the Group"), has been prepared using the historical
cost convention and based on International Financial Reporting
Standards ("IFRS") including IAS 34 'Interim Financial Reporting'
and IFRS 6 'Exploration for and Evaluation of Mineral Reserves', as
adopted by the European Union ("EU").
The condensed set of financial statements for the six months
ended 30 June 2015 is unaudited and does not constitute statutory
accounts as defined in Section 434 of the Companies Act 2006. They
have been prepared using accounting bases and policies consistent
with those used in the preparation of the audited financial
statements of the Company and the Group for the year ended 31
December 2014 and those to be used for the year ending 31 December
2015. The comparative figures for the half year ended 30 June 2014
are unaudited. The comparative figures for the year ended 31
December 2014 are not the Company's full statutory accounts but
have been extracted from the financial statements for the year
ended 31 December 2014 which have been delivered to the Registrar
of Companies and the auditors' report thereon was unqualified and
did not contain a statement under sections 498 (2) and 498(3) of
the Companies Act 2006.
This half-yearly financial report was approved by the Board of
Directors on 29 September 2015.
b) Going concern
The Group's business activities, future development, financial
performance and position are discussed in the Operational
Update.
At 30 June 2015 the Group had cash balances of $1.2 million and
announced the completion of further equity funding totalling c$8.0
million on 15 July 2015. Subsequent to this fundraising, the
Directors believe that the Group now has sufficient cash resources
to meet its committed capital expenditure programme for at least
the next 12 months. As a consequence, the Directors believe that
the Group is well placed to manage its business risks and have a
reasonable expectation of it continuing in operational existence
for the foreseeable future. The Directors therefore continue to
adopt the going concern basis of accounting in preparing the
interim report and accounts.
2. Operating segments
The Group has two reportable operating segments: Africa and Head
Office. Non-current assets and operating liabilities are located in
Africa, whilst the majority of current assets are carried at Head
Office. The Group has not yet commenced production and therefore
has no revenue. Each reportable segment adopts the same accounting
policies. In compliance with IAS 34 'Interim Financial Reporting'
the following table reconciles the operational loss and the assets
and liabilities of each reportable segment with the consolidated
figures presented in these Financial Statements, together with
comparative figures for the period ended 30 June 2014.
Africa Head Office Total
Six months Six months Six months Six months Six months Six months
ended 30 June ended 30 June ended 30 June ended 30 June ended 30 June ended 30 June
2015 2014 2015 2014 2015 2014
(unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited)
$ $ $ $ $ $
---------------- --------------- --------------- --------------- --------------- --------------- ---------------
Loss by
reportable
segment 3,089,774 45,646,902 2,314,599 3,430,616 5,404,373 49,077,518
Total assets by
reportable
segment (1) 36,870,172 46,179,123 1,821,213 26,480,446 38,691,385 72,659,569
---------------- --------------- --------------- --------------- --------------- --------------- ---------------
Total
liabilities by
reportable
segment (2) (2,112,333) (24,330,480) (579,092) (2,143,112) (2,691,425) (26,473,592)
---------------- --------------- --------------- --------------- --------------- --------------- ---------------
(1) Carrying amounts of segment
assets exclude investments in
subsidiaries.
(2) Carrying amounts of segment
liabilities exclude intra-group
financing.
3. Loss per ordinary share
Basic & Diluted
30 June 2015 30 June 2014
Loss for the year $5,404,373 $49,077,518
Weighted average number of ordinary shares in issue during the year 3,814,453,006 3,251,789,451
Dilutive effect of share options outstanding - -
Fully diluted average number of ordinary shares during the year 3,814,453,006 3,251,789,451
Loss per share (USc) 0.14c 1.51c
---------------------------------------------------------------------- -------------- --------------
4. Intangible Exploration and Evaluation (E&E) assets
Exploration and evaluation assets Goodwill Total
$ $ $
---------------------------------- ------------ -------------
Cost
At 1 January 2015 114,180,158 8,023,292 122,203,450
Additions during the period 3,671,646 - 3,671,646
At 30 June 2015 117,851,804 8,023,292 125,875,096
------------------------------- ---------------------------------- ------------ -------------
Amortisation and impairment
At 1 January 2015 (80,219,803) (7,979,502) (88,199,305)
Impairment during the period (2,841,308) - (2,841,308)
At 30 June 2015 (83,062,138) (7,979,502) (91,041,640)
------------------------------- ---------------------------------- ------------ -------------
Net book value
At 30 June 2015 34,790,693 43,790 34,834,483
------------------------------- ---------------------------------- ------------ -------------
At 31 December 2014 33,960,355 43,790 34,004,145
------------------------------- ---------------------------------- ------------ -------------
During the period the Company impaired assets totalling $2.8
million in accordance with IAS 36 "Impairment of Assets" following
the completion of drilling operations in Kenya (Badada-1 well) in
February 2015 and the continuing costs associated with the
appraisal of its Namibian licence on which an unsuccessful well was
drilled in June 2014 (Welwitschia-1A well). As the interests in
these licences were subsequently relinquished the Directors believe
it is appropriate to make a full provision against their costs.
Carrying values will be reviewed annually.
5. Trade and other receivables
30 June 2015 31 December 2014
(unaudited) (audited)
$ $
----------------------------- -------------- -----------------
Trade and other receivables 2,623,066 2,313,714
----------------------------- -------------- -----------------
6. Trade and other payables
30 June 2015 31 December 2014
(unaudited) (audited)
$ $
-------------------------- -------------- -----------------
Trade and other payables 2,493,720 3,989,244
Accruals 197,705 69,201
2,691,425 4,058,445
-------------------------- -------------- -----------------
7. Share capital
30 June 2015(unaudited) 31 December 2014
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