REG - Challenger Energy - Interim Results for the 6 months ended 30/06/2022
30/09/2022 07:16
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RNS Number : 2518B Challenger Energy Group PLC 30 September 2022
30 September 2022
Challenger Energy Group PLC
("Challenger Energy" or the "Company")
Interim Results for the six months ended 30 June 2022
Challenger Energy (AIM: CEG), the Caribbean and Atlantic-margin focused oil
and gas company, with oil production, appraisal, development and exploration
assets across the region, announces its Interim Results for six months to 30
June 2022.
The Interim Results are set out in full below and are also available on the
Company's website https://www.cegplc.com/ (https://www.cegplc.com/) .
For further information, please contact:
Challenger Energy Group PLC Tel: +44 (0) 1624 647 882
Eytan Uliel, Chief Executive Officer
Strand Hanson Limited - Nomad Tel: +44 (0) 20 7409 3494
Rory Murphy / James Spinney / Rob Patrick
Arden Partners plc - Broker Tel: +44 (0) 20 7614 5900
Simon Johnson
CAMARCO Tel: +44 (0) 20 3757 4980
Billy Clegg / James Crothers / Hugo Liddy
Notes to Editors
Challenger Energy is a Caribbean and Atlantic margin focused oil and gas
company, with a range of exploration, appraisal, development and production
assets and licences, located onshore in Trinidad and Tobago, and Suriname, and
offshore in the waters of Uruguay and The Bahamas. In Trinidad and Tobago,
Challenger Energy has five (5) producing fields, two (2) appraisal /
development projects and a prospective exploration portfolio in the South West
Peninsula. In Suriname, Challenger Energy has on onshore appraisal /
development project. Challenger Energy's exploration licences in Uruguay, the
South West Peninsula of Trinidad, and The Bahamas offer high-impact value
exposure within the overall portfolio value.
Challenger Energy is quoted on the AIM market of the London Stock Exchange.
https://www.cegplc.com (https://www.cegplc.com/)
ENDS
Financial Statements
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 JUNE 2022
Six months Six months Year ended
ended 30 June 2022 (Unaudited) ended 30 June 2021 (Unaudited) 31 December 2021
(Audited)
Note $ 000's $ 000's $ 000's
Net petroleum revenue 2,680 2,305 4,360
Cost of sales (2,522) (3,188) (6,121)
Gross profit/(loss) 158 (883) (1,761)
Administrative expenses (4,720) (4,768) (9,098)
Impairment charges - (416) (7,416)
Operating foreign exchange losses (1,378) (283) (17)
Operating loss (5,940) (6,350) (18,292)
Other income 2 8,567 - 256
Finance income 2 1,927 1 7
Finance costs (275) (5,480) (5,630)
Profit/(loss) before taxation 4,279 (11,829) (23,659)
Income tax expense - 8 (38)
Profit/(loss) for the year attributable to equity holders of the parent 4,279 (11,821) (23,697)
company
Other comprehensive income/(expense)
Exchange differences on translation of foreign operations 1,105 (469) (148)
Other comprehensive income/(expense) for the year net of taxation 1,105 (469) (148)
Total comprehensive income/(expense) for the year attributable to equity 5,384 (12,290) (23,845)
holders of the parent company
Earnings/(loss) per share (cents)
Basic and diluted * 0.1 (2.19) (3.6)
* Earnings/loss per share for the six-month period to 30 June 2022 and 30 June
2021 is stated after the effects of the 1 for 10 share consolidation which
took effect on 28 May 2021.
All operations are considered to be continuing (see note 3).
