Source - RNS
RNS Number : 8081J
Solo Oil Plc
14 September 2016
 

For Immediate Release

14 September 2016

 

Solo Oil plc

("Solo" or the "Company")

 

UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2016

 

Chairman's Statement

 

The Company has continued to advance its portfolio of oil and gas investments in the first half of 2016 with several major milestones occurring in that period; most significantly the signing of a gas sales agreement for Kiliwani North in Tanzania in January followed in April by first gas from the project, and the successful testing of the Horse Hill oil discovery in the UK providing considerable support to the concept of a commercial discovery.  Whilst market conditions remain somewhat volatile and uncertain the Company has taken prudent measures to cut costs and to focus on the existing core assets in Tanzania and the UK. 

 

Highlights for the period include:

 

Tanzania

·     Gas Sales Agreement ("GSA") was executed with the Tanzanian Petroleum Development Corporation ("TPDC") for a price of US$3.00 per mmBTU

·     First gas was achieved from Kiliwani North-1 ("KN-1") on 4 April 2016

·     Commissioning of the Song Songo Island Gas Plant was completed and testing of the KN-1 well up to over 30 mmscfd was undertaken

·     Solo increased its interest in KN-1 from 6.175% to 7.175% and holds an option to increase its interest to up to 8.75% as project performance milestones are achieved

·     Following the mid-year, first revenue from Kiliwani North was received in line with the GSA

·     A 12-month extension of the Ruvuma PSA was granted by TPDC and endorsed by the Tanzanian Minister of Petroleum

·     Ruvuma PSA operator Aminex plc announced its intention to drill two Ntorya appraisal wells starting in 2016 and that site preparation for the first well, Ntorya-2, was underway

 

United Kingdom

·     Horse Hill-1 well ("HH-1") was tested with the Kimmeridge Limestones produced at natural flow rates of over 460 and 900 barrels of oil per day gross ("bopd") from naturally fractured intervals in the Lower and Upper Kimmeridge respectively

·     Pumped production, constrained by pump size, of up to a gross 320 bopd was obtained from the Portland Sandstone reservoir during testing of that interval at HH-1 in March

·     The Company was formally awarded a 30% working interest in PEDL 331 on the Isle of Wight and announced its intention, with operator UK Oil and Gas Investments ("UKOG"), to pursue the previously discovered Arreton-2 field as part of an initial work program

·     The resources of the HH-1 Portland discovery were upgraded in July by 200 percent in a reserves report by Xodus for UKOG

 

Corporate

·     On 7 April the Company raised a total of £0.8 million before financing costs through the allotment of 320 million shares in private placements at a price of 0.25p

·     Following the AGM on 10 August the Board was restructured with the appointment of Dan Maling as Finance Director and the retirement of Sandy Barblett as a non-executive director, to be replaced by Don Strang the former Finance Director

 

 

 

 

Review of Investments for the period:

 

1.    Tanzania, Kiliwani North (7.175% interest)

 

In 2014 Solo agreed with Aminex to acquire up to a 13% working interest in the Kiliwani North Development Licence ("KNDL") on Songo Songo Island.  The Kiliwani North-1 ("KN-1") well was drilled by Aminex and its partners in 2008 and discovered gas in a 60 metre column in the Lower Cretaceous.  Based on well test results Kiliwani North-1 is expected to be flowed at a rate of up to 30 mmscfd once on stream through a short tie-in pipeline to the Songo Songo Island gas processing facility, and from there to the newly constructed 36-inch pipeline to Dar es Salaam.

 

Solo acquired an initial 6.5% interest in the KNDL project for US$3.5 million in 2015 and subsequently announced its intention to increase its stake to 10% through the acquisition of three additional tranches of project equity linked to project milestones at the Company's option.  Solo's original stake of 6.5% was subsequently reduced by way TPDC's back-in to the project for a 5% interest which reduced Solo's holding to 6.175%.  Back-in by the State Company is viewed as a positive move since it aligns the KNDL partnership with national objectives.

