Interim Results
Highlights:
· Acquisition of 49% stake in
·
· Competent Person's Report highlights Boleslaw's attractive economics:
o Gross best estimate of 87 bcsf
o
o
· Boleslaw fully funded and on track to be drilled in Q4 2016
· Additional highly prospective targets on Kolo licence
· Strong cash position following successful raise of
· Continue to evaluate other investment opportunities in the European onshore and shallow offshore oil and gas sector
"At the same time we continue to explore other opportunities that we believe will allow us to deliver on our wider strategy to invest in high impact European opportunities with short timelines to production in the coming months and years ahead. As with Boleslaw, we are looking at undervalued projects that would benefit from low cost re-evaluation/re-working, with multiple, tangible value trigger points within 12 months of acquisition, as we look to build a leading oil and gas investment company."
For further information visit www.prospexoilandgas.com or contact the following:
|
|
Tel: +44 (0) 203 586 1009 |
|
|
Tel: 0113 394 6600 |
|
|
Tel: +44 (0) 207 382 8300 |
|
Peterhouse Corporate Finance Peterhouse Corporate Finance |
Tel: +44 (0) 207 469 0932 |
|
|
Tel: +44 (0) 20 7236 1177 |
Chairman's Statement
We have made excellent progress over the period and I am delighted with what we have been able to achieve in such a short space of time. Our focus over the past six months centred on investing in high impact offshore and shallow onshore opportunities in
Since acquisition, considerable progress has been made towards advancing work at the 1,150 sq km
At the drill-ready Boleslaw prospect, where
Exalo Drilling ('Exalo') has been contracted to drill the Boleslaw-1 exploration well, marking another significant milestone in the Project's advancement. The immediate next steps involve the completion of the Boleslaw permitting effort and final approval of the drilling programme from the Polish government's
The successful equity raise of
I believe we have an excellent platform in place for growth. The market is conducive to our model and we believe we can acquire assets that fit our investment criteria and have the ability to add long-term value. This would not be possible without our team, and I would like to take this opportunity to thank them, as well as our advisers and shareholders for their continued support as we look forward to the period ahead with confidence. Prospex continues to establish itself as an oil and gas investment company, which I believe will generate significant value for shareholders in the process.
Non-Executive Chairman
Consolidated statement of comprehensive income
|
|
Six months ended |
|
Six months ended |
|
Year ended |
|
|
30 June |
|
30 June |
|
31 December |
|
|
2016 |
|
2015 |
|
2015 |
|
|
(unaudited) |
|
(unaudited) |
|
(audited) |
|
|
£ |
|
£ |
|
£ |
|
|
|
|
|
|
|
Administrative expenses |
|
(198,163) |
|
(257,814) |
|
(601,892) |
Gain arising on restructuring |
|
- |
|
152,361 |
|
98,885 |
|
|
|
|
|
|
|
Operating loss |
|
(198,163) |
|
(105,453) |
|
(503,007) |
|
|
|
|
|
|
|
Finance income |
|
- |
|
162 |
|
162 |
|
|
|
|
|
|
|
Loss before income taxation |
|
(198,163) |
|
(105,291) |
|
(502,845) |
|
|
|
|
|
|
|
Income tax expense |
|
- |
|
- |
|
411 |
|
|
|
|
|
|
|
Loss for the period from continuing operations |
|
(198,163) |
|
(105,291) |
|
(502,434) |
|
|
|
|
|
|
|
Discontinued operations |
|
|
|
|
|
|
Profit for the period from discontinued operations |
|
- |
|
521,745 |
|
571,745 |
|
|
(198,163) |
|
416,454 |
|
69,311 |
Other comprehensive income |
|
|
|
|
|
|
Change in fair value of available for sale assets |
|
2,374,650 |
|
- |
|
- |
Currency translation differences on disposal of foreign operation |
|
- |
|
(39,467) |
|
- |
|
|
|
|
|
|
|
Loss/(profit) for the period and total comprehensive income attributable to owners of the parent for the period |
|
2,176,487 |
|
376,987 |
|
69,311 |
|
|
|
|
|
|
|
Earnings/(loss) per share - basic and diluted |
|
|
|
|
|
|
Continuing operations |
|
3.61p |
|
(0.52)p |
|
(1.64)p |
Discontinued activities |
|
- |
|
2.56p |
|
1.86p |
Consolidated statement of financial position
As at
|
|
30 June |
|
30 June |
|
31 December |
|
|
2016 |
|
2015 |
|
2015 |
|
|
(unaudited) |
|
(unaudited) |
|
(audited) |
|
|
£ |
|
£ |
|
