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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Sirius Petroleum Plc | LSE:SRSP | London | Ordinary Share | GB00B03VVN93 | ORD 0.25P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 0.40 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From Apr 2019 to Apr 2024
TIDMSRSP
RNS Number : 2554C
Sirius Petroleum PLC
28 September 2018
28 September 2018
Sirius Petroleum Plc.
("Sirius" or the "Company")
Half Year Report
for the six month period ended 30 June 2018
Sirius Petroleum (AIM: SRSP), the Nigeria focused oil and gas exploration and development company, announces unaudited results for the six-month period ended 30 June 2018.
Enquiries
Sirius Petroleum plc +44 (0) 20 3740 7460 Bobo Kuti, Chief Executive www.siriuspetroleum.com Mark Henderson, Chief Financial Officer Cantor Fitzgerald Europe David Porter/Nick Tulloch +44 (0) 20 7894 7000 Gable Communications +44 (0) 20 7193 7463 John Bick Email: srsp@gablecommunications.com
Half Year Statement
The interim results for the six month period ended 30 June 2018 reflect the costs incurred during the period to continue to build the operational Ororo infrastructure, funding the contracted operation team and planning work on the Ororo Field, in collaboration with our Technical Advisors, and our Nigerian partners, Owena Oil & Gas Limited and Guarantee Petroleum Company Limited, and our London and Nigerian operations.
The operating loss in the half year amounted to $3,003,000, an increase of $2,040,000 on the six months to 30 June 2017 operating loss of $963,000 (year to 31 December 2017: $2,147,000) giving a loss per share of 0.08 cents (30 June 2017: 0.04 cents loss per share, 31 December 2017: 0.09 cents loss per share).
Group Strategy
The Board continues to appraise opportunities to farm into or acquire high quality assets located in major proven complexes leveraging on the Group's arrangements with its range of operational and asset funding partners.
Nigeria continues to present an attractive investment proposition for inward investment institutions, evidenced by the range of prospective debt funding partners we have consulted with during the period, particularly against the backdrop of the region's history of delivering strong levels of operational cash flows, referenced by consultants Wood Mackenzie, stating that contractors operating in the country have been cash flow break even or better in every year since 1975 and goes on to say that they have generated some US$100 billion in net cash flow.
We also concur with further industry analysis that points to an improving economic and political environment in-country, evidenced by the approval of the National Gas Policy in 2017 and more recently, whilst the Senate approval of the Petroleum Industry Bill (PIB) was an affirmative step. The PIB has subsequently been sub-divided into four Bills as follows: Petroleum Industry Governance Bill (PIGB), Petroleum Industry Administration Bill (PIAB), Petroleum Industry Fiscal Bill (PIFB) and Petroleum Host Community Bill (PHCB) have now gone through a second reading in Parliament's upper chamber. Whilst the expectation appears to be that the bills will be enacted in 2018, the progress made to date represents significant strides in the stature of the resulting regulatory environment for the industry. We believe this can only enhance a climate that encourages increasing levels of inward investment into the Nigerian E&P sector whether that is into existing assets, working with indigenous co-owners, or through the next proposed marginal bid round, which was originally expected to take place earlier in 2018. Regardless of timing, which will ultimately be appropriately prescribed by the Department of Petroleum Resources, we believe that Sirius will be well positioned alongside indigenous partners to participate in the next marginal round.
The development of the Ororo Field is the first of the Company's marginal field developments, in line with the Group's strategy to target proven opportunities and maximize hydrocarbon production and recovery from proven discovered assets in Nigeria. The company's strategy remains focused on appraising shallow water offshore areas where Sirius can also realise upside potential for all stakeholders in potential assets through appraisal and development activities.
Ororo - OML 95
The Ororo-2 well is planned to penetrate all of the D sands with the top three sands (D1, D2 and D3) being sampled and pressure tested. The objectives of the tests are to determine GOCs, the pressure regimes, fluid compositions, and in situ gasoil ratios to gain confidence for the full field development.
In its Competent Persons Report ("CPR"), Rockflow Resources Limited ("Rockflow") has estimated that the Ororo-2 well will target a total stocktank oil initially in place ("STOIIP") of 2.98 mmbbls in the G sands within the Ororo Field (at a midcase scenario). Drilling of the Ororo-2 well is expected to take approximately 45 days from mobilisation of the drilling rig to the Ororo-2 site.
