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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Sound Energy Plc | LSE:SOU | London | Ordinary Share | GB00B90XFF12 | ORD 1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.04 | 5.13% | 0.82 | 0.81 | 0.83 | 760,400 | 16:35:29 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Crude Petroleum & Natural Gs | 0 | 4.97M | 0.0026 | 3.00 | 14.94M |
From Apr 2019 to Apr 2024
TIDMSOU
RNS Number : 8815J
Sound Energy PLC
15 September 2016
15 September 2016
SOUND ENERGY PLC
("Sound Energy" or the "Company")
HALF YEARLY REPORT FOR THE SIX MONTHSED 30 JUNE 2016
Sound Energy, the European and African focused upstream oil and gas company, announces its unaudited half year report for the six months ended 30 June 2016.
Half-year Highlights
Morocco
-- Significant gas discovery with the potential for a multi Tcf connected gas field, at Tendrara (onshore Morocco)
-- First Tendrara well, TE-6, encountered approximately 28 metres of net gas pay in the TAGI reservoir, flow achieved pre-simulation, 17 mmscf/d achieved on test
-- Significant near term development plan to secure near term cash flow
-- Oil & Gas Investment Fund S.A.S. ("OGIF"), the partner on the licence, has expressed interest to fund a new pipeline connecting Tendrara to the Gazoduc Maghreb Europe ("GME") pipeline
-- Second well on Tendrara, was spud on 25 August 2016, with a view to proving a sub-horizontal drilling concept
-- Secured the Meridja exploration permit, adjacent to Tendrara -- Acquisition and farm-out of Sidi Moktar licences
Italy
-- Final Badile drilling permission received in May 2016
-- First farm-out secured with Schlumberger who will fund EUR7.5 m of first well at Badile in exchange for an option on 20% of the licence
-- Memorandum of Understanding regarding a rig contract in relation to Badile signed with Pergemina SPA
Corporate
-- Brian Mitchener, a proven world class hydrocarbon finder, joined the team as Executive Vice President, Exploration
-- Inclusion in FTSE AIM UK 50 Index with effect from Monday 19 September 2016 and migration of trading to SETS, the LSE premier electronic trading service
-- Completion of group debt-refinancing with issue of 5-year EUR28.8 million bonds
Upcoming milestones
-- TE-7 drilling results and extended well test
-- Planned drilling of an outpost well on Tendrara with a view to proving the multi Tcf potential
-- Countdown to second Strategic Play, Badile
For further information please contact:
Vigo Communications - PR Adviser Tel: +44 (0)20 7830 9700 Patrick d'Ancona Chris McMahon Alexandra Roper Sound Energy j.parsons@soundenergyplc.com James Parsons, Chief Executive Officer Smith & Williamson - Nominated Adviser Tel: +44 (0)20 7131 4000 Azhic Basirov David Jones Ben Jeynes Cantor Fitzgerald Europe - Broker Tel: +44 (0)20 7894 8896 Sarah Wharry David Porter
Statement from the Chairman and Chief Executive Officer
Whilst the challenging sector backdrop continues, Sound Energy is delivering its counter cyclical growth agenda, leveraging its world class portfolio, people and partners.
In August 2016, we were delighted to announce a resounding success at our first strategic play with a material gas discovery at Tendrara following the successful drilling of our first well on the structure. This success was shared with Schlumberger, our strategic partner, who both technically de-risks the asset as well as providing funding for the first three wells.
The results seen at TE-6, together with the lack of a gas/water contact at any of the historical wells, suggests the possibility of a significant gas column within a continuous extended structure and therefore a potential multi Tcf gas field. We are continuing our appraisal of the Tendrara licence area, with the spud of TE-7 on 25 August 2016. This well aims to prove sufficient volumes for a concession application as well as proving the benefits of sub-horizontal drilling.
We will begin to unlock the long term potential of Tendrara with the drilling of one or more outpost wells and the shooting of additional seismic.
