Source - RNS
RNS Number : 8815J
Sound Energy PLC
15 September 2016
 

15 September 2016

SOUND ENERGY PLC

("Sound Energy" or the "Company")

 

 

HALF YEARLY REPORT FOR THE SIX MONTHS ENDED 30 JUNE 2016

 

Sound Energy, the European and African focused upstream oil and gas company, announces its unaudited half year report for the six months ended 30 June 2016.

 

Half-year Highlights

Morocco

·     Significant gas discovery with the potential for a multi Tcf connected gas field, at Tendrara (onshore Morocco)

·     First Tendrara well, TE-6, encountered approximately 28 metres of net gas pay in the TAGI reservoir, flow achieved pre-simulation, 17 mmscf/d achieved on test

·     Significant near term development plan to secure near term cash flow

·     Oil & Gas Investment Fund S.A.S. ("OGIF"), the partner on the licence, has expressed interest to fund a new pipeline connecting Tendrara to the Gazoduc Maghreb Europe ("GME") pipeline

·     Second well on Tendrara, was spud on 25 August 2016, with a view to proving a sub-horizontal drilling concept

·     Secured the Meridja exploration permit, adjacent to Tendrara

·     Acquisition and farm-out of Sidi Moktar licences

Italy

·     Final Badile drilling permission received in May 2016

·     First farm-out secured with Schlumberger who will fund €7.5 m of first well at Badile in exchange for an option on 20% of the licence

·     Memorandum of Understanding regarding a rig contract in relation to Badile signed with Pergemina SPA

Corporate

·     Brian Mitchener, a proven world class hydrocarbon finder, joined the team as Executive Vice President, Exploration

·     Inclusion in FTSE AIM UK 50 Index with effect from Monday 19 September 2016 and migration of trading to SETS, the LSE premier electronic trading service

·     Completion of group debt-refinancing with issue of 5-year €28.8 million bonds

Upcoming milestones

·     TE-7 drilling results and extended well test

·     Planned drilling of an outpost well on Tendrara with a view to proving the multi Tcf potential

·     Countdown to second Strategic Play, Badile

 

 

 

For further information please contact:

Vigo Communications - PR Adviser

Patrick d'Ancona

Chris McMahon

Alexandra Roper

 

 

Tel: +44 (0)20 7830 9700

Sound Energy

James Parsons, Chief Executive Officer 

 

 

[email protected]

 

Smith & Williamson - Nominated Adviser

Azhic Basirov

David Jones

Ben Jeynes 

 

 

Tel: +44 (0)20 7131 4000

Cantor Fitzgerald Europe - Broker

Sarah Wharry

David Porter

 

Tel: +44 (0)20 7894 8896

 

 

Statement from the Chairman and Chief Executive Officer

 

Whilst the challenging sector backdrop continues, Sound Energy is delivering its counter cyclical growth agenda, leveraging its world class portfolio, people and partners.

In August 2016, we were delighted to announce a resounding success at our first strategic play with a material gas discovery at Tendrara following the successful drilling of our first well on the structure. This success was shared with Schlumberger, our strategic partner, who both technically de-risks the asset as well as providing funding for the first three wells.

The results seen at TE-6, together with the lack of a gas/water contact at any of the historical wells, suggests the possibility of a significant gas column within a continuous extended structure and therefore a potential multi Tcf gas field. We are continuing our appraisal of the Tendrara licence area, with the spud of TE-7 on 25 August 2016. This well aims to prove sufficient volumes for a concession application as well as proving the benefits of sub-horizontal drilling.

We will begin to unlock the long term potential of Tendrara with the drilling of one or more outpost wells and the shooting of additional seismic.

The Company has also recently secured, subject to regulatory and other approvals, a 55% interest in the Meridja exploration permit, which is adjacent to the Tendrara licence and shares the same fundamental geology.

