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RNS Number : 3272D Sunda Energy PLC 09 September 2024
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF REGULATION
11 OF THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS 2019/310
9 September 2024
Sunda Energy Plc
("Sunda" or the "Company")
Interim Results for the six months ended 30 June 2024
Sunda Energy Plc (AIM: SNDA), the AIM-quoted exploration and appraisal company
focused on gas assets in Southeast Asia, is pleased to announce its unaudited
interim results for the six months ended 30 June 2024.
Chief Executive's Statement
The first half of 2024 was a period of significant change and progress for the
Company, with a change of name, several appointments to the board of directors
of the Company (the "Board") and a new strategy focussed solely on Southeast
Asia. Key highlights from the period are described below:
Timor-Leste TL-SO-19-16 PSC ("Chuditch PSC" or "PSC") (Sunda 60% interest)
On 8 February 2024, the Company announced the completion of a Farm-Up
Agreement between Sunda's wholly owned subsidiary SundaGas Banda Unipessoal,
Lda. ("SundaGas") and TIMOR GAP Chuditch Unipessoal Lda ("TIMOR GAP") in
relation to the Chuditch PSC. As part of the Farm-Up arrangements, TIMOR GAP
made a cash payment to SundaGas of c.US$1 million to cover back costs.
SundaGas retains operatorship of the Chuditch PSC and holds a 60% working
interest. TIMOR GAP has a 40% interest, made up of a working interest of 15%,
plus its original 25% interest which is carried to first gas. From completion
of the Farm-Up Agreement, TIMOR GAP is responsible for paying 20% of all costs
in relation to the PSC, including the drilling of the planned Chuditch-2
appraisal well.
On 19 June 2024, Contract Year Three of the PSC commenced. This phase of the
contract contains a commitment to drill a well to appraise the Chuditch gas
discovery, following the successful conclusion of earlier 3D seismic
reprocessing works which demonstrated Chuditch to be a field of significant
scale, interpreted to be more than 20 km long and 150m in vertical relief,
with a Pmean Contingent Resource of 1.16 Tcf of gas.
Throughout the period, operational planning for the drilling of the Chuditch-2
appraisal well continued in earnest. As announced by the Company on 16 April
2024, SundaGas completed a site survey at the planned location of the
Chuditch-2 appraisal well. The well will be situated 5.1km from the original
Chuditch-1 discovery well in a water depth of approximately 68m. The predicted
vertical column height of gas in the Jurassic reservoirs at this location is
149m.
Sunda's experienced in-house drill team have conducted extensive design
studies for the Chuditch-2 well construction and planned production flow test
(DST). Workshops have been held (and are continuing on a regular basis) with
Timor-Leste's National Petroleum Authority ("ANP") and joint venture partner
TIMOR GAP. Negotiations to secure the use of a drilling rig are ongoing and
progressing well. Regulatory approvals for the procurement, temporary
importation and permitting of the drilling rig and all other required
equipment and services are ongoing, along with the environmental permitting
process. The Company welcomes the strong collaboration with ANP and joint
venture partner TIMOR GAP through all the operational planning activities.
Through the period, Sunda has been engaged in discussions with a number of
potential funding partners with an interest in participating in the Chuditch
PSC project. Post period end, it was announced on 12 August 2024 that these
discussions had advanced with a number of parties, and in particular that the
Company had entered into an exclusivity agreement (the "Exclusivity
Agreement") with Pacific LNG Operations Pte Ltd ("Pacific LNG"), a privately
owned Singaporean investment company with significant experience in resource
projects in Asia-Pacific. The Exclusivity Agreement contains carve-outs for
several other potential funding partners (the "Other Parties"). Discussions
with Pacific LNG and the Other Parties are ongoing, but there can be no
guarantee that a definitive funding agreement will be entered into with any
party, nor can there be any guarantee on the terms, structure or timing of any
potential investment.
Offshore UK Licence P2478 (Dunrobin)
On 31 March 2024, offshore UK Licence P2478 was surrendered to the UK North
Sea Transition Authority ("NSTA"), following delays to the acquisition of 3D
seismic data that had been stipulated in the terms of an extension to Phase A
of the licence. The delays largely resulted from the continuous wind farm
construction activities in the area. The Company had held a 32% non-operated
interest in the licence. All of Sunda's commitments on the licence had been
fulfilled and a relinquishment report was submitted.
