Source - RNS
RNS Number : 6186K
MX Oil PLC
23 September 2016
 

23 September 2016

 

 

MX OIL PLC

 

("MX Oil" or the "Company")

 

Results for the half year to 31 June 2016

 

MX Oil plc, the AIM quoted oil and gas investing company, is pleased to announce its unaudited half-year results for the six-month period to 30 June 2016.

 

Key points

 

·     Aje Field, part of OML 113, commenced production in May 2016

·     Next phase of the Aje Field expansion being developed

·     Over £7 million of new funding raised before expenses

·     Repayment of loan notes to reduce gearing to a negligible level

·     Strengthening of the management team

 

MX Oil's Chief Executive Officer Stefan Olivier said:

 

"With the Aje Field commencing production, the year to date has been an exciting period for the Company.  We continue to look at opportunities in Mexico whilst, at the same time, further opportunities are now presenting themselves in other parts of the world.  We are delivering on our objective to build a leading oil and gas investing company and I look forward to providing further updates on our progress."

 

Chairman's statement

 

During 2016, MX Oil's indirect investment in the OML 113 licence in Nigeria achieved an important milestone with the start of production from the Aje Field.  Consequently, MX Oil now has an investment in a producing oil and gas asset and we are very much looking forward to receiving revenue from this investment in the short term.  As previously announced, the Company agreed to acquire the company that indirectly holds the interest in OML 113 and has begun the notification and change of control process with the relevant authorities.

 

At the start of this year, we were pleased to have been awarded four licences in the bid rounds for certain Mexican onshore licences.  It was disappointing, for the various reasons previously outlined, that we were not ultimately able to secure a licence or sell our interests. We have, however, gained invaluable experience from this exercise and maintain our belief that Mexico will provide some interesting opportunities in the future and we continue to monitor developments closely.

 

More generally, we are pleased to report that we are seeing an increasing number of interesting investment opportunities and hope to be able to update the market on these if and when they come to fruition.

 

In the first half of the year, we raised over £7 million through the issue of both new equity and debt, principally to invest in OML 113 as it progressed towards production.  The loan notes which were raised earlier in the year have now either been repaid or converted, reducing the Company's gearing to a negligible level.  As part of our fund raising activities, we are pleased to welcome a number of new investors as shareholders in the Company.

 

We are also pleased that we have been able to strengthen the board with both technical and strategic skills which will stand us in good stead going forward.

 

During the first six months of 2016, the Company made a total comprehensive loss of £1,831,000 (2015: £718,000).  This increase in the level of losses compared to the previous year is principally due to the increased level of activity at the Company during this period compared to the same period last year.  The most significant areas of cost included our activities in Mexico and the costs of fund raising, along with associated professional fees, given the Company's requirement to raise significant new funds for investment. Employee and related costs have also increased as the board has been strengthened and the Company's infrastructure has been further developed to support these increased levels of activity.

 

As 2016 progresses, we are looking forward to further developments at the Aje Field and to getting involved in other exciting investment opportunities as they arise.   

 

Nicholas Lee

Chairman

23 September 2016

 

 

* * ENDS * *

 

 

For further information please visit www.mxoil.co.uk or contact:

 

MX Oil PLC

Stefan Olivier, CEO

 

+44 20 7710 9618

 

Cairn Financial Advisers LLP

(Nominated Adviser)

Jo Turner/James Caithie

 

 

+44 20 7148 7900

 

Cornhill Capital

(Broker)

Nick Bealer

 

 

+44 20 7710 9612

 

 

 

 

 

 



UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 30 JUNE 2016

 



Unaudited

6 months

ended

30 June

 2016

Unaudited

6 months

ended

30 June

2015

Audited

Year ended

31 December

2015


Notes

£'000

£'000

£'000

 

 





Continuing operations










Administrative expenses


(1,362)

(455)

(1,233)

Share based payment expense


(129)

-

(400)






Operating loss


(1,491)

(455)

(1,633)






Share of joint venture losses


-

(247)

(806)

Investment income


-

38

1

Other gains and losses

2

(69)

(54)

(450)

Finance costs


(271)

-

(11)






Loss on ordinary activities before taxation


(1,831)

(718)

(2,899)






Taxation


-

-

-






Loss for the period and total comprehensive loss


(1,831)

(718)

(2,899)






Basic and diluted loss per share

3




From continuing and total operations


(0.26)p

(0.36)p

(1.02)p







UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED 30 JUNE 2016

 


Share capital

Share premium

Loan note equity reserve

Reserve for options granted

Reserve for warrants issued

Retained deficit

Total

equity


£'000

£'000

£'000

£'000

£'000

£'000

£'000









At 31 December 2014

5,879

13,967

-

172

237

(18,293)

1,962

Loss for the year

-

-

-

-

-

(2,899)

(2,899)

Issue of new shares

1,780

6,185

-

-

-

-

3,050

Share issue costs

-

(438)

-

-

-

-

(219)

Issue of warrants

-

-

-

-

400

-

237

Issue of convertible loan notes

-

-

31

-

-

-

237









At 31 December 2015

7,659

19,714

31

172

637

(21,192)

7,021

Loss for the period

-

-

-

-

-

(1,831)

(1,831)

675

5,992

-

-

-

-

6,667

Share issue costs

-

(523)

-

-

-

-

(523)

Conversion and repayment of convertible loan notes

3

329

(28)

-

-

-

304

Issue of warrants

-

-

-

-

129

-

129









At 30 June 2016

8,337

25,512

3

172

766

(23,023)

11,767



UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2016

 