Following securing the final permission to drill the Badile prospect, onshore Italy, in May 2016, the countdown to our second Strategic Play has been initiated. A key step in this process has been the expansion of the Schlumberger partnership to include Badile, with Schlumberger gaining access to a 20% profit interest in the licence in exchange for funding 30% of the estimated cost of the first well and 20% of all costs thereafter. We also continue to finalise the acquisition of the 75% operated asset in the Sidi Moktar licences, onshore Morocco, and thus our third Strategic Play, with regulatory approvals expected shortly.

Our portfolio continues to include a blend of high upside exploration assets, low risk appraisal/development assets and production, which is diversified across Italy and Morocco. The pursuit of an onshore regional gas strategy, underpinned by solid European gas fundamentals and a stable, growing, gas-hungry country in Morocco has enabled the Company to continue to flourish.

The Company remains in a strong financial position, with a cash balance of $27 million at 31 August 2016 after the receipt of $1.1 million Indonesian contingent consideration, the drilling of TE-6 and the completion of its planned debt refinancing during the summer.

2016 is looking to be a pivotal year for the Company.

Our achievements would not have been possible without the efforts of our people, the governments and partners we work with and our supportive shareholders. We would like to take this opportunity to thank all of them.

"2016 has been an incredibly exciting period for the Company so far, with Tendrara, Meridja and the Eastern Morocco TAGI play having demonstrated the potential to be a material hydrocarbon province and therefore to transform both Sound Energy and the Moroccan gas industry."

Stephen Whyte                                             James Parsons

Chairman                                                      CEO

 

Operations update

 

Multi Tcf Potential in Eastern Morocco

"A rate of 17 mmscf/d was achieved. This rate is significantly above initial expectations and represents a highly commercial rate."

Tendrara and Meridja

 

Value from discovery

During the first half of 2016, the first Tendrara well, TE-6, was drilled to a measured vertical depth of 2,665 metres and successfully encountered approximately 28 metres of net gas pay in the TAGI reservoir. Flow was achieved pre-stimulation and, post-stimulation, a rate of 17 mmscf/d (0.5 million scm/d) was achieved. This rate is significantly above initial expectations and represents a highly commercial rate.

The reservoir bottom hole pressure recorded was 420 bars and the static pressure recorded in the well correlates, in terms of gas gradient, with all of the wells previously drilled in the licence area. The combination of these factors together with the fact that none of the historically drilled wells on the licence have identified a gas/water contact, suggests the possibility of a significant gas column within a continuous extended structure.

Realising potential

The Company's second well on the licence, TE-7, was spud on 25 August 2016, with a view to proving sufficient gas volumes and well deliverability to enable finalisation of the field development plan and a concession application. The well objectives include demonstrating the benefits of sub-horizontal drilling, which is expected to be implemented as the production well concept for Tendrara.

The TE-7 site, lies between TE-5 and TE-6 and is approximately 830 metres to the Northeast of TE-5 and 1.6 kilometres from TE-6. Drilling is planned to reach a total measured depth of 3,440 metres with specific tools being used to geo steer the well at close to an 88 degree angle inside the TAGI reservoir to ensure a horizontal drain of between 600 and 900 metres. The sub-horizontal section will run to the North, parallel to the minimum horizontal stress observed in TE-6. An extended well test will follow clean-up and initial testing will take approximately 70 days thereafter to confirm production sustainability and to aid comprehensive field development planning.

The Company, in conjunction with Schlumberger, is currently considering options for one or more outpost wells, as well as further studies, required to prove the potential of the structure. This may include and extend beyond the reservoir identified at TE-2, some 30km to the North East of TE-6.

The Company exercised its option to acquire, subject to regulatory and other approvals, a 55% participating interest in the Meridja exploration permit, onshore Morocco, from OGIF in June 2016. The Meridja licence area is adjacent to the Tendrara licence and is a highly prospective 9,000 km2 area with the same fundamental geology as Tendrara.

