TIDMCHAR
RNS Number : 5288N
Chariot Oil & Gas Ld
25 September 2019
25 September 2019
Chariot Oil & Gas Limited
("Chariot", the "Company" or the "Group")
H1 2019 Results
-- Secured the new venture, Lixus Offshore Licence, Morocco,
providing a near-term development opportunity and potential for
cashflow generation.
-- Integrated analysis of 2018 drilling operations complete,
resulting in refined giant prospect portfolio.
-- Data rooms open across the portfolio with the aim of securing partners to drill.
-- 30 June 2019 cash position US$12.1 million, no debt and all commitments fully funded.
Chariot Oil & Gas Limited (AIM: CHAR), the Atlantic margins
focused oil and gas exploration company, today announces its
unaudited interim results for the six-month period ended 30 June
2019.
Highlights:
Low Risk Production Opportunity Secured:
-- Award of near-term development opportunity, Lixus Offshore Licence, Morocco:
o Anchois-1 well gas discovery and satellites offer near-term
development opportunity.
o Deeper prospect offers additional prospective resource
potential.
o Material additional on-block exploration running room in
licence.
-- Competent Persons Report ("CPR") on the Anchois Discovery complete:
o Total remaining recoverable resource to be in excess of 1 Tcf
for Anchois and its satellite prospects (comprising 2C contingent
resources and 2U prospective resources).
o Anchois North confirmed as the low risk priority satellite
with 308 Bcf of 2U prospective resources and probability of
geologic success of 43%.
o Additional on-block prospects with a total remaining
recoverable resource in excess of 1.2 Tcf audited 2U prospective
resources.
-- Development Feasibility Study and Gas Market Assessment
completed for the Anchois Gas Field:
o Development of the Anchois Field is technically feasible with
the potential for either a single phase or a staged development to
commercially optimise access to different parts of the gas
market.
o Morocco has a fast-growing energy market with strong gas
prices that underpins a commercially attractive project.
-- Drilling Environmental Impact Assessment ("EIA") initiated;
data room for prospective partners open.
-- Seismic reprocessing work programme commitment fully funded.
Ongoing Giant Potential Portfolio Progression
Morocco:
o Data room open on the clastic prospects and leads with MOH-B
(gross mean prospective resource of 637mmbbls) and KEN-A (gross
mean prospective resource of 445mmbbls), priority targets, having
been significantly de-risked by the drilling of Rabat Deep 1 in
2018.
o Drilling EIA approved on Kenitra and Mohammedia.
o No remaining work programme commitments.
Brazil:
o Data room open with the aim of securing a partner for the
drilling of a single well at Prospect 1 as a fast follower. This
can penetrate the TP-1, TP-3 and KP-3 stacked targets, which have a
summed, independently audited, gross mean prospective resource of
911mmbbls.
o No remaining work programme commitments.
Namibia:
o Prospect S well (Q4 2018) analysis and integration of legacy
data complete. Prospects B, V & W possess characteristics of
the excellent reservoir potential of the turbidite sand systems
encountered with access to a different source kitchen. Each
prospect ranges from 284 - 469mmbbls of gross mean prospective
resources.
o No remaining work programme commitments.
o Three third party wells, including one in the block adjacent
to Chariot's, due to be drilled in the next year.
Cash Position
-- Unaudited cash balance as at 30 June 2019 of US$12.1 million.
-- No debt and all work commitments, which are less than US$1.0 million, fully funded.
Appointment of Non-Executive Director
-- Andrew Hockey appointed as Independent Non-Executive
Director. Andrew has extensive experience in the development and
production of gas assets.
Outlook
-- Secure partners to participate in the appraisal and
development of the Anchois Gas Field in order to generate cashflow
and sustain the broader exploration programme.
-- Attract industry partners to drill our giant potential
exploration prospects, with the aim of delivering transformational
value.
-- Continue to use expert in-house knowledge base to screen for
new ventures within the Atlantic Margin that will further balance
the risk profile of the Company.
-- Maintain capital discipline throughout the business.
