Interim Results for the 6 months ended 30/06/2022

RNS Number : 2518B
Challenger Energy Group PLC
30 September 2022
 

30 September 2022

Interim Results for the six months ended 30 June 2022

Challenger Energy (AIM: CEG), the Caribbean and Atlantic -margin focused oil and gas company, with oil production, appraisal, development and exploration assets across the region, announces its Interim Results for six months to 30 June 2022.

 

The Interim Results are set out in full below and are also available on the Company's website https://www.cegplc.com/ .

 

 

 

For further information, please contact:

 

Challenger Energy Group PLC

Eytan Uliel, Chief Executive Officer

Tel: +44 (0) 1624 647 882

Strand Hanson Limited - Nomad

Rory Murphy / James Spinney / Rob Patrick

Tel: +44 (0) 20 7409 3494

Arden Partners plc - Broker

Simon Johnson

Tel: +44 (0) 20 7614 5900

 

CAMARCO

Billy Clegg / James Crothers / Hugo Liddy

  Tel: +44 (0) 20 3757 4980

 

Notes to Editors

Challenger Energy is a Caribbean and Atlantic margin focused oil and gas company, with a range of exploration, appraisal, development and production assets and licences, located onshore in Trinidad and Tobago, and Suriname, and offshore in the waters of Uruguay and The Bahamas. In Trinidad and Tobago, Challenger Energy has five (5) producing fields, two (2) appraisal / development projects and a prospective exploration portfolio in the South West Peninsula. In Suriname, Challenger Energy has on onshore appraisal / development project. Challenger Energy's exploration licences in Uruguay, the South West Peninsula of Trinidad, and The Bahamas offer high-impact value exposure within the overall portfolio value.

 

Challenger Energy is quoted on the AIM market of the London Stock Exchange. 

 

https://www.cegplc.com  

 

ENDS

 

Financial Statements

 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 JUNE 2022

 



Six months

ended 30 June 2022 (Unaudited)

Six months

ended 30 June 2021 (Unaudited)

Year ended

31 December 2021

(Audited)

 

Note

$ 000's

$ 000's

$ 000's

Net petroleum revenue

 

2,680

2,305

4,360

Cost of sales

 

(2,522)

(3,188)

(6,121)

Gross profit/(loss)

 

158

(883)

(1,761)


 




Administrative expenses

 

(4,720)

(4,768)

(9,098)

Impairment charges

 

-

(416)

(7,416)

Operating foreign exchange losses

 

(1,378)

(283)

(17)

Operating loss

 

(5,940)

(6,350)

(18,292)

 

 




Other income

2

8,567

-

256

Finance income

2

1,927

1

7

Finance costs

 

(275)

(5,480)

(5,630)

Profit/(loss) before taxation

 

4,279

(11,829)

(23,659)

 

 




Income tax expense

 

-

8

(38)

Profit/(loss) for the year attributable to equity holders of the parent company

 

4,279

(11,821)

(23,697)


 




Other comprehensive income/(expense)

 

 

 


Exchange differences on translation of foreign operations


1,105

(469)

(148)

Other comprehensive income/(expense) for the year net of taxation

 

1,105

(469)

(148)

Total comprehensive income/(expense) for the year attributable to equity holders of the parent company

 

5,384

(12,290)

(23,845)

 

 

 

 


Earnings/(loss) per share (cents)

 




Basic and diluted *

 

0.1

(2.19)

(3.6)

 

 




 

 

* Earnings/loss per share for the six-month period to 30 June 2022 and 30 June 2021 is stated after the effects of the 1 for 10 share consolidation which took effect on 28 May 2021.

 

All operations are considered to be continuing (see note 3).

