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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Challenger Energy Group Plc | AQSE:CEG.GB | Aquis Stock Exchange | Ordinary Share | IM00BPLZ1D89 |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 6.00 | 5.50 | 6.50 | 6.00 | 5.50 | 6.00 | 250,000 | 15:29:28 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From Nov 2022 to Nov 2024
TIDMCEG
RNS Number : 2237O
Challenger Energy Group PLC
29 September 2023
29 September 2023
Challenger Energy Group PLC
("Challenger Energy" or the "Company")
Interim Results for the six months ended 30 June 2023
Challenger Energy (AIM: CEG), the Caribbean and Atlantic -margin focused oil and gas company, with oil production, appraisal, development and exploration assets across the region, announces its Interim Results for six months to 30 June 2023.
The Interim Results and Chief Executive Officer's commentary are set out in full below and are also available on
the Company's website https://www.cegplc.com/ .
For further information, please contact:
Challenger Energy Group PLC Tel: +44 (0) 1624 647 Eytan Uliel, Chief Executive Officer 882 WH Ireland - Nomad and Joint Broker Tel: +44 (0) 20 7220 Antonio Bossi / Darshan Patel 1666 Zeus Capital - Joint Broker Tel: +44 (0) 20 3829 Simon Johnson 5000 Gneiss Energy Limited - Financial Tel: +44 (0) 20 3983 Adviser 9263 Jon Fitzpatrick / Paul Weidman / Doug Rycroft CAMARCO Tel: +44 (0) 20 3757 Billy Clegg / Hugo Liddy / Sam Morris 4980
Notes to Editors
Challenger Energy is a Caribbean and Americas focused oil and gas company, with a range of oil production, development, appraisal, and exploration assets in the region. The Company's primary assets are located in Uruguay, where the Company holds high impact offshore exploration licences, and in Trinidad and Tobago, where the Company has a number of producing fields and earlier-stage exploration / appraisal projects.
Challenger Energy is quoted on the AIM market of the London Stock Exchange.
https://www.cegplc.com
SCHIEF EXECUTIVE OFFICER'S REPORT
Dear fellow Shareholders,
The dominant themes of the first half of 2023 were the technical work program and farm-out process in relation to our AREA OFF-3 licence in Uruguay, ongoing efforts to reshape and improve our oil production business in Trinidad and Tobago, and the implications of these two activities on the financial position of the Company, as reflected in the unaudited interim financial statements for the half year ended 30 June 2023.
Exploration Acreage in Uruguay - primary focus and near-term value driver
Challenger Energy secured the AREA OFF-1 licence, offshore Uruguay, in May 2020. This was in the midst of the Covid-19 pandemic, when Uruguay was not yet on the global industry's radar. At that time, this made us the sole licence holder in Uruguay.
Since the start of 2022, however, Uruguay has rapidly emerged as a global exploration "hotspot". This followed directly as a result of sizeable discoveries made by two global supermajors (TotalEnergies and Shell) from respective "wildcat" exploration wells drilled offshore Namibia. Those successful Namibian wells greatly de-risked the presence of a high-quality, oil-prone source rock and charge, not just in Namibia but on the other side of the South Atlantic conjugate margin, and in particular in Uruguay's offshore area, which is the geological "mirror" of where these Namibian discoveries were made.
As a result, and immediately following these Namibian discoveries, the industry view on Uruguay changed dramatically. Thus, in the rst Uruguayan bidding round after the Namibian discoveries (May 2022), three licences were bid on and awarded to majors Shell and APA Corporation (formerly, Apache). Then, in November 2022, a further two licences were bid on and awarded, one to a consortium of Shell and APA, and the other to YPF, the Argentinian national oil company. The new entrants offered signi cant work program to secure their licences (as compared to the very modest work program we had bid to secure AREA OFF-1), and a number of other energy majors also registered to bid in the two Uruguayan open rounds held in 2022, but were unsuccessful.
These industry developments - globally significant discoveries offshore Namibia, interest from several majors in Uruguayan offshore acreage, and a resulting surge in Uruguayan licensing activity - validated our rst-mover, low-cost entry into Uruguay, and con rmed that we had secured highly prospective frontier acreage, on advantageous terms, and with potential for considerable near-term value uplift. We thus rapidly moved to prioritise our Uruguay business through the first half of 2023, and achieved the following:
-- First, we undertook an accelerated work program on the Area OFF-1 block (over and above the minimum work obligations), with a view to generating proprietary intellectual property and upgrading technical knowledge of the area, specifically in light of the new conjugate margin discoveries. The program of work included reprocessing of legacy 2D seismic data, advanced attribute variation with offset (AVO) analysis, seabed geochemical and satellite seep studies, full reinterpretation and remapping of all data, and an initial volumetric assessment. This work was largely completed during the period under review (January - June 2023), and was a resounding success, in that we have identified three technically robust primary prospects in the AREA OFF-1 licence area, that in aggregate represent a prospect inventory of approximately 2 billion barrels (Pmean) and up to 5 billion barrels (P10) - thus establishing that AREA OFF-1 is a material, world-class asset.
-- Second, in view of the fact that taking AREA OFF-1 forward to 3D seismic acquisition and ultimately exploration well drilling, especially on an expedited basis, will be a technically demanding and capital-intensive undertaking, we resolved to seek an industry and funding partner. Thus, through the first half of 2023, we began preparing for a farm-out process, and commenced a formal, adviser-led process in June 2023. Since then, this process has proceeded well, and we have seen a high level of interest form a wide variety of industry participants. We remain confident that we will succeed in our effort to secure an industry partner by the end of 2023.
-- Finally, we sought ways to expand our presence in Uruguay, given our developing knowledge base and energy understanding, the excellent working relationship established with ANCAP, and the attractive conditions in that country for hydrocarbon industry activity. In furtherance of this objective, in April 2023 we made an application for another shallow water offshore exploration block in Uruguay, AREA OFF-3, and in June 2023, we were awarded the block. AREA OFF-3 was the last available offshore acreage in Uruguay, and were able to secure it on attractive terms. The block has existing 2D and 3D seismic coverage, and based on initial assessment an estimated resource potential of up to 500 million barrels of oil equivalent ("mmboe") and up to 9 trillion cubic feet gas ("TCF"), from multiple exploration plays. Formal signing of the licence is expected by the end of 2023, and once formalised, our Company will be the second largest acreage holder in Uruguay, with two high-quality assets in what has fast become a global exploration focus area.
In summary, therefore, the first half of 2023 represented a period of exciting progress for our operations in Uruguay. We undertook excellent technical work on AREA OFF-1 that firmly established the block's prospectivity, we moved into a formal farm-out process for that block which we hope to conclude in the coming months, and we secured a second high quality block, AREA OFF-3, thus cementing our long-term position in Uruguay.
