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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Nu-oil And Gas Plc | LSE:NUOG | London | Ordinary Share | GB00B29T9605 | ORD 0.0001P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 0.0275 | 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
TIDMNUOG
RNS Number : 6051T
Nu-Oil and Gas PLC
31 March 2016
NU-OIL AND GAS PLC
AIM symbol: 'NUOG'
31 March 2016
NU-Oil and Gas plc
("NU-Oil" or "the Company")
Interim Results for the six months ended 31 December 2015
NU-Oil, the independent Oil and Gas Company, today announces its interim results for the six months ended 31 December 2015.
Key points:
-- Strategy focused on utilising redeployable engineering solutions that reduce Opex and Capex to build a portfolio of low risk highly appraised marginal assets
-- Continuing focus on the development of portfolio through Marginal Field Development Company (formerly ABT Oil and Gas Ltd)
-- During the period the Company raised GBP435,000 before expenses, primarily to implement its stranded and marginal field strategy and to facilitate the acquisition of projects
-- Currently in discussions with regards to acquiring further projects which are expected to become increasingly valuable as the market improves
-- Executed a mandate with Fearnley Securities which has particular expertise in maritime industries and will work with the Company to develop the appropriate models, structures and financing arrangements necessary to implement the business model
-- The Company reports a loss of GBP472,000 for the period, a decrease of GBP611,000 in the loss reported over the corresponding period in 2014
-- Implementation of the business plan will require an injection of new capital into the business - the Directors' believe that the additional capital should generate value in excess of any potential shareholder dilution
Nigel Burton CEO of NU-Oil commented:
"NU-Oil has a clear focused strategy for commercialising stranded and marginal fields based on solutions delivered by MFDevCo and the MFD Consortium which significantly improve the economics of developments. Despite some unforeseen delays, discussions are well advanced with a number of operators to secure projects that would positively impact upon the future of the Company both in the short and long term. The aim is to build a portfolio of projects and opportunities that do not expose NU-Oil to exploration and appraisal risk."
For further information please visit the NU Oil and Gas website www.nu-oilandgas.com or contact:
Hot Features
Premium
NU-Oil and Gas plc Tel: + 44 161 817
Alan Minty 7460
Nigel Burton Tel: +44 7785 234447
--------------------- -------------------- ----------------------
Jon Belliss Beaufort Securities Tel: +44 20 7382
Elliot Hance Limited 8300
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Neil McDonald Cenkos Securities Tel: + 44 131 220
Derrick Lee 9771
Tel: + 44 131 220
6939
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Elisabeth St Brides Partners Tel: +44 20 7236
Cowell Ltd 1177
Lottie Brocklehurst
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Note to Editors:
NU-Oil and Gas plc (NUOG) is an independent oil and gas company whose strategy is to build a diverse portfolio of assets with a strong emphasis on acquiring interests in stranded and marginal fields. These fields are producing or highly-appraised. NUOG will look to develop these assets utilising solutions delivered by Marginal Field Development Company ("MFDevCo" formerly ABT Oil and Gas Ltd) and the MFD Consortium, which can significantly improve the development economics of a project. This is also expected to enable the early booking of reserves.
Marginal Field Development Company (formerly ABT Oil and Gas Ltd) (www.mfdevco.com)
Marginal Field Development Company ('MFDevCo') is a joint venture between RMRI (www.rmri.co.uk) and NU-Oil and Gas plc. It focuses on maximising recovery from the vast, undeveloped hydrocarbon resources contained within marginal fields worldwide, utilising appropriate re-deployable solutions to transform these undervalued assets. MFDevCo manages the entire lifecycle of marginal field projects from opportunity screening, suitability assessment and financing through engineering to production and decommissioning. The solutions developed can be used to:
-- Realise the potential from marginal or stranded fields -- Extend the life of mature fields
-- Rejuvenate fields with a previous or existing development solution that is currently sub-economic
-- Defer decommissioning liabilities -- Provide early production systems
The Marginal Field Delivery Consortium www.mfdconsortium.com
The Marginal Field Delivery Consortium (the Consortium) is a collaborative partnership, established and led by MFDevCo, between upstream oil and gas industry specialists committed to developing hydrocarbon resources around the world which cannot be economically recovered using conventional methods. Through its members, the Consortium offers the technology and services required to deliver marginal oil and gas projects from project identification and concept selection through to operation and decommissioning, using cost-effective and re-deployable production solutions which transform the economics of marginal fields by reducing the development costs by up to 60% compared to using conventional solutions.