 

The accompanying accounting policies and notes form an integral part of these financial statements.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
FOR THE SIX MONTHS ENDED 30 JUNE 2022

 

 

 

At

30 June 2022

(Unaudited)

At

30 June 2021

(Unaudited)

At

31 December 2021

(Audited)

 

Note

$ 000's

$ 000's

$ 000's

Assets

 

 

 

 

Non-current assets

 

 

 

 

Intangible exploration and evaluation assets

4

94,389

96,020

94,405

Goodwill

4

4,610

4,610

4,610

Tangible assets

5

21,874

26,152

22,748

Right of use assets

6

6

40

14

Investment in associate

 

-

47

-

Escrow and abandonment funds

 

1,601

1,344

1,564

Deferred tax asset

 

6,998

8,065

6,929

Total non-current assets

 

129,478

136,278

130,270

Current assets

 




Trade and other receivables

 

5,428

4,518

4,274

Inventories

 

270

177

259

Restricted cash

 

434

946

560

Cash and cash equivalents

 

5,308

6,957

1,555

Total current assets

 

11,440

12,598

6,648

Total assets

 

140,918

148,876

136,918

Liabilities

 




Current liabilities

 




Trade and other payables

7

(11,985)

(22,792)

(23,537)

Lease liabilities

 

(27)

(65)

(36)

Borrowings

 

(77)

(286)

(643)

Total current liabilities

 

(12,089)

(23,143)

(24,216)

Non-current liabilities

 

 

 

 

Borrowings

 

(147)

(890)

(187)

Provisions

 

(6,164)

(6,283)

(6,294)

Deferred tax liability

 

(7,009)

(8,065)

(6,941)

Total non-current liabilities

 

(13,320)

(15,238)

(13,422)

Total liabilities

 

(25,409)

(38,381)

(37,638)

Net assets

 

115,509

110,495

99,280

Shareholders' equity

 




Called-up share capital

8

2,540

218

218

Share premium reserve

8

180,272

171,411

171,734

Share based payments reserve

 

5,411

5,295

5,312

Retained deficit

 

(97,102)

(89,505)

(101,381)

Foreign exchange reserve

 

1,104

(322)

(1)

Convertible debt option reserve

 

-

114

114

Other reserves

 

23,284

23,284

23,284

Total equity attributable to equity holders of the parent company

 

115,509

110,495

99,280

 

The accompanying accounting policies and notes form an integral part of these financial statements.

These Interim Financial Statements were approved and authorised for issue by the Board of Directors on 29 September 2022 and signed on its behalf by:

 

 

 

 

Eytan Uliel

Simon Potter

Director

Director

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 30 JUNE 2022

 

Six months

ended 30 June 2022 (Unaudited)

Six months

ended 30 June 2021 (Unaudited)

Year ended

31 December 2021

(Audited)

 

$ 000's

$ 000's

$ 000's

Cash flows from operating activities

 

 

 

Profit/(loss) before taxation

4,279

(11,829)

(23,659)

(Increase)/decrease in trade and other receivables

(539)

(388)

772

(Decrease) in trade and other payables

(1,188)

(4,801)

(5,105)

(Increase) in inventories

(11)

(5)

(87)

Impairment of tangible and intangible assets

-

416

7,416

Depreciation of property, plant and equipment

1,077

1,690

2,944

Depreciation of right of use asset

9

57

86

Loss on disposal of investment in associate

-

-

47

Loss on disposal of property, plant and equipment

10

-

11

Amortisation

16

150

263

Share settled payments

1,113

638

644

Other income

(8,567)

-

(256)

Finance income

(1,927)

(1)

(7)

Finance costs

275

5,480

5,630

Share based payments

99

67

84

Income tax received/(paid)

-

9

(99)

Foreign exchange loss on operating activities

1,378

283

17

Net cash outflow from operating activities

(3,976)

(8,234)

(11,299)

 

 

 

 

Cash flows from investing activities

 

 

 

Purchase of property, plant and equipment

(212)

(2,140)

(5,385)

Proceeds from sale of property, plant and equipment

5

-

36

Payments for exploration and evaluation assets

-

(13,595)

(13,745)

Decrease in restricted cash

125

1

386

Other income received

-

-

256

Interest received

-

1

7

Net cash outflow from investing activities

(82)

(15,733)

(18,445)


 

 

 

Cash flows from financing activities

 

 

 

Issue of ordinary share capital

8,508

14,532

14,456

Share issue costs

-

(410)

(19)

