REG - Clontarf Energy PLC - Interim Statement for period ended 30 June 2020

Clontarf EnergyAnnouncement

14/09/2020 07:00

RNS Number : 8083Y
  
Clontarf Energy PLC
  
14 September 2020
  
 

14th September 2020
 


Clontarf Energy plc
("Clontarf" or the "Company")
 
Interim Statement for the period ended 30 June 2020
 
Clontarf Energy (AIM: CLON), the oil and gas exploration company focused on Ghana and Bolivia, announces 
its unaudited financial results for the six months ended 30 June 2020:
 
The principal activities during this period were ongoing discussions with the Ghanaian authorities to finalise the ratification of our signed Petroleum Agreement on Tano 2A Block, and negotiating a lithium evaporates exploration and development agreement with the Bolivian authorities.
 
Ghanaian Tano 2A Petroleum Agreement
 
Ghana currently produces circa 200,000 barrels of oil per day, from the Jubilee, and TEN oil-fields.  This is expected to increase to up to 500,000 barrels of oil per day by 2023, despite the OPEC + partner output cuts during the 2020 Covid-19 ("C-19") oil demand weakness.
 
Clontarf is ready to contribute to this growth, by initiating the Ghana Hydrocarbons Tano 2A work programme, subject to securing the necessary funding in an environment complicated by the recent oil price fall, as soon as the signed Petroleum Agreement is ratified.
 
Despite lower oil prices, the carefully calibrated Ghanaian fiscal terms help make the Tano Basin oil play feasible, given the demonstrated source rock and Cretaceous sands which remain an industry favourite.  Indeed, the industry contraction may assist Clontarf focus strategy on the bigger potential stratigraphic traps.
 
Critical Ghanaian meetings, scheduled for March 2020, to finalise the few outstanding issues, had to be postponed due to C-19.
 
As of September 2020, Ghana now seems to be returning to normal, with surprising good compliance and low infection rates (possibly reflecting a young population - as well as experience preventing Ebola, etc. since 2002).  Accra airport opened in September 2020.  We are hopeful that progress may be made from October 2020 and will update shareholders as and when appropriate.
 
Bolivian Lithium
 
Bolivia has been hard-hit (as was much of South America) by C-19, leading to postponement of planned meetings, elections, and formation of the new government.
 
We have had informal discussions between our local director and officials. We are hopeful of progress after the elections, which were delayed due to C-19, but likely to proceed on 18th October, 2020.
 
The lithium brines processing work has continued, with technical discussions.  We have a steadily deeper understanding of the issues and technical parameters, and hope to incorporate these in the final agreement.
 
Bolivian salt pans contain at least 50% of the world's brine lithium yet it has not been developed. The EU now estimates that global demand by 2050 will be 60 times the current lithium supply.  The Board  believes there is no economic way to supply this without major Bolivian supplies.
 
The end-2019 Bolivian general elections were inconclusive, with disputed results. Peaceful protests forced the departure of the outgoing government and the appointment of an interim administration in 2020, charged with early, impartial elections under international supervision.  These elections were initially scheduled for May 2020, but ultimately postponed, due to the Bolivia C-19 lock-down, until 18th October 2020, with a possible 2nd round, if necessary to achieve greater than 50% voter approval.  
 
Accordingly, the Company's scheduled March 2020 meetings on Bolivian lithium had to be postponed. Likewise the development of possible cooperation with a prospective partner on osmosis technology that may boost pure lithium recovery from brines. As of September 2020, Bolivia, and its neighbours remain shut down for international visits.
 
Immediately before the lock-down, the Company's local director presented Clontarf's updated proposals to the interim minister's staff. Our plans, based on a review of the 40 plus salt pans suggests that we focus on a small number of medium sized pans.
 
There followed a positive response, and subsequent ministerial briefing.
The Bolivians proposed some clarifications to ensure conformity of Clontarf's proposal (which had previously been agreed with the former YLB Chief) with the existing Lithium Law.  It is also likely that the Lithium Law itself will be streamlined, so as to achieve Bolivia's objective of becoming a major lithium exporter.  The interim economics minister has also publicly stressed the role of lithium development in helping Bolivia to emerge from the COVID-19 pandemic.
 
The ambitious worldwide plans for Electric Vehicles (EVs), hybrid vehicles, as well as electrical storage to facilitate development of intermittent renewable power, make rapid growth in lithium demand inevitable.  Attention so far has focused on the DRC's 64% share of Cobalt output, but the gap is similarly daunting for Lithium - which remains dominated by Australian hard-rock (53%), and Chile (21.5%).
 
Bolivia has not yet exported any battery-grade lithium salts - though it has up to 50% of global lithium resources. This offers a generational opportunity to those, like Clontarf Energy, with decades of Bolivian extractive industries' experience.  
 
