REG - Independent Oil &Gas - Interim Results

IogAnnouncement

26/09/2019 07:00

RNS Number : 6866N
Independent Oil & Gas PLC
26 September 2019
 


26 September 2019
 
 
Independent Oil and Gas plc
 
1H 2019 Interim Results
 
Independent Oil and Gas plc ("IOG" or the "Company") (AIM: IOG.L), the AIM-listed development and production focused oil and gas company with key interests in the Southern North Sea ("SNS"), is pleased to present its unaudited interim results for the six months ended 30 June 2019.
 
Operational Highlights

SNS Core Project expanded to include the 108 BCF 2C Contingent Resources at Goddard;
Engineering and design work for Phase 1 Southwark and Blythe platforms progressed following successful completion of geotechnical surveys; and
Tendering processes initiated for Phase 1 platform and SURF scopes.

 
Corporate and Financial Highlights

Institutional equity fundraise; fully subscribed open offer and Board/management subscription, raising gross aggregate proceeds of £18.9 million;
 Conversion and restructuring of LOG debt;
Relationship Agreement signed with LOG;
Rejection of indicative proposal from Rockrose Energy;
Appointment of Esa Ikaheimonen as Senior Independent Non-Executive Director and Chair of Audit Committee; and
Appointment of Neil Hawkings as Independent Non-Executive Director and Chair of HSE and Technical Committee.

 
Post-Period End Highlights

Signing of definitive documents to farm out 50% of the Company's portfolio, excluding Harvey, to CalEnergy Resources Limited ("Farm-out");
Successful raise of EUR100 million 5-year bond ("Bond") which sees the Company fully funded for Phase 1 of the Core Project;
Drilling of Harvey appraisal well;
Signing of SPA to acquire the Thames Reception Facilities at Bacton Gas Terminal; and 
Area of Mutual Interest ("AMI") agreement with CalEnergy Resources Limited.

 
Future Newsflow  

Completion of Farm-out to CalEnergy Resources Limited;
FID and commencement of Core Project Phase 1 project execution;
Full Harvey appraisal well results; and
CalEnergy Resources Limited option to farm in to Harvey.

 
Andrew Hockey, CEO of IOG, said:
"In challenging circumstances, the IOG team has achieved a series of very significant steps to unlock the value of our portfolio during 1H19 and thereafter. Most notably we completed an institutional fund raise in April 2019 which, along with a Board and Management subscription and a fully subscribed open offer, raised gross proceeds of £18.9 million. Other significant highlights include the restructuring and conversion of existing debt facilities, the successful defence from a possible hostile takeover, contractor bid processes for Phase 1 platform and SURF contracts and strengthening of the board with two high-quality new non-executive directors in Esa Ikaheimonen and Neil Hawkings.  
 
Post period end, we signed the farm-out agreement with CalEnergy Resources Limited, signed an SPA to acquire the Thames Reception Facilities at Bacton, and successfully raised a EUR100 million bond to complete the balance of required Phase 1 funding. We have also drilled the Harvey appraisal well in under two months with no HSE incidents, confirming a 49ft gas column, and are currently assessing the detailed well results to generate updated volume estimates.
 
I am immensely proud of everything the team has achieved to date this year. We continue to focus our efforts on ensuring that all remaining Farm-out completion conditions, which consist of routine consents and agreements with third parties, are met as soon as possible. At completion we will be fully funded for the Phase 1 development execution phase and we remain as focused as ever on delivering value for our shareholders."
 
Certain information communicated in this announcement was, prior to its publication, inside information for the purposes of Article 7 of Regulation 596/2014.
 
