Interim Results

RNS Number : 0675S
Lansdowne Oil & Gas plc
19 September 2014
 



 

 

 

 

Lansdowne Oil & Gas plc

Interim results for the six months ended 30 June 2014

19 September 2014

 

Lansdowne Oil & Gas plc ("Lansdowne" or "the Company") is pleased to announce its interim results for the six months ended 30 June 2014. Lansdowne is an upstream oil and gas company, focused on exploration and appraisal activities in the North Celtic Sea Basin, off the south coast of Ireland. The Company has targeted the Irish offshore shelf areas close to existing operating infrastructure for exploration, as these provide shallow water (generally less than 100 metres), and relatively low drilling costs. The Directors believe that these factors, combined with favourable fiscal terms, have the potential to deliver high value reserves.

 

Highlights

·     In recognition of potential field extensions to the south and southeast, the Barryroe licence holders were granted a 180 km2 extension to SEL 1/11.

·     Providence Resources continued farm-out negotiations on behalf of the Barryroe partnership and recently confirmed that the process is "nearing completion".

·     Farm-out discussions are on-going regarding the Company's exploration prospects.

·     Cash balances at 30 June 2014 of £1.11 million (31 December 2013: £2.48 million).

·     Loss for the period after tax £0.76 million (2013: loss £0.32 million).

·     Loss per share 0.5 pence (2013: loss 0.2 pence).

 

For further information please contact:

 

Lansdowne Oil & Gas plc

Steve Boldy

Richard Slape

 

+353 1 495 9259

Cenkos Securities plc

Neil McDonald

Derrick Lee

 

+44 (0)20 7397 8900

+44 (0) 131 220 6939

 



Lansdowne Oil and Gas plc

Results for the six months ended 30 June 2014

 

Chairman's Statement

During 2013, Providence Resources launched a farm-out on behalf of the Barryroe partnership and discussions with potential new partners continued throughout the first half of 2014. We remain optimistic that these will yield a positive outcome and in August this year Providence confirmed that the process is "nearing completion".

Hence, planning is underway for further drilling at Barryroe in 2015 with a view to reaching first oil by 2018. In order to achieve this, Providence envisages a staged development with Phase 1 utilising an FPSO to produce up to 30,000 b/d from the area around the 48/24-10z well. Subsequently, in Phase 2 it is anticipated that a number of fixed platforms will be installed resulting in peak output of up to 100,000 b/d.

Elsewhere in the Celtic Sea, Lansdowne has an extensive acreage portfolio in an under-explored basin and we continue to seek a partner or partners to undertake a drilling campaign with us next year. As is the case with Barryroe, this process has not progressed as fast as we would have liked but negotiations are on-going and we remain optimistic that these will result in a positive outcome.

 

Financial results

The Group recorded a loss after tax of £0.76 million for the first six months of 2014 versus a loss of £0.32 million in the same period in 2013.

Group operating expenses increased significantly from £0.34 million the first half of 2013 to £0.75 million this year. Much of the uplift was attributable to foreign exchange movements, which created a loss of £0.12 million in 2014 versus a gain of £0.15 million in 2013. In addition, lower levels of activity on our operated licences resulted in a £0.12 million reduction in staff costs being capitalised.

Net finance expense was £0.01 million for the current period against net finance income of £0.02 million for the prior period.

Cash balances decreased from £4.55 million on 30 June 2013 to £1.11 million on 30 June 2014. Over the same period, total equity attributable to the ordinary shareholders of the Group reduced from £25.95 million to £25.02 million.

 

Outlook

In recent years, Lansdowne has participated in the rejuvenation of the North Celtic Sea Basin, offshore Ireland. It has done so through the acquisition of high quality 3D seismic data and through its participation in successful appraisal drilling at Barryroe, The next phase of activity, which requires a satisfactory conclusion to our farm-out processes, will be a new drilling campaign and we remain focused on delivering this in 2015.

