TIDM3LEG
RNS Number : 2659N
3Legs Resources plc
27 September 2012
27 September 2012
3Legs Resources plc
Interim Results
for the six months ended 30 June 2012
3Legs Resources plc (the "Company" and, together with its
subsidiaries, the "Group"), an independent oil and gas group
focusing on the exploration and development of unconventional oil
and gas, is pleased to announce its Interim Results for the six
months ended 30 June 2012.
Corporate and operational highlights
Baltic Basin concessions
-- Notice of call option exercise was given by ConocoPhillips in
March 2012 over the Group's three western Baltic Basin concessions,
formalising their 70% equity interest in and operatorship of these
concessions; the option exercise was completed on 14 September
2012.
-- Further testing of the Warblino LE-1H horizontal well was
conducted following the period end and suspended on 6 September
2012; after 20 days of lifting hydraulic fracturing fluid, the well
produced natural gas at an improved rate of 90 mscf/d, some five
times the rate achieved when the well was first tested in November
2011.
-- This improved flow rate from the Warblino LE-1H horizontal
well suggests the target formations may respond positively to an
extended shut in and/or dewatering. The Group is carefully
reviewing this new data and the likely effectiveness of the
original hydraulic fracturing operation.
-- The testing equipment is now being mobilised to the Lebien
location, where further testing is due to commence shortly on the
Lebien LE-2H horizontal well; this well was first tested in
September 2011, recording a flow rate of 450-520 mscf/d at the end
of a 17 day period before the well was suspended.
-- As is common with early stage shale plays, the Group
continues to high-grade its acreage and has identified the areas
within its Western concessions which it considers to be most
prospective for further exploration, by reason of the thickness of
the target formations and reservoir rock properties; the Group
considers that its drilling and seismic operations have increased
the probability of success in its most prospective acreage, as
compared to assessments made at the time of its initial public
offering in June 2011.
-- Operations are now focused on these more prospective areas.
Equipment mobilisation has begun for the drilling of the Group's
fifth well, Strzeszewo LE-1; drilling is expected to commence by
early October 2012 and coring, logging and casing operations to be
concluded around the end of November, with a DFIT and/ or hydraulic
frac testing strategy to follow.
-- Discussion of the 2013 drilling programme with ConocoPhillips
is under way and is focused on the drilling, coring and testing of
two or more vertical wells in the Group's high-graded acreage, with
the option then to drill and test horizontal sections.
-- Plans for the Group's three eastern Baltic Basin concessions,
which the Group's interpretation indicates are situated in a more
liquids-prone part of the basin, are still being considered. The
Group currently retains a 100% interest in these concessions and
will be considering its alternatives in the case where
ConocoPhillips does not exercise its option to take a 70% interest
in them prior to the option lapsing on 30 September.
Southern Poland concessions
-- Following interpretation of newly-acquired seismic data and
of additional legacy seismic and well data in the area of the three
concessions, the decision was taken to relinquish the Dabie-Laski
concession following the period end; the Group continues to explore
options for its two remaining southern Poland concessions.
Personnel changes
-- The Group continues to strengthen its technical team with the
addition of a reservoir and completions engineer during the period
under review; she is US-based and has extensive experience of
working on North American shales. The Group expects to announce
imminently the recruitment of a new Exploration Manager, also
US-based and with extensive experience of shales and tight rocks in
North America.
-- Mike Lewis continues to be retained with the Group as a
geologist on a part-time consulting basis.
Financial highlights
-- The Group continues to enjoy a strong funding position, with
cash of GBP45.4 million at period end.
-- Repayment of the outstanding balance of US$1.8 million of
convertible loan notes was made at maturity in June 2012.
Outlook
-- The further testing of the Lebien LE-2H well is expected to
provide valuable additional data on reservoir properties during Q4
2012 and Q1 2013.
-- First data from the drilling and logging of the Strzeszewo
LE-1 vertical well are expected by early 2013.
-- The 2013 drilling programme is due to be finalised over the coming months.
-- The Group continues to assess potential new ventures and is
currently evaluating a number of opportunities.
