TIDMBPC
RNS Number : 3979Q
BPC Ltd
09 April 2009
Date: 9 April 2008
On behalf of: BPC Limited ("BPC" or "the Company")
Embargoed until: 0700hrs
BPC Limited ("the Company")
Final audited results for the year ended 31 December 2008
BPC Limited, formerly named Falkland Gold and Minerals Limited, the oil and gas
exploration company with licences in The Bahamas, is pleased to announce its
final audited results for the year ended 31 December 2008.
Highlights:
* Applications for further exploration licences in The Bahamas submitted
* Ongoing farm-out negotiations for these and our existing five exploration
licences
* Comprehensive geological and geophysical studies have been undertaken during the
first 20 months of the licences to 31 December, 2008
* Cash reserves on deposit in Australia in a government guaranteed form with the
National Australia Bank, principally in US$ and no debt
* Tax residency migrated from UK to Jersey and costs reduced
* Completion of reverse acquisition of Falkland Gold and Minerals Limited, change of name to BPC Limited and readmission to trading on AIM
Commenting on the results, Alan Burns, Chairman and CEO of BPC Limited, said:
"2008 has been a significant year for BPC. Having successfully completed the
reverse acquisition of Falkland Gold and Minerals Limited in September 2008, the
Board and Management's focus has centred on negotiating farm-outs in the near
future, meanwhile ensuring that all obligations under the existing licences are
met or exceeded."
For more information please contact:
BPC Limited
Alan Burns, Chairman and CEO +61 (0)8 9286 2200
Ambrian Partners Limited (Nominated Adviser)
Marc Cramsie +44 (0)20 7634 4700
Redleaf Communications bpc@redleafpr.com
Samantha Robbins / Rebecca Sanders-Hewett +44 (0)20 7566 6700
CHAIRMAN'S REPORT
We are not alone in experiencing the effects of the current global downturn,
however, I am pleased to report we have made good progress during the year. We
have been busy locating and processing a considerable amount of previous oil
company data that hitherto had been "lost". This data has shed new light on
potential in new areas in The Bahamas and applications have been lodged for
licences over these new areas. We are currently engaged on farm-out
negotiations with regard to these and our existing licences.
BPC has cash reserves on deposit in Australia in a Government guaranteed form
with the National Australia Bank, principally in US$ and has no debt. Although
BPC is in a satisfactory condition to take its projects forward whilst the
international markets recover over the next few years, the next six to twelve
months will be a critical time for the Group for obtaining partners and in the
oil business generally.
With regard to the reporting of a matter of material uncertainty in note 2.1 to
the financial statements, I am satisfied that this gives our shareholders
appropriate disclosure.
In the meantime, we have migrated the tax residency of the holding company from
the UK to Jersey owing to the fact that the Company conducts no business
activities in the UK and all of its petroleum activities are in the Commonwealth
of The Bahamas. The opportunity has therefore arisen to reduce costs by a
reduction in the number of directors and in streamlining the overhead structure
by staff reductions. As a result, effective 1 April 2009, two non-executive
directors, Robert Carroll and Timothy Jones resigned and I wish to thank them
for their great contribution.
The remaining non-executive directors are Mark Savage and Michael Proffitt who
will make up the Audit and Remuneration Committees. Michael Proffitt has been
appointed Finance Director. Alan Burns, Michael Proffitt and Mark Savage will
comprise the Nomination Committee.
Most of our ongoing costs, including legal and travel, are associated with
negotiations with potential partners and in keeping the Government of The
Bahamas informed of our progress in analysing the data we are recovering.
I would like to thank our shareholders, staff, consultants and directors for
their efforts during the year which have set us in a sound condition for
potential growth.
Alan Burns
Chairman
REVIEW OF OPERATIONS
2008 has been a significant year for BPC. Having successfully completed the
reverse acquisition of Falkland Gold and Minerals Limited on 1 September 2008,
the Board and Management's focus has centred on negotiating farm-outs in the
near future, meanwhile ensuring that all obligations under the existing licences
are met or exceeded.
The Licences
BPC Limited ("BPC") was granted five exploration licences on 26 April, 2007,
totalling over 3.8 million acres ( 5000 sq miles). BPC holds 100% interest in
the licences through Island Offshore Petroleum Limited (Miami Licence) and
Bahamas Offshore Petroleum Limited (Bain, Cooper, Donaldson and Eneas Licences),
both Bahamian registered subsidiary companies. In addition, BPC has lodged
applications with the government for additional exploration licences in August
2008 and is awaiting the government's review of these applications.
Expenditure to 31 December, 2008
BPC's first year exploration work program (closing April 2008) commitment for
five licences was US$450,000 and US$600,000 for second year exploration (closing
April 2009). BPC's realised total work programme capital expenditure for the
first year and to December 31, 2008 was US$2,836,837. As a result, BPC has
already exceeded its first two years' work commitment by US$1,786,837.
Work Completed
BPC undertook comprehensive geological and geophysical studies during the first
20 months of the licences to 31 December, 2008. The staff evaluated historical
data gathered from oil companies and University archives from localities in
northern Wales, London, Texas and Florida, and retrieved original rock data
uncovered in a core storage facility in New Orleans that was ravaged by
Hurricane Katrina in 2005.
More than thirty consultants and BPC employees have been focused on analysing
and interpreting thousands of pages of historical geological and geophysical
documents, seismic and well log file data, and original well bore rock samples.
Parts of the historical data set (pre-1987) had to be scanned, digitised and
converted into a modern data set in order to apply 2007-2008 computer software
and computer hardware platform systems. Pre-1987 geological and geophysical
exploration data were analysed using paper data, including well and seismic
data. Modern computer technology has advanced in 20 years, and hence
necessitated that the historical data be converted to a modern computer
framework. More than 25 new geological and geophysical studies were completed to
the end of December, 2008.
Extensive evaluation was also conducted in forecasting exploration risk, market
economics and geological production facilities to ensure project commerciality.
Consultants and University industrial programs were also used to evaluate
geological and geophysical data sets. BPC supported research programs at three
leading US universities during and preceding Year 1: the University of Miami
Comparative Sedimentology Laboratory, which is the leading research group on the
geology of the Bahamas and Cretaceous reservoir systems; the Bureau of Economic
Geology (BEG), University of Texas at Austin is renowned for its global
experience in Jurassic and Cretaceous reservoir systems; and the University of
Utah Energy and Geoscience Institute which specialises in global exploration and
environmental monitoring. These leading university programs combined with the
BPC team and contractors have established BPC as a leader in exploration and
development studies for the Bahamas, the Caribbean and related global projects.
BPC's expertise has been realised by the super-major and major petroleum
companies, and farm-in discussions to enlist one or several companies to partner
in the exploration venture are ongoing. This is receiving the full attention of
BPC's technical staff.
Exploration Background
Over sixty years of sporadic exploration has been conducted in The Bahamas
beginning in 1945. Exploration licences were granted to 16 companies during this
period, the most recent being awarded to BPC. However, there has been very
little exploration and drilling activity, with no drilling in the last 20 years,
and much of the seismic acquisition activity occurred more than 20 years ago.
