REG - Petrel Resources PLC - Preliminary Results for the Year Ended 31 Dec 2024
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RNS Number : 6499N Petrel Resources PLC 20 June 2025
20 June 2025
Petrel Resources plc
("Petrel" or the "Company")
Preliminary Results for the Year Ended 31(st) December 2024
Petrel Resources, the hydrocarbon explorer with interests in Iraq and Ghana
today announces its unaudited preliminary results for the year ending 31
December 2024.
The Company expects to publish its 2024 audited Annual Report & Accounts
and Notice of AGM next week, which will be notified in due course.
For further information please visit http://www.petrelresources.com/
(http://www.petrelresources.com/) or contact:
Enquiries:
Petrel Resources
David Horgan, Chairman +353 (0) 1 833 2833
John Teeling, Director
Strand Hanson Limited- Nominated &
Financial Adviser
Richard Johnson +44 (0) 20 7409 3494
James Bellman
Robert Collins
Novum Securities Limited - Broker +44 (0) 20 399 9400
Colin Rowbury
BlytheRay - PR +44 (0) 207 138 3204
Megan Ray
Teneo +353 (0) 1 661 4055
Luke Hogg
Mollie McLernon
Molly Mooney
CHAIRMAN'S STATEMENT
Petrel is a hydrocarbon explorer with interests in Iraq, and Ghana.
Highlights
Market overview
• 2024 set consumption records for oil and LNG consumption, but oil prices
fell in early 2025 due to the 'Trump tariff war' triggering fears of reduced
demand.
• Uncertainty increases risk and delays investment decisions.
• Available fiscal terms, however, reflect the boom conditions between
2003 and 2014 rather than current market conditions. States have been slow
to update contractual terms to align interests, which deters development.
• Oil explorers are not yet attracting strong investor interest in western
markets. Majors buy shares back and issue dividends rather than invest the
c. $610 billion necessary to supply future demand.
Assets overview
• In Ghana, ratification discussions with the Ghanaian authorities on Tano
acreage have re-commenced - though acreage adjustments are likely, and
governance remains an issue.
• In Iraq, there may be early opportunities to recover gas and liquids
currently being flared.
• Petrel submitted a proposal to undertake contractor obligations on a
relinquished Block from the 4(th) Bid Round.
• An updated Merjan oil field development proposal has been prepared.
• Iraqi oil output was c.4 million barrels daily in Spring 2025, with export
growth constrained by contractual terms and OPEC+ agreements.
• Petrel seeks direct negotiations, where possible, rather than bid
rounds, which are expensive and high risk, thus inappropriate for juniors.
Outlook
• The board is considering expansion opportunities in oil & gas, and
energy-related projects worldwide. Our group participates in the EU
Commission's Critical Resource Minerals' Initiative, which offers attractive
diversification given current market conditions. We offer an established
record and potentially high liquidity and capital appreciation for the right
story. As investors re-focus on 'hard industries' and cash flow, this is a
time of opportunity.
Recent months remind investors of some eternal truths: market uncertainty has
increased, amid armed conflict and trade wars. Western dependence on Chinese
processing of Critical Resource Minerals means that efforts to reduce
dependence on fossil fuels will not reduce exposure to distant sources and
supply chains.
Policy-makers have discovered the limits of their bold dreams of a Green
transition: energy costs have risen rather than fallen. The new technologies
bring new headaches: electricity storage turns out to be prohibitively
expensive for grid-scale coverage. EVs continue to penetrate markets but are
price-competitive only in China. But developed economies prefer to protect
their automotive sectors rather than import cheap Chinese EVs. In such
policy myopia lies the roots of the next oil boom.
Like all previous energy transitions, Green sources turn out to be additive to
rather than replacing traditional, reliable fuels - which will continue to
dominate the 21(st) century:
During 2024/25 there were a serious of close-calls, power failures, and
brown-outs globally, culminating in the Iberian black-outs of April 2025.
These were not the routine power failures common in the global south, or
planned "load-shedding" in South Africa.
