Final Results

RNS Number : 9924I

Rockhopper Exploration plc

06 June 2014

 



Rockhopper Exploration plc

("Rockhopper" or the "Company")

Final Results for the Twelve Months Ended 31 March 2014

Rockhopper Exploration plc (AIM: RKH) is pleased to announce its final results for the twelve months ended 31 March 2014.

Operational and Financial Highlights

During the Period:

·    Joint venture estimates of mid-case contingent resources strengthened:

o Phase 1:  Sea Lion Main Case ("SLMC") (with gas cap) 293 mmbbls PL032 only

o Phase 2: SLMC and Satellites within PL004  c.100 mmbbls

o If no gas cap a further 65 mmbbls recovered in phase 1

·    Concept selection achieved: Tension Leg Platform ("TLP") concept selected following rigorous evaluation process

·    Increased exposure to highly prospective exploration acreage through farm-in to sub-areas PL004a and PL004c providing us with 24% equity interest across licence PL004 and access to the highest graded prospectivity

·    Board strengthened

o Fiona MacAulay promoted to Chief Operating Officer and Stewart MacDonald appointed Chief Financial Officer

o Two highly experienced industry non-executive directors also added to the board

·    Capital gains tax liability agreed in principle deferring tax payment until the first royalty payment on Sea Lion is due

·    Cash balance at 31 March 2014 of $247 million

Post 31 March 2014:

·    Rig secured for four well exploration drilling campaign in North Falkland Basin to commence in Q2 2015

·    Recommended offer for Mediterranean Oil & Gas plc

Pierre Jungels, Chairman of Rockhopper, commented:

"The year ahead has the potential to be transformational for your company. With a rig secured, a four well exploration drilling programme in 2015 is now assured. The Sea Lion development remains central to our strategy and delivery of the project is our highest priority and the achievement of a final investment decision on the project will be significant value milestone for our company. The recently announced recommended offer for Mediterranean Oil & Gas plc represents the first step in the next phase of the company's growth."

Ends.

Enquiries:

Rockhopper Exploration plc (via Vigo Communications)

Tel: [phone]

Sam Moody - Chief Executive

Stewart MacDonald - Chief Financial Officer

Canaccord Genuity Limited (NOMAD and Joint Broker)

Tel: [phone]

Henry Fitzgerald-O'Connor

Liberum Capital (Joint Broker)

Tel: [phone]

Clayton Bush

Vigo Communications

Patrick d'Ancona 0207 016 9573

Peter Reilly 0207 016 9571

This statement has been approved by the Company's geological staff who include Fiona Macaulay (Chief Operating Officer), who is a Fellow of the Geological Society of London and a Member of the Petroleum Exploration Society of Great Britain and American Association of Petroleum Geologists with over 25 years of experience in petroleum exploration and management, for the purpose of the Guidance Note for Mining, Oil and Gas Companies issued by the London Stock Exchange in respect of AIM companies, which outline standards of disclosure for mineral projects. In compiling the resource estimates the Company has used the definitions and guidelines as set forth in the 2007 Petroleum Resources Management System ('PRMS') approved by the Society of Petroleum Engineers (SPE).

Chairman's Statement                                                                                                       

This has been a busy year for the company and recent post period progress has reinforced that momentum. However, despite a broad economic recovery, improving equity and debt market conditions and a stable oil price environment, the oil and gas exploration and production sector remains significantly out of favour with investors and the wider market. Our share price is not immune to this sentiment and in the view of your Board does not reflect the continuing operational and commercial achievements made through the year.

The Sea Lion development remains central to our strategy and delivery of the project is our highest priority. Good progress has been made this year with the achievement of a number of significant operational milestones including the conclusion of concept select and near completion of bid evaluations for Front End Engineering and Design ("FEED"). As detailed technical and engineering work has continued the company is pleased to report that the project is even more technically attractive than originally thought with both recoverable volumes and peak plateau production rates increased. On the financing side, it is always worth highlighting that we remain fully funded through the Sea Lion development given our farm-out arrangements with Premier Oil.