£ |
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current assets |
|
|
|
|
|
|
Property, plant and equipment |
|
35,383 |
|
- |
|
1,274 |
Investment in associate |
|
3,621,656 |
|
- |
|
- |
Non-current financial assets |
|
198,080 |
|
- |
|
- |
Total non-current assets |
|
3,855,119 |
|
- |
|
1,274 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
Trade and other receivables |
|
45,702 |
|
169,448 |
|
155,909 |
Cash and cash equivalents |
|
523,392 |
|
859,407 |
|
382,216 |
Total current assets |
|
569,094 |
|
1,028,855 |
|
538,125 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
Trade and other payables |
|
(108,015) |
|
(256,858) |
|
(80,875) |
|
|
|
|
|
|
|
Total liabilities |
|
(108,015) |
|
(256,858) |
|
(80,875) |
|
|
|
|
|
|
|
Net current assets/(liabilities) |
|
461,079 |
|
771,997 |
|
457,250 |
|
|
|
|
|
|
|
Net assets |
|
4,316,198 |
|
771,997 |
|
458,524 |
|
|
|
|
|
|
|
EQUITY |
|
|
|
|
|
|
Equity attributable to owners of the parent |
|
|
|
|
|
|
Called up share capital |
|
4,403,234 |
|
2,657,234 |
|
2,657,234 |
Share premium account |
|
6,667,901 |
|
6,732,715 |
|
6,732,714 |
Capital redemption reserve |
|
43,333 |
|
43,333 |
|
43,333 |
Merger reserve |
|
2,416,667 |
|
2,416,667 |
|
2,416,667 |
Retained earnings |
|
(9,214,937) |
|
(11,077,952) |
|
(11,391,424) |
|
|
|
|
|
|
|
Total equity |
|
4,316,198 |
|
771,997 |
|
458,524 |
Statement of changes in equity
For the six months ended
|
|
|
|
|
|
|
|
Foreign |
|
Capital |
|
|
|
Non |
|
|
|
|
|
|
Share |
|
Share |
|
Retained |
|
currency |
|
redemption |
|
Merger |
|
controlling |
|
Convertible |
|
|
|
|
capital |
|
premium |
|
earnings |
|
reserve |
|
reserve |
|
reserve |
|
interests |
|
loan note |
|
Total |
|
|
£ |
|
£ |
|
£ |
|
£ |
|
£ |
|
£ |
|
£ |
|
£ |
|
£ |
Unaudited |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at |
|
2,657,234 |
|
6,732,714 |
|
(11,391,424) |
|
- |
|
43,333 |
|
2,416,667 |
|
- |
|
- |
|
458,524 |
Total comprehensive income for the period |
|
- |
|
- |
|
2,176,487 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
2,176,487 |
Issue of shares |
|
1,746,000 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
1,746,000 |
Share issue costs |
|
- |
|
(64,813) |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
(64,813) |
Balance at |
|
4,403,234 |
|
6,667,901 |
|
(9,214,937) |
|
- |
|
43,333 |
|
2,416,667 |
|
- |
|
- |
|
4,316,198 |
Unaudited |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at |
|
2,304,398 |
|
6,063,208 |
|
(11,531,728) |
|
39,467 |
|
43,333 |
|
2,416,667 |
|
(166,865) |
|
100,216 |
|
(731,304) |
Total comprehensive income for the period |
|
- |
|
- |
|
416,454 |
|
(39,467) |
|
- |
|
- |
|
- |
|
- |
|
376,987 |
Issue of shares |
|
352,836 |
|
723,314 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
1,076,150 |
Share issue costs |
|
- |
|
(53,807) |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
(53,807) |
Equity settled share based payment |
|
- |
|
- |
|
37,322 |
|
- |
|
- |
|
- |
|
- |
|
-
|
|
37,322 |
On completion of CVA |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
(100,216) |
|
(100,216) |
On disposal of subsidiaries |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
166,865 |
|
- |
|
166,865 |
Balance at |
|
2,657,234 |
|
6,732,715 |
|
(11,077,952) |
|
- |
|
43,333 |
|
2,416,667 |
|
- |
|
- |
|
771,997 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Audited |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at |
|
2,304,398 |
|
6,063,208 |
|
(11,531,728) |
|
39,467 |
|
43,333 |
|
2,416,667 |
|
(166,865) |
|
100,216 |
|
(731,304) |
Total comprehensive income for the year |
|
- |
|
- |
|
69,311 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
69,311 |
Issue of shares |
|
352,836 |
|
723,314 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
1,076,150 |
Share issue costs |
|
- |
|
(53,808) |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
(53,808) |
On completion of CVA |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
(100,216) |
|
(100,216) |
Equity settled share based payment |
|
- |
|
- |
|
70,993 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
70,993 |
On disposal of subsidiaries |
|
- |
|
- |
|
- |
|
(39,467) |
|
- |
|
- |
|
166,865 |
|
- |
|
127,398 |
Balance at |
|
2,657,234 |
|
6,732,714 |
|
(11,391,424) |
|
- |
|
43,333 |
|
