TIDMCHAR
RNS Number : 5606Q
Chariot Oil & Gas Ld
13 September 2017
13 September 2017
Chariot Oil & Gas Limited
("Chariot", the "Company" or the "Group")
H1 2017 Results
-- Approval of Eni farm-in to Rabat Deep Offshore, Morocco,
securing a carried well with spud scheduled in Q1 2018.
-- Award of Kenitra Offshore Exploration Permit, Morocco in Q1 2017.
-- Seismic acquisition of 1,027km(2) 3D and 2,254km 2D over Mohammedia and Kenitra, Morocco.
-- Commenced preparations for drilling in both Namibia and Morocco.
-- Elected not to enter the next phase of exploration in the
Southern Blocks, Namibia and secured a 10% equity back-in option
for no financial consideration.
-- US$21.7 million in cash as at 30 June 2017, no debt, minimal remaining licence commitments.
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
2017.
Highlights during and post-period:
Partnering & Drilling
-- Approval of the farm-out to Eni in Rabat Deep Offshore,
Morocco - operatorship now transferred and a carried well (RD-1)
secured: spud scheduled for Q1 2018 with the Saipem 12000
ultra-deepwater drilling rig.
-- Drilling preparations initiated and datarooms for potential
partners open in Central Blocks, Namibia and in Mohammedia and
Kenitra, Morocco.
-- David Brecknock, a highly experienced drilling manager, is
joining the management team to oversee the drilling programme.
Portfolio Management
-- Award of Kenitra Offshore Exploration Permit, Morocco in
February 2017 - capturing the LKP prospects that extend from
Mohammedia into this area and the Kenitra-A lead, all of which have
the potential to be significantly de-risked by the drilling of the
RD-1 well.
-- Acquisition of 1,027km(2) 3D and 2,254km 2D seismic over
Mohammedia and Kenitra, Morocco in H1, 2017 satisfies all remaining
material work programme commitments throughout the entire
portfolio.
-- Election not to enter the next exploration phase in the
Southern Blocks, Namibia, to focus on higher priority projects.
Option with remaining partners to back-in for 10% equity after the
completion of future exploration drilling for no financial
consideration.
-- Completion of Competent Person's Report ("CPR") following the
2016 seismic campaign (based on 6,100km(3) of 3D seismic data) in
the Central Blocks, Namibia - identified five new structural
prospects, ranging from 283 - 459mmbbls in gross mean prospective
resources.
Capital Discipline
-- Robust balance sheet with US$21.7 million in cash as at 30 June 2017 and no debt.
-- Minimal work commitments throughout portfolio; all fully funded.
-- Continued capital discipline with half-year costs on track to
achieve an annual cash overhead of less than US$5m.
-- Continued prudent use of funds to develop the portfolio in a
weakened business environment with a rigorous approach adapted for
seismic tendering and other contract selection processes.
Asset Outlook
-- Target to drill three wells in the near-term in the Moroccan and Namibian licence areas.
Morocco:
-- Rabat Deep: spud anticipated on the JP-1 prospect (768mmbbls
gross mean prospective resources) in the latter part of Q1 2018.
This well has the potential to de-risk an additional 6 Jurassic
leads ranging from 119 to 1,041mmbbls gross mean prospective
resources in the Rabat Deep permits.
-- Mohammedia and Kenitra: processing of the 2D and 3D seismic
campaign, acquired in Q1 2017, across the south of the greater LKP
area and Kenitra is ongoing with interpretation to commence
thereafter.
-- LKP-1a (Mohammedia Permits) is drill-ready with the
1,027km(2) 3D campaign targeting additional prospectivity in this
area and to mature the Kenitra-A lead (Kenitra Permit) to drill
ready status. Preparation for drilling underway and a dataroom
across both licences currently open.
Namibia:
-- Central Blocks: Preparation for H2 2018 drilling underway
with Prospect S (gross mean prospective resources 459mmbbls)
identified as a priority prospect - additional partner
participation process ongoing with a dataroom open.
Brazil:
-- Detailed seismic interpretation continues with a defined
prospect and lead inventory anticipated to be completed for the
opening of a dataroom in Q4 2017.
-- Continue to develop a sustainable conveyor belt of giant drilling opportunities, leveraging knowledge of the Atlantic margins to access giant potential new venture opportunities.
