TIDMCZN
RNS Number : 6546M
Curzon Energy PLC
30 April 2018
30 April 2018
Curzon Energy Plc
("Curzon Energy" or the "Company")
Results for the Year Ended 31 December 2017
Curzon Energy, the 100% owner of the 45,000 acre Coos Bay
Coalbed Methane (CBM) Project, announces its full year audited
results for the year ended 31 December 2017. These results relate
in part to the period prior to the Company's acquisition of Coos
Bay Energy LLC which was concluded in October 2017.
Financial and Operational Highlights
-- Successful IPO of Curzon Energy in October 2017 and admission
to the Official List and to trading on the Main Market of the
London Stock Exchange raising gross proceeds of GBP2.3m
-- Completed first acquisition of 100% of Coos Bay Energy LLC,
c. 45,370 acres of coalbed methane leases, ("Coos Bay CBM project")
with 2C contingent gas resources of 273.5 BCF.
-- Pre-tax loss of $1.83m, (2016: $3.54m) in line with
expectations and including acquisition and transaction costs
-- Net cash of $1.6m at 30 December 2017
Post Period Highlights
-- Workover and clean-out operations completed on five wells
(9-21, 1-21, 15-21,16-16 and 13-15) at Coos Bay CBM project
-- Well testing commenced on all five wells on 29 January,
recording gas volumes in line with expectations
-- Gas volumes produced sufficient to power wellhead pumping
equipment with excess gas being flared
-- Individual wells are now exceeding gas production of 10
Mscf/day and are on increasing trend as expected
-- Operations have commenced to remove bridge plugs and to
significantly extend the perforation intervals in both gas bearing
coal seam zones and conventional sandstone reservoirs
-- The Company continues to advance the implementation of the
permitted water disposal system, together with gas sales contract
negotiations and a pipeline interconnection agreement for future
gas sales
Stephen Schoepfer, Chief Executive Officer comments:
"Following our successful IPO on the Main Market and fundraise
in October 2017, we have commenced operations at pace, deploying
the money raised to bring our highly attractive CBM project to
first gas and demonstrating "proof of concept". The Company has
achieved significant progress in a short time and we are pleased to
see Coos Bay delivering increasing gas rates and pressures in line
with our expectations.
"With the proposed extended perforation intervals, in both gas
bearing coal seam zones and conventional sandstone reservoirs, we
expect to see gas production and pressure increases which will aid
our understanding of the project and enable us to make a decision
on a phase two commercial development programme."
A copy of Curzon Energy's 2017 Annual Report can be found on the
Company Website:
http://www.curzonenergy.com/investor-relations/reports-and-presentation/2018
Enquiries:
For further information please contact:
Curzon Energy PLC c/o Camarco
Stephen Schoepfer / Thomas Wagenhofer +44 20 3757 4980
www.curzonenergy.com
SP Angel Corporate Finance LLP +44 20 3470 0470
Richard Hail / Richard Redmayne
Camarco (Financial PR) +44 20 3757 4980
Georgia Edmonds / Owen Roberts
/ Monique Perks
Notes to Editors:
Curzon Energy Plc, is the 100% owner of the 45,000 acre Coos Bay
Coalbed Methane (CBM) Project, located in Oregon USA. Coos Bay has
2C contingent gas resources of 273.5 BCF.
The Company is implementing a cost effective staged development
plan, targeting first gas and cash generation from Phase I in Q2
2018. The Phase I work programme consists of the low-cost workover
of five existing, and drilling of two new wells.
The Company is led by an experienced Board and senior management
team who have extensive industry and financial experience. Curzon
Energy is listed on the LSE Main Market under the ticker CZN.
About Coalbed Methane (CBM):
Coalbed methane gas (CBM) (or coal seam gas (CSG) or coal-mine
methane (CMM)), is a form of natural gas extracted from coal seams
or coal deposits. CBM is generated during the process of
coalification which is the transformation of plant material into
coal and is contained in the coal microstructure. Typical CBM
recovery entails initially pumping water out of the coal to allow
the natural gas to escape. Methane is the principal component of
the natural gas from CBM production, which is typically made up of
95 per cent methane and normally does not contain hydrogen sulphide
or other sulphur compounds. Natural gas produced from CBM can
normally be added to natural gas pipelines without any special
treatment.