Funding
Clontarf remains fully funded for ongoing activities.
 
 
 
John Teeling
Chairman
11th September 2020
 
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.
ENDS
 
 
For further information please visit http://clontarfenergy.com or contact:
 




Clontarf Energy
John Teeling, Chairman
David Horgan, Director


+353 (0) 1 833 2833




 


 




Nominated & Financial Adviser
Strand Hanson Limited
Rory Murphy
Ritchie Balmer
Georgia Langoulant


+44 (0) 20 7409 3494




 


 




Broker
Novum Securities Limited
Colin Rowbury


        +44 (0) 207 399 9400




 


 




Public Relations
Blytheweigh
Megan Ray
Rachael Brooks
Madeleine Gordon-Foxwell 


 
+44 (0) 207 138 3206
+44 (0) 207 138 3204
+44 (0) 207 138 3203
+44 (0) 207 138 3208




 


 




Teneo 
Luke Hogg
Alan Tyrrell
Thomas Shortall


 
+353 (0) 1 661 4055
+353 (0) 1 661 4055
+353 (0) 1 661 4055




 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 




Clontarf Energy plc




Financial Information (Unaudited)




 


 


 


 


 


 


 


 


 


 




CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME


 


 


 


 




 


 


 


 


 


Six Months Ended


 


Year Ended




 


 


 


 


 


30 June 20


 


30 June 19


 


31 Dec 19




 


 


 


 


 


unaudited


 


unaudited


 


audited




 


 


 


 


 


£'000


 


£'000


 


£'000




 


 


 


 


 


 


 


 


 


 




CONTINUING OPERATIONS


 


 


 


 


 


 


 


 


 




 


 


 


 


 


 


 


 


 


 




Administrative expenses


 


 


 


 


( 146 )


 


( 123 )


 


( 308 )




 


 


 


 


 


 


 


 


 


 




LOSS BEFORE TAXATION


 


 


 


 


( 146 )


 


( 123 )


 


( 308 )




 


 


 


 


 


 


 


 


 


 




Income Tax


 


 


 


 


                   - 


 


                    - 


 


                    - 




 


 


 


 


 


 


 


 


 


 




TOTAL COMPREHENSIVE LOSS FOR THE PERIOD


 


 


 


( 146 )


 


( 123 )


 


( 308 )




 


 


 


 


 


 


 


 


 


 




LOSS PER SHARE - basic and diluted


 


 


 


 


 (0.02p) 


 


 (0.02p) 


 


 (0.04p) 




 


 


 


 


 


 


 


 


 


 




 


 


 


 


 


 


 


 


 


 




 


 


 


 


 


 


 


 


 


 




CONDENSED CONSOLIDATED BALANCE SHEET


 


 


 


 30 June 20 


 


 30 June 19 


 


 31 Dec 19 




 


 


 


 


 


 unaudited 


 


 unaudited 


 


 audited 




 


 


 


 


 


 £'000 


 


 £'000 


 


 £'000 




ASSETS:


 


 


 


 


 


 


 


 


 




NON-CURRENT ASSETS


 


 


 


 


 


 


 


 


 




Intangible assets


 


 


 


 


             869 


 


              837 


 


               851 




 


 


 


 


 


              869 


 


              837 


 


               851 




 


 


 


 


 


 


 


 


 


 




CURRENT ASSETS


 


 


 


 


 


 


 


 


 




Other receivables


 


 


 


 


                  2 


 


                   9 


 


                   3 




Cash and cash equivalents


 


 


 


 


              190 


 


              425 


 


               301 




 


 


 


 


 


             192 


 


              434 


 


               304 




 


 


 


 


 


 


 


 


 


 




TOTAL ASSETS


 


 


 


 


           1,061 


 


           1,271 


 


            1,155 




 


 


 


 


 


 


 


 


 


 




LIABILITIES:


 


 


 


 


 


 


 


 


 




CURRENT LIABILITIES


 


 


 


 


 


 


 


 


 




Trade payables


 


 


 


 


( 48 )


 


( 71 )


 


( 56 )




Other payables


 


 


 


 


( 1,240 )


 


( 1,116 )


 


( 1,180 )




 


 


 


 


 


( 1,288 )


 


( 1,187 )


 


( 1,236 )




 


 


 


 


 


 


 


 


 


 




TOTAL LIABILITIES


 


 


 


 


( 1,288 )


 


( 1,187 )


 


( 1,236 )




NET (LIABILITES)/ASSETS


 


 


 


 


( 227 )


 


                84 


 


( 81 )




 


 


 


 


 


 


 


 


 


 




 


 


 


 


 


 


 


 


 


 




EQUITY


 


 


 


 


 


 


 


 


 




