Nodding Donkey Plc

Unaudited Final Results for the Year Ended 30 April 2015

NODDING DONKEY PLC

(“Nodding Donkey”, the “Company” or the “Group”)
 

UNAUDITED FINANCIAL STATEMENTS FOR THE 12 MONTHS ENDED 30 APRIL 2015

CHIEF EXECUTIVE OFFICER’S STATEMENT

FOR THE YEAR ENDED 30 APRIL 2015

The past few months have seen significant milestones hit, most notably the awarding of both petroleum exploration licences and coal bed methane licences that have ensured the Company controls the largest land position in Botswana for hydrocarbons.

AWARDING OF LICENCES PROSPECTIVE FOR COAL BED METHANE

In April we announced that the Company’s 86.95% owned subsidiary, Equatorial Oil & Gas plc (“Equatorial”), had been issued with two licences in Botswana prospective for coal bed methane. The two licences are both located within the Western Central Kalahari Sub-Basin and are in close proximity to proven CBM gas resources. Previous work was undertaken on these licences when they were originally part of a farm-in agreement between Equatorial and African Coal and Gas Corporation Ltd. The farm-in was subsequently terminated by mutual consent, enabling Equatorial to reapply for the key licences in its own name.

The stratigraphic drilling performed by Equatorial under the farm-in agreement yielded encouraging results, intersecting two coal horizons as anticipated. Significant total organic carbon (“TOC”) results were returned, with content of between 13.32% and 65.74% recorded from a horizon thickness of 7.88 metres, and TOC content of between 1.92% and 49.06% recorded from a horizon thickness of 3.79 metres.

The generation of methane is a function of maceral (microscopic organic constituents that make up coal) type and the thermal maturation process. As such, significant TOC values are indicative of potentially high methane gas content. The depth of the coal horizons confirmed by the borehole, being between 500 – 700 metres, also makes the target zone attractive for potential production.

AWARDING OF LICENCES PROSPECTIVE FOR SHALE GAS

In September, meanwhile, we were pleased to announce that the Group companies had been issued with three petroleum exploration licences in Botswana, all prospective for hosting shale gas.

Equatorial  has been issued with petroleum exploration licence 171/2015, which is located in the Kgalagadi district, and covers 29,291 square kilometres. The licence, which is valid for four years, is contiguous to the south of petroleum licence EL001/2012, which is controlled by Equatorial’s 85% owned subsidiary, Tamboran Botswana (Pty) Ltd (“Tamboran”). Together, the two licences cover the entirety of the Gemsbok sub-basin in South-West Botswana.

Meanwhile, Equatorial’s 85% owned subsidiary, Tamboran, has been issued with petroleum exploration licence 162/2015, which is located in the Ghanzi/Kgalagadi/Kweneng districts, and covers 34,435 square kilometres. The licence, which is valid for four years, is contiguous to the east of Tamboran’s licence EL001/2012, and is located within the Western Central Kalahari sub-basin.

The Group’s Tamboran subsidiary has also been issued with petroleum exploration licence 161/2015, which is located in the Central district, and covers 23,980 square kilometres. The licence, which is valid for four years, lies within the Northern Belt of the Central Kalahari sub-basin, and is of particular geologic significance as it covers almost the entirety of the Mmashoro sub-basin, which is a structural low that has the requisite conditions for natural gas to be hosted within shales.

The Mmashoro low is one of the deepest parts of the Kalahari Karoo basin, which is significant, as the burial depth of organic material is essential so as to enable categenesis, the conversion of kerogen to hydrocarbons, to occur. The Kalahari Karoo basin is predominantly a relatively shallow basin, and hence why the Mmashoro basin represents a high priority target within the overall Kalahari Karoo basin for hosting shale gas.

Following the awarding of these licences, steps are being put in place to commence development work, so that the potential of the licences for hosting natural gas can be determined. Based on our understanding of the geology, and progress made by others in the region, we are optimistic as to the potential of the licences for hosting natural gas.

FINANCIALS

The financial results for the twelve months to 30 April 2015 show a loss after taxation of £158,779 (2014: £121,311), which is attributable to ongoing administrative costs associated with the running of the Company, and to the development of the Group’s interests in Botswana.

If it becomes known to the Directors of the Company that the audit report is to be qualified or is modified in relation to going concern or otherwise, the terms of such qualification or modification will be announced immediately.

These financial statements have not been audited or reviewed by the Company's auditors.

OUTLOOK

We look forward to outlining plans in the coming weeks regarding the development of the Group’s licences in Botswana, and to realising value for all stakeholders. We are delighted at the Group’s licences having been awarded, and are optimistic as to their potential.

