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WAM Wham

41.30
0.00 (0.00%)
19 Jun 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Wham LSE:WAM London Ordinary Share GB00B0JG1P02 ORD 0.1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 41.30 0.00 01:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
0 0 N/A 0

Interim Results

18/09/2007 8:03am

UK Regulatory


RNS Number:0024E
Wham Energy plc
18 September 2007

                                 
             


              Interim Results for the six months ended 30 June 2007

Operating Highlights

   * Takeover proposal from Venture Production recommended by the WHAM Board
     of Directors
   * Scheme of Arrangement document is expected to be posted to shareholders
     on or around 25th September
   * Processing of 3D seismic survey on blocks 48/3 and 48/4 well under way
   * 22nd round licences yield attractive prospects ready for drilling
   * 23rd round licences fully mapped yielding two quality prospects
   * 24th round licences currently being mapped and two prospects and two
     leads already identified.

Financial Highlights

   * Interim loss before taxation was #260,120 (2006 #156,828)
   * Loss per share for the interim period was 0.82p (2006: 0.49p)
   * Liquid resources at 30 June 2007 amounted to #6.67 million, or 21.0p/
     share
   * IFRS adopted for 2007 and 2006 comparatives restated

Date: 18 September 2007

For further information contact:
Wham Energy plc                          cityPROFILE
Tom Windle, Chief Executive              Simon Courtenay
Tel: 020-7924-4644;                      Tel: 020-7448-3244
Mob: 07968-162630
Alan Thomas, Finance Director
Mob: 07739-800093

WHAM Energy plc is an AIM listed company. Further details about the Company and
downloadable copies of this announcement are available on the Company's website:
www.whamenergy.com.




                              REVIEW OF OPERATIONS

Business environment

WHAM has diligently progressed its portfolio of exploration prospects to produce
several potentially attractive drillable prospects. However the market for
farm-outs has become increasingly harsh reflecting the very high exploration
drilling costs, volatility of gas prices, and the current 50% corporation tax
applicable to UK oil and gas production, all of which have raised the level at
which a gas discovery can be estimated to be commercial. In the face of these
considerable challenges the Board of Directors is recommending that WHAM
shareholders accept the offer from Venture Production, as set out in the Rule
2.5 announcement released on Thursday 23 August 2007.

Summary of progress on assets

Blocks 48/3a & 48/4 (WHAM 16%)

These 22nd round blocks were successfully farmed out to Tullow and Dana earlier
in the year with WHAM retaining a 16% working interest. The seismic survey shot
in September of last year has been integrated with additional data to provide
full 3D coverage over the licence. This dataset is currently being processed
prior to mapping and interpretation. It is anticipated the work will be
completed and that a well will be drilled in 2008.

Blocks 42/25b, 43/16, 43/21b (WHAM 40%)

These 22nd round blocks have yielded several potentially drillable prospects of
which the most attractive is Prospect Carna. A seismic and environmental site
survey has been acquired over Carna in preparation for drilling in 2008.

Block 53/3d (WHAM 100%)

This 23rd round block has been fully mapped and a very well defined prospect
identified adjacent to the giant Leman gas field. WHAM has been seeking
potential farminees and evaluating the economic viability of drilling the
prospect.

Blocks 43/11 and 43/12 (WHAM 100%)

This 23rd round licence containing two blocks has yielded two well defined
prospects at the prospective Carboniferous level directly on trend to the
Cavendish field. Currently WHAM is determining the resource potential of the
prospects and undertaking further mapping to assess any additional prospectivity
on the blocks.

Block 44/27c (WHAM 100%)

This block was acquired in the 24th licence round in January 2007 and following
the purchase of a 3D data set, mapping has indicated that there is a potential
extension of the Carboniferous producing Schooner gas field on to the licence.
Further mapping and specialist seismic depth conversion techniques are being
applied to the data set to confirm the structure.

Block 49/22b (WHAM 100%)

49/22b was acquired at 100% working interest in the 24th licence round in
January 2007. The purchase of 3D seismic data sets has been completed and
mapping is advanced. To date one prospect and two leads at the Permian Leman
sandstone level that are shared with adjacent licences have been identified on
the acreage.

The remaining licences in the portfolio are currently under evaluation and
further seismic acquisition and work will be required to determine their
prospectivity. It is anticipated that certain licences may be relinquished in
the near future in order to focus resources on the most prospective areas likely
to yield short term commercially viable prospects thus strengthening the
portfolio.

