Clontarf Energy PLC Final Results for the Year Ended 31 December 2016 (4511F)

TIDMCLON

RNS Number : 4511F

Clontarf Energy PLC

18 May 2017

18(th) May 2017

Clontarf Energy plc

("Clontarf" or "the Company")

Final Results for the Year Ended 31 December 2016

Clontarf Energy, the oil and gas exploration company focused on Ghana, today announces its results for the year ending 31 December 2016.

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

Clontarf Energy plc

John Teeling, Chairman [phone]

David Horgan, Director

Nominated Adviser and Broker

Northland Capital Partners Limited

Tom Price / Gerry Beaney (Corporate Finance) [phone]

John Howes (Broking)

Public Relations

Blytheweigh [phone]

Nick Elwes [phone]

Camilla Horsfall [phone]

Teneo PSG

Ciaran Flynn [phone]

Alan Tyrrell [phone]

Statement Accompanying the Final Results

Investors in junior exploration shares have had a tough time in recent years. The lack of buying interest in AIM listed exploration ventures has gone on for nine years. The cycle will turn. The critical factor is to be among those ventures which are placed to benefit from an upturn. Investors good enough or lucky enough to select the right vehicles will profit handsomely.

Clontarf Energy has ensured survival by maintaining their exploration interests and by raising new funds when available. We have active interests and are well funded for the present. We have not relied totally on our legacy ventures and in recent years have examined numerous new ventures and directions. I report below on one such venture, applications for two offshore blocks in Equatorial Guinea, West Africa.

Ghana

The focus of our activities has been and remains, a 60% interest in an onshore/offshore hydrocarbon licence in Ghana - the Tano 2A block. The saga surrounding this licence since first agreed in 2008 continues. Over the years there have been disputes, discussions and resolutions over a series of issues relating to co-ordinates, ownership, work programmes. During the entire time we have continued to talk. In the past year a number of issues have been agreed. Agreement was reached on a major item, the acreage and co-ordinates of the licence area. We were pleased with the outcome. Discussions took place on a revised work programme. Again we are happy with the progress in this area. Our 2008 and 2010 agreements had attractive terms which do not exist in current licencing terms. We are reluctant to accept any changes in these terms as to do so would increase costs. Recent elections returned to power the party who originally agreed the terms. We have good working relationships with politicians in this party.

Certain issues remain outstanding. We are working to solve them. At $50 a barrel oil we believe the licence area holds significant potential.

Peru

The 3% revenue royalty on Block 183 onshore Peru is looking more interesting. Work done by Clontarf and lately by Union Oil & Gas, the operator, has identified two large structures which Union believe could contain up to 2.2 trillion cubic feet of gas (tcf). There is a large and growing market for power in this part of Peru. Plans exists to use any gas discoveries to generate power.

Time has elapsed since Clontarf entered into a joint venture on the block. The initial partner, POGEL, assigned the block to Union. Permits were obtained by Clontarf for the environmental work done. These need to be re-issued. Once issued a focused seismic campaign will identify drill sites for drilling in either 2018 or more likely 2019.

Bolivia

Clontarf inherited three projects in Bolivia. These were nationalised in 2006. Because of this and litigation the Bolivian interests are carried at zero value on the Clontarf balance sheet. Our refusal to accept nationalisation and a declaration of force majeure on work programmes were notified to the Bolivian authorities. There is limited ongoing contact.

New Projects

An opportunity has arisen to acquire offshore licences in Equatorial Guinea. Discussions have taken place in the capital and in external locations. The geology is good. There are discoveries and production in the licence block area. Licencing terms are tough. We have applied for Block EG-23 and EG-21. EG-23 is in shallow water and has had a few wells. EG-21 has had a number of unsuccessful wells. Clontarf specialists believe that modern analysis techniques on available data will reveal new targets.

Future

Clontarf will continue to engage with the authorities in Ghana. We are in a strong legal position. We are pleased to note the progress is being made in Peru. But, we need to reinvigorate the Company. We continue to examine proposals for new projects, new directions and new personnel. We are well financed for our current activities.

