TIDMHAWK
RNS Number : 7706R
Nighthawk Energy plc
26 September 2017
26 September 2017
NIGHTHAWK ENERGY PLC
("Nighthawk" or "the Company")
Unaudited
Interim Results for the six months ended 30 June 2017
Nighthawk, the US focused oil development and production company
(AIM: HAWK and OTCQX: NHEGY), announces its unaudited interim
results for the six months ended 30 June 2017 ("1H17").
First half 2017 Operational Summary
-- Oil sales volumes lower than six months ended 30 June 2016 ("1H16")
o 1H17 total sales of 222,375 barrels of oil, gross (1H16:
249,609 barrels of oil, gross)
o 1H17 sales of 1,235 bopd, gross (1H16: 1,371 bopd, gross)
-- Production decreased due to no new drilling activity and
normal reserve decline which was offset in part by production
enhancement projects within existing wells
-- Secondary recovery water flood pilot project at Arikaree Creek implemented in Q4 2016.
o Potential to deliver increase in reserves; potential borrowing
base
o Production and operating cash flows started in Q1 2017
First half 2017 Financial Summary
-- Group total revenues for 1H17 lower than 1H16 due to lower
hedging profits and sales volumes, offset by higher realised sales
price
o Revenues US$8.7 million (1H16: US$9.4 million)
o Realised oil price US$46.95 per barrel (excluding hedging)
(1H16: US$33.73 per barrel (excluding hedging))
-- Normalised EBITDA(1) for 1H17 US$2.0 million or US$12.25 per
barrel, net (1H16: US$3.1 million or US$15.13 per barrel, net)
-- No non-cash impairment charges recognized in exceptional administrative expenses.
-- US$1.9 million invested in 1H17 (1H16: US$0.7 million) in
capital improvement projects including the water flood pilot
project
-- Principal reduction of US$1.75 million made to in accordance
with renegotiation of existing reserve based loan agreement
-- Cash balances of US$3.1 million at 30 June 2017, and US$1.2 million at 31 August 2017
Waiver of Rule 9 of the UK Takeover Code
Further to its announcement on 30 August 2017, the Company
continues the process of preparation of a Circular in relation to a
waiver of Rule 9 of the Takeover Code in relation to the share
payment option for deferred interest and/or royalties. A further
announcement will be made in due course.
Notes:
1. Normalised EBITDA is operating profit adjusted for
depreciation, amortisation, contribution from test revenue and
exceptional administrative items. Refer to the Chief Financial
Officer's statement.
Enquiries:
Nighthawk Energy plc
Rick McCullough, Chairman +1 303 407 9600
Kurtis Hooley, Chief
Financial Officer +44 (0) 20 3582 1350
Stockdale Securities
Limited +44 (0) 20 7601 6100
Richard Johnson
Edward Thomas
Chairman's Statement
Dear Fellow Shareholders:
The first half of 2017 has been a period of some optimism
regarding oil prices, however continued unpredictability regarding
US and world energy market demand maintains its dominance in
directing a sustainable recovery in oil prices. The commodity
markets, in particular the oil market in which the Company
participates, is in its third year of excess supply and
historically low prices. As the industry exited 2016, US oil
production was in decline, OPEC was negotiating and implemented a
production freeze and prices were projected to approach the mid
$50s. Nighthawk took advantage of this uptick in pricing and
successfully hedged substantial amounts of early 2017 production at
prices in the $52-55 range. However, with this early improvement in
pricing, US operators demonstrated their resiliency and began
increasing production levels again resulting in current prices
hovering in the high $40 to $50 range. Unfortunately, the price
sensitivity seen over the last several years is likely to persist
until production supply and market demand reach a state of
equilibrium.
Nighthawk wrapped up two major projects as 2016 came to a close:
One, was the successful resolution of the drilling commitment in
the Monarch Joint Venture, and the second was the completion of the
Arikaree Creek Water Flood Pilot Project ("Pilot Project").
In late December 2016, the Company reached a settlement with
Cascade Petroleum, whereby alleviating a two well drilling
commitment associated with the Monarch acreage. Not only was the
Company able to eliminate the drilling commitment in exchange for
spending $75k on an up-hole completion of the Monarch 10-15 well,
but the Company was able to retain a minority interest in the well.