New Ventures
During the period, the Company had an outstanding application in the United
Kingdom offshore 33rd Round of licensing, conducted by the NSTA. On 7 May
2024, the Company announced that it had been informed by the NSTA that its
application had been unsuccessful. This marked the end of the Company's
involvement in the UK sector, with all new venture activities subsequently
focussed on the Southeast Asia region.
With Sunda's new strategic focus exclusively on Southeast Asia, the Company
began actively screening new business opportunities in the region, targeting
opportunities to secure significant interests in material gas assets with low
costs of entry. Post period end on 28 August 2024, Sunda announced that, it
had submitted two applications in the 1st Conventional Energy Bid Round of the
Bangsamoro Autonomous Region of Muslim Mindanao ("BARMM") in the Philippines,
as a non-operating joint venture partner. If successful, Sunda expects to hold
a 37.5% non-operated interest in any resulting service contracts that are
awarded, with announcements on the award expected during Q4 2024. Several
other opportunities are being actively evaluated, albeit the Company remains
strongly focussed on its upcoming appraisal activities in Timor-Leste.
Financial Position
The net loss after finance costs and tax of £910,000 (30 June 2023: net loss
of £847,000; year to 31 December 2023: net loss of £1,712,000), represented
a loss of 0.004p per share (30 June 2023: 0.004p; year to 31 December 2023:
0.009p).
In February 2024, the Company raised £2,993,000 net (£3,264,000 gross) from
the issue of new share capital by way of a Placing, Subscription and WRAP
Retail Offer.
Available cash (excluding monies held as security for the Bank Guarantee in
Timor-Leste) as at 30 June 2024 was £4,545,000 (30 June 2023: £4,619,000; 31
December 2023: £3,760,000).
During June 2024, the Bank Guarantee for the Chuditch PSC was increased from
US$1.0 million to US$2.5 million (net US$2.0 million) as the Company prepared
to enter Contract Year 3 of the PSC, with its increased work commitments. The
new Bank Guarantee was issued by Banco Nacional de Comércio de Timor-Leste
("BNCTL"), a bank wholly owned by the government of Timor-Leste. The use of
BNCTL is part of the Company's commitment to maximising local content inside
Timor-Leste, but also indicative of its objective to broaden its business
partnerships in-country.
Changes to Board and Company Name
A number of changes to the Board were effected during the period. On 15 March
2024, Andy Yeo resigned as CEO and Andy Butler was appointed in his place.
Andy Yeo ceased to be a director on 1 April 2024. On 22 April, John Wakefield
resigned from the Board and Gerry Aherne was appointed as new Independent
Non-Executive Chairman. In addition, on that date John Chessher was appointed
as an Independent Non-Executive Director. At the end of April, former
Technical Director Jon Ford stepped down from the Board and was retained in a
part-time consultancy role. After the period, on 12 August 2024, it was
announced that Rob Collins had been appointed to the Board, following his
earlier engagement as Chief Financial Officer. The Company now has a fully
refreshed and strong Board that has deep and broad experience in natural
resources, corporate finance and compliance. Information on all current
directors is available on the Company's website www.sundaenergy.com
(http://www.sundaenergy.com) .
At the Annual General Meeting on 21 June 2024, it was resolved to change the
name of the Company from Baron Oil Plc to Sunda Energy Plc. This name change,
announced as effective on 5 July 2024, is reflective of the Company's new
strategy to focus exclusively on the Southeast Asia region, particularly on
gas assets and opportunities.
Qualified Person's Statement
Pursuant to the requirements of the AIM Rules - Note for Mining and Oil and
Gas Companies, the technical information and resource reporting contained in
this announcement has been reviewed by Dr Andy Butler, Fellow of the
Geological Society of London and member of the Society of Petroleum Engineers.
Dr Butler has more than 28 years' experience as a petroleum geologist. He has
compiled, read and approved the technical disclosure in this regulatory
announcement and indicated where it does not comply with the Society of
Petroleum Engineers' standard.
