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BOIL Baron Oil Plc

0.055
-0.002 (-3.51%)
28 Mar 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Baron Oil Plc LSE:BOIL London Ordinary Share GB00B01QGH57 ORD 0.025P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  -0.002 -3.51% 0.055 0.05 0.06 0.0575 0.05 0.05 594,534,570 16:22:53
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Crude Petroleum & Natural Gs 0 -1.39M -0.0001 -5.00 9.49M

Baron Oil PLC Unaudited Interim Results (3371R)

21/09/2017 7:00am

UK Regulatory


Baron Oil (LSE:BOIL)
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TIDMBOIL

RNS Number : 3371R

Baron Oil PLC

21 September 2017

21 September 2017

BARON OIL Plc

("Baron Oil", "Baron" or "the Company")

Unaudited Interim Results

for the six months ended 30 June 2017

Baron Oil Plc, the AIM-listed oil and gas exploration and production company primarily focused on opportunities in Latin America and South-East Asia, announces its unaudited interim financial information and results for the six months ended 30 June 2017.

Highlights

-- Operating loss of GBP1,430,000 and net loss after finance and tax of GBP916,000 (0.07p per share) for the period,

-- Public Deed to assign 30% working interest in Peru Block Z-34 to Union Oil & Gas Group ("UOGG") executed in February 2017.

-- UOGG failed to complete the assignment and did not pay BOIL the required US$2 million. Farmin Agreement with UOGG terminated by mutual agreement and BOIL reclaimed its full 50% working interest in Block Z-34

-- Block Z-34 continues in Force Majeure. BOIL carrying out its own seismic attribute studies with Rock Solid Images to get better understanding of block potential. Cuy-1 drilling prognosis accepted by Perupetro.

-- Peru Block XXI: Prognosis for El Barco-3X exploration well submitted to Perupetro and discusions with potential farmin partners under way. Block placed in Force Majeure due to early 2017 flooding and drilling likely to be further delayed by gas tariff issues.

-- Application made by SundaGas for new offshore block in SE Asia with news expected by end of 2017 on award. If successful, BOIL entitled to be assigned an interest of 25%.

   --     Directors' salaries reduced by 30% overall to save costs 

Corporate

Overhead costs:

In June 2017, the Company announced that Directors' salaries were being reduced by an average of 30% as part of a continuing effort to reduce overhead costs. Current average monthly fixed overhead costs in the UK are GBP45,000, of which 23% relate to regulatory requirements.

SE Asia

SundaGas Joint Venture

The regional studies with SundaGas were terminated in March 2017 in accordance with the terms of the agreement. A number of interesting possibilities were identified and discussions were entered into in respect of three assets. Two of these were unsuccessful but a proposal made by SundaGas in respect of the third received a favourable response and negotiations are ongoing. This is over an offshore shelf area that includes a significant gas discovery. If successful, Baron will have the right under the agreement with SundaGas to be assigned a 25% interest in the block. The negotiations have taken longer than anticipated but are expected to be concluded before the end of 2017. Further details will be disclosed at the appropriate time.

Peru

Block Z-34 (Baron Oil 50% working interest)

Almost 4 years after execution of the Farmin Agreement ("FIA") with Union Oil & Gas Group ("UOGG"), the Public Deed enabling the assignment of a 30% interest in the Z-34 Contract from Baron to a UOGG subsidiary was finally executed by the Government in April 2017. However, completion of the FIA required UOGG to undertake a series of steps once the Public Deed was executed, which it failed to do. The most important of these steps for Baron was the payment of US$2 million by UOGG. Baron took legal advice in the UK, Peru and the British Virgin Islands, where UOGG is domiciled, but the directors eventually reached the conclusion that it would serve no useful purpose to pursue legal action. After much discussion with UOGG management, a Termination Agreement was signed on 9 September 2017 that halted the FIA, returned the 30% working interest under the Joint Operating Agreement to Baron and removed the obligation for UOGG to pay the US$2 million. The board considered this to be a very unsatisfactory outcome for the Company financially but was forced to take the view that the only way to retain value in Block Z-34 would be to put the relationship with UOGG on a more amicable basis and move forward with farmout attempts together. As a result of UOGG's default under the FIA, the Contract Operating Agreement with UOGG was terminated on 28 May 2017 and Baron resumed control of all operations in respect of the Block.

