TIDMHAWK
RNS Number : 3564A
Nighthawk Energy plc
07 October 2009
Nighthawk Energy plc ('Nighthawk' or 'the Company')
Final Results
Nighthawk, the US focused development and production company, today announces
its final results for the year ended 30 June 2009.
Highlights
* Financial highlights for year ended 30 June 2009:
*
* Non-current assets increased by 60% from US$47.00 million to US$75.18 million
* Administrative costs reduced by 23%
* Operating loss reduced by 42%
* Gross P50/most likely oil in place of 1.462 billion barrels of oil calculated by
Schlumberger Data & Consulting Services, in July 2009 covering 246,000 of the
370,000 gross acre Jolly Ranch project
* Jolly Ranch shale formations likely to be laterally continuous across total area
of 370,000 acres
* Gross P50/most likely oil in place of 210.51 million barrels calculated by
Oilfield Production Consultants on Devon and Buchanan sections of the Revere
Project
* Successful fund raising in July 2009 of US$37 million
2010 Objectives
* Increase P50 reserves through the drill bit
* Increase production and revenue base
* Continue to delineate and develop unconventional and conventional resources at
Jolly Ranch, including the drilling of a number of horizontal wells
* Continue development work at Revere
David Bramhill, Managing Director of Nighthawk commented: "Whilst no reminder is
needed of the volatility and tough operating conditions all have seen during the
last year, Nighthawk has emerged with a strong balance sheet and a portfolio of
assets which the Board is confident will continue to add tremendous value into
2010 and beyond. The independent reviews of our core assets, Jolly Ranch and
Revere, have reinforced our long held belief we have two "company making"
projects in development. We look forward to updating the market on their
progress over the next 12 months."
Enquiries:
+------------------------------------+---------------------------------------+
| Nighthawk Energy plc | 01271 882160 |
| David Bramhill, Managing Director | 020 7887 1454 |
| Tim Heeley, Commercial Director | 07956 525433 |
+------------------------------------+---------------------------------------+
| | |
+------------------------------------+---------------------------------------+
| Hanson Westhouse Limited | 020 7601 6100 |
| Tim Feather | tim.feather@hansonwesthouse.com |
| Matthew Johnson | matthew.johnson@hansonwesthouse.com |
+------------------------------------+---------------------------------------+
| | |
+------------------------------------+---------------------------------------+
| Bishopsgate Communications Limited | 020 7562 3395 |
| (Media Representation) | nick@bishopsgatecommunications.com |
| Nick Rome | |
+------------------------------------+---------------------------------------+
| | |
+------------------------------------+---------------------------------------+
| Financial Dynamics | 020 7831 3113 |
| Ben Brewerton | ben.brewerton@fd.com |
| Ed Westropp | edward.westropp@fd.com |
| | |
+------------------------------------+---------------------------------------+
Managing Director's Statement
I am pleased to report to the shareholders of Nighthawk on continuing growth and
progress, particularly in respect of our two cornerstone projects, Jolly Ranch
and Revere. Both projects have seen substantial development during the last 12
months and have continued to add value to the Company. I am confident that this
expansion will increase as we move into the next pivotal phase of project
advancement.
Moving forward our strategy for growth remains to:
* Expand the resource and reserve base and increase the production profile through
a focused appraisal and development programme
* Create excellent returns for shareholders by building a scalable oil and gas
company focused on low risk but high reward assets in a politically and fiscally
stable environment
We need no reminding of the tough economic environment during the year under
review. With most direct relevance to Nighthawk, we saw the oil price hit a low
not seen for many years and an unfavourable GBP/US$ exchange rate. Despite
these adversities, the Board decided to continue with an aggressive development
and drilling programme as planned. Approximately US$30 million net was invested
during the year in our hydrocarbon projects across the US mid-west in
partnership with Running Foxes Petroleum Inc. ("Running Foxes") which is the
operator of all of the projects and retains in most cases a 50% interest. For
the sake of clarity, Running Foxes contributes dollar for dollar on a "heads up"
basis on each project. Unlike many European deals there is no promote added and
all costs are divided on a pro rata basis.