Gerry Aherne, Sunda Energy Chairman, commented:
"The Company has made significant change and progress in the reporting period.
The change of the Company's name to Sunda Energy reflects our new strategic
focus solely on Southeast Asia and this strategy is being implemented by a
refreshed Board with a deep and broad experience in natural resources and
corporate finance. We are primarily focused on our upcoming appraisal
activities on the Chuditch field in Timor-Leste and are currently progressing
funding arrangements to enable the drilling of the Chuditch-2 appraisal
well. At the same time, we are actively pursuing a business development
strategy to target assets of similar materiality, in line with the Company's
goal of building a substantial energy business in the Southeast Asian region.
I look forward to providing further updates as we progress."
For further information, please
contact:
Sunda Energy
Plc
+44 (0) 20 7117 2849
Andy Butler, Chief Executive
Rob Collins, Chief Financial Officer
Allenby Capital
Limited
+44 (0) 20 3328 5656
Nominated Adviser and Joint Broker
Nick Athanas, Nick Harriss, George Payne (Corporate Finance)
Kelly Gardiner, Stefano Aquilino (Sales and Corporate Broking)
Cavendish Capital Markets
Limited +44 (0) 131 220 6939 /
+44 (0) 207 397 8900
Joint Broker
Neil McDonald, Pearl Kellie (Corporate Finance)
Leif Powis (Sales)
IFC Advisory
Limited
+44 (0) 20 3934 6630
Financial PR and
IR
sunda@investor-focus.co.uk
Tim Metcalfe, Florence Chandler
Consolidated Income Statement
for the six months ended 30 June 2024
6 months to 6 months to Year to
30 June 30 June 31 December
2024 2023 2023
Note Unaudited Unaudited Audited
£'000 £'000 £'000
Revenue - - -
Cost of sales - - -
Gross profit - - -
Exploration and appraisal expenditure (44) (93) (121)
Intangible asset impairment - - (187)
Property, plant and equipment depreciation (18) (17) (37)
Peru closure costs (3) (26)
Administration expenses 5 (1,207) (778) (1,455)
Recovery of historic costs on farm-out 282 - -
Loss arising on foreign exchange (6) (37) (32)
Operating loss 6 (996) (925) (1,858)
Finance cost (1) (4) (6)
Finance income 87 82 152
Loss on ordinary activities before taxation (910) (847) (1,712)
Income tax expense 7 - - -
Loss on ordinary activities after taxation (910) (847) (1,712)
Loss on ordinary activities after taxation is attributable to:
Equity shareholders (910) (847) (1,712)
Non-controlling interests - - -
Loss on ordinary activities after taxation (910) (847) (1,712)
Earnings per share: basic 8 (0.004)p (0.004)p (0.009)p
Diluted 8 (0.004)p (0.004)p (0.009)p
Consolidated Statement of Comprehensive Income
for the six months ended 30 June 2024
6 months to 6 months to Year to
30 June 30 June 31 December
2024 2023 2023
Unaudited Unaudited Audited
£'000 £'000 £'000
Loss on ordinary activities after taxation attributable to owners of the (910) (847) (1,712)
parent
Other comprehensive income: items which may subsequently be reclassified to
profit or loss
Currency translation differences 35 (144) (172)
Total comprehensive income for the period (875) (991) (1,884)
Total comprehensive income attributable to :
Owners of the parent company (875) (991) (1,884)
Consolidated Statement of Financial Position
at 30 June 2024
30 June 30 June 31 December
2024 2023 2023
Unaudited Unaudited Audited
Assets Note £'000 £'000 £'000
Non-current assets
Property, plant and equipment 42 58 41
Exploration and evaluation assets 9 4,296 3,728 3,781
4,338 3,786 3,822
Current assets
Trade and other receivables 166 117 91
Performance bond guarantee deposit 10 1,582 790 786
Cash and cash equivalents 4,545 4,619 3,760
6,293 5,526 4,637
Total assets 10,631 9,312 8,459
Equity and liabilities
Capital and reserves attributable to owners of the parent
Share capital 11 6,378 4,746 4,746
Share premium account 40,242 38,881 38,881
Share option reserve 319 319 319
Foreign exchange translation reserve 750 1,591 715
Retained earnings (37,316) (36,389) (36,406)
Total equity 10,373 9,148 8,255
Current liabilities
Trade and other payables 242 126 185