Focused Production onshore Trinidad and Portfolio Rationalisation
In August 2020, the Company completed the acquisition of Columbus Energy Resources Plc ("Columbus"), which significantly expanded the Company's business through the addition of a portfolio of assets in Trinidad and Tobago and Suriname, including oil fields in active production.
During 2021 and 2022, work focussed on the task of integrating and operating those assets, "cleaning up" various legacy issues, and seeking to achieve organic growth in production from the existing onshore elds. However, as I observed in our last Annual Report, while we have been reasonably successful on the first two items, we struggled to achieve our objective of organic production growth. This was because our oil elds are mature, and having produced oil for many decades they are characterised by depressurised reservoirs, where the rate at which the remaining resource is produced cannot easily be increased. Thus, despite our efforts - which have ranged from application of efficient mature oil eld management practices and eld improvements to enhanced oil recovery (EOR) initiatives and targeted production enhancement activities - production growth has proved elusive.
On the other hand, what we did observe is that notwithstanding eld maturity, our production performance is reasonably consistent and predictable. And consequently, in late 2022 we reassessed our Trinidad operations and decided to focus on areas where we have a competitive advantage. This meant dividing our Trinidad portfolio in two parts, being "core" - consisting of the Goudron and Inniss-Trinity fields in south-east Trinidad, which represented about 85% of our production along with vast majority of resource allocation (manpower, rigs and so on), and "non-core" - consisting of our assets in central and south-west Trinidad, and our appraisal block in Suriname.
In relation to those assets considered "core", we continued our focus on stabilising production, while at the same time looking for ways to increase production from "new oil" opportunities in and around our core area of operations in south-east Trinidad, with the following results during 1H 2023:
-- core production from the Goudron and Inniss-Trinity fields averaged approximately 300 barrels of oil per day through the period, almost exactly the same as in the same period in 2022, and
-- With a view to growing production in our primary geographical area of focus, we bid for the Guayaguayare block, one of the largest onshore exploration and production blocks in Trinidad (c. 306 km(2) ). Our bid for this block was premised on (i) the fact that it is strategically and operationally synergistic with the Company's existing presence in south-east Trinidad, (ii) we see good prospectivity in the block, it being amongst the largest remaining underexplored / undrained contiguous onshore areas in Trinidad, and (iii) the block contains approximately 65 historic wells, many of which the Company believes can be reactivated and serviced from existing operations, thus offering the opportunity for near-term production uplift at minimal incremental cost. In May 2023 we were notified that the Government of Trinidad has authorised the Trinidadian Ministry of Energy and Energy Industries to enter into negotiations for the potential award of the licence to the Company - these discussions are ongoing, and we will advise further on completion of negotiations with MEEI.
In relation to those assets considered "non-core", we began a process to either monetise or exit from the assets, and made considerable progress during the first half of 2023. Thus, in Q1 2023 we completed the sale of South Erin asset, and through the period we continued to advance discussions with the Trinidadian Ministry of Energy and Energy Industries in relation to the proposed sale of Cory Moruga asset, which we hope to be able to complete in the coming months. We also continued to work on similar exit options for the remaining non-core assets we hold and most recently, in August 2023, we exited the Weg Naar Zee ("WNZ") block onshore Suriname. The rationalisation of our portfolio is allowing us to focus fully on those assets of much higher potential impact, that offer greater scale and opportunity for near-term value creation from deployment of the same capital.
It is worth noting that our HSE&S performance in this period remained exemplary with zero LTI or reportable incidents. Following extensive preparatory work and audit, the Company achieved a two-year STOW-TT ( "Safe to Work in Trinidad & Tobago") certification in 3Q 2021, and through the first half of 2023 we prepared for the recertification process and audit, which has now commenced. STOW certification provides a standardised, independent system for certifying operators and contractors with respect to Health, Safety and Environmental delivery, which Heritage Petroleum Company Limited (the state-owned entity) requires of all contractors/operators, and is a central component of our "licence to operate" in Trinidad.
Therefore, in relation to our Trinidadian operations, the first half of 2023 represented a period of measured progress: core business production was constant and consistent, we began the process of monetising or exiting form non-core assets, we were able to advance new business opportunities in support of growing core business production, and we maintained our excellent performance track record when it comes to HSE&S. Overall, we continue to believe that an opportunity exists to create a pro table and growing production business in Trinidad, but to do this we need to be able to access "new oil" - that is, either nding places within our existing elds that have not been drained effectively and drilling new wells, or by getting new licences, and we saw the first successes in this journey during the first half of 2023.
Financial Review
The unaudited interim financial statements for the half year ended 30 June 2023 present details on the financial performance of the Company for the period, to which I add the following commentary, so that shareholders may better be able to contextualise the figures presented:
-- The Company sold approximately 58,000 barrels ("bbls") of oil during 1H 2023 (1H 2022: approximately 60,900 bbls), equating to approximately 320 barrels of oil per day ("bopd") (1H 2022: 336 bopd). However, the Company divested its South Erin field in February 2023, resulting in lower oil sales during 1H 2023 as compared to 1H 2022. Oil sales from the Company's fields excluding the South Erin field were approximately 56,000 bbls during 1H 2023 - in comparison, 1H 2022 oil sales excluding the South Erin Field were approximately 53,800 bbls. In other words, on a like-for-like basis, there was a 4% increase in barrels of oil sold, reflecting operational efficiencies achieved as a consequence of the Company's strategy to focus on core assets.
-- The Company's revenue for the period was $1.9 million (1H 2022: $2.7 million). All revenue is attributable to oil sales in Trinidad, net of Government-take and other deductions and therefore reflect the Company's cash revenue entitlement from oil sales. This represents a decrease of 30% as compared to the comparable period in 2022. Again, on a like for like basis (i.e., excluding the South Erin field), 1H 2023 revenue was approximately $1.8 million compared to $2.3 million in 1H 2022 representing a decrease of approximately 22% compared to 1H 2022. The reduction in revenue is largely attributable to approximately 30% lower average realised oil prices in 1H 2023 (of $63.52 per barrel) as compared to $90.50 per barrel in 1H 2022. Oil prices have since risen in 2H 2023, and we thus expect higher realised oil prices and revenues during 2H 2023.
-- Through the period, the Company's Trinidad business operated on a roughly "break-even" basis, in that total cash revenues met total cash costs, which ranged between $275,000 - $325,000 per month, the variance depending on field activity and the level of workovers, repairs and maintenance required in response to field performance each month. In an accounting sense however, certain non-cash charges (including depreciation, abandonment provisions and accrued interest on outstanding taxes (which the Company does not expect to crystalise in cash, in view of submissions made during Trinidadian Tax Amnesty period to offset against refunds due to the Company) are reflected in the income statement, which give rise to the reported operating loss.