The result of our decision to continue drilling and development as planned has
enabled the Company to add value and report to shareholders on our two major
hydrocarbon projects. In addition, the oil price has regained lost ground and
as at 6 October 2009 was trading around US$70 per barrel and the pound has
performed positively against the dollar, lowering our development costs.
Jolly Ranch
Nighthawk initially invested in Jolly Ranch, located a two-hour drive from
Denver, Colorado, in August 2007 with a land purchase of approximately 50,000
acres. Even at that time we had high expectations of the project. Since then,
through patient and careful negotiation with local landowners, our land base has
grown to approximately 370,000 gross acres, a scale more typically associated
with oil majors.
The Jolly Ranch project comprises three areas, Jolly Ranch, Middle Mist and
Mustang Creek, situated in Lincoln, Elbert and Washington Counties, Colorado.
Nighthawk holds a 50% interest in the project and Running Foxes holds the
remaining percentage interest.
To date, 10 vertical wells of 7,500-9,000 feet have been drilled on the project,
all of which have encountered multiple pay horizons. Nine of these wells have
been completed as production wells and one is being utilised as a water disposal
well, lowering the costs associated with water transportation. A further two
shallower wells of 3,000-4,000 feet, to test the Codell formation, have been
drilled and cased for production.
The last six months have seen the testing of various productive formations to
determine the optimum production plan and also gain a greater understanding of
this new combined conventional / non-conventional play.
Production, although important, has not been a priority. As stated in the Half
Yearly Report for the period ended 31 December 2008, we believe that our efforts
are best focused on proving up the extent of the asset to establish the project
as a world-class non-conventional shale play, rather than concentrating on
generating maximum production at this stage.
We have continued this approach and the results to date have confirmed our
belief that we have a major interest in a world-class project in the making. In
July 2009, Schlumberger Data & Consulting Services completed an independent
evaluation of the oil in place at the Jolly and Craig Ranch fields covering
246,000 gross acres of the 370,000 held within the project. The study was
undertaken to assess resources in place under Nighthawk's acreage in the
Pennsylvanian (Upper Carboniferous) Marmaton, Cherokee and Atoka formations.
The P50, or most likely, oil in place was calculated to be 1.462 billion
barrels. In addition, a further model encompassing an area of 885,988 acres was
generated and evaluated, the results of which concluded that the regional
continuity of the formations was such that the resources in place are likely to
be laterally continuous across the total acreage.
A full analysis of the production history of the area was outside the scope of
the study, however results to date were reviewed in order to validate the
petrophysical and geological interpretations. Actual production results
provided evidence for successful play concepts and cross-validated oil in place
calculations. Production histories from previously drilled wells in the
immediate study area were reviewed to make general observations on Atoka and
Cherokee production. Results from offset current activity in Lincoln County,
from the Marmaton, Cherokee and Atoka were also reviewed.
Shallow production from the Cretaceous D and J sands at the Bluebird field,
contained within the project acreage, were also reviewed as these sands are
present within the study area and could represent additional upside if
identified in an appropriate trap.
Nighthawk and Running Foxes have been producing and selling oil for the last
nine months from various conventional and non-conventional formations during
both test and continuous production from numerous wells.
The Marmaton, a conventional oil formation, has been a proven producer for
decades and companies such as BHP America, Norske Hydro, SOHIO, Anschultz,
Wepking-Fullerton and Newfield have all achieved viable production from this
formation and other conventional zones. The historic recoverability factors
have been in the region of the low twenties percentile.
There remains much work to be completed such as further delineating the oil in
place. Recovery factors need to be established using modern completion
practices and techniques.
Nighthawk has commenced a major development programme which is planned to
continue for the next twelve months. At least a further 20 wells have been
permitted, some of which will be lateral. In late September 2009 our first
lateral well, the Craig 15-32-L reached Total Depth of 8,554 feet of which 2,006
feet was the horizontal leg through the Cherokee formation. This well has been
cased and the horizontal leg will be fracced ahead of production.