The United States has the longest history and greatest volumes
of CBM production, however, other countries such as Canada, China
and Australia have increased production over recent decades.
Competent Person's Statement
The information contained in this announcement has been reviewed
and approved by Thomas Wagenhofer, Technical Director of Curzon,
who is a petroleum engineer and oil and gas executive with over 20
years' international industry experience. Mr. Wagenhofer holds a MS
degree in Petroleum Engineering from the University of Texas at
Austin (1995) and a BS degree in Petroleum Engineering from the
University of Alaska Fairbanks (1994). He is a registered
Professional Engineer with the Texas Board of Professional
Engineers (current status inactive) in the State of Texas, USA.
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
Chairman's Statement
I am pleased to present the annual report for the Company
covering its results for the period from 01 January 2017 to 31
December 2017.
The Company was incorporated for the purpose of pursuing a
targeted acquisition strategy of oil and gas assets. The Company's
first acquisition occurred on 03 October 2017 when the Company
acquired 100% of the membership interests of Coos Bay Energy LLC
("Coos Bay"), which is the owner and operator of approximately
45,370 acres of coalbed methane leases in Coos Bay, Oregon, USA,
pursuant to a membership interest purchase agreement dated 20 May
2017 (the "Acquisition"). The consideration for the Acquisition
involved the issuance by the Company of an aggregate of 40 million
Ordinary Shares to the members of Coos Bay.
On 4 October, the Company admitted its shares to the Standard
Listing segment of the Official List, to trade on the London Stock
Exchange's main market for listed securities, raising gross
proceeds of GBP2.3 million (approximately GBP1.6 million net of
expenses), which are being used to fund the Company's operations
and, in particular, its activities in connection with the Coos Bay
project.
Following the Acquisition, the Group's main focus has been on
developing the business of Coos Bay. The main objectives for the
Coos Bay project are to complete Phase I (proof of concept) which
involves re-entering the five existing wells and bringing them to
production, followed by the drilling and completion of up to two
additional wells, and then connecting the wells to the nearby
pipeline. First gas from the wells is expected in Q2 of 2018.
Should Phase I be successful, the Company intends to seek further
capital to progress to Phase II (initial development), which would
involve the development of approximately 58 additional wells.
Should Phase II prove successful, a further funding round will be
required to commence and complete Phase III (large scale
development), which would bring the total wells for the project to
400+.
The Board has been significantly strengthened during the 2017
fiscal year in order to pursue this strategy. Corporate governance
will remain a topic close to the top of the Board's agenda going
forward.
The Group incurred a loss of US$1,833,381 in the period ended 31
December 2017. A majority of this loss comprised expenditures in
relation to the acquisition of Coos Bay, the Group's admission to
the London Stock Exchange and commencement of activities for Phase
I of the Coos Bay project.
On behalf of the Board, I would like to take this opportunity to
thank our staff and advisers for their hard work as well as the
shareholders for their support given to the Company. With the Coos
Bay acquisition now complete, the Board believes this will provide
the potential to deliver significant value to shareholders.
We look forward to updating shareholders on our further progress
in due course.
John McGoldrick
Non-Executive Chairman
30 April 2018
Strategic Report
Financial Results
The Company was formed in January 2016 to undertake acquisitions
in the oil and gas sector. As noted in the Chairman's Statement,
during the period ended 31 December 2017, the Company commenced
trading and acquired Coos Bay.
The acquisition of Coos Bay was successfully concluded in
October 2017 for an agreed consideration of GBP3.2 million, payable
by way of the issue of shares to the former owners of Coos Bay. We
also completed a placing of shares for a cash consideration of
GBP2.3 million, pursuant to the Company's admission to the Official
List. The costs of admission (including fees and commissions) were
GBP0.7 million. The net proceeds, after deducting fees and expenses
in connection with admission were approximately GBP1.6 million.
The Group loss for the period to 31 December 2017 was
US$1,833,381. There were no revenues and the majority of the loss
related to preliminary expenditures in connection with the
Company's acquisition of Coos Bay, admission to the Official List
and commencement of Phase I of the Coos Bay project.
As a result of these initial losses, there is no tax charge for
the period.
