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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Echo Energy Plc | LSE:ECHO | London | Ordinary Share | GB00BF0YPG76 | ORD 0.0001P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 0.0039 | 0.0038 | 0.004 | 0.0039 | 0.0039 | 0.0039 | 97,847,526 | 08:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Drilling Oil And Gas Wells | 14.11M | -9.59M | -0.0017 | 0.00 | 0 |
TIDMECHO
RNS Number : 0914N
Echo Energy PLC
04 August 2017
Hot Features
Premium
Echo Energy PLC
Chairman's Statement, 2017 Interim Accounts
Echo Energy plc (Echo) is an AIM listed, Latin
American focused, mid-cap gas company in the making.
The Company was launched in March 2017 and is pursuing
a bold and adventurous upstream growth strategy
across Central and South America.
This LATAM regional exploration / appraisal strategy
is focused on accessing multi Tcf, low cost gas
piped to high value growing markets across a region
which has suffered from a historic period of underinvestment
and where there is an immediate market for locally
sourced gas.
Corporately, Echo has already made significant
progress in building the foundations for the delivery
of its growth strategy. Since launch, the Company
has raised some GBP26M of cash, secured a cornerstone
investor and introduced a world class team with
strong regional connections and an indisputable
track record in building mid cap AIM listed gas
businesses with sustainable value growth for Private
Investors. In five months, Echo has secured two
positioning transactions in Bolivia, one of the
few remaining 'untapped' prolific hydrocarbon provinces
and the key gas supply hub in the region. We expect
to secure further corporate and asset transactions
in Bolivia and beyond (including Argentina and
the Caribbean) in the near term. It is then the
Company's intention to selectively bring in pre-identified
strategic partners to the business to fund and
technically de-risk the larger assets.
Echo is an entrepreneurial, high growth vehicle
led and backed by an experienced team and managed
with an eye for private investors. We believe our
Company provides a compelling investment proposition
for investors at this specific point in the cycle.
James Parsons, Chairman Echo Energy Plc
Echo Energy PLC
Chief Executive Officer's Statement
Since the company's relaunch it has been a very
busy start for the new management team at Echo
and we have already taken our first steps of creating
the building blocks of a mid-cap E&P company alongside
building a portfolio with multi-Tcf potential.
In June 2017, we signed a Joint Evaluation Agreement
(JEA) with Pluspetrol, a privately owned major
oil & gas company in the region, giving us the
opportunity to secure an 80% operated interest
in the Huayco Block in Southern Bolivia. The signing
of this JEA was shortly followed by the signature
of a tri-partite Technical Evaluation Agreement
(TEA) between Echo, Pluspetrol and YPFB (the Bolivian
National Oil Company) over the Rio Salado Block
which surrounds Huayco and contains an extension
of the previously identified structure.
Both agreements will allow Echo to assess the resource
prospectivity of the Greater Huayco Region whilst
not committing the Company to a work programme
until the sub-surface potential is fully understood.
We see our partnership with Pluspetrol as a long-term
relationship with durability and scope to broaden
across Bolivia and the region as a whole. This
entry into Bolivia provides the company with a
toe-hold in the country underpinning the importance
of the regional relationships already established.
The coming months will see your new management
team add more assets to the portfolio, continue
to develop our regional partnerships and assess
merits of a number of opportunities across the
LatAm region where we will be focussed on delivering
access to high value assets based on rigorous technical
and commercial analysis. We are technically driven
but nimble and opportunistic and believe that the
E&P cycle is at a low point that will enable us
to build a portfolio across the region whilst benefitting
from what we expect will be improving markets and
business environment.
