Interim Results
September 22 2003 - 6:36PM
UK Regulatory
In the period under review, the Company has continued to derive all
of its revenue from exploitation of Gigante #1A well in the Matambo
Block. On 21 July 2003, the Company announced that it proposed to
raise �6.8 million (before expenses) by way of a transaction
involving a Rights Issue and an Issue for Cash. This transaction was
completed in September 2003.
Results
The results of the Company for the half-year ending 30 June 2003 show
a net loss of �0.1 million compared with a loss of �2.4 million for
the half-year ended 30 June 2002 (please refer to Note 3 to the
unaudited interim accounts). The Group currently pays no UK
corporation tax, having tax losses brought forward from previous
years.
Group attributable production for the first six months of this year
totalled 123,607 barrels of oil (compared with 70,000 barrels of oil
equivalent, reported for the same period of last year) producing
revenue of �1.8 million (compared with �1.0 million in the same
period of last year) (please refer to Note 2 to the unaudited interim
accounts). The average price received was US$24 per barrel (compared
with US$22 per barrel in the same period of last year). Cost of
sales amounted to �0.9 million (�0.9 million before exceptional items
in the same period of last year), resulting in a gross profit of �0.9
million (compared with gross profit of �0.1 million before
exceptional items in the same period of last year).
Board Changes
John Silcock retired from the Board at the AGM held on 15 August
2003. Graeme Elliot, Iain Alexander, Alan Brooks and Alan Lucas
resigned from the Board immediately after the EGM held on the same
day subsequent to the earlier AGM.
Alastair Beardsall, Edward Grace, Merfyn Roberts and Fred Ponsonby
became Directors of the Company on 15 August 2003.
Outlook
After a difficult period the prospects for the Group are clearly
improving. Having successfully raised �6.8 million (before
expenses), the Company now has sufficient funds to pursue the
existing low cost opportunity of Campo Rico. The Company is
preparing to drill the first well in the Campo Rico Association
Contract area and is working with Ecopetrol to identify further new
opportunities inside Colombia.
Alastair Beardsall
Chairman
22 September 2003
UNAUDITED CONSOLIDATED PROFIT AND LOSS ACCOUNT
+-------------------------------------------------------------------------+
| | Half| Half| Year to|
| | year to| year to| 31|
| | 30 June| 30 June|December|
| | 2003| 2002| 2002|
|----------------------------------------------+--------+--------+--------|
| | �'000s| �'000s| �'000s|
|----------------------------------------------+--------+--------+--------|
|Turnover | (2)| 1,820| 1,003 | 1,733|
|------------------------------------+---------+--------+--------+--------|
|Cost of sales | | (941)| (897)| (1,525)|
|- excluding | | | | |
|exceptional item | | | | |
|----------------------------------------------+--------+--------+--------|
|- exceptional item | -| (973)|(21,720)|
|- write off of fixed assets | | | |
|----------------------------------------------+--------+--------+--------|
|Total Cost of Sales | (941)| (1,870)|(23,245)|
|----------------------------------------------+--------+--------+--------|
|Gross profit/(loss) | 879| (867)|(21,512)|
|----------------------------------------------+--------+--------+--------|
|Administrative expenses | (3)| (977)| (1,020)| (1,058)|
|- excluding exceptional | | | | |
|item | | | | |
|----------------------------------------------+--------+--------+--------|
| | | | (354)|
|- exceptional item | | | |
|----------------------------------------------+--------+--------+--------|
|Total administrative expenses | (977)| (1,020)| (1,392)|
|----------------------------------------------+--------+--------+--------|
|Exchange gains/(losses) | 56| (19)| (20)|
|----------------------------------------------+--------+--------+--------|
|Other operating expense | -| (364)| -|
|- exceptional item | | | |
|- write off of insurance claim | | | |
|----------------------------------------------+--------+--------+--------|
|Operating (loss) | (42)| (2,270)|(22,924)|
|----------------------------------------------+--------+--------+--------|
|Exceptional Items | -| 59 | 620|
|- profit on disposal of | | | |
|US assets | | | |
|----------------------------------------------+--------+--------+--------|
|(Loss) on ordinary activities before interest | (42)| (2,211)|(22,304)|
|----------------------------------------------+--------+--------+--------|
|Net interest (payable) | (62)| (170)| (265)|
|----------------------------------------------+--------+--------+--------|
|(Loss) on ordinary activities before taxation | (104)| (2,381)|(22,569)|
|----------------------------------------------+--------+--------+--------|
|Taxation on (loss) for the financial period | | - | (78)|
|----------------------------------------------+--------+--------+--------|
|(Loss) on ordinary activities after taxation | (104)| (2,381)|(22,647)|
|----------------------------------------------+--------+--------+--------|
|Transfer (from) reserves | (104)| (2,381)|(22,647)|
|----------------------------------------------+--------+--------+--------|
|(Loss) per ordinary share (pence) |(0.007)p|(0.166)p|(1.577)p|