Taxes payable 3 14 15
245 140 200
Non-current liabilities
Lease finance 13 24 4
Total equity and liabilities 10,631 9,312 8,459
Consolidated Statement of Cash Flows
for the six months ended 30 June 2024
6 months to 6 months to Year to
30 June 30 June 31 December
2024 2023 2023
Unaudited Unaudited Audited
Note £'000 £'000 £'000
Operating activities 12 (983) (1,172) (1,830)
Investing activities
Interest received 87 82 152
Performance guarantee bond repaid 796 - -
Performance guarantee bond deposit paid (1,592) - -
Additions to exploration and evaluation assets (1,001) (130) (381)
Acquisition of tangible assets (4) - (2)
Proceeds of farm-out 502 - -
Proceeds on disposal of tangible assets 2 - -
(1,210) (48) (231)
Financing activities
Net proceeds from issue of share capital 2,993 51 51
Lease financing (16) (19) (37)
2,977 32 14
Net cash inflow/(outflow) 784 (1,188) (2,047)
Cash and cash equivalents at the beginning of the period 3,760 5,807 5,807
Cash and cash equivalents at the end of the period 4,544 4,619 3,760
Consolidated Statement of Changes in Equity
for the six months ended 30 June 2024 Foreign
Share Share exchange
Share premium Retained option translation Total
capital account earnings reserve reserve equity
£'000 £'000 £'000 £'000 £'000 £'000
As at 1 January 2023 4,730 38,846 (34,707) 332 887 10,088
Shares issued 16 35 - - 51
Transactions with owners (net of transaction costs) 16 35 - - - 51
Loss for the pertiod attributable to equity shareholders - - (847) - - (847)
Share option reserve released - - 13 (13) - -
Foreign exchange translation adjustments - - - - (144) (144)
Total comprehensive income for the period - - (834) (13) (144) (991)
As at 1 July 2023 4,746 38,881 (35,541) 319 743 9,148
Loss for the period attributable to equity shareholders - - (865) - - (865)
Foreign exchange translation adjustments - - - - (28) (28)
Total comprehensive income for the period - - (865) 0 (28) (893)
As at 1 January 2024 4,746 38,881 (36,406) 319 715 8,255
Shares issued 1,632 1,632 - - - 3,264
Share issue costs - (271) - - - (271)
Transactions with owners 1,632 1,361 - - - 2,993
Loss for the period attributable to equity shareholders - - (910) - - (910)
Foreign exchange translation adjustments - - - - 35 35
Total comprehensive income for the period - - (910) - 35 (875)
As at 30 June 2024 6,378 40,242 (37,316) 319 750 10,373
Notes to the Interim Financial Information
1. General Information
Sunda Energy Plc is a company incorporated in England and Wales and quoted on
the AIM Market of the London Stock Exchange. The registered office address is
2 Leman Street, London E1W 9US.
The principal activity of the Group is that of oil and gas exploration and
appraisal.
This financial information is a condensed set of financial statements and is
prepared in accordance with the requirements of IAS 34 and does not include
all the information and disclosures required in annual financial statements
and should be read in conjunction with the Group's annual financial statements
for the year ended 31 December 2023. The financial information for the six
months to 30 June 2024 is unaudited and does not comprise statutory financial
statements within the meaning of Section 435 of the Companies Act 2006.
Statutory financial statements for the year ended 31 December 2023, prepared
under UK-adopted IFRS, were approved by the Board of Directors on 24 May 2024
and delivered to the Registrar of Companies.
2. Basis of Preparation
This consolidated interim financial information has been prepared in
accordance with UK adopted International Financial Reporting Standards
("IFRS") and IFRIC interpretations issued by the International Accounting
Standards Board (IASB), and on the historical cost basis, using the accounting
policies which are consistent with those set out in the Company's Annual
Report and Financial Statements for the year ended 31 December 2023. This
interim financial information for the six months to 30 June 2024, which
complies with IAS 34 'Interim Financial Reporting', was approved by the Board
on 6 September 2024.