Fiona MacAulay, Chief Executive Officer Echo Energy
Plc
Echo Energy PLC
Consolidated statement of comprehensive income
Six months ended 30 June 2017
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Unaudited Unaudited Audited
1 January 1 January 1 January
2017 2016 2016
to 30 to 30 to 31
June June December
2017 2016 2016
GBP GBP GBP
Notes
Continuing operations
Revenue 2 - - -
Cost of sales - - -
Gross profit - - -
Administrative expenses (1,287,580) (281,672) (1,325,362)
Other operating income - - -
Operating loss (1,287,580) (281,672) (1,325,362)
Financial income 369 114 144
Financial expense (364,288) (17,143) (23,739)
Share of post-tax losses
of equity
accounted joint ventures - - -
Loss before tax (1,651,499) (298,701) (1,348,957)
Taxation 3 - - -
Loss from continuing operations (1,651,499) (298,701) (1,348,957)
Discontinued operations
Loss after taxation for the
period from
discontinued operations (24,759) (149,992) (5,905,227)
Loss for the period (1,676,258) (448,693) (7,254,184)
Other comprehensive income:
Other comprehensive income
to be reclassified to
profit
or loss in subsequent
periods (net of tax)
Exchange difference on translating
foreign operations 2,121 624,689 807,370
Total comprehensive profit/(loss)
for the period (1,674,137) 175,996 (6,446,814)
Loss attributable to:
Owners of the parent (1,676,258) (448,693) (7,254,184)
Total comprehensive profit/(loss) attributable
to:
Owners of the parent (1,674,137) 5,996 (6,446,814)
Loss per share (pence) 4
Basic (0.9) (2.1) (18.6)
Diluted (0.9) (2.1) (18.6)
Loss per share (pence)
from continuing operations
Basic (0.9) (1.4) (3.5)
Diluted (0.9) (1.4) (3.5)
Echo Energy PLC
Consolidated statement of financial position
As at 30 June 2017
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Unaudited Unaudited Audited
30 June 30 June 31 December
2017 2016 2016
GBP GBP GBP
Notes
Non-current assets
Property, plant and equipment 1,957 8,303 3,647
Other intangible assets 5 432,486 432,486 432,486
Investments in equity-accounted
joint ventures 6 - - -
434,443 440,789 436,133
Current assets
Other receivables 118,239 686,523 235,217
Cash and cash equivalents 25,545,780 61,366 182,164
25,664,019 747,889 417,381
Assets held for distribution 91,808 5,680,861 89,371
25,755,827 6,428,750 506,752
Current liabilities
Trade and other payables (479,890) (861,691) (417,801)
Liabilities directly associated
with the
assets held for distribution (11,864) (47,403) 11,548)
(491,754) (909,094) 9,349)
Net current assets 25,264,073 5,519,656 77,403
Non-current liabilities
Loans due in over one
year 10 (10,245,639) - -
Net assets 15,452,877 5,960,445 513,536
Equity attributable
to equity holders of
the parent
Share capital 7 3,104,919 2,327,488 2,430,612
Share premium 8 25,439,364 17,247,816 17,621,763
Shares to be issued 277,468 - 277,468
Share option reserve 103,058 84,357 85,515
Share warrant reserve 8,730,575 302,453 714,977
Foreign currency translation
reserve 473,801 288,999 471,680
Retained earnings (22,676,308) (14,290,668) (21,088,479)
Total equity 15,452,877 5,960,445 513,536
Echo Energy PLC
Consolidated statement of changes in equity
Six months ended 30 June 2017
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Foreign
Shares Share Share currency
to
Retained Share Share be option warrant translation
earnings capital premium issued reserve reserve reserve Total
GBP GBP GBP GBP GBP GBP GBP GBP
Six months to 30 June 2017
1 January
2017 (21,088,479) 2,430,612 17,621,763 277,468 85,515 714,977 471,680 513,536
Loss for
the period (1,676,258) - - - - - - (1,676,258)
Exchange
differences - - - - - - 2,121 2,121
Total comprehensive loss
for the period (1,676,258) - - - - - 2,121 (1,674,137)
New shares
issued - 674,307 7,506,397 - - - - 8,180,704
Share issue
costs - - (101,320) - - - - (101,320)
New share
warrants
issued - - - - - 8,448,812 - 8,448,812
Warrants
exercised - - 412,524 - - (412,524) - -
Warrants
lapsed 20,690 - - - - (20,690) - -
Share options lapsed
in the period 67,739 - - - (67,739) - - -
Share-based
payments - - - - 85,282 - - 85,282
30 June 2017 (22,676,308) 3,104,919 25,439,364 277,468 103,058 8,730,575 473,801 15,452,877
Six months to 30 June 2016
1 January
2016 (13,841,975) 2,159,247 16,628,623 - 71,718 302,453 (335,690) 4,984,376
Loss for