During the extended well testing ("EWT") phase, the Ororo-2 well is expected to initially produce into a temporary well test production facility mounted on a barge. Hydrocarbon production is expected to be treated (degassing and dehydration) to standard specifications for shuttle tanker transportation via the production facility and barge. Separate oil storage capacity is expected to be provided on the barge to store up to 10 days' production (approximately 50,000 bbls).
As originally stated in the Admission document sent to shareholders in November 2017, following completion of the Ororo-2 well and conditional on further funding being obtained, the Ororo-2 drilling rig is intended to proceed to drill the Ororo-3 well, which is proposed to target the D sand reservoir sequence.
The Company has today made a brief announcement updating shareholders on the current rig status for the Ororo field drilling programme due to commence in Q4 2018.
Corporate Governance Update
Sirius Petroleum has also recently updated the Corporate Governance practices of the Company in line with Quoted Company Alliance guidelines. See the Company's website at: www.siriuspetroleum.com.
Board and Management Team
During the period there were no changes to the Board and Senior Management composition.
Finance
During the period the Company continued to progress the proposed development debt funding discussions with a number of international financial institutions. This process is being led by Reyl et Cie, in relation to development of the Ororo field as has been previously announced.
Outlook
During the first half of year and to date the shore-based work streams have continued in association with the Group's operational partners to make all available resources available for the commencement of the Ororo development programme, pending the availability of a rig to commence drilling in 2018 at Ororo-2.
In line with our strategy we are continuing to appraise assets with production growth, appraisal and exploration potential.
We will continue to work towards delivering on the Company's strategy, to build a portfolio of assets with like minded asset owners where we can match development capital to enable good near term production and build solid development potential and appraisal prospects.
J Pryde
Chairman
O Kuti
Chief Executive Officer
28 September 2018
SIRIUS PETROLEUM PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIODED 30 JUNE 2018
Hot Features
Premium
Note Unaudited Unaudited Audited
Period ended Period ended Year ended
30 June 30 June 31 December
2018 2017 2017
US$'000 US$'000 US$'000
Other income 27 33 59
Share based payments (1,367) - (465)
Other administrative
expenses (1,663) (996) (1,741)
Total administrative
expenses (3,030) (996) (2,206)
Loss from operations (3,003) (963) (2,147)
Finance costs (1) (29) (122)
-------------- -------------- -------------
Loss before taxation (3,004) (992) (2,269)
Taxation 2 - - -
-------------- -------------- -------------
Loss after taxation
and loss attributable
to the equity holders
of the Company (3,004) (992) (2,269)
Other comprehensive
income
Exchange differences
on translating foreign
operations (6) (13) (36)
Total comprehensive
loss for the period/year (3,010) (1,005) (2,305)
-------------- -------------- -------------
Loss per share
Total basic and diluted
(cents per share) 3 (0.08) (0.04) (0.09)
-------------- -------------- -------------
SIRIUS PETROLEUM PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIODED 30 JUNE 2018
Share Share Share-based Other Exchange Retained Total
capital premium payment reserves reserve earnings equity
account reserve
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
Balance at 1
January
2017 8,927 25,749 2,596 11 (229) (36,943) 111
Issue of share
capital 886 1,728 - - - - 2,614
Share issue costs - (140) - - - - (140)
Transactions with
owners 886 1,588 - - - - 2,474
----------- ---------------- ------------ --------------- ---------------- ----------------- --------
Loss for the
period - - - - - (992) (992)
Other
comprehensive
loss for the
period - - - - (13) - (13)
Balance at 30
June
2017 9,813 27,337 2,596 11 (242) (37,935) 1,580
----------- ---------------- ------------ --------------- ---------------- ----------------- --------
Share issue 3,397 8,347 - - - - 11,744
Share issue costs - (468) - - - - (468)
Share based
payments - - 465 - - - 465
Transfer on lapse
of share
options/warrants - - (339) - - 339 -
Transfer on
repayment
of loan fees
equity
instruments - - - (11) - 11 -
Transactions with