Notwithstanding the excellent progress made this year, Premier Oil have indicated the need to bring another partner into the project prior to project sanction. We continue to actively support Premier Oil in this endeavour with the ultimate aim of reaching final project sanction during mid 2015.

On the exploration front, we have consolidated our exposure to highly prospective exploration acreage in the North Falkland Basin through the farm-in to sub-areas PL004a and PL004c of licence PL004 and have now secured a rig with a view to commencing a four well exploration campaign in Q2 2015. This campaign is expected to expose our shareholders to over 500 mmbbls (net Pmean STOIIP) and with certain wells targeting multiple high-impact prospects. Further details of the planned drilling campaign are outlined later in this report.

Finally, I would like to take this opportunity to note a number of changes to your Board. Through the year the Board has been strengthened with the promotion of Fiona MacAulay to the role of Chief Operating Officer and the appointment of Stewart MacDonald as Chief Financial Officer. Stewart brings a wealth of oil industry experience and upstream financing knowledge which will be invaluable as we move towards project sanction on the Sea Lion development. In addition the Board will benefit from the appointment of Keith Lough and John Summers, two highly experienced industry non-executive directors. At the same time, Chris Walton, John Crowle and Peter Dixon-Clarke have left the board and I would personally like to thank Chris, John and Peter for their long and unstinting service as members of the Board.

OUTLOOK

The year ahead has the potential to be transformational for your company. With a rig secured, exploration drilling in 2015 is now assured. In addition, the introduction of another partner into the Sea Lion development and the achievement of a final investment decision on the project will be significant value milestones for our company.

The recently announced recommended offer for Mediterranean Oil & Gas plc represents the first step in the next phase of the company's growth, providing us with an additional operating platform from which to build, over time, another material part of our business.

DR PIERRE JUNGELS CBE

CHAIRMAN

4 June 2014

CHIEF EXECUTIVE OFFICER'S REVIEW

CONTINUED PROGRESS ON THE SEA LION DEVELOPMENT

Through the year to 31 March 2014, significant progress has been made in relation to the Sea Lion development.

Recent technical work undertaken has provided us with an even more positive view of the scale of Sea Lion with the joint venture estimates of the field's mid case contingent resources for Phase 1 of 293 mmbbls, with a further 100 mmbbls contributed by the tail of Sea Lion and the satellites in PL004. In the event that it is confirmed that no gas cap is present on the western flank of the field, the mid case estimate for Sea Lion Phase 1 could rise by a further 65 mmbbls to 358 mmbbls. The presence or absence of a gas cap is expected to be confirmed as part of the 2015 drilling campaign.

Following extensive conceptual engineering and design work on the Sea Lion project, a development scheme was agreed in January 2014. A phased approach utilising a Tension Leg Platform ("TLP") with a permanent drilling rig was selected. Phase 1 is expected to recover 293 mmbbls of oil over 25 years from 32 wells with anticipated gross averaged peak production of over 100,000 barrels per day. The second phase of development will be optimised to incorporate any additional exploration or appraisal success.

Based on the proposed development scheme, Premier Oil estimate indicative gross capital costs for phase 1 of the Sea Lion development to total $5.2 billion comprising $3.5 billion for surface facilities and $1.7 billion for drilling. Capital expenditure to first oil is expected to be $3.8 billion.

Tender packages for the FEED contracts were issued earlier this year and proposals from engineering companies have recently been received. These are currently under evaluation with the intention to award FEED contracts imminently.

While the development continues to move forward, with a number of significant milestones achieved and further progress expected to be achieved in the coming months, Premier Oil have indicated that they will seek another partner for the project prior to final sanction. Rockhopper continue to actively support Premier Oil through that process with the aim of protecting and enhancing the value of our interest in the Sea Lion project.

Subject to Premier Oil securing such a partner, the joint venture continues to target final project sanction in mid 2015 and Rockhopper continues to expect first oil 3.5 - 4 years after project sanction.