Principal elements of lease payments

(9)

(40)

(86)

Interest payable on lease liabilities

-

(5)

(7)

Finance costs

(265)

(2,427)

(2,575)

Repayment of borrowings

(144)

(248)

(648)

Proceeds of borrowings

-

2,259

2,259

Net cash inflow from financing activities

8,090

13,661

13,380


 

 

 

Net increase in cash and cash equivalents

4,032

(10,306)

(16,364)

Effects of exchange rate changes on cash and cash equivalents

(279)

(599)

57

Cash and cash equivalents at beginning of period

1,555

17,862

17,862

Cash and cash equivalents at end of period

5,308

6,957

1,555

 

The accompanying accounting policies and notes form an integral part of these financial statements.

   

 

 

STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 JUNE 2022

 

 

 

Called up share capital

Share premium reserve

Share based payments reserve

Retained deficit

Foreign exchange reserve

Convertible debt option reserve

Other reserves

Total Equity

 

$ 000's

$ 000's

$ 000's

$ 000's

$ 000's

$ 000's

$ 000's

$ 000's

Group

 





 

 

 

At 1 January 2022

218

171,734

5,312

(101,381)

(1)

114

23,284

99,280

Loss for the period

-

-

-

4,279

-

-

-

4,279

Currency translation differences

-

-

-

-

1,105

-

-

1,105

Total comprehensive expense

-

-

-

4,279

1,105

-

-

5,384

Issue of ordinary shares

2,322

8,538

-

-

-

-

-

10,860

Realisation of conversion feature

-

-

-

-

-

(114)

-

(114)

Share based payments

-

-

99

-

-

-

-

99

Total contributions by and distributions to owners of the Company

2,322

8,538

99

-

 

-

(114)

-

10,845

Balance at 30 June 2022

2,540

180,272

5,411

(97,102)

1,104

-

23,284

115,509

 

 

 

 

Called up share capital

Share premium reserve

Share based payments reserve

Retained deficit

Foreign exchange reserve

Convertible debt option reserve

Other reserves

Total Equity

 

$ 000's

$ 000's

$ 000's

$ 000's

$ 000's

$ 000's

$ 000's

$ 000's

Group

 





 

 

 

At 1 January 2021

123

152,717

5,228

(77,684)

147

396

23,284

104,211

Loss for the period

-

-

-

(11,821)

-

-

-

(11,821)

Currency translation differences

-

-

-

-

(469)

-

-

(469)

Total comprehensive expense

-

-

-

(11,821)

(469)

-

-

(12,290)

Issue of ordinary shares

95

18,694

-

-

-

-

-

18,789

Recognition of conversion feature

-

-

-

-

-

505

-

505

Realisation of conversion feature

-

-

-

-

-

(787)

-

(787)

Share based payments

-

-

67

-

-

-

-

67

Total contributions by and distributions to owners of the Company

95

18,694

67

-

 

-

(282)

-

18,576

Balance at 30 June 2021

218

171,411

5,295

(89,505)

(322)

114

23,284

110,495

 

 


STATEMENT OF CHANGES IN EQUITY (CONTINUED)
FOR THE SIX MONTHS ENDED 30 JUNE 2022

 

 

 

Called up share capital

Share premium reserve

Share based payments reserve

Retained deficit

Foreign exchange reserve

Convertible debt option reserve

Other reserves

Total Equity

 

$ 000's

$ 000's

$ 000's

$ 000's

$ 000's

$ 000's

$ 000's

$ 000's

Group

 





 

 

 

As at 31 December 2019

61

96,157

4,868

(63,692)

-

-

23,284

60,678







 

 

 

Loss for the year

-

-

-

(13,992)

-

-

-

(13,992)

Currency translation differences

-

-

-

-

147

-

-

147

Total comprehensive expense

-

-

-

(13,992)

147

-

-

(13,845)

Share capital issued

62

56,560

-

-

-

-

-

56,622

Recognition of conversion feature

-

-

-

-

-

396

-

396

Share based payments

-

-

360

-

-

-

-

360

Total contributions by and distributions to owners of the Company

62

56,560

360

-

-

396

-

57,378

As at 31 December 2020

123

152,717

5,228

(77,684)