During the first six months of 2007, WHAM continued to evaluate additional
opportunities and potential acquisitions where management felt there was scope
to enhance shareholder value.

Outlook

Longer term, the Board remains positive about the potential for finding and
developing commercial gas fields in the southern North Sea. For the remainder of
2007, however, the challenges presented by the business environment described
above will most likely continue. Whilst the Board would expect the Company's
technical team to develop further prospects on its 24th round licences, new
farm-outs will remain difficult to achieve and some slippage in the currently
expected drilling time-tables on the Morpheus and Carna prospects cannot be
ruled out.

Tom Windle
Chief Executive Officer

18 September 2007




INCOME STATEMENT
For the 6 months ended 30 June 2007

                                    Notes   Six Months   Six Months         Year       
                                                 Ended        Ended        Ended
                                             30-Jun-07    30-Jun-06    31-Dec-06
                                             Unaudited    Unaudited      Audited
                                                     #            #            #

Revenue                                              -            -            -
Cost of sales                                        -            -            -
--------------------------------------------------------------------------------
Gross profit/(loss)                                  -            -            -
Exploration expenses                          (84,891)     (14,908)     (95,907)
Administrative expenses                      (353,489)    (335,816)    (754,588)
--------------------------------------------------------------------------------
Operating profit/(loss)                      (438,380)    (350,724)    (850,495)
Finance income                                 178,260      193,896      379,505
--------------------------------------------------------------------------------
Profit/(loss) before taxation                (260,120)    (156,828)    (470,990)
Taxation                              3              -            -            -
--------------------------------------------------------------------------------
Profit/(Loss) for the period                 (260,120)    (156,828)    (470,990)

Earnings/(loss) per share
Basic                                 4        (0.82)p      (0.49)p      (1.49)p
Diluted                               4        (0.82)p      (0.49)p      (1.49)p





BALANCE SHEET
As at 30 June 2007
                           Notes    30-Jun-07    30-Jun-06    31-Dec-06
                                    Unaudited    Unaudited      Audited
                                            #            #            #
Non-current assets
Exploration and evaluation          2,189,928      594,128    1,817,924
assets
Plant and equipment                    41,751       20,446       44,976
------------------------------------------------------------------------
Total non-current assets            2,231,679      614,574    1,862,900
------------------------------------------------------------------------

Current assets
Trade and other                       221,040      166,578      498,004
receivables
Cash and cash equivalents           6,667,725    8,689,859    6,817,422
------------------------------------------------------------------------
Total current assets                6,888,765    8,856,437    7,315,426
------------------------------------------------------------------------

Current liabilities
Trade and other                     (214,776)    (147,211)     (86,388)
liabilities
Current tax liabilities                     -            -            -
------------------------------------------------------------------------
Total current liabilities           (214,776)    (147,211)     (86,388)
------------------------------------------------------------------------

Net current assets/                 6,673,989    8,709,226    7,229,038
(liabilities)

Non-current liabilities
Deferred taxation                           -            -            -
------------------------------------------------------------------------
Total non-current                           -            -            -
liabilities
------------------------------------------------------------------------

NET ASSETS                          8,905,668    9,323,800    9,091,938
------------------------------------------------------------------------

Equity
Share capital                  6       31,746       31,696       31,696
Share premium account               9,580,987    9,568,287    9,568,287
Other reserves                        201,850       58,450      140,750
Retained earnings/(losses)          (908,915)    (334,633)    (648,795)
------------------------------------------------------------------------
                                    8,905,668    9,323,800    9,091,938
------------------------------------------------------------------------





Cash Flow Statement
For the 6 months ended 30 June 2007
                                      Notes         Six         Six         Year
                                                 Months      Months
                                                  Ended       Ended        Ended
                                              30-Jun-07   30-Jun-06    31-Dec-06
                                              Unaudited   Unaudited      Audited
                                                      #           #            #

Net cash generated from/(used in)       5        47,957   (636,293)  (1,444,412)
operating activities

Investing activities
Interest received                               182,313     215,209      399,006
Purchases of property, plant and                (7,963)     (4,438)     (40,221)
equipment
Exploration and evaluation                    (372,004)   (137,632)  (1,349,964)
expenditures
--------------------------------------------------------------------------------
Net cash generated from/(used in)             (197,654)      73,139    (991,179)
investing activities
--------------------------------------------------------------------------------

