REG - Independent Oil &Gas - Interim Results 2016 <Origin Href="QuoteRef">IOG.L</Origin> - Part 2
30/09/2016 07:08
- Part 2: For the preceding part double click ID:nRSd2741La
facilities.
Other receivables and prepayments include an advance payment of £496,000 due
under the contract for the rig to drill the Skipper well in 3Q 2016. This was
satisfied through the issue of 2,700,000 ordinary shares.
The derivative financial asset represented the carrying value of notes held in
Darwin Strategic Limited which were fully redeemed during 2015.
8 Current liabilities
30 June 30 June 31 December
2016 2015 2015
£000 £000 £000
Loans - 358 -
Trade and other payables 1,201 62 2,307
Amounts due to joint venture partners 165 35 63
Accruals 138 61 195
_________ _________ _________
1,504 516 2,565
_________ _________ _________
During the first half of 2016, Group trade and other payables denominated in
US$ were increased by £163,000 (1H 2015 - reduction of £16,000) through
changes to the £/US$ exchange rate.
Of the Group's total trade payables, £832,000 is due to Weatherford Technical
Services Limited no later than 31 December 2016. A further £833,000 is due no
later than 20 December 2017 which was recently extended from 20 September 2016
and consequently that amount has been transferred to non-current liabilities.
However, if during the remainder of 2016, Brent closes above US$50 per barrel
for 30 consecutive days, that amount will also become payable by 31 December
2016. Interest is charged on both current and non-current amounts at 9% p.a.
and will increase to 12% effective 1 January 2017 for any amounts
outstanding.
At 30 June 2015, loans totalling £358,000 were outstanding to Darwin Strategic
Limited of which £112,000 was subsequently paid during 2H 2015 before the
balance of £246,000 was converted into ordinary shares on 13 October 2015.
9 Non-current liabilities
30 June 2016 30 June 2015 31 December 2015
£000 £000 £000
Trade and other payables 1,133 1,608 293
Loans 2,109 - -
_________ _________ _________
3,242 1,608 293
_________ _________ _________
Of the Group's non-current trade and other payables, £300,000 is not due until
after sustained production is achieved from the Skipper field and is
non-interest bearing. The balance of £833,000 is due by 20 December 2017
unless the conditions described in note 8 arise. Interest on that amount is
charged at 9% during 2016 rising to 12% thereafter.
On 7 December 2015 new loan facilities were announced for £2.75 million and
£2.0 million arranged with London Oil and Gas Limited and GE Oil and Gas
Limited respectively. On 11 December 2015 a further loan was announced for
£0.8 million arranged with London Oil and Gas Limited. Each facility remained
undrawn as 31 December 2015. Warrants were issued to London Oil and Gas
Limited and GE Oil and Gas Limited in respect of the above facilities and
recorded at fair value. As the facilities were undrawn at year end 2015, the
value of the warrants plus associated costs were treated as a prepayment at
the year-end. On draw down the prepayment amounts are debited against the
loan facility and amortised over the life of the facility through the
effective interest rate calculation.
At 30 June 2016, £866,000 had been drawn against the £2.75 million facility
and £1,500,000 had been drawn against the £10 million facility. Interest and
other charges, calculated on an effective interest basis, of £46,000 had been
added to total amounts outstanding. In addition, an equity element of
£146,000 has been calculated and transferred to reserves. Costs of £157,000
associated with the drawn amounts have been transferred from prepayments and
debited against these facilities.
10 Equity share capital
Share Share
capital premium Total
Number £000 £000 £000
Allotted, issued and fully paid
At 1 January 2015
- Ordinary shares of 1 penny each 69,247,764 692 17,163 17,855
Equity issued 609,500 6 139 145
Equity issued 210,174 2 48 50
Settlement of loan via issue of shares 6,507,399 65 181 246
Equity issued 2,142,858 22 128 150
Placing fees - - (10) (10)
_________ _________ _________ _________
At 31 December 2015
- Ordinary shares of 1 penny each 78,717,695 787 17,649 18,436
Equity issued:
- management options exercised 2,982,139 30 345 375
- in satisfaction of creditors 13,603,664 136 1,097 1,233
- gain on subsequent sale of shares - - 99 99
_________ _________ _________ _________
At 30 June 2016
- Ordinary shares of 1 penny each 95,303,498 953 19,190 20,143
_________ _________ _________ _________
On 25 June 2015, the Company issued 609,500 ordinary shares and on 2 July 2015
the Company issued a further 210,174 ordinary shares at subscription prices of
23.79 pence each to raise total proceeds of £145,000 and £50,000
respectively.
On 13 October 2015, the Company issued 6,507,399 ordinary shares at a
subscription price of 3.777 pence each in satisfaction of total debt of
£246,000. The conversion price reflected 85% of the average quoted market
price for IOG's shares over the three lowest average prices over the preceding
10-day trading period.
On 21 October 2015, the Company issued 2,142,858 ordinary shares at a
subscription price of 7 pence each to raise total proceeds of £150,000.
During 1H 2016, the Company issued 13,603,664 shares at an average price of
9.06 pence to satisfy certain creditors totalling £1,233,000. Of these,
9,945,953 were issued to AGR at 6.45 pence with the arrangement that, should
AGR subsequently sell such shares as prices in excess of 9.675 pence each,
then 50% of such gain would be paid to IOG. By 30 June, 4,070,953 shares had
been sold generating net proceeds of £99,000 for IOG of which £52,000 had been
received by 30 June 2016.
11 Share options and warrants
During 1H 2016, a total of 2,982,139 management 1 penny options were exercised
and ordinary shares issued for a total value of £30,000. Fair value amounts
of £345,000 previously charged for these options were transferred from the
share-based payment reserve to the share premium account.
On 1 March 2016, the Company issued 2,888,561 staff options at an exercise
price of 1p vesting on 1 March 2016 and expiring on 28 February 2021. A fair
value of 6.44 pence was calculated, using the Black Scholes model, generating
a total charge in the period of £186,000.
On 29 March 2016, 500,000 warrants with an exercise price of 8 pence, expiring
on 31 March 2019, were issued to Weatherford Technical Services. A fair value
of 6.90 pence was calculated using the Black Scholes model, generating a total
charge in the period of £34,000. The £48,000 balance of share-based payment
charges in the period relate to previously issued options whose fair value is
spread over extended vesting periods.
12 Publication of Non-Statutory Accounts The financial information contained in this interim statement does not constitute statutory accounts as defined under the Companies Act 2006. The financial information for the full preceding year is based on the
audited statutory accounts for the financial year ended 31 December 2015, which are available at the Company's registered office at 60 Gracechurch Street, London, EC3V 0HR and on its website at www.independentoilandgas.com. This interim statement will be
made available at the Company's registered office at 60 Gracechurch Street, London, EC3V 0HR and on its website at www.independentoilandgas.com.
Independent Oil and Gas plc
Country of incorporation of parent company
United Kingdom
Legal form
Public limited company with share capital
Directors
Mark Routh
Peter Young
David Peattie
Andrew Hay
Martin Ruscoe
Registered office
60 Gracechurch Street
London
EC3V 0HR
Company number
07434350
Auditors
BDO LLP
55 Baker Street
London
W1U 7EU
This information is provided by RNS
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