 

 

Condensed Interim Consolidated Income Statement

 

Notes

Six months ended

30 June 2016

Unaudited

£'000s

Six months ended

 30 June

 2015

Unaudited

£'000s

Year

ended

 31 Dec 2015

Audited

£'000s

Revenue

 

529

478

859

Other income

 

715

 

 

Operating costs

 

(801)

(291)

(538)

Impairment of producing assets

 

-

-

(6,347)

Exploration costs

 

(28)

(1)

(5,838)

Gross profit/(loss)

 

415

186

(11,864)

Administrative expenses

 

(2,346)

(1,490)

(3,181)

Group operating loss from continuing operations

 

(1,931)

(1,304)

(15,045)

Finance revenue

5

2,717

12

52

Foreign exchange gain/(loss)

 

807

(2,000)

(1,389)

External interest costs

 

(1,183)

(602)

(1,905)

Profit/(loss) for period before taxation

 

410

(3,894)

(18,287)

Tax expense

 

-

-

-

Profit/(loss) for period after taxation

 

410

(3,894)

(18,287)

Other comprehensive (loss)/income

 

 

 

 

Foreign currency translation income/(loss)

 

631

(100)

(320)

Total comprehensive profit/(loss) for the period

 

1,041

(3,994)

(18,607)

Profit/(loss) for the period attributable to:

 

 

 

 

Equity holders of the parent

 

1,041

(3,994)

(18,607)

Basic and diluted profit/(loss) per share for the period attributable to the equity holders of the parent (pence)

3

0.08

(0.91)

(3.90)

 

 

Condensed Interim Consolidated Balance Sheet

As at 30 June 2016

 

Notes

 

30 June

2016

Unaudited

£'000s

 

 30 June

 2015

Unaudited

£'000s

 

 31 Dec

2015

Audited

£'000s

Non-current assets

 

 

 

 

Property, plant and equipment

 

6,952

12,403

5,558

Intangible assets

4

14,204

13,859

9,564

Land and buildings

 

1,493

1,294

1,327

 

 

22,649

27,556

16,449

Current assets

 

 

 

 

Inventories

 

327

-

-

Other receivables

 

14,147

2,434

2,506

Prepayments

 

116

94

99

Cash and short term deposits

 

14,466

17,489

15,240

 

 

29,056

20,017

17,845

Total assets

 

51,705

47,573

34,294

Current Liabilities

 

 

 

 

Trade and other payables

 

10,028

3,626

2,097

Loans repayable in under one year

5

7,704

-

5,751

 

 

17,732

3,626

7,848

Non-current liabilities

 

 

 

 

Deferred tax liabilities

 

2,160

1,958

1,992

Loans due in over one year

5

9,152

13,538

7,157

Provisions

 

1,780

1,082

1,138

 

 

13,092

16,578

10,287

Total liabilities

 

30,824

20,204

18,135

Net Assets

 

20,881

27,369

16,159

Capital and Reserves

 

 

 

 

Equity share capital

 

86,868

83,086

86,315

Warrant Reserve

 

3,209

369

369

Foreign currency reserve

 

1,699

1,288

1,068

Accumulated deficit

 

(70,895)

(57,374)

(71,593)

Total Equity

 

20,881

27,369

16,159

 

 

Condensed Interim Consolidated Statement of Changes in Equity

 

Share

capital

£'000s

Share premium

£'000s

Accumulated

Deficit

£'000s

Warrant Reserve

£'000s

Foreign currency reserves

£'000s

Total

equity

£'000s

At 1 January 2016

5,039

81,276

(71,593)

369

1,068

16,159

Total Profit for the period

-

-

410

-

-

410

Other comprehensive income

-

-

-

-

631

631

Total comprehensive income for the period

-

-

410

-

631

1,041

Fair value of warrants issued with bonds

-

-

-

2,840

-

2,840

Issue of share capital

53

500

-

-

-

553

Share based payments

-

-

288

-

-

288

At 30 June 2016 (unaudited)