Unaudited

6 months

ended

30 June

 2016

Unaudited

6 months

ended

30 June

2015

Audited

Year ended

31 December

2015



£'000

£'000

£'000






NON-CURRENT ASSETS





Available for sale investments


11,567

-

8,532

Investment in joint venture


-

422

-



11,567

422

8,532






CURRENT ASSETS





Financial assets


22

60

39

Trade and other receivables


188

20

371

Cash and cash equivalents


638

800

224



848

880

634






CURRENT LIABILITIES





Trade and other payables


519

58

310

Borrowings


129

-

1,158



648

58

1,468

NET CURRENT ASSETS/(LIABILITIES)


               200

                   822

                 (834)






NONDEFERRED LIABILITIES





Deferred consideration


                   -

                        -

                   677



                   -

                        -

                   677






NET ASSETS


11,767

1,244

7,021






EQUITY





Ordinary share capital 


             8,337

               5,879

             7,659

Share premium


          25,512

             13,967

19,714

Loan note equity reserve


                    3

-

31

Reserve for options granted


               172

172

172

Reserve for warrants issued


               766

237

637

Retained deficit


        (23,023)

(19,011)

(21,192)

Equity attributable to owners of the Company and total equity


         11,767

1,244

7,021

 

 



UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED 30 JUNE 2016

 



Unaudited

6 months

ended

30 June

 2016

Unaudited

6 months

ended

30 June

2015

Audited

Year ended

31 December

2015



£'000

£'000

£'000






OPERATING ACTIVITIES





Loss for the period


              (1,831)

                 (718)

               (2,899)

Adjustments for:





Share based payment expense


                   129

-

400

Loss/(profit) on disposal of investments


                      52

                      17

16

Movement in fair value of investments


                      17

                      57

79

Share of joint venture losses


                        -

                   247

-

Investment income


                       -

                    (38)

                      (1)

Finance costs


                  271


11

Foreign exchange movement in respect of deferred liability


                    50

-

37

Impairment of joint venture investment


                      -

-

-

Operating cash flow before working capital changes


              (1,312)

                 (435)

              (2,357)

Decrease/(increase) in receivables


                   183

                       4

                    (79)

(Decrease)/increase in trade and other payables


                 (518)

                    (12)

246

Net cash outflow from operating activities


             (1,647) 

                  (443)

               (2,190)

INVESTMENT ACTIVITIES





Proceeds on disposal of investments


                    35

                    227

227

Purchase of investments


                  (87)

                   (147)

                  (147)

Investment in Nigerian asset


            (3,035)

-

               (5,940)

Advances to joint venture operation


-

                   (357)

-

Investment income


-

-

1

Net cash outflow from investment activities


           (3,087)

                  (277)

               (5,859)

FINANCING ACTIVITIES





Issue of ordinary share capital


6,668

-

6,013

Share issue costs


(523)

-

                  (438)

Net proceeds of issue of convertible loan notes


536

-

1,178

Repayment of convertible loan notes


(1,457)

-

-

Finance costs paid


(76)

-

-

Net cash inflow from financing activities


5,148

-

6,753






Net increase/(decrease) in cash and cash equivalents from continuing and total operations


414

                  (720)

               (1,296)

Cash and cash equivalents at beginning of period


224

1,520

1,520






Cash and cash equivalents at end of period


638

800

224

 

 

 



 

NOTES TO THE HALF-YEARLY REPORT

 

1.             The financial information set out in this interim report does not constitute statutory accounts as defined in section 434 of the Companies Act 2006.  The group's statutory financial statements for the period ended 31 December 2015, prepared under International Financial Reporting Standards (IFRS), have been filed with the Registrar of Companies.  The auditor's report on those financial statements was unqualified and did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.

The interim financial information has been prepared in accordance with the recognition and measurement principles of International Financial Reporting Standards (IFRS) and on the same basis and using the same accounting policies as used in the financial statements for the year ended 31 December 2015. The interim financial statements have not been audited or reviewed in accordance with the International Standard on Review Engagement 2410 issued by the Auditing Practices Board.

The financial statements have been prepared on a going concern basis under the historical cost convention. The Directors believe that the going concern basis is appropriate for the preparation of the financial statements as the Company is in a position to meet all its liabilities as they fall due.

 

2.             Other gains and losses


Six months ended

30 June

2015

(unaudited)

Six months

 ended

30 June

2015

(unaudited)

 

Year ended

31 December

 2015

(audited)


£'000

£'000

£'000

Net (losses)/gains investments

(52)

(74)

12

Net loss on derivative contracts

-

20

20

Movement in fair value of trading investments

(17)

-

(108)

Provision for amount owed by Mexican partner

-

-

(374)


(69)

(54)

(450)

 

 

3.             The basic loss per share is calculated by dividing the loss attributable to equity shareholders by the weighted average number of shares in issue.

 


Six months ended

30 June

2016

(unaudited)

Six months ended

30 June

2015

(unaudited)

 

Year ended

31 December

 2015

(audited)





Weighted average number of shares in the period

700,222,402

201,332,190

283,826,937

 

Loss from continuing and total operations

(£1,831,000)

(£718,000)

(£2,899,000)

 

Basic and diluted loss per share:




From continuing and total operations

(0.26)p

(0.36)p

(1.02)p

 




 

4.             No interim dividend will be paid.

5.             Copies of the interim report can be obtained from: The Company Secretary, MX Oil plc, 17th Floor, 110 Bishopsgate, London, EC2N 4AY and are available to view and download from the Company's website: www.mxoil.com.

 


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