North Falkland Basin exploration acreage consolidated, upside exposure enhanced and rig contracted

In October, Rockhopper and Premier Oil announced the signing of a Heads of Agreement with Falkland Oil and Gas Ltd ("FOGL") to farm in to sub-areas PL004a and PL004c, which are adjacent to the Sea Lion development. Under the terms of the transaction our interests in the two sub-areas increased to 24%. In return, FOGL's share of costs for an exploration well on each sub-area will be carried by Rockhopper and Premier Oil. The transaction completed in March 2014.

During the year the prospect inventory has matured resulting in a planned exploration programme of four wells with multiple stacked targets during 2015. A rig has been contracted jointly with operators in the Southern Falklands Basin with the first two wells of the programme being on our licences. We are delighted that these wells are some of Premier Oil's highest graded prospects for their 2015 exploration campaign worldwide.

Further details of the proposed drilling campaign and prospects to be targeted are covered in the Chief Operating Officer's Report.

Capital gains tax

In December 2013, Rockhopper announced that it had reached an agreement in principle with the Falkland Islands Government ("FIG") regarding the timing and quantum of the Capital Gains Tax ("CGT") liability due as a result of its farm out to Premier Oil of a 60% equity interest in its Sea Lion discovery.

The parties agreed in principle that the total CGT payable is £90 million with payment split into two tranches. The first payment, equating to £26 million (approximately $41 million), has now been satisfied. The second payment equates to £64 million (approximately $107 million) and will now be paid at the same time as the first royalty payment to FIG from oil production at Sea Lion.

Constructive discussions continue with FIG to document the above agreement in principle.

Outlook

Despite some significant challenges still lying ahead, it is important to recognise the demonstrable progress which has been made and strong position in which the company now finds itself. Work on the Sea Lion development continues apace with the project imminently entering the FEED phase. Rockhopper continues to actively support Premier Oil as they seek to bring in another partner for the project, prior to final project sanction. A rig has now been secured and plans are advancing for a high-impact four well exploration campaign in the North Falkland Basin in 2015. The company is well placed financially with $247 million cash on the balance sheet, no debt and through the exploration carry, development carry and standby financing arrangement with Premier Oil we are fully funded for our share of Sea Lion development costs and a significant proportion of the expected 2015 exploration costs.

We are extremely excited about our recently announced recommended acquisition of Mediterranean Oil & Gas plc which we believe provides us with a low cost, value enhancing entry into the greater Mediterranean and North Africa region, a region of significant current industry interest. The transaction is expected to complete in late July/early August 2014.

SAMUEL MOODY

CHIEF EXECUTIVE OFFICER

4 June 2014

CHIEF OPERATING OFFICER'S REport

North Falkland Basin Exploration

We are delighted that following several months of discussions we have been able to sign a contract to bring a drilling rig to the Falklands for a joint programme between the operators of the Northern and Southern Falkland Basins.

The rig has been contracted for a total of six firm slots, comprising four for the Rockhopper-Premier Oil exploration programme in the North Falkland Basin, and two for the Noble operated exploration campaign in the South and Eastern Falkland Basins. Additionally there are 8 options which can be exercised prior to mobilisation and a further 8 options that are available to be elected at key points during the campaign.

The six well programme would see the rig being in the Falklands for around nine months and we would currently anticipate arrival in Q2 2015. We envisage that the first two wells to be drilled would be in the North Falkland Basin and are likely to be the Zebedee and Isobel/Elaine prospects, following which the rig would move to the South of the Falklands to drill two wells for the Noble/FOGL partnership, before returning to the North Falkland Basin to drill the Jayne East and Chatham/Sea Lion West Flank Wells.

Rockhopper's sub-surface team has been continuing to fine tune the exploration locations and to work on the regional prospectivity of the area. The farm in to the Desire/FOGL acreage has secured our access to higher upside within the PL004 licence area where we now hold a 24% equity position. In total the programme will target a gross Pmean STOIIP of nearly 1.9 billion barrels in the North Falkland Basin.

