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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| San Leon Energy Plc | AQSE:SLE.GB | Aquis Stock Exchange | Ordinary Share | IE00BWVFTP56 | Ordinary Shares EUR0.01 |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 16.50 | 0.00 | - |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From Apr 2019 to Apr 2024
TIDMSLE
RNS Number : 2731L
San Leon Energy PLC
30 September 2016
30 September 2016
San Leon Energy Plc
("San Leon" or "the Company")
Interim Results and Nigerian Operational Update
San Leon Energy, the AIM listed company focused on oil and gas development and appraisal in Africa and Europe, today announces its interim results for the six months ended 30 June 2016, and provides an update on its interest in the OML 18 block, onshore Nigeria.
Highlights:
Operational
Hot Features
Premium
* Current OML 18 gross production rates are 54,000 bopd
of oil and 55 mmscf/d of gas;
* Considerable on-ground resources deployed by Eroton
to carry out the stated development activities to
increase production of OML 18;
* Drilled and tested a second successful gas well,
Rawicz-15, on the Rawicz field, onshore Poland; and
* Continued asset optimisation and cost reduction
strategy, resulting in relinquishing certain non-core
Polish licences, and six Spanish licence
applications.
Corporate
* OML 18 Production Agreement scheduled to complete
today, following shareholder approval of the
Acquisition and Placing of 378,400,000 Ordinary
Shares at 45 pence to raise GBP170.3 million on 20
September 2016;
* The Company announced a capital distribution policy,
whereby 50% of free cash flow from Nigeria will be
returned to shareholders via either share buybacks or
dividends for five years;
* On 21 September 2016, the Board was restructured in
view of the OML 18 Production Agreement with Mutiu
Sunmonu, former Managing Director of Shell Nigeria,
appointed Non-Executive Chairman, Oisin Fanning
assuming the role of Chief Executive Officer, Joel
Price and Alan Campbell appointed Executive Directors,
Ewen Ainsworth appointed Finance Director and Nick
Butler and Mark Phillips appointed as Non-Executive
Directors;
* Paul Sullivan and Daniel Martin resigned from the
Board effective on 21 September 2016, and Piotr
Rozwadowski resigned on 5 May 2016; and
* SP Angel was appointed as Nominated Advisor and joint
broker, and Whitman Howard was appointed as joint
broker.
Financial
* Equity placing to raise approximately GBP170.3
million (gross), completed after the reporting period,
to fund the OML 18 transaction, pay creditors, and
provide working capital;
* Loss for the period was EUR6.23m (2015: loss of
EUR8.26m);
* Cash and cash equivalents as at 30 June 2016 of
EUR0.7m (30 June 2015: EUR0.75m);
Chief Executive Officer, Oisin Fanning, commented:
"The Company has succeeded in finding, funding and executing what we believe is an exceptional deal for shareholders, despite a challenging sector environment. We expect the OML 18 transaction to underpin the future cash flow of the Company with significant returns to shareholders, redeveloping a world-class producing asset in a country where the oil and gas industry benefits from transactions being in US Dollars and there being no restrictions to repatriation of funds.
San Leon is partnering closely with Eroton to execute the redevelopment of OML 18. The operational activity listed in this report demonstrates the strong breadth and depth of the technical work being carried out and planned. We look forward to reporting the results of the Nigerian work programme in due course."
Enquiries:
San Leon Energy plc Oisin Fanning, Executive +353 1291 Chairman 6292 Brandon Hill Capital Limited Joint Broker Oliver Stansfield +44 (0) 20 Jonathan Evans 3463 5000 SP Angel Corporate Finance LLP Nominated Adviser and Joint Broker Ewan Leggat +44 (0) 20 Richard Morrison 3470 0470 Whitman Howard Limited Joint Broker Nick Lovering +44 (0) 20 Francis North 7659 1234 Vigo Communications Financial Public Relations Chris McMahon +44 (0) 20 Alexandra Roper 7830 9700 Plunkett Public Relations +353 (0) 1 Sharon Plunkett 280 7873
www.sanleonenergy.com
Glossary
Bcf billion cubic feet
bopd barrels of oil per day
boepd barrels of oil equivalent per day
gross production at the well head (prior to
deduction of pipeline losses)
mmbbls million barrels of oil
mmscf/d million standard cubic feet per day
slickline a low-cost wireline unit, tools, and
spread crew used to perform in-well work
Chairman's Statement
It gives me great pleasure to provide my first statement as Non-Executive Chairman of San Leon at such a pivotal moment in the Company's life, following my appointment on 21 September 2016. In one move, the Company has become a very different entity: stronger, more focused, and with several cash flow streams expected.
