TIDMSRO

RNS Number : 8805W

Spitfire Oil Limited

13 December 2019

54 Jermyn Street, London SW1Y 6LX, United Kingdom

Telephone: + 44 (0)20 7629 7774 Facsimile: + 44 (0)20 7629 7773

13(th) December 2019

PRELIMINARY RESULTS

Financial

Spitfire Oil Limited ("the Company") and its wholly owned subsidiary, Spitfire Oil Pty Ltd ("Spitfire"), together ("the Group"), recorded a loss before tax for the year ended 30th June 2019 of A$936,103 (2018: A$1,350,901), after providing $763,507 (2018: $1,116,767) for diminution in value of the Salmon Gums tenements. The Group benefited from interest receivable of A$26,610 (2018: A$63,405). Operating costs of A$199,206 (2018: A$297,539) were incurred. A$313,507 (2018: A$316,767) was incurred and capitalised on licence fees and tenement management.

On 30(th) August 2019, following a further review of the economic feasibility of the Salmon Gums lignite project, in particular with consideration of the current and long term forecast for the continued relatively low oil prices and the continuing costs of maintaining the retention licence over the Salmon Gums tenements, Spitfire relinquished the retention licence over the Salmon Gums lignite tenements and as a result all costs incurred in respect of the Salmon Gums lignite venture have been written off and charged to profit and loss.

Operations

Following the renewal of the retention licence over the Salmon Gums lignite deposits in September 2018, the Group continued to explore the feasibility of extracting liquid hydrocarbons from the Salmon Gums lignite deposits on a commercial basis. Despite these efforts and in seeking joint venture partners to further develop the venture, on 30(th) August 2019, following a further review of the economic feasibility of the Salmon Gums lignite project, in particular with consideration of the current and long term forecast for the continued relatively low oil prices and the continuing costs of maintaining the retention licence over the Salmon Gums tenements, Spitfire relinquished the retention licence over the Salmon Gums lignite tenements.

With the relinquishment of the retention licence, the Company becomes an AIM Rule 15 cash shell. As such, the Company is required to make an acquisition (or acquisitions) which constitutes a reverse takeover under AIM Rule 14 on or before 29 February 2020. If no such acquisition is completed by 29 February 2020, the Company's shares would then be suspended from trading on AIM pursuant to AIM Rule 40.

The Group has continued to keep its running costs to a minimum while reviewing possible new projects.

Chairman's Statement

During the 2018/19 financial year all efforts were made to commercially advance the Salmon Gums lignite deposits either through new technology, partnership or sale. Against a background of relatively low oil prices and significant anti fossil fuel sentiment, it was concluded it was no longer prudent to maintain the expenditure required to retain the Salmon Gum's retention licence and consequently it was relinquished on the 30(th) August 2019.

With the relinquishment of the retention licence, the Company is now an AIM Rule 15 cash shell. The directors continue to be focused and motivated on acquiring another company, project or venture which has the potential to bring significant value to shareholders. Whilst a number of such ventures have been identified or forwarded to the Company, none have reached a stage where it will be likely to conclude an acquisition by the 29(th) February 2020, the date at which the Company's shares will be suspended from trading on AIM pursuant to AIM Rule 40.

Thereafter, as soon as an acquisition can be made the directors will seek the re admission of the Company's shares onto AIM, however, if an acquisition cannot be successfully completed in a reasonable period of time, then the Company may be liquidated and surplus funds returned to shareholders.

Further information

Spitfire Oil Ltd: Telephone: +44 (0)20 7629 7774

Mladen Ninkov - Chairman

Roger Goodwin - Director

Panmure Gordon (UK) Limited: Telephone: +44 (0)20 7886 2500

Dominic Morley

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No.596/2014.

Spitfire Oil Limited's shares are quoted on the Alternative Investment Market (AIM) of the London Stock Exchange (symbol SRO).