Zebedee

This near field exploration prospect location in sub-area PL004b has been optimised to test a total of seven stacked reservoir targets within the F1 - F3 sequence with a total Pmean STOIIP potential of over 900 mmbbls. Zebedee is the primary target itself containing a gross Pmean STOIIP potential of 140 mmbbls with a GCoS of over 52% due to the stratigraphic trapping on the West flank of the syncline. The Zebedee fan shares the same feeder as the neighbouring Casper South discovery and is the next fan moving southwards of the Sea Lion - Satellite complex. Additional shallower (F1) and deeper (F3) reservoirs targeted at the location carry higher risk particularly with respect to both fluid phase and reservoir quality at the deeper horizons.

Isobel (Isobel/ELAINE Fan System) Location

The Isobel/Elaine fan system is located in sub-area PL004a where Rockhopper has increased its interest to 24%. This is an untested part of the basin approximately 40km south of Sea Lion and fans have been mapped throughout the F3 sequence. Clear offset stacking and multiple seismic attributes provide positive indicators for reservoir presence.

Following extensive evaluation the most likely first location on the fan system will target the core of the Isobel Deep fan where gross reservoir thickness is in the region of 90m and estimated gross Pmean STOIIP 241 mmbbls. The reservoir is encased within mature source rock and is the lowest risked of all the fans in this area, having a 20% chance of finding oil with up-dip seal being the main risk. Two overlapping fan lobes will be penetrated and maximum information gathered in the first well to inform the further potential in this region which has a total estimated gross Pmean STOIIP of approximately 1.5 billion barrels, and a spread of risk from 11% to 20%.

The Elaine fan will not now be penetrated at this location but provides a natural appraisal well location should Isobel prove the fan system to be hydrocarbon bearing.

Jayne East

The Jayne East well location is in sub-area PL004c where Rockhopper has a 24% working interest. It will target five easterly fed fans in a proximal position to their canyon entry point on the east flank of the syncline where up-dip fault seal is the greatest risk.

The Beverley and Casper South fans (F2) which have already been drilled and proven to be hydrocarbon bearing on the stratigraphically trapped west flank should be developed in excellent quality reservoir at this location. The eastern flank of the Zebedee fan will also be tested at this location as will the deeper F3 at the Catriona and Jayne fans altogether providing a range of GCoS from 13% to 36% and total gross Pmean STOIIP of 289 mmbbls.

Chatham/Sea Lion Gas Cap

Analysis of the Sea Lion appraisal well results indicate the likelihood of a non-equilibrium gas cap on the west flank of the field. This well will target the SL20 fan in an up-dip location where bright amplitudes and the depositional model predict the presence of good quality mass flow sands where fluid phase can be determined. If gas is absent an additional 65 mmbbls of most likely resources will be proved. However, if the gas cap is confirmed then the location may provide a suitable position for gas injection. Chatham, immediately underlying Sea Lion, will test a large channel complex derived from the north, and if successful will de-risk analogous prospects in the portfolio.

FIONA MACAULAY

CHIEF OPERATING OFFICER

4 June 2014

Chief Financial Officer's Report

From a finance perspective, the most significant events in the year include:

- Agreement in principle with FIG in relation to the quantum and timing of the capital gains tax liability associated with the 2012 farm out to Premier

- Farm-in to sub-areas PL004a and PL004c

- Cancellation of the share premium account

capital gains tax ("CGT") liability

During the year Rockhopper reached an agreement in principle with the Falkland Islands Government ("FIG") on a total capital gains tax liability of £90 million with the first tranche of £26 million paid during the year ($41 million at the rate on the date of payment) and the balance of £64 million ($107 million at the year end exchange rate) payable at the same time as the first royalty is due from the Sea Lion field. This liability was recognised at £52 million at 31 March 2013.

This movement is mainly due to the application of a 10% discount rate to the valuation of the development carry, on the basis that the non-cash proportion of the tax due will not now be payable in 2017, as originally expected, but instead at the same time as the first royalty is due from the Sea Lion field.

