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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Meridian Pet. (See LSE:PPC) | LSE:MRP | London | Ordinary Share | GB00B3DDP128 | ORD 30P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 55.00 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From Apr 2019 to Apr 2024
TIDMPPC
RNS Number : 6244A
President Energy PLC
30 September 2015
30 September 2015
PRESIDENT ENERGY PLC
("President", "the Company" or "the Group")
Interim Results
President (AIM:PPC), the oil and gas exploration and production company with producing assets in Argentina and Louisiana and exploration assets in Paraguay and Australia, announces its interim results for the six months ended 30 June 2015.
Operation Summary
-- First half average daily production 439 boepd (Argentina 231 bopd and Louisiana 209 boepd) -- Current group production over 585 boepd with increases from both Argentina and Louisiana
-- Benefit of Argentine workovers reflected in current production of 315 bopd, with one producing well temporarily in maintenance, compared to average of 231 bopd for the period (H1 2014: 171 boepd representing the 50% of Puesto Guardian)
-- Louisiana continues to provide positive cash contribution with current production of 270 boepd, a 29% increase on the average for the period of 209 boepd (H1 2014: 218 boepd)
-- Next phase of Argentine workovers of shut-in wells being planned
-- Concentration on controlling G&A and operational costs with real benefits apparent post-period. UK headcount reduced and salary costs cut to ensure capital focussed on operational activities
-- Post-period independently audited Puesto Guardian 2P Reserves increased by 28% to 18.1 MMbbls with an NPV 10 before tax and royalties of US$329.4 million
Financial Summary
-- Revenues of US$4.5 million (H1 2014: US$5.8 million), impacted by declining global oil prices
-- Average realised price of US$70 per barrel in Argentina (H1 2014: US$74 per barrel) -- Average realised price of US$52 per barrel in USA (H1 2014: US$102 per barrel) -- Gross loss of US$0.7 million (H1 2014: US$1.9 million profit) -- Lower administrative expenses demonstrate trend of reducing cost base
-- Total assets of US$202.7 million (H1 2014: US$162.9 million) reflect the growing South American asset base of the Group
-- Cash of US$1.8 million (H1 2014: US$23.0 million) reflects US$10.7 million of investment in the Group assets in the period
-- US$15.0 million revolving loan facility extended until 31 December 2016. Drawn US$8.1 million at period end
Outlook
-- Final analysis of Paraguay new seismic to come with preliminary results encouraging
-- Focus on plans for increasing production in Argentina and Louisiana, both operations continuing to be cashflow positive at current oil prices
-- Farm-out process for Argentina deep gas prospect and similar strategic discussions in Paraguay
-- Next phase of Argentine workovers being targeted towards end 2015 with long-lead items now being ordered
Commenting on today's announcement, Peter Levine, Chairman said:
"President has continued to make solid progress towards achieving its key objectives for 2015, having made further operational success in this reporting period, laying much of the groundwork for progress in the second half of 2015 and beyond."
Argentina
-- Average net production for period, pre-workovers 231 bopd (H1 2014: 342 bopd adjusted)
-- First phase of workovers of shut-in wells completed on time and budget at end of reporting period
-- Current average production some 315 bopd with one producing wells temporarily in maintenance
-- Realisation prices averaging US$70 per barrel throughout the year with additional US$3 per barrel increase for new 2015 production
-- Post-period new Concession term granted over all producing fields expiring 2050 with successive 10 year extensions thereafter
-- Post-period independently audited 2P Reserves increased by 28% to 18.1 MMbbls with an NPV 10 before tax and royalties of US$329.4 million
-- Analysis of Prospective Resources shows significant potential in the deep gas prospect within the Puesto Guardian Concession and the Matorras licence areas
-- Next phase of workovers being targeted towards end 2015 with long-lead items now being ordered
-- Essential maintenance and upgrading of facilities completed
Paraguay
-- Acquisition of 603 km of 2D Seismic completed on time and budget, awaiting final analysis
-- Excellent quality seismic data has identified several drillable Paleozoic prospects, in line with the Company's pre-acquisition expectations, at 2,500m - 3,000m depth, approximately 1,000m shallower depth than the Lapacho and Jacaranda wells drilled last year
Louisiana
-- Production increased by purchasing minority interests in operated assets and carried wells working interest coming on stream
-- Current production of 270 boepd representing a 29% increase from the reporting period average of 209 boepd (H1 2014: 218 boepd)
-- Operational cost savings and an extra US$140,000 contribution to facility overheads achieved
-- Realisation prices for oil at WTI price without discount
-- New well A55 drilled with movable hydrocarbons identified. Well suspended due to unexpected high pressure. Re-entry currently being discussed to be actioned in the medium term
Glossary of Terms
Tcf. Trillion cubic feet (gas) Bcf. Billion cubic feet ( gas)
MMBtu Million British Thermal Units ( gas)
boepd Barrels of oil equivalent per day
MMbbls Million barrels of oil
bopd Barrels of oil per day
The 2015 Interim Report and Financial Statements will be made available at www.presidentenergyplc.com. The Report and Accounts will not be printed and mailed to shareholders though copies will be available on request.