The loss per share was US$0.03 (2016: loss US$0.08).
The Group's cash balances at the end of 2017 totalled
US$1,595,035. With the net proceeds from the Company's placing of
shares in September 2017, as well as amounts available pursuant to
the terms of a loan facility provided by YA Global Investments,
L.P., the Company's cash resources are considered sufficient to
meet its obligations.
The Directors are now looking to implement the development of
the Coos Bay business whilst keeping day-to-day overhead costs
under control. The acquisition of Coos Bay is the first step in the
Company's acquisition strategy.
The Board believes that the Company will be able to raise, as
required, sufficient cash or reduce its commitments to enable it to
continue these objectives, and to continue to meet, as and when
they fall due, its liabilities for at least the next twelve months
from the date of approval of these financial statements. The
financial statements have, therefore, been prepared on the going
concern basis.
Following the acquisition of Coos Bay, the Group has 7 staff
(including Directors).
Principal activities
The Company was incorporated on 29 January 2016 in England and
Wales as an investment company to acquire oil and gas assets. Its
first acquisition was of Coos Bay. The Directors expect to identify
and assess other oil and gas opportunities in the future and expect
to return to the market if they wish to acquire and/or raise funds
for other projects.
Following the acquisition of Coos Bay by the Company, the
Group's main focus will be to develop the business of Coos Bay and
to focus on the Coal Bed Methane ("CBM") gas sector in Oregon. The
Company raised GBP650,362 in a private funding round principally
from UK, US and European investors prior to admission. These funds
were primarily used to meet start-up costs and costs associated
with acquiring Coos Bay. The consideration for the acquisition was
by the issue of 40 million Ordinary Shares to the members in Coos
Bay and assumption by the Company of certain loan notes as
described in note 15 to the financial statements.
Coos Bay owns certain CBM and related assets, which it acquired
on 4 November 2016 by acquiring Westport Energy Acquisition, Inc.
and its wholly owned subsidiary Westport Energy LLC (the 'US Group
") from Westport Energy Holdings Inc., a publicly held company
trading on the OTC Pink Market. The US Group had been operating a
CBM business in Coos Bay, Oregon for 6 years. At the time of the
Acquisition, the US Group's CBM business consisted of leases to
approximately 45,370 acres in Coos Bay, Oregon.
The management team of the US Group, has continued in their
management roles allowing the Group to maintain management
continuity and continuity in-field operations.
The Group's business will be operated through the US Group, with
a focus on oil and gas exploration, appraisal and development, with
the goal of commencing production from certain assets in the near
term. Its first project is to appraise, develop and produce CBM gas
from prospective and contingent resources in the Coos Bay Basin,
primarily targeting natural gas from coal seams of the Coaledo
Formation in the Coos Bay Basin. Secondary objectives of the Group
may include the exploration, production and acquisition of natural
gas, and possibly oil, trapped in conventional reservoirs
Following the acquisition of Coos Bay, the Company is a holding
company with the following subsidiaries:
Name Country of Proportion Principal
Incorporation of equity activity
ownership
--------------------- --------------- ----------- ----------------
Coos Bay Nevada, USA 100% Gas Exploration
Energy LLC & Development
--------------------- --------------- ----------- ----------------
Westport Delaware, 100% Holding Company
Energy Acquisition, USA
Inc.
--------------------- --------------- ----------- ----------------
Westport Delaware, 100% Gas Exploration
Energy, LLC USA & Development
--------------------- --------------- ----------- ----------------
Coos Bay, which employs the Group's employees and conducts
operations in the Coos Bay Basin Area, is held directly by the
Company. Its two indirectly owned subsidiaries are Westport Energy
Acquisition Inc. and its wholly-owned subsidiary, Westport Energy
LLC.
Review of the business
2017 saw the Company's formation and development of management's
long-term plans for an acquisition strategy in the oil and gas
sector. These have been progressed further during 2017 culminating
with the acquisition of Coos Bay and the Company's listing on the
London Stock Exchange and the commencement of Phase I of the Coos
Bay project.
Key performance indicators (KPIs)
The Directors have identified the following key performance
indicators ('KPIs') that the Company will track over 2017 and into
future years. These will be refined and augmented as the Group's
business matures: The Directors consider that the KPIs are:
i) A well-funded business in terms of cash resources; and
ii) Appraisal and drilling results of its CBM assets.
