TIDMCHAR
RNS Number : 8847Z
Chariot Oil & Gas Ld
23 September 2015
23 September 2015
Chariot Oil & Gas Limited
("Chariot", the "Company" or the "Group")
Interim Results
Chariot Oil & Gas Limited (AIM: CHAR), the Atlantic margins
focused oil and gas exploration company, today announces its
unaudited interim results for the six month period ended 30 June
2015.
Highlights during and post period:
Positioning the Portfolio
-- Fully funded for all current commitments with sufficient cash
(US$45.5m) to pursue additional opportunities
-- Licence extension secured in Mauritania - provides time to
carry out additional studies to further de-risk prospects prior to
drilling
-- Fast follower positioning and third party activity continue
to provide information and further understanding of the subsurface
potential, notably in Morocco and Mauritania
-- High margin, deep water assets - remain economically robust even at lower oil prices
Protecting Value
-- Strong cash position with ongoing focus on capital discipline
- demonstrated by a 50% reduction in Board remuneration from May
2015
-- Rejection of AziLat's commercial amendments to the farm-out
agreement protects value of Brazilian acreage and negotiating
position for other assets
De-risking
-- Partnering discussions on-going across the portfolio
-- Woodside election not to increase equity in Morocco frees
Chariot to open acreage to wider market - dataroom open
-- Continued technical evaluation:
o Resource Update in Morocco, Competent Persons Report ("CPR")
on 3D seismic confirms prospectivity with gross mean prospective
resources of 768mmbbls evaluated for JP-1 prospect and several
other prospects with significant follow-on potential
highlighted
o Resource Update of C-19, Mauritania, confirmed four giant
prospects ranging from single target to multi-stacked prospects
o Seabed coring acquisition completed in Morocco and Mauritania
- analysis ongoing
o Environmental Impact Assessment ("EIA") submitted and awaiting
approval prior to initiating 3D seismic programme, Brazil
o 1,700 line km of 2D seismic data acquired offshore Central
Blocks, Namibia, infilling existing grid of data; Pre Stack Time
Migration ("PSTM") received and interpretation underway
o All commitments satisfied in Southern Blocks, Namibia;
processing of 2D data underway with Pre Stack Depth Migration
("PSDM") expected in November 2015
Capitalising on the Business Environment
-- 3D seismic contract signed in Brazil locking in current low cost of acquisition
-- Ongoing evaluation of new venture opportunities to balance
and broaden the portfolio; analysis and discussions continue
Outlook
Morocco & Mauritania:
-- Continue partnering processes with aim of securing a drilling partner on priority prospects
-- Analyse seabed coring results to further understand the
petroleum systems and hydrocarbon migration
Brazil:
-- Continue partnering process with aim of securing a partner for 3D seismic programme
-- Initiate 1,000km(2) of 3D acquisition following EIA approval
Namibia:
-- Evaluate the 2D seismic in region to identify and design the
optimum area for 3D acquisition programmes
-- Continue partnering processes to secure either a drilling
partner on Prospect B or a seismic partner
New Ventures
-- Continue to seek value accretive assets that will diversify
the portfolio to broaden and balance the risk profile
Larry Bottomley, CEO of Chariot commented:
"The current business environment is one that is creating both
challenges and opportunities. Within these market conditions we
have adapted our strategy to look to protect our business whilst
continuing to de-risk and develop our assets, with our underlying
goal still being to create transformational value for
shareholders.
Whilst negotiations, technical evaluations and new venture
analysis take time, we as a team are maintaining our focus with our
clear strategy and objectives. Through our strategic positioning,
strong cash balance and high margin assets we believe Chariot
remains an attractive investment opportunity and we continue to
look to progress the Company towards realising its potential."
Analyst Conference Call and Webcast
A conference call for research analysts will be held at 08.30am
(BST) today. A recording of this conference call will be available
on Chariot's website as soon as possible.
Private Investor Event
Management will also be hosting an event for private investors
at 10.00am (BST) today, further details of which are on the Company
website:
http://www.chariotoilandgas.com/index.php/investors/events-and-financial-calendar/
For further information please
contact:
Chariot Oil & Gas Limited
Larry Bottomley, CEO +44 (0)20 7318 0450
finnCap (Nominated Adviser)
Matt Goode, Christopher Raggett +44 (0)20 7220 0500
GMP Securities Europe (Joint
Broker)
Rob Collins, Emily Morris +44 (0)20 7647 2835
Jefferies International Limited
(Joint Broker)
Chris Zeal, Max Jones +44 (0)20 7029 8000
EMC(2) Advisory (Media Contact)
Natalia Erikssen +44 (0)78 0944 0929
Chief Executive's Review
The past year has seen fundamental changes within the global oil
and gas sector, the impacts of which have been felt and continue to
affect the entire industry. Within this changing environment
Chariot has continued to focus on developing its assets and
delivering on its strategy whilst seeking to both manage risk and
create value over the longer term. It has focused on four key areas
in order to maintain its ability to prosper in current market
conditions.