-- Excluding Trinidad, the Company's net cash spend during 1H 2023 was approximately $2.3 million. Of this, approximately $1.2 million was in relation to the Company's AREA OFF-1 licence in Uruguay ($0.5 million retained as restricted cash collateral for the work program performance bond, and the balance of $0.7 million spent on accelerated and expanded technical work program as described earlier in this report). The remainder $1.1 million largely reflects the Company's corporate overheads and miscellaneous expenses, reflecting a corporate overhead run rate ranging between $175,000 and $200,000 per month.
Cash Position & Funding
In March 2022, in conjunction with completion of a comprehensive corporate restructuring, the Company raised approximately US$10 million, which was at that time "sized" for approximately 12 months of future operations. However, as a result of prudent management of capital, a significant reduction in corporate overheads, and the sale of identified non-core assets, the Company did not require any additional external funding during the first half of 2023, and ended the period with available cash of $1.6 million.
Subsequently, in August 2023, the Company established a GBP3.3 million unsecured convertible loan note funding facility (the "Facility") to provide financing flexibility for various initiatives being pursued by the Company as well as to bridge working capital needs through to delivery of a number of cash generative options in the near-term, including those that may result from a successful Area OFF-1 farm-out process, and those anticipated from completion of the sale of the Cory Moruga asset in Trinidad.
In addition, the Company has approximately $0.8 million in restricted cash, being cash held as collateral in support of performance bonds for the various assets - notably, this includes $0.5 million in support of minimum work obligations for the Company's AREA OFF-1 licence offshore Uruguay which have largely been satisfied.
Strategic Direction
In Uruguay, our early entry has transformed from being little more than "option value" to being a near-term opportunity for substantial value-creation. Looking ahead, the focus for the balance of 2023 in Uruguay is unambiguously on securing a farm-out partner for the AREA OFF-1 block, such that we can expedite future technical work program on the block and in particular a 3D seismic acquisition - we see this as the path to signi cant near-term value creation for shareholders.
In Trinidad the focus for the remainder of 2023 will be to continue the work of the last two years: maintain current production, drive improved nancial performance, dispose of remaining non-core assets, and seek to strategically access "new oil" opportunities so as to expand the production base and create a bigger, more sustainable business.
As a significant shareholder myself - I now hold over 6% of the Company - I am fully aligned with all shareholders, and I remain optimistic about the prospects of Challenger Energy. We will continue to work diligently towards delivering on our objectives, and I am con dent that eventually the equity market will pay attention and reward the value we are creating.
Eytan Uliel
Chief Executive Officer
29 September 2023
Financial Statements
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHSED 30 JUNE 2023
Hot Features
Premium
Six months ended 30 June 2023 (Unaudited) Six months Year ended
ended 30 June 2022 (Unaudited) 31 December 2022
(Audited)
Note $000's $ 000's $ 000's
Net petroleum
revenue 1,884 2,680 4,266
Cost of sales* (2,343) (2,522) (4,737)
------------------------------------------- ---------------------------------
Gross
profit/(loss) (459) 158 (471)
Administrative
expenses** (2,141) (4,720) (8,027)
Impairment
charges - - (2,201)
Operating foreign
exchange gains/
(losses) (1,528) (1,378) 6,458
------------------------------------------- ---------------------------------
Operating loss (4,128) (5,940) (4,241)
Other income 2 26 8,567 8,743
Finance income/
(costs), net 2 (88) 1,652 1,675
Profit/(loss)
before taxation (4,190) 4,279 6,177
Income tax
expense - - (28)
------------------------------------------- --------------------------------- -------------------
Profit/(loss)
from continuing
operations (4,190) 4,279 6,149
------------------------------------------- --------------------------------- -------------------
Discontinued
operations
Gain/loss after
tax for the year
from
discontinued
operations 7 1,934 - (1,767)
------------------------------------------- --------------------------------- -------------------
Profit/(loss) for
the year
attributable to
equity holders
of the parent
company (2,256) 4,279 4,382
------------------------------------------- --------------------------------- -------------------
Other
comprehensive
income/(expense)
Items to be
reclassified
subsequently to
profit or loss
Exchange
differences on
translation of
foreign
operations 958 1,105 (5,742)
------------------------------------------- ---------------------------------
Other
comprehensive
income/(expense)
for the period
net of taxation 958 1,105 (5,742)
------------------------------------------- --------------------------------- -------------------
Total
comprehensive
income/(expense)
for the period
attributable to
equity holders
of the
parent company (1,298) 5,384 (1,360)
------------------------------------------- --------------------------------- -------------------
Earnings/(loss)
per share (cents)
Basic loss
(earnings) per
share
-From continuing
operations (0.04) 0.07 0.08
-From
discontinued
operations 0.02 - (0.03)
------------------------------------------- --------------------------------- -------------------
Total (0.02) 0.07 0.05
Diluted earnings
(loss) per share
-From continuing
operations - 0.06 0.07
-From
discontinued
operations - - (0.02)
------------------------------------------- --------------------------------- -------------------
Total - 0.06 0.05
------------------------------------------- --------------------------------- -------------------
The accompanying accounting policies and notes form an integral part of these financial statements.
*Cost of sales includes amortisation and depreciation of oil and gas assets of $632,000 (2022 half year: $859,000; 2022 full year: $1,720,000)
** Administrative expenses include various non-cash items including depreciation charges of $222,000 (2022 half year: $234,000; 2022 full year: $542,000) and interest on taxes owed in Trinidad of $176,000 (2022 half year: $528,000; 2022 full year: $908,000) which the Company does not expect to crystalise in cash in view of submissions made during Trinidadian Tax Amnesty for the offset of taxes owed against refunds due to the Group (see Note 8)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
FOR THE SIX MONTHSED 30 JUNE 2023
At At At
30 June 30 June 31 December
2023 2022 2022
(Unaudited) (Unaudited) (Audited)
Note $000's $ 000's $ 000's
Assets
Non-current assets
Intangible exploration and evaluation
assets 4 95,231 94,389 94,660
Goodwill 4 4,610 4,610 4,610
Tangible assets 5 18,777 21,874 19,556
Right of use assets 6 - 6 -
Escrow and abandonment funds 1,575 1,601 1,532
Deferred tax asset 7,418 6,998 7,375
-------------- -------------- --------------
Total non-current assets 127,611 129,478 127,733
Current assets
Trade and other receivables 2,755 5,428 2,721
Inventories 221 270 165
Restricted cash 827 434 824
Cash and cash equivalents 1,645 5,308 2,453
-------------- -------------- --------------
Total current assets 5,448 11,440 6,163
-------------- -------------- --------------
Assets held for sale 7 1,114 - 2,591
-------------- -------------- --------------
Total assets 134,173 140,918 136,487
-------------- -------------- --------------
Liabilities
Current liabilities
Trade and other payables 8 (8,300) (11,985) (8,099)
Lease liabilities - (27) (22)
Borrowings - (77) -
-------------- -------------- --------------
Total current liabilities (8,300) (12,089) (8,121)
Non-current liabilities
Borrowings - (147) -
Provisions (5,657) (6,164) (5,545)
Deferred tax liability (7,459) (7,009) (7,415)
-------------- -------------- --------------
Total non-current liabilities (13,116) (13,320) (12,960)
-------------- -------------- --------------
Liabilities directly associated
with the assets held for sale 7 (4,364) - (6,449)
-------------- -------------- --------------
Total liabilities (25,780) (25,409) (27,530)
-------------- -------------- --------------
Net assets 108,393 115,509 108,957
============== ============== ==============
Shareholders' equity
Called-up share capital 9 2,540 2,540 2,540
Share premium reserve 9 180,240 180,272 180,240
Share based payments reserve 5,635 5,411 5,635
Retained deficit (98,521) (97,102) (96,999)
Foreign exchange reserve (4,785) 1,104 (5,743)
Convertible debt option reserve - - -
Other reserves 23,284 23,284 23,284
-------------- -------------- --------------
Total equity attributable to
equity holders of the parent
company 108,393 115,509 108,957
============== ============== ==============
The accompanying accounting policies and notes form an integral part
of these financial statements.