It is expected that the companies now studying the Block data will decide within the next two months whether or not to proceed with a farmin and a decision can then be made by Baron and UOGG on the way forward. Although the Block remains in Force Majeure, it is expected that new legislation will soon remove many of the current legislative impediments to drilling in this deep-water location. The prognosis for well GOL-CUY-Z34-13-1X ("Cuy") was approved by Perupetro in February 2017. The well is planned to be drilled to a total depth of 12,553 ft in 5,764 ft of water but is unlikely to be drilled before late 2018 because of the logistical and permitting hurdles still to be overcome. In the meantime, Baron has engaged Rock Solid Images to carry out attribute work on the 3D seismic volume acquired by the Company's Peruvian subsidiary, Gold Oil Peru SAC, in 2012. This work is being concentrated on the Cuy and Daphne Prospects and the final results will be presented to Baron and UOGG at a meeting in Houston at the beginning of October.

Block XXI (Baron Oil 100%):

Operations on Block XXI were suspended in February 2017 because of the devastating floods and the Contract was placed in Force Majeure while the area recovered. The effect of this has been to extend the final phase of the Contract by some [6 months] beyond the Oxctober 2017 end date. In the meantime, planning for the El Barco-3X well continued, with the well cost currently estimated at about US$1.5 million, but the termination of the FIA on Block Z-34 has meant that Baron does not currently have the funds to drill without bringing in a partner. Discussions are underway with an interested party, who could also operate the drilling. However, a further complication has arisen in that a gas transportation contract has recently been issued for this region of Peru that would require payment of a tariff of US$2.80 per mmbtu of gas for export from El Barco-3X to local markets. GOP has joined with the other regional operators, some of whom are already selling gas to markets in the area, to negotiate resolution of this issue, which would make it uneconomic to produce gas. The new Energy Minister and Perupetro are encouraging the parties to reach agreement but it is likely that there will be further delays to drilling plans until the issue is resolved.

Colombia

Since the cessation of the NBM licence in October 2015, all our staff in Colombia, except one, have been made redundant and we retain a minimal administrative presence in Bogota. The handover of the Nancy Burdine Maxine ("NBM") oil field back to Government control took place during 2016. NBM was operated by Inversiones Petroleras de Colombia SAS ("Invepetrol") in which we are 50% shareholders. On 20 April 2017 the board composition of Invepetrol was changed, such that Baron no longer held control, and on 31 August 2017 a resolution was passed by the shareholders in general meeting to place Invepetrol into liquidation. As a result, the directors consider that the Company no longer holds a controlling interest and Invepetrol has been deconsolidated from the results and financial position of the Group.

Licence PL1/10, Northern Ireland (Baron Oil 12.5%)

Baron has increased its interest in this block at no cost, following the withdrawal of InfraStrata from the licence. There are no outstanding formal commitments on the Licence and current activities consist of geological and geophysical studies to evaluate the effect of the results of the Woodburn Forest-1 well on other potential prospects in the block.

IslandMagee Gas Storage Project, Northern Ireland

Baron did not exercise its option to acquire a 16.66% interest in InfraStrata Plc by the end date of 31 March 2017. However, the Company retains the right to be paid up to GBP200,000 in the event of a sale or partial disposal of the project by InfraStrata before 5 January 2019.

Financial Results

In the six month period to 30 June 2017, the Company experienced an operating loss of GBP1,430,000 (30 June 2016: loss of GBP240,000; year to 31 December 2016: loss of GBP241,000).

After the end of the period, the Company announced that the 2013 FIA on Peru Block Z34 with UOGG had been terminated, with the Company taking back its full 50% working interest. As a result, the receivable balance of US$2,000,000 in respect of the farmin has been reclassified back to an intangible asset. In accordance with our approach of impairing both exploration intangibles and goodwill, this intangible has been fully impaired. Total impairment charges in the period were GBP1,531,000, after taking into account a small reduction in the impairment charge for foreign tax receivables.

As a result of the pending liquidation of Invepetrol and the resulting deconsolidation of this company from the Group Financial Statements, a credit to Income Statement of GBP831,000 arises.

The consolidated Income Statement includes exploration and evaluation expenditure of GBP81,000 in respect of the the Southeast Asia Joint Study Agreement with SundaGas.

