REG - Clontarf Energy PLC - Interim Results <Origin Href="QuoteRef">CLON.L</Origin>

Clontarf EnergyAnnouncement

20/09/2016 10:55

RNS Number : 3185K
Clontarf Energy PLC
20 September 2016
 
20th September 2016

Clontarf Energy plc
("Clontarf" or the "Company")
Interim Statement for the period ended 30 June 2016
Clontarf (AIM: CLON) today announces financial results for the six months ended 30 June 2016.
Clontarf operates in a challenging market environment for explorers though we are making progress in both Ghana
and Peru. 
Ghanaian Tano Acreage:
The Ghanaian Ministry of Energy and the Ghanaian National Petroleum Commission are actively considering the
current re-application by Pan Andean Resources Ltd (60% Clontarf, 30% Petrel, 10% local interests) over a licence
block in the prospective Tano Basin. 
There is a long drawn out process in relation to an agreement reached in 2010 but not implemented. In 2014, we
agreed to withdraw a court case to force the Ghanaian authorities to respect our signed Petroleum Agreement.
There was a dispute over the coordinates of our acreage. Following discussions with the Ghanaian authorities, we
were offered new, and in our opinion improved, co-ordinates. As announced on 19 September 2016, we have
accepted the new acreage in principle. We now move into negotiation of the licence terms and look forward to
providing shareholders with further updates in due course. 
Despite past delays, there seems to be a renewed urgency and flexibility in discussions, though there can be no
guarantee of a positive outcome given the need for all Petroleum Agreements to be ratified by the Ghanaian
Cabinet and Parliament. 
Peruvian Block 183:
Respected agri-business and energy group, Union Oil and Gas Group ("Union"), a large private South American
agribusiness/energy group, now controls and operates Block 183, an area of 3,968km2 in the central/northern
Peruvian jungle. Union has updated the environmental, geological and geophysics work and ensuring that the
licence would remain in good standing. 
Union is now completing the Block 183 work programme, including the acquisition of seismic data. If prospects are
confirmed a drilling programme will follow. Two large prospects have been worked-up, which are on trend with 4
other discoveriesin neighbouring oil and gas blocks operated by Gran Tierra and the Spanish independent CEPSA.
Clontarf has a 3% revenue royalty up to US$5 million on each of any two discoveries which are brought into
production.
There is an adjacent consumer gas market in nearby Tarapoto and surrounding areas. Local gas prices have not
witnessed the scale of gas price falls in North America. 
Union is a leading Latin American E&P company with a diversified portfolio of offshore and onshore acreage in Peru,
Paraguay, Uruguay, Bolivia, Suriname, Belize and Nicaragua. The group has substantial financial and technical
resources.
Future:
This is the eighth year of a bear market for junior exploration shares on the AIM market. Ongoing world political
and economic turmoil, exacerbated by a collapsed oil price, has slashed exploration spending - despite the much
lower seismic and drilling costs which are now available. With much higher yields from both unconventional and
standard reservoirs, and slowing demand growth in developing countries, the incentive to explore in frontier
offshore areas is reduced. 
But while prices will stay lower for longer they will not be depressed forever: many important producing areas are
experiencing political and economic turmoil, from Venezuela to Nigeria. International sanctions remain on Russia
and Iran. Iraq and Saudi Arabia have increased output, but they are now at capacity limits and faced with political
challenges. Lower prices are working, with expensive production in the North Sea being retired early and many new
projects cancelled or deferred. Gas seems the main beneficiary of the decline of coal and nuclear power. 
Clontarf continues to monitor ways to create shareholder value. As explorers, we continue to look at new projects
and at areas that are becoming available for exploration. Following the announcement of a 400,000 (before
expenses) equity fundraising on 20th September 2016, we have adequate funding for current activities.
John Teeling
Chairman
20th September 2016
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.


For further information please visit http://clontarfenergy.comor contact:
Clontarf Energy plc
John Teeling, Chairman +353 (0) 1 833 2833
David Horgan, Director
Nominated Adviser and Broker
Northland Capital Partners Limited
David Hignell / Gerry Beaney (Corporate Finance)  +44 (0)20 3861 6625
John Howes (Broking)
Public Relations
Blytheweigh+44 (0)20 7138 3204
Tim Blythe +44 (0) 7816 924 626
Camilla Horsfall+44 (0) 7871 841 793
Nick Elwes+44 (0) 7831 851 855
Rachael Brooks
Jonathan Garfield
PSG Plus
Colm Heatley +353 (0) 1 661 4055
Alan Tyrrell +353 (0) 1 661 4055

Clontarf Energy plc
Financial Information (Unaudited)










CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME









Six Months Ended

Year Ended





30 June 16

30 June 15

31 Dec 15





unaudited

unaudited

audited





'000

'000

'000










REVENUE




 - 

 - 

 - 
Cost of sales




 - 

 - 

 - 
GROSS PROFIT




 - 

 - 

 - 










Administrative expenses




( 95 )

( 86 )

( 205 )
OPERATING LOSS




( 95 )

( 86 )

( 205 )










Finance revenue




 - 

 1 

 1 
Finance costs




( 1 )

( 1 )

( 1 )
LOSS BEFORE TAXATION




( 96 )

( 86 )

( 205 )










Income Tax




 - 

 - 

 - 










TOTAL COMPREHENSIVE LOSS FOR THE PERIOD



( 96 )

( 86 )

( 205 )










LOSS PER SHARE - basic and diluted




(0.02p) 

(0.02p) 

(0.05p) 






























CONDENSED CONSOLIDATED BALANCE SHEET



30 June 16 

30 June 15 

31 Dec 15 





unaudited 

unaudited 

audited 





'000 

'000 

'000 
ASSETS:









NON-CURRENT ASSETS









Intangible assets




 3,114 

 3,084 

 3,099 





 3,114 

 3,084 

 3,099 










CURRENT ASSETS









Other receivables




 8 

 7 

 5 
Cash and cash equivalents




 177 

 323 

 226 





 185 

 330 

 231 
TOTAL ASSETS




 3,299 

 3,414 

 3,330 










LIABILITIES:









CURRENT LIABILITIES









Trade payables




( 78 )

( 68 )

( 58 )
Other payables




( 846 )

( 756 )

( 801 )
TOTAL LIABILITIES




( 924 )

( 824 )

( 859 )
NET ASSETS




 2,375 

 2,590 

 2,471 










EQUITY









Share capital




 1,136 

 1,136 

 1,136 
Share premium




 10,493 

 10,493 

 10,493 
Share based payment reserve




 191 

 195 

 191 
Retained earnings - (Deficit)




( 9,445 )

( 9,234 )

( 9,349 )
TOTAL EQUITY




 2,375 

 2,590 

 2,471 




















CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY



















Share based 





Share 

Share 

Payment 

Retained 

Total 

Capital 

Premium 

Reserves 

Losses 

Equity 

'000 

'000 

'000 

'000 

'000 










As at 1 January 2015
 1,136 

 10,493 

 195 

( 9,148 )

 2,676 
Total comprehensive loss






( 86 )

( 86 )
As at 30 June 2015
 1,136 

 10,493 

 195 

( 9,234 )

 2,590 










Share options expired
-

-

( 4 )

 4 

 - 
Total comprehensive loss




- 

( 119 )

( 119 )
As at 31 December 2015
 1,136 

 10,493 

 191 

( 9,349 )

 2,471 










Total comprehensive loss
 - 

 - 

 - 

( 96 )

( 96 )
As at 30 June 2016
 1,136 

 10,493 

 191 

( 9,445 )

 2,375 






























CONDENSED CONSOLIDATED CASH FLOW



Six Months Ended 

Year Ended 





30 June 16 

30 June 15 

31 Dec 15 





unaudited 

unaudited 

audited 





'000 

'000 

'000 
CASH FLOW FROM OPERATING ACTIVITIES








Loss for the period




( 96 )

( 86 )

( 205 )
Finance costs recognised in loss




 1 

 1 

 1 
Finance revenue recognised in loss



 - 

( 1 )

( 1 )
Exchange movements




( 1 )

 2 

 1 





( 96 )

( 84 )

( 204 )










Movements in Working Capital




 47 

 12 

 34 
CASH USED IN OPERATIONS




( 49 )

( 72 )

( 170 )










Finance costs




( 1 )

( 1 )

( 1 )
Finance revenue




 - 

 1 

 1 
NET CASH USED IN OPERATING ACTIVITIES



( 50 )

( 72 )

( 170 )










NET DECREASE IN CASH AND CASH EQUIVALENTS


( 50 )

( 72 )

( 170 )










Cash and cash equivalents at beginning of the period

 226 

 397 

 397 










Effect of exchange rate changes on cash held



 1 

( 2 )

( 1 )
CASH AND CASH EQUIVALENT AT THE END OF THE PERIOD

 177 

 323 

 226 










Notes: 
1. INFORMATION
The financial information for the six months ended 30 June 30 2016 and the comparative amounts for the six months ended 30 June 2015 are unaudited. The financial information above does not constitute full statutory accounts within the meaning of section 434 of the Companies Act 2006.
The Interim Financial Report has been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the European Union. The accounting policies and methods of computation used in the preparation of the Interim Financial Report are consistent with those used in the Group 2015 Annual Report, which is available at www.clontarfenergy.com
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
Basic loss per share is computed by dividing the loss after taxation for the year available to ordinary shareholders by the weighted average number of ordinary shares in issue and ranking for dividend during the year. Diluted earnings per share is computed by dividing the loss after taxation for the year by the weighted average number of ordinary shares in issue, adjusted for the effect of all dilutive potential ordinary shares that were outstanding during the year.
The following table sets out the computation for basic and diluted earnings per share (EPS):