These Interim Financial Statements were approved and authorised for
issue by the Board of Directors on 29 September 2023 and signed on its
behalf by:
Eytan Uliel Simon Potter
Director Director
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHSED 30 JUNE 2023
Six months Six months Year ended
Ended 30 June ended 30 June 31 December
2023 2022 (Unaudited) 2022
(Unaudited) (Audited)
$000's $ 000's $ 000's
Cash flows from operating activities
Profit/(loss) before taxation (4,190) 4,279 6,177
(Increase)/decrease in trade and
other receivables (77) (539) 658
(Decrease) in trade and other
payables 201 (1,188) (2,176)
(Increase) in inventories (56) (11) (13)
Impairment of tangible and intangible
assets - - 2,201
Depreciation of property, plant
and equipment 841 1,077 1,784
Depreciation of right of use asset - 9 14
Loss on disposal of property,
plant and equipment - 10 78
Amortisation 13 16 27
Share settled payments - 1,113 1,266
Other income (26) (8,567) (8,743)
Finance income/ (costs), net 88 (1,652) (1,675)
Share based payments - 99 323
Income tax received/(paid) - - -
Foreign exchange (gain)/loss on
operating activities 1,528 1,378 (6,458)
---------------- ------------------- --------------
Net cash outflow from operating
activities (1,678) (3,976) (6,537)
---------------- ------------------- --------------
Cash flows from investing activities
Purchase of property, plant and
equipment (37) (212) (626)
Proceeds from sale of property,
plant and equipment - 5 57
Payments for exploration and evaluation
assets (583) - (282)
(Increase)/Decrease in restricted
cash (2) 125 (354)
Proceeds from sale of subsidiaries, 1,194 - -
net of
cash sold
Other income received 26 - 18
Net cash outflow from investing
activities 598 (82) (1,187)
---------------- ------------------- --------------
Cash flows from financing activities
Issue of ordinary share capital - 8,508 9,114
Share issue costs - - -
Principal elements of lease payments (22) (9) (14)
Finance costs (9) (265) (46)
Repayment of borrowings - (144) (181)
Net cash inflow from financing
activities (31) 8,090 8,873
---------------- ------------------- --------------
Net increase in cash and cash
equivalents (1,111) 4,032 1,149
Effects of exchange rate changes
on cash and cash equivalents 303 (279) (252)
Cash and cash equivalents at beginning
of period 2,453 1,555 1,555
---------------- ------------------- --------------
Cash and cash equivalents included
in disposal group - - 1
---------------- ------------------- --------------
Cash and cash equivalents at
end of period 1,645 5,308 2,453
---------------- ------------------- --------------
The accompanying accounting policies and notes form an integral part of these financial statements.
STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHSED 30 JUNE 2023
Called up Share Share Retained Foreign Convertible Other Total
share premium based deficit exchange debt option reserves Equity
capital reserve payments reserve reserve
reserve
$ 000's $ 000's $ 000's $ 000's $ 000's $ 000's $ 000's $ 000's
Group
At 1 January
2023 2,540 180,240 5,635 (96,999) (5,743) - 23,284 108,957
Loss for the
period - - - (2,256) - - - (2,256)
Currency
translation
differences - - - 734 958 - - 1,692
----------- ----------- ---------- ----------- ---------- ------------ ----------- -----------
Total
comprehensive
expense - - - (1,522) 958 - - (564)
Total - - - - - - -
contributions -
by and
distributions
to owners of
the Company
----------- ----------- ---------- ----------- ---------- ------------ ----------- -----------
Balance at 30
June 2023 2,540 180,240 5,635 (98,521) (4,785) - 23,284 108,393
Called up Share Share Retained Foreign Convertible Other Total
share premium based deficit exchange debt option reserves Equity
capital reserve payments reserve reserve
reserve
$ 000's $ 000's $ 000's $ 000's $ 000's $ 000's $ 000's $ 000's
Group
At 1 January
2022 218 171,734 5,312 (101,381) (1) 114 23,284 99,280
Loss for the
period - - - 4,279 - - - 4,279
Currency
translation
differences - - - - 1,105 - - 1,105
----------- ----------- ---------- ----------- ---------- ------------ ----------- -----------
Total
comprehensive
expense - - - 4,279 1,105 - - 5,384
Issue of
ordinary
shares 2,322 8,538 - - - - - 10,860
Realisation of
conversion
feature - - - - - (114) - (114)
Share based
payments - - 99 - - - - 99
----------- ----------- ---------- ----------- ---------- ------------ ----------- -----------
Total
contributions
by and
distributions
to owners of
the Company 2,322 8,538 99 - - (114) - 10,845
----------- ----------- ---------- ----------- ---------- ------------ ----------- -----------
Balance at 30
June 2022 2,540 180,272 5,411 (97,102) 1,104 - 23,284 115,509
STATEMENT OF CHANGES IN EQUITY (CONTINUED)
FOR THE SIX MONTHSED 30 JUNE 2023
Called up Share Share Retained Foreign Convertible Other Total
share premium based deficit exchange debt option reserves Equity
capital reserve payments reserve reserve
reserve
$ 000's $ 000's $ 000's $ 000's $ 000's $ 000's $ 000's $ 000's
Group
As at 31
December 2020 123 152,717 5,228 (77,684) 147 396 23,284 104,211
----------- ----------- ---------- ----------- ---------- ------------ ----------- -----------
Loss for the
year - - - (23,697) - - - (23,697)
Currency
translation
differences - - - - (148) - - (148)
----------- ----------- ---------- ----------- ---------- ------------ ----------- -----------
Total
comprehensive
expense - - - (23,697) (148) - - (23,845)
Share capital
issued 95 19,017 - - - - - 19,112
Recognition of
conversion
feature - - - - - 505 - 505
Realisation of
conversion
feature - - - - - (787) - (787)
Share based
payments - - 84 - - - - 84
Total
contributions
by and
distributions
to owners of
the Company 95 19,017 84 - - (282) - 18,914
As at 31
December 2021 218 171,734 5,312 (101,381) (1) 114 23,284 99,280
Profit for the
year - - - 4,382 - - - 4,382
Currency
translation
differences - - - - (5,742) - - (5,742)
Total
comprehensive
Income - - - 4,382 (5,742) - - (1,360)
----------- ----------- ---------- ----------- ---------- ------------ ----------- -----------
Share capital
issued 2,322 8,506 - - - - - 10,828
Realisation of
conversion
feature - - - - - (114) - (114)
Shared based
payments - - 323 - - - - 323
----------- ----------- ---------- ----------- ---------- ------------ ----------- -----------
Total
contribution
by and
distributions
to owners of
the Company 2,322 8,506 323 - - (114) - 11,037
----------- ----------- ---------- ----------- ---------- ------------ ----------- -----------
At as 31
December 2022 2,540 180,240 5,635 (96,999) (5,743) - 23,284 108,957
----------- ----------- ---------- ----------- ---------- ------------ ----------- -----------
NOTES TO THE FINANCIAL STATEMENTS FOR THE INTERIM PERIODED 30 JUNE 2023
1 Basis of preparation
The financial statements have been prepared on the historical cost
basis, except for the measurement of certain assets and financial instruments
at fair value as described in the accounting policies below.