Larry Bottomley, CEO of Chariot commented:
"As a result of rigorous and continued focus on risk management
and capital discipline, Chariot has been able to use a strong cash
position and clear strategic objectives to continue to invest in
the portfolio despite the prevailing "lower for longer" oil price
business environment. During the period, we have continued to use
our technical capabilities and regional insight to secure follow-on
potential with the new venture asset, Kenitra, in Morocco; shoot 2D
and 3D seismic campaigns at favourable rates to mature this and the
Mohammedia acreage; and, in looking towards realising the potential
within the portfolio, initiated the preparation for drilling over
priority prospects.
"At the same time we have succeeded in securing a drilling
partner on our Rabat Deep acreage, Morocco, with the farm-out to
Eni completed in January. With the RD-1 well now carried and due to
spud in the latter part of Q1 2018, our near-term focus will be to
secure partners on additional priority prospects in Namibia and
Morocco. We also have great pleasure in welcoming David Brecknock
to the leadership team to increase our drilling operating
capability which, with success, will enable us to realise
transformational value. At the same time, we will continue to use
our strategic discipline to develop our portfolio for long-term
sustainable growth".
Private Investor Call
Management will host a conference call 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/
This announcement is inside information for the purposes of
Article 7 of Regulation 596/2014.
For further information please
contact:
Chariot Oil & Gas Limited
Larry Bottomley, CEO +44 (0)20 7318 0450
finnCap (Nominated Adviser
and Joint Broker)
Matt Goode, Christopher Raggett
(Corporate Finance)
Emily Morris (Corporate Broking) +44 (0)20 7220 0500
Peel Hunt (Joint Broker)
Richard Crichton, Ross Allister,
Chris Burrows +44 (0)20 7418 8900
EMC(2) Advisory (PR/IR Contact)
Natalia Erikssen +44 (0)78 0944 0929
Chariot Oil & Gas Limited
Chief Executive's Review
Whilst the "lower for longer" oil price has continued to mute
exploration activity across the sector, Chariot's ongoing capital
discipline and strategic focus have enabled it to take advantage of
reduced service and exploration costs in order to progress the
maturation of the portfolio and prepare the drilling inventory. As
well as securing a partner and capped carry to drill the JP-1
prospect offshore Morocco, Chariot's continued focus on reducing
the annual cash overhead and the resulting robust cash position
means that the Company has been able to use the current business
environment to secure acreage, mature its portfolio and prepare to
drill at reduced costs.
As announced in September 2017, the RD-1 well in offshore
Morocco is expected to be spud by Eni in Q1, 2018 using the Saipem
12000 ultra-deepwater drilling rig on the JP-1 prospect, which has
an audited gross mean prospective resource of 768mmbbls. Following
the completion of the farmout on this licence to Eni in Q1 2017,
operatorship and 40% equity in the licence was transferred to Eni
in return for a drilling carry and the recovery of back costs
across the larger Rabat Deep permit. In this region, therefore,
Chariot has achieved its goal of near zero cost exploration whilst
retaining sufficient equity to ensure that, in the success case, it
will be exposed to transformational value.
This shows that the Company has been able to attract partners
even at lower oil prices as the portfolio is characterized by
licences with excellent contract terms and giant prospectivity that
has been technically matured through investment in data acquisition
and the application of the expertise of the Chariot team in
developing the technical and commercial description. While
conscious of the deleterious impact of current market conditions on
world-wide exploration expenditure, the Company continues to look
to secure partners to replicate its low cost, shared risk objective
throughout the portfolio and has datarooms open on assets in
Namibia and Morocco. At the same time the Company will continue to
invest in the low risk, high margin parts of the portfolio to
ensure that these assets can be taken through to drilling.