Corporate
The year to date has been dominated by the OML 18 transaction, and the associated $220 million fund raising. The ability for the Company to effect such a deal is testament to the quality of the OML 18 asset, the deal structure, the support of shareholders and to the operational capability of the Company. The details of the transaction are best understood by referring to the Admission Document.
Your Company now has a new Board, fit-for-purpose for what is a refocused entity.
Nigerian Operational Update
The Company is taking an active role as a partner in the OML 18 asset - an asset I know very well from my time at Shell. Eroton, as Operator, continues to progress redevelopment of the fields, and a summary of the main areas of operational focus over the coming months is provided below.
Considerable on-the-ground resources have been, and continue to be, deployed to carry out the activities described in the Competent Persons Report prepared by PetroVision Energy Services Limited, and to realise the early and sustainable production increases described therein. A contract for two electric line crews has been signed, and the crews are being mobilised. This will enable water saturation logs to be obtained, allowing selection, perforation and production of new intervals in existing wells. A slickline spread is operating at each of the Alakiri and Cawthorne Channel fields, conducting producibility tests and gathering pressure data, and a wellhead maintenance crew is assigned to each such spread. Coiled tubing work is being performed on selected maintenance and production kick-off well candidates, while a well fishing crew will be mobilized imminently to rehabilitate wells requiring their services.
Additional fields, and parts of fields, are also a priority to bring onstream. Light workover activity on wells in the Krakama field is nearing completion, with the aim of bringing the Krakama field into production by early November 2016. The Orubiri field is now being produced through bulk lines tied back to the Alakiri flowstation, and scoping work for an Early Production Facility ("EPF") is being carried out for the Buguma field to bring it online.
Success is not just about production rates, but also in ensuring competitive costs and a flow of opportunities to add to reserves. To that end, in-field dehydration units are being planned, to reduce the operational cost of transporting water in the export pipelines. Additionally, an Exploration Manager has been appointed at Eroton, with a remit to convert the considerable exploration upside on the block (471 mmbbls of oil & 1,572 Bcf of gas on a risked basis, only considering the top 20 current prospects) to production.
The current OML 18 gross oil production rate is approximately 54,000 bopd, and gas production is approximately 55 mmscf/d; a gross production total of around 63,000 boepd.
Eroton continues to accrue cash from OML 18 operations into the Debt Service Reserves Account ("DSRA") attached to the existing Reserves Based Lending ("RBL") facility. Cash flow to San Leon will begin once sufficient funds have accrued in that account, whereupon the Company will initiate its policy of returning 50% of Nigerian free cash flow to shareholders. The Company is well-advanced in reviewing the steps required to effect a capital reorganization which is required to allow such distributions.
Other Operations
Palomar, operator of the Rawicz field, onshore Poland, continues to progress the development of the field. We anticipate updating the market further in the near-term.
With the focus of operations shifting to Nigeria and away from historical international activities focused on exploration, the Company has taken the prudent steps to exit a number of peripheral assets to reduce costs and allow concentration of effort in the right place.
Financial Review
Revenue for the six months to 30 June 2016 was EUR0.2m compared with EURNil for the six months to 30 June 2015. San Leon generated a loss before tax of EUR6.23m for the six months to 30 June 2016, compared with loss before tax of EUR8.26m in the six months to 30 June 2015. Administration costs increased for the 6 month period to EUR5.7m (2015 H1: EUR4.4m). Loss per share for the period is 14.78 cent per share (2015 H1: loss per share of 32.6 cent per share).
Cash and cash equivalents including restricted cash at 30 June 2016 amounted to EUR2m (30 June 2015: EUR2.2m and 31 December 2015: EUR2.3m).