Six months Ended

Year Ended

30 June 16

30 June 15

31 Dec 15



Numerator





For basic and diluted EPS 
(96,466)

(86,361)

(204,537)






Denominator
For basic and diluted EPS 
454,225,781

454,225,781

454,225,781






Basic EPS
(0.02p)

(0.02p)

(0.05p)
Diluted EPS
(0.02p)

(0.02p)

(0.05p)






Basic and diluted loss per share are the same as the effect of the outstanding share options is anti-dilutive and is therefore excluded.
4. INTANGIBLE ASSETS
Exploration and evaluation assets:

30 June 16

30 June 15

31Dec 15





'000

'000

'000
Cost:









At 1 January



8,146

8,106

8,106
Additions 




15

25

40
Closing Balance



8,161

8,131

8,146










Impairment:








At 1 January



5,047

5,047

5,047
Provision for impairment


-

-

-
Closing Balance



5,047

5,047

5,047










Carrying value:








At 1 January



3,099

3,059

3,059










At period end



3,114

3,084

3,099














Regional Analysis 

30 Jun 16
'000

30 Jun 15
'000

31 Dec
15
'000
Peru

2,474

2,474

2,474
Ghana

640

610

625


3,114

3,084

3,099
On 15 May 2013, the company signed an agreement with an unrelated third party, Peru Oil and Gas Exploration Limited (POGEL). Under the agreement POGEL, an energy investment company, has undertaken responsibility to put up performance bonds and conduct contractual work on the Exploration and Development Contracts on Peruvian Block 183. Clontarf Energy plc converted its interest in Block 183 to an overriding royalty of 3% on production from any commercial discovery.
On 12 August 2013, Rurelec Plc, an AIM listed energy provider in South America, entered into an agreement with POGEL to purchase gas from Block 183 when and if gas is produced. Clontarf holds a 3% overriding royalty on production from any commercial discovery. The royalty payment is capped at US$5 million per structure and US$10 million in total for the block. 
 In 2014, the Group reached an agreement with the Ghanaian authorities on the specific revised coordinates of the signed petroleum agreement on a licence block in the Tano area of Ghana. Clontarf Energy PLC await ratification of the amended Petroleum Agreement by Cabinet and Parliament.
Exploration and evaluation assets relates to expenditure incurred in prospecting and exploration for oil and gas in Peru and Ghana. The directors are aware that by its nature there is an inherent uncertainty in such development expenditure as to the value of the asset. 
The realisation of these intangible assets is dependent on the discovery and successful development of economic oil and gas reserves which is affected by the uncertainties outlined above and risks outlined below. Should this prove unsuccessful the value included in the balance sheet would be written off to the statement of comprehensive income.
 The group's activities are subject to a number of significant potential risks including:
 - licence obligations
 - requirement for further funding
 - geological and development risks
 - title to assets 
- political risks 
5. TRADE PAYABLES


30 June 16

30 June 15

31 Dec 15





'000

'000

'000










Trade payables


54

58

40
Other accruals


24

10

18




78

68

58
6. OTHER PAYABLES


30 June 16

30 June 15

31 Dec 15





'000

'000

'000










Amounts due to directors


846

756

801




846

756

801
Other payables relate to remuneration due to directors' accrued but not paid at period end.
 
 
7. SHARE CAPITAL
Allotted, called-up and fully paid:






Number

Share Capital

Premium



 

At 1 January 2015
454,225,781

1,135,564

10,493,259
Issued during the period
-

-

-
At 30 June 2015
454,225,781

1,135,564

10,493,259






Issued during the period
-

-

-
At 31 December 2015
454,225,781

1,135,564

10,493,259






Issued during the period
-

-

-
At 30 June 2016
454,225,781

1,135,564

10,493,259
8. POST BALANCE SHEET EVENTS
On 20 September 2016, the Company announced that it had raised 400,000 (before expenses) via the issue of 80,000,000 new ordinary shares at a price of 0.5p per share. 
9. The Interim Report for the six months to 30th June 30 2016 was approved by the Directors on 20th September 2016.
10. The Interim Report will be available on the company's website at www.clontarfenergy.com. 

This information is provided by RNS
The company news service from the London Stock Exchange
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