TIDMTOM
RNS Number : 9810S
TomCo Energy PLC
29 June 2018
29 June 2018
TomCo Energy plc ("TomCo" or "the Company")
Unaudited interim results for the six-month period ended 31
March 2018
TomCo Energy plc (AIM: TOM), the oil shale exploration and
development company focused on using innovative technology to
unlock unconventional hydrocarbon resources, is pleased to announce
its unaudited interim results for the six-month period ended 31
March 2018.
HIGHLIGHTS
Operational
-- Restructuring of TurboShale Inc. ("TurboShale") completed
-- Company now has an 80% interest in TurboShale, with JRT
Technologies LLC ("JRT"), the Company's partner, holding the
remaining 20%
-- The Group is on schedule with its to six-month field test
programme of TurboShale's technology on the Company's Holliday
block, Utah (the "Field Test")
-- Field Test expected to cost approximately US$900,000
-- Drilling contractor engaged and radio frequency ("RF") generators ordered
-- Site preparation work expected to commence in August 2018
with testing expected to commence late September 2018 and is
expected to last approximately six weeks
-- Exploration permit for the Company's Holliday block in Utah extended
Corporate & Funding
-- Christopher Brown resigned as Chief Executive, and John
Potter was appointed in his place on 1 February 2018
-- Raised GBP600k through a placing in April 2018 and GBP650k
through a placing in June 2018
-- Christopher Brown has provided loans of, in aggregate, GBP250k
-- GBP200k received during the period and GBP50k received in April 2018
-- Repayable by 31 March 2019 or earlier at the Company's election
-- GBP176k cash balance as at 31 March 2018, approximately
GBP360k as at 28 June 2018 and, following anticipated receipt of
the net proceeds from the June 2018 placing, TomCo will have a cash
balance of approximately GBP1 million
-- The Group has sufficient funds through to late Q4 2018 and
will need to raise further funds for working capital, CAPEX, loan
repayments and project development beyond Q4 2018
John Potter, TomCo's Chief Executive Officer, said:
"We have wasted no time in preparing for the upcoming Field Test
programme, which could prove transformational for the Group, and I
am very pleased with the progress made by TomCo during the first
six months of this year. I look forward to announcing further
progress in the months ahead."
DIRECTORS' REPORT
Operational
The Group has made significant progress during and post the
period end and is looking forward to continuing the Field Test
programme of TurboShale's technology on its Holliday block, with
site preparation work expected to commence in August 2018.
TurboShale holds two key patents regarding the use of RF in the
extraction of oil & gas from oil shale. The RF technology, now
held by TurboShale, was previously tested in the early 1980's as
part of the BART programme (the "BART Programme") at a site in the
same Uintah Basin as, and estimated to be within approximately 20
miles from, TomCo's Holliday block. It was during the BART
Programme that the RF technology upon which TurboShale is building
on, was proven. It demonstrated not only its ability to be scalable
but also its effectiveness to extract oil from oil shale in an
environmentally benign manner, requiring little to no water and at
an attractive cost of production in the range of US$4.50 - US$9.00
per barrel (based on 1980's prices). It also produced a
high-quality oil, low in sulphur, with a low pour point and high
API. However, due to the low oil price at that time, the technology
was never commercialised.
The Company believes that this relatively low-cost and
environmentally benign disruptive technology has the potential to
unlock TomCo's oil shale assets as well as creating the opportunity
for the Group to develop additional revenue streams deriving from
licensing and royalties.
The Field Test will seek to build upon the successful BART
Programme and to demonstrate the commerciality of TurboShale's
technology and its ability to produce high quality oil at a low
cost of production from the oil shale at the Holliday Block. Data
will also be collected to enable a more accurate economic model for
full-scale commercial roll-out using the TurboShale technology.
This will include estimating commercial oil production flow rates;
reconfirmation of the quality of oil produced (including low
sulphur, high API, low pour point); assessing gas recovery and its
quality and testing the water produced.
The drilling contractor has now been engaged and the RF
generators, which are central to TurboShale's RF technology and the
Field Test, have been ordered. Site preparations works for the
Field Test are expected to commence in August 2018 ahead of the
arrival of the RF generators before the end of September 2018.
