REG - Pennpetro Energy PLC - Results for the year ended 31 December 2021
13/07/2022 15:00
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RNS Number : 3857S Pennpetro Energy PLC 13 July 2022
Pennpetro Energy PLC
("Pennpetro" or the "Company")
Results for the year ended 31 December 2021
London, 13 July 2022 - Pennpetro, an independent oil and gas company focusing
on production in the Gonzales Oil Field in Texas, USA, today announces that it
has published its Annual report and Financial Statements for the year ended 31
December 2021.
Chairman's Statement
I am pleased to present the annual results for Pennpetro Energy PLC for the
year ended 31 December 2021.
Since I wrote to you last year, during a period being the most difficult of
times for businesses and families globally, events have moved somewhat
forward, but we are still faced with a number of challenges and issues
resulting from the times we have endured.
As outlined to you last year, as a business we dealt with the challenges
brought about by the COVID-19 pandemic swiftly and humanely to not only ensure
the wellbeing of our teams but also the retention of value for our
shareholders.
As reported last year after selling oil commercially from our initial well in
the Gonzales field, as the world went into lockdown, we suspended all
operations and activities in line with the requests of the US Government and
Texas State Legislators. We have now through our Houston team re-engaged with
various professional firms seeking to bring into play our proposed 2nd and 3rd
drilling projects.
With operations now being undertaken again, albeit in a more restricted
manner, we sought to shape Pennpetro to emerge stronger and better positioned
to accelerate its growth profile from these challenging times.
During the period we have undertaken to expand our operative horizons by
agreeing to farm into the onshore Tunisian assets held by Upland Resources
Limited. Tunisian operational activities will be under the direction of Andy
Clifford the President of our subsidiary company Nobel Petroleum USA Inc., who
will be contracted as the Operator. These activities will be conditional upon
various approvals being granted by Tunisian authorities as to the licence
area.
We also took the opportunity to expand our capital base by the placement of
1,166,667 new shares during March 2022 to raise an additional £350,000 in
working capital, and also the appointment of Peterhouse Capital Limited as our
corporate broker. The Board continues to seek accretive options for corporate
development.
In addition, the Company, recognising the global impact of environmental
concerns, has instigated due diligence with regard to expanding its
experiences and core competencies within the fossil environment and petroleum
drilling to specific green energy initiatives securitised with US intellectual
property filings which are being expanded to select jurisdictions
internationally.
We remain confident in our petroleum assets, our US and pending Tunisian
operations, and the Board, to continue to build upon what has been a slightly
less challenging year for the Group.
Olof Rapp
Non-Executive Director, Chairman
Executive Director's Statement
Pennpetro's intention is to become an active independent North American
development production company with the ability to expand operationally
internationally.
The key elements of Pennpetro's strategy for achieving this goal are:
· The creation of value through production development success and
operational strengths, commencing with the Group's City of Gonzales Lease
("COGLA") assets.
· Focusing on commercialisation and monetisation of oil and gas
discoveries, and potentially utilising cash flows from initial projects to
fund the acquisition or development of future projects.
· Active asset portfolio management.
· Positioning the Company as a competent partner of choice to maximise
opportunities and value throughout the E&P lifecycle.
· Asset acquisitions of producing hydrocarbons and suitable green
energy technologies.
Our focus during the latter part of 2021 was to continue to develop our proven
reserve base at our licences in Gonzales, which had been previously curtailed
by Covid-19 and the ensuing pandemic conditions imposed across all of the
United States.
According to the Group's Competent Person's Report ("CPR"), prepared in
December 2017, Pennpetro had a Working Interest in 2,000 Mbbl of oil and 1,000
MMcf of gas across its Gonzales leases. On 6 August 2019, Nobel has increased
its working interest in the portfolio of petroleum interests from 75% to 100%,
thereby its Working Interest is now over 4,000 MBBL of oil and 2,000 MMcf of
gas resulting in a substantive uplift in our valuation metric.
