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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Empyrean Energy Plc | LSE:EME | London | Ordinary Share | GB00B09G2351 | ORD 0.2P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 0.495 | 0.40 | 0.50 | 1,687,500 | 11:19:53 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Oil And Gas Field Expl Svcs | 0 | -20.8M | -0.0211 | -0.23 | 4.83M |
From May 2019 to May 2024
TIDMEME
RNS Number : 1293Z
Empyrean Energy PLC
12 December 2017
This announcement contains inside information
Empyrean Energy PLC / Index: AIM / Epic: EME / Sector: Oil & Gas
12 December 2017
Empyrean Energy PLC ("Empyrean" or the "Company")
Interim Results
Empyrean Energy (EME: AIM), the oil and gas development company with interests in China, Indonesia and the United States, is pleased to provide its Interim Report for the six months ended 30 September 2017.
Highlights
-- Block 29/11, Pearl River Mouth Basin, China (EME 100%)
o 580km2 3D seismic survey successfully completed in August 2017
o Preliminary interpretation of onboard processed seismic data confirms structural validity of Jade and Topaz Prospects
o Third significant target identified "Pearl", located north of Topaz
o Total Preliminary Prospective Resources (Best) Estimate of 591 mmbbls from Jade, Topaz and Pearl prospects
-- Duyung PSC Project, Indonesia (EME 10%)
o Secured a 10% interest in the Duyung PSC, offshore Indonesia
o Mako South-1 well completed in June 2017, reaching completion at total depth of 1,707ft
o Mako South-1 exceeds expectations encountering excellent reservoir quality, gas saturation, porosity, permeability and flow rates
o Mako South-1 well flowed at a stabilised rate of 10.9 million cubic feet of gas per day with multi Darcy permeability
-- Sacramento Basin, California (EME 25-30%)
o Negotiated a 25-30% working interest in the Sacramento Basin package of projects
o Sacramento Basin package includes the 1Tcf+ potential Dempsey prospect and the 2.4Tcf+ Alvares prospect plus a Dempsey Trend AMI with multiple targets
o Dempsey 1-15 well spudded on 2 August 2017 reaching completion at total depth of 2,970 metres
o Wireline logs confirmed numerous gas zones for production testing
o Dempsey 1-15 flow testing commenced in November 2017
For further information:
Empyrean Energy plc Tom Kelly Tel: +61 8 9380 9920 Cenkos Securities plc Neil McDonald Tel: +44 (0) 131 220 9771 Beth McKiernan Tel: +44 (0) 131 220 9778 St Brides Partners Ltd Lottie Wadham Tel: +44 (0) 20 7236 1177 Olivia Vita Tel: +44 (0) 20 7236 1177
Chairman's Statement
Following the sale of our interest in the Marathon Oil operated Sugarloaf asset in Texas and post-completion restructuring and re-financing throughout 2016, Empyrean has been successfully transformed into an active exploration company in 2017, having built an exciting portfolio comprising high impact and value creating projects in China, Indonesia and the United States.
All three projects have already returned encouraging results, with early exploration success achieved in both Indonesia and the United States following the completion of a 3D seismic survey and positive early interpretation work in China exceeding expectations. The positive project news flow throughout the past six months has also been translated into strong gains in the Company's share price and market value.
In China, the Company announced preliminary internal interpretation of the fast-tracked processing of the raw data from the 3D seismic acquired on the offshore Block 29/11 oil permit. This preliminary interpretation, announced in September 2017, confirmed the structural validity of the Jade and Topaz prospects and also identified a third significant target named Pearl, located to the north of Topaz. All three prospects have significant resource potential and are located on trend to world class oil and gas discoveries.
In Indonesia, following the acquisition of a 10% interest in the offshore Duyung Production Sharing Contract in April 2017, the Company participated in the drilling of the Mako South-1 well in July 2017. The well exceeded expectations with a stabilised flow rate of 10.9 million cubic feet of high quality methane gas per day with excellent permeability (in the multi Darcy range). The results significantly de-risked this project and also confirmed a very large accumulation of gas with extremely good reservoir quality.