Outlook
San Leon is well-positioned to generate significant cash flow through three Nigerian revenue streams (loan principal and interest repayment on $173 million, dividends from San Leon's indirect shareholding in OML 18, and from the provision of various workover, drilling and facilities services). The Nigerian asset is world-class, we have a strong deal structure for San Leon, and we are partnering with proven and successful businesses. Operational activity in non-core assets has been minimized in order to preserve capital, in accordance with the Company stated strategy. I look forward to being able to update shareholders on progress as plans are executed in Nigeria.
The following financial information on San Leon Energy Plc represents the Group's interim results for the 6 months ended 30 June 2016.
Consolidated income statement
For the six months ended 30 June 2016
Un-audited Un-audited Audited
30/06/16 30/06/15 31/12/15
EUR'000 EUR'000 EUR'000
Revenue 187 1 145
Cost of sales - (1) (1)
------------------------------------ ----------- ----------- ------------
Gross profit 187 - 144
Administrative expenses (5,663) (4,365) (17,049)
Impairment of exploration
and evaluation assets - - (123,659)
Impairment of equity
accounted investments - - (43,245)
Decommissioning of
wells - - (4,291)
Arbitration award - - (20,561)
Loss from operating
activities (5,746) (4,365) (208,661)
Finance expense (754) (3,885) (9,379)
Finance income 1 - 4
Share of loss of equity-accounted
investments (2) (6) (18)
------------------------------------
Loss before income
tax (6,231) (8,256) (218,054)
Income tax expense 1 - 4,688
------------------------------------ ----------- ----------- ------------
Loss for the period
attributable to equity
holders of the Group (6,230) (8,256) (213,366)
------------------------------------ ----------- ----------- ------------
< <
Loss per share (cent)
Basic loss per share (14.78) (32.60) (506.40)
Diluted loss per share (14.78) (32.60) (506.40)
------------------------- -------- -------- ---------
Adjusted to reflect the share consolidation in July 2015.
Consolidated statement of other comprehensive income
for the six months ended 30 June 2016
Un-audited Un-audited Audited
30/06/16 30/06/15 31/12/15
EUR EUR'000 EUR'000
Loss for the period (6,230) (8,256) (213,366)
--------------------------------- ----------- ----------- -------------------------
Items that may be reclassified
subsequently to the income
statement
Foreign currency translation
differences - foreign
operations 633 1,403 (3,320)
Fair value movements
in available-for-sale
financial assets 4,658 3,498 4,658
Deferred tax on fair
value movements in available-
for-sale financial assets (1,615) - (1,615)
--------------------------------- ----------- ----------- -------------------------
Total comprehensive loss
for the period (2,554) (3,355) (213,643)
--------------------------------- ----------- ----------- -------------------------
Consolidated statement of changes in equity
For the period ended 30 June 2016
Share Fair
Share Share Currency based value Attributable Non-controlling
capital premium translation payment reserve Retained to equity interest
reserve reserve Reserve reserve earnings holders Total
EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000
Balance at 1
January 2016 127,145 205,126 (3,891) 12,049 2,966 (266,332) 77,063 - 77,063
-------------------- --------- --------- ------------- --------- ---------- ------------ --------------- ----------------- --------
Total comprehensive income for
period
Loss for the period - - - - - (6,230) (6,230) - (6,230)
Other comprehensive
income
Foreign currency
translation
differences -
foreign operations - - 634 - - - 634 - 634
Fair value
movements in
available-for-sale
financial assets - - - - (1,050) - (1,050) - (1,050)
Deferred tax on
fair value
movements in
available-for-sale
financial assets - - - - 314 - 314 - 314
-------------------- --------- --------- ------------- --------- ---------- ------------ --------------- ----------------- --------
Total comprehensive
income for period - - 634 - (736) (6,230) (6,332) - (6,332)
-------------------- --------- --------- ------------- --------- ---------- ------------ --------------- ----------------- --------
Transactions with owners recognised
directly in equity
Contributions by and distributions to
owners
Issue of shares for -
cash - - - - - - - -
Issue of advisor -
shares - - - - - - - -
Share based payment - - - 458 - - 458 - 458
Effect of share
options cancelled - - - - - - -
Change in ownership
interests
Shares issued to
Realm shareholders -
on conversion of
exchangeable shares - - - - - - - -
--------------------
Total transactions
with owners - - - 458 - - 458 - 458
-------------------- --------- --------- ------------- --------- ---------- ------------ --------------- ----------------- --------