Larry Bottomley, CEO of Chariot commented:
"Using the information acquired from the 2018 drilling campaigns
we have not only been able to de-risk and refine our giant prospect
portfolio, but also identified and acquired a low risk appraisal
asset with the capacity to generate significant cash flow for the
Company.
Chariot's risk portfolio is now balanced by a commercially
attractive production opportunity, capable of sustaining the high
impact exploration programmes of our giant potential prospects
within the wider portfolio. Our cash position substantially exceeds
our commitments and, with the significant interest received in our
data rooms, we are confident about our ability to achieve on our
near-term goals in Morocco. At the same time, we remain vigilant to
further new venture opportunities that can further de-risk the
portfolio whilst also looking to secure additional partners to
deliver wells in a fast follower position on our Namibian and
Brazilian assets."
Investor Conference Call:
Management will host a conference call for investors at 12.00
noon (BST) today, 25 September 2019. Dial-in details for the call
are shown below and participants should request to join the
"Chariot Oil & Gas - Investor Call".
Dial in number: +44 (0)330 336 9125
Conference Code: 8736798
This announcement is inside information for the purposes of
Article 7 of Regulation 596/2014.
For further information please contact:
Chariot Oil & Gas Limited
Larry Bottomley, CEO +44 (0)20 7318 0450
finnCap (Nominated Adviser and Broker)
Matt Goode, Christopher Raggett, Anthony Adams
(Corporate Finance) Andrew Burdis (ECM) +44 (0)20 7220 0500
Celicourt Communications (Financial PR)
Jimmy Lea +44 (0)208 434 2754
NOTES TO EDITORS
ABOUT CHARIOT
Chariot Oil & Gas Limited is an independent oil and gas
company focused on the Atlantic margins. It holds exploration
licences covering two blocks in Namibia, three blocks in Morocco
and four blocks in the Barreirinhas Basin offshore Brazil.
The ordinary shares of Chariot Oil & Gas Limited are
admitted to trading on the AIM Market of the London Stock Exchange
under the symbol 'CHAR'.
Chief Executive's Review
The progression of the Chariot portfolio in the last year has
been substantial. Through the participation in two wells and
subsequent associated technical analysis, the in-house team has
considerably developed its understanding of the petroleum systems
within its own portfolio as well as the broader Atlantic Margin. In
H1 2019 this has led to a refined prospect inventory of the giant
exploration portfolio as well as the identification and acquisition
of a low risk appraisal and development opportunity in the Lixus
Licence, offshore Morocco. This asset contains the Anchois gas
discovery which, combined with its satellite exploration prospects,
comprises in excess of 1 Tcf 2C contingent and 2U prospective
resources - the development of which could deliver substantial cash
flow to the Company and offer an important source of gas to
Morocco's strong and developing gas market.
As a small independent with an in-house team comprising
extensive geological knowledge and expert commercial understanding
of the areas in which the Company operates, we are often able to
move quickly to capitalise on opportunities and to rapidly progress
our assets. Within three months of acquiring Lixus the team has
re-evaluated significant quantities of 3D seismic and well data,
had an independent third party Competent Person's Report on the
recoverable resources identified within Anchois and its satellite
prospects, commissioned an independent analysis on the technical
feasibility of an Anchois development and a detailed analysis of
the Moroccan gas market to confirm the commercial potential of the
project and, based on the affirmations from these reports,
initiated a data room to secure partners to progress the
development. In addition, in order to facilitate timely appraisal
operations, the appropriate drilling EIA's have been initiated.
As with all of Chariot's assets, the broader Lixus portfolio is
believed to contain the potential for significant running room in
the success case and a further CPR has been completed on five
additional prospects which offer an attractive upside in excess of
1.2 Tcf 2U prospective resources.
At the same time as developing this lower risk part of the
portfolio, we have continued our focus on progressing our giant
potential exploration assets in which the Company looks to achieve
its long-term goal of discovering material quantities of
hydrocarbons. The integration of the information from the 2018
drilling campaign with our existing knowledge base is now complete,
enabling us to establish a de-risked and refined drilling prospect
portfolio. A data room has been opened with this integrated
information on priority prospects MOH-B and KEN-A (637mmbbls and
445mmbbls of gross mean prospective resource respectively) which
sit in the Mohammedia and Kenitra permits offshore Morocco and
associated drilling EIA's have been completed and approved.