Included within the agreed increase is $8 million in respect of the exploration carry. Whilst an exploration carry is not usually subject to tax in the Falkland Islands, this carry can be spent elsewhere or added to the development carry and so has been treated, for tax purposes, as part of the development carry. Once any of the carry is utilised on exploration in the Falkland Islands, Rockhopper can apply for a refund on the proportion spent up to the full $8 million. This is expected to occur before the payment falls due.

The remaining balance of £64 million ($107 million at the year end exchange rate) has been disclosed as a current liability within the financial statements as at the year end as whilst an agreement in principle is in place no finalised agreement was signed as at that date.

Upon finalisation of an agreement with FIG the full balance that is currently disclosed as current will be reclassified as a non current liability. Due to its quantum, the balance will be discounted for statutory reporting purposes and will also continue to be subject to foreign exchange gains and losses each time it is retranslated at the prevailing rate at each statutory reporting date.

TAX POSITION (BASED ON AGREEMENT IN PRINCIPLE)

	£ million	$ million
Tax liability provided at 31 March 2013	52	78
Payment June 2013	(24)	(37)
Additional tax liability agreed in principle with Falkland Islands Government	38	63
Payment January 2014	(2)	(3)
Foreign exchange movements	-	6
Balance due at 31 March 2014	64	107

FARM IN TO SUB-AREAS PL004a and PL004c

In October, Rockhopper announced the signing of a Heads of Agreement with Falkland Oil and Gas Ltd ("FOGL") to farm in to sub-areas PL004a and PL004c, which are adjacent to the Sea Lion development. Under the terms of the deal Rockhopper's working interests in the two sub-areas increased to 24%. In return, FOGL's share of costs for an exploration well on each sub-area will be carried by Rockhopper and Premier Oil. Subsequent to the period end, a rig was contracted to commence a four well drilling programme in the North Falkland Basin during 2015. The gross cost to Rockhopper associated with that drilling campaign is estimated to be between $50 and  $70 million.

cancellation of the share premium account

Rockhopper decided that it could be in the future interests of its shareholders to be able to make distributions, either by way of a dividend or share buyback. Consent of shareholders was secured on 4 June 2013 at an extraordinary general meeting, and of the High Court, on 3 July 2013. Under the terms of the cancellation of the share premium account, the creation of distributable reserves can only be achieved following consent of the company's major creditors, the most significant of which is FIG.

income statement

The loss before tax for the year is $16 million compared to a profit of $47 million in the prior year. The $63 million movement relates primarily to the prior year exceptional gain made on the farm out to Premier Oil of $59 million. Other movements are detailed below.

Exploration and evaluation expenses fell by $4 million to $3 million mainly because following the farm out the cost of exploration and evaluation expenses on our licences have been borne by both parties in proportion to working interests.

Administrative expenses have increased by $5 million to $12 million. This has been due to two main drivers: Firstly, an increase of $4 million in staff costs and secondly a $2 million increase in professional fees. The increase in staff costs relate mainly to an exercise of Share Appreciation Rights by certain directors. The Remuneration Committee exercised its discretion to settle the exercise of the SARs in cash and the relevant directors elected to purchase additional shares in Rockhopper from the net proceeds, after meeting the cost of exercising the SARs and payment of the tax obligations arising therefrom. Further details are provided in the directors' remuneration report. Professional fees rose due to two factors. The main corporate activity of the company in the prior year was the farm out to Premier Oil, as such the significant professional fees incurred were included as a deduction from the gain on disposal. The increase this year has mainly related to the successful farm in transaction to sub-areas PL004a and PL004c. Other costs have remained broadly static, with the main movement being a reduction in travel costs, in particular travel overseas.

Foreign exchange was a $3 million loss for the year. The US$ has weakened since the previous year end generating a foreign exchange loss on the CGT liability which has been partially offset by a gain on the GB£ cash balances. During the first half of the year, when the corporation tax provision was smaller, the GB£ cash balances formed a natural hedge against the liability. However the increased tax liability provision gave a far greater exposure to foreign exchange movements as the US$ continued to weaken over the second half of the period under review.