The low oil price environment since mid-2014 presented the opportunity to
acquire leases in our core areas of focus, most notably the prolific Austin
Chalk and Eagleford Shale in South Texas. We have been able to add additional
reserves from the Buda Formation from the drilling of an initial horizontal
well, which as prior reported we have now completed with the operator having
advised the Texas Railroad Commission, the local authority, that the well is
designated as a discovery and commercial unit. Commercial quantities of test
hydrocarbons have been sold from this well
As previously reported, as water from prior extensive flooding in the Buda
oil formation would need to be pumped out in order to regain pressure and
recommence hydrocarbon deliverability from the reservoir, it was decided that
as the Buda operations had now achieved the important positive result of
confirming that this reservoir was now drill confirmed to be oil active over
the acreage and a confirmed secondary recovery reserve, the company's focus
would revert to cleaning out and re-entering the Austin Chalk formation which
we had drilled out to 3,300 feet horizontally and which had tested positive
for both oil and gas recovery. The Austin Chalk formation was drilled out at
approximately 7,200 feet sub- surface, whereas the Buda was intersected at
8,500 feet sub-surface.
This process would require that we case-off the lower Buda formation until
needed to deplete in the future and initiate a work-over rig operation to
re-enter and clean out the horizontally drilled formation leg to initiate
hydrocarbon recovery from this proven oil interval. However, during the
pandemic we continually reviewed our strategic opportunities and decided in
line with the results delivered by some of our close petroleum drilling
neighbours to benefit from their operational experiences and excellent results
to move our focus to the drilling of our second horizontal well (COG#2-H) by
way of a Pad (Production Platform). This would also allow us to drill out
additional horizontal legs by way of extension into the differing Austin Chalk
pathways at a much condensed expense. The same methodology would be utilised
for our third horizontal well (COG#3-H).
As this operational technique was not available to us at the time for our
initial well, COG#1-H, it is now timely to implement this enhanced drilling
arrangement and then return to COG#1-H to recomplete the well into the prior
drill proved production horizon, assessing the economics of the straight
cleanout as currently envisaged, or amplify by utilising the Pad experiences
for extending the lateral out to 5,000 foot as allowable under the initial RRC
drilling authority and capture an additional 3 to 4 fractures which will
impact the EUR.
The wells we have drilled and plan to drill are economic at oil prices sub
US$30/bbl; record production rates have been reported as the horizontal
laterals are extended and the amount of pay in each well has increased;
drilling and completion costs have been significantly reduced; and initial
decline rates during the first 12-18 months of production are lower than those
in other US plays. Over the last two years, we have taken advantage of
depressed market conditions to increase our exposure to these areas.
West Texas Intermediate ("WTI") averaged US$67.99/bbl during 2021, $28.83 per
barrel higher than in 2020. The value of WTI as at 23 June 2022 was
US$105.32/bbl. (source: Bloomberg Markets).
Operations
In terms of our operations, prior to the onset of the pandemic restrictions,
our focus had been on completing our initial horizontal well and organizing
the permitting of our second targeted horizontal well (COG#2-H) situated to
the north of COG#1-H. Our operator has filed formal completion certificates
with the Texas Railroad Commission confirming that the COG#1-H well was being
completed as a producer. As explained, our emphasis has now moved to the
development and drilling of COG#2-H, and our prior stated activity pertaining
to the COG#1-H Austin Chalk oil operations, will be held pending post the
drilling of COG#2-H well into production. Once the process of water removal
from the lower reservoirs of COG#1-H is completed - an operation which we have
decided to complete with the lower formation being cased-off and to re-enter
and take hydrocarbon production from the upper Austin Chalk, from which we
initially took oil.
Financially, the Company used 2021 to further lay the foundations for future
revenue generation.
Reduced economic activity related to the COVID-19 pandemic caused changes in
energy demand and supply patterns in 2020 which aggressively changed late 2021
and will continue to affect these patterns in the future
During early 2020, the oil price was severally antagonised by the emergence of
the Covid-19 world-wide pandemic, leading to the most unsettled oil
environment for many years. However, during 2021 due to both the US shale
industry being severally impacted by the oil price and re-emergence of a
combined consensus at OPEC, there was been not only a re-emergence of price
stability, but a very significant uplift in the oil price to - with many
commentators predicting that this pricing trend will not only stabilise over
the coming year, but further increase yet again to potentially challenge what
we call US$100+ oil. To this bullish scenario, it needs to be further
understood that the Company's oil deliveries benefit from an approximately
US$5-$7 pricing premium for local refiners as they need our slightly heavier
oil to blend out with lighter oil for domestic delivery. With the advent of
the Russian invasion of Ukraine in February 2022, the energy markets have been
placed under extreme pressures with the price of both Brent and West Texas
being constantly in the US$120 zone.