The natural progression is to continue the pace of development, eliminating the
normal uncertainties of a project of this magnitude, such that firm economics
can be established. An extensive programme, as indicated above, comprising
vertical and lateral wells and selected 3D seismic acquisition over key areas is
currently underway.
Revere
Revere, a major waterflood project covering in excess of 40,000 acres, is the
product of the consolidation of the Devon Oilfield, Buchanan and Worden and
Xenia projects, all located on and around the State border between Kansas and
Missouri.
The reservoir is underpressured, therefore there is little natural energy to
bring the oil to the surface. In this type of project, water injection is
commonly used to displace oil to the production wells. This is a
straightforward process which has been applied successfully for decades on
similar oilfields in the US and elsewhere in the world. Typical recovery
factors in this type of waterflood project would be expected to range between
15-25% with careful design and implementation of the waterflood.
Activity on the project has been intense. There are currently 140 wells on
primary production, 65 wells awaiting completion, 38 water injection wells at
various stages of injection, one salt water disposal well active and a further
99 wells permitted.
Gross primary production from Revere is currently in excess of 150 barrels of
oil equivalent per day and as the waterflood injection takes effect and new
production wells are completed and put onstream this figure is expected to
increase dramatically. A 12 kilometre gas pipeline at Xenia, part of the Revere
project, in which Nighthawk holds a 50% interest, is under construction and will
be linked to the Bourbon County pipeline. Initial gas production from Xenia is
expected to be approximately+ 500,000 cubic feet per day, plus associated oil.
Oilfield Production Consultants Limited ("OPC") is currently conducting a study
of the Xenia section of the project.
Pipelines, surface facilities and other production infrastructure are being
installed throughout the project area and a drilling programme is ongoing
targeting the shallow Bartlesville and McClouth formations at depths of less
than 800 feet. Wells are being drilled and completed at an average of two per
week. A further 200 wells have been budgeted for as part of the ongoing
development programme. The shallow reservoir depth results in a very low
drilling cost per well of approximately US$50,000 including completion. In
addition, the low reservoir pressure allows for the use of relatively
inexpensive surface and production facilities. No high cost pressure equipment
or pipelines are required. Following scoping simulation runs by OPC which has
completed an independent review of certain sections of Revere, oil production
rates ranging from 5-20 barrels a day are possible from each individual
production well.
OPC has also recently completed a study of the Devon and Buchanan and Worden
sections of Revere including a Monte Carlo probabilistic calculation of Stock
Tank Oil Originally in Place. The P50, or most likely figure, was calculated to
be 210.51 million barrels (gross), a figure likely to increase significantly on
further development of outlying acreage.
Revere is a low cost, high upside development project and expectations remain
for the project to become a significant contributor in respect of both
production and the addition of further oil and gas reserves/resources,
particularly following the planned major expansion during the remainder of 2009
and beyond.
Project Prioritisation
Nighthawk, together with its partner Running Foxes, has drilled over 250
commercial wells during the past two years spread over the whole portfolio of
projects. As reported to shareholders in my statement last year, ongoing
evaluation of the results obtained from these projects both in-house and, more
importantly from a validation point of view, independently from external
consultants, Schlumberger and OPC, demonstrate the difference in scalability and
the range of resource and potential future production.
The directors' belief in Jolly Ranch and Revere has been confirmed independently
and in the case of Jolly Ranch we are of the opinion following the findings of
the Schlumberger report, that we have the makings of a future world-class
project.
The potential returns from these two ventures are in multiples of our other
projects and therefore cash resources have been focused in the past year on
their development. This trend will continue.
In June 2009 the Company sold its 50% interest in the Centurion project for US$5
million to Osceola Hydrocarbons Limited. This sale price represented full
expenditure on the project since its acquisition and a profit of approximately
10% on the transaction.
Cisco Springs, located in Utah, although a non-core project, has 2P reserves of
some 24 million barrels of oil equivalent and has in place considerable
production facilities making this project a valuable asset, even more so when
gas prices begin to firm up in the future.
Nighthawk also holds an 80% interest in Cliffs, a project located within
Illinois Basin. The potential disposal of this interest is under review.