The Company has also recently secured, subject to regulatory and other approvals, a 55% interest in the Meridja exploration permit, which is adjacent to the Tendrara licence and shares the same fundamental geology.
Following securing the final permission to drill the Badile prospect, onshore Italy, in May 2016, the countdown to our second Strategic Play has been initiated. A key step in this process has been the expansion of the Schlumberger partnership to include Badile, with Schlumberger gaining access to a 20% profit interest in the licence in exchange for funding 30% of the estimated cost of the first well and 20% of all costs thereafter. We also continue to finalise the acquisition of the 75% operated asset in the Sidi Moktar licences, onshore Morocco, and thus our third Strategic Play, with regulatory approvals expected shortly.
Our portfolio continues to include a blend of high upside exploration assets, low risk appraisal/development assets and production, which is diversified across Italy and Morocco. The pursuit of an onshore regional gas strategy, underpinned by solid European gas fundamentals and a stable, growing, gas-hungry country in Morocco has enabled the Company to continue to flourish.
The Company remains in a strong financial position, with a cash balance of $27 million at 31 August 2016 after the receipt of $1.1 million Indonesian contingent consideration, the drilling of TE-6 and the completion of its planned debt refinancing during the summer.
2016 is looking to be a pivotal year for the Company.
Our achievements would not have been possible without the efforts of our people, the governments and partners we work with and our supportive shareholders. We would like to take this opportunity to thank all of them.
"2016 has been an incredibly exciting period for the Company so far, with Tendrara, Meridja and the Eastern Morocco TAGI play having demonstrated the potential to be a material hydrocarbon province and therefore to transform both Sound Energy and the Moroccan gas industry."
Stephen Whyte James Parsons Chairman CEO
Operations update
Multi Tcf Potential in Eastern Morocco
"A rate of 17 mmscf/d was achieved. This rate is significantly above initial expectations and represents a highly commercial rate."
Tendrara and Meridja
Value from discovery
During the first half of 2016, the first Tendrara well, TE-6, was drilled to a measured vertical depth of 2,665 metres and successfully encountered approximately 28 metres of net gas pay in the TAGI reservoir. Flow was achieved pre-stimulation and, post-stimulation, a rate of 17 mmscf/d (0.5 million scm/d) was achieved. This rate is significantly above initial expectations and represents a highly commercial rate.
The reservoir bottom hole pressure recorded was 420 bars and the static pressure recorded in the well correlates, in terms of gas gradient, with all of the wells previously drilled in the licence area. The combination of these factors together with the fact that none of the historically drilled wells on the licence have identified a gas/water contact, suggests the possibility of a significant gas column within a continuous extended structure.
Realising potential
The Company's second well on the licence, TE-7, was spud on 25 August 2016, with a view to proving sufficient gas volumes and well deliverability to enable finalisation of the field development plan and a concession application. The well objectives include demonstrating the benefits of sub-horizontal drilling, which is expected to be implemented as the production well concept for Tendrara.
The TE-7 site, lies between TE-5 and TE-6 and is approximately 830 metres to the Northeast of TE-5 and 1.6 kilometres from TE-6. Drilling is planned to reach a total measured depth of 3,440 metres with specific tools being used to geo steer the well at close to an 88 degree angle inside the TAGI reservoir to ensure a horizontal drain of between 600 and 900 metres. The sub-horizontal section will run to the North, parallel to the minimum horizontal stress observed in TE-6. An extended well test will follow clean-up and initial testing will take approximately 70 days thereafter to confirm production sustainability and to aid comprehensive field development planning.
The Company, in conjunction with Schlumberger, is currently considering options for one or more outpost wells, as well as further studies, required to prove the potential of the structure. This may include and extend beyond the reservoir identified at TE-2, some 30km to the North East of TE-6.
The Company exercised its option to acquire, subject to regulatory and other approvals, a 55% participating interest in the Meridja exploration permit, onshore Morocco, from OGIF in June 2016. The Meridja licence area is adjacent to the Tendrara licence and is a highly prospective 9,000 km(2) area with the same fundamental geology as Tendrara.