Commenting on the Interim Results, Tim Eggar, Chairman of 3Legs
Resources plc, said:
"The period under review saw the Group make continued progress
across its acreage. We were delighted that ConocoPhillips decided
to exercise its option over the western Baltic Basin concessions,
which we regard as a considerable vote of confidence in the future
potential of these concessions.
3Legs Resources remains fully committed to its strategy in the
Baltic Basin and is more than sufficiently funded to execute the
work programme in this region whilst also continuing to assess
possible new ventures for inclusion in the Group's portfolio. We
have an excellent, experienced and growing technical team,
operational capability and a strong funding position to meet our
objectives."
Peter Clutterbuck, Chief Executive Officer, added:
"The last six months have seen us significantly advance our
understanding of the Baltic Basin, not only in conjunction with
ConocoPhillips but also through data trades with other industry
partners, confirming the thinking behind our original acreage
selection in the basin.
We have continued to work on high-grading our Baltic Basin
acreage. We believe we have identified, and are focusing our
efforts on, the areas that offer the most prospectivity in our
acreage.
We believe that the Baltic Basin represents an excellent
opportunity both for ourselves and for Poland. We are currently in
discussions with ConocoPhillips with a view to finalising a work
programme for 2013, which we hope will result in further
significant progress in de-risking this play."
For further information contact:
+44 1624 811
3Legs Resources plc Tel: 611
Peter Clutterbuck, Chief Executive
Officer
Alexander Fraser, Chief Financial Officer
+44 207 029
Jefferies International Limited Tel: 8000
Simon Hardy
Jamie Buckland
+44 207 457
College Hill Tel: 2020
Catherine Wickman
Nick Elwes
Chief Executive Officer's review
Operational review
Baltic Basin concessions
The most significant event for the Group during the first half
of 2012 was receipt of a notice of exercise of option from
ConocoPhillips, on 19 March 2012, to acquire a 70% interest in the
Group's three western Baltic Basin concessions, pursuant to the
Joint Evaluation Agreement and ancillary documents entered into
between the Group and ConocoPhillips in August 2009. We were
extremely pleased with this outcome, which represents both a highly
satisfactory culmination of almost three years of cooperation in
the exploration and appraisal of the Baltic Basin shales, under the
operatorship of 3Legs Resources, and a transition to a new and
exciting phase in the development of the basin.
Completion of the option exercise occurred on 14 September 2012,
at which time operator control of the three western concessions
moved to ConocoPhillips. ConocoPhillips had already been actively
involved in operations and consequently the transfer of
operatorship was completed smoothly. 3Legs Resources retains a net
30% non-operating interest in the three western concessions, where
it will be responsible for 30% of future expenses. The concessions
cover an area of approximately 2,049 sq km (506,000 acres) gross,
or approximately 615 sq km (152,000 acres) net to the Group.
During the six months ended 30 June 2012 and following the
period end, we have continued to focus intensively on the further
evaluation of the three western Baltic Basin concessions. By
performing detailed technical analysis of our own data and of data
acquired from other operators in the basin through data trades,
working together with ConocoPhillips, we have been able to refine
further our geological model for the Baltic Basin, enabling us to
high-grade our very large acreage position and to identify those
areas of our concessions which offer the highest probability of
success, by reason of the thickness of the target formations and
reservoir rock properties.
We have been pleased to note that our acreage evaluation has
validated our original first mover acreage selection in 2007, which
resulted in 3Legs Resources securing what we still believe to be
the most prospective acreage in the Baltic Basin. It is our
intention to focus our exploration activity on the high-graded
areas, so as to offer the best potential return on investment for
our Group and our shareholders. Moreover, by de-risking our acreage
through the data we have acquired we are, in our view, able to
attribute a higher probability of success to the high graded areas
than was possible at the time of our initial public offering in
June 2011.
Details of our well testing activities and drilling preparations
since 31 December 2011 are set out in the section headed
"Activities following the half-year end" below.
