Share Name Share Symbol Market Type Share ISIN Share Description
TOMCO ENERGY PLC NEX:TOM.GB NEX Ordinary Share IM00BZBXMN96
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  +0.00p +0.00% 1.25p 1.10p 1.40p 1.25p 1.106p 1.25p 339,096 16:30:08
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
- - - -

TomCo Energy PLC Interim Results

28/06/2019 7:01am

UK Regulatory (RNS & others)


TOMCO ENERGY (NEX:TOM.GB)
Historical Stock Chart

6 Months : From Apr 2019 to Oct 2019

Click Here for more TOMCO ENERGY Charts.

TIDMTOM

RNS Number : 7383D

TomCo Energy PLC

28 June 2019

28 June 2019

TomCo Energy plc

("TomCo" or the "Company" or the "Group")

Unaudited interim results for the six-month period ended 31 March 2019

TomCo Energy plc (AIM: TOM), the oil shale exploration and development company focused on using innovative technology to unlock unconventional hydrocarbon resources, announces its unaudited interim results for the six-month period ended 31 March 2019.

HIGHLIGHTS

-- Upcoming field test on the Group's Holliday A Block targeting the recovery of oil through the application of TurboShale RF technology ("Field Test") is advancing well, with much of the preparatory work having now been completed

-- Mobilisation for the Field Test expected to begin at the end of July 2019, with the test scheduled to commence in early August and to run for up to four weeks

- Assuming a successful Field Test, the Company will have recovered enough oil to undertake analysis to confirm the quality and potential recovery rates using TurboShale's RF technology

-- Engagement of IGES Inc. ("IGES") as its Geotechnical Engineering adviser and Matt Himes as its Field Operations Engineering adviser

-- Second patent re TurboShale Inc.'s ("TurboShale") RF technology acquired pursuant to the framework agreement with JR Technologies LLC ("JRT") now granted

-- SRK Consulting (Australasia) Pty Ltd ("SRK") completed an independent technical review of, and prepared a resource estimate for, the Group's two oil shale leases, ML49570 and ML49571 (the "Leases")

-- Acquired seven additional mineral leases that cover approximately 12,500 acres in aggregate and are estimated to contain over 1.2bn barrels of potential oil (as measured by the United States Geological Society). The leases are located within the Uinta Basin, in the same Green River formation as the Leases

John Potter, TomCo's Chief Executive Officer, said:

"The main objective of the Field Test is to recover oil using TurboShale's RF technology by heating kerogen in-situ. With the extensive survey work undertaken in the period and the expansion of the project team our confidence in meeting our objective is very high."

Enquiries:

For further information, please visit www.tomcoenergy.com or contact:

   TomCo Energy plc                                            +44 (0)20 3823 3635 

John Potter (CEO)

Andrew Jones (Chairman)

   Strand Hanson                                                 (Nominated Adviser) 
   James Harris / Richard Tulloch /                    +44 (0)20 7409 3494 

James Dance

   Turner Pope                                                     (Broker) 
   Andy Thacker                                                  +44 (0)20 3621 4120 

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014.

DIRECTORS' REPORT

Operational

The Group is advancing well with its Field Test on the Group's Holliday A Block, with much of the preparatory work having now been completed, including:

-- Groundwater desktop survey completed by IGES over ML49571, identifying prospective 'dry' sites for the Field Test within the Holliday A Block, similar to those hosting the historical BART programme;

   --           Monitor wells drilled to identify the optimum location for the Field Test wells; 

-- Following our recent site visit, we, together with Himes Drilling Company Inc. ("Himes Drilling") and IGES, have now determined the location of the three new wells for the Field Test, along with the layout of the drill pad and site services;

   --           Road improvement works and pad construction completed at the new site; 

-- The core sample from one of the recently drilled Monitor Wells, along with the cores from the nearby HB002 well (drilled in 2010), have been studied and analysed by IGES, with input from Mike Vanden Berg of Utah Geological Society, which reaffirmed the location for the Field Test wells;

   --           All services and equipment providers engaged for the Field Test; and 

-- Exploration permit variation application has been submitted and approval expected shortly.

It is currently anticipated that mobilisation for the Field Test will begin towards the end of July 2019, with the test scheduled to commence in early August and to run for up to four weeks.

