Information  X 
Enter a valid email address

Circle Oil PLC (COP)

  Print      Mail a friend       Annual reports

Monday 02 September, 2013

Circle Oil PLC

Half Yearly Report

RNS Number : 9248M
Circle Oil PLC
02 September 2013
 



 

INTERIM REPORT 2013

 

2 September 2013

CIRCLE OIL PLC

("Circle or the "Company")

 

2013 INTERIM RESULTS

 

Circle Oil Plc (AIM: COP), the international oil and gas exploration, development and production company, is pleased to announce its results for the six month period ended 30 June 2013.  

 

Financial Highlights

 

·     Group revenue up by 20% to US$42.3 million (H1 2012: US$35.4 million)

·     Profit for the period up by 10% to US$14.7 million (H1 2012: US$13.3 million)

·     EBITDA up by 34% to US$25.2 million (H1 2012: US$18.8 million)

·     Cash generated from operations after working capital changes up by 69% to US$23.7million

(H1 2012: US$14.1 million)

·     Available cash at 30 June 2013 up by 92% to US$23.5 million (H1 2012: US$12.2 million)

 

Operational Highlights

 

·     Aggregate oil and gas production net to Circle from Morocco and Egypt is now in the range of 6,170 boepd, an increase of 47% since year-end 2012

·     Gas sales in Morocco increased to over 6.8 MMscf/d gross (approx 900 boepd net to Circle)

·     2 new producers and 1 new water injector successfully drilled in Egypt

·     Current oil production in Egypt of approximately 11,000 bopd (4,400 bopd net to Circle)

·     NW Gemsa 12" gas export pipeline commissioned in February and current production is circa 12 MMscf/d (2,184 boepd, approx 870 boepd net to Circle)

·     New 3D seismic survey acquired offshore Tunisia

·     Mahdia permit, Tunisia working interest increased to 100%

·     New farm-in to Beni Khaled production licence in Tunisia signed giving Circle 30% a working interest

 

Professor Chris Green, CEO, commented:

"The interim results show Circle's efforts in exploration and development activities and increased production levels have been rewarded with further improved profitability. Daily oil and gas production levels are at a record level reflecting the benefit of previous investment and activity. We are also starting to move forward on our other existing assets and the recently added new Tunisian assets. Our daily gas production in Morocco has risen to in excess of 6.8 MMscf/d gross. The addition of five production wells and two water injection wells in NW Gemsa over the last 12 months has further increased oil and gas productivity which now stands at approximately 13,000 boepd gross. The delayed Moroccan drilling programme which will commence in H2 has been increased to 12 wells plus two workovers. The back to back drilling, combining both 2013 and 2014 drilling programmes, is designed to further enhance our Moroccan delivery and revenue stream. We have also tendered an additional 2D seismic survey for offshore Oman to delineate inshore exploration drilling targets."

 
 

 

CIRCLE OIL PLC

INTERIM REPORT

FOR THE SIX MONTHS ENDED 30 JUNE 2012 - UNAUDITED

 

 

CHAIRMAN'S STATEMENT

 

Circle's first half 2013 performance has seen income increases which commenced towards the end of Q1 and will show their fuller effect at financial year-end. An increase in industry offtake of natural gas in Morocco through our new pipeline has raised our gas sales to 6.8 MMscf/d. Successful drilling in Egypt has been marked by the commissioning of two new producers and one new water injector during H1 2013. Circle's share of oil and gas production from Egypt and Morocco for the first half of 2013 is now in the range of 6,170 boepd, a 47% increase over year-end 2012. While conditions in Egypt are attracting considerable media interest, our operations are unaffected and we continue to receive regular payments from EGPC. We are confident that recent additions to acreage and planned exploration and development activity will build on our recent success.

OPERATIONS

Morocco

In Morocco the period has focused on increasing production levels to take further advantage of local demands from industrial consumers at attractive prices. The daily production rate from Sebou has risen steadily from 4.5 MMscf/d in January to 6.8 MMscf/d (gross) through the half year. The interpretation of the seismic surveys acquired in 2011 over the Sebou (17 sq km) and Lalla Mimouna (135 sq km) permits is complete and has resulted in the generation of multiple potential drilling locations which can add significant reserves to the existing reserve base. The drilling activity delayed by contractual issues is now anticipated to commence later this year with an increased twelve well programme combining both 2013 and 2014 drilling programmes as well as two workovers. The wells will be split between both the Sebou and Lalla Mimouna permits. The future drilling programmes and addition of further local offtake contracts are designed to assist in filling the current 8 inch pipeline capacity and further increase our Moroccan revenue stream.

