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New World Oil & Gas (NEW)

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Tuesday 30 September, 2014

New World Oil & Gas

Replacement: Unaudited Interim Results

RNS Number : 0849T
New World Oil & Gas
30 September 2014
 



The announcement below replaces the announcement "Unaudited Interim Results" with number 0808T made at 17.50 today and which now contains contact details for the company and advisers.    All other text remains the same.

 

New World Oil and Gas Plc/Index: AIM/Epic: NEW/ Sector: Oil & Gas

30 September 2014

New World Oil and Gas Plc ('New World' or 'the Company')

Unaudited Interim Results

 

New World Oil and Gas Plc, and oil and gas exploration and development company, announces its unaudited interim results for the six months ended 30 June 2014.

 

Chairman's Statement

 

During the first half of 2014, the Company has expended continuing efforts to progress the Niel Petroleum ('NP') subscription which involves a US$25 million investment into New World by NP as originally announced in August 2013.

 

Whilst discussions have continued with NP, we regret to inform shareholders that we have not yet seen evidence of sufficient funds for the subscription to proceed although we continue to be assured on a frequent basis that we will and, as noted below, have already received an amount of US$4.8 million in escrow. As announced on 30 July 2014, the subscription would now be subject to the waiver of the obligation on NP to make a general offer under Rule 9 of the Takeover Code being approved by independent shareholders on a poll. It is also, as previously announced, subject to due diligence and such regulatory approvals as are required.

 

Turning now to our existing projects, during the first half of 2014 we were successful in re-negotiating and extending work programme deadlines in our three Danish licences, allowing us additional time to locate and negotiate farm-out agreements.  Over the past 6 months, we have met with and discussed the projects with a number of potentially interested parties, and we continue to do so. In Belize, where we currently hold a 100% working interest in the Blue Creek Project, the deadline for the expiration of our Production Sharing Agreement has been extended to October 2015.  With our local partners, Blue Creek Exploration Ltd, we continue to seek out and discuss possible farm-out partnerships. In addition, we have attended industry conferences in both America and in Europe, in our continuing effort to find partners. Finally, we have contracted a reputable search firm to assist in the farm-out process.

 

Outlook

 

Your Board and management is well aware of the frustration and disappointment felt by our shareholders over the past year.  We continue to work in close partnership with Niel Petroleum to progress the subscription with a view to closing the deal and securing the finance.  It has been a trying time for all of us but we remain convinced that completion of the NP subscription would be an important part of New World's future success. 

 

Bill Kelleher

2014

 

 

Operations Review

 

Belize:

 

The 100%-owned Blue Creek Project ('Blue Creek') is located in the producing Petén Basin in Northwest Belize.  The 315sq km licence block is made up of two oil concessions, Blue Creek and West Gallon Jug, granted under a Production Sharing Agreement ('PSA') with the government of Belize. 

 

The licence blocks are located in a highly prospective area 175km east of the Perenco operated >300MMbbl Xan field in Guatemala, approximately 300km south east of giant oil fields in Mexico.  Closer to home, Blue Creek is 28km north west of Belize Natural Energy's producing Spanish Lookout and 18km west of its Never Delay fields which were discovered in 2005 and are currently producing approximately > 2,200 bopd.  Analysis of crude oil produced in the region, (Spanish Lookout, Eagle-1, Canal Bank-1), and from oil seeps (Calla Creek), found in northwest Belize revealed that the oil originates from several different source rock sequences that lie in the deeper sub-basin to the west and northwest of the Blue Creek licence area in northern Guatemala and southern Mexico.  Present day migration of at least one crude oil, (which is not biodegraded), is indicated by the shallow Calla Creek seep, located south and up-dip of the New World licence area.  All of this is greatly encouraging and we remain of the view that an active working hydrocarbon system exists along the eastern margin of the Petén basin.

 

During 2014, our subsidiary, New World Oil and Gas (Belize Operations) ltd has carried out geochemical analysis of crude oil saturated cuttings collected from different stratigraphic intervals of the Yalbac and Hill Bank formations penetrated in the Blue Creek-2 well. The results of the analysis have been compared to other crude oils in the Petén Basin. The work was done at the organic geochemistry laboratory of the Geophysical Survey of Denmark and will help us better understand the possible migration pathways from source areas.

