17:00 Tue 25 Sep 2018
Petrel Resources PLC - Interim Results
25th
("Petrel" or "the Company")
Interim Statement for the six months ended
Petrel's main focus in the period under review was on the
Frontier Exploration Licence (FEL) 11/18:
Petrel's Joint Venture with Woodside Energy is now focused on the key FEL 11/18 - the "filet mignon" of the
Petrel acquired this 10% working interest at no cost, as part of the resolution of prior issues under arbitration. FEL 11/18 covers circa 1,579km2 of acreage, combining a number of play types in reasonable water and rock depths.
Our 10% stake brings access to all historic data, as well as circa 1,600km2 of state-of-the-art 3D seismic data.
Frontier Exploration Licence (FEL) 3/14:
Petrel has applied for a 12 month extension to the seismic first phase of our Frontier Exploration Licence on the FEL 3/14, on which Petrel will operate 100%. If the extension is granted Petrel will have an opportunity to seek drilling partners.
Licensing Option (LO) 16/24:
Petrel has proposed a work programme for the conversion of our recently expired Licensing Option 16/24 into a Frontier Exploration Licence - but Petrel is not yet ready to commit to drilling a well until this acreage has been farmed down.
Licensing Option 16/24 includes 664km2 bordering the Connemara oil-field discovered by BP in 1983. Though sufficient oil did not flow to be commercial, the proximity to mobile oil enhances our acreage.
Our LO 16/24 work confirmed that this acreage has good potential. Our technical staff hope to upgrade it sufficiently to tempt someone in to carry out a seismic survey in the initial 3-year period of a FEL - an easier task than getting a company to give a well commitment.
Licensing Option (LO) 16/25:
Petrel did not opt to continue its smaller Licensing Option 16/25, as targets identified were sub-economic at the then prevailing oil price.
Meanwhile the
Petrel participated in two of these recent major 3D seismic acquisition and processing programmes, covering FEL 3/14 and FEL 11/18. Extensive processing has been completed to a high standard.
Ghanaian Tano 2A Petroleum Agreement
The Company announced on
After a period of slow progress, Ghana's current NPP Government has galvanised the licensing effort. The administration is pro-development, and actively reviewing historic Petroleum Agreements, with stated focus on early exploration, discoveries and output. During 2018, the
There is a mutual desire to complete the ratification process. Our strong preference is to honour as far as possible the terms of the existing signed Petroleum Agreement, adjusting the revised co-ordinates if necessary.
Buy back and cancellation of shares
During the period, the Company reached agreement to buy back 16,747,368 shares for a nominal sum (subject to shareholder approval, which was secured at the Annual General Meeting in
Iraq's difficult re-birth:
Petrel is re-establishing its Baghdad operations.
As we approach the end of 2018, Iraq is fitfully emerging from conflict, and again open for responsible business. Baghdad has re-established its authority, by defeating Da'ech insurgents and recovering Kirkuk.
Pro-business parties won the 2018 elections. While it proved difficult to form a National Government in 2018, which contributed to turbulent protests in southern Iraq during 2018, prospects are now more encouraging than at any time since 2010.
Iraq has endured an almost continuous period of conflicts and/or sanctions since 1980, from which it is only now emerging. Much trauma has been inflicted, as shown by the difficulties forming a government in 2018 and the protests in southern Iraq - a region generally supportive of Baghdad governments since 2005.
Yet, despite 2018 difficulties, we believe Iraq is finally turning a corner: pro-business parties open to international investment polled well in the
So far, the impact of this unrest on oil production from the southern fields has been limited, with
The Western Desert, where Petrel has an interest in exploration ground, is still impossible for international companies to effectively operate.
John Teeling
Chairman
24th
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.