owners 3,397 7,879 126 (11) - 350 11,741
----------- ---------------- ------------ --------------- ---------------- ----------------- --------
Loss for the
period - - - - - (1,277) (1,277)
Other
comprehensive
income for the
period - - - - (23) - (23)
Balance at 31
December
2017 13,210 35,216 2,722 - (265) (38,862) 12,021
----------- ---------------- ------------ --------------- ---------------- ----------------- --------
Share based
payments - - 1,367 - - - 1,367
Transfer on lapse
of share
options/warrants (11) 11 -
Transactions with
owners - - 1,356 - - 11 1,367
----------- ---------------- ------------ --------------- ---------------- ----------------- --------
Loss for the
period - - - - - (3,004) (3,004)
Other
comprehensive
income for the
period - - - - (6) - (6)
Balance at 30
June
2018 13,210 35,216 4,078 - (271) (41,855) 10,378
----------- ---------------- ------------ --------------- ---------------- ----------------- --------
SIRIUS PETROLEUM PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2018
Unaudited Unaudited Audited
30 June 30 June 31 December
2018 2017 2017
Assets Note US$'000 US$'000 US$'000
Non-current
Intangible exploration
and evaluation assets 4 18,037 6,901 10,554
Property, plant
and equipment 5 800 17 13
---------- ---------- -------------
18,837 6,918 10,567
Current
Cash and cash equivalents 945 259 4,014
Trade and other
receivables 6 1,740 118 4,013
Total current assets 2,685 377 8,027
Total assets 21,522 7,295 18,594
Liabilities
Current
Trade and other
payables 7 10,537 4,506 6,236
Loans payable 328 1,209 337
Total current liabilities 10,865 5,715 6,573
Liabilities due
after one year 279 - -
Total liabilities 11,144 5,715 6,573
Equity
Issued share capital 8 13,210 9,813 13,210
Share premium 35,216 27,337 35,216
Share based payment
reserve 4,078 2,596 2,722
Other reserve - 11 -
Exchange reserve (271) (242) (265)
Retained earnings (41,855) (37,935) (38,862)
---------- ---------- -------------
Equity attributable
to owners of the
company 10,378 1,580 12,021
Total equity and
liabilities 21,522 7,295 18,594
SIRIUS PETROLEUM PLC
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE PERIODED 30 JUNE 2018
Unaudited Unaudited Audited
Period Period Year ended
ended ended
30 June 30 June 31 December
2018 2017 2017
US$'000 US$'000 US$'000
Operating activities
Loss after tax (3,004) (992) (2,269)
Depreciation 90 3 6
Finance cost 1 29 122
Decrease/(increase) in trade
and other receivables 2,273 106 (879)
Equity settled share-based
payments 1,367 - 465
Expenses settled in shares - - 680
Increase/(decrease) in trade
and other payables 3,729 102 (440)
Net cash inflow/(outflow) from
operating activities 4,456 (752) (2,315)
---------- ---------- ------------
Investing activities
Purchase of property, plant
and equipment (364) (1) (1)
Investment in intangibles (7,483) (2,258) (3,525)
Net cash outflow from investing
activities (7,847) (2,259) (3,526)
---------- ---------- ------------
Financing activities
Proceeds from issue of share
capital - 2,494 9,230
Share issue costs - (109) (608)
Finance cost (3) - (48)
Loans received 331 88 526
Net cash inflow from financing
activities 328 2,473 9,100
---------- ---------- ------------
Net change in cash and cash
equivalents (3,063) (538) 3,259
Cash and cash equivalents at
beginning of period 4,014 830 830
Exchange difference on cash
and cash equivalents (6) (33) (75)
Cash and cash equivalents at
end of period 945 259 4,014
---------- ---------- ------------
SIRIUS PETROLEUM PLC
NOTES TO THE INTERIM REPORT
FOR THE PERIODED 30 JUNE 2018
The financial information set out in this interim report does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. The Group's statutory financial statements for the year ended 31 December 2017 have been completed and filed at Companies House. The auditor's report on the annual financial statements was unqualified and did not contain statements under section 498(2) or section 498(3) of the Companies Act 2006.
1. ACCOUNTING POLICIES
Basis of preparation
The Company's ordinary shares are quoted on the AIM market of the London Stock Exchange and the Company applies the Companies Act 2006 when preparing its annual financial statements.
The annual financial statements for the year ending 31 December 2018 will be prepared under International Financial Reporting Standards as adopted by the European Union (IFRS) and the principal accounting policies adopted remain unchanged from those adopted in preparing its financial statements for the year ended 31 December 2017.