In Namibia, the team will look to promote its priority targets
B, V and W (each ranging from 284 - 469mmbbls of gross mean
prospective resources) as a fast follower. Namibia remains a region
of significant industry interest, with three third party wells due
to be drilled in the next year, including a well in the block
adjacent to that of Chariot's. In a relatively underexplored region
such as this information from third party wells is crucial to
de-risking assets and we believe that these drilling campaigns will
offer important information on the prospectivity within the Central
Blocks.
The team will also continue to use this fast follower strategy
in its Brazilian acreage. A data room is open on priority Prospect
1 (911mmbbls of gross mean prospective resources in stacked
targets), with the aim of securing a partner to drill following the
results of a play opening third party well commitment in adjacent
acreage.
The goal of Chariot's ongoing new venture acquisition screening
process is to identify value accretive assets that will provide
balance to the wider portfolio. By adding recoverable resources to
the asset base the Company believes that it has created the
potential for a sustainable platform from which to progress the
giant exploration prospect portfolio - a discovery from which would
transform the Company.
Our half year cash balance of US$12.1 million is well in excess
of our current work commitments, which are less than US$1.0
million. With our continued focus on partnering to deliver on
drilling campaigns and a tight control over our cost base we
believe that we are in a secure position to achieve our near term
objectives, the success of which is anticipated to contribute
towards the development of the high impact exploration options
within the broader portfolio, and, ultimately, the delivery of
transformational value to stakeholders.
Operational Review
Morocco
Appraisal:
Lixus (75% Chariot (Operator), 25% ONHYM (carried interest));
all commitments fully funded
Since the acquisition of the low risk production opportunity
within Lixus in April 2019, the Company has completed an evaluation
of all the subsurface seismic and well data and an independent CPR
by Netherland Sewell & Associates Inc. has been carried out.
This third-party evaluation not only confirmed Chariot's analysis
but also upgraded the total remaining recoverable resource for
Anchois and its satellite prospects to in excess of 1 Tcf
(comprising 2C contingent resources and 2U prospective resources).
Anchois North is confirmed as the low risk priority satellite
prospect with 308 Bcf of 2U prospective resources and a probability
of geological success of 43%.
In line with its commitment to developing the gas market and
maturing development concepts for the Anchois gas field the team
commissioned a Development Feasibility Study and a Morocco Gas
Market and Anchois Field Monetisation Assessment. These studies
demonstrated that the development of the Anchois gas field project
is technically feasible and commercially attractive to the Company
as well as a potentially important source of gas to Morocco's
strong and developing gas market. The development scheme has
significant flexibility owing to the numerous satellite prospects
adjacent to the Anchois discovery.
The teams' re-evaluation of the subsurface identified
significant running room within the broader Lixus portfolio and a
further CPR on these additional five prospects within the licence
has been completed identifying an additional total remaining
recoverable resource in excess of 1.2 Tcf 2U prospective
resources.
A data room to identify partners to develop the project has been
opened and we have seen significant industry interest to date.
Consistent with all our exploration programmes, to accelerate
drilling where possible, we have looked to ensure that economically
viable long lead requirements are satisfied prior to securing
partners. A drilling EIA has been initiated to facilitate the
Anchois appraisal project that, subject to partnering, is
anticipated to commence in 2020.
High Impact Exploration:
Mohammedia and Kenitra (75% Chariot (Operator), 25% ONHYM
(carried interest); no remaining commitments)
An independent CPR has been completed on the integrated analysis
from the Rabat Deep 1 well with Chariot's legacy data. This
supports the Company's evaluation of MOH-B (gross mean prospective
resource of 637mmbbls) and KEN-A (gross mean prospective resource
of 445mmbbls) as priority drilling targets. These clastic prospects
show the potential for excellent quality upper Jurassic sandstone
reservoirs and seal encountered in the Rabat Deep 1 well as well
the potential for a hydrocarbon charge from Cretaceous source rocks
identified from extensive geochemical analysis.