During the period the Company announced that it strengthened its technical capabilities with the engagement of IGES as its Geotechnical Engineering adviser and Matt Himes as its Field Operations Engineering adviser on 3 December 2018. The engagement of IGES has provided access to a broad range of resources, together with an in-depth knowledge of the Uinta basin in which TomCo's oil shale leases reside. IGES also has a good working relationship with Himes Drilling, the Company's drilling contractor of which Matt Himes is the principal. Matt Himes has over 20 years' experience in the oil and gas sector, having previously been a drilling supervisor with Shell and for the last four years the principal of Himes Drilling. Himes Drilling itself has extensive experience of operating in the Uinta basin and with oil shale.

The primary objective for the Field Test is the recovery of oil from the Group's Holliday A Block through the application of TurboShale's RF technology. Assuming a successful test, the Group will have recovered sufficient oil to undertake analysis to confirm the quality and potential recovery rates using TurboShale's RF technology. The Company has an 80% interest in TurboShale.

Corporate

During the period, we were also pleased to announce that the second patent (in application) held by TurboShale, acquired pursuant to the framework agreement in June 2017 with JRT, had been granted by the US Patent Office.

On 19 November 2018, we were pleased to announce the appointment of Turner Pope Investments (TPI) Ltd as the Company's new broker.

With the Group's move towards in-situ recovery technologies rather than mining-based techniques, it became clear to us that an updated technical review of the Group's oil shale leases was required. Accordingly, we engaged SRK to complete an independent technical review of our Leases, in which TomCo has a 100% working interest. We were pleased to announce the results of SRK's technical review on 18 March 2019, which provided a best estimate Contingent Resources (2C) of, in aggregate, 131.3 million barrels ("MM bbl") of oil assessed under Petroleum Resources Management System ("PRMS") guidelines, plus a best estimate Prospective Resource (2U) of, in aggregate, 442.8 MM bbl oil across the Leases. This included the Holliday A Block, where the Field Test is being undertaken, with 2C Contingent Resources of 57.3 MM bbl of oil and 2U Prospective Resources of 84.7 MM bbl of oil.

We were also pleased to announce that SITLA had approved the transfer of a further seven oil shale leases to the Group. These leases (being ML48801, ML48802, ML48803, ML48806, ML49236, ML49237 and ML50151) comprise, in aggregate, 12,569 acres and are estimated to contain over 1.2 billion barrels of potential oil (as measured by the United States Geological Society) based on the projected thickness of the known oil shale zones. These leases are located within the Uinta Basin, in the same Green River formation as the Company's other two leases and significantly increases our overall acreage. I am pleased to confirm that there will be minimal ongoing costs in respect of these additional leases in the short term.

We also announce today that Laurence Reed will step down as a Non-executive Director with immediate effect to focus on his other business ventures. On behalf of the Board I would like to thank Laurence for his valued contribution and guidance, and we wish him every success in the future.

Funding

During the period we raised GBP100,000 via a subscription of 1,176,471 new ordinary shares of no par value in the Company ("Ordinary Shares") with an existing shareholder at a price of 8.5 pence per share in October 2018, GBP550,000 (gross) via a placing in December 2018 of 27,500,000 new Ordinary Shares at a price of 2 pence per share in December 2018 and GBP600,000 (gross) via a placing of 21,818,182 new Ordinary Shares at a price of 2.75 pence per share in March 2019, with the net proceeds being used to providing general working capital and to advance the Filed Test.

In October 2018, the Company disposed of its entre interest in Red Leaf Resources Inc. ("Red Leaf") for a total consideration of US$133,333. Following delays in the development of Red Leaf's EcoShale(TM) technology and Total E&P USA Oil Shale, LLC's decision in 2016 not to proceed with Red Leaf's early production system, TomCo made a full impairment against its interest in Red Leaf during the financial year ended 30 September 2017 and accordingly, its interest in Red Leaf was held at nil.

In January, we were also pleased to announce the settlement of the loans provided by Chris Brown on 31 December 2017, 24 March 2018 and 11 April 2018 totalling GBP250,000 (together the "Loans"). The Loans, which attracted 8% per annum interest, were due for repayment in March 2019. Pursuant to the settlement, Mr Brown agreed to accept GBP100,000 of the Loans be converted into new Ordinary Shares at 2 pence per share, being equal to the placing price of the then latest placing announced on 14 December 2018, resulting in the issue of 5,000,000 new Ordinary Shares to Mr Brown, with the balance of the Loans being repaid in cash.

