TIDMPMG
RNS Number : 3371J
Parkmead Group (The) PLC
29 March 2018
29 March 2018
The Parkmead Group plc
("Parkmead", "the Company" or "the Group")
Interim Results for the six-month period ended 31 December
2017
Parkmead, the UK and Netherlands-focused independent energy
group, is pleased to report its interim results for the six-month
period ended 31 December 2017.
HIGHLIGHTS
Parkmead doubles gross profit and demonstrates financial
strength
-- Gross profit for the period of GBP1.4 million (2016: GBP0.7 million)
-- Parkmead is cash flow positive on an operating basis
-- Strong total asset base of GBP75.8 million at 31 December 2017
-- Strict financial discipline maintained
-- Well capitalised, with cash balances of US$33.0 million
(GBP24.4 million) at 31 December 2017
-- Debt free
-- Increased volumes at the Diever West gas field
-- Low-cost Netherlands gas production provides positive cash flow growth
67% increase in oil and gas reserves
-- 2P reserves of 46.3 million barrels of oil equivalent
("MMBoe") at 1 March 2018, a 67% increase from Parkmead's 1 March
2017 reserves position of 27.8 MMBoe
-- 2C resources increased by 25% to 73.9 MMBoe at 1 March 2018 (59.1 MMBoe at 1 March 2017)
Major progress on valuable development projects; potential
Greater Perth Area tie-back
-- Significantly increased equity in the Perth and Dolphin oil
fields in UK Central North Sea in February 2018, which lie at the
core of Parkmead's Greater Perth Area ("GPA") oil hub project
-- Increased equity in the Perth and Dolphin fields raises
Parkmead's 2P reserves to 46.3 MMBoe
-- Parkmead now in full control of the GPA oil hub project with operatorship and 100% equity
-- Agreement signed with Nexen Petroleum, a subsidiary of China
National Offshore Oil Corporation (CNOOC), to undertake a detailed
engineering study for the potential subsea tie-back of the GPA
project to the Nexen-operated Scott facilities in the Central North
Sea
-- Nexen's Scott facilities lie approximately 10km southeast of Parkmead's GPA project
-- New reservoir study commissioned with AGR Tracs International
in relation to well stimulation, which could lead to increasing oil
flow rates and oil reserves recovery from the two fields by
analysing the effect of fracture stimulation on the reservoir
Doubled gas volumes at Diever West. Gross production reaches 45
MMscfd
-- 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
-- Average gross production during February 2018 at Diever West
was 45.5 million cubic feet per day ("MMscfd"), approximately 7,833
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 has recommenced following compression work
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
-- Current oil and gas environment provides a good opportunity
to continue the Group's growth trajectory
Parkmead's Executive Chairman, Tom Cross, commented:
"I am pleased to report excellent progress in the period to 31
December 2017. The Group has doubled gross profit, through a
combination of Parkmead's increased gas production in the
Netherlands and the proactive cost reduction programme in the
UK.
We are delighted to have significantly increased production at
the Diever West gas field, which builds Parkmead's cash flow. New
reservoir modelling indicates that Diever West could be more than
double the size originally expected.
We are also pleased with the major progress made with the
Greater Perth Area project. By increasing our stake in the Perth
and Dolphin oil fields, Parkmead's oil and gas reserves grow by
some 67%.
The study with Nexen will examine one path to potentially unlock
the substantial value of the GPA project for the benefit of the UK
and Parkmead shareholders, as well as providing further value for
the existing infrastructure partners.
The team at Parkmead is working intensively to evaluate and
execute further opportunities which could build value and provide
additional upside to the Company. Parkmead is analysing both oil
and gas, and wider energy related opportunities, which could
broaden and enhance the Group's revenue stream.
Parkmead is well positioned for the future. 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 +44 (0) 20 7886 2500
(Financial Adviser, NOMAD
and Corporate Broker to Parkmead)
Adam James
Atholl Tweedie
Instinctif Partners Limited +44 (0) 20 7457 2020
(PR Adviser to Parkmead)
David Simonson
Laura Syrett
George Yeomans
Review of Activities
Parkmead has delivered significant growth across its oil and gas
operations in the UK and the Netherlands, continuing to build a
high quality portfolio across each stage of the asset life
cycle.
In August 2017, the Company completed the acquisition of a 50%
interest in UK North Sea Licence P.2209 from Verus Petroleum (SNS)
Limited, which contains the Farne Extension prospect and a further
four prospective leads. This acquisition doubled 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.