Position the Portfolio
At the heart of Chariot's investment case is its high impact
portfolio. Chariot holds large, operated positions in giant
potential frontier and emerging hydrocarbon provinces, which
encompass a number of basins that contain both proven and yet to be
proven plays. To attract investment in such provinces, Governments
offer attractive commercial terms as is the case in all of
Chariot's acreage and, through its careful operatorship and good
relations with its partners and ministries, the Company has
successfully renewed licences and gained extensions where necessary
to ensure that it has the time to fully evaluate its work
programmes prior to entering drilling periods.
As a result of its licence acquisitions and continued efforts to
maintain its strong asset position, the Company has developed a
deep water high margin asset base which offers robust economics
that can be transformational even at low oil prices. The giant
potential identified within each of its licence areas means that,
in the event of a discovery, the breakeven costs are competitive.
Chariot has conducted its own analysis using its Netherland Sewell
and Associates ("NSAI") approved figures and tested its exploration
portfolio against the current oil price and the commerciality
threshold, resulting in a range between an estimated break-even
cost of US$23/bbl to US$43/bbl, similar to other deep water West
African and US plays. These figures were calculated using service
costs from when the oil price was around $100/bbl so would be even
more viable in today's environment. Whilst these are internal
estimates and should be used only as a guide, they provide a
benchmark relative to other exploration assets around the world and
emphasise the relative commercial attractiveness of Chariot's
portfolio.
Protect Value
Balance sheet strength is a current competitive advantage for
the Company and protecting the cash position is paramount in the
current climate. The team continues to focus on its capital
discipline, as evidenced by the significant reduction in the Board
remuneration announced in May 2015, and its aspiration for zero
cost exploration. As operator of the licences, Chariot has
significant control of its investment scale and timing and as a
result of the extensive work programmes completed to date, there
are low or no commitments outstanding.
Protecting the value of the portfolio is an important pillar of
this strategy, hence Chariot's decision not to accept the amended
terms of its agreed farm-out with AziLat in its Brazilian acreage
in May 2015. Whilst Chariot is cognisant of the changes in the
business environment that can make partnering challenging, it is
also careful to ensure that the value of its acreage is reflected
in its agreements and will continue to strive to deliver this.
Partner to Drill
Chariot requires partners to drill for hydrocarbons. The
portfolio of giant potential, high margin assets is attractive to
supermajors, majors and large independents, but the principal
discriminating factor in successfully partnering is the quality of
the technical description and the level of the pre-drill
irreducible risk. As a consequence, reducing risk is a key focus
and the Company continues to apply its de-risking strategy in a
number of ways.
The high quality technical work that continues across all of
Chariot's assets is a fundamental part of this risk description.
Basin analysis, petroleum systems and play fairway description,
extensive proprietary seismic acquisition with state-of-the-art
processing combined with integrated evaluations and interpretation
are all tools the Company utilises to describe prospectivity in the
way that our potential partners would do themselves.
(MORE TO FOLLOW) Dow Jones Newswires
September 23, 2015 02:01 ET (06:01 GMT)
Chariot also looks to benefit from third-party activity within
our selected basins. Drilling in the deep water is high cost and
high risk, and the industry looks to de-risk the prospects as far
as possible to ensure the best chance of success from any
investment. As a fast follower, Chariot has the ability to benefit
from invaluable information provided by third party activity,
without impact on its own balance sheet. For example, successful
drilling offshore Mauritania and Senegal this year has provided
encouraging detail on the regional prospectivity and more drilling
is scheduled to prove up further potential. In both instances,
Chariot has experienced a significant increase in interest from
potential partners following these successes. Third party
information is also incorporated into Chariot's technical work
within each region and helps to further de-risk potential drilling
candidates prior to significant investment.
While remaining aware of the current business environment, the
combination of balance sheet strength, low commitments, time on
licences, quality of technical description and reducing pre-drill
risk, in basins that are delivering success, puts Chariot in a
strong position to attract partners. Through partnering at the
seismic and drilling stages, the Company not only secures funds and
reduces the cost of its exploration programme, but it also gains
important independent validation of the assets.