In addition, post the period end the Company received notice of the exercise of warrants to subscribe for a total of 1,530,000 new Ordinary Shares, which raised GBP30,600.

As at 27 June 2019, TomCo had approximately GBP626,000 of cash available to it. The Group has sufficient funds to complete the Field Test and through to the beginning of October 2019, when it will need to raise further funding in order to meet its liabilities and commitments as they fall due as well as to provide additional working capital for the Group. The Directors are confident that they can secure the requisite funding in the short term and looking further ahead, assuming a positive outcome from the Field Test, the Directors believe that the Group will be able to target various alternative sources of longer-term funding and will actively explore and consider all potential funding options. However, there can be no certainty that the Group will be able to secure the necessary funding as and when required or that if such funds are available as to the terms of such funding.

We thank shareholders for their continued support, and we look forward to keeping shareholders updated on progress as we move to commence the Field Test.

Andrew Jones

Chairman

Condensed consolidated statement of comprehensive income

For the six-month period ended 31 March 2019

 
                                                    Unaudited    Unaudited        Audited 
                                                   Six months   Six months     Year ended 
                                                        ended        ended   30 September 
                                                     31 March     31 March 
                                                         2019         2018           2018 
                                           Notes      GBP'000      GBP'000        GBP'000 
-----------------------------------------  -----  -----------  -----------  ------------- 
  Revenue                                                                -              - 
-----------------------------------------  -----  -----------  -----------  ------------- 
  Cost of sales                                                          -              - 
-----------------------------------------  -----  -----------  -----------  ------------- 
  Gross profit/(loss)                                                    -              - 
  Administrative expenses                    3          (519)        (207)          (857) 
-----------------------------------------  -----  -----------  -----------  ------------- 
  Operating loss                                        (519)        (207)          (857) 
  Finance costs                                           (5)          (2)           (12) 
-----------------------------------------  -----  -----------  -----------  ------------- 
  Loss on ordinary activities before 
   taxation                                             (524)        (209)          (869) 
  Taxation                                                  -            -              - 
-----------------------------------------  -----  -----------  -----------  ------------- 
  Loss from continuing operations                       (524)        (209)          (869) 
 
  Loss for the period/year attributable 
   to: 
  Equity shareholders of the parent                     (459)        (202)          (770) 
  Non-controlling interests                              (65)          (7)           (99) 
-----------------------------------------  -----  -----------  -----------  ------------- 
                                                        (524)        (209)          (869) 
-----------------------------------------  -----  -----------  -----------  ------------- 
 
  Items that may be reclassified subsequently to 
   profit or loss 
  Exchange differences on translation 
   of foreign operations                                 (24)            4            227 
  Items that will not be reclassified subsequently 
   to profit or loss 
  Fair value gain on available for 
   sale equity instrument                                   2            -            102 
-----------------------------------------  -----  -----------  -----------  ------------- 
Other comprehensive income for the year attributable 
 to: 
  Equity shareholders of the parent                      (22)                         333 
  Non-controlling interests                                 -                         (4) 
  Other comprehensive income                             (22)        (205)          (329) 
 
  Total comprehensive loss attributable 
   to: 
  Equity shareholders of the parent                     (481)        (199)          (437) 
  Non-controlling interests                              (65)          (6)          (103) 
-----------------------------------------  -----  -----------  -----------  ------------- 
                                                        (546)        (205)          (540) 
-----------------------------------------  -----  -----------  -----------  ------------- 
 
  Loss per share attributable to the equity shareholders 
   of the parent 
-------------------------------------------------------------  -----------  ------------- 
  Basic & Diluted Loss per share (pence)     4         (0.56)       (0.70)         (1.84) 
-----------------------------------------  -----  -----------  -----------  ------------- 
 

Condensed consolidated statement of financial position

As at 31 March 2019

 
                                             Unaudited     Unaudited 
                                            Six months    Six months          Audited 
                                                 ended         ended       Year ended 
                                              31 March      31 March     30 September 
                                                  2019          2018             2018 
                                     Note      GBP'000       GBP'000          GBP'000 
-----------------------------------  ----  -----------  ------------  --------------- 
  Assets 
  Non-current assets 
  Intangible assets                   6          8,218         7,648            8,075 
  Property, plant and equipment                    313             -              313 
  Other receivables                                 23            22               23 
-----------------------------------  ----  -----------  ------------  --------------- 
                                                 8,554         7,670            8,411 
-----------------------------------  ----  -----------  ------------  --------------- 
  Current assets 
  Trade and other receivables                      656            22               47 
  Investment in unquoted equity 
   securities                                        -             -              102 
  Cash and cash equivalents                        245           176              262 
-----------------------------------  ----  -----------  ------------  --------------- 
                                                   901           198              411 
-----------------------------------  ----  -----------  ------------  --------------- 
  Total Assets                                   9,455         7,868            8,822 
-----------------------------------  ----  -----------  ------------  --------------- 
 