Principal Risks and Risk Management
Exploration is an inherently risky business:
-- Even the most promising prospects can have failures for many reasons, such as:
o The coal bed methane assets may not be found in commercial
quantities if there are errors in the underlying geological
assumptions or analysis.
o CBM may have been present, but escaped due to unexpected
geological events
o The reservoir may not flow at commercially viable rates of
flow.
o The drilling may encounter technical problems which make it
impossible or too expensive to reach the target.
o The ability of the Group to exploit and develop gas reserves
depends on its current leases. The Group currently has under lease
approximately 45,370 acres of prospective coalbed methane lands in
the Coos Bay Basin under two major leases and three ancillary
leases. There is no guarantee that existing leases will be
continued beyond their primary term.
-- The Company may take on commitments for which it then cannot
find adequate funding. Although the Company can then potentially
sell all or part of its assets:
o There is no guarantee it can find a buyer.
o Even if it does find a buyer, the transaction may take too
long and the Company's cash resources may become exhausted.
The Company's risk mitigation strategies include the
following:
-- Partnering with key experts that have demonstrated an ability
to predict the presence or absence of hydrocarbons.
-- Utilizing the Directors' experience who have excellent local
knowledge as to where to seek assets.
-- Securing the support of a number of key private shareholders,
and actively pursuing other sources of funding.
-- Utilizing third parties to assist with the management of currency risk.
Corporate Responsibility
The Company takes its responsibilities as a corporate citizen
seriously. The Board's primary goal is to create shareholder value
but in a responsible way which serves all stakeholders.
Governance
The Board considers sound governance as a critical component of
the Company's success and the highest priority. The Company has an
effective and engaged Board, with a strong non-executive presence
from diverse backgrounds and well-functioning governance
committees. Through the Company's compensation policies and
variable components of employee remuneration, the Remuneration
Committee of the Board seeks to ensure that the Company's values
are reinforced in employee behaviour and that effective risk
management is promoted.
Employees and their development
The Company is dependent upon the qualities and skills of its
employees and the commitment of its people plays a major role in
the Company's business success. Employees' performance is aligned
to the Company's goals through an annual performance review process
and via incentive programmes. The Company provides employees with
information about its activities through regular briefings and
other media. The Company operates a share option and warrant scheme
operated at the discretion of the Remuneration Committee.
Diversity and inclusion
The Company does not discriminate on the grounds of age, gender,
nationality, ethnic or racial origin, non-job-related-disability,
sexual orientation or marital status. The Company gives due
consideration to all applications and provides training and the
opportunity for career development wherever possible. The Board
does not support discrimination of any form, positive or negative,
and all appointments are based solely on merit.
Health and safety
The Company endeavours to ensure that the working environment is
safe and healthy and conducive to the wellbeing of employees who
are able to balance work and family commitments. The Company has a
Health and Safety at Work policy which is reviewed regularly by the
Board and is committed to the health and safety of its employees
and others who may be affected by the Company's activities. The
Company provides the information, instruction, training and
supervision necessary to ensure that employees are able to
discharge their duties effectively. The Health and Safety
procedures used by the Company ensure compliance with all
applicable legal, environmental and regulatory requirements, as
well as its own internal standards.
Outlook
The Company's near-term goals are to develop the business of
Coos Bay and to focus on the Coal Bed Methane gas sector in
Oregon.
The Company has successfully completed two fundraisings and is
building a talented team to implement its plans.
We have achieved significant progress and are confident that we
can meet the challenges that lie ahead.
Signed by order of the board
Stephen Schoepfer
Chief Executive Officer
Date 30 April 2018
Independent auditor's report to the members of Curzon Energy
Plc
Opinion
We have audited the financial statements of Curzon Energy Plc
for the year ended 31 December 2017 which comprise the group
statements of comprehensive income, the group and parent statements
of financial position, the group and parent company statements of
cashflows, the group a parent company statements of changes in
equity and notes to the financial statements, including a summary
of significant accounting policies. The financial reporting
framework that has been applied in their preparation is applicable
law and International Financial Reporting Standards (IFRSs) as
adopted by the European Union.