In May 2017 the Company entered into a joint venture on a suite of projects in the Sacramento Basin in onshore California with ASX listed Sacgasco Limited, including two mature, multi-Tcf gas prospects in Dempsey (EME 30%) and Alvarez (EME 25%) and further identified follow up prospects along trend (EME 30%). In September 2017 the joint venture completed drilling of a 2,970 metre combined appraisal and exploration well, Dempsey 1-15, with wireline logs confirming numerous gas zones for production testing. The testing of the deepest of these zones is currently underway and the Company will relay news to the market as it comes to hand.
We have seen Company and shareholder value grow in recent months on encouraging results from drilling in Indonesia and the United States and the positive internal analysis of the seismic data in China, and we expect to see further value accretive milestones reached in the near future. Overall, with three promising high impact exploration projects being progressed and a consistent stream of news flow expected moving forward, we anticipate that it will be an exciting period ahead for Empyrean and its shareholders.
The Company is continuously reviewing other acquisition opportunities in parallel to the current activities and will also evaluate any attractive divestment opportunities in due course.
Empyrean's cash at the end of the period was US$4,649,659.
Patrick Cross
Non-Executive Chairman
12 December 2017
Operational Review
Block 29/11, Pearl River Mouth Basin, China (EME 100%)
Block 29/11 is located in the Pearl River Mouth Basin, offshore China (approximately 200km SE of Hong Kong). Empyrean is operator with 100% of the exploration rights of the 1,800km(2) permit during the exploration phase of the project. The initial contractual term is for two years with a work programme commitment of acquisition, processing and interpretation of 500km(2) of 3D seismic data. In the event of a commercial discovery and subject to Empyrean first entering a Production Sharing Contract ("PSC"), the China National Offshore Oil Company ("CNOOC") will have a back in right to 51% of the permit.
Empyrean commenced a 580km(2) 3D seismic acquisition survey in June 2017, which included the two key prospects, Jade and Topaz, which had already been identified in 2D seismic surveys. The 3D seismic survey acquisition was completed successfully in August 2017 and exceeded the work obligation of the permit for the current Geophysical Service Agreement ("GSA") phase. The survey was completed on schedule with excellent quality 3D data acquired.
Processing and interpretation work commenced in late August and in September 2017 Empyrean announced the results of preliminary internal interpretation of the raw seismic data which confirmed the structural validity of the Jade and Topaz prospects and identified a third significant target named Pearl, located to the north of Topaz.
A summary of the internal interpretation of gross unrisked mean prospective resources for Jade, Topaz and Pearl is provided in the table below.
Hot Features
Premium
Prospect Preliminary Prospective Resources
Estimates (mmbbls)
---------- ------------------------------------------------
Low estimates Best estimates High estimates
---------- -------------- --------------- ---------------
Jade 89 103 143
---------- -------------- --------------- ---------------
Topaz 280 365 498
---------- -------------- --------------- ---------------
Pearl 84 123 206
---------- -------------- --------------- ---------------
These estimates are expected to be revised towards the end of Q1 2018 when the comprehensive interpretation of the fully processed 3D seismic data is expected to be completed.
In addition, geological work continues during Q4 2017, focusing on migration pathways of oil in the basin. The seismic interpretation and geological work is expected to finalise the prospective resources and geological risks of the Jade, Topaz and Pearl prospects.
Duyung PSC Project, Indonesia (EME 10%)
In May 2017, Empyrean acquired from Conrad Petroleum Pte Ltd ("Conrad Petroleum") a 10% shareholding in West Natuna Exploration Ltd ("WNEL"), which holds a 100% Participating Interest in the Duyung Production Sharing Contract ("Duyung PSC") in offshore Indonesia and is the operator of the Duyung PSC.
The Duyung PSC covers an offshore permit of approximately 1,100km(2) in the prolific West Natuna Basin. The main asset in the permit is the Mako shallow gas discovery that has an independently verified 2C and 3C gas resource of between 430-650 Bcf recoverable gas, that was completed before drilling the Mako South-1 well. On the back of results from the Mako South-1 well it is expected that the operator will commission an updated independent resource assessment in due course as further data is analysed and comes to hand. In addition, numerous prospects and leads have been identified in the permit using 3D seismic data.