Following delivery of the RF generators, the actual 'live' testing
part of the Field Test is expected to last approximately six
weeks.
Corporate
At the beginning of February 2018, we were pleased to announce
the appointment of John Potter as CEO, following Chris Brown's
decision to step down from the Board to focus on his other business
interests. I would like to thank Chris for his efforts whilst he
was CEO and his continued support of the Company.
We were also pleased to complete the restructuring of
TurboShale, pursuant to which TomCo's interest in TurboShale is now
80%, with JRT, the Company's partner, holding the remaining 20%. In
addition, TomCo will provide the necessary funding to take
TurboShale through to the completion of the Field Test which is
currently anticipated to cost approximately US$900,000.
Funding
During the period, the Company secured additional funding via
two loans of GBP100,000 each from Chris Brown. Following the period
end, Chris provided a further loan of GBP50,000, taking the
aggregate loan to GBP250,000. The loans, which are unsecured, incur
interest of 8% per annum, payable monthly in arrears, and, subject
to the Company having sufficient funds, are repayable in full on 31
March 2019, or earlier at the Company's election.
In addition, post the period end the Company raised GBP600,000
gross via a placing of 20 million new ordinary shares at 3p (the
"Placing") and a further placing of 13 million new ordinary shares
at 5p, raising an additional GBP650,000 gross of costs (the Further
Placing").
The net proceeds of the Placing, the Further Placing and the
loan are being used to fund the Field Test and to provide working
capital to the Group.
As at 31 March 2018, the group had a cash balance of GBP176k. As
at 28 June 2018, the group had a cash balance of approximately
GBP360k and, following the anticipated receipt of the net proceeds
from the Further Placing, TomCo will have a cash balance of
approximately GBP1 million. As set out in the Company's
announcement of 26 June 2018, following completion of the Further
Placing, the Company has sufficient funds through to late Q4 2018,
and has sufficient funding to complete the Field Test. The
Directors are exploring various options to secure additional
funding and are confident that such funding will be available,
although there is no guarantee as to the terms of such funding or
that such funding will be available.
As a result, the Directors continue to monitor and manage the
Company's overheads and current and future liabilities very
carefully and have, in order to preserve cash, agreed to accrue all
fees due to them from the beginning of July 2018.
We thank shareholders for their continued support and we look
forward to keeping shareholders updated on progress as we move to
commence the Field Test.
Andrew Jones
Non-executive Chairman
Enquiries:
For further information, please visit www.tomcoenergy.uk.com or
contact:
TomCo Energy plc +44 (0)20 3823 3635
John Potter (CEO)
Andrew Jones (Chairman)
Strand Hanson (Nominated Adviser)
James Harris / Richard Tulloch / James Dance +44 (0)20 7409 3494
SVS Securities plc (Broker)
Tom Curran / Ben Tadd +44 (0)20 3700 0093
Lionsgate Communications (Financial PR)
Jonathan Charles +44 (0)20 3697 1209
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014.