John Teeling

Chairman

17(th) May 2017

__________________________________________________________________________________

CLONTARF ENERGY PLC

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEARED 31 DECEMBER 2016

                                                                                                                                                                 2016                                    2015 

CONTINUING OPERATIONS GBP GBP

REVENUE - -

Cost of sales - -

GROSS PROFIT - -

Administrative expenses (199,628) (205,142)

OPERATING LOSS (199,628) (205,142)

Finance revenue - 605

LOSS BEFORE TAXATION (199,628) (204,537)

Income tax expense - -

LOSS FOR THE YEAR AND TOTAL

COMPREHENSIVE INCOME (199,628) (204,537)

LOSS PER SHARE - Basic and diluted (0.04p) (0.05p)

CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2016

                                                                                                                                                                 2016                                    2015 
                                                                                                                                                                        GBP                                           GBP 

ASSETS:

NON CURRENT ASSETS

Intangible assets 3,131,779 3,098,916

                                                                                                                                                       3,131,779                          3,098,916 

CURRENT ASSETS

Other receivables 5,273 5,198

Cash and cash equivalents 677,198 225,916

                                                                                                                                                           682,471                              231,114 

TOTAL ASSETS 3,814,250 3,330,030

LIABILITIES:

CURRENT LIABILITIES

Trade payables (53,102) (58,254)

Other payables (890,567) (800,567)

                                                                                                                                                         (943,669)                           (858,821) 

TOTAL LIABILITIES (943,669) (858,821)

NET ASSETS 2,870,581 2,471,209

EQUITY

Called-up share capital 1,454,612 1,135,564

Share premium 10,773,211 10,493,259

Retained earnings - (deficit) (9,548,888) (9,349,260)

Share based payment reserve 191,646 191,646

TOTAL EQUITY 2,870,581 2,471,209

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEARED 31 DECEMBER 2016

                                                                       Called-up                                      Share Based 
                                                                                Share                    Share             Payment             Retained 
                                                                             Capital            Premium               Reserve                  Deficit                    Total 

GBP GBP GBP GBP GBP

At 1 January 2015 1,135,564 10,493,259 195,082 (9,148,159) 2,675,746

Share options expired - - (3,436) 3,436 -

Loss for the year - - - (204,537) (204,537)

   At 31 December 2015                          1,135,564          10,493,259                191,646 
(9,349,260)         2,471,209 

Issue of shares 319,048 330,952 - - 650,000

Share issue expenses - (51,000) - - (51,000)

Loss for the year - - - (199,628) (199,628)

   At 31 December 2016                          1,454,612          10,773,211                191,646 
(9,548,888)         2,870,581 

Share premium

The share premium reserve comprises of a premium arising on the issue of shares.

Share based payment reserve

The share based payment reserve arises on the grant of share options under the share option plan.

Retained deficit

Retained deficit comprises of losses incurred in 2016 and prior years.

CONSOLIDATED CASH FLOW STATEMENT

FOR THE YEARED 31 DECEMBER 2016

                                                                                                                                                                 2016                                    2015 
                                                                                                                                                                        GBP                                           GBP 

CASH FLOW FROM OPERATING ACTIVITIES

Loss for financial year (199,628) (204,537)

Finance costs recognised in loss 529 583

Finance revenue recognised in loss - (605)

Exchange movement 468 1,244

                                                                                                                                                         (198,631)                           (203,315) 

MOVEMENTS IN WORKING CAPITAL

Increase in payables 54,848 28,903

(Increase)/Decrease in trade and other receivables (75) 4,940

CASH USED BY OPERATIONS (143,858) (169,472)

Finance costs (529) (583)

Finance revenue - 605

NET CASH USED IN OPERATING ACTIVITIES (144,387) (169,450)

CASH FLOWS FROM INVESTING ACTIVITIES

Payments for exploration and evaluation assets (2,863) -

NET CASH USED IN INVESTING ACTIVITIES (2,863) -

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from issue of shares 650,000 -