The accounting policies have been applied consistently throughout the Group for the purposes of preparation of these condensed consolidated interim financial statements. IFRS 9 - Financial Instruments, IFRS 15 - Revenue from contracts with customers and IFRS 16 - Leases have been applied from 1 January 2018. The impact of adopting IFRS 9 and IFRS 15 are not significant. The impact of IFRS 16 has been to recognise the property lease as a right-of-use asset of $570,000, with a lease liability of $483,000 of which $279,000 is due after one year. A depreciation charge has been recognised in the income statement of $53,000. As there were no assets leased prior to the period no adjustments were necessary.
Going concern
The directors have prepared cash flow projections through to 30 September 2019. These projections take into account the Reyl facility. These projections forecast revenue streams and costs based on the Competent Person's Report produced, and demonstrate the total funding level required.
The cash flow projections indicate that the Group has sufficient headroom to meet its immediate working capital requirements. On the basis of the assumptions above and following a detailed review by the directors of the Group's cash flow forecast, the directors believe that the Group will have sufficient cash resources to meet its liabilities as they fall due for a period of at least 12 months.
Segmental reporting
An operating segment is a distinguishable component of the Group that engages in business activities from which it may earn revenues and incur expenses, whose operating results are regularly reviewed by the Group's Chief Executive Officer to make decisions about the allocation of resources and assessment of performance and about which discrete financial information is available.
The Chief Executive Officer reviews financial information for and makes decisions about the Group's performance as a whole, as the Group has not generated revenue during the period.
Subject to further acquisitions and the future development of the business in Nigeria the Group expects to further review its segmental information during the forthcoming financial year.
2. TAXATION
No tax is due for the period as the Company has made a taxable loss. The Directors expect these losses to be available to offset against future taxable trading profits. The Group has not recognised any deferred tax asset at 30 June 2018 (30 June and 31 December 2017: GBPnil) in respect of these losses on the grounds that it is uncertain when taxable profits will be generated by the Group to utilise any such losses.
3. LOSS per share
The calculation of the basic loss per share is based on the loss attributable to ordinary shareholders divided by the weighted average number of shares in issue during the period. The impact of the options and warrants on the loss per share is anti-dilutive.
Unaudited Unaudited Audited
six months six months year ended
ended ended
30 June 30 June 31 December
2018 2017 2017
Loss on ordinary activities
after tax ($'000) (3,004) (992) (2,269)
----------------- ----------------- -----------------
Weighted average number
of shares for calculating
basic loss per share 3,555,965,801 2,460,957,699 2,550,274,003
----------------- ----------------- -----------------
Basic and diluted loss
per share (US cents) (0.08) (0.04) (0.09)
----------------- ----------------- -----------------
4. INTANGIBLE EXPLORATION AND EVALUATION ASSETS
Cost of oil and gas exploration - pending determination
US$'000
Cost
At 1 January 2017 4,643
Additions 2,258
At 30 June 2017 6,901
Additions 3,653
At 31 December 2017 10,554
Additions 7,483
At 30 June 2018 18,037
------------------------
Amortisation and impairment
At 1 January 2017, 30 June 2017, 31 December 2017
and 30 June 2018 -
------------------------
Net book value at 30 June 2018 18,037
------------------------
Net book value at 31 December 2017 10,554
------------------------
Net book value at 30 June 2017 6,901
------------------------
During the year ended 31 December 2011 Sirius Ororo OML95 Limited entered into an agreement with Guarantee Petroleum Company Limited and Owena Oil and Gas Limited which gives it the right to acquire a 40% interest in the Ororo Oil Field.
The Group has undertaken certain works including commissioning the preparation of a Competent Persons Report and has conducted an environmental impact assessment. It has also commenced planning appropriate community projects and site surveys to finalise the subsequent drilling programme and will also cover certain operational costs related to the field. Under the agreement with our partners, the Group will cover all costs of this phase of the project. Costs plus interest of LIBOR+3% will be recoverable on the production of oil before the profit interest split is applied; these costs are being added to the costs of the asset.