A data room that includes this integrated analysis is now open
and the associated drilling EIAs have been completed and
approved.
Brazil
High Impact Exploration:
BAR-M-292, 293, 313 and 314 (100% Chariot (Operator); no
remaining commitments)
In Brazil, Chariot has a data room open on the independently
audited, large four-way dip-closed structure which consists of
seven reservoir targets, individually ranging up to 366mmbbls of
gross mean prospective resource. In particular, the Company is
promoting Prospect 1, which can penetrate a summed gross
prospective resource of 911mmbbls in TP-1, TP-3 and KP-3 by a
single vertical well.
In line with its fast follower approach, Chariot anticipates
partnered drilling to occur after third party drilling in adjacent
acreage. This will test the potential of the deeper outboard basin
and, crucially, directly de-risk Chariot's priority targets which
are located within the same play fairway, but, critically, in an
up-dip setting.
Namibia
High Impact Exploration:
PEL-71, "Central Blocks" (65% Chariot (Operator), 20% Azinam;
10% NAMCOR; 5% Ignitus; no remaining commitments)
Following the disappointing results of the Prospect S well in Q4
2018, the Company has carried out extensive post-well analysis to
determine the impact on the remaining prospectivity of the Central
Blocks, which span a vast 16,800km(2) .
The data recovered from the well has provided valuable
information about the excellent reservoir potential of the
turbidite sand systems which form the primary targets across many
of the remaining prospects, including the independently audited
Prospects B, V and W, each ranging from 284 - 469mmbbls of gross
mean prospective resources. These prospects access an outboard
source kitchen different to the inboard kitchen postulated for
Prospect S and have a geological chance of success ranging from
22-25%. The Company will look to promote these prospects to
interested parties using its "fast follower" strategy, with the aim
of drilling after integrating additional anticipated third-party
exploration well results in neighbouring acreage, likely to
commence in 2020.
New Ventures
Part of Chariot's ability to identify and progress its assets is
due to the strength of its in-house team and the experience built
in our regions of operation. The Company continues to use this
elevated level of knowledge and understanding to evaluate and
capitalise on further new venture opportunities that, like the
Lixus licence, can offer additional diversification to the risk
portfolio of the Company.
Financial Review
The Group is debt free and had a cash balance of US$12.1 million
at 30 June 2019 (US$28.4 million at 30 June 2018; US$19.8 million
at 31 December 2018), with all work commitments, which are less
than US$1.0 million, fully funded.
Other administrative expenses of US$1.5 million (30 June 2018:
US$1.5 million) remain in line with the prior period reflecting the
ongoing commitment to capital discipline and overhead control.
Finance income and expense net gain of US$0.1 million (30 June
2018: net loss US$0.1 million) comprises interest on cash and
foreign exchange movements on non-US$ cash. The net loss of US$0.1
million for the six months ended 30 June 2018 is due to the holding
of slightly higher cash balances in Sterling to meet prior year
drilling costs denominated in Sterling resulting in higher foreign
exchange movement. There has been no corresponding requirement to
hold Sterling cash balances in the current period.
Share-based payments charges of US$0.4 million are marginally
lower than the US$0.5 million incurred for the six months ended 30
June 2018 due to the vesting of historic awards of employee
deferred shares.
Corporate
Chariot looks to ensure that in all aspects of its work it has
the appropriate experience and background knowledge to progress
assets to the best of its ability. With the addition of this
appraisal opportunity to the portfolio, the Board has sought to
complement its already extensive and varied experience with that of
a new Non-Executive Director, Andrew Hockey. Andrew's expertise in
delivering gas appraisal and development projects will prove
invaluable to the Company's decision-making process as it looks to
progress its assets, in particular that of Lixus.
Outlook
Our objective in securing Lixus is for the substantial cashflow
anticipated to be generated from the appraisal and development of
Anchois to sustain our longer term, transformational potential
exploration drilling programmes across the wider portfolio.
Subject to partnering, we anticipate the appraisal and
development project of Anchois to commence in 2020, with first gas
achievable in 2023. At the same time, we will continue to promote
our giant exploration prospects to the industry, with the aim of
securing drilling partners to deliver this potential for
transformational value in the near term in Morocco and with a fast
follower positioning in Brazil and Namibia. We will also continue
to seek further opportunities that can offer additional balance to
the risk of the portfolio.
