TIDMCLON
RNS Number : 1947A
Clontarf Energy PLC
28 May 2019
28 May 2019
Clontarf Energy plc
("Clontarf" or "the Company")
Preliminary Results for the Year Ended 31 December 2018
Clontarf Energy, the oil and gas exploration company focused on
Ghana and Bolivia today announces its preliminary results for the
year ending 31 December 2018.
This announcement contains inside information for the purposes
of Article 7 of Regulation 596/2014.
For further information please visit http://clontarfenergy.com
or contact:
Clontarf Energy
John Teeling, Chairman
David Horgan, Director +353 (0) 1 833 2833
Nominated & Financial Adviser +44 (0) 20 7409 3494
Strand Hanson Limited
Rory Murphy
Ritchie Balmer
Georgia Langoulant
Broker +44 (0) 207 399 9400
Novum Securities Limited
Colin Rowbury
Public Relations
Blytheweigh +44 (0) 207 138 3206
Julia Tilley +44 (0) 207 138 3553
Fergus Cowan +44 (0) 207 138 3208
Teneo +353 (0) 1 661 4055
Luke Hogg +353 (0) 1 661 4055
Alan Tyrrell
Statement Accompanying the Final Results
I write this statement as the bear market in junior exploration
investments continues. Many of us have experienced previous price
volatility but this extended depression is causing even the most
optimistic investors to consider their position. Many have given up
and sold out further depressing prices as there are few, if any,
new buyers. But Clontarf is an AIM quoted company with thousands of
shareholders, interesting investment opportunities, an experienced
board and some good financial supporters. We will continue until
the sector recovers.
Our focus is on energy. Finding new sources. We are early stage
grass root explorers. This means we seek out high potential
opportunities often in areas where more established conservative
companies will not go. When we have a discovery we expect to do
very well. But high potential almost always comes with high risk of
failure due to geological, political factors or technical
factors.
Our geographic focus is, and has been, on West Africa and
Bolivia. We concluded an onshore / offshore licence agreement in
Ghana more than ten years ago. It is still not ratified. We have
had a presence in Bolivia since 1988. We were nationalised without
compensation in 2006 but have maintained a presence there which at
long last may result in opportunities.
Last year I wrote about an opportunity in Equatorial Guinea in
West Africa. I indicated that there were problems about finalising
the award of Block 18. These complications proved impossible to
overcome and we declined to proceed. We have recently been invited
to tender for another block. The costs involved in the application
make it unlikely that we will apply.
What can I say about our status in Ghana which has not already
been mentioned? Progress is slow. Our core strength is a court
order stipulating that we have a legitimate right to Block 2A in
the Tano basin. Implementing the order is proving a mammoth task.
Governments changed, co-ordinates changed while discussions
continued. The procedure involves agreement with the Ghanaian
National Petroleum Company (GNPC). Then cabinet approval, followed
by parliamentary approval. We have GNPC agreement but so far no
cabinet approval.
The opportunity in Ghana oil remains. More discoveries have been
made and the country has become a significant oil producer during
the time our saga has continued. We are frustrated, we have spent
time and money in the country. We remain hopeful of an
agreement.
Persistence might pay off in Bolivia.
Bolivia is a resource rich country in South America with
extensive hydrocarbon and lithium resources. We held two oil / gas
assets in Bolivia both now written off and carried at no value in
our books. We also attempted to develop relationships with Bolivian
authorities to explore and if possible develop lithium
opportunities. Lithium is a vital energy resource for batteries.
Bolivia is thought to hold over half the world's resources in the
form of brines containing lithium in twenty eight salt pans. Some
years ago Clontarf worked with the military authorities on a
lithium study but the legal position was unclear and nothing came
of the work. With the encouragement of the Bolivian authorities we
have again worked on potential opportunities. We carried out
initial prospecting and sampling and have made formal application
for an exploration / development permit on a number of small salt
pans. Should we be successful in reaching an agreement we would
undertake a detailed exploration programme. Exploring at above
4,500 metres is not easy but we have prior experience of the Andean
altiplano.