the period (448,693) - - - - - - (448,693)
Exchange
differences - - - - - - 624,689 624,689
Total comprehensive loss
for the period (448,693) - - - - - 624,689 175,996
New shares
issued - 168,241 629,082 - - - - 797,323
Share issue
costs - - (9,889) - - - - (9,889)
New share
warrants
issued - - - - - - - -
Share options lapsed
in the period - - - - - - - -
Share-based
payments - - - - 12,639 - - 12,639
30 June 2016 (14,290,668) 2,327,488 17,247,816 - 84,357 302,453 288,999 5,960,445
Year to 31 December 2016
1 January
2016 (13,841,975) 2,159,247 16,628,623 - 71,718 302,453 (335,690) 4,984,376
Loss for
the period (7,254,184) - - - - - - (7,254,184)
Exchange
differences - - - - - - 807,370 807,370
Total comprehensive loss
for the period (7,254,184) - - - - - 807,370 (6,446,814)
New shares
issued - 264,065 887,329 - - - - 1,151,394
New share
warrants
issued - - - - - 412,524 - 412,524
Share issue
costs - - (9,889) - - - - (9,889)
Share options lapsed
in the period 7,680 - - - (7,680) - - -
Share-based
payments - 7,300 115,700 277,468 21,477 - - 421,945
31 December
2016 (21,088,479) 2,430,612 17,621,763 277,468 85,515 714,977 471,680 513,536
Echo Energy PLC
Consolidated statement of cash flows
Six months ended 30 June 2017
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Unaudited Unaudited Audited
1 January 1 January 1 January
2017 2016 2016
to 30 to 30 to 31
June June December
2017 2016 2016
GBP GBP GBP
Cash flows from operating activities
Loss from continuing operations (1,651,499) (298,701) (1,348,957)
Loss from discontinued operations (24,759) (149,992) (5,905,227)
(1,676,258) (448,693) (7,254,184)
Adjustments for:
Depreciation of property,
plant and equipment 1,690 3,212 5,431
Impairment of intangible
assets and goodwill - - 5,756,250
Loss on disposal of property,
plant and equipment - - 2,437
Share of post-tax loss
of equity accounted joint
ventures - 137,906 137,906
Share-based payments 85,282 12,639 421,945
Warrants issued - - 412,524
Financial income (369) (114) (144)
Financial expense 364,288 17,143 23,739
(1,225,367) (277,907) (494,096)
(Increase)/decrease in other
receivables 119,099 (293,730) 283,265
(Increase)/decrease in assets
held for distribution (2,121) 7,182 (11,557)
(Decrease)/increase in trade
and other payables (87,272) 245,758 (684,735)
Cash used in operations (1,195,661) (318,697) (907,123)
Income taxes received - - -
Net cash used in operating
activities (1,195,661) (318,697) (907,123)
Cash flows used in investing activities
Interest received 369 114 144
Interest paid (153,731) - (23,739)
Proceeds on disposal of property,
plant and equipment - - -
Acquisition of equity accounted
joint venture - - -
Purchase of intangible assets - - -
Purchase of property, plant
and equipment - (396) (396)
Net cash used in investing
activities (153,362) (282) (23,991)
Cash flows from financing activities
Net proceeds from debt 13,346,750 200,000 -
Issue of share capital 13,365,889 93,577 1,026,510
Share issue costs - (9,889) (9,889)
Net cash from financing activities 26,712,639 283,688 1,016,621
Net increase/(decrease) in
cash and cash equivalents 25,363,616 (35,291) 85,507
Cash and cash equivalents at
beginning of the period 182,164 96,657 96,657
Cash and cash equivalents at
end of the period 25,545,780 61,366 182,164
Echo Energy PLC
Notes to the interim financial information
Six months ended 30 June 2017
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
1. Accounting policies
General information
The interim financial information is for Echo
Energy PLC ("the company") and subsidiary undertakings
(together, the "Group"). The company is registered
in England and Wales and incorporated under
the Companies Act 2006. The consolidated financial
information is presented in GBP ("GBP") unless
otherwise stated.
Basis of preparation
The interim financial information, for the period
from 1 January 2017 to 30 June 2017, has been
prepared under the historical cost convention
and in accordance with International Financial
Reporting Standards and International Accounting
Standards as adopted by the European Union,
and on the going concern basis. They are in
accordance with the accounting policies set
out in the statutory accounts for the year ended
31 December 2016 and are expected to be applied
for the year ended 31 December 2017.
