REG - Petrel Resources PLC - Unaudited Interim Statement
Today 07:00
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250918:nRSR7615Za&default-theme=true
RNS Number : 7615Z Petrel Resources PLC 18 September 2025
18 September 2025
Petrel Resources plc
("Petrel" or "the Company")
Unaudited Interim Statement for the six months ended 30 June 2025
Petrel Resources plc (AIM: PET) today announces unaudited financial results
for the six months ended 30(th) June 2025.
Chairman's Statement
Petrel is a junior hydrocarbon explorer with interests in Iraq and Ghana.
Recent months have seen a steady recovery of interest in our sectors: there
are now many oil & gas projects available, with promising geology and
manageable logistics. There has also been rising interest in energy
minerals, from coal to Helium, Lithium and Rare Earths. After a long
depression there is rising acceptance that under-exploration since the great
financial crisis is causing shortages. So far, the effect has been most
dramatic in commodity metals, like gold and copper, but similar trends are
emerging elsewhere.
During 2024/25 there has been a quiet swing back to reliable fuels.
Investment into renewables continues - boosting demand for minerals, but it is
now quietly backed up by reliable fuels. Major energy companies are
re-focusing on their cash-generative business, and increasingly stress that
this relies on continuation of heavy state subsidies, enhanced prices for
consumers and other supports. As a result, fossil fuels continue to grow by
circa 1% yearly, and constitute 86% of primary energy supply (EI methodology
calculation, 2025).
It is still cheaper to find oil & gas in financial markets than by
exploration - though mega-mergers are sensitive.
The European majors who most championed the Green Transition, especially BP
and Shell, had been most heavily penalised by financial markets and have now
corrected course most vigorously.
Majors are still focused on their core assets in priority basins. They are
mostly not entering new basins and are still not heavy participants in farm-in
markets. Yet this will change as the cycle progresses.
Both these trends are positive for Petrel: our core business is acquiring
high-potential acreage in the Middle East or other neglected area, but to
monetise these assets we need either to fund at a premium or farm-out to
majors at a premium.
Yet as a long-standing player in industrial minerals, and participants in the
EU Commission's Critical Resource Minerals initiative, we can see the West's
desperate need to secure independent access both to key deposits as well as
processing capacity to deliver high-quality raw materials for the high-tech,
defence and Green Transition sectors.
Fiscal terms remain a challenge, as do demands for up-front cash for new
acreage. But recent discussions suggest a new realism in how governments are
engaging with juniors.
Accordingly the key ingredients may be finally falling into place for greater
stock market and farm-out support of juniors embarking on new frontier
projects.
Petrel has been investigating acquisition and organic growth opportunities in
diverse energy-related sectors and countries. These must be backed by
finance and proper legal title. Initial review work gives our experts
confidence in the reserve and resource numbers. Potential offtake agreements -
both for the EU, as well as China and India are economic at current prices.
These are Petrel's strengths.
Based on initial discussions, we do not see offtake, financing, and permitting
as insurmountable obstacles in such critical resources.
Financing
The directors, and their supporters, have funded working capital needs, and
are prepared to participate in any necessary future fundings.
The board expects to add another one or more Non-Executive Director with the
next major deal.