Financing activities
Proceeds from issue of ordinary shares                -           -            -
Costs associated with share issue                     -           -            -
--------------------------------------------------------------------------------
Net cash generated from/(used in)                     -           -            -
financing activities
--------------------------------------------------------------------------------

Increase/(decrease) in cash and cash          (149,697)   (563,154)  (2,435,591)
equivalents
Cash and cash equivalents at beginning        6,817,422   9,253,013    9,253,013
of period
--------------------------------------------------------------------------------
Cash and cash equivalents at end of           6,667,725   8,689,859    6,817,422
period
--------------------------------------------------------------------------------


NOTES TO THE FINANCIAL INFORMATION for the six months ended 30 June 2007

1 Accounting policies

Basis of preparation

The next annual financial statements of WHAM Energy plc ("Wham" or "the
Company") will be prepared in accordance with International Financial Reporting
Standards ("IFRS"), as adopted for use in the EU applied in accordance with the
provisions of the Companies Act 1985.

Accordingly, the interim financial information in this report has been prepared
using accounting policies consistent with IFRS. IFRS is subject to amendment and
interpretation by the International Accounting Standards Board (IASB) and the
International Financial Reporting Interpretations Committee (IFRIC) and there is
an ongoing process of review and endorsement by the European Commission. The
financial information has been prepared on the basis of IFRS that the Directors
expect to be applicable as at 31 December 2007. The Company is not required to
comply with IAS 34 Interim Financial Reporting.

The financial information has been prepared under the historical cost 
convention. The principal accounting policies set out below have been
consistently applied to all periods presented.

Non-statutory accounts

The financial information for the year ended 31 December 2006 set out in this
interim report does not comprise Wham's statutory accounts and does not
constitute full statutory accounts as defined in section 240 of the Companies
Act.

The statutory accounts for the year ended 31 December 2006, which were prepared
under UK Generally Accepted Accounting Practice (UK GAAP), have been delivered
to the Registrar of Companies. The auditors reported on those accounts and their
report was unqualified and did not contain a statement under either section 237
(2) or Section 237 (3) of the Companies Act 1985.

The financial information for the 6 months ended 30 June 2007 and 2006 is
unaudited.

Directors' responsibilities

The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the Directors of the Company.
The Directors are responsible for preparing the interim report in accordance
with the Listing Rules of the Financial Services Authority which require that
the accounting policies and presentation applied to the interim figures are
consistent with those applied in preparing the preceding annual accounts except
where any changes, and the reasons for them, are disclosed.

Foreign currency

Transactions in foreign currency are recorded at the rates of exchange
prevailing on the dates of the transactions. At each balance sheet date,
monetary assets and liabilities that are denominated in foreign currencies are
retranslated at the rates prevailing on the balance sheet date. Exchange gains
and losses on short-term foreign currency borrowings and deposits are included
with net interest payable. Exchange differences on all other transactions,
except relevant foreign currency loans, are taken to operating profit.

Taxation

The tax expense represents the sum of the tax currently payable and any deferred
tax.

The tax currently payable is based on the taxable profit for the year. Taxable
profit differs from net profit as reported in the income statement because it
excludes items of income or expense that are taxable or deductible in other
years and it further excludes items that are never taxable or deductible. The
Company's liability for current tax is calculated using tax rates that have been
enacted or substantially enacted by the balance sheet date.

Deferred tax is the tax expected to be payable or recoverable on differences
between the carrying amounts of assets and liabilities in the financial
statements and the corresponding tax bases used in the computation of taxable
profit, and is accounted for using the balance sheet liability method. Deferred
tax liabilities are generally recognised for all taxable temporary differences
and deferred tax assets are recognised to the extent that it is probable that
taxable profits will be available against which deductible temporary differences
can be utilised. Such assets and liabilities are not recognised if the temporary
difference arises from goodwill or from the initial recognition (other than in a
business combination) of other assets and liabilities in a transaction that
affects neither the taxable profit nor the accounting profit.

Deferred tax liabilities are recognised for taxable temporary differences
arising on investments in subsidiaries, except where the Company is able to
control the reversal of the temporary difference and it is probable that the
temporary difference will not reverse in the foreseeable future.