Contact:
President Energy PLC Peter Levine, Chairman +44 (0) 207 016 7950 Miles Biggins, COO +44 (0) 207 016 7950 Ben Wilkinson, Finance Director +44 (0) 207 016 7950 RBC Capital Markets Jeremy Low, Matthew Coakes, Daniel Conti +44 (0) 207 653 4000 Peel Hunt LLP Richard Crichton, Ross Allister +44 (0) 207 418 8900 Bell Pottinger Gavin Davis, Henry Lerwill +44 (0) 203 772 2500
Chairman's Statement
Summary
The reporting period saw solid progress towards achieving President's key objectives for 2015, both in operational success in the period and laying much of the groundwork for the progress we are now seeing in the second half of 2015. Therefore it is important to view the results not in isolation, but in the context of the achievements that continue to be made.
Whilst President is operating in challenging market conditions which are reflected in these financial results, we have continued to grow the core value of the Company, with both reserves and production increasing.
With a focus on cost discipline, we still have significant potential to grow production from our expanded base of oil reserves to achieve significant growth in shareholder value by progressing our efforts to unlock our exploration assets.
Although it is a challenging time for our industry and we cannot rely on the macro environment improving in the near term, President has a strong underlying asset base which offers compelling upside potential and we therefore remain focussed on exploiting this future growth potential
Argentina
-- Average net production for period, pre-workovers 231 bopd (H1 2014: 342 bopd adjusted)
-- First phase of workovers of shut-in wells completed on time and budget at end of reporting period
-- Current average production some 315 bopd with one producing wells temporarily in maintenance
-- Realisation prices averaging US$70 per barrel throughout the year with additional US$3 per barrel increase for new 2015 production
-- Post-period new Concession term granted over all producing fields expiring 2050 with successive 10 year extensions thereafter
-- Post-period Independently audited 2P Reserves increased by 28% to 18.1 MMbbls with an NPV 10 before tax and royalties of US$329.4 million
-- Analysis of Prospective Resources shows significant potential in the deep gas prospect within the Puesto Guardian Concession and the Matorras licence areas
-- Next phase of workovers being targeted towards end 2015 with long-lead items now being ordered
-- Essential maintenance and upgrading of facilities completed
Paraguay
-- Acquisition of 603 km of 2D Seismic completed on time and budget, awaiting final analysis
-- Clear from excellent quality seismic data that several drillable Paleozoic prospects, in line with the Company's pre-acquisition expectations, at 2,500-3,000m depth being some 1,000m shallower depth than the Lapacho and Jacaranda wells drilled last year
Louisiana
-- Production increased by purchasing minority interests in operated assets and carried wells working interest coming on stream
-- Current production of 270 boepd representing a 29% increase from the reporting period average of 209 boepd (H1 2014: 218 boepd)
-- Operational cost savings and an extra US$140,000 contribution to facility overheads achieved
-- Realisation prices for oil at WTI price without discount
-- New well A55 drilled with movable hydrocarbons identified. Well suspended due to unexpected high pressure. Re-entry currently being discussed to be actioned in the medium term
Australia
-- PEL 82 Block is still being retained by the Company and remains under review with actions suspended due to the current market conditions
Financials
-- Revenues of US$4.5 million (H1 2014: US$5.8 million), impacted by declining global oil prices. Average realised prices US$52 per barrel in USA (H1 2014: US$102 per barrel) and US$70 per barrel in Argentina (H1 2014: US$74 per barrel)
(MORE TO FOLLOW) Dow Jones Newswires
September 30, 2015 02:01 ET (06:01 GMT)