5,092

81,776

(70,895)

3,209

1,699

20,881

 

 

Share

capital

£'000s

Share

premium

£'000s

Accumulated

Deficit

£'000s

Warrant Reserve

£'000s

Foreign currency reserves

£'000s

Total

equity

£'000s

At 1 January 2015

4,153

67,145

(53,621)

369

1,388

19,434

Total Loss for the period

-

-

(18,287)

-

-

(18,287)

Other comprehensive income

-

-

-

-

(320)

(320)

Total comprehensive income/(loss)

-

-

(18,287)

-

(320)

(18,607)

Issue of share capital

886

15,342

-

-

-

16,228

Transaction costs

-

(1,211)

-

-

-

(1,211)

Share based payments

-

-

315

-

-

315

At 31 December 2015

5,039

81,276

(71,593)

369

1,068

16,159

 

 

Share

capital

£'000s

Share

premium

£'000s

Accumulated

Deficit

£'000s

Warrant Reserve

£'000s

Foreign currency reserves

£'000s

Total

equity

£'000s

At 1 January 2015

4,153

67,145

(53,621)

369

1,388

19,434

Total Loss for the period

-

-

(3,894)

-

-

(3,894)

Other comprehensive income

-

-

-

-

(100)

(100)

Total comprehensive income/(loss)

-

-

(3,894)

-

(100)

(3,994)

Issue of share capital

675

12,034

-

-

-

12,709

Transaction costs

-

(921)

-

-

-

(921)

Share based payments

-

-

141

-

-

141

At 30 June 2015 (unaudited)

4,828

78,258

(57,374)

369

1,288

27,369

 

 

Condensed Interim Consolidated Cash Flow Statement

 

Six months ended

30 June

2016

Unaudited

£'000s

Six months ended

30 June

2015

Unaudited

£'000s

Year

ended

 31 Dec

2015

Audited

£'000s

Cash flow from operating activities

 

 

 

Cash flow from operations

(377)

(1,593)

(3,487)

Interest received

51

12

52

Net cash flow from operating activities

(326)

(1,581)

(3,435)

Cash flow from investing activities

 

 

 

Purchase of drilling inventories

(327)

-

-

Capital expenditure and disposals

(470)

(292)

(1,156)

Exploration and development expenditure

(3,173)

(3,156)

(6,545)

Net cash flow from investing activities

(3,970)

(3,448)

(7,701)

CSTI Funding contract

(13)

(115)

(117)

Net proceeds from debt

5,292

-

-

Repayment of borrowings

(2,724)

-

-

Net proceeds from equity issue

553

11,163

15,017

Interest payments

(461)

(382)

(1,051)

Net cash flow from financing activities

2,647

10,666

13,849

Net (decrease)/increase in cash and cash equivalents

(1,649)

5,637

2,713

Net foreign exchange difference

875

(756)

(81)

Cash and cash equivalents at the beginning of the period

15,240

12,608

12,608

Cash and cash equivalents at the end of the period

14,466

17,489

15,240

 

 

Six months ended

30 June

2016

Unaudited

£'000s

Six months ended

30 June

2015

Unaudited

£'000s

Year

ended

 31 Dec

2015

Audited

£'000s

Cash flow from operations reconciliation

 

 

 

Profit/(loss) before tax

410

(3,894)

(18,287)

 Finance revenue

(2,717)

(12)

(52)

 Exploration expenditure written off and impairment of assets

-

-

12,185

 Increase/(decrease) in accruals and short term payables

7,104

(329)

(97)

 Depreciation

181

98

136

 Share based payments charge

288

141

315

 Finance costs and exchange differences

376

2,602

2,588

 Increase in short term receivables

(6,019)

(199)

(275)

Cash flow from operations

(377)

(1,593)

(3,487)

 

 

Notes to the Condensed Interim Consolidated Financial Statements

 

1. Basis of preparation

The condensed interim consolidated financial statements do not represent statutory accounts within the meaning of section 435 of the Companies Act 2016. The financial information for the year ended 31 December 2015 is based on the statutory accounts for the year ended 31 December 2015. Those accounts, upon which the auditors issued an unqualified opinion, have been delivered to the Registrar of Companies and did not contain statements under section 498(2) or (3) of the Companies Act 2006.