Condensed consolidated statement of comprehensive income
For the six month period ended 31 March 2018
Unaudited Unaudited Audited
Six months Six months Year ended
ended ended 30 September
31 March 31 March
2018 2017 2017
Notes GBP'000 GBP'000 GBP'000
----------------------------------------- ----- ----------- ----------- -------------
Cost of sales - - -
----------------------------------------- ----- ----------- ----------- -------------
Gross profit/(loss) - - -
Administrative expenses 3 (207) (203) (428)
----------------------------------------- ----- ----------- ----------- -------------
Operating loss (207) (203) (428)
Finance costs (2) - -
----------------------------------------- ----- ----------- ----------- -------------
Loss on ordinary activities before
taxation (209) (203) (428)
Taxation - - -
----------------------------------------- ----- ----------- ----------- -------------
Loss from continuing operations (209) (203) (428)
Loss for the period/year attributable
to:
Equity shareholders of the parent (202) (203) (416)
Non-controlling interests (7) - (12)
----------------------------------------- ----- ----------- ----------- -------------
(209) (203) (428)
----------------------------------------- ----- ----------- ----------- -------------
Items that may be reclassified subsequently to
profit or loss
Exchange differences on translation
of foreign operations 4 - -
----------------------------------------- ----- ----------- ----------- -------------
Total comprehensive loss (205) (203) (428)
Total comprehensive loss attributable
to:
Equity shareholders of the parent (199) (203) (416)
Non-controlling interests (6) - (12)
----------------------------------------- ----- ----------- ----------- -------------
(205) (203) (428)
----------------------------------------- ----- ----------- ----------- -------------
Loss per share attributable to the equity shareholders
of the parent
------------------------------------------------------------- ----------- -------------
Basic & Diluted Loss per share (pence) 4 (0.70) (0.89) (1.75)
----------------------------------------- ----- ----------- ----------- -------------
Condensed consolidated statement of financial position
As at 31 March 2018
Unaudited Unaudited
Six months Six months Audited
ended ended Year ended
31 March 31 March 30 September
2018 2017 2017
Note GBP'000 GBP'000 GBP'000
-------------------------------- ---- ----------- ------------ ---------------
Assets
Non-current assets
Intangible assets 7 7,648 7,627 7,650
Available for sale assets - - -
Other receivables 22 22 22
-------------------------------- ---- ----------- ------------ ---------------
7,670 7,649 7,672
-------------------------------- ---- ----------- ------------ ---------------
Current assets
Trade and other receivables 22 36 28
Cash and cash equivalents 176 141 128
-------------------------------- ---- ----------- ------------ ---------------
198 177 156
-------------------------------- ---- ----------- ------------ ---------------
Total Assets 7,868 7,826 7,828
-------------------------------- ---- ----------- ------------ ---------------
Liabilities
Current liabilities
Trade and other payables (241) (195) (196)
Loans 5 (200) - -
-------------------------------- ---- ----------- ------------ ---------------
(441) (195) (196)
-------------------------------- ---- ----------- ------------ ---------------
Net current liabilities (243) (18) (40)
-------------------------------- ---- ----------- ------------ ---------------
Total liabilities (441) (195) (196)
-------------------------------- ---- ----------- ------------ ---------------
Total Net Assets 7,427 7,631 7,632
-------------------------------- ---- ----------- ------------ ---------------
Shareholders' equity
Share capital - - -
Share premium 25,354 25,125 25,354
Warrant reserve 57 57 57
Retained deficit (17,961) (17,551) (17,748)
-------------------------------- ---- ----------- ------------ ---------------
Equity attributable to owners
of the parent 7,450 7,631 7,663
Non-controlling interests 6 (23) - (31)
-------------------------------- ---- ----------- ------------ ---------------
Total Equity 7,427 7,631 7,632
-------------------------------- ---- ----------- ------------ ---------------
The financial information was approved and authorised for issue
by the Board of Directors on 27 June 2018 and was signed on its
behalf by:
J Potter A Jones
Director Director
Condensed consolidated statement of changes in equity
For the six months ended 31 March 2018
Share Share Warrant Retained Non-controlling Total
capital premium reserve deficit Total interest equity
------------------------------- ------
Note GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------------- ------ -------- -------- -------- -------- ------- --------------- -------
At 30 September 2016
(audited) - 25,125 57 (17,348) 7,834 - 7,834
------------------------------- ------ -------- -------- -------- -------- ------- --------------- -------
Total comprehensive
loss for the period - - - (203) (203) - (203)
At 31 March 2017 (unaudited) - 25,125 57 (17,551) 7,631 - 7,631
------------------------------- ------ -------- -------- -------- -------- ------- --------------- -------
Total comprehensive
loss for the period - - - (213) (213) (12) (225)
Issue of shares (net
of costs) - 229 - - 229 4 233
Change in non-controlling
interest - - - 23 23 (23) -
Purchase of fractional
interests - - - (7) (7) - (7)
Total comprehensive
loss for the period - - - (213) (213) (12) (225)
------------------------------- ------ -------- -------- -------- -------- ------- --------------- -------
At 30 September 2017
(audited) - 25,354 57 (17,748) 7,663 (31) 7,632
------------------------------- ------ -------- -------- -------- -------- ------- --------------- -------
Total comprehensive
loss for the period - - - (199) (199) (6) (205)
Change in non-controlling
interest 6 - - - (14) (14) 14 -
------------------------------- ------ -------- -------- -------- -------- ------- --------------- -------
At 31 March 2018 (unaudited) - 25,354 57 (17,961) 7,450 (23) 7,427
------------------------------- ------ -------- -------- -------- -------- ------- --------------- -------
The following describes the nature and purpose of each reserve
within owners' equity:
Reserve Descriptions and purpose
Share capital Amount subscribed for share capital at nominal value,
together with transfers to share premium upon redenomination
of the shares to nil par value.