 

We continue our discussions with potential farm-in partners for the Blue Creek Project and will update the market on our progress in due course.

 

Denmark:

 

New World has a 25% working interest in two projects in Denmark.  The Danica Resources Project is made up of one large licence, 1/08, totalling 1.67 million acres in the highly prospective northern margin of the Southern Permian Basin, in the Baltic region of southeast Denmark.  North West Europe contains some of the world's largest gas reserves.  The Permian Zechstein platform margin extends across the 1/08 licence area from North East Germany where 13 oil and gas fields are located.  The Zechstein carbonate and Rotliegend sandstone gas plays are the most productive in onshore North West Europe.  Additionally, Triassic sandstones, comparable to those found in the Danica Resources licence area, form highly productive reservoirs in the adjacent North Sea.  The Groningen field, located in northern Netherlands in the Southern Permian Basin was discovered in 1959 and opened up the North Sea play with its 100 TCF gas discovery.  To provide scale to these figures the entire UK consumes 4 TCF of natural gas per year.

 

New World's second Danish project is the Danica Jutland Project, totalling 1.015 million acres, consisting of two onshore oil and gas licences, 1/09 and 2/09, located in an underexplored area in Jutland, South Western Denmark, on the southern edge of the Northern Permian Basin.  The licences are surrounded by Zechstein oil and gas production, and new discoveries including the Johan Sverdrup discovery located off the coast of Stavanger in the Norwegian North Sea that is expected to produce 120,000 to 200,000 bopd.  According to RPS, the southern flank of the Northern Permian Basin can be regarded as a mirror image of the northern flank of the Southern Permian Basin where productive reservoirs have been proved in the early Zechstein cycles, notably in Poland and Germany. 

 

As agreed with the North Sea Fund ('NSF') and the Danish Energy Agency ('DEA'), the Company carried out additional technical work in the form of a Vaportec style geochemical survey during the summer of 2014, with the deployment and collection of a total of 626 samples.  Additionally 678.8 km of 2-D seismic lines were re-processed. The Company is currently analysing the results of these activities, and updated findings will be submitted to both the NSF and DEA later this year.  As part of the request for extensions for all three of New World's licences which now expire in March 2015, an offshore portion of Licence 1/08 has been relinquished.

 

General

 

Pending the completion of the Niel subscription, the Company continues to review potential projects that would offer immediate or short-term cash flow. Projects in California, Africa and the Middle East have been analysed, and the process will continue in the coming months.

 

Financial Review

 

As an exploration and development company with no current revenues, we are reporting a loss of for the six months ended June 30, 2014 of US$1.9 million.  The Company continues to hold the line on expenditures and overheads have been kept to a minimum during the period. In 2014, the Company has eliminated all consultant contracts and the Executive Directors have been diverting 20% of their salary to repay the loans used to participate in the April 2013 Placing.

 

The Company has also suspended any share issuance for Directors and employees until such time as the Niel Subscription can be completed. New World does not currently have any contractor or consultant liabilities that would require payment by shares.

 

As part of the Niel/Alfahaid deal, the Company has made a Euro 1 million down payment on the acquisition of 49% of the shares of Al Maraam, the local Kuwaiti trading company. In the event that the deal is not completed, our agreement with Dr. Alfahaid provides for a return of the deposit to New World.

 

In conjunction with the completion of the Niel subscription, the Company has received US$4.8 million pending the completion of the subscription. In addition, Niel has agreed that the on-going operating and overhead expenses of New World until the completion can be off-set from the amount which might ultimately be repaid out of the escrow account.

 

 

Georges Sztyk

2014

 

 

Consolidated Statement of Comprehensive Income

For the 6 months ended 30 June 2014

 







Note

$'000

$'000

$'000








Six months ended 30 June 2014

Six months ended June 2013

Year ended

31 December 2013








(Unaudited)

(Unaudited)

(Audited)







Revenue



-

-

-







Dry-well costs written off



-

(6,891)

(7,071)

Project management and development



(643)

(848)

(1,947)

Administrative expenses



(1,039)

(1,244)

(2,286)

Legal and professional costs



(243)

(264)

(285)




_______

_______

_______

Operating Loss



(1,925)