The condensed interim financial information is unaudited and has been prepared on the basis of the accounting policies set out in the Group's 2015 statutory accounts in accordance with IAS 34 Interim Financial Reporting.

The seasonality or cyclicality of operations does not impact on the interim financial statements.

2. Segment information

The Group categorises its operations into two business segments based on exploration and appraisal and development and production. The Group's exploration and appraisal activities are carried out in Morocco and Italy. The Group's reportable segments are based on internal reports about the components of the Group which are regularly reviewed by the Board of Directors, being the Chief Operating Decision Maker (''COMD''), for strategic decision making and resources allocation to the segment and to assess its performance. Sales during the period arose from producing licences in Italy. The segment results for the period ended 30 June 2016 are as follows:

Segment results for the period ended 30 June 2016

 

Corporate

£'000s

Development & Production

£'000s

Exploration & Appraisal

£'000s

Total

£'000s

Sales and other operating revenues

-

529

-

529

Other income

715

-

-

715

Operating costs

-

(801)

-

(801)

Exploration costs

-

-

(28)

(28)

Administration expenses

(2,346)

-

-

(2,346)

Operating loss segment result

(1,631)

(272)

(28)

(1,931)

Finance revenue

2,717

-

-

2,717

Finance costs and exchange gains

(376)

-

-

(376)

Profit/(loss) for the period before taxation

710

(272)

(28)

410

The segments assets and liabilities at 30 June 2016 are as follows:

 

Corporate

£'000s

Development & Production

£'000s

Exploration

& Appraisal

£'000s

Total

£'000s

Capital expenditure

274

6,678

15,697

22,649

Other assets

22,802

62

6,192

29,056

Total liabilities

(11,546)

(1,938)

(17,340)

(30,824)

 

The geographical split of non-current assets is as follows:

 

UK

£'000s

Italy

£'000s

Morocco

£'000s

Development and production assets

-

6,678

-

Land and buildings

-

1,493

-

Fixtures, fittings and office equipment

38

170

66

Goodwill

-

2,160

-

Exploration and evaluation assets

-

7,809

4,122

Software

103

8

2

Total

141

18,318

4,190

Segment results for the period ended 30 June 2015

 

Corporate

£'000s

Development & Production

£'000s

Exploration & Appraisal

£'000s

Total

£'000s

Sales and other operating revenues

-

478

-

478

Operating costs

-

(291)

-

(291)

Exploration costs

-

-

(1)

(1)

Administration expenses

(1,490)

-

-

(1,490)

Operating loss segment result

(1,490)

187

(1)

(1,304)

Finance revenue

12

-

-

12

Finance costs and exchange losses

(2,602)

-

-

(2,602)

Loss for the period before taxation

(4,080)

187

(1)

(3,894)

 

The segments assets and liabilities at 30 June 2015 were as follows:

 

Corporate

£'000s

Development & Production

£'000s

Exploration & Appraisal

£'000s

Total

£'000s

Capital expenditure

67

12,336

15,153

27,556

Other assets

20,017

-

-

20,017

Total liabilities

(1,958)

(6,669)

(11,577)

(20,204)

The geographical split of non-current assets is as follows:

 

UK

£'000s

Italy

£'000s

Development and production assets

-

12,336

Land and buildings

-

1,294

Fixtures, fittings and office equipment

42

25

Goodwill

-

1,959

Exploration and evaluation assets

-

11,813

Software

-

87

Total

42

27,514

 

