TIDMGED
RNS Number : 7999Q
Global Energy Development PLC
20 April 2009
+-------------------------------------+-------------------------------------+
| For Immediate Release | 20 April 2009 |
+-------------------------------------+-------------------------------------+
GLOBAL ENERGY DEVELOPMENT PLC
("Global" or the "Company")
AUDITED FINAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2008
Global Energy Development PLC, the Latin America focused petroleum exploration
and production company (LSE-AIM: "GED"), announces its audited final results for
the year ended 31 December 2008.
Highlights:
* Revenue up 20.2% to $32.8 million (year ended 31 December 2007: $27.3 million);
* Gross profit up 25.9% to $17.3 million (year ended 31 December 2007: $13.8
million);
* Profit before tax up 11.8% to $9.9 million (year ended 31 December 2007: $8.9
million);
* Average operating cash netback per barrel of $35.31 during 2008 against an
average price for West Texas Intermediate ("WTI") crude oil invoiced by the
Company of $88.55*, with a $75.90 net wellhead price after oil transport and
quality adjustments (2007: average operating cash netback per barrel $30.44;
average price for WTI invoiced $72.48; $66.18 net wellhead price after oil
transport and quality adjustments);
* Proved plus probable ("2P") reserves totalling 131.0 million barrels of oil
equivalent ("BOE") as at 31 December 2008, giving a net present value at a 10%
discount ("NPV10") of $1.5 billion (2007: 2P reserves 15.2 million BOE; NPV10
$641.2 million);
* Final approval received in relation to Environmental Impact Study ("EIS") at the
Peruvian Block 95 contract; and
* Drilling successes at the Colombian Rio Verde contract resulting in:
*
* Increased production;
* New additional pay zones identified; and
* Commercial hydrocarbon production established in the new Boral prospect area.
* The industry average price for WTI crude oil in 2008 was $99.57, $11.02 higher
than the price invoiced by the Company due to the Company producing and selling
approximately 59% of its 2008 net production in the second half of 2008 when oil
prices were lower.
For further information:
Global Energy Development PLC
Catherine Miles, Company Secretary +44 (0)20 7228 4266
www.globalenergyplc.com +44 (0)7909918034
+------------------------------------+-----------------------------------+
| | |
+------------------------------------+-----------------------------------+
Matrix Corporate Capital LLP+44 (0)20 3206 7204
+--------------------------------------------+----------------------+
| Alastair Stratton | |
+--------------------------------------------+----------------------+
| Tim Graham | |
+--------------------------------------------+----------------------+
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. The Company currently holds seven
contracts: five in Colombia; one in Peru; and one in Panama.
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 Ralph E. Davis Associates, Inc.
("Ralph E. Davis"), independent petroleum engineers, conform to the definition
approved by the Society of Petroleum Engineers ("SPE") and the World Petroleum
Council ("WPC"). The probable and possible reserves reported by Ralph E. Davis
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 Ralph E.
Davis.
In addition, the information contained within this announcement has been
reviewed by Mr. Stephen Voss, a Director of the Company, for the purpose of the
Guidance Note for Mining, Oil and Gas Companies issued by the London Stock
Exchange in respect of AIM companies which outlines standards of disclosure for
natural resource projects. Mr. Voss is a Registered Professional Engineer in
Texas and has been a Member of SPE for 26 years.
EXECUTIVE CHAIRMAN'S STATEMENT
2008 saw the Company report record annual financial results in terms of revenue,
gross profit and profit before and after tax. This was primarily as a result of
the oil price surge during the first half of the year and new production volumes
being added during the second half due to drilling successes in the Colombian
Rio Verde contract area.
It was unfortunate that these new production volumes coincided with the swift
decline in the oil price during the second half of 2008, and the altered oil
price environment has led the Company to be particularly focused on cash
management and efforts to improve cash flow from operations.
The drilling successes in the Rio Verde contract area, and subsequent
independent analysis of the area, has resulted in several significant prospects
being identified and this contract will now take priority in the Company's
near-term plans, with expenditure focused on the quick payout development
opportunities existing there.
The Rio Verde contract was one constituent of the increase in the Company's
reserves reported as at 31 December 2008. The values reported for each reserve
category, even at a depressed year end oil price, highlight the pipeline of
value able to be realised when cash resources are available.