Chariot are targeting a further two wells to be drilled in the
near term from the Company's matured Namibian and Moroccan
portfolio. In working towards this goal Chariot has used rigorous
tendering processes to complete 2D and 3D seismic data coverage
across areas of interest within these regions to develop a
drill-ready prospect inventory at favourable cost. Interpretation
is complete across the Namibian acreage with a CPR confirming a
further five prospects in the Central Blocks, Namibia, each ranging
between 283 - 459mmbbls gross mean prospective resources. We have
opened a dataroom and the partnering process is underway. Data
acquired in Q1 2017 across the Company's Mohammedia and Kenitra
licences, offshore Morocco, is currently being processed with a
parallel partnering process underway on the giant prospectivity
identified by the CPR on prospect LKP-1a (350mmbbls gross mean
prospective resources) and through internal estimates on the
Kenitra-A lead (464mmbbls gross mean prospective resources).
Chariot has commenced preparations for drilling in both Namibia
and Morocco to enable the Company to move ahead with drilling in a
timely manner. This includes Environment Impact Assessment
submissions, pore pressure analysis and detailed well engineering
work on candidate prospects. The Company is also undertaking a
contract strategy to identify appropriate drilling units, long lead
items such as wellheads and tubulars, auxiliary services and
logistic base for well services, supplies, helicopters and medivac.
This process will be managed in-house, led by David Brecknock who
will be joining Chariot's management team. David has held a wide
variety of drilling operations and management roles principally in
deepwater drilling and has over 20 years of international
experience gained with Enterprise, Shell, BG, Devon, Perenco and
Ophir. David will be supported by Robert Mwanachilenga, Country
Manager and Senior Staff Drilling Engineer, Namibia who was
responsible for in-country support for the Tapir South-1 deep water
well operated by Chariot in 2012.
Chariot has continued to actively manage its portfolio. In line
with its focus on its lowest risk, high margin prospects, the
Company reported in August that it had decided not to enter the
next period of exploration in the Southern Blocks, Namibia.
However, in recognition of its technical understanding of the
region, the Company was offered and agreed to an option to back-in
for 10% equity after the completion of future exploration drilling
for no financial consideration in exchange for facilitating
NAMCOR's partnering programme in this licence. In doing so, the
Company still retains exposure to the upside on this acreage,
whilst being able to streamline its funds on maturing its near-term
drilling inventory.
As part of this focus, the team has continued to seek out
value-accretive new ventures such as that of the Mohammedia permit
in 2016 and, during this period, Kenitra, offshore Morocco, locking
in additional prospectivity and, in the success case, follow-on
potential from the JP-1 prospect. Crucial to these achievements is
Chariot's team which is able to act quickly and efficiently where
it sees opportunity owing to its in-depth technical knowledge and
understanding of application processes achieved through carrying
out all of its work in-house - something it will continue to
leverage as the portfolio progresses.
In working towards the longer-term prospect inventory, the team
is currently completing its analysis of the legacy 2D and
proprietary 3D seismic data across its Brazilian licences with the
aim of opening a dataroom in the latter part of this year. It is
intended that partnering and a drilling campaign within this
acreage along with any additional new ventures will secure the
longevity of the Company's drilling campaign and extend follow-on
potential beyond the current portfolio.
Chariot has been able to make this continued investment in the
portfolio owing to its ongoing focus on capital discipline and
portfolio management. Through its continued efforts to protect its
cash position, supported by its prudent decisions on expenditure
and a continued reduction in its annual cash overheads, now below
US$5 million which is half that of 2012, the Company has a fully
described drill-ready prospect inventory. This, combined with the
team's ability to identify and focus on its high margin, deepwater
assets which remain commercially attractive even in a lower oil
price environment means that it remains confident in its ability to
drill wells in the near-term with the aim of discovering material
accumulations of hydrocarbons to deliver transformational
value.
Operational Review
Morocco
Rabat Deep (Eni (Operator) 40%; Woodside 25%; ONHYM 25%; Chariot
10%; no remaining unfunded commitments)
Following completion of the farm-out to Eni in Q1, 2017, which
included a capped carry on the drilling of the RD-1 well, targeting
the JP-1 prospect with 768mmbbls gross mean prospective resources,
the Saipem 12000, a sixth generation ultra-deep-water drillship,
has been secured for a drilling programme to include a one-well
drilling slot in Rabat Deep Offshore. It is currently anticipated
that the rig will arrive on location in the latter part of Q1 2018
and that the drilling will commence shortly thereafter.
