REG - Geo Exploration Ltd - Half-year Report
31/03/2025 07:15
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RNS Number : 7674C Geo Exploration Limited 31 March 2025
31 March 2025
GEO Exploration Limited
("GEO " or the "Company")
Interim Financial Report - Half Year Ended 31 December 2024
Geo (AIM: GEO) announces its financial results for the half year ended 31
December 2024.
Highlights:
Corporate:
-Corporate name change to Geo Exploration Limited (AIM:GEO) formerly Global
Petroleum Limited.
-Acquisition of an 80% interest in the Juno Project, marking a
transformational period for the Company.
-Leadership restructuring: Omar Ahmad appointed as CEO, Hamza Choudhry as
CFO, and Azib Khan transitioning to Chief Commercial Officer.
-Board changes: Brian Chu joined as Non-Executive Director and Company
Secretary; Andrew Draffin retired, and Cecilia Yu ceased.
Operational:
-Advanced discussions with a potential farmee for the PEL0094 licence
continued and currently continue, with additional talks initiated with other
interested parties to secure the best outcome for shareholders. These
negotiations are part of the Company's ongoing efforts to maximise the value
of its asset in the Walvis Basin.
-Industry activity in the Walvis Basin has intensified, bolstered by
Chevron's farm-in for PEL0082 and Tower Resources' farm-out agreement for
PEL0096. This increasing interest underscores the growing potential of the
region, positioning the Company's PEL0094 licence as a highly attractive
opportunity in Namibia's oil exploration landscape.
-The geological conditions in the Walvis Basin continue to highlight its
commercial viability compared to the Orange Basin. The prospects within
PEL0094 benefit from lower gas risks and shallower reservoirs, which are less
diagenetically altered, enhancing their potential for successful oil
exploration. These factors support the Company's belief in the significant
value of its Namibian assets.
-In August 2024, the Company acquired a 70% stake in a joint venture with
world class geologist Callum Baxter for mineral exploration in Western
Australia, later increasing its interest to 80% in September 2024. Extensive
exploration activities, including aeromagnetic and gravity surveys, have been
undertaken to refine high-potential drill targets.
-The geophysical surveys conducted in H2 2024 revealed promising indicators
of Intrusion-Related Gold Systems (IRGS) deposits, similar to that of Havieron
in the Paterson Province of Western Australia, particularly in the northern
project area. LiDAR data received in January 2025 has further enhanced drill
planning and subsurface modelling.
-Key exploration plans for H2 2025 include electromagnetic and polarisation
surveys, securing permits, and initiating drilling operations. The Company is
well-capitalised to proceed with these H2 2025 plans, following the capital
raise in January 2025.
Financial:
-Losses after tax: USD $543,290 (31 December 2023: USD $3,164)
-Cash and cash equivalents: USD $184,363 (30 June 2024: USD $193,070)
-Successful capital raise with institutional, high net worth individuals and
retail investors totalling £850,000 in the half year to 31 December 2024.
-CEO Omar Ahmad extended his USD $270,000 interest free loan to the Company
to September 2025.
Strategy and Outlook:
-The Company will continue with advanced discussions with the potential
farmee for the PEL0094 licence and other interested parties to secure the best
outcome for shareholders.
-Geo will also continue to expedite the work programme for Juno Project.
The Company confirms that a full copy of its latest Financial Report - Half
Year Ended 31 December 2024 will be available shortly on the Company's
website: www.geoexplorationlimited.com (http://www.geoexplorationlimited.com)
The information contained within this announcement is deemed by the Company to
constitute inside information under the UK Market Abuse Regulations ("MAR").
Upon the publication of this announcement via a Regulatory Information Service
("RIS"), this inside information is now considered to be in the public domain.