(9,247)

(11,589)

Interest receivable



12

8

22

Provision for losses on financial instrument



(21)

(259)

(378)




_______

_______

_______

Loss before Taxation



(1,934)

(9,498)

(11,945)

Income tax



-

-

-




_______

_______

_______

Loss for the period



(1,934)

(9,498)

(11,945)




_______

_______

_______

Other comprehensive income:



-

-

-




_______

_______

_______

Total comprehensive loss for the period



(1,934)

(9,498)

(11,945)




======

======

======







Basic loss per share (expressed in cents)


2

(0.28)

(1.80)

(1.94)

 

 

 

Consolidated Statement of Financial Position

As at 30 June 2014

 

 








$'000

$'000

$'000








30 June 2014

30 June 2013

31 December 2013







Notes

(Unaudited)

(Unaudited)

(Audited)











ASSETS





NON-CURRENT ASSETS






Intangible assets - exploration expenditure


3

12,406

12,215

12,349

Tangible assets - plant and equipment



28

177

29

Other receivables



-

771

-








________

________

________

Total non-current assets



12,434

13,163

12,378




________

________

________











CURRENT ASSETS






Inventories



70

100

90

Cash and cash equivalents


4

2,876

3,470

1,108

Trade and other receivables


5

2,526

1,351

1,500




________

________

________

Total current assets



5,472

4,921

2,698








________

________

________

TOTAL ASSETS



17,906

18,084

15,076




________

________

________

LIABILITIES






Current liabilities






Trade and other payables


6

(5,319)

(1,266)

(555)








________

________

________

Total current liabilities



(5,319)

(1,266)

(555)




________

________

________











NET CURRENT ASSETS



153

3,655

2,143




________

________

________

NET ASSETS



12,587

16,818

14,521




=======

=======

=======

 






SHAREHOLDERS' EQUITY






Share capital



-

-

-

Share premium



47,369

47,369

47,369

Share-based payment reserve



920

770

920

Retained losses



(35,702)

(31,321)

(33,768)




________

________

________

TOTAL EQUITY



12,587

16,818

14,521




=======

=======

=======







 

 

 

Consolidated Statement of Cash Flows

For the 6 months ended 30 June 2014

 








$'000

$'000

$'000








Six months ended 30 June 2014

Six months ended 30 June 2013

Year ended

31 December 2013








(Unaudited)

(Unaudited)

(Audited)











Cash flows from operating activities





Operating loss



(1,925)

(9,247)

(11,589)

Decrease/(increase) in receivables



54

1,186

1,689

Increase/(decrease) in payables



214

3,060

(3,771)

Decrease/(increase) in inventories



20

364

374

Depreciation

Loss on disposal of fixed assets



1

-

14

-

21

119




________

________

________

Net cash outflow from operating activities



(1,636)

(10,743)

(13.157)








________

________

________







Returns on investments and servicing of finance






Interest received



12

8

22




________

________

________

Net cash inflow from returns on investments and servicing of finance



12

8

22




________

________

_______

Investing activities






Payments for exploration expenditure



(57)

(1,528)

(1,662)

Net Proceeds/(Payments) from disposal of plant and equipment



-

(11)

11

Advance to Al-Maraam



(1,368)

-

-




________

________

________

Net cash outflow from investing activities



(1,425)

(1,539)

(1,651)








________

________

________







Cash flows from financing activities






Issue of ordinary share capital



-

10,351

10,565

Expenses relating to share issues



-

(696)

(760)

Executive directors' participation in placing

Net realisation/acquisition of financial instruments

Niel Petroleum S.A. Advance



-

17

4,800

(1,000)

(565)

-

(1,000)

(565)

-








________

________

________

Net cash inflow from financing activities



4,817

8,090

8,240




________

________

________

Net increase/(decrease) in cash and cash equivalents



1,768

(4,184)

(6,546)







Cash and cash equivalents at beginning of period



1,108

7,654

7,654








________

________

________

Cash and cash equivalents at end of period



2,876

3,470

1,108




=======

=======

=======







 

 

 

Consolidated Statement of Changes in Equity

For the 6 months ended 30 June 2014

 






Share premium

Share-based payment reserve

Retained loss

 

 

 

