REG - Sterling Energy PLC - Results for the six months ending 30 June 2014 <Origin Href="QuoteRef">SEY.L</Origin> - Part 2

AfentraAnnouncement

06/09/2014 18:28

- Part 2: For the preceding part double click  ID:nRSR6735Ma 

     
                                               $000         
                                               (unaudited)  
                                                            
 Net book value at 1 January 2013              2,424        
 Amortisation charge for the period            (394)        
 Net book value at 30 June 2013                2,030        
 Amortisation charge for the period            (388)        
 Impairment reversal                           1,152        
 Net book value at 1 January 2014              2,794        
 Amortisation charge for the period            (345)        
 Net book value at 30 June 2014                2,449        
                                                            
 
 
Group net book value at 30 June 2014 comprises the value of rights to future
royalties in respect of the Group's agreements covering licences PSC A and PSC
B and PSC C-10 in Mauritania. The value of these royalty interests is
dependent upon future oil and gas prices and the development and production of
the underlying oil and gas reserves. 
 
An impairment assessment and any subsequent charge are calculated on an
individual royalty interest basis. Future recoverable amounts are estimated by
management based on the present value of future cash flows expected to be
derived from the production of commercial reserves in these licences and are
compared against the carrying value of these assets. 
 
7.         Intangible exploration and evaluation (E&E) assets 
 
                                                                        Total        
                                                                        $000         
                                                                        (unaudited)  
                                                                                     
 Net book value at 1 January 2013                                       10,245       
 Additions during the period                                            975          
 Net book value at 30 June 2013                                         11,220       
 Additions during the period                                            3,217        
 Reimbursement of back costs on farm-out of Ambilobe licence            (1,250)      
 Net book value at 1 January 2014                                       13,187       
 Additions during the period                                            16,277       
 Net book value at 30 June 2014                                         29,464       
                                                                                     
 
 
The amount for intangible exploration and evaluation assets represents
investments in respect of exploration licences. Impairment tests on E&E assets
are conducted on an individual cost pool basis when facts and circumstances
suggest that the carrying amount in the pool may exceed its recoverable
amount. 
 
8.         Property, plant and equipment (PPE) 
 
                                       Oil and Gas assets    Computer and office equipment    Total        
                                       $000                  $000                             $000         
                                       (unaudited)           (unaudited)                      (unaudited)  
                                                                                                           
 Cost                                                                                                      
 At 1 January 2013                     185,802               3,064                            188,866      
 Additions during the period           -                     24                               24           
 At 30 June 2013                       185,802               3,088                            188,890      
 Additions during the period           -                     61                               61           
 Disposals in the year                 -                     (3,006)                          (3,006)      
 At 1 January 2014                     185,802               143                              185,945      
 Additions during the period           -                     37                               37           
 At 30 June 2014                       185,802               180                              185,982      
                                                                                                           
 Accumulated depreciation                                                                                  
 At 1 January 2013                     (181,825)             (2,982)                          (184,807)    
 Charge for the period                 (824)                 (34)                             (858)        
 At 30 June 2013                       (182,649)             (3,016)                          (185,665)    
 Charge for the period                 (814)                 (35)                             (849)        
 Impairment reversal in the period     3,207                 -                                3,207        
 Disposals in the year                 -                     3,006                            3,006        
 At 1 January 2014                     (180,256)             (45)                             (180,301)    
 Charge for the period                 (786)                 (29)                             (815)        
 At 30 June 2014                       (181,042)             (74)                             (181,116)    
                                                                                                           
 Net book value at 30 June 2013        3,153                 72                               3,225        
 Net book value at 31 December 2013    5,546                 98                               5,644        
 Net book value at 30 June 2014        4,760                 106                              4,866        
                                                                                                           
 
 
9.         Cash flow 
 
Cash flows from operating activities: 
 
                                                       Six months to     Six months to     Year ended          
                                                       30th June 2014    30th June 2013    31st December 2013  
                                                       $000              $000              $000                
                                                       (unaudited)       (unaudited)       (audited)           
                                                                                                               
 Operating activities:                                                                                         
 Profit before tax from continuing operations          1,678             1,773             7,309               
 Profit before tax from discontinued operations        -                 -                 1,025               
 Finance income and gains                              (188)             (193)             (892)               
 Finance expense and losses                            463               1,077             1,066               
 Depletion and amortisation                            1,160             1,252             2,488               
 Impairment reversal                                   -                 -                 (4,359)             
 Share-based payment charge                            361               378               1,166               
 Operating cash flow prior to working capital          3,474             4,287             7,803               
 (Increase)/decrease in inventories                    (854)             1,266             247                 
 Decrease/(increase) in trade and other receivables    2,052             (4,589)           (1,725)             
 Decrease in trade and other payables                  (1,424)           (593)             (56)                
 Decrease in provisions                                (63)              -                 -                   
                                                       3,185             371               6,269               
                                                                                                               
 Cash generated from continuing operations             3,185             371               6,822               
 Cash outflow from discontinued operations             -                 -                 (553)               
                                                                                                               
                                                       3,185             371               6,269               
                                                                                                               
 
 
10.          Share capital 
 
                                                                                   As at             As at             As at               
                                                                                   30th June 2014    30th June 2013    31st December 2013  
                                                                                   $000              $000              $000                
                                                                                   (unaudited)       (unaudited)       (audited)           
 Authorised, called up, allotted and fully paid                                                                                            
 220,053,520 (31 December and 30 June 2013: 220,053,520) ordinary shares of 40p    149,014           149,014           149,014             
                                                                                                                                           
 
 
11.          Reserves 
 
Reserves within equity are as follows: 
 
Share capital 
 
Amounts subscribed for share capital at nominal value. 
 
Share premium account 
 
The share premium account represents the amounts received by the Company on
the issue of its shares which were in excess of the nominal value of the
shares. 
 
Currency translation reserve 
 
The foreign currency translation reserve includes movements that relate to the
retranslation of the subsidiaries whose functional currencies are not the
US$. 
 
Retained deficit 
 
Cumulative net gains and losses recognised in the Statement of Comprehensive
Income less any amounts reflected directly in other reserves. 
 
12.          Related party transactions 
 
Details of Directors' remuneration, which comprise key management personnel,
are provided below: 
 
                                 Six months to     Six months to     Year ended          
                                 30th June 2014    30th June 2013    31st December 2013  
                                 $000              $000              $000                
                                 (unaudited)       (unaudited)       (audited)           
                                                                                         
 Short-term employee benefits    484               540               1,371               
 Payments on loss of office      -                 -                 117                 
 Defined contribution pension    21                45                63                  
 Share-based payments            216               268               758                 
                                 720               854               2,309               
                                                                                         
 
 
13.        Going Concern 
 
The Group's business activities, together with the factors likely to affect
its future development, performance and position are set out in the Chairman's
Statement and in the Operational Review. The financial position of the Group
is described in the Financial Review. 
 
The Company has sufficient cash resources for its working capital needs and
its committed capital expenditure programme for at least the next 12 months.
As a consequence, the Directors believe the Company is well placed to manage
its business risks. The Directors have a reasonable expectation that the
Company and the Group have adequate resources to continue in operational
existence for the foreseeable future. Accordingly, they continue to adopt the
going concern basis in preparing the results for the six months ended 30 June
2014. 
 
These results for the six months ended 30 June 2014 are available on the
Company's website: www.sterlingenergyplc.com 
 
This information is provided by RNS
The company news service from the London Stock Exchange