REG - Clontarf Energy PLC - Interim Statement for period ended 30 June 2015 <Origin Href="QuoteRef">CLON.L</Origin>

Clontarf EnergyAnnouncement

22/09/2015 07:00

RNS Number : 7037Z
Clontarf Energy PLC
22 September 2015
 
22nd September 2015

Clontarf Energy plc
("Clontarf" or the "Company")
Interim Statement for the period ended 30 June 2015
Clontarf currently operates in a very hostile market environment. We are fully funded for current activities over the next couple of years. We have made progress on two fronts: in Peru and Ghana.
A significant step forward took place in Peru when Union Oil and Gas, a large private South American agribusiness/energy group, took over the rights and obligations on Block 183. We think this is a particularly prospective block with adjacent consumer gas markets and discoveries in surrounding areas. 
Union was a target partner for Clontarf when we were originally awarded the Block 183 & 188 acreage in 2011. A deal did not happen then because of Union's lack of familiarity with Peruvian conditions at that time. Instead, a local private group took the block hoping to develop a power generation project fuelled by gas from Block 183. The intervening period proved difficult to raise major funds for the project's development, and the private group has in turn now passed the Block to Union, a much larger group. Union is now operating elsewhere in Peru and is working on Block 183. We expect Union to complete the work programme, including the acquisition of seismic data and, if prospects are confirmed, the commencement of a drilling programme. Clontarf has a 3% revenue royalty up to US$5 million each for any two discoveries which are brought into production.
The current position regarding Ghana is that the Ghanaian National Petroleum Commission is actively considering the current re-application by Pan Andean Resources Ltd (60% Clontarf, 30% Petrel, 10% local interests) over circa 1,500 sq km plus of the shallow-to-medium depth part of the prospective Tano Basin. A year ago we withdrew a court case to force the Ghanaian authorities to process our 2010 application. There was a dispute over part of what we believed to be our acreage. Following discussions with the Ghanaian authorities, we agreed new co-ordinates and a speedy ratification process. Little has happened so far. We threatened to recommence court proceedings. Once more a compromise was agreed under which the local company, Pan Andean, agreed, without prejudice, to re-submit a fresh proposal over acreage defined by the revised coordinates. This has been done and that re-application is now being considered.
We are now in the seventh year of a bear market for junior exploration shares on the AIM market. World political and economic turmoil, exacerbated by a collapsed oil price, means the current market is now worse than any time in the past six years. When oil prices are US$50 a barrel or less, the incentive to explore in frontier areas is compromised. Not only that, expensive production will be put on care and maintenance. But, the emerging world economies will, over the coming decades, require vast quantities of oil to fuel cars, homes and industry and we believe that Ghana is well placed to benefit from this future growth.
Clontarf continues to monitor ways to create shareholder value. As explorers, we look at new projects and/or jurisdictions becoming available for exploration.
John Teeling
Chairman
21st September 2015
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 7382 1100
John Howes / Mark Treharne (Broking)
Public Relations
Blytheweigh +44 (0)20 7138 3204
Tim Blythe +44 (0) 7816 924 626
Camilla Horsfall +44 (0) 7871 841 793
PSG Plus
Aoife Ross +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 15

30 June 14

31 Dec 14





unaudited

unaudited

audited





'000

'000

'000
REVENUE




 - 

 - 

 - 
Cost of sales




 - 

 - 

 - 
GROSS PROFIT




 - 

 - 

 - 










Administrative expenses




( 86 )

( 131 )

( 245 )
OPERATING LOSS




( 86 )

( 131 )

( 245 )










Finance revenue




 1 

 1 

 1 
Finance costs




( 1 )

( 29 )

( 30 )
LOSS BEFORE TAXATION




( 86 )

( 159 )

( 274 )










Income Tax




 - 

 - 

 - 










TOTAL COMPREHENSIVE LOSS FOR THE PERIOD



( 86 )

( 159 )

( 274 )










LOSS PER SHARE - basic and diluted




(0.02p) 

(0.08p) 

(0.09p) 






























CONDENSED CONSOLIDATED BALANCE SHEET



30 June 15 

30 June 14 

31 Dec 14 





unaudited 

unaudited 

audited 





'000 

'000 

'000 
ASSETS:









NON-CURRENT ASSETS









Intangible assets




 3,084 

 3,026 

 3,059 





 3,084 

 3,026 

 3,059 










CURRENT ASSETS









Trade and other receivables




 7 

 2 

 10 
Cash and cash equivalents




 323 

 14 

 397 





 330 

 16 

 407 
TOTAL ASSETS




 3,414 

 3,042 

 3,466 










LIABILITIES:









CURRENT LIABILITIES









Trade payables




( 68 )

( 159 )

( 79 )
Other payables




( 756 )

( 1,281 )

( 711 )





( 824 )

( 1,440 )

( 790 )










NON CURRENT LIABILITIES









Loans




 - 

( 598 )

 - 
TOTAL LIABILITIES




( 824 )

( 2,038 )

( 790 )
NET ASSETS




 2,590 

 1,004 

 2,676 










EQUITY









Share capital




 1,136 

 519 

 1,136 
Share premium




 10,493 

 9,324 

 10,493 
Reserves




( 9,039 )

( 8,839 )

( 8,953 )
TOTAL EQUITY




 2,590 

 1,004 

 2,676 










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 2014
 500 

 9,249 

 330 

( 9,010 )

 1,069 
Issue of shares
 19 

 75 

 - 

 - 

 94 
Total comprehensive loss






( 159 )

( 159 )
As at 30 June 2014
 519 

 9,324 

 330 

( 9,169 )

 1,004 










Share options granted
 - 

 - 

 1 

 - 

 1 
Share options expired
 - 

 - 

( 130 )

 130 

 - 
Warrants expired
 - 

 - 

( 6 )

 6 

 - 
Issue of shares
 617 

 1,199 

 - 

 - 

 1,816 
Share issue expenses
 - 

( 30 )

 - 

 - 

( 30 )
Total comprehensive loss




 - 

( 115 )

( 115 )
As at 31 December 2014
 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 






























CONDENSED CONSOLIDATED CASH FLOW



Six Months Ended 

Year Ended 





30 June 15 

30 June 14 

31 Dec 14 





unaudited 

unaudited 

audited 





'000 

'000 

'000 
CASH FLOW FROM OPERATING ACTIVITIES








Loss for the period




( 86 )

( 159 )

( 274 )
Finance costs recognised in loss




 1 

 29 

 30 
Finance revenue recognised in loss



( 1 )

( 1 )

( 1 )
Exchange movements




 2 

( 6 )

( 5 )
Share options granted




 - 

 - 

 1 





( 84 )

( 137 )

( 249 )










Movements in Working Capital




 12 

 144 

 49 
CASH USED IN OPERATIONS




( 72 )

 7 

( 200 )










Finance costs




( 1 )

( 29 )

( 30 )
Finance revenue




 1 

 1 

 1 
NET CASH USED IN OPERATING ACTIVITIES



( 72 )

( 21 )

( 229 )










CASH FLOWS FROM FINANCING ACTIVITIES








Proceeds from issue of shares








 622 
Share issue expenses




 - 

 - 

( 30 )
NET CASH GENERATED BY FINANCING ACTIVITIES


 - 

 - 

 592 










NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS

( 72 )

( 21 )

 363 










Cash and cash equivalents at beginning of the period

 397 

 29 

 29 










Effect of exchange rate changes on cash held



( 2 )

 6 

 5 
CASH AND CASH EQUIVALENT AT THE END OF THE PERIOD

 323 

 14 

 397 










Notes: 
1. INFORMATION
The financial information for the six months ended 30 June 30 2015 and the comparative amounts for the six months ended 30 June 2014 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 2014 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 15

30 June 14

31 Dec 14



Numerator





For basic and diluted EPS 
(86,361)

(159,325)

(274,196)






Denominator
For basic and diluted EPS 
454,225,781

206,861,662

298,858,400






Basic EPS
(0.02p)

(0.08p)

(0.09p)
Diluted EPS
(0.02p)

(0.08p)

(0.09p)






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 15

30 June 14

31 Dec 14





'000

'000

'000
Cost:









At 1 January



8,106

8,011

8,011
Additions 




25

62

95
Closing Balance



8,131

8,073

8,106










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



3,059

2,964

2,964










At period end



3,084

3,026

3,059
Regional Analysis 

30 Jun 15
'000

30 Jun 14
'000

31 Dec 14
'000
Peru

2,474

2,474

2,474
Ghana

610

552

585


3,084

3,026

3,059
On 15 May 2013, the company signed an agreement with 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 Blocks 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. 
On 28 July 2015 the company announced that they had agreed with the Ghanaian authorities that Pan Andean Resources Ltd ("Pan Andean"), the Company's local subsidiary (60% Clontarf, 30% Petrel, 10% Locals), will reapply for an exploration licence over 1,500 plus sq km of acreage in the Tano Basin offshore Ghana.
This agreement follows protracted discussions on how best to implement the terms of a court approved settlement relating to a signed 2010 Petroleum Agreement which had not been approved by the Ghanaian cabinet or parliament. Revised co-ordinates over the area were agreed by the parties concerned in October 2014.
The Ghanaian Ministry of Energy has now invited Pan Andean to submit a fresh application over the agreed co-ordinates. Pan Andean has been given assurances that this fresh application will be expeditiously processed through the approvals process. Following legal advice Pan Andean is proceeding in accordance with these assurances to submit a fresh application.
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 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 15

30 June 14

31 Dec 14





'000

'000

'000










Trade payables


58

134

59
Other accruals


10

25

20




68

159

79
6. OTHER PAYABLES


30 June 15

30 June 14

31 Dec 14





'000

'000

'000










Amounts due to directors


756

1,281

711




756

1,281

711
Other payables relate to remuneration due to directors' accrued but not paid at period end.
 
 On 21 July 2014, the company issued 70,302,632 new ordinary shares at a price of 0.75p per share totalling 527,270 to the directors as part repayment of directors loans and accrued remuneration. 
7. LOANS


30 June 15

30 June 14

31 Dec 14





'000

'000

'000
Loans repayable


-

598

-




-

598

-
During 2013 loans were received by the company's subsidiary Hydrocarbon Exploration Limited, from South American lenders. The loans were for a period of two years and the lenders agreed that they would accept ordinary shares in Clontarf Energy plc in lieu of cash repayment of amounts due. The loans bear interest at 10% per annum.
 On 17 July 2014, the loans were converted into shares and the company issued 79,767,067 new ordinary shares at a price of 0.75p per share to the lenders as full and final settlement. 
8. SHARE CAPITAL
Allotted, called-up and fully paid:






Number

Share Capital

Premium



 

At 1 January 2014
200,184,469

500,461

9,248,336
Issued during the period
7,231,975

18,080

75,936
At 30 June 2014
207,416,444

518,541

9,324,272






Issued during the period
246,809,337

617,023

1,198,332
Share issue expenses
-

-

(29,345)
At 31 December 2014
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
Movements in share capital
On 14 January 2014 a total of 7,231,975 shares were issued at a price of 1.3 pence per share in settlement of outstanding professional fees amounting to 94,016.
On 17 July 2014 a total of 79,767,067 shares were issued at a price of 0.75 pence per share to South American lenders in settlement of the total principal amount and interest outstanding on the loans in the subsidiary company Hydrocarbon Exploration Limited.
On 21 July 2014 a total of 16,200,000 shares were placed at a price of 0.75 pence per share. Proceeds were used to provide additional working capital and fund development costs.
On 21 July 2014 a total of 79,413,699 shares were issued at a price of 0.75 pence per share to directors in settlement of unpaid directors remuneration and loans.
On 28 October 2014 a total of 71,428,571 shares were placed at a price of 0.70 pence per share. Proceeds were used to provide additional working capital and fund development costs.
9. POST BALANCE SHEET EVENTS
On 28 July 2015 the company announced that they had agreed with the Ghanaian authorities that Pan Andean Resources Ltd ("Pan Andean"), the Company's local subsidiary (60% Clontarf, 30% Petrel, 10% Locals), will reapply for an exploration licence over 1,500 plus sq km of acreage in the Tano Basin offshore Ghana.
10. The Interim Report for the six months to June 30th, 2015 was approved by the Directors on 21st September 2015.
11. Copiesof the interim report will be mailed shortly only to those shareholders who have elected to receive it. Otherwise, shareholders will be notified that the Interim Report will be available on the website at www.clontarfenergy.com. Copies of the Interim Report will also be available for collection at the Companies Registered Office at 20-22 Bedford Row, London WC1R 4JS. 

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