Phase I of the PolandSPAN geological and geophysical research
project is progressing well, involving the acquisition of 1,090 km
of new 2D seismic data extending across the Baltic Basin region.
This acquisition of new 2D data is expected to be completed by the
end of 2012, with processing taking place in the second quarter of
2013. This will further help the Group's understanding of the basin
geology.
A third party study has been commissioned by the Group and
ConocoPhillips to look at the range of options available for longer
term off-take.
Discussion of the 2013 drilling programme with ConocoPhillips is
under way and is focused on the drilling of two or more vertical
wells on the three western Baltic Basin concessions, with a view to
delineating target formations and further testing reservoir rock
properties. Constraints analysis and scouting for potential site
locations has been carried out already and a selection of potential
well pad locations is under review.
It is expected that each well will be drilled to the middle
Cambrian horizon and will include an extensive programme of coring
and logging to be followed, after detailed technical analysis, by
one or more DFIT tests and/or hydraulic fracturing stimulations in
the vertical wellbores. It is also expected that each of the wells
will be designed with the option to drill and test a horizontal
section at a later date, following conclusion of the earlier
analysis.
The Group and ConocoPhillips continue to consider options for
the three eastern Baltic Basin concessions. Results from the
Group's wells and those of other operators in the basin have
supported our interpretation that our eastern concessions are
situated in a more liquids-prone part of the basin, whereas we have
prioritised the exploration of the more dry gas-prone parts of our
concessions, situated further to the west. If ConocoPhillips does
not exercise its option to acquire a 70% equity interest in the
eastern concessions prior to the option lapsing on 30 September,
the Group will consider the best course of action to take with
these concessions before any further operations are
commissioned.
Southern Poland concessions
We completed the acquisition and processing of seismic data
across our three southern Poland concessions, comprising
approximately 50 sq km of 3D data on the Bytom-Gliwice and
Glinica-Psary concessions and approximately 70 km of 2D data on the
Dabie-Laski concession. The interpretation of the newly-acquired
data showed the eastern part of the concession area to be more
structurally complex than previously understood. As a result, we
concluded that there was insufficient justification for drilling a
vertical test well on the Dabie-Laski concession and notified the
Ministry of Environment of our wish to relinquish the concession in
August 2012. We will continue to consider our options for our
remaining Bytom-Gliwice and Glinica-Psary concessions. The Group
has the option to drill one vertical well on each of these two
concessions by August 2013, or to relinquish the concessions.
Germany and France
Our southern German concessions fell due for renewal in the
second quarter of the year and we have submitted applications for
extensions. These applications are still in process.
Following the temporary suspension of the oil and gas licensing
process in France, the outcome of our two licence applications in
France remains unclear. We continue to monitor the situation.
Activities following the half-year end
Baltic Basin concessions
Further testing of the Warblino LE-1H horizontal well commenced
on 17 August 2012 and was suspended on 6 September 2012. The
testing involved placing artificial lift ("Jet Pump") equipment in
the wellbore to pump out more of the remaining hydraulic fracturing
fluid, and enabled us to gather valuable additional data on gas
properties and reservoir performance, particularly in the Cambrian.
The use of a jet pump for this operation is another example of how
3Legs Resources has introduced innovative best-practice techniques
to the Polish market.
After 20 days of lifting hydraulic fracturing fluid, the
Warblino LE-1H well produced natural gas at a rate of 90 mscf/d.
This improvement is five times the rate achieved when the well was
first tested in November 2011, when it flowed at a rate of 18
mscf/d after five days of testing. The test has thus fulfilled two
key objectives, being the gathering of the new flow data and gas
samples. The well has now been suspended and pressure gauges
inserted to monitor pressure build-up, while we continue to
evaluate the results and consider next steps.
The improved flow rate from the Warblino LE-1H horizontal well
suggests the target formations may respond positively to an
extended shut in and/or dewatering. While the results of the well
test are still undergoing further analysis, the additional data
will help to further assess the likely effectiveness of the
original hydraulic fracturing operation, and how these might be
addressed in future operations.
The testing equipment has been moved to the Lebien LE-2H
horizontal well, where further testing is due to commence shortly.