The Company is currently undertaking a number of initiatives to apportion the
cash flow generated from production to areas of the Company's portfolio that
will provide quick benefits, and while any petroleum production company remains
at the mercy of the oil price, the Company has taken necessary actions to
ultimately prosper in an industry that remains integral.
Mikel Faulkner
Executive Chairman
20 April 2009
VICE CHAIRMAN'S REVIEW OF OPERATIONS
Financials
Revenue for the year ended 31 December 2008 was $32.8 million, 20.2% higher than
the prior year (2007: $27.3 million) as a result of increased production and a
higher average price for WTI crude oil. Gross production during 2008 was 504,636
barrels of oil ("bbls") (2007: 478,030 bbls), with production net to the Company
of 438,007 bbls (2007: 413,775 bbls). Despite Lease Operating Expenses ("LOE")
being higher primarily as a result of increased oil transportation costs and
equipment rental due to drilling activity and new production, gross profit was
$17.3 million, an improvement of 25.9% against the prior year (2007: $13.8
million). Operations and general and administrative expenses were slightly
increased over the prior year at $6.3 million (2007: $5.8 million) due to an
increased number of employees and consultants as a result of the drilling
activity. The peak number of employees plus consultants in 2008 was 74 but in
efforts to reduce costs in line with the decline in the oil price, the number of
employees plus consultants now stands at 58. Operating profit for 2008 was,
therefore, $11.1 million (2007: $9.9 million), profit before tax was $9.9
million (2007: $8.9 million) and net income was $7.3 million (2007: $7.0
million).
The Company's average operating cash netback per barrel, this being average
sales less royalties and other operating costs and taxes, was $35.31 against an
average price for WTI crude oil invoiced by the Company of $88.55 (2007: average
operating cash netback per barrel $30.44; average price for WTI invoiced
$72.48). The industry average price for WTI crude oil in 2008 was $99.57, $11.02
higher than the price invoiced by the Company due to the Company producing and
selling approximately 59% of its 2008 net production in the second half of 2008
when oil prices were lower. The Company's average net wellhead price after oil
transport and quality adjustments was $75.90 (2007: $66.18).
2008 Reserve Report
The independent petroleum engineers Ralph E. Davis reported that, as at 31
December 2008, proved reserves net to the Company totalled 64.3 million barrels
of oil equivalent ("BOE") (as at 31 December 2007: 4.6 million BOE), proved plus
probable ("2P") reserves net to the Company totalled 131.0 million BOE (as at 31
December 2007: 15.2 million BOE) and proved plus probable plus possible ("3P")
reserves net to the Company totalled 254.6 million BOE (as at 31 December 2007:
64.9 million BOE).
The considerable increase in all the reserve categories has arisen predominately
due to Ralph E. Davis re-evaluating all the historic data available on the
Company's contract areas, rebasing the previously recorded reserves, adding in
newly available data and then conforming exactly to the definitions of proved,
probable and possible reserves approved by: Society of Petroleum Engineers
("SPE"); World Petroleum Council ("WPC"); American Association of Petroleum
Geologists ("AAPG"); and Society of Petroleum Evaluation Engineers ("SPEE"). In
addition, the Company had drilling successes during 2008, and lower forecasted
future oil prices when compared to last year increased the time period until the
Company's cost recovery and, therefore, the timing of Ecopetrol's back-in at two
Colombian contracts. The most notable increases in reserves occurred within the
Colombian Bocachico and Bolivar and Peruvian Block 95 contracts due to the
volumetric effect of calculating reserves at the subsurface point of lowest
known oil based on all available data and analysis.
The closing WTI crude oil price as at 31 December 2008, the date of the Reserve
Report, was $44.60 per barrel, an approximate 54% reduction against 2007 (2007:
31 December 2007: $95.98). Based upon this starting price, the Net Present Value
at a 10% discount ("NPV10") of the proved reserves was $971 million (2007: $214
million). The NPV10 of the 2P reserves totalled $1.5 billion (2007: $641
million) and the NPV10 of the 3P reserves totalled $2.3 billion (2007: $2.5
billion).