 

The condition precedent for further acquisition of project equity by Solo was the signature of a gas sales agreement ("GSA") which was achieved in January 2016.  The subsequently agreed tranche milestones were the commencement of gas production which was achieved in April 2016, the receipt of first cash revenue and the declaration of commercial (post-commissioning) gas production under the take-or-pay arrangements of the GSA. The first of these milestones has been reached and Solo has increased its direct participation to 7.175%.  Receipt of first revenue occurred in August 2016 and the Company has elected not to increase equity in KNDL to 8.425% in order to focus on investments in the Ruvuma PSC.  The Company retains the option to increase its KNDL stake by a further 1.575% to 8.75% when commercial operations are officially declared.

 

The GSA signed with TPDC for KN-1 gas contains payment guarantees in US Dollars ("US$") and is linked to a price escalation formula commencing at US$3.00 per million BTU ("mmBTU") and rising from January 2016.  The main contract phase is a depletion contract with take-or-pay provisions for 85% of the daily minimum quantity of gas to be supplied, initially set at a gross 20 mmscfd.  Payment for gas during the commissioning phase is based on the agreed tariff on an "as supplied" basis and no minimum quantity is guaranteed under the contract.  Commissioning of the Songo Songo Island gas processing plant commenced in early April 2016 and was essentially complete by end July.

 

Independently verified gas in place was confirmed by LR Senergy in a CPR in May 2015.  LR Senergy computed gross mean gas in place of 44 bcf of which 28 bcf have been attributed as best estimate contingent resources. These contingent resources will be converted to reserves once the GSA comes into full force on commercial gas production, which anticipated to be in the third or fourth quarter of 2016.

 

2.    Tanzania, Ruvuma Basin (25% interest)

 

Solo holds a 25% interest in the Ruvuma Petroleum Sharing Agreement ("Ruvuma PSA") in the south-east of Tanzania covering an area of approximately 3,447 square kilometres of which approximately 90% lies onshore and the balance offshore.  The Ruvuma PSA is in a region of southern Tanzania where very substantial gas discoveries have been made offshore in recent years and where gas has also been discovered onshore and along the coastal islands at Ntorya, Mnazi Bay and Songo Songo Island.

 

The Ntorya gas-condensate discovery, made in 2012 and operated by Aminex plc ("Aminex"), represents the most immediate commercialisation opportunity in the Ruvuma PSC.  The Ntorya-1 well was flow testing over a 3.5 metres zone at the top of the gross 25 metre gas bearing interval produced at a maximum gross flow rate of 20.1 million cubic feet per day ("mmscfd") and 139 barrels per day ("bpd") of 53 degree API condensate through a 1-inch choke.  The well is currently suspended as a discovery for subsequent additional testing or production. An early production scheme involving local use of the gas or its conversion to power is under consideration.

 

Based on an infill 2D seismic programme around Ntorya-1 a re-estimation of the discovered and prospective resources in the Likonde-Ntorya area was made and subsequently audited by Senergy (GB) Limited ("LR Senergy") who issued a Competent Person's Report ("CPR") in May 2015.  LR Senergy estimated that Ntorya contains a gross 158 bcf of proven gas in place, of which they attribute a gross 70 bcf as best estimate contingent resources.  Overall in the Ruvuma PSA, LR Senergy estimate gross 4.17 trillion cubic feet ("tcf") of discovered and undiscovered gas in place.   Contingent resources are expected to be converted to reserves once a commercial development and export scheme is approved.

 

The partners in the Ruvuma PSA are planning the drilling of two appraisal well in order to firm up these resource volumes and to commence gas sales negotiations.  Two appraisal well locations have been selected, Ntorya-2 and -3, and it is anticipated that the first of these wells could be spudded before end 2016.  At the time of this report site preparation is well advanced at Ntorya-2 location.

 

In order to fund the drilling of the appraisal wells Solo is again considering a farmout of a portion of its 25% interest in return for a financial carry on the appraisal.  Solo is currently contacting potentially interested parties and hopes to finalise arrangements prior to the spudding of Ntorya-2. The Company remains open minded as to farmout arrangements and will consider offers on their merits.