Mohammedia and Kenitra (Operator 75%; ONHYM 25%; no remaining
commitments)
Chariot has used its regional depth of understanding of the
petroleum systems to expand its portfolio in Morocco, securing
first the Mohammedia Offshore Permits in June 2016 and then, in
early 2017, the Kenitra Permit, in line with its new venture
strategy. These licence areas capture material prospectivity that
has the potential to be significantly de-risked by the drilling of
the RD-1 well.
In Q1 2017, Chariot carried out a rigorous tendering process to
secure a seismic campaign that would complete the data coverage
over the LKP group of prospects and leads, as well as that of
Kenitra-A, at favourable rates. This seismic campaign comprised
1,027km(2) of 3D and 2,254km of 2D data acquisition which is now
complete, fulfilling all licence commitments, and processing is
underway. A partnering process on the already identified and
independently audited LKP-1a prospect (350mmbbls gross mean
prospective resources), and for the internally assessed Kenitra-A
lead (464mmbbls gross mean prospective resources) is ongoing, with
the aim of incorporating at least one of these prospects in the
Company's upcoming drilling programme.
Chariot has commenced preparations for drilling in Morocco. This
includes Environment Impact Assessment submission, pore pressure
analysis and detailed well engineering work on candidate
prospects.
Namibia ("Central Blocks") (Operator 65%, AziNam 20%; NAMCOR
10%; Ignitus 5%; no remaining commitments)
Following an extensive evaluation of the combined 6,100 km(2) 3D
seismic dataset, completed in 2016, Chariot has identified five new
structural prospects which have been independently audited by
Netherland Sewell and Associates ("NSAI") who estimate gross mean
prospective resources for each prospect ranging from 283 -
459mmbbls. A partnering process has been initiated with the aim of
undertaking drilling in H2 2018.
As with the Mohammedia and Kenitra acreage, drilling
preparations are underway for the new prospects in the Central
Blocks with an Environmental Impact Assessment and associated
studies in progress.
Brazil (Operator 100%; no remaining commitments)
Seismic interpretation of the legacy 2D and proprietary 3D data
is in its final stages, with encouraging early results. Upon
completion, the dataroom on these licences will open in Q4 2017
with the aim of adding further drilling to the portfolio in
2019.
Financial Review
The Group is debt free and had a cash balance of US$21.7 million
at 30 June 2017 (US$29.0 million at 30 June 2016; US$25.0 million
at 31 December 2016).
Other administrative expenses of US$1.4 million (30 June 2016:
US$2.0 million) are lower due to continued capital discipline and
the prior period including the costs of reducing head count as
announced in May 2016.
The relinquishment of the Southern Blocks offshore Namibia
resulted in a US$51.3 million non-cash impairment against
previously capitalised costs compared to US$5.2 million in 2016 due
to the relinquishment of the C-19 licence in Mauritania.
Finance income of US$0.1 million (30 June 2016: US$2.3 million)
is lower primarily due to a 2016 foreign exchange gain, due to the
strengthening of the Brazilian Real, on cash held as security
against licence work commitments. This gain was crystallised around
the 2016 year end when, subsequent to the completion of the
Brazilian seismic campaign, the security against the Brazilian Real
cash was almost completely released and the bulk of the Brazilian
Real cash was converted into US Dollars.
Share-based payments charges of US$0.3 million are lower than
the US$0.4 million incurred for the six months ended 30 June 2016
due to the vesting of historic awards of employee deferred
shares.
Net cash outflow from operating activities before changes in
working capital of US$1.3 million is lower than the US$2.0 million
for the six months ended 30 June 2016 due to cost savings in other
administrative expenses.
Capitalised exploration costs in the period of US$5.5 million
(30 June 2016: US$14.3 million) were funded by existing cash,
working capital movements and farm-in proceeds.
Outlook
Chariot's strict capital discipline and adherence to its risk
management strategy has enabled it to continue to invest in the
development of its portfolio, resulting in a diverse and extensive
drilling inventory with four priority prospects. The team aims to
drill three of these giant potential prospects in the near-term at
the same time as continuing to access and de-risk additional high
potential assets to create a sustainable prospect inventory of high
quality drilling opportunities for the future.
