RNS Number:0791E
Global Energy Development PLC
19 September 2007
For Immediate Release 19 September 2007
GLOBAL ENERGY DEVELOPMENT PLC
("Global" or the "Company")
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2007
Global Energy Development PLC, the Latin America focused petroleum exploration
and production company (LSE-AIM: "GED"), announces unaudited interim results for
the six months ended 30 June 2007.
Financial Highlights:
* Turnover up 21.6% to $10,954,000 (six months ended 30 June 2006:
$9,006,000);
* Gross profit up 55.7% to $5,611,000 (six months ended 30 June 2006
(restated*): $3,603,000) despite industry costs rising in general;
* Profit on ordinary activities before tax up 119.3% to $2,333,000 (six
months ended 30 June 2006 (restated*): $1,064,000);
* Average cash netback per barrel of $20.49 (six months ended 30 June 2006
(restated*): $23.13);
* Capital expenditure of $10,310,000, predominately related to delineation
drilling on the Colombian Luna Llena contract during the period; and
* Gross production up 22.6% at 242,693 barrels of oil ("bbls") (six months
ended 30 June 2006: 197,960 bbls).
* These interim results are the Company's first results to be reported in
accordance with International Financial Reporting Standards ("IFRS") and the
comparative financial information for the six months ended 30 June 2006, and the
year ended 31 December 2006, has been restated accordingly. The percentages
given within this announcement are calculated using the restated financial
information for the six months ended 30 June 2006, and the year ended 31
December 2006.
For further information:
Global Energy Development PLC +44 (0) 20 7763 7177
Catherine Miles, Company Secretary +44 (0) 79 0991 8034
www.globalenergyplc.com
Notes to Editors:
The Company's shares have been traded on AIM, a market operated by the London
Stock Exchange, since March 2002 (LSE-AIM: 'GED'). The Company's balanced
portfolio covers the countries of Colombia, Peru and Panama and comprises a base
of production, developmental drilling and workover opportunities and several
high-potential exploration projects.
Ryder Scott Company, LP ("Ryder Scott"), the independent petroleum consultancy
firm, reported that as at 31 December 2006, proved reserves net to the Company
totalled 5.5 million barrels of oil equivalent ("mmboe"), proved plus probable
('2P') reserves net to the Company totalled 19.4 mmboe and proved plus probable
plus possible ('3P') reserves net to the Company totalled 81.8 mmboe.
Proven and probable oil and gas reserves are estimated quantities of
commercially producible hydrocarbons which the existing geological, geophysical
and engineering data show to be recoverable in future years from known
reservoirs. The proved reserves reported by Ryder Scott conform to the
definition approved by the Society of Petroleum Engineers ("SPE") and the World
Petroleum Congress ("WPC"). The probable and possible reserves reported by
Ryder Scott conform to definitions of probable and possible reserves approved by
the SPE/WPC using the deterministic methodology.
The information contained within this announcement has been reviewed by Ryder
Scott.
These interim financial statements do not constitute statutory accounts within
the meaning of section 240 of the Companies Act 1985. The comparative figures
for the financial year ended 31 December 2006 are not the Company's full
statutory accounts for that year. A copy of the statutory accounts for that
year has been delivered to the Registrar of Companies. The auditors' report on
those accounts was unqualified, did not include references to any matters to
which the auditors drew attention by way of emphasis without qualifying their
report and did not contain statements under the Companies Act 1985, s237(2) or
(3). The comparative figures for the financial year ended 31 December 2006 have
been abridged from the Group's statutory accounts for that financial year,
translated from United Kingdom Generally Accepted Accounting Principles (UK
GAAP) to IFRS. The UK GAAP version of those accounts have been reported on by
the Group's auditors and delivered to the Registrar of Companies.
Chairman and Managing Director's Statement
Financials
These interim results are the Company's first results to be prepared using the
recognition of measurement principles of International Financial Reporting
Standards ("IFRS") and the financial statements for the year ended 31 December
2007 will be the Company's first to be reported in accordance with IFRS. The
comparative financial information for the six months ended 30 June 2006 and the
year ended 31 December 2006 has been restated accordingly. The impact of
adopting IFRS is disclosed within the Notes to the Financial Information section
of this announcement and additional information is also available on the
Company's website at www.globalenergyplc.com.