 

 

3.    Horse Hill, Weald Basin, UK (6.5% interest)

 

In 2014 the Company acquired a 10% interest in a special purpose company, Horse Hill Developments Limited ("HHDL"), which became the operator and 65% interest holder in two Petroleum Exploration and Development Licences, PEDL 137 and 246, in the northern Weald Basin between Gatwick Airport and London. 

 

The PEDL 137 licence covers 99.29 square kilometres (24,525 acres) to the north of Gatwick Airport in Surrey and contains the Horse Hill discovery and several other exploration leads.  PEDL 246 covers an area of 43.58 square kilometres (10,769 acres) and lies immediately adjacent and to the east of PEDL 137. 

 

The Horse Hill-1 ("HH-1") well commenced drilling operations in September 2014 and reached total depth at 8,870 feet MD in November 2014.  Evaluation of electric logs and other data collected from the well resulted in the announcement on 24 October 2014 of a conventional Upper Portlandian Sandstone oil discovery. Subsequent analysis of the Kimmeridge, Oxfordian and Liassic sections in the well indicated that there was also substantial in place oil in the naturally fractured Kimmeridge Limestones and associated mudstones.

 

Approval for the testing of all three oil bearing zones was granted in late 2015 and the tests commenced in early February 2016.  Tests lead to naturally flowing oil rates of the Kimmeridge Limestones at a gross rate of 460 bopd from the Lower interval and 900 bopd from the upper interval.  The Portland Sandstone was placed on pump to stimulate flow and achieved a maximum gross stable rate in excess of 320 bopd.  These flow rates substantially exceeded the expectations for the well and rank alongside some of the highest rates ever achieved on test for any UK onshore well.

 

Following the testing of the Portland Sandstone, when higher productivity and a lower than expected water cut were observed, further analysis on the electric logs has led to a 200% increase in the anticipated gross oil in place at this stratigraphic level.  Previous estimates of oil in place within the Portland Sandstone were 7.7 mmbbls per square mile and were increased to 22.9 mmbbls. Based on the original closure estimated by Xodus in 2015 this would increase the overall oil in place within the Horse Hill Portlandian discovery to 62.5 mmbbls. 

 

The relevant licences have been extended to permit further work and UKOG has indicated that it hopes to perform long term testing on all three zones as part of a wider appraisal program that includes 3D seismic and further drilling.  Planning permission is presently being sought for the next phase of testing which will establish the parameters of any development scheme and the commerciality of production from the various oil bearing intervals.

 

 

 

 

4.    PEDL 331, Isle of Wight, UK (30% interest)

 

An application was made jointly with UK Oil and Gas Investments plc ("UKOG") and Angus Energy Limited (who subsequently sold this interest to Doriemus plc ("Doriemus")) for a 200 square kilometre onshore block in the south and central portion of the Isle of Wight in the UK 14th Landward Licensing Round.   Solo holds a 30% interest in this joint venture.

 

The UK Oil and Gas Authority ("OGA") have now issued the licence, PEDL 331, to the UKOG-Solo-Doriemus partnership.  Based on work by UKOG and confirmed by independent work by Solo Arreton-2, originally drilled in 1974 but never tested, is now considered to be an oil discovery on the Arreton Main Field.  When taken together with the adjacent prospects Xodus has calculated a P50 gross oil in place estimate of 219 mmbbls in conventional reservoirs within the Purbeck, Portland and Inferior Oolite limestone reservoirs at Arreton.  Arreton Main is considered by Xodus to contain most likely (P50) contingent resource net to Solo's interest in PEDL 331 of 4.7 mmbbls.

 

UKOG will become operator of PEDL 331 and has commenced discussions with the local planning authorities and expects to seek regulatory consents to appraise the Arreton Main oil discovery in the coming years.