  Liabilities 
  Current liabilities 
  Trade and other payables                       (349)         (241)            (254) 
  Loans                               5              -         (200)            (250) 
-----------------------------------  ----  -----------  ------------  --------------- 
                                                 (349)         (441)            (504) 
-----------------------------------  ----  -----------  ------------  --------------- 
  Net current assets/(liabilities)                 552         (243)             (93) 
-----------------------------------  ----  -----------  ------------  --------------- 
 
  Total liabilities                              (349)         (441)            (504) 
-----------------------------------  ----  -----------  ------------  --------------- 
 
  Total Net Assets                               9,106         7,427            8,318 
-----------------------------------  ----  -----------  ------------  --------------- 
 
  Shareholders' equity 
  Share capital                                      -             -                - 
  Share premium                                 27,778        25,354           26,542 
  Warrant reserve                                   81            57               43 
  Translation reserve                              207             3              223 
  Retained deficit                            (18,798)      (17,964)         (18,393) 
-----------------------------------  ----  -----------  ------------  --------------- 
  Equity attributable to owners 
   of the parent                                 9,268         7,450            8,415 
  Non-controlling interests                      (162)          (23)             (97) 
-----------------------------------  ----  -----------  ------------  --------------- 
  Total Equity                                   9,106         7,427            8,318 
-----------------------------------  ----  -----------  ------------  --------------- 
 

The financial information was approved and authorised for issue by the Board of Directors on 27 June 2019 and was signed on its behalf by:

   J Potter                                     A Jones 
   Director                                    Director 

Condensed consolidated statement of changes in equity

For the six months ended 31 March 2019

 
                                   Share     Share   Warrant  Translation  Retained           Non-controlling    Total 
                                 capital   premium   reserve      reserve   deficit    Total         interest   equity 
-----------------------  ----- 
                         Note    GBP'000   GBP'000   GBP'000      GBP'000   GBP'000  GBP'000          GBP'000  GBP'000 
-----------------------  -----  --------  --------  --------  -----------  --------  -------  ---------------  ------- 
  At 30 September 
   2017 (audited)                      -    25,354        57            -  (17,748)    7,663             (31)    7,632 
                                --------  --------  --------  -----------  --------  -------  ---------------  ------- 
  Loss for the period                  -         -         -            -     (202)    (202)              (7)    (209) 
  Comprehensive income 
   for the period                      -         -         -            -         3        3                1        4 
------------------------------  --------  --------  --------  -----------  --------  -------  ---------------  ------- 
  Total comprehensive 
   loss for the period                 -         -         -            -     (199)    (199)              (6)    (205) 
  Change in non-controlling 
   interest                            -         -         -            -      (14)     (14)               14        - 
------------------------------  --------  --------  --------  -----------  --------  -------  ---------------  ------- 
  At 31 March 2018 
   (unaudited)                         -    25,354        57            -  (17,961)    7,450             (23)    7,427 
------------------------------  --------  --------  --------  -----------  --------  -------  ---------------  ------- 
  Loss for the period                  -         -         -            -     (568)    (568)             (92)    (660) 
  Comprehensive income 
   for the period                      -         -         -          223       107      330              (5)      325 
------------------------------  --------  --------  --------  -----------  --------  -------  ---------------  ------- 
  Total comprehensive 
   loss for the period                 -         -         -          223     (461)    (238)             (97)    (335) 
  Issue of shares 
   (net of costs)                      -     1,188         -            -         -    1,188                -    1,188 
  Change in non-controlling 
   interest                            -         -         1            -      (23)     (22)               23        1 
  Expiry of warrants                   -         -      (15)            -        15        -                -        - 
  Share-based payment 
   charge                              -         -         -            -        37       37                -       37 
  At 30 September 
   2018 (audited)                      -    26,542        43          223  (18,393)    8,415             (97)    8,318 
------------------------------  --------  --------  --------  -----------  --------  -------  ---------------  ------- 
  Total comprehensive 
   loss for the period                 -         -         -         (24)     (457)    (481)             (65)    (546) 
  Issue of shares 
   (net of costs)                      -     1,236        38            -         -    1,274                -    1,274 
------------------------------  --------  --------  --------  -----------  --------  -------  ---------------  ------- 
  Share-based payment 
   charge                              -         -         -            -        60       60                -       60 
------------------------------  --------  --------  --------  -----------  --------  -------  ---------------  ------- 
  Reclassification                     -         -         -            8       (8)        -                -        - 
------------------------------  --------  --------  --------  -----------  --------  -------  ---------------  ------- 
  At 31 March 2019 
   (unaudited)                         -    27,778        81          207  (18,798)    9,268            (162)    9,106 
------------------------------  --------  --------  --------  -----------  --------  -------  ---------------  ------- 
 