David Horgan
Chairman
17 September 2025
ENDS
For further information please visit http://www.petrelresources.com/
(http://www.petrelresources.com/) or contact:
Petrel Resources
David Horgan, Chairman +353 (0) 1 833 2833
John Teeling, Director
Strand Hanson Limited - Nominated & +44 (0) 20 7409 3494
Financial Adviser
Richard Johnson
James Bellman
Novum Securities Limited - Broker
Colin Rowbury
+44 (0) 20 399 9400
BlytheRay - PR +44 (0) 207 138 3204
Megan Ray
Teneo
Luke Hogg +353 (0) 1 661 4055
Molly Mooney
Petrel Resources plc
Financial Information (Unaudited)
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Six Months Ended Year Ended
30 June 25 30 June 24 31 Dec 24
unaudited unaudited audited
€'000 €'000 €'000
Administrative expenses (191) (155) (283)
Impairment of exploration and evaluation assets (93) (74) (187)
OPERATING LOSS (284) (229) (470)
Loss due to fair value volatility of warrants (73) - -
LOSS BEFORE TAXATION (357) (229) (470)
Income tax expense - - -
LOSS FOR THE PERIOD (357) (229) (470)
Other comprehensive income - - -
TOTAL COMPREHENSIVE PROFIT FOR THE PERIOD (357) (229) (470)
LOSS PER SHARE - basic and diluted (0.18c) (0.12c) (0.26c)
CONDENSED STATEMENT OF FINANCIAL POSITION 30 June 25 30 June 24 31 Dec 24
unaudited unaudited audited
ASSETS: €'000 €'000 €'000
NON-CURRENT ASSETS
Intangible assets 467 672 560
467 672 560
CURRENT ASSETS
Trade and other receivables 62 22 9
Cash and cash equivalents 42 13 5
104 35 14
TOTAL ASSETS 571 707 574
CURRENT LIABILITIES
Trade and other payables (1,147) (1,057) (1,165)
Warrants (73) - -
(1,220) (1,057) (1,165)
NET CURRENT LIABILITIES (1,116) (1,022) (1,151)
NET ASSETS (649) (350) (591)
EQUITY
Share capital 2,596 2,298 2,298
Capital conversion reserve fund 8 8 8
Capital redemption reserve 209 209 209
Share premium 21,865 21,864 21,864
Share based payment reserve 27 27 27
Retained deficit (25,354) (24,756) (24,997)
TOTAL EQUITY (649) (350) (591)
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Capital Capital Share based
Share Share Redemption Conversion Payment Retained Total
Capital Premium Reserves Reserves Reserves Losses Equity
€'000 €'000 €'000 €'000 €'000 €'000 €'000
As at 1 January 2024 2,236 21,820 209 8 27 (24,527) (227)
Issue of shares 62 44 106
Total comprehensive income - (229) (229)
As at 30 June 2024 2,298 21,864 209 8 27 (24,756) (350)
Issue of shares - - -
Total comprehensive income - (241) (241)
As at 31 December 2024 2,298 21,864 209 8 27 (24,997) (591)
Issue of shares 298 1 299
Total comprehensive income - (357) (357)
As at 30 June 2025 2,596 21,865 209 8 27 (25,354) (649)
CONDENSED CONSOLIDATED CASH FLOW Six Months Ended Year Ended
30 June 25 30 June 24 31 Dec 24
unaudited unaudited audited
€'000 €'000 €'000
CASH FLOW FROM OPERATING ACTIVITIES
Loss for the period (357) (229) (470)
Impairment 93 74 187
Fair Value movements of Warrants 73 - -
Foreign exchange - 1 1
(191) (154) (282)
(Decrease)/increase in trade and other payables (18) 38 145
(Increase)/decrease in trade and other receivables (53) (12) 1
CASH USED IN OPERATIONS (71) 26 146
NET CASH USED IN OPERATING ACTIVITIES (262) (128) (136)
FINANCING ACTIVITIES
Shares issued 299 106 106
NET CASH USED IN FINANCING ACTIVITIES 299 106 106
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS 37 (22) (30)
Cash and cash equivalents at beginning of the period 5 36 36
Effect of exchange rate changes on cash held in foreign currencies - (1) (1)
CASH AND CASH EQUIVALENT AT THE END OF THE PERIOD 42 13 5
Notes:
1. INFORMATION
The financial information for the six months ended 30 June 2025 and the
comparative amounts for the six months ended 30 June 2024 are unaudited.
The interim financial statements have been prepared in accordance with IAS 34
Interim Financial Reporting as adopted by the European Union. The interim
financial statements have been prepared applying the accounting policies and
methods of computation used in the preparation of the published consolidated
financial statements for the year ended 31 December 2024.
The interim financial statements do not include all of the information
required for full annual financial statements and should be read in
conjunction with the audited consolidated financial statements of the Group
for the year ended 31 December 2024, which are available on the Company's
website www.petrelresources.com (http://www.petrelresources.com)
The interim financial statements have not been audited or reviewed by the
auditors of the Group pursuant to the Auditing Practices board guidance on
Review of Interim Financial Information.
2. No dividend is proposed in respect of the period.
3. GOING CONCERN
The Group incurred a loss for the financial period of €356,791 (year ended
31 December 2024: loss of €469,878) and had net current liabilities of
€1,115,358 (31 December 2024: €1,150,434) 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 €1,082,531 (31 December
2024: €1,037,531) 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 €42,497 (31 December 2024:
€4,838) 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. On 6 March 2025 the Company raised €298,586
(£250,000) via a placing of shares.