Five deep petroleum exploration wells have been drilled onshore or in Bahamian
waters. By 1947, following the major discoveries in carbonate reservoir systems
of West Texas, Mexico and the Middle East, companies were searching for similar
unexplored provinces. The oil rush to The Bahamas led to eight active licences,
including those held by Gulf, Standard Oil, BP, Superior Oil and Shell
Exploration. Superior Oil Company drilled Andros Island-1 in 1947 on the island
primarily as a stratigraphic test. Over the next two decades, Gulf, BP, Shell,
Chevron and Sun were the principal operators, and seismic was recorded in
1953-54, 1961 and 1964. Cay Sal-1 was drilled in 1959 by Gulf. Additional
seismic was acquired in the years up to 1972, and two further wells were
drilled. A joint venture of Gulf, Chevron and Mobil drilled Long Island-1 in
1970, and Chevron drilled the Great Isaac-1 well in 1971.
A gap in exploration activity followed until changes in petroleum legislation in
1982. The acquisition of a speculative survey by GSI renewed interest in the
Santaren Channel. Subsequently, Getty was awarded two licences in 1982 (Bimini
and south Andros Island area), and Natomas was awarded a licence to the
southwest of the Getty Andros Island concession. Natomas and Getty acquired
experimental seismic data in 1982-83, along with a follow-up program in 1983-84.
ARCO completed a seismic survey on its licence in 1985. ARCO was subsequently
taken over by Pecten (Shell). Getty opted not to drill a well following their
takeover by Texaco, and that licence expired in 1985. Tenneco acquired licences
and drilled the Doubloon Saxon-1 well in the southwestern Bahamas in 1985-86.
Kerr McGee Bahamas Ltd. and Atlantic Exploration and Production Co. was the most
recent operator that was awarded an exploration program in The Bahamas. The
Group announced in June 2003 that it had acquired 100% interest in nine oil and
gas licences offshore The Bahamas. The licences, located in the Blake Plateau
basin about 100 miles north of Freeport, Grand Bahamas Island, cover 6.5 million
acres in water depths ranging from 650 feet to more than 7,000 feet. The area
lies north of Little Bahama Bank and lacks the large-scale structural folds that
occur in BPC's licences.
BPC Limited was awarded five licences in April, 2007 totalling just over 3.8
million acres. Four of the licences are in the southern Bahamas in the area
previously held by Tenneco, and one licence is north of Bimini where previously
Chevron drilled the Great Isaac well.
In addition to the five wells drilled in The Bahamas, over 7000 kilometers of
seismic data was acquired in The Bahamas prior to BPC being awarded their
licences. No modern seismic data has been acquired in the area of BPC's
licences.
Summary of Progress
BPC has completed more than 25 technical studies to December 31, 2008. These
studies included technical analysis of geological and geophysical data. The
expenditure for these studies and associated work was US$2,836,837.
BPC's 20 months of technical studies were designed and executed in order to
provide an exploration framework for the licensed areas and programs for seismic
acquisition have been evaluated. Farm-out discussions with several companies are
underway.
Dr Paul Crevello
Chief Operating Officer
BPC LIMITED
31 December 2008
+--------------------------------------+--------+-----+----------------+---------------+
| Consolidated income | | | | |
| statement | | | | |
+--------------------------------------+--------+-----+----------------+---------------+
| | | | | |
+--------------------------------------+--------+-----+----------------+---------------+
| | | | 31 December | 31 December |
| | | | 2008 | 2007 |
| | | | 12 months | 12 months |
| | | | Group | Group |
+--------------------------------------+--------+-----+----------------+---------------+
| | Note | | $ | $ |
+--------------------------------------+--------+-----+----------------+---------------+
| Finance income | | | 57,492 | 86,358 |
+--------------------------------------+--------+-----+----------------+---------------+
| Finance costs | 4 | | (86,500) | - |
+--------------------------------------+--------+-----+----------------+---------------+
| Employee benefits | 5 | | (1,092,552) | (1,280,171) |
| expense | | | | |
+--------------------------------------+--------+-----+----------------+---------------+
| Depreciation and | | | (84,090) | (63,105) |
| amortisation expense | | | | |
+--------------------------------------+--------+-----+----------------+---------------+
| Loss on disposal of | | | (495) | - |
| fixed assets | | | | |
+--------------------------------------+--------+-----+----------------+---------------+
| Impairment of goodwill | | | (233,351) | - |
+--------------------------------------+--------+-----+----------------+---------------+
| Other expenses | 6 | | (2,121,839) | (2,202,090) |
+--------------------------------------+--------+-----+----------------+---------------+
| Loss before income tax | | | (3,561,335) | (3,459,008) |
+--------------------------------------+--------+-----+----------------+---------------+
| | | | | |
+--------------------------------------+--------+-----+----------------+---------------+
| Income tax expense | 7 | | _________ - | _________ - |
+--------------------------------------+--------+-----+----------------+---------------+
| Loss for the year | | | (3,561,335) | (3,459,008) |
+--------------------------------------+--------+-----+----------------+---------------+
| | | | | |
+--------------------------------------+--------+-----+----------------+---------------+
| Attributable to: | | | | |
+--------------------------------------+--------+-----+----------------+---------------+
| Equity holders of | | | (3,561,335) | (3,459,008) |
| BPC Limited | | | | |
+--------------------------------------+--------+-----+----------------+---------------+
| | | | | |
+--------------------------------------+--------+-----+----------------+---------------+
| | | | | |
+--------------------------------------+--------+-----+----------------+---------------+
| Earnings per share for | | | $ | $ |
| loss attributable to | | | | |
| the ordinary equity | | | | |
| holders of the | | | | |
| company: | | | | |
+--------------------------------------+--------+-----+----------------+---------------+
| Basic earnings per | 8 | | (0.0049) | (0.0055) |
| share | | | | |
+--------------------------------------+--------+-----+----------------+---------------+
| Diluted earnings per | 8 | | (0.0049) | (0.0055) |
| share | | | | |
+--------------------------------------+--------+-----+----------------+---------------+
| | | | | |
+--------------------------------------+--------+-----+----------------+---------------+
BPC LIMITED
31 December 2008
+--------------------------------------+-------+-------------------+-----------------+
| Consolidated balance | | | |
| sheet | | | |
+--------------------------------------+-------+-------------------+-----------------+
| | | | |
+--------------------------------------+-------+-------------------+-----------------+
| | | 31 December | 31 December |
| | | 2008 | 2007 |
| | | Group | Group |
+--------------------------------------+-------+-------------------+-----------------+
| | Note | $ | $ |
+--------------------------------------+-------+-------------------+-----------------+
| ASSETS | | | |
+--------------------------------------+-------+-------------------+-----------------+
| | | | |
+--------------------------------------+-------+-------------------+-----------------+
| Non?current assets | | | |
+--------------------------------------+-------+-------------------+-----------------+
| Cash not available for | 9 | 1,204,616 | 1,103,474 |
| use | | | |
+--------------------------------------+-------+-------------------+-----------------+
| Property, plant and | | 117,277 | 191,016 |
| equipment | | | |
+--------------------------------------+-------+-------------------+-----------------+
| Exploration and | 10 | 4,055,587 | 3,185,179 |
| evaluation assets | | | |
+--------------------------------------+-------+-------------------+-----------------+
| | | 5,377,480 | 4,479,669 |
+--------------------------------------+-------+-------------------+-----------------+
| Current assets | | | |
+--------------------------------------+-------+-------------------+-----------------+
| Cash and cash | | 3,004,451 | 675,711 |
| equivalents | | | |
+--------------------------------------+-------+-------------------+-----------------+
| Trade and other | | 507,393 | 515,782 |
| receivables | | | |