The financial statements have been prepared on a going concern basis,
refer to the Going Concern section below for more details.
The financial statements are presented in United States dollars ($)
and all values are rounded to the nearest thousand dollars ($'000)
unless otherwise stated.
Basis of consolidation
The financial statements incorporate the results of the Company and
its subsidiaries (the "Group") using the acquisition method. Control
is achieved where the Company is exposed to, or has rights to, variable
returns from its involvement with the entity and has the ability to
affect those returns through its power over the entity.
Inter-company transactions and balances between Group companies are
eliminated in full.
Where necessary, adjustments are made to the financial statements of
subsidiaries to bring the accounting policies used in line with those
used by the Group.
Going Concern
The Group had incurred a comprehensive loss of $1.3 million for the
half year ended 30 June 2023 and the Group's current liabilities exceeded
current assets by approximately $2.9 million as of 30 June 2023. At
30 June 2023 the CEG Group had approximately $1.6 million in unrestricted
cash funding and approximately a further $0.8 million in restricted
cash holdings in support of performance guarantees for the various
licences including the minimum work obligations in Uruguay ($0.5 million)
for which the work has been substantially completed as at the date
of this report.
On 30 August 2023 the Group announced establishment of a GBP3.3 million
convertible loan note funding facility of which GBP0.55 million has
initially been drawn down, with future drawdown of the remainder at
the Group's option, subject to certain drawdown conditions. This facility
provides the Group with cash resources to cover the funding requirements
of the Group and bridge any funding gaps over the course of the next
12 months.
In addition, The Group has several high-probability sources of cash
inflows expected over the next 12 months to enable the Group to continue
as a going concern for the foreseeable future. These include:
1. Contracted proceeds from sale of Cory Moruga licence in Trinidad.
In December 2022, the Group announced the sale of Cory Moruga licence
onshore Trinidad and Tobago for a consideration of up to US$3 million
of which US$1 million is payable upon completion, US$1 million in six
months from completion and a further US$1 million contingent upon Cory
Moruga field achieving 100 barrels of oil per day production. Cory
Moruga licence is presently a dormant licence with previously discovered
and tested oil resource. The sale is fully documented and not subject
to any conditions to completion other than consent from the Trinidadian
Ministry of Energy and Energy Industries ("MEEI"), which remains outstanding.
The Group, in conjunction with the acquirer, have been in discussions
with MEEI and anticipates consent being obtained and completion of
the sale transaction by the end of 2023. A successful completion would
result in the Group receiving US$2 million in cash consideration within
six months from completion.
2. Potential inflows from successful farm-out of the AREA OFF-1 licence
in Uruguay.
The Group has been in discussions with various industry participants
in relation to potential farm-out / partnership options for the AREA
OFF-1 licence in Uruguay. In June 2023, a formal adviser-led process
was commenced with the objective of securing an industry partner to
farm-out the AREA OFF-1 licence by the end of 2023. In the event of
a successful farm-out, the Group expects certain upfront cash consideration,
consistent with typical transactions of this nature in the international
oil and gas industry. The Group is confident that a farm-out transaction
can be successfully achieved in this timeframe, because (i) multiple
high-quality energy majors are presently engaged in the farm-out process,
undertaking due diligence as at the date of this report; (ii) the Group's
technical work to-date has resulted in identification and definition
of three prospects with an estimated recoverable resource of approximately
2 billion barrels (Pmean) and up to 5 billion barrels in an upside
case (P10) establishing that AREA OFF-1 is a high-quality asset of
scale, material to any player in the global industry, and (iii) the
Directors consider successful completion of the farm-out process to
be highly probable in light of the recent industry developments - namely
significant offshore discoveries in Namibia (Uruguay is considered
to be geological mirror of the offshore Namibia basins), and substantial
industry interest in offshore Uruguay acreage in the past 12 months,
evidenced by licencing activity in the recent Uruguayan licencing rounds
that has resulted in all available acreage now having been awarded
to industry majors (Shell, APA Corporation and YPF) along with several
other interested global oil majors not securing any acreage.
3. Sale of other non-core assets
The Group is also in discussions in relation to the potential sale
of other non-core assets in its portfolio. A successful completion
of any transaction of this nature would result in the Group receiving
cash consideration, thus increasing its available cash resources.
NOTES TO THE FINANCIAL STATEMENTS FOR THE INTERIM PERIODED 30 JUNE 2023 (CONTINUED)
1 Basis of preparation (continued)
Going Concern (continued)
In addition to the above, the Director notes that the Group is a publicly listed company on a recognised stock exchange, thus affording the ability to raise capital equity, debt and/or hybrid financing alternatives as and when the need arises. The Group has a robust track record in this regard, having raised in excess of US$100 million in equity and alternative financing in the past five years. Based on the Group's attractive asset portfolio and history of capital raising, the Directors are of the view that if required (i.e., in the event sources of cash inflows discussed above do not materialise as and when expected) the Group will be able to source fresh capital on short notice. As such, the Director has prepared the financial statements on a going concern basis and consider it to be reasonable.