The appraisal well, Mako South-1, was spudded on 16 June 2017 using a jackup rig located in water depths of 308 ft. The well reached a Total Depth ("TD") of 1,707 ft on 22 June 2017.
The Mako South-1 well exceeded the Company's expectations encountering excellent reservoir quality rock with high permeability sands in the multi Darcy range with 23 feet of gas bearing reservoir. This zone flowed gas at a stabilized rate of 10.9 million cubic feet per day through a 2 inch choke. The gas is of high-quality being close to 100% methane.
Initial interpretation of the test results demonstrated that the sandstone reservoir is expected to be laterally contiguous, and has exceptional permeabilities in the multi Darcy range.
Two conventional cores were recovered successfully and further analysis is currently underway to assist with the overall assessment of results and provide a development plan.
Sacramento Basin, California (EME 25-30%)
In May 2017 Empyrean entered into an agreement with ASX listed Sacgasco Limited ("Sacgasco"), a Sacramento Basin focused natural gas developer and producer, to farm-in to a package of gas projects in the Sacramento Basin, onshore California. The package includes two mature, multi-Tcf gas prospects, Dempsey and Alvarez, and an Area of Mutual Interest (AMI) along trend from Dempsey that includes at least three already identified Dempsey style follow up prospects.
Empyrean has earned a 30% interest in the Dempsey Prospect targeting 1 Tcf of gas by paying US$2,100,000 towards the cost of drilling the Dempsey 1-15 exploration well. These drilling costs have a promoted cap of US$3,200,000 and Empyrean is paying its working interest of 30% towards any additional costs towards Dempsey 1-15, including completion costs. The Dempsey 1-15 well was spudded on 2 August 2017 and drilled to a TD of 2,970 metres (9,747 feet) in September 2017. Wireline logs confirmed numerous gas zones for production testing, which is currently underway. The deepest of these zones is being tested first and Empyrean will provide further updates as the testing programme progresses.
The Alvares structure has been mapped with 2D seismic and is interpreted by Sacgasco to hold prospective resources of over 2 Tcf of recoverable gas. A 25% working interest will be earned in the Alvares appraisal prospect, by Empyrean paying 33.33% of the costs of the next Alvares appraisal well.
Finally, the Dempsey Trend AMI, in which Empyrean will earn a 30% interest, extends to approximately 250,000 acres (including the Dempsey structure) and includes at least three large Dempsey style identified follow up prospects. Empyrean will provide technical assistance to Sacgasco to further mature prospects within the Dempsey Trend AMI and will also have an option to participate in the already identified prospects on the following basis:
-- Prospect #1: EME pays 60% of dry hole cost (i.e. to testing and setting production casing or abandonment) to earn 30% WI
-- Prospect #2: EME pays 45% of dry hole cost (i.e. to testing and setting production casing or abandonment) to earn 30% WI
-- Prospect #3: EME pays 45% of dry hole cost (i.e. to testing and setting production casing or abandonment) to earn 30% WI
Riverbend Project (10%) and Eagle Oil Pool Development Project (58.084% WI)
In light of current market conditions, little or no work has been completed on these projects during the year and no budget has been prepared for 2017/18 whilst the Company focuses on other projects.