Balance at 30 June
2016 127,145 205,126 (3,257) 12,507 2,230 (272,562) 71,189 - 71,189
-------------------- --------- --------- ------------- --------- ---------- ------------ --------------- ----------------- --------
Consolidated statement of changes in equity
For the period ended 30 June 2016
Share Fair
Share Share Currency based value Attributable Non-controlling
capital premium translation payment reserve Retained to equity interest
reserve reserve In Group reserve earnings holders Total
EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000
Balance at 1
January 2015 126,779 164,100 (571) 11,425 (77) (50,869) 250,787 2 250,789
-------------------- --------- --------- ------------- -------- ------------- ---------- --------------- ----------------- --------
Total comprehensive income for
period
Profit for the
period - - - - - (8,256) (8,256) - (8,256)
Other comprehensive
income
Foreign currency
translation
differences -
foreign operations - - 1,403 - - - 1,403 - 1,403
Fair value
movements in
available-for-sale
financial assets - - - - 3,498 - 3,498 - 3,498
-------------------- --------- --------- ------------- -------- ------------- ---------- --------------- ----------------- -------- Total comprehensive income for period - - 1,403 - 3,498 (8,256) (3,355) - (3,355) -------------------- --------- --------- ------------- -------- ------------- ---------- --------------- ----------------- -------- Transactions with owners recognised directly in equity Contributions by and distributions to owners Share based payment - - - 412 - - 412 - 412 Effect of share options forfeit - - - - - - - - - Shares issued to Realm shareholders on conversion of exchangeable shares 1 1 - - - - 2 (2) - -------------------- Total transactions with owners 1 1 - 412 - - 414 (2) 412 -------------------- --------- --------- ------------- -------- ------------- ---------- --------------- ----------------- -------- Balance at 30 June 2015 126,780 164,101 832 11,837 3,421 (59,125) 247,846 - 247,846 -------------------- --------- --------- ------------- -------- ------------- ---------- --------------- ----------------- --------
Consolidated statement of changes in equity
For the period ended 30 June 2016
Share
Share Share Currency based Fair Attributable Non-controlling
capital premium translation payment value Retained to equity interest
reserve reserve In Group reserve reserve earnings holders Total
EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000
Balance at 1
January 2015 126,779 164,100 (571) 11,425 (77) (50,869) 250,787 2 250,789
-------------------- --------- --------- ------------- --------- ---------- ------------ -------------- ----------------- ----------
Total comprehensive income for
year
Loss for the year - - - - - (213,366) (213,366) - (213,366)
Other comprehensive
income
Foreign currency
translation
differences -
foreign operations - - (3,320) - - - (3,320) - (3,320)
Fair value
movements in
available-for-sale
financial assets - - - - 4,658 - 4,658 - 4,658
Deferred tax on
fair value
movements in
available-for-sale
financial assets - - - - (1,615) - (1,615) - (1,615)
-------------------- --------- --------- ------------- --------- ---------- ------------ -------------- ----------------- ----------
Total comprehensive
income for year - - (3,320) - 3,043 (213,366) (213,643) - (213,643)
-------------------- --------- --------- ------------- --------- ---------- ------------ -------------- ----------------- ----------
Transactions with owners
recognised directly in equity
Contributions by and distributions to
owners
Issue of shares for
cash 363 40,801 - - - (6,015) 35,149 - 35,149
Issue of advisor
shares 2 224 - - - - 226 - 226
Share based payment - - - 4,542 - - 4,542 - 4,542
Effect of share
options cancelled - - - (3,918) - 3,918 - - -
Change in ownership
interests
Shares issued to
Realm shareholders
on conversion of
exchangeable
shares 1 1 - - - - 2 (2) -
-------------------- --------- --------- ------------- --------- ---------- ------------ -------------- ----------------- ----------
Total transactions
with owners 366 41,026 - 624 - (2,097) 39,919 (2) 39,917
-------------------- --------- --------- ------------- --------- ---------- ------------ -------------- ----------------- ----------
Balance at 31
December 2015 127,145 205,126 (3,891) 12,049 2,966 (266,332) 77,063 - 77,063
-------------------- --------- --------- ------------- --------- ---------- ------------ -------------- ----------------- ----------
Consolidated statement of financial position
As at 30 June 2015
Notes Un-audited Un-audited Audited
30/06/16 30/06/15 31/12/15
EUR'000 EUR'000 EUR'000
Assets
Non-current assets
Exploration and evaluation
assets 2 47,761 168,476 47,532
Equity accounted
investments 3 11,417 44,602 11,375
Property, plant and
equipment 4 9,825 10,484 10,266
Other non-current
assets 277 833 833