3. Accounting Policies
The accounting policies applied for the six months to 30 June 2024 are
consistent with those of the annual financial statements for the year ended 31
December 2023, as described in those annual financial statements.
The preparation of financial statements requires management to make estimates
and assumptions that affect the amounts reported for assets and liabilities as
at the balance sheet date and the amounts reported for revenues and expenses
during the period. The nature of estimation means that actual outcomes could
differ from those estimates. Estimates and assumptions used in the preparation
of the financial statements are continually reviewed and revised as necessary.
Whilst every effort is made to ensure that such estimates and assumptions are
reasonable, by their nature they are uncertain, and as such, changes in
estimates and assumptions may have a material impact in the financial
information.
During the period, the Group completed a farm-out transaction of its main
exploration asset which resulted in the receipt of funds in respect of back
costs, and also contributions to future costs by the farminee. The back costs
received in respect of amounts previously capitalised as an exploration asset
were credited to the carrying value of the asset on a no gain, no loss basis.
Those back costs attributable to administration costs previously expensed are
shown as a gain in the Income Statement. Post farm-out cost recoveries from
the farminee will be offset against the relevant costs charged to the
exploration asset and administration costs as appropriate.
4. Segmental information
United Kingdom South America South East Asia Total
Six months ended 30 June 2024 £'000 £'000 £'000 £'000
Unaudited
Revenue
Sales to external customers - - - -
Segment revenue - - - -
Results
Segment result (807) (4) (99) (910)
Total assets less liabilities 3,566 (1) 6,808 10,373
United Kingdom South America South East Asia Total
Six months ended 30 June 2023 £'000 £'000 £'000 £'000
Unaudited
Revenue
Sales to external customers - - - -
Segment revenue - - - -
Results
Segment result (522) (15) (310) (847)
Total assets less liabilities 3,889 2 5,257 9,148
United Kingdom South America South East Asia Total
Year ended 31 December 2023 £'000 £'000 £'000 £'000
Audited
Revenue
Sales to external customers - - - -
Segment revenue - - - -
Results
Segment result (1,036) (32) (644) (1,712)
Total assets less liabilities 3,600 1 4,654 8,255
6 months to 6 months to Year to
5. Administration expenses
30 June 30 June 31 December
2024 2023 2023
Unaudited Unaudited Audited
£'000 £'000 £'000
Directors' and employee benefit expense 320 443 764
Director's severance payment 299 - -
Legal and professional fees 420 242 509
Other expenses 168 93 182
1,207 778 1,455
6. Operating loss
6 months to 6 months to Year to
30 June 30 June 31 December
2024 2023 2023
Unaudited Unaudited Audited
£'000 £'000 £'000
The loss on ordinary activities before taxation includes:
Exploration and appraisal expenditure 44 93 121
Impairment of intangible assets - - 187
Depreciation of property, plant and equipment 18 17 37
Recovery of historic costs on farm-out (282) - -
(Profit)/Loss on exchange 6 37 32
═════ ═════ ═════
7. Income tax expense
There was no tax expense during the period (30 June and 31 December 2023:
nil).
8. Earnings/(loss) per Share
6 months to 6 months to Year to
30 June 30 June 31 December
2024 2023 2023
Unaudited Unaudited Audited
Pence Pence Pence
Earnings/(loss) per ordinary share
Basic (0.004) (0.004) (0.009)
Diluted (0.004) (0.004) (0.009)
═════ ═════ ═════
The earnings/(loss) per ordinary share is based on the Group's loss for the
period of £910,000 (30 June 2023: £847,000; 31 December 2021: £1,712,000)
and a weighted average number of shares in issue of 23,394,556,435 (30 June
2023: 18,964,459,32; 31 December 2023: 18,973,685,086).