Share premium Amount subscribed for share capital in excess of
nominal value, together with transfers from share
capital upon redenomination of the shares to nil
par value.
Warrant reserve Amounts credited to equity in respect of warrants
to acquire ordinary shares in the Company.
Retained deficit Cumulative net gains and losses recognised in the
consolidated statement of comprehensive income.
Non-Controlling Amounts attributable to the non-controlling interest
Interests in TurboShale Inc. See note 6.
Condensed consolidated statement of cash flows
For the period ended 31 March 2018
Unaudited Unaudited Audited
Six months Six months Year ended
ended 31 ended 31 30 September
March 2018 March 2017 2017
Note GBP'000 GBP'000 GBP'000
------------------------------------------ ---- ----------- ----------- -------------
Cash flows from operating activities
Loss after tax (209) (203) (428)
Amortisation of intangible fixed
assets 1 - -
Effect of foreign exchange differences 5 - -
Decrease in trade and other receivables 6 - 9
Increase/(decrease) in trade and
other payables 45 (37) (36)
------------------------------------------ ---- ----------- ----------- -------------
Cash used in operations (152) (240) (455)
Cash flows from investing activities
Investment in oil & gas assets 7 - - (20)
Net cash used in investing activities - - (20)
------------------------------------------ ---- ----------- ----------- -------------
Cash flows from financing activities
Issue of share capital (net of
issue costs) 8 - - 229
Re-purchase of shares - - (7)
Loans received 200 - -
Net cash generated from financing
activities 200 - 222
------------------------------------------ ---- ----------- ----------- -------------
Net increase/(decrease) in cash
and cash equivalents 48 (240) (253)
Cash and cash equivalents at beginning
of financial period 128 381 381
------------------------------------------ ---- ----------- ----------- -------------
Cash and cash equivalents at end
of financial period 176 141 128
------------------------------------------ ---- ----------- ----------- -------------
UNAUDITED NOTES FORMING PART OF THE CONDENSED CONSOLIDATED
INTERIM FINANCIAL STATEMENTS
For the six months ended 31 March 2018
1. Accounting Policies
Basis of Preparation
The unaudited condensed consolidated interim financial
statements of TomCo Energy plc ("TomCo" or the "Company") for the
six months ended 31 March 2018, comprise the Company and its
subsidiaries (together referred to as the "Group").
The unaudited condensed interim financial information for the
Group has been prepared using the recognition and measurement
requirements of International Financial Reporting Standards (IFRS
and IFRIC interpretations) issued by the International Accounting
Standards Board ("IASB") as adopted for use in the EU, with the
exception of IAS 34 Interim Financial Reporting that is not
mandatory for companies quoted on the AIM market of the London
Stock Exchange. The unaudited condensed interim financial
information has been prepared using the accounting policies which
will be applied in the Group's statutory financial information for
the year ended 30 September 2018.
There were no new standards, interpretations and amendments to
published standards effective in the period which had a significant
impact on the Group.
New standards not yet effective
IFRS 9 "Financial instruments" addresses the classification and
measurement of financial assets and financial liabilities. The
complete version of IFRS 9 was issued in July 2014. It replaces the
guidance in IAS 39 that relates to the classification and
measurement of financial instruments. IFRS 9 retains but simplifies
the mixed measurement model and establishes three primary
measurement categories for financial assets: amortised cost, fair
value through other comprehensive income (OCI) and fair value
through profit or loss. The basis of classification depends on the
entity's business model and the contractual cash flow
characteristics of the financial asset. Investments in equity
instruments, such as that held by the Group, are required to be
measured at fair value through profit or loss with the irrevocable
option at inception to present changes in fair value in OCI.