147

396

23,284

104,211







 

 

 

Loss for the year

-

-

-

(23,697)

-

-

-

(23,697)

Currency translation differences

-

-

-

-

(148)

-

-

(148)

Total comprehensive expense

-

-

-

(23,697)

(148)

-

-

(23,845)

Share capital issued

95

19,017

-

-

-

-

-

19,112

Recognition of conversion feature

-

-

-

-

-

505

-

505

Realisation of conversion feature

-

-

-

-

-

(787)

-

(787)

Share based payments

-

-

84

-

-

-

-

84

Total contributions by and distributions to owners of the Company

95

19,017

84

-

-

(282)

-

18,914

As at 31 December 2021

218

171,734

5,312

(101,381)

(1)

114

23,284

99,280











 


NOTES TO THE FINANCIAL STATEMENTS FOR THE INTERIM PERIOD ENDED 20 JUNE 2022

 

1

Basis of preparation


The financial statements have been prepared on the historical cost basis, except for the measurement of certain assets and financial instruments at fair value as described in the accounting policies below.

 

The financial statements have been prepared on a going concern basis, refer to the Going Concern section below for more details.

 

The financial statements are presented in United States dollars ($) and all values are rounded to the nearest thousand dollars ($'000) unless otherwise stated.

 

 

Basis of consolidation


The financial statements incorporate the results of the Company and its subsidiaries (the "Group") using the acquisition method. Control is achieved where the Company is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.

Inter-company transactions and balances between Group companies are eliminated in full.

 

Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used in line with those used by the Group.

 

The investment in associate (an entity over which the Group had significant influence) had been recorded at cost and had not been adjusted to reflect the Group's 25% share of the net profits/losses and assets/liabilities of the associate from the date of acquisition to the balance sheet date as it was deemed immaterial. Pursuant to commercial negotiations in relation to the associate during 2021, the Group relinquished its interest in the associate for nil consideration and does not hold any further interest in this associate at 30 June 2022 and at 31 December 2021.

 

 

 

Going Concern

 

These financial statements have been prepared by the Directors on a going concern basis, which assumes that the Group and Company will continue in operation for the foreseeable future.

At 30 June 2022, the Group and Company had $5.3 million and $4.2 million in unrestricted cash funding.

During the reporting period, the Group and Company completed a comprehensive restructuring and recapitalisation exercise which resulted in:

i)  the Group and Company raising approximately £7.3 million (or approximately $10 million) (before expenses) via the issue of new shares, to fund certain payments to creditors as part of the agreed discounted payment plan, as well as to fund a work programme for 2022;

ii)  a substantial reduction in balance sheet payables, debts and potential liability exposures, that would have reasonably required settlement in cash, from approximately $23.5 million as of 31 December 2021 to approximately $2.5 million, being the estimated liabilities amount that would be required for settlement in cash by the Group in the foreseeable future. The substantial majority of liability settlements took place during the reporting period; and

iii)  the Company reducing its net current liability position from approximately $10.1 million at 31 December 2021 to a net current asset position of approximately $4.1 million at 30 June 2022 as a result of the settlements made during the reporting period.

Following the restructuring and recapitalisation, the Directors have prepared a cash flow forecast which anticipates the Group and Company being able to continue in operation for at least the next twelve months from the date of this report. 

The cash flow forecast includes underlying assumptions and estimates, including oil price, sustained production from the Group's producing fields in Trinidad and Tobago along with certain incremental production from the intended work programme, reliability of reserves estimates and renewal of licences upon expiry.

In addition, the projections assume offsetting of certain tax liabilities and deferral of certain historical liabilities in Trinidad and Tobago that the Directors believe are either not likely to require settlement in cash or are capable of being deferred and settled on long-dated payment terms so as to not require material amounts of cash during the forecast period.