 
Enquiries:




Independent Oil and Gas plc
Andrew Hockey (CEO)
James Chance (CFO)


+44 (0) 20 3879 0510




finnCap Ltd
Christopher Raggett
Anthony Adams


+44 (0) 20 7220 0500




Peel Hunt LLP
Richard Crichton
David McKeown


+44 (0) 20 7418 8900




Vigo Communications
Patrick d'Ancona
Chris McMahon
Simon Woods
 


+44 (0) 20 7390 0230




 
Notes
About Independent Oil and Gas
 
Subject to completion of the farm-out transaction announced on 26 July 2019, IOG will own and operate a 50% stake in substantial low risk, high value gas reserves in the UK Southern North Sea. The Company's Core Project targets a net 2P peak production rate of 69 MMCF/d (c. 12kBoe/d) from net 2P gas Reserves of 151 BCF¹ + 2C gas Contingent Resources of 55 BCF², via an efficient hub strategy. In addition to the independently verified 2P reserves at Blythe, Elgood, Southwark, Nailsworth and Elland and 2C Contingent Resources at Goddard, IOG also has independently verified best estimate net unrisked prospective gas resources of 37 BCF² at Goddard and is in the process of updating its management estimate of gas resources at Harvey. Alongside this IOG continues to pursue value accretive acquisitions to generate significant shareholder returns.
 
¹ERC Equipoise Competent Persons Report: October 2017, adjusted by Management to account for updated project timing and compression
²ERC Equipoise Goddard Competent Persons Report: October 2018
 
Further information can be found at www.independentoilandgas.com 
 
The Directors present their interim report of operations and unaudited consolidated financial statements of Independent Oil and Gas plc ("the Company") and its subsidiaries ("the Group") for the six months ended 30 June 2019. All amounts are shown in Pounds Sterling, unless otherwise stated.
This interim financial report is the responsibility of and has been approved by the Directors. The Directors are responsible for preparing the Interim Report which has not been audited by the Company's auditors. In addition to the results for the first six months of 2019 ("1H 2019"), comparative information is provided for the six months ended 30 June 2018 ("1H 2018"). Comparative information for the Group's financial position is also provided the year ended 31 December 2018 ("FY 2018").
As disclosed in note 1, the annual financial statements of the Group are prepared in accordance with International Financial Reporting Standards ("IFRSs") as adopted by the European Union.
 