Administration expenses, excluding exchange differences, in the period were GBP269,000 (30 June 2016: GBP528,000; year to 31 December 2016: GBP700,000). This reflects the removal of Colombia administrative costs and also the continuing efforts to reduce Head Office costs. Exchange differences gave rise to a loss of GBP392,000 in the period (30 June 2016: gain of GBP460,000, year to 31 December 2016: gain of GBP1,131,000), arising from an increase in the GBP value against the USD between the beginning and end of the period.

Other operating income amounts to GBP12,000 (30 June 2016: GBP355,000; year to 31 December 2015: income of GBP319,000), with the prior period including exceptional gains on the cancellation of payables held since 2012.

The termination of the FIA on Block Z34 means that the provision for the foreign tax liability on the receivable from UOGG is no longer required, giving rise to a credit to the Income Statement of GBP519,000 (30 June 2016: nil; 31 December 2016: charge of GBP113,000).

After finance and tax, the Company shows a net loss of GBP916,000 (June 2016: GBP183,000; 2016 year: GBP288,000), representing a loss of 0.07p per share (June 2016: 0.01p; year to 31 December 2015: 0.02p).

Bill Colvin, Chairman of Baron commented:

"As we recently informed shareholders, we entered into the agreement to terminate the FIA because we saw that as the only way to move forward on Block Z-34 from the impasse with UOGG. Of course, this was not a satisfactory financial outcome for Baron but we now look forward to putting this dispute behind us and working together on the farm out of the drilling on the Cuy Prospect to fulfil our commitment to Perupetro.

Peru itself is continuing to attract international oil companies by simplifying the terms and conditions for offshore drilling and this may well lead to an increase in offshore drilling activity.

We remain hopeful that we can capture some prospective acreage in Asia in partnership with SundaGas. We look forward to updating shareholders on our progress in that area by year end.".

For further information on the Company, visit www.baronoilplc.com or contact:

Baron Oil Plc:

Malcolm Butler (CEO) Tel: +44 (0)1892 838948

Cantor Fitzgerald (Nominated Advisor and Joint Broker):

Sarah Wharry (Corporate Finance) Tel: +44 (0)20 7894 7000

Alex Pollen (Corporate Broking)

SP Angel Corporate Finance LLP (Joint Broker):

Richard Redmayne Tel: +44 (0)20 7894 7000

Richard Hail

 
 Consolidated Income Statement 
 for the six months ended 30 June 2017 
                                              6 months                  6 months                             Year 
                                                    to                        to                               to 
                                                30-Jun                    30-Jun                           31-Dec 
                                                  2017                      2016                             2015 
                        Note                 Unaudited                 Unaudited                          Audited 
                                               GBP'000                   GBP'000                          GBP'000 
 
 Revenue                                             -                         -                                - 
 Cost of sales                                       -                         -                                - 
 
 Gross loss                                          -                         -                                - 
 
 Exploration and 
  evaluation 
  expenditure                                     (81)                         -                            (739) 
 Intangible asset 
  impairment                                   (1,556)                     (954)                            (370) 
 Goodwill impairment                                 -                         -                             (81) 
 Property, plant 
  & equipment 
  impairment                                         -                         -                               95 
 Receivables 
  impairment                                        25                       427                               73 
 Disposal of Colombia 
  operations                                       831                         -                               31 
 Administration 
  expenses                5                      (269)                     (528)                            (700) 
 Profit/(loss) 
  arising 
  on foreign exchange                            (392)                       460                            1,131 
 Other operating 
  income                                            12                       355                              319 
 
 Operating 
  profit/(loss)                                (1,430)                     (240)                            (241) 
 
 Finance cost                                      (7)                       (5)                             (35) 
 Finance income                                      2                        62                              101 
 
 Loss on ordinary 
  activities before 
  taxation                6                    (1,435)                     (183)                            (175) 
 
 Income tax 
  (expense)/benefit       7                        519                         -                            (113) 
 
 Loss on ordinary 
  activities after 
  taxation                                       (916)                     (183)                            (288) 
 
 
 Loss on ordinary 
 actvities after 
 taxation is 
 attributable 
 to: 
 Equity shareholders                             (916)                     (200)                             (32) 
 Non-controlling 
  interests                                          0                        17                            (256) 
 Loss on ordinary 
  activities after 
  taxation                                       (916)                     (183)                            (288) 
                               =======================  ========================              =================== 
 