The following describes the nature and purpose of each reserve within owners' equity:

 
 Reserve               Descriptions and purpose 
 Share capital         Amount subscribed for share capital at nominal value, 
                        together with transfers to share premium upon redenomination 
                        of the shares to nil par value. 
 Share premium         Amount subscribed for share capital in excess of nominal 
                        value, together with transfers from share capital 
                        upon redenomination of the shares to nil par value. 
 Warrant reserve       Amounts credited to equity in respect of warrants 
                        to acquire ordinary shares in the Company. 
 Translation reserve   Amounts debited or credited to equity arising from 
                        translating the results of subsidiary entities whose 
                        functional currency is not sterling. 
 Retained deficit      Cumulative net gains and losses recognised in the 
                        consolidated statement of comprehensive income. 
 Non-Controlling       Amounts attributable to the non-controlling interest 
  Interests             in TurboShale Inc. See note 6 
 

Condensed consolidated statement of cash flows

For the period ended 31 March 2019

 
                                                     Unaudited    Unaudited        Audited 
                                                    Six months   Six months     Year ended 
                                                      ended 31     ended 31   30 September 
                                                    March 2019   March 2018           2018 
                                             Note      GBP'000      GBP'000        GBP'000 
-------------------------------------------  ----  -----------  -----------  ------------- 
  Cash flows from operating activities 
  Loss after tax                                         (524)        (209)          (869) 
  Finance costs                                              2            -             12 
  Amortisation of intangible fixed 
   assets                                                    4            1              6 
  Share-based payment charge                                60            -             37 
  (increase)/decrease in trade and 
   other receivables                                       (8)            6           (48) 
  (Increase/(decrease) in trade and 
   other payables                                           30           45             71 
-------------------------------------------  ----  -----------  -----------  ------------- 
  Cash used in operations                                (433)        (157)          (791) 
  Interest paid                                            (5)            -           (12) 
  Net cash outflows from operating 
   activities                                            (438)        (157)          (803) 
  Cash flows from investing activities 
  Investment in intangibles                    7         (148)            -          (204) 
  Purchase of property, plant and 
   equipment                                                              -          (303) 
  Sale of investments                                      104            -              - 
  Net cash used in investing activities                   (44)            -          (507) 
-------------------------------------------  ----  -----------  -----------  ------------- 
  Cash flows from financing activities 
  Issue of share capital (net of 
   issue costs)                                7           614            -          1,188 
  Loans (repaid)/received                                (150)          200            250 
  Net cash generated from financing 
   activities                                              464          200          1,438 
-------------------------------------------  ----  -----------  -----------  ------------- 
 
  Net increase/(decrease) in cash 
   and cash equivalents                                   (18)           43            128 
  Cash and cash equivalents at beginning 
   of financial period                                     262          128            128 
-------------------------------------------  ----  -----------  -----------  ------------- 
  Foreign currency translation differences                   1            5              6 
-------------------------------------------  ----  -----------  -----------  ------------- 
  Cash and cash equivalents at end 
   of financial period                                     245          176            262 
-------------------------------------------  ----  -----------  -----------  ------------- 
 

UNAUDITED NOTES FORMING PART OF THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

For the six months ended 31 March 2019

   1.       Accounting Policies 

Basis of Preparation

The unaudited condensed consolidated interim financial statements of TomCo Energy plc ("TomCo" or the "Company") for the six months ended 31 March 2019, comprise the Company and its subsidiaries (together referred to as the "Group").