The accompanying accounting policies and notes form an integral part of these
financial statements.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
FOR THE SIX MONTHS ENDED 30 JUNE 2022
At At At
30 June 2022 30 June 2021 31 December 2021
(Unaudited) (Unaudited) (Audited)
Note $ 000's $ 000's $ 000's
Assets
Non-current assets
Intangible exploration and evaluation assets 4 94,389 96,020 94,405
Goodwill 4 4,610 4,610 4,610
Tangible assets 5 21,874 26,152 22,748
Right of use assets 6 6 40 14
Investment in associate - 47 -
Escrow and abandonment funds 1,601 1,344 1,564
Deferred tax asset 6,998 8,065 6,929
Total non-current assets 129,478 136,278 130,270
Current assets
Trade and other receivables 5,428 4,518 4,274
Inventories 270 177 259
Restricted cash 434 946 560
Cash and cash equivalents 5,308 6,957 1,555
Total current assets 11,440 12,598 6,648
Total assets 140,918 148,876 136,918
Liabilities
Current liabilities
Trade and other payables 7 (11,985) (22,792) (23,537)
Lease liabilities (27) (65) (36)
Borrowings (77) (286) (643)
Total current liabilities (12,089) (23,143) (24,216)
Non-current liabilities
Borrowings (147) (890) (187)
Provisions (6,164) (6,283) (6,294)
Deferred tax liability (7,009) (8,065) (6,941)
Total non-current liabilities (13,320) (15,238) (13,422)
Total liabilities (25,409) (38,381) (37,638)
Net assets 115,509 110,495 99,280
Shareholders' equity
Called-up share capital 8 2,540 218 218
Share premium reserve 8 180,272 171,411 171,734
Share based payments reserve 5,411 5,295 5,312
Retained deficit (97,102) (89,505) (101,381)
Foreign exchange reserve 1,104 (322) (1)
Convertible debt option reserve - 114 114
Other reserves 23,284 23,284 23,284
Total equity attributable to equity holders of the parent company 115,509 110,495 99,280
The accompanying accounting policies and notes form an integral part of these
financial statements.
These Interim Financial Statements were approved and authorised for issue by
the Board of Directors on 29 September 2022 and signed on its behalf by:
Eytan Uliel Simon Potter
Director Director
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 30 JUNE 2022
Six months Six months Year ended
ended 30 June 2022 (Unaudited) ended 30 June 2021 (Unaudited) 31 December 2021
(Audited)
$ 000's $ 000's $ 000's
Cash flows from operating activities
Profit/(loss) before taxation 4,279 (11,829) (23,659)
(Increase)/decrease in trade and other receivables (539) (388) 772
(Decrease) in trade and other payables (1,188) (4,801) (5,105)
(Increase) in inventories (11) (5) (87)
Impairment of tangible and intangible assets - 416 7,416
Depreciation of property, plant and equipment 1,077 1,690 2,944
Depreciation of right of use asset 9 57 86
Loss on disposal of investment in associate - - 47
Loss on disposal of property, plant and equipment 10 - 11
Amortisation 16 150 263
Share settled payments 1,113 638 644
Other income (8,567) - (256)
Finance income (1,927) (1) (7)
Finance costs 275 5,480 5,630
Share based payments 99 67 84
Income tax received/(paid) - 9 (99)
Foreign exchange loss on operating activities 1,378 283 17
Net cash outflow from operating activities (3,976) (8,234) (11,299)
Cash flows from investing activities
Purchase of property, plant and equipment (212) (2,140) (5,385)
Proceeds from sale of property, plant and equipment 5 - 36
Payments for exploration and evaluation assets - (13,595) (13,745)
Decrease in restricted cash 125 1 386
Other income received - - 256
Interest received - 1 7
Net cash outflow from investing activities (82) (15,733) (18,445)
Cash flows from financing activities
Issue of ordinary share capital 8,508 14,532 14,456
Share issue costs - (410) (19)
Principal elements of lease payments (9) (40) (86)
Interest payable on lease liabilities - (5) (7)
Finance costs (265) (2,427) (2,575)
Repayment of borrowings (144) (248) (648)
Proceeds of borrowings - 2,259 2,259
Net cash inflow from financing activities 8,090 13,661 13,380
Net increase in cash and cash equivalents 4,032 (10,306) (16,364)
Effects of exchange rate changes on cash and cash equivalents (279) (599) 57
Cash and cash equivalents at beginning of period 1,555 17,862 17,862
Cash and cash equivalents at end of period 5,308 6,957 1,555
The accompanying accounting policies and notes form an integral part of these
financial statements.
STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 JUNE 2022
Called up share capital Share premium reserve Share based payments reserve Retained deficit Foreign exchange reserve Convertible debt option reserve Other reserves Total Equity
$ 000's $ 000's $ 000's $ 000's $ 000's $ 000's $ 000's $ 000's
Group
At 1 January 2022 218 171,734 5,312 (101,381) (1) 114 23,284 99,280
Loss for the period - - - 4,279 - - - 4,279
Currency translation differences - - - - 1,105 - - 1,105
Total comprehensive expense - - - 4,279 1,105 - - 5,384
Issue of ordinary shares 2,322 8,538 - - - - - 10,860
Realisation of conversion feature - - - - - (114) - (114)
Share based payments - - 99 - - - - 99
Total contributions by and distributions to owners of the Company 2,322 8,538 99 - (114) - 10,845
-
Balance at 30 June 2022 2,540 180,272 5,411 (97,102) 1,104 - 23,284 115,509
Called up share capital Share premium reserve Share based payments reserve Retained deficit Foreign exchange reserve Convertible debt option reserve Other reserves Total Equity
$ 000's $ 000's $ 000's $ 000's $ 000's $ 000's $ 000's $ 000's
Group
At 1 January 2021 123 152,717 5,228 (77,684) 147 396 23,284 104,211
Loss for the period - - - (11,821) - - - (11,821)
Currency translation differences - - - - (469) - - (469)
Total comprehensive expense - - - (11,821) (469) - - (12,290)
Issue of ordinary shares 95 18,694 - - - - - 18,789
Recognition of conversion feature - - - - - 505 - 505
Realisation of conversion feature - - - - - (787) - (787)
Share based payments - - 67 - - - - 67
Total contributions by and distributions to owners of the Company 95 18,694 67 - (282) - 18,576
-
Balance at 30 June 2021 218 171,411 5,295 (89,505) (322) 114 23,284 110,495
STATEMENT OF CHANGES IN EQUITY (CONTINUED)
FOR THE SIX MONTHS ENDED 30 JUNE 2022
Called up share capital Share premium reserve Share based payments reserve Retained deficit Foreign exchange reserve Convertible debt option reserve Other reserves Total Equity
$ 000's $ 000's $ 000's $ 000's $ 000's $ 000's $ 000's $ 000's
Group
As at 31 December 2019 61 96,157 4,868 (63,692) - - 23,284 60,678
Loss for the year - - - (13,992) - - - (13,992)
Currency translation differences - - - - 147 - - 147
Total comprehensive expense - - - (13,992) 147 - - (13,845)
Share capital issued 62 56,560 - - - - - 56,622
Recognition of conversion feature - - - - - 396 - 396
Share based payments - - 360 - - - - 360
Total contributions by and distributions to owners of the Company 62 56,560 360 - - 396 - 57,378
As at 31 December 2020 123 152,717 5,228 (77,684) 147 396 23,284 104,211
Loss for the year - - - (23,697) - - - (23,697)
Currency translation differences - - - - (148) - - (148)
Total comprehensive expense - - - (23,697) (148) - - (23,845)
Share capital issued 95 19,017 - - - - - 19,112
Recognition of conversion feature - - - - - 505 - 505
Realisation of conversion feature - - - - - (787) - (787)
Share based payments - - 84 - - - - 84
Total contributions by and distributions to owners of the Company 95 19,017 84 - - (282) - 18,914
As at 31 December 2021 218 171,734 5,312 (101,381) (1) 114 23,284 99,280
NOTES TO THE FINANCIAL STATEMENTS FOR THE INTERIM PERIOD ENDED 20 JUNE 2022
1 Basis of preparation
The financial statements have been prepared on the historical cost basis,
except for the measurement of certain assets and financial instruments at fair
value as described in the accounting policies below.
The financial statements have been prepared on a going concern basis, refer to
the Going Concern section below for more details.
The financial statements are presented in United States dollars ($) and all
values are rounded to the nearest thousand dollars ($'000) unless otherwise
stated.
Basis of consolidation
The financial statements incorporate the results of the Company and its
subsidiaries (the "Group") using the acquisition method. Control is achieved
where the Company is exposed to, or has rights to, variable returns from its
involvement with the entity and has the ability to affect those returns
through its power over the entity.
Inter-company transactions and balances between Group companies are eliminated
in full.
Where necessary, adjustments are made to the financial statements of
subsidiaries to bring the accounting policies used in line with those used by
the Group.
The investment in associate (an entity over which the Group had significant
influence) had been recorded at cost and had not been adjusted to reflect the
Group's 25% share of the net profits/losses and assets/liabilities of the
associate from the date of acquisition to the balance sheet date as it was
deemed immaterial. Pursuant to commercial negotiations in relation to the
associate during 2021, the Group relinquished its interest in the associate
for nil consideration and does not hold any further interest in this associate
at 30 June 2022 and at 31 December 2021.