Capitalise on the Business Environment
The lower oil price has had an impact on the industry's cost
base. Capitalising on this trend, Chariot has been able to realise
competitively priced seismic programmes in Namibia and Brazil, and
seabed coring programmes in Morocco and Mauritania. Chariot will
continue to apply capital discipline through rigorous tendering and
contracting procedures to maximise its exploration investments.
Broadening and balancing the risk profile of the portfolio
remains important to maintain a conveyor belt of opportunities, and
the team continues to evaluate a number of new ventures in this
regard. There is a focused mandate for this, with the team looking
to add tangible value by securing assets, at the right valuation,
that fit into the Chariot portfolio.
Whilst the environment is challenging, Chariot sees this as a
time of opportunity for companies that have a robust financial
position and are able to take advantage of these market conditions.
Importantly the team has a track record of delivering on the
strategy, both from previous partnering and its experience in
securing new ventures. Discussions and evaluations continue as the
Company seeks to capitalise on this.
Operational Update
Morocco (Rabat Deep: Operator 50%, Woodside 25%, ONHYM 25%; no
remaining commitments. Loukos, Mohammedia: Operator 75%, ONHYM 25%,
no remaining commitments)
In April 2015, Chariot announced that Woodside had elected not
to take operatorship and fund the drilling of an exploration well
in Rabat Deep in return for an additional 25% equity. Whilst
Woodside retains its 25% interest, Chariot, with its 50% holding
remains operator and is currently marketing a share of its equity
to other interested parties. A dataroom is open and discussions are
ongoing. The market will be updated with progress as and when
appropriate.
Late in the second quarter, the Company completed the evaluation
of the Company's 1,700km(2) 3D dataset over the three operated
licences. NSAI have subsequently completed a CPR confirming
Chariot's view of the materiality of the JP-1 prospect, located in
the Rabat Deep offshore permit, assigning a gross mean prospective
resource of 768mmbbls of oil to this prospect. This 3D data also
highlighted several other prospects ranging between 50 and
289mmbbls within the Jurassic, the Lower Cretaceous in a
shallow-water depositional environment, and within the
Eocene-Oligocene section that offer significant follow-on potential
in the success case. In line with Chariot's continued efforts to
de-risk its assets as far as possible prior to drilling, the
Company, funded by Woodside in the Rabat Deep permit, has completed
a seabed coring programme. The aim of the analysis of these cores
will be to assist in age dating rocks that outcrop at seabed and in
identifying hydrocarbon migration to best locate a well on the JP-1
prospect.
As a fast follower, Chariot has accumulated important
information from wells drilled over the last 18 months in Morocco,
which has served to prove that the Jurassic in the offshore can
have excellent reservoirs and has confirmed the presence of a light
oil charge. However, drilling targeting the Cretaceous in a deep
water depositional environment has yet to demonstrate reservoir
which is illustrative of the benefit of the fast-follower
strategy.
Mauritania (Operator 55%, Cairn 35%, SMHPM 10%.; no remaining
commitments.)
In May 2015, Chariot and its partners announced the successful
extension of the C-19 licence. This provided additional time to
carry out a seabed coring survey which has been acquired. As with
Morocco, once the results are received and analysed, these will
provide the opportunity to gain an improved understanding of the
petroleum systems and hydrocarbon migration to aid in the decision
to enter the next period which takes on a drilling commitment.
The Company has also carried out an independent audit with NSAI
on its Mauritanian acreage, the results of which supported
Chariot's evaluation and highlighted four priority prospects. These
range from the single target PA-1 and MA-1 prospects with gross
mean prospective resources of 431mmbbls and 588mmbbls respectively
and the KT-1 and BFT-1 prospects which are interpreted to comprise
stacked deep water sandstone targets located in a combination of
structural and stratigraphic trapping geometries in the Cretaceous
and overlying Tertiary section. Individual targets in these
prospects are estimated by NSAI to contain a range of gross mean
prospective resources up to 434mmbbls. A dataroom to secure a
drilling partner is currently open and discussions are ongoing. An
update will be provided as appropriate.
Recent third party drilling in both Mauritania and Senegal has
been encouraging for Chariot's C-19 acreage demonstrating excellent
quality Cretaceous reservoirs and a material hydrocarbon charge.
These discoveries also confirm the potential for giant-scale
accumulations in this part of the Atlantic margin. Further third
party drilling due in late 2015 will continue to contribute to the
description of the petroleum systems in this region and inform
Chariot's understanding of the prospectivity.