However, it is not anticipated that the application of IFRS 9 will
have a material impact as the investment in Red Leaf Resources Inc.
is considered to hold nil value having been fully impaired. There
is now a new expected credit loss model that replaces the incurred
loss impairment model used in IAS 39. For financial liabilities
there were no changes to classification and measurement except for
the recognition of changes in credit risk in other comprehensive
income, for liabilities designated at fair value through profit or
loss. Management are currently assessing the impact of the
standard.
IFRS 15 is intended to introduce a single framework for revenue
recognition and clarify principles of revenue recognition. This
standard modifies the determination of when to recognise revenue
and how much revenue to recognise. The core principle is that an
entity recognises revenue to depict the transfer of promised goods
and services to the customer of an amount that reflects the
consideration to which the entity expects to be entitled in
exchange for those goods or services. At present the Group has no
revenues and therefore the standard would not impact the Group.
IFRS 16 introduces a single lease accounting model. This
standard requires lessees to account for all leases under a single
on- balance sheet model. Under the new standard, a lessee is
required to recognise all lease assets and liabilities on the
balance sheet; recognise amortisation of leased assets and interest
on lease liabilities over the lease term; and separately present
the principal amount of cash paid and interest in the cash flow
statement. Management are currently reviewing the impact of the
standard but do not anticipate it having a material effect given
the absence of operating leases.
Going concern
Following receipt of the net proceeds from the Further Placing,
TomCo will have approximately GBP1 million of cash resources, which
is currently sufficient through to late Q4 2018. As a result, the
Directors have monitored and continue to monitor and manage the
Company's overheads and current and future liabilities very
carefully and have, in order to preserve cash, agreed to accrue all
fees due to them from the beginning of July 2018. The Directors
have also prepared cash flow forecasts for the next 12 months from
the date of approval of these unaudited interim statements which
show that the Company needs to secure further funding in the short
term to be able to meet its current and future liabilities as they
fall due beyond Q4 2018. The directors consider the Company now has
sufficient funds to complete the Field Test.
Accordingly, given TomCo's current cash position, TomCo is
currently seeking to secure further alternative funding to ensure
it is able to meet its working capital obligations as they fall due
beyond Q4 2018 and the Board is currently exploring various options
in this regard.
The Directors are confident that they can secure the requisite
funding, either through debt or equity finance, which would provide
sufficient funds to meet operating expenditure for the next 12
months, however, there is no guarantee as to the terms of such
funding or that such funding will be available.
These conditions are considered to represent a material
uncertainty, which may cast significant doubt over the going
concern assessment and in the event that it is unable to secure the
requisite funding, it is likely that the Company will not be able
to meet its liabilities as they fall due and that it may therefore
be forced into insolvency proceedings (be that administration or
liquidation) and in such a case it is highly unlikely that there
would be any value attributable to shareholders.
Whilst acknowledging this material uncertainty, the Directors
remain confident of being able to raise additional funds as
required and therefore the Directors consider it appropriate to
prepare the financial statements on a going concern basis. The
financial statements do not include the adjustments that would
result if the Group and Company was unable to continue as a going
concern.
2. Financial reporting period
The unaudited condensed interim financial information
incorporates comparative figures for the interim period 1 October
2016 to 31 March 2017 and the audited financial year to 30
September 2017. The condensed interim financial information for the
period 1 October 2017 to 31 March 2018 is neither audited nor
reviewed. In the opinion of the Directors the unaudited condensed
interim financial information for the period presents fairly the
financial position, results from operations and cash flows for the
period in conformity with the generally accepted accounting
principles consistently applied.
The financial information contained in this unaudited interim
report does not constitute statutory accounts as defined by the
Isle of Man Companies Act 2006. It does not include all disclosures
that would otherwise be required in a complete set of financial
statements and should be read in conjunction with the 2017 Annual
Report. The comparatives for the full year ended 30 September 2017
are not the Group's full statutory accounts for that year. The
auditors' report on those accounts was unqualified, but included
material uncertainty paragraph in respect of going concern, without
qualifying their report and did not contain a statement under the
provisions of the Isle of Man Companies Act 2006.