-- Cost of Sales of US$5.2 million (H1 2014: US$3.9 million) demonstrates a higher depreciation charge of US$1.8 million (H1 2014: US$1.2 million) which is driven by the increased asset base of the Group with Property Plant & Equipment of US$81.4 million (H1 2014: US$31.2 million)
-- Well operating costs of US$3.5 million (H1 2014: US$2.7 million) make up the remaining component of Cost of Sales. The increase against H1 2014 reflects the 100% ownership of Puesto Guardian from July 2014. On a like for like basis the well operating costs in H1 2015 are down 9% against US$3.8 million in H2 2014
-- Gross loss of US$0.7 million (H1 2014: US$1.9 milion profit)
-- Administrative expenses of US$2.7 million (H1 2014: US$2.7 million) reflect falling staff costs to US$1.9 million (H1 2014: US$2.3 million) and non-cash share based payments of US$0.7 million (H1 2014: US$0.6 million). The full benefit of cost reductions made in H1 2015 are anticipated to be reflected in the full year 2015 results
-- Total assets of US$202.7 million (H1 2014: US$162.9 million) reflect the growing South American asset base of the Group
-- March 2015 the Company completed a fundraise of US$13.4 million net of expenses (gross US$14.0 million)
-- Cash of US$1.8 million (H1 2014: US$23.0 million) reflects US$10.7 million of investment in the Group assets in the period on Hernandarias seismic, remaining Pirity drilling costs and Argentina workovers. Year-end 2014 cash of US$1.5 million
-- US$15.0 million revolving loan facility extended until 31 December 2016. Drawn US$8.1 million at period end
Outlook
Like any business we have now to sweat and develop our core producing assets in Argentina and Louisiana and be ever vigilant on cost savings. We are very fortunate to have these valuable and solid assets. However, there is no denying that the material upside offering to shareholders in the Company are the tangible and exciting exploration prospects the Company has in Argentina and Paraguay. These contain real blue sky potential and in parallel with the necessary running of the business to balance the books and generate profits for shareholders, the Company will make every effort to generate real value appreciation even in this difficult time. In light of the current oil market conditions, we believe our assets are in the best possible geographies, Paraguay with no domestic production and an excellent motivating fiscal policy and Argentina where material incentives are offered to create new production and reserves which is reflected in the oil prices currently being obtained. In this context President is indeed living in interesting times and interesting areas and we remain optimistic as to the future.
Peter Levine
Chairman
30th September 2015
Condensed Consolidated Statement of Comprehensive Income
Six months ended 30 June 2015
Hot Features
Premium
6 months 6 months Year to
to 30 to 30
June June 31 Dec
2015 2014 2014
(Unaudited) (Unaudited) (Audited)
Note US$000 US$000 US$000
Continuing Operations
Revenue 4,516 5,839 12,588
Cost of sales 3 (5,222) (3,929) (9,532)
------------ ------------ ----------
Gross (loss)/profit (706) 1,910 3,056
Administrative expenses 4 (2,670) (2,734) (5,404)
Operating loss before impairment
charge
------------ ------------ ----------
and non-operating gains (3,376) (824) (2,348)
Impairment charge 5 - - (11,891)
Non-operating gains 6 31 - 29,434
Profit/(loss) after impairment
and non-operating
------------ ------------ ----------
gains (3,345) (824) 15,195
Investment income -
Interest on bank deposits 2 16 23
Realised gains/(losses) on translation
of foreign currencies 403 (724) 847
Loan fees and interest (1,140) (402) (1,739)
Profit / (loss) before tax (4,080) (1,934) 14,326
Income tax (charge)/credit 228 (221) 207
Profit/(loss) for the period from
continuing operations (3,852) (2,155) 14,533
Other comprehensive income
- Items that may be reclassified
subsequently
to profit or loss
Exchange differences on translating
foreign operations (3,637) (2,352) (6,437)