Certain of these items are outside of the Group and Company's control and unfavourable actual outcomes may materially and adversely affect the Group's cash resources and cast significant doubt on the Group and the Company's ability to continue as a going concern. In such an event, the Group and the Company may be required to implement certain other measures including, but not limited to,

i)  raising additional third-party capital in form of equity, debt or other instruments of a similar nature, and / or

ii)  undertake cost reduction, and / or

iii)  sell certain assets of the Group,

and a successful outcome of such measures cannot be guaranteed.

These financial statements do not include the adjustments that would result if the Group or the Company were unable to continue as a going concern.

 

 

 

 

 

NOTES TO THE FINANCIAL STATEMENTS FOR THE INTERIM PERIOD ENDED 30 JUNE 2022 (CONTINUED)

 

2

Other income and Finance income

 

 

Other income and Finance income predominantly comprise haircuts secured from the Group's historical creditors and a secured financier, as part of negotiated settlements agreed pursuant to the Group's restructuring and recapitalisation exercise.

 

3

Turnover and segmental analysis

 

Management has determined the operating segments based on the reports reviewed by the Board of Directors that are used to make strategic decisions. The Board has determined there is a single operating segment: oil and gas exploration, development and production. However, there are three geographical segments: Trinidad & Tobago & Suriname (operating), The Bahamas (operating) and The Isle of Man, UK, Uruguay, Spain, Saint Lucia, Cyprus, Netherlands & USA (all non-operating).

 

The segment including Trinidad & Tobago has been reported as the Group's direct oil and gas producing and revenue generating operating segment. The Bahamas segment includes the Bahamian exploration licences on which drilling activities were conducted in 2020 and 2021. The non-operating segment including the Isle of Man (the Group's parent), which provides management service to the Group and entities in Uruguay, Saint Lucia, Cyprus, Spain, the Netherlands, and the U.S.A. all of which are non-operating in that they either hold investments, or are dormant, or in the case of Uruguay had not yet commenced operations as of the year-end. Their results are consolidated and reported on together as a single segment.

 

 

Six months to 30 June 2022

Operating

Operating

 

Non-Operating

Entities (*)

Total



Trinidad & Suriname

Bahamas

 

 



$'000

$'000

$'000

$'000

 

Operating profit/(loss) by geographical area

 

 

 

 


Net petroleum revenue (**)

2,680

-

-

2,680








Operating profit/(loss)

(1,316)

(127)

(4,497)

(5,940)


Other income

1,937

-

6,630

8,567


Finance (charges)

(86)

-

(189)

(275)


Finance income

1

-

1,926

1,927

 

Profit/(loss) before taxation

536

(127)

3,870

4,279

 

Other information






Depreciation, amortisation and impairment

1,079

5

18

1,102


Capital additions

203

-

8

211

 

Segment assets






Tangible and intangible assets

22,196

93,971

4,712

120,879


Deferred tax asset

6,998

-

-

6,998


Abandonment fund

1,601

-

-

1,601


Trade and other receivables

3,860

516

1,052

5,428


Inventories

270

-

-

270


Restricted cash

380

-

54

434


Cash

986

4

4,318

5,308

 

Consolidated total assets

36,291

94,491

10,136

140,918

 

Segment liabilities

 





Trade and other payables

(9,704)

(1,049)

(1,232)

(11,985)


Borrowings

(224)

-

-

(224)


Deferred tax liability

(7,009)

-

-

(7,009)


Lease liabilities

-

(21)

(6)

(27)


Provisions

(3,825)

-

(2,339)

(6,164)

 

Consolidated total liabilities

(20,762)

(1,070)

(3,577)

(25,409)

 



NOTES TO THE FINANCIAL STATEMENTS FOR THE INTERIM PERIOD ENDED 30 JUNE 2022 (CONTINUED)

 

3

 

Turnover and segmental analysis (continued)

 

Six months to 30 June 2021

Operating

Operating

 

Non-Operating

Entities (*)

Total


Trinidad & Suriname

Bahamas

 

 


$'000

$'000

$'000

$'000

Operating profit/(loss) by geographical area

 

 

 

 

Net petroleum revenue (**)

2,305

-

-

2,305






Operating profit/(loss)

(2,110)

(1,359)

(2,881)

(6,350)