Share issue expenses (51,000) -

NET CASH GENERATED BY FINANCING ACTIVITIES 599,000 -

   NET INCREASE/(DECREASE)IN CASH AND CASH EQUIVALENTS                            451,750   (169,450) 

Cash and cash equivalents at beginning of the financial year 225,916 396,610

Effect of exchange rate changes on cash held in

foreign currencies (468) (1,244)

Cash and cash equivalents at end of the financial year 677,198

225,916

Notes:

   1.    ACCOUNTING POLICIES 

There were no changes in accounting policies from those used to prepare the Group's Annual Report for financial year ended 31 December 2015. The financial statements have been prepared in accordance with International Financial Reporting Standards and IFRSs as adopted by the European Union and in accordance with the Companies Act 2006.

   2.    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):

                                                                                                                                                                 2016                                    2015 
                                                                                                                                                                        GBP                                           GBP 

Numerator

For basic and diluted EPS (199,628) (204,537)

Denominator

For basic and diluted EPS 489,628,260 454,225,781

Basic EPS (0.04p) (0.05p)

Diluted EPS (0.04p) (0.05p)

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

   3.    GOING CONCERN 

The Group incurred a loss for the year of GBP199,628 (2015: GBP204,537) and had net current liabilities of GBP261,198 (2015: GBP627,707) at the balance sheet date. These conditions represent a material uncertainty that may cast doubt on the group's ability to continue as a going concern.

Included in current liabilities is an amount of GBP890,567 (2015: GBP800,567) owed to directors in respect of directors' remuneration due at the balance sheet date. The directors have confirmed that they will not seek settlement of these amounts in cash for a period of at least one year after the date of approval of the financial statements or until the group has generated sufficient funds from its operations after paying its third party creditors.

The Group had a cash balance of GBP677,198 at the balance sheet date. Cashflow projections prepared by the directors indicate that the funds available are sufficient to meet the obligations of the Group for a period of at least twelve months from the date of approval of these financial statements.

As in previous years the Directors have given careful consideration to the appropriateness of the going concern basis in the preparation of the financial statements and believe the going concern basis is appropriate for these financial statements. The financial statements do not include the adjustments that would result if the group was unable to continue as a going concern.

   4.    INTANGIBLE ASSETS 
                                                                                                              2016                       2015                       2016                       2015 
                                                                                                           Group                   Group             Company             Company 

GBP GBP GBP GBP

Exploration and evaluation assets:

Cost:

At 1 January 8,145,461 8,105,461 7,712,961 2,252,832

Additions during the year 32,863 40,000 2,863 10,000

Transfer from investment in subsidiaries - - - 1,580,086

Transfer from Hydrocarbon Exploration - - - 3,870,043

At 31 December 8,178,324 8,145,461 7,715,824 7,712,961

Impairment:

At 1 January 5,046,545 5,046,545 5,046,545 1,732,454

Transfer from Hydrocarbon Exploration - - - 3,314,091

At 31 December 5,046,545 5,046,545 5,046,545 5,046,545

Carrying Value:

At 1 January 3,098,916 3,058,916 2,666,416 520,378

At 31 December 3,131,779 3,098,916 2,669,279 2,666,416

Segmental analysis 2016 2015 2016 2015

                                                                                                           Group                   Group             Company             Company 

GBP GBP GBP GBP

Peru 2,473,538 2,473,538 2,136,038 2,136,038

Ghana 658,241 625,378 533,241 530,378

                                                                                                     3,131,779             3,098,916             2,669,279             2,666,416 

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.

   4.            INTANGIBLE ASSETS (CONTINUED) 

On 11 August 2015, as part of the Group re-structuring, all assets and liabilities in Hydrocarbon Exploration Limited were transferred to Clontarf Energy plc. The directors resigned from Hydrocarbon Exploration Limited and the entire issued share capital of Hydrocarbon Exploration Limited was acquired by Hydrocarbon Peru Limited, a subsidiary of Peru Oil and Gas Exploration Limited (POGEL).

