TIDMWBN
RNS Number : 3505N
Woburn Energy PLC
01 September 2011
FOR IMMEDIATE RELEASE 1 September 2011
Woburn Energy Plc
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2011
Woburn Energy Plc ("Woburn" or "the Company"; stock code: WBN),
the UK-based exploration company, announces its interim results for
the six months ended 30 June 2011.
CHAIRMAN'S STATEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 2011
Woburn's new ventures strategy is to look for new onshore and
shallow offshore, oil or gas opportunities within its current
geographic areas of activity together with those proven oil basins
where it or its directors have experience. In particular, Europe,
Africa, the Middle East and Central Asia have been identified as
primary target areas. Initially, Woburn is seeking to acquire
production to create immediate cash flow and profits and it is also
actively examining development and appraisal opportunities for
longer-term growth and upside for the Company. Suitable exploration
opportunities that fit with our planned portfolio of producing and
development assets will also be considered.
The Company has evaluated a number of production and exploration
opportunities in Europe and Central Asia over the last 18 months.
Considerable effort and funds were expended on progressing these
opportunities, in particular on the MKK assets in Pakistan which,
as I reported in the 2010 Annual Report, frustratingly we were
unable to complete due to events beyond our control.
As part of this process and as previously reported, Cetus
Investment Resources Inc, our 86% controlling shareholder, provided
the Company with additional loan funding to finance, inter alia,
due diligence and professional costs on potential new projects
which the Company was reviewing.
The Board is now reviewing alternative potential projects that
meet our strategic objectives for the ongoing development of the
Company and has identified several for in-depth investigation.
Colombia
Woburn has a 51% shareholding in Las Quinchas Resource Corp.
("LQRC"), which owns a 50% non-operated interest in the Las
Quinchas Association Contract. Due to required relinquishments, the
Joint Venture is looking to retain the area around the heavy oil
and gas discoveries at Acacia Este, Arce and Baul at a minimum.
This proposed area is a 5km protection zone around these defined
potentially commercial areas and is subject to approval by
Ecopetrol.
However, Woburn has recognised that it could be some time before
there is any further progress on developing these areas and
therefore has decided that the existing invested funds could be
better utilised on assets that would have a more immediate impact
on the Company's financial condition and potential growth. It
therefore announced in June that it is seeking a buyer for its
Colombian interests.
Finance
In the absence of funds from the sale of the Colombian interests
or from other sources, the Company remains reliant on the ongoing
financial support of Cetus, to meet its operating costs. The
Company intends to meet any agreed payment of LQRC's unpaid
Colombian operator billings, which were $5,012,835 at the
period-end, from a sale of its interests there.
The consolidated statement of financial position at the end of
June 2011 includes a net total of $3,424,891 shown as Asset Held
For Sale. This is comprised of the assets and liabilities of LQRC;
more details are set out in note 3. On the basis of the information
presently available to the Directors they have concluded that no
impairment is currently required.
I regret that events beyond our control have prevented the
Company from as yet completing a transforming transaction. Woburn
continues to seek a longer term solution to its ongoing cash and
cash flow needs and to achieve its growth objectives.
Arif Kemal
Qualified Person:
Dr John Cubitt (a Director of the Company) has been involved in
the oil and gas production industry for more than 31 years. Dr John
Cubitt is a registered Chartered Geologist (CGeol) and has a BSc
and PhD in geology. He has compiled, read and approved the
technical disclosure as it relates to Woburn Energy Plc in the
interim financial report.