The team will thus continue its strategic focus to develop the
portfolio for both near and long-term material growth. Having
secured one capped well carry, the priority is to prepare all long
lead drilling logistics and to secure funding for the second and
third wells of our upcoming drilling campaign in Namibia and
Morocco. At the same time, with its robust cash balance and
streamlined annual cash overheads, the team is well positioned to
continue to look to capitalise on the current business environment
in order to develop the long-term portfolio and secure any assets
that we believe to be value accretive. It is thus that we hope to
create a continuous cycle of growth and the possibility for
multiple giant discoveries and, ultimately, the realisation of
transformational value to shareholders.
Larry Bottomley
Chief Executive Officer
12 September 2017
Chariot Oil & Gas Limited
Independent review report to Chariot Oil & Gas Limited
Introduction
We have been engaged by the company to review the condensed set
of consolidated financial statements in the half-yearly financial
report for the six months ended 30 June 2017 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 explanatory 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 condensed set of consolidated 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 condensed set of consolidated 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 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 Financial Reporting Council 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 (UK and Ireland) 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 condensed set of consolidated
financial statements in the half-yearly financial report for the
six months ended 30 June 2017 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
12 September 2017
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 2017
Six months Six months Year ended
ended 30 ended 31 December
June 2017 30 2016
June 2016
US$000 US$000 US$000
Notes Unaudited Unaudited Audited
Share based payments (345) (428) (787)
Impairment of exploration
asset 4 (51,307) (5,173) (5,173)
Other administrative
expenses (1,360) (2,012) (3,544)
------------------------------ ------- -------------- -------------- ---------------
Total operating expenses (53,012) (7,613) (9,504)
------------------------------ ------- -------------- -------------- ---------------
Loss from operations (53,012) (7,613) (9,504)
Finance income 92 2,298 2,831
Finance expense (46) - -
------------------------------ ------- -------------- -------------- ---------------
Loss for the period
before taxation (52,966) (5,315) (6,673)
Tax expense (23) (62) (159)
------------------------------ ------- -------------- -------------- ---------------
Loss for the period
and total comprehensive
loss for the period
attributable to equity
owners of the parent (52,989) (5,377) (6,832)
------------------------------ ------- -------------- -------------- ---------------
Loss per ordinary share 3 US$(0.20) US$(0.02) US$(0.03)
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 2017
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 2017
(unaudited)
As at 1
January 2017 4,874 340,633 796 3,714 (1,241) (206,570) 142,206
Loss and total
comprehensive
loss for the
period - - - - - (52,989) (52,989)
Share based
payments - - - 345 - - 345
Transfer of
reserves due
to issue of
share awards 2 42 - (44) - - -
As at 30 June
2017 4,876 340,675 796 4,015 (1,241) (259,559) 89,562
---------------- ------------ ------------ -------------- ------------ ------------ ------------ --------------
For the six
months ended
30 June 2016
(unaudited)
As at 1
January 2016 4,811 339,654 796 4,280 (1,241) (200,049) 148,251
Loss and total
comprehensive
loss for the
period - - - - - (5,377) (5,377)
Share based
payments - - - 428 - - 428
Transfer of
reserves due
to
issue of
share awards 46 644 - (690) - - -
As at 30 June
2016 4,857 340,298 796 4,018 (1,241) (205,426) 143,302
---------------- ------------ ------------ -------------- ------------ ------------ ------------ --------------
For the year ended 31 December 2016
(audited)
As at 1 January 2016 4,811 339,654 796 4,280 (1,241) (200,049) 148,251
Loss and total comprehensive loss for the
year - - - - - (6,832) (6,832)
Share based payments - - - 787 - - 787
Transfer of reserves due to issue of share
awards 63 979 - (1,042) - - -
Transfer of reserves due to lapsed share
options - - - (311) 311 -