The Interim Report is unaudited and does not
constitute statutory financial statements. The
financial information for the period ended 30
June 2016 does not constitute statutory accounts,
as defined in section 435 of the Companies Act
2006 but is based on the statutory financial
statements for the year ended 31 December 2016.
Those accounts, upon which the auditors issued
a qualified opinion in relation to the operation
of the joint venture arrangements relating to
the group's 25 per cent. working interest in
the East Ghazalat production licence, have been
delivered to the Registrar of Companies.
The interim consolidated financial statements
for the six months ended 30 June 2017 have been
prepared in accordance with IAS 34, Interim
Financial Reporting.
The operations of Echo Energy PLC are not affected
by seasonal variations.
The directors do not propose a dividend for
the period (2016: nil).
The Interim Report for the six months ended
30 June 2017 was approved by the Directors on
3(rd) August 2017
Copies of the Interim Report are available from
the Company's website www.echoenergyplc.com.
Going concern
The financial information has been prepared
assuming the Group will continue as a going
concern. Under the going concern assumption,
an entity is ordinarily viewed as continuing
in business for the foreseeable future with
neither the intention nor the necessity of liquidation,
ceasing trading or seeking protection from creditors
pursuant to laws or regulations.
The assessment has been made based on the Group's
anticipated activities which have been included
in the financial forecast for the years 2017-2018.
To support the new LATAM strategy the group
has, during the reporting period, completed
a number of institutional funding rounds and
one open offer with each equity fundraise being
placed at nil discount to market. This funding
will be used to acquire new assets and fund
the administrative costs of the group.
Based on the above, the directors have formed
a judgment that the going concern basis should
be adopted in preparing the interim financial
information. The interim financial information
does not include any adjustments that may be
required should the Group be unable to continue
as a going concern. If the Group were unable
to continue as a going concern, then adjustments
would be necessary to write assets down to their
recoverable amounts, non-current assets and
liabilities would be reclassified as current
assets and liabilities and provisions would
be required for any costs associated with closure.
The directors continue to explore all forms
of potential fundraising at both a corporate
and asset level.
In relation to Ksar Hadada, management's intention
remains to secure a farm-in or investment partner
to cover programme costs.
Based on the above, the directors have formed
a judgment that the going concern basis should
be adopted in preparing the financial statements.
Should the Group be unable to continue trading,
adjustments would have to be made to reduce
the value of the assets to their recoverable
amounts, to provide for further liabilities
which might arise and to classify fixed assets
as current.
2. Business segments
The Group has adopted IFRS 8 operating segments
from 1 October 2009. Per IFRS 8, operating segments
are based on internal reports about components
of the Group, which are regularly reviewed and
used by the Board of Directors being the Chief
Operating Decision Maker ("CODM") for strategic
decision making and resource allocation, in
order to allocate resources to the segment and
to assess its performance. The Group's reportable
operating segments are as follows:
a. Parent company
b. Ksar Hadada
The previously reported segments of Ribolla
Basin CBM assets and Rivara have been classified
as a discontinued operation and has been excluded
from the analysis below.
The CODM monitors the operating results of each
segment for the purpose of performance assessments
and making decisions on resource allocation.
Performance is based on assessing progress made
on projects and the management of resources
used. Segment assets and liabilities are presented
inclusive of inter-segment balances.
The Group did not generate any revenue during
the six month period to 30 June 2017, or in
the six month period to 30 June 2016, or the
year to 31 December 2016.