For further information please visit: www.geoexplorationlimited.com
(http://www.geoexplorationlimited.com) or contact:
Geo Exploration Limited investors@geoexpltd.com
Hamza Choudhry, CFO and Executive Director
SPARK Advisory Partners Limited (Nominated Adviser) +44 (0) 20 3368 3555
Andrew Emmott, Jade Bayat
CMC Markets (Joint Broker) +44 (0) 20 3003 8632
Douglas Crippen
SI Capital Limited +44 (0) 14 8341 3500
Nick Emerson
Follow us on social media
This announcement has been issued by and is the sole responsibility of the
Company.
OPERATING AND FINANCIAL REVIEW
Corporate
The half-year ending 31 December 2024 has been transformational for Geo
Exploration Limited (formerly known as Global Petroleum Limited) ("the
Company") or ("Geo Exploration"), with initiatives being led by the
acquisition of an 80% interest in the Juno Project. The Company changed its
management structure to align with the transformational agenda and strategic
objectives. In September 2024, the Company appointed Omar Ahmad as Chief
Executive Officer and Hamza Choudhry as Chief Financial Officer to execute on
the Company's transformation agenda
In December 2024, Azib Khan transitioned from Non-Executive Director to
Executive Director, assuming the role of Chief Commercial Officer to advance
the Company's strategic initiatives. Brian Chu joined the Board in December
2024 as Non-Executive Director and Company Secretary, bringing extensive
experience in finance, investment analysis, and risk management.
Andrew Draffin retired from the Board in December 2024 to focus on his
financial services business. Andrew's tenure as Co-Company Secretary ended on
3March 2025 following a transition to Brian Chu. Additionally, Cecilia Yu
resigned from the Board in October 2024 as per the announcement dated 21
October 2024.
GEO Exploration is enthusiastic about the future, with its leadership team
well-positioned to deliver value for shareholders. The change of company name
to Geo Exploration is reflective of the transformation that the Company has
embarked upon.
Namibian Project
The Namibian Project consists of an operated 78 per cent participating
interest in Petroleum Exploration Licence ("PEL") 0094 (acquired in 2018)
which covers Block 2011A.
Since the Company was awarded PEL0094, it has purchased and interpreted
historic 2D and 3D seismic data over Block 2011A and across the Walvis Basin
to enable a better understanding of the petroleum system and the resource
potential of PEL0094. Various studies have been undertaken which have
confirmed the view that PEL 0094 is very prospective.
The Company purchased additional 2D seismic data in 2022 and carried out
further technical interpretation both on the principal prospects (Marula and
Welwitschia Deep) and on the leads in the eastern part of PEL0094.
The Company announced updated estimates of Prospective Resources for PEL0094
in March 2023. The Prospective Resources in the east of PEL0094 consist of 7
leads defined on 2D seismic data with a total unrisked gross Prospective
Resources (Mean Estimate) of 2,230 million barrels of oil. The two principal
prospects, Marula and Welwitschia Deep, are already imaged on pre-existing 3D
seismic data, making them drill-ready targets.
Welwitschia Deep has a mean prospective resource of 881 million barrels of oil
with a risk factor of 14%. Marula has a mean prospective resource of 411
million barrels of oil with a risk factor of 29%.
Further interpretation is ongoing over the eastern part of the licence where
acquisition of new 3D seismic data would be justified. This has highlighted a
substantial Albian sandstone lead, akin to the Albian sandstone play in the
Orange Basin.
On 14 August 2023, the Company announced that the Namibian authorities had
given approval for the Company and its partners to proceed to the First
Renewal Exploration Period ("FREP"), with a duration of two years from
September 2023 to September 2025. Importantly, the usual requirement at the
end of the Initial Exploration Period ("IEP") to relinquish 50 per cent of PEL
0094 area was waived. The work commitment for the FREP is to acquire, process
and interpret 2,000 kms of 3D seismic data (the "3D Seismic") - carried over
from the IEP and to drill a well contingent upon the results of the 3D
Seismic.