Brazil (Operator 100%; 800km(2) 3D seismic commitment)
Chariot's Brazilian acreage sits in the Barreirinhas basin which
was conjugate to the prolific petroleum systems of Cote d'Ivoire
and Ghana during the opening of the Atlantic. As a consequence,
this basin experienced significant industry interest and
competition in Round 11 with other industry players paying over
US$300 million in signature bonuses and committing to 8,000km(2) of
3D seismic data and 9 deep water wells, one adjacent to Chariot's
acreage. Chariot secured its four blocks with a US$2 million
signature bonus for an 800km(2) 3D seismic option and no well in
the first period of exploration.
With Chariot's acreage, the team has identified sufficient
burial of the Cenomanian-Turonian source rock for hydrocarbon
generation, and the prospectivity is supported by seismic
indicating deep water turbidite sands, fan entry points as well as
a large roll-over structure.
Following the unsolicited approach and the resulting farm-out
agreement with AziLat, the Company announced in May 2015 that this
agreement had been terminated, owing to AziLat's request to amend
the original commercial terms. Given the substantial prospectivity
identified within this acreage and in order to protect the ongoing
value of its assets, Chariot considered the proposed amendments
unacceptable.
Since this time, the team has continued to re-process and is
currently interpreting further legacy 2D seismic datasets. Using
this, the Company will continue to seek a partner to participate in
its 3D seismic campaign, however, given the Company's strong
funding position it will look to pursue its commitment once the
submitted EIA has been approved, regardless of partner
participation. In order to capitalise on current market conditions,
the Company has signed a seismic contract to secure good terms and
is prepared to commence the survey as soon as state permissions are
granted. It appears that all the operators in the Barreirinhas
basin are experiencing delays in this approvals process, which
suggests there is a possibility that the 3D seismic programme may
be delayed into 2016.
Namibia
Central Blocks (Operator 65%, AziNam 20%; NAMCOR 10%; Ignitus
5%; 1500km(2) 3D commitment)
Chariot has repositioned its Namibian acreage to provide the
optionality to seek seismic or well partners. Several major oil
companies have entered the country on seismic options allowing them
to act as fast followers and, for this reason, Chariot has
positioned itself in the Central Blocks to provide the optionality
to interested parties that may seek further technical development
on the licence prior to drilling.
From its fast follower positioning, Chariot has been able to
utilise information released from third party drilling which
described an excellent source as oil prone, mature and generating a
light, sweet oil. This source rock can be directly correlated into
Chariot's Central Blocks where it is buried to the same depths and
should have experienced the same hydrocarbon maturation.
(MORE TO FOLLOW) Dow Jones Newswires
September 23, 2015 02:01 ET (06:01 GMT)
Within the 3,500km(2) of 3D seismic within the Central Blocks,
Prospect B, an upper-slope fan with gross mean prospective
resources of 469mmbbls, is drill ready. The upper-slope fans
identified within the 3D seismic extend westwards and drape over a
regional-scale outboard high. In March 2015, Chariot completed
1,700 line kilometres of 2D seismic acquisition over this high to
infill previous grid data to better determine where it focuses its
3D seismic commitment, due to be carried out in 2016. This
acquisition aims to develop structural traps to complement the
stratigraphic prospects already identified to build an attractive
portfolio of targets with demonstrable follow-on potential in the
success case.
Using its positioning, Chariot has the flexibility to seek a
partner to share in its seismic commitment or to drill its priority
prospect. This flexibility is key to Chariot's ability to adapt to
circumstances in the current environment which has been reflected
in its indicative timelines. The Company has been actively
scrutinising potential opportunities in the market and has hosted
several discussions throughout 2015 with interested parties. Of
these was the potential opportunity to accelerate a well into 2015,
however this opportunity did not mature. Chariot will continue to
focus on the partnering process in order to de-risk its Namibian
acreage as far as possible prior to drilling and updates in this
regard will be provided as appropriate.
Southern Blocks (Operator 85%; NAMCOR 10%; Quiver 5%; no
remaining commitments)
The Company has satisfied all work commitments in the Southern
acreage, and following the receipt of PSDM data in November 2015
will be developing an integrated interpretation with the Company's
proprietary datasets. This evaluation will provide essential
insight to determine the best positioning for a 3D seismic
campaign. A dataroom to secure a partner for the 3D seismic survey
will be opened following this evaluation.
An additional three wells are reported to be drilled within the
next 12 months offshore Namibia which will bring further
understanding to the plays that the Company has identified and is
pursuing in both the Central and Southern areas.