The 2013 RCR reserves estimates were completed in early 2013 and in the Sebou and Oulad N'Zala concessions, the 2P value of Gross Initial Gas Reserves is 30.15 Bscf, with 22.32 Bscf net to Circle, this being very similar to the 2012 estimate. Following production of 4.4 Bscf through to the end of June 2013, the 2P Gross Remaining Reserves are estimated to be 25.75 Bscf, with 19.02 Bscf net to Circle.

Egypt

Operational activities have continued unaffected by in-country change and ten wells in the Al Amir SE field (AASE) and four wells in the Geyad field were on production at the end of June 2013. The combined production rate of approximately 10,900 bopd (gross) and 12.6 MMscf/d (gross) of gas, gives a combined total in excess of 13,100 boepd (gross). Water injection through four wells in AASE and one well in the Geyad field is providing proven and successful pressure support to maximise recovery efficiency.   

Circle's already impressive drilling performance in Egypt was further augmented in the first half of 2013. Two successful production wells (AASE-14, AASE-17), one successful appraisal well (AASE-18) and a strategically important water injection well (AASE-16) were completed. The Shehab-2 exploration well encountered a potential gas bearing interval and, following logging, a hydraulic fracturation was completed on 30 July 2013. The test was unsuccessful with no flow to surface and the well has now been temporarily abandoned whilst alternative stimulation options are considered.

Work on the export gas line to the SUCO facility at Zeit Bay was completed early in the year and gas production was commissioned in February 2013. The daily initial production rate has risen from start up on 12 February at 8 MMscf/d to the value of 12.6 MMscf/d at end June. Valuable condensate and natural gas liquids are also stripped out of the gas and sold to EGPC.

 

The 2013 drilling programme on the development licences has been very successful and investment over the next 12 months should see reduced amounts of capital investment required as the initial field development programme approaches maturity. The spectre of consistent production levels with reducing capital expenditure contributing to a maximised revenue stream now approaches. This can be linked to optimising oilfield production for the long term and the resulting revenue stream.

The 2013 RCR reserves estimates were completed in early 2013 and in the NW Gemsa concession, the 2P value of Gross Initial Oil Reserves is 37.71 MMbo and the 2P Gross Initial Raw Gas Reserves are estimated to be 42.66 Bscf. This totals a 2P Gross Initial Reserves value of 45.05 MMboe (18.02 MMboe net to Circle). Following production of 12.2 MMboe through to the end of June 2013, the 2P Gross Remaining Reserves are estimated to be 32.85 MMboe (13.14 MMboe net to Circle). Cumulative water injection to end June 2013 was 11.5 MMbw

 

Tunisia

Operations and investment in Tunisia is now moving more centre stage as both existing and new assets are becoming active. Following the drilling of Bou Argoub-1 exploration well on the Grombalia permit in late 2012, the rig was mobilised to drill the Sedouikch exploration well on the Ras Marmour permit. The drilling location itself has received the necessary technical approvals and subject to receipt of the final environmental approvals this well is planned to be drilled in the second half of 2013. 

A 300 sq km 3D seismic survey was successfully acquired over the offshore Mahdia block in early 2013 and processing is underway, with a plan to commit to drill an exploration well in the first half of 2014. The results of the 2013 3D survey are presently being assessed and are showing the structures seen on the 2D data firming up into good drilling targets.

Post reporting period Circle announced, subject to the approval of the Tunisian authorities, that it had increased its interest in the Mahdia permit to a 100% working interest by acquiring the remaining 30% and becoming operator. Similarly post period, Circle has farmed in to an initial 30% working interest to the existing Beni Khaled production licence in Tunisia with the ability to increase this to 50%. This farm-in has the attraction of small scale existing production and a proven discovery as yet undeveloped with the possibility for low risk nearer term production.

The two recent asset increases will result in increased operational activity in the coming 12 months with Mahdia to be drilled and new 3D in Beni Khaled. Drilling in Beni Khaled is also scheduled for 2014.