The Company's news releases are available on the Company's web site: www.spitfireoil.com

 
Spitfire Oil Limited 
 Consolidated Statement of Profit or Loss and Other Comprehensive Income 
 
 
YEARED 30 JUNE 2019                           2019        2018 
                                                   A$          A$ 
---------------------------------------------   ---------  ----------- 
OTHER INCOME                                       26,610       63,405 
 
EXPITURE 
Corporate expenses                              (112,438)    (217,641) 
Other expenses                                   (86,768)     (79,898) 
OPERATING LOSS                                  (172,596)    (234,134) 
Impairment - exploration and evaluation 
 costs                                          (763,507)  (1,116,767) 
LOSS BEFORE INCOME TAX                          (936,103)  (1,350,901) 
INCOME TAX                                              -            - 
                                                ---------  ----------- 
LOSS AFTER INCOME TAX                           (936,103)  (1,350,901) 
OTHER COMPREHENSIVE INCOME, NET OF TAX                  -            - 
                                                ---------  ----------- 
LOSS AND TOTAL COMPREHENSIVE INCOME FOR 
 THE YEAR ATTRIBUTABLE TO OWNERS OF SPITFIRE 
 OIL LIMITED                                    (936,103)  (1,350,901) 
                                                =========  =========== 
 
Basic and diluted loss per share for 
 loss attributable to the ordinary equity 
 holders of the Company (cents per share)         (3.6)      (5.22) 
                                                =========  =========== 
 
 
Spitfire Oil Limited 
 Consolidated Statement of Financial Position 
 
 
AS AT 30 JUNE 2019                             2019          2018 
                                                A$            A$ 
CURRENT ASSETS 
Cash and cash equivalents                     2,124,200     2,560,120 
Trade and other receivables                       1,405             - 
Accrued revenues                                      -        23,229 
Other current assets                             21,499        28,954 
TOTAL CURRENT ASSETS                          2,147,104     2,612,303 
                                           ------------  ------------ 
NON--CURRENT ASSETS 
Capitalised exploration and evaluation 
 costs                                                -       450,000 
Office equipment                                      -             - 
Other non-current assets                         45,000        45,000 
TOTAL NON--CURRENT ASSETS                        45,000       495,000 
                                           ------------  ------------ 
TOTAL ASSETS                                  2,192,104     3,107,303 
                                           ------------  ------------ 
CURRENT LIABILITIES 
Trade and other payables                         57,774        36,870 
TOTAL CURRENT LIABILITIES                        57,774        36,870 
                                           ------------  ------------ 
TOTAL LIABILITIES                                57,774        36,870 
                                           ------------  ------------ 
NET ASSETS                                    2,134,330     3,070,433 
                                           ============  ============ 
EQUITY 
Issued capital                               19,289,284    19,289,284 
Reserves                                              -             - 
Accumulated losses                         (17,154,954)  (16,218,851) 
                                           ------------  ------------ 
TOTAL EQUITY ATTRIBUTABLE TO THE EQUITY 
 HOLDERS OF THE PARENT                        2,134,330     3,070,433 
                                           ============  ============ 
 
 
Spitfire Oil Limited 
 Consolidated Statement of Changes in Equity 
 
 
YEARED 30 JUNE 2019                              Accumulated 
                                     Issued Capital     Losses        Total 
                                           A$             A$           A$ 
                                     --------------  ------------  ----------- 
BALANCE AT 30 JUNE 2017                  19,289,284  (14,867,950)    4,421,334 
                                     --------------  ------------  ----------- 
 
Loss for the year                                 -   (1,350,901)  (1,350,901) 
                                     --------------  ------------  ----------- 
 
  TOTAL COMPREHENSIVE LOSS                        -   (1,350,901)  (1,350,901) 
                                     --------------  ------------  ----------- 
 