As ever, in all that we do we will remain vigilant to our cash
balance, applying capital discipline in all areas of our business.
We are excited about the coming months and believe that the quality
of the portfolio demonstrated by the significant work done to date,
our experienced and capable team and our clear strategic focus make
us well placed to achieve our objectives.
Larry Bottomley
Chief Executive Officer
24 September 2019
Chariot Oil & Gas Limited
Independent review report to Chariot Oil & Gas Limited
Introduction
We have been engaged by the Group to review the condensed set of
financial statements in the half-yearly financial report for the
six months ended 30 June 2019 which comprises the consolidated
statement of comprehensive income, the consolidated statement of
changes in equity, the consolidated statement of financial
position, the consolidated cash flow statement and the related
explanatory notes.
We have read the other information contained in the half-yearly
financial report and considered whether it contains any apparent
misstatements or material inconsistencies with the information in
the condensed set of financial statements.
Directors' responsibilities
The interim report, including the financial information
contained therein, is the responsibility of and has been approved
by the directors. The directors are responsible for preparing the
interim report in accordance with the rules of the London Stock
Exchange for companies trading securities on AIM which require that
the half-yearly report be presented and prepared in a form
consistent with that which will be adopted in the Group's annual
accounts having regard to the accounting standards applicable to
such annual accounts.
Our responsibility
Our responsibility is to express to the Group a conclusion on
the condensed set of financial statements in the half-yearly
financial report based on our review.
Our report has been prepared in accordance with the terms of our
engagement to assist the Company in meeting the requirements of the
rules of the London Stock Exchange for companies trading securities
on AIM and for no other purpose. No person is entitled to rely on
this report unless such a person is a person entitled to rely upon
this report by virtue of and for the purpose of our terms of
engagement or has been expressly authorised to do so by our prior
written consent. Save as above, we do not accept responsibility for
this report to any other person or for any other purpose and we
hereby expressly disclaim any and all such liability.
Scope of review
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410, "Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity", issued by the Financial Reporting Council for use
in the United Kingdom. A review of interim financial information
consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other
review procedures. A review is substantially less in scope than an
audit conducted in accordance with International Standards on
Auditing (UK) and consequently does not enable us to obtain
assurance that we would become aware of all significant matters
that might be identified in an audit. Accordingly, we do not
express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that
causes us to believe that the condensed set of financial statements
in the half-yearly financial report for the six months ended 30
June 2019 is not prepared, in all material respects, in accordance
with the rules of the London Stock Exchange for companies trading
securities on AIM.
BDO LLP
Chartered Accountants
London
United Kingdom
24 September 2019
BDO LLP is a limited liability partnership registered in England
and Wales (with registered number OC305127).
Chariot Oil & Gas Limited
Consolidated statement of comprehensive income for the six
months ended 30 June 2019
Six months Six months Year ended
ended 30 ended 30 31 December
June 2019 June 2018 2018
US$000 US$000 US$000
Notes Unaudited Unaudited Audited
Share based payments (355) (507) (904)
Impairment of exploration
asset 4 - - (10,876)
Other administrative expenses (1,543) (1,521) (3,359)
--------------------------------------- ------- -------------- -------------- ---------------
Total operating expenses (1,898) (2,028) (15,139)
--------------------------------------- ------- -------------- -------------- ---------------
Loss from operations (1,898) (2,028) (15,139)
Finance income 102 158 371
Finance expense (69) (256) (356)
--------------------------------------- ------- -------------- -------------- ---------------
Loss for the period before
taxation (1,865) (2,126) (15,124)