 
Chief Executive Review
The first half of 2019 was a very significant period for the Company as we continued to make strides towards Final Investment Decision ("FID") on our two-phase gas development project ("Core Project") in the Southern North Sea ("SNS"). The Core Project is designed to deliver shareholder value through the production of indigenous gas which will be fed to an import-reliant UK domestic market safely and at a low unit cost, generating material cash flows for the Group and its stakeholders.
At the beginning of the period, we expanded our Core Project to include the Goddard discovery adding 2C Resources of 108 BCF to the portfolio, resulting in a total of 410 BCF, comprised of 2P and 2C reserves and resources across six discovered gas fields, excluding Harvey. The integration of Goddard adds to what was already a very strong investment case without the need for a significant increase to the overall funding requirement.
Additionally, we also have the potential to further enhance the Core Project through the appraisal and potential inclusion of the Harvey field. In May 2019, we signed an agreement with Maersk Drilling UK Ltd to contract the Maersk Resilient jack-up rig to drill the high-impact appraisal well, which I am glad to report was successfully and safely drilled post-period (August/September 2019) to a total Measured Depth ("MD") of 7,537ft in the Permian Leman sandstone reservoir. Initial analysis from the wireline data demonstrated the presence of a 49 ft gas column at the top of the reservoir. The comprehensive wireline dataset acquired in the well is currently being analysed along with core data and integrated into a revised technical assessment of reservoir gas quality, volumes and deliverability, meeting the primary objectives of the well. We plan to release the final results of these analyses in due course.
In March, RockRose Energy plc ("RockRose") published an indication of its interest to make a possible cash offer for the entire share capital of the Company at a price of 20p per IOG share. This indicative offer was rejected unequivocally by IOG's Board of Directors with the view that the announcement released by RockRose contained a number of statements with which the Board did not agree. Furthermore, the offer was also deemed as opportunistic in light of IOG's relatively low share price at the time and materially undervalued the Company, its assets and the significant upside potential. The rejection of RockRose's approach was given the full support of the administrators of London Oil & Gas Ltd ("LOG"). Shortly after its possible cash offer of 20p, RockRose approached LOG's joint administrator, Smith & Williamson LLP, with an offer to acquire the entire debt due to LOG from IOG for the sum of £40 million in cash, which was, in turn, rejected.
In April 2019, the Company completed a successful institutional equity placing, subscription and open offer providing the Company with aggregate gross proceeds of £18.9 million. These proceeds contributed towards the cost of drilling the Harvey appraisal well, ongoing Core Project costs and G&A. This was an important step that was implemented at a challenging time for the Company to provide it with the financial strength needed to remain firmly on track and allow management to execute on its strategy on behalf of our long-term shareholders and new institutional investors.
Post period-end, the Company completed a Sales and Purchase Agreement ("SPA") with Perenco UK Ltd, Tullow Oil SK Limited and Spirit Energy Resources Limited for the acquisition of the Thames Reception Facilities at the Bacton Gas Terminal. This is a key step in the process of securing the necessary infrastructural framework for our Core Project as we progress towards FID.
Furthermore, I am delighted to report that, post period end, IOG secured a farm-out agreement with CalEnergy Resources Ltd ("CER"), a subsidiary of Berkshire Hathaway Energy Company, to farm out 50 per cent of its SNS assets (excluding Harvey), as well as the Thames Pipeline and associated Thames Reception Facilities, for a potential total of up to £165 million in the form of cash and development carries. As part of the agreement, CER also holds an option to acquire 50 per cent of the Harvey licence within three months of completion of the Harvey appraisal well, initial results of which were announced on 11 September 2019, for an additional £20 million. In addition to the Farm-out, IOG and CER have signed an Area of Mutual Interest agreement to allow for future co-operation in further SNS business development activities on a 50:50 basis. The comprehensive farm-out transaction signed with such a strong partner shows great confidence in our strategy and management team and demonstrates the value of our SNS gas portfolio.
Concurrent to announcing the Farm-out, we also announced our intention to issue a Euro-denominated senior secured bond to provide the full balance of IOG's Phase I funding requirements. This was swiftly followed by the successful arrangement of a EUR 100 million 5-year senior secured bond issuance with a bullet repayment structure and an interest rate, payable quarterly, of 9.5 per cent per annum over the three-month Euribor rate. The Company also holds the option to issue additional amounts up to a maximum aggregate of EUR 30 million on the same terms, subject to further investor demand. It was agreed by both IOG and CER that completion of the Farm-out would trigger Phase I FID and lead to the submission of confirmation of full funding to the Oil & Gas Authority ("OGA").
As the business progresses, we have also continued to review our board composition and welcomed the high-calibre appointments of Esa Ikaheimonen and Neil Hawkings during this half-year period. Both directors have a tremendous amount of experience and expertise in the upstream oil and gas industry and both have made an immediate positive impact on the Company. Following the conclusion of our successful fundraise in April, we also established a new Relationship Agreement with LOG which saw Martin Ruscoe and Charles Hendry step down from the Company's Board.
I would like to thank all our shareholders for their continued support as well as the Board and management team for all their hard work and commitment during a very busy period for the Company. We are very excited by IOG's potential as we move towards completion of the Farm-out and entering the execution phase on Phase I of our Core Project in the upcoming period.
 
Andrew Hockey
Chief Executive Officer
26 September 2019
 
 
 
 
Operational Review
 
UK SNS Core Project Phase 1
 
Engineering design works continued with Perenco UK to understand the scope requirements for the acceptance of Phase 1 gas into and through the Bacton onshore Perenco processing plant. In addition, commercial discussions continued with Perenco to define the terms of potential processing agreements.   Front end engineering and design (FEED) work continued for the Southwark and Blythe production platforms and pipelines, and tenders were issued to the contractor market for these scopes. Planning for the Environmental Impact Assessments (EIAs) and the Field Development Plan (FDP) continued and both documents were submitted to BEIS and the OGA respectively in the period.
 