As at 31 December 2016 4,874 340,633 796 3,714 (1,241) (206,570) 142,206
--------------------------------------------- ------- --------- ----- --------- --------- ----------- ---------
Chariot Oil & Gas Limited
Consolidated statement of financial position as at 30 June
2017
30 June 30 June 31 December
2017 2016 2016
US$000 US$000 US$000
Notes Unaudited Unaudited Audited
Non-current assets
Exploration and appraisal
costs 4 70,889 117,545 119,730
Property, plant and
equipment 52 40 36
------------------------------ ------- ----------- ----------- -------------
Total non-current assets 70,941 117,585 119,766
------------------------------ ------- ----------- ----------- -------------
Current assets
Trade and other receivables 1,507 1,850 2,123
Inventory 480 938 938
Cash and cash equivalents 5 21,651 29,036 25,021
------------------------------ ------- ----------- ----------- -------------
Total current assets 23,638 31,824 28,082
------------------------------ ------- ----------- ----------- -------------
Total assets 94,579 149,409 147,848
------------------------------ ------- ----------- ----------- -------------
Current liabilities
Trade and other payables 5,017 6,107 5,642
Total current liabilities 5,017 6,107 5,642
------------------------------ ------- ----------- ----------- -------------
Total liabilities 5,017 6,107 5,642
------------------------------ ------- ----------- ----------- -------------
Net assets 89,562 143,302 142,206
------------------------------ ------- ----------- ----------- -------------
Capital and reserves
attributable to equity
holders of the parent
Share capital 6 4,876 4,857 4,874
Share premium 340,675 340,298 340,633
Contributed equity 796 796 796
Share based payment
reserve 4,015 4,018 3,714
Foreign exchange reserve (1,241) (1,241) (1,241)
Retained deficit (259,559) (205,426) (206,570)
------------------------------ ------- ----------- ----------- -------------
Total equity 89,562 143,302 142,206
------------------------------ ------- ----------- ----------- -------------
Chariot Oil & Gas Limited
Consolidated cash flow statement for the six months ended 30
June 2017
Six months Six months Year ended
ended ended 31 December
30 30 June 2016
June 2017 2016
US$000 US$000 US$000
Unaudited Unaudited Audited
------------------------------------- -------------- -------------- ---------------
Operating activities
Loss for the period before
taxation (52,966) (5,315) (6,673)
Adjustments for:
Finance income (92) (2,298) (2,831)
Finance expense 46 - -
Depreciation 11 23 39
Share based payments 345 428 787
Impairment of exploration
asset 51,307 5,173 5,173
------------------------------------- -------------- -------------- ---------------
Net cash outflow from operating
activities before changes
in working capital (1,349) (1,989) (3,505)
Decrease / (increase) in
trade and other receivables 621 (586) (854)
Increase in trade and other
payables 141 1,144 604
Decrease in inventories 458 - -
------------------------------------- -------------- -------------- ---------------
Cash outflow from operating
activities (129) (1,431) (3,755)
Tax payment (30) (67) (161)
------------------------------------- -------------- -------------- ---------------
Net cash outflow from operating
activities (159) (1,498) (3,916)
------------------------------------- -------------- -------------- ---------------
Investing activities
Finance income 88 616 1,205
Payments in respect of property,
plant and equipment (28) (1) (13)
Recovery of back costs 3,000 - -
Payments in respect of exploration
assets (6,225) (11,484) (13,596)
Net cash outflow used in
investing activities (3,165) (10,869) (12,404)
------------------------------------- -------------- -------------- ---------------
Net decrease in cash and
cash equivalents in the
period (3,324) (12,367) (16,320)
Cash and cash equivalents
at start of the period 25,021 39,713 39,713
Effect of foreign exchange
rate changes on cash and
cash equivalent (46) 1,690 1,628
Cash and cash equivalents
at end of the period 21,651 29,036 25,021
------------------------------------- -------------- -------------- ---------------
Chariot Oil & Gas Limited
Notes to the interim financial statements for the six months
ended 30 June 2017
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 2016. 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 2017
to 30 June 2017 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 2016 to 30 June 2016 and the audited
figures for the year ended 31 December 2016.