The unaudited condensed interim financial information for the Group has been prepared using the recognition and measurement requirements of International Financial Reporting Standards (IFRS and IFRIC interpretations) issued by the International Accounting Standards Board ("IASB") as adopted for use in the EU, with the exception of IAS 34 Interim Financial Reporting that is not mandatory for companies quoted on the AIM market of the London Stock Exchange. The unaudited condensed interim financial information has been prepared using the accounting policies which will be applied in the Group's statutory financial information for the year ending 30 September 2019.

There were no new standards, interpretations and amendments to published standards effective in the period which had a significant impact on the Group.

New standards not yet effective

IFRS 16 introduces a single lease accounting model. This standard requires lessees to account for all leases under a single on- balance sheet model. Under the new standard, a lessee is required to recognise all lease assets and liabilities on the balance sheet; recognise amortisation of leased assets and interest on lease liabilities over the lease term; and separately present the principal amount of cash paid and interest in the cash flow statement. Management are currently reviewing the impact of the standard but do not anticipate it having a material effect given the absence of operating leases.

Going concern

Since the end of September 2018, being the end of the Group's financial year, the Company has raised, in aggregate, GBP1.15 million (gross) through a subscription and two placings, as well as well US$133,333 from the sale of its entire interest in Red Leaf Resources and as at 27 June 2019, the Group had cash of approximately GBP626,000.

The Directors have prepared cash flow forecasts for the next 12 months from the date of signing of these financial statements. Under these forecasts, the Group will complete the Field Test in 2019 and, subject to a successful test, the Company will have recovered sufficient oil to undertake analysis to confirm the quality and potential recovery rates using TurboShale's RF technology. This represents an important step towards establishing the future commerciality of the Group's oil shale leases and building shareholder value.

The forecasts indicate that the Group will have sufficient funds to complete the Field Test and through to the beginning of October 2019, when it will need to raise further funding in order to meet its liabilities and commitments as they fall due as well as to provide additional working capital for the Group.

The Directors are confident that they can secure the requisite funding in the short term and looking further ahead, assuming a positive outcome from the Field Test, the Directors believe that the Group will be able to target various alternative sources of longer-term funding and will actively explore and consider all potential funding options. However, there can be no certainty that the Group will be able to secure the necessary funding as and when required or that if such funds are available as to the terms of such funding.

As a result, these conditions are considered to represent a material uncertainty, which may cast significant doubt over the Group's ability to continue as a going concern and in the event that it is unable to secure the requisite funding, it is likely that the Company will not be able to meet its liabilities as they fall due and that it may therefore be forced into insolvency proceedings (be that administration or liquidation) and in such a case it is highly unlikely that there would be any value attributable to shareholders.

Whilst acknowledging this material uncertainty, the Directors remain confident of raising the additional funds required and therefore the Directors consider it appropriate to prepare the financial statements on a going concern basis. The financial statements do not include the adjustments that would result if the Group and Company was unable to continue as a going concern.

   2.       Financial reporting period 

The unaudited condensed interim financial information incorporates comparative figures for the unaudited six-month interim period to 31 March 2018 and the audited financial year for the year ended 30 September 2018. The six-month financial information to 31 March 2019 is neither audited nor reviewed. In the opinion of the Directors the unaudited condensed interim financial information for the period presents fairly the financial position, results from operations and cash flows for the period in conformity with the generally accepted accounting principles consistently applied.

The financial information contained in this unaudited interim report does not constitute statutory accounts as defined by the Isle of Man Companies Act 2006. It does not include all disclosures that would otherwise be required in a complete set of financial statements and should be read in conjunction with the 2018 Annual Report. The comparatives for the full year ended 30 September 2018 are not the Group's full statutory accounts for that year. The auditors' report on those accounts was unqualified but did include a material uncertainty paragraph in respect of going concern.

   3.       Operating Loss 
 
                                                Unaudited    Unaudited        Audited 
                                               Six months   Six months           Year 
                                                    ended        ended          ended 
                                                 31 March     31 March   30 September 
                                                     2019         2018           2018 
                                                  GBP'000      GBP'000        GBP'000 
--------------------------------------------  -----------  -----------  ------------- 
  The following items have been charged in arriving at operating loss: 
  Directors' remuneration                             101           61            143 
  Share-based payment charges for directors            60            -             37 
  Auditors' remuneration                               15           16             31 
  Licences for land and buildings                      17            1              6 
--------------------------------------------  -----------  -----------  ------------- 
 
   4.       Loss per share 

Basic loss per share is calculated by dividing the losses attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the year. Reconciliations of the losses and weighted average number of shares used in the calculations are set out below.