This well was first tested in September 2011 for 17 days and
achieved a flow rate of 450-520 mscf/d over an 8-day period, before
the well was suspended.
The Group is also continuing with preparations for the drilling
of its fifth well, Strzeszewo LE-1, which is expected to spud in
early October 2012. MND Drilling & Services, which had already
provided drilling services for the Lebien LE-2H and Warblino LE-1H
horizontal wells, has been engaged as drilling contractor. The
Strzeszewo LE-1 well pad is located to the north of the Lebien
LE-2H well, within the area of our 3D seismic coverage on the
Lebork concession. The location has been selected so as to target
an area expected to offer thicker net pay in both the Ordovician
and Cambrian sections, in addition to extensive natural
fracturing.
The Strzeszewo LE-1 well will be drilled initially as a
near-vertical well and is expected to be extensively cored and
logged for the purposes of analysis. The drilling, coring, logging
and casing operations are expected to be concluded around the end
of November. One or more diagnostic fracture injection tests
(DFITs) and/or hydraulic fracture stimulations may then be
performed on the well, following analysis of the well results.
Financial review
The Group recorded a loss of GBP2.0 million for the six months
ended 30 June 2012, as compared to a loss of GBP0.1 million for the
same period in 2011. Other income was GBP0.1 million in the six
months to 30 June 2012 compared to GBP2.6 million in the six months
to 30 June 2011, since no further financing or retention payments
fell due from ConocoPhillips pursuant to the farm-in agreement
agreed between ConocoPhillips and the Group in 2009.
Administrative expenses declined to GBP2.3 million for the six
months ended 30 June 2012 from GBP2.7 million in the same period in
2011. Administrative expenses for the six months ended 30 June 2011
had been increased by the cost of the Company's initial public
offering on AIM in June 2011, as a result of which GBP1.1 million
of related costs were charged to the income statement during the
period. Administrative expenses for the six months ended 30 June
2012 also included foreign exchange losses of GBP0.7 million,
unchanged from the same period in 2011, reflecting the impact of
foreign exchange movements on certain of the Group's foreign
currency cash balances and intra-group balances. Other
administrative expenses rose to GBP1.6 million for the six months
ended 30 June 2012 from GBP0.9 million for the same period in 2011,
reflecting increased personnel and consultancy costs associated
with additions to the management and technical team during the
period.
Intangible exploration and evaluation assets over the six months
ended 30 June 2012 increased by GBP0.6 million, compared to an
increase of GBP3.2 million over the same period in 2011. Actual
investments in intangible exploration and evaluation assets for the
six months ended 30 June 2012, representing principally the Group's
share of seismic acquisition and processing costs on its Baltic
Basin and southern Poland concessions, together with advance costs
related to the further testing of the Warblino LE-1H well, amounted
to GBP1.3 million, which was partially offset by a translation
adjustment of GBP0.7 million.
Shareholder borrowings declined to GBPnil at 30 June 2012 from
GBP1.1 million at 30 June 2011, reflecting the repayment of the
outstanding balance of US$1.8 million of convertible loan notes on
29 June 2012. Cash and cash equivalents at 30 June 2012 amounted to
GBP45.4 million, as compared to GBP61.0 million at 30 June 2011.
Cash and cash equivalents declined by GBP5.5 million over the six
months ended 30 June 2012, reflecting losses of GBP2.0 million,
investments in intangible exploration and evaluation assets of
GBP1.3 million, repayment of shareholder loans of GBP1.1 million
and movements in working capital over the period. The Group's
treasury policy provides for cash reserves to be held on deposit
with a small number of financial institutions rated at least A- or
higher, in a combination of US dollars, sterling and euro.
Personnel changes
The Group continues to hire additional technical personnel and
has recently recruited as Engineering Manager Christie Schultz, an
unconventional reservoir and completions specialist, who is based
in Houston. Christie was most recently employed by Anadarko as a
lead reservoir engineer and a production engineer, where she worked
on shale fields including the Marcellus and Haynesville. The Group
expects to announce imminently the recruitment of a new Exploration
Manager, also US-based and with extensive experience of shales and
tight rocks in North America.