There is a small glimmer of hope that certain of our former
hydrocarbon assets may be recoverable in some form. To assist
Clontarf in Bolivia we welcomed Mr. Peter O'Toole to the board as a
non-executive director. Mr. O'Toole has over 30 year in industrial,
commercial and construction experience in Bolivia and has been for
a number of years the Irish consul in Bolivia.
During the year we raised GBP500,000 in new funds to fund
working capital.
We share the concerns and frustration of shareholders who have
waited for years for positive news. There has been a number of
false dawns. All I can offer my fellow shareholders is hope, hope
that at long last some genuine opportunities will be open to our
company.
John Teeling
Chairman
27(th) May 2019
CLONTARF ENERGY PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEARED 31 DECEMBER 2018
2018 2017
CONTINUING OPERATIONS GBP GBP
REVENUE - -
Cost of sales - -
GROSS PROFIT - -
Administrative expenses (238,871) (226,410)
Impairment of exploration and evaluation assets (111,682) (2,551,985)
LOSS BEFORE TAXATION (350,553) (2,778,395)
Income tax expense - -
LOSS FOR THE YEAR AND TOTAL
COMPREHENSIVE INCOME (350,553) (2,778,395)
LOSS PER SHARE - Basic and
diluted (0.06p) (0.48p)
CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2018
2018 2017
GBP GBP
ASSETS:
NON CURRENT ASSETS
Intangible assets 817,865 703,023
817,865 703,023
CURRENT ASSETS
Other receivables 3,909 3,809
Cash and cash equivalents 511,564 433,680
515,473 437,489
TOTAL ASSETS 1,333,338 1,140,512
LIABILITIES:
CURRENT LIABILITIES
Trade payables (56,138) (67,759)
Other payables (1,070,567) (980,567)
(1,126,705) (1,048,326)
TOTAL LIABILITIES (1,126,705) (1,048,326)
NET ASSETS 206,633 92,186
EQUITY
Called-up share capital 1,792,450 1,454,612
Share premium 10,900,373 10,773,211
Retained deficit (12,677,836) (12,327,283)
Share based payment reserve 191,646 191,646
TOTAL EQUITY 206,633 92,186
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEARED 31 DECEMBER 2018
Called-up Share Based
Share Share Payment Retained
Capital Premium Reserve Deficit Total
GBP GBP GBP GBP GBP
At 1
December
2017 1,454,612 10,773,211 191,646 (9,548,888) 2,870,581
Loss for
the year - - - (2,778,395) (2,778,395)
At 31
December
2017 1,454,612 10,773,211 191,646 (12,327,283) 92,186
Shares
issued 337,838 162,162 - - 500,000
Share
issue
expenses - (35,000) - - (35,000)
Loss for
the year - - - (350,553) (350,553)
At 31
December
2018 1,792,450 10,900,373 191,646 (12,677,836) 206,633
Share premium
The share premium reserve comprises of a premium arising on the
issue of shares.
Share based payment reserve
The share based payment reserve arises on the grant of share
options under the share option plan.
Retained deficit
Retained deficit comprises of losses incurred in 2017 and prior
years.
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEARED 31 DECEMBER 2018
2018 2017
GBP GBP
CASH FLOW FROM OPERATING
ACTIVITIES
Loss for financial year (350,553) (2,778,395)
Adjusted for:
Impairment of exploration and
evaluation assets 111,682 2,551,985
Exchange movement 2,705 3,493
(236,166) (222,917)
MOVEMENTS IN WORKING CAPITAL
Increase in payables 48,379 74,657
(Increase)/Decrease in trade
and other receivables (100) 1,464
CASH USED BY OPERATIONS (187,887) (146,796)
NET CASH USED IN OPERATING
ACTIVITIES (187,887) (146,796)
CASH FLOWS FROM INVESTING
ACTIVITIES
Payments for exploration and
evaluation assets (196,524) (93,229)
NET CASH USED IN INVESTING
ACTIVITIES (196,524) (93,229)
CASH FLOWS FROM FINANCING
ACTIVITIES
Proceeds from issue of shares 500,000 -
Share issue expenses (35,000) -
NET CASH GENERATED BY FINANCING 465,000 -
ACTIVITIES
NET INCREASE/(DECREASE) IN CASH
AND CASH EQUIVALENTS 80,589 (240,025)
Cash and cash equivalents at
beginning of the financial
year 433,680 677,198
Effect of exchange rate changes
on cash held in
foreign currencies (2,705) (3,493)
Cash and cash equivalents at
end of the financial year 511,564 433,680
Notes:
1. ACCOUNTING POLICIES
There were no changes in accounting policies from those used to
prepare the Group's Annual Report for financial year ended 31
December 2017. The financial statements have been prepared in
accordance with International Financial Reporting Standards and
IFRSs as adopted by the European Union and in accordance with the
Companies Act 2006.