These power failures were caused by over-dependence on intermittent renewable
generation, allied with inadequate investment in legacy grids designed for
centralised, reliable world-scale plants fuelled traditionally by coal, and
then increasingly by nuclear and natural gas. The failure was not that of
renewable generation per se, since hydro-power or geothermal generally provide
reliable supplies.
The problem was with unpredictable intermittent generation, which produces
Direct Current, rather than Alternating Current, and consequently does not
deliver significant inertia to protect against periodic interruptions.
Battery storage, is expensive and would require vast quantities of Critical
Resource Minerals to adequately back a grid up. Traditional storage methods
such as hydro are available for only a small percentage of demand. It turns
out that the intermittent renewable generation on which the "Green transition"
relies is only suitable for up to 30% of demand which is the natural surplus
in electrical systems. Beyond that point, costs and risks soar.
This means that Natural Gas will continue to dominate electrical generation,
both directly, and as essential back-up for the reliability modern economies
require. In price-sensitive markets, coal will continue to dominate.
Nuclear power is also an effective solution, but involves bureaucratic
planning requirements, up-front costs, and is opposed politically in some
developed societies.
Consumption data bear this out: recent years have seen record demand for oil
and even coal. LNG is now 55% of total traded gas, helped by malicious
damage to pipelines and the time needed to extend more gas pipelines to Asian
consumers.
Markets are always transitioning, which is why an average 3.75% global
economic growth translates into only 2.1% energy consumption growth due to
greater efficiencies. But every energy transition in history has added new
fuels rather than substituted them. Legislators are unlikely to achieve what
market forces cannot.
And yet there has been a dramatic under-investment in reliable energy
exploration & development since 2014. This is also true even of those
Critical Resource Minerals necessary to fuel the new industries, which include
Copper and Nickel as well as Lithium, Cobalt and the other 50-odd minerals.
To maintain adequate oil & gas supplies the world needs about $610 billion
of investment (depending on materials' costs and rig-rates), but the industry
invests only c.$360 billion - much of it in existing properties and basins of
super-majors and National Oil Companies. There has been little frontier
exploration since 2015. Most of the developing world is starved of
investment. Instead, producers prefer to issue dividends and buy shares
back.
Part of the reason is that politicians also display myopia about how to
deliver effective exploration. Risk-investors require a risk-adjusted rate
of return. The higher the uncertainty, the more return investors require.
Best results are achieved by aligning interests, and linking taxes to profits,
rather than requiring up-front payments, or royalties.
Formal bid rounds, involving up-front fees, qualification criteria designed
for majors, and limited upside, are not how you expedite projects, keep cost
control and optimise reservoir recovery. That is why Petrel prefers direct
negotiations, where possible, after which we can bring partners via farm-ins.
But our industry is cyclical, and majors' caution offers opportunities for
independents - who have always pioneered new approaches, from offshore
drilling to fracking. So far, the emerging supply constraints have not
filtered through to exploration & development. But when they do, there
will be a sharp reversal in sentiment, rewarding those farsighted enough to
develop attractive acreage ripe for exploitation.
We have received several approaches offering new oil & gas exploration
projects but also in Helium and other energy-related projects. So far, all
prospects have fallen short on legal title, price expectations, or financing
terms. There is no value for Petrel shareholders in over-paying.
Petrel is an EU company, and our involvement in the EU Commission's Critical
Resource Minerals' "Team Europe" has fostered relationships with industrial
buyers, financing institutions and key decision-makers. There are
surprisingly few juniors able to swim in all these seas.
In the meantime, there is market interest in Petrel's strong shareholder
following and liquidity - especially at times of intense news-flow.
Accordingly, we continue to explore expansion opportunities.
Financing
There are contrarian investors keen to fund the right project. As during the
pandemic and previous times of turbulence, directors and their supporters are
open to covering working capital needs, and are prepared to participate in any
necessary, future fundings.