Financial Results
The Group is debt free and held a cash balance of US$45.5
million at 30 June 2015 (US$37.5 million at 30 June 2014; US$53.5
million at 31 December 2014).
The Group incurred a loss of US$4.4 million for the six months
ended 30 June 2015 (30 June 2014: US$36.1 million). The decrease in
the loss between the two periods is primarily due to an impairment
charge of US$33.6 million for the Northern Blocks offshore Namibia
reflected in the 2014 period.
Other administrative expenses of US$2.5 million are lower than
last year (30 June 2014: US$3.0 million) mainly due to the 50%
reduction in Board remuneration from May 2015 combined with other
cost savings. Share-based payments charges of US$0.6 million are
lower than the US$0.9 million incurred for the six months ended 30
June 2014 due to the vesting of historic awards of employee
deferred shares.
Net cash outflow from operating activities before changes in
working capital of US$2.3 million is lower than the US$2.8 million
for the six months ended 30 June 2014 due to cost savings in other
administrative expenses.
Capitalised exploration costs in the period of US$6.3 million
(30 June 2014: US$13.9 million) were funded by existing cash,
working capital movements and farm-in proceeds.
Outlook
Whilst the current climate remains tough and we continue to see
the sector tighten, Chariot believes it is in a strong position and
remains focused on the business in hand. Market conditions have
made partnering more challenging, but whilst the number of
attendees in data rooms is lower, there are new entrants and
discussions are underway with interested parties. Plans for further
seismic and ongoing geological & geophysical work continue as
the Company looks to progress and de-risk its assets and generate
prospects for drilling.
Chariot has adapted its strategy in order to ensure that it is
able to both survive in and capitalise on the current business
environment, and will continue to protect, progress and de-risk the
portfolio as it looks to build the business and achieve
transformational growth over the longer term. Management views this
as an opportunity to leverage its cash position and expertise in
order to broaden the portfolio and risk profile. This is aimed at
generating a sustainable business model whilst progressing towards
drilling. The team is dedicated to delivering on its strategy and
looks forward to reporting on its ongoing work and progress.
Larry Bottomley
Chief Executive Officer
22 September 2015
Chariot Oil & Gas Limited
Independent review report to Chariot Oil & Gas Limited
Introduction
We have been engaged by the company to review the set of
financial statements in the half-yearly financial report for the
six months ended 30 June 2015 which comprises the consolidated
statement of comprehensive income, the consolidated statement of
changes in equity, the consolidated statement of financial
position, the consolidated cash flow statement and the related
notes.
We have read the other information contained in the half-yearly
financial report and considered whether it contains any apparent
misstatements or material inconsistencies with the information in
the set of financial statements.
Directors' responsibilities
The interim report, including the financial information
contained therein, is the responsibility of and has been approved
by the directors. The directors are responsible for preparing the
interim report in accordance with the rules of the London Stock
Exchange for companies trading securities on AIM which require that
the half-yearly report be presented and prepared in a form
consistent with that which will be adopted in the company's annual
accounts having regard to the accounting standards applicable to
such annual accounts.
Our responsibility
Our responsibility is to express to the company a conclusion on
the set of financial statements in the half-yearly financial report
based on our review.
Our report has been prepared in accordance with the terms of our
engagement to assist the company in meeting the requirements of the
rules of the London Stock Exchange for companies trading securities
on AIM and for no other purpose. No person is entitled to rely on
this report unless such a person is a person entitled to rely upon
this report by virtue of and for the purpose of our terms of
engagement or has been expressly authorised to do so by our prior
written consent. Save as above, we do not accept responsibility for
this report to any other person or for any other purpose and we
hereby expressly disclaim any and all such liability.
Scope of review
We conducted our review in accordance with the International
Standard on Review Engagements (UK and Ireland) 2410, "Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity", issued by the Auditing Practices Board for use in
the United Kingdom. A review of interim financial information
consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other
review procedures. A review is substantially less in scope than an
audit conducted in accordance with International Standards on
Auditing and consequently does not enable us to obtain assurance
that we would become aware of all significant matters that might be
identified in an audit. Accordingly, we do not express an audit
opinion.
Conclusion
Based on our review, nothing has come to our attention that
causes us to believe that the set of financial statements in the
half-yearly financial report for the six months ended 30 June 2015
is not prepared, in all material respects, in accordance with the
rules of the London Stock Exchange for companies trading securities
on AIM.
BDO LLP
Chartered Accountants
London
United Kingdom
22 September 2015
BDO LLP is a limited liability partnership registered in England
and Wales (with registered number OC305127).