Corporate and Financial
During the period under review Nighthawk conducted two institutional share
placings raising an aggregate of approximately US$18 million, strengthening the
Company's capital base and ensuring the timely and continued development of its
core projects.
In August 2009 Nighthawk raised approximately US$37 million via an institutional
placing. The Consolidated Balance Sheet at 30 June 2009 does not reflect the
proceeds from this placing.
As a result of this funding, Nighthawk is in a better financial position than at
any time in its history and funds are in place for the development of its core
projects for at least the next 12 months. In addition, the Company remains debt
free.
The funds raised will be/have been used to:
* Drill a further 20 wells at Jolly Ranch, some of which will be lateral,
construct production and oil storage facilities and the acquisition of 3D
seismic over selected key areas
* Drill up to 200 oil production and water injection wells at Revere and construct
production facilities
* Construct gas gathering facilities and Xenia pipeline at Revere
The financial results for the period continue to reflect the operations of an
active hydrocarbon development company.
In comparison to the financials of 2008 on a like-for-like basis:
* Non-current assets increased by 60% from US$47.00 million to US$75.18 million
* Total equity increased by 19%
* Revenue increased by 258%
* Administrative costs reduced by 23%
* Operating loss reduced by 42%
During the period under review Nighthawk strengthened its senior management team
and board with the appointment of Tim Heeley as Commercial Director and Michael
Thomsen as Executive Chairman.
Due to the location of its assets, Nighthawk has recently established an
American Depositary Receipt facility ("ADR") programme, fully sponsored by The
Bank of New York Mellon, which is acting as our depositary bank.
In addition, Nighthawk now has a quotation on the OTCQX International platform
in New York. The quotation is complementary to the Company's AIM quotation,
which continues to serve as its principal listing.
Nighthawk has engaged SMH Capital Inc., the broker dealer subsidiary of Sanders
Morris Harris Group (NASDAQ: SMHG), to serve as the Principal American Liaison
("PAL") in connection with the Company's OTCQX quotation, to provide capital
markets advisory, strategic investor communication, in-depth company research
and analysis plus trading monitoring and services in the US.
Financial Dynamics has also been appointed, to work alongside our financial
public relations consultants, Bishopsgate Communications, to enhance our
communication with analysts and institutional investors as the Company expands.
I would like to take this opportunity to thank our shareholders, my fellow
directors and management, advisers in the UK and US and Steve Tedesco and his
team from Running Foxes - responsible for introducing and operating our
projects.
The next 12 months have the potential to be transformational for Nighthawk as we
continue the development of our core projects and I look forward to reporting
further progress.
David Bramhill
Managing Director
6 October 2009
This announcement was approved by the Board of Directors on 6 October 2009.
Consolidated Income Statement
for the year ended 30 June 2009
+--------------------------------+-------+-----------------+-----------------+
| | Notes | 2009 | 2008 |
| | | US$ | US$ |
+--------------------------------+-------+-----------------+-----------------+
| Continuing operations: | | | |
+--------------------------------+-------+-----------------+-----------------+
| | | | |
+--------------------------------+-------+-----------------+-----------------+
| Revenue | | 497,876 | 138,998 |
+--------------------------------+-------+-----------------+-----------------+
| Unsuccessful exploration costs | | - | (316,370) |
+--------------------------------+-------+-----------------+-----------------+
| | | | |
+--------------------------------+-------+-----------------+-----------------+
| Gross profit / (loss) | | 497,876 | (177,372) |
+--------------------------------+-------+-----------------+-----------------+
| | | | |
+--------------------------------+-------+-----------------+-----------------+
| Administrative expenses | | (2,511,055) | (3,272,928) |
+--------------------------------+-------+-----------------+-----------------+
| | | | |
+--------------------------------+-------+-----------------+-----------------+
| Operating loss | | (2,013,179) | (3,450,300) |
+--------------------------------+-------+-----------------+-----------------+
| | | | |
+--------------------------------+-------+-----------------+-----------------+
| Finance income | | 338,121 | 985,243 |
| | | | |
+--------------------------------+-------+-----------------+-----------------+