Oman

The full potential of Omani assets has yet to be realised and whilst Block 49 remains of higher risk we continue to maximise its potential and a-2D seismic survey of 2,306 line kilometre was acquired over the Block in 2012. This survey was located in the south-eastern part of the permit, north-east of the 2010 3D survey. Interpretation of this 2D survey is close to completion to determine potential drilling targets. 

The farm-out process for Block 52, a long process, has continued over the first half of 2013, and, to further exploit the exploration potential of the acreage it was decided to acquire additional 2D seismic coverage over the area inshore of Sawqirah Bay. Here three potential shallow water targets have been identified and a detailed 2D seismic survey has now been tendered to acquire data before year-end. This acquisition should firm up these additional targets for drilling in this shallow water region of the block.

In addition, Circle has bid for additional acreage in the 2013 Omani bid round and awaits the adjudication. If successful this additional onshore acreage is regarded as an area with great potential for the future.

 

 

 

 

FINANCIAL REVIEW

 

Circle has delivered strong and positive results for the first half 2013. Oil and gas sales revenue has increased by 20% to US$42.3 million (H1 2012: US$35.4 million) due principally to a 49% increase in sales volume of gas in Morocco and a 16% increase in sales volume of oil in Egypt.  Sales of gas and associated liquids in Egypt, which commenced in February 2013, have also contributed to the increased sales revenue. 

 

Gross profit for the period under review increased to US$18.6 million (H1 2012: US$16.4 million) while operating profit was US$16.7 million (H1 2012: US$14.7 million) representing an increase of 13%. After administrative expenses of US$1.9 million (H1 2012: US$1.8 million) and net financing costs which amounted to US$2.0 million (H1 2012: US$1.4 million), and included US$1.1 million of non-cash accounting charges, the Group recorded a profit for the period of US$14.7 million (H1 2012: US$13.3 million).

 

EBITDA for the six month period increased by 34% to US$25.2 million (H1 2012: US$18.8 million).

 

In relation to EGPC, we continue to receive regular payments and our receivables have been maintained at a stable level over the past twelve months, despite rising levels of production.

 

During the period under review the Company drew down US$11.6 million under the Ahli United Bank working capital facility, which was used to fund all of the NW Gemsa capital and operating expenditure. At 30 June 2013, Group cash balances included US$5.1 million which was available to re-pay certain of the amounts drawn down.

 

Negotiations on concluding the reserve base lending with IFC continue at an advanced stage and will be reported in due course.

 

Net cash generated from operations before working capital changes amounted to US$25.2 million (H1 2012: US$19.0 million). Following working capital movements, net cash generated in H1 2013 amounted to US$23.7 million (H1 2012: US$14.1 million) an increase of 69%.

 

Available cash at 30 June 2013 was up by 92% at US$23.5 million (H1 2012: US$12.2 million) while the Group had net financial gearing of 3% (H1 2012: 6%).

 

The Company will shortly implement a long-term incentive plan to incentivise and retain all of its staff and further align the interests of shareholders and staff.

 

OUTLOOK 

 

Circle has finished the first half of 2013 with both its financial and operational position strengthened. The Company is about to embark on exploration activity in Morocco and Tunisia which has the potential to significantly enhance our position in these countries. The recent self-funded acquisitions which Circle made are a strong indicator of our strategy to grow the business and our continuing belief in the opportunities which are available in the MENA region. Circle will seek to grow our business both through the drill bit and through careful, value-driven operations and acquisitions.  

 

 

Thomas Anderson

Chairman

30 August 2013

 

 

 

Glossary

 

bopd

Barrels of oil per day

boepd

Barrels of oil equivalent per day

Bscf

Billions of standard cubic feet of gas

bwpd

Barrels of water per day

CPR

Competent Person Report

EBITDA

Earnings before interest, tax, depreciation and amortisation

EGPC

Egyptian General Petroleum Company

MD

Measured depth

MENA

Middle-East North Africa

MMbo

Millions of barrels of oil

MMboe

Millions of barrels of oil equivalent

MMbw

Millions of barrels of water

MMscf/d

Millions of cubic feet of gas per day

RCR

Reserves Certification Report

sq km

Square kilometres

2D

Two dimensional

3D

Three dimensional

2P

Probability of success 50%

 

 

 

 

 

Circle Oil PLC

CONDENSED CONSOLIDATED INCOME STATEMENT

FOR THE SIX MONTHS ENDED 30 JUNE 2013 - UNAUDITED

 