David Horgan
Chairman
19 June 2025
PETREL RESOURCES PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
2024 2023
€ €
Administrative expenses (283,245) (304,453)
Impairment of Exploration and Evaluation assets (186,633) (186,633)
Operating loss (469,878) (491,086)
Loss before taxation (469,878) (491,086)
Income tax expense - -
Loss for the financial year (469,878) (491,086)
Other comprehensive income - -
Total comprehensive income for the financial year (469,878) (491,086)
Earnings per share attributable to the ordinary equity holders of the parent 2024 2023
Cents Cents
Loss per share - basic and diluted (0.26) (0.28)
PETREL RESOURCES PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2024
2024 2023
€ €
Assets
Non-current assets
Intangible assets 559,901 746,534
559,901 746,534
Current assets
Trade and other receivables 9,852 10,354
Cash and cash equivalents 4,838 35,667
14,690 46,021
Liabilities
Current liabilities
Trade and other payables (1,165,124) (1,019,524)
Total liabilities (1,165,124) (1,019,524)
Net liabilities (590,533) (226,969)
Equity
Share capital 2,298,398 2,235,898
Capital conversion reserve fund 7,694 7,694
Capital redemption reserve 209,342 209,342
Share premium 21,863,595 21,819,781
Share based payment reserve 26,871 26,871
Retained deficit (24,996,433) (24,526,555)
Total equity (590,533) (226,969)
PETREL RESOURCES PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2024
Share Capital Share Premium Capital Redemption Reserve Capital Conversion Reserve Fund Share Based Payment Reserve Retained Deficit Total
€ € € € € € €
At 1 January 2023 2,223,398 21,811,520 209,342 7,694 26,871 (24,035,469) 243,356
Issue of shares 12,500 8,261 - - - - 20,761
Total comprehensive income for the financial year - - - - - (491,086) (491,086)
At 31 December 2023 2,235,898 21,819,781 209,342 7,694 26,871 (24,526,555) (226,969)
Issue of shares 62,500 43,814 - - - - 106,314
Total comprehensive income for the financial year - - - - - (469,878) (469,878)
At 31 December 2024 2,298,398 21,863,595 209,342 7,694 26,871 (24,996,433) (590,533)
PETREL RESOURCES PLC
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2024
2024 2023
€ €
Cash flows from operating activities
Loss for the year (469,878) (491,086)
Impairment 186,633 186,633
Foreign exchange 1,683 1,474
Operating cashflow before movements in working capital (281,562) (302,979)
Increase in trade and other payables 145,600 129,597
Decrease in trade and other receivables 502 23,453
Cash used in operations 146,102 153,050
Net cash used in operating activities (135,460) (149,929)
Investing activities
Payments for exploration and evaluation assets - -
Net cash used in investing activities - -
Financing activities
Shares issued 106,314 20,761
Net cash generated from financing activities 106,314 20,761
Net cash decrease in cash and cash equivalents (29,146) (129,168)
Cash and cash equivalents at the beginning of year 35,667 166,309
Exchange gains / (loss) on cash and cash equivalents (1,683) (1,474)
Cash and cash equivalents at the end of the year 4,838 35,667
NOTES:
1. ACCOUNTING POLICIES
There were no changes in accounting policies from those used to prepare the
Group's Annual Report for financial year ended 31 December 2023. The
financial statements have been prepared in accordance with International
Financial Reporting Standards (IFRSs) as adopted by the European Union and in
accordance with the provisions of the Companies Act 2014.
2. LOSS PER SHARE
Basic loss per share is computed by dividing the loss after taxation for the
year attributable to ordinary shareholders by the weighted average number of
ordinary shares in issue and ranking for dividend during the year. Diluted
loss per share is computed by dividing the loss after taxation for the year by
the weighted average number of ordinary shares in issue, adjusted for the
effect of all dilutive potential ordinary shares that were outstanding during
the year.
The following tables set out the computation for basic and diluted earnings
per share (EPS):
2024 2023
€ €
Numerator
For basic and diluted EPS Loss after taxation (469,878) (491,086)
Denominator No. No.
For basic and diluted EPS 183,803,307 177,899,197
Basic EPS (0.26c) (0.28c)
Diluted EPS (0.26c) (0.28c)
Basic and diluted loss per share are the same as the effect of the outstanding
share options and warrants is anti-dilutive.