The carrying amount of deferred tax assets is reviewed at each balance sheet
date and reduced to the extent that it is no longer probable that sufficient
taxable profits will be available to allow all or part of the asset to be
recovered.

Deferred tax is calculated at the tax rates that are expected to apply in the
period when the liability is settled or the asset realised. Deferred tax is
charged or credited to profit or loss, except when it relates to items charged
or credited directly to equity, in which case the deferred tax is also dealt
with in equity.

Deferred tax assets and liabilities are offset when there is a legally
enforceable right to set off current tax assets against current tax liabilities
and when they relate to income taxes levied by the same taxation authority and
the Company intends to settle its current assets and liabilities on a net basis.

Share based payments

The cost of share-based employee compensation arrangements, whereby employees
receive remuneration in the form of shares or share options, is recognised as an
employee benefit expense in the income statement.

The total expense to be apportioned over the vesting period of the benefit is
determined by reference to the fair value (excluding the effect of non
market-based vesting conditions) at the date of grant. The assumptions
underlying the number of awards expected to vest are subsequently adjusted for
the effects of non market-based vesting to reflect the conditions prevailing at
the balance sheet date. Fair value is measured by the use of a binomial model.
The expected life used in the model has been adjusted, based on management's
best estimate, for the effects of the non-transferability, exercise restrictions
and behavioural considerations.

Intangible Assets - exploration and evaluation assets

The Company uses the full cost method of accounting for exploration and
evaluation expenditure, whereby all expenditures incurred in connection with the
acquisition, exploration and evaluation of oil and gas assets, including
directly attributable overheads, are capitalised in geographical cost pools - to
date for Wham, just the single UKCS cost pool - except to the extent that they
fall outside the scope of

IFRS 6 Exploration for and Evaluation of Mineral Resources ("IFRS 6"), when they
are expensed as incurred. Upon successful conclusion of the exploration and
appraisal programme and determination that commercial reserves exist, the
related costs would be transferred to tangible non-current assets as property
plant and equipment. Exploration and evaluation assets at each balance sheet
date are assessed for possible impairment as described below. Proceeds from the
disposal of oil and gas assets are credited against the carrying value of the
cost pool. Any overall surplus of proceeds over cost pool carrying value would
be credited to the income statement.

Exploration and evaluation assets are tested for impairment when facts and
circumstances suggest that the carrying amount of an exploration and evaluation
asset may exceed its recoverable amount. The measurement, presentation and
dislosure of such impairment are in accordance with IAS 36 Impairment of Assets,
according to which the recoverable amount relates to the higher of the asset's
fair value less costs to sell and to its value in use.

Plant and equipment

Plant and equipment are stated at cost less accumulated depreciation and any
recognised impairment loss.

Depreciation is charged so as to write off the cost of assets, over their
estimated useful lives, using the straight-line method, on the following bases:

Computer equipment - 33.3%

Financial instruments

Financial assets and financial liabilities are recognised on the balance sheet
when the Company becomes a party to the contractual provisions of the
instrument.

Wham did not hold any investments during the periods for which financial
information is provided, nor has it raised any loans or issued any financial or
equity instruments, other than fully paid ordinary shares, during the periods
reported.

Trade and other receivables are measured at initial recognition at fair value,
and are subsequently measured at amortised cost using the effective interest
method. A provision is established when there is objective evidence that the
Company will not be able to collect all amounts due. The amount of any provision
is recognised in the income statement.

Cash and cash equivalents comprise cash held by the Company and short-term bank
deposits with an original maturity of three months or less.

Trade and other payables are initially measured at fair value, and are
subsequently measured at amortised cost, using the effective interest rate
method.

2 Critical accounting judgements and key sources of estimation uncertainty

The preparation of financial statements in conformity with generally accepted
accounting practice requires management to make estimates and judgements that
affect the reported amounts of assets and liabilities as well as the disclosure 
of contingent assets and liabilities at the balance sheet date and the reported 
amounts of revenues and expenses during the reporting period.

Estimates and judgements are continually evaluated and are based on historical
experience and other factors, including expectations of future events that are
believed to be reasonable under the circumstances.

Impairment of exploration and evaluation assets

Determining whether the investment in exploration and evaluation assets is
impaired, if there are indications that this may be the case, requires
estimation of the value in use of the full cost pool to which expenditure has
been allocated (in Wham's case, the single UKCS cost pool). The value in use
calculation requires the Company to estimate the future cash flows expected to
arise from the cash-generating unit and a suitable discount rate in order to
calculate the present value. No provision for impairment has been made in the
periods now reported. The carrying value of exploration and evaluation assets at
30 June 2007 was #2,189,928.