Turnover for the six months ended 30 June 2007 was $10,954,000, an increase of
21.6% against the same period in the prior year (six months ended 30 June 2006:
$9,006,000). This was despite a slightly lower average oil price during the
period and due to increased production volumes. There was a marginal reduction
in cost of sales during the period despite industry costs in general continuing
to rise with cost of sales totalling $5,343,000 (six months ended 30 June 2006
(restated): $5,403,000). As a consequence, gross profit for the six months ended
30 June 2007 increased by 55.7% to $5,611,000 (six months ended 30 June 2006
(restated): $3,603,000). General and administrative costs were higher at
$3,057,000 (six months ended 30 June 2006 (restated): $2,678,000). However, as
previously stated, during the period the Company took measures to reduce general
and administrative costs, mostly in the area of reducing non-core personnel.
Profit before tax increased by 119.3% to $2,333,000 (six months ended 30 June
2006 (restated): $1,064,000).
Gross production for the six months ended 30 June 2007 totalled 242,693 barrels
of oil ("bbls") (six months ended 30 June 2006: 197,960 bbls) with sales, net to
the Company, of 210,369 bbls (six months ended 30 June 2006: 171,444 bbls). The
Company's net sales were 86.7% of gross production highlighting the highly
competitive production-based royalties in Colombia, especially under the current
contract model.
The average price for West Texas Intermediate ("WTI") crude oil during the six
months ended 30 June 2007 was $61.59 against $67.02 during the same period in
the prior year and the Company averaged a cash netback per barrel of oil of
$20.49 and $23.13 respectively during the periods.
Net cash inflow from operating activities for the six months ended 30 June 2007
was $6,048,000 (six months ended 30 June 2006 (restated): $4,270,000). This
$6,048,000 together with available cash funded capital expenditure of
$10,310,000 during the six months ended 30 June 2007 (six months ended 30 June
2006 (restated): $10,219,000). The capital expenditure was predominately
focused on the Colombian Luna Llena contract where delineation drilling
activities occurred during the period.
Partnering and Operations
During the first half of 2007 the Company began undertaking commercial
discussions with potential partners for several of its projects to accelerate
its drilling programme and to aid in the effort of contracting the necessary
service equipment. The management believes that by bringing in partners across
its broad portfolio of development, exploitation and exploration projects it can
significantly increase activity rates and realise the potential of these highly
promising projects in a much shorter timeframe. Certain discussions are now
advanced covering several different projects.
The Company signed a further contract during the first half of 2007, the
Panamanian Garachine contract, the first operations contract signed by The
Ministry of Commerce and Industry for the Republic of Panama since 1990. The
management believe the area to have substantial exploration potential due to
having held the area previously under a Technical Evaluation Agreement and
having evaluated it for several years before signing the contract.
The Company is currently producing from five Colombian contracts and the decline
rate for this production during the first half of 2007 was only approximately
3%, around half of what was anticipated and substantially due to the continuing
strong production performance of the Tilodiran 2 well within the Rio Verde
contract.
During the first half of 2007 the Company undertook a delineation drilling
programme on the previously non-producing Colombian Luna Llena contract which
produced a positive test result from the second well. The Company is currently
finalising its plans for this contract area whilst the rainy season prohibits
further operations in the area.
Recent Corporate Activity
The Company announced on 13 September 2007 that it had received several
unsolicited expressions of interest from separate parties which may or may not
lead to an offer or offers being made for the Company. The announcement was made
as a result of the number of unsolicited approaches made, in accordance with
Rule 2.2(e) of The City Code on Takeovers and Mergers.
The Board of the Company is currently evaluating these expressions of interest,
which have mostly arisen out of the previously mentioned commercial discussions
the Company has been conducting over recent months with potential partners for
its projects. Further announcements in respect of any potential offer will be
made by the Company in due course.
Mikel Faulkner
Executive Chairman
Stephen Voss
Managing Director
19 September 2007
UNAUDITED FINANCIAL HIGHLIGHTS
for the six months ended 30 June 2007
(Figures in thousands except for per share information)
Six Months Six Months Twelve Months
Ending Ending 30 June Ending
30 June 2007 2006 31 December 2006
$000 $000 $000
Turnover 10,954 9,006 21,053
Expenditures on capital assets (restated) 10,310 10,219 15,431
Net current assets (restated) 4,285 3,904 9,797
Capital and Reserves (restated) 76,694 71,554 74,932
Basic earnings per share (restated) $0.04 $0.02 $0.08
Diluted Earnings per share (restated) $0.04 $0.01 $0.07
Weighted average ordinary shares outstanding
Basic 35,328,428 35,286,527 35,304,403
Diluted 39,893,455 41,475,589 39,869,430
Reserve information - as of 31 December 2006 (1)
Quantity Future NPV
(MBOE) Net Revenue At 10%
Thousands $000 $000
Proved 5,540 186,994 127,962
Probable 13,870 510,953 299,008
Total 19,410 697,947 426,970
Note (1):
The reserve information for Global Energy Development PLC has been certified by
a third-party firm, Ryder Scott Company, LP, at 31 December 2006.