3. Operating Loss
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
31 March 31 March 30 September
2018 2017 2017
GBP'000 GBP'000 GBP'000
----------------------------------- ------------ ----------- -------------
The following items have been charged in arriving at operating loss:
Directors' remuneration 61 68 124
Auditors' remuneration 16 - 29
Licences for land and buildings 1 1 7
----------------------------------- ------------ ----------- -------------
4. Loss per share
Basic loss per share is calculated by dividing the losses
attributable to ordinary shareholders by the weighted average
number of ordinary shares outstanding during the year.
Reconciliations of the losses and weighted average number of shares
used in the calculations are set out below.
Weighted average Per share
Losses number of shares amount
Six months ended 31 March 2018 GBP'000 Pence
---------------------------------------- -------- ------------------ ----------
Basic and Diluted EPS
Losses attributable to ordinary
shareholders on continuing operations (202) 28,917,800 (0.70)
---------------------------------------- -------- ------------------ ----------
Weighted average Per share
Losses number of shares amount
Six months ended 31 March 2017 GBP'000 Pence
---------------------------------------- -------- ------------------ ----------
Basic and Diluted EPS
Losses attributable to ordinary
shareholders on continuing operations (203) 22,775,514 (0.89)
---------------------------------------- -------- ------------------ ----------
Weighted average Per share
Losses number of shares amount
Six months ended 30 September 2017 GBP'000 Pence
---------------------------------------- -------- ------------------ ----------
Basic and Diluted EPS
Losses attributable to ordinary
shareholders on continuing operations (416) 23,770,053 (1.75)
---------------------------------------- -------- ------------------ ----------
The weighted number of average shares in issue for all periods
has been restated for the consolidation of ordinary shares that
occurred on 9 June 2017.
5. Loans
The Company has raised loan funding of GBP200,000 from
Christopher Brown, a significant shareholder and former director. A
further GBP50,000 was lent by Mr Brown after the period end. The
loans are unsecured, carry interest of 8% per annum and are
repayable by 31 March 2019, or earlier at the Company's
election.
Mr Brown cannot seek repayment of the loan until such time as
the board of the Company informs him that the Company has
sufficient funds available to repay the loans and the term of the
loan shall be extended automatically until such time. The Company
has undertaken, insofar as is possible, that it will repay the
loans, including any outstanding accrued interest payments, from
cleared funds resulting from any secured financing arrangements
occurring prior to 31 March 2019.
The Company's forecasts currently indicate that it will require
additional funding beyond Q4 2018 to meet its operational
requirements. As such it is uncertain whether the Group will have
sufficient funding to settle the loans at maturity.
6. Change in Non-Controlling Interest
The Company has reached agreement with JRT, that JRT should
cancel, for no consideration,125,000 shares of common stock in
TurboShale that it received as part of the agreement for TurboShale
to purchase certain patents from JRT in 2017. As a consequence, the
Company's interest in TurboShale has increased from 66.67% to
80%.
7. Intangible assets
Oil & Gas Exploration Oil & Gas Patents
and development Oil & Gas Technology and patent
Licence Licence applications Total
------------------------------- --------------------- -------------------- ----------------- ---------
GBP'000 GBP'000 GBP'000 GBP'000
------------------------------- --------------------- -------------------- ----------------- ---------
Cost, net of impairment and amortisation
At 1 October 2015 7,619 1,314 - 8,933
------------------------------- --------------------- -------------------- ----------------- ---------
Additions - - - -
------------------------------- --------------------- -------------------- ----------------- ---------
At 31 March 2016 (unaudited) 7,619 1,314 - 8,933
------------------------------- --------------------- -------------------- ----------------- ---------
Additions 8 - - 8
------------------------------- --------------------- -------------------- ----------------- ---------
Impairment of technology
licence - (1,314) - (1,314)
------------------------------- --------------------- -------------------- ----------------- ---------
At 30 September 2016
(audited) 7,627 - - 7,627
------------------------------- --------------------- -------------------- ----------------- ---------
Additions - - - -
------------------------------- --------------------- -------------------- ----------------- ---------
At 31 March 2017 (unaudited) 7,627 - - 7,627
------------------------------- --------------------- -------------------- ----------------- ---------
Additions - - 23 23
------------------------------- --------------------- -------------------- ----------------- ---------
At 30 September 2017
(audited) 7,627 - 23 7,650
------------------------------- --------------------- -------------------- ----------------- ---------
Translation differences
and amortisation - - (2) (2)
------------------------------- --------------------- -------------------- ----------------- ---------
At 31 March 2018 (unaudited) 7,627 - 21 7,648
------------------------------- --------------------- -------------------- ----------------- ---------
Net book value
At 31 March 2018 (unaudited) 7,627 21 7,648
------------------------------- --------------------- -------------------- ----------------- ---------
At 30 September 2017
(audited) 7,627 - 23 7,650
------------------------------- --------------------- -------------------- ----------------- ---------
At 31 March 2017 (unaudited) 7,627 - - 7,627
------------------------------- --------------------- -------------------- ----------------- ---------
The exploration and development licences comprise two State of
Utah oil shale leases covering approximately 2,919 acres.
