Source - RNS
RNS Number : 3185K
Clontarf Energy PLC
20 September 2016
 

                                                                                                                                                                               

20th September 2016

 


Clontarf Energy plc

("Clontarf" or the "Company")

 

Interim Statement for the period ended 30 June 2016

 

Clontarf (AIM: CLON) today announces financial results for the six months ended 30 June 2016.

 

Clontarf operates in a challenging market environment for explorers though we are making progress in both Ghana

and Peru. 

 

Ghanaian Tano Acreage:

The Ghanaian Ministry of Energy and the Ghanaian National Petroleum Commission are actively considering the

current re-application by Pan Andean Resources Ltd (60% Clontarf, 30% Petrel, 10% local interests) over a licence

block in the prospective Tano Basin.  

 

There is a long drawn out process in relation to an agreement reached in 2010 but not implemented.  In 2014, we

agreed to withdraw a court case to force the Ghanaian authorities to respect our signed Petroleum Agreement.

There was a dispute over the coordinates of our acreage.  Following discussions with the Ghanaian authorities, we

were offered new, and in our opinion improved, co-ordinates.  As announced on 19 September 2016, we have

accepted the new acreage in principle.  We now move into negotiation of the licence terms and look forward to

providing shareholders with further updates in due course. 

 

Despite past delays, there seems to be a renewed urgency and flexibility in discussions, though there can be no

guarantee of a positive outcome given the need for all Petroleum Agreements to be ratified by the Ghanaian

Cabinet and Parliament. 

 

 

Peruvian Block 183:

Respected agri-business and energy group, Union Oil and Gas Group ("Union"), a large private South American

agribusiness/energy group, now controls and operates Block 183, an area of 3,968km2 in the central/northern

Peruvian jungle.  Union has updated the environmental, geological and geophysics work and ensuring that the

licence would remain in good standing. 

 

Union is now completing the Block 183 work programme, including the acquisition of seismic data.  If prospects are

confirmed a drilling programme will follow.  Two large prospects have been worked-up, which are on trend with 4

other discoveries in neighbouring oil and gas blocks operated by Gran Tierra and the Spanish independent CEPSA. 

Clontarf has a 3% revenue royalty up to US$5 million on each of any two discoveries which are brought into

production.

There is an adjacent consumer gas market in nearby Tarapoto and surrounding areas.  Local gas prices have not

witnessed the scale of gas price falls in North America.

 

Union is a leading Latin American E&P company with a diversified portfolio of offshore and onshore acreage in Peru,

Paraguay, Uruguay, Bolivia, Suriname, Belize and Nicaragua.  The group has substantial financial and technical

resources.

 

 

Future:

This is the eighth year of a bear market for junior exploration shares on the AIM market.  Ongoing world political

and economic turmoil, exacerbated by a collapsed oil price, has slashed exploration spending - despite the much

lower seismic and drilling costs which are now available.  With much higher yields from both unconventional and

standard reservoirs, and slowing demand growth in developing countries, the incentive to explore in frontier

offshore areas is reduced.

 

But while prices will stay lower for longer they will not be depressed forever: many important producing areas are

experiencing political and economic turmoil, from Venezuela to Nigeria.  International sanctions remain on Russia

and Iran.  Iraq and Saudi Arabia have increased output, but they are now at capacity limits and faced with political

challenges.  Lower prices are working, with expensive production in the North Sea being retired early and many new

projects cancelled or deferred.  Gas seems the main beneficiary of the decline of coal and nuclear power. 

 

Clontarf continues to monitor ways to create shareholder value.  As explorers, we continue to look at new projects

and at areas that are becoming available for exploration.  Following the announcement of a £400,000 (before

expenses) equity fundraising on 20th September 2016, we have adequate funding for current activities.

 

 

 

 

John Teeling

Chairman

 

20th September 2016

 

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.

 

 



 

For further information please visit http://clontarfenergy.com or contact:

 

Clontarf Energy plc

John Teeling, Chairman                                                               +353 (0) 1 833 2833

David Horgan, Director

 

Nominated Adviser and Broker

Northland Capital Partners Limited

David Hignell / Gerry Beaney (Corporate Finance)                      +44 (0)20 3861 6625

John Howes (Broking)

 

Public Relations

Blytheweigh                                                                                +44 (0)20 7138 3204

Tim Blythe                                                                                    +44 (0) 7816 924 626

Camilla Horsfall                                                                           +44 (0) 7871 841 793

Nick Elwes                                                                                   +44 (0) 7831 851 855

Rachael Brooks

Jonathan Garfield

 

PSG Plus

Colm Heatley                                                                                +353 (0) 1 661 4055

Alan Tyrrell                                                                                   +353 (0) 1 661 4055

 

 

 


 

Clontarf Energy plc

Financial Information (Unaudited)











CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME










Six Months Ended


Year Ended






30 June 16


30 June 15


31 Dec 15






unaudited


unaudited


audited






£'000


£'000


£'000











REVENUE





                   -


                    -


                    -

Cost of sales





                   -


                    -


                    -

GROSS PROFIT





                   -


                    -


                    -











Administrative expenses





( 95 )


( 86 )


( 205 )

OPERATING LOSS





( 95 )


( 86 )


( 205 )











Finance revenue





                   -


                   1


                   1

Finance costs





( 1 )


( 1 )


( 1 )

LOSS BEFORE TAXATION





( 96 )


( 86 )


( 205 )











Income Tax





                   -


                    -


                    -











TOTAL COMPREHENSIVE LOSS FOR THE PERIOD




( 96 )


( 86 )


( 205 )











LOSS PER SHARE - basic and diluted





 (0.02p)


 (0.02p)


 (0.05p)































CONDENSED CONSOLIDATED BALANCE SHEET




 30 June 16


 30 June 15


 31 Dec 15






 unaudited


 unaudited


 audited






 £'000


 £'000


 £'000

ASSETS:










NON-CURRENT ASSETS










Intangible assets





          3,114


           3,084


            3,099






          3,114


           3,084


            3,099











CURRENT ASSETS










Other receivables





                  8


                   7


                   5

Cash and cash equivalents





              177


              323


               226






              185


              330


               231

TOTAL ASSETS





           3,299


           3,414


            3,330











LIABILITIES:










CURRENT LIABILITIES










Trade payables





( 78 )


( 68 )


( 58 )

Other payables





( 846 )


( 756 )


( 801 )

TOTAL LIABILITIES





( 924 )


( 824 )


( 859 )

NET ASSETS





           2,375


           2,590


            2,471











EQUITY










Share capital





           1,136


           1,136


            1,136

Share premium





        10,493


         10,493


         10,493

Share based payment reserve





              191


              195


               191

Retained earnings - (Deficit)





( 9,445 )


( 9,234 )


( 9,349 )

TOTAL EQUITY





           2,375


           2,590


            2,471





















CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY




















 Share based






 Share


 Share


 Payment


 Retained


 Total


 Capital


 Premium


 Reserves


 Losses


 Equity


 £'000


 £'000


 £'000


 £'000


 £'000











As at 1 January 2015

       1,136


     10,493


              195


( 9,148 )


            2,676

Total comprehensive loss







( 86 )


( 86 )

As at 30 June 2015

       1,136


     10,493


              195


( 9,234 )


            2,590











Share options expired

-


-


( 4 )


                   4


                    -

Total comprehensive loss





-


( 119 )


( 119 )

As at 31 December 2015

       1,136


     10,493


              191


( 9,349 )


            2,471











Total comprehensive loss

                -


                -


                   -


( 96 )


( 96 )

As at 30 June 2016

       1,136


     10,493


              191


( 9,445 )


            2,375































CONDENSED CONSOLIDATED CASH FLOW




 Six Months Ended


 Year Ended






 30 June 16


 30 June 15


 31 Dec 15






 unaudited


 unaudited


 audited






 £'000


 £'000


 £'000

CASH FLOW FROM OPERATING ACTIVITIES









Loss for the period





( 96 )


( 86 )


( 205 )

Finance costs recognised in loss





                  1


                   1


                   1

Finance revenue recognised in loss




                   -


( 1 )


( 1 )

Exchange movements





( 1 )


                   2


                   1






( 96 )


( 84 )


( 204 )











Movements in Working Capital





                47


                12


                 34

CASH USED IN OPERATIONS





( 49 )


( 72 )


( 170 )











Finance costs





( 1 )


( 1 )


( 1 )

Finance revenue





                   -


                   1


                   1

NET CASH USED IN OPERATING ACTIVITIES




( 50 )


( 72 )


( 170 )











NET DECREASE IN CASH AND CASH EQUIVALENTS



( 50 )


( 72 )


( 170 )











Cash and cash equivalents at beginning of the period


              226


              397


               397











Effect of exchange rate changes on cash held




                  1


( 2 )


( 1 )

CASH AND CASH EQUIVALENT AT THE END OF THE PERIOD


              177


              323


               226











 

 

 

Notes:

 

1.     INFORMATION

The financial information for the six months ended 30 June 30 2016 and the comparative amounts for the six months ended 30 June 2015 are unaudited. The financial information above does not constitute full statutory accounts within the meaning of section 434 of the Companies Act 2006.

 

The Interim Financial Report has been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the European Union. The accounting policies and methods of computation used in the preparation of the Interim Financial Report are consistent with those used in the Group 2015 Annual Report, which is available at www.clontarfenergy.com

 

The interim financial statements have not been audited or reviewed by the auditors of the Group pursuant to the Auditing Practices board guidance on Review of Interim Financial Information.