This was a positive, win-win deal for the parties and may lead to
potential new drilling locations in the future, as outlined in the
recent operational presentation posted to the Nighthawk website on
3 August 2017.
While 2017 has picked up where 2016 left off, with continued oil
price volatility precipitating the need for a postponement of new
well site development, the implementation of the Pilot Project is
expected to increase production volumes at the well sites in the
southern water flood facility, thereby increasing future
incremental reserves.
The Pilot Project has been building in pressure and is showing
early signs of response, with a measurable reduction to the natural
decline curve and some slight increases to production levels.
However, the Company reserves, as determined by external reservoir
engineers, do not include any potential incremental reserves as
proved developed producing reserves and as such, our borrowing base
continues to fall short of the reserve base loan lenders
outstanding loan balance.
The Company reviewed the preliminary results from the Pilot
Project with the primary lender on 30 June 2017 and finalized
renegotiations with Commonwealth Bank of Australia ("CBA") on the
existing reserve based credit facility. The amended agreement
required the Company to pay $1.75 million as a reduction of
outstanding principal and restructure certain of our existing
unsecured debt arrangements to forgo existing interest and royalty
payments on those loans. The term of the CBA credit facility was
also modified to expire 31 December 2017. On 30 August 2017, the
Company announced the agreement with the existing unsecured note
holders to defer the interest and royalty payments for the
encompassed loans until 30 June 2018. We appreciate the support
that our bank and noteholders continue to express on behalf of the
Company in these difficult financial times.
As the Company reported in the year-end 2016 audited financial
statements, the auditor's opinion included an emphasis of matter
paragraph regarding the Company's ability to continue as a going
concern. This was included in the financial statements due to the
uncertainty and terms regarding renegotiation of our existing loan
facility with CBA. As noted above, the Company was able to
renegotiate the loan facility subsequent to the release of the
year-end financials but, due to the modified term of the loan, the
uncertainty around the Company's ability to refinance or repay the
loan with CBA remains as a consideration.
In August, a Company presentation was posted to the Nighthawk-
website to help illustrate the value potential associated with
certain of the Company's existing assets. For example, while the
drilling in Monarch in late 2015 was unsuccessful, a post drilling
analysis provided a greater understanding of the physical structure
of the Broken Spear field south of Arikaree Creek, where there are
three producing Spergen wells. There is also potential in the
Pennsylvania zones, located within the Monarch field, which have
been tested through completion of the 10-15 well. While the
economics of drilling additional wells in these areas appears
attractive, the Company must consider these as prospective projects
until such time as cash flows have improved from a sustained
improvement to oil prices. Though the Company considers the value
creation opportunity to be attractive.
In closing, I would like to personally thank all our
shareholders, noteholders, employees and business partners for your
continued support. And I especially want to thank our largest
shareholders, who continue to lead the way in their show of support
for the Company.
Rick McCullough
Executive Chairman
25 September 2017
Chief Financial Officer's Statement
All amounts are shown in US$
Except for barrels sold
The following is a summary of the consolidated income statement,
including information related to barrels ("bbls") sold, daily
average bbls sold and average sales price per bbl:
Six months ended
30 June
Six months
ended 31 Year ended
December 31 December
2017 2016 2016* 2016
--------------------------- ------------------------------ --------------------------------- ------------------------------
(Unaudited) (Unaudited) (Audited)
Continuing
operations:
Revenue $ 8,717,893 $ 9,409,498 $ 8,613,835 $ 18,023,333
Cost of sales (6,959,293) (4,612,902) (5,448,121) (10,061,023)
Gross profit 1,758,600 4,796,596 3,165,714 7,962,310
--------------------------- ------------------------------ --------------------------------- ------------------------------
Administrative
expenses (2,173,941) (3,274,391) (2,517,600) (5,791,991)
Exceptional
expenses - - (6,797,041) (6,797,041)
--------------------------- ------------------------------ --------------------------------- ------------------------------
Total
administrative
expenses (2,173,941) (3,274,391) (9,314,641) (12,589,032)
--------------------------- ------------------------------ --------------------------------- ------------------------------
Operating
profit
(loss) (415,341) 1,522,205 (6,148,927) (4,626,722)
Finance income 737 38 544 582
Finance costs (2,397,629) (4,574,408) (3,597,611) (8,172,019)
Loss before
taxation (2,812,233) (3,052,165) (9,745,994) (12,798,159)
--------------------------- ------------------------------ --------------------------------- ------------------------------
Taxation (35,986) (1,036,431) (383,540) (1,419,971)
Loss for the
financial
period and
attributable
to equity
shareholders
of the Company $ (2,848,219) $ (4,088,596) $ (10,129,534) $ (14,218,130)
=========================== ============================== ================================= ==============================
Bbls sold:
Gross 222,375 249,609 233,586 483,195
Net barrels 162,891 204,507 189,917 394,424
Daily average
Bbls sold
Gross 1,235 1,371 1,276 1,320
Net 905 1,124 1,038 1,077
Average sales
price per bbl $46.95 $33.73 $42.80 $38.10
*The period has been extracted as the difference between the
audited year end 31 December 2016 and the unaudited period 30 June
2016.