I would like to thank all investors for their patience whilst we have worked to fully establish our position in Botswana, and we look forward to the future with much optimism and excitement.

Noel Lyons

Chief Executive Officer,

30 September 2015

The Directors of Nodding Donkey plc accept responsibility for the content of this announcement.

ENQUIRIES:

Company
Noel Lyons
020 3130 0674

http://www.noddingdonkeyplc.co.uk/

Corporate Adviser
Peterhouse Corporate Finance Limited
Guy Miller / Mark Anwyl
Telephone: 020 7220 9796


 

CONSOLIDATED PROFIT AND LOSS ACCOUNT

FOR THE YEAR ENDED 30 APRIL 2015

2015 2014
Note £ £
TURNOVER - (3,288)
Administrative expenses (159,257) (120,414)
LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION (159,257) (123,702)
Tax on loss on ordinary activities  - -
LOSS ON ORDINARY ACTIVITIES AFTER TAXATION (159,257) (123,702)
Minority interests 478 2,391
LOSS FOR THE FINANCIAL YEAR  (158,779) (121,311)
Loss per share - basic and diluted 1 0.112 0.089

CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES

FOR THE YEAR ENDED 30 APRIL 2015

2015 2014
£ £
LOSS FOR THE FINANCIAL YEAR  (158,779) (121,311)
Unrealised deficit on revaluation of current asset investments (523) (1,395)
TOTAL RECOGNISED GAINS AND LOSSES RELATING TO THIS YEAR (159,302) (122,706)


 

CONSOLIDATED BALANCE SHEET

AS AT 30 APRIL 2015

2015 2014
£ £ £ £
FIXED ASSETS
Intangible assets 176,896 139,982
CURRENT ASSETS
Debtors 42,253 31,224
Investments 226 749
Cash at bank 29,152 3,291
71,631 35,264
CREDITORS:
Amounts falling due within one year  (86,404) (39,864)
NET CURRENT ASSETS (14,773) (4,600)
NET ASSETS  162,123 135,382
CAPITAL AND RESERVES
Called up share capital 362,264 344,764
Share  premium account 431,572 309,072
Revaluation reserve 226 749
Profit and loss account  (638,861) (521,066)
SHAREHOLDERS'  FUNDS 155,201 133,519
MINORITY INTERESTS  6,922 1,863
 162,123 135,382

COMPANY BALANCE SHEET

AS AT 30 APRIL 2015

2015 2014
£ £ £ £
FIXED ASSETS
Investments 12,501 12,501
CURRENT ASSETS
Debtors 206,667 190,843
Investments 226 749
Cash at bank  27,682 3,272
234,575 194,864
CREDITORS:
Amounts falling due within one year (51,105) (36,264)
NET CURRENT ASSETS 183,470 158,600
NET ASSETS 195,971 171,101
CAPITAL AND RESERVES
Called up share capital 362,264 344,764
Share  premium account 431,572 309,072
Revaluation reserve 226 749
Profit and loss account (598,091) (483,484)
SHAREHOLDERS'  FUNDS  195,971 171,101


 

CONSOLIDATED CASH FLOW STATEMENT

FOR THE YEAR ENDED 30 APRIL 2015

2015 2014
£ £
Net cash flow from operating activities (108,812) (103,849)
Returns on investments and servicing of finance - -
Capital expenditure and financial Investment (5,327) (52,289)
CASH OUTFLOW BEFORE MANAGEMENT OF LIQUID RESOURCES AND FINANCING
(114,139) (156,138)
Management of liquid resources - 89,282
Financing  140,000 20,000
INCREASE / (DECREASE) IN CASH IN THE YEAR 25,861 (46,856)

RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS/DEBT

FOR THE YEAR ENDED 30 APRIL 2015

2015 2014
£ £
Increase / (decrease) in cash in the year 25,861 (46,856)
Cash inflow/(outflow) from increase/(decrease) in liquid resources - (89,282)
CHANGE IN NET DEBT RESULTING FROM CASH FLOWS 25,861 (136,138)
Other non-cash changes (523) (4,683)
25,338 (140,821)
Net funds at 1 May 2014  4,040 144,861
NET FUNDS AT 30 APRIL 2015  29,378 4,040

Notes:

  1. EARNINGS PER SHARE

The loss and number of shares used in the calculation of loss per share are set out below:

Basic & Diluted

2015 2014
£ £
Loss for the financial year 158,779 121,311
Weighted average number of ordinary  shares 141,784,956 136,979,477
Loss per share (pence) 0.112 0.089

Due to the Group’s reported losses, share options have not been taken into account when determining the weighted average number of ordinary shares in issue during the year for the diluted EPS calculation and therefore the basic and diluted earnings per share were the same.