 

John Greenall

Chairman

 



Lansdowne Oil & Gas plc

Condensed Consolidated Income Statement

Six months ended 30 June 2014

 


Unaudited

Unaudited

Audited


6 months

ended

6 months

ended

Year

ended


30 June 14

30 June 13

31 Dec. 13


£000s

 

£000s

£000s













Administration expenses

(746)

(342 )

(984)


________

________

________

Operating loss

(746)

(342)

(984)





Finance income

3

18

24

Finance costs

(16)

-

(61)


______

______

______

Loss before tax

(759)

(324)

(1,021)





Income tax credit

-

-

211


______

______

______

Loss for the financial period

(759)

(324)

(810)


______

______

______

Loss per share (pence)




Basic and diluted

(0.5p)

(0.2p)

(0.6p)


______

______

______

 



Lansdowne Oil & Gas plc

Consolidated Statement of Comprehensive Income

Six months ended 30 June 2014

 


Unaudited

Unaudited

Audited


6 months

ended

6 months

ended

Year

ended


30 June 14

30 June 13

31 Dec. 13


£000s

£000s

£000s





Loss for the Period

(759)

(324)

(810)





Currency translation differences

118

(142)

(62)


______

______

______

 

 

Total comprehensive loss for the period

(641)

(466)

(872)


______

______

______













 



Lansdowne Oil & Gas plc

Condensed Consolidated Statement of Financial Position

As at 30 June 2014

 


Unaudited

Unaudited

Audited


30 June 14

30 June 13

31 Dec. 13


£000s

£000s

£000s

Assets








Non-Current Assets




Intangible assets

27,582

26,321

27,217

Property, plant and equipment

-

1

1


_______

_______

_______


27,582

26,322

27,218


_______

_______

_______

Current Assets




Trade and other receivables

137

57

146

Cash and cash equivalents

1,115

4,547

2,478


_______

_______

_______


1,252

4,604

2,624


_______

_______

_______

Total Assets

28,834

30,926

29,842


_______

_______

_______





Equity & Liabilities

 

Shareholders' Equity




Share capital

7,027

7,027

7,027

Share premium

25,273

25,273

25,273

Currency translation reserve

174

(24)

56

Share-based payment reserve

860

739

803

Accumulated deficit

(8,317)

(7,070)

(7,556)


_______

_______

_______

Total Equity

25,017

25,945

25,603





Non-Current Liabilities




Deferred income tax liabilities

1,053

1,263

1052

Provision for liabilities

______197_

_______-

____197


1,250

1,263

1,249


_______

_______

_______

 

Current Liabilities




Trade and other payables

2,567

3,718

2,990


_______

_______

_______


2,567

3,718

2,990


_______

_______

_______

Total Liabilities

3,817

4,981

4,239


_______

_______

_______

 

Total Equity and Liabilities

28,834

30,926

29,842


_______

_______

_______



Lansdowne Oil & Gas plc

Consolidated Statement of Cash flows

Six months ended 30 June 2014

 


Unaudited

Unaudited

Audited


6 months

ended

6 months

ended

Year

ended


30 June 2014

30 June 2013

31 December 2013


£000s

£000s

£000s





Cash flows from operating activities




Cash from operations

                     (1,014)

(501)

(1,674)

Net finance expense/(income)

13

(18)

3


_______

_______

_______

Net cash from operating activities

(1,001)

(519)

(1,671)





Cash flows from investing activities




Interest received

3

18

24

Acquisition of intangible exploration assets

(365)

(501)

(1,397)


_______

_______

_______

Net cash from investing activities

(1,363)

(483)

(1,373)









Cash flows from financing activities




Proceeds from issuance of ordinary shares

-

-

-

Repayment of borrowings

-

-

-

Interest paid

-

-

-

Interest received

-

-

-


_______

_______

_______

Net cash generated from financing activities

-

-

-





Net (decrease)/increase in cash and cash equivalents

(1,363)

(1,002)

3,044

Cash and cash equivalents at start of period

2,478

5,549

5,549

Effect of exchange rate fluctuations on cash held

-

-

(27)


_______

_______

_______

Cash and cash equivalents at end of period

1,115

4,547

2,478


_______

_______

_______

 



Lansdowne Oil & Gas plc

Condensed Consolidated Statement of Changes in Equity

Six months ended 30 June 2013

 














Share Capital

Share Premium

Other Reserves

Retained Losses

Total


£000s

£000s

£000s

£000s

£000s







 

Unaudited






At 1 January 2013

7,027

25,273

118

(6,070)

26,348

Loss for the period

-

-

-

(324)

(324)

Currency translation differences

-

-

(142)

-

(142)


_______

_______

_______

_______

_______

Total comprehensive income for the period

7,027

25,273

(24)

(6,394)

(25,710)

Share based payment charge

-

-

-

63

63


_______

_______

_______

_______

_______

At 30 June 2013

7,027

25,273

(24)

(6,331)

25,945

 

Audited

_______

_______

_______

_______

_______

At 1 January 2013

7,027

25,273

118

(6,070)

26,348

Loss for the period

-

-

-

(810)

(810)

Currency translation difference

-

-

(62)

-

(62)


_______

_______

_______

_______

_______

Total comprehensive income for the period

7,027

 