Tax expense (11) (12) (12)
--------------------------------------- ------- -------------- -------------- ---------------
Loss for the period and total
comprehensive loss for the
period attributable to equity
owners of the parent (1,876) (2,138) (15,136)
--------------------------------------- ------- -------------- -------------- ---------------
Loss per ordinary share attributable 3 US$(0.01) US$(0.01) US$(0.04)
to the equity holders of the
parent - basic and diluted
--------------------------------------- ------- -------------- -------------- ---------------
Chariot Oil & Gas Limited
Consolidated statement of changes in equity for the six months
ended 30 June 2019
Share Total
based Foreign attributable
Share Share Contributed payment exchange Retained to equity
capital premium equity reserve reserve deficit holders of
the parent
US$000 US$000 US$000 US$000 US$000 US$000 US$000
---------------- ---------- ---------- -------------- ---------- ----------- ----------- --------------
For the six
months ended
30 June 2019
(unaudited)
As at 1
January 2019 6,264 356,336 796 4,928 (1,241) (277,124) 89,959
Loss and total
comprehensive
loss for the
period - - - - - (1,876) (1,876)
Share based
payments - - - 355 - - 355
Transfer of
reserves due
to issue of
share awards 4 167 - (171) - - -
As at 30 June
2019 6,268 356,503 796 5,112 (1,241) (279,000) 88,438
---------------- ---------- ---------- -------------- ---------- ----------- ----------- --------------
For the six
months ended
30 June 2018
(unaudited)
As at 1
January 2018 4,881 340,743 796 4,472 (1,241) (261,988) 87,663
Loss and total
comprehensive
loss for the
period - - - - - (2,138) (2,138)
Issue of
capital 1,355 16,258 - - - - 17,613
Issue costs - (1,085) - - - - (1,085)
Share based
payments - - - 507 - - 507
Transfer of
reserves due
to issue of
share awards 3 26 - (29) - - -
As at 30 June
2018 6,239 355,942 796 4,950 (1,241) (264,126) 102,560
---------------- ---------- ---------- -------------- ---------- ----------- ----------- --------------
For the year
ended 31
December 2018
(audited)
As at 1
January 2018 4,881 340,743 796 4,472 (1,241) (261,988) 87,663
Loss and total
comprehensive
loss for the
year - - - - - (15,136) (15,136)
Issue of
capital 1,355 16,258 - - - - 17,613
Issue costs - (1,085) - - - - (1,085)
Share based
payments - - - 904 - - 904
Transfer of
reserves due
to issue of
share awards 28 420 - (448) - - -
As at 31
December 2018 6,264 356,336 796 4,928 (1,241) (277,124) 89,959
---------------- ---------- ---------- -------------- ---------- ----------- ----------- --------------
Chariot Oil & Gas Limited
Consolidated statement of financial position as at 30 June
2019
30 June 30 June 31 December
2019 2018 2018
US$000 US$000 US$000
Notes Unaudited Unaudited Audited
Non-current assets
Exploration and appraisal
costs 4 76,006 74,383 74,236
Property, plant and equipment 134 128 100
Right of use asset: office 1,147 - -
lease
------------------------------------ ------- ----------- ----------- ------------
Total non-current assets 77,287 74,511 74,336
------------------------------------ ------- ----------- ----------- ------------
Current assets
Trade and other receivables 1,347 1,076 2,306
Inventory 524 645 524
Cash and cash equivalents 5 12,137 28,369 19,822
------------------------------------ ------- ----------- ----------- ------------
Total current assets 14,008 30,090 22,652
------------------------------------ ------- ----------- ----------- ------------
Total assets 91,295 104,601 96,988
------------------------------------ ------- ----------- ----------- ------------
Current liabilities
Trade and other payables 1,549 2,041 7,029
Lease liability: office lease 339 - -
------------------------------------ ------- ----------- ----------- ------------
Total current liabilities 1,888 2,041 7,029
------------------------------------ ------- ----------- ----------- ------------
Non-current liabilities
Lease liability: office lease 969 - -
------------------------------------ ------- ----------- ----------- ------------
Total non-current liabilities 969 - -
------------------------------------ ------- ----------- ----------- ------------
Total liabilities 2,857 2,041 7,029
------------------------------------ ------- ----------- ----------- ------------
Net assets 88,438 102,560 89,959
------------------------------------ ------- ----------- ----------- ------------
Capital and reserves attributable
to equity holders of the parent
Share capital 6 6,268 6,239 6,264
Share premium 356,503 355,942 356,336
Contributed equity 796 796 796