In our opinion, the financial statements:
-- give a true and fair view of the state of the group's and
company's affairs as at 31 December 2017 and of its loss for the
year then ended;
-- have been properly prepared in accordance with International
Financial Reporting Standards as adopted by the European Union;
-- of the parent have been properly prepared in accordance with
IFRSs as adopted by the European Union as applied in accordance
with the provisions of the Companies Act 2006; and
-- have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International
Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our
responsibilities under those standards are further described in the
Auditor's responsibilities for the audit of the financial
statements section of our report. We are independent of the Company
in accordance with the ethical requirements that are relevant to
our audit of the financial statements in the UK, including the
FRC's Ethical Standard, and we have fulfilled our other ethical
responsibilities in accordance with these requirements. We believe
that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
Conclusions relating to going concern
We have nothing to report in respect of the following matters in
relation to which ISAs (UK) require us to report to you when:
-- The directors' use of the going concern basis of accounting
in the preparation of the financial statements is not appropriate;
or
-- The directors have not disclosed in the financial statements
any identified material uncertainties that may cast significant
doubt about the Company's ability to continue to adopt the going
concern basis of accounting for a period of at least twelve months
from the date when the financial statements are authorised for
issue.
Overview of our audit approach
Materiality
In planning and performing our audit we applied the concept of
materiality. An item is considered material if it could reasonably
be expected to change the economic decisions of a user of the
financial statements. We used the concept of materiality to both
focus our testing and to evaluate the impact of misstatements
identified.
Based on our professional judgement, we determined overall
materiality for the financial statements as a whole to be
GBP90,000, based on a percentage of total assets.
We use a different level of materiality ('performance
materiality') to determine the extent of our testing for the audit
of the financial statements. Performance materiality is set based
on the audit materiality as adjusted for the judgements made as to
the entity risk and our evaluation of the specific risk of each
audit area having regard to the internal control environment.
Where considered appropriate performance materiality may be
reduced to a lower level, such as, for related party transactions
and directors' remuneration.
We agreed with the Audit Committee to report to it all
identified errors in excess of GBP4,000. Errors below that
threshold would also be reported to it if, in our opinion as
auditor, disclosure was required on qualitative grounds.
Overview of the scope of our audit
There are two components of the Group, Curzon Energy Plc as an
entity and the US Group headed by Coos Bay Energy LLC. The audit of
Curzon Energy Plc was conducted from the UK. The accounting records
were provided to us by management. The company engaged a US firm to
undertake the audit work on the US group. The audit was conducted
under our direction. We issued instructions to the US firm that
detailed the significant risks to be addressed through the audit
procedures and indicated the information we required to be
reported. We reviewed their working papers and discussed key
findings.
Key Audit Matters
Key audit matters are those matters that, in our professional
judgement, were of most significance in our audit of the financial
statements of the current period and include the most significant
assessed risks of material misstatement (whether or not due to
fraud) that we identified. These matters included those which had
the greatest effect on: the overall audit strategy, the allocation
of resources in the audit; and directing the efforts of the
engagement team. These matters were addressed in the context of our
audit of the financial statements as a whole, and in forming our
opinion thereon, and we do not provide a separate opinion on these
matters.
This is not a complete list of all risks identified by our
audit.
Key audit matter How the scope of our audit addressed
the key audit matter
============================ =======================================
Valuation of Exploration We reviewed management's assessment
and evaluation assets which concluded that there
The group's primary are no facts or circumstances
focus is on exploration that suggest the recoverable amount
activities in the Coos of
Bay Basin. The exploration the asset exceeds the carrying
assets at 31 December amount.
2017 totalled GBP2.6m.
In considering this assessment
We considered the risk we reviewed the following sources
that exploration assets of
are impaired. evidence:
--The primary lease agreement
in place supporting the company's
right of extraction.
--The third party valuation report
commissioned by management as
well as the competent persons
report that formed the basis of
the valuation.
--Comparing the valuation methodology
to the prior year, including the
underlying assumptions.
--Board minutes, budgets and other
operational plans setting out
the current plans for the continued
commercial appraisal of the asset;
-- Discussing plans and intentions
with management
Key observations
We reviewed the assumptions used
in the valuation model and consider
them to be reasonable including,
natural gas prices, royalty rates,
Capex, water disposal and well
life.