In February 2018, Parkmead announced that it had significantly
increased its equity in the Perth and Dolphin oil fields in the UK
Central North Sea from 60.5% to 100%. The Perth and Dolphin fields
lie at the core of Parkmead's Greater Perth Area ("GPA") oil hub
project.
The Company has also signed an agreement with Nexen Petroleum, a
subsidiary of the China National Offshore Oil Corporation (CNOOC),
to conduct a detailed engineering study in relation to the
potential subsea tie-back of the Greater Perth Area project to the
Nexen-operated Scott platform and associated facilities in the UK
Central North Sea. The Scott facilities lie just some 10km
southeast of Parkmead's GPA project.
In addition, Parkmead has commissioned a new reservoir study
with AGR Tracs International in relation to well stimulation, which
could lead to increasing oil flow rates and oil reserves recovery
from the two fields by analysing the effect of fracture stimulation
on the reservoir.
A tie-back of the GPA project to the Scott facilities could
yield a number of mutually beneficial advantages for both the Scott
partnership and Parkmead. Utilisation of this export route has the
potential to transform the GPA project commercially and
economically, by dramatically reducing the capital expenditure
required to bring the GPA project onstream and by lowering the
operating costs thereafter.
The new reservoir study with AGR Tracs in relation to well
stimulation could substantially increase the predicted recovery
factor of the two fields by analysing the effect of fracture
stimulation on the reservoir. The Perth field benefits from having
a very large volume of oil-in-place, which stands at 197 million
barrels of oil ("MMBbls") for core Perth, and 498 MMBbls when
including the northern areas of the field. The Perth reservoir has
a gross oil column of around 2,000 feet, making the reservoir ideal
for fracture stimulation.
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 boepd per well. At Perth, the Claymore Sandstone forms a
combined structural-stratigraphic trap, onlapping the Tartan Ridge
to the North, with a southward-thickening and dipping sandstone
wedge. The sandstones that comprise the accumulation were deposited
as deep-water turbidites sourced from the Halibut Horst, with a
minor contribution from the Tartan Ridge.
Parkmead 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, covering the pre-FEED, FEED and
subsequent development phases of the project. Parkmead was 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 evaluating 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
for major parts of the development, further reducing the capital
expenditure required to bring the project onstream.
Detailed technical work undertaken across the wider Parkmead
portfolio has allowed the company to release non-core acreage, such
as licence P.1566, considerably reducing licence costs.
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. Gross production during February
2018 at Diever West averaged 45.5 million cubic feet per day
(approximately 7,833 boepd, Parkmead 7.5%).
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 Parkmead portfolio includes 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 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 has
recommenced following compression work to optimise gas flows.
Production on the field is gradually being increased and is
expected to reach a gross rate of 1.85 million cubic feet per day
(approximately 318 boepd, Parkmead 15%).
Detailed work has begun on the Ottoland discovery, located on
the same Andel Va block as the Brakel gas field. Seismic
interpretation and depth migration studies, followed by structural
and static modelling, 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 gas 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
During the six-month period to 31 December 2017, the Group
generated revenues of GBP2.7 million (2016: GBP2.7 million).
Parkmead doubled gross profit for the period to GBP1.4 million
(2016: GBP0.7 million profit). This is a significant achievement
and is testament to the success of the Group's onshore gas
portfolio and strict financial discipline. The Group's gas
portfolio in the Netherlands generates positive cash flows and
Parkmead's four separate gas fields have an average operating cost
of just US$10 per barrel of oil equivalent. Detailed technical work
undertaken across the wider Parkmead portfolio has allowed the
company to release non-core acreage, such as licence P. 1566,
considerably reducing licence costs. This has resulted in an
impairment charge of GBP4.5 million.
Administrative expenses were GBP0.3 million (2016: GBP2.4
million). Underlying administrative expenses (not including
non-cash share based payment charges) have been reduced and are
continually being monitored and reviewed to ensure that Parkmead
maintains a strong balance sheet.
Parkmead's total assets at 31 December 2017 were GBP75.8m (2016:
GBP84.0m). Available-for-sale financial assets were GBP4.1m (2016:
GBP4.0m). Cash and cash equivalents at year end were GBP24.4m
(2016: GBP26.7m). Parkmead is very carefully managed and remains
debt free. Loans issued during the period were GBP1.7m (2016:
GBPnil). The Group's net asset value was GBP65.2m (2016: GBP70.1m).
Parkmead is therefore well positioned for growth. This positive
position is a direct result of experienced portfolio management and
a strong focus on capital discipline.