Overview of Contracts and Activities
Colombia
All the Company's contracts in Colombia, bar the Rio Verde contract, are in the
exploitation phase and as such do not have any significant pending contractual
commitments and, therefore, only a minimal obligatory spend.
The Rio Verde contract area has experienced growth in gross production from 600
barrels of oil per day ("bopd") to over 1,000 bopd during 2008 as a result of
the drilling success of the Boral 1 and Tilodiran 3 wells. New additional pay
zones were also opened in the lower Gacheta and upper Mirador formations with a
total of five productive formations having now been tested in the Rio Verde
area: the massive Ubaque; upper Ubaque; lower Gacheta; upper Gacheta; and
Mirador formations. Importantly, the Boral 1 well established commercial
hydrocarbon production in the new Boral prospect area to the east of the
expanding Tilodiran field. Additional wells are now being planned for both the
Boral and Tilodiran field areas, with number and locations dependent on the
interpretation of seismic which is planned to be acquired during 2009.
The Company recently accepted all the conditions of an amendment to the Rio
Verde contract whereby Phases IV and V are collapsed into one phase ending May
2010, therefore, substituting the need to drill a well by May 2009. Under the
revised confirmed terms, by May 2010 the Company must now acquire approximately
$4.0 million of mostly 3D seismic and drill an exploratory well.
The Cajaro 1 and Estero 5 wells within the Alcaravan contract area were shut-in
during February 2009 due to surface mechanical reasons. The depressed oil price
and prevailing LOE made these two wells as well as the Estero 1 & 2 wells
potentially uneconomical. Therefore, the Company petitioned and received
permission to suspend these wells temporarily. These four wells will be
re-evaluated in the event of higher oil prices and ongoing initiatives to reduce
LOE. Before they were shut-in, these four wells contributed approximately 280
bopd gross together with 14,000 barrels of water per day.
There was no significant spend on the Bocachico and Bolivar contracts during
2008 and the Company is considering options to realise the reserves on these
contracts, one of which is commercial partnering.
As stated above, LOE increased in 2008 but LOE has now been cut by approximately
22% from the average in the fourth quarter of 2008 and the further reduction of
LOE is a high priority for the Company. Efforts are focused on three
initiatives: the purchase of Colombian national grid power to replace site
generated power which uses high-cost diesel fuel; the elimination of temporary
field rental equipment; and reduction of trucking transport costs for oil sales
by engaging oil purchasers in closer proximity to the Rio Verde contract area.
These efforts are progressing well. In March 2009, for example, a contract was
signed with Perenco as the primary buyer of the Company's oil due to it being a
more convenient delivery location for the Rio Verde contract production, which
now forms the bulk of the Company's daily production volumes.
The Company continues to have an outstanding receivable from Ecopetrol in
relation to the Cajaro 1 well production dispute, currently amounting to $4.5
million along with a provision made against it of $2.4 million. The production
dispute is ongoing and the Company continues to expect a protracted process to
resolve it. The Company is now reviewing arbitration procedures and rules and
continues to believe it will be successful in the technical arbitration.
Peru
In October 2008, the Company finally received approval from the
Peruvian Ministry of Energy and Mines in relation to the Environmental Impact
Study ("EIS") at the Block 95 contract area. Therefore, the Company now has
approval for its seismic and drilling plans related to the Bretana field and
other nearby areas. The current obligations under the contract require the
Company to have contracted for a $2.0 million seismic acquisition programme
prior to the end of 2009. Contractors are being contacted and are expected to be
available for the programme.
Panama
In Panama, the location of the Company's only pure exploration project, the
Company complied with the initial Phase 1 work commitments of the Garachine
contract, including the mapping of a number of seismically defined geologic
features that appear to be reefal in nature.
The Company is currently planning the magnetic studies that are required under
the extension sought by the Company and previously granted by the Directorate of
Hydrocarbons. It is the Company's intention to conduct these studies to better
understand the nature of the geologic structures in the contract area,
especially in regard to distinguishing between buried non oil-bearing volcanoes
and oil-bearing carbonate pinnacle reefs and buildups.
Conclusion
Although the oil industry has been challenging of late due to the oil price
decline, almost all commentators point to an improving price. The immediate
focus for the Company is improving gross profit margins by reducing LOE further
and using the hoped for additional cash flow to expand the production base.
The Rio Verde contract will take precedence through 2009 with the Block 95
contract also building in terms of activity levels towards the end of the year.
Several initiatives to realise the considerable reserve base will also be
considered. With all these projects in the pipeline or already underway, the
Company continues to make progress despite the current industry environment.
Stephen Voss
Vice Chairman
20 April 2009
FINANCIAL INFORMATION
+------------------------------------+------+-----------+---+-----------+
| Consolidated Income Statement |
+-----------------------------------------------------------------------+
| For the year ended 31 December 2008 |
+-----------------------------------------------------------------------+
| |Note | 2008 | | 2007 |
| | | $'000 | | $'000 |
+------------------------------------+------+-----------+---+-----------+
| Revenue | 2 | 32,800 | | 27,289 |
+------------------------------------+------+-----------+---+-----------+
| Cost of sales | | (15,461) | | (13,514) |
+------------------------------------+------+-----------+---+-----------+
| Gross Profit | | 17,339 | | 13,775 |
+------------------------------------+------+-----------+---+-----------+
| | | | | |
+------------------------------------+------+-----------+---+-----------+
| Other income | | 122 | | 678 |
+------------------------------------+------+-----------+---+-----------+
| Other income - correction of | | - | | 1,240 |
| miscellaneous income | | | | |
+------------------------------------+------+-----------+---+-----------+
| | | 122 | | 1,918 |
+------------------------------------+------+-----------+---+-----------+
| Administrative costs | | (6,304) | | (5,841) |
+------------------------------------+------+-----------+---+-----------+
| Operating Profit | | 11,157 | | 9,852 |
+------------------------------------+------+-----------+---+-----------+
| | | | | |
+------------------------------------+------+-----------+---+-----------+
| Finance income | | 183 | | 164 |
+------------------------------------+------+-----------+---+-----------+
| Finance expense | | (1,417) | | (1,141) |
+------------------------------------+------+-----------+---+-----------+
| Profit before taxation | | 9,923 | | 8,875 |
+------------------------------------+------+-----------+---+-----------+
| Income tax expense | | (2,627) | | (1,882) |
+------------------------------------+------+-----------+---+-----------+
| Profit after taxation for the year | | 7,296 | | 6,993 |
+------------------------------------+------+-----------+---+-----------+
| | | | | |
+------------------------------------+------+-----------+---+-----------+
| Earnings Per Share | 3 | | | |
+------------------------------------+------+-----------+---+-----------+
| - Basic | | $ 0.21 | | $ |
| | | | | 0.20 |
+------------------------------------+------+-----------+---+-----------+
| - Diluted | | $ 0.20 | | $ |
| | | | | 0.19 |
+------------------------------------+------+-----------+---+-----------+
| | | | | |
+------------------------------------+------+-----------+---+-----------+
Consolidated statement of changes in equity
+--------------------+---------+------------+-----------+-------------+----------+--------------+--------------------+
| | Share | Capital | Share | Retained | Other | Total |
| | Capital | Reserve | Premium | Earnings | Reserve | |
+ + + + + + + +
| | | | | | | | |
+ + + + + + + +--------------------+
| | | | | | | | |
+ + + + + + + +--------------------+
| | | | | | | | |
+--------------------+---------+------------+-----------+-------------+----------+--------------+--------------------+
| At 1 January 2007 | 539 | 210,844 | 26,439 | (174,016) | 1,826 | 65,632 |
+--------------------+---------+------------+-----------+-------------+----------+--------------+
| Profit for the | - | - | - | 6,993 | - | 6,993 |
| period | | | | | | |
+--------------------+---------+------------+-----------+-------------+----------+--------------+
| Total recognised | - | - | - | 6,993 | - | 6,993 |
| income and expense | | | | | | |
| for the period | | | | | | |
+--------------------+---------+------------+-----------+-------------+----------+--------------+
| Share based | - | - | - | 480 | - | 480 |
| payment | | | | | | |
+--------------------+---------+------------+-----------+-------------+----------+--------------+
| At 1 January 2008 | 539 | 210,844 | 26,439 | (166,543) | 1,826 | 73,105 |
+--------------------+---------+------------+-----------+-------------+----------+--------------+
| Profit for the | - | - | - | 7,296 | - | 7,296 |
| period | | | | | | |
+--------------------+---------+------------+-----------+-------------+----------+--------------+
| Total recognised | - | - | - | 7,296 | - | 7,296 |
| income and expense | | | | | | |
| for the period | | | | | | |
+--------------------+---------+------------+-----------+-------------+----------+--------------+
| Share based | - | - | - | 165 | - | 165 |
| payment | | | | | | |
+--------------------+---------+------------+-----------+-------------+----------+--------------+
| At 31 December | 539 | 210,844 | 26,439 | (159,082) | 1,826 | 80,566 |
| 2008 | | | | | | |
+--------------------+---------+------------+-----------+-------------+----------+--------------+--------------------+
+------------------------------------+------+-----------+----+-----------+
| Consolidated Balance Sheet | | | | |
+------------------------------------+------+-----------+----+-----------+
| As at 31 December 2008 | | | | |
+------------------------------------+------+-----------+----+-----------+
| | | 2008 | | 2007 |
| | | $'000 | | $'000 |
+------------------------------------+------+-----------+----+-----------+
| Assets | | | | |
+------------------------------------+------+-----------+----+-----------+
| Non-current assets | | | | |
+------------------------------------+------+-----------+----+-----------+
| Intangible assets | | 5,358 | | 4,419 |
+------------------------------------+------+-----------+----+-----------+
| Property, plant and equipment | | 98,294 | | 82,499 |
+------------------------------------+------+-----------+----+-----------+
| Deferred tax assets | | 1,214 | | 288 |
+------------------------------------+------+-----------+----+-----------+
| | | 104,866 | | 87,206 |
+------------------------------------+------+-----------+----+-----------+
| Current assets | | | | |
+------------------------------------+------+-----------+----+-----------+
| Inventories | | 1,290 | | 884 |
+------------------------------------+------+-----------+----+-----------+
| Trade and other receivables | | 5,245 | | 9,367 |
+------------------------------------+------+-----------+----+-----------+
| Term deposits | | 1,508 | | 1,831 |
+------------------------------------+------+-----------+----+-----------+
| Cash & cash equivalents | | 3,722 | | 4,602 |
+------------------------------------+------+-----------+----+-----------+
| | | 11,765 | | 16,972 |
+------------------------------------+------+-----------+----+-----------+
| Total assets | | 116,631 | | 103,890 |
+------------------------------------+------+-----------+----+-----------+
| | | | | |
+------------------------------------+------+-----------+----+-----------+
| Liabilities | | | | |
+------------------------------------+------+-----------+----+-----------+
| Current liabilities | | | | |
+------------------------------------+------+-----------+----+-----------+
| Trade and other payables | | (7,099) | | (4,223) |
+------------------------------------+------+-----------+----+-----------+
| | | | | |
+------------------------------------+------+-----------+----+-----------+
| Non-current liabilities | | | | |
+------------------------------------+------+-----------+----+-----------+
| Convertible loan notes | | (16,197) | | (15,810) |
+------------------------------------+------+-----------+----+-----------+
| Deferred tax liabilities | | (11,768) | | (10,010) |
+------------------------------------+------+-----------+----+-----------+
| Long term provisions | | (1,001) | | (674) |
+------------------------------------+------+-----------+----+-----------+
| Other payables | | - | | (68) |
+------------------------------------+------+-----------+----+-----------+
| | | (28,966) | | (26,562) |
+------------------------------------+------+-----------+----+-----------+
| Total liabilities | | (36,065) | | (30,785) |
+------------------------------------+------+-----------+----+-----------+
| Net assets | | 80,566 | | 73,105 |
+------------------------------------+------+-----------+----+-----------+
| | | | | |
+------------------------------------+------+-----------+----+-----------+
| Capital and reserves attributable | | | | |
| to equity holders of the company | | | | |
+------------------------------------+------+-----------+----+-----------+
| Share capital | | 539 | | 539 |
+------------------------------------+------+-----------+----+-----------+
| Share premium | | 26,439 | | 26,439 |
+------------------------------------+------+-----------+----+-----------+
| Other reserve | | 1,826 | | 1,826 |
+------------------------------------+------+-----------+----+-----------+
| Capital reserve | | 210,844 | | 210,844 |
+------------------------------------+------+-----------+----+-----------+
| Retained losses | | (159,082) | | (166,543) |
+------------------------------------+------+-----------+----+-----------+
| Total equity | | 80,566 | | 73,105 |
+------------------------------------+------+-----------+----+-----------+
+----------------------------------------+-----+----------+----+-----------+
| Consolidated Cash Flow Statement | | | | |
+----------------------------------------+-----+----------+----+-----------+
| For the period ended 31 December 2008 | | | | |
+----------------------------------------+-----+----------+----+-----------+
| | | 2008 | | 2007 |
| | | $'000 | | $'000 |
+----------------------------------------+-----+----------+----+-----------+
| Cash flows from operating activities | | | | |
+----------------------------------------+-----+----------+----+-----------+
| Operating profit before interest and | | 11,157 | | 9,852 |
| taxation | | | | |
+----------------------------------------+-----+----------+----+-----------+
| Depreciation, depletion and | | 6,356 | | 6,805 |
| amortisation | | | | |
+----------------------------------------+-----+----------+----+-----------+
| Write-off unsuccessful exploration | | - | | 65 |
| costs | | | | |
+----------------------------------------+-----+----------+----+-----------+
| Decrease/(Increase) in trade and other | | 3,321 | | (5,939) |
| receivables | | | | |
+----------------------------------------+-----+----------+----+-----------+
| (Increase)/decrease in inventories | | (406) | | 115 |
+----------------------------------------+-----+----------+----+-----------+
| Increase in trade and other payables | | 2,412 | | 767 |
+----------------------------------------+-----+----------+----+-----------+
| Increase in long-term provisions | | 127 | | 66 |
+----------------------------------------+-----+----------+----+-----------+
| Accretion expense on convertible notes | | 387 | | 283 |
+----------------------------------------+-----+----------+----+-----------+
| Provision against unitisation | | 800 | | 1,050 |
| receivable | | | | |
+----------------------------------------+-----+----------+----+-----------+
| Loss on disposal of assets | | 25 | | - |
+----------------------------------------+-----+----------+----+-----------+
| Other non-cash items | | 46 | | 63 |
+----------------------------------------+-----+----------+----+-----------+
| Shared based Payment | | 165 | | 480 |
+----------------------------------------+-----+----------+----+-----------+
| Cash generated from operations | | 24,390 | | 13,607 |
+----------------------------------------+-----+----------+----+-----------+
| Income taxes paid | | (2,178) | | (1,202) |
+----------------------------------------+-----+----------+----+-----------+
| Net cash flows from operating | | 22,212 | | 12,405 |
| activities | | | | |
+----------------------------------------+-----+----------+----+-----------+
| | | | | |
+----------------------------------------+-----+----------+----+-----------+
| Investing activities | | | | |
+----------------------------------------+-----+----------+----+-----------+
| Capital expenditure and financial | | | | |
| investment | | | | |
+----------------------------------------+-----+----------+----+-----------+
| - Expenditure on tangible fixed | | (21,810) | | (12,242) |
| assets | | | | |
+----------------------------------------+-----+----------+----+-----------+
| - Expenditure on intangible fixed | | (939) | | (1,040) |
| assets | | | | |
+----------------------------------------+-----+----------+----+-----------+
| Disposal of PPE | | 46 | | 108 |
+----------------------------------------+-----+----------+----+-----------+
| Interest received | | 183 | | 164 |
+----------------------------------------+-----+----------+----+-----------+
| Decrease/ (Increase) in short-term | | 323 | | (938) |
| deposits | | | | |
+----------------------------------------+-----+----------+----+-----------+
| Net cash flows from investing | | (22,197) | | (13,948) |
| activities | | | | |
+----------------------------------------+-----+----------+----+-----------+
| | | | | |
+----------------------------------------+-----+----------+----+-----------+
| Financing activities | | | | |
+----------------------------------------+-----+----------+----+-----------+
| Interest paid | | (895) | | (810) |
+----------------------------------------+-----+----------+----+-----------+
| Net cash flows from financing | | (895) | | (810) |
| activities | | | | |
+----------------------------------------+-----+----------+----+-----------+
| | | | | |
+----------------------------------------+-----+----------+----+-----------+
| (Decrease) in cash and cash | | (880) | | (2,353) |
| equivalents | | | | |
+----------------------------------------+-----+----------+----+-----------+
| Cash and cash equivalents at beginning | | 4,602 | | 6,955 |
| of year | | | | |
+----------------------------------------+-----+----------+----+-----------+
| Cash and cash equivalents | | 3,722 | | 4,602 |
+----------------------------------------+-----+----------+----+-----------+
ABRIDGED NOTES TO THE FINANCIAL INFORMATION
For the twelve months ended 31 December 2008
1. Basis of Preparation
The financial statements of the Group for the twelve months ended 31 December
2008 have been prepared in accordance with International Financial Reporting
Standards, International Accounting Standards and Interpretations (collectively
IFRS) issued by the International Accounting Standards Board (IASB) as adopted
by European Union.
2. Segmental analysis
In the opinion of the Directors, the operations of the Group companies comprise
one single class of business including oil and gas exploration, development and
production of oil and gas reserves, and the sale of hydrocarbons and related
activities. The Group operates in one geographic area, Latin America.
3. Earnings per share (EPS)
Basic earnings per share amounts are calculated by dividing profit for the
period attributable to ordinary equity holders of the parent by the weighted
average number of ordinary shares outstanding during the year.
Diluted earnings per share amounts are calculated by dividing profit for the
period attributable to ordinary equity holders of the parent by the weighted
average number of ordinary shares outstanding during the year, plus the weighted
average number of shares that would be issued on the conversion of dilutive
potential ordinary shares into ordinary shares. The calculation of the dilutive
potential ordinary shares related to employee and director share option plans
includes only those options with exercise prices below the average share trading
price for each period.
+-------------------------------------------------+------------+------------+
| | 2008 | 2007 |
| | $'000 | $'000 |
+-------------------------------------------------+------------+------------+
| Net profit attributable to equity holders used | 7,296 | 6,993 |
| in basic calculation ($'000) | | |
+-------------------------------------------------+------------+------------+
| Add back interest and accretion charge in | 1,281 | 970 |
| respect of convertible loan notes ($'000) | | |
+-------------------------------------------------+------------+------------+
| Net profit attributable to equity holders used | 8,577 | 7,963 |
| in dilutive calculation ($'000) | | |
+-------------------------------------------------+------------+------------+
| | | |
+-------------------------------------------------+------------+------------+
| Basic weighted average number of shares | 35,328,428 | 35,328,428 |
+-------------------------------------------------+------------+------------+
| | | |
+-------------------------------------------------+------------+------------+
| Earnings Per Share | | |
+-------------------------------------------------+------------+------------+
| - Basic | $0.21 | $0.20 |
+-------------------------------------------------+------------+------------+
| - Diluted | $0.20 | $0.19 |
+-------------------------------------------------+------------+------------+
| | | |
+-------------------------------------------------+------------+------------+
| Dilutive potential ordinary shares | | |
+-------------------------------------------------+------------+------------+
| Shares related to convertible notes | 4,565,027 | 4,565,027 |
+-------------------------------------------------+------------+------------+
| Employee and Director share option plans | 3,755,196 | 3,145,196 |
+-------------------------------------------------+------------+------------+
| Diluted weighted average number of shares | 43,648,651 | 43,038,651 |
+-------------------------------------------------+------------+------------+
The calculation of the diluted EPS assumes all criteria giving rise to the
dilution of the EPS are achieved and all outstanding share options are
exercised.
4. Post balance sheet events
On 16 April 2009, the Company accepted all the conditions of an amendment to the
Colombian Rio Verde contract whereby Phases IV and V are collapsed into one
phase ending May 2010, therefore, substituting the need to drill a well by May
2009. Under the revised confirmed terms, by May 2010 the Company must now
acquire approximately $4.0 million of mostly 3D seismic and drill an exploratory
well.
- Ends -
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR UKAKRKKRSAAR
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