============================ =======================================
Our audit procedures in relation to these matters were designed
in the context of our audit opinion as a whole. They were not
designed to enable us to express an opinion on these matters
individually and we express no such opinion.
Other information
The directors are responsible for the other information. The
other information comprises the information included in the annual
report, other than the financial statements and our auditor's
report thereon. Our opinion on the financial statements does not
cover the other information and, except to the extent otherwise
explicitly stated in our report, we do not express any form of
assurance conclusion thereon.
In connection with our audit of the financial statements, our
responsibility is to read the other information and, in doing so,
consider whether the other information is materially inconsistent
with the financial statements or our knowledge obtained in the
audit or otherwise appears to be materially misstated. If we
identify such material inconsistencies or apparent material
misstatements, we are required to determine whether there is a
material misstatement in the financial statements or a material
misstatement of the other information. If, based on the work we
have performed, we conclude that there is a material misstatement
of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act
2006
In our opinion the part of the directors' remuneration report to
be audited has been properly prepared in accordance with the
Companies Act 2006.
In our opinion based on the work undertaken in the course of our
audit
-- the information given in the strategic report and the
directors' report for the financial year for which the financial
statements are prepared is consistent with the financial
statements; and
-- the directors' report and strategic report have been prepared
in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In light of the knowledge and understanding of the group and the
parent company and their environment obtained in the course of the
audit, we have not identified material misstatements in the
strategic report or the directors' report.
We have nothing to report in respect of the following matters
where the Companies Act 2006 requires us to report to you if, in
our opinion:
-- adequate accounting records have not been kept by the
company, or returns adequate for our audit have not been received
from branches not visited by us; or
-- the financial statements and the part of the directors'
remuneration report to be audited are not in agreement with the
accounting records and returns; or
-- certain disclosures of directors' remuneration specified by law are not made; or
-- we have not received all the information and explanations we require for our audit
Responsibilities of the directors for the financial
statements
As explained more fully in the directors' responsibilities
statement on page 20, the directors are responsible for the
preparation of the financial statements and for being satisfied
that they give a true and fair view, and for such internal control
as the directors determine is necessary to enable the preparation
of financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the financial statements, the directors are
responsible for assessing the Company's ability to continue as a
going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless the
directors either intend to liquidate the Company or to cease
operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial
statements
Our objectives are to obtain reasonable assurance about whether
the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an
auditor's report that includes our opinion. Reasonable assurance is
a high level of assurance, but is not a guarantee that an audit
conducted in accordance with ISAs (UK) will always detect a
material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in
the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these financial
statements.
We designed our audit approach to be capable of detecting
irregularities, including fraud. In particular:
We gained an understanding of the legal and regulatory framework
applicable to the Group and considered the risk of acts by the
Group which were contrary to applicable laws and regulations,
including fraud.
We designed audit procedures to respond to the risk, recognising
that the risk of not detecting a material misstatement due to fraud
is higher than the risk of not detecting one resulting from error,
as fraud may involve deliberate concealment
Our tests included, but were not limited to: review of the
financial statement disclosures to underlying supporting
documentation and enquiries of management. There are inherent
limitations in the audit procedures described above and the further
removed non-compliance with laws and regulations is from the events
and transactions reflected in the financial statements, the less
likely we would become aware of it.
We did not identify any key audit matters relating to
irregularities, including fraud. As in all of our audits we also
addressed the risk of management override of internal controls,
including testing journals and evaluating whether there was
evidence of bias by the directors that represented a risk of
material misstatement due to fraud.
A further description of our responsibilities for the audit of
the financial statements is located on the Financial Reporting
Council's website at: www.frc.org.uk/auditorsresponsibilities. This
description forms part of our auditor's report.
Other matters which we are required to address
We were appointed by the Board on 21 November 2017 to audit the
financial statements for the year ended 31 December 2017. Our total
uninterrupted period of engagement is 2 years, covering the period
ended 31 December 2016 to 31 December 2017.
The non-audit services prohibited by the FRC's Ethical Standard
were not provided to the company and we remain independent of the
group and the parent company in conducting our audit.
