Share Name Share Symbol Market Type Share ISIN Share Description
Mustang Energy Plc LSE:MUST London Ordinary Share GB00BJ9MHH56 ORD 1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.0% 16.25 15.50 17.00 16.75 14.75 16.25 371,689 15:32:44
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Nonequity Investment Instruments 0.0 -0.2 -0.1 - 1

Mustang Energy PLC Half-year Report

05/10/2020 7:00am

UK Regulatory (RNS & others)

Mustang Energy (LSE:MUST)
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RNS Number : 0226B

Mustang Energy PLC

05 October 2020

Monday 5 October 2020

Mustang Energy PLC

Mustang Energy PLC

5 October 2020

Mustang Energy PLC

Interim Results Half Year to 30 June 2020

Mustang Energy PLC (the "Company"), the special purpose acquisition company, announces its unaudited interim results for the half year ended 30 June 2020.

Copies of this interim report will be made available on the Company's website,


For further information, please visit , follow us on Twitter @Mustang_Plc , or contact:

Mustang Energy PLC

Dean Gallegos, Managing Director

+61 416 220 007

Optiva Securities (Broker)

Jeremy King

+44(0)203 137 1904

Interim Management Report

The Company was formed to undertake an acquisition of a target business, or asset(s) with operations in the energy or natural resources sectors.

As you are aware the Company's shares began trading on the standard list of the London Stock Exchange on the 29 July 2019 after raising GBP750,000. Even though the Company has only been funded for just over 12 months we have been active in executing the Company's objectives as outlined in the Company's Prospectus.

The Directors believe that their network and profile following Admission mean that the Company will be able to target an Acquisition where the target company or business or asset(s) has a transaction value of between GBP2 million and GBP50 million.

The Company's determination in identifying a prospective target company or business or asset(s) in the energy or natural resources sectors will not be limited to a specific geographic region, stage of development from exploration through to production. However, it is the Company's preference that the target is generating cashflow or has the capability of generating cash flow within 12-18 months of acquisition.

As previously advised the Company completed due diligence in late 2019 on a number of assets located in the USA, all of these assets were in production and had development upside. Bids were placed on the assets in a competitive bidding process however the Company was not successful in those instances. In early 2020 the Company had initiated discussions with a number of companies in respect to acquiring non-operated, minority interests in assets located in western Europe.

Since that time the effects of the COVID-19 virus and the oil price war between Saudi Arabia and Russia meant that oil prices materially declined and still remain approximately 30% below levels seen at the start of 2020. The Company believes that the effect of this will mean companies that were seeking to divest assets will wait until the oil price recovers to a more attractive level, it is the Company's view that this level will be a Brent oil price of at least US$50 barrel. It is unknown how long this recovery will take and therefore the Company will expand its search for appropriate acquisition targets to the entire value chain of the energy industry and not just the upstream sector. It will also consider potential acquisitions outside of the energy and natural resources industries.

The Directors collectively have an interest of 29.2% in the Company and therefore have a vested interest to ensure the Company's first acquisition is the right one. The Company will remain diligent in minimising its overheads by reducing administration charges wherever possible. I look forward to communicating with you further once a suitable acquisition has been identified and secured by the Company.

Alan Broome, AM Chairman

Statement of Directors' Responsibilities

The directors are responsible for preparing the interim report in accordance with applicable law and regulations. The directors confirm that the condensed interim financial information has been prepared in accordance with International Accounting Standard 34 ('Interim Financial Reporting') as adopted by the European Union.

The interim management report includes a fair review of the information required by the Disclosure and Transparency Rules paragraphs 4.2.7 R and 4.2.8 R, namely:

-- the interim condensed financial statements, which have been prepared in accordance with applicable accounting standards, give a true and fair view of the assets, liabilities, financial position, and profit or loss of the issuer as required by DTR 4.2.4R; and

- an indication of important events that have occurred during the six months ended 30 June 2020 and their impact on the condensed set of financial information, and a description of the principal risks and uncertainties for the remaining six months of the year; and

-- material related-party transactions during the six months ended 30 June 2020 and any material changes in the related-party transactions described in the Annual report and accounts 2019.