+--------------------------------------+-------+-------------------+-----------------+
| | | 3,511,844 | 1,191,493 |
+--------------------------------------+-------+-------------------+-----------------+
| | | | |
+--------------------------------------+-------+-------------------+-----------------+
| Total assets | | 8,889,324 | 5,671,162 |
+--------------------------------------+-------+-------------------+-----------------+
| | | | |
+--------------------------------------+-------+-------------------+-----------------+
| LIABILITIES | | | |
+--------------------------------------+-------+-------------------+-----------------+
| | | | |
+--------------------------------------+-------+-------------------+-----------------+
| Current liabilities | | | |
+--------------------------------------+-------+-------------------+-----------------+
| Trade and other | | 541,382 | 764,982 |
| payables | | | |
+--------------------------------------+-------+-------------------+-----------------+
| | | 541,382 | 764,982 |
+--------------------------------------+-------+-------------------+-----------------+
| | | | |
+--------------------------------------+-------+-------------------+-----------------+
| Total liabilities | | 541,382 | 764,982 |
+--------------------------------------+-------+-------------------+-----------------+
| | | | |
+--------------------------------------+-------+-------------------+-----------------+
| EQUITY | | | |
+--------------------------------------+-------+-------------------+-----------------+
| Ordinary Shares | | 28,764 | 1,118,700 |
+--------------------------------------+-------+-------------------+-----------------+
| Share premium reserve | | 73,634,186 | 11,871,197 |
+--------------------------------------+-------+-------------------+-----------------+
| Reverse acquisition | | (53,846,526) | - |
| reserve | | | |
+--------------------------------------+-------+-------------------+-----------------+
| Share based payments | | 300,139 | 253,799 |
| reserve | | | |
+--------------------------------------+-------+-------------------+-----------------+
| Other reserves | | 125,298 | (4,932) |
+--------------------------------------+-------+-------------------+-----------------+
| Retained earnings | | (11,893,919) | (8,332,584) |
+--------------------------------------+-------+-------------------+-----------------+
| Total equity | | 8,347,942 | 4,906,180 |
+--------------------------------------+-------+-------------------+-----------------+
| | | | |
+--------------------------------------+-------+-------------------+-----------------+
| Total equity and | | 8,889,324 | 5,671,162 |
| liabilities | | | |
+--------------------------------------+-------+-------------------+-----------------+
BPC LIMITED
31 December 2008
Consolidated statement of changes in equity
+------------------------------+------------------+--------------+---------------+-----------+------------+----------------+--------------+
| | Share | Share | Reverse | Share | Other | Retained | Total |
| | capital | premium | Acquisition | based | reserves | earnings | equity |
| | | | Reserve | payments | | | |
+------------------------------+------------------+--------------+---------------+-----------+------------+----------------+--------------+
| | $ | $ | $ | $ | $ | $ | $ |
+------------------------------+------------------+--------------+---------------+-----------+------------+----------------+--------------+
| | | | | | | | |
+------------------------------+------------------+--------------+---------------+-----------+------------+----------------+--------------+
| Balance at 1 January | 9,195,000 | | | 12,151 | ______ | (4,873,576) | 4,333,575 |
| 2007 | | _______- | | | - | | |
+------------------------------+------------------+--------------+---------------+-----------+------------+----------------+--------------+
| Currency translation | _______ | _______ | | __ | (4,932) | | (4,932) |
| differences | - | - | | __- | | ________- | |
+------------------------------+------------------+--------------+---------------+-----------+------------+----------------+--------------+
| Net | | | | | (4,932) | ________ | (4,932) |
| income | _______- | _______- | | _____- | | - | |
| recognised | | | | | | | |
| directly | | | | | | | |
| in equity | | | | | | | |
+------------------------------+------------------+--------------+---------------+-----------+------------+----------------+--------------+
| Loss for the period | | _______ | | _____ | _____ | (3,459,008) | (3,459,008) |
| | _______- | - | | - | - | | |
+------------------------------+------------------+--------------+---------------+-----------+------------+----------------+--------------+
| Total | | _______ | | _____ | (4,932) | (3,459,008) | (3,463,940) |
| recognised | _______- | - | | - | | | |
| income and | | | | | | | |
| expense | | | | | | | |
| for the | | | | | | | |
| period | | | | | | | |
+------------------------------+------------------+--------------+---------------+-----------+------------+----------------+--------------+
| Issue of share | 1,654,997 | 1,000,000 | | - | - | - | 2,654,997 |
| capital | | | | | | | |
+------------------------------+------------------+--------------+---------------+-----------+------------+----------------+--------------+
| Employee | - | - | | 241,648 | - | - | 241,648 |
| share | | | | | | | |
| option | | | | | | | |
| scheme: | | | | | | | |
| value of | | | | | | | |
| employee | | | | | | | |
| services | | | | | | | |
+------------------------------+------------------+--------------+---------------+-----------+------------+----------------+--------------+
| Share | (9,764,997) | 9,764,997 | | - | - | - | - |
| capital | | | | | | | |
| reorganisation | | | | | | | |
| following | | | | | | | |
| share exchange | | | | | | | |
+------------------------------+------------------+--------------+---------------+-----------+------------+----------------+--------------+
| Options exercised | 12,000 | 108,000 | | - | - | - | 120,000 |
+------------------------------+------------------+--------------+---------------+-----------+------------+----------------+--------------+
| Issue of share | 21,700 | 998,200 | | _____ | | _____ - | 1,019,900 |
| capital | | | | - | _____- | | |
+------------------------------+------------------+--------------+---------------+-----------+------------+----------------+--------------+
| Balance at 31 | 1,118,700 | 11,871,197 | | 253,799 | (4,932) | (8,332,584) | 4,906,180 |
| December 2007 | | | | | | | |
+------------------------------+------------------+--------------+---------------+-----------+------------+----------------+--------------+
| | | | | | | | |
+------------------------------+------------------+--------------+---------------+-----------+------------+----------------+--------------+
| | | | | | | | |
+------------------------------+------------------+--------------+---------------+-----------+------------+----------------+--------------+
| Balance at 1 January | 1,118,700 | 11,871,197 | | 253,799 | (4,932) | (8,332,584) | 4,906,180 |
| 2008 | | | | | | | |
+------------------------------+------------------+--------------+---------------+-----------+------------+----------------+--------------+
| Currency translation | ______ | ______ | | | 130,230 | ________ | 130,230 |
| differences | - | - | | ______- | | - | |
+------------------------------+------------------+--------------+---------------+-----------+------------+----------------+--------------+
| Net | | ______ | | | 130,230 | | 130,230 |
| income | ______- | - | | ______- | | ________- | |
| recognised | | | | | | | |
| directly | | | | | | | |
| in equity | | | | | | | |
+------------------------------+------------------+--------------+---------------+-----------+------------+----------------+--------------+
| Loss for the period | ______ | | | | ______ | (3,561,335) | (3,561,335) |
| | - | ______- | | ______- | - | | |
+------------------------------+------------------+--------------+---------------+-----------+------------+----------------+--------------+
| Total | ______ | | | | 130,230 | (3,561,335) | (3,431,105) |
| recognised | - | ______- | | ______- | | | |
| income and | | | | | | | |
| expense | | | | | | | |
| for the | | | | | | | |
| period | | | | | | | |
+------------------------------+------------------+--------------+---------------+-----------+------------+----------------+--------------+
| Employee | - | - | | 28,126 | - | - | 28,126 |
| share | | | | | | | |
| option | | | | | | | |
| scheme: | | | | | | | |
| value of | | | | | | | |
| employee | | | | | | | |
| services | | | | | | | |