Chariot Oil & Gas Limited
Consolidated statement of comprehensive income for the six
months ended 30 June 2015
Six months Six months Year ended
ended 30 ended 31 December
June 2015 30 2014
June 2014
US$000 US$000 US$000
Notes Unaudited Unaudited Audited
Share based payments (607) (854) (1,746)
Impairment of exploration
asset 4 - (33,629) (33,629)
Other administrative
expenses (2,483) (2,991) (6,053)
------------------------------ ------- -------------- -------------- ---------------
Total operating expenses (3,090) (37,474) (41,428)
------------------------------ ------- -------------- -------------- ---------------
Loss from operations (3,090) (37,474) (41,428)
Finance income 704 1,574 1,546
Finance expense (1,849) - (1,580)
------------------------------ ------- -------------- -------------- ---------------
Loss for the period
before taxation (4,235) (35,900) (41,462)
Tax expense (154) (180) (311)
------------------------------ ------- -------------- -------------- ---------------
Loss for the period
and total comprehensive
(MORE TO FOLLOW) Dow Jones Newswires
September 23, 2015 02:01 ET (06:01 GMT)
loss for the period
attributable to equity
owners of the parent (4,389) (36,080) (41,773)
------------------------------ ------- -------------- -------------- ---------------
Loss per ordinary share 3 US$(0.02) US$(0.18) US$(0.19)
attributable to the
equity holders of the
parent - basic and diluted
------------------------------ ------- -------------- -------------- ---------------
Chariot Oil & Gas Limited
Consolidated statement of changes in equity for the six months
ended 30 June 2015
Share Total
based Foreign attributable
Share Share Contributed payment exchange Retained to equity
capital premium equity reserve reserve deficit holders of
the parent
US$000 US$000 US$000 US$000 US$000 US$000 US$000
---------------- ------------ ------------ -------------- ------------ ------------ ------------ --------------
For the six
months ended
30 June 2015
(unaudited)
As at 1
January 2015 4,779 338,348 796 4,514 (1,241) (185,145) 162,051
Loss and total
comprehensive
loss for the
period - - - - - (4,389) (4,389)
Share based
payments - - - 607 - - 607
As at 30 June
2015 4,779 338,348 796 5,121 (1,241) (189,534) 158,269
---------------- ------------ ------------ -------------- ------------ ------------ ------------ --------------
For the six
months ended
30 June 2014
(unaudited)
As at 1
January 2014 3,776 324,577 796 3,874 (1,241) (143,372) 188,410
Loss and total
comprehensive
loss for the
period - - - - - (36,080) (36,080)
Share based
payments - - - 854 - - 854
Transfer of
reserves due
to issue of
LTIPS 6 266 - (272) - - -
As at 30 June
2014 3,782 324,843 796 4,456 (1,241) (179,452) 153,184
---------------- ------------ ------------ -------------- ------------ ------------ ------------ --------------
For the year ended 31 December 2014
(audited)
As at 1 January 2014 3,776 324,577 796 3,874 (1,241) (143,372) 188,410
Loss and total comprehensive loss for the
year - - - - - (41,773) (41,773)
Issue of capital 972 13,605 - - - - 14,577
Issue costs - (909) - - - - (909)
Share based payments - - - 1,746 - - 1,746
Transfer of reserves due to issue of LTIPS 31 1,075 - (1,106) - - -
As at 31 December 2014 4,779 338,348 796 4,514 (1,241) (185,145) 162,051
-------------------------------------------- ------- --------- ----- --------- --------- ----------- ----------
Chariot Oil & Gas Limited
Consolidated statement of financial position as at 30 June
2015
30 June 30 June 31 December
2015 2014 2014
US$000 US$000 US$000
Notes Unaudited Unaudited Audited
Non-current assets
Exploration and appraisal
costs 4 106,067 108,509 101,251
Property, plant and
equipment 204 508 342
------------------------------ ------- ----------- ----------- -------------
Total non-current assets 106,271 109,017 101,593
------------------------------ ------- ----------- ----------- -------------
Current assets
Trade and other receivables 1,432 1,492 1,681
Inventory 7,462 7,761 7,427
Cash and cash equivalents 5 45,521 37,510 53,482
------------------------------ ------- ----------- ----------- -------------
Total current assets 54,415 46,763 62,590
------------------------------ ------- ----------- ----------- -------------
Total assets 160,686 155,780 164,183
------------------------------ ------- ----------- ----------- -------------
Current liabilities
Trade and other payables 2,417 2,596 2,132
Total current liabilities 2,417 2,596 2,132
------------------------------ ------- ----------- ----------- -------------
Total liabilities 2,417 2,596 2,132
------------------------------ ------- ----------- ----------- -------------
Net assets 158,269 153,184 162,051
------------------------------ ------- ----------- ----------- -------------