Other income

-

-

-

-

Finance (charges)

(119)

(8)

(5,353)

(5,480)

Finance income

1

-

-

1

Loss before taxation

(2,228)

(1,367)

(8,234)

(11,829)

Other information





Depreciation, amortisation and impairment

1,817

459

37

2,313

Capital additions

2,136

21,338

3

23,477

Segment assets





Tangible and intangible assets

28,215

93,880

4,727

126,822

Investment in associate

47

-

-

47

Deferred tax asset

8,065

-

-

8,065

Abandonment fund

1,344

-

-

1,344

Trade and other receivables

3,377

590

551

4,518

Inventories

177

-

-

177

Restricted cash

888

-

58

946

Cash

678

4

6,275

6,957

Consolidated total assets

42,791

94,474

11,611

148,876

Segment liabilities

 




Trade and other payables

(8,714)

(931)

(13,147)

(22,792)

Borrowings

(768)

-

(408)

(1,176)

Deferred tax liability

(8,065)

-

-

(8,065)

Lease liabilities

(20)

(40)

(5)

(65)

Provisions

(3,617)

-

(2,666)

(6,283)

Consolidated total liabilities

(21,184)

(971)

(16,226)

(38,381)


 

(*) Intercompany balances and transactions between Group entities have been eliminated.

(**) Sales revenues were derived from a single customer within each of these operating countries.

 

 

 

NOTES TO THE FINANCIAL STATEMENTS FOR THE INTERIM PERIOD ENDED 30 JUNE 2022 (CONTINUED)

 

4

Intangible assets - Group

 

 

 

 

Goodwill

Exploration & evaluation assets

 

 

$ 000's

$ 000's


Cost




As at 1 January 2021

7,045

75,372


Additions

-

21,489


Foreign exchange difference on translation

-

(29)


As at 31 December 2021

7,045

96,832


Foreign exchange difference on translation

-

(16)


As at 30 June 2022

7,045

96,816


 

Accumulated amortisation and impairment




As at 1 January 2021

2,435

113


Amortisation

-

263


Impairment

-

2,069


Foreign exchange difference on translation

-

(18)


As at 31 December 2021

2,435

2,427


Amortisation

-

16


Foreign exchange difference on translation

-

(16)


As at 30 June 2022

2,435

2,427


 

Net book value



 

As at 30 June 2022

4,610

94,389

 

As at 31 December 2021

4,610

94,405


As at 31 December 2020

4,610

75,259





 


 

NOTES TO THE FINANCIAL STATEMENTS FOR THE INTERIM PERIOD ENDED 30 JUNE 2022 (CONTINUED)


 


 

5

Tangible assets

 

 

 

 


 

Oil and gas assets

Property, plant and equipment (*)

Decommissioning costs

Total


 

$ 000's

$ 000's

$ 000's

$ 000's


Cost or Valuation






As at 1 January 2021

23,398

2,258

1,995

27,651


Additions

5,065

79

241

5,385


Disposals

-

(117)

-

(117)


Foreign exchange difference on translation

(160)

(207)

(378)


As at 31 December 2021

28,303

2,013

32,541


Additions

33

178

-

211


Disposals

-

(76)

-

(76)


Foreign exchange difference on translation

19

(195)

1

(175)


As at 30 June 2022

28,355

1,920

2,226

32,501








Accumulated depreciation and Impairment






At 1 January 2021

1,115

616

137

1,868


Depreciation

2,330

346

268

2,944


Disposals

-

(83)

-

(83)


Impairment

3,933

68

1,346

5,347


Foreign exchange difference on translation

(84)

(196)

(283)


At 31 December 2021

7,294

751

9,793


Depreciation

859

187

31

1,077


Disposals

-

(61)

-

(61)


Foreign exchange difference on translation

10

(193)

1

(182)


As at 30 June 2022

8,163

684

1,780

10,627


 

Net book value

 

 

 

 


As at 30 June 2022

20,192

1,236

446

21,874


As at 31 December 2021

21,009

1,262

22,748


As at 31 December 2020

22,283

1,642

25,783










 

(*) Property, plant and equipment includes leasehold improvements.