+------------------------------+------------------+--------------+---------------+-----------+------------+----------------+--------------+
| Options exercised | 66,950 | 702,550 | | | | ________ | 769,500 |
| | | | | ______- | ______- | - | |
+------------------------------+------------------+--------------+---------------+-----------+------------+----------------+--------------+
| Balance at 31 | 1,185,650 | 12,573,747 | | 281,925 | 125,298 | (11,893,919) | 8,347,942 |
| December 2008 | | | | | | | |
+------------------------------+------------------+--------------+---------------+-----------+------------+----------------+--------------+
| | | | | | | | |
+------------------------------+------------------+--------------+---------------+-----------+------------+----------------+--------------+
| | | | | | | | |
+------------------------------+------------------+--------------+---------------+-----------+------------+----------------+--------------+
| BPC Limited | | | | | | | |
| (formerly FGML) | | | | | | | |
+------------------------------+------------------+--------------+---------------+-----------+------------+----------------+--------------+
| Balance at 1 January | - | - | - | 281,925 | 125,298 | (8,332,584) | (7,925,361) |
| 2008 arising in | | | | | | | |
| legacy BPC Jersey | | | | | | | |
| Limited | | | | | | | |
+------------------------------+------------------+--------------+---------------+-----------+------------+----------------+--------------+
| Loss for the period | - | - | - | - | - | (3,561,335) | (3,561,335) |
+------------------------------+------------------+--------------+---------------+-----------+------------+----------------+--------------+
| Shares prior to | 2,850 | 18,594,187 | | - | - | - | 18,597,037 |
| acquisition | | | | | | | |
+------------------------------+------------------+--------------+---------------+-----------+------------+----------------+--------------+
| Issue of share | 25,914 | 55,039,999 | (53,846,526) | - | - | - | 1,219,387 |
| capital on business | | | | | | | |
| combination | | | | | | | |
+------------------------------+------------------+--------------+---------------+-----------+------------+----------------+--------------+
| Share options - | | _______ | ______ | 18,214 | ___ | ________ | __ |
| value of services | _______- | - | - | | - | - | 18,214 |
+------------------------------+------------------+--------------+---------------+-----------+------------+----------------+--------------+
| Balance at 31 | | | | | | | |
| December 2008 | | | | | | | |
| | 28,764 | 73,634,186 | (53,846,526) | 300,139 | 125,298 | (11,893,919) | 8,347,942 |
+------------------------------+------------------+--------------+---------------+-----------+------------+----------------+--------------+
BPC LIMITED
31 December 2008
+---------------------------------------------+------+--------------+--------------+
| Consolidated cash flow | | | |
| statement | | | |
+---------------------------------------------+------+--------------+--------------+
| | | | |
+---------------------------------------------+------+--------------+--------------+
| | | 31 December | 31 December |
| | | 2008 | 2007 |
| | | Group | Group |
+---------------------------------------------+------+--------------+--------------+
| |Note | $ | $ |
+---------------------------------------------+------+--------------+--------------+
| | | | |
+---------------------------------------------+------+--------------+--------------+
| Cash flows from operating | | | |
| activities | | | |
+---------------------------------------------+------+--------------+--------------+
| Payments to suppliers and | 11 | (2,930,809) | (3,067,691) |
| employees | | | |
+---------------------------------------------+------+--------------+--------------+
| Net cash used in operating | | (2,930,809) | (3,067,691) |
| activities | | | |
+---------------------------------------------+------+--------------+--------------+
| | | | |
+---------------------------------------------+------+--------------+--------------+
| Cash flows from investing | | | |
| activities | | | |
+---------------------------------------------+------+--------------+--------------+
| Payments for property, plant | | (12,921) | (242,943) |
| and equipment | | | |
+---------------------------------------------+------+--------------+--------------+
| Proceeds from sale of | | 2,076 | - |
| property, plant and equipment | | | |
+---------------------------------------------+------+--------------+--------------+
| Payments for exploration and | 10 | (870,408) | (1,607,027) |
| evaluation assets | | | |
+---------------------------------------------+------+--------------+--------------+
| Deposits for bank guarantees | 9 | (101,142) | (1,103,474) |
+---------------------------------------------+------+--------------+--------------+
| Interest received | | 57,492 | __86,358 |
+---------------------------------------------+------+--------------+--------------+
| Net cash used in investing | | (924,903) | (2,867,086) |
| activities | | | |
+---------------------------------------------+------+--------------+--------------+
| | | | |
+---------------------------------------------+------+--------------+--------------+
| Cash flows from financing | | | |
| activities | | | |
+---------------------------------------------+------+--------------+--------------+
| Proceeds from issuance of | | 6,826,527 | 3,794,897 |
| ordinary shares | | | |
+---------------------------------------------+------+--------------+--------------+
| Interest paid | 4 | (86,500) | _______ - |
+---------------------------------------------+------+--------------+--------------+
| Net cash generated from | | 6,740,027 | 3,794,897 |
| financing activities | | | |
+---------------------------------------------+------+--------------+--------------+
| | | | |
+---------------------------------------------+------+--------------+--------------+
| Net increase/(decrease) in | | 2,884,315 | (2,139,880) |
| cash and cash equivalents | | | |
+---------------------------------------------+------+--------------+--------------+
| | | | |
+---------------------------------------------+------+--------------+--------------+
| Cash and cash equivalents at | | 675,711 | 2,834,665 |
| the beginning of the period | | | |
+---------------------------------------------+------+--------------+--------------+
| | | | |
+---------------------------------------------+------+--------------+--------------+
| Effects of exchange rate | | (555,575) | (19,074) |
| changes on cash and cash | | | |
| equivalents | | | |
+---------------------------------------------+------+--------------+--------------+
| | | | |
+---------------------------------------------+------+--------------+--------------+
| Cash and cash equivalents at | | 3,004,451 | 675,711 |
| end of period | | | |
+---------------------------------------------+------+--------------+--------------+
| | | | |
+---------------------------------------------+------+--------------+--------------+
BPC LIMITED
31 December 2008
Notes to the consolidated financial statements
1. General information
BPC Limited ("the company") and its subsidiaries (together "the operating
group") is the holder of several oil and gas exploration licences issued by the
Government of the Commonwealth of The Bahamas.
The company is a limited liability company incorporated and domiciled in The
Falkland Islands. The address of its registered office is 56 John Street,
Stanley, The Falkland Islands.
The company has one directly and four indirectly 100% owned subsidiaries as
follows:
+--------------------------------------------------------------------------------------------+
| Name Country of Incorporation Holding |
| BPC Jersey Limited (name Jersey 100% Direct |
| changed from BPC Limited |
| on 11 September 2008) |
| BPC Limited ("BPC Limited Bahamas 100% Indirect |
| (Bahamas)") |
| Bahamas Offshore Bahamas 100% Indirect |
| Petroleum Ltd |
| Island Offshore Petroleum Bahamas 100% Indirect |
| Ltd |
| BPC Perth Pty Ltd Australia 100% Indirect |
| The names of the directors in office at any time during |
| or since the end of the year are: |
| Alan Burns Chairman and Chief |
| Executive Officer |
| Paul Crevello Director and Chief |
| Operating Officer |
| Mark Savage Non Executive Director |
| Michael Proffitt Finance Director |
| Timothy Jones Non Executive Director Resigned 1 April |
| 2009 |
| Robert Carroll Non Executive Director Resigned 1 April |
| 2009 |
| |
+--------------------------------------------------------------------------------------------+
The directors continue in office to the date of this report unless otherwise
stated.