 

5.    Burj Africa, Nigeria, West Africa (20% interest)

 

Between 2013 and 2015 Solo made an investment various ventures aimed at accessing known reserves in fields in Nigeria.  These have resulted in a 20% interest in Burj Petroleum Africa Limited ("Burj Africa") a company which had applied for various undeveloped fields in the 2014 Nigerian Marginal Fields Bid Round ("Marginal Fields Round") along with joint venture partners Global Oil and Gas ("Global") and Truvent Consulting.  

 

Two adjacent marginal fields have been applied for containing 10 wells previously drilled by an international major oil and gas company.  These fields are believed by Burj Africa and its partners to contain gross proven, probable and possible recoverable oil reserves of 59.3 mmbbls, approximately 13.5 mmbbls net to Burj Africa after payment of royalties.

 

Award of these blocks and any subsequent operations continues to be subject to Nigerian government approval. Recent developments in the world oil markets and specific to Nigeria have significantly delayed the issue of new licences under the envisaged Marginal Fields Round.  The Company continues to monitor developments in Nigeria and looks forward to further news in due course.

 

6.    Ontario, Canada (28.56% interest)

 

Solo holds an interest in 23,500 acres of petroleum leases in southern Ontario which contain a number of Ordovician reefal structures which contain variously oil, gas and condensate.  The operator, Reef Resources Inc., has been unable to raise the necessary funds to continue the development of the Ausable gas condensate field and no alternative has so far been found to unlock the potential.  Solo's management continues to seek ways to advance or monetise the investment made in the Ausable and adjacent Airport fields, and hopes to report progress in due course. No material progress has however been achieved in 2016 year to date.

 

7.    Morocco

 

In 2015 Solo acquired a small seed interest in the shares Canadian listed oil and gas company, Maxim Resources, with a view to acquiring an interest in a possible onshore gas production asset in Morocco. This is a very early stage seed investment and will be reported on more fully as the project takes shape.

 



 

Financial Results

 

During the year to date in order to fund its ongoing investments the Company raised gross proceeds of £0.8 million in new equity by way of the placing of 320 million new shares at 0.25p each.

 

The Company's operating loss for the period was £373,000 (30 June 2015: £372,000 loss).  In addition, further charges of £37,000 (30 June 2015: £679,000) relates to the provision for potential losses on the financial instrument (the Equity Swap Agreement) with YA Global Master SPV Ltd as announced on 24 September 2014 and £2,000 (30 June 2015: £49,000) for finance charges.

 

Immediate Outlook

 

The Company has made significant advances in its investments in Tanzania and the UK in the last reporting period and is now on production and receiving revenue from its Kiliwani North investment.  The Ruvuma PSC which holds the Ntorya gas condensate discovery has been extended and is targeted for early appraisal drilling.  The Horse Hill discovery has yielded exceptionally high flow rates at all three productive levels and further long term testing is now planned to design a commercial development.  Additionally, the Company has added prospective acreage including the Arreton-2 discovery in a new onshore licence in the Isle of Wight, providing further material prospectivity and oil production potential for future years.

 

Short term focus will be maintained on the Tanzania and UK portfolio whilst energy market volatility persists.  The Company is increasingly focussed on cost efficiency in its small head office function and anticipates further reductions in costs in the second half of the year.

 

 

Neil Ritson

Chairman

14 September 2016

 

 

Competent Person's statement:

The information contained in this document has been reviewed and approved by Neil Ritson, Chairman for Solo Oil Plc.  Mr Ritson is a member of the Society of Petroleum Engineers, a Fellow of the Geological Society, an Active Member of the American Association of Petroleum Geologists and has over 38 years relevant experience in the oil industry.