Condensed Interim Consolidated Income Statement
Hot Features
Premium
Six months ended Year
Six months ended 30 June ended
30 June 2016 2015 31 Dec 2015
Unaudited Unaudited Audited
Notes GBP'000s GBP'000s GBP'000s
------------------------------------------------------------- ----- ---------------- ---------------- ------------
Revenue 529 478 859
Other income 715
Operating costs (801) (291) (538)
Impairment of producing assets - - (6,347) Exploration costs (28) (1) (5,838) ------------------------------------------------------------- ----- ---------------- ---------------- ------------ Gross profit/(loss) 415 186 (11,864) Administrative expenses (2,346) (1,490) (3,181) ------------------------------------------------------------- ----- ---------------- ---------------- ------------ Group operating loss from continuing operations (1,931) (1,304) (15,045) ------------------------------------------------------------- ----- ---------------- ---------------- ------------ Finance revenue 5 2,717 12 52 Foreign exchange gain/(loss) 807 (2,000) (1,389) External interest costs (1,183) (602) (1,905) ------------------------------------------------------------- ----- ---------------- ---------------- ------------ Profit/(loss) for period before taxation 410 (3,894) (18,287) ------------------------------------------------------------- ----- ---------------- ---------------- ------------ Tax expense - - - ------------------------------------------------------------- ----- ---------------- ---------------- ------------ Profit/(loss) for period after taxation 410 (3,894) (18,287) ------------------------------------------------------------- ----- ---------------- ---------------- ------------ Other comprehensive (loss)/income Foreign currency translation income/(loss) 631 (100) (320) ------------------------------------------------------------- ----- ---------------- ---------------- ------------ Total comprehensive profit/(loss) for the period 1,041 (3,994) (18,607) ------------------------------------------------------------- ----- ---------------- ---------------- ------------ Profit/(loss) for the period attributable to: Equity holders of the parent 1,041 (3,994) (18,607) ------------------------------------------------------------- ----- ---------------- ---------------- ------------ Basic and diluted profit/(loss) per share for the period attributable to the equity holders of the parent (pence) 3 0.08 (0.91) (3.90) ------------------------------------------------------------- ----- ---------------- ---------------- ------------
Condensed Interim Consolidated Balance Sheet
As at 30 June 2016
30 June 30 June 31 Dec
2016 2015 2015
Unaudited Unaudited Audited
Notes GBP'000s GBP'000s GBP'000s
---------------------------------- ----- ----------- ----------- ----------
Non-current assets
Property, plant and equipment 6,952 12,403 5,558
Intangible assets 4 14,204 13,859 9,564
Land and buildings 1,493 1,294 1,327
---------------------------------- ----- ----------- ----------- ----------
22,649 27,556 16,449
---------------------------------- ----- ----------- ----------- ----------
Current assets
Inventories 327 - -
Other receivables 14,147 2,434 2,506
Prepayments 116 94 99
Cash and short term deposits 14,466 17,489 15,240
---------------------------------- ----- ----------- ----------- ----------
29,056 20,017 17,845
---------------------------------- ----- ----------- ----------- ----------
Total assets 51,705 47,573 34,294
---------------------------------- ----- ----------- ----------- ----------
Current Liabilities
Trade and other payables 10,028 3,626 2,097
Loans repayable in under one year 5 7,704 - 5,751
---------------------------------- ----- ----------- ----------- ----------
17,732 3,626 7,848
---------------------------------- ----- ----------- ----------- ----------
Non-current liabilities
Deferred tax liabilities 2,160 1,958 1,992
Loans due in over one year 5 9,152 13,538 7,157
Provisions 1,780 1,082 1,138
---------------------------------- ----- ----------- ----------- ----------