The Group agreed with Mike Lewis, its consultant geologist, that
with effect from 17 June 2012 he would continue to provide services
on a part time basis. This reflected both the fact that
ConocoPhillips would soon be assuming operatorship of the Group's
three western Baltic Basin concessions, and Mr. Lewis' desire to
spend time pursuing other interests. He continues to provide
technical support to the Group as required.
Outlook
In the near term we look forward to further results from our
testing of the Warblino LE-1H and the Lebien LE-2H wells during the
fourth quarter of 2012 and the first quarter of 2013, following on
from the successful initial result achieved with the further test
of the Warblino LE-1 well. First data from the drilling, coring and
logging of the Strzeszewo LE-1 well are expected by the beginning
of 2013, when a final decision is also expected on the 2013
exploration programme, to be agreed with ConocoPhillips.
Conclusion
We are very pleased to be proceeding with ConocoPhillips in the
further evaluation of our three western concessions in the Baltic
Basin. We are particularly pleased also that our exploration work
in the Baltic Basin has helped increase the probability of success
in what we believe is the most prospective acreage in the basin, as
we continue to build our understanding of this very large gas
resource.
Our primary focus continues to be on further testing the
technology required to enable the shales to produce at commercial
rates. As we indicated last year, we always considered that it may
take a number of additional wells, over and above our first two
horizontal wells, to form a clear understanding of the
prospectivity of the Baltic Basin. It is worth noting also that any
available initial results from ongoing peer activity in the basin
should help enhance our understanding of the basin potential.
In our planning discussions with ConocoPhillips we have begun
consideration of a drilling programme for 2013, comprising two or
more wells. We continue to believe that we hold some of the most
attractive acreage in the entire trend comprising the Baltic Basin,
the Podlasie Depression and the Lublin Basin, and that the
prospectivity of the Baltic Basin is quite distinct from that of
the Podlasie Depression and the Lublin Basin, which have a very
different structural setting. Poland also remains an excellent
country in which to be operating, with healthy gas prices, growing
gas markets, world-class service industry support, well-developed
infrastructure and a government which is highly supportive of
unconventional oil and gas development.
We remain committed to achieving our primary objective, while at
the same time continuing to assess possible new opportunities for
inclusion in our portfolio. The Group's excellent technical
capabilities and continued strong funding position ensure that we
are well placed to meet these goals. We have a full set of skills
for unconventional oil and gas exploration, and our capabilities
have been well demonstrated in our successful operatorship of our
Baltic Basin assets, where we have drilled what we believe to be
the first two horizontal shale gas wells in Europe. Both of these
wells were treated with multistage hydraulic fracturing
stimulations and subsequently flow-tested.
The Group is sufficiently well funded from its existing cash
resources to pursue new ventures in unconventional oil and gas,
with a focus on shale and tight rock, and a preference for Europe.
These new ventures will not impact on our planned investments in
the Baltic Basin. Our strong cash position, coupled with our
demonstrated technical skills, underpin our credentials with host
governments and partners, allowing us to be very discerning when
assessing new opportunities. We believe such opportunities are
becoming more attractive in the terms offered, as the current
global financial environment limits the availability of new
capital.
We look forward to an exciting year ahead as we further progress
the exploration and appraisal of our assets.