| Loss on sale of | | (19,587) | (26,421) |
| available-for-sale investments | | | |
+--------------------------------+-------+-----------------+-----------------+
| | | | |
+--------------------------------+-------+-----------------+-----------------+
| Loss before taxation | | (1,694,645) | (2,491,478) |
+--------------------------------+-------+-----------------+-----------------+
| | | | |
+--------------------------------+-------+-----------------+-----------------+
| Taxation | | - | - |
+--------------------------------+-------+-----------------+-----------------+
| | | | |
+--------------------------------+-------+-----------------+-----------------+
| Loss for the financial year | | (1,694,645) | (2,491,478) |
| from continuing operations | | | |
+--------------------------------+-------+-----------------+-----------------+
| | | | |
+--------------------------------+-------+-----------------+-----------------+
| Discontinued operations: | | | |
+--------------------------------+-------+-----------------+-----------------+
| | | | |
+--------------------------------+-------+-----------------+-----------------+
| Profit for the financial year | | 396,557 | - |
| from discontinued operations | | | |
+--------------------------------+-------+-----------------+-----------------+
| | | | |
+--------------------------------+-------+-----------------+-----------------+
| Loss for the financial year | | (1,298,088) | (2,491,478) |
+--------------------------------+-------+-----------------+-----------------+
| | | | |
+--------------------------------+-------+-----------------+-----------------+
| Attributable to: | | | |
+--------------------------------+-------+-----------------+-----------------+
| Equity shareholders of the | | (1,298,088) | (2,491,478) |
| Company | | | |
+--------------------------------+-------+-----------------+-----------------+
| | | | |
+--------------------------------+-------+-----------------+-----------------+
| Loss per share from continuing | | | |
| and discontinued operations | | | |
+--------------------------------+-------+-----------------+-----------------+
| Basic and diluted loss per | | (0.55) | (1.34) |
| share (US cents) | | | |
+--------------------------------+-------+-----------------+-----------------+
| | | | |
+--------------------------------+-------+-----------------+-----------------+
| Loss per share from continuing | | | |
| operations | | | |
+--------------------------------+-------+-----------------+-----------------+
| Basic and diluted loss per | 2 | (0.72) | (1.34) |
| share (US cents) | | | |
+--------------------------------+-------+-----------------+-----------------+
Consolidated Balance Sheet
as at 30 June 2009
+--------------------------------+-------+-----------------+-----------------+
| | Notes | 2009 | 2008 |
| | | US$ | US$ |
+--------------------------------+-------+-----------------+-----------------+
| Assets | | | |
+--------------------------------+-------+-----------------+-----------------+
| Non-current assets | | | |
+--------------------------------+-------+-----------------+-----------------+
| Property, plant and equipment | | 11,769,386 | 2,196,494 |
+--------------------------------+-------+-----------------+-----------------+
| Intangible assets | | 61,911,429 | 41,499,037 |
+--------------------------------+-------+-----------------+-----------------+
| Available-for-sale financial | | 1,497,941 | 3,305,756 |
| assets | | | |
+--------------------------------+-------+-----------------+-----------------+
| | | 75,178,756 | 47,001,287 |
+--------------------------------+-------+-----------------+-----------------+
| | | | |
+--------------------------------+-------+-----------------+-----------------+
| Current assets | | | |
+--------------------------------+-------+-----------------+-----------------+
| Trade and other receivables | | 179,824 | 134,539 |
+--------------------------------+-------+-----------------+-----------------+
| Cash and cash equivalents | | 5,932,315 | 21,067,305 |
+--------------------------------+-------+-----------------+-----------------+
| | | 6,112,139 | 21,201,844 |
+--------------------------------+-------+-----------------+-----------------+
| | | | |
+--------------------------------+-------+-----------------+-----------------+
| Total assets | | 81,290,895 | 68,203,131 |
+--------------------------------+-------+-----------------+-----------------+
| | | | |
+--------------------------------+-------+-----------------+-----------------+
| Equity and liabilities | | | |
+--------------------------------+-------+-----------------+-----------------+
| Capital and reserves | | | |
| attributable to the Company's | | | |
| equity shareholders | | | |