Notes

6 months to

30 June 2013


6 months to

30 June 2012


Year ended 31 December 2012

                     


US$000


US$000


US$000








Revenue

3

42,334


35,359


73,270








Cost of sales


(23,762)


(18,919)


(41,482)








Gross profit


18,572


16,440


31,788








Administrative expenses


(1,943)


(1,767)


(3,610)








Foreign exchange gain


53


68


11








Operating profit


16,682


14,741


28,189








Finance revenue

6

228


1,789


2,312








Finance costs

7

(2,227)


(3,184)


(5,249)








Profit before taxation


14,683


13,346


25,252






Taxation


-


-


(9)








Profit for the financial period


14,683


13,346


25,243








Basic earnings per share

2

2.61c


2.37c


4.48c








Diluted earnings per share

2

2.37c


2.22c


4.17c

 

 

 

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 30 JUNE 2013 - UNAUDITED

 



6 months to

30 June 2013


6 months to

30 June 2012


Year ended

31December 2012



US$000

 


US$000

 


US$000

 

Profit for the financial period


14,683


13,346


25,243








Total income and expense recognised in other comprehensive income


 

-


 

-


 

-








Total comprehensive income for the period - entirely attributable to equity holders


 

14,683


 

13,346


 

25,243

 

 

 

Circle Oil PLC

CONDENSED CONSOLIDATED statement of financial position

AT 30 JUNE 2013 - UNAUDITED

                                                                          


Notes

30 June

2013


30 June

2012


31 December

2012



US$000


US$000


US$000 

 

Assets

Non-current assets







Exploration and evaluation assets

4

72,456


55,851


64,817

Production and development assets

5

144,893


134,618


135,530

Property, plant and equipment


113


129


108

Deferred transaction costs


151


-


279



217,613


190,598


200,734

Current assets







Inventories


14


17


19

Trade and other receivables


43,574


41,169


39,769

Cash and cash equivalents

8

30,632


13,761


20,391



74,220


54,947


60,179








Total assets


291,833


245,545


260,913








Equity and liabilities







Capital and reserves







Share capital


8,084


8,084


8,084

Share premium


167,083


167,083


167,083

Other reserves


12,917


12,917


12,917

Retained earnings


42,574


15,994


27,891








Total equity


230,658


204,078


215,975








Non-current liabilities







Trade and other payables


2,602


3,551


3,554

Convertible loan - debt portion


25,623


23,918


24,501

Derivative financial instruments


215


-


284

Decommissioning provision


319


291


291








Total non-current liabilities


28,759


27,760


28,630

 

Current liabilities







Trade and other payables


20,818


13,666


16,281

Bank borrowings

9

11,573


-


-

Current tax


25


41


27








Total current liabilities


32,416


13,707


16,308








Total liabilities


61,175


41,467


44,938








Total equity and liabilities


291,833


245,545


260,913

 

 

 Circle Oil PLC

CONDENSED CONSOLIDATED cash flow statement

FOR THE SIX MONTHS ENDED 30 JUNE 2013 - UNAUDITED

                                                                                

                                                                                


Notes

6 months to

30 June

2013


6 months to

30 June

2012


Year ended

31 December

2012

 

Operating activities


US$000


US$000

 


US$000

 

Net cash generated from operations

10

23,695


14,056


39,275

Deferred income


-


2,740


2,990

Taxes paid


-


-


(24)








Net cash inflow from operating activities


23,695


16,796


42,241








Cash flows from investing activities







Payments to acquire exploration and evaluation assets


(9,426)


(7,798)


(11,903)

Payments to acquire production and development assets


(14,598)


(8,824)


(22,502)

Payments to acquire property, plant and equipment


(44)


(42)


(57)

Interest received


10


4


53








Net cash used in investing activities


(24,058)


(16,620)


(34,409)








Cash flows from financing activities







Loan drawdown


11,573


-


-

Interest  paid


(1,040)


(893)


(1,800)








Net cash from financing activities


10,533


(893)


(1,800)








Increase/(decrease) in cash and cash equivalents


10,170


(717)


6,032








Cash and cash equivalents at beginning of period


20,391


14,383


14,383








Effect of foreign exchange rate changes


71


95


(24)








Cash and cash equivalents at end of period


30,632


13,761


20,391








 

 

 

 

Circle Oil PLC

consolidated STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED 30 JUNE 2013 - UNAUDITED