Harvey
 
In May 2019, we signed an agreement with Maersk Drilling UK Ltd to contract the Maersk Resilient jack-up rig to drill the high-impact appraisal well, which was subsequently drilled (August/September 2019) post period end safely and successfully (with zero lost time incidents) to a total Measured Depth ("MD") of 7,537ft in the Permian Leman sandstone reservoir. Initial analysis from the wireline data demonstrated the presence of a 49 ft gas column at the top of the reservoir. The comprehensive wireline dataset acquired in the well is currently being analysed along with core data and integrated into a revised technical assessment of reservoir gas quality, volumes and deliverability, meeting the primary objectives of the well. We plan to release the final results of these analyses in due course.
 
Goddard
 
Since award of the Goddard licence in the 30th Round late in 2018, work has continued on understanding the geological and reservoir properties, and development concepts for the field. This will culminate in the next period in a Conceptual Development Report to be shared with the OGA as the first assessment part of the FDP approval process.
 
 
Mark Hughes
Chief Operating Officer
26 September 2019
 
 
 
 
Financial Review
 
Income statement
 
The post-tax loss for the first six months of 2019 was £4.61 million, compared to £2.56 million for the first six months of 2018 and £5.64 million for full year 2018.
The current period loss includes an expense of £0.70 million for net administration expenses (1H 2018 - £0.48 million), impairment charges of £nil (1H 2018 - £0.15 million), project and pre-acquisition expenses of £1.36 million (1H 2018 - £0.29 million), a net loss on settlement of creditors of £nil (1H 2018 - £0.11 million), an exchange loss of £0.01 million (1H 2018 - £0.13 million) and finance expenses of £2.54 million (1H 2018 - £1.40 million).
The exchange loss of £0.01 million for the current period (1H 2018 - £0.13 million) reflects fluctuations in exchange rates on the valuation of non-GBP denominated creditors and provisions.
Finance expenses include £1.34 million (1H 2018 - £0.49 million) of loan and financing charges calculated on an effective interest rate basis, plus £1.20 million (1H 2018 - £0.91 million) of accrued loan and other interest, net of capitalised interest charged to development assets.
There was no impact on the income statement following the adoption of IFRS16 (see below).
 
Statement of financial position
 
Oil and gas properties held as non-current assets of £45.89 million at 30 June 2019 (31 December 2018 - £43.88 million) represents capital expenditures attributable to the Thames Pipeline infrastructure, the Group's Blythe, Elgood, Southwark, Elland and Nailsworth pre-development interests plus the appraisal assets of Harvey, Goddard and Abbeydale. Current assets include £0.34 million UK VAT receivable (31 December 2018 - £0.31 million) and £0.40 prepayments (31 December 2018 - £0.36 million). Included within prepayments are loan finance costs incurred in advance of predetermined loan and equity financing arrangements. Current liabilities include an amount of £7.44 million due to LOG (31 December 2018 - £6.93 million) representing amounts due on loan facilities within one year and £1.72 million owing to Oyster Petroleum Holdings Limited (31 December 2018 - £1.71 million) representing deferred consideration payable on approval of the Southwark FDP. Other current liabilities include trade and other creditors and accruals of £5.19 million (31 December 2018 - £9.43 million) which includes the remaining deferred payment amount owing to Transocean Drilling UK Limited in respect of the Skipper well drilled in 2016. Non-current liabilities include £27.54 million owing to LOG (31 December 2018 - £22.88 million) representing amounts due on loan facilities net of prepaid financing costs. Non-current deferred consideration provisions of £4.45 million (31 December 2018 - £4.48 million) represent discounted amounts payable on first gas in 2021 from both the Blythe and Southwark fields. The decommissioning provision of £5.66 million (31 December 2018 - £5.64 million) represents the abandonment liabilities for both the Elland suspended well and the Thames Pipeline offshore infrastructure.
 
IFRS16 Lease Accounting
The new IFRS 16 standard on leases came into effect on 1 January 2019. There was no impact on the Group balance sheet as at 30 June 2019 as the Group's current exposure to operating leases is minimal and non-material. This standard will continue to be reviewed by management in light of further exposure to lease liabilities.
Following adoption, right-of-use assets under operating leases would be recorded in the balance sheet as property, plant and equipment, with an appropriate DD&A charge being taken to the income statement i.e. the income statement would now exclude lease expenses.
Lease liabilities would be presented separately on the Group balance sheet as both current and non-current liabilities; they do not form part of finance debt and would not be included in net debt under the terms of the Group's financing facilities.
In addition, the Group has no exposure to finance leases, as would have previously been reported under IAS17.
 