 

 

Glossary and Notes

 

2D seismic

seismic data collected using the two-dimensional common depth point method

3D

three-dimensional

AIM

London Stock Exchange Alternative Investment Market

API

American Petroleum Institute

barrel or bbl

45 US gallons

bbls

barrels of oil

bcf

billion cubic feet

best estimate or P50

the most likely estimate of a parameter based on all available data, also often termed the P50 (or the value of a probability distribution of outcomes at the 50% confidence level)

billion

10 to the power 9

bopd

barrels of oil per day

contingent resources

those quantities of petroleum estimated, at a given date, to be potentially recoverable from known accumulations, but the associated projects are not yet considered mature enough for commercial development due to one or more contingencies

CPR

Competent Persons Report

discovery

a petroleum accumulation for which one or several exploratory wells have established through testing, sampling and/or logging the existence of a significant quantity of potentially moveable hydrocarbons

electric logs

tools used within the wellbore to measure the rock and fluid properties of the surrounding formations

GIIP

gas initially in place

GSA

gas sales agreement

HH-1

Horse Hill-1 well

HHDL

Horse Hill Developments Limited

KN-1

Kiliwani North-1 well

KNDL

Kiliwani North Development Licence

m

thousand (ten to the power 3)

mm

million (ten to the power 6)

mmbbls

million barrels of oil

mmscf

million standard cubic feet of gas

mmscfd

million standard cubic feet of gas per day

OGA

UK Oil and Gas Authority (formally the Department of Energy and Climate Change)

oil in place or STOIIP

stock tank oil initially in place, those quantities of oil that are estimated to be in known reservoirs prior to production commencing

pay

reservoir or portion of a reservoir formation that contains economically producible hydrocarbons. The overall interval in which pay sections occur is the gross pay; the portion of the gross pay that meets specific criteria such as minimum porosity, permeability and hydrocarbon saturation are termed net pay

PEDL

Petroleum Exploration and Development License

permeability

the capability of a porous rock or sediment to permit the flow of fluids through the pore space

petrophysics

the study of the physical and chemical properties of rock formations and their interactions with fluids

play

a set of known or postulated oil or gas accumulations sharing similar geologic properties

porosity

the percentage of void space in a rock formation

prospective resources

those quantities of petroleum which are estimated, at a given date, to be potentially recovered from undiscovered accumulations

proven reserves

those quantities of petroleum, which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be commercially recoverable (1P), from a given date forward, from known reservoirs and under defined economic conditions, operating methods, and government regulations

probable reserves

those additional reserves which analysis of geoscience and engineering data indicate are less likely to be recovered than Proved Reserves but more certain to be recovered than Possible Reserves. It is equally likely that actual remaining quantities recovered will be greater than or less than the sum of the estimated Proved plus Probable Reserves (2P)

possible reserves

those additional reserves which analysis of geoscience and engineering data suggest are less likely to be recoverable than Probable Reserves. The total quantities ultimately recovered from the project have a low probability to exceed the sum of Proved plus Probable plus Possible (3P) Reserves, which is equivalent to the high estimate scenario

PSA

petroleum sharing agreement

PRMS

Petroleum Resources Management System

reserves

those quantities of petroleum anticipated to be commercially recovered by application of development projects to known accumulations from a given date forward under defined conditions

reservoir

a subsurface rock formation containing an individual natural accumulation of moveable petroleum

SPE

Society of Petroleum Engineers

tcf

trillion cubic feet

trillion

10 to the power 12

unconventional reservoir

widely accepted to mean those hydrocarbon reservoirs that are tight; that is have low permeability

 

The estimates provided in this statement are based on the Petroleum Resources Management System ("PRMS") published by the ("SPE") and are reported consistent with the SPE's 2011 guidelines.   All definitions used in the announcement have the meaning given to them in the PRMS.

 

For further information:

Solo Oil plc

Neil Ritson/Daniel Maling

 

+44 (0) 20 3794 9230



Beaumont Cornish Limited

Nominated Adviser and Joint Broker

Roland Cornish

+44 (0) 20 7628 3396

 

Shore Capital

Joint Broker

Pascal Keane /Jerry Keen

 

Cassiopeia Services

Investor and Media Relations

Stefania Barbaglio

 

+44 (0) 20 7408 4090

 

 

 

 

+44 (0) 79 4969 0338

 



 

CONDENSED INTERIM INCOME STATEMENT



Six months ended

Six months ended

Year ended


Notes

30 June 2016

30 June 2015

31 December 2015



(Unaudited)

(Unaudited)

(Audited)