Our audit opinion is consistent with the additional report to
the audit committee.
Use of our report
This report is made solely to the company's members, as a body,
in accordance with Chapter 3 of Part 16 of the Companies Act 2006.
Our audit work has been undertaken so that we might state to the
company's members those matters we are required to state to them in
an auditor's report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to
anyone other than the company and the company's members as a body,
for our audit work, for this report, or for the opinions we have
formed.
Matthew Stallabrass
Senior Statutory Auditor
For and on behalf of
Crowe Clark Whitehill LLP
Statutory Auditor
London
30 April 2018
Consolidated statement of comprehensive income
for the year ended 31 December 2017
2017 2016
US$ US$
-------------------------------- ------------ --------------
Well field expenses (293,867) (60,187)
Administrative expenses (1,662,619) (1,035,803)
---------------------------------- ------------ --------------
Loss from operations (1,956,486) (1,095,990)
Finance expense, net (102,288) (281,476)
Impairment of exploration
and evaluation assets - (2,158,000)
Other income 225,393 -
-------------------------------- ------------ --------------
Loss before taxation (1,833,381) (3,535,466)
Income tax expense - -
-------------------------------- ------------ --------------
Loss for the year attributable
to
equity holders of the
parent company (1,833,381) (3,535,466)
---------------------------------- ------------ --------------
Other comprehensive
income/(expense)
Gain/(loss) on translation
of parent net assets
and results from functional
currency into presentation
currency 44,624 (38,153)
---------------------------------- ------------ --------------
Total comprehensive
loss for the year (1,788,757) (3,573,619)
---------------------------------- ------------ --------------
Loss per share
Basic and diluted, US$ (0.03) (0.08)
The notes to these statements are in the Company's Annual
Report
Consolidated statements of financial position
as at 31 December 2017
2017 2016
US$ US$
------------------------------- ------------- -------------
Assets
Non-current assets
Intangible assets 2,559,000 2,559,000
Restricted cash 125,440 125,315
Total non-current assets 2,684,440 2,684,315
--------------------------------- ------------- -------------
Current assets
Prepayments and other 148,616 -
receivables
Cash and cash equivalents 1,595,035 370,722
--------------------------------- ------------- -------------
Total current assets 1,743,651 370,722
--------------------------------- ------------- -------------
Total assets 4,428,091 3,055,037
--------------------------------- ------------- -------------
Liabilities
Current liabilities
Trade and other payables 463,413 581,842
Borrowings 578,599 363,829
--------------------------------- ------------- -------------
Total current liabilities 1,042,012 945,671
--------------------------------- ------------- -------------
Total liabilities 1,042,012 945,671
--------------------------------- ------------- -------------
Capital and reserves
attributable to shareholders
Share capital 964,575 639,925
Share premium 3,199,004 763,854
Share-based payments
reserve 114,659 -
Warrants reserve 191,011 -
Merger reserve 31,212,041 31,212,041
Foreign currency translation
reserve 6,471 (38,153)
Accumulated losses (32,301,682) (30,468,301)
--------------------------------- ------------- -------------
Total capital and reserves 3,386,079 2,109,366
--------------------------------- ------------- -------------
Total equity and liabilities 4,428,091 3,055,037
--------------------------------- ------------- -------------
The financial statements were approved and authorised for issue
by the Board of Directors on 30 April 2018 and were signed on its
behalf by:
Thomas Mazzarisi
Director
The notes to these statements are in the Company's Annual
Report
Consolidated statements of changes in equity
Share Share Other Accumulated
capital premium reserves losses Total
US$ US$ US$ US$ US$
--------------------- --------- ---------- ------------ ------------- ------------
Equity as
at 1 January
2016 530,803 - 25,545,285 (26,948,973) (872,885)
--------------------- --------- ---------- ------------ ------------- ------------
Loss for
the year - - - (3,519,328) (3,519,328)
Other comprehensive
income for
the year - - (38,153) - (38,153)