2 Other income and Finance income
Other income and Finance income predominantly comprise discounts secured
from the Group's historical creditors and a secured financier, as part
of negotiated settlements agreed pursuant to the Group's restructuring
and recapitalisation exercise.
3 Turnover and segmental analysis
Management has determined the operating segments based on the reports
reviewed by the Board of Directors that are used to make strategic
decisions. The Board has determined there is a single operating segment:
oil and gas exploration, development and production. However, there
are four geographical segments: Trinidad & Tobago & Suriname including
a single operating segment and a separate disposal group for the period
ended 30 June 2023 (refer to note 7), The Bahamas (operating), Uruguay
(operating) and The Isle of Man, UK, Spain, Saint Lucia, Cyprus, Netherlands
& USA (all non-operating).
The segment including Trinidad & Tobago has been reported as the Group's
direct oil and gas producing and revenue generating operating segment.
The Bahamas segment includes the Bahamian exploration licences on which
drilling activities were conducted in 2020 and 2021. The Uruguay segment
includes the exploration licences and appraisal works which have commenced
in 2022. The non-operating segment including the Isle of Man (the Group's
parent), which provides management service to the Group and entities
in Saint Lucia, Cyprus, Spain, the Netherlands, and the U.S.A. all
of which are non-operating in that they either hold investments, or
are dormant. Their results are consolidated and reported on together
as a single segment. As part of an ongoing group wide rationalisation
plan there is an ongoing process to wind up a number of companies in
the Group in Spain, Cyprus and the USA.
Six months to 30 June Trinidad Trinidad Total
2023 & Suriname & Bahamas Uruguay Non-Operating
Operating St Lucia Operating Operating Entities
Disposal (*)
group
$'000 $'000 $'000 $'000 $'000 $'000
Operating profit/(loss)
by geographical area
Net petroleum revenue
(**) 1,884 - - - - 1,884
------------ ---------- ------------ ------------ ---------------- ----------
Operating profit/(loss) (2,319) - (32) (3) (1,774) (4,128)
Other income 5 - 21 - - 26
Finance (costs) / income,
net (85) - - - (3) (88)
Profit/(loss) before
taxation (2,399) - (11) (3) (1,777) (4,190)
------------ ---------- ------------ ------------ ---------------- ----------
Other information
Loss after tax for the
year from discontinued
operations - 1,934 - - - 1,934
Depreciation, amortisation
and impairment (828) - (1) - (24) (853)
Capital additions 32 - - 583 5 620
------------ ---------- ------------ ------------ ---------------- ----------
Segment assets
Tangible and intangible
assets 18,734 - 93,964 798 5,122 118,618
Deferred tax asset 7,418 - - - - 7,418
Escrow and abandonment
funds 1,575 - - - - 1,575
Trade and other receivables 2,192 - 500 - 63 2,755
Inventories 221 - - - - 221
Restricted cash 301 - - - 526 827
Cash 638 - 2 - 1,005 1,645
------------ ---------- ------------ ------------ ---------------- ----------
Assets held for sale - 1,114 - - - 1,114
------------ ---------- ------------ ------------ ---------------- ----------
Consolidated total assets 31,079 1,114 94,466 798 6,716 134,173
------------ ---------- ------------ ------------ ---------------- ----------
Segment liabilities
Trade and other payables (6,385) - (1,051) - (864) (8,300)
Deferred tax liability (7,459) - - - - (7,459)
Lease liabilities - - - - - -
Provisions (3,224) - - - (2,433) (5,657)
------------ ---------- ------------ ------------ ---------------- ----------
Liabilities directly associated
with the assets held for
sale - (4,364) - - - (4,364)
------------ ---------- ------------ ------------ ---------------- ----------
Consolidated total liabilities (17,068) (4,364) (1,051) - (3,297) (25,780)
------------ ---------- ------------ ------------ ---------------- ----------
NOTES TO THE FINANCIAL STATEMENTS FOR THE INTERIM PERIODED 30 JUNE 2023 (CONTINUED)
3 Turnover and segmental analysis (continued)
Six months to 30 Operating Operating Total
June 2022 Non-Operating
Entities
(*)
Trinidad Bahamas
& Suriname
$'000 $'000 $'000 $'000
Operating profit/(loss)
by geographical area
Net petroleum revenue
(**) 2,680 - - 2,680
------------ ---------- ---------------- ---------
Operating profit/(loss) (1,316) (127) (4,497) (5,940)
Other income 1,937 - 6,630 8,567
Finance (charges) (86) - (189) (275)
Finance income 1 - 1,926 1,927
Profit/(loss) before
taxation 536 (127) 3,870 4,279
------------ ---------- ---------------- ---------
Other information
Depreciation, amortisation
and impairment 1,079 5 18 1,102
Capital additions 203 - 8 211
------------ ---------- ---------------- ---------
Segment assets
Tangible and intangible
assets 22,196 93,971 4,712 120,879
Deferred tax asset 6,998 - - 6,998
Abandonment fund 1,601 - - 1,601
Trade and other receivables 3,860 516 1,052 5,428
Inventories 270 - - 270
Restricted cash 380 - 54 434
Cash 986 4 4,318 5,308
------------ ---------- ---------------- ---------
Consolidated total
assets 36,291 94,491 10,136 140,918
------------ ---------- ---------------- ---------
Segment liabilities
Trade and other payables (9,704) (1,049) (1,232) (11,985)
Borrowings (224) - - (224)
Deferred tax liability (7,009) - - (7,009)
Lease liabilities - (21) (6) (27)
Provisions (3,825) - (2,339) (6,164)
------------ ---------- ---------------- ---------
Consolidated total
liabilities (20,762) (1,070) (3,577) (25,409)
------------ ---------- ---------------- ---------
(*) Intercompany balances and transactions between Group entities have been eliminated.
(**) Sales revenues were derived from a single customer within each of these operating countries.