Parent
Ksar
company Hadada Consolidation Total
GBP GBP GBP GBP
Six months to 30 June 2017
Interest revenue 369 - - 369
Interest expense (364,278) (10) - (364,288)
Depreciation 1,690 - - 1,690
Impairment of
intangible assets - - - -
Income tax - - - -
Loss for the period
before taxation (1,634,891) (41,367) 24,759 (1,651,499)
Assets 26,847,520 432,640 (1,181,698) 26,098,462
Liabilities (10,701,192) (1,120,469) 1,096,132 (10,725,529)
Six months to 30 June 2016
Interest revenue 114 - - 114
Interest expense (17,143) - - (17,143)
Depreciation 3,212 - - 3,212
Impairment of
intangible assets - - - -
Income tax - - - -
Loss for the period
before taxation (5,929) (1,195) (291,577) (298,701)
Assets 5,331,790 435,810 (4,578,922) 1,188,678
Liabilities (843,435) (1,048,715) 1,030,459 (861,691)
Year to 31 December 2016
Interest revenue 57,331 - (57,187) 144
Interest expense (23,739) - - (23,739)
Depreciation 5,431 - - 5,431
Impairment of
intangible assets - - - -
Income tax - - - -
Loss for the period
before taxation (4,487,164) (34,752) 3,172,959 (1,348,957)
Assets 1,579,091 433,226 (1,158,803) 853,514
Liabilities (411,350) (1,079,688) 1,073,237 (417,801)
2. Business segments
The geographical split of non-current assets
arises as follows:
United
Kingdom Overseas Total
GBP GBP GBP
30 June 2017
Intangible assets - 432,486 432,486
Property, plant and equipment 1,957 - 1,957
30 June 2016
Intangible assets - 432,486 432,486
Property, plant and equipment 8,303 - 8,303
31 December 2016
Intangible assets - 432,486 432,486
Property, plant and
equipment 3,647 - 3,647
3. Taxation
The Group has tax losses available to be carried
forward in certain subsidiaries and the parent.
With anticipated substantial lead times for
the Group's projects, and the possibility that
these may therefore expire before their use,
it is not considered appropriate to anticipate
an asset value for them.
No tax charge has arisen during the six month
period to 30 June 2017, or in the six month
period to 30 June 2016, or the year to 31 December
2016.
4. Loss per share
The calculation of basic and diluted loss per
share at 30 June 2017 was based on the loss
attributable to ordinary shareholders of GBP1,676,258
(six month period to 30 June 2016: GBP448,693,
year to 31 December 2016: GBP7,254,184). The
weighted average number of ordinary shares outstanding
during the period ending 30 June 2017 and the
effect of dilutive ordinary shares to be issued
are shown below.
30 June 31 December
30 June 2017 2016 2016
GBP GBP GBP
Net loss for the period (1,676,258) (448,693) (7,254,184)
Basic weighted average ordinary shares
in issue during the period 186,159,251 21,644,235 38,962,494
Diluted weighted average ordinary shares
in issue during the period 186,159,251 21,644,235 38,962,494
Loss per share
(pence)
Basic (0.9) (2.1) (18.6)
Diluted (0.9) (2.1) (18.6)
In accordance with IAS 33 and as the average
share price in the year is lower than the exercise
price, the share options do not have a dilutive
impact on earnings per share for the period
ending 30 June 2017.
Deferred shares have been excluded from the
calculation of loss per share due to their nature.
Please see note 7 for details of their rights.
5. Other intangible assets
Development and exploration
Rivara Ksar
gas Hadada
Ribolla
storage Basin exploration
facility CBM assets acreage Total
GBP GBP GBP GBP
Six month period 30 June 2017
Cost
1 January 2017 5,756,250 4,501,130 1,513,315 11,770,695
Exchange differences 156,845 122,646 - 279,491
Additions (net of
credits received) - - - -
30 June 2017 5,913,095 4,623,776 1,513,315 12,050,186
Amortisation
1 January 2017 5,756,250 4,501,130 1,080,829 11,338,209
Exchange differences 156,845 122,646 - 279,491
30 June 2017 5,913,095 4,623,776 1,080,829 11,617,700
Carrying value
30 June 2017 - - 432,486 432,486
31 December 2016 - - 432,486 432,486
Six month period to 30 June 2016
Cost
1 January 2016 4,950,206 3,870,839 1,517,641 10,338,686
Exchange differences 624,169 488,072 - 1,112,241
Additions - - (4,326) (4,326)
30 June 2016 5,574,375 4,358,911 1,513,315 11,446,601
Amortisation
1 January 2016 - 3,870,839 1,080,829 4,951,668
Exchange differences - 488,072 - 488,072
30 June 2016 - 4,358,911 1,080,829 5,439,740
Carrying value
30 June 2016 5,574,375 - 432,486 6,006,861
Year to 31 December 2016
Cost
1 January 2016 4,950,206 3,870,839 1,517,641 10,338,686
Exchange differences 806,044 630,291 - 1,436,335
Disposals - - (4,326) (4,326)
31 December 2016 5,756,250 4,501,130 1,513,315 11,770,695
Amortisation
1 January 2016 - 3,870,839 1,080,829 4,951,668
Exchange differences - 630,291 - 630,291
Impairment charge
for year 5,756,250 - - 5,756,250
31 December 2016 5,756,250 4,501,130 1,080,829 11,338,209
Carrying value
31 December 2016 - - 432,486 432,486
The primary intangible assets are all internally
generated.