 
 Earnings/(loss) 
  per share: basic        8                    (0.07)p                   (0.01)p                         (0.002)p 
                               =======================  ========================              =================== 
 
 Diluted                  8                    (0.07)p                   (0.01)p                         (0.002)p 
                               =======================  ========================              =================== 
 
 Consolidated Statement of Comprehensive Income 
 for the six months ended 30 June 2017 
                                                                        6 months    6 months                 Year 
                                                                              to          to                   to 
                                                                          30-Jun      30-Jun               31-Dec 
                                                                            2017        2016                 2016 
                                                                       Unaudited   Unaudited              Audited 
                                                                         GBP'000     GBP'000              GBP'000 
 
 Loss on ordinary activities 
  after taxation attributable 
  to the parent                                                            (916)       (200)                 (32) 
 
 Other comprehensive income 
 Currency translation 
  differences                                                                 97         128                (290) 
                                                        ------------------------  ----------  ------------------- 
 Total comprehensive income 
  for the period                                                           (819)        (72)                (322) 
 
 
 Total comprehensive income 
  attributable to : 
 Owners of the company                                                     (819)        (72)                (322) 
                                                        ========================  ==========  =================== 
 
 
 
 
 
 Consolidated Statement of Financial Position 
 for the six months 
  ended 30 June 2017 
                                                         6 months                6 months 
                                                               to                      to                  Year to 
                                                           30-Jun                  30-Jun                   31-Dec 
                                                             2017                    2016                     2016 
                                                        Unaudited               Unaudited                  Audited 
                                 Notes                    GBP'000                 GBP'000                  GBP'000 
 Non-current assets 
 Property, plant and 
  equipment                                                     2                       3                        3 
 Intangibles                                                1,256                   1,265                    1,325 
 Goodwill                                                       -                       -                        - 
 
                                                            1,258                   1,268                    1,328 
                                        -------------------------  ----------------------  ----------------------- 
 Current assets 
 Inventories                                                    -                       -                        - 
 Receivables                                                  216                   3,724                    2,070 
 Cash and cash equivalents                                  1,671                   1,174                    2,158 
 Cash held as security 
  for bank guarantees                                       2,890                   2,819                    3,073 
 
                                                            4,777                   7,717                    7,301 
                                        -------------------------  ----------------------  ----------------------- 
 
 Total assets                                               6,035                   8,985                    8,629 
                                        =========================  ======================  ======================= 
 
 Equity and liabilities 
 
 Capital and reserves 
  attributable to owners 
  of the parent 
 Called up share capital           9                          344                     344                      344 
 Share premium account                                     30,237                  30,237                   30,237 
 Share option reserve                                          81                     286                       81 
 Foreign exchange translation 
  reserve                                                   1,785                   2,106                    1,688 
 Retained earnings                                       (27,540)                (26,997)                 (26,624) 
 
 Capital and reserves 
  attributable to 
  non-controlling 
  interests                                                     -                     620                      347 
                                        -------------------------  ----------------------  ----------------------- 
 Total equity                                               4,907                   6,596                    6,073 
                                        -------------------------  ----------------------  ----------------------- 
 
 Current liabilities 
 Trade and other payables                                     232                     966                    1,054 
 Taxes payable                                                896                   1,423                    1,502 
 
                                                            1,046                   2,389                    2,556 
 
 Total equity and liabilities                               6,035                   8,985                    8,629 
                                        =========================  ======================  ======================= 
 
 
 
 Consolidated Statement of Cash Flows 
 for the six months ended 30 June 2017 
                                                    6 months                   6 months 
                                                          to                         to                    Year to 
                                                      30-Jun                     30-Jun                     31-Dec 
                                                        2017                       2016                       2016 
                                                   Unaudited                  Unaudited                    Audited 
                            Notes                    GBP'000                    GBP'000                    GBP'000 
 
 Operating activities         9                        (361)                    (3,252)                    (2,326) 
 
 
 Investing activities 
 Return from investment 
  and servicing of 
  finance                                                  2                         62                        101 
 Sale of intangible 
  assets                                                   -                          -                      1,784 
 Disposal of tangible 
  assets                                                   -                      1,581                         82 
 Acquisition of 
  intangible 
  assets                                               (128)                      (227)                      (492) 
 Acquisition of tangible 
  assets                                                   -                          -                        (1) 
 