For further information, please contact:
Woburn Energy Plc Tel: +44 (0)20 7380 4609
Dr John Cubitt, Managing Director www.woburnenergy.com
Beaumont Cornish Limited (Nominated Tel: +44 (0)20 7628 3396
Adviser)
Michael Cornish
A copy of this announcement is available from the Company's
website, www.woburnenergy.com
UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 JUNE 2011
Half-year ended Half-year ended
30 June 2011 30 June 2010
(Unaudited) (Unaudited)
Notes $ $
Revenue - -
Operating expenses (235,017) (539,198)
____________ ____________
Gross loss (235,017) (539,198)
Administrative expenses (866,668) (880,647)
____________ ____________
Group operating loss (1,101,685) (1,419,845)
Bank interest receivable 17 231
Interest payable (121,575) -
____________ ____________
Loss before taxation (1,223,243) (1,419,614)
Taxation - -
____________ ____________
Loss for the period from
continuing operations (1,223,243) (1,419,614)
Discontinued operations
(Loss)/profit for the period
from discontinued operations 3 (19,225) 493,604
____________ ____________
Loss for the period (1,242,468) (926,010)
Other comprehensive income - -
____________ ____________
TOTAL COMPREHENSIVE LOSS FOR
THE PERIOD (1,242,468) (926,010)
____________ ____________
Total comprehensive income
attributable to:
Equity owners of the Parent
Company (1,041,799) (633,050)
Minority interest (200,669) (292,960)
____________ ____________
(1,242,468) (926,010)
____________ ____________
Loss per share (cents):
Continuing operations 2
Basic (0.44) (0.49)
Diluted (0.44) (0.49)
___________ ___________
Loss per share (cents):
Discontinued and continuing
operations 2
Basic (0.45) (0.27)
Diluted (0.45) (0.27)
___________ ___________
UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2011
-------------------------------------------------------------------------
Notes 30 June 2011 31 December 2010
(Unaudited) (Audited)
$ $
ASSETS
Non-current assets
Exploration and evaluation
assets 3 - 7,951,889
____________ ____________
Current assets
Assets held for sale 3 3,424,891 -
Receivables 95,842 122,574
Cash and cash equivalents 304,753 1,360,698
____________ ____________
3,825,486 1,483,272
____________ ____________
Total Assets 3,825,486 9,435,161
____________ ____________
LIABILITIES
Current liabilities
Trade and other payables 3 (1,197,830) (5,357,810)
____________ ____________
Non-current liabilities
Provision for decommissioning - (207,227)
____________ ____________
Total Liabilities (1,197,830) (5,565,037)
____________ ____________
Net Assets 2,627,656 3,870,124
____________ ____________
EQUITY
Capital and reserves
Share capital 13,596,651 13,596,651
Share premium 17,815,055 17,815,055
Retained losses (30,693,971) (29,652,172)
____________ ____________
Shareholders' Funds 717,735 1,759,534
Minority interests 1,909,921 2,110,590
____________ ____________
2,627,656 3,870,124
____________ ____________
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS 30 JUNE 2011
-------------------------------------------------------------------------------------------------------------------------
Share-based Total
Share Share Payments Retained Shareholders' Minority
Capital Premium Reserve Losses Equity Interest Total Equity
$ $ $ $ $ $ $
As at 1 January 2011 13,596,651 17,815,055 - (29,652,172) 1,759,534 2,110,590 3,870,124
Total
comprehensive
income/(loss)
for the
period - - - (1,041,799) (1,041,799) (200,669) (1,242,468)
Balance at 30
June 2011 13,596,651 17,815,055 - (30,693,971) 717,735 1,909,921 2,627,656
=========== =========== ============ ============= ============== ========== =============
As at 1 January 2010 13,596,651 17,815,055 190,800 (27,374,489) 4,228,017 2,890,311 7,118,328
Total
comprehensive
income/(loss)
for the
period - - - (633,050) (633,050) (292,960) (926,010)
Balance at 30
June 2010 13,596,651 17,815,055 190,800 (28,007,539) 3,594,967 2,597,351 6,192,318
=========== =========== ============ ============= ============== ========== =============
UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 30 JUNE 2011
----------------------------------------------------------------------------
Half-year ended Half-year ended
30 June 2011 30 June 2010
(Unaudited) (Unaudited)
$ $
Cash flows from operating activities
Group operating loss from continuing
operations (1,101,685) (1,419,845)
Group operating loss from discontinued
operations (19,225) -
Adjustment for items not requiring an
outlay of funds:
Impairment of exploration
assets- discontinuing
operations - 4,274,000
Write-back of loan-
discontinuing operations - (4,274,000)
Unwinding of discount on
abandonment provision 3,406 -
Foreign exchange differences 994 -
___________ ___________
Operating loss before changes in
working capital (1,116,510) (1,419,845)
Increase in receivables (20,171) (44,246)
(Decrease)/increase in trade
and other payables (336,281) 693,918