For the purpose of impairment testing of intangible
assets, recoverable amounts have been determined
based upon the value in use of the Group's three
projects.
Rivara gas storage facility
The Group holds a 100% interest in Rivara Gas
Storage srl. Intangible assets include an amount
of GBP5,756,000 with respect to project expenditure.
The regional council, Regione Emilia Romagna,
where the project is located is currently denying
authorisation for project development. However
authorisation has been granted by the national
government. As a result Rivara Gas Storage srl
has appealed against this decision to the Emilia
Romagna Bologna Administrative Court.
Whilst the Group has obtained third party legal
opinions regarding the appeal and believe that
they would be successful in their appeal it
has been decided, for strategic reasons, to
close its Italian operations and therefore this
asset has been impaired in full during the year
to 31 December 2016.
6. Investments in equity-accounted joint ventures
30 June 30 June 31 December
2017 2016 2016
GBP GBP GBP
Cost 294,891 294,891 294,891
Share of post-tax losses
of equity accounted joint
ventures
1 January 2017 294,891 156,985 156,985
Share of post-tax losses
of equity accounted joint
ventures for the period - 137,906 137,906
30 June 2017 294,891 294,891 294,891
Carrying value at 30 June
2017 - - -
During the period, the Group disposed of its
50% interest in Independent Resources (Egypt)
Limited to its joint venture partner Nostra
Terra Oil & Gas Company plc (the 'buyer') a
UK resident company whose shares are traded
on the AIM market of the London Stock Exchange.
The terms of the disposal provide for a total
consideration of USD $500,000, split into three
tranches. A payment of USD $100,000 is due when
the Egyptian General Petroleum Corporation approve
the registration of any member of the buyer's
group as a party to the concession. The balance
of the consideration is payable in two tranches
triggered upon achievement of two performance
milestones, namely production of 800 bopd from
the area for 30 consecutive days and production
of 1,000 bopd from the area for 30 consecutive
days.
7. Share capital
30 June 30 June 31 December
2017 2016 2016
GBP GBP GBP
Issued, called up and fully paid
361,473,066 ordinary shares of 0.25p
(June 2016: 1,262,504,294 December 2016: 2,293,479,294
ordinary shares of 0.01p)
1 January 2017 2,430,612 2,159,247 2,159,247
Equity shares issued 674,307 168,241 271,365
30 June 2017 3,104,919 2,327,488 2,430,612
The holders of 0.25p ordinary shares are entitled
to receive dividends from time to time and are
entitled to one vote per share at meetings of
the company.
In addition to the 0.25p ordinary shares detailed
above, as part of capital reorganisations in
2015 and 2016, 202,591,368 deferred shares with
a nominal value of 0.9p and 419,905,876 2016
deferred shares with a nominal value of 0.09p
have been created. The deferred shares and the
2016 deferred shares have no value or voting
rights and the shareholders were not issued
with a share certificate, nor are they listed
on AIM. These shares remain issued, called up
and fully paid at the period end.
During the period warrant holders exercised
a total of 1,006,157,250 warrants in order to
acquire 0.01p shares at either 0.08p or 0.12p
per share.
Prior to 22 May 2017 the company issued 3,222,649,508
0.01p shares in addition to warrants exercised.
On 22 May 2017 the company consolidated its
shares into 0.25p ordinary shares on the basis
of one 0.25p ordinary share per every 25 0.01p
ordinary shares.
On 2 June 2017 the company issued 100,570,824
0.25p ordinary shares.