The Directors have reviewed the investment for impairment. On 8 September 2016, the Group announced that an independent valuation of the Ororo field prepared by Rockflow Resources Limited, gave a mid-case net present value of the asset of $49.2m based on a $50 per barrel flat real oil price for the life of the field, and a low case net present value of $8.5m. This valuation was confirmed in the updated CPR in our admission document dated 30 November 2017. These valuations were recalculated at $65 per barrel and resulted in a low case net present value of $32.9m and a mid-case net present value of $96.1m. These valuations support the value of the investment held on the Statement of Financial Position and support the view that no impairment triggering events have occurred.
The Group intends investing further amounts into the Ororo Oil Field, as part of its strategic development plans. The costs of the capital and operating costs will be covered by either separate funding facilities or by financial and technical industry partners on a joint farm-in basis.
5. property, plant ant equipment
Computer Office
Leasehold equipment equipment Motor Total
Property Equipment Equipment Vehicles
$' 000 $' 000 $'000 $'000 $'000
Cost
At 1 January 2017 - 50 29 27 106
Additions - 1 - - 1
Exchange difference - - - (1) (1)
At 30 June 2017 - 51 29 26 106
----------------- ------------------- ------------------- ------------ ------------
Additions - - - - -
Exchange difference - - - (1) (1)
At 31 December 2017 - 51 29 25 105
----------------- ------------------- ------------------- ------------ ------------
Additions 570 27 281 - 878
Exchange difference - - - (1) (1)
Cost at 30 June 2018 570 78 310 24 982
================= =================== =================== ============ ============
Depreciation
At 1 January 2017 - 50 29 7 86
Charge for the
period - - - 3 3
At 30 June 2017 - 50 29 10 89
----------------- ------------------- ------------------- ------------ ------------
Charge for the
period - 1 - 2 3
At 31 December 2017 - 51 29 12 92
----------------- ------------------- ------------------- ------------ ------------
Charge for the
period 53 11 24 2 90
At 30 June 2018 53 62 53 14 182
================= =================== =================== ============ ============
Net book value
Balance at 30 June
2018 517 16 257 10 800
----------------- ------------------- ------------------- ------------ ------------
Balance at 31
December
2017 - - - 13 13
----------------- ------------------- ------------------- ------------ ------------
Balance at 30 June
2017 - 1 - 16 17
----------------- ------------------- ------------------- ------------ ------------
Balance at 1 January
2017 - - - 20 20
----------------- ------------------- ------------------- ------------ ------------
6. trade and other receivables
Unaudited Unaudited Audited
30 June 30 June 31 December
2018 2017 2017
US$'000 US$'000 US$'000
Other receivables 422 66 3209
Prepayments and accrued
income 1,318 52 804
---------------------
Total 1,740 118 4,013
--------------------- ---------- ------------
Other receivables are usually due within 30 - 60 days and do not bear any effective interest rate. The fair value of these short term financial assets is not individually determined as the carrying amount is a reasonable approximation of fair value.
7. trade and other PAYABLES
Unaudited Unaudited Audited
30 June 2018 30 June 2017 31 December
2017
US$'000 US$'000 US$'000
Trade payables 7,945 1,022 3,803
Other payables 1,586 611 1,099
Accruals 1,006 2,873 1,334
Total 10,537 4,506 6,236
---------------------- ---------------------- ----------------------
The fair value of trade and other payables has not been disclosed as, due to their short duration, management considers the carrying amounts recognised in the balance sheet to be a reasonable approximation of their fair value.
8. SHARE CAPITAL
The movement in ordinary shares and share premium in the period was as follows:
Nominal amount Share premium
Number (USD $'000) (USD $'000)
As at 1 January 2017 2,258,029,523 8,927 25,749
Shares issued for cash 266,666,666 832 1,663
Loan repayments 14,000,000 44 44
Fees paid in shares 3,333,333 10 21
Share issue costs - - (140)
At 30 June 2017 2,542,029,522 9,813 27,337
-------------- --------------- --------------
Shares issued for fees
due 60,989,850 204 445
Shares issued for cash 723,700,000 2,426 7,279
Loan repayments 229,246,429 767 623
Share issue costs - - (468)
At 31 December 2017 3,555,965,801 13,210 35,216
-------------- --------------- --------------
At 30 June 2018 3,555,965,801 13,210 35,216
-------------- --------------- --------------
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 DBGDCRUDBGIR
(END) Dow Jones Newswires
September 28, 2018 02:03 ET (06:03 GMT)
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