In this stabilised oil price environment, Pennpetro has emerged from the oil
vicissitudes as a low-cost, primarily asset-backed US onshore oil and gas
business, with exciting international interests. Subject to oil prices, market
conditions and sentiment, I remain confident that we can deliver our strategy
by not only acquiring leases in active and producing US onshore plays and
proving up the reserves by drilling new wells, but also by our new strategic
acquisition focus on producing assets and directive into green energy
initiatives.
To this we add our broad approach to engagement within the international
sector by initially farming-into Tunisian assets which hold great promise in
the wake of the ongoing energy deficiencies being experienced within the
European energy environment and which seem destined to remain as such for the
future. This arrangement is conditional upon certain approvals and extension
of the license area being approved by the Tunisian authorities.
This platform is one that has, at its core, the active management of all types
of risk associated with the oil and gas industry. Broadly speaking development
risk is managed by focusing on proven formations; execution risk is managed by
participating in drilling activities with solid experienced industry
personnel, which we have in Houston who have an extensive history in South
Texas petroleum activities, as well as our operations offsetting those of
major industry players; individual well risk is managed by building a
diversified portfolio of leases and wells; meanwhile oil price risk is managed
by focusing on areas that require relatively low oil prices to breakeven and
ensuring our cost base, capital commitments and financing costs remain low,
manageable and flexible.
Our domestic US asset acquisition strategies generally only targets producing
assets and applying proven horizontal technologies to conventional reserves
from a firm productive foundation. This initiative is being driven through our
Houston technical office with a number of asset opportunities having been
investigated, and now with the new era post Covid-19 upon us, we expect
further new opportunities.
Pennpetro's Board currently comprises two Directors, who collectively have
extensive international experience and a proven track record in investment,
corporate finance and business acquisition, operation and development and are
well placed to implement the Company's business objectives and strategy highly
active plays. The appointment of Andy Clifford in April 2020, a highly
seasoned and experienced oil professional as the President of the Company's
operational subsidiary Nobel Petroleum USA, Inc., emphasises the Company's
dedication to its forward development profile.
We believe the Company's Board and US management team is strong in terms of
having the right mix of industry expertise covering all key areas of the
business, including lease acquisition, geology, engineering, and finance.
During June 2021, the Company also concluded a three-year £20 Million shares
subscription facility with the GEM Group, New York (a US$3.4 billion
alternative investment group), through their affiliates. The Company also
agreed to issue 12,000,000 warrants exercisable at 40 pence each as part of
this transaction.
Outlook
In line with our strategy, all our operations are in highly active plays where
the economics of drilling and producing remain attractive at sub-US$30 oil
prices. This highlights the success we have had in taking advantage of the
prior industry downturn to accelerate the positioning of our South Texas
leasehold position in favour of the Austin Chalk and Eagleford Shale. With a
strategic foothold in these prolific, low-cost plays established and a proven
management team in place, we will look to further expand our position in this
US onshore sweet spot, as and when management considers it most advantageous
to do so.
For 2021, our main objectives were to exit the prior pandemic issues and to
build upon the initiative that commenced with the completion of our initial
well, COG#1-H, and to further acquire additional land leases and to progress
the permitting and horizontal development of our second objective well. As
explained, during the pandemic we reassessed our strategic drivers with the
notion of how we were going to deliver our second and third horizontal wells
with a greater technical focus. I look forward to providing updates on our
progress in the year ahead.
Finally, I would like to thank the Board, management team and all our advisers
for their hard work over the last twelve months and also to our shareholders
for their continued support.