Share capital


 


 


 


 


           1,792 


 


          1 ,792 


 


            1,792 




Share premium


 


 


 


 


       10,900 


 


         10,900 


 


         10,900 




Share based payment reserve


 


 


 


 


                22 


 


              191 


 


                 22 




Retained earnings - (Deficit)


 


 


 


 


( 12,941 )


 


( 12,800 )


 


( 12,795 )




TOTAL EQUITY


 


 


 


 


( 227 )


 


                83 


 


( 81 )




 


 


 


 


 


 


 


 


 


 




 


 


 


 


 


 


 


 


 


 




 


 


 


 


 


 


 


 


 


 




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 2019


       1,792 


 


     10,900 


 


              191 


 


( 12,677 )


 


               206 




Total comprehensive loss


 


 


 


 


 


 


( 123 )


 


( 123 )




As at 30 June 2019


       1,792 


 


     10,900 


 


              191 


 


( 12,800 )


 


                 83 




 


 


 


 


 


 


 


 


 


 




Share options vested


                - 


 


                - 


 


               21 


 


                    - 


 


                 21 




Share options expired


-


 


                - 


 


( 190 )


 


              190 


 


                    - 




Total comprehensive loss


- 


 


- 


 


                   - 


 


( 185 )


 


( 185 )




As at 31 December 2019


       1,792 


 


     10,900 


 


                22 


 


( 12,795 )


 


( 81 )




 


 


 


 


 


 


 


 


 


 




Total comprehensive loss


                - 


 


                - 


 


                   - 


 


( 146 )


 


( 146 )




As at 30 June 2020


       1,792 


 


     10,900 


 


                22 


 


( 12,941 )


 


( 227 )




 


 


 


 


 


 


 


 


 


 




 


 


 


 


 


 


 


 


 


 




 


 


 


 


 


 


 


 


 


 




CONDENSED CONSOLIDATED CASH FLOW


 


 


 


 Six Months Ended 


 


 Year Ended 




 


 


 


 


 


 30 June 20 


 


 30 June 19 


 


 31 Dec 19 




 


 


 


 


 


 unaudited 


 


 unaudited 


 


 audited 




 


 


 


 


 


 £'000 


 


 £'000 


 


 £'000 




CASH FLOW FROM OPERATING ACTIVITIES


 


 


 


 


 


 


 


 




Loss for the period


 


 


 


 


( 146 )


 


( 123 )


 


( 308 )




Share options vested


 


 


 


 


                   - 


 


                    - 


 


                 21 




Exchange movements


 


 


 


 


( 1 )


 


                   2 


 


                  5 




 


 


 


 


 


( 147 )


 


( 121 )


 


( 282 )




 


 


 


 


 


 


 


 


 


 




Movements in Working Capital


 


 


 


 


                38 


 


                32 


 


                 79 




CASH USED BY OPERATIONS


 


 


 


 


( 109)


 


( 89 )


 


( 203 )




 


 


 


 


 


 


 


 


 


 




NET CASH USED IN OPERATING ACTIVITIES


 


 


 


( 109)


 


( 89 )


 


( 203 )




 


 


 


 


 


 


 


 


 


 




CASH FLOWS FROM INVESTING ACTIVITIES


 


 


 


 


 


 


 


 




Payments for intangible assets


 


 


 


 


( 3 )


 


( 4 )


 


( 3 )




NET CASH USED IN INVESTING ACTIVITIES


 


 


 


( 3 )


 


( 4 )


 


( 3 )




 


 


 


 


 


 


 


 


 


 




NET DECREASE IN CASH AND CASH EQUIVALENTS


 


 


( 112 )


 


( 85 )


 


( 206 )




 


 


 


 


 


 


 


 


 


 




Cash and cash equivalents at beginning of the period


 


              301 


 


              512 


 


               512 




 


 


 


 


 


 


 


 


 


 




Effect of exchange rate changes on cash held


 


 


 


                  1 


 


( 2 )


 


( 5 )




CASH AND CASH EQUIVALENT AT THE END OF THE PERIOD


 


              190 


 


              425 


 


               301 




 


 


 


 


 


 


 


 


 


 




 
 
 
 
 
 
 
 
 
 
Notes: 
 
1.    INFORMATION
 
The financial information for the six months ended 30 June 2020 and the comparative amounts for the six months ended 30 June 2019 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 2019 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 20


 


30 June 19


 


31 Dec 19




 


£'000


 


£'000


 


£'000




Numerator


 


 


 


 


 




For basic and diluted EPS 


(146)


 


(123)


 


(308)




 


 


 


 


 


 




Denominator
For basic and diluted EPS  


 
716,979,964


 


 
716,979,964


 


 
716,979,964




 


 


 


 


 


 