Since early 2022, Namibia's oil and gas exploration sector has transformed due
to significant oil discoveries in the Orange Basin. Shell, with Qatar Energy
and NAMCOR, made the first discovery at Graff, followed by discoveries at La
Rona, Jonker, and Lesedi. TotalEnergies and its partners made the Venus
discovery and later drilled Mangetti-1X. Galp also made a significant
discovery at Mopane-1X.
The Orange Basin has seen increased activity with Woodside, Chevron, and Azule
entering the region, planning to drill in 2025. This source provides reason to
believe Namibia is on the path to becoming a major petroleum-producing
province.
In January 2025, Shell announced an approximately US$400m write-down in
Namibia due to the high gas-to-oil ratio and gas condensate in its PEL0039
discoveries. This, combined with low rock permeability and high extraction
costs, has meant that PEL0039 discoveries are yet to be confirmed for
commercial viability.
Chevron in the Orange basin for Block 2813B within PEL 90 also did not
discover any commercial hydrocarbons in January 2025. Despite these setbacks,
Namibia's oil potential remains strong, with other companies advancing more
promising offshore projects and attention has shifted to the Walvis Basin,
where PEL0094 is located. Public comments made by operators working in the
Orange Basin have indicated that some of the reservoirs have low
permeabilities and that there is a substantial volume of gas in the
discoveries to date. The shallower reservoirs in PEL94 are less buried than
their counterparts in the Orange Basin discoveries so, all other things being
equal, should be less diagenetically altered and have higher permeabilities.
Petroleum systems modelling carried out in conjunction with Geo's team by
world-renowned geochemical consultancy IGI Ltd indicates that the source rock
in the migration segments for the prospects and leads in PEL94 is in the main
to early oil windows, and, although from a source rock of this type some gas
would be expelled with the oil, the predominant hydrocarbon phase is modelled
to be oil.
Chevron's farm-in announcement in 2024 for PEL0082 close to PEL0094 has
increased industry interest in the Walvis Basin, with more recent activity in
January 2025 with Tower Resources announcing a farm-out agreement with Prime
Global Energies Limited in the adjacent PEL0096 licence.
In 2024, the Company entered and advanced negotiations with a potential farmee
for the PEL0094 licence. These discussions are ongoing. Additionally, given
increased interest in the Walvis Basin as discussed above and the Company's
PEL0094 licence, the Company is engaging in talks with other potential farmees
with an aim to securing the best outcome for shareholders.
FIGURE 1 - Map of Namibia showing PEL0094
Juno Project - Western Australia
As part of the Company's transformation agenda, in August 2024, the Company
announced the acquisition of a 70% interest in a joint venture ("the JV") with
Callum Baxter. The JV is focused on the advancement of mineral exploration
licence 08/3497 ("the Licence") located in Western Australia, in a region
recognised for its rich mineral deposits.
Callum Baxter was Chief Technical Officer of Greatland Gold plc and was
Chairman and CEO of Starvest plc. Callum was the key geologist in the
advancement and exploration of the Havieron Gold discovery in Western
Australia, one of the largest high-grade gold discoveries in Australia in the
last two decades. Callum Baxter is a member of the Australian Institute of
Geoscientists and the Australasian Institute of Mining and Metallurgy.
Under the terms of the Joint Venture, Geo:
- acquired an initial 70% of the licence for consideration of £200,000.
- exercised a 3 month option to purchase an additional 10% of the licence for
£50,000 thus increasing Geo's interest to 80% of the licence, with Callum
Baxter retaining 20%.
- is committed to a minimum expenditure of £750,000 (capital commitment)
under the JV over the 12 months following completion.
- is to fund 100% of the JV expenditure up to the "Decision to Mine", after
which both parties will contribute according to their JV interests.
- is the JV Manager and responsible for all exploration activities and must
furnish technical reports to Callum Baxter.
- will pay up to a 5% royalty on any future production from the Licence. This
royalty structure ensures that both parties benefit proportionally from the
success of the project.