Going Concern
These financial statements have been prepared by the Directors on a going
concern basis, which assumes that the Group and Company will continue in
operation for the foreseeable future.
At 30 June 2022, the Group and Company had $5.3 million and $4.2 million in
unrestricted cash funding.
During the reporting period, the Group and Company completed a comprehensive
restructuring and recapitalisation exercise which resulted in:
i) the Group and Company raising approximately £7.3 million
(or approximately $10 million) (before expenses) via the issue of new shares,
to fund certain payments to creditors as part of the agreed discounted payment
plan, as well as to fund a work programme for 2022;
ii) a substantial reduction in balance sheet payables, debts and
potential liability exposures, that would have reasonably required settlement
in cash, from approximately $23.5 million as of 31 December 2021 to
approximately $2.5 million, being the estimated liabilities amount that would
be required for settlement in cash by the Group in the foreseeable future. The
substantial majority of liability settlements took place during the reporting
period; and
iii) the Company reducing its net current liability position from
approximately $10.1 million at 31 December 2021 to a net current asset
position of approximately $4.1 million at 30 June 2022 as a result of the
settlements made during the reporting period.
Following the restructuring and recapitalisation, the Directors have prepared
a cash flow forecast which anticipates the Group and Company being able to
continue in operation for at least the next twelve months from the date of
this report.
The cash flow forecast includes underlying assumptions and estimates,
including oil price, sustained production from the Group's producing fields in
Trinidad and Tobago along with certain incremental production from the
intended work programme, reliability of reserves estimates and renewal of
licences upon expiry.
In addition, the projections assume offsetting of certain tax liabilities and
deferral of certain historical liabilities in Trinidad and Tobago that the
Directors believe are either not likely to require settlement in cash or are
capable of being deferred and settled on long-dated payment terms so as to not
require material amounts of cash during the forecast period.
Certain of these items are outside of the Group and Company's control and
unfavourable actual outcomes may materially and adversely affect the Group's
cash resources and cast significant doubt on the Group and the Company's
ability to continue as a going concern. In such an event, the Group and the
Company may be required to implement certain other measures including, but not
limited to,
i) raising additional third-party capital in form of equity, debt
or other instruments of a similar nature, and / or
ii) undertake cost reduction, and / or
iii) sell certain assets of the Group,
and a successful outcome of such measures cannot be guaranteed.
These financial statements do not include the adjustments that would result if
the Group or the Company were unable to continue as a going concern.
NOTES TO THE FINANCIAL STATEMENTS FOR THE INTERIM PERIOD ENDED 30 JUNE 2022
(CONTINUED)
2 Other income and Finance income
Other income and Finance income predominantly comprise haircuts secured from
the Group's historical creditors and a secured financier, as part of
negotiated settlements agreed pursuant to the Group's restructuring and
recapitalisation exercise.
3 Turnover and segmental analysis
Management has determined the operating segments based on the reports reviewed
by the Board of Directors that are used to make strategic decisions. The Board
has determined there is a single operating segment: oil and gas exploration,
development and production. However, there are three geographical segments:
Trinidad & Tobago & Suriname (operating), The Bahamas (operating) and
The Isle of Man, UK, Uruguay, Spain, Saint Lucia, Cyprus, Netherlands &
USA (all non-operating).
The segment including Trinidad & Tobago has been reported as the Group's
direct oil and gas producing and revenue generating operating segment. The
Bahamas segment includes the Bahamian exploration licences on which drilling
activities were conducted in 2020 and 2021. The non-operating segment
including the Isle of Man (the Group's parent), which provides management
service to the Group and entities in Uruguay, Saint Lucia, Cyprus, Spain, the
Netherlands, and the U.S.A. all of which are non-operating in that they either
hold investments, or are dormant, or in the case of Uruguay had not yet
commenced operations as of the year-end. Their results are consolidated and
reported on together as a single segment.