Segment results for the year ended 31 December 2015

 

Corporate

£'000s

Development

& Production

£'000s

Exploration

 & Appraisal

£'000s

Total

£'000s

Sales and other operating revenues

-

859

-

859

Operating costs

-

(538)

-

(538)

Exploration costs

-

-

(5,838)

(5,838)

Impairment of producing assets

-

(6,347)

-

(6,347)

Administration expenses

(3,181)

-

-

(3,181)

Operating loss segment result

(3,181)

(6,026)

(5,838)

(15,045)

Interest receivable

52

-

-

52

Finance costs and exchange losses

(3,294)

-

-

(3,294)

Loss for the period before taxation

(6,423)

(6,026)

(5,838)

(18,287)

The segments assets and liabilities at 31 December 2015 were as follows:

 

Corporate

£'000s

Development

 & Production

£'000s

Exploration

& Appraisal

£'000s

Total

£'000s

Non-current assets

137

5,391

10,921

16,449

Current assets

17,845

-

-

17,845

Total liabilities

(7,743)

(1,498)

(8,894)

(18,135)

The geographical split of non-current assets is as follows:

 

UK

£'000s

Italy

£'000s

Morocco

£'000

Development and production assets

-

5,391

-

Land and buildings

-

1,327

-

Fixtures, fittings and office equipment

37

101

29

Goodwill

-

1,992

-

Exploration and evaluation assets

-

6,960

512

Software

100

-

-

Total

137

15,771

541

 

3. Profit/(loss) per share

The calculation of basic profit/(loss) per Ordinary Share is based on the profit/(loss) after tax and on the weighted average number of Ordinary Shares in issue during the period. The calculation of diluted profit/(loss) per share is based on the profit/(loss) after tax on the weighted average number of ordinary shares in issue plus weighted average number of shares that would be issued if dilutive options and warrants were converted into shares. Basic and diluted profit/(loss) per share is calculated as follows:

 

 

Profit/(loss) after tax from
continuing operations

Weighted average
shares in issue

Profit/(loss) per share (basic)
from continuing operations

 

June

2016

£'000s

June

2015

£'000s

December

2015

£'000s

June

2016

million

June

2015

million

December

2015

million

June

2016

pence

June

2015

pence

December

2015

pence

Basic

410

(3,894)

(18,287)

506

430

467

0.08

(0.91)

(3.90)

 

 

Profit/(loss) after tax from
continuing operations

Weighted average
shares in issue and dilutive

potential ordinary shares

Profit/(loss) per share (diluted)
from continuing operations

 

June

2016

£'000s

June

2015

£'000s

December

2015

£'000s

June

2016

million

June

2015

million

December

2015

million

June

2016

pence

June

2015

pence

December

2015

pence

Diluted

410

(3,894)

(18,287)

538

430

467

0.08

(0.91)

(3.90)

 

4. Intangibles

 

Six months ended

30 June

2016

Unaudited

£'000s

Six months ended

30 June

2015

Unaudited

£'000s

Year

ended

 31 Dec

2015

Audited

£'000s

Cost

 

 

 

At start of period

20,198

13,948

13,948

Additions

4,000

5,497

6,560

Exchange adjustments

657

(454)

(310)

At end of period

24,855

18,991

20,198

Impairment and Depreciation

 

 

 

At start of period

10,634

5,060

5,060

Charge for period

17

72

5,574

At end of period

10,651

5,132

10,634

Net book amount

14,204

13,859

9,564

On 8 August 2016, the Company announced a significant gas discovery at the Company's Tendrara licence, onshore Morocco. Capital expenditure will be incurred as additional wells are expected to be drilled before the end of 2016.