8. Share premium account
30 June 30 June 31 December
2017 2016 2016
GBP GBP GBP
1 January 2017 17,621,763 16,628,623 16,628,623
Premium arising on
the issue of equity
shares 7,918,921 629,082 1,003,029
Transaction costs (101,320) (9,889) (9,889)
30 June 2017 25,439,364 17,247,816 17,621,763
9. Warrants over ordinary shares
Details of the tranches of warrants outstanding
at the period-end are as follows:
Date of 01/01/2017 Issued/ 30/06/2017 Date from Lapse Exercise
grant which
Number lapsed Number warrants date price
of in of may be per
warrants the warrants first warrants
year exercised
08/05/2015 368,000 (368,000) - 08/05/2015 28/05/2017 37.50p
08/05/2015 160,000 - 160,000 08/05/2015 28/05/2018 30p
28/05/2015 1,232,000 (1,232,000) - 28/05/2015 28/05/2017 37.50p
21/07/2015 348,961 (348,961) - 21/07/2015 28/05/2017 37.50p
16/11/2015 5,333,333 - 5,333,333 16/11/2015 18/11/2017 25p
16/11/2015 240,000 - 240,000 16/11/2015 18/11/2018 18p
09/12/2016 25,000 (25,000) - 09/12/2016 09/12/2018 3p
09/12/2016 15,246,290 (14,746,291) 499,999 09/12/2016 09/12/2018 2p
09/03/2017 - 2,400,000 2,400,000 09/03/2017 09/03/2022 1.625p
09/03/2017 - 61,538,462 61,538,462 09/03/2017 09/03/2022 3p
20/04/2017 - 3,000,000 3,000,000 20/04/2017 20/04/2022 1.625p
22/05/2017 - 218,785,185 218,785,185 22/05/2017 22/05/2022 1.52p
A charge to the profit and loss account has
been taken in compliance with IFRS2 in respect
of the fair value of warrants
issued to brokers in relation to fundraising
services provided.
10. Loans due in over one year
30 June 30 June 31 December
2017 2016 2016
GBP GBP GBP
5 year secured bonds 9,416,280 - -
Other Loans 829,359 - -
10,245,639 - -
On 22 May 2017 the Company announced that Greenbury
S.A. ("Greenbury") had subscribed for a 5-year non-amortising
secured bonds with an aggregate issue value of approximately
GBP16 million (the "Bonds"). Alongside the Bonds,
the company issued 169,402,469 warrants to subscribe
for new ordinary shares in the Company at an exercise
price of 15.1875 pence (on a post consolidated basis)
per ordinary share and an exercise period of approximately
five years, concurrent with the term of the Bonds,
to Greenbury (the "Warrants"). The Bonds are secured
over the share capital of Echo Energy Plc. The Bonds
have an 8% coupon and were issued at a 20% discount
to par value, A total cash fee of approximately GBP1.7
million (EUR2 million) was payable by the Company.
The warrants were recorded within equity at fair
value on the date of issuance and the proceeds of
the notes net of issue costs were recorded as non-current
liability. The coupon rate of 8% for the Bonds ensures
that the Company's on-going cash out-flow on interest
payments remains low, conserving the Company's cash
resources. The effective interest rate is approximately
21.55%. The 5-year secured Bonds are due in May 2022.
11. Discontinued operations
Following the relaunch in March 2017, a strategic
review of the existing assets was undertaken.
Specifically, and as a result of the company
stated agreement to avoid conflict of interest
between Sound Energy plc and its officers which
includes Echo exiting its Italian business,
the directors have decided to terminate and
exit all activities in Italy. The Italian interests
have therefore been classified as discontinued.
On the 15th of June 2017, the Company announced
it had entered into an agreement to sell its
25% effective working interest in its Egyptian
East Ghazalat licence to its Joint Venture
partner, Nostra Terra Oil & Gas plc (the buyer).
The sale was for a total consideration of USD
$500,000, split into three tranches. A payment
of USD $100,000 is due when the Egyptian General
Petroleum Corporation approves the registration
of any member of the buyer's Group as a party
to the concession. The balance of the consideration
is payable in two tranches triggered upon achievement
of two performance milestones, namely production
of 800 bopd from the area for 30 consecutive
days and production of 1,000 bopd from the
area for 30 consecutive days.
The consideration is payable in either cash
or shares. Where the consideration is shares,
the quantity of shares issued shall be determined
by dividing the relevant consideration by the
lower of: (i) the mid-market closing price
of the buyer shares as traded on AIM on the
dealing day prior to the date of this Agreement;
and (ii) the mid-market closing price of the
buyer shares as traded on AIM on the dealing
day prior to the date upon which the relevant
Consideration is payable.