2. LOSS PER SHARE
Basic loss per share is computed by dividing the loss after
taxation for the year available to ordinary shareholders by the
weighted average number of ordinary shares in issue and ranking for
dividend during the year. Diluted earnings per share is computed by
dividing the loss after taxation for the year by the weighted
average number of ordinary shares in issue, adjusted for the effect
of all dilutive potential ordinary shares that were outstanding
during the year.
The following table sets out the computation for basic and
diluted earnings per share (EPS):
2018 2017
GBP GBP
Numerator
For basic and diluted EPS (350,553) (2,778,395)
Denominator
For basic and diluted EPS 619,608,620 581,844,829
Basic EPS (0.06p) (0.48p)
Diluted EPS (0.06p) (0.48p)
Basic and diluted loss per share is the same as the effect of
the outstanding share options is anti-dilutive and is therefore
excluded.
3. GOING CONCERN
The Group incurred a loss for the year of GBP350,553 (2017:
GBP2,778,395) and had net current liabilities of GBP611,232 (2017:
GBP610,837) at the balance sheet date.
Included in current liabilities is an amount of GBP1,070,567
(2017: GBP980,567) owed to directors in respect of directors'
remuneration due at the balance sheet date. The directors have
confirmed in writing that they will not seek settlement of these
amounts in cash for a period of at least one year after the date of
approval of the financial statements or until the group has
generated sufficient funds from its operations after paying its
third party creditors.
The Group had a cash balance of GBP511,564 at the balance sheet
date and approximately GBP430,000 as of today. Cashflow projections
prepared by the directors indicate that the funds available are
sufficient to meet the obligations of the Group for a period of at
least twelve months from the date of approval of these financial
statements.
As in previous years the Directors have given careful
consideration to the appropriateness of the going concern basis in
the preparation of the financial statements and believe the going
concern basis is appropriate for these financial statements. The
financial statements do not include the adjustments that would
result if the group was unable to continue as a going concern.
4. INTANGIBLE ASSETS
2018 2017
Group Group
GBP GBP
Exploration and evaluation
assets:
Cost:
At 1 January 8,301,553 8,178,324
Additions during the year 226,524 123,229
At 31 December 8,528,077 8,301,553
Impairment:
At 1 January 7,598,530 5,046,545
Impairment during the year 111,682 2,551,985
At 31 December 7,710,212 7,598,530
Carrying Value:
At 1 January 703,023 3,131,779
At 31 December 817,865 703,023
Segmental analysis 2018 2017
Group Group
GBP GBP
Peru - -
Ghana 817,865 703,023
817,865 703,023
Exploration and evaluation assets relates to expenditure
incurred in prospecting and exploration for oil and gas in Peru,
Ghana and Equatorial Guinea. The directors are aware that by its
nature there is an inherent uncertainty in such development
expenditure as to the value of the asset.
On 26 September 2017 the board of Clontarf Energy had been
informed that Union Oil (the 80% owner of the concession held in
Peru) had returned to the Peruvian Authorities the licence held on
Block 183. They gave as their reason an inability over a 3 year
period to obtain the permits, particularly environmental permits,
necessary to explore.
Clontarf held a 3% royalty on revenue arising from future
operations on the Block. Clontarf did not incur any liabilities as
a result of Union Oil's decision but has written off the carrying
value of the asset. Accordingly an impairment charge of
GBP2,473,538 in respect of the full carrying value of the Group'
Peruvian assets has been recorded by the Group in the prior
year.