3. GOING CONCERN
The Group incurred a loss for the financial year of €469,878 (2023: loss of
€491,086) and had net current liabilities of €1,150,434 (2023: €973,503)
at the balance sheet date. These conditions as well as those noted below,
represent a material uncertainty that may cast significant doubt on the Group
and Company's ability to continue as a going concern.
Included in current liabilities is an amount of €1,037,531 (2023:
€947,531) owed to key management personnel in respect of remuneration due at
the balance sheet date. Key management have confirmed that they will not seek
settlement of these amounts in cash for a period of at least one year after
the date of approval of the financial statements or until the Group has
generated sufficient funds from its operations after paying its third party
creditors.
The Group and Company had a cash balance of €4,838 (2023: €35,667) at the
balance sheet date. The directors have prepared cashflow projections for a
period of at least twelve months from the date of approval of these financial
statements which indicate that additional finance will be required to fund
working capital requirements and develop existing projects. As the Group is
not revenue or cash generating it relies on raising capital from the public
market.
In January 2024, the Group received €106,313 (£90,000) from the exercise of
warrants. On 6 March 2025 the Company raised €298,586 (£250,000) via a
placing of shares. Further information is detailed in Note 24.
These conditions as well as those noted below, represent a material
uncertainty that may cast significant doubt on the Group and Company's ability
to continue as a going concern.
As in previous years the Directors have given careful consideration to the
appropriateness of the going concern basis in the preparation of the financial
statements and believe the going concern basis is appropriate for these
financial statements. The financial statements do not include the adjustments
that would result if the Group and Company were unable to continue as a going
concern.
4. INTANGIBLE ASSETS
Group Group
2024 2023
€ €
Exploration and evaluation assets:
Cost:
At 1 January 746,534 933,167
Additions - -
Impairment (186,633) (186,633)
At 31 December 559,901 746,534
Carrying amount:
At 31 December 559,901 746,534
Segmental analysis Group Group
2024 2023
€ €
Ghana 559,901 746,534
Iraq - -
559,901 746,534
Exploration and evaluation assets relate to expenditure incurred in
exploration in Ghana. The directors are aware that by its nature there is an
inherent uncertainty in Exploration and evaluation assets and therefore
inherent uncertainty in relation to the carrying value of capitalized
exploration and evaluation assets.
During 2018 the Group resolved the outstanding issues with the Ghana National
Petroleum Company (GNPC) regarding a contract for the development of the Tano
2A Block. The Group has signed a Petroleum Agreement in relation to the block
and this agreement awaits ratification by the Ghanian government.
As ratification has not yet been achieved in the current year the directors,
as a matter of prudence, opted to write down 20% of the carrying value of the
Tano 2A Block historic expenditure. Accordingly, an impairment charge of
€186,633 was recorded in the current year and the prior year.
Relating to the remaining exploration and evaluation assets at the financial
year end, the directors believe there were no facts or circumstances
indicating that the carrying value of the intangible assets may exceed their
recoverable amount and thus no impairment review was deemed necessary by the
directors. The realisation of these intangible assets is dependent on the
successful discovery and development of economic reserves and is subject to a
number of significant potential risks, as set out below:
· licence obligations;
· exchange rate risks;
· uncertainty over development and operational costs;
· political and legal risks, including arrangements with Governments
for licences, profit sharing and taxation;
· foreign investment risks including increases in taxes, royalties and
renegotiation of contracts;
· financial risk management; and
· ability to raise finance.
5. OTHER PAYABLES
Group Group
2024 2023
€ €
Amounts due to key personnel 1,037,531 947,531
Related parties 19,039 -
Accruals 21,000 16,500
Other payables 87,554 55,493
1,165,124 1,019,524
It is the Group's normal practice to agree terms of transactions, including
payment terms, with suppliers. It is the Group's policy that payments are made
between 30 - 45 days and suppliers are required to perform in accordance with
the agreed terms. The Group has financial risk management policies in place to
ensure that all payables are paid within the credit timeframe.