£ 000's

£ 000's

£ 000's

Revenue


-

-

-

Gross profit


-

-

-

Administrative expenses


(373)

(372)

(906)

Operating (loss)


(373)

(372)

(906)






Impairment charge


-

-

(875)

Finance costs


(2)

(49)

(386)

Finance revenue


-

-

-

Provision for losses on financial instrument


(37)

(679)

(606)

(Loss) on ordinary activities before taxation


(412)

(1,100)

(2,773)






Income tax (expense)


-

-

-

Retained (Loss) for the period attributable to equity holders of the Company


(412)

(1,100)

(2,773)











Loss per share (pence)





Basic and diluted

2

(0.01)

(0.02)

(0.04)

 

CONDENSED INTERIM STATEMENT OF OTHER COMPREHENSIVE INCOME



Six months ended

Six months ended

Year ended


Notes

30 June 2016

30 June 2015

31 December 2015



(Unaudited)

(Unaudited)

(Audited)



£ 000's

£ 000's

£ 000's

Loss for the period


(412)

(1,100)

(2,773)






Decrease in value of Available for sale assets


(14)

(41)

(78)






Total comprehensive income


(426)

(1,141)

(2,851)

 



 

CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION



As at

As at

As at


Notes

30 June 2016

30 June 2015

31 December 2015



(Unaudited)

(Unaudited)

(Audited)



£ 000's

£ 000's

£ 000's

Non-current assets





Intangible assets


11,783

11,515

11,392

Available for sale assets


1,203

1,809

1,192

Total non-current assets


12,986

13,324

12,584






Current assets





Trade and other receivables

3

791

1,123

523

Derivative financial instrument


-

-

-

Cash and cash equivalents


362

1,344

824

Total current assets


1,153

2,467

1,347

Total assets


14,139

15,791

13,931






Current liabilities





Trade and other payables


(183)

(176)

(234)

Derivative financial instrument


(351)

(189)

(314)

Borrowings


-

(477)

(112)

Total liabilities


(534)

(842)

(660)






Net assets


13,605

14,949

13,271






Equity





Share capital


588

556

556

Deferred share capital


1,831

1,831

1,831

Share premium reserve


25,805

25,062

25,077

Share-based payments


884

936

884

AFS reserve


(96)

(45)

(82)

Retained loss


(15,407)

(13,391)

(14,995)

Total equity attributable to equity holders of the parent  


13,605

14,949

13,271



 

CONDENSED INTERIM STATEMENT OF CASH FLOWS



Six months ended

Six months ended

Year ended



30 June 2016

30 June 2015

31 December 2015



(Unaudited)

(Unaudited)

(Audited)



£ 000's

£ 000's

£ 000's

Cash outflow from operating activities





Operating loss


(373)

(372)

(906)

Adjustments for:





Share-based payments


-

-

-

(Increase)/decrease in receivables


(268)

(149)

451

(Decrease)/increase in payables


(51)

(4)

54

Foreign exchange loss


(9)

8

6

Net cash (outflow) from operating activities


(701)

(517)

(395)






Cash flows from investing activities





Interest received


-

-

-

Payments to acquire intangible assets


(391)

(2,472)

(2,649)

Payment to acquire derivative financial instrument


-

-

(110)

Payments to acquire available for sale investment


(8)

(133)

(132)

Net cash outflow from investing activities


(399)

(2,605)

(2,891)






Cash flows from financing activities





Repayments of borrowings


(122)

(396)

(754)

Proceeds from borrowings


-

336

336

Finance costs


-

(49)

(62)

Proceeds on issuing of ordinary shares


800

2,700

2,700

Cost of issue of ordinary shares


(40)

(146)

(131)

Net cash inflow from financing activities


638

2,445

2,089






Net (decrease)/increase in cash and cash equivalents


(462)

(677)

(1,197)






Cash and cash equivalents at beginning of period


824

2,021

2,021






Cash and cash equivalents at end of period


362

1,344

824


CONDENSED STATEMENT OF CHANGES IN EQUITY


Share capital

Deferred  share capital

Share premium

Share based payments

AFS
reserve

Accumulated losses

Total


£000's

£000's

£000's

£000's

£000's

£000's

£000's

Balance at 31 December 2014

501

1,831

22,360

936

(4)