Six months to 30 June 2022 Operating Operating Total
Non-Operating
Entities (*)
Trinidad & Suriname Bahamas
$'000 $'000 $'000 $'000
Operating profit/(loss) by geographical area
Net petroleum revenue (**) 2,680 - - 2,680
Operating profit/(loss) (1,316) (127) (4,497) (5,940)
Other income 1,937 - 6,630 8,567
Finance (charges) (86) - (189) (275)
Finance income 1 - 1,926 1,927
Profit/(loss) before taxation 536 (127) 3,870 4,279
Other information
Depreciation, amortisation and impairment 1,079 5 18 1,102
Capital additions 203 - 8 211
Segment assets
Tangible and intangible assets 22,196 93,971 4,712 120,879
Deferred tax asset 6,998 - - 6,998
Abandonment fund 1,601 - - 1,601
Trade and other receivables 3,860 516 1,052 5,428
Inventories 270 - - 270
Restricted cash 380 - 54 434
Cash 986 4 4,318 5,308
Consolidated total assets 36,291 94,491 10,136 140,918
Segment liabilities
Trade and other payables (9,704) (1,049) (1,232) (11,985)
Borrowings (224) - - (224)
Deferred tax liability (7,009) - - (7,009)
Lease liabilities - (21) (6) (27)
Provisions (3,825) - (2,339) (6,164)
Consolidated total liabilities (20,762) (1,070) (3,577) (25,409)
NOTES TO THE FINANCIAL STATEMENTS FOR THE INTERIM PERIOD ENDED 30 JUNE 2022
(CONTINUED)
3 Turnover and segmental analysis (continued)
Six months to 30 June 2021 Operating Operating Total
Non-Operating
Entities (*)
Trinidad & Suriname Bahamas
$'000 $'000 $'000 $'000
Operating profit/(loss) by geographical area
Net petroleum revenue (**) 2,305 - - 2,305
Operating profit/(loss) (2,110) (1,359) (2,881) (6,350)
Other income - - - -
Finance (charges) (119) (8) (5,353) (5,480)
Finance income 1 - - 1
Loss before taxation (2,228) (1,367) (8,234) (11,829)
Other information
Depreciation, amortisation and impairment 1,817 459 37 2,313
Capital additions 2,136 21,338 3 23,477
Segment assets
Tangible and intangible assets 28,215 93,880 4,727 126,822
Investment in associate 47 - - 47
Deferred tax asset 8,065 - - 8,065
Abandonment fund 1,344 - - 1,344
Trade and other receivables 3,377 590 551 4,518
Inventories 177 - - 177
Restricted cash 888 - 58 946
Cash 678 4 6,275 6,957
Consolidated total assets 42,791 94,474 11,611 148,876
Segment liabilities
Trade and other payables (8,714) (931) (13,147) (22,792)
Borrowings (768) - (408) (1,176)
Deferred tax liability (8,065) - - (8,065)
Lease liabilities (20) (40) (5) (65)
Provisions (3,617) - (2,666) (6,283)
Consolidated total liabilities (21,184) (971) (16,226) (38,381)
(*) Intercompany balances and transactions between Group entities have been
eliminated.
(**) Sales revenues were derived from a single customer within each of these
operating countries.
NOTES TO THE FINANCIAL STATEMENTS FOR THE INTERIM PERIOD ENDED 30 JUNE 2022
(CONTINUED)
4 Intangible assets - Group
Goodwill Exploration & evaluation assets
$ 000's $ 000's
Cost
As at 1 January 2021 7,045 75,372
Additions - 21,489
Foreign exchange difference on translation - (29)
As at 31 December 2021 7,045 96,832
Foreign exchange difference on translation - (16)
As at 30 June 2022 7,045 96,816
Accumulated amortisation and impairment
As at 1 January 2021 2,435 113
Amortisation - 263
Impairment - 2,069
Foreign exchange difference on translation - (18)
As at 31 December 2021 2,435 2,427
Amortisation - 16
Foreign exchange difference on translation - (16)
As at 30 June 2022 2,435 2,427
Net book value
As at 30 June 2022 4,610 94,389
As at 31 December 2021 4,610 94,405
As at 31 December 2020 4,610 75,259
NOTES TO THE FINANCIAL STATEMENTS FOR THE INTERIM PERIOD ENDED 30 JUNE 2022
(CONTINUED)
5 Tangible assets
Oil and gas assets Property, plant and equipment (*) Decommissioning costs Total
$ 000's $ 000's $ 000's $ 000's
Cost or Valuation
As at 1 January 2021 23,398 2,258 1,995 27,651
Additions 5,065 79 241 5,385
Disposals - (117) - (117)
Foreign exchange difference on translation (160) (207) (11) (378)
As at 31 December 2021 28,303 2,013 2,225 32,541
Additions 33 178 - 211
Disposals - (76) - (76)
Foreign exchange difference on translation 19 (195) 1 (175)
As at 30 June 2022 28,355 1,920 2,226 32,501
Accumulated depreciation and Impairment
At 1 January 2021 1,115 616 137 1,868
Depreciation 2,330 346 268 2,944
Disposals - (83) - (83)
Impairment 3,933 68 1,346 5,347
Foreign exchange difference on translation (84) (196) (3) (283)
At 31 December 2021 7,294 751 1,748 9,793
Depreciation 859 187 31 1,077
Disposals - (61) - (61)
Foreign exchange difference on translation 10 (193) 1 (182)
As at 30 June 2022 8,163 684 1,780 10,627
Net book value
As at 30 June 2022 20,192 1,236 446 21,874
As at 31 December 2021 21,009 1,262 477 22,748
As at 31 December 2020 22,283 1,642 1,858 25,783
(*) Property, plant and equipment includes leasehold improvements.