Share based payments

In determining the fair value of equity settled share based payments and the
related charge to the income statement, the Company makes assumptions about
future events and market conditions. In particular, judgement must be made as to
the likely number of shares that will vest, and the fair value of each award
granted. The fair value is determined using a valuation model which is dependent
on further estimates, including the Company's future dividend policy, employee
turnover, the timing with which options will be exercised and the future
volatility in the price of the Company's shares. Such assumptions are based on
publicly available information and reflect market expectations and advice taken
from qualified personnel. Different assumptions about these factors to those
made by the Company could materially affect the reported value of share based
payments.

3 Taxation                    Six months       Six months            Year
                                   ended            ended           ended
                               30-jun-07        30-jun-06       31-dec-06          
                                       #                #               #

Current tax                            -                -               -
Deferred tax                           -                -               -
--------------------------------------------------------------------------
Total tax expense for the period       -                -               -
--------------------------------------------------------------------------  

The Company has not made a taxable profit in the periods reported.

No benefit has been recognised in these interim accounts for a potential net 
deferred tax asset.

4 (Loss)/earnings per share      Six months   Six months         Year
                                      ended        ended        ended
                                  30-jun-07    30-jun-06    31-dec-06

  (Loss)/earnings
  Earnings for the purposes of     #260,120     #156,828     #470,990
  basic and diluted earnings per
  share being net loss
  attributable to equity
  shareholders
---------------------------------------------------------------------
  Number of shares
  Weighted average number of     31,714,119   31,695,611   31,695,611
  ordinary shares for the
  purposes of basic loss per
  share
---------------------------------------------------------------------

As the Company reported a loss for the year then, in accordance with IAS 33
Earnings per Share, the warrants and options in issue are not considered
dilutive.

5 Cash generated from/(used in) operations

                                Six months    Six months           Year
                                     ended         ended          ended
                                 30-jun-07     30-jun-06      31-dec-06            
                                         #             #              #

Operating profit/(loss)          (438,380)     (350,724)      (850,495)
Non-cash share-based payments       73,850             -         82,300
Depreciation charge                 11,188         4,336         11,263
(Increase)/decrease in debtors     272,911      (18,263)      (346,275)
Increase/(decrease) in             128,388     (280,780)      (341,205)
creditors
----------------------------------------------------------------------
Cash generated from/(used in)       47,957     (645,431)    (1,444,412)
operations
Tax (paid)/recovered                     -         9,138              -
-----------------------------------------------------------------------
Net cash generated from/(used       47,957     (636,293)    (1,444,412)
in) operations
-----------------------------------------------------------------------

6 Share Capital

On 25 April 2007, 50,000 ordinary shares of 0.1p were issued fully paid to 
certain employees as a discretionary bonus. The closing share price for the 
preceding day was 25.5p, which has been used for the purposes of accounting for 
this share-based payment. There were no changes to share capital during the two 
comparative periods.

7 Transition to IFRS

WHAM Energy plc reported under UK GAAP in its previously published financial 
statements for the year ended 31 December 2006. The analysis below shows a 
reconciliation of net assets and profit/(loss) as reported under UK GAAP as at 
31 December 2006 to the revised net assets and profit under IFRS as reported in 
these financial statements. In addition, there is a reconciliation of net assets 
under UK GAAP to IFRS at the transition date for this company, being 1 January 
2006. There is also a reconciliation of net assets under UK GAAP to IFRS at the 
comparative interim date, being 30 June 2006.