 



 

Share capital

US$000


 

Share premium US$000


 

Other

reserves

US$000


 

Translation reserve

US$000


Retained

earnings/ (deficit)

US$000

 












At 1 January 2012


8,084


167,083


6,661


(3)


2,648












Issue of share capital


-


-


-


-


-












Share based payment


-


-


-


-


-












Equity component of convertible loan


-


-


6,259


-


-












Net profit for period


-


-


-


-


13,346












At 30 June 2012


8,084


167,083


12,920


(3)


15,994












Issue of share capital


-


-


-


-


-












Share-based payment


-


-


-


-


-












Reserve transfer


-


-


-


-


-




 








Net profit for period


-


-


-


-


11,897












At 31 December  2012


8,084


167,083


12,920


(3)


27,891












Issue of share capital


-


-


-


-


-












Share based payment


-


-


-


-


-












Reserve transfer


-


-


-


-


-












Net profit for period


-


-


-


-


14,683












At 30 June 2013


8,084


167,083


12,920


(3)


42,574

 

 

 

 

 

 

 

Circle Oil PLC

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED 30 JUNE 2013

 

1.   Basis of preparation

 

The condensed consolidated financial statements have been prepared using accounting policies consistent with International Financial Reporting Standards (IFRS) and in accordance with International Accounting Standard (IAS) 34 Interim Financial Reporting.

 

The accounting policies and methods of computation used in these interim financial statements are consistent with those used in the most recent annual audited financial statements and those envisaged for the year ended 31 December 2013 financial statements, with the exception of the following:

                       

Adoption of new and revised Standards

 

The following new and revised Standards have been mandatorily adopted by the Group during the period. Their adoption has not had a material impact on the financial statements of the Group.

 

            IFRS 7 (amended) Financial Instruments: Disclosures (effective for accounting periods beginning on or after 1 January 2013)

            IFRS 9 Financial Instruments (effective for accounting periods beginning on or after 1 January 2013)

IFRS 13 Fair Value Measurement (effective for accounting periods beginning on or after 1 January 2013)

            IAS 1 Presentation of Financial Statements (effective for accounting periods beginning on or after 1 July 2012)

IAS 19 Employee Benefits (effective for accounting periods beginning on or after 1 January 2013)

 

                                                                       

2.   Basic and diluted earnings per share

 

The calculation of basic earnings per share attributable to the ordinary equity holders is based on the following data:

 


30 June

2013


30 June

2012


31 December

2012


US$000


US$000


US$000

Profit for period attributable to equity holders of the parent

 

14,683


 

13,346


 

25,243








'000


'000


'000

Weighted average number of ordinary shares for the purposes of basic earnings per share

 

563,353


 

563,353


 

563,353

                                                                       

Diluted earnings per share is calculated using the weighted average number of ordinary shares assuming the conversion of its potential dilutive ordinary shares outstanding which relate to the convertible loan, warrants and employee share options. All of the Group's potential ordinary shares were dilutive for the period ended

30 June 2013 which resulted in a decrease in earnings per share. The Group had total potential ordinary shares outstanding of 131,337,728 at 30 June 2013 (2012: 105,429,005).

 

 

 

3.   Segmental reporting

                                                                             

Six months to 30 June 2013

Africa


Middle-East


Corporate


Total


US$000


US$000


US$000


US$000









Revenue

42,334


-


-


42,334









Cost of sales

(15,311)


-


-


(15,311)









Depreciation

(8,451)


-


-


(8,451)









Gross profit

18,572


-


-


18,572









Administration expenses

(777)


(215)


(951)


(1,943)










17,795


(215)


(951)


16,629









Finance costs

(361)


-


(1,866)


(2,227)









Finance revenue

149


-


79


228









Foreign exchange gain

33


-


20


53









Profit/(loss) before taxation

17,616


(215)


(2,718)


14,683









Taxation

-


-


-


-









Profit/(loss) for the period

17,616


(215)


(2,718)


14,683









Total assets

241,474


36,191


14,168


291,833









Total liabilities

(34,518)


(107)


(26,550)


(61,175)

 

 








 

Sales revenue in Africa of US$42.33million (H1 2012: US$35.36 million) consists of US$33.28 million in oil sales and US$0.63 million in gas and associated liquid sales in Egypt together with US$8.42 million in gas sales in Morocco. Corporate comprises mainly corporate expenses, cash and other assets and liabilities not directly attributable to an operating segment.