Financial assets 5 51,503 51,392 52,553
120,783 275,787 122,559
Current assets
Inventory 315 333 329
Trade and other receivables 6 6,379 9,903 6,546
Other financial assets 7 1,261 1,434 1,370
Cash and cash equivalents 8 729 746 913
8,684 12,416 9,158
----------------------------- ------ ----------- ----------- ----------
Total assets 129,467 288,203 131,717
----------------------------- ------ ----------- ----------- ----------
Equity and liabilities
Equity
Called up share capital 12 127,145 126,779 127,145
Share premium account 12 205,126 164,101 205,126
Share based payments
reserve 12,507 11,837 12,049
Currency translation
reserve (3,257) 832 (3,891)
Fair value reserve 2,230 3,421 2,966
Retained earnings (272,562) (59,125) (266,332)
----------------------------- ------ ----------- ----------- ----------
Attributable to equity
holders of the Group 71,189 247,845 77,063
Non-controlling interest - - -
----------------------------- ------ ----------- ----------- ----------
Total equity 71,189 247,845 77,063
----------------------------- ------ ----------- ----------- ----------
Non-current liabilities
Provisions 11 24,437 - 24,437
Deferred tax liabilities 8,772 12,199 9,086
----------------------------- ------ ----------- ----------- ----------
33,209 12,199 33,523
----------------------------- ------ ----------- ----------- ----------
Current liabilities
Trade and other payables 9 16,481 14,975 14,583
Drawdown facility 10 6,748 11,703 4,778
Provisions 11 1,840 1,481 1,770
25,069 28,159 21,131
----------------------------- ------ ----------- ----------- ----------
Total liabilities 58,278 40,358 54,654
----------------------------- ------ ----------- ----------- ----------
Total equity and
liabilities 129,467 288,203 131,717
----------------------------- ------ ----------- ----------- ----------
Consolidated statement of cash flows
For the six months ended 30 June 2015
Un-audited Un-audited Audited
30/06/16 30/06/15 31/12/15
EUR'000 EUR'000 EUR'000
Cash flows from operating
activities
Loss before tax - Continuing
operations (6,230) (8,256) (213,366)
Adjustments for:
Depletion and depreciation 418 463 1,005
Finance expense 754 3,885 9,379
Finance income (2) - (4)
Share based payments charge 459 - 4,278
Foreign exchange 1,080 1,013 (591)
Income tax (1) - (4,688)
Impairment of exploration
and evaluation assets -
continuing operations - - 123,659
Impairment of equity accounted
assets - continuing operations - - 43,245
Arbitration award - - 20,561
Decommissioning of wells - - 4,291
(Increase) in inventory 13 (13) (8)
Non-current assets 556 - -
Decrease in trade and other
receivables 142 441 3,988
Increase in trade and other
payables 2,079 4,010 3,490
Share of loss of equity-accounted
investments 2 6 18
Tax repaid/(paid) - 1 (112)
------------------------------------ ----------- ----------- ----------
Net cash flows in operating
activities (730) 1,550 (4,855)
------------------------------------ ----------- ----------- ----------
Cash flows from investing
activities
Expenditure on exploration
and evaluation assets (716) (3,685) (20,473)
Purchases of property, plant
and equipment (21) (73) (434)
Interest received 2 (4) -
Decrease in restricted cash 83 - 99
Advances to equity accounted
investments (45) (110) (2,115)
Proceeds of farm-out arrangement - - 2,000
------------------------------------
Net cash (used)/generated
from investing activities (697) (3,872) (20,923)
------------------------------------ ----------- ----------- ----------
Cash flows from financing
activities
Proceeds of issue of shares - - 41,390
Cost of issue of shares - - (6,015)
Proceeds from drawdown of
other loans 1,851 4,672 6,106
Repayment of other loans - (3,132) (7,805)
Movement in director loan 151 - 202
Interest and arrangement
fees paid (754) (18) (9,116)
------------------------------------ -----------
Net cash generated/(used)
in financing activities 1,248 1,522 24,762
------------------------------------ ----------- ----------- ----------
Net increase in cash and
cash equivalents (179) (800) (1,016)
Effect of foreign exchange
fluctuation on cash and
cash equivalents (5) (263) 120
Cash and cash equivalents
at start of period 913 1,809 1,809
------------------------------------ ----------- ----------- ----------
Cash and cash equivalents
at end of period 729 746 913
------------------------------------ ----------- ----------- ----------
Notes to the Interim Financial Information
1. Basis of preparation and accounting policies
The Group interim financial information has been prepared in accordance with International Financial Reporting Standards and the accounting policies adopted are consistent with those followed in the preparation of the Group's financial statements for the year ended 31 December 2015. The interim financial information was approved by the Board of Directors on 30 September 2016.