Independent natural resources consultants SRK Consultants Ltd, part
of the internationally recognised SRK Group, declared a surface
mineable JORC compliant Measured Resource of 126 million barrels on
the main tract of TomCo's Holliday Block lease in 2012. Whilst the
Competent Person's Report was based on the previous EcoShale(TM)
technology the Directors continue to consider the Holliday Block to
be prospective and are seeking alternative methods of extracting
the shale oil through development of the TurboShale
technologies.
The claim areas and the Group's interest in them is:
Asset % Interest Licence Status Expiry Date Licence Area (Acres)
ML 49570 100 Prospect 31/12/2024 1,638.84
ML 49571 100 Prospect 31/12/2024 1,280.00
In performing an assessment of the carrying value of the
exploration licences at the reporting date, the Directors concluded
that it was not appropriate to book an impairment given the
previous JORC Measured Resource, the licence term and the continued
plans to explore and develop the block, including the new
technologies which TurboShale is seeking to develop. The outcome of
ongoing exploration, and therefore whether the carrying value of
the exploration licence will ultimately be recovered, is inherently
uncertain and is dependent upon successful development of
commercially viable extraction technology. If the required
additional funding was not to be made available to the company or
commercially viable extraction technologies cannot be developed,
the carrying value of the asset might need to be impaired.
8. Share Capital
31 March 31 March 30 September
2018 2017 2017
unaudited unaudited audited
Number of shares Number of shares Number of shares
--------------------------- ----------------- ----------------- -----------------
Issued and fully paid
Number of ordinary shares
of no par value 28,917,800 2,847,189,198 28,917,800
--------------------------- ----------------- ----------------- -----------------
A resolution was passed at the company's Annual General Meeting
in June 2017 to reduce the number of shares in issue and the number
of shareholders on the register. Accordingly existing ordinary
shares were consolidated such that each 25,000 shares became 1
share. Fractional entitlements were then repurchased by the
Company, and the resulting number of shares were then subdivided
such that each consolidated share became 200 ordinary shares.
9. Warrants
31 March 31 March 30 September
2018 2017 2017
unaudited unaudited audited
--------------------------- ---------- ------------ -------------
Outstanding (number) 1,113,200 139,142,857 1,113,200
Exercisable (number) 1,113,200 139,142,857 1,113,200
Weighted average exercise
price (pence) 24.8 0.20 24.8
--------------------------- ---------- ------------ -------------
The number of warrants in issue and the exercise price were
consolidated following the share consolidation in June 2017.
10. Post balance sheet events and loans
On 12 April 2018, the Company raised GBP600,000 gross
(GBP559,000 net of expenses) via a placing of 200,000 new ordinary
shares at 3p per share. In addition, the Company secured a further
GBP50,000 loan from Christopher Brown, which is repayable on the
same terms as the loans of GBP200,000 advanced by him prior to 31
March 2018.
On 26 June 2018, the Company raised a further GBP650,000 gross
(GBP614,000 net of expenses) via a further placing of 13 million
new ordinary shares at 5p per share.
In settlement of the termination of a marketing agreement
between TurboShale and Venture Development Partners Limited
("VDP"), 100,000 new warrants were issued to VDP by the Company
with an exercise price of 10p. The warrants expire in April
2020.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR UWRKRWVANUAR
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