TIDMKEA
RNS Number : 0757G
Kea Petroleum PLC
27 February 2015
For Immediate Release 27 February 2015
Kea Petroleum plc
("Kea" or the "Group" or the "Company")
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 NOVEMBER 2014
Kea Petroleum plc (AIM: KEA), the oil and gas exploration
company focused on New Zealand, announces its interim results for
the six month period ended 30 November 2014.
Key points in the year to date
-- Review of strategic options announced on 16 February 2015 to
consider all opportunities to maximise shareholder value owing to
the prevailing oil price environment
-- Rockpoint Corporate Finance Limited appointed to advise in the strategic review
-- Puka site shut-in on 28 January 2015 and further cost-cutting
measures introduced to preserve working capital
-- Discussions continue with potential partners for the Mercury,
Mauku and Shannon prospects in a very challenging farm-out
environment
-- Administrative expenses in the period reduced to GBP881,000 (H1 2013: GBP1.8 million)
-- Sales of GBP831K in the six month period (H1 2013: GBP1.2
million) and net loss of GBP8.5 million (H1 2013:net loss of GBP1.1
million) with the net loss reflecting the GBP7.5 million write-off
of exploration costs relating to the Douglas and Wingrove wells
Kea Petroleum's Chairman, Ian Gowrie-Smith, said:
"Whilst Kea was making progress in the Taranaki Basin and
continues to have some highly prospective opportunities, the
unexpected and fundamental change in the oil price environment has
created too many challenges for our business. Consequently, we
launched a strategic review last month with the objective of
considering all options for maximising shareholder value. We are
still early in that process and we will update shareholders in due
course."
For further information please contact:
Kea Petroleum plc Tel: +44 (0)20 7340 9970
David Lees, Executive Director
WH Ireland Limited Tel: +44 (0) 20 7220 1666
James Joyce
Buchanan Tel: +44 (0)20 7466 5000
Mark Court
Sophie Cowles
CHAIRMAN'S STATEMENT
Dear Shareholders,
The recent collapse in the price of oil, which no one appears to
have foreshadowed, has made the Puka field uneconomic and hence, as
recently announced, the Puka production station was shut down. Also
as a result of falling oil prices, the farm-out market has become
very challenging. Against this backdrop, and without sufficient
financial resources ourselves, the Company has had no option other
than to offer itself for sale as a whole or for some of its
parts.
Kea announced its strategic review on 16 February 2015 to
consider all opportunities for maximising shareholder value. The
Company is being advised during this process by Rockpoint Corporate
Finance Limited. The Company has taken a number of further cost
cutting measures to preserve its working capital, which remains
tight.
The loss posted in the six month period includes the write-off
of GBP7.5 million of previously capitalised costs relating to the
drilling and testing of the Wingrove and Douglas wells in
2010/2011.
Kea is assisting a number of potential funding partners to
complete their technical due diligence of the Shannon prospect,
confirming our view that it is an exciting and potentially
significant prospect. We will provide further updates for
shareholders as appropriate.
Ian Gowrie-Smith
Chairman
27 February 2015
KEA PETROLEUM PLC CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME
For the Six months ended 30 November 2014
-----------------------------------------------------------------------------------
Six months Six months Year ended
ended 30 ended 30 31 May
November November
2014 2013 2014
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Revenue 831 1,198 2,087
Cost of sales (593) (459) (1,756)
Gross profit 238 739 331
Administration expenses (881) (1,796) (2,213)
Exploration costs written off (7,470) - (1,571)
Operating loss (8,113) (1,057) (3,453)
Finance income 9 6 14
Finance Cost (421) - (420)
Foreign Exchange (losses) - (12) 40
Loss before taxation (8,525) (1,063) (3,819)
Taxation - - -
Loss for the period (8,525) (1,063) (3,819)
Other comprehensive income:
Exchange differences on translating foreign
operation (137) (411) (1,044)
Total comprehensive loss for the period (8,662) (1,474) (4,863)
Loss per share
Basic and fully diluted (pence per share) (1.1)p (1.51)p (5.36)p
The loss for the period and total comprehensive loss for the
period are 100% attributable to equity shareholders of the
parent undertaking.
The accompanying accounting policies and notes form an integral
part of these financial statements.