|----------------------------------------------+--------+--------+--------|
|(Loss) per ordinary share on a fully diluted |(0.007)p|(0.166)p|(1.577)p|
|basis (pence) | | | |
+-------------------------------------------------------------------------+
UNAUDITED GROUP STATEMENT OF RECOGNISED GAINS AND LOSSES
+-------------------------------------------------------------------+
| | Half year | Half year to | Year to |
| | to | 30 June | 31 December |
| | 30 June | 2002 | 2002 |
| | 2003 | | |
|--------------------------+-----------+--------------+-------------|
| | �'000s | �'000s | �'000s |
|--------------------------+-----------+--------------+-------------|
| (Loss) for the financial | (104) | (2,381) | (22,647) |
| period | | | |
|--------------------------+-----------+--------------+-------------|
| Currency translation | (446) | (653) | (2,080) |
| differences on foreign | | | |
| currency net investments | | | |
|--------------------------+-----------+--------------+-------------|
| Total recognised | (550) | (3,034) | (24,727) |
| (loss)/gain relating to | | | |
| the period | | | |
|--------------------------+-----------+--------------+-------------|
| Total recognised | (550) | (3,034) | (24,727) |
| (losses)/gains | | | |
+-------------------------------------------------------------------+
UNAUDITED CONSOLIDATED BALANCE SHEET
+-------------------------------------------------------------------+
| | | | |
| | 30 June | 30 June | 31 December |
| | 2003 | 2002 | 2002 |
|--------------------------------+----------+---------+-------------|
| | �'000s | �'000s | �'000s |
|--------------------------------+----------+---------+-------------|
| Fixed assets | | | |
|--------------------------------+----------+---------+-------------|
| Tangible assets | 10,673 | 27,118 | 11,500 |
|--------------------------------+----------+---------+-------------|
| Total fixed assets | 10,673 | 27,118 | 11,500 |
|--------------------------------+----------+---------+-------------|
| Current assets | | | |
|--------------------------------+----------+---------+-------------|
| Stock | 17 | 26 | 14 |
|--------------------------------+----------+---------+-------------|
| Debtors - due one year | 582 | 2,894 | - |
|--------------------------------+----------+---------+-------------|
| Debtors - more than one year | - | 3,386 | 132 |
|--------------------------------+----------+---------+-------------|
| Cash | 74 | 884 | 355 |
|--------------------------------+----------+---------+-------------|
| | 673 | 7,190 | 501 |
|--------------------------------+----------+---------+-------------|
| Creditors: amounts falling due | (2,885) | (3,224) | (2,893) |
| within one year | | | |
|--------------------------------+----------+---------+-------------|
| Net current assets | (2,212) | 3,966 | (2,392) |
|--------------------------------+----------+---------+-------------|
| | | | |
|--------------------------------+----------+---------+-------------|
| Total assets | 8,461 | 31,084 | 9,108 |
| less current liabilities | | | |
|--------------------------------+----------+---------+-------------|
| Creditors: amounts | - | (392) | - |
| falling due after one year | | | |
|--------------------------------+----------+---------+-------------|
| Provisions for liabilities | - | - | - |
| and charges | | | |
|--------------------------------+----------+---------+-------------|
| Net assets | 8,461 | 30,692 | 9,108 |
|--------------------------------+----------+---------+-------------|
| | | | |
|--------------------------------+----------+---------+-------------|
| Capital and reserves | | | |
|--------------------------------+----------+---------+-------------|
| Called-up share capital | 14,628 | 14,628 | 14,628 |
|--------------------------------+----------+---------+-------------|
| Share premium account | 20,973 | 21,070 | 21,070 |
|--------------------------------+----------+---------+-------------|
| Profit and loss account | (27,140) | (5,006) | (26,590) |
|--------------------------------+----------+---------+-------------|
| | 8,461 | 30,692 | 9,108 |
+-------------------------------------------------------------------+
UNAUDITED GROUP CASH FLOW STATEMENT
+-------------------------------------------------------------------+
| | Half year | Half year | Year to |
| | to | to | 31 December |
| | 30 June | 30 June | 2002 |
| | 2003 | 2002 | |
|-----------------------------+-----------+-----------+-------------|
| | �'000s | �'000s | �'000s |
|-----------------------------+-----------+-----------+-------------|
| Net cash outflow from | (81) | (2,010) | (1,288) |
| operating activities | | | |
|-----------------------------+-----------+-----------+-------------|
| Returns on investments and | | | |
| servicing of finance | | | |
|-----------------------------+-----------+-----------+-------------|
| Interest received | - | 12 | 14 |
|-----------------------------+-----------+-----------+-------------|
| Interest paid | (63) | (183) | (241) |
|-----------------------------+-----------+-----------+-------------|
| | (63) | (171) | (227) |
|-----------------------------+-----------+-----------+-------------|
| Taxation | | | |
|-----------------------------+-----------+-----------+-------------|
| Overseas tax paid | (7) | - | (78) |
|-----------------------------+-----------+-----------+-------------|