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 2016 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 30 ended 30 31 December
June 2017 June 2016 2016
-------------------------- ------------- ------------- --------------
Loss for the period
US$000 (52,989) (5,377) (6,832)
-------------------------- ------------- ------------- --------------
Weighted average number
of shares 268,471,719 264,581,961 266,296,528
-------------------------- ------------- ------------- --------------
Loss per share, basic US$(0.20) US$(0.02) US$(0.03)
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 2016 Year
2017 ended 31 December 2016
-------------------------- ------------------------------ ------------------------------- -------------------------
US$000 US$000 US$000
-------------------------- ------------------------------ ------------------------------- -------------------------
Balance brought forward 119,730 108,438 108,438
-------------------------- ------------------------------ ------------------------------- -------------------------
Additions 5,466 14,280 16,465
-------------------------- ------------------------------ ------------------------------- -------------------------
Farm-in proceeds (3,000) - -
-------------------------- ------------------------------ ------------------------------- -------------------------
Impairment (51,307) (5,173) (5,173)
-------------------------- ------------------------------ ------------------------------- -------------------------
Net book value 70,889 117,545 119,730
-------------------------- ------------------------------ ------------------------------- -------------------------
As at 30 June 2017 the net book values of the four cost pools
are Central Blocks offshore Namibia US$50.1 million (31 December
2016: US$49.8 million), Southern Blocks offshore Namibia US$Nil (31
December 2016: US$51.0 million), Morocco US$6.6 million (31
December 2016: US$5.0 million) and Brazil US$14.2 million (31
December 2016: US$13.9 million).
Farm-in proceeds are in relation to the completion of the
farm-out of 40% of the Rabat Deep Offshore permits I-VI, Morocco,
to a wholly owned subsidiary of Eni, which was announced on 9
January 2017.
As announced on 16 June 2016 the Company elected not to enter
into the First Renewal Phase of the C-19 licence in Mauritania
causing an impairment of US$5.2 million.
On 29 August 2017 the Company announced that it had elected not
to enter into the First Renewal Exploration Period of the Southern
Blocks offshore Namibia. The Company considers the impairment of
US$51.3 million is reflective of the Southern Blocks offshore
Namibia having no value at 30 June 2017.
5. Cash and cash equivalents
As at 30 June 2017 the cash balance of US$21.7 million (31
December 2016: US$25.0 million) contains the following cash
deposits that are secured against bank guarantees given in respect
of exploration work to be carried out:
30 June 2017 30 June 2016 31 December 2016
--------------------- -------------- -------------- ------------------
US$000 US$000 US$000
--------------------- -------------- -------------- ------------------
Brazilian licences 101 8,709 103
--------------------- -------------- -------------- ------------------
Moroccan licences 7,250 2,750 5,750
--------------------- -------------- -------------- ------------------
Namibian licence 300 300 300
--------------------- -------------- -------------- ------------------
7,651 11,759 6,153
--------------------- -------------- -------------- ------------------
The funds are freely transferrable but alternative collateral
would need to be put in place to replace the cash security.
6. Share capital
Allotted, called up and fully paid
----------- ------------------------------------------------------------------------------------
At 30 At 30 At 30 At 30 At 31 At 31
June 2017 June June 2016 June December December
2017 2016 2016 2016
----------- --------------- --------- --------------- --------- --------------- -----------
Number US$000 Number US$000 Number US$000
----------- --------------- --------- --------------- --------- --------------- -----------
Ordinary
shares
of 1p
each 268,522,457 4,876 267,247,191 4,857 268,352,392 4,874
----------- --------------- --------- --------------- --------- --------------- -----------
Details of the Ordinary shares issued during the six month
period to 30 June 2017 are given in the table below:
Date Description Price No of shares
US$
--------------- ----------------------- ------- --------------
1 January
2017 Opening Balance 268,352,392
--------------- ----------------------- ------- --------------
23 Feb 2017 Issue of share award 0.30 129,601
--------------- ----------------------- ------- --------------
23 Feb 2017 Issue of share award 0.14 40,464
--------------- ----------------------- ------- --------------
30 June 2017 268,522,457
---------------------------------------- ------- --------------
The ordinary shares have a nominal value of 1p. The share
capital has been translated at the historic rate at the date of
issue, or, in the case of the LTIP, the date of grant.
7. Events after the reporting period
On 29 August 2017 the Company announced that it had elected not
to enter into the First Renewal Exploration Period of the licences
covering the Southern Blocks 2714A and 2714B offshore Namibia, and
has secured an option to back-in for 10% equity at no cost after
exploration drilling.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR QLLFFDKFLBBK
(END) Dow Jones Newswires
September 13, 2017 02:00 ET (06:00 GMT)
Chariot (LSE:CHAR)
Historical Stock Chart
From Mar 2024 to Apr 2024
Chariot (LSE:CHAR)
Historical Stock Chart
From Apr 2023 to Apr 2024