The directors of the company are listed in the interim condensed financial statements.

The directors are responsible for the maintenance and integrity of, amongst other things, the financial and corporate governance information.

The interim condensed financial statements have been prepared on a going concern basis.

The interim report was approved by the Board of Directors and authorised for issue on 5 October 2020 and signed on its behalf by:

Dean Lloyd Gallegos


Date: 5 October 2020

Statement of Comprehensive Income

                                                                       Period                                 Period ended 
                                                                       30 June 20                               31 July 19 
                                                                       (unaudited)                             (unaudited) 
  Administrative expenses                                              (94,859)                                  (142,827) 
  Operating loss                                                        (94,859)                                 (142,827) 
  Interest income                                                                -                                       - 
    Loss before taxation                                                 (94,859)                                (142,827) 
    Taxation                                                                            - - 
  Loss for the period                                                                                   (94,859) (142,827) 
  Other comprehensive income                                                                                         - - 
   for the period 
  Total comprehensive loss or 
   the period attributable to 
   the equity owners                                                                                    (94,859) (142,847) 
    Loss per share from continuing 
    operations attributable to 
    the equity owners 
  Basic loss per share                                                                 (0.01) (0.20) 
   Diluted loss per share                                                               (0.01) (0.20) 
   (pence per share) 

Statement of Financial Position

                                                                As at                As at 
                                                         30 June 2020     31 December 2019 
                                                          (unaudited)            (audited) 
                                                Note              GBP                  GBP 
    Non-current assets 
    Property, plant and equipment                                 360                  551 
  Total non-current assets                                        360                  551 
    Current assets 
  Trade and other receivables                   4              39,242               31,282 
  Cash and cash equivalents                                   404,451              516,557 
  Total current assets                                        443,693              547,839 
  Total assets                                                444,053              548,390 
  Equity and liabilities 
   Equity attributable to shareholders 
  Share capital                                                     84,000            84,000 
  Share premium                                                    654,000           654,000 
  Share based payments reserve                                      48,986            27,471 
  Retained deficit                                               (364,471)         (269,612) 
  Total equity                                               422,515                 495,859 
  Current liabilities 
   Trade and other payables                       5                          21,538 52,531 
  Total liabilities                                                          21,538 52,531 
  Total equity and liabilities                                           444,053 548,390 

Statement of Changes in Equity

                                                                                      Share based 
                                                       Share premium                     payments 
                                        Share          account                            reserve             Retained          Total 
                                        capital                                                                deficit          equity 
                                             GBP                  GBP                         GBP                  GBP              GBP 
 ------------------------------  ----------------  ------------------  --------------------------  -------------------  --------------- 
  On 31 January 2019                            -                   -                           -             (74,148)         (74,148) 
                                                                                                   -------------------  --------------- 
    Period ended 31 December 
    Total comprehensive loss 
    for the period                              -                   -                           -            (195,464)        (195,464) 
-------------------------------  ----------------  ------------------  -------------------------- 
  Issue of share capital                   84,000             654,000                           -                    -          738,000 
   Share based payment                          -                   -                      27,471                    -           27,471 
-------------------------------  ----------------  ------------------  -------------------------- 
   Balance as at 31 December 
    2019                                   84,000             654,000                      27,471            (269,612)          495,859 
-------------------------------  ----------------  ------------------  --------------------------  -------------------  --------------- 
  Period ended 30 June 2020 
   Total comprehensive loss 
   for the period                               -                   -                           -             (94,859)         (94,859) 
  Share based payment                           -                   -                      21,515                    -           21,515 
-------------------------------  ----------------  ------------------  --------------------------  -------------------  --------------- 
   Balance as at 30 June 2020              84,000             654,000                      48,986            (364,471)          422,515 
-------------------------------  ----------------  ------------------  --------------------------  -------------------  --------------- 

Statement of Cash Flows

                                                    6 months to 30         6 months to 
                                                         June 2020 
                                                       (unaudited)        31 July 2019 
                                           Note                GBP                 GBP 
    Cash (absorbed by) from operations                   (112,106)                (20) 