Definitions
MMBOE Million barrels of oil equivalent
Production Production available for sale
WTI West Texas intermediate crude, type of oil used as a benchmark in oil pricing
Frank Brophy BSc (Hons)
Technical Director
12 December 2017
Statement of Comprehensive Income
For the Period Ended 30 September 2017
6 months 6 months Year
to 30 to 30 ended
September September 31 March
2017 (unaudited) 2016 (unaudited) 2017
(audited)
Notes US$'000 US$'000 US$'000
Revenue - 1 1
------------------ ------------------ -----------
Cost of sales
Operating costs (1) 2 (23)
Impairment of oil and
gas properties (45) (3) (6,960)
Amortisation - (6) (11)
------------------ ------------------ -----------
Total cost of sales (46) (7) (6,994)
Gross loss (46) (6) (6,993)
Administrative expenditure
Administrative expenses (186) (110) (2,202)
Directors' remuneration (229) (443) (284)
Compliance fees (62) (162) (637)
Foreign exchange differences 134 (1,777) -
Total administrative
expenditure (344) (2,492) (3,121)
Operating loss (390) (2,498) (10,116)
Finance (expense)/income (3,982) 60 (3,005)
------------------ ------------------ -----------
Loss from continuing
operations before taxation (4,372) (2,438) (13,121)
Deferred tax credit 18 709 2,839
------------------ ------------------ -----------
Loss from continuing
operations after taxation (4,354) (1,729) (10,282)
------------------ ------------------ -----------
Profit on discontinued 73 - -
operations net of tax
------------------ ------------------ -----------
Loss after taxation (4,281) (1,729) (10,282)
Total comprehensive
loss for the year (4,281) (1,729) (10,282)
================== ================== ===========
Attributable to:
Equity shareholders
of the Company (4,281) (1,729) (10,282)
================== ================== ===========
Loss per share from continuing
operations (expressed
in cents)
- Basic 2 (1.21)c (1.70)c (4.62)c
- Diluted (1.12)c (1.70)c (4.62)c
Earnings per share from
discontinued operations
(expressed in cents)
- Basic 2 0.02c - -
- Diluted 0.02c - -
Statement of Financial Position
As at 30 September 2017
6 months 6 months Year
to 30 to 30 ended
September September 31 March
2017 (unaudited) 2016 (unaudited) 2017
(audited)
Notes US$'000 US$'000 US$'000
Assets
Non-current assets
Contingent consideration
receivable 3 - 623 -
Oil and gas properties:
exploration and evaluation 4 9,468 6,859 87
Oil and gas properties:
development and production 5 - 152 57
------------------ ------------------ -----------
Total non-current assets 9,468 7,634 144
Current assets
Trade and other receivables 26 3,271 65
Corporation tax receivable 540 - 540
Contingent consideration
receivable 3 - - 554
Cash and cash equivalents 4,650 27,053 6,106
------------------ ------------------ -----------
Total current assets 5,216 30,324 7,265
Liabilities
Current liabilities
Trade and other payables 3,675 520 2,178
Provisions 51 9 25
Provision for corporation - 1,302 -
tax
Derivative financial
liabilities 6 3,887 401 459
Total current liabilities 7,613 2,232 2,662
Net current (liabilities)/assets (2,397) 28,092 4,603
Non-current liabilities
Provision for corporation - 750 -
tax
Total non-current liabilities - 750 -
Net assets 7,071 34,976 4,747
================== ================== ===========
Shareholders' equity
Share capital 7 1,164 710 754
Share premium 24,661 40,250 18,466
Share based payment
reserve 2,421 2,357 2,421
Retained losses (21,175) (8,341) (16,894)
------------------ ------------------ -----------
Total equity 7,071 34,976 4,747
================== ================== ===========
Statement of Cash Flows
For the Period Ended 30 September 2017
6 months 6 months Year
to 30 to 30 ended
September September 31 March
2017 (unaudited) 2016 (unaudited) 2017
(audited)
Notes US$'000 US$'000 US$'000
Cash generated from
operating activities
- continuing operations (655) (795) (1,309)
Cash generated from
operating activities
- discontinued operations - (116) (116)
Receipt/(payment) of
corporation tax 18 (1,545) (2,007)
------------------ ------------------ -----------
Net cash (outflow)/inflow
from operating activities (637) (2,456) (3,432)
Net proceeds from disposal 73 - -
of discontinued operations
Amounts held in escrow - 13,800 16,875
Purchase of oil and
gas properties: exploration
and evaluation - continuing
operations (7,632) (17) (17)
Purchase of oil and
gas properties: development
and production - continuing
operations - - (80)
Net cash (outflow)/inflow
for investing activities (7,559) 13,783 16,778
Issue of ordinary share
capital 6,713 - 44