Investments
The Group's largest investment is in Faroe Petroleum plc (LSE
AIM: FPM.L). As at 31 December 2017, this investment was carried at
a value of GBP4.1 million.
Outlook
Parkmead has delivered considerable growth in both its asset
base and financial position in the period to 31 December 2017. This
was achieved through increasing the Group's equity in core assets
of the portfolio, doubling Parkmead's gross profit and increasing
gas production from the low-cost onshore Netherlands portfolio.
The Group is in an excellent position, both operationally and
financially, and is well placed for growth. The Board has
positioned Parkmead to take advantage of the changing energy
environment and views this as a good opportunity to continue the
Group's positive trajectory. Our acquisition-led growth strategy
has resulted in seven deals being completed by Parkmead since
repositioning the business as an independent energy company in
2011, and we intend to build on this track record. As we look
forward into 2018, we will continue to keep shareholders informed
of the steps being taken across our exploration, appraisal,
development and production activities. The Board of Directors is
pleased with the Group's progress, and believes that the Parkmead
team is well positioned to drive the business forward and to build
upon the achievements made to date.
Tom Cross
Executive Chairman
29 March 2018
This announcement contains inside information for the purposes
of Article 7 of Regulation 596/2014. Upon the publication of this
announcement, the information contained herein is now considered to
be in the public domain.
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. Reserves and contingent resource estimates are
stated as at 1 March 2018. Parkmead's evaluation of reserves and
resources was prepared 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 six months ended 31 December 2017
Twelve
Six months Six months months
to 31 to 31 to 30
December December June
2017 2016 2017
Notes (unaudited) (unaudited)
GBP'000 GBP'000 GBP'000
Revenue 2,707 2,707 4,137
Cost of sales (1,339) (2,035) (2,959)
Gross profit 1,368 672 1,178
Exploration and evaluation
expenses 2 (4,815) (2,412) (2,669)
Administrative expenses 3 (301) (2,408) (2,344)
----------------------------------------------------- -------- ------------ ------------ --------
Operating loss (3,748) (4,148) (3,835)
Finance income 19 28 281
Finance costs (352) (391) (749)
Loss before taxation (4,081) (4,511) (4,303)
Taxation (437) - (607)
----------------------------------------------------- -------- ------------ ------------ --------
Loss for the period attributable
to the equity
holders of the Parent (4,518) (4,511) (4,910)
--------------------------------------------------------------- ------------ ------------ --------
Loss per share (pence)
Basic 5 (4.57) (4.56) (4.96)
Diluted (4.57) (4.56) (4.96)
Group statement of profit or loss and other comprehensive
income
for the six months ended 31 December 2017
Twelve
Six months Six months months
to 31 to 31 to 30
December December June
2017 2016 2017
(unaudited) (unaudited)
GBP'000 GBP'000 GBP'000
Loss for the period (4,518) (4,511) (4,910)
----------------------------------------------------- -------- ------------ ------------ ----------
Other comprehensive income
Items that may be reclassified
subsequently to profit
or loss
Fair value gain on available-for-sale
financial assets 855 1,380 583
----------------------------------------------------- -------- ------------ ------------ ----------
855 1,380 583
Income tax relating to
components of other comprehensive
income - - -
Other comprehensive income
for the period, net of
tax 855 1,380 583
Total comprehensive loss
for the period attributable
to the equity holders
of the Parent (3,663) (3,131) (4,327)
----------------------------------------------------- -------- ------------ ------------ ----------
Group statement of financial position
as at 31 December 2017
At 31 At 31 At 30
December December June
2017 2016 2017
(unaudited) (unaudited)
GBP'000 GBP'000 GBP'000
Non-current assets
Property, plant and equipment:
development & production 12,850 16,454 15,993
Property, plant and equipment:
other 39 81 55
Goodwill 2,174 2,174 2,174
Exploration and evaluation
assets 29,360 32,307 33,382
Available-for-sale financial
assets 4,082 4,024 3,227
Interest bearing loans 1,711 - -
Deferred tax assets 3 3 3
Total non-current assets 50,219 55,043 54,834
--------------------------------- ------------ ------------ ---------
Current assets
Trade and other receivables 1,168 2,043 927
Current tax asset - 158 -
Cash and cash equivalents 24,415 26,727 26,396
Total current assets 25,583 28,928 27,323
--------------------------------- ------------ ------------ ---------
Total assets 75,802 83,971 82,157
--------------------------------- ------------ ------------ ---------
Current liabilities
Trade and other payables (2,608) (3,893) (2,364)
Current tax liabilities (440) - (457)