ENDS
For further information please visit http://www.petrelresources.com/ or contact:
Petrel Resources |
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John Teeling, Chairman |
+353 (0) 1 833 2833 |
David Horgan, Director |
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Nominated Adviser and Broker |
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David Hignell / Edward Hutton (Corporate Finance) |
+44 (0) 20 3861 6625 |
Rob Rees / Isabella Pierre (Broking)
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Joint Broker |
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Colin Rowbury
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+44 (0) 20 7399 9400 |
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Public Relations |
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Blytheweigh |
+44 (0) 207 138 3204 |
Simon Woods |
+44 (0) 7466 439 633 |
Julia Tilley |
+44 (0) 7815 068 387 |
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Teneo PSG |
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Luke Hogg |
+353 (0) 1 661 4055 |
Alan Tyrrell |
+353 (0) 1 661 4055 |
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Financial Information (Unaudited) |
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CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME |
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Six Months Ended |
Year Ended |
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unaudited |
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unaudited |
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audited |
CONTINUING OPERATIONS |
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€'000 |
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€'000 |
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€'000 |
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Administrative expenses |
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(104) |
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(207) |
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(297) |
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Impairment of investment |
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0 |
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0 |
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(4,095) |
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OPERATING LOSS |
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(104) |
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(207) |
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(4,392) |
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LOSS BEFORE TAXATION |
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(104) |
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(207) |
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(4,392) |
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Income tax expense |
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- |
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- |
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- |
LOSS FOR THE PERIOD |
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(104) |
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(207) |
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(4,392) |
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Other comprehensive income |
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Exchange differences |
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57 |
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(210) |
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(322) |
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TOTAL COMPREHENSIVE LOSS FOR THE PERIOD |
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(47) |
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(417) |
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(4,714) |
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LOSS PER SHARE - basic and diluted |
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(0.10c) |
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(0.21c) |
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(4.40c) |
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CONDENSED CONSOLIDATED BALANCE SHEET |
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unaudited |
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unaudited |
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audited |
ASSETS: |
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€'000 |
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€'000 |
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€'000 |
NON-CURRENT ASSETS |
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Financial assets |
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0 |
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4,211 |
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0 |
Intangible assets |
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2,357 |
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2,151 |
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2,179 |
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2,357 |
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6,362 |
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2,179 |
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CURRENT ASSETS |
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Trade and other receivables |
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39 |
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27 |
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28 |
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Cash and cash equivalents |
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108 |
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407 |
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371 |
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147 |
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434 |
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399 |
TOTAL ASSETS |
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2,504 |
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6,796 |
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2,578 |
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CURRENT LIABILITIES |
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Trade and other payables |
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(558) |
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(506) |
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(585) |
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(558) |
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(506) |
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(585) |
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NET CURRENT ASSETS |
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(411) |
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(72) |
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(186) |
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NET ASSETS |
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1,946 |
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6,290 |
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1,993 |
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EQUITY |
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Share capital |
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1,246 |
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1,246 |
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1,246 |
Capital conversion reserve fund |
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8 |
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8 |
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8 |
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Share premium |
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21,416 |
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21,416 |
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21,416 |
Share based payment reserve |
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27 |
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27 |
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27 |
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Translation reserve |
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456 |
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510 |
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399 |
Retained deficit |
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(21,207) |
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(16,917) |
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(21,103) |
TOTAL EQUITY |
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1,946 |
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6,290 |
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1,993 |
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CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
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Capital |
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Share based |
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Share |
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Share |
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Conversion |
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Payment |
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Translation |
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Retained |
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Total |
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Capital |
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Premium |
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Reserves |
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Reserves |
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Reserves |
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Losses |
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Equity |
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€'000 |
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€'000 |
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€'000 |
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€'000 |
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€'000 |
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€'000 |
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€'000 |
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As at |
1,246 |
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21,416 |
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8 |
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27 |
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720 |
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(16,710) |
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6,707 |
Total comprehensive income |
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- |
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(210) |
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(207) |
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(417) |
As at |
1,246 |
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21,416 |
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8 |
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27 |
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510 |
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(16,917) |
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6,290 |
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Total comprehensive loss |
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- |
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(111) |
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(4,186) |
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(4,297) |
As at |
1,246 |
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21,416 |
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8 |
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27 |
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399 |
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(21,103) |
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1,993 |
Total comprehensive loss |
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- |
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57 |
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(104) |
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(47) |
As at |
1,246 |
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21,416 |
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8 |
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27 |
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456 |
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(21,207) |
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1,946 |
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CONDENSED CONSOLIDATED CASH FLOW |
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Six Months Ended |
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Year Ended |
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unaudited |
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unaudited |
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audited |
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€'000 |
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€'000 |
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€'000 |
CASH FLOW FROM OPERATING ACTIVITIES |
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Loss for the period |
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(104) |
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(207) |
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(4,392) |
Write off of financial asset |
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0 |
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0 |
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4,095 |
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(104) |
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(207) |
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(297) |
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Movements in |
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(38) |
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70 |
|
125 |
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CASH USED IN OPERATIONS |
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(142) |
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(137) |
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(172) |
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NET CASH USED IN OPERATING ACTIVITIES |
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(142) |
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(137) |
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(172) |
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INVESTING ACTIVITIES |
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Payments for exploration and evaluation assets |
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(120) |
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(158) |
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(259) |
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Funds from disposal of financial asset |
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0 |
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0 |
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116 |
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NET CASH USED IN INVESTING ACTIVITIES |
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(120) |
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(158) |
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(143) |
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NET DECREASE IN CASH AND CASH EQUIVALENTS |
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(262) |
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(295) |
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(315) |
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Cash and cash equivalents at beginning of the period |
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371 |
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745 |
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745 |
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Effect of exchange rate changes on cash held in foreign currencies |
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(1) |
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(43) |
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(59) |
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CASH AND CASH EQUIVALENT AT THE END OF THE PERIOD |
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|
108 |
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407 |
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371 |
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Notes:
1. INFORMATION
The financial information for the six months ended
The interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the
The interim financial statements do not include all of the information required for full annual financial statements and should be read in conjunction with the audited consolidated financial statements of the Group for the year ended
The interim financial statements have not been audited or reviewed by the auditors of the Group pursuant to the Auditing Practices board guidance on Review of Interim Financial Information.