Thomas Evans
Executive Director
Operations Report
Summary
Nobel Petroleum USA, Inc., has operational teams on the ground working from
its offices in the City of Gonzales. During the period, one new horizontal
well in which the Group has an interest commenced completion activity. The
Group was planning to initiate an encompassing 3D seismic survey in 2020 with
Dawson Geophysical Company to complement its comprehensive well logs
geological analysis, together with an enhanced programme of additional new
petroleum leasing contiguous to the area, with proposed planning to provide a
further number of permitted drilling locations by year end. However, the onset
of COVID-19 curtailed these plans. Planning is now initiated for the drilling
of the Company's second horizontal well, COG#2-H, for reasons as explained in
detail herein, with the side-track/re-entry to the oil-bearing Lower Austin
Chalk formation in the Company's initial production well, COG #1-H, reserved
for that operation post completion of COG#2-H.
In addition, the Company's recently formed corporate entity, Pennpetro USA
Corp, Inc., through its highly regarded Houston based technical teams, has
continued to examine a number of asset opportunities encompassing producing
hydrocarbons with offsetting strategic leasehold interests capable of both
additional infill and expansionary drilling locations, which has been
amplified by the new era deigned by the global Covid-19 virus pandemic.
SOUTH TEXAS
The Company, through its indirect wholly owned subsidiary, Nobel Petroleum
USA, Inc., holds interests in acreage within active oil and gas plays within
the County of Gonzales, State of Texas: The Austin Chalk, and Eagleford Shale
horizontal development and vertical development of the Buda formation. Nobel
Petroleum USA, Inc. has observed an increase in the value of its interests
within its project acreage, due in part to uplifting its active equity
interests and increased consolidation of its acreage positions, and the
continued worldwide oil price escalations due to prevailing international
concerns.
Of interest is the recent drilling being undertaken to the southern edge of
the Nobel operational area by the Millennium Group, who have averaged over 400
bpd of oil.
Austin Chalk
The play covers an extensive area with over a million acres yet to be
developed and runs all the way from the Pearsale Field south of Gonzales to
the giant Giddings Oil Field, the largest oilfield found in Texas in the past
50 years to the north of Gonzales, and further north onto the North Rayou Jack
Field. Recently, this play has extended into western Louisiana with a number
of major players including EOR Resources and Marathon acquiring strong acreage
positions. The Austin Chalk overlays the oil rich Eagleford Shale, with both
formations capable of interacting with each other, and is a low permeability
fractured reservoir that has been the target for horizontal drilling since the
mid-1980s and consists of interbedded chalks, volcanic ash, and marls. It is
located at drill depths from 7,000 to 8,000 feet. It can be a liquids-rich
play, yielding high volumes of oil and condensate. Initial production rates
can range over 1,000 bopd with ultimate reserves exceeding 500 MBO per well.
Eagleford Shale
The Eagle Ford continues to prove itself as a world-class crude oil formation
having produced in excess of 2.9 billion barrels of crude oil and condensate.
This play is classified as a petroleum system in that it is a self-sourced
reservoir with seals. Migration of Eagleford hydrocarbons was primarily along
bedding planes during the expulsion phase. Absent of traps, hydrocarbons
migrated up-dip or north where vertical natural fractures were encountered.
These natural fractures were associated with the regional fault trends. Here,
the hydrocarbons migrated into the extensively fractured Austin Chalk. Initial
production rates with laterals can exceed 1,000 bopd.
Buda Formation
The Buda is a biomicritic limestone lying below the Eagleford Shale and above
the Del Rio Shale. There has been an increase in the focus on, and the
development of, the Buda formation by a number of US operators in South Texas,
with a number of horizontal wells having been completed. It is a development
we are following closely.
As previously identified, while the Buda has always been acknowledged as a
resource play in South Texas, it sits at the bottom of our drilling prognosis,
as it can be drilled as a separate vertical completion and added to our
overall horizontal programme. Furthermore, its unit spacing can be brought
significantly down to 40 acres, thereby fulfilling a separate in-fill
operation alongside our horizontal drilling focus.
Financial Report
The financial results for the group for the year ended 31 December 2021 are
presented below:
The financial results for the year ended 31 December 2021 show a loss after
tax of US$1,311,707 (2020: loss US$1,046,512).