The results of the Italian and Egyptian operations,
incorporating consolidation adjustments, are
presented below:
30 June 31 December
2017 30 June 2016 2016
GBP GBP GBP
Revenue - - -
Administrative expenses - (15,538) (5,770,580)
Operating loss before impairment - (15,538) (5,770,580)
Impairment of the Investment
in joint venture assets (24,759) (137,906) -
Impairment of goodwill arising
on acquisition of Independent
Energy - - -
Solutions srl - consolidation
adjustment
Operating loss after impairment (24,759) (153,444) (5,770,580)
Financial income - 45,200 3,259
Financial expense - (41,748) -
Share of post-tax losses
of equity
accounted joint ventures - - (137,906)
Loss on ordinary activities
before taxation (24,759) (149,992) (5,905,227)
Taxation - - -
Loss for the year from discontinued
operations (24,759) (149,992) (5,905,227)
The major classes of assets and liabilities
of Italian operations classified as held for
distribution to equity holders of the
parent as at 30 June 2017 are as follows:
30 June 31 December
2017 30 June 2016 2016
GBP GBP GBP
Assets
Intangible assets - fully
impaired - - -
Property, plant and equipment - 9 -
Work in progress on Approved
Projects - 5,574,375 -
Other receivables 89,042 99,643 86,686
Cash and cash equivalents 2,766 6,834 2,685
Assets held for distribution 91,808 5,680,861 89,371
Liabilities
Trade and other payables - (2,559) -
Other and social security (824) - -
Accruals (11,040) (44,844) (11,548)
Liabilities directly associated
with the assets held for
distribution (11,864) (47,403) (11,548)
Net assets directly associated
with disposal group 79,944 5,633,458 77,823
The net cash flows incurred by Italian operations
are as follows:
Six Months Year
to 30 Six Months to 31
June to 30 June December
2017 2016 2016
GBP GBP GBP
Operating 81 (1,238) (1,958)
Investing - - -
Financing - - -
Net cash (outflow)/inflow 81 (1,238) (1,958)
Loss per share (pence)
Six
Months Year
to 30 Six Months to 31
June to 30 June December
2017 2016 2016
Liabilities directly associated
with the assets held for
distribution (0.0) (0.7) (15.2)
Liabilities directly associated
with the assets held for
distribution (0.0) (0.7) (15.2)
Immediately before the classification of Italian
operations as discontinued operations, the
recoverable amount was estimated for certain
items of property, plant and equipment and
no impairment was identified. No adjustment
has been made to reduce the carrying amount
of the assets in the disposal group to their
fair value less costs to distribute.
Immediately before the classification of Italian
operations as discontinued operations, the
recoverable amount was estimated for the operations
intangible assets and these were impaired in
full.
12. Events arising after the reporting period
On the 5th July 2017 Echo announced the appointment
of Fiona Macaulay as Chief Executive Officer
and Director of the Company. Fiona has over
30 years of experience in the oil and gas industry,
most recently as Chief Operating Officer and
Technical Director of Rockhopper Exploration
plc.
On the 26th of July 2017, the Company announced
the signature of a Technical Evaluation Agreement
(TEA) for the Rio Salado Block, onshore Bolivia.
The TEA between the Company, Pluspetrol and
YPFB (Yacimientos Petrolíferos Fiscales
Bolivianos) was signed on 25 July 2017 at the
YPFB 2017 Gas & Oil Congress in Santa Cruz,
Bolivia. This agreement will enable the companies
to progress a technical evaluation of the block
over the next 12 months. On completion of the
Technical Evaluation the companies will have
the opportunity to negotiate a commercial agreement
with YPFB which would define a work programme
and is likely to include the drilling of an
exploration well.
The Rio Salado Block, which surrounds the
Huayco Block, contains an extension of the
structure previously identified by the Company.
As a result, the Company's seismic reprocessing
programme for the Huayco Block will now be
extended to incorporate additional data over
the Rio Salado acreage for a minimal incremental
cost over the greater Huayco area.
The acquisition of an interest by Echo Energy
in Rio Salado remains contingent on final commercial
terms being agreed and accordingly the Company
does not have an interest or the right to acquire
any interest at this stage during the non-exclusive
evaluation period
Registered office
Echo Energy plc
Tower Bridge House, St. Katharine's Way, London E1W
1DD
Email: info@echoenergyplc.com
Commercial office
4(th) Floor, 40 George Street, London, W1U 7DW
Telephone: +44 (0) 20 70 70 0447
Email: info@echoenergyplc.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR FXLLBDVFBBBX
(END) Dow Jones Newswires
August 04, 2017 02:01 ET (06:01 GMT)
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