Interim Results for 6 months ended 30 June 2015

RNS Number : 1529Z

Prospex Oil and Gas PLC

16 September 2015

 

Prospex Oil & Gas Plc

("Prospex Oil & Gas" or "the Company")

Interim Results for the six months ended 30 June 2015

Chairman's Statement

This report accompanies the unaudited Interim Results for the 6 month period ended June 30, 2015.  During that time, the Company underwent significant changes, particularly on 14, April 2015, where, amongst other things, a restructuring was approved by shareholders incorporating a Company Voluntary Arrangement, a disposal, change of name, a new Board and a new investment mandate together with a fundraise under the new capital structure. 

Since that time, the Board and management have been very active in reviewing investment opportunities.  At the same time, stock markets and energy prices have both been extremely volatile, adding a significant amount of complexity to the work of the team.  However, the directors are not daunted by these challenges and in fact believe that these also present opportunities.

The Directors thank the shareholders, new and old, for their patience and assure them that efforts have been and continue to be undertaken to identify and negotiate an appropriate investment or acquisition for the Company.

Bill Smith

Chairman

15 September 2015

Enquiries:

Prospex Oil and Gas plc
Edward Dawson, CEO	0207 078 9566
WH Ireland Limited (Nominated Adviser and Broker)
Katy Mitchell Peterhouse Corporate Finance Limited (Joint Broker) Lucy Williams / Eran Zucker	0113 394 6600 020 7469 0932

Prospex Oil & Gas Plc

Statement of Comprehensive Income
for the six months ended 30 June 2015

		Unaudited				Audited
		Six months ended 30 June				Year ended 31 December
		2015		2014		2014
		£		£		£
Administrative expenses		(257,814)		(273,322)		(512,322)
Gain arising on restructuring		152,361		-		-
Operating loss		(105,453)		(273,322)		(512,322)
Finance income		162		34		34
Fair value loss on derivative financial assets		-		(60,105)		(168,188)
Finance expense		-		(4,212)		(67,491)
Loss before income taxation		(105,291)		(337,605)		(747,967)
Income tax expense		-		-		-
Loss for the period from continuing operations		(105,291)		(337,605)		(747,967)
Discontinued operations
Profit/(loss) for the period from discontinued operations		521,745		(78,035)		(3,832,478)
Profit/ (loss) for the period		416,454		(415,640)		(4,580,445)
Other comprehensive income:
Currency translation differences on disposal of foreign operation		(39,467)		-		-
Total comprehensive profit/(loss) for the period		376,987		(415,640)		(4,580,445)
Non-controlling interests		-		20,406		771,232
Profit/ (loss) for the period and total comprehensive income attributable to owners of the parent		376,987		(395,234)		(3,809,213)
Earnings/ (loss) per share - basic and diluted
From continuing operations		(0.5)p		(0.02)p		(0.05)p
From discontinued operations		2.6p		(0.01)p		(0.23)p

Statement of Financial Position
as at 30 June 2015

	Note	Unaudited				Audited
		Six months ended 30 June				Year ended 31 December
		2015		2014		2014
		£		£		£
Non-current assets
Intangible assets		-		3,738,746		-
Tangible assets		-		12,146		10,355
Derivative financial assets		-		45,000		-
		-		3,795,892		10,355
Current assets
Inventories		-		1,008		977
Trade and other receivables		169,448		17,410		33,928
Derivative financial assets		-		165,000		46,359
Cash and cash equivalents		859,407		26,928		22,734
		1,028,855		210,346		103,998
Total assets		1,028,855		4,006,238		114,353
Current liabilities
Trade and other payables		(256,858)		(162,494)		(365,873)
Borrowings		-		(454,521)		(479,784)
Total liabilities		(256,858)		(617,015)		(845,657)
Net assets		771,997		3,389,223		(731,304)
Shareholders' equity
Share capital	4	2,657,234		2,304,398		2,304,398
Share premium account	4	6,732,715		6,063,208		6,063,208
Equity component - convertible loan note		-		95,479		100,216
Capital redemption reserve		43,333		43,333		43,333
Merger reserve		2,416,667		2,416,667		2,416,667
Profit and loss account		(11,077,952)		(8,112,862)		(11,531,738)
Foreign currency reserve		-		(4,000)		39,467
		771,997		2,806,223		(564,439)
Non-controlling interests		-		583,000		(166,865)
Total (deficit)/equity		771,997		3,389,223		(731,304)