Cash flow
 
After adjustment for non-cash items, cash used in operations for the first six months of 2019 was £2.12 million (1H 2018 - £1.88 million).   Cash used in investing activities, which include the purchase and acquisition of oil and gas properties, amounted to £5.58 million (1H 2018 - £5.30 million).  This was principally funded through net borrowings of £3.85 million (1H 2018 - £11.60 million) and the issue of equity instruments, net of costs, which realised net funds of £17.65 million (1H 2018 - £0.03 million). The cash balance at the end of the period was £14.51 million (31 December 2018 - £0.70 million).
 
Funding and liquidity
 
The Board has reviewed the Group's cash flow forecasts up until December 2020 having regard to its current financial position and operational objectives. The Board is satisfied that the Group will have sufficient financial resources available to meet its commitments based on the amount of available cash within the Group, funding pursuant to the Farm-out and drawdowns from the Bond. Accordingly, the Board continues to adopt the going concern basis for the preparation of this financial information.
 
However, at the date of these financial statements the legally binding agreements relating to the Farm-out have not yet been completed, and as such the Bond proceeds are also not yet available to the Company. Therefore, there can be no certainty that additional funds will be forthcoming which indicates the existence of material uncertainty which may cast significant doubt about the Group and Company's ability to continue as a going concern and therefore it may be unable to realise its assets and discharge its liabilities in the normal course of business. The financial statements do not include the adjustments that would result if the Group and Company was unable to continue as a going concern.
 
Risks and uncertainties 
The Group operates in the oil and gas industry, an environment subject to a range of inherent risks and uncertainties.  Being at an early stage in the Group lifecycle, the prime risks to which the Group is subject to are the access to sufficient funding to continue its operations, the status and financing of its partners, changes in cost and reserves estimates for its assets, operational delays and failures, changes in forward commodity prices and the successful development of its oil and gas reserves.  Further details can be found in the audited Financial Statements for the year ended 31 December 2018.
 
Key performance indicators
 
The Group's main business is the acquisition and exploitation of oil and gas acreage.  Non-financial performance is tracked through the accumulation of licence interests and the successful discovery and exploitation of oil and gas reserves.
 
 
James Chance
Chief Financial Officer
26 September 2019
 
 
 
 
 
Consolidated statement of comprehensive income for the six months ended 30 June 2019

 

 




 


 


 




 


Unaudited


Unaudited




 


1H 2019


1H 2018




 


£000


£000




 


 


 




 


 


 




Other administration expenses


(703)


(479)




Impairment of oil and gas properties


-


(151)




Project, pre-acquisition and exploration expenses


(1,356)


(288)




Net loss on settlement of liabilities


-


(106)




Foreign exchange loss


(12)


(128)




 


_________


_________




 


 


 




Total administration expenses


(2,071)


(1,152)




 


_________


_________




 


 


 




Operating loss


(2,071)


(1,152)




 


 


 




Finance expenses


(2,538)


(1,403)




 


_________


_________




 


 


 




Loss for the period before tax


(4,609)


(2,555)




 


 


 




Taxation


-


-




 


_________


_________




Total comprehensive loss for the period attributable to equity holders of the parent


(4,609)


(2,555)




 


_________


_________




 


 


 




                                                                                                                            




Loss for the period per ordinary share - basic


   (2.2) p


(2.1) p




Loss for the period per ordinary share - diluted


(2.2) p


(2.1) p




 


________


_________




 
 
The loss for the period arose from continuing activities.
 