Independent Review Report to the Board of Directors of Global Energy Development
PLC on the Financial Information for the Six Months Ended 30 June 2007
Introduction
We have been instructed by the Company to review the financial information for
the six months ended 30 June 2007 on pages 7 to 12. We have read the other
information contained in the interim report and considered whether it contains
any apparent misstatements or material inconsistencies with the financial
information.
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 the AIM Market of the London Stock
Exchange 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.
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 the AIM Market of
the London Stock Exchange 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.
Review work performed
We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board for use in the United Kingdom. A review
consists principally of making enquiries of management and applying analytical
procedures to the financial information and underlying financial data and based
thereon, assessing whether the accounting policies and presentation have been
consistently applied unless otherwise disclosed. A review excludes audit
procedures such as tests of controls and verification of assets, liabilities and
transactions. It is substantially less in scope than an audit performed in
accordance with International Standards on Auditing (UK and Ireland) and
therefore provides a lower level of assurance than an audit. Accordingly we do
not express an audit opinion on the financial information.
Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30 June 2007.
BDO STOY HAYWARD LLP
Chartered Accountants
London
19 September 2007
UNAUDITED CONSOLIDATED INCOME STATEMENT
for the six months ended 30 June 2007
Six Months (Restated) (Restated)
Ending Six Months Twelve Months
30 June 2007 Ending Ending
$000 30 June 2006 31 December 2006
$000 $000
Turnover 10,954 9,006
21,053
Cost of Sales (5,343) (5,403) (10,697)
Gross profit 5,611 3,603 10,356
Other income 61 247 200
Administrative Costs (3,057) (2,678) (6,131)
Finance Income 101 (108) 152
Finance Expense (383) - (610)
Profit before taxation 2,333 1,064 3,967
Income tax expense (796) (483) (984)
Profit for the period attributable to the 1,537 581 2,983
equity holders of the parent
Earnings per ordinary share
- Basic $0.04 $0.02 $0.08
- Diluted $0.04 $0.01 $0.08
UNAUDITED CONSOLIDATED BALANCE SHEET
as at 30 June 2007
Six Months (Restated) (Restated)
Ending Six Months Twelve Months
30 June 2007 Ending Ending
$000 30 June 2006 31 December 2006
$000 $000
Assets
Non-current assets
Intangible Assets 19,272 9,801 10,901
Property, plant and equipment 69,460 68,931 70,334
Total non-current assets 88,732 78,732 81,235
Current Assets
Inventories 1,142 706 996
Trade and other receivables 4,691 3,538 4,681
Short-term investments 1,010 868 893
Cash & cash equivalents 2,934 2,180 6,955
Total current assets 9,777 7,292 13,525
Total assets 98,509 86,024 94,760
Current liabilities
Trade and other payables (5,492) (3,388) (3,728)
Total current liabilities (5,492) (3,388) (3,728)
Non-current liabilities
Convertible loan notes (15,616) (10,482) (15,425)
Long term provisions (649) (600) (625)
Trade and other payables (58) - (50)
Total non-current liabilities (16,323) (11,082) (16,100)
Total liabilities (21,815) (14,470) (19,828)
Total net assets 76,694 71,554 74,932
Equity
Called up share capital 539 538 539
Share premium account 26,439 26,287 26,439
Other reserve 1,826 1,314 1,826
Capital reserve 210,844 210,844 210,844
Retained earnings (162,954) (167,429) (164,716)
Total Equity 76,694 71,554 74,932
UNAUDITED CONSOLIDATED CASH FLOW STATEMENT
for the six months ended 30 June 2007
Six Months (Restated) (Restated)
Ending Six Months Twelve Months
30 June 2007 Ending Ending
$000 30 June 2006 31 December 2006
$000 $000
Operating Activities
Profit before taxation 2,333 1,064 3,967
Depreciation, depletion and amortisation 2,309 1,947 4,342
(Increase)/decrease in trade and other -10 2,159 1,016
receivables
Increase/(decrease) in trade and other 1,764 -384 6
payables
Increase in inventories -146 -53 -343
Finance income -101 - -152
Accretion expense on convertible notes 88 - 180
Other non-cash items -1 -88 -2
Stock options expense 225 - 312
Cash generated from operations 6,461 4,645 9,326
Finance expense 383 108 430
Income taxes paid -796 -483 -985
Net cash provided by operating activities 6,048 4,270 8,772
Investing activity
Capital expenditure and financial investment
Expenditure on tangible fixed assets -1,952 -10,219 -13,658
Expenditure on intangible fixed assets -8,358 - -1,464
Disposal of fixed assets 358 785 785
Increase in short-term deposits -117 -320 -345
Net cash used in investing activities -10,069 -9,754 -14,682
Financing activities
Issue of share capital - - -
Convertible loan notes issued - - 5,201