The loss of the company for the year ended 31 December 2008 amounted to
$3,561,335 (31 December 2007: $3,459,008) arising from the group's expenditure
in administering the five oil and gas exploration licences.
The sources of liquidity for the group during 2008 have been equity placements,
bank interest and the bank and cash balances acquired as a result of the reverse
acquisition of FGML. Prior to 1 September 2008 the sources of liquidity have
been equity placements and bank interest. It is the intention of the group that
the main source of liquidity for operations and commitments for the next twelve
months will be existing cash balances.
These group consolidated financial statements were authorised for issue by the
Board of Directors on 8 April 2009.
2. Summary of significant account policies
The principal accounting policies applied in the preparation of these
consolidated financial statements are set out below. These policies have been
consistently applied to all the years presented, unless otherwise stated.
2.1 Basis of preparation
The consolidated financial statements of BPC Limited reflect the results and
financial position of the Group for the 12 month period to 31 December 2008.
These financial statements of BPC Limited have been prepared in accordance with
International Financial Reporting Standards (IFRS) and have been prepared under
the historical cost convention.
Under IFRS 3, the directors must identify the "acquirer" and "acquiree" under
any business combination. On 1 September 2008, BPC Jersey Limited became the
acquirer of Falkland Gold and Minerals Limited ("FGML"), although FGML is the
legal parent of the new group. As BPC Jersey Limited is the acquirer, these
consolidated accounts show the results of the BPC group incorporating FGML's
results from 1 September 2008. The comparatives for 2007 are those of the BPC
Jersey Ltd group only and do not include any of the FGML balances.
The preparation of financial statements in conformity with IFRS requires the use
of certain critical accounting estimates. It also requires management to
exercise its judgement in the process of applying the Operating Group's
accounting policies. The areas involving a higher degree of judgement or
complexity, or areas where assumptions and estimates are significant to the
financial statements are disclosed in note 3.
Going concern
These financial statements have been prepared on a going concern basis, which
assumes that the Group will be able to meet its liabilities as and when they
fall due for the foreseeable future.
The Directors have prepared cash flow forecasts that indicate that the Group
will be able to meet its financial obligations through to the second quarter of
2010 from its existing liquid cash resources.
Additional cash resources may become available to the Group as a result of
negotiations currently in hand with the Government of The Bahamas to reduce the
level of performance guarantees deposited at Barclays Bank following the group's
satisfaction of required expenditure commitments under its licences.
However, the Group's ability to meet its obligations beyond this period is
dependent on either further fund raising or the agreement of a farm-out
arrangement of the Group's licences. Negotiations are currently in hand with
third parties which, if successfully concluded, will provide additional funding
and/or contributions to exploration expenditure under joint venture
arrangements.
The Directors have concluded that, as they have yet to reach agreement
with third parties in relation to potential additional fundraising/farm-out
transactions, there exists 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 concluded that it is appropriate to continue to adopt the going
concern basis when preparing these accounts. Our auditors,
PricewaterhouseCoopers LLP, have included a matter of emphasis paragraph in
respect of this material uncertainty in their audit report.
a) Standards, amendments and interpretations which became effective in 2008
* IFRIC 12, 'Service concession arrangements' (effective from 1 January 2008).
IFRIC 12 is not relevant to the group's operations because none of the group's
companies provide for public sector services.
* IFRIC 13, 'Customer loyalty programmes' (effective from 1 July 2008). IFRIC 13
is not relevant to the group's operations because none of the group's companies
operate any loyalty programmes.
* IFRIC 14, 'IAS 19 - The limit on a defined benefit asset, minimum funding
requirements and their interaction' (effective from 1 January 2008). IFRIC is
not relevant to the group's operations the group does not operate any defined
benefit scheme.
* IFRIC 16. 'Hedges of a net investment in a foreign operation' (effective from 1
October 2008). IFRIC 16 is not relevant to the group's operation because none of
the group's companies undertake hedges.
b) Standards, amendments and interpretations to existing standards that are not
yet effective but have been early adopted by the group
The following standards, amendments and interpretations to existing standards
have been published and are mandatory for the group's accounting periods
beginning on or after 1 January 2009 or later periods, but the group has early
adopted them:
* IAS 23 (Amendment), 'Borrowing costs' (effective from 1 January 2009). IAS 23
removes the option to expense all borrowing costs.
c) Standards, amendments and interpretations to existing standards that are not
yet effective and have not been early adopted by the group
The following standards, amendments and interpretations to existing standards
have been published and are mandatory for the group's accounting periods
beginning on or after 1 January 2009 or later periods, but the group has not
early adopted them;
* IFRS 2 (revised) 'Share-based payments' (effective from 1 January 2009). The
amendments to IFRS 2 clarify the definition of vesting conditions and the
accounting treatment of cancellations by the counterparty to a share-based
arrangement.
* IFRS 3 (revised) 'Business combinations' (effective from 1 July 2009). There are
some significant amendments to IFRS 3, none of which are considered to impact on
the results or net assets of the group had the revised standard been adopted
early by the group during the period.
* IFRS 8 'Operating Segments' (effective from 1 January 2009). IFRS 8 replaces IAS
14 and aligns segment reporting with the requirements of the US standard SFAS
131, 'Disclosures about segments of an enterprise and related information'. The
new standard requires a 'management approach', under which segment information
is presented on the same basis as that used for internal reporting purposes. The
group will apply IFRS 8 from 1 January 2009 but it is currently not applicable
to the group as there is only one reporting segment used by management at this
stage.
* IAS 1 (revised) 'Presentation of financial statements' (effective from 1 January
2009). The amendments to IAS1 relate to revised requirements for presentation of
some financial statements, and revised terminology throughout.
* IAS 27 (revised) 'Consolidated and Separate Financial Statements' (effective
from 1 July 2009). The amendments to IAS 27 relate to partial disposals of
subsidiaries, associates and joint ventures, and attributing income to the
non-controlling interest.
* IAS 32 (revised) 'Financial instruments; Presentation' (effective from 1 January
2009). In February 2008, the IASB issued amendments to IAS 32 and IAS 1(2007)
Presentation of Financial Statements on Puttable Financial Instruments and
Obligations Arising on Liquidation. The objective of the amendments is to
improve the financial reporting of particular types of financial instruments
that meet the definition of a financial liability but represent the residual
interest in the net assets of the entity.
* IFRIC 15, 'Agreements for construction real estates'. IFRIC 15 is not relevant
to the group's operations because none of the group's companies operate in real
estates.
2.2 Basis of Consolidation
The consolidated financial statements incorporate the financial statements of
the Company and entities (including special purpose entities) controlled by the
Company (its subsidiaries) made up to 31 December each year. Control is achieved
where the Company has the power to govern the financial and operating policies
of an investee entity so as to obtain benefits from its activities.