Accordingly, a net amount of GBP555,952 being interests in Peru was transferred from Hydrocarbon Exploration Limited to Clontarf Energy plc and investment in subsidiaries of GBP1,580,086 was reclassified as intangible assets.

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:

   --        licence obligations 
   --        requirement for further funding 
   --        geological and development risks 
   --        title to assets 
   --        political risk 

Should this prove unsuccessful the value included in the balance sheet would be written off to the statement of comprehensive income.

   5.    TRADE PAYABLES 
                                                                                                              2016                       2015                       2016                       2015 
                                                                                                           Group                   Group             Company             Company 

GBP GBP GBP GBP

Trade payables 37,102 40,254 37,102 40,254

Other accruals 16,000 18,000 16,000 18,000

Due to group undertakings - - 50,000 50,000

                                                                                                           53,102                   58,254                 103,102                 108,254 

It is the company's normal practice to agree terms of transactions, including payment terms, with suppliers and provided suppliers perform in accordance with the agreed terms, payment is made accordingly. In the absence of agreed terms it is the company's policy that payment is made between 30 - 40 days. The carrying amount of trade and other payables approximates to their fair value.

   6.    OTHER PAYABLES 
                                                                                                              2016                       2015                       2016                       2015 
                                                                                                           Group                   Group             Company             Company 

GBP GBP GBP GBP

Amounts due to directors 890,567 800,567 471,527 411,527

                                                                                                        890,567                 800,567                 471,527                 411,527 

Other payables relate to amounts due to directors' remuneration of GBP890,567 (2015: GBP800,567) accrued but not paid at year end.

   7.    CALLED-UP SHARE CAPITAL 

Allotted, called-up and fully paid:

                                                                                                            Number                   Share Capital              Share Premium 
                                                                                                                                                                        GBP                                           GBP 

At 1 December 2015 454,225,781 1,135,564 10,493,259

Issued during the year - - -

At 31 December 2015 454,225,781 1,135,564 10,493,259

Issued during the year 127,619,048 319,048 330,952

Share issue expenses - - (51,000)

At 31 December 2016 581,844,829 1,454,612 10,773,211

Movements in issued share capital

On 20 September 2016 a total of 80,000,000 shares were placed at a price of 0.50 pence per share. Proceeds were used to provide additional working capital and fund development costs.

On 22 September 2016 a total of 47,619,048 shares were placed at a price of 0.525 pence per share. Proceeds were used to provide additional working capital and fund development costs.

Share Options

A total of 8,900,000 share options were in issue at 31 December 2016 (2015: 8,900,000). These options are exercisable, at prices ranging between 0.725p and 4.6p, up to seven years from the date of granting of the options unless otherwise determined by the board.

   8.    ANNUAL GENERAL MEETING 

The Company's Annual General Meeting will be held on Wednesday 21(st) June 2017 at the Marriott Hotel, 140 Park Lane, Mayfair, London, W1K 7AA at 10:00 am.

   9.    GENERAL INFORMATION 

The financial information set out above does not constitute the Company's financial statements for the year ended 31 December 2016 or the year ended 31 December 2015. The financial information for 2015 is derived from the financial statements for 2015 which have been delivered to the Registrar of Companies. The auditors had reported on the 2015 statements; their report was unqualified with an emphasis of matter in respect of considering the adequacy of the disclosures made in the financial statements concerning the valuation of intangible assets, and did not contain a statement under section 498(2) or 498(3) of the Companies Act 2006. The financial statements for 2016 will be delivered to the Registrar of Companies.

A copy of the Company's Annual Report and Accounts for 2016 will be mailed shortly only to those shareholders who have elected to receive it. Otherwise, shareholders will be notified that the Annual Report will be available on the website www.clontarfenergy.com . Copies of the Annual Report will also be available for collection from the Company's registered office, 20-22 Bedford Row, London WC1R 4JS.

This information is provided by RNS

The company news service from the London Stock Exchange

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May 18, 2017 02:00 ET (06:00 GMT)