 

 

NOTES TO THE FINANCIAL STATEMENTS FOR THE INTERIM PERIOD ENDED 30 JUNE 2022 (CONTINUED)

 

6

Right of use assets

 

 

 

 

 

Group leased properties

Group motor vehicles

Total Group

 

 

$ 000's

$ 000's

$ 000's


Cost





As at 1 January 2021

468

62

530


Additions

17

-

17


Disposals

-

(30)

(30)


Foreign exchange difference on translation

(1)

-

(1)


As at 31 December 2021

484

32

516


Additions

-

-

-


Foreign exchange difference on translation

1

-

1


As at 30 June 2022

485

32

517







Accumulated depreciation





As at 1 January 2021

398

35

433


Depreciation

72

14

86


Disposals

-

(17)

(17)


Foreign exchange difference on translation

-

-

-


As at 31 December 2021

470

32

502


Depreciation

9

-

9


Foreign exchange difference on translation

-

-

-


As at 30 June 2022

479

32

511







Net book value




 

As at 30 June 2022

6

-

6

 

As at 31 December 2021

14

-

14


As at 31 December 2020

70

27

97









 

7

Trade and other payables

 

 

 

 

 

 

Trade and other payables at 30 June 2022 amount to approximately $12.0 million reflecting effects of the restructuring exercise that the Group commenced in December 2021.

 

Trade and other payables include dues, amounting to approximately $2.5 million in aggregate, that are considered to be of a routine working capital nature, and that are being settled in the ordinary course of business and / or under certain agreed payment plans.

 

The remainder of trade and other payables are not expected to be required to be settled in cash in the foreseeable future, and with a vast majority of these amounts not expected to require any cash settlement at all, and thus will ultimately, with the passage of time, will cease to be recorded as liabilities. A summary of these is set out below:

 

(i)  approximately $4.6 million is in respect of legacy trade and other payables in Trinidad and Tobago which are not expected to require any settlement in cash. This includes dues in relation to one of the Group's dormant licences in Trinidad and Tobago, and which the Group expects to settle by way of negotiation with the Trinidadian Ministry of Energy and Energy Industries ("MEEI"). Specifically, the Group has proposed to MEEI a rebasing of this licence whereby all claimed past dues would be cancelled, the annual licence fees rebased to an appropriate level, and a new future work programme agreed. To the extent a suitable arrangement of this nature cannot be agreed with MEEI, the Company intends to surrender the licence, in which case the subsidiary company holding the licence will be placed into administration, and all liabilities claimed in respect of this licence will be eliminated, without recourse to the Company, as confirmed by a legal opinion;

 

 

 



 

NOTES TO THE FINANCIAL STATEMENTS FOR THE INTERIM PERIOD ENDED 30 JUNE 2022 (CONTINUED)

 

7

Trade and other payables (continued)

 

 

 

 

 

 

(ii)  approximately $3.3 million is in respect of taxes owed in Trinidad and Tobago that the Group expects to settle by way of offset against tax refunds due to the Group in Trinidad and Tobago ($2.1 million, including under 'Trade and other receivables'). The balance amount relates to a notional estimate of penalties that apply in accordance with the tax laws in Trinidad and Tobago - as at the date of this report these are notional estimates only and have not been levied or assessed, and the Group does not expect that they will be levied or assessed and that ultimately no cash payment will be required as the Group had claimed the benefit of a tax amnesty during the 2021 tax amnesty period implemented by the Trinidad and Tobago tax authorities, with the final resolution of this matter remaining pending; and

 

(iii)  approximately $1.6 million is in respect of various dues comprising, i) $0.5 million is in respect of accruals in relation to restructuring and recapitalisation costs, which are expected to be settled in shares without any cash cost to the Company, ii) $0.5 million is in respect of potential insurance "top-up" exposure, due to the ultimate cost of the Perseverance-1 well in The Bahamas exceeding the initial estimated cost - however, as at the date of this report no demand for this additional payment has been made and the Group expects that this exposure will not crystalise given that the well was completed safely and without incident over 18 months ago, and iii) $0.6 million is in respect of accrued licence fee which the Group expects to offset against $0.5 million refundable advances (included in trade and other receivables) resulting in no material incremental cash exposure to the Group.