Non-controlling interests in the net assets of consolidated subsidiaries are
identified separately from the Group's equity therein. The interest of
non-controlling shareholders may be initially measured either at fair value or
at the non-controlling interest's proportionate share of the acquiree's
identifiable net assets. The choice of measurement basis is made on an
acquisition-by-acquisition basis. Subsequent to acquisition, non-controlling
interests consist of the amount attributed to such interests at initial
recognition and the non-controlling interest's share of changes in equity since
the date of the combination.
The results of subsidiaries acquired or disposed of during the year are included
in the consolidated statement of comprehensive income from the effective date of
acquisition or up to the effective date of disposal, as appropriate.
Where necessary, adjustments are made to the financial statements of
subsidiaries to bring the accounting policies used in line with those used by
the Group.
All intra-group transactions, balances, income and expenses (including
unrealised gains and losses on transactions between group companies) are
eliminated on consolidation.
3 Critical accounting estimates and judgements
Estimates and judgements are continually evaluated and are based on historical
experience and other factors, including expectations of future events that may
have a financial impact on the entity and that are believed to be reasonable
under the circumstances.
3.1 Critical accounting estimates and assumptions
The group makes estimates and assumptions concerning the future. The resulting
accounting estimates will, by definition, seldom equal the related actual
results. The estimates and assumptions that have a significant risk of causing a
material adjustment to the carrying amounts of assets and liabilities within the
next financial year are discussed below.
(a) Going concern
These financial statements have been prepared on a going concern basis, which
assumes that the Group will be able to meet its liabilities as and when they
fall due for the foreseeable future.
The Directors have prepared cash flow forecasts that indicate that the Group
will be able to meet its financial obligations through to the second quarter of
2010 from its existing liquid cash resources.
Additional cash resources may become available to the Group as a result of
negotiations currently in hand with the Government of The Bahamas to reduce the
level of performance guarantees deposited at Barclays Bank following the group's
satisfaction of required expenditure commitments under its licences.
However, the Group's ability to meet its obligations beyond this period is
dependent on either further fund raising or the agreement of a farm-out
arrangement of the Group's licences. Negotiations are currently in hand with
third parties which, if successfully concluded, will provide additional funding
and/or contributions to exploration expenditure under joint venture
arrangements.
The Directors have concluded that, as they have yet to reach agreement
with third parties in relation to potential additional fundraising/farm-out
transactions, there exists 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 concluded that it is appropriate to continue to adopt the going
concern basis when preparing these accounts.
(b) Carrying value of exploration expenditure
Expenditure of $4,055,587 relating to the cost of exploration licences,
geological and geophysical consultancy has been carried forward on the balance
sheet at 31 December 2008 (31 December 2007: $3,185,179).
The consultancy expenditure incurred related to the gathering of historical data
and the commencement of interpretation of this data.
Ultimate recoupment of exploration and evaluation assets carried forward is
dependent on successful development and commercial exploitation, or
alternatively, sale of the respective areas.
(c) Prepayments
Prepayments comprise application fees paid to the Government of the Bahamas for
additional exploration licences, pending award. In the event that the group's
applications are unsuccessful 50% of this amount is refundable to the group.
No provision has been made in the accounts to write down the carrying value of
these prepayments in the event that the applications are unsuccessful.
4 Finance Costs
+------------------------------------------------+-----------------+----------------+
| | 31 December | 31 December |
| | 2008 | 2007 |
| | Group | Group |
+------------------------------------------------+-----------------+----------------+
| | $ | $ |
+------------------------------------------------+-----------------+----------------+
| Interest | 86,500 | ____ - |
| paid on | | |
| convertible | | |
| loan notes | | |
+------------------------------------------------+-----------------+----------------+
On 1 April 2008 the Company entered into a Loan note investment agreement with
RAB Special Situations (Master) Fund Limited and a Loan note instrument in order
to raise US$1,500,000 through the issue of 1,500,000 unsecured convertible loan
notes of $1 each.
US$1,500,000 was raised through the issue of loan notes to RAB, directors, and
companies nominated by directors during April 2008. Interest was payable on the
loan notes at 1% per calendar month.
The loan notes could be redeemed by the Company at any time after 30 April 2008
or by the note holder after the exit date, being 31 October 2008. The notes
could instead be converted into ordinary shares by the noteholder on or after 1
July 2008 at the lower of $0.576 per share and a 20% discount to the price at
which a placement or sale of the Company occurs.
On 19 September 2008 all the loan notes issued were redeemed in full. The total
amount repaid was $1,586,500 representing $1,500,000 principal and $86,500
interest.
5. Employee benefit expense
+---------------------------------------------------+-----------------+----------------+
| | 31 December | 31 December |
| | 2008 | 2007 |
| | Group | Group |
+---------------------------------------------------+-----------------+----------------+
| | $ | $ |
+---------------------------------------------------+-----------------+----------------+
| Wages | 1,030,417 | 989,447 |
| and | | |
| salaries | | |
+---------------------------------------------------+-----------------+----------------+
| Share | 28,126 | 241,648 |
| options | | |
| granted | | |
| to | | |
| directors | | |
| and | | |
| employees | | |
+---------------------------------------------------+-----------------+----------------+
| Social | 2,884 | 2,884 |
| security | | |
| costs | | |
+---------------------------------------------------+-----------------+----------------+
| Pension | 17,321 | 10,909 |
| costs | | |
| -defined | | |
| contribution | | |
+---------------------------------------------------+-----------------+----------------+
| Other | 13,804 | 35,283 |
| staff | | |
| costs | | |
+---------------------------------------------------+-----------------+----------------+
| | 1,092,552 | 1,280,171 |
+---------------------------------------------------+-----------------+----------------+
| Number | 10 | 10 |
| of | | |
| employees | | |
+---------------------------------------------------+-----------------+----------------+
| | | |
+---------------------------------------------------+-----------------+----------------+
| Average | | |
| number | | |
| of | | |
| employees | | |
+---------------------------------------------------+-----------------+----------------+
| Split | | |
| between: | | |
+---------------------------------------------------+-----------------+----------------+
| | 4 | 4 |
| Executives | | |
+---------------------------------------------------+-----------------+----------------+
| | 4 | 4 |
| Non-executive | | |
+---------------------------------------------------+-----------------+----------------+
| | ______ | ______ 2 |
| Administrative | 2 | |
+---------------------------------------------------+-----------------+----------------+
| | | _____10 |
| Total | _____10 | |
+---------------------------------------------------+-----------------+----------------+
6. Other expenses
+--------------------------------------------------+-----------------+----------------+
| | 31 December | 31 December |
| | 2008 | 2007 |
| | Group | Group |
+--------------------------------------------------+-----------------+----------------+
| | $ | $ |
+--------------------------------------------------+-----------------+----------------+
| Travel | 527,062 | 586,588 |
| and | | |
| accommodation | | |
+--------------------------------------------------+-----------------+----------------+
| Operating | 66,400 | 64,900 |
| lease | | |
| payments | | |
| - other | | |
+--------------------------------------------------+-----------------+----------------+
| Legal | 715,306 | 393,493 |
| and | | |
| professional | | |
+--------------------------------------------------+-----------------+----------------+
| Auditors' | 75,132 | 30,000 |
| remuneration | | |
+--------------------------------------------------+-----------------+----------------+
| Net | 555,575 | 19,074 |
| foreign | | |
| exchange | | |
| losses | | |
+--------------------------------------------------+-----------------+----------------+
| Capital | - | 821,454 |
| raising | | |
| costs | | |
| written | | |
| off | | |
+--------------------------------------------------+-----------------+----------------+
| Other | 182,364 | 286,581 |
+--------------------------------------------------+-----------------+----------------+
| Total | 2,121,839 | 2,202,090 |
| other | | |
| expenses | | |
+--------------------------------------------------+-----------------+----------------+
| | | |
+--------------------------------------------------+-----------------+----------------+
7. Income tax
Until 31 December 2008 the Company was resident in both the UK and the Falkland
Islands for tax purposes. Following the reverse takeover on 1 September 2008 all
UK based operations and activities have ceased and therefore the Company has
migrated its tax residency to Jersey, effective 31 December 2008. This migration
is subject to HMRC approval and a bank guarantee of GBP75,000 (equivalent to
$108,594 as at 31 December 2008) has been provided to HMRC pending finalisation
of any remaining tax liability. The Directors are of the opinion that the final
tax liability will be GBPnil.