2. No dividend is proposed in respect of the period.
3. LOSS PER SHARE
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€ |
€ |
€ |
Loss per share - Basic and Diluted |
(0.10c) |
(0.21c) |
(4.40c) |
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Basic and diluted loss per share |
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The earnings and weighted average number of ordinary shares used in the calculation of basic loss per share are as follows:
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€'000 |
€'000 |
€'000 |
Loss for the period attributable to equity holders |
(104) |
(207) |
(4,392) |
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Weighted average number of ordinary shares for the purpose of basic earnings per share |
99,681,992 |
99,681,992 |
99,681,992 |
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Basic and diluted loss per share are the same as the effect of the outstanding share options is anti-dilutive.
4. FINANCIAL ASSET
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€'000 |
€'000 |
€'000 |
Opening balance |
- |
4,211 |
4,211 |
Disposal |
- |
- |
(116) |
Impairment |
- |
- |
(4,095) |
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________ |
________ |
________ |
Closing balance |
- |
4,211 |
- |
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The Company's investment in financial assets, through its wholly owned subsidiary
The consideration for the acquisition included the issue of 18,947,368 shares in Petrel. The Initial Consideration Shares were agreed to be locked-in until the date of spudding the first conventional oil well in respect of Amira's interest in the Wasit province but that, if the Spudding Date had not occurred by
During
The Spudding Date had not occurred. Accordingly, the directors decided to write off the investment in
5. INTANGIBLE ASSETS
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Exploration and evaluation assets: |
€'000 |
€'000 |
€'000 |
Opening balance |
2,179 |
2,138 |
2,138 |
Additions |
120 |
180 |
304 |
Exchange translation adjustment |
58 |
(167) |
(263) |
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________ |
________ |
________ |
Closing balance |
2,357 |
2,151 |
2,179 |
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Exploration and evaluation assets at
Relating to the remaining exploration and evaluation assets at the financial year end, the directors believe there were no facts or circumstances indicating that the carrying value of the intangible assets may exceed their recoverable amount and thus no impairment review was deemed necessary by the directors. The realisation of these intangible assets is dependent on the successful discovery and development of economic reserves and is subject to a number of significant potential risks, as set out below:
· Licence obligations;
· Funding requirements;
· Political and legal risks, including title to licence, profit sharing and taxation;
· Exchange rate risk;
· Financial risk management;
· Geological and development risks;
Directors' remuneration of
Regional Analysis |
€'000 |
€'000 |
€'000 |
|
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Ghana |
866 |
887 |
843 |
Ireland |
1,491 |
1,264 |
1,335 |
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_______ |
_______ |
_______ |
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2,357 |
2,151 |
2,179 |
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6. SHARE CAPITAL
|
2018 |
2017 |
|
€'000 |
€'000 |
Authorised: |
|
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200,000,000 ordinary shares of |
2,500 |
2,500 |
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Allotted, called-up and fully paid: |
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Number |
|
Premium |
|
|
€'000 |
€'000 |
At |
99,681,992 |
1,246 |
21,416 |
Issued during the period |
- |
- |
- |
|
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|
|
At |
99,681,992 |
1,246 |
21,416 |
Issued during the period |
- |
- |
- |
|
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|
|
At |
99,681,992 |
1,246 |
21,416 |
|
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7. POST BALANCE SHEET EVENTS
Pursuant to resolutions passed at the Annual General Meeting on 25th
(i) the contract between
(ii) the contract between
The aggregate 16,747,368 Ordinary Shares were immediately cancelled upon their repurchase by the Company.
Consideration
The purchase consideration of
8. The Interim Report for the six months to 30th
9. The Interim Report will be available on the Company's website at www.petrelresources.com.
This information is provided by RNS, the news service of the
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