5. Loans and Borrowings

 

Six months ended

30 June

2016

Unaudited

£'000s

Six months ended

30 June

2015

Unaudited

£'000s

Year

ended

 31 Dec

2015

Audited

£'000s

Current liability

 

 

 

Other loans

7,704

 -

5,751

Non-current liability

 

 

 

5-year secured bonds

8,125

-

-

Other loans

1,027

13,538

7,157

 

9,152

13,538

7,157

On 21 June 2016, the Company announced that Greenberry S.A (''Greenberry'') had subscribed for 5- year non-amortising secured bonds with an aggregate value of the issue of EUR28.8 million (the ''bonds''). Alongside the bonds, the Company was to issue 70,312,500 warrants to subscribe for new ordinary shares in the Company at an exercise price of 30 pence per ordinary share and an exercise period of approximately five years, concurrent with the term of the bonds, to Greenberry (the ''warrants''). The bonds are secured over the share capital of Sound Energy Holdings Italy Limited. The bonds have a 5% coupon and were issued at a 32% discount to par value. A total cash fee of EUR1.1 million was payable by the Company to Greenberry.

The warrants were recorded within equity at their fair value and the remaining proceeds of the notes net of issue costs were recorded as non-current liability. As per the terms of the subscription agreement with Greenberry the bonds were to be issued in tranches. The liability reported as at 30 June 2016 is attributable to the tranches that had been issued to Greenberry as at that date. The final tranche of the bonds was issued subsequent to the period end.

Part of the proceeds of the bonds was used to settle an existing Reserve Based Lending facility of EUR7.0 million at a discount of 50% which, after allocation of attributable transaction costs, resulted in a credit being recognised in the income statement of £2.7 million during the period.

6. Shares in issue and share based payments

As at 30 June 2016, the Company had 509,211,611 ordinary shares in issue. In the period to 30 June 2016, a total of 5.3 million warrants at 10.4p were exercised.

On 24 March 2016, the Company announced that it had on 23 March 2016 issued a total of 9,050,000 options, of which 3,000,000 were awarded to an officer of the Company, to subscribe for new ordinary shares in the Company at a price of 16 pence per ordinary share. The options will vest on 23 March 2019 and will be exercisable thereafter at any time until 23 March 2021. The Options will vest subject to the pre-determined performance criteria that if the price per ordinary share in the Company increases over the three-year vesting period by 15%, 10%, or 5% on a compounded annualised basis then all, two-thirds, or one-third of the options respectively will vest.

7. Post Balance Sheet events

On 8 August 2016, the Company announced the issue of 70,312,500 warrants at an exercise price of 30 pence per share to Greenberry in line with a subscription agreement entered into on 21 June 2016 in which Greenberry subscribed for 5 year non-amortising bonds (Note 5).

On 8 August 2016, the Company announced the issue of 1,500,000 options to non-executive directors of the Company at an exercise price of 60 pence per share and the exercise of 1,780,000 options by an officer of the Company.

On 29 July 2016, the Company announced issue of 300,000 new ordinary shares following the exercise of 300,000 options to subscribe for new ordinary shares in the Company at a price of 16.5 pence per new ordinary share.

On 27 July 2016, the Company announced the signature of an agreement with Schlumberger group entities (''Schlumberger'') where by Schlumberger has agreed to fund EUR 7.5 million of services to be provided by Schlumberger on the Badile well. The agreement is subject to certain standard conditions precedent and signing of the relevant agreements. In exchange the Company has agreed to grant Schlumberger an option, exercisable at nil additional cost at any time during a six-month period following the completion of a well test and the declaration of a potential commercial discovery at the Badile licence, to acquire a 20% net profit interest in the Badile licence.

On 7 July 2016, the Company announced that it had received a non-binding expression of interest from Oil & Gas Investment Fund (''OGIF''), its partner on the Tendrara licence, expressing OGIF's interest in funding, building and operating a new pipeline connecting Tendrara to the Gazoduc Maghreb Europe (GME) pipeline.

Subsequent to the period end to 31 August 2016, a total of 16.6 million warrants at 10.4p and 8.1 million warrants at 24p were exercised.

 


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