 
                                                      Weighted average   Per share 
                                            Losses    number of shares      amount 
 Six months ended 31 March 2019            GBP'000                           Pence 
----------------------------------------  --------  ------------------  ---------- 
 Basic and Diluted EPS 
 Losses attributable to ordinary 
  shareholders on continuing operations      (459)          82,243,757      (0.56) 
----------------------------------------  --------  ------------------  ---------- 
                                                      Weighted average   Per share 
                                            Losses    number of shares      amount 
 Six months ended 31 March 2018            GBP'000                           Pence 
----------------------------------------  --------  ------------------  ---------- 
 Basic and Diluted EPS 
 Losses attributable to ordinary 
  shareholders on continuing operations      (202)          28,917,800      (0.70) 
----------------------------------------  --------  ------------------  ---------- 
                                                      Weighted average   Per share 
                                            Losses    number of shares      amount 
 Year ended 30 September 2018              GBP'000                           Pence 
----------------------------------------  --------  ------------------  ---------- 
 Basic and Diluted EPS 
 Losses attributable to ordinary 
  shareholders on continuing operations      (770)          41,719,121      (1.84) 
----------------------------------------  --------  ------------------  ---------- 
 
   5.       Loans 

The Company raised loan funding of GBP250,000 from Christopher Brown, a significant shareholder and former director, in prior periods. The loans were unsecured and carried interest of 8% per annum. The loans were settled during the six months ended 31 March 2019 by the payment of GBP150,000 in cash and the issue of 5.0 million new shares at a price of 2 pence per share.

   6.       Intangible assets 
 
                                 Oil & Gas Exploration                        Oil & Gas Patents 
                                       and development  Oil & Gas Technology         and patent 
                                              licences               Licence       applications      Total 
-------------------------------  ---------------------  --------------------  -----------------  --------- 
                                               GBP'000               GBP'000            GBP'000    GBP'000 
-------------------------------  ---------------------  --------------------  -----------------  --------- 
  Cost, net of impairment and amortisation 
  At 1 October 2016 and 
   31 March 2017 (unaudited)                     7,627                     -                  -      7,627 
  Additions                                          -                     -                 24         24 
  Translation differences 
   and amortisation                                  -                     -                (1)        (1) 
-------------------------------  ---------------------  --------------------  -----------------  --------- 
  At 30 September 2017 
   (audited)                                     7,627                     -                 23      7,650 
-------------------------------  ---------------------  --------------------  -----------------  --------- 
  Translation differences 
   and amortisation                                                                         (2)        (2) 
-------------------------------  ---------------------  --------------------  -----------------  --------- 
  At 31 March 2018 (unaudited)                   7,627                     -                 21      7,648 
  Additions                                        193                     -                 11        204 
  Translation differences 
   and amortisation                                227                                      (4)        223 
-------------------------------  ---------------------  --------------------  -----------------  --------- 
  At 30 September 2018 
   (audited)                                     8,047                     -                 28      8,075 
-------------------------------  ---------------------  --------------------  -----------------  --------- 
  Additions                                        148                     -                  -        148 
-------------------------------  ---------------------  --------------------  -----------------  --------- 
  Translation differences 
   and amortisation                                (2)                     -                (3)        (5) 
-------------------------------  ---------------------  --------------------  -----------------  --------- 
  At 31 March 2019 (unaudited)                   8,193                     -                 25      8,218 
-------------------------------  ---------------------  --------------------  -----------------  --------- 
 
  Net book value 
  At 31 March 2019 (unaudited)                   8,193                     -                 25      8,218 
-------------------------------  ---------------------  --------------------  -----------------  --------- 
  At 30 September 2018 
   (audited)                                     8,047                     -                 28      8,075 
-------------------------------  ---------------------  --------------------  -----------------  --------- 
  At 31 March 2018 (unaudited)                   7,627                     -                 21      7,648 
-------------------------------  ---------------------  --------------------  -----------------  --------- 
 

The exploration and development licences comprise nine Utah oil shale leases covering approximately 15,488 acres. In respect of leases ML 49570 and ML 49571, independent natural resources consultants SRK Consulting (Australasia) Pty Ltd, part of the internationally recognised SRK Group, has recently reported best estimate Contingent Resources (2C) of, in aggregate, 131.3 million barrels ("MM bbl") of oil assessed under Petroleum Resources Management System ("PRMS") guidelines, plus a best estimate Prospective Resource (2U) of, in aggregate, 442.8 MM bbl oil across the Leases. This included the Holliday A Block, where the Field Test is being undertaken, with 2C Contingent Resources of 57.3 MM bbl of oil and 2U Prospective Resources of 84.7 MM bbl of oil. The Directors continue to consider the Holliday A Block to be prospective and are seeking methods of extracting the shale oil through development of TurboShale's RF technologies.