TRANSACTIONS WITH OWNERS IN THEIR 
 CAPACITY AS OWNERS 
Transaction with owners                           -             -            - 
                                     --------------  ------------  ----------- 
BALANCE AT 30 JUNE 2018                  19,289,284  (16,218,851)    3,070,433 
                                     --------------  ------------  ----------- 
Loss for the year                                 -     (936,103)    (936,103) 
                                     --------------  ------------  ----------- 
TOTAL COMPREHENSIVE LOSS                          -     (936,103)    (936,103) 
                                     --------------  ------------  ----------- 
TRANSACTIONS WITH OWNERS IN THEIR 
 CAPACITY AS OWNERS 
                                     --------------  ------------  ----------- 
Transaction with owners                           -             -            - 
                                     --------------  ------------  ----------- 
BALANCE AT 30 JUNE 2019                  19,289,284  (17,154,954)    2,134,330 
                                     --------------  ------------  ----------- 
 
 
Spitfire Oil Limited 
 Consolidated Statement of Cash Flows 
 
 
YEAR ENDED 30 JUNE 2019                             2019       2018 
                                                     A$         A$ 
CASH FLOWS FROM OPERATING ACTIVITIES 
Payments to suppliers and employees               (167,158)  (342,724) 
Interest received                                    49,839     50,688 
NET CASH FLOWS USED IN OPERATING ACTIVITIES       (117,319)  (292,036) 
                                                  ---------  --------- 
CASH FLOWS FROM INVESTING ACTIVITIES 
Payments for exploration and evaluation 
 expenditure                                      (313,507)  (316,767) 
 
NET CASH OUTFLOWS USED IN INVESTING ACTIVITIES    (313,507)  (316,767) 
                                                  ---------  --------- 
 
NET DECREASE IN CASH AND CASH EQUIVALENTS         (430,826)  (608,803) 
Cash and cash equivalents at the beginning 
 of the financial year                            2,560,120  3,170,851 
Effects of exchange rate changes on cash 
 and cash equivalents                               (5,094)    (1,928) 
CASH AND CASH EQUIVALENTS AT THE END 
 OF THE FINANCIAL YEAR                            2,124,200  2,560,120 
                                                  =========  ========= 
 

Notes to the preliminary results to 30(th) June 2019

1. This statement has been prepared using accounting policies and presentation consistent with those applied in the preparation of the statutory accounts of the Group.

2. The summary accounts set out above do not constitute statutory accounts as defined by Section 84 of the Bermuda Companies Act 1981 or Section 435 of the UK Companies Act 2006. The summarised consolidated statement of financial position at 30 June 2019 and the summarised consolidated statement of profit or loss and other comprehensive income, consolidated statement of changes in equity and the summarised consolidated statement of cash flows for the year then ended have been extracted from the Group's 2019 statutory financial statements upon which the auditors' opinion is unqualified. The statutory financial statements for the year to 30 June 2019 have been prepared in accordance with the requirements of International Accounting Standard IAS1: Presentation of Financial Statements as adopted in Australia. The results for the year ended 30 June 2018 have been extracted from the statutory accounts for that period, upon which the auditors' opinion is qualified as to the inability to obtain sufficient audit evidence concerning the capitalised exploration and evaluation costs in respect of the Salmon Gums Project at 30(th) June 2016 and the consequent impact on the summarised consolidated statement of profit or loss and other comprehensive income, consolidated statement of changes in equity and the summarised consolidated statement of cash flows.

3. The annual report and accounts for 2019 are being sent by post to all registered shareholders. Additional copies of the annual report and accounts are available from the Company's London correspondent office, 8(th) Floor, 54 Jermyn Street, London, SW1A 6LX and on the Company's web site www.spitfireoil.com.

4. The calculation of the basic and diluted losses per share is based on the loss attributable to ordinary shareholders of A$936,103 (2018 A$1,350,901) divided by the weighted average number of shares in issue during the year of 25,884,001 (2018 25,884,001). There is no dilutive effect of share purchase options.

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

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December 13, 2019 10:13 ET (15:13 GMT)

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