Total comprehensive profit/(loss)
for the period
attributable to the equity holders
of the Parent Company (7,489) (4,507) 8,096
============ ============ ==========
US cents US cents US cents
Earnings/ (loss )per share from
continuing operations
Basic earnings/ (loss) per share 7 (0.9) (0.6) 3.7
Diluted earnings / (loss) per share 7 (0.9) (0.6) 3.5
============ ============ ==========
Condensed Consolidated Statement of Financial Position
As at 30 June 2015
30 June 30 June 31 Dec
2015 2014 2014
(Unaudited) (Unaudited) (Audited)
US$000 US$000 US$000
Note
ASSETS
Non-current assets
Intangible exploration and
evaluation assets 8 112,242 86,903 102,879
Property, plant and equipment 8 81,429 31,169 87,144
------------ ------------ ----------
193,671 118,072 190,023
Deferred tax 726 1,806 747
Other non-current assets 320 329 323
194,717 120,207 191,093
------------ ------------ ----------
Current assets
Trade and other receivables 9 6,037 19,710 14,302
Stock 105 - -
Cash and cash equivalents 1,825 23,005 1,527
7,967 42,715 15,829
------------ ------------ ----------
TOTAL ASSETS 202,684 162,922 206,922
============ ============ ==========
LIABILITIES
Current liabilities
Trade and other payables 4,441 8,057 11,903
Borrowings 8,100 - 9,650
12,541 8,057 21,553
------------ ------------ ----------
Non-current liabilities
Long-term provisions 2,771 1,517 2,834
Deferred tax 20,351 6,597 22,146
23,122 8,114 24,980
------------ ------------ ----------
TOTAL LIABILITIES 35,663 16,171 46,533
============ ============ ==========
EQUITY
Share capital 16,048 14,928 14,928
Share premium 197,676 186,566 186,566
Translation reserve (14,952) (7,230) (11,315)
Profit and loss account (37,784) (51,080) (33,932)
Reserve for share-based
payments 6,033 3,567 4,142
TOTAL EQUITY 167,021 146,751 160,389
============ ============ ==========
TOTAL EQUITY AND LIABILITIES 202,684 162,922 206,922
============ ============ ==========
Condensed Consolidated Statement of Changes in Equity
(MORE TO FOLLOW) Dow Jones Newswires
September 30, 2015 02:01 ET (06:01 GMT)
Six months ended 30 June 2015
Share Share Translation Profit Reserve Total
capital premium reserve and for share-based
loss payments
account
US$000 US$000 US$000 US$000 US$000 US$000
Balance at 1 January
2014 13,471 133,061 (4,878) (48,925) 2,947 95,676
--------- --------- ------------ --------- ----------------- --------
Placing of ordinary
shares 1,267 50,114 - - - 51,381
Cost of issue - (3,330) - - - (3,330)
Option/warrant exercised 16 490 - - - 506
Acquisition of Paraguay
asset 174 6,231 - - - 6,405
Share-based payments - - - - 620 620
Transactions with
owners 1,457 53,505 - - 620 55,582
Loss for the period - - - (2,155) - (2,155)
Exchange differences
on
translation - - (2,352) - - (2,352)
Total comprehensive
income/(loss) - - (2,352) (2,155) - (4,507)
Balance at 30 June
2014 14,928 186,566 (7,230) (51,080) 3,567 146,751
Share-based payments - - - - 551 551
Acquisition of Paraguay
asset - - - - 484 484
Transfer to P&L account - - - 460 (460) -
Transactions with
owners - - - 460 575 1,035
Loss for the period - - - 16,688 - 16,688
Exchange differences
on
translation - - (4,085) - - (4,085)
Total comprehensive
income/(loss) - - (4,085) 16,688 - 12,603
Balance at 1 January
2015 14,928 186,566 (11,315) (33,932) 4,142 160,389
Placing of ordinary
shares* 1,120 12,883 - - - 14,003
Cost of issue - (589) - - - (589)
Warrants issued on
placing - (1,184) - - 1,184 -
Share-based payments - - - - 707 707
Transactions with
owners 1,120 11,110 - - 1,891 14,121
Loss for the period - - - (3,852) - (3,852)
Exchange differences
on
translation - - (3,637) - - (3,637)
Total comprehensive
income/(loss) - - (3,637) (3,852) - (7,489)
Balance at 30 June
2015 16,048 197,676 (14,952) (37,784) 6,033 167,021
========= ========= ============ ========= ================= ========
* Share placing was used to fund the Hernandarias seismic acquisition
and Argentine workover programme
Condensed Consolidated Statement of Cash Flows