Peter Clutterbuck
Chief Executive Officer
26 September 2012
Consolidated Income Statement
For the six months ended 30 June 2012
Unaudited Unaudited Audited
six months six months year ended
ended ended 31 December
30 June 30 June 2011
2012 2011
Note GBP'000 GBP'000 GBP'000
Continuing operations
Revenue - - -
------------ ------------ -------------
Other income 135 2,586 2,747
Administrative expenses (2,263) (2,695) (5,285)
------------ ------------ -------------
Operating loss (2,128) (109) (2,538)
Investment income 160 12 210
------------ ------------ -------------
Loss before tax (1,968) (97) (2,328)
Tax - - -
------------ ------------ -------------
Loss for the period attributable
to equity holders of the parent (1,968) (97) (2,328)
============ ============ =============
Loss per Ordinary Share - GBP
Basic and diluted 4 (0.02) (0.002) (0.03)
============ ============ =============
Consolidated Statement of Comprehensive Income
For the six months ended 30 June 2012
Unaudited Unaudited Audited
six months six months year ended
ended ended 31 December
30 June 30 June 2011
2012 2011
GBP'000 GBP'000 GBP'000
Loss for the period (1,968) (97) (2,328)
Other comprehensive income
Exchange differences arising
on translation of foreign operations (72) 1,480 (657)
------------ ------------ -------------
Total comprehensive income for
the period attributable to equity
owners of the parent (2,040) 1,383 (2,985)
============ ============ =============
Consolidated Balance Sheet
As at 30 June 2012
Unaudited Unaudited Audited
30 June 30 June 31 December
2012 2011 2011
Note GBP'000 GBP'000 GBP'000
Assets
Non-current assets
Intangible exploration and evaluation
assets 15,365 8,071 14,850
---------- ----------- -------------
Current assets
Trade and other receivables 487 5,261 3,400
Cash and cash equivalents 45,387 61,026 50,930
---------- ----------- -------------
45,874 66,287 54,330
---------- ----------- -------------
Total assets 61,239 74,358 69,180
========== =========== =============
Liabilities
Current liabilities
Trade and other payables (646) (6,937) (5,499)
Shareholder borrowings - (1,124) (1,165)
Financial instruments (320) (312) (324)
---------- ----------- -------------
(966) (8,373) (6,988)
---------- ----------- -------------
Non-current liabilities
Provisions (500) (81) (528)
---------- ----------- -------------
Total liabilities (1,466) (8,454) (7,516)
========== =========== =============
Net assets 59,773 65,904 61,664
========== =========== =============
Equity
Share capital 5 21 21 21
Share premium account 68,330 68,330 68,330
Share-based payment reserves 801 524 652
Accumulated deficit (8,109) (3,910) (6,141)
Cumulative translation reserves (1,270) 939 (1,198)
---------- ----------- -------------
Total equity 59,773 65,904 61,664
========== =========== =============
Consolidated Cash Flow Statement
For the six months ended 30 June 2012
Unaudited Unaudited Audited
six months six months year ended
ended ended 31 December
30 June 30 June 2011
2012 2011
Note GBP'000 GBP'000 GBP'000
Net cash (outflow)/inflow from
operating activities 6 (3,227) 1,235 (1,185)
------------ ------------ -------------
Investing activities
Interest received 160 13 210
Purchase of intangible exploration
and evaluation assets (665) (1,091) (8,477)
------------ ------------ -------------
Net cash used in investing activities (505) (1,078) (8,267)
------------ ------------ -------------
Financing activities
Repayment of shareholder borrowings (1,136) - -
Issue of share capital - 59,296 59,296
------------ ------------ -------------
Net cash (used in)/from financing
activities (1,136) 59,296 59,296
------------ ------------ -------------
Net (decrease)/increase in cash
and cash equivalents (4,868) 59,453 49,844
Effect of foreign exchange rate
changes (675) (24) (511)
Cash and cash equivalents at
beginning of period 50,930 1,597 1,597
------------ ------------ -------------
Cash and cash equivalents at
end of period 45,387 61,026 50,930
============ ============ =============
Consolidated Statement of Changes in Equity
As at 30 June 2012
Share Share-based Cumulative
Share premium payment Accumulated translation
capital account reserves deficit reserves Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
As at 1 January
2011 12 8,662 461 (3,829) (541) 4,765
Transactions with
owners in their
capacity as owners:
Issue of equity
shares 9 62,934 - - - 62,943
Expenses of issue
of equity shares - (3,266) - - - (3,266)
--------- -------- ----------- ------------- ------------ ---------
Total transactions
with owners in their
capacity as owners 9 59,668 - - - 59,677
--------- -------- ----------- ------------- ------------ ---------
Total comprehensive