Share based payment reserve 5,112 4,950 4,928
Foreign exchange reserve (1,241) (1,241) (1,241)
Retained deficit (279,000) (264,126) (277,124)
------------------------------------ ------- ----------- ----------- ------------
Total equity 88,438 102,560 89,959
------------------------------------ ------- ----------- ----------- ------------
Chariot Oil & Gas Limited
Consolidated cash flow statement for the six months ended 30
June 2019
Six months Six months Year ended
ended 30 ended 30 31 December
June 2019 June 2018 2018
US$000 US$000 US$000
Unaudited Unaudited Audited
-------------------------------------------- -------------- -------------- ---------------
Operating activities
Loss for the period before taxation (1,865) (2,126) (15,124)
Adjustments for:
Finance income (102) (158) (371)
Finance expense 69 256 356
Depreciation and amortisation 196 28 56
Share based payments 355 507 904
Impairment of exploration asset - - 10,876
-------------------------------------------- -------------- -------------- ---------------
Net cash outflow from operating
activities before changes in working
capital (1,347) (1,493) (3,303)
Decrease / (increase) in trade and
other receivables 479 195 (560)
Increase / (decrease) in trade and
other payables 120 (597) (775)
Increase in inventories - (165) (44)
-------------------------------------------- -------------- -------------- ---------------
Cash outflow from operating activities (748) (2,060) (4,682)
Tax payment (11) (12) (12)
-------------------------------------------- -------------- -------------- ---------------
Net cash outflow from operating
activities (759) (2,072) (4,694)
-------------------------------------------- -------------- -------------- ---------------
Investing activities
Finance income 124 155 357
Payments in respect of property,
plant and equipment (66) (23) (23)
Payments in respect of intangible
assets (6,752) (1,196) (7,223)
Net cash outflow used in investing
activities (6,694) (1,064) (6,889)
-------------------------------------------- -------------- -------------- ---------------
Financing activities
Issue of ordinary share capital - 17,613 17,613
Issue costs - (1,085) (1,085)
Payment of lease liabilities (164) - -
Finance expense on lease (52) - -
Net cash inflow from financing activities (216) 16,528 16,528
-------------------------------------------- -------------- -------------- ---------------
Net (decrease) / increase in cash
and cash equivalents in the period (7,669) 13,392 4,945
Cash and cash equivalents at start
of the period 19,822 15,233 15,233
Effect of foreign exchange rate
changes on cash and cash equivalent (16) (256) (356)
Cash and cash equivalents at end
of the period 12,137 28,369 19,822
-------------------------------------------- -------------- -------------- ---------------
Chariot Oil & Gas Limited
Notes to the interim financial statements for the six months
ended 30 June 2019
1. Accounting policies
Basis of preparation
The interim financial statements have been prepared using
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 EU.
The interim financial information has been prepared using the
accounting policies which were applied in the Group's statutory
financial statements for the year ended 31 December 2018. The Group
has not adopted IAS 34: Interim Financial Reporting in the
preparation of the interim financial statements.
Other than IFRS 16 Leases there has been no impact on the Group
of any new standards, amendments or interpretations that have
become effective in the period. The Group has not early adopted any
new standards, amendments or interpretations.
New accounting standard adopted
The Group has adopted IFRS 16 Leases effective 1 January 2019.
On adoption, the Group recognised a lease liability in relation to
the UK office that had previously been classified as an operating
lease under the principles of IAS 17 Leases.
This affected the following items in the consolidated balance
sheet on 1 January 2019:
-- right-of-use assets - increase by US$1.3 million (30 June
2019: US$ 1.1 million)
-- lease liabilities - increase by US$1.5 million (30 June 2019:
US$ 1.3 million)
Each lease payment is allocated between the liability and
finance cost. The finance cost is charged to profit or loss over
the lease period to produce a constant periodic rate of interest on
the remaining balance of the liability for each period. The
right-of-use asset is depreciated over the shorter of the asset's
useful life and the lease term on a straight-line basis. Additional
disclosure will be provided in the 2019 Financial Statements
relating to leases where material.