KEA PETROLEUM PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
At 30 November 2014 Company Registration 7023751
---------------------------------------------------------------------------------------------
30 November 30 November 31 May
2014 2013 2014
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Current Assets
Cash and cash equivalents 684 102 823
Trading Stock and WIP 199 83 244
Trade and other receivables 307 553 330
1,190 738 1,397
Non-Current Assets
Property, plant & equipment 1,182 1,286 1,254
Production & Development Assets 7,173 6,762 7,021
Intangible Oil & gas exploration assets 1,993 11,455 9,794
10,348 19,503 18,069
Total Assets 11,538 20,241 19,466
Current Liabilities
Trade and other payables 336 467 936
Borrowings - - 515
Derivative Financial Instruments - - 434
Total liabilities 336 467 1,885
Shareholders' Equity
Issued capital 9,399 6,974 7,751
Share premium 30,423 29,353 29,828
Merger reserve 125 125 125
Share option reserve 3,094 3,030 3,054
Warrants reserve 135 135 135
Translation reserve (276) 494 (139)
Investment in Own Shares (1,637) (1,557) (1,637)
Retained earnings (30,061) (18,780) (21,536)
Total equity 11,202 19,774 17,581
Total Equity and Liabilities 11,538 20,241 19,466
The financial statements were approved by the Board of
Directors on 27 February 2015
P. Wright
Director
-
KEA PETROLEUM PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six months ended 30 November 2014
----------------------------------------------------------------------------------------------------------------------------------
Share Share Investment Merger Share Translation Warrants Retained Total
capital premium in own Reserve option reserve Reserve earnings equity
shares reserve
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 30 November
2013 (unaudited) 6,974 29,353 (1,557) 125 3,030 494 135 (18,780) 19,774
Issue of
shares 777 475 - - - - - 1,252
Investment
in own shares - - (80) - - - - (80)
Equity settled
share options - - - - 24 - - - 24
Transactions
with owners 777 475 (80) - 24 - - - 1,196
Loss for
the period - - - - - - - (2,756) (2,756)
Other
comprehensive
income:
Exchange
differences
on translation
of foreign
operations - - - - - (633) - - (633)
Total
comprehensive
loss for
the 6 months - - - - - (633) - (2,756) (3,389)
At 31 May
2014 (audited) 7,751 29,828 (1,637) 125 3,054 (139) 135 (21,536) 17,581
Issue of
shares 1,648 595 - - - - - - 2,243
Equity settled
share options - - - - 40 - - - 40
Transactions
with owners 1,648 595 - - 40 - - - 2,283
Loss for
the period - - - - - - - (8,525) (8,525)
Other - - - - - - - -
comprehensive
income:
Exchange
differences
on translation
of foreign
operations - - - - - (137) - (137)
Total
comprehensive
loss for
the 6 months - - - - - (137) - (8,525) (8,662)
At 30 November
2014 (unaudited) 9,399 30,423 (1,637) 125 3,094 (276) 135 (30,061) 11,202
KEA PETROLEUM PLC
CONSOLIDATED STATEMENT OF CASH FLOWS
For the six months ended 30 November 2014
-----------------------------------------------------------------------
Six months Six months Year ended
ended 30 ended 30 31 May
November November
2014 2013 2014
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Net cash flow from operating activities (2,243) (2,632) (2,852)
Cash flows from investing activities
Interest received 9 6 7
Expenditure on oil and gas exploration
assets - (19) (49)
Expenditure on Production and development
assets (419) (121) (649)
Purchase of property, plant and equipment - (629) (628)
Net cash used in investing activities (410) (763) (1,319)
Cash flows from financing activities
Proceeds from share issues 2,243 - 1,252
Debt liability - - 949
Investment in Own Shares - - (80)
Net cash generated from financing activities 2,243 - 2,121
Net decrease in cash and cash equivalents (410) (3,395) (2,050)
Cash and cash equivalents at beginning
of period 823 2,788 2,788
Foreign exchange differences - net 271 709 85
Cash and cash equivalents at balance sheet
date 684 102 823
Reconciliation of cash flows from operating
activities with loss for the period
Loss for the period (8,525) (1,063) (3,819)
Movements in Working Capital
Trade and other receivables 23 417 715
Trade and other payables (1,549) (2,382) (1,910)
Depreciation 59 61 107
Stock and WIP 45 - (155)
Derecognition of unsuccessful expenditure 7,470 - 1,571
Depletion on development & production
assets 203 - 281
Interest received (9) (6) (7)
Share option expense 40 341 365
Net cash flow from operating activities (2,243) (2,632) (2,852)
KEA PETROLEUM PLC
Notes to the Interim financial statements
for the SIX MONTHS ended 30 november 2014
1. Basis of preparation
This interim financial information has been prepared on a going
concern basis in accordance with International Financial Reporting
Standards (IFRSs) as adopted by the European Union and on an
historical cost basis, and in accordance with the Companies Act
2006 that applies to companies reporting under IFRS. The accounting
policies, methods of computation and presentation used in the
preparation of the interim financial information are the same as
those used in the Group's audited financial statements for the year
ended 31 May 2014.