9. Intangible fixed assets
Exploration and evaluation assets
£'000
Group
Cost
At 1 January 2023 3,696
Foreign exchange translation adjustment (109)
Additions 381
Disposals 0
At 1 January 2024 3,968
Foreign exchange translation adjustment 16
Additions 1,001
Disposals (689)
At 30 June 2024 4,296
Impairment
At 1 January 2023 -
Charge for the period 187
At 1 January and 31 December 2023 187
Disposals (187)
At 30 June 2024 -
Net book value
At 30 June 2024 4,296
At 31 December 2023 3,781
10. Performance Guarantee Bond Deposit
The Company's wholly-owned subsidiary, SundaGas Banda Unipessoal, Lda
("Banda"), has provided a performance guarantee to Autoridade Nacional do
Petróleo ("ANP") in respect of the offshore Timor-Leste TL-SO-19-16
Production Sharing Contract ("PSC"). This performance guarantee is secured by
a bank guarantee given by Banco Nacional de Comercio de Timor Leste (BNCTL)
backed by a cash deposit of US$2 million. BNCTL is wholly-owned by the
Timor-Leste state and the exposure to credit risk is considered low.
In addition, the Company has provided a Parent Company Guarantee to ANP in
respect of the Banda's obligations under the PSC.
11. Share Capital
On 29 February 2024, the Company issued 6,528,023,360 Ordinary Shares of
0.025p each at 0.05p per share, yielding net proceeds after costs of
£2,993,000.
12. Reconciliation of operating loss to net cash outflow from operating
activities
6 months to 6 months to Year to
30 June 30 June 31 December
2024 2023 2023
Unaudited Unaudited Audited
£'000 £'000 £'000
Profit/(loss) for the period (910) (847) (1,712)
Depreciation, amortisation and impairment charges 18 17 224
Finance income shown as an investing activity (87) (82) (152)
Interest on lease liability 1 4 6
Foreign currency translation 19 (6) (20)
(Increase)/decrease in receivables (75) (16) 10
Increase/(decrease) in payables 51 (242) (186)
______ ______ _______
(983) (1,172) (1,830)
═════ ═════ ═════
13. Related party transactions
During the period, SundaGas (Timor-Leste Sahul) Pty. Ltd ("TLS"), a
wholly-owned subsidiary, paid fees amounting to US$165,000 (30 June 2023:
US$152,000, 31 December 2023: US$285,000) to SundaGas Pte. Ltd, a company in
which Dr. Andrew Butler, a director of the Company, held a significant
interest.
The directors' aggregate remuneration and associated benefits in respect of
qualifying services during the period amounted to £132,000 (30 June 2023:
£308,000 31 December 2023: £483,000).
During the period, payments totalling £316,000 (30 June and 31 December 2023:
nil) were made in respect of severance payments to former directors.
During the period, key management personnel subscribed for new ordinary shares
of £0.00025 each in the Company at a price of 0.05p per share as part of a
placing and subscription of new ordinary shares announced on 15 February
2024, as follows.
Dr Andrew Butler 64,000,000 shares
Andrew Yeo (resigned 31 March 2024) 12,000,000 shares
14. Financial Information
The unaudited interim financial information for period ended 30 June 2024 does
not constitute statutory financial statements within the meaning of Section
435 of the Companies Act 2006. The comparative figures for the year ended 31
December 2023 are extracted from the statutory financial statements which have
been filed with the Registrar of Companies and which contain an unqualified
audit report and did not contain statements under Section 498 to 502 of the
Companies Act 2006.
Copies of this interim financial information document are available from the
Company at its registered office at 2 Leman Street, London E1W 9US. The
interim financial information document will also be available on the Company's
website www.sundaenergy.com.
Glossary of Technical Terms
Contingent Resources Those quantities of petroleum estimated, as of a given date, to be potentially
recoverable from known accumulations by application of development projects,
but which are not currently considered to be commercially recoverable owing to
one or more contingencies.
Mean or Pmean Reflects an unrisked median or best-case volume estimate of resource derived
using probabilistic methodology. This is the mean of the probability
distribution for the resource estimates and is often not the same as 2U as the
distribution can be skewed by high resource numbers with relatively low
probabilities.
PSC Production Sharing Contract.
Tcf Trillion standard cubic feet of gas
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