2. Financial reporting period
The interim financial information for the period 1 January 2019
to 30 June 2019 is unaudited but was the subject of an independent
review carried out by the Company's auditors, BDO LLP. The
financial statements also incorporate the unaudited figures for the
interim period 1 January 2018 to 30 June 2018 and the audited
figures for the year ended 31 December 2018.
The financial information contained in this interim report does
not constitute statutory accounts as defined by sections 243-245 of
the Companies (Guernsey) Law 2008.
The figures for the year ended 31 December 2018 are not the
Group's full statutory accounts for that year. The auditors' report
on those accounts was unqualified, did not contain references to
matters to which the auditors drew attention by way of emphasis and
did not contain a statement under section 263 (3) of the Companies
(Guernsey) Law 2008.
3. Loss per share
The calculation of the basic earnings per share is based on the
loss attributable to ordinary shareholders divided by the weighted
average number of shares in issue during the period.
Six months Six months Year ended
ended 30 June ended 30 June 31 December
2019 2018 2018
Loss for the period US$000 (1,876) (2,138) (15,136)
---------------- ---------------- --------------
Weighted average number of
shares 367,274,992 319,017,446 343,201,438
---------------- ---------------- --------------
Loss per share, basic and US$(0.01) US$(0.01) US$(0.04)
diluted*
---------------- ---------------- --------------
*Inclusion of the potential ordinary shares would result in a
decrease in the loss per share and, as such, is considered to be
anti-dilutive. Consequently a separate diluted loss per share has
not been presented.
4. Exploration and appraisal costs
30 June 2019 30 June 2018 31 December 2018
US$000 US$000 US$000
-------------- -------------- ------------------
Balance brought forward 74,236 72,770 72,770
-------------- -------------- ------------------
Additions 1,770 1,613 12,342
-------------- -------------- ------------------
Impairment - - (10,876)
-------------- -------------- ------------------
Net book value 76,006 74,383 74,236
-------------- -------------- ------------------
As at 30 June 2019 the net book values of the three cost pools
are Central Blocks offshore Namibia US$50.8 million (31 December
2018: US$50.5 million), Morocco US$9.8 million (31 December 2018:
US$8.5 million) and Brazil US$15.4 million (31 December 2018:
US$15.2 million).
The impairment charge in 2018 is in respect of drilling the
Prospect S well in the Central Blocks offshore Namibia. The Group
continues to see value in the remaining prospects within the
Central Blocks with recoverable amount assessed to be in excess of
carrying value.
5. Cash and cash equivalents
As at 30 June 2019 the cash balance of US$12.1 million (31
December 2018: US$19.8 million) contains the following cash
deposits that are secured against bank guarantees given in respect
of exploration work to be carried out:
30 June 2019 30 June 2018 31 December 2018
US$000 US$000 US$000
-------------- -------------- ------------------
Moroccan licences 650 3,550 800
-------------- -------------- ------------------
650 3,550 800
-------------- -------------- ------------------
The funds are freely transferrable but alternative collateral
would need to be put in place to replace the cash security.
6. Share capital
Allotted, called up and fully paid
At At At At 31 December 31
30 June 30 June 30 June 30 June 2018 December
2019 2019 2018 2018 2018
--------------- ---------- --------------- ---------- --------------- -----------
Number US$000 Number US$000 Number US$000
--------------- ---------- --------------- ---------- --------------- -----------
Ordinary
shares
of 1p
each 367,532,909 6,268 365,611,685 6,239 367,259,909 6,264
--------------- ---------- --------------- ---------- --------------- -----------
Details of the Ordinary shares issued during the six month
period to 30 June 2019 are given in the table below:
Date Description Price No of shares
US$
1 January
2019 Opening Balance 367,259,909
----------------------- ------- --------------
20 June 2019 Issue of share award 1.35 40,000
----------------------- ------- --------------
20 June 2019 Issue of share award 0.50 233,000
----------------------- ------- --------------
30 June 2019 367,532,909
------- --------------
The ordinary shares have a nominal value of 1p. The share
capital has been translated at the historic rate at the date of
issue, or, in the case of the LTIP, the date of grant.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR QZLFLKKFFBBL
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