Following the acquisition of the additional 10% of the licence on 16 September
2024, Geo Exploration now holds 80% of the licence. The Company has
subsequently applied for two further Exploration Licences, 52/4391 and
08/3744, adjacent to the licence, via its wholly owned subsidiary Juno Gold
Pty Ltd. Upon approval of the applications, the total area of the Juno Project
will increase from 106 square kilometres to 450 square kilometres covering
multiple magnetic features.
The Project, targeting Intrusion-Related Gold Systems (IRGS), has seen
significant advancements through a series of geophysical surveys, including
aeromagnetic, gravity, and LiDAR data collection. These activities have been
aimed at identifying and refining high-potential drill targets, with the
ultimate goal of discovering large-scale gold and copper mineralisation
similar to the Havieron deposit in the Paterson Province.
FIGURE 1 - Map of Namibia showing PEL0094
Juno Project - Western Australia
As part of the Company's transformation agenda, in August 2024, the Company
announced the acquisition of a 70% interest in a joint venture ("the JV") with
Callum Baxter. The JV is focused on the advancement of mineral exploration
licence 08/3497 ("the Licence") located in Western Australia, in a region
recognised for its rich mineral deposits.
Callum Baxter was Chief Technical Officer of Greatland Gold plc and was
Chairman and CEO of Starvest plc. Callum was the key geologist in the
advancement and exploration of the Havieron Gold discovery in Western
Australia, one of the largest high-grade gold discoveries in Australia in the
last two decades. Callum Baxter is a member of the Australian Institute of
Geoscientists and the Australasian Institute of Mining and Metallurgy.
Under the terms of the Joint Venture, Geo:
- acquired an initial 70% of the licence for consideration of £200,000.
- exercised a 3 month option to purchase an additional 10% of the licence for
£50,000 thus increasing Geo's interest to 80% of the licence, with Callum
Baxter retaining 20%.
- is committed to a minimum expenditure of £750,000 (capital commitment)
under the JV over the 12 months following completion.
- is to fund 100% of the JV expenditure up to the "Decision to Mine", after
which both parties will contribute according to their JV interests.
- is the JV Manager and responsible for all exploration activities and must
furnish technical reports to Callum Baxter.
- will pay up to a 5% royalty on any future production from the Licence. This
royalty structure ensures that both parties benefit proportionally from the
success of the project.
Following the acquisition of the additional 10% of the licence on 16 September
2024, Geo Exploration now holds 80% of the licence. The Company has
subsequently applied for two further Exploration Licences, 52/4391 and
08/3744, adjacent to the licence, via its wholly owned subsidiary Juno Gold
Pty Ltd. Upon approval of the applications, the total area of the Juno Project
will increase from 106 square kilometres to 450 square kilometres covering
multiple magnetic features.
The Project, targeting Intrusion-Related Gold Systems (IRGS), has seen
significant advancements through a series of geophysical surveys, including
aeromagnetic, gravity, and LiDAR data collection. These activities have been
aimed at identifying and refining high-potential drill targets, with the
ultimate goal of discovering large-scale gold and copper mineralisation
similar to the Havieron deposit in the Paterson Province.
FIGURE 2 - Juno Aeromagnetics and Ground Gravity
Italian Applications
In August 2013, the Company submitted applications for four offshore
exploration areas in the Southern Adriatic, which are contiguous with the
Italian median lines with Croatia, Montenegro, and Albania. Following a series
of appeals against the environmental decrees related to these applications,
the European Court confirmed in January 2022 that the applications did not
violate EU law.
In February 2019, the Italian Parliament suspended all hydrocarbon exploration
activities for 18 months to evaluate their suitability under a new Plan, which
came into effect in February 2022. This Plan mandates that only gas
exploration is permitted, leading to a re-perimeterisation of the Company's
application areas. The Italian Ministry of Ecological Transition later
confirmed that the amended applications complied with the Plan.
