REG - Petrel Resources PLC - Results for the Year Ended 31st December 2022
20/06/2023 07:00
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RNS Number : 2102D Petrel Resources PLC 20 June 2023
162 Clontarf Road
Dublin 3,
D03 F6T0
Ireland
Tel: +353 1 833 2833
Fax: +353 1 833 3505
info@petrelresources.com
www.petrelresources.com
20 June 2023
Petrel Resources plc
("Petrel" or "the Company")
Audited Results for the Year Ended 31(st) December 2022
Petrel announces its results for the year ended 31(st) December 2022.
A copy of the Company's Annual Report and Accounts for 2022 will be mailed
shortly only to those shareholders who have elected to receive it and extracts
are set out in the announcement below. 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.
The Company's Annual General Meeting will be held on 27(th) July 2023 in the
Hotel Riu Plaza The Gresham, 23 O'Connell Street Upper, Dublin 1, D01 C3W7 at
12.00 pm.
ENDS
For further information please visit http://www.petrelresources.com/
(http://www.petrelresources.com/) or contact:
Enquiries:
Petrel Resources
+353 (0) 1 833 2833
David Horgan, Chairman
John Teeling, Director
Nominated Adviser and Broker
Beaumont Cornish - Nominated Adviser +44 (0) 020 7628 3396
Roland Cornish
Felicity Geidt
Novum Securities Limited - Broker
Colin Rowbury
+44 (0) 20 399 9400
BlytheRay - PR +44 (0) 207 138 3206
Megan Ray
Said Izagaren +44 (0) 207 138 3553
+44 (0) 207 138 3208
Teneo
Luke Hogg +353 (0) 1 661 4055
Alan Tyrrell +353 (0) 1 661 4055
The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 ("MAR"). The person who arranged for the release of this
announcement on behalf of the Company was Jim Finn, Director.
CHAIRMAN'S STATEMENT
Europe is de-industrialising, due to policies hostile to reliable fuels. But
global oil & gas demand continues to recover, as Asia and especially China
recovers from C-19 policies, including lock-downs.
The withdrawal of most major oil and gas players from non-core basins killed
the farm-out market from 2014. Majors who had entered projects in OPEC
specific countries, often on uneconomic terms, now seek to exit marginally
profitable or non-core projects as they buy shares back and issue record
dividends instead of investing in exploration activities.
At the same time, there has been a shortage of institutional investor finance
in London for several years now. Funds are available, but mainly from
private clients and traders who demand discounts. In such circumstances, we
have avoided issuing stock and incurring expensive work commitments which
would only have diluted shareholders by issuing shares at too low a price.
It is wiser to keep our powder dry and prepare a portfolio of early-stage
projects to fund or farm out when markets turn.
However, it is worth remembering that Europe is now less than 15% of global
energy consumption. BRICS+ now have a larger GDP than the G-7. Europe is
in decline, but Asia is not. The future is in the emerging economies.
Australian brokers and investors have profited through the liquidity of
Petrel's sister company, Clontarf Energy plc. They are pressing Petrel
Resources plc to open its books for greater Australian and Asian
participation. So far, the board has been keen to avoid dilution, but as we
roll out high-potential new projects, it may be worthwhile to accept funding -
hopefully at much higher share prices.
Petrel has assessed a number of expansion projects in recent months. So far,
none have completed necessary due diligence or in some cases demonstrated
available funds on satisfactory terms.
Financing
The directors and their supporters have funded working capital needs during
C-19, etc. and are prepared to participate in any necessary, future financing.
David Horgan
Chairman
19 June 2023
PETREL RESOURCES PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022
2022 2021
€ €
Administrative expenses (310,813) (322,077)
-
Operating loss (310,813) (322,077)
Loss before taxation (310,813) (322,077)
Income tax expense - -
Loss for the financial year (310,813) (322,077)
Other comprehensive income - -
Total comprehensive income for the financial year (310,813) (322,077)
Earnings per share attributable to the ordinary equity holders of the parent 2022 2021
Cents Cents
Loss per share - basic and diluted (0.19) (0.21)
PETREL RESOURCES PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2022
2022 2021
€ €
Assets
Non-current assets
Intangible assets 933,167 933,167
933,167 933,167
Current assets
Trade and other receivables 33,807 25,663
Cash and cash equivalents 166,309 101,843
200,116 127,506
Liabilities
Current liabilities
Trade and other payables (889,927) (792,430)
Total liabilities (889,927) (792,430)
Net assets 243,356 268,243
Equity
Share capital 2,223,398 1,962,981
Capital conversion reserve fund 7,694 7,694
Capital redemption reserve 209,342 209,342
Share premium 21,811,520 21,786,011
Share based payment reserve 26,871 26,871
Retained deficit (24,035,469) (23,724,656)
Total equity 243,356 268,243
PETREL RESOURCES PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2022
Capital Conversion Reserve Fund Share Based Payment Reserve
Capital Redemption Reserve € €
Share Capital Share Premium € Retained Deficit
€ € € Total
€
At 1 January 2021 1,962,981 21,786,011 209,342 7,694 26,871 (23,402,579) 590,320
Total comprehensive income for the financial year - - - - - (322,077) (322,077)
At 31 December 2021 1,962,981 21,786,011 209,342 7,694 26,871 (23,724,656) 268,243
Issue of shares 260,417 25,509 - - - - 285,926
Total comprehensive income for the financial year - - - - - (310,813) (322,077)
At 31 December 2022 2,223,398 21,811,520 209,342 7,694 26,871 (24,035,469) 243,356
PETREL RESOURCES PLC
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2022
2022 2021
€ €
Cash flows from operating activities
Loss for the year (310,813) (322,077)
Foreign exchange 2,527 (9,622)
Operating cashflow before movements in working capital (308,286) (331,699)
Increase in trade and other payables 97,497 81,889
(Increase)/decrease in trade and other receivables (8,144) 9,331
Cash used in operations 89,353 91,220
Net cash used in operating activities (218,933) (240,479)
Investing activities
Payments for exploration and evaluation assets - (1,200)
Net cash used in investing activities - (1,200)
Financing activities
Shares issued 285,926 -
Net cash generated from financing activities 285,926 -
Net cash increase/(decrease) in cash and cash equivalents 66,993 (241,679)
Cash and cash equivalents at the beginning of year 101,843 333,900
Exchange gains / (loss) on cash and cash equivalents (2,527) 9,622
Cash and cash equivalents at the end of the year 166,309 101,843
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 2021. 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):
2022 2021
€ €
Numerator
For basic and diluted EPS Loss after taxation (310,813) (322,077)
Denominator No. No.