Basic EPS


(0.02p)


 


(0.02p)


 


(0.04p)




Diluted EPS


(0.02p)


 


(0.02p)


 


(0.04p)




 


 


 


 


 


 




 
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 20


 


30 June 19


 


31 Dec 19




 


 


 


 


 


£'000


 


£'000


 


£'000




Cost:


 


 


 


 


 


 


 


 


 




At 1 January


 


 


 


8,561


 


8,528


 


8,528




Additions 


 


 


 


 


18


 


19


 


33




Closing Balance


 


 


 


8,579


 


8,547


 


8,561




 


 


 


 


 


 


 


 


 


 




Impairment:


 


 


 


 


 


 


 


 




At 1 January


 


 


 


7,710


 


7,710


 


7,710




Provision for impairment


 


 


-


 


-


 


-




Closing Balance


 


 


 


7,710


 


7,710


 


7,710




 


 


 


 


 


 


 


 


 


 




Carrying value:


 


 


 


 


 


 


 


 




At 1 January


 


 


 


851


 


818


 


818




 


 


 


 


 


 


 


 


 


 




At period end


 


 


 


869


 


837


 


851




 


 


 


 


 


 


 


 




 


 


 


 


 


 


 


 




 


Regional Analysis                                                                                                          


 


30 Jun 20
£'000


 


30 Jun 19
£'000


 


31 Dec19
£'000




 


Bolivia


 


16


 


16


 


16




 


Ghana


 


853


 


821


 


835




 


 


 


869


 


837


 


851



 
 
 
 
 
 
 
 
 
 
 
 
 
 



 
 
Exploration and evaluation assets relate to expenditure incurred in prospecting and exploration for lithium, oil and gas in Bolivia and Ghana. The directors are aware that by its nature there is an inherent uncertainty in exploration and evaluation assets and therefore inherent uncertainty in relation to the carrying value of capitalised exploration and evaluation assets.  
 
During 2018 the Group resolved the outstanding issues with the Ghana National Petroleum Company (GNPC) regarding a contract for the development of the Tano 2A Block. The Group has signed a Petroleum Agreement in relation to the block and this agreement awaits ratification by the Ghanaian government. 
 
The directors believe that there were no facts or circumstances indicating that the carrying value of intangible assets may exceed their recoverable amount and thus no impairment review was deemed necessary by the directors. The realisation of these intangibles assets is dependent on the successful discovery and development of economic deposit resources and the ability of the Group to raise sufficient finance to develop the projects. It is subject to a number of potential significant risks, as set out below.
 
The Group's activities are subject to a number of significant potential risks including:
 
·           licence obligations;
·           exchange rate risks;
·           uncertainties over development and operational costs;
·           political and legal risks, including arrangements with Governments for licences, profit sharing and taxation;
·           foreign investment risks including increases in taxes, royalties and renegotiation of contracts;
·           title to assets;
·           financial risk management;
·           going concern; 
·           ability to raise finance; and 
·           operational and environmental risks.
 
 
Included in the additions for the period are £15,000 (2019: £30,000) of directors remuneration. The remaining balance pertains to the amounts capitalised to the respective licences held by the entity.
 
 
5.    TRADE PAYABLES




 


 


30 June 20


 


30 June 19


 


31 Dec 19




 


 


 


 


 


£'000


 


£'000


 


£'000




 


 


 


 


 


 


 


 


 


 




Trade payables


 


 


38


 


47


 


38




Other accruals


 


 


10


 


24


 


18




 


 


 


 


48


 


71


 


56




 
 
 
6.    OTHER PAYABLES




 


 


30 June 20


 


30 June 19


 


31 Dec 19




 


 


 


 


 


£'000


 


£'000


 


£'000




 


 


 


 


 


 


 


 


 


 




Amounts due to directors


 


 


1,240


 


1,116


 


1,180




 


 


 


 


1,240


 


1,116


 


1,180




 
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




 


 


 


          £'000


 


£,000




At 1 January 2019


716,979,964


 


1,792


 


10,900




Issued during the period


-


 


-


 


-




At 30 June 2019


716,979,964


 


1,792


 


10,900




 


 


 


 


 


 




Issued during the period


-


 


-


 


-




At 31 December 2019


716,979,964


 


1,792


 


10,900




 


 


 


 


 


 




Issued during the period


-


 


-


 


-




At 30 June 2020


716,979,964


 


1,792


 


10,900




 
 
 
8.    POST BALANCE SHEET EVENTS
 
There were no material post balance sheet events affecting the group or company.
 
 
9.   The Interim Report for the six months to 30 June 2020 was approved by the Directors on 11th September 2020.
 
 
10. The Interim Report will be available on the Company's website at www.clontarfenergy.com.  
 
 
 
 
 
 

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