Finance income has declined slightly on the prior period as whilst average cash balances held during the period have increased, following receipt of the cash proceeds of the farm out, deposit rates have declined significantly.

The tax charge of $63 million is the increase in tax liability as a result of the agreement in principle discussed above.

BALANCE SHEET

The group capitalised $2 million of expenditure relating principally to the Sea Lion development, against $7 million during the prior period. This is a result of Premier Oil assuming operatorship of the development following the farm out in October 2012 and the group benefitting from a development carry, therefore spend is limited to internal staff costs and contractors used to validate Premier Oil's concept work.

Other receivables and other payables have remained level and currently are not expected to vary considerably from their respective levels going forward.

Resources available of $247 million consist of term deposits of $185 million and cash equivalents of $62 million. This is a reduction of $51 million from the $298 million held at the previous year end. The main use of these funds has been the payment of $40 million towards our capital gains tax liability. The liability itself is discussed above.

The main movement in equity has been the cancellation of the share premium account noted above. There have been no significant movements in share capital, only the issue of shares under the Share Incentive Plan.

OUTLOOK

With $247 million of cash and term deposits on the balance sheet and around 150 million barrels of fully funded oil the company is well placed for the year ahead.

The company continues to engage in active and constructive dialogue with FIG to document the agreement in principle in relation to CGT.

Whilst Rockhopper's share of the Sea Lion development is fully financed, work will continue investigating the merits of reserve based lending and other funding sources to potentially improve on the terms already available through the standby finance.

STEWART MACDONALD

CHIEF FINANCIAL OFFICER

4 June 2014

Group income statement

for the year ended 31 March 2014

		2014	2013
		$'000	$'000
Exploration and evaluation expenses		(1,461)	(5,958)
Administrative expenses		(12,341)	(7,000)
Charge for share based payments		(797)	(906)
Foreign exchange movement		(2,631)	673
Exceptional gain on sale of intangible exploration and evaluation assets		-	58,668
Operating (loss)/profit		(17,230)	45,477
Finance income		1,499	1,640
(Loss)/profit before tax		(15,731)	47,117
Tax		(62,542)	(122,359)
LOSS FOR THE YEAR ATTRIBUTABLE TO THE EQUITY SHAREHOLDERS OF THE PARENT COMPANY		(78,273)	(75,242)
Loss per share: cents (basic & diluted)		(27.54)	(26.47)

All operating income and operating gains and losses relate to continuing activities.

Group statement of comprehensive income

for the year ended 31 March 2014

	2014	2013
	$'000	$'000
Loss for the year	(78,273)	(75,242)
Other comprehensive income for the year	-	-
TOTAL COMPREHENSIVE LOSS FOR THE YEAR	(78,273)	(75,242)

Group balance sheet

as at 31 March 2014

		31 March	31 March
		2014	2013
		$'000	$'000
ASSETS
Intangible exploration and evaluation assets		153,656	151,957
Property, plant and equipment		353	583
Other receivables		1,932	1,559
Restricted cash		309	282
Term deposits		185,000	80,377
Cash and cash equivalents		62,482	217,364
TOTAL ASSETS		403,732	452,122
CURRENT LIABILITIES
Other payables		3,084	2,744
Current tax payable		107,056	32,177
NON-CURRENT LIABILITIES
Non current tax payable		-	46,167
Deferred tax liability		39,137	39,137
TOTAL LIABILITIES		149,277	120,225
EQUITY
Share capital		4,711	4,710
Share premium		170	578,754
Share based remuneration		4,597	3,999
Shares held by SIP trust		(354)	(212)
Merger reserve		(243)	(243)
Foreign currency translation reserve		4,123	4,123
Special reserve		541,964	-
Retained losses		(300,513)	(259,234)
ATTRIBUTABLE TO THE EQUITY SHAREHOLDERS OF THE COMPANY		254,455	331,897
TOTAL LIABILITIES AND EQUITY		403,732	452,122