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. 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
earnings 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 table sets out the computation for basic and diluted earnings
per share (EPS):
30 June 25 30 June 24 31 Dec 24
€ € €
Loss per share - Basic and Diluted (0.18c) (0.12c) (0.26c)
Basic and diluted loss per share
The earnings and weighted average number of ordinary shares used in the
calculation of basic loss per share are as follows:
Numerator €'000 €'000 €'000
Loss for the period (357) (229) (470)
Denominator Number Number Number
Weighted average number of shares 199,005,524 183,693,718 183,803,307
Basic and diluted loss per share are the same as the effect of the outstanding
share options is anti-dilutive.
5. INTANGIBLE ASSETS
30 June 25 30 June 24 31 Dec 24
Exploration and evaluation assets: €'000 €'000 €'000
Opening balance 560 746 746
Additions - - -
Impairment (93) (74) (187)
Closing balance 467 672 560
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 annually. Accordingly, an impairment
charge of €93,316 was recorded in the current period to 30 June 2025. (FY
2024: €186,633).
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;
· Going concern and
· Ability to raise finance.
6. SHARE CAPITAL
2025 2024
€'000 €'000
Authorised:
800,000,000 ordinary shares of €0.0125 10,000 10,000
Ordinary Shares -nominal value of €0.0125
Allotted, called-up and fully paid
Number Share Capital Share Premium
€'000 €'000
At 1 January 2024 178,871,800 2,236 21,820
Share issue 5,000,000 62 44
At 30 June 2024 183,871,800 2,298 21,864
Share issue - - -
At 31 December 2024 183,871,800 2,298 21,864
Share issue 23,809,523 298 1
At 30 June 2025 207,681,323 2,596 21,865
Movements in issued share capital
On 6 March 2025 the Company announced that it had raised €298,586
(£250,000) through a placing of 23,809,523 new ordinary shares at a placing
price of 1.05p per Placing Share. 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.
7. WARRANTS
30 June 2025 30 June 2024 31 December 2024
Warrants Weighted average exercise price in pence Warrants Weighted average exercise price in pence Warrants Weighted average exercise price in pence
Number Number Number
Outstanding at beginning of year - - 19,833,333 1.8 19,833,333 1.8
Issued 23,809,523 2.0 -
Exercised - - (5,000,000) 1.8 (5,000,000) 1.8
Expired - - (14,833,333) 1.8
Outstanding at end of year 23,809,523 2.0 14,833,333 1.8 - -
On 6 March 2025 a total of 23,809,523 warrants with an exercise price of 2p
per warrant were granted as part of the placing. The fair value of the
warrants of €73,443 was expensed to the Consolidated Statement of
Comprehensive Income. The fair value was calculated using the Black-Scholes
valuation model.
The inputs into the Black-Scholes valuation model were as follows:
Grant 6 March 2025
Weighted average share price at date of grant (in pence) 1.05p
Weighted average exercise price (in pence) 2.0p
Expected volatility 83.45%
Expected life 1.75 years
Risk free rate 2%
Expected dividends none
Expected volatility was determined by management based on their cumulative
experience of the movement in share prices.
The terms of the warrants granted do not contain any market conditions within
the meaning of IFRS 2.
8. POST BALANCE SHEET EVENTS
There are no material post balance sheets events affecting the Group.
9. The Interim Report for the six months to 30(th) June 2025 was
approved by the Directors on 17 September 2025.
10. The Interim Report will be available on the Company's website at
www.petrelresources.com (http://www.petrelresources.com) .
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 (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR DZGMLKNNGKZMRecent news on Petrel Resources
See all newsREG - Petrel Resources PLC - Unaudited Interim Statement
AnnouncementREG - Petrel Resources PLC - Result of Annual General Meeting
AnnouncementREG - Petrel Resources PLC - Posting of Annual Report and Notice of AGM
AnnouncementREG - Petrel Resources PLC - Preliminary Results for the Year Ended 31 Dec 2024
AnnouncementREG - Petrel Resources PLC - Placing to Raise £250,000
Announcement