The financial information in this statement does not constitute
full statutory accounts within the meaning of Section 434 of the
Companies Act 2006. The financial information for the six months
ended 30 November 2014 is unaudited. The comparative information
for the year ended 31 May 2014 was derived from the Group's audited
financial statements for that period as filed with the Registrar of
Companies. It does not constitute the financial statements for that
period. The auditor's report on those financial statements was
unqualified and did not contain a statement under sections 498(2)
or (3) of the Companies Act 2006, but contained an emphasis of
matter paragraph on going concern.
b. Going concern
The Group has incurred a loss of GBP8,525,000 for the 6 months
ended 30 November 2014. In common with other junior exploration
companies, the Group is reliant on raising further funds
periodically through equity finance, including share options and
warrants, or possibly debt facilities to achieve its long term
objectives.
The directors have prepared operating cashflow forecasts and
projections which assume a minimum level of expenditure to conform
with the requirements of the Group's exploration licences for the
12 months from the date of signing this interim statement, which
show a funding shortfall in 2015. The directors are in discussions
with potential investors to secure additional funding that would
cover the shortfall, but an agreement has not yet been signed. If
the Group is unable to secure this funding and cannot find
alternative sources of financial support, the Group may cease to be
a going concern. In these circumstances adjustments may be required
to reflect the position that assets may not be realised at the
amounts currently disclosed in the Statement of Financial Position,
and additional liabilities may be incurred.
The directors have concluded that the combination of these
circumstances represents a material uncertainty that may cast
significant doubt upon the Group's ability to continue as a going
concern. Nevertheless after making enquiries, and considering the
uncertainties described above, the directors have an expectation
that the Group will have access to adequate resources to continue
in operational existence for the foreseeable future and for these
reasons, they continue to adopt the going concern basis in
preparing the annual report and Group financial statements.
2. Loss per share
Six months Six months Year ended
ended 30 ended 30 31 May
November November
2014 2013 2014
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Loss for the period attributable to equity
shareholders (8,525) (1,063) (3,819)
Basic and diluted loss per share (1.1)p (1.51)p (5.36)p
Six months Six months Year ended
ended 30 ended 30 31 May
November November
2014 2013 2014
Unaudited Unaudited Audited
Number of Number of Number of
shares shares shares
Issued ordinary shares at start of the
period 775,082,470 697,442,407 697,442,407
Ordinary shares issued in the period 164,787,097 - 77,640,063
Issued ordinary shares 939,869,567 697,442,407 775,082,470
-------------- ------------ ------------
Consolidation and subdivision (845,882,610)
Issued New ordinary shares at end of period 93,986,957 69,744,241 77,508,247
============== ============ ============
Weighted average number of shares in issue
for the period. 88,341,592 697,442,407 711,684,429
============== ============ ============
On 28 November 2014, a share consolidation was approved. On that
date 939,869,567 ordinary shares of 1p were converted into
93,986,957 new ordinary shares of 1p and 93,986,957 deferred shares
of 9p. The deferred shares of 9p carry no significant rights. The
weighted average number of shares for comparative purposes have
been adjusted to 69,744,241 (previously 697,442,407).
The diluted loss per share does not differ from the basic loss
per share as the exercise of share options would have the effect of
reducing the loss per share and is therefore not dilutive. The
weighted average number of shares used in calculating the basic
earnings per share has been adjusted to remove the shares in issue
held by the Employee Benefit Trusts.
3. Share capital
Ordinary Nominal Deferred Premium Total
Shares Value shares
(GBP0.01) (GBP0.09) net of
costs
GBP'000 GBP'000 GBP'000 GBP'000
Authorised share capital
Ordinary shares of
GBP0.01 each 1,000,000,000 10,000 10,000
Issued, called up -
and fully paid Ordinary
shares of GBP0.01
each
Opening Balance 30
November 2013 (unaudited) 697,442,407 6,974 - 29,353 36,327
Issue of shares 77,640,063 777 - 475 1,252
Warrants exercised - - - - -
---------------- ------------ ------------- --------- ------------
31 May 2014 (audited) 775,082,470 7,751 - 29,828 37,579
Issue of shares 164,787,097 1,648 - 595 2,243
Consolidation and
subdivision (845,882,610) (8,459) 8,459 - -
30 November 2014 (unaudited) 93,986,957 940 8,459 30,423 39,822
================ ============ ============= ========= ============
4. Events after the balance sheet date
In January 2014 the Company shut in the Puka production station
as a result of mechanical problems with Puka-1 and the low oil
price.
In February 2014 the Company announced a strategic review
including the possibility of offers within the context of a "formal
sale process" in accordance with Note 2 on Rule 2.6 of the City
Code on Takeovers and Mergers.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR PKODNCBKKBBB
Kea Petroleum (LSE:KEA)
Graphique Historique de l'Action
De Avr 2024 à Mai 2024
Kea Petroleum (LSE:KEA)
Graphique Historique de l'Action
De Mai 2023 à Mai 2024