                                                       (126)                      1,416                      1,474 
                                   -------------------------  -------------------------  ------------------------- 
 Financing activities 
 Proceeds from issue 
  of share capital                                         -                          -                          - 
 
 Net cash 
  (outflow)/inflow                                     (487)                    (1,836)                      (852) 
 Cash and cash 
  equivalents 
  at the beginning of 
  the period                                           2,158                      3,010                      3,010 
 
 Cash and cash 
  equivalents 
  at the end of the 
  period                                               1,671                      1,174                      2,158 
                                   =========================  =========================  ========================= 
 
 As at 30 June 2017, bank deposits include amounts 
  totaling US$3.74M (30 June and 31 December 2016: 
  US$3.74M) that are being held in respect of guarantees 
  and are not available for use until the Group 
  fulfils certain licence commitment in Peru. This 
  is not considered to be liquid cash and has therefore 
  been excluded from the cash flow statement. 
 
 
 Consolidated Statement of Changes in Equity 
 for the six months ended 30 June 2017 
                                         6 months                   6 months 
                                               to                         to                    Year to 
                                           30-Jun                     30-Jun                     31-Dec 
                                             2017                       2016                       2016 
                                        Unaudited                  Unaudited                    Audited 
                                          GBP'000                    GBP'000                    GBP'000 
 
 Opening equity                             6,073                      6,651                      6,651 
 
 Loss for the period                        (916)                      (183)                      (288) 
 Deconsolidation of non-controlling 
  interest                                  (347)                          -                          - 
 Foreign exchange translation                  97                        128                      (290) 
 
 Closing equity                             4,907                      6,596                      6,073 
                                       ==========  =========================  ========================= 
 
 
 
 
 Baron Oil plc 
 
 
 Notes to the Interim Financial 
  Information 
 

1. General Information

Baron Oil Plc is a company incorporated in England and Wales and quoted on the AIM Market of the London Stock Exchange. The registered office address is Finsgate, 5-7 Cranwood Street, London EC1V 9EE.

The principal activity of the Group is that of oil and gas exploration and production.

These financial statements are a condensed set of financial statements and are prepared in accordance with the requirements of IAS 34 and do not include all the information and disclosures required in annual financial statements and should be read in conjunction with the Group's annual financial statements as at 31 December 2015. The financial statements for the half period ended 30 June 2016 are unaudited and do not comprise statutory financial statements within the meaning of Section 435 of the Companies Act 2006.

Statutory financial statements for the year ended 31 December 2016, prepared under IFRS, were approved by the Board of Directors on 8 June 2018 and delivered to the Registrar of Companies.

2. Basis of Preparation

These consolidated interim financial information have been prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union and on the historical cost basis, using the accounting policies which are consistent with those set out in the Company's Annual Report and Financial Statements for the year ended 31 December 2016. This interim financial information for the six months to 30 June 2016, which complies with IAS 34 'Interim Financial Reporting', was approved by the Board on 26 September 2016.

3. Accounting Policies

Except as described below, the accounting policies applied are consistent with those of the annual financial statements for the period ended 31 December 2016, as described in those annual financial statements.

The preparation of financial statements requires management to make estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the period. The nature of estimation means that actual outcomes could differ from those estimates. Estimates and assumptions used in the preparation of the financial statements are continually reviewed and revised as necessary. Whilst every effort is made to ensure that such estimates and assumptions are reasonable, by their nature they are uncertain, and as such, changes in estimates and assumptions may have a material impact in the financial statements.

i) Carrying value of property, plant and equipment and of intangible exploration and evaluation fixed assets.

Valuation of petroleum and natural gas properties: consideration of impairment includes estimates relating to oil and gas reserves, future production rates, overall costs, oil and natural gas prices which impact future cash flows. In addition, the timing of regulatory approval, the general economic environment and the ability to finance future activities through the issuance of debt or equity also impact the impairment analysis. All these factors may impact the viability of future commercial production from developed and unproved properties, including major development projects, and therefore the need to recognise impairment.

   ii)   Commercial reserves estimates 

Oil and gas reserve estimates: estimation of recoverable reserves include assumptions regarding commodity prices, exchange rates, discount rates, production and transportation costs all of which impact future cashflows. It also requires the interpretation of complex geological and geophysical models in order to make an assessment of the size, shape, depth and quality of reservoirs and their anticipated recoveries. The economic, geological and technical factors used to estimate reserves may change from period to period. Changes in estimated reserves can impact developed and undeveloped property carrying values, asset retirement costs and the recognition of income tax assets, due to changes in expected future cash flows. Reserve estimates are also integral to the amount of depletion and depreciation charged to income.