(12,291)

13,333









Loss for the period

-

-

-

-

-

(2,773)

(2,773)

Decrease in value of Available for sale assets

-

-

-

-

(78)

-

(78)

Total comprehensive income

-

-

-

-

(78)

(2,773)

(2,851)









Share issue

55

-

2,848

-

-

-

2,903

Cost of share issue

-

-

(131)

-

-

-

(131)

Share-based payment charge

-

-

-

17

-

-

17

Share options expired

-

-

-

(69)

-

69

-

Total contributions by and distributions to
owners of the Company

55

-

2,717

(52)

-

69

2,789









Balance at 31 December 2015

556

1,831

25,077

884

(82)

(14,995)

13,271









Loss for the period

-

-

-

-

-

(412)

(412)

Decrease in value of Available for sale assets

-

-

-

-

(14)

-

(14)

Total comprehensive income

-

-

-

-

(14)

(412)

(426)









Share capital issued

32

-

768

-

-

-

800

Cost of share issue

-

-

(40)

-

-

-

(40)

Total contributions by and distributions to
owners of the Company

32

-

728

-

-

-

760









Balance at 30 June 2016

588

1,831

25,805

884

(96)

(15,407)

13,605


NOTES TO CONDENSED INTERIM FINANCIAL INFORMATION

1              BASIS OF PREPARATION

 

The financial information has been prepared under the historical cost convention and on a going concern basis and in accordance with International Financial Reporting Standards and IFRIC interpretations adopted for use in the European Union ("IFRS") and those parts of the Companies Act 2006 applicable to companies reporting under IFRS.

 

The condensed interim financial information for the period ended 30 June 2016 has not been audited or reviewed in accordance with the International Standard on Review Engagements 2410 issued by the Auditing Practices Board. The figures were prepared using applicable accounting policies and practices consistent with those adopted in the statutory accounts for the period ended 31 December 2015. The figures for the period ended 31 December 2015 have been extracted from these accounts, which have been delivered to the Registrar of Companies, and contained an unqualified audit report.

 

The condensed interim financial information contained in this document does not constitute statutory accounts. In the opinion of the directors the financial information for this period fairly presents the financial position, result of operations and cash flows for this period.

 

This Interim Financial Report was approved by the Board of Directors on 14 September 2016.

 

Statement of compliance

 

These condensed company interim financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union with the exception of International Accounting Standard ('IAS') 34 - Interim Financial Reporting. Accordingly the interim financial statements do not include all of the information or disclosures required in the annual financial statements and should be read in conjunction with the Company's 2015 annual financial statements.

 

2              LOSS PER ORDINARY SHARE

 

The calculation of earnings per share is based on the loss after taxation divided by the weighted average number of share in issue during the period:

 


Six months to

Six months to

Year ended


30 June 2016

30 June 2015

31 December 2015


(Unaudited)

(Unaudited)

(Audited)





Net loss after taxation (£ 000's)

(412)

(1,100)

(2,773)





Weighted average number of ordinary shares used in calculating basic earnings per share (millions)

5,780.4

5,292.9

5,417.2





Basic loss per share (pence)

(0.01)

(0.02)

(0.04)

 

As the inclusion of the potential ordinary shares would result in a decrease in the loss per share they are considered to be anti-dilutive and, as such, a diluted loss per share is not included.

 

3              TRADE AND OTHER RECEIVABLES

 


Six months to

Six months to

Year ended


30 June 2016

30 June 2015

31 December 2015

Current trade and other receivables

(Unaudited)

(Unaudited)

(Audited)

Loan to HHDL

658

360

369

Prepayments

22

96

66

Other debtors

111

667

88

Total

791

1,123

523

4              EVENTS AFTER THE REPORTING DATE.

There are no events after the end of the reporting date to disclose.

5              A copy of this interim statement is available on the Company's website www.solooil.co.uk.


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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