Total current liabilities (3,048) (3,893) (2,821)
--------------------------------- ------------ ------------ ---------
Non-current liabilities
Other liabilities (82) (64) (70)
Deferred tax liabilities (1,284) (1,284) (1,284)
Decommissioning provisions (6,171) (8,605) (9,102)
--------------------------------- ------------ ------------ ---------
Total non-current liabilities (7,537) (9,953) (10,456)
--------------------------------- ------------ ------------ ---------
Total liabilities (10,585) (13,846) (13,277)
--------------------------------- ------------ ------------ ---------
Net assets 65,217 70,125 68,880
--------------------------------- ------------ ------------ ---------
Equity attributable to equity
holders
Called up share capital 19,533 19,533 19,533
Share premium 87,805 87,805 87,805
Merger reserve - 27,187 -
Revaluation reserve (1,943) (2,001) (2,798)
Retained deficit (40,178) (62,399) (35,660)
--------------------------------- ------------ ------------ ---------
Total equity 65,217 70,125 68,880
--------------------------------- ------------ ------------ ---------
Group statement of changes in equity
for the six months ended 31 December 2017
Share Share Merger Revaluation Retained Total
capital premium reserve reserve earnings
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 July
2016 19,533 87,805 27,187 (3,381) (57,980) 73,164
Loss for
the period - - - - (4,511) (4,511)
Fair value
gain on available-for-sale
financial
assets - - - 1,380 - 1,380
Total comprehensive
income /
(loss) for
the period - - - 1,380 (4,511) (3,131)
Share-based
payments - - - - 92 92
----------------------------- --------- --------- --------- ------------ ---------- --------
At 31 December
2016 19,533 87,805 27,187 (2,001) (62,399) 70,125
----------------------------- --------- --------- --------- ------------ ---------- --------
Loss for
the period - - - - (399) (399)
Fair value
loss on available-for-sale
financial
assets - - - (797) - (797)
----------------------------- --------- --------- --------- ------------ ---------- --------
Total comprehensive
loss for
the period - - - (797) (399) (1,196)
Transfer
merger reserve - - (27,187) - 27,187 -
Share-based
payments - - - - (49) (49)
----------------------------- --------- --------- --------- ------------ ---------- --------
At 30 June
2017 19,533 87,805 - (2,798) (35,660) 68,880
----------------------------- --------- --------- --------- ------------ ---------- --------
Loss for
the period - - - - (4,518) (4,518)
Fair value
gain on available-for-sale
financial
assets - - - 855 - 855
Total comprehensive
income /
(loss) for
the period - - - 855 (4,518) (3,663)
Share-based
payments - - - - - -
----------------------------- --------- --------- --------- ------------ ---------- --------
At 31 December
2017 19,533 87,805 - (1,943) (40,178) 65,217
----------------------------- --------- --------- --------- ------------ ---------- --------
Group statement of cashflows
for the six months ended 31 December
2017
Twelve
Six months Six months months
to 31 to 31 to 30
December December June
2017 2016 2017
(unaudited) (unaudited)
Notes GBP'000 GBP'000 GBP'000
Cashflows from operating
activities
Cashflows from operations 6 1,077 (700) (464)
Taxation (paid)/received (457) 46 56
----------------------------------- ------ ------------ ------------ --------
Net cash generated from
/ (used in) operating activities 620 (654) (408)
----------------------------------- ------ ------------ ------------ --------
Cash flow from investing
activities
Interest received 19 16 271
Acquisition of exploration
and evaluation assets (895) (484) (1,164)
Acquisition of property,
plant and equipment: development
& production (74) (530) (725)
Acquisition of property,
plant and equipment: other (4) (38) (47)
Proceeds from available-for-sale
financial assets - 10 10
Loans issued (1,711) - -
Net cash (used in) investing
activities (2,665) (1,026) (1,655)
----------------------------------- ------ ------------ ------------ --------
Cash flow from financing
activities
Interest paid (1) - (8)
Net cash (used in) financing
activities (1) - (8)
----------------------------------- ------ ------------ ------------ --------
Net decrease in cash and
cash equivalents (2,046) (1,680) (2,071)
----------------------------------- ------ ------------ ------------ --------
Cash and cash equivalents
at beginning of period 26,396 28,288 28,288
Effect of foreign exchange
rate differences 65 119 179
----------------------------------- ------ ------------ ------------ --------
Cash and cash equivalents
at end of period 24,415 26,727 26,396
----------------------------------- ------ ------------ ------------ --------
Notes to the Interim financial statements
1 Accounting policies
Basis of preparation
The interim financial information in this report has been
prepared using accounting policies consistent with International
Financial Reporting Standards (IFRS) as adopted by the European
Union and IFRS Interpretations Committee (IFRIC) interpretations.