13,092 16,578 10,287
---------------------------------- ----- ----------- ----------- ----------
Total liabilities 30,824 20,204 18,135
---------------------------------- ----- ----------- ----------- ----------
Net Assets 20,881 27,369 16,159
---------------------------------- ----- ----------- ----------- ----------
Capital and Reserves
Equity share capital 86,868 83,086 86,315
Warrant Reserve 3,209 369 369
Foreign currency reserve 1,699 1,288 1,068
Accumulated deficit (70,895) (57,374) (71,593)
---------------------------------- ----- ----------- ----------- ----------
Total Equity 20,881 27,369 16,159
---------------------------------- ----- ----------- ----------- ----------
Condensed Interim Consolidated Statement of Changes in Equity
Share Accumulated Foreign currency Total
capital Share premium Deficit Warrant Reserve reserves equity
GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s
------------------------- --------- ------------- ----------- --------------- ------------------------ ---------
At 1 January 2016 5,039 81,276 (71,593) 369 1,068 16,159
------------------------- --------- ------------- ----------- --------------- ------------------------ ---------
Total Profit for the
period - - 410 - - 410
Other comprehensive
income - - - - 631 631
------------------------- --------- ------------- ----------- --------------- ------------------------ ---------
Total comprehensive
income for the period - - 410 - 631 1,041
Fair value of warrants
issued with bonds - - - 2,840 - 2,840
Issue of share capital 53 500 - - - 553
Share based payments - - 288 - - 288
------------------------- --------- ------------- ----------- --------------- ------------------------ ---------
At 30 June 2016
(unaudited) 5,092 81,776 (70,895) 3,209 1,699 20,881
------------------------- --------- ------------- ----------- --------------- ------------------------ ---------
Share Share Accumulated Total
capital premium Deficit Warrant Reserve Foreign currency reserves equity
GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s
---------------------------- --------- --------- ----------- --------------- ------------------------- ---------
At 1 January 2015 4,153 67,145 (53,621) 369 1,388 19,434
---------------------------- --------- --------- ----------- --------------- ------------------------- ---------
Total Loss for the period - - (18,287) - - (18,287)
Other comprehensive income - - - - (320) (320)
---------------------------- --------- --------- ----------- --------------- ------------------------- ---------
Total comprehensive
income/(loss) - - (18,287) - (320) (18,607)
Issue of share capital 886 15,342 - - - 16,228
Transaction costs - (1,211) - - - (1,211)
Share based payments - - 315 - - 315
---------------------------- --------- --------- ----------- --------------- ------------------------- ---------
At 31 December 2015 5,039 81,276 (71,593) 369 1,068 16,159
---------------------------- --------- --------- ----------- --------------- ------------------------- ---------
Share Share Accumulated Total
capital premium Deficit Warrant Reserve Foreign currency reserves equity
GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s
---------------------------- --------- --------- ----------- --------------- ------------------------- ---------
At 1 January 2015 4,153 67,145 (53,621) 369 1,388 19,434
---------------------------- --------- --------- ----------- --------------- ------------------------- ---------
Total Loss for the period - - (3,894) - - (3,894)
Other comprehensive income - - - - (100) (100)
---------------------------- --------- --------- ----------- --------------- ------------------------- ---------
Total comprehensive
income/(loss) - - (3,894) - (100) (3,994)
Issue of share capital 675 12,034 - - - 12,709
Transaction costs - (921) - - - (921)
Share based payments - - 141 - - 141
---------------------------- --------- --------- ----------- --------------- ------------------------- ---------
At 30 June 2015 (unaudited) 4,828 78,258 (57,374) 369 1,288 27,369