 
 Baron Oil plc 
 
 
 Notes to the Interim Financial 
  Information (continued) 
 

iii) Decommissioning costs;

Asset retirement obligations: the amounts recorded for asset retirement obligations are based on each field's operator's best estimate of future costs and the remaining time to abandonment of oil and gas properties, which may also depend on commodity prices.

iv) Share based payments

The fair value of share-based payments recognised in the income statement is measured by use of the Black-Scholes model, which takes into account conditions attached to the vesting and exercise of the equity instruments. The expected life used in the model is adjusted; based on management's best estimate, for the effects of non-transferability, exercise restrictions and behavioural considerations. The share price volatility percentage factor used in the calculation is based on management's best estimate of future share price behaviour and is selected based on past experience, future expectations and benchmarked against peer companies in the industry.

 
 4. Segmental 
  information 
                                  United               South               South         Total 
                                 Kingdom             America                East 
                                                                            Asia 
 Six months ended                GBP'000             GBP'000             GBP'000       GBP'000 
  30 June 2017 
 Unaudited 
 
 Revenue 
 Sales to external                     -                   -                   -             - 
  customers 
                                 _______             _______             _______       _______ 
 Segment revenue                       -                   -                   -             - 
 
 Results 
 Segment result                    (565)               (270)                (81)         (916) 
 
 Total net assets                  4,266                 641                   -         4,907 
 
 
                                  United               South               Total         Total 
                                 Kingdom             America 
 Six months ended                GBP'000             GBP'000             GBP'000       GBP'000 
  30 June 2016 
 Unaudited 
 
 Revenue 
 Sales to external                     -                   -                   -             - 
  customers 
                                 _______             _______             _______       _______ 
 Segment revenue                       -                   -                   -             - 
 
 Results 
 Segment result                    (421)                 238               (183)            55 
 
 Total assets                      5,860                 736               6,596         6,073 
 
 
 
 
 Baron Oil plc 
 
 
 Notes to the Interim Financial 
  Information (continued) 
 
 
 4. Segmental 
  information (continued) 
 
 
                                  United              South               Total           Total 
                                 Kingdom            America 
 Year ended 31                   GBP'000            GBP'000             GBP'000         GBP'000 
  December 2016 
 Audited 
 
 Revenue 
 Sales to external                     -                  -                   -               - 
  customers 
                                 _______            _______             _______         _______ 
 Segment revenue                       -                  -                   -               - 
 
 Results 
 Segment result                      302              (509)                (81)           (288) 
 
 Total assets 
  less liabilities                 5,020              1,053                   -           6,073 
 
 
 
 
 5. Administration                         6 months    6 months      Year 
  expenses                                       to          to        to 
                                             30-Jun      30-Jun    31-Dec 
                                               2017        2016      2016 
                                          Unaudited   Unaudited   Audited 
                                            GBP'000     GBP'000   GBP'000 
 United Kingdom operations                      269         291       529 
 Colombia operations                              -         105       122 
 Peru operations                                  -          40        49 
 (Profit)/loss arising 
  on foreign exchange                           392       (460)   (1,131) 
 
                                                661         -24      -431 
                              =====================  ==========  ======== 
 
 
 
 Baron Oil plc 
 
 
 Notes to the Interim Financial 
  Information (continued) 
 
 
 6. Loss from operations 
                               6 months                   6 months      Year 
                                     to                         to        to 
                                 30-Jun                     30-Jun    31-Dec 
                                   2017                       2016      2016 
                              Unaudited                  Unaudited   Audited 
                                GBP'000                    GBP'000   GBP'000 
 
 The loss on ordinary activities 
  before taxation includes: 
 
 Auditors' remuneration 
  Audit                              15                         24        43 
  Other non-audit 
   services                           -                          -        12 
 Depreciation of oil 
  and gas assets                      1                        247         4 
 Impairment of intangible 
  assets                          1,556                        954     1,312 
 Impairment of property, 
  plant and equipment                 -                          -         9 
 Impairment of foreign 
  tax receivables                  (25)                         57       163 
 Disposal of operations             831                          3        31 
 (Profit)/Loss on 
  exchange                          392                      (460)     (271) 
 
 
 7. Income tax expense 
 
 The income tax charge for the period relates 
  to provision (reduction in proivion) for foreign 
  taxation on the profit arising in the Company's 
  production oilfields. 
 