Return of value - - (21,785)
Payment of equity issue
costs (108) - (63)
Finance income received/(expenses
paid) - 19 22
------------------ ------------------ -----------
Net cash inflow / (outflow)
from financing activities 6,605 19 (21,782)
Net (decrease)/increase
in cash and cash equivalents (1,591) 11,346 (8,436)
Cash and cash equivalents
at the start of the
year 6,106 17,473 17,473
Forex on cash held 135 (1,766) (2,931)
------------------ ------------------ -----------
Cash and cash equivalents
at the end of the period 4,650 27,053 6,106
================== ================== ===========
Statement of Changes in Equity
For the Year Period 30 September 2017
Share Share Share Retained Total
capital premium based losses equity
reserve payment
reserve
US$'000 US$'000 US$'000 US$'000 US$'000
Balance at 31
March 2016 710 40,250 2,946 (7,201) 36,705
========== ========= ========= ========= ==========
Hedge transactions - - (589) 589 -
Profit after
tax for the period - - - (1,729) (1,729)
Total comprehensive
income for the
period - - - (1,729) (1,729)
Balance at 30
September 2016 710 40,250 2,357 (8,341) 34,976
========== ========= ========= ========= ==========
Balance at 31
March 2016 710 40,250 2,946 (7,201) 36,705
(Loss) after
tax for the year - - - (10,282) (10,282)
Total comprehensive
loss for the
year - - - (10,282) (10,282)
Shares issued
following exercise
of options 44 - - - 44
Creation of B
shares 21,784 (21,784) - - -
Return of value
(cancellation
of B shares) (21,784) - - - (21,784)
Transfer of expired
options - - (589) 589 -
Share based payment
expense - - 64 - 64
---------- --------- --------- --------- ----------
Balance at 31
March 2017 754 18,466 2,421 (16,894) 4,747
========== ========= ========= ========= ==========
(Loss) after
tax for the period - - - (4,281) (4,281)
---------- --------- --------- --------- ----------
Total comprehensive
loss for the
period - - - (4,281) (4,281)
Shares issued
in the period 410 6,303 - - 6,713
Equity issue
costs - (108) - - (108)
---------- --------- --------- --------- ----------
Balance at 30
September 2017 1,164 24,661 2,421 (21,175) 7,071
========== ========= ========= ========= ==========
The accompanying accounting policies and notes form an integral part of these financial statements.
Statement of Accounting Policies
For the Period Ended 30 September 2017
Basis of preparation
The Company's financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union and Companies Act 2006. The principal accounting policies are summarised below. The financial report is presented in the functional currency, US dollars and all values are shown in thousands of US dollars (US$'000). The financial statements have been prepared on a historical cost basis and fair value for certain assets and liabilities. These condensed interim financial statements of the Company for the six months ended 30 September 2017 have been prepared in accordance with International Financial Reporting Standards as adopted by the European Union (IFRSs) and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS. The same accounting policies, presentation and methods of computation are followed in these financial statements as were applied in the Company's latest audited financial statements for the year ended 31 March 2017.
The financial information for the period ended 30 September 2017 does not constitute the full statutory accounts for that period. They have not been reviewed by the Company's auditor. The Annual Report and financial statements for the year ended 31 March 2017 have been filed with the Registrar of Companies. The independent auditor's report on the Annual Report and financial statements was unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under Section 498(2) or 498(3) of the Companies Act 2006.
Going Concern
The Directors consider that the Company has adequate resources to continue in operational existence for the foreseeable future and that it is therefore appropriate to adopt the going concern basis in preparing its financial statements. The Company had a cash balance of US$4.650m at 30 September 2017 (US$6.106m: 31 March 2017).
Notes to the Financial Statements
For the Period Ended 30 September 2017
1. Segmental analysis
The Directors consider the Company to have the
business segments of exploration for, and development
and production of oil and gas properties. There
are three geographical trading segments, being
North America, Indonesia and China. The Company's
registered office is located in the United Kingdom.