---------------------------- --------- --------- ----------- --------------- ------------------------- ---------
Condensed Interim Consolidated Cash Flow Statement
Year
Six months ended Six months ended ended
30 June 30 June 31 Dec
2016 2015 2015
Unaudited Unaudited Audited
GBP'000s GBP'000s GBP'000s
--------------------------------------------------------- ---------------- ---------------- ---------
Cash flow from operating activities
Cash flow from operations (377) (1,593) (3,487)
Interest received 51 12 52
--------------------------------------------------------- ---------------- ---------------- ---------
Net cash flow from operating activities (326) (1,581) (3,435)
--------------------------------------------------------- ---------------- ---------------- ---------
Cash flow from investing activities
Purchase of drilling inventories (327) - -
Capital expenditure and disposals (470) (292) (1,156)
Exploration and development expenditure (3,173) (3,156) (6,545)
--------------------------------------------------------- ---------------- ---------------- ---------
Net cash flow from investing activities (3,970) (3,448) (7,701)
--------------------------------------------------------- ---------------- ---------------- ---------
CSTI Funding contract (13) (115) (117)
Net proceeds from debt 5,292 - -
Repayment of borrowings (2,724) - -
Net proceeds from equity issue 553 11,163 15,017
Interest payments (461) (382) (1,051)
--------------------------------------------------------- ---------------- ---------------- ---------
Net cash flow from financing activities 2,647 10,666 13,849
--------------------------------------------------------- ---------------- ---------------- ---------
Net (decrease)/increase in cash and cash equivalents (1,649) 5,637 2,713
Net foreign exchange difference 875 (756) (81)
Cash and cash equivalents at the beginning of the period 15,240 12,608 12,608
--------------------------------------------------------- ---------------- ---------------- ---------
Cash and cash equivalents at the end of the period 14,466 17,489 15,240
--------------------------------------------------------- ---------------- ---------------- ---------
Year
Six months ended Six months ended ended
30 June 30 June 31 Dec
2016 2015 2015
Unaudited Unaudited Audited
GBP'000s GBP'000s GBP'000s
------------------------------------------------------------- ---------------- ---------------- ---------
Cash flow from operations reconciliation
Profit/(loss) before tax 410 (3,894) (18,287)
Finance revenue (2,717) (12) (52)
Exploration expenditure written off and impairment of assets - - 12,185
Increase/(decrease) in accruals and short term payables 7,104 (329) (97)
Depreciation 181 98 136
Share based payments charge 288 141 315
Finance costs and exchange differences 376 2,602 2,588
Increase in short term receivables (6,019) (199) (275)
------------------------------------------------------------- ---------------- ---------------- ---------
Cash flow from operations (377) (1,593) (3,487)
------------------------------------------------------------- ---------------- ---------------- ---------
Notes to the Condensed Interim Consolidated Financial Statements
1. Basis of preparation
The condensed interim consolidated financial statements do not represent statutory accounts within the meaning of section 435 of the Companies Act 2016. The financial information for the year ended 31 December 2015 is based on the statutory accounts for the year ended 31 December 2015. Those accounts, upon which the auditors issued an unqualified opinion, have been delivered to the Registrar of Companies and did not contain statements under section 498(2) or (3) of the Companies Act 2006.
The condensed interim financial information is unaudited and has been prepared on the basis of the accounting policies set out in the Group's 2015 statutory accounts in accordance with IAS 34 Interim Financial Reporting.
The seasonality or cyclicality of operations does not impact on the interim financial statements.