25,273

 

56

(6,880)

25476

Share based payments charge

-

-

-

127

127


_______

_______

_______

_______

_______

At 31 December 2013

7,027

25,273

56

(6,753)

25,603


_______

_______

_______

_______

_______

Unaudited






At 1 January 2014

7,027

25,273

56

(6,753)

25,603

Loss for the period

-

-

-

(759)

(759)

Currency translation differences

-

-

118

-

118


_______

_______

_______

_______

_______

Total comprehensive income for the period

7,027

25,273

174

(7,512)

24,962

Share based payment charge

-

-

-

55

55


_______

_______

_______

_______

_______

At 30 June 2014

7,027

25,273

174

(7,457)

25,017


_______

_______

_______

_______

_______

 



Notes to the Interim Condensed Financial Statements

 

1.   Basis of Presentation

 

Accounting Policies

The interim financial information for the six months ended 30 June 2014 has been prepared on the basis of the accounting policies which will be adopted in the 2014 Annual Report and Accounts, and IAS 34, "Interim Financial Reporting".

 

The interim financial information does not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006. The results for the six months to 30 June 2014 and the comparative results for the six months to 30 June 2013 are unaudited. The comparative figures for the year ended 31 December 2013 do not constitute the statutory financial statements for that year. The interim financial information should be read in conjunction with the annual financial statements for the year ended 31 December 2013, which have been prepared in accordance with IFRSs as adopted by the European Union. Those financial statements have been delivered to the Registrar of Companies and include the auditor's report which was unqualified and did not contain a statement under Section 498 of the Companies Act 2006. They did, however, contain an emphasis of matter over the going concern basis of preparation for the Group. Therefore, this interim statement should be read with due regard to the uncertainties described within note 1 of the financial statements for the year ended 31 December 2013.

 

Going concern 

The Directors have prepared the interim financial information on the going concern basis which assumes that the Group and Company and its subsidiaries will continue in operational existence for the foreseeable future.

 

2.   Segmental Analysis

 

The Group has only one reportable business segment, which is the exploration for oil and gas reserves in Ireland. All operations are classified as continuing.

 

3.   Loss per share

The loss for the period was wholly from continuing operations.

 


Unaudited

Unaudited

Audited


6 months

ended

6 months

ended

Year

ended


30 June 14

30 June 13

31 Dec. 13


£000s

£000s

£000s





Loss per share for loss from continuing operations attributable to the equity holders of the Company




- basic and diluted

(0.5p)

(0.2p)

(0.6p)

 

The calculations were based on the following information:




 

Loss attributable to equity holders of the Company

(759)

(324)

(810)

 

Weighted average number of ordinary shares




In issue - basic and diluted

140,540,159

140,540,159

128,535,058

 

 

For diluted earnings per share, the weighted average number of ordinary shares in issue is adjusted to assume conversion of all dilutive potential ordinary shares. The Group has one class of dilutive potential ordinary shares - share options. As a loss was recorded for both periods the issue of new shares would have been anti-dilutive.

 

4.   Goodwill and other Intangible  Assets

 

Oil and gas project expenditures, including geological, geophysical and seismic costs are accumulated as intangible assets prior to the determination of commercial reserves. At 30 June 2014, intangible assets totalled £27.6 million (30 June 2013: £24.9 million), all of which relates to Ireland. Movements in the period relate to additional spend on the licence areas of £ 0.4 million. Goodwill at 30 June 2013 and 2012 amounted to £1.4 million.

 

5.   Reconciliation of loss for the period to net cash used in Operating Activities

 


Unaudited

Unaudited

Audited


6 months

ended

6 months

ended

Year

ended


30 June 14

30 June 13

31 Dec 13


£000s

£000s

£000s









Loss before tax for the period

(759)

(324)

(1,021)





Adjustments for:




Equity settled share-based payments

57

63

127

Unrealised foreign exchange losses

118

(142)

             (62)


______

______

______

Operating cash flows before movements in working capital

(584)

(403)

(956)


______

______

______





Change in trade and other receivables

(9)

44

(45)

Change in trade and other payables

(421)

(142)

(673)


______

______

______


(1,014)

(501)

(1,674)


______

______

______





 

6.   Related Party Transactions

 

There were no related party transactions entered into by the group during the period.

 

7.   Copies of the Interim Report

 

Copies of the interim report can be obtained from the Company Secretary, Lansdowne Oil & Gas plc, 6 Northbrook Road, Ranelagh, Dublin 6 and from the Company's website www.lansdowneoilandgas.com.

 

 

 


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