NOTES TO THE FINANCIAL STATEMENTS FOR THE INTERIM PERIODED 30 JUNE 2023 (CONTINUED)
4 Intangible assets - Group
-------------------------------------------- --------- --------------------------------
Goodwill Exploration & evaluation assets
$ 000's $ 000's
Cost
As at 1 January 2022 7,045 96,832
Additions - 282
Reclassifications - 2,924
--------- --------------------------------
As at 31 December 2022 7,045 100,038
--------- --------------------------------
Additions - 583
Foreign exchange difference on translation - 3
--------- --------------------------------
As at 30 June 2023 7,045 100,624
--------- --------------------------------
Accumulated amortisation and impairment
As at 1 January 2022 2,435 2,427
Amortisation - 27
Reclassifications - 2,924
As at 31 December 2022 2,435 5,378
--------- --------------------------------
Amortisation - 13
Foreign exchange difference on translation - 2
As at 30 June 2023 2,345 5,393
--------- --------------------------------
Net book value
As at 30 June 2023 4,610 95,231
--------- --------------------------------
As at 31 December 2022 4,610 94,660
--------- --------------------------------
As at 31 December 2021 4,610 94,405
--------- --------------------------------
NOTES TO THE FINANCIAL STATEMENTS FOR THE INTERIM PERIODED 30 JUNE 2023 (CONTINUED)
5 Tangible assets
---------------------------------------- ------------------- ------------------ ------------------- --------
Oil and gas assets Property, plant Decommissioning Total
and equipment (*) costs
$ 000's $ 000's $ 000's $ 000's
Cost or Valuation
As at 1 January 2022 28,303 2,013 2,225 32,541
Additions 128 498 1,307 1,933
Disposals (133) (400) - (533)
Assets held for sale (7,013) - (844) (7,857)
Reclassifications 15,563 5,404 226 21,193
Foreign exchange difference on
translation - (146) - (146)
------------------- ------------------ ------------------- --------
As at 31 December 2022 36,848 7,369 2,914 47,131
------------------- ------------------ ------------------- --------
Additions 9 28 - 37
Reclassifications - (201) - (201)
Foreign exchange difference on
translation 15 36 2 53
------------------- ------------------ ------------------- --------
As at 30 June 2023 36,872 7,232 2,916 47,020
------------------- ------------------ ------------------- --------
Accumulated depreciation and Impairment
At 1 January 2022 7,294 751 1,748 9,793
Depreciation 1,720 285 230 2,335
Disposals (88) (286) - (374)
Impairment 2,201 - 88 2,289
Assets held for sale (6,679) - (738) (7,417)
Reclassifications 15,563 5,404 226 21,193
Foreign exchange difference on
translation - (145) 1 (144)
------------------- ------------------ ------------------- --------
At 31 December 2022 20,011 6,009 1,555 27,575
------------------- ------------------ ------------------- --------
Depreciation 632 149 60 841
Reclassifications - (201) - (201)
Foreign exchange difference on
translation (6) 34 - 28
------------------- ------------------ ------------------- --------
As at 30 June 2023 20,637 5,991 1,615 28,243
------------------- ------------------ ------------------- --------
Net book value
As at 30 June 2023 16,235 1,241 1,301 18,777
------------------- ------------------ ------------------- --------
As at 31 December 2022 16,837 1,360 1,359 19,556
------------------- ------------------ ------------------- --------
As at 31 December 2021 21,009 1,262 477 22,748
------------------- ------------------ ------------------- --------
(*) Property, plant and equipment includes leasehold improvements.
NOTES TO THE FINANCIAL STATEMENTS FOR THE INTERIM PERIODED 30 JUNE 2023 (CONTINUED)
6 Right of use assets
-------------------------------------------- ------------------------ --------------------- ------------
Group leased properties Group motor vehicles Total Group
$ 000's $ 000's $ 000's
Cost
As at 1 January 2022 484 32 516
Disposals (406) - (406)
Reclassifications 60 - 60
As at 31 December 2022 138 32 170
------------------------ --------------------- ------------
Reclassifications (59) - (59)
Foreign exchange difference on translation - - -
------------------------ --------------------- ------------
As at 30 June 2023 79 32 111
Accumulated depreciation
As at 1 January 2022 470 32 502
Depreciation 14 - 14
Disposals (406) - (406)
Reclassifications 60 - 60
As at 31 December 2022 138 32 170
------------------------ --------------------- ------------
Reclassifications (59) - (59)
Foreign exchange difference on translation - - -
As at 30 June 2023 79 32 111
Net book value
As at 30 June 2023 - - -
------------------------ --------------------- ------------
As at 31 December 2022 - - -
------------------------ --------------------- ------------
As at 31 December 2021 14 - 14
------------------------ --------------------- ------------
NOTES TO FINANCIAL STATEMENTS FOR THE YEARED 31 DECEMBER 2022 (CONTINUED)
7 Discontinued operations
------------------------
At balance sheet date the following asset sale is considered to be active
and highly probable of taking place:
Sale of T-Rex (Cory Moruga asset):
On 20 December 2022 the Company announced that it had entered into a
binding heads of terms with Predator Oil & Gas Holdings Plc, providing
for the conditional sale of the Company's interest in the non-producing
Cory Moruga licence in Trinidad though the sale of 100% of the share
capital in T-Rex Resources (Trinidad) Limited (TREX), with retention
of 25% future back-in right (at the Company's option) based on the outcomes
of future drilling / EOR activity and associated future production.
Subsequently, on 8 March 2023 confirmed that the confirmatory due diligence
process was finalised and both parties had entered into fully termed
long form legal documentation.
The completion of the Transaction is conditional on consent of the Trinidadian
Ministry of Energy and Energy Industries ("MEEI") to a revised work
programme for the Cory Moruga licence and restructuring of certain licence
terms. The parties have agreed to work together to secure the required
consents and agreements with MEEI and thus achieve completion of the
Transaction as soon as reasonably practicable.
Accordingly, T-Rex Resources (Trinidad) Limited continues to form a
separate disposal group and has been classified as assets held of sale
at 30 June 2023.
The results for this disposal group are presented below:
Income statement $ 000's
Administration expenses (262)
Operating foreign exchange gains/(losses) (2)
Finance costs (6)
(270)
--------
The major classes of assets and liabilities of the combined disposal
group classified as held for sale at 31 December are presented below:
Assets $ 000's
Trade and other receivables 1,114
1,114
--------
Liabilities
Trade and other payables (3,162)
Provisions (1,202)
(4,364)
--------
Sale of CREX:
During the reporting period an asset sale took place resulting in the loss of control over CREX.
On 14 February 2023 the Company announced publicly (via RNS) it had entered into and completed a transaction for the sale of its St Lucia domiciled subsidiary company, Caribbean Rex Limited (CREX) which included its associated assets and subsidiary entities. This includes (via interposed subsidiaries) CEG South Erin Trinidad Limited ("CSETL" a Trinidadian company that is party to a farm-out agreement for, and is the operator of, the South Erin field, onshore Trinidad) and West Indian Energy Group Limited (a Trinidadian service company).