Statement of changes in equity

as at 30 June 2015

	Share capital	Share premium	Retained earnings	Foreign currency reserve	Capital redemption reserve	Merger reserve	Non- controlling interests	Convertible loan note	Total
	£	£	£	£	£	£	£	£	£
Six months ended 30 June 2015
At 1 January 2015	2,304,398	6,063,208	(11,531,728)	39,467	43,333	2,416,667	(166,885)	100,216	(731,304)
Issue of shares	352,836	723,314	-	-	-	-	-	-	1,076,150
Costs in respect of shares issued	-	(53,807)	-	-	-	-	-	-	(53,807)
Total comprehensive income for the year	-	-	416,454	(39,467)	-	-	-	-	376,987
Equity settled share based payments	-	-	37,322	-	-	-	-	-	37,322
On disposal of subsidiary	-	-	-	-	-	-	166,865	(100,216)	66,649
At 30 June 2015	2,657,234	6,732,715	(11,077,952)	-	43,333	2,416,667	-	-	771,997
Six months ended 30 June 2014
At 1 January 2014	2,288,898	6,059,750	(7,722,515)	(3,874)	43,333	2,416,667	598,512	89,293	3,770,054
Total comprehensive income for the year	-	-	(395,234)	-	-	-	(20,406)	-	(415,640)
Issue of shares	15,500	7,750	-	-	-	-	-	-	23,250
Costs in respect of shares issued	-	(4,292)	-	-	-	-	-	-	(4,292)
Convertible loan note - equity component	-	-	-	-	-	-	-	6,196	6,196
Equity settled share based payment	-	-	4,887	-	-	-	-	-	4,887
Currency translation differences on foreign currency net investments	-	-	-	(126)	-	-	-	-	4,768
At 30 June 2014	2,304,398	6,063,208	(8,112,862)	(4,000)	43,333	2,416,667	583,000	95,479	3,389,223
Year ended 31 December 2014
At 1 January 2014	2,288,898	6,059,750	(7,722,515)	(3,874)	43,333	2,416,667	598,512	89,293	3,770,054
Total comprehensive income for the year	-	-	(3,809,213)	-	-	-	(771,232)	-	(4,580,445)
Issue of shares	15,500	7,750	-	-	-	-	-	-	23,250
Costs in respect of shares issued	-	(4,292)	-	-	-	-	-	-	(4,292)
Convertible loan note - equity component	-	-	-	-	-	-	-	10,933	10,933
Currency translation differences on foreign currency net investments	-	-	-	43,341	-	-	5,855	-	49,196
At 31 December 2014	2,304,398	6,063,208	(11,531,728)	39,467	43,333	2,416,667	(166,865)	100,216	(731,304)

Statement of cash flows

for the six months ended 30 June 2015

			Unaudited				Audited
			Six months ended 30 June				Year ended 31 December
			2015		2014		2014
			£		£		£
Operating activities
Operating loss			(105,453)		(273,322)		(512,322)
Gain on restructuring			(152,361)		-		-
Depreciation of property, plant and equipment			-		1,484		2,946
Amortisation of intangible assets			-		-		-
Increase in inventories			-		(1,008)		(977)
(Increase)/decrease in trade and other receivables			(14,174)		(965)		(17,483)
Increase/(decrease) in trade and other payables			68,604		(54,463)		87,308
Equity-settled share based payments			37,322		4,887		-
Other movement			(31,825)		31,954		85,516
Cash flows from operating activities (continued operations)			(197,887)		(291,433)		(355,012)
Cash flows from operating activities (discontinued operations)			-		(78,035)		(102,701)
Cash generated from operations			(197,887)		(369,468)		(457,713)
Financing activities
Issue of share capital			1,076,150		-		-
Proceeds received from issue of derivative financial asset			12,055		93,020		148,578
Cost of share issue			(53,807)		(4,292)		(4,292)
Convertible unsecured loan notes			-		50,000		80,000
			1,034,398		138,728		224,286
Investing activities
Purchase of intangible assets			-		(12,494)		(12,333)
Purchase of property, plant and equipment			-		(199)		(196)
Finance income			162		34		34
Finance expense			-		(4,212)		(5,883)
			162		(16,871)		(18,378)
Net increase/(decrease) in cash and cash equivalents			836,673		(247,611)		(251,805)
Cash and cash equivalents at beginning of the period			22,734		274,539		274,539
Cash and cash equivalents at end of the period			859,407		26,928		22,734

Notes to the Interim Financial Statements

for the six months ended 30 June 2015

1.       Basis of preparation

The principal accounting policies used for preparing the Interim Accounts are those the Company expects to apply in its financial statements for the year ending 31 December 2015 and are unchanged from those disclosed in the Company's Report and Financial Statements for the year ending 31 December 2014.

The financial information for the six months ended 30 June 2015 and for the six months ended 30 June 2014 has neither been audited nor reviewed by the Company's auditors.

2.       Earnings per ordinary share

The calculation of a basic earnings per share is based on the profit for the period attributable to equity holders of the Company and on the weighted average number of shares in issue during the period.

3.       Share capital

On 15 April 2015 Company's share capital was re-organised through the consolidation of every 25,000 Existing Ordinary Share into one Consolidation Share; and thereafter each Consolidation Share was subdivided into 100 New Ordinary Shares and 1 New Deferred Share.

On 16 April 2015 the Company raised £1,076,150 through the issue of 35,283,591 New Ordinary Shares at £0.0305.

On 16 April 2015 the Company granted 2,847,116 options at an exercise price of £0.03 per share exercisable over a period of 10 years from the date of grant.  On the same date, the Company granted 812,000 options at an exercise price of £0.03 per share exercisable over a period of 3 years from the date of grant.

 

END

 

 

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