| Capital expenditure and | | | |
| financial investments | | | |
|-----------------------------+-----------+-----------+-------------|
| Expenditure on tangible | (301) | (712) | (938) |
| fixed assets | | | |
|-----------------------------+-----------+-----------+-------------|
| Expenditure on intangible | - | - | (206) |
| fixed assets | | | |
|-----------------------------+-----------+-----------+-------------|
| Ecopetrol cost recovery | 179 | 524 | 418 |
|-----------------------------+-----------+-----------+-------------|
| Sale proceeds from US | - | 624 | 868 |
| Assets disposal | | | |
|-----------------------------+-----------+-----------+-------------|
| Sale proceeds from Emerald | - | - | 218 |
| Energy Colombia Limited BVI | | | |
|-----------------------------+-----------+-----------+-------------|
| Sale of Equipment | 243 | - | - |
|-----------------------------+-----------+-----------+-------------|
| | 121 | 436 | 360 |
|-----------------------------+-----------+-----------+-------------|
| Net cash outflows before | 114 | 436 | 282 |
| financing | | | |
|-----------------------------+-----------+-----------+-------------|
| | | | |
|-----------------------------+-----------+-----------+-------------|
| Financing | | | |
|-----------------------------+-----------+-----------+-------------|
| Finance lease payments | | - | (52) |
|-----------------------------+-----------+-----------+-------------|
| Bank Loans | (251) | 293 | (696) |
|-----------------------------+-----------+-----------+-------------|
| Proceeds from the sale of | - | 1,527 | 1,527 |
| Resources Investment Trust | | | |
| Shares | | | |
|-----------------------------+-----------+-----------+-------------|
| | (251) | 1,820 | 779 |
|-----------------------------+-----------+-----------+-------------|
| Increase/(decrease) in cash | (281) | 75 | (454) |
+-------------------------------------------------------------------+
Notes to the Financial Information
1. Accounting Policies and Presentation of Financial Information
The financial information presented above does not constitute
statutory accounts within the meaning of section 240 of the Companies
Act 1985. The financial information for the year ended 31st December
2002 has been derived from the statutory accounts for that year. The
statutory accounts, upon which the auditors issued an unqualified
opinion, were delivered to the Isle of Man Registrar of Companies.
There are no changes to the accounting policies as set out on pages
25 to 27 of the Annual Report and Statement of Accounts for the year
ended 31st December 2002.
2. Turnover
Following the award of the sole risk status to the area surrounding
Gigante #1A, Group attributable production for the six months to 30
June 2003 is comprised of 50% of total production by Gigante #1A well
in January 2003 and 100% of total production by Gigante #1A well in
the period from 1 February 2003 to 30 June 2003. In the six months
to 30 June 2002, Group attributable production was comprised of 50%
of total production by Gigante #1A well and 100% of total production
of the Company's North American operations.
3. Administrative expenses
Administrative expenses for the reporting period include full
administrative costs relating to the Colombian operation. It is the
Board's view that such treatment of the administrative expenses in
the six months to 30 June 2003 is justified by the nature of the
Company's activities in Colombia in the reported period. If similar
approach were employed in calculating the administrative expenses in
the six months to 30 June 2002, net loss for that period would have
been �3.0 million.
4. Earnings per Ordinary Share
The calculation of earnings per ordinary share for the six months
ended 30th June 2003 is based on the weighted average number of
ordinary shares in issue during the period of 1,462,844,997 shares
(first half 2002 - 1,436,491,298 shares).
5. Dividends
No dividend was declared in the half year to 30th June 2003 nor in
2002.
6. Auditors' Review
These unaudited interim accounts have not been reviewed by the
Group's auditors, Ernst & Young.
7. Approval of Accounts
These unaudited interim accounts were approved by the Board of
Directors on 19 September 2003.
The text of the last Annual Report and up to date information
regarding the Company's activities is available from the Emerald
Energy website: www.emeraldenergy.com
Subsequent events
Issue for Cash and Rights Issue
On 21 July 2003, the Company announced that it proposed to raise �6.8
million (before expenses) by way of a transaction involving a Rights
Issue and an Issue for Cash. The transaction was completed on 8
September 2003. In the process of the transaction, the Company
issued 1,462,844,997 new ordinary shares at 0.25p per share in the
Rights Issue and 1,253,000,000 new ordinary shares at 0.25p per share
in the Issue for Cash to Waterford Finance & Investment Limited
("Waterford"). In addition to subscribing to the Issue for Cash,
Waterford underwrote the Rights Issue. Subsequently, as no
acceptances were received for 633,508,862 new ordinary shares issued
in the Rights Issue, Waterford subscribed for this balance of new
shares issued in the Rights Issue.
- ---END OF MESSAGE---
Copyright � Hugin ASA 2003. All rights reserved.