NOTES TO FINANCIAL STATEMENTS FOR THE YEARED 31 DECEMBER 2022 (CONTINUED)
7 Discontinued operations (continued)
------------------------------------
Consideration was received in cash during the period. At the date of the disposal the carrying amounts of CREX net assets were as follows:
Assets $ 000's
Cash and cash equivalents 6
Restricted cash 89
Trade and other receivables 115
Property, plant and equipment and decommissioning costs 402
Abandonment fund 106
Deferred Tax Asset 201
--------
Total assets 919
--------
Liabilities
Trade and other payables (989)
Provisions (808)
Borrowings (181)
Deferred tax liability (201)
--------
Total liabilities (2,179)
--------
Total net liability (1,260)
--------
Total consideration received in cash 1,200
Less cash and cash equivalents disposed of (6)
--------
Net cash received 1,194
--------
Gain on disposal* 2,454
--------
Reconciliation to gain from discontinued operations:
Gain on disposal (as above) 2,454
Less losses resulting from T-Rex Resources (Trinidad) Limited for the period (270)
Less losses resulting from CREX and subsidiaries for the period up to disposal date (250)
--------
Gain after tax for the year from discontinued operations 1,934
--------
*The gain on disposal is included in the loss for the year from discontinued operations in the consolidated statement of profit or loss.
The net cash flows incurred by the combined disposal group are, as follows:
$ 000's
Operating 289
Investing 1,191
Financing (9)
--------
Net cash (outflow) / inflow 1,471
--------
NOTES TO THE FINANCIAL STATEMENTS FOR THE INTERIM PERIODED 30 JUNE 2023 (CONTINUED)
8 Trade and other payables
-------------------------
The trade and other payables (including accruals) include dues, amounting to approximately
$2.5 million in aggregate, that are considered to be of a routine working capital nature,
and that are being settled in the ordinary course of business and / or under certain agreed
payment plans. The remainder of trade and other payables include:
i) approximately $3.2 million is in respect of taxes in Trinidad and Tobago that the Group
expects to settle by way of offset against tax refunds due to the Group in Trinidad and Tobago
($1.4 million, included under 'Trade and other receivables'). The balance amount relates to
a notional estimate of penalties that apply in accordance with the tax laws in Trinidad and
Tobago - as at the date of this report these are notional estimates only and have not been
levied or assessed, and the Group does not expect that they will be levied or assessed and
that ultimately no cash payment will be required as the Group had claimed the benefit of a
tax amnesty during the 2021 tax amnesty period implemented by the Trinidad and Tobago tax
authorities, with the final resolution of this matter remaining pending; and
ii) approximately $2.6 million is in respect of various other dues comprising, i) $0.5 million
is in respect of potential insurance "top-up" exposure, due to the ultimate cost of the Perseverance-1
well in The Bahamas exceeding the initial estimated cost - however, as at the date of this
report, the matter remains pending resolution with the insurers, ii) $0.6 million is in respect
of accrued licence fee which the Group expects to offset against $0.5 million refundable advances
(included in trade and other receivables) resulting in no material incremental cash exposure
to the Group, iii) $0.4 million in advances towards a work programme undertaken by a third-party
for which a settlement agreement has been reached as part of the sale of Cory Moruga asset
(pending completion) resulting in no cash exposure to the Group, and iv) $1.1 million in relation
to legacy accruals recognised in the financial statements which the Group does not expect
to crystalise for a foreseeable future and expects to be written-back following lapse of the
relevant statute of limitation period.
9 Share capital - Group & Company
----------------------------------------------------------- --------------
Called up, allotted, issued Number of Nominal Share premium
and fully paid ordinary shares shares value
of 0.0002p each
$ 000's $ 000's
At 1 January 2022 796,522,914 218 171,734
Shares issued at average price
of 0.1p per share 691,401,490 185 739
Shares issued at average price
of 0.1p per share 3,480,645,475 919 3,366
Shares issued at average price
of 0.1p per share 4,651,629,600 1,218 4,433
At 31 December 2022 9,620,199,479 2,540 180,240
At 1 January 2023 9,620,199,479 2,540 180,240
At 30 June 2023 9,620,199,479 2,540 180,240
Number of Nominal Share premium
shares value
$ 000's $ 000's
At 31 December 2021 796,522,914 218 171,734
-------------- -------- --------------
As 31 December 2022 9,620,199,279 2,450 180,240
-------------- -------- --------------
At 30 June 2023 9,620,199,479 2,540 180,240
-------------- -------- --------------
At the end of the period, the number of shares in issue comprised
9,620 million ordinary shares (2022: 9,620million).
During the prior period, transaction costs for issued share capital
totalled $748,777, these amounts were allocated to share premium.
The total authorised number of ordinary shares at 30 June 2023 was
50,000,000,000 shares with a par value of 0.02 pence per share (2022:
50,000,000,000 shares of 0.02 pence per share). All issued shares
of 0.02 pence are fully paid.
NOTES TO THE FINANCIAL STATEMENTS FOR THE INTERIM PERIODED 30 JUNE 2023 (CONTINUED)
10 Share based payments
reserve
----------------------- ------------------------- -----------------
Options and warrants
Share options have been granted to Directors, selected employees and consultants to the Company.
The Group had no legal or constructive obligation to repurchase or settle any options in cash. Movements in the number of share options and warrants outstanding during the year are as follows:
Average exercise No. Options &
price per share Warrants
At 1 January 2023 0.24p 1,388,473,911
Expired - -
Cancelled 0.19p (136,000,000)
Granted - -
Exercised - -
----------------- --------------
As at 30 June 2023 0.25p 1,252,473,911
Exercisable at end of period - -
----------------- --------------
The fair value of the warrants and options granted in the period was estimated using the Black Scholes model.
11 Events after reporting date
----------------------------------------------------------------------------------
On 30 August 2023 the Company announced:
i) the establishment of a GBP3.3 million convertible loan note
funding facility of which GBP0.55 million has initially been
drawn down, with future drawdown of the remainder at the Group's
option;
ii) a mutually agreed extension to the long stop date for the
completion of the sale of T-Rex Resources (Trinidad) Limited
(Cory Moruga asset) to 30 November 2023 to allow the parties
to continue ongoing discussions with the Trinidadian Ministry
of Energy and Energy Industries ("MEEI") with a view to securing
MEEI's consent required for the completion of the transaction;
and
iii) the relinquishment of the Group's Weg Naar Zee block onshore
Suriname by way of an agreement with Hydrocarbon Institute,
the Surinamese hydrocarbons industry regulator ("SHI"), to terminate
the Suriname Weg Naar Zee Production Sharing Contract ("WNZ
PSC") between Columbus Energy Resources South America B.V.,
a wholly-owned subsidiary of the Company and Staatsolie Maatschappij
Suriname N.V., the Surinamese state-owned oil & gas company
("Staatsolie").
12 Other Information
----------------------------------------------------------------------
The comparative financial information set out in this report
does not constitute the Group's statutory accounts for the period
ended 31 December 2022 but is derived from those accounts.
A copy of this interim statement is available on the Company's
website: www.cegplc.com
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IR SEWFDUEDSELU
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