The Consortium is led by MFDevCo and also includes:
Arup - ACE platform and project management
Kongsberg - Control and automation systems for 'normally unattended' operations
Frames - Process and utility design for 'normally unattended' solutions
RMRI - Managing regulatory aspects of 'normally unattended' operations
Braemar ACM - Facility financing, yard broker and assistance with project acquisition
AGR - Drilling management and well design services
Apollo - NU-SIFT structural engineering
Aibel - Project management and EPC contractor
Chairman's Statement and Operational Review
The oil price environment, attitude towards the sector, cancellation of investment, and retrenching of companies might seem to represent a perfect storm of negativity but in our view it creates a tremendous opportunity to acquire projects that will become extremely valuable as the market improves. The signs that the market is improving are slowly starting to become evident and they will be strongly correlated to the oil price. Although confidence appears to be rising on claims that the oil price has 'bottomed out', this has not yet filtered through to increased activity.
With this in mind, during the period the Company's activities have continued with strong focus on the identification and evaluation of opportunities which can be developed with lower Capex and Opex solutions. Many opportunities have been considered and at this time, three significant opportunities have been identified where it would appear that utilising solutions delivered by MFDevCo and the MFD Consortium would improve the economics and justify the financing of the projects, with returns enhanced in the event that the expected increase in oil price materialises. Preliminary negotiations have commenced both with licensees and investors and, at this time, good progress is being made in these discussions. Once definitive and substantive terms have been reached on a particular project they will be reported to shareholders and the wider market in keeping with the Company's responsibilities.
An outcome of the general slow-down in oil sector activity, in addition to the deferring of existing projects, is that the project development process is taking longer than when the oil price was higher; this is to be expected with the caution which currently pervades the sector. But while progress for NU-Oil is most easily measured by project commencement announcements, actual progress is represented more widely with the acquisition of opportunities in various formats.
As with downturns in any sector, a number of opportunities to generate value as the market improves can be identified and then acquired. These opportunities arise as a result of companies adjusting their operating profile to function in the new environment and are characterised by deferment or cancellation of investment due to unfavourable project economics. The solutions that we offer change the project economics albeit at a time when the appetite of operators to sanction investment is low, although we believe this will change as market conditions improve. The Company needs to have the opportunity to utilise its access to low-cost development solutions once funding becomes more readily available.
The Company intends to take advantage of this downturn by positioning itself to create value when the market improves. The opportunities that we are striving to capitalise on take the form of oil and gas assets that have, in some cases, already been producing and that require a new development solution, greenfield opportunities that require the implementation of an economic solution and ancillary opportunities that are identified as a result of identifying the first two.
(MORE TO FOLLOW) Dow Jones Newswires
March 31, 2016 02:00 ET (06:00 GMT)
Despite the reduced appetite to invest in the sector the project economics generated by the implementation of the solutions that we have access to would, we believe, generate strong returns, even at the current oil price, and warrant investment consideration. The Company has executed a mandate with Fearnley Securities, a well-respected independent full service Norwegian investment bank with a strong global presence. Fearnley's particular expertise is in maritime industries and it will work with the NU-Oil to develop the appropriate models, structures and financing arrangements necessary to implement the business model. The Company will achieve this wherever possible through specific project finance in which we dilute our stake in a particular project through raising external capital rather than diluting our own capital structure.
While we pull all this together we are conscious of controlling NU-Oil's costs during this period. Consequently, we are seeking where possible to reduce our overheads and defer costs, and structure arrangements that will allow us to do that, until such time as the sector's sentiment changes and projects are at such a stage as to make them investible. An important part of that is the cost of Directors and they too are allowing cash to be preserved through the deferral of a significant element of their remuneration.
With respect to our assets in western Newfoundland, we remain convinced that they can be productive but in this environment the capital requirements necessary to achieve that are beyond the Company's reach. Consequently, we will be actively looking at alternative means by which these assets can be taken forward.
Outlook
I still remain optimistic that the business model created is appropriate for the current industry environment and will result in developing the commercial arrangements that will provide the Company with the framework with which it can regenerate. Nevertheless, further implementation of the business plan will require an injection of new capital into the business, but the value that additional capital is able to generate should significantly exceed the effect of any potential shareholder dilution.
Once arrangements on potential projects are definitive they will be reported to shareholders and the wider market in keeping with the Company's responsibilities.
Alan Minty
Executive Chairman
31 March 2016
Financials
The accounts for the period have been prepared in accordance with the International Financial Reporting Standards as adopted by the European Union using accounting policies that are consistent with those stated in the 2015 Annual Report and Accounts.
The Company reports a loss of GBP472,000 for the period, a decrease of GBP611,000 in the loss reported over the corresponding period in 2014. This is primarily due to the Company reducing its overheads as it resolves the financial and corporate structure required to implement its strategy.
The Company did not generate any revenue during the period (2014: GBP27,000).
Group net liabilities as at 31 December 2015 were GBP3,003,000 (2014: net assets of GBP1,385,000). The change in the Company's financial position is mainly attributable to an exceptional charge of GBP4,115,000 (including the effect of foreign exchange) for an impairment against the carrying value of the Group's Canadian assets. This was necessary due to the recent movement in the oil price and management's subsequent evaluation of the availability of capital to develop the assets.
During the period the Company raised GBP435,000 before expenses primarily to implement the Company's stranded and marginal field strategy and to facilitate the acquisition of projects.