___________ ___________
Net cash used in operating
activities (1,472,962) (770,173)
___________ ___________
Investing activities
Funds used for exploration and
evaluation - (96,129)
Interest received 17 231
___________ ___________
Net cash used in investing
activities (1,472,945) (95,898)
___________ ___________
Financing activities
Loan from controlling shareholder 417,000 -
-
___________ ___________
Net cash from financing activities 417,000 -
___________ ___________
Decrease in cash and cash
equivalents (1,055,945) (866,071)
Cash and cash equivalents at beginning
of period 1,360,698 2,216,678
___________ ___________
Cash and cash equivalents at end of
period 304,753 1,350,607
___________ ___________
NOTES TO THE UNAUDITED HALF-YEARLY FINANCIAL REPORT
FOR THE SIX MONTHS ENDED 30 JUNE 2011
1. Basis of preparation
Woburn Energy Plc ('the Company') is domiciled in England. The
condensed consolidated half-year accounts of the Company for the
six months ended 30 June 2011 comprise the accounts of the Company
and its subsidiaries (together referred to as 'the Group').
The condensed half-year accounts for the six months ended 30
June 2011 are unaudited. In the opinion of the Directors, the
condensed half-year accounts for the period present fairly the
financial position, and results from operations and cash flows for
the period. The condensed half-year accounts include unaudited
comparative figures for the half year ended 30 June 2010.
The financial information contained in this half-year report
does not constitute statutory accounts as defined by section 434 of
the Companies Act 2006.
Where shown, the comparatives for the year ended 31 December
2010 are not the Company's full statutory accounts for that year
but have been extracted from the statutory accounts for that year
which have been delivered to the Registrar of Companies. The
auditors' report on those accounts, which was unqualified, included
references to the going concern note in the accounts to which the
auditors drew attention by way of emphasis, without qualifying
their report, and did not contain a statement under section 498 (2)
- (3) of the Companies Act 2006.
The half-yearly financial report was approved by the Directors
on 31 August 2011 and is available on the Company's website
www.woburnenergy.com.
Accounting policies
The condensed half-year accounts have been prepared using
accounting policies based on International Financial Reporting
Standards (IFRS and IFRIC interpretations) issued by the
International Accounting Standards Board ("IASB") as adopted for
use in the European Union, including IAS 34 'Interim Financial
Reporting' and on the historical cost basis. The condensed
half-year accounts have been prepared using the accounting policies
which are expected to be applied in the Group's next statutory
financial statements for the year ending 31 December 2011. The same
accounting policies, presentation and methods of computation were
applied in the Group's latest audited financial statements for the
year ended 31 December 2010.
The Group's financial risk management objectives and policies
are consistent with those disclosed in the 2010 annual report.
Going concern
The accounts have been prepared on a going concern basis. During
the six month period ended 30 June 2011 the Group made a loss of
$1,242,468 (year ended 31 December 2010: loss of $3,248,204, six
months ended 30 June 2010: loss $926,010). At 30 June 2011, the
Group had net assets of $2,627,656 (31 December 2010: $3,870,124,
30 June 2010: $6,192,318), of which $717,735 was attributable to
equity shareholders and $1,909,921 to the 49% minority interest in
Las Quinchas Resources Corp (see note 3). Net current assets at 30
June 2011 were $2,627,656 of which the principal asset was Asset
Held For Sale of $3,424,891 (see note 3) (31 December 2010 net
current liabilities: $3,874,538, 30 June 2010: net current
liabilities $1,136,610).
The cash position of the Group fell from $1,360,698 at 31
December 2010 to $304,753 at 30 June 2011. A further drawing of
GBP100,000 since the period end has been made under the loan from
Cetus, the Company's largest shareholder (see note 4). At 30 June
2011, the Group had trade and other payables outstanding and due
within one year of $5,481,666 and excluding the Cetus loan (see
note 4). Of this total, $5,012,835 related to LQRC and was included
in Asset Held For Sale (note 3). Operating cash outflows (before
loan drawings, any net LQRC sales proceeds and cash balances) are
expected to be approximately $1,800,000 for each of the years to 30
June 2011-12 and to 31 August 2011-12. As at 31 August 2011, the
Group had $170,000. In view of the current market conditions and
the financial condition of the Company, the Board continues to
review its options, in particular the need for future finance.