Cash flow from operating activities

  Cash (absorbed by) from operations               10     (112,106)                   (20) 
  Cash flow from operating activities                     (112,106)                  (20) 
                                                       ----------------  ----------------- 
  Investing activities 
  Purchase of property, plant and equipment                           -               - 
  Net cash (used) in investing activities                          -                  - 
                                                       ----------------  ----------------- 
  Financing activities 
  Proceeds from issue of shares (net of 
   share issue costs)                                              -            275,301 
  Repayment of loans and borrowings                                -                 - 
  Proceeds from loans and borrowings                               -                 - 
  Net cash generated from financing activities                     -            275,301 
                                                       ----------------  ----------------- 
  Net increase (decrease) in cash and 
   cash equivalents                                      (112,106)              275,281 
                                                       ----------------  ----------------- 
  Cash and cash equivalents at beginning                  516,557                   - 
   of period 
                                                       ----------------  ----------------- 
  Cash and cash equivalents at end of 
   period                                                 404,451               275,281 
                                                       ----------------  ----------------- 
   1      Notes to the interim financial statements 

General information

Mustang Energy PLC (the "Company") is a Public Limited Company incorporated and domiciled in England and Wales. The interim condensed financial statements for the six months ended 30 June 2020. The address of the Company's registered office is 48 Chancery Lane, c/o Keystone Law, London, WC2A 1JF. The interim condensed financial statements of the Company were authorised for issue in accordance with a resolution of the Directors on 5 October 2020.

These interim condensed financial statements do not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006. The unaudited statutory accounts for the period ended 31 December 2019 have been delivered to the Registrar of Companies in England and Wales and are publicly available on the Company's website: The interim condensed financial statements have been prepared on a going concern basis.

   1.1    Accounting convention 

The Interim Financial Statements are for the six months ended 30 June 2020 and have been prepared in accordance with IAS 34 'Interim Financial Reporting'. They do not include all of the information required in annual financial statements in accordance with IFRS, and should be read in conjunction with the financial statements for the period ended 31 December 2019.

The financial statements have been prepared under the historical cost convention.

   1.2    Accounting policies, critical estimates and judgements 

The accounting policies, methods of computation, critical estimates and judgements followed in the interim financial statements are in accordance with those followed in preparing the financial statements for the period ended 31 December 2019.

No new accounting policies were adopted since the preparation of the financial statements for the period ended 31 December 2020.

2 Adoption of new and revised standards and changes in accounting policies Standards which are in issue but not yet effective

In the current period, the following new and revised Standards and Interpretations have been adopted by the company for the first time. These have been considered by the directors and deemed not to have a material impact on the current, previously reported, or future financial position and performance of the company.

   --      Amendments to References to the Conceptual Framework in IFRS Standards 

At the date of authorisation of these financial statements, the following Standards and interpretations, which have not yet been applied in these financial statements, were in issue but not yet effective:

   --      IFRS 3 - Amendments updating a reference to the Conceptual Framework 
   --      IAS 1 - Amendments regarding the classification of liabilities 
   --      IAS 1 - Amendment to defer the effective date of the January 2020 amendments 

It is not anticipated that adoption of the standards and interpretations listed above will have a material impact on the current financial position and performance of the company.

   3      Loss per share 
                                                                           6 month             6 month 
                                                                    --------------  ---------------------------- 
                                                                      period ended           period ended 
                                                                    --------------  ---------------------------- 
                                                                        30 June 20            31 July 19 
                                                                    --------------  ---------------------------- 
                                                                               GBP               GBP 
                                                                    --------------  ---------------------------- 
        Number of shares 
         Weighted average number of ordinary shares 
         for basic earnings per share                                    8,400,000                       706,081 
                                                                    --------------  ---------------------------- 
          Weighted average number of ordinary shares 
          for diluted earnings per share                                9,584,615                        706,081 
                                                                    --------------  ---------------------------- 
         Loss for the period from continued operations                    (94,859)      (142,827) 
                                                                    --------------  ---------------------------- 
        Loss for basic and diluted earnings per 
         share being net profit attributable to equity 
         shareholders of the company for continued 
         operations                                                       (94,859)      (142,827) 
                                                                    --------------  ---------------------------- 
        Loss per share for continuing operations 
         Basic loss per share                                               (0.01)      (0.20) 
         Diluted loss per share                                             (0.01)       (0.20) 
                                                                    --------------  ---------------------------- 

The share options and warrants are considered to be anti-dilutive.