The interim consolidated financial statements do not constitute statutory financial statements and therefore do not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Group's annual financial statements as at 31 December 2015 which are available on the Group's website www.sanleonenergy.com.
The interim consolidated financial statements are presented in Euro ("EUR").
2. Exploration and evaluation assets
Cost and net book value Un-audited
30/06/16
EUR'000
At 1 January 2015 163,375
Additions 20,473
Currency translation adjustment (2,632)
Impairment of exploration
assets (123,659)
Proceeds from farm out
arrangement (2,000)
Transfer to equity accounted
investments (8,025)
-------------
At 31 December 2015 47,532
Additions 717
Exchange rate adjustment (488)
At 30 June 2016 47,761
-------------
An analysis of exploration assets by geographical area is set out below:
30/06/2016
EUR'000
Poland 12,372
Morocco 27,184
Spain 8,205
-----------
Total 47,761
-----------
The Directors have considered the licence, exploration and appraisal costs capitalised in respect of its exploration and evaluation assets, which are carried at historical cost. Those assets have been assessed for impairment and in particular with regard to remaining licence terms, likelihood of licence renewal, likelihood of further expenditures and on-going appraisals for each year. The directors are satisfied that there are no current indications of impairment, but recognise that the future realisation of these exploration and evaluation assets is dependent on future successful exploration and appraisal activities and the subsequent economic production of oil and gas reserves.
3. Equity accounted investments
Un-audited Un-audited Audited
30/06/16 30/06/15 31/12/15
EUR'000 EUR'000 EUR'000
Opening balance 11,375 44,483 44,483
Transfer from exploration
and evaluation assets - - 8,025
Impairment of equity accounted
investments - - (43,245)
Exchange rate adjustment - - 2,115
Net advances to equity accounted
investments 44 125 (18)
Share of loss of equity accounted
investments (2) (6) 15
--------------- ----------- ---------
Closing balance 11,417 44,602 11,375
--------------- ----------- ---------
4. Property, plant and equipment
Assets
Plant under Office Motor
& equipment construction equipment vehicles Total
EUR'000 EUR'000 EUR'000 EUR'000 EUR'000
Cost
At 1 January 2015 5,340 8,506 1,126 467 15,439
Additions - 514 - - 514
Currency translation
adjustment 12 - - - 12
Disposals - - (40) (39) (79)
At 31 December
2015 5,352 9,020 1,086 428 15,886
Additions
Exchange rate
adjustment (207) 29 (34) (38) (250)
At 30 June 2016 5,145 9,049 1,052 390 15,636
------------- -------------- ----------- ---------- ---------
Depreciation
At 1 January 2015 3,445 - 837 325 4,607
Currency translation
adjustment 8 - - - 8
Charge for year 839 - 118 48 1,005
------------- -------------- ----------- ---------- ---------
At 31 December
2015 4,292 - 955 373 5,620
Exchange rate
adjustment (167) - (7) (15) (189)
Charge for period 357 - 23 - 380
------------- -------------- ----------- ---------- ---------
At 30 June 2016 4,482 - 971 358 5,811
------------- -------------- ----------- ---------- ---------
Net book value
At 30 June 2016 663 9,049 81 32 9,825
------------- -------------- ----------- ---------- ---------
At 31 Dec 2015 1,060 9,020 131 55 10,266
------------- -------------- ----------- ---------- ---------
Asset under construction relates to the Company's Oil Shale Project in Morocco.