The further seven oil shale leases (being ML48801, ML48802, ML48803, ML48806, ML49236, ML49237 and ML50151) comprise, in aggregate, 12,569 acres and are estimated to contain over 1.2 billion barrels of potential oil (as measured by the United States Geological Society) based on the projected thickness of the known oil shale zones. These leases are located within the Uinta Basin, in the same Green River formation as the Company's other two leases and significantly increases our overall acreage.

The claim areas and the Group's interest in them is:

 
             Percentage                                  Licence Area 
 Asset         Interest   Licence Status   Expiry Date        (Acres) 
 ML 49570           100         Prospect    31/12/2024          1,639 
 ML 49571           100         Prospect    31/12/2024          1,280 
 ML 48801           100         Prospect    01/10/2021          1,919 
 ML 48802           100         Prospect    01/10/2021          1,920 
 ML 48803           100         Prospect    01/10/2021          1,920 
 ML 48806           100         Prospect    01/12/2023          1,880 
 ML 49236           100         Prospect    01/12/2023          2,624 
 ML 49237           100         Prospect    01/12/2023          1,667 
 ML 50151           100         Prospect    22/06/2020            640 
 

In performing an assessment of the carrying value of the exploration licences at the reporting date, the Directors concluded that it was not appropriate to book an impairment given the measured resource, the licence term and the continued plans to explore and develop the block, including the new technologies which TurboShale is seeking to develop.

The outcome of ongoing exploration, and therefore whether the carrying value of the exploration licences will ultimately be recovered, is inherently uncertain and is dependent upon successful development of commercially viable extraction technology. If the required additional funding was not to be made available to the Group or commercially viable extraction technologies cannot be developed, the carrying value of the asset might need to be impaired.

During the 2017/2018 financial year, preliminary drilling and other project-related costs were incurred in preparation for the Field Test to be carried out later in the 2018/2019 financial year.

   7.       Share Capital 
 
                                      31 March           31 March       30 September 
                                          2019               2018               2018 
                                     unaudited          unaudited            audited 
                              Number of shares   Number of shares   Number of shares 
---------------------------  -----------------  -----------------  ----------------- 
 Issued and fully paid 
 Number of ordinary shares 
  of no par value                  117,612,452         28,917,800         62,117,799 
---------------------------  -----------------  -----------------  ----------------- 
 
   8.       Warrants 
 
                               31 March    31 March   30 September 
                                   2019        2018           2018 
                              unaudited   unaudited        audited 
---------------------------  ----------  ----------  ------------- 
 Outstanding (number)         3,035,091   1,113,200        356,000 
 Exercisable (number)         3,035,091   1,113,200        356,000 
 Weighted average exercise 
  price (pence)                     2.7        24.8           14.0 
---------------------------  ----------  ----------  ------------- 
 
   9.       Post balance sheet events 

Funds of GBP558,000 net of costs were received by the Company in respect of the shares admitted to AIM on 27 March 2019. The gross proceeds raised pursuant to the placing was GBP600,000. The issue of the shares subject to the placing and the net proceeds due to the Company, which were included within Trade and other receivables as at 31 March 2019, are reflected in these interim results.

On 21 May 2019, warrants issued in December 2018 were exercised to subscribe for 1.53 million of new ordinary shares of no par value in the Company at 2 pence per share.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

IR UBOKRKNANUAR

(END) Dow Jones Newswires

June 28, 2019 02:01 ET (06:01 GMT)

1 Year TOMCO ENERGY Chart

1 Year TOMCO ENERGY Chart

1 Month TOMCO ENERGY Chart

1 Month TOMCO ENERGY Chart
Your Recent History
NEX
TOM.GB
TOMCO ENER..
Register now to watch these stocks streaming on the ADVFN Monitor.

Monitor lets you view up to 110 of your favourite stocks at once and is completely free to use.

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V:gb D:20191020 12:19:59