   4      Trade and other receivables 
                               30 June    31 December 
                             ---------  ------------- 
                                2020         2019 
                             ---------  ------------- 
                                 GBP          GBP 
                             ---------  ------------- 
        Other receivables       9,000        8,000 
                             ---------  ------------- 
        VAT recoverable        23,845       14,671 
                             ---------  ------------- 
        Prepayments             6,397        8,611 
                             ---------  ------------- 
                               39,242       31,282 
                             ---------  ------------- 

Trade and other payables

                                      30 June      31 December 
                                    ---------  ------------------ 
                                         2020          2019 
                                    ---------  ------------------ 
                                          GBP          GBP 
                                    ---------  ------------------ 
        Trade Payables                 11,163             18,245 
         Accruals                      10,375              34,286 
                                    ---------  ------------------ 
                                       21,538             52,531 
                                    ---------  ------------------ 
   5      Share-based payment transactions 

On 18 May 2020, the Company granted 350,000 Options to Jacqueline Yee, a director of the company. Each Option entitles the Option Holder to subscribe for one Ordinary Share at the Placing Price per each Ordinary Share. The Options vest when the share price of the Ordinary Shares reaches 15p. The Option Holder must exercise the Options by 5:00pm GMT on 28 July 2024, subject to the Options having vested.

The directors are of the opinion the company will achieve a share price of 15p by 31 December 2020, and therefore the Options will vest by this date. The successful acquisition of a target company is anticipated by 31 December 2020 following the expansion of searches for target companies into increased industries and areas, and the share price is expected to increase following acquisition.

The fair value of the options at their grant date has been calculated using the Black Scholes Model and a valuation for the newly granted options of GBP3,000 has been adjusted through the Share based payment reverse in equity during the current period. There has also been a fair value adjustment of GBP18,515 in the period relating to options already in existence at 31 December 2019.

   6      Events after reporting date 

There have been no material events since the reporting date that require disclosure.

   7      Directors' loans 

At the reporting date GBP9,000 (31 December 2019 - GBP9,000) was due from the directors to the company in respect of unsettled share capital. GBP6,300 (31 December 2019 - GBP6,300) was due from D L Gallegos, and GBP900 (31 December 2019 - GBP900) was each due from A J Broome, P V Wale and S W Holden. These amounts are repayable on demand, interest free and are considered fully recoverable.

In addition, a further amount of GBPnil (31 December 2019 - GBP1,000) was due to D L Gallegos. This amount was repayable on demand and interest free.

   8      Principal risks and uncertainties 

The Directors consider that the principal risks and uncertainties that could have a material effect on the Company's performance are unchanged from those identified in the Annual Report and audited financial statements for the period ended 31 December 2019.

   9      Cash generated from operations 
                                                                           6 month           6 month 
                                                                         ----------------  ----------------- 
                                                                           period ended      period ended 
                                                                         ----------------  ----------------- 
                                                                           30 June 2019      31 July 2019 
                                                                         ----------------  ----------------- 
                                                                           GBP               GBP 
                                                                         ----------------  ----------------- 
        Loss for the period after tax                                           (94,859)           (142,827) 
         Adjustments for: 
         Depreciation and impairment of property, 
          plant and equipment                                                    191                  191 
         Equity settled share-based payment expense                              21,515              86,700 
         Movements in working capital 
         (Increase)/decrease in trade and other receivables                      (7,960)             6,757 
         (Decrease)/increase in trade and other payables                         (30,993)            49,159 
                                                                             (112,106)            (20) 

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