TIDMARG
RNS Number : 9137H
Argos Resources Ltd
16 March 2018
16 March 2018
ARGOS RESOURCES LIMITED
("Argos" or "the Company")
2017 Financial Results
Highlights
Argos Resources Ltd (AIM: ARG.L), the Falkland Islands based
exploration company focused on the North Falkland Basin, announces
its financial results for the year ended 31 December 2017.
* US$118,000 profit
* US$758,000 cash reserves at 31 December 2017
* The Company retains an Overriding Royalty Interest
(the "ORRI") of 5% of all oil and gas produced over
the life of Licence PL001 in the North Falkland Basin
(the "Licence") from all hydrocarbon discoveries
developed within the Licence area
* All future expenditures incurred on the Licence will
be at no cost to the Company
* The Company will receive future cash payments of
$405,000 per annum from Noble Energy Falklands
Limited ("Noble") and Edison International S.p.A
("Edison") which will be sufficient to meet its
ongoing running costs until first oil production
* A three year extension of the Licence was approved in
2016 which extends the current Second Phase of the
Licence to November 2019
The full Annual Report and Consolidated Financial Statements can
be read and downloaded from the Company website:
http://www.argosresources.com/news.php?page=regulatory-news
Argos Resources Limited (+500 22685)
www.argosresources.com
Ian Thomson, Chairman
John Hogan, Managing Director
Cenkos Securities plc (Nomad & Broker)
Derrick Lee (+44 131 220 9100)
Neil McDonald (+44 131 220 6939)
Combined Chairman's statement and Managing Director's review
Oil prices rose steadily during the second half of 2017,
supported by sustained production curtailments from a number of
leading OPEC and non-OPEC producers. The Brent oil price at year
end 2017 approached $67 per barrel, an increase of over $10 per
barrel from the beginning of the year. The industry response to
this has so far been muted, with concerns about the sustainability
of these price levels continuing for the long term.
A Participation Agreement between Noble, Edison and the Company
continues to be in effect. The Participation Agreement confirms the
Company's entitlement to a 5 percent Overriding Royalty Interest in
Licence PL001 in the North Falkland Basin. This royalty interest
entitles the Company to 5 percent of all oil and gas produced over
the life of the Licence, free and clear of all costs. Also, under
the terms of the Participation Agreement, the Company has been
receiving quarterly cash payments totalling GBP300,000 per annum
during 2017, which is sufficient to meet its ongoing running
costs.
The Company announced in August 2016 that a three-year extension
to the Licence had been approved by the Executive Council of the
Falkland Islands Government and by the UK Secretary of State for
Foreign and Commonwealth Affairs. This approval extends the current
Second Phase of the Licence to November 2019, after which a Third
Licence Phase of 10 years is available to the Licensees.
With world-wide exploration drilling activities still
suppressed, the Company cannot yet forecast when drilling
operations might commence on the Licence. However, the Overriding
Royalty Interest in the Licence continues through the Second Phase
of the Licence and any further phases beyond, and the Company's
future running costs are covered, so we remain well positioned. The
Company continues to be positive about the exploration potential of
the Licence Area.
Results and dividend
The results for the year and the Group's financial position as
at the year-end are shown in the attached financial statements. The
directors have not recommended a dividend for the year (2016:
$nil).
Business review
The Group has returned a profit for the year ended 31 December
2017 of $118,000 (2016: loss of $16,000) which equates to a profit
per share of 0.05 cents (2016: loss per share of 0.007 cents). The
profit reflects the full effects of management efforts to cut costs
in 2016, positive foreign exchange differences and the receipt of
income under the Participation Agreement.
Administration expenses were $329,000 in 2017 compared to
$427,000 in 2016.
Shareholders' equity has increased marginally from $29.32
million to $29.46 million in the year since 31 December 2016, as
receipts under the Participation Agreement offset the
administration costs, leaving a small surplus. Cash in the year
increased from $701,000 to $758,000.
Outlook for the next financial year
The Participation Agreement with Noble and Edison means that the
Group will continue to receive quarterly cash payments totalling
GBP300,000 per annum, in Sterling, which equates to $405,000 at the
year-end exchange rate and covers the Group's ongoing costs. There
is a risk that Noble and Edison withdraw from the agreement. In
such circumstances the Licence would revert back to Argos, subject
to Government approval. Given that Noble and Edison have been
granted an extension to the Licence, which now runs until November
2019, withdrawal is considered unlikely. The Group is therefore
fully funded for the foreseeable future.