 
 
 
Consolidated statement of changes in equity for the six months ended 30 June 2019

 

 




 


Share capital


Share premium


Share- based payment reserve


Accumulated
losses


Total
equity




 


 


 


 


 


 




Group


£000


£000


£000


£000


£000




 


 


 


 


 


 




At 1 January 2018


1,203


22,337


3,099


(31,405)


(4,766)




Loss for the year


-


-


-


(5,644)


(5,644)




 


______


_______


_______


______


_______




Total comprehensive expense attributable to owners of the parent


-


-


-


(5,644)


(5,644)




 


 


 


 


 


 




Transactions through Equity


 


 


 


 


 




Issue of warrants


-


-


4,190


-


4,190




Issue of share options


-


-


378


-


378




Exercise of share options


66


-


(1,359)


1,359


66




 


______


_______


_______


______


_______




 


 


 


 


 


 




 


66


-


3,209


1,359


4,634




 


______


_______


_______


______


_______




 


 


 


 


 


 




At 31 December 2018 (Audited)


1,269


22,337


6,308


(35,690)


(5,776)




 


______


_______


_______


______


_______




 


 


 


 


 


 




Loss for the period


-


-


-


(4,609)


(4,609)




 


______


_______


________


______


_______




 


 


 


 


 


 




Total comprehensive expense attributable to owners of the parent


-


-


-


(4,609)


(4,609)




 


 


 


 


 


 




Transactions through Equity


 


 


 


 


 




Issue of shares


2,097


17,179


-


-


19,276




Lapse of warrants


-


-


(31)


31


-




Issue of share options


-


-


280


-


280




Exercise of share options


15


-


(108)


108


15




 


______


_______


_______


______


_______




 


 


 


 


 


 




 


2,112


17,179


141


139


19,571




 


_______


_______


_______


______


_______




 


 


 


 


 


 




At 30 June 2019 (Unaudited)


3,381


39,516


6,449


(40,160)


9,186




 


______


_______


_______


______


_______




 
Share capital
Amounts subscribed for share capital at nominal value.
 
Share premium
Amounts received on the issue of shares, more than the nominal value of the shares, less issue costs.
 
Share-based payment reserve
Amounts reflecting fair value of options and warrants issued.
 
Accumulated losses
Cumulative net losses recognised in the Statement of Comprehensive Income net of amounts recognised directly in equity.
 
 
 
 
Consolidated statement of financial position at 30 June 2019

 

 




 


Unaudited


Audited




 


30 June 2019


31 December 2018




 


£000


£000




Non-current assets


 


 




Intangible assets: exploration & evaluation


3,476


2,352




Intangible assets: other


2


3




Property, plant and equipment: development & production


42,410


41,527




Property, plant and equipment: other


45


41




 


 


 




 


45,933


43,923




 


 


 




Current assets


 


 




Other receivables and prepayments


755


672




Cash and cash equivalents


14,505


702




 


 


 




 


15,260


1,374




 


 


 




 


 


 




 


 


 




Total assets


61,193


45,297




 


 


 




 


 


 




 


 


 




Current liabilities


 


 




Loans


(7,436)


(6,934)




Trade and other payables


(6,915)


(11,137)




 


 


 




 


(14,351)


(18,071)




 


 


 




Non-current liabilities


 


 




Loans


(27,543)


(22,884)




Provisions


(10,113)


(10,118)




 


 


 




 


(37,656)


(33,002)




 


 


 




 


 


 




Total liabilities


(52,007)


(51,073)




 


 


 




 


 


 




NET ASSETS / (LIABILITIES)


9,186


(5,776)




 


 


 




Capital and reserves


 


 




Share capital


3,381


1,269




Share premium account


39,516


22,337




Share-based payment reserve


6,449


6,308




Accumulated losses


(40,160)


(35,690)




 


_________


_________




 


 


 




 


9,186


(5,776)




Total equity


_________


_________




 
 
 
 
Consolidated cash flow statement for the six months ended 30 June 2019

 

 




 


 


Unaudited


Unaudited




 


 


1H 2019


1H 2018




 
 


 


£000


£000




Loss after tax


 


(4,609)


(2,555)




 


 


 


 




Adjustments for:


 


 


 




Depreciation and amortisation


 


9


3




Exploration asset write off


 


-


151




Loss on settlement of liabilities


 


-


106




Share based payments


 


218


67




Movement in other receivables


 


(82)