Future funding and capital requirements
The Directors believe that NU-Oil has developed a very attractive business model in choosing to participate in the development of the marginal fields via the investment that is has made in Marginal Field Development Company (formerly ABT Oil and Gas Ltd). Upon conclusion of the necessary foundations, we expect to see an upturn in activity by utilising the offering to increase our project portfolio. As stated above, we will require an injection of new capital in order to implement our business plan however we believe that the value generation will outstrip the effect of any potential shareholder dilution.
Damian Minty
Chief Financial Officer
31 March 2016
CONSOLIDATED INCOME STATEMENT
Unaudited Unaudited Audited
6 months 6 months 12 months
ended ended ended
31 December 31 December 30 June
2015 2014 2015
GBP'000 GBP'000 GBP'000
--------------------------- ------------- ------------- -----------
Revenue - 27 27
Cost of sales - - -
--------------------------- ------------- ------------- -----------
Gross Profit - 27 27
--------------------------- ------------- ------------- -----------
Administrative expenses (472) (1,110) (5,061)
--------------------------- ------------- ------------- -----------
Loss from operations (472) (1,083) (5,034)
--------------------------- ------------- ------------- -----------
Finance costs - - (240)
Loss before tax (472) (1,083) (5,274)
--------------------------- ------------- ------------- -----------
Taxation - - -
--------------------------- ------------- ------------- -----------
Loss for the year (472) (1,083) (5,274)
--------------------------- ------------- ------------- -----------
Loss per share (expressed
in pence per share)
Basic (0.2p) (0.6p) (2.8p)
Diluted (0.2p) (0.6p) (2.8p)
--------------------------- ------------- ------------- -----------
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Unaudited Unaudited Audited
As at As at As at
31 December 31 December 30 June
2015 2014 2015
GBP'000 GBP'000 GBP'000
----------------------------- ------------- ------------- ---------
Non-current assets
Tangible fixed assets 791 4,830 851
Intangible assets 899 1,157 899
Other long term assets 405 543 426
----------------------------- ------------- ------------- ---------
2,095 6,530 2,176
----------------------------- ------------- ------------- ---------
Current assets
Trade and other receivables 907 619 899
Cash and cash equivalents 67 17 1
974 636 900
----------------------------- ------------- ------------- ---------
Total assets 3,069 7,166 3,076
Current liabilities
Trade and other payables (4,093) (3,737) (3,936)
Due to related parties (1,590) (1,594) (1,623)
----------------------------- ------------- ------------- ---------
(5,683) (5,331) (5,559)
----------------------------- ------------- ------------- ---------
Non-current liabilities
Provisions (389) (450) (416)
----------------------------- ------------- ------------- ---------
Total liabilities (6,072) (5,781) (5,975)
----------------------------- ------------- ------------- ---------
Net assets (3,003) 1,385 (2,899)
Shareholders' equity
Ordinary share capital 1,981 1,857 1,857
Share premium account 26,392 26,137 26,137
Reverse acquisition reserve 9,364 9,364 9,364
Other reserves (2,487) (2,487) (2,487)
Warrant reserve 355 355 355
Accumulated losses (38,608) (33,841) (38,125)
----------------------------- ------------- ------------- ---------
Total equity attributable
to owners of the parent (3,003) 1,385 (2,899)
----------------------------- ------------- ------------- ---------
(MORE TO FOLLOW) Dow Jones Newswires
March 31, 2016 02:00 ET (06:00 GMT)
CONSOLIDATED STATEMENT OF CASH FLOW
Unaudited Unaudited Audited
6 months 6 months 12 months
ended ended ended
31 December 31 December 30 June
2015 2014 2015
GBP'000 GBP'000 GBP'000
---------------------------------- ------------- ------------- -----------
Cash flows from operating
activities
Cash used in operations (354) (203) (599)
Net cash used in operating
activities (354) (203) (599)
---------------------------------- ------------- ------------- -----------
Cash flows from investing
activities
Expenditure on tangible (-) (-) -
assets
Net cash used in investing (-) (-) -
activities
---------------------------------- ------------- ------------- -----------
Cash flows from financing
activities
Proceeds from Placement 380 - -
of Shares (net of expenses)
Returned Deposits 77
Net cash flows from financing
activities 380 - 77
---------------------------------- ------------- ------------- -----------
Net (decrease) / increase
in cash and cash equivalents 26 (203) (522)
Cash and cash equivalents
at the start of the year 1 232 232
Exchange gains / (losses) 40 (12) 291
Cash and cash equivalents
at the end of the year 67 17 1
---------------------------------- ------------- ------------- -----------
NOTE: These statements have been prepared under International Financial Reporting Standards as adopted by the European Union using accounting policies consistent with those in the last Annual Report.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR SDWFISFMSEID
(END) Dow Jones Newswires
March 31, 2016 02:00 ET (06:00 GMT)
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