The majority of the cost contributing to the Group's loss for the year
included legal and professional fees, loan arrangement fees, directors'
emoluments and interest charges, which were in line with the Board's
expectations.
The Group's borrowings at 31 December 2021 were US$4,256,262 (2020:
US$3,727,995). In addition, as reported in the prior year, the repayment date
for the loan facility with Petroquest Energy Limited was extended a further
year to 31 December 2023.
The Group had cash balances at 31 December 2021 of US$1,828 (2020: US$1,329)
and short-term investments of US$34,914 (2020: US$49,152). The year-on-year
movement in cash and short-term investments was primarily a result of cash
used in operating activities and development expenditure.
As at 31 December 2021, the Group had US$878,000 (2020 US$1.1m) still
available to draw under its loan facility of US$5m with Petroquest Energy
Limited.
In addition, the Group had a receivables balance at 31 December 2021 of
US$309,456 (2020: US$308,943).
Additions of US$617 were capitalised in property, plant and equipment during
2021 on the Petroleum mineral leases. As at 31 December 2021, total property,
plant and equipment held by the Group was US$1,384,931 (2020: US$1,384,314).
No expenditure was capitalised during the year, and therefore the cumulative
drilling-related expenditure capitalised in intangible assets remained at
US$4,233,890 at 31 December 2021 (2020: US$4,233,890).
The Company will now immediately apply to the Financial Conduct Authority
("the FCA") for a lifting of the temporary suspension which was put in place
on 1 July 2022 at the request of the Company, and for the full restoration of
its share trading.
The annual report and financial statements for the year ended 31 December 2021
are available to download on the Company's website at
www.pennpetroenergy.co.uk (http://www.pennpetroenergy.co.uk) .
ENQUIRIES
Pennpetro Energy plc
Thomas Evans tme@pennpetroenergy.co.uk (mailto:tme@pennpetroenergy.co.uk)
Peterhouse Capital Limited
Lucy Williams +44 (0) 20 7469 0930
Duncan Vasey +44 (0) 20 7220 9797
Instinctif Partners pennpetro@instinctif.com (mailto:pennpetro@instinctif.com)
Galyna Kulachek +44 (0) 20 7457 2020
Sarah Hourahane
NOTES TO EDITORS
Pennpetro Energy is an independent oil and gas company focusing on production
in the Gonzales Oil Field in Texas, USA. Shares in the company were admitted
to the Official List of the London Stock Exchange by way of a Standard Listing
on 21 December 2017.
Further information on the Company can be found at www.pennpetroenergy.co.uk
(http://www.pennpetroenergy.co.uk)
IMPORTANT NOTICE - FORWARD-LOOKING STATEMENTS
This announcement may include statements that are, or may be deemed to be,
"forward-looking statements". These forward-looking statements may be
identified by the use of forward-looking terminology, including the terms
"believes", "estimates", "plans", "projects", "anticipates", "expects",
"intends", "may", "will" or "should" or, in each case, their negative or other
variations or comparable terminology, or by discussions of strategy, plans,
objectives, goals, future events or intentions. These forward-looking
statements include all matters that are not historical facts and involve
predictions. Forward-looking statements may and often do differ materially
from actual results. In addition, even if results or developments are
consistent with the forward-looking statements contained in this announcement,
those results or developments may not be indicative of results or developments
in subsequent periods. Any forward-looking statements reflect the Group's
current view with respect to future events and are subject to risks relating
to future events and other risks, uncertainties and assumptions relating to
the Group's business, results of operations, financial position, liquidity,
prospects, growth or strategies and the industry in which it operates.