(497)




Movement in trade and other payables


 


(194)


(610)




Interest received


 


(11)


(1)




Interest and financing fees


 


      2,548


1,404




Foreign exchange loss


 


2


53




 


 


_________


_________




Net cash used in operating activities


 


(2,119)


(1,879)




 


 


 


 




Cash flows from investing activities


 


 


 




Purchase of intangible assets and property, plant and equipment


 


(5,586)


(5,296)




Interest received


 


11


1




 


 


_________


_________




 


 


 


 




Net cash used in investing activities


 


(5,575)


(5,295)




 


 


 


 




Cash flows from financing activities


 


 


 




Proceeds from issue of equity instruments of the Group (net of costs)


 


17,652


33




Cash received from loans (net of costs)


 


3,925


11,681




Interest and financing fees paid


 


(80)


(76)




 


 


_________


_________




 


 


 


 




Net cash generated from financing activities


 


21,497


11,638




 


 


 


 




Increase in cash and cash equivalents in the period


 


13,803


4,464




Cash and cash equivalents at start of period


 


702


145




 


 


_________


_________




 


 


 


 




Cash and cash equivalents at end of period


 


14,505


4,609




 


 


_________


_________




 
 
 
 
 
Notes to the financial statements for the six months ended 30 June 2019

 

 
Notes
(i) Basis of preparation
The financial information contained in this announcement does not constitute statutory financial statements within the meaning of Section 435 of the Companies Act 2006.  The financial information for the six months ended 30 June 2019 is unaudited.  It is prepared in accordance with the same accounting policies as used for the year ended 31 December 2018 and those which are anticipated to be relevant to the financial statements for the year ended 31 December 2019. In the opinion of the directors the financial information for this period fairly presents the financial position, results of operations and cash flows for the period in compliance with IFRS.
 
The comparatives for the full year ended 31 December 2018 are not the Company's full statutory accounts for that year. A copy of the statutory accounts for that year has been delivered to the Registrar of Companies. The auditors' report on those accounts was unqualified; however, did include a reference to a matter (a material uncertainty relating to going concern) on which auditors drew attention by way of emphasis without qualifying their report. Their report did not contain a statement under section 498(2)-(3) of the Companies Act 2006.
 
(ii) Loss per share
The calculation of loss per share is based upon the weighted average number of ordinary shares in issue during the period of 204,866,723 (30 June 2018: 121,246,613). Diluted loss per share is calculated based upon the weighted average number of ordinary shares plus the weighted average number of ordinary shares that would be issued upon conversion of potentially dilutive share options and warrants into ordinary shares. As the result for both periods presented was a loss, the calculation of the diluted LPS was anti-dilutive and therefore the potential ordinary shares were ignored for the purposes of calculating diluted LPS. The weighted average number of ordinary shares on a diluted basis at 30 June 2019 is 388,027,521 (30 June 2018: 149,393,771).
 
(iii) Dividend
The Directors do not recommend payment of a dividend.
 
 
(iv) Post Balance Sheet Events
·      Signing of SPA to acquire the Thames Reception Facilities
·      Drilling of Harvey Appraisal Well
·      Signing of Farm-out of 50% of SNS Assets (excluding Harvey) with CalEnergy Resources Limited
·      Signing of AMI Agreement with CalEnergy Resources Limited
·      EUR100 million Bond issue
 
 
 
 
INFORMATION & ADVISERS

 

 
 
Country of incorporation of parent company
United Kingdom
 
 
Legal form
Public limited company with share capital
 
 
Directors
Fiona MacAulay
Andrew Hockey
Mark Hughes
Esa Ikaheimonen
Neil Hawkings
 
 
General Counsel and Company Secretary
Robin Storey
 
 
Registered office
60 Gracechurch Street
London EC3V 0HR
 
 
Company registered number
07434350
 
 
Auditors
BDO LLP
55 Baker Street
London W1U 7EU
 
 
Legal advisers
Fieldfisher LLP
Riverbank House
2 Swan Lane
London EC4R 3TT
 
 




This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
END
 
 
IR EELFLKKFXBBD