These financial statements were approved by the directors and authorised for issue on 4 June  2014 and are signed on their behalf by:

STEWART MACDONALD

CHIEF FINANCE OFFICER

Group statement of changes in equity

for the year ended 31 March 2014

						Foreign
						currency
	Share	Share	Share based	Shares held	Merger	translation	Special	Retained	Total
	capital	premium	remuneration	by SIP trust	reserve	reserve	reserve	losses	equity
	$'000	$'000	$'000	$'000	$'000	$'000	$'000	$'000	$'000
Balance at 31 March 2012	4,709	578,658	3,093	(139)	(243)	4,123	-	(183,992)	406,209
Total comprehensive loss for the year	-	-	-	-	-	-	-	(75,242)	(75,242)
Share based payments	-	-	906	-	-	-	-	-	906
Share issues in relation to SIP	1	96	-	(73)	-	-	-	-	24
Exercise of share options	-	-	-	-	-	-	-	-	-
Total contributions by owners	1	96	906	(73)	-	-	-	-	930
Balance at 31 March 2013	4,710	578,754	3,999	(212)	(243)	4,123	-	(259,234)	331,897
Total comprehensive loss for the year	-	-	-	-	-	-	-	(78,273)	(78,273)
Share based payments	-	-	797	-	-	-	-	-	797
Share issues in relation to SIP	1	175	-	(142)	-	-	-	-	34
Cancellation of share premium account	-	(578,759)	-	-	-	-	541,964	36,795	-
Exercise of SARs	-	-	(199)	-	-	-	-	199	-
Total contributions by owners	1	175	598	(142)	-	-	-	199	831
Balance at 31 March 2014	4,711	170	4,597	(354)	(243)	4,123	541,964	(300,513)	254,455

Group cash flow statement

for the year ended 31 March 2014

		2014	2013
		$'000	$'000
CASH OUTFLOWS FROM OPERATING ACTIVITIES
Net (loss)/profit before tax		(15,731)	47,117
Adjustments to reconcile net profits/(losses) to cash utilised:
Depreciation		282	267
Share based payment charge		797	906
Exploration impairment expenses		2	(156)
Exceptional gain on sale of intangible exploration/appraisal assets		-	(58,668)
Loss on disposal of tangible fixed assets		13	9
Interest		(1,003)	(1,212)
Foreign exchange		2,672	(957)
Operating cash flows before movements in working capital		(12,968)	(12,694)
Changes in:
Other receivables		(325)	(177)
Payables		459	(1,158)
Cash utilised by operating activities		(12,834)	(14,029)
CASH INFLOWS/(OUTFLOWS) FROM INVESTING ACTIVITIES
Exploration and evaluation assets		(2,485)	(9,258)
Purchase of equipment		(65)	(471)
Proceeds on disposal of intangible exploration/appraisal assets		665	217,475
Interest		955	1,046
Taxation		(40,382)	-
Investing cash inflows/(outflows) before movements in capital balances		(41,312)	208,792
Changes in:
Payments on account		-	3,092
Restricted cash		-	511
Term deposits		(104,623)	(22,817)
Cash raised/(utilised) by investing activities		(145,935)	189,578
CASH INFLOWS FROM FINANCING ACTIVITIES
Share incentive plan		34	24
Cash generated from financing activities		34	24
Currency translation differences relating to cash and cash equivalents		3,853	(3,918)
Net cash inflow/(outflow)		(158,735)	175,573
Cash and cash equivalents brought forward		217,364	45,709
CASH AND CASH EQUIVALENTS CARRIED FORWARD		62,482	217,364

The financial information set out above does not constitute the group's statutory accounts for the years ended 31 March 2014 or 2013, but is derived from those accounts. Statutory accounts for 2014 will be available towards the end of June 2014. The auditors have reported on those accounts: their report was unqualified and did not draw attention to any matters by way of emphasis.

 

END

 

 

FR UVSBRSRANRAR