Total






$'000

$'000

$'000

$'000










Balance at 1 January 2013


37,714

770

(21,823)

16,661







Total comprehensive loss for the period


-

-

(9,498)

(9,498)

 

Transactions with owners in their capacity as owners

 

Shares issued


10,351

-

-

10,351

Cost of shares issued


(696)

-

-

(696)






_______

_______

_______

_______

At 30 June 2013


47,369

770

(31,321)

16,818



======

======

======

======

 

Balance at 1 January 2013


     37,714

770

(21,823)

16,661







Total comprehensive loss for the period


-

-

(11,945)

(11,945)

 

Transactions with owners in their capacity as owners

 

Shares issued


10,565

-

-

10,565

Cost of shares issued


(760)

-

-

(760)

Share-based payments


(150)

150

-

-






_______

_______

_______

_______

At 31 December 2013


47,369

920

(33,768)

14,521



======

======

======

======

 

Balance at 1 January 2014


47,369

920

(33,768)

14,521







Total comprehensive loss for the period


-

-

(1,934)

(1,934)

 

Transactions with owners in their capacity as owners

 

Shares issued


-

-

-

-

Cost of shares issued


-

-

-

-



_______

_______

_______

_______

At 30 June 2014


47,369

920

(35,702)

12,587



======

======

======

======

 

 

 

Notes to the Interim Report

 

 

1.         PRINCIPAL ACCOUNTING POLICIES

                Presentation of Interim results

This interim report was approved by the Directors on 30th September 2014.  The results for the 6 months ended 30 June 2014 have not been audited, but were the subject of an independent review carried out by the Company's auditors, Chapman Davis LLP.  Their review confirmed that the figures were prepared using applicable accounting policies and practices consistent with those adopted in the 2013 annual report and to be adopted in the 2014 annual report.  The financial information contained in this interim report does not constitute statutory accounts as defined by the Companies (Jersey) Law 1991.

 

The interim accounts have been prepared under the historical cost convention in accordance with International Financial Reporting Standards as adopted by the European Union.

The Directors acknowledge their responsibility for the interim report and confirm that, to the best of their knowledge, the interim consolidated financial statements for the six months ended 30 June 2014 have been prepared in accordance with International Financial Reporting Standards, including IAS 34 "Interim Financial Statements", and complies with the listing requirements for companies trading securities on the AIM market. This interim report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report should be read in conjunction with the annual report for the year ended 31 December 2013. 

The Directors are of the opinion that ongoing evaluations of the Company's interests indicate that preparation of the accounts on a going concern basis is appropriate.

 

2.         LOSS PER SHARE

 








$'000

$'000

$'000








Six months ended 30 June 2014

Six months ended 30 June 2013

Year ended

31 December 2013








(Unaudited)

(Unaudited)

(Audited)











Loss for the period


(1,934)

(9,498)

(11,945)







Weighted average number of ordinary shares in issue - millions



 

703

 

527

 

615







Loss per share - basic (cents)



(0.28)

(1.80)

(1.94)

 

No diluted loss per share is presented as the effect of the exercise of outstanding warrants is to decrease the loss per share.

 

 

3.             INTANGIBLE ASSETS - Exploration Expenditure

 




$'000






Carrying value at 1 January 2013


10,687






Additions in the six months ended 30 June 2013:


1,528









______


Carrying value at 30 June 2013





12,215









______






Carrying value at 1 January 2013


10,687






Additions in year to 31 December 2013:


1,662









______







12,349









______






Carrying value at 1 January 2014


12,349






Net additions in the six months ended 30 June 2014:


57









______


Carrying value at 30 June 2014





12,406









______

 

4.             CASH AND CASH EQUIVALENTS

 

The balance as at 30 June 2014 includes $2,657,000 held within the Special Purpose Bank Account set up by the transfer of funds of $4.8 million from Niel Petroleum S.A. of which $4.55 million related to the Share Subscription Agreement and $0.25 million was a deferment charge.

 

5.             TRADE AND OTHER RECEIVABLES

 

The balance as at 30 June 2014 includes $1,368,000 representing the advance of €1 million in relation to the proposed acquisition of a 49% equity interest in Al-Maraam Al-Ahliya Company for General Trading and Contracting LLC.