During the year the Group incurred expenditure of GBP111,682
(2017: GBP78,447) on evaluating licences in Equatorial Guinea. An
impairment charge of GBP111,682 has been recorded by the Group in
the current year in respect of those licences.
On 17 September 2018, the Company announced that the Directors
believe they have resolved the outstanding issues with The Ghana
National Petroleum Corporation (GNPC) regarding a contract for the
development of the Tano 2A Block. As such, all legal proceedings
have been withdrawn by the Company and the Company looks forward to
making further announcements regarding the Petroleum Agreement in
due course
The realisation of these intangible assets is dependent on the
discovery and successful development of economic oil and gas
reserves, the ongoing title to the license, the ability of the
company to finance the development of the asset and on the future
profitable production or process from the asset which is affected
by the uncertainties outlined above and risks outlined below:
-- licence obligations
-- requirement for further funding
-- geological and development risks
-- title to assets
-- political risk
Should this prove unsuccessful the value included in the balance
sheet would be written off to the statement of comprehensive
income.
5. TRADE PAYABLES
2018 2017
Group Group
GBP GBP
Trade payables 40,138 51,759
Other accruals 16,000 16,000
56,138 67,759
It is the Company's normal practice to agree terms of
transactions, including payment terms, with suppliers and provided
suppliers perform in accordance with the agreed terms, payment is
made accordingly. In the absence of agreed terms it is the
Company's policy that payment is made between 30 - 40 days. The
carrying amount of trade and other payables approximates to their
fair value.
6. OTHER PAYABLES
2018 2017
Group Group
GBP GBP
Amounts due to directors 1,070,567 980,567
1,070,567 980,567
Other payables relate to amounts due to directors' remuneration
of GBP1,070,567 (2017: GBP980,567) accrued but not paid at year
end.
7. CALLED-UP SHARE CAPITAL
Allotted, called-up and fully paid:
Number Share Capital Share Premium
GBP GBP
At 1
January
2017 581,844,829 1,454,612 10,773,211
Issued - - -
during
the year
At 31
December
2017 581,844,829 1,454,612 10,773,211
Issued
during
the year 135,135,135 337,838 162,162
Share
issue
expenses - - (35,000)
At 31
December
2018 716,979,964 1,792,450 10,900,373
Movements in issued share capital
On 20 September 2018 a total of 135,135,135 shares were placed
at a price of 0.37 pence per share. Proceeds were used to provide
additional working capital and fund development costs.
Share Options
A total of 8,900,000 share options were in issue at 31 December
2018 (2017: 8,900,000). These options are exercisable, at prices
ranging between 0.725p and 4.6p, up to seven years from the date of
granting of the options unless otherwise determined by the
board.
8. ANNUAL GENERAL MEETING
The Company's Annual General Meeting will be held on Thursday
27(th) June 2019 at Hilton Paddington Hotel, 146 Praed Street,
London, W2 1EE at 11.00 am.
9. GENERAL INFORMATION
The financial information set out above does not constitute the
Company's audited financial statements for the year ended 31
December 2018 or the year ended 31 December 2017. The financial
information for 2017 is derived from the financial statements for
2017 which have been delivered to the Registrar of Companies. The
auditors had reported on the 2017 statements; their report was
unqualified with an emphasis of matter in respect of considering
the adequacy of the disclosures made in the financial statements
concerning the valuation of intangible assets, and did not contain
a statement under section 498(2) or 498(3) of the Companies Act
2006. The financial statements for 2018 will be delivered to the
Registrar of Companies.
A copy of the Company's Annual Report and Accounts for 2018 will
be mailed shortly only to those shareholders who have elected to
receive it. Otherwise, shareholders will be notified that the
Annual Report will be available on the website
www.clontarfenergy.com . Copies of the Annual Report will also be
available for collection from the Company's registered office,
Suite 1, 3(rd) Floor, 11-12 St. James's Square, London, SW1Y
4LB.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
FR EASSLALXNEFF
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