Net cash used in financing activities - - 5,201
(Decrease)/increase in cash and cash -4,021 -5,484 -709
equivalents
Cash at beginning of period 6,955 7,664 7,664
Cash at end of period 2,934 2,180 6,955
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the six months ended 30 June 2007
Share Capital Share (Restated) Other Total
Capital Reserve Premium Retained Reserve $000
$000 $000 $000 Earnings $000
$000
At 1 January 2006 537 210,844 26,288 (168,010) 1,314 70,973
Equity portion of convertible - - - - 512 512
loan notes
Changes in equity for 2006 537 210,844 26,288 (168,010) 1,826 71,485
Stock option expense - - - 312 - 312
Profit for the period - - - 2,982 - 2,982
Total recognized income and - - - 3,294 - 3,294
expense
for period
Exercise of options 2 - 151 - - 153
At 31 December 2006 539 210,844 26,439 (164,716) 1,826 74,932
Stock Option Expense - - - 225 - 225
Profit for the period - - - 1,537 - 1,537
Total recognized income and - - - 1,762 - 1,762
expense for period
At 30 June 2007 539 210,844 26,439 (162,954) 1,826 76,694
NOTES TO THE FINANCIAL INFORMATION
for the six months ended 30 June 2007
1. ACCOUNTING POLICY
Basis of Preparation: With effect from 1 January 2007 it became mandatory for
the Group to comply with International Financial Reporting Standards (IFRS). The
financial results of the Group for the six months ended 30 June 2007 have been
prepared on a basis which is consistent with International Financial Reporting
Standards (IFRS) as adopted by the European Union which the Group expects to
apply in the first annual accounts presented as at 31 December 2007. Comparative
information for 2006 has been restated under IFRS.
The financial information presented in this report is unaudited. In the opinion
of the directors, the financial information fairly represents the financial
position, results of operations and cash flows for the periods in conformity
with IFRS.
Basis of Consolidation: The financial statements have been prepared using the
principles of merger accounting and as permitted by IFRS 1, business
combinations prior to the date of transition have not been restated. Under
merger accounting, the results of the Group are combined from the beginning of
the financial period in which the combination occurred and their assets and
liabilities combined at the amounts at which they were previously recorded.
These interim financial statements do not constitute statutory accounts within
the meaning of section 240 of the Companies Act 1985. The comparative figures
for the financial year ended 31 December 2006 are not the Company's full
statutory accounts for that year. A copy of the statutory accounts for that
year has been delivered to the Registrar of Companies. The auditors' report on
those accounts was unqualified, did not include references to any matters to
which the auditors drew attention by way of emphasis without qualifying their
report and did not contain statements under the Companies Act 1985, s237(2) or
(3). The comparative figures for the financial year ended 31 December 2006 have
been abridged from the Group's statutory accounts for that financial year,
translated from United Kingdom Generally Accepted Accounting Principles (UK
GAAP) to IFRS. The UK GAAP version of those accounts have been reported on by
the Group's auditors and delivered to the Registrar of Companies.
A transition document detailing the impact of adopting IFRS is also available on
the Company's website at www.globalenergyplc.com.
2. Turnover is attributable to one continuing activity, which is oil production
from the Harken de Colombia, Ltd. branch located in Colombia, South America.
3. The calculation of earnings per ordinary share for the six months ended 30
June 2007 is based on the weighted average number of ordinary shares of
35,328,428 (six months ended 30 June 2006: 35,286,527; year ended 31
December 2006: 35,304,403). The calculation of diluted earnings per share
for the six months ended 30 June 2007 is based on the weighted average
number of ordinary shares of 39,893,455 (six months ended 30 June 2006
41,475,589; year ended 31 December 2006: 39,869,430). The profit after tax
used in the calculation is $1.537 million (six months ending 30 June 2006:
$581,000; year ended 31 December 2006: $2.983 million).
4. No interim dividend has been declared.
5. Reconciliation of movement in cash to movement in net funds:
At Cash Other At
1 January Flows Changes 30 June
2007 $000 $000 2007
$000 $000
Cash at bank and in hand 6,955 (4,021) 2,934
Debt due within one year - - - -
Debt due after one year (15,425) - (191) (15,616)
Short-term deposits 893 117 1,010
Total (7,577) (3,904) (191) (11,672)
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR SFSEDASWSELU
Global Energy Development (LSE:GED)
Historical Stock Chart
From May 2024 to Jun 2024
Global Energy Development (LSE:GED)
Historical Stock Chart
From Jun 2023 to Jun 2024