 

2.     No dividend is proposed in respect of the period.

 

3.     LOSS PER SHARE

Basic loss per share is computed by dividing the loss after taxation for the year available to ordinary shareholders by the weighted average number of ordinary shares in issue and ranking for dividend during the year. Diluted earnings per share is computed by dividing the loss after taxation for the year by the weighted average number of ordinary shares in issue, adjusted for the effect of all dilutive potential ordinary shares that were outstanding during the year.

 

The following table sets out the computation for basic and diluted earnings per share (EPS):

 


Six months Ended


Year Ended


30 June 16


30 June 15


31 Dec 15


£


£


£

Numerator






For basic and diluted EPS

(96,466)


(86,361)


(204,537)







Denominator

For basic and diluted EPS 

 

454,225,781


 

454,225,781


 

454,225,781







Basic EPS

(0.02p)


(0.02p)


(0.05p)

Diluted EPS

(0.02p)


(0.02p)


(0.05p)







 

Basic and diluted loss per share are the same as the effect of the outstanding share options is anti-dilutive and is therefore excluded.

 

 

4.    INTANGIBLE ASSETS

 

Exploration and evaluation assets:


30 June 16


30 June 15


31 Dec 15






£'000


£'000


£'000

Cost:










At 1 January




8,146


8,106


8,106

Additions





15


25


40

Closing Balance




8,161


8,131


8,146











Impairment:









At 1 January




5,047


5,047


5,047

Provision for impairment



-


-


-

Closing Balance




5,047


5,047


5,047











Carrying value:









At 1 January




3,099


3,059


3,059











At period end




3,114


3,084


3,099

 








 








 

Regional Analysis                                                                                                         


30 Jun 16

£'000


30 Jun 15

£'000


31 Dec

15

£'000

 

Peru


2,474


2,474


2,474

 

Ghana


640


610


625

 



3,114


3,084


3,099

 

 

On 15 May 2013, the company signed an agreement with an unrelated third party, Peru Oil and Gas Exploration Limited (POGEL). Under the agreement POGEL, an energy investment company, has undertaken responsibility to put up performance bonds and conduct contractual work on the Exploration and Development Contracts on Peruvian Block 183. Clontarf Energy plc converted its interest in Block 183 to an overriding royalty of 3% on production from any commercial discovery.

 

On 12 August 2013, Rurelec Plc, an AIM listed energy provider in South America, entered into an agreement with POGEL to purchase gas from Block 183 when and if gas is produced. Clontarf holds a 3% overriding royalty on production from any commercial discovery. The royalty payment is capped at US$5 million per structure and US$10 million in total for the block.

   In 2014, the Group reached an agreement with the Ghanaian authorities on the specific revised coordinates of the signed petroleum agreement on a licence block in the Tano area of Ghana. Clontarf Energy PLC await ratification of the amended Petroleum Agreement by Cabinet and Parliament.

 

Exploration and evaluation assets relates to expenditure incurred in prospecting and exploration for oil and gas in Peru and Ghana. The directors are aware that by its nature there is an inherent uncertainty in such development expenditure as to the value of the asset. 

 

The realisation of these intangible assets is dependent on the discovery and successful development of economic oil and gas reserves which is affected by the uncertainties outlined above and risks outlined below. Should this prove unsuccessful the value included in the balance sheet would be written off to the statement of comprehensive income.

 

   The group's activities are subject to a number of significant potential risks including:

 

                - licence obligations

                - requirement for further funding

                - geological and development risks

                - title to assets

- political risks

 

 

 

5.    TRADE PAYABLES



30 June 16


30 June 15


31 Dec 15






£'000


£'000


£'000











Trade payables



54


58


40

Other accruals



24


10


18





78


68


58

 

 

6.    OTHER PAYABLES



30 June 16


30 June 15


31 Dec 15






£'000


£'000


£'000











Amounts due to directors



846


756


801





846


756


801

 

 

Other payables relate to remuneration due to directors' accrued but not paid at period end.

      

 

      

 

 

7.    SHARE CAPITAL

 

Allotted, called-up and fully paid:







Number


Share Capital


 Premium




          £


£

At 1 January 2015

454,225,781


1,135,564


10,493,259

Issued during the period

-


-


-

At 30 June 2015

454,225,781


1,135,564


10,493,259







Issued during the period

-


-


-

At 31 December 2015

454,225,781


1,135,564


10,493,259







Issued during the period

-


-


-

At 30 June 2016

454,225,781


1,135,564


10,493,259

 

 

8.    POST BALANCE SHEET EVENTS

 

 

On 20 September 2016, the Company announced that it had raised £400,000 (before expenses) via the issue of 80,000,000 new ordinary shares at a price of 0.5p per share.

 

9.    The Interim Report for the six months to 30th June 30 2016 was approved by the Directors on 20th September 2016.

 

 

10. The Interim Report will be available on the company's website at www.clontarfenergy.com

 

 

 

 

 


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