2. Segment information
The Group categorises its operations into two business segments based on exploration and appraisal and development and production. The Group's exploration and appraisal activities are carried out in Morocco and Italy. The Group's reportable segments are based on internal reports about the components of the Group which are regularly reviewed by the Board of Directors, being the Chief Operating Decision Maker ("COMD"), for strategic decision making and resources allocation to the segment and to assess its performance. Sales during the period arose from producing licences in Italy. The segment results for the period ended 30 June 2016 are as follows:
Segment results for the period ended 30 June 2016
Corporate Development & Production Exploration & Appraisal Total
GBP'000s GBP'000s GBP'000s GBP'000s
--------------------------------------------- --------- ------------------------ ----------------------- ---------
Sales and other operating revenues - 529 - 529
Other income 715 - - 715
Operating costs - (801) - (801)
Exploration costs - - (28) (28)
Administration expenses (2,346) - - (2,346)
--------------------------------------------- --------- ------------------------ ----------------------- ---------
Operating loss segment result (1,631) (272) (28) (1,931)
--------------------------------------------- --------- ------------------------ ----------------------- ---------
Finance revenue 2,717 - - 2,717
Finance costs and exchange gains (376) - - (376)
--------------------------------------------- --------- ------------------------ ----------------------- ---------
Profit/(loss) for the period before taxation 710 (272) (28) 410
--------------------------------------------- --------- ------------------------ ----------------------- ---------
The segments assets and liabilities at 30 June 2016 are as follows:
Exploration
Corporate Development & Production & Appraisal Total
GBP'000s GBP'000s GBP'000s GBP'000s
-------------------- --------- ------------------------ ------------ ---------
Capital expenditure 274 6,678 15,697 22,649
Other assets 22,802 62 6,192 29,056
Total liabilities (11,546) (1,938) (17,340) (30,824)
-------------------- --------- ------------------------ ------------ ---------
The geographical split of non-current assets is as follows:
UK Italy Morocco
GBP'000s GBP'000s GBP'000s
---------------------------------------- --------- --------- ---------
Development and production assets - 6,678 -
Land and buildings - 1,493 -
Fixtures, fittings and office equipment 38 170 66
Goodwill - 2,160 -
Exploration and evaluation assets - 7,809 4,122
Software 103 8 2
---------------------------------------- --------- --------- ---------
Total 141 18,318 4,190
---------------------------------------- --------- --------- ---------
Segment results for the period ended 30 June 2015
Corporate Development & Production Exploration & Appraisal Total
GBP'000s GBP'000s GBP'000s GBP'000s
------------------------------------ --------- ------------------------ ----------------------- ---------
Sales and other operating revenues - 478 - 478
Operating costs - (291) - (291)
Exploration costs - - (1) (1)
Administration expenses (1,490) - - (1,490)
------------------------------------ --------- ------------------------ ----------------------- ---------
Operating loss segment result (1,490) 187 (1) (1,304)
------------------------------------ --------- ------------------------ ----------------------- ---------
Finance revenue 12 - - 12
Finance costs and exchange losses (2,602) - - (2,602)
------------------------------------ --------- ------------------------ ----------------------- ---------
Loss for the period before taxation (4,080) 187 (1) (3,894)
------------------------------------ --------- ------------------------ ----------------------- ---------
The segments assets and liabilities at 30 June 2015 were as follows:
Corporate Development & Production Exploration & Appraisal Total
GBP'000s GBP'000s GBP'000s GBP'000s
-------------------- --------- ------------------------ ----------------------- ---------
Capital expenditure 67 12,336 15,153 27,556
Other assets 20,017 - - 20,017
Total liabilities (1,958) (6,669) (11,577) (20,204)
-------------------- --------- ------------------------ ----------------------- ---------
The geographical split of non-current assets is as follows:
UK Italy
GBP'000s GBP'000s
---------------------------------------- --------- ---------
Development and production assets - 12,336
Land and buildings - 1,294
Fixtures, fittings and office equipment 42 25
Goodwill - 1,959
Exploration and evaluation assets - 11,813
Software - 87
---------------------------------------- --------- ---------
Total 42 27,514
---------------------------------------- --------- ---------
Segment results for the year ended 31 December 2015