The Company's 100% directly held subsidiary, BPC Jersey Limited, has obtained
Jersey exempt company status for the year under Article 123A of the Income Tax
(Jersey) law 1961, as amended, and is therefore exempt from Jersey income tax on
non Jersey source income and bank interest (by concession). A GBP600 annual
exempt company has been paid by the Company in April 2008 and this amount is
included within "other" in note 6. From 31 December 2008 the exempt company
status terminates and under the revised law the Company is treated as a zero
rated company, and will pay no Jersey income tax.
The Company's 100% indirectly held subsidiary, BPC Perth Pty Ltd, is tax
resident in Australia.
All other group companies are within a tax free jurisdiction, that of the
Bahamas. Under current Bahamas law, the company is not required to pay taxes in
the Bahamas on Income or capital gains.
+------------------------------------------------+-----------------+----------------+
| | 31 December | 31 December |
| | 2008 | 2007 |
| | Group | Group |
+------------------------------------------------+-----------------+----------------+
| | $ | $ |
+------------------------------------------------+-----------------+----------------+
| (i) The | | |
| charge for | | |
| the year | | |
| is made up | | |
| as | | |
| follows: | | |
+------------------------------------------------+-----------------+----------------+
| - | ______ - | ______ - |
| Bahamas | | |
| corporation | | |
| tax (at 0%) | | |
+------------------------------------------------+-----------------+----------------+
| - | ______ - | ______ - |
| Taxation | | |
| imposed | | |
| outside | | |
| Bahamas | | |
+------------------------------------------------+-----------------+----------------+
| | | |
+------------------------------------------------+-----------------+----------------+
The Australian subsidiary is in a tax loss position and hence has not recognised
any income tax expense for the period. Deferred income tax assets have not been
brought to account, as it is not probable within the immediate future that tax
profits will be available against which deductible temporary differences can be
utilised. The deferred income tax amounts are as follows:
+-------------------------------------------------+-----------------+----------------+
| |
+------------------------------------------------------------------------------------+
| | 31 December | 31 December |
| | 2008 | 2007 |
| | Group | Group |
+-------------------------------------------------+-----------------+----------------+
| | $ | $ |
+-------------------------------------------------+-----------------+----------------+
| The | | |
| deferred | | |
| tax asset | | |
| is made up | | |
| of the | | |
| following | | |
| estimated | | |
| net tax | | |
| benefit: | | |
+-------------------------------------------------+-----------------+----------------+
| - tax | 92,248 | 58,300 |
| losses | | |
+-------------------------------------------------+-----------------+----------------+
| - | 50,333 | (49,971) |
| temporary | | |
| differences | | |
+-------------------------------------------------+-----------------+----------------+
| Net | 142,581 | _ 8,329 |
| unrecognised | | |
| deferred tax | | |
| asset | | |
+-------------------------------------------------+-----------------+----------------+
8. Earnings per share
(a) Basic
Basic loss per share is calculated by dividing the loss attributable to equity
holders of the company by the weighted average number of ordinary shares on
issue during the year.
+-------------------------------------------------+-----------------+----------------+
| | 31 December | 31 December |
| | 2008 | 2007 |
| | Group | Group |
+-------------------------------------------------+-----------------+----------------+
| | | |
+-------------------------------------------------+-----------------+----------------+
| Loss | $(3,561,335) | $(3,459,008) |
| attributable | | |
| to equity | | |
| holders of | | |
| the company | | |
+-------------------------------------------------+-----------------+----------------+
| Weighted | 734,205,111 | 627,514,188 |
| average | | |
| number of | | |
| ordinary | | |
| shares in | | |
| issue | | |
+-------------------------------------------------+-----------------+----------------+
| Basic loss | $(0.0049) | $(0.0055) |
| per share | | |
| ($ per | | |
| share) | | |
+-------------------------------------------------+-----------------+----------------+
(b) Diluted
Diluted loss per share is calculated by adjusting the weighted average number of
ordinary shares outstanding to assume conversion of all dilutive potential
ordinary shares. The company has one category of dilutive potential ordinary
shares: share options. For these share options, a calculation is done to
determine the number of shares that could have been acquired at fair value
(determined as the average annual market share price of the company's shares)
based on the monetary value of the subscription rights attached to outstanding
share options. The number of shares calculated as above is compared with the
number of shares that would have been issued assuming the exercise of the share
options.
+------------------------------------------------+-----------------+----------------+
| | 31 December | 31 December |
| | 2008 | 2007 |
| | Group | Group |
+------------------------------------------------+-----------------+----------------+
| | | |
+------------------------------------------------+-----------------+----------------+
| Loss attributable to equity | $(3,561,335) | $(3,459,008) |
| holders of the company | | |
+------------------------------------------------+-----------------+----------------+
| Weighted average number of | 734,205,111 | 627,514,188 |
| ordinary shares in issue | | |
+------------------------------------------------+-----------------+----------------+
| - Share options not | 9,140,421 | 47,075,507 |
| included in calculation due | | |
| to anti-dilutive effect | | |
+------------------------------------------------+-----------------+----------------+
| - Weighted average number | 734,345,952 | 674,589,695 |
| of ordinary shares for | | |
| diluted earnings per share | | |
+------------------------------------------------+-----------------+----------------+
| Basic loss per share ($ per | $(0.0049) | $(0.0055) |
| share) | | |
+------------------------------------------------+-----------------+----------------+
9.Cash not available for use
+------------------------------------------------+-----------------+----------------+
| | 31 December | 31 December |
| | 2008 | 2007 |
| | Group | Group |
+------------------------------------------------+-----------------+----------------+
| | $ | $ |
+------------------------------------------------+-----------------+----------------+
| Bank | 1,051,796 | 1,050,000 |
| deposit (a) | | |
+------------------------------------------------+-----------------+----------------+
| Bank | 44,226 | 53,474 |
| deposit (b) | | |
+------------------------------------------------+-----------------+----------------+
| Bank | 108,594 | ______ - |
| deposit (c) | | |
+------------------------------------------------+-----------------+----------------+
| | 1,204,616 | 1,103,474 |
+------------------------------------------------+-----------------+----------------+
(a) Bank Deposit
Bank deposit held as security for performance guarantees issued by Barclays Bank
Plc to the Treasury of the Government of the Bahamas in respect of the 5
exploration licences held by the group. It is to be held to their maturity on 20
January 2010 and carries an interest rate of 0.1% (2007: 3%).