Six months ended 30 June 2015
6 months 6 months Year to
to 30 to 30
June June 31 Dec
2015 2014 2014
(Unaudited) (Unaudited) (Audited)
US$000 US$000 US$000
Cash flows from operating activities
- (Note 10)
Cash generated/(consumed) by operations (346) 1,235 (707)
Interest received 2 16 23
Taxes paid (104) (33) -
Taxes refunded 4 - 10
------------ ------------ ----------
(444) 1,218 (674)
------------ ------------ ----------
Cash flows from investing activities
Expenditure on exploration and evaluation
assets (9,491) (35,669) (47,987)
Expenditure on development and production
assets
(excluding increase in provision
for decommissioning) (1,407) (573) (1,305)
Payments in advance of drilling operations - - (9,161)
Proceeds from asset sales 128 - 104
Argentine acquisition - - (5,459)
LCH SA acquisition - - (250)
Expenditure on abandonment - - (29)
(10,770) (36,242) (64,087)
------------ ------------ ----------
Cash flows from financing activities
Proceeds from issue of shares (net
of expenses) 13,414 48,051 48,051
Proceeds from options exercised - 506 506
Related party loan 750 2,000 9,650
Loans capitalised on placing (1,800) - -
Repayment of loan capital (500) (2,000) -
Payment of loan interest and fees (910) (402) (1,327)
10,954 48,155 56,880
------------ ------------ ----------
Net increase/(decrease) in cash and
cash equivalents (260) 13,131 (7,881)
Opening cash and cash equivalents
at beginning of year 1,527 10,009 10,009
Exchange (losses)/gains on cash and
cash equivalents 558 (135) (601)
Closing cash and cash equivalents 1,825 23,005 1,527
============ ============ ==========
Notes to the Half-Yearly Financial Statements
Six months ended 30 June 2015
1 Nature of operations and general information
President Energy PLC and its subsidiaries' (together "the Group") principal activities are the exploration for and the evaluation and production of oil and gas.
President Energy PLC is the Group's ultimate parent company. It is incorporated and domiciled in England. The Group has onshore oil and gas production and reserves in Argentina and the USA. The Group also has onshore exploration assets in Paraguay, Argentina, the USA and Australia. The address of President Energy PLC's registered office is 1200 Century Way, Thorpe Park Business Park, Leeds LS15 8ZA. President Energy PLC's shares are listed on the Alternative Investment Market of the London Stock Exchange.
These condensed consolidated interim financial statements (the interim financial statements) have been approved for issue by the Board of Directors on 29th September 2015. The financial information for the year ended 31 December 2014 set out in this interim report does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. The financial information for the six months ended 30 June 2015 and 30 June 2014 was neither audited nor reviewed by the auditor. The Group's statutory financial statements for the year ended 31 December 2014 have been filed with the Registrar of Companies. The auditor's report on those financial statements was unqualified and did not draw attention to any matters by way of emphasis and did not contain a statement under section 498(2) or (3) of the Companies Act 2006.
2 Basis of preparation
The interim financial statements do not include all of the information required for full annual financial statements and should be read in conjunction with the consolidated financial statements of the Group for the year ended 31 December 2014, which have been prepared under IFRS as adopted by the European Union.
These financial statements have been prepared under the historical cost convention, except for any derivative financial instruments which have been measured at fair value. The interim financial statements have been prepared in accordance with the accounting policies adopted in the last annual financial statements for the year to 31 December 2014.
(MORE TO FOLLOW) Dow Jones Newswires
September 30, 2015 02:01 ET (06:01 GMT)
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