 
 8. Earnings/(loss) per Share 
 
                            6 months      6 months          Year 
                                  to            to            to 
                              30-Jun        30-Jun        31-Dec 
                                2017          2016          2016 
                           Unaudited     Unaudited       Audited 
 
                               Pence         Pence         Pence 
 Earnings/(loss) per 
  ordinary share 
 Basic                      -GBP0.07      -GBP0.01     -GBP0.002 
 Diluted                    -GBP0.07      -GBP0.01     -GBP0.002 
 
 
 The earnings/(loss) per ordinary share is based 
  on the Group's loss for the period of GBP1,435,000 
  (30 June 2016: GBP183,000; 31 December 2015: 
  GBP175,000) and a weighted average number of 
  shares in issue of 1,376,409,576 (30 June 2016: 
  1,376,409,576; 31 December 2016: 1,376,409,576). 
 The potentially dilutive options issued were 
  nil (30 June 2016: 35,172,414; 31 December 2016: 
  35,172,414). 
 
 
 
 Baron Oil plc 
 
 
 Notes to the Interim Financial 
  Information (continued) 
 
 
 9. Called up Share Capital 
 
 There have been no changes to share capital 
  in the reporting period. 
 10. Reconciliation of operating 
  loss to net cash outflow from 
  operating activities 
 
                                                 6 months                   6 months      Year 
                                                       to                         to        to 
                                                   30-Jun                     30-Jun    31-Dec 
                                                     2017                       2016      2016 
                                                Unaudited                  Unaudited   Audited 
                                                  GBP'000                    GBP'000   GBP'000 
 Profit/(loss) for 
  the period                                        (916)                      (951)   (2,044) 
 Depreciation and 
  amortisation                                      1,557                        592     1,325 
 Share based payments                                   -                          -        81 
 Non-cash movement 
  arising on deconsolidation 
  of non-controlling 
  interests                                         (346)                       (22)     (166) 
 Finance income shown 
  as an investing activity                            (2)                       (32)      (92) 
 Tax Expense/(Benefit)                              (519)                         10       435 
 Foreign currency 
  translation                                         458                         82     (195) 
 (Increase)/decrease 
  in inventories                                        -                         53       204 
 (Increase)/decrease 
  in receivables                                      316                      (351)     (513) 
 Tax paid                                            (87)                      (110)      (25) 
 Increase/(decrease) 
  in payables                                       (822)                      (183)   (1,756) 
                                                   ______                     ______   _______ 
                                                    (361)                      (912)   (2,746) 
 
 
 
 11. Related party 
  transactions 
 
 During the period, the company purchased geological 
  services amounting to nil (30 June 2016: GBP9,600; 
  31 December 2016: GBP9,600) from GeoSolutions 
  Limited, a company controlled by Dr Malcolm Butler, 
  a director. In addition, the company purchased 
  administrative services amounting to GBP4,500 
  (30 June 2016: GBP13,500; 31 December 2016: GBP18,000) 
  from Langley Associates Limited, a company controlled 
  by Mr Geoff Barnes, a director. 
 
 
 Baron Oil plc 
 
 
 Notes to the Interim Financial Information (continued) 
 
 
 12. Financial information 
 
 The unaudited interim financial information for 
  period ended 30 June 2017 do not constitute statutory 
  financial statements within the meaning of Section 
  435 of the Companies Act 2006. The comparative 
  figures for the year ended 31 December 2016 are 
  extracted from the statutory financial statements 
  which have been filed with the Registrar of Companies 
  and which contain an unqualified audit report 
  and did not contain statements under Section 
  498 to 502 of the Companies Act 2006. 
 Copies of this interim financial information 
  document are available from the Company at its 
  registered office at Finsgate, 5-7 Cranwood Street, 
  London EC1V 9EE. The interim financial information 
  document will also be available on the Company's 
  website www.goldoilplc.com. 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

IR PGUUCBUPMGCU

(END) Dow Jones Newswires

September 21, 2017 02:00 ET (06:00 GMT)

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