 

It is also noted that, following the completion of the restructuring and recapitalisation, the Company has no remaining financial debt and the vast majority of the liability position across the Group as detailed above is at the level of subsidiary undertakings, without recourse to the Company.

 

 

8

Share capital - Group & Company

 


Called up, allotted, issued and fully paid ordinary shares of 0.0002p each

Number of shares

Nominal value

Share premium




$ 000's

$ 000's

 

At 1 January 2021

4,506,673,349

123

152,717

 

At 1 January 2021 after capital reorganisation

450,667,335

123

152,717

 

Shares issued at average price of 1.9p per share

19,687,500

5

5,106

 

Shares issued at average price of 0.27p per share

13,500,000

4

515

 

Shares issued at average price of 0.15p per share

14,938,577

4

300

 

Shares issued at average price of 3.5p per share

196,688,957

55

8,689

 

Shares issued at average price of 3.5p per share

74,658,600

21

3,665

 

Shares issued at average price of 0.15p per share

19,111,423

5

391

 

Shares issued at average price of 0.15p per share

7,270,522

1

351

 

At 31 December 2021

796,522,914

218

171,734

 

At 1 January 2022

796,522,914

218

171,734

 

Shares issued at average price of 0.1p per share

691,401,490

185

739

 

Shares issued at average price of 0.1p per share

3,480,645,475

919

3,366

 

Shares issued at average price of 0.1p per share

4,651,629,600

1,218

4,433

 

At 30 June 2022

9,620,199,479

2,540

180,272

 

 

Number of shares

Nominal value

Share premium

 

 

 

$ 000's

$ 000's

 

At 31 December 2020

450,667,335

123

152,717

 

At 31 December 2021

796,522,914

218

171,734

 

At 30 June 2022

9,620,199,479

2,540

180,272

 

  During the period, 8,823 million shares were issued (2021: 339 million).

At the end of the period, the number of shares in issue comprised 9,620 million ordinary shares (2021: 789 million).

During the period, transaction costs for issued share capital totalled $748,777 (2021: $754,068), these amounts were allocated to share premium.

 

The total authorised number of ordinary shares at 30 June 2022 was 50,000,000,000 shares with a par value of 0.02 pence per share (2021: 2,000,000,000 shares of 0.02 pence per share).  All issued shares of 0.02 pence are fully paid.

NOTES TO THE FINANCIAL STATEMENTS FOR THE INTERIM PERIOD ENDED 30 JUNE 2022 (CONTINUED)

 

9

Share based payments reserve




 

 

 

 

 







Options and warrants

 

Share options have been granted to Directors, selected employees and consultants to the Company. 

The Group had no legal or constructive obligation to repurchase or settle any options in cash.  Movements in the number of share options and warrants outstanding during the year are as follows:

 



Average exercise price per share

No. Options & Warrants

 

At 1 January 2022

12.81p

96,797,894

 

Expired

35p

(9,375,000)

 

Cancelled

10.23

(73,803,215)

 

Granted

0.14p

1,536,559,485

 

Exercised

-

-


As at 30 June 2022

0.24p

1,550,179,164


Exercisable at end of period

0.01p

816,559,485

 

The fair value of the warrants and options granted in the period was estimated using the Black Scholes model. 

 

 

 

10

Events after reporting date

 

 

There were no material events which took place following the reporting date which require disclosure in these Interim Financial Statements except that on 15 July 2022 Mr. Tim Eastmond resigned as the Chief Financial Officer and an Executive Director of the Company for personal reasons and Mr. Gagan Khurana, the Group's Chief Commercial Officer assumed the role of acting Chief Financial Officer in addition to his commercial duties.

 

 

11

Other Information

 

 

The financial information set out above does not constitute the Group's statutory accounts for the period ended 31 December 2021 but is derived from those accounts.

 

A copy of this interim statement is available on the Company's website: www.cegplc.com

 

 

 

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