Forward-looking statements speak only as of the date they are made and cannot
be relied upon as a guide to future performance.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 December 2021
Year ended Year ended
31 December
31 December
2020
2021
US$ US$
Continuing Operations
Revenue - 66,798
Administrative expenses (1,021,046) (1,378,164)
Operating Loss (1,021,046) (1,311,366)
Finance income - 2,058
Finance costs (290,661) 262,796
Loss before Tax (1,311,707) (1,046,512)
Income tax - -
Loss for the year attributable to owners of the parent (1,311,707) (1,046,512)
Other Comprehensive Income:
Items that may be reclassified subsequently to profit or loss
Currency translation differences (6,838) 79,008
Other Comprehensive Income for the Year (6,838) 79,008
Total Comprehensive Income for the Year attributable to the owners of the (1,318,545) (967,504)
parent
Loss per share attributable to the owners of the parent during the year
Basic (cents per share) (1.72) (1.39)
Diluted (cents per share) (1.72) (1.39)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 December 2021
31 December 31 December
2021
2020
US$ US$
ASSETS
Non-Current Assets
Property, plant and equipment 1,384,931 1,384,314
Intangible assets 4,233,890 4,233,890
Total Non-Current Assets 5,618,821 5,618,204
Current Assets
Trade and other receivables 309,456 308,943
Short term investments 34,914 49,152
Cash and cash equivalents 1,828 1,329
Total Current Assets 346,198 359,424
TOTAL ASSETS 5,965,019 5,977,628
EQUITY AND LIABILITIES
Equity Attributable to Owners of Parent
Share capital 979,427 979,427
Share premium 4,121,700 4,121,700
Convertible reserve 6,021,575 6,021,575
Reorganisation reserve (6,578,229) (6,578,229)
Foreign exchange reserve 133,619 140,457
Share based payment reserve - 838,909
Retained losses (4,013,864) (3,770,290)
Total Equity 664,228 1,753,549
Current Liabilities
Borrowings 4,256,262 3,727,995
Trade and other payables 1,044,529 496,084
Total Current Liabilities 5,300,791 4,224,079
TOTAL EQUITY AND LIABILITIES 5,965,019 5,977,628
COMPANY STATEMENT OF FINANCIAL POSITION
As at 31 December 2021
31 December 31 December
2021
2020
US$ US$
ASSETS
Non-Current Assets
Investments in subsidiaries 7,038,631 7,104,824
Property, plant and equipment - -
Total Non-Current Assets 7,038,631 7,104,824
Current Assets
Trade and other receivables 3,093,418 3,062,112
Short term investments 34,914 49,152
Cash and cash equivalents - -
Total Current Assets 3,128,332 3,111,264
TOTAL ASSETS 10,166,963 10,216,088
EQUITY AND LIABILITIES
Equity Attributable to Shareholders
Share capital 979,427 979,427
Share premium 4,121,700 4,121,700
Convertible reserve 6,021,575 6,021,575
Foreign exchange reserve 575,249 648,279
Share based payment reserve - 838,909
Retained losses (2,866,030) (2,942,712)
Total Equity 8,831,921 9,667,178
Current Liabilities
Trade and other payables 1,335,042 548,910
Total Current Liabilities 1,335,042 548,910
TOTAL EQUITY AND LIABILITIES 10,166,963 10,216,088
The Company has elected to take the exemption under Section 408 of the
Companies Act 2006 from presenting the parent company Statement of
Comprehensive Income. The loss for the parent company for the year was
US$991,451 (2020: US$639,524).