Capital and reserves
attributable to equity
holders of the parent
Share capital 6 4,779 3,782 4,779
Share premium 338,348 324,843 338,348
Contributed equity 796 796 796
Share based payment
reserve 5,121 4,456 4,514
Foreign exchange reserve (1,241) (1,241) (1,241)
Retained deficit (189,534) (179,452) (185,145)
------------------------------ ------- ----------- ----------- -------------
Total equity 158,269 153,184 162,051
------------------------------ ------- ----------- ----------- -------------
Chariot Oil & Gas Limited
Consolidated cash flow statement for the six months ended 30
June 2015
Six months Six months Year ended
ended ended 31 December
30 30 June 2014
June 2015 2014
US$000 US$000 US$000
Unaudited Unaudited Audited
------------------------------------ -------------- -------------- ---------------
Operating activities
Loss for the period before
taxation (4,235) (35,900) (41,462)
Adjustments for:
Finance income (704) (1,574) (1,546)
Finance expense 1,849 - 1,580
Depreciation 153 164 334
Share based payments 607 854 1,746
Impairment of exploration
asset - 33,629 33,629
------------------------------------ -------------- -------------- ---------------
Net cash outflow from operating
activities before changes
in working capital (2,330) (2,827) (5,719)
Decrease/(increase) in trade
and other receivables 70 166 (197)
(Decrease)/increase in trade
and other payables (622) (23) 162
Increase in inventories (19) (527) (92)
------------------------------------ -------------- -------------- ---------------
Cash outflow from operating
activities (2,901) (3,211) (5,846)
Tax payment (164) (1,989) (2,078)
------------------------------------ -------------- -------------- ---------------
Net cash outflow from operating
activities (3,065) (5,200) (7,924)
------------------------------------ -------------- -------------- ---------------
Investing activities
Finance income 708 753 1,578
Payments in respect of property,
plant and equipment (15) (59) (63)
Farm-in proceeds 1,731 - 10,265
Payments in respect of intangible
assets (5,471) (15,489) (19,146)
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Net cash outflow used in
investing activities (3,047) (14,795) (7,366)
------------------------------------ -------------- -------------- ---------------
Financing activities
Issue of ordinary share
capital - - 14,577
Issue costs - - (909)
Net cash outflow used in
financing activities - - 13,668
------------------------------------ -------------- -------------- ---------------
Net decrease in cash and
cash equivalents in the
period (6,112) (19,995) (1,622)
Cash and cash equivalents
at start of the period 53,482 56,684 56,684
Effect of foreign exchange
rate changes on cash and
cash equivalent (1,849) 821 (1,580)
Cash and cash equivalents
at end of the period 45,521 37,510 53,482
------------------------------------ -------------- -------------- ---------------
Chariot Oil & Gas Limited
Notes to the Interim Financial Statements for the six months
ended 30 June 2015
1. Accounting policies
Basis of preparation
The interim financial statements have been prepared using
policies based on International Financial Reporting Standards (IFRS
and IFRIC interpretations) issued by the International Accounting
Standards Board (IASB) as adopted for use in the EU.
The interim financial information has been prepared using the
accounting policies which were applied in the Group's statutory
financial statements for the year ended 31 December 2014. The Group
has not adopted IAS 34: Interim Financial Reporting in the
preparation of the interim financial statements.
There has been no impact on the Group of any new standards,
amendments or interpretations that have become effective in the
period. The Group has not early adopted any new standards,
amendments or interpretations.
2. Financial reporting period
The interim financial information for the period 1 January 2015
to 30 June 2015 is unaudited but was the subject of an independent
review carried out by the Company's auditors, BDO LLP. The
financial statements also incorporate the unaudited figures for the
interim period 1 January 2014 to 30 June 2014 and the audited
figures for the year ended 31 December 2014.
The financial information contained in this interim report does
not constitute statutory accounts as defined by sections 243-245 of
the Companies (Guernsey) Law 2008.
The figures for the year ended 31 December 2014 are not the
Group's full statutory accounts for that year. The auditors' report
on those accounts was unqualified, did not contain references to
matters to which the auditors drew attention by way of emphasis and
did not contain a statement under section 263 (3) of the Companies
(Guernsey) Law 2008.