NOTES TO THE FINANCIAL STATEMENTS FOR THE INTERIM PERIOD ENDED 30 JUNE 2022
(CONTINUED)
6 Right of use assets
Group leased properties Group motor vehicles Total Group
$ 000's $ 000's $ 000's
Cost
As at 1 January 2021 468 62 530
Additions 17 - 17
Disposals - (30) (30)
Foreign exchange difference on translation (1) - (1)
As at 31 December 2021 484 32 516
Additions - - -
Foreign exchange difference on translation 1 - 1
As at 30 June 2022 485 32 517
Accumulated depreciation
As at 1 January 2021 398 35 433
Depreciation 72 14 86
Disposals - (17) (17)
Foreign exchange difference on translation - - -
As at 31 December 2021 470 32 502
Depreciation 9 - 9
Foreign exchange difference on translation - - -
As at 30 June 2022 479 32 511
Net book value
As at 30 June 2022 6 - 6
As at 31 December 2021 14 - 14
As at 31 December 2020 70 27 97
7 Trade and other payables
Trade and other payables at 30 June 2022 amount to approximately $12.0 million
reflecting effects of the restructuring exercise that the Group commenced in
December 2021.
Trade and other payables include dues, amounting to approximately $2.5 million
in aggregate, that are considered to be of a routine working capital nature,
and that are being settled in the ordinary course of business and / or under
certain agreed payment plans.
The remainder of trade and other payables are not expected to be required to
be settled in cash in the foreseeable future, and with a vast majority of
these amounts not expected to require any cash settlement at all, and thus
will ultimately, with the passage of time, will cease to be recorded as
liabilities. A summary of these is set out below:
(i) approximately $4.6 million is in respect of legacy
trade and other payables in Trinidad and Tobago which are not expected to
require any settlement in cash. This includes dues in relation to one of the
Group's dormant licences in Trinidad and Tobago, and which the Group expects
to settle by way of negotiation with the Trinidadian Ministry of Energy and
Energy Industries ("MEEI"). Specifically, the Group has proposed to MEEI a
rebasing of this licence whereby all claimed past dues would be cancelled, the
annual licence fees rebased to an appropriate level, and a new future work
programme agreed. To the extent a suitable arrangement of this nature cannot
be agreed with MEEI, the Company intends to surrender the licence, in which
case the subsidiary company holding the licence will be placed into
administration, and all liabilities claimed in respect of this licence will be
eliminated, without recourse to the Company, as confirmed by a legal opinion;
NOTES TO THE FINANCIAL STATEMENTS FOR THE INTERIM PERIOD ENDED 30 JUNE 2022
(CONTINUED)
7 Trade and other payables (continued)
(ii) approximately $3.3 million is in respect of taxes
owed in Trinidad and Tobago that the Group expects to settle by way of offset
against tax refunds due to the Group in Trinidad and Tobago ($2.1 million,
including under 'Trade and other receivables'). The balance amount relates to
a notional estimate of penalties that apply in accordance with the tax laws in
Trinidad and Tobago - as at the date of this report these are notional
estimates only and have not been levied or assessed, and the Group does not
expect that they will be levied or assessed and that ultimately no cash
payment will be required as the Group had claimed the benefit of a tax amnesty
during the 2021 tax amnesty period implemented by the Trinidad and Tobago tax
authorities, with the final resolution of this matter remaining pending; and
(iii) approximately $1.6 million is in respect of various
dues comprising, i) $0.5 million is in respect of accruals in relation to
restructuring and recapitalisation costs, which are expected to be settled in
shares without any cash cost to the Company, ii) $0.5 million is in respect of
potential insurance "top-up" exposure, due to the ultimate cost of the
Perseverance-1 well in The Bahamas exceeding the initial estimated cost -
however, as at the date of this report no demand for this additional payment
has been made and the Group expects that this exposure will not crystalise
given that the well was completed safely and without incident over 18 months
ago, and iii) $0.6 million is in respect of accrued licence fee which the
Group expects to offset against $0.5 million refundable advances (included in
trade and other receivables) resulting in no material incremental cash
exposure to the Group.