For basic and diluted EPS 160,919,745 157,038,467
Basic EPS (0.19c) (0.21c)
Diluted EPS (0.19c) (0.21c)
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 €310,813 (2021: loss of
€322,077) and had net current liabilities of €689,811 (2021: €664,924)
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 €857,531 (2021: €767,531)
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 had a cash balance of €166,309 (2021: €101,843) 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 may 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.
These conditions as well as those noted below, represent a material
uncertainty that may cast significant doubt on the Group'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 was unable to continue as a going concern.
4. INTANGIBLE ASSETS
Group Group
2022 2021
€ €
Exploration and evaluation assets:
Cost:
At 1 January 933,167 931,967
Additions - 1,200
Impairment - -
At 31 December 933,167 933,167
Carrying amount:
At 31 December 933,167 933,167
Segmental analysis
Group Group
2022 2021
€ €
Ghana 933,167 933,167
Iraq - -
933,167 933,167
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.
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.
Directors' remuneration of €Nil (2021: €Nil) and salaries of €Nil (2021:
€Nil) were capitalised as exploration and evaluation expenditure during the
financial year.
5. OTHER PAYABLES
Group Group
2022 2021
€ €
Amounts due to key personnel 857,531 767,531
Accruals 12,000 16,500
Other payables 20,396 8,399
889,927 792,430
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
2022 2022 2021 2021
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 2021 157,038,467 1,962,981 21,786,011
Issued during the year - - -
At 31 December 2021 157,038,467 1,962,981 21,786,011
Issued during the year 20,833,333 260,417 25,509
At 31 December 2022 177,871,800 2,223,398 21,811,520
On 24 October 2022 a total of 20,833,333 shares were placed at a price of 1.2
pence per share. Proceeds were used to provide additional working capital and
fund development costs. For each share subscribed for, the investors also
received one warrant to subscribe for an additional ordinary share at a price
of 1.8p per share for a period of 2 years.
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 2022 have a weighted average remaining
contractual life of 4 years.
31 December 2022 31 December 2021
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 2022 31 December 2021
Warrants Weighted average exercise price in pence Warrants Weighted average exercise price in pence
Outstanding at beginning of year - - - -
Issued 20,833,333 1.8 - -
Expired - - - -
Outstanding at end of year 20,833,333 1.8 - -
On 24 October 2022 a total of 20,833,333 warrants were issued at an exercise
price of 1.8p per warrant as part of a placing. Further information is note 6
above.
8. OTHER RESERVES
Capital Conversion Reserve Fund Share Based Payment Reserve
Capital Redemption Reserve € €
€
Balance at 1 January 2021 209,342 7,694 127,199
Movement during the year - - 29,295
Balance at 31 December 2021 209,342 7,694 156,494
Movement during the year - - -
Balance at 31 December 2022 209,342 7,694 156,494
Capital redemption reserve
The Capital redemption reserve reflects nominal value of shares cancelled by
the Company.
Capital conversion reserve fund
The ordinary shares of the company were renominalised from €0.0126774 each
to €0.0125 each in 2001 and the amount by which the issued share capital of
the company was reduced was transferred to the capital conversion reserve
fund.
Share Based Payment Reserve
The share-based payment reserve arises on the grant of share options under the
share option plan. Share options expired are reallocated from the share-based
payment reserve to retained deficit at their grant date fair value.
9. RETAINED DEFICIT
2022 2021
€ €
Opening Balance (23,724,656) (23,402,579)
Profit/(Loss) for the year (310,813) (322,077)
Closing Balance (24,035,469) (23,724,656)
Retained deficit
Retained deficit comprises of losses incurred in the current and prior years.
10. POST BALANCE SHEET EVENTS
There were no material post balance sheet events affecting the Group.
11. ANNUAL GENERAL MEETING
The Company's Annual General Meeting will be held on 27 July 2023 in the Hotel
Riu Plaza The Gresham, 23 O'Connell Street Upper, Dublin 1, D01 C3W7 at 12.00
pm.
12. 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 2022 prepared in accordance with IFRS, upon which the auditors have
given an unqualified report, have not yet been filed with the Registrar of
Companies. Full financial statements for the year ended 31 December 2021
prepared in accordance with IFRS and containing an unqualified report, have
been filed with the Registrar of Companies.
A copy of the Company's Annual Report and Accounts for 2022 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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