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2021
Attributable to the owners of the parent
Group Share Share Convertible Reorganisation Foreign Share Based Payments Reserve Retained Losses Total
Capital
Premium
Reserve
Equity
Reserve Exchange
Reserve
US$ US$ US$ US$ US$ US$ US$ US$
Balance at 1 January 2020 926,711 1,538,636 6,021,575 (6,578,229) 61,449 438,641 (2,723,778) (314,995)
Loss for the year - - - - - - (1,046,512) (1,046,512)
Foreign currency translation differences - - - - 79,008 - - 79,008
Total comprehensive loss for the year - - - - 79,008 - (1,046,512) (967,504)
Shares issued 52,716 2,583,064 - - - - - 2,635,780
Share based payments - - - - - 400,268 - 400,268
Balance at 31 December 2020 979,427 4,121,700 6,021,575 (6,578,229) 140,457 838,909 (3,770,290) 1,753,549
Loss for the year - - - - - - (1,311,707) (1,311,707)
Foreign currency translation differences - - - - (6,838) - - (6,838)
Total comprehensive loss for the year - - - - (6,838) - (1,311,707) (1,318,545)
Share based payments - - - - - 229,224 - 229,224
Lapse of share options - - - - - (1,068,133) 1,068,133 -
Balance at 31 December 2021 979,427 4,121,700 6,021,575 (6,578,229) 133,619 - (4,013,864) 644,228
COMPANY STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2021
Company Share Share Convertible Share Based Payments Reserve Foreign Exchange Reserve Retained Total
Capital Premium Reserve Losses Equity
US$ US$ US$ US$ US$ US$ US$
Balance at 1 January 2020 926,711 1,538,636 6,021,575 438,641 319,749 (2,303,188) 6,942,124
Loss for the year - - - - - (639,524) (639,524)
Other Comprehensive Income - - - - 328,530 - 328,530
Total comprehensive loss for the - - - - 328,530 (639,524) (310,994)
Year
Shares issued 52,716 2,583,064 - - - - 2,635,780
Share based payments - - - 400,268 - - 400,268
Balance at 31 December 2020 979,427 4,121,700 6,021,575 838,909 648,279 (2,942,712) 9,667,178
Loss for the year - - - - - (991,451) (991,451)
Other Comprehensive Income - - - - (73,030) - (73,030)
Total comprehensive loss for the - - - - (73,030) (991,451) (1,064,481)
Year
Share based payments - - - 229,224 - - 229,224
Lapse of share options - - - (1,068,133) - 1,068,133 -
Balance at 31 December 2021 979,427 4,121,700 6,021,575 - 575,249 (2,866,030) 8,831,921
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 31 December 2021
Year ended Year ended
31 December
31 December
2021 2020
US$ US$
Cash Flows from Operating Activities
Loss before tax (1,311,707) (1,046,512)
Depreciation - 1,536
Amortisation - 75,094
Foreign exchange (8,078) 1,068,243
Write off - (130,746)
Finance income - (2,058)
Finance costs 290,661 (262,796)
Share base payment charge 229,224 362,730
(799,900) (65,491)
Changes to working capital
(Increase)/decrease in trade and other receivables (511) 47,985
Increase in trade and other payables 548,671 230,113
Cash (used)/ generated in operations (251,740) 343,589
Interest paid - (271,189)
Net Cash used in Operating Activities (251,740) 72,400
Cash Flows from Investing Activities
Increase in Development expenditure - (67,153)
Purchases of property, plant and equipment (617) (23,151)
Disposal of short-term investments 14,238 10,849
Net Cash (used in)/ generated from Investing Activities 13,621 (79,455)
Cash Flows from Financing Activities
Loan repaid (65,938) -
Advances received from borrowings 304,556 -
Net Cash generated from/ (used in) Financing Activities 238,618 -
Net Increase/(Decrease) in Cash and Cash Equivalents 499 (7,055)
Cash and cash equivalents at the beginning of the year 1,329 8,384
Net increase/ (decrease) in cash and cash equivalents 499 (7,055)
Cash and Cash Equivalents at the End of the Year 1,828 1,329
COMPANY STATEMENT OF CASH FLOWS
For the year ended 31 December 2021
Year ended Year ended
31 December
31 December
2021
2020
$ $
Cash Flows from Operating Activities
Loss before tax (991,451) (639,524)
Depreciation - 959
Share based payments 229,224 362,730
Unrealised foreign exchange (6,838) 160,386
(769,065) (115,449)
Changes to working capital
Increase in trade and other receivables (31,306) (196,597)
Increase in trade and other payables 786,133 301,197
Cash used in operations (14,238) (10,849)
Net cash used in Operating Activities (14,238) (10,849)
Cash Flows from Investing Activities
Disposal of short-term investments 14,238 10,849
Net Cash used in Investing Activities 14,238 10,849
Cash Flows from Financing Activities
Proceeds from issue of ordinary shares - -
Issue costs - -
Net Cash generated from Financing Activities - -
Net movement in Cash and Cash Equivalents - -
Cash and cash equivalents at the beginning of the year - -
Exchange gain on cash and cash equivalents - -
Net Decrease in cash and cash equivalents - -
Cash and Cash Equivalents at the End of the Year - -
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