(b) Bank Deposit
Bank deposit held as security by National Australia Bank in respect of company
credit cards. The deposit carries an interest rate of 8% until maturity on 3
February 2009 (2007: 6.9%).
(c) Bank Deposit
Bank deposit held as security by Barclays Bank Plc as security for bank
guarantee provided to HMRC. The guarantee was required to be in place prior to
migrating the UK tax residency of the Company. It is to be held for a period of
one year from filing of the final UK tax return. The deposit carries an interest
rate of 0.1%.
10. Intangible assets
+-----------------------------------------------+------------+-------------+-------------+-----------+
| Group | Goodwill |Exploration |Geological, | Total |
| | | Licences* |Geophysical | |
| | | | and | |
| | | | Technical | |
| | | | Analysis* | |
+-----------------------------------------------+------------+-------------+-------------+-----------+
| | $ | $ | $ | $ |
+-----------------------------------------------+------------+-------------+-------------+-----------+
| Year | | | | |
| ended | | | | |
| 31 | | | | |
| December | | | | |
| 2007 | | | | |
+-----------------------------------------------+------------+-------------+-------------+-----------+
| Opening | - | 787,500 | 790,652 | 1,578,152 |
| net | | | | |
| book | | | | |
| amount | | | | |
+-----------------------------------------------+------------+-------------+-------------+-----------+
| Additions | ______ - | _____- | 1,607,027 | 1,607,027 |
+-----------------------------------------------+------------+-------------+-------------+-----------+
| Closing | ______ - | 787,500 | 2,397,679 | 3,185,179 |
| net | | | | |
| book | | | | |
| amount | | | | |
+-----------------------------------------------+------------+-------------+-------------+-----------+
| | | | | |
+-----------------------------------------------+------------+-------------+-------------+-----------+
| At 31 | | | | |
| December | | | | |
| 2007 | | | | |
+-----------------------------------------------+------------+-------------+-------------+-----------+
| Net | _____ - | 787,500 | 2,397,679 | 3,185,179 |
| book | | | | |
| amount | | | | |
+-----------------------------------------------+------------+-------------+-------------+-----------+
| | | | | |
+-----------------------------------------------+------------+-------------+-------------+-----------+
| Year | | | | |
| ended | | | | |
| 31 | | | | |
| December | | | | |
| 2008 | | | | |
+-----------------------------------------------+------------+-------------+-------------+-----------+
| Opening | - | 787,500 | 2,397,679 | 3,185,179 |
| net | | | | |
| book | | | | |
| amount | | | | |
+-----------------------------------------------+------------+-------------+-------------+-----------+
| Additions | 233,351 | 431,250 | 439,158 | 1,103,759 |
+-----------------------------------------------+------------+-------------+-------------+-----------+
| Impairment | (233,351) | ______- | ______ | (233,351) |
| charge ** | | | - | |
+-----------------------------------------------+------------+-------------+-------------+-----------+
| Closing | ______ - | 1,218,750 | 2,836,837 | 4,055,587 |
| net | | | | |
| book | | | | |
| amount | | | | |
+-----------------------------------------------+------------+-------------+-------------+-----------+
| | | | | |
+-----------------------------------------------+------------+-------------+-------------+-----------+
| At 31 | | | | |
| December | | | | |
| 2008 | | | | |
+-----------------------------------------------+------------+-------------+-------------+-----------+
| Net | ______ - | 1,218,750 | 2,836,837 | 4,055,587 |
| book | | | | |
| amount | | | | |
+-----------------------------------------------+------------+-------------+-------------+-----------+
| | | | | |
+-----------------------------------------------+------------+-------------+-------------+-----------+
*Exploration and evaluation assets
Ultimate recoupment of exploration and evaluation assets carried forward is
dependent on successful development and commercial exploitation, or
alternatively, sale of the respective areas.
**Impairment charge
The carrying value of the goodwill initially recognised upon the reverse
acquisition of FGML on 1 September 2008 has been reduced to zero through the
recognition of an impairment loss against goodwill. This loss has been
recognised as a separate line item in the income statement.
11. Cash generated from operations
+-----------------------------------------------------------+---------------------------------------------+--------------------------------------+
| | 31 | 31 |
| | December | December |
| | 2008 | 2007 |
| | Group | Group |
+-----------------------------------------------------------+---------------------------------------------+--------------------------------------+
| | $ | $ |
+-----------------------------------------------------------+---------------------------------------------+--------------------------------------+
| Loss before | (3,561,335) | (3,459,008) |
| income tax | | |
+-----------------------------------------------------------+---------------------------------------------+--------------------------------------+
| Adjustments | | |
| for: | | |
+-----------------------------------------------------------+---------------------------------------------+--------------------------------------+
| - Depreciation | 84,090 | 63,105 |
| | | |
+-----------------------------------------------------------+---------------------------------------------+--------------------------------------+
| - Loss on | 494 | - |
| disposal of | | |
| property, | | |
| plant & | | |
| equipment | | |
+-----------------------------------------------------------+---------------------------------------------+--------------------------------------+
| - Share based | 46,340 | 241,648 |
| payment | | |
+-----------------------------------------------------------+---------------------------------------------+--------------------------------------+
| - Finance | (57,492) | (86,358) |
| income | | |
+-----------------------------------------------------------+---------------------------------------------+--------------------------------------+
| - Finance | 86,500 | - |
| costs | | |
+-----------------------------------------------------------+---------------------------------------------+--------------------------------------+
| - Foreign | 555,575 | 19,074 |
| exchange | | |
| losses on | | |
| operating | | |
| activities | | |
+-----------------------------------------------------------+---------------------------------------------+--------------------------------------+
| - Foreign | 130,230 | (4,932) |
| exchange | | |
| differences | | |
| arising on | | |
| consolidation | | |
+-----------------------------------------------------------+---------------------------------------------+--------------------------------------+
| Changes | | |
| in | | |
| working | | |
| capital | | |
| (excluding | | |
| the | | |
| effects of | | |
| acquisition | | |
| and | | |
| exchange | | |
| differences | | |
| on | | |
| consolidation) | | |
+-----------------------------------------------------------+---------------------------------------------+--------------------------------------+
| - Trade and | 8,389 | (195,103) |
| other | | |
| receivables | | |
+-----------------------------------------------------------+---------------------------------------------+--------------------------------------+
| - Trade and | | 353,883 |
| other payables | (223,600) | |
+-----------------------------------------------------------+---------------------------------------------+--------------------------------------+
| Cash generated | (2,930,809) | (3,067,691) |
| from | | |
| operations | | |
+-----------------------------------------------------------+---------------------------------------------+--------------------------------------+
| | | |
+-----------------------------------------------------------+---------------------------------------------+--------------------------------------+
12.Annual Report
The financial information set out in this preliminary announcement does not
constitute statutory accounts as defined in Section 240 of the Companies Act
1985.
The consolidated balance sheet at 31 December 2008, consolidated income
statement, consolidated cash flow statement, consolidated statement of changes
in equity and associated notes for the year then ended, have been extracted from
the Group's financial statements upon which the auditors opinion is unqualified
and does not include any statement under section 237 of the Companies Act 1985.
The Company's annual report will be posted to shareholders on 5 May 2009 and
will be available on the Company's website at www.bpcltdgroup.com as of this
date.
13.Annual General Meeting
The Annual General Meeting of the Company will be held on 4 June 2009. Full
details will be included with the published Annual Report and Financial
Statements.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR UUUWCCUPBGBR
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