5. Financial assets
Barryroe Unquoted
4.5% Quoted shares Total
net profit shares (iii)
interest (ii) EUR'000 EUR'000
(i) EUR'000
EUR'000
Cost
At 1 January
2015 42,123 412 5,360 47,895
Fair value
movement 4,895 (237) - 4,658
--------------------- ---------- ----------- ----------
At 31 December
2015 47,018 175 5,360 52,553
Fair value
movement (953) (97) - (1,050)
--------------------- ---------- ----------- ----------
At 30 June
2016 46,065 78 5,360 51,503
--------------------- ---------- ----------- ----------
At 30 June
2015 45,707 325 5,360 51,392
--------------------- ---------- ----------- ----------
(i) Barryroe - 4.5% net profit interest
In December 2011, San Leon Energy assigned its 30% working interest in Standard Exploration Licence 1/11 ("Licence" or "Barryroe") in the Celtic Sea, Ireland to Providence Resources Plc ("Providence") in exchange for a 4.5% Net profit interest ("NPI") in the full field. Under the terms of the arrangement, San Leon Energy will not pay any further appraisal or development costs on the Licence. The Directors have estimated the fair value of this NPI by reference to a third party evaluation report of contingent resources and cash flows prepared by Netherland Sewell & Associates Inc. (NSAI) in July 2013 for Providence.
NSAI reported that the Basal Wealden oil reservoir has an estimated 2C in-place gross on-block volume of 761 MMBO with recoverable resources of 261 MMBO and 187 BCF of associated gas, based on a 35% oil recovery factor. In July 2013, NSAI also provided an estimate of the cash flows attributable to Providence's net interest from the Basal Wealden oil reservoir only. It estimated Providence's net present value at USD 2.63 billion in the 2C case (estimated recoverable resources of 266 MMBO and 187 BCF of associated gas) at a 10% discount rate.
Further details are available on the Providence website. Further information has also been made available by Providence and other sources regarding a revised development plan or development costs which are key inputs into the valuation model.
As San Leon is not the operator of this licence, the Group does not have the ability to commission an independent technical evaluation of the licence area. Therefore, the directors believe that the NSAI report, when coupled with other information released by Providence and adapted for certain changes in the market, gives the basis for the best estimate of fair value at year end.
The fair value movement relates to currency adjustments.
(ii) Amedeo Resources plc
In 2014, the Company purchased 71,225,000 ordinary shares in Amedeo Resources plc, a company listed on
the Alternative Investment Market in London, for a total consideration of EUR1,329,349. The market value of the shares at 30 June 2016 was EUR77,593.
(iii) Ardilaun Energy Limited
As part of the consideration for the sale of Island Oil & Gas Limited to Ardilaun Energy Limited ("Ardilaun"). Ardilaun agreed to issue shares equivalent to 15% of the issued share capital of Ardilaun.
6. Trade and other receivables
Un-audited Un-audited Audited
30/06/16 30/06/15 31/12/15
EUR'000 EUR'000 EUR'000
Amounts falling due
within one year:
Trade receivables from
joint operating partners 75 137 196
VAT and other taxes
refundable 711 989 927
Other debtors 5,412 8,167 5,151
Prepayments and accrued
income 181 611 272
6,379 9,904 6,546
----------- ----------- ---------
7. Other financial assets
Un-audited Un-audited Audited
30/06/16 30/06/15 31/12/15
EUR'000 EUR'000 EUR'000
Restricted cash at bank 1,261 1,434 1,370
1,261 1,434 1,370
----------- ----------- ---------
Restricted cash at bank also includes deposit accounts held in support of bank guarantees required under the Moroccan exploration licences, Zag and Tarfaya held by the Group.