--------------------- --------- ---------- ------------ ------------- ------------
Total comprehensive
loss for
the year - - (38,153) (3,519,328) (3,557,481)
Issue of
shares 109,122 763,854 - - 872,976
Increase
in additional
capital of
Coos Bay - - 5,666,756 - 5,666,756
At 31 December
2016 639,925 763,854 31,173,888 (30,468,301) 2,109,366
Loss for
the year - - - (1,833,381) (1,833,381)
Other comprehensive
income for
the year - - 44,624 - 44,624
--------------------- --------- ---------- ------------ ------------- ------------
Total comprehensive
loss for
the year - - 44,624 (1,833,381) (1,788,757)
Issue of
shares 324,650 2,921,855 - - 3,245,505
Share issue
costs - (486,705) - - (486,705)
Issue of
share warrants - - 191,011 - 191,011
Issue of
share options - - 114,659 - 114,659
At 31 December
2017 964,575 3,199,004 31,524,182 (32,301,682) 3,386,079
--------------------- --------- ---------- ------------ ------------- ------------
Other Reserves
Foreign
Share-based currency Total
Merger payments Warrants translation Other
reserve reserve reserve reserve reserves
US$ US$ US$ US$ US$
--------------------- ------------ ------------ --------- ------------- -------------
Equity as
at 1 January
2016 25,545,285 - - - 25,545,285
--------------------- ------------ ------------ --------- ------------- -------------
Loss for - - - - -
the year
Other comprehensive
income for
the year - - - (38,153) (38,153)
--------------------- ------------ ------------ --------- ------------- -------------
Total comprehensive
loss for
the year - - - (38,153) (38,153)
Issue of - - - - -
shares
Increase
in additional
capital of
Coos Bay 5,666,756 - - - 5,666,756
At 31 December
2016 31,212,041 - - (38,153) 31,173,888
Loss for - - - - -
the year
Other comprehensive
income for
the year - - - 44,624 44,624
--------------------- ------------ ------------ --------- ------------- -------------
Total comprehensive
loss for
the year - - - 44,624 44,624
Issue of
shares - - - - -
Share issue
costs - - - - -
Issue of
share warrants - - 191,011 - 191,011
Issue of
share options - 114,659 - - 114,659
At 31 December
2017 31,212,041 114,659 191,011 6,471 31,524,182
--------------------- ------------ ------------ --------- ------------- -------------
Consolidated statement of cash flows
2017 2016
US$ US$
--------------------------------------- ------------ ------------
Cash flow from operating activities
Loss before taxation (1,833,381) (3,535,466)
Adjustments for:
Finance cost, net 86,473 344,354
Income from payable write off (225,393) -
Licences impairment - 2,158,000
Share-based payments charge 111,367 -
Unrealised foreign exchange
movements 50,184 (29,004)
Operating cashflows before
working capital changes (1,810,750) (1,062,116)
Changes in working capital:
Increase in payables 66,576 209,637
(Increase) in receivables (118,542) -
--------------------------------------- ------------ ------------
Net cash used in operating
activities (1,862,716) (852,479)
---------------------------------------- ------------ ------------
Financing activities
Issue of ordinary shares 3,087,266 872,979
Costs of share issue (295,694) -
Proceeds from new borrowings 250,000 350,815
Net cash flow from financing
activities 3,041,572 1,223,794
---------------------------------------- ------------ ------------
Net Increase in cash and cash
equivalents in the period 1,178,856 371,315
Cash and cash equivalents at
the beginning of the period 370,722 515
Restricted cash held on deposits 125,315 124,424
---------------------------------------- ------------ ------------
Total cash and cash equivalents
at the beginning of the period,
including restricted cash 496,037 125,019
---------------------------------------- ------------ ------------
Effect of the translation of
cash balances into presentation
currency 45,457 (1,187)
Interest on restricted cash 125 891
Cash and cash equivalents at
the end of the period 1,595,035 370,722
Restricted cash held on deposits 125,440 125,315
---------------------------------------- ------------ ------------
Total cash and cash equivalents
at the end of the period, including
restricted cash 1,720,475 496,037
---------------------------------------- ------------ ------------
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR IMMRTMBBJBJP
(END) Dow Jones Newswires
April 30, 2018 13:16 ET (17:16 GMT)
Curzon Energy (LSE:CZN)
Historical Stock Chart
From Mar 2024 to Apr 2024
Curzon Energy (LSE:CZN)
Historical Stock Chart
From Apr 2023 to Apr 2024