income for the period - - - (97) 1,480 1,383
--------- -------- ----------- ------------- ------------ ---------
Share-based payments - - 79 - - 79
Transfer to retained
earnings in respect
of exercised share
options - - (16) 16 - -
--------- -------- ----------- ------------- ------------ ---------
As at 30 June 2011 21 68,330 524 (3,910) 939 65,904
========= ======== =========== ============= ============ =========
Share Share-based Cumulative
Share premium payment Accumulated translation
capital account reserves deficit reserves Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
As at 1 January
2011 12 8,662 461 (3,829) (541) 4,765
Transactions with
owners in their
capacity as owners:
Issue of equity
shares 9 62,934 - - - 62,943
Expenses of issue
of equity shares - (3,266) - - - (3,266)
--------- -------- ----------- ------------- ------------ ---------
Total transactions
with owners in their
capacity as owners 9 59,668 - - - 59,677
--------- -------- ----------- ------------- ------------ ---------
Total comprehensive
income for the year - - - (2,328) (657) (2,985)
--------- -------- ----------- ------------- ------------ ---------
Share-based payments - - 207 - - 207
Transfer to retained
earnings in respect
of exercised share
options - - (16) 16 - -
--------- -------- ----------- ------------- ------------ ---------
As at 31 December
2011 21 68,330 652 (6,141) (1,198) 61,664
========= ======== =========== ============= ============ =========
Share Share-based Cumulative
Share premium payment Accumulated translation
capital account reserves deficit reserves Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
As at 1 January
2012 21 68,330 652 (6,141) (1,198) 61,664
Total transactions
with owners in their
capacity as owners - - - - - -
--------- -------- ----------- ------------- ------------ ---------
Total comprehensive
income for the period - - - (1,968) (72) (2,040)
--------- -------- ----------- ------------- ------------ ---------
Share-based payments - - 149 - - 149
As at 30 June 2012 21 68,330 801 (8,109) (1,270) 59,773
========= ======== =========== ============= ============ =========
Notes to the Interim Financial Statements
For the six months ended 30 June 2012
1 General information
3Legs Resources plc (the 'Company') is incorporated in the Isle
of Man, British Isles under the Isle of Man Companies Act 2006. The
address of the registered office is Commerce House, 1 Bowring Road,
Ramsey, Isle of Man, British Isles, IM8 2LQ. The Company together
with its subsidiaries is referred to in these notes as the
'Group'.
The nature of the Group's operations and its principal
activities are the exploration, evaluation and development of oil
and gas targets, primarily from unconventional resource plays.
2 Basis of preparation
The consolidated interim financial information has been prepared
using policies based on International Financial Reporting Standards
('IFRSs') as issued by the International Accounting Standards Board
('IASB') and as adopted by the European Union ('EU'). These
policies and practices are consistent with those adopted in the
Group's financial statements for the year ended 31 December 2011
and are also consistent with those which will be adopted in the
Group's financial statements for the year ended 31 December
2012.
The consolidated interim financial information is unaudited and
does not constitute statutory accounts as defined by section 434 of
the Companies Act 2006, and should be read in conjunction with the
Group's financial statements for the year ended 31 December 2011.
In the opinion of the Directors the consolidated interim financial
information for the period represents fairly the financial
position, results from operation and cash flows for the period in
conformity with generally accepted accounting principles
consistently applied. The consolidated interim financial
information incorporates unaudited comparative information for the
period 1 January 2011 to 30 June 2011 and the audited financial
year to 31 December 2011.
The consolidated interim financial information has been prepared
in accordance with IAS34 Interim Financial Reporting.
During the first six months of the current financial year there
have been no related party transactions that materially affect the
financial position or performance of the Group and there have been
no changes in the related party transactions described in the last
annual financial statements.
The principal risks and uncertainties of the Group have not
changed since the last annual financial statements where a detailed
explanation of such risks and uncertainties can be found.
3 Dividends
The Directors do not recommend the payment of a dividend for the
period.