Development Exploration
Corporate & Production & Appraisal Total
GBP'000s GBP'000s GBP'000s GBP'000s
------------------------------------ --------- ------------- ------------ ---------
Sales and other operating revenues - 859 - 859
Operating costs - (538) - (538)
Exploration costs - - (5,838) (5,838)
Impairment of producing assets - (6,347) - (6,347)
Administration expenses (3,181) - - (3,181)
------------------------------------ --------- ------------- ------------ ---------
Operating loss segment result (3,181) (6,026) (5,838) (15,045)
------------------------------------ --------- ------------- ------------ ---------
Interest receivable 52 - - 52
Finance costs and exchange losses (3,294) - - (3,294)
------------------------------------ --------- ------------- ------------ ---------
Loss for the period before taxation (6,423) (6,026) (5,838) (18,287)
------------------------------------ --------- ------------- ------------ ---------
The segments assets and liabilities at 31 December 2015 were as follows:
Development Exploration
Corporate & Production & Appraisal Total
GBP'000s GBP'000s GBP'000s GBP'000s
------------------- --------- ------------- ------------ ---------
Non-current assets 137 5,391 10,921 16,449
Current assets 17,845 - - 17,845
Total liabilities (7,743) (1,498) (8,894) (18,135)
------------------- --------- ------------- ------------ ---------
The geographical split of non-current assets is as follows:
UK Italy Morocco
GBP'000s GBP'000s GBP'000
---------------------------------------- --------- --------- --------
Development and production assets - 5,391 -
Land and buildings - 1,327 -
Fixtures, fittings and office equipment 37 101 29
Goodwill - 1,992 -
Exploration and evaluation assets - 6,960 512
Software 100 - -
---------------------------------------- --------- --------- --------
Total 137 15,771 541
---------------------------------------- --------- --------- --------
3. Profit/(loss) per share
The calculation of basic profit/(loss) per Ordinary Share is based on the profit/(loss) after tax and on the weighted average number of Ordinary Shares in issue during the period. The calculation of diluted profit/(loss) per share is based on the profit/(loss) after tax on the weighted average number of ordinary shares in issue plus weighted average number of shares that would be issued if dilutive options and warrants were converted into shares. Basic and diluted profit/(loss) per share is calculated as follows:
Profit/(loss) after tax from Weighted average Profit/(loss) per share (basic)
continuing operations shares in issue from continuing operations
June June December June June December June June December
2016 2015 2015 2016 2015 2015 2016 2015 2015
GBP'000s GBP'000s GBP'000s million million million pence pence pence
------ ---------- --------- --------- -------- -------- -------- ---------- --------- ------------
Basic 410 (3,894) (18,287) 506 430 467 0.08 (0.91) (3.90)
------ ---------- --------- --------- -------- -------- -------- ---------- --------- ------------
Weighted average
Profit/(loss) after tax from shares in issue and dilutive Profit/(loss) per share (diluted)
continuing operations potential ordinary shares from continuing operations
June June December June June December June June December
2016 2015 2015 2016 2015 2015 2016 2015 2015
GBP'000s GBP'000s GBP'000s million million million pence pence pence
-------- ---------- --------- --------- ---------- ---------- --------- ---------- ---------- -------------
Diluted 410 (3,894) (18,287) 538 430 467 0.08 (0.91) (3.90)
-------- ---------- --------- --------- ---------- ---------- --------- ---------- ---------- -------------
4. Intangibles
Year
Six months ended Six months ended ended
30 June 30 June 31 Dec
2016 2015 2015
Unaudited Unaudited Audited
GBP'000s GBP'000s GBP'000s
---------------------------- ---------------- ---------------- ---------
Cost
At start of period 20,198 13,948 13,948
Additions 4,000 5,497 6,560
Exchange adjustments 657 (454) (310)
---------------------------- ---------------- ---------------- ---------
At end of period 24,855 18,991 20,198
---------------------------- ---------------- ---------------- ---------
Impairment and Depreciation
At start of period 10,634 5,060 5,060
Charge for period 17 72 5,574
---------------------------- ---------------- ---------------- ---------
At end of period 10,651 5,132 10,634
---------------------------- ---------------- ---------------- ---------
Net book amount 14,204 13,859 9,564
---------------------------- ---------------- ---------------- ---------
On 8 August 2016, the Company announced a significant gas discovery at the Company's Tendrara licence, onshore Morocco. Capital expenditure will be incurred as additional wells are expected to be drilled before the end of 2016.