The Group is not currently earning significant revenues and
therefore is not profitable because it is still in the exploration
phase of its business. The Group is therefore reliant on the future
support from its existing shareholders or its ability to raise
funds in the open market in order to be able to meet its
obligations and planned expenditures in the foreseeable future.
The Directors intend to meet payment of LQRC's unpaid operator
billings noted above from the sale of part or all of LQRC's
intangible exploration & evaluation assets, which are included
in Asset Held For Sale at a book value of $7,967,340. The Group's
controlling shareholder Cetus (note 4) has confirmed that it will
continue to provide financial support for the foreseeable future
and to at least 30 June 2012 of at least up to the expected
operating costs, if required, and not to seek repayment of its loan
where this would prejudice the ability of the Company to meet its
liabilities, other than unpaid operator billings, as they fall due.
The Directors believe that the Group will therefore have
appropriate levels of financing and that the Group will have
sufficient cash to fund its activities and to continue its
operations for the foreseeable future and for the Group to continue
to meet its liabilities as they fall due to at least 30 June 2012.
The financial statements have, therefore, been prepared on the
going concern basis.
2. Loss per share
Half-year Half-year
ended ended
30 June 2011 30 June 2010
$ $
Total comprehensive loss attributable
to equity shareholders - Continuing (1,022,574) (1,126,885)
Total comprehensive loss attributable
to equity shareholders - Continuing
and Discontinued (1,041,799) (633,050)
Weighted average number of shares in
issue 232,160,407 232,160,407
___________ ___________
Cents Cents
Basic loss per share - Continuing (0.44) (0.49)
Basic loss per share - Continuing and
Discontinuing (0.45) (0.27)
Basic (loss)/earnings per share-
Discontinuing (0.01) 0.22
___________ ___________
3. Asset Held For Sale and Discontinued Operations
(a)Asset Held For Sale
On 6 June 2011, the Company announced it was seeking a buyer for
its 51% interest in Las Quinchas Resource Corporation ("LQRC), or
failing that, for LQRC's interest in the Las Quinchas Association
Contract. In accordance with IFRS 5 ("Non-Current Assets Held for
Sale and Discontinued"), the book values of the assets and
liabilities of LQRC are combined and shown in the Statement of
Financial Position at 30 June 2011 as "Asset Held For Sale". The
net amount Asset Held For Sale at 30 June 2011 of $3,424,891
includes $7,967,340 for non-current intangible exploration &
evaluation assets and $5,012,835 for current trade & other
payables. LQRC has no contractual future exploration expenditure
commitments.
Having carefully considered the factors relating to the carrying
value of, and the inherent uncertainties related to the components
of Asset Held For Sale, the Directors have concluded on the basis
of the information presently available to them that no impairment
to the book value at the period end is required.
(b) Discontinued Operations
On 14 February 2011, Black Rock Oil & Gas Surcusal Colombia
was placed into liquidation and accordingly from that date is shown
in the Consolidated Statement of Comprehensive Income as
Discontinued Operations.
4. Control
The Group is controlled by Cetus Investment Resources Inc which
owns 86.15% of the Company. Cetus Investment Resources Inc is a
wholly-owned subsidiary of Zaver Petroleum International Inc, which
is itself a wholly-owned subsidiary of United Paramount Holding
Corp. Mr Hashwani is beneficially interested in the entire issued
share capital of United Paramount Holding Corp and is therefore the
ultimate controlling party.
Included in trade and other payables at 30 June 2011 was
$729,000 owed to Cetus under its shareholder loan. Subsequent to
the period end a further GBP100,000 was drawn under this loan.
5. Material events subsequent to the end of the period
Other than stated above, there have been no significant events
after the balance sheet date requiring disclosure.
ENDS
This information is provided by RNS
The company news service from the London Stock Exchange
END
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