Ian Thomson John Hogan
Chairman Managing Director
Consolidated statement of comprehensive income
Year ended 31 December 2017
Year Year
ended ended
31 December 31 December
2017 2016
$'000 $'000
Other income 380 505
Administrative expenses (329) (427)
Finance income 1 1
Foreign exchange gains/(losses) 66 (95)
---------------------------------------------- -------------- --------------
Profit/(loss) for the
year attributable to
owners of the parent 118 (16)
---------------------------------------------- -------------- --------------
Total comprehensive
income for the period
attributable to owners
of the parent 118 (16)
Basic and diluted earnings/(loss)
per share (cents) 0.05 (0.007)
---------------------------------------------- -------------- --------------
Consolidated statement of financial position
As at 31 December 2017
2017 2016
$'000 $'000
Assets
Non-current assets
Royalty interests 28,749 28,749
28,749 28,749
Current assets
Other receivables 14 15
Cash and cash equivalents 758 701
----------------------------- -------- --------
Total current assets 772 716
----------------------------- -------- --------
Total assets 29,521 29,465
Liabilities
Current liabilities
Trade and other payables 59 148
Total liabilities 59 148
Total net assets 29,462 29,317
----------------------------- -------- --------
Capital and reserves
attributable to
equity holders of the
Company
Share capital 6,696 6,669
Share premium 30,071 30,071
Retained losses (7,305) (7,423)
Total shareholders'
equity 29,462 29,317
----------------------------- -------- --------
Consolidated statement of cash flows
Year ended 31 December 2017
Year Year
ended ended
31 December 31 December
2017 2016
$'000 $'000
Cash flows from operating
activities
Profit/(loss) for period
before taxation 118 (16)
Adjustments for:
Finance income (1) (1)
Foreign exchange (67) 92
Depreciation - 3
Net cash inflow from operating
activities
before changes in working
capital 50 78
-------------------------------------- -------------- --------------
Decrease in other receivables 1 37
(Decrease)/increase in
other payables (89) 54
-------------------------------------- -------------- --------------
Net cash (outflow)/inflow
from operating activities (38) 169
-------------------------------------- -------------- --------------
Investing activities
Interest received 1 1
Proceeds on the sale of
assets - 172
Net cash received from
investment activities 1 173
-------------------------------------- -------------- --------------
Financing activities
Issue of ordinary shares
(share options exercised) 27 -
Net cash from financing
activities - -
-------------------------------- ---- -------------- --------------
Net (decrease)/ increase
in cash and cash equivalents (10) 342
Cash and cash equivalents
at beginning of period 701 451
Exchange gains/(losses)
on cash and cash equivalents 67 (92)
-------------------------------------- -------------- --------------
Cash and cash equivalents
at end of the year 758 701
-------------------------------------- -------------- --------------
Consolidated statement of changes in equity
Year ended 31 December 2017
Share Share Retained Total
capital premium losses equity
$'000 $'000 $'000 $'000
At 1 January 2016 6,669 30,071 (7,407) 29,333
Total comprehensive
income for the
year - - (16) (16)
At 31 December
2016
And 1 January 2017 6,669 30,071 (7,423) 29,317
----------------------- --------- --------- --------- --------
Total comprehensive
income for the
year - - 118 118
Shares issued (share
options exercised) 27 - - 27
At 31 December
2017 6,696 30,071 (7,305) 29,462
----------------------- --------- --------- --------- --------
In preparing the financial information in this statement the
Group, which consists of the Company Argos Resources Ltd, and its
wholly owned subsidiary Argos Exploration Ltd, has applied policies
in accordance with International Financial Reporting Standards as
adopted by the European Union ("IFRS"). The financial information
has been prepared under the historical cost convention.
The financial information set out above does not constitute the
company's statutory accounts for 2016 or 2017. Statutory accounts
for 2016 and 2017 have been reported on by the Independent
Auditors. The Independent Auditors' Reports on the Annual Report
and Financial Statements for 2016 and 2017 were unqualified and did
not draw attention to any matters by way of emphasis.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR UVOKRWSAOAAR
(END) Dow Jones Newswires
March 16, 2018 03:00 ET (07:00 GMT)
Argos Resources (LSE:ARG)
Historical Stock Chart
From Mar 2024 to Apr 2024
Argos Resources (LSE:ARG)
Historical Stock Chart
From Apr 2023 to Apr 2024