In September 2023, the Company announced that appeals against the
environmental decrees granted in its favour had been dismissed by the Council
of State. These appeals were related to all four of the Company's exploration
permit applications in the Southern Adriatic. There have been no updates since
June 2024. The Company will now assess its options regarding the applications
and make further announcements as needed
FIGURE 3 - Map of Permit Applications - Italy offshore
FIGURE 3 - Map of Permit Applications - Italy offshore
DIRECTORS
The Directors of the Company at any time during or since the half-year are:
Non-Executive
Mr Brian Chu (appointed 5 December 2024) Non-Executive Director
Mr Andrew Draffin (retired 5 December 2024) Non-Executive Director
Executive
Mr Omar Ahmad (appointed 18 September 2024) Chief Executive Officer
Mr Hamza Choudhry (appointed 18 September 2024) Chief Financial Officer
Mr Azib Khan Chief Commercial Officer
Ms Cecilia Yu (ceased 21 October 2024) Executive Director
SUBSEQUENT EVENTS
In January 2025, the Company undertook significant capital initiatives to
bolster its project advancement and operational capabilities. On 7 January
2025, the Company announced a successful capital raise of £1,500,000 through
the placement of 666,666,666 Ordinary Shares at a price of 0.225 pence per
share. This funding has been designated to fully fund the announced work
program for the Juno Project as per the RNS dated 14 August 2024, support
ongoing farm-out discussions for PEL0094 in Namibia, maintain license
commitments, and general working capital.
In addition to the institutional placement, the Company launched a retail
offer which raised £51,050 through the issuance of 22,688,888 million new
shares at 0.225 pence each.
The capital raisings reflect the Company's commitment to provide opportunities
for both family office, high net worth individuals and retail investors to
participate in its anticipated growth trajectory.
In February 2025, the Company announced it has applied for a new Exploration
Licence, 08/3792, north of the current Exploration Licence 08/3497 in Western
Australia, via its wholly owned subsidiary Juno Gold Pty Ltd. Callum Baxter,
exploration geologist consulting to the Company, has identified potential
exploration targets within the Licence which share geophysical similarities to
the target within Exploration Licence 08/3497. The Company is confident that
this addition will not only significantly enhance its presence in the region
but also strengthen its vision of uncovering a world-class deposit.
In March 2025, Geo Exploration Limited received correspondence regarding
potential misappropriation of funds committed by an external service provider
which we understand has impacted multiple companies, including ASX-listed
companies and Geo Exploration Limited. The facts of this matter are still
under investigation, but initial findings suggest the period over which Geo
Exploration Limited was impacted spans June 2023 to October 2023, with no
impact identified post October 2023. Based on the initial findings, and the
Company's legal advice Geo Exploration believes that the future possibility of
a net outflow of resources embodying economic benefits in relation to this
matter is low, the net impact on Geo's cash position over the affected period
was immaterial. However, to be very prudent the Company discloses this as a
contingent liability. Since their appointment, the current management team
have prioritised strengthening corporate governance and controls, including
the safeguarding of all company assets.
On 31 December 2024, the Company announced that a warrant holder had exercised
10,000,000 warrants at 0.10 pence per warrant raising £10,000. As a result,
10,000,000 Fully Paid Ordinary Shares were issued with trading of the
underlying Depository Interest commencing trading on 3 January 2025.
On 12 February 2025, the Company announced that it has issued the second
tranche of 2,777,778 shares to the Company's media and marketing consultant
for compensation of services rendered.
CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE
INCOME
FOR THE HALF-YEAR ENDED 31 DECEMBER 2024
Group
For the six months ended 31 December
2024 2023
US$ US$
Other income - 305,799
Employee benefits expense (332,372) (16,401)
Administrative expense (162,237) (200,966)
Other expenses (58,841) (77,146)
Depreciation and amortisation expense (23) (9,718)
Exploration and business development expenses - (10,248)
Foreign exchange gain (loss) 96 2,007
Results from operating activities (553,377) (6,673)
Finance income 10,087 3,509
Net finance income (543,290) (3,164)
Loss before income tax (543,290) (3,164)
Tax benefit (expense) - -
Loss for the period (543,290) (3,164)
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
when specific conditions are met:
Exchange differences on translating foreign operations, net of tax (119,777) -
Total other comprehensive income/(loss) for the period (119,777) -
Total comprehensive income for the year (663,067) (3,164)
Net profit attributable to:
Owners of the parent entity (543,290) (3,164)
(543,290) (3,164)
Total comprehensive income attributable to:
Owners of the parent entity (663,067) (3,164)
(663,067) (3,164)
Earnings per share
From continuing and discontinued operations
Basic earnings per share (cents) (0.0162) (0.0002)
Diluted earnings per share (cents) (0.0162) (0.0002)
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2024
Group
For the six months ended 31 December
31 December 2024 30 June 2024
US$ US$
Assets
Current assets
Cash and cash equivalents 184,363 193,070
Trade and other receivables 61,585 24,030
Other assets 460,445 130,050
Total current assets 706,393 347,150
Non-current assets
Property, plant and equipment 2,579 -
Exploration and evaluation assets 3,278,347 2,017,693
Total non-current assets 3,280,926 2,017,693
Total assets 3,987,319 2,364,843
Liabilities
Current liabilities
Trade and other payables 564,100 324,175
Borrowings 270,000 -
Total current liabilities 834,100 324,175
Total liabilities 834,100 324,175
Net assets 3,153,219 2,040,668
Equity
Issued capital 47,227,236 45,451,618
Reserves 742,406 862,183
Accumulated losses (44,816,423) (44,273,133)
Total equity 3,153,219 2,040,668
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED
31 DECEMBER 2024
Issued Share Capital Option Reserve Foreign Currency Translation Reserve Accumulated losses Total
$ $ $ $ $
Consolidated Group
Six months ended 31 December 2023
Balance at 1 July 2023 44,343,531 283,817 570,410 (43,231,872) 1,965,886
Comprehensive income
Loss for the period - - - (3,164) (3,164)
Total comprehensive income/(loss) for the period - - - (3,164) (3,164)
Transactions with owners, in their capacity as owners,
and other transfers
Issue of shares 629,952 - - - 629,952
Transaction costs (69,637) - - - (69,637)
Total transactions with owners and other transfers 560,315 - - - 560,315
Balance at 31 December 2023 44,903,846 283,817 570,410 (43,235,036) 2,523,037
Six months ended 31 December 2024
Balance at 1 July 2024 45,451,618 291,773 570,410 (44,273,133) 2,040,668
Comprehensive income
Loss for the period - - - (543,290) (543,290)
Other comprehensive income for the period - - (119,777) - (119,777)
Total comprehensive income/(loss) for the period - - (119,777) (543,290) (663,067)
Transactions with owners, in their capacity as owners,
and other transactions
Shares issued during the year 1,852,828 - - - 1,852,828
Transaction costs net of tax (77,210) - - - (77,210)
Total transactions with owners and other transactions 1,775,618 - - - 1,775,618
Balance at 31 December 2024 47,227,236 291,773 450,633 (44,816,423) 3,153,219
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED 31
DECEMBER 2024
Group
For the six months ended 31 December
2024 2023
US$ US$
Cash flows from operating activities
Interest received 10,087 3,509
Payments to suppliers and employees (375,380) (292,549)
Net cash generated by operating activities (365,293) (289,040)
Cash flows from investing activities
Payments for exploration and business development expenditure (677,860) (30,299)
Payments for increment in bank guarantee (270,000) -
Purchase of property, plant and equipment (2,602) -
Net cash (used in) investing activities (950,462) (30,299)
Cash flows from financing activities
Proceeds from issue of shares 1,114,258 629,952
Proceeds from borrowings 270,000 -
Payments for capital raising costs (77,210) (69,637)
Net cash provided by financing activities 1,307,048 560,315
Net increase in cash held (8,707) 240,976
Cash and cash equivalents at beginning of financial period 193,070 356,389
Cash and cash equivalents at end of financial period 184,363 597,365
Ends
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Announcement