It is also noted that, following the completion of the restructuring and
recapitalisation, the Company has no remaining financial debt and the vast
majority of the liability position across the Group as detailed above is at
the level of subsidiary undertakings, without recourse to the Company.
8 Share capital - Group & Company
Called up, allotted, issued and fully paid ordinary shares of 0.0002p each Number of shares Nominal value Share premium
$ 000's $ 000's
At 1 January 2021 4,506,673,349 123 152,717
At 1 January 2021 after capital reorganisation 450,667,335 123 152,717
Shares issued at average price of 1.9p per share 19,687,500 5 5,106
Shares issued at average price of 0.27p per share 13,500,000 4 515
Shares issued at average price of 0.15p per share 14,938,577 4 300
Shares issued at average price of 3.5p per share 196,688,957 55 8,689
Shares issued at average price of 3.5p per share 74,658,600 21 3,665
Shares issued at average price of 0.15p per share 19,111,423 5 391
Shares issued at average price of 0.15p per share 7,270,522 1 351
At 31 December 2021 796,522,914 218 171,734
At 1 January 2022 796,522,914 218 171,734
Shares issued at average price of 0.1p per share 691,401,490 185 739
Shares issued at average price of 0.1p per share 3,480,645,475 919 3,366
Shares issued at average price of 0.1p per share 4,651,629,600 1,218 4,433
At 30 June 2022 9,620,199,479 2,540 180,272
Number of shares Nominal value Share premium
$ 000's $ 000's
At 31 December 2020 450,667,335 123 152,717
At 31 December 2021 796,522,914 218 171,734
At 30 June 2022 9,620,199,479 2,540 180,272
During the period, 8,823 million shares were issued
(2021: 339 million).
At the end of the period, the number of shares in issue comprised 9,620
million ordinary shares (2021: 789 million).
During the period, transaction costs for issued share capital totalled
$748,777 (2021: $754,068), these amounts were allocated to share premium.
The total authorised number of ordinary shares at 30 June 2022 was
50,000,000,000 shares with a par value of 0.02 pence per share (2021:
2,000,000,000 shares of 0.02 pence per share). All issued shares of 0.02
pence are fully paid.
NOTES TO THE FINANCIAL STATEMENTS FOR THE INTERIM PERIOD ENDED 30 JUNE 2022
(CONTINUED)
9 Share based payments reserve
Options and warrants
Share options have been granted to Directors, selected employees and
consultants to the Company.
The Group had no legal or constructive obligation to repurchase or settle any
options in cash. Movements in the number of share options and warrants
outstanding during the year are as follows:
Average exercise price per share No. Options & Warrants
At 1 January 2022 12.81p 96,797,894
Expired 35p (9,375,000)
Cancelled 10.23 (73,803,215)
Granted 0.14p 1,536,559,485
Exercised - -
As at 30 June 2022 0.24p 1,550,179,164
Exercisable at end of period 0.01p 816,559,485
The fair value of the warrants and options granted in the period was estimated
using the Black Scholes model.
10 Events after reporting date
There were no material events which took place following the reporting date
which require disclosure in these Interim Financial Statements except that on
15 July 2022 Mr. Tim Eastmond resigned as the Chief Financial Officer and an
Executive Director of the Company for personal reasons and Mr. Gagan Khurana,
the Group's Chief Commercial Officer assumed the role of acting Chief
Financial Officer in addition to his commercial duties.
11 Other Information
The financial information set out above does not constitute the Group's
statutory accounts for the period ended 31 December 2021 but is derived from
those accounts.
A copy of this interim statement is available on the Company's website:
www.cegplc.com (http://www.cegplc.com)
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