 

6.             TRADE AND OTHER PAYABLES

 

The balance as at 30 June 2014 includes $4,550,000 representing the advance from Niel Petroleum S.A. in respect of the Share Subscription Agreement.

 

7.             REVENUE AND SEGMENTAL ANALYSIS  

 

Segment information is presented in respect of the Group's management and internal reporting structure.  The Group had no revenue during the year.

 

Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis.

 

Operating and Geographical segments

The Group comprises the following operating segments:

 

Corporate - Parent company administrative costs, general business development and AIM related costs. 

 

Exploration & development - costs in relation to the Group's direct oil and gas exploration operations.

 

 

Six months ended 30 June 2014

Business Segments



Corporate

Exploration & development

Total








$'000

$'000

$'000











Result










Loss for the period



(1,934)

-

(1,934)




======

======

======

Balance sheet





Segment assets



5,430

12,476

17,906

Segment liabilities



(5,231)

(88)

(5,319)




_______

_______

_______

Net assets


199

12,388

12,587




======

======

======

 

Geographical segments


Denmark

Belize

Jersey

Total







$'000

$'000

$'000

$'000











Result





Loss for the period


-

-

(1,934)

(1,934)


======

======

======

======







Balance Sheet






Segment assets - Intangible


7,471

4,935

-

12,406

                           - Other   

61

92

5,347

5,500

Segment liabilities


(88)

-

(5,231)

(5,319)



_______

_______

_______

_______

Net assets


7,444

5,027

116

12,587



======

======

======

======

 

 

Six months ended 30 June 2013

Business Segments



Corporate

Exploration & development

Total








$'000

$'000

$'000











Result










Loss for the period


(2,607)

(6,891)

(9,498)




======

======

======

Balance sheet





Segment assets



4,687

1,397

18,084

Segment liabilities



(294)

(972)

(1,266)




_______

_______

_______

Net assets


4,393

12,425

16,818




======

======

======

 

Geographical Segments


Denmark

Belize

Jersey

Total







$'000

$'000

$'000

$'000











Result





Loss for the period


-

(6,112)

(3,386)

(9,498)



======

======

======

======

 

Balance Sheet






Segment assets - Intangible


7,084

5,131

-

12,215

                           - Other   

114

1,068

4,687

5,869

Segment liabilities


(264)

(708)

(294)

(1,266)



_______

_______

_______

_______

Net assets


6,934

5,491

4,393

16,818



======

======

======

======

 

Year ended 31 December 2013

Business Segments



Corporate

Exploration & development

Total








$'000

$'000

$'000











Result










Loss for the period



(4,874)

(7,071)

(11,945)




======

======

======

Balance sheet





Segment assets



2,727

12,349

15,076

Segment liabilities



(430)

(125)

(555)




_______

_______

_______

Net assets


2,297

12,224

14,521




======

======

======

 

Geographical Segments


Denmark

Belize

Jersey

Total







$'000

$'000

$'000

$'000











Result





Loss for the period


-

(7,071)

(4,874)

(11,945)


======

======

======

======







Balance Sheet






Segment assets - Intangible


7,289

5,060

-

12,349

                           - Other   

105

115

2,507

2,727

Segment liabilities


(157)

-

(398)

(555)



_______

_______

_______

_______

Net assets


7,237

5,175

2,109

14,521



======

======

======

======

 

 

 

** ENDS **

 

For further information please visit www.nwoilgas.com or contact:

 

Enquiries:

William Kelleher

New World Oil and Gas Plc

Tel: +17134472171

Georges Sztyk

New World Oil and Gas Plc

Tel: +1514 9612247

Peter Sztyk

 

New World Oil and Gas Plc

 

Tel: +19172157122

 

Felicity Geidt

Beaumont Cornish Limited

Tel: +44 (0) 20 7628 3396

Roland Cornish

Beaumont Cornish Limited

Tel: +44 (0) 20 7628 3396

 

Jerry Keen

Shore Capital

Tel: +44 (0) 20 7408 4090




Lottie Brocklehurst

St Brides Media & Finance Ltd

Tel: +44 (0) 20 7236 1177

Frank Buhagiar

St Brides Media & Finance Ltd

Tel: +44 (0) 20 7236 1177

 

 

 


This information is provided by RNS
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