Details Oil and Gas Properties: Oil and Gas Properties: Total
Exploration and Evaluation Development and
Production
30 Sep 30 Sep 31 Mar 30 Sep 30 Sep 31 30 Sep 30 Sep 31
17 16 17 17 16 Mar 17 16 Mar
17 17
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
Revenue from
continued
operations - - - - 1 1 - 1 1
Profit/(loss) on
sale of
discontinued
operations - - - 73 - - 73 - -
Cost of sales of
continued
operations (45) (3) (6,871) - (4) (123) (45) (7) (6,994)
Cost of sales of
discontinued
operations - - - (1) - - (1) - -
Segment result (45) (3) (6,871) 72 (3) (122) 27 (6) (6,993)
Unallocated
corporate
expenses (344) (2,492) (3,121)
--------- --------- ----------
Operating
(loss)/profit (317) (2,498) (10,116)
Finance income
and expense (3,982) 60 (3,005)
--------- --------- ----------
(Loss)/profit
before
taxation (4,299) (2,438) (13,121)
Deferred tax
revenue/(tax
expense) 18 709 2,839
--------- --------- ----------
(Loss)/profit after
taxation (4,281) (1,729) (10,282)
--------- --------- ----------
Total comprehensive
profit/(loss) for
the financial year (4,281) (1,729) (10,282)
========= ========= ==========
Segment assets 9,468 7,020 87 - 3,850 611 9,468 10,870 698
Unallocated
corporate
assets 5,216 27,088 6,711
--------- --------- ----------
Total assets 14,684 37,958 7,409
========= ========= ==========
Segment liabilities 3,502 133 148 - 188 189 3,502 321 337
Unallocated
corporate
liabilities 4,111 3,373 2,325
--------- --------- ----------
Total liabilities 7,613 3,694 2,662
========= ========= ==========
6 months 6 months Year ended
to 30 to 30 September 31 March
September 2016 (unaudited) 2017
2017
(unaudited)
(audited)
2. Earnings per share
The basic earnings per share is derived by dividing
the profit/(loss) after taxation for the year
attributable to ordinary shareholders by the
weighted average number of shares in issue being
358,675,105 (2016: 221,833,853).
Earnings per share from
continuing operations
(Loss)/profit after (US$4,354,000) (US$1,729,000) (US$10,282,000)
taxation from continuing
operations
(Loss)/earnings per
share - basic (1.21)c (0.78)c (4.62)c
(Loss)/profit after (US$4,354,000) (US$1,729,000) (US$10,282,000)
taxation from continuing
operations adjusted
for dilutive effects
(Loss)/earnings per
share - diluted (1.12)c (0.78)c (4.62)c
Earnings per share from
discontinued operations
Profit after taxation 73 - -
from discontinued operations
Earnings per share - 0.02c - -
basic
Profit after taxation 73 - -
from discontinued operations
adjusted for dilutive
effects
Earnings per share - 0.02c - -
diluted
6 months 6 months Year ended
to 30 to 30 September 31 March
September 2016 (unaudited) 2017
2017
(unaudited)
(audited)
3. Derivative financial
asset
Derivative associated
with sale of Sugarloaf
AMI:
Balance brought forward 554 371 371
Additions - - -
Revaluation of derivative
financial asset(a) (554) 252 183
Net book value - 623 554
============= ================== =====================================
(a) Derivative financial assets consist of the fair value of contingent consideration amounts attached to the sale of Sugarloaf AMI on 19 February 2016. The fair value of the options was initially measured at the effective date of the sale and subsequently remeasured at each reporting period. At 30 September 2017, the value has been assessed as nil, with the final contingency expiring 31 December 2017.
The fair value is measured using a Black Average
(Asian) Model with the following inputs:
Fair value assumptions At 30 At 30 At 31
September September March
2017 2016 2017
Spot price US$51.67 US$48.24 US$50.60
Expected volatility 50-day 720-day 50-day
historical historical historical
Risk-free interest rate 1.158% 0.415% 0.901%
to 0.579% to 1.056%
6 months 6 months Year
to 30 to 30 ended
September September 31 March
2017 2016 (unaudited) 2017
(unaudited)
(audited)
4. Oil and gas properties:
exploration and evaluation
Balance brought forward 87 6,842 6,842
Additions(a) 9,426 20 116
Impairment (45) (3) (6,871)
Net book value 9,468 6,859 87
============= ================== ============
(a) The Company was awarded its permit in China in December 2016 and acquired working interests in the Duyung PSC Project in Indonesia and the Sacramento Basin, California during the period. For further information, please refer to the Operational Review.