IFRS is subject to amendment and interpretation by the
International Accounting Standards Board (IASB) and IFRIC and there
is an ongoing process of review and endorsement by the European
Commission. The financial information has been prepared on the
basis of IFRS that the Directors expect to be adopted by the
European Union and applicable as at 30 June 2018.
The Group has chosen not to adopt IAS 34 - Interim Financial
Statements, in preparing these financial statements.
The accounting policies applied in this report are the same as
those applied in the consolidated financial statements for the year
ended 30 June 2017.
Non-statutory accounts
The financial information set out in this interim report does
not constitute the Group's statutory accounts.
The financial information for the year ended 30 June 2017 has
been extracted from the audited statutory accounts. The statutory
accounts for the year ended 30 June 2017 have been delivered to the
Registrar of Companies. The auditors reported on those accounts;
their report was unqualified, 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 financial information for the 6 months ended 31 December
2017 and 31 December 2016 is unaudited.
2 Impairment of exploration and evaluation assets
Exploration and evaluation expenses includes impairment charges
of GBP4,508,000 recorded in respect of exploration licences
relinquished in the period. (Six months to 31 December 2016:
GBP2,409,000, Twelve months to 30 June 2017: GBP2,424,000).
3 Administrative expenses
Administrative expenses include a credit in respect of a
non-cash revaluation of share appreciation rights (SARs) totalling
GBP345,000 (Six months to 31 December 2016: GBP1,551,000 debit,
Twelve months to 30 June 2017: GBP611,000 debit). The SARs may be
settled by cash or shares and are therefore revalued with the
movement in share price. The valuation was impacted by the decrease
in The Parkmead Group plc share price between 30 June 2017 and 31
December 2017.
4 Interest bearing loans
During the period, The Parkmead Group plc entered into a credit
facility with Energy Management Associates Limited, whereby
Parkmead agreed to lend up to GBP2,900,000 to Energy Management
Associates Limited. GBP1,700,000 of this credit facility was issued
during the period.
Through this facility, The Parkmead Group plc has been granted
an exclusive option to join Energy Management Associates Limited in
new ventures being evaluated by the company, including interalia
potential opportunities relating to renewable energies.
5 Loss per share
Loss per share attributable to equity holders of the Company
arise as follows:
Twelve
Six months Six months months
to 31 to 31 to 30
December December June
2017 2016 2017
(unaudited) (unaudited)
Loss per 1.5p ordinary share
(pence)
Basic (4.57) (4.56) (4.96)
Diluted (4.57) (4.56) (4.96)
-------------------------------- ------------ ------------ --------
Notes to the Interim financial statements
The calculations were based on the following information:
Twelve
Six months Six months months
to 31 to 31 to 30
December December June
2017 2016 2017
(unaudited) (unaudited)
GBP'000 GBP'000 GBP'000
Loss attributable to ordinary
shareholders (4,518) (4,511) (4,910)
Weighted average number
of shares in issue
Basic weighted average
number of shares 98,929,160 98,929,160 98,929,160
------------------------------- ------------ ------------ -----------
Dilutive potential ordinary
shares
Share options - - -
------------------------------- ------------ ------------ -----------
Profit/(loss) per share is calculated by dividing the profit or
loss for the period by the weighted average number of ordinary
shares outstanding during the period.
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.
6 Notes to the statement of cashflows
Reconciliation of operating loss to net cash flow from
operations
Twelve
Six months Six months months
to 31 to 31 to 30
December December June
2017 2016 2017
(unaudited) (unaudited)
GBP'000 GBP'000 GBP'000
Operating loss (3,748) (4,148) (3,835)
Depreciation 364 388 667
Amortisation and exploration
write-off 4,508 2,409 2,424
Provision for share based
payments (333) 1,679 43
Currency translation adjustments (65) (119) (179)
(Increase)/decrease in
receivables (241) (568) 548
Increase/(decrease) in
payables 592 (194) (132)
Increase/(decrease) in
other provisions - (147) -
---------------------------------- ------------ ------------ --------
Net cash flow from operations 1,077 (700) (464)
---------------------------------- ------------ ------------ --------
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR EKLBLVXFZBBX
(END) Dow Jones Newswires
March 29, 2018 02:01 ET (06:01 GMT)
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