 

 

Six months to 30 June 2012

Africa


Middle-East


Corporate


Total


US$000


US$000


US$000


US$000









Revenue

35,359


-


-


35,359









Cost of sales

(14,876)


-


-


(14,876)









Depreciation

(4,043)


-


-


(4,043)









Gross profit

16,440


-


-


16,440









Administration expenses

(742)


(81)


(944)


(1,767)










15,698


(81)


(944)


14,673









Finance costs

-


-


(3,184)


(3,184)









Finance revenue

81


-


1,708


1,789









Foreign exchange gain

59


-


9


68









Profit/(loss) before taxation

15,838


(81)


(2,411)


13,346









Taxation

-


-


-


-









Profit/(loss) for the period

15,838


(81)


(2,411)


13,346









Total assets

205,852


26,358


13,335


245,545









Total liabilities

(14,800)


(2,021)


(24,646)


(41,467)









 

 

 

Twelve months to 31 December 2012

Africa


Middle-East


Corporate


Total


US$000


US$000


US$000


US$000









Revenue

73,270


-


-


73,270









Cost of sales

(30,490)


-


-


(30,490)









Depreciation

(10,992)


-


-


(10,992)









Gross profit

31,788


-


-


31,788









Administration expenses

(1,816)


(357)


(1,437)


(3,610)










29,972


(357)


(1,437)


28,178









Finance costs

(21)


-


(5,228)


(5,249)









Finance revenue

87


-


2,225


2,312









Foreign exchange gain/(loss)

13


(1)


(1)


11









Profit/(loss) before taxation

30,051


(358)


(4,441)


25,252









Taxation

-


-


(9)


(9)









Profit/(loss) for the year

30,051


(358)


(4,450)


25,243









Total assets

206,626


34,008


20,279


260,913









Total liabilities

(12,150)


(6,535)


(26,253)


(44,938)

















 

 

 

4. Exploration and evaluation assets

 

The movement on exploration and evaluation assets which relate to oil and gas interests during the period was:

 

Six months to 30 June 2013


 

Opening

balance

US$000


 

 

Additions

US$000


 

Closing

balance

US$000








Africa


30,840


6,809


37,649

Middle-East


33,977


830


34,807








30 June 2013


64,817


7,639


72,456

 

Six months to 30 June 2012

 


 

Opening

balance

US$000


 

 

Additions

US$000


 

Closing

balance

US$000








Africa


27,342


2,162


29,504

Middle-East


25,798


549


26,347








30 June 2012


53,140


2,711


55,851

 

Twelve months to 31 December 2012

 


 

Opening

balance

US$000


 

 

Additions

US$000


 

Closing

balance

US$000








Africa


27,342


3,498


30,840

Middle-East


25,798


8,179


33,977








31 December 2012


53,140


11,677


64,817

 

Oil and gas interests at 30 June 2013 represent exploration and related expenditure on the Group's licences & permits in the geographical areas noted above. The realisation of these intangible assets by the Group is dependent on the development of economic reserves and the ability of the Group to raise sufficient funds to develop these interests. Should the development of economic reserves prove unsuccessful, the carrying value in the statement of financial position will be written off.

 

The Directors have considered whether facts or circumstances exist that indicate that exploration and evaluation assets are impaired and consider that no impairment loss is required to be recognised as at 30 June 2013. Exploration and evaluation assets have been assessed for impairment having regard to the likelihood of further expenditures and ongoing appraisal for each geographical area.

 

 

 

5. Production and development assets

 

The movement on production and development assets which relate to oil and gas interests during the period was:

 

Cost


Africa

US$000


Total

US$000






At 1 January 2012


141,809


141,809






Additions


12,429


12,429






At 30 June 2012


154,238


154,238






Additions


7,853


7,853






At 31 December 2012


162,091


162,091






Additions


17,814


17,814






At 30 June 2013


179,905


179,905

 

Accumulated depreciation


Africa

US$000


Total

US$000






At 1 January 2012


15,577


15,577






Charge for financial period


4,043


4,043






At 30 June 2012


19,620


19,620






Charge for financial period


6,941


6,941






At 31 December 2012


26,561


26,561






Charge for financial period


8,451


8,451






At 30 June 2013


35,012


35,012

 

Net book value

 