3. Loss per share
The calculation of the basic earnings per share is based on the
loss attributable to ordinary shareholders divided by the weighted
average number of shares in issue during the period.
Six months Six months Year ended
ended ended 30 31 December
30 June June 2014 2014
2015
-------------------------- ------------- ------------- --------------
Loss for the period
US$000 (4,389) (36,080) (41,773)
-------------------------- ------------- ------------- --------------
Weighted average number
of shares 262,294,113 202,043,615 222,449,858
-------------------------- ------------- ------------- --------------
Loss per share, basic US$(0.02) US$(0.18) US$(0.19)
and diluted*
-------------------------- ------------- ------------- --------------
*Inclusion of the potential ordinary shares would result in a
decrease in the loss per share and, as such, is considered to be
anti-dilutive. Consequently a separate diluted loss per share has
not been presented.
4. Exploration and appraisal costs
Six months ended 30 June Six months ended 30 June 2014 Year
2015 ended 31 December 2014
-------------------------- ------------------------------ ------------------------------- -------------------------
US$000 US$000 US$000
-------------------------- ------------------------------ ------------------------------- -------------------------
Balance brought forward 101,251 128,284 128,284
-------------------------- ------------------------------ ------------------------------- -------------------------
Additions 6,256 13,854 17,287
-------------------------- ------------------------------ ------------------------------- -------------------------
Farm-in proceeds (1,440) - (10,691)
-------------------------- ------------------------------ ------------------------------- -------------------------
Impairment - (33,629) (33,629)
-------------------------- ------------------------------ ------------------------------- -------------------------
Net book value 106,067 108,509 101,251
-------------------------- ------------------------------ ------------------------------- -------------------------
As at 30 June 2015 the net book values of the five cost pools
are Central Blocks offshore Namibia US$44.3m (31 December 2014:
US$43.0m), Southern Blocks offshore Namibia US$49.5m (31 December
2014: US$47.3m), Mauritania US$4.4m (31 December 2014: US$3.9m),
Morocco US$3.4m (31 December 2014: US$3.2m) and Brazil US$4.5m (31
December 2014: US$3.9m).
Farm-in proceeds are in relation to the farm-out of 25% of the
Rabat Deep Offshore permits I-IV, Morocco, to a wholly owned
subsidiary of Woodside Petroleum Limited, which completed on 23
December 2014.
Continued portfolio review leading to no application for a
licence renewal of 1811A&B resulted in the licence lapsing on
26 October 2014, causing a provision of US$33.6 million against the
carrying value of Northern Blocks, Namibia.
5. Cash and cash equivalents
As at 30 June 2015 the cash balance of US$45.5m (31 December
2014: US$53.5m) contains the following cash deposits that are
secured against bank guarantees given in respect of exploration
work to be carried out:
30 June 2015 30 June 2014 31 December 2014
------------------------- -------------- -------------- ------------------
US$000 US$000 US$000
------------------------- -------------- -------------- ------------------
Brazilian licences 9,093 12,958 10,745
------------------------- -------------- -------------- ------------------
Mauritanian licence 611 500 500
------------------------- -------------- -------------- ------------------
Moroccan licences 1,400 1,900 1,900
------------------------- -------------- -------------- ------------------
Namibian 2714B licence 300 300 300
------------------------- -------------- -------------- ------------------
11,404 15,658 13,445
------------------------- -------------- -------------- ------------------
The funds are freely transferrable but alternative collateral
would need to be put in place to replace the cash security.
The cash balance of US$45.5 million (31 December 2014: US$53.5
million) does not include US$1.4 million (31 December 2014: US$1.4
million) held in a Brazilian Real denominated escrow bank account
relating to a farm-out agreement with a wholly owned subsidiary of
AziLat Limted which was terminated on 19 May 2015. At 30 June 2015
the Group did not control or benefit from this escrow cash and the
funds were returned to AziLat limited after the reporting
period.
6. Share capital
Allotted, called up and fully paid
----------- ------------------------------------------------------------------------------------
At 30 At 30 At 30 At 30 At 31 At 31
June 2015 June June June December December
2015 2014 2014 2014 2014
----------- --------------- --------- --------------- --------- --------------- -----------
Number US$000 Number US$000 Number US$000
----------- --------------- --------- --------------- --------- --------------- -----------
Ordinary
shares
of 1p
each 262,294,113 4,779 202,174,664 3,782 262,294,113 4,779
----------- --------------- --------- --------------- --------- --------------- -----------
No ordinary shares issued were during the six month period to 30
June 2015.
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