8. Cash and cash equivalents
Un-audited Un-audited Audited
30/06/16 30/06/15 31/12/15
EUR'000 EUR'000 EUR'000
Cash and cash equivalents 729 746 913
----------- ----------- ---------
729 746 913
----------- ----------- ---------
9. Trade and other payables
Un-audited Un-audited Audited
30/06/16 30/06/15 31/12/15
EUR'000 EUR'000 EUR'000
Current
Trade payables 11,478 8,312 10,618
PAYE / PRSI 644 796 306
Other creditors 2,374 3,971 1,437
Accruals 1,985 1,896 2,020
Directors Loan - - 202
16,481 14,975 14,583
----------- ----------- ---------
10. Drawdown facility
Un-audited Un-audited Audited
30/06/16 30/06/15 31/12/15
EUR'000 EUR'000 EUR'000
Current
Drawdown facility 6,748 11,703 4,778
6,748 11,703 4,778
----------- ----------- ---------
11. Provisions
Decommissioning Arbitration Other Total
EUR'000 EUR'000 EUR'000 EUR'000
Cost
At 1 January 2015 - - 1,457 1,457
Provision during
the year 4,291 20,561 - 24,852
Exchange rate adjustment - - (102) (102)
------------------ -------------- ---------- ----------
At 31 December 2015 4,291 20,561 1,355 26,207
Exchange rate adjustment - - 70 70
------------------ -------------- ---------- ----------
At 30 June 2016 4,291 20,561 1,425 26,277
------------------ -------------- ---------- ----------
At 30 June 2015 - - 1,481 1,481
------------------ -------------- ---------- ----------
Current 415 - 1,425 1,840
------------------ -------------- ---------- ----------
Non-current 3,876 20,561 1,425 24,437
------------------ -------------- ---------- ----------
Decommissioning
The provision for decommissioning costs is recorded at the value of the expenditures expected to be required to settle the Group's future obligations on the decommissioning of previously drilled wells.
Arbitration
Aurelian Oil & Gas Limited ("Aurelian") and a number of other subsidiaries (the 'subsidiaries') have been unsuccessful in their appeal against the findings of the International Court of Arbitration of the International Chamber of Commerce ("ICC"), in relation to an award dated 21 May 2015 in an arbitration between the subsidiaries and Avobone N.V. and Avobone Poland B.V. The subsidiaries appealed to the UK Commercial Court in October 2015 to set aside the ICC's findings and award. The findings of the Commercial Court, received by the Company on 4 February 2016 but not conclusive until 11 February 2016 were that the subsidiaries' appeal was dismissed. Accordingly, the award has been provided for in full.
Other
Certain Realm Energy International Corporation shareholders exercised rights of dissent under Canadian law not to accept the terms of acquisition in 2011. Under Canadian law, these dissenting shareholders are eligible to receive a cash payment equal to the fair value of their shareholding at acquisition. The provision represents the Directors' estimate of the cash consideration to be paid to those shareholders taking account of the market price of the Realm shares at acquisition.
12. Share capital
Number
Number of Deferred
of New shares Number Authorised
Ordinary EUR0.0001 of Ordinary equity
shares each shares '000
EUR0.01 'm EUR0.05
each each
Authorised equiry
At 1 January 2015 - - 3,100,000,000 155,000
Consolidation
and subdivision 15,500,000,000 1,265,259 (3,100,000,000) -
--------------- ------------- ---------------- -------------
At 31December
2015 15,500,000,000 1,265,259 - 155,000
2016 Transactions - - - -
--------------- ------------- ---------------- -------------
At 30 June 2016 15,500,000,000 1,265,259 - 155,000
--------------- ------------- ---------------- -------------
Issued share
capital Number
Number of Deferred
of new Ordinary
Ordinary Shares No. Ordinary Share Share
Shares EUR0.0001 Shares capital premium
EUR0.01 each 'm EUR0.05 EUR'000 EUR'000
each each
At 1 Jan 2015 - - 2,535,572,680 126,779 164,100
Issue of shares - - 17,295 1 1
Consolidation
and subdivision 25,355,899 1,265,259 (2,535,589,975) - -
Issue of shares - - - - -
to non-controlling
interest
Issue of shares
on placing 36,250,000 - - 363 40,801
Issue of advisor
shares on placing 203,153 - - 2 224
----------- --------------
At 31 December
2015 61,809,052 1,265,259 - 127,145 205,126
2016 transactions - - - - -
----------- -------------- ---------------- ---------- ----------
At 30 June 2016 61,809,052 1,265,259 - 127,145 205,126
----------- -------------- ---------------- ---------- ----------
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR DBGDCUBDBGLC
(END) Dow Jones Newswires
September 30, 2016 02:01 ET (06:01 GMT)
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