2,416,667 |
|
- |
|
- |
|
458,524 |
Cash flow statement
For the six months ended
|
|
Six months ended |
|
Six months ended |
|
Year ended |
|
|
30 June |
|
30 June |
|
31 December |
|
|
2016 |
|
2015 |
|
2015 |
|
|
(unaudited) |
|
(unaudited) |
|
(audited) |
|
|
£ |
|
£ |
|
£ |
Operating activities |
|
|
|
|
|
|
Operating loss |
|
(198,163) |
|
(257,814) |
|
(601,892) |
Depreciation of property plant and equipment |
|
8,400 |
|
- |
|
425 |
Decrease/(increase) in trade and other receivables |
|
110,207 |
|
(14,174) |
|
(130,552) |
Increase/(decrease) in trade and other payables |
|
27,140 |
|
68,604 |
|
(96,409) |
Equity-settled share based payment |
|
- |
|
37,322 |
|
70,993 |
Other movement |
|
- |
|
(31,824) |
|
33,955 |
|
|
|
|
|
|
|
Net cash used in operating activities - continuing operations |
|
(52,416) |
|
(197,886) |
|
(723,480) |
|
|
|
|
|
|
|
Investing activities |
|
|
|
|
|
|
Finance income |
|
- |
|
162 |
|
162 |
|
|
|
|
|
|
|
Net generated from investing activities |
|
- |
|
162 |
|
162 |
|
|
|
|
|
|
|
Capital expenditure |
|
|
|
|
|
|
Payments to acquire property, plant and equipment |
|
(42,509) |
|
- |
|
(1,699) |
|
|
|
|
|
|
|
Net cash outflow for capital expenditure |
|
(42,509) |
|
- |
|
(1,699) |
|
|
|
|
|
|
|
Acquisitions and disposals |
|
|
|
|
|
|
Purchase of investments |
|
(1,445,086) |
|
- |
|
- |
Cash on disposal of subsidiary undertaking |
|
- |
|
- |
|
(247) |
|
|
|
|
|
|
|
Net cash used in acquisitions and disposals |
|
(1,445,086) |
|
- |
|
(247) |
|
|
|
|
|
|
|
Financing activities |
|
|
|
|
|
|
Issue of share capital |
|
1,746,000 |
|
1,076,150 |
|
1,076,150 |
Costs in respect of share issue |
|
(64,813) |
|
(53,808) |
|
(53,808) |
Convertible loan notes |
|
- |
|
- |
|
50,000 |
Proceeds received from the issue of derivative financial assets |
|
- |
|
12,055 |
|
12,404 |
|
|
|
|
|
|
|
Net cash generated from financing activities |
|
1,681,187 |
|
1,034,397 |
|
1,084,746 |
|
|
|
|
|
|
|
Net increase in cash and cash equivalents |
|
141,176 |
|
836,673 |
|
359,482 |
|
|
|
|
|
|
|
Cash and cash equivalents at start of period |
|
382,216 |
|
22,734 |
|
22,734 |
|
|
|
|
|
|
|
Cash and cash equivalents at end of period |
|
523,392 |
|
859,407 |
|
382,216 |
Notes to the interim financial statements
1 General information
2 Financial information
The interim financial information for the six months ended
The interim financial statements have been prepared in accordance with International Financial Reporting Standards ('IFRS') as adopted by the
3 Taxation
On the basis of these accounts there is no tax charge for the period.
4 Earnings per share
The earnings and number of shares used in the calculation of earnings per share are as follows:
|
|
Six months ended |
|
Six months ended |
|
Year ended |
|
|
30 June |
|
30 June |
|
31 December |
|
|
2016 |
|
2015 |
|
2015 |
|
|
(unaudited) |
|
(unaudited) |
|
(audited) |
Basic and diluted |
|
|
|
|
|
|
Continuing operations |
|
2,176,487 |
|
(105,291) |
|
(502,434) |
Discontinued operations |
|
- |
|
521,745 |
|
571,745 |
Profit for the financial period |
|
2,176,487 |
|
416,454 |
|
69,311 |
Weighted average number of shares |
|
60,327,994 |
|
20,345,260 |
|
30,677,884 |
Loss per share - continuing activities |
|
3.61p |
|
(0.52)p |
|
(1.64)p |
Earnings per share - discontinued activities |
|
- |
|
2.56p |
|
1.86p |
There was no dilutive effect in respect of the share options outstanding during the period.
5 Non-current investment
The Group owns 49% of the equity share capital of
The carrying value of the Group's investment was as follows:
|
|
Six months ended |
|
Six months ended |
|
Year ended |
|
|
30 June |
|
30 June |
|
31 December |
|
|
2016 |
|
2015 |
|
2015 |
|
|
(unaudited) |
|
(unaudited) |
|
(audited) |
|
|
|
|
|
|
|
At 1 January |
|
- |
|
- |
|
- |
Addition, at cost |
|
1,247,006 2,374,650
2,176,487 |
|
-
416,454 |
|
-
69,311 |
Fair value adjustment |
|
|
|
|||
At 30 June |
|
|
|
6 Dividends
The directors do not propose to declare a dividend for the period.
7 Copies of interim results
Copies of the interim results can be obtained from the website www.prospexoiland gas.com. From this site you may access our financial reports and presentations, recent press releases and details about the company and its operations.
* * ENDS * *
This information is provided by RNS