5. Loans and Borrowings
Year
Six months ended Six months ended ended
30 June 30 June 31 Dec
2016 2015 2015
Unaudited Unaudited Audited
GBP'000s GBP'000s GBP'000s
---------------------- ---------------- ---------------- ---------
Current liability
Other loans 7,704 - 5,751
---------------------- ---------------- ---------------- ---------
Non-current liability
5-year secured bonds 8,125 - -
Other loans 1,027 13,538 7,157
---------------------- ---------------- ---------------- ---------
9,152 13,538 7,157
---------------------- ---------------- ---------------- ---------
On 21 June 2016, the Company announced that Greenberry S.A ("Greenberry") had subscribed for 5- year non-amortising secured bonds with an aggregate value of the issue of EUR28.8 million (the "bonds"). Alongside the bonds, the Company was to issue 70,312,500 warrants to subscribe for new ordinary shares in the Company at an exercise price of 30 pence per ordinary share and an exercise period of approximately five years, concurrent with the term of the bonds, to Greenberry (the "warrants"). The bonds are secured over the share capital of Sound Energy Holdings Italy Limited. The bonds have a 5% coupon and were issued at a 32% discount to par value. A total cash fee of EUR1.1 million was payable by the Company to Greenberry.
The warrants were recorded within equity at their fair value and the remaining proceeds of the notes net of issue costs were recorded as non-current liability. As per the terms of the subscription agreement with Greenberry the bonds were to be issued in tranches. The liability reported as at 30 June 2016 is attributable to the tranches that had been issued to Greenberry as at that date. The final tranche of the bonds was issued subsequent to the period end.
Part of the proceeds of the bonds was used to settle an existing Reserve Based Lending facility of EUR7.0 million at a discount of 50% which, after allocation of attributable transaction costs, resulted in a credit being recognised in the income statement of GBP2.7 million during the period.
6. Shares in issue and share based payments
As at 30 June 2016, the Company had 509,211,611 ordinary shares in issue. In the period to 30 June 2016, a total of 5.3 million warrants at 10.4p were exercised.
On 24 March 2016, the Company announced that it had on 23 March 2016 issued a total of 9,050,000 options, of which 3,000,000 were awarded to an officer of the Company, to subscribe for new ordinary shares in the Company at a price of 16 pence per ordinary share. The options will vest on 23 March 2019 and will be exercisable thereafter at any time until 23 March 2021. The Options will vest subject to the pre-determined performance criteria that if the price per ordinary share in the Company increases over the three-year vesting period by 15%, 10%, or 5% on a compounded annualised basis then all, two-thirds, or one-third of the options respectively will vest.
7. Post Balance Sheet events
On 8 August 2016, the Company announced the issue of 70,312,500 warrants at an exercise price of 30 pence per share to Greenberry in line with a subscription agreement entered into on 21 June 2016 in which Greenberry subscribed for 5 year non-amortising bonds (Note 5).
On 8 August 2016, the Company announced the issue of 1,500,000 options to non-executive directors of the Company at an exercise price of 60 pence per share and the exercise of 1,780,000 options by an officer of the Company.
On 29 July 2016, the Company announced issue of 300,000 new ordinary shares following the exercise of 300,000 options to subscribe for new ordinary shares in the Company at a price of 16.5 pence per new ordinary share.
On 27 July 2016, the Company announced the signature of an agreement with Schlumberger group entities ("Schlumberger") where by Schlumberger has agreed to fund EUR 7.5 million of services to be provided by Schlumberger on the Badile well. The agreement is subject to certain standard conditions precedent and signing of the relevant agreements. In exchange the Company has agreed to grant Schlumberger an option, exercisable at nil additional cost at any time during a six-month period following the completion of a well test and the declaration of a potential commercial discovery at the Badile licence, to acquire a 20% net profit interest in the Badile licence.
On 7 July 2016, the Company announced that it had received a non-binding expression of interest from Oil & Gas Investment Fund ("OGIF"), its partner on the Tendrara licence, expressing OGIF's interest in funding, building and operating a new pipeline connecting Tendrara to the Gazoduc Maghreb Europe (GME) pipeline.
Subsequent to the period end to 31 August 2016, a total of 16.6 million warrants at 10.4p and 8.1 million warrants at 24p were exercised.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR AKQDBFBKDOCD
(END) Dow Jones Newswires
September 15, 2016 02:00 ET (06:00 GMT)
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