Key management personnel have confirmed that they will not seek settlement in
cash of the amounts due to them in relation to remuneration for a period of at
least one year after the date of approval of the financial statements or until
the Group has generated sufficient funds from its operations after paying its
third party creditors.
6. SHARE CAPITAL
2024 2024 2023 2023
Number € Number €
Authorised
Ordinary shares of €0.0125 each
800,000,000 10,000,000 800,000,000 10,000,000
Ordinary Shares - nominal value of €0.0125
Allotted, called-up and fully paid:
Number Share Capital Share Premium
€ €
At 1 January 2023 177,871,800 2,223,398 21,811,520
Issued during the year 1,000,000 12,500 8,261
At 31 December 2023 178,871,800 2,235,898 21,819,781
Issued during the year 5,000,000 62,500 43,814
At 31 December 2024 183,871,800 2,298,398 21,863,595
On 21 December 2023 a total of 1,000,000 warrants were exercised at a price of
1.8p per warrant.
On 5 January 2024 a total of 5,000,000 warrants were exercised at a price of
1.8p per warrant.
7. SHARE BASED PAYMENTS
The Group issues equity-settled share-based payments to certain directors and
individuals who have performed services for the Group. Equity-settled
share-based payments are measured at fair value at the date of grant. Fair
value is measured by the use of a Black-Scholes valuation model.
Options
The Group plan provides for a grant price equal to the average quoted market
price of the ordinary shares on the date of grant. The options vest
immediately.
The options outstanding at 31 December 2024 have a weighted average remaining
contractual life of 3 years.
31 December 2024 31 December 2023
Options Weighted average exercise price in pence Options Weighted average exercise price in pence
Outstanding at beginning of year 500,000 10.50 500,000 10.50
Granted during the year - - - -
Outstanding at end of year 500,000 10.50 500,000 10.50
Warrants
31 December 2024 31 December 2023
Warrants Weighted average exercise price in pence Warrants Weighted average exercise price in pence
Outstanding at beginning of year 19,833,333 1.8 20,833,333 1.8
Issued -
Exercised (5,000,000) 1.8 (1,000,000) 1.8
Expired (14,833,333) 1.8
Outstanding at end of year - 19,833,333 1.8
On 5 January 2024 a total of 5,000,000 warrants were exercised at an exercise
price of 1.8p per warrant. Further information is detailed in note 6 above.
On 24 October 2024 the remaining 14,833,333 warrants expired.
8. POST BALANCE SHEET EVENTS
On 6 March 2025 the Company announced that it had raised £250,000 (before
expenses) through a placing of 23,809,523 new ordinary shares (the "Placing
Shares") at a placing price of 1.05p per Placing Share ("Placing"). Each
Placing Share has one warrant attached with the right to subscribe for one new
ordinary share at 2p per new ordinary share for a period of two years.
9. ANNUAL GENERAL MEETING
The Company's Annual General Meeting will be held on 30 July 2025 in the Hotel
Riu Plaza The Gresham, 23 O'Connell Street Upper, Dublin 1, D01 C3W7 at 12.00
pm.
10. GENERAL INFORMATION
The financial information prepared using accounting policies consistent with
International Financial Reporting Standards ("IFRS") as adopted by the
European Union included in this preliminary statement does not constitute the
statutory financial statements for the purposes of Chapter 4 of part 6 of the
Companies Act 2014. Full statutory statements for the year ended 31
December 2024 prepared in accordance with IFRS, upon which the auditors have
given an unqualified report, have not yet been filed with the Registrar of
Companies. The financial information for 2023 is derived from the financial
statements for 2023 which have been filed with the Registrar of
Companies. The auditors had reported on the 2023 statements; their report was
unqualified.
A copy of the Company's Annual Report and Accounts for 2024 will be mailed
shortly only to those shareholders who have elected to receive
it. Otherwise, shareholders will be notified that the Annual Report will be
available on the website at www.petrelresources.com
(http://www.petrelresources.com) . Copies of the Annual Report will also be
available for collection from the Company's registered office, 162 Clontarf
Road, Dublin 3, Ireland.
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