Africa

US$000


Total

US$000






At 30 June 2012


134,618


134,618






At 31 December 2012


135,530


135,530






At 30 June 2013


144,893


144,893

 

 

 

6.   Finance revenue



6 months to

30 June

2013


6 months to

30 June

2012


Year ended

31 December 2012



US$000


US$000


US$000

Interest receivable


9


42


52

Gain on fair value of conversion option


-


1,666


1,666

Gain on fair value of additional option to subscribe for shares


70


-


507

Unwinding of deferred revenue


149


81


87










228


1,789


2,312

 

7.    Finance costs

 



6 months to

30 June

2013


6 months to

30 June

2012


Year ended

31 December

2012



US$000


US$000


US$000

Interest payable - Convertible loan and bank


1,094


893


1,800

Unwinding of discount on debt portion of convertible loan


1,122


2,335


3,707

Amortisation of transaction costs


131


28


31

Unwinding of discount on decommissioning provision


28


21


21



2,375


3,277


5,559

Less: Interest capitalised


148)


(93)


(310)










2,227


3,184


5,249

 

8.   Cash and cash equivalents

 

Cash balances at 30 June 2013 of US$30.63 million (H1 2012: US$13.76 million) include restricted cash amounts of US$7.15 million (H1 2012: US$1.55 million).

 

                                                                       

9.   Bank borrowings

 

On 19 December 2012, Circle agreed a US$12.5 million secured working capital facility with AHLI United Bank Egypt. This facility is available to fund ongoing expenditure in respect of Circle's interest in the NW Gemsa Concession in Egypt. As at 30 June 2013 Circle had drawn down US$11.57 million of this facility and had US$5.15 million in cash restricted accounts available for repayment of certain of the amounts drawn down, thus giving an effective net borrowing of US$6.42 million at that date.

 

 

10.  Reconciliation to net cash generated from operations

 



6 months to

30 June

2013


6 months to

30 June

2012


Year ended

31 December

2012



US$000


US$000

 


US$000

Profit before taxation


14,683


13,346


25,252

Finance revenue


(228)


(1,789)


(2,312)

Finance costs


2,227


3,184


5,249

Increase/(decrease) in trade and other payables


1,970


(2,731)


(1,026)

(Increase)/decrease in trade and other receivables


(3,380)


(1,957)


1,013

Decrease in inventory


4


19


17

Foreign exchange (gain)/loss


(71)


(95)


24

Depreciation


8,490


4,079


11,058








Net cash generated from operations


23,695


14,056


39,275

 

 

11.   Interim Report

         

        Copies of the Interim Report are available by download from the Company's web-site at www.circleoil.net 

 

For further information contact:
 
Circle Oil Plc (+44 20 7638 9571)
Professor Chris Green, CEO
Brendan McMorrow, CFO
 
Investec (+44 20 7597 5970)
Chris Sim
George Price
James Rudd
 
Liberum Capital Limited (+44 20 3100 2222)
Simon Atkinson
 
Citigate Dewe Rogerson (+44 20 7638 9571)
Martin Jackson
Jack Rich

Murray Consultants (+353 1 498 0320)
Joe Murray
Joe Heron

 
Notes to Editors
 
Circle Oil Plc (AIM: COP) is an international oil & gas exploration, development and production Company holding a portfolio of assets in Morocco, Tunisia, Oman, and Egypt with a combination of low-risk, near-term production, and significant upside exploration potential.  The Company listed on AIM in October 2004.
 
Internationally, the Company has continued to expand its portfolio over the past years and now has assets in the Rharb Basin, Morocco; the Ras Marmour Permit in southern Tunisia; the Mahdia Permit offshore Tunisia, and the Zeit Bay area of Egypt. Circle also has the largest licensed acreage of any company in Oman. In addition to its prospective Block 52 offshore, Circle has an ongoing exploration programme in Block 49 onshore.
 
Circle's strategy is to locate and secure additional licences in prospective hydrocarbon provinces and, through targeted investment programmes, monetise the value in those assets for the benefit of shareholders. This could be achieved through farm-outs to selected partners who would then invest in and continue the development of the asset into production, or Circle may opt to use its own expertise to appraise reserves and bring assets into production, generating sustained cash flow for further investment.
 
Further information on Circle is available on its website at www.circleoil.net

This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
IR NKKDPPBKDCFN

a d v e r t i s e m e n t