Sales Volume and price
During the six months ended 30 June 2017, the Company
experienced gross and net sales volume declines of 27,234 bbls and
41,616 bbls, respectively, or approximately 11% and 20%
respectively, as compared to the six months ended 30 June 2016
("1H17 to 1H16"). Compared to the six months ended 31 December
2016, the Company experienced gross and net sales volume declines
of 11,211 bbls and 27,026 bbls, respectively, or approximately 5%
and 14% respectively, for the six months ended 30 June 2017 ("1H17
to 2H16"). The decrease from both prior year periods was primarily
the result of normal volume declines in the Company's producing
wells. The Company's average Net Revenue Interest changed from
approximately 82% at 30 June 2016 to approximately 73% at 30 June
2017 due to the inclusion of volumes from the Monarch 10-15 well,
in which the Company owns a 16% interest.
The average sales price per bbl increased by $13.22, or 39.2%,
in 1H17 compared to 1H16, and by $4.15, or 9.7%, in 1H17 compared
to 2H16. The modest improvement in the price per bbl is due, in
part, to reduced output by OPEC in an effort to shift away from the
market share strategy employed since 2014 to a policy more focused
on price recovery and management. Global economic growth and energy
demand forecasts have been collectively overestimated the last few
years, creating a glut in crude oil supply, which continues to
place downward pressure on the stabilization of crude oil
prices.
Revenue
The following is a comparative summary of net oil sales volumes,
prices and revenues, including the impact of commodity derivative
settlements.
Six months ended
30 June
Six months
ended 31 Year ended
December 31 December
2017 2016 2016* 2016
---------------------- ------------------------------ ------------------------------ ---------------------------
(Unaudited) (Unaudited) (Audited)
Oil sales
volume
(net) 162,891 204,507 189,917 394,424
Average oil
price
(per bbl) $46.95 $33.73 $42.80 $38.10
Oil sales
revenue $ 7,647,706 $ 6,898,330 $ 8,129,157 $ 15,027,487
Gains on
hedging
instruments
reclassified
from equity to
profit or loss 237,227 2,491,235 1,195,161 3,686,396
Mark-to-market
gains/(losses) 825,407 - (744,424) (744,424)
Other income 7,553 19,933 33,941 53,874
---------------------- ------------------------------ ---------------------------
Total Revenue $ 8,717,893 $ 9,409,498 $ 8,613,835 $ 18,023,333
====================== ============================== ============================== ===========================
*The period has been extracted as the difference between the
audited year end 31 December 2016 and the unaudited period 30 June
2016.
The decline in sales volumes was buoyed by the improved sales
price per bbl to create an overall increase in oil sales revenue of
$0.7 million or 10.9% for 1H17 compared to 1H16, however the
declining production volumes, when coupled with a more lateral
sales price per bbl, resulted in a decline of $0.5 million or 5.9%
for 1H17 compared to 2H16. The decline in oil sales revenue was
partially mitigated by the Company's commodity derivatives hedging
program.
Gains on hedging instruments totaled $0.2 million, $2.5 million
and $1.