4 Loss per Ordinary Share
Basic loss per Ordinary Share is calculated by dividing the net
loss for the period/year attributable to Ordinary equity holders of
the parent by the weighted average number of Ordinary Shares
outstanding during the period/year. The weighted average number of
Ordinary Shares outstanding during the period and for the prior
periods presented has been adjusted in accordance with IAS 33
Earnings per share.
The calculation of the basic and diluted loss per share is based
on the following data:
Unaudited Unaudited
six months six months Audited
ended ended year ended
30 June 30 June 31 December
2012 2011 2011
GBP'000 GBP'000 GBP'000
Losses
Loss for the purposes of basic and
diluted loss per share being net
loss attributable to equity holders
of the parent (1,968) (97) (2,328)
=========== =========== =============
Number of shares
Weighted average number of Ordinary
Shares for the purposes of basic
and diluted loss per share 84,782,544 55,399,522 69,657,716
GBP GBP GBP
Loss per Ordinary Share
Basic and diluted (0.02) (0.002) (0.03)
========== ========== ==========
As a result of the losses incurred in the current and previous
periods reported there is no dilutive effect from the subsisting
share options or convertible loan notes.
5 Share capital
Authorised and issued equity share capital
Unaudited 30 June Unaudited 30 June Audited 31 December
2012 2011 2011
Number GBP'000 Number GBP'000 Number GBP'000
'000 '000 '000
Authorised
Ordinary Shares of
GBP0.00025 each 440,000 110 440,000 110 440,000 110
========= ======== ========= ======== ========== =========
Issued and fully
paid
Ordinary Shares of
GBP0.00025 each 84,783 21 84,783 21 84,783 21
========= ======== ========= ======== ========== =========
The Company has one class of Ordinary Shares which carry no
right to fixed income.
Issued equity share capital
Ordinary
Shares
of GBP0.00025
Number
At 1 January 2011 50,559,964
Exercise of convertible loan notes 412,000
Restricted share award plan 620,000
Exercise of share options 295,844
Initial public offering 32,894,736
--------------
At 30 June 2011, 31 December 2011 and 30 June 2012 84,782,544
6 Note to the consolidated cash flow statement
Unaudited Unaudited Audited
six months six months year ended
ended ended 31 December
30 June 30 June 2011
2012 2011
GBP'000 GBP'000 GBP'000
Loss before tax (1,968) (97) (2,328)
Adjustments for:
Investment income (160) (12) (210)
Share-based payments 149 80 207
Effect of foreign exchange rate
changes 789 728 380
----------- ----------- ------------
Operating cash flows before movements
in working capital (1,190) 699 (1,951)
(Increase)/Ddcreasein receivables 2,913 (1,493) 368
Increase /(decrease) in payables (4,950) 2,040 397
(Decrease)/increase in financial
instruments - (11) 1
----------- ----------- ------------
Net cash (outflow)/inflow from operating
activities (3,227) 1,235 (1,185)
=========== =========== ============
7 Events after the balance sheet date
Following the acquisition and interpretation of seismic data
over its Dabie-Laski concession and of additional legacy seismic
and well data in the area of its southern Poland concessions, the
Group decided to relinquish the Dabie-Laski concession on 6 August
2012, since it considered there was insufficient data to justify
drilling a vertical test well on the concession as was contemplated
under the terms of the licence.
Following exercise of its option on 19 March 2012,
ConocoPhillips acquired a 70% interest in the Company's subsidiary
Lane Energy Poland Sp. z o.o., pursuant to the Joint Evaluation
Agreement and ancillary documents entered into between the Company
and ConocoPhillips in August 2009. Completion of the option
exercise occurred on 14 September 2012, as a result of which
operatorship of the three western Baltic Basin concessions held by
Lane Energy Poland Sp. z o.o. passed to ConocoPhillips.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR LLFSRAVIRFIF
3Legs Resources (LSE:3LEG)
Historical Stock Chart
From Jun 2024 to Jul 2024
3Legs Resources (LSE:3LEG)
Historical Stock Chart
From Jul 2023 to Jul 2024