Reconciliation of equity      Previous         Effect of           IFRS
at 1 January 2006                 GAAP     transition to
                                                    IFRS
                                     #                 #              #

Share capital                   31,696                 -         31,696
Share premium account        9,568,287                 -      9,568,287
Other reserves                  58,450                 -         58,450
Retained earnings/           (115,400)          (62,405)      (177,805)
(losses)
-----------------------------------------------------------------------
Total equity                 9,543,033          (62,405)      9,480,628
-----------------------------------------------------------------------


Reconciliation of equity      Previous         Effect of           IFRS
at 30 June 2006                   GAAP     transition to
                                                    IFRS
                                     #                 #              #

Share capital                   31,696                 -         31,696
Share premium account        9,568,287                 -      9,568,287
Other reserves                  58,450                 -         58,450
Retained earnings/           (257,320)          (77,313)      (334,633)
(losses)
-----------------------------------------------------------------------
Total equity                 9,401,113          (77,313)      9,323,800
-----------------------------------------------------------------------


Reconciliation of equity      Previous         Effect of           IFRS
at 31 December 2006               GAAP     transition to
                                                    IFRS
                                     #                 #              #

Share capital                   31,696                 -         31,696
Share premium account        9,568,287                 -      9,568,287
Other reserves                 140,750                 -        140,750
Retained earnings/           (490,483)         (158,312)      (648,795)
(losses)
-----------------------------------------------------------------------
Total equity                 9,250,250         (158,312)      9,091,938
-----------------------------------------------------------------------


Explanation of adjustments to equity

The only difference between IFRS and UK GAAP for the Company relates to the 
treatment of pre-licence costs, which were capitalised as part of the Company's 
single UKCS full cost pool in accordance with the applicable UK Statement of 
Recommended Practice (SORP), but which fall outside the scope of IFRS 6 and are 
accordingly expensed under IFRS. Pre-licence costs include all expenditures 
incurred in evaluating possible purchases, acquisitions or applications for 
exploration licences or rights prior to the actual purchase, acquisition or
application being made. Such costs typically include time and associated 
overheads of technical specialists employed by the Company or by consultants and 
any data acquired to facilitate the decision-making process.

Cash flow statement

The Company's cash flow statement is presented in accordance with IAS 7 Cash 
Flow Statements ("IAS 7"). The statement presents substantially the same 
information as that required under UK GAAP, with the following principal 
exceptions:

1. Under UK GAAP, cashflows are presented under nine standard headings, 
   whereas IFRS requires the classification of cash flows resulting from 
   operating, investing and financing activities.

2. The cash flows reported under IAS 7 relate to movements in cash and cash 
   equivalents, which include cash and short term liquid investments. Under 
   UK GAAP, cash comprises cash in hand and deposits repayable on demand.

Reconciliation of profit/          Previous     Effect of          IFRS
(loss) for the year ended              GAAP    transition
31 December 2006                                  to IFRS
                                          #             #             #

Gross profit/(loss)                       -             -             -
Exploration expenses                      -      (95,907)      (95,907)
Administrative expenses           (754,588)             -     (754,588)
-----------------------------------------------------------------------
Operating profit/(loss)           (754,588)      (95,907)     (850,495)
Finance income                      379,505             -       379,505
-----------------------------------------------------------------------
Profit/(loss) before              (375,083)      (95,907)     (470,990)
taxation
Taxation                                  -             -             -
-----------------------------------------------------------------------
Net profit/(loss)                 (375,083)      (95,907)     (470,990)
-----------------------------------------------------------------------


Reconciliation of profit/           Previous     Effect of          IFRS
(loss) for the six months               GAAP    transition
ended 30 June 2006                                 to IFRS
                                           #             #             #

Gross profit/(loss)                        -             -             -
Exploration expenses                       -      (14,908)      (14,908)
Administrative expenses            (335,816)             -     (335,816)
------------------------------------------------------------------------
Operating profit/(loss)            (335,816)      (14,908)     (350,724)
Finance income                       193,896             -       193,896
------------------------------------------------------------------------
Profit/(loss) before               (141,920)      (14,908)     (156,828)
taxation
Taxation                                   -             -             -
------------------------------------------------------------------------
Net profit/(loss)                  (141,920)      (14,908)     (156,828)
------------------------------------------------------------------------

Explanation of adjustments to profit/(loss)

As indicated above, pre-licence costs were capitalised as part of the Company's 
single UKCS full cost pool in accordance with the applicable UK Statement of 
Recommended Practice ("SORP"), but fall outside the scope of IFRS 6 and are 
accordingly charged against profit as exploration expense under IFRS.

8  Related parties transactions

There have been no changes in the related parties transactions described in the 
last annual report, nor any related parties transactions that have taken place 
in the first six months of the current financial year, that could have a material 
effect on the financial position or performance of the Company in the six months 
ended 30 June 2007.







                      This information is provided by RNS
            The company news service from the London Stock Exchange

END
IR LRMLTMMBBBPR

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