5. Oil and gas properties:
development and production
Balance brought forward 57 156 156
Additions - 2 1
Impairment - - (11)
Amortisation - (6) (89)
Discontinued operations (57) - -
------------- ------------------ ---------------
Net book value - 152 57
============= ================== ===============
6 months 6 months Year ended
to 30 to 30 31 March
September September 2017
2017 2016 (unaudited)
(unaudited)
(audited)
6. Derivative financial
liabilities
Opening balance 459 195 195
Revaluation - - 205
Extinguishment following
substantial modification - - (400)
Recognition of modified
derivative financial
liability - - 111
Period end revaluation 3,428 206 348
Net book value 3,887 401 459
============= ================== ===========
Derivative financial liabilities represent the fair value of 15,000,000 options granted to Macquarie Bank and linked to the extension of a now repaid loan facility held with Macquarie Bank. The options were granted on 27 July 2015 and are referred to as the Tranche 4 options. At the date of grant these were considered to fall outside of the scope of IFRS 2 and unlike Tranches 1-3 were not accounted for as a share based payment. The Macquarie Bank loan facility was repaid in 2016 but the options did not expire at that point.
During the prior financial year, the Company modified the exercise price of the options. This was deemed to be a substantial modification under IAS 32 and IAS 39. The value of the derivative financial liability was extinguished at that point and the fair value of the modified options recognised at the date that they were granted. As a financial liability at fair value through the profit or loss these were revalued at period end. The fair value is measured using a Black-Scholes Model with the following inputs:
Fair value of share options and assumptions
At 30 September 2017 At 30 September 2016 31 March 2017
Grant date 27 July 2015 27 July 2015 27 July 2015
Expiry date 26 July 2019 26 July 2019 26 July 2019
Share price GBP0.214 GBP0.076 GBP0.039
Exercise price GBP0.021 GBP0.100 GBP0.021
Volatility 78% 50% 83%
Option life 1.83 2.83 2.33
Expected dividends - - -
Risk-free interest rate (based on national government
bonds) 0.46% 0.61% 0.12%
Expected volatility was determined by calculating the historical volatility of the Company's share price over the expected remaining life of the options.
7. Called up share capital
Issued and fully paid
398,995,110 (2016: 221,833,853) US$754 US$710 US$754
ordinary shares of 0.2p
each
Opening balance (number:
239,833,853) 754 710 710
Share issue (number: 70,000,000) 180 - -
Share issue (number: 34,316,551) 89 - -
Exercise of options (number: 38 - -
15,000,000)
Placement (number: 16,080,000) 41 - -
Placement (number: 12,000,000) 31 - -
Placement (number: 11,764,706) 31 - -
Exercise of options (number:
18,000,000) - - 44
Closing balance (number:
398,995,110) 1,164 710 754
======= ======= =========
Ordinary B shares of 7.9p
each
Opening balance (number: - - -
nil)
New shares issued (number:
221,833,853) - - 21,784
Cancellation/return of
value - - (21,784)
Closing balance (number: - - -
nil)
======= ======= =========
The Companies Act 2006 (as amended) abolishes
the requirement for a company to have an authorised
share capital. Therefore, the Company has taken
advantage of these provisions and has an unlimited
authorised share capital.
Share options and warrants
The following equity instruments have been issued
by the Company and have not been exercised at
30 September 2017:
Option Class Financier options Financier options
------------------------------------------ ------------------ ------------------
Grant Date 25 March 2013 27 July 2015
------------------------------------------ ------------------ ------------------
Options / warrants held 31 Mar 2017 15,000,000 15,000,000
------------------------------------------ ------------------ ------------------
Options / warrants granted during period - -
------------------------------------------ ------------------ ------------------
Options / warrants held 30 Sep 2017 15,000,000 15,000,000
------------------------------------------ ------------------ ------------------
Exercise price (GBP) GBP0.04 GBP0.02
------------------------------------------ ------------------ ------------------
Expiry date 25 March 2018 26 July 2019
------------------------------------------ ------------------ ------------------
The options outstanding at 30 September 2017
had a weighted average remaining contractual
life of 1.15 years and a weighted average exercise
price of GBP0.03.
8. Events after the reporting
date
There were no significant events post reporting
date other than the commencement of flow testing
of the Dempsey 1-15 well in the Sacramento Basin,
California.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR LLFLEFILFLID
(END) Dow Jones Newswires
December 12, 2017 10:15 ET (15:15 GMT)
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