+--------------------------------+-------+-----------------+-----------------+
| Share capital | | 1,219,415 | 998,622 |
+--------------------------------+-------+-----------------+-----------------+
| Share premium account | | 84,546,504 | 67,977,242 |
+--------------------------------+-------+-----------------+-----------------+
| Foreign exchange translation | | (2,698,549) | (290,050) |
| reserve | | | |
+--------------------------------+-------+-----------------+-----------------+
| Retained earnings | | (5,638,419) | (3,707,281) |
+--------------------------------+-------+-----------------+-----------------+
| Share-based payment reserve | | 815,639 | 748,584 |
+--------------------------------+-------+-----------------+-----------------+
| Merger reserve | | 180,533 | 180,533 |
+--------------------------------+-------+-----------------+-----------------+
| | | | |
+--------------------------------+-------+-----------------+-----------------+
| Total equity | | 78,425,123 | 65,907,650 |
+--------------------------------+-------+-----------------+-----------------+
| | | | |
+--------------------------------+-------+-----------------+-----------------+
| Current liabilities | | | |
+--------------------------------+-------+-----------------+-----------------+
| Trade and other payables | | 2,865,772 | 2,295,481 |
+--------------------------------+-------+-----------------+-----------------+
| | | | |
+--------------------------------+-------+-----------------+-----------------+
| Total liabilities | | 2,865,772 | 2,295,481 |
+--------------------------------+-------+-----------------+-----------------+
| | | | |
+--------------------------------+-------+-----------------+-----------------+
| Total equity and liabilities | | 81,290,895 | 68,203,131 |
+--------------------------------+-------+-----------------+-----------------+
Consolidated Cash Flow Statement
for the year ended 30 June 2009
+--------------------------------+-------+-----------------+-----------------+
| | Notes | 2009 | 2008 |
| | | US$ | US$ |
+--------------------------------+-------+-----------------+-----------------+
| Cash outflow from operating | 3 | (1,990,684) | (608,593) |
| activities | | | |
+--------------------------------+-------+-----------------+-----------------+
| | | | |
+--------------------------------+-------+-----------------+-----------------+
| Cash flow from investing | | | |
| activities | | | |
+--------------------------------+-------+-----------------+-----------------+
| Purchase of intangible assets | | (23,749,531) | (27,111,791) |
+--------------------------------+-------+-----------------+-----------------+
| Proceeds on disposal of | | - | 6,402 |
| intangible assets | | | |
+--------------------------------+-------+-----------------+-----------------+
| Purchase of property, plant | | (10,457,763) | (1,094,380) |
| and equipment | | | |
+--------------------------------+-------+-----------------+-----------------+
| Proceeds on disposal of | | - | 6,208 |
| property, plant and equipment | | | |
+--------------------------------+-------+-----------------+-----------------+
| Purchase of financial assets | | (185,557) | (1,755,506) |
+--------------------------------+-------+-----------------+-----------------+
| Proceeds on disposal of | | 747,153 | 305,974 |
| financial assets | | | |
+--------------------------------+-------+-----------------+-----------------+
| Dividends received | | 138,051 | 98,580 |
+--------------------------------+-------+-----------------+-----------------+
| Proceeds on disposal of | | 5,000,000 | - |
| project | | | |
+--------------------------------+-------+-----------------+-----------------+
| Interest received | | 200,070 | 886,663 |
+--------------------------------+-------+-----------------+-----------------+
| | | | |
+--------------------------------+-------+-----------------+-----------------+
| Net cash used in investing | | (28,307,557) | (28,657,850) |
| activities | | | |
+--------------------------------+-------+-----------------+-----------------+
| | | | |
+--------------------------------+-------+-----------------+-----------------+
| Cash flow from financing | | | |
| activities | | | |
+--------------------------------+-------+-----------------+-----------------+
| Proceeds on issue of new | | 17,663,460 | 29,207,213 |
| shares | | | |
+--------------------------------+-------+-----------------+-----------------+
| Expenses of new share issue | | (873,405) | (1,396,094) |
+--------------------------------+-------+-----------------+-----------------+
| | | | |
+--------------------------------+-------+-----------------+-----------------+
| Net cash generated from | | 16,790,055 | 27,811,119 |
| financing activities | | | |
+--------------------------------+-------+-----------------+-----------------+
| | | | |
+--------------------------------+-------+-----------------+-----------------+
| Net decrease in cash and cash | | (13,508,186) | (1,455,324) |
| equivalents | | | |
+--------------------------------+-------+-----------------+-----------------+
| | | | |
+--------------------------------+-------+-----------------+-----------------+
| Cash and cash equivalents at | | 21,067,305 | 22,611,746 |
| beginning of financial year | | | |
+--------------------------------+-------+-----------------+-----------------+
| | | | |
+--------------------------------+-------+-----------------+-----------------+
| Effects of exchange rate | | (1,626,804) | (89,117) |
| changes | | | |
+--------------------------------+-------+-----------------+-----------------+
| | | | |
+--------------------------------+-------+-----------------+-----------------+
| Cash and cash equivalents at | | 5,932,315 | 21,067,305 |
| end of financial year | | | |
+--------------------------------+-------+-----------------+-----------------+
Notes
1.Basis of Preparation
This announcement has been prepared in accordance with International Financial
Reporting Standards as adopted by the European Union ("EU") ("IFRS") applied in
accordance with the provisions of the Companies Act 2006.
IFRS is subject to amendment and interpretation by the International Accounting
Standards Board ("IASB") and the International Financial Reporting
Interpretations Committee ("IFRIC") and there is an ongoing process of review
and endorsement by the European Commission. These accounting policies comply
with each IFRS that is mandatory for accounting periods ending on 30 June 2009.
The accounting policies applied for the year ended 30 June 2009 are consistent
with the year ended 30 June 2008.
The financial statements have been prepared under the historical cost convention
as modified by the revaluation of available-for-sale investments which are
carried at fair value. The principal accounting policies have been consistently
applied to all periods presented.
2.Loss per share
Basic loss per share is calculated by dividing the earnings attributable to
ordinary shareholders by the weighted average number of ordinary shares
outstanding during the year.
Given the Group's reported loss for the year, share options are not taken into
account when determining the weighted average number of ordinary shares in issue
during the year and therefore the basic and diluted earnings per share are the
same.
+-----------------------------------------------+-------------+--------------+
| Basic loss per share | 2009 | 2008 |
| | US cents | US cents |
+-----------------------------------------------+-------------+--------------+
| Loss per share from continuing operations | (0.72) | - |
+-----------------------------------------------+-------------+--------------+
| Earnings per share from discontinued | 0.17 | - |
| operations | | |
+-----------------------------------------------+-------------+--------------+
| Total basic loss per share (US cents) | (0.55) | (1.34) |
+-----------------------------------------------+-------------+--------------+
| The earnings and weighted average number of | 2009 | 2008 |
| ordinary | US$ | US$ |
| shares used in the calculation of basic | | |
| earnings per share are as follows: | | |
+-----------------------------------------------+-------------+--------------+
| | | |
+-----------------------------------------------+-------------+--------------+
| Earnings used in the calculation of total | (1,298,088) | (2,491,478) |
| basic and diluted earnings per share | | |
+-----------------------------------------------+-------------+--------------+
| | | |
+-----------------------------------------------+-------------+--------------+
| Profit for the year from discontinued | 396,557 | - |
| operations used in the calculation of basic | | |
| and diluted earnings per share from | | |
| discontinued operations | | |
+-----------------------------------------------+-------------+--------------+
| | | |
+-----------------------------------------------+-------------+--------------+
| Earnings used in the calculation of basic | (1,694,645) | (2,491,478) |
| earnings per share from continuing operations | | |
+-----------------------------------------------+-------------+--------------+
| | | |
+-----------------------------------------------+-------------+--------------+
| | 2009 | 2008 |
+-----------------------------------------------+-------------+--------------+
| Number of shares | | |
+-----------------------------------------------+-------------+--------------+
| Weighted average number of ordinary shares | 234,475,130 | 185,983,238 |
| for the purposes of basic loss per share | | |
+-----------------------------------------------+-------------+--------------+
| | | |
+-----------------------------------------------+-------------+--------------+
| If the Company's share options were taken | | |
| into consideration in respect of the | | |
| Company's weighted average number of ordinary | | |
| shares for the purposes | | |
| of diluted earnings per share, it would be as | | |
| follows: | | |
+-----------------------------------------------+-------------+--------------+
| | | |
+-----------------------------------------------+-------------+--------------+
| Number of shares | | |
+-----------------------------------------------+-------------+--------------+
| Weighted average number of ordinary shares | 241,100,472 | 194,743,581 |
| for the purposes of diluted earnings per | | |
| share | | |
+-----------------------------------------------+-------------+--------------+
3.Cash outflow from operating activities
+-----------------------------------------------+-------------+--------------+
| | 2009 | 2008 |
| | US$ | US$ |
+-----------------------------------------------+-------------+--------------+
| | | |
+-----------------------------------------------+-------------+--------------+
| Loss for the financial year | (1,298,088) | (2,491,478) |
+-----------------------------------------------+-------------+--------------+
| Investment income | (338,121) | (985,243) |
+-----------------------------------------------+-------------+--------------+
| Transfer to share option reserve | 67,055 | 665,516 |
+-----------------------------------------------+-------------+--------------+
| Loss on disposal of available-for-sale | 19,587 | 26,421 |
| investments | | |
+-----------------------------------------------+-------------+--------------+
| Profit on disposal of property plant and | - | (1,311) |
| equipment | | |
+-----------------------------------------------+-------------+--------------+
| Gain on disposal of business | (370,321) | - |
+-----------------------------------------------+-------------+--------------+
| Depreciation | 11,892 | 78,100 |
+-----------------------------------------------+-------------+--------------+
| Amortisation | 4,353 | 4,730 |
+-----------------------------------------------+-------------+--------------+
| Impairment of exploration costs | - | 316,370 |
+-----------------------------------------------+-------------+--------------+
| Net foreign exchange (gain) / loss | (181,000) | 144,677 |
+-----------------------------------------------+-------------+--------------+
| | (2,084,643) | (2,242,218) |
+-----------------------------------------------+-------------+--------------+
| Changes in working capital | | |
+-----------------------------------------------+-------------+--------------+
| (Increase)/decrease in trade and other | (45,285) | 263,096 |
| receivables | | |
+-----------------------------------------------+-------------+--------------+
| Increase in trade and other payables | 139,244 | 1,370,529 |
+-----------------------------------------------+-------------+--------------+
| | | |
+-----------------------------------------------+-------------+--------------+
| Net cash outflow from operating activities | (1,990,684) | (608,593) |
+-----------------------------------------------+-------------+--------------+
4.Publication of non-statutory accounts
The financial information set out in this announcement does not comprise the
Group`s statutory accounts for the years ended 30 June 2009 or 30 June 2008.
The financial information has been extracted from the statutory accounts of the
Company for the years ended 30 June 2009 or 30 June 2008. The auditors reported
on those accounts; their reports were unqualified and did not contain a
statement under either section 498(2) or section 498(3) of the Companies Act
2006 or section 237(2) or section 237(3) of the Companies Act 1985 respectively
and did not include references to any matters to which the auditor drew
attention to by way of emphasis.
The statutory accounts for the year ended 30 June 2008 have been delivered to
the Registrar of Companies, whereas those for the year ended 30 June 2009 will
be delivered to the Registrar of Companies following the Company`s Annual
General Meeting.
5.Annual Report and AGM
The Annual Report will be available from the Company`s website,
www.nighthawkenergy.com, from 7 October 2009 and will be posted to shareholders
by 15 October 2009. The Annual Report contains notice of the Annual General
Meeting of the Company which will be held at 11.00 a.m. on 12 November 2009 at
the offices of Osborne Clarke, One London Wall, London EC2Y 5EB.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR FSUFUMSUSELS
Nighthawk Energy (LSE:HAWK)
Historical Stock Chart
From Sep 2024 to Oct 2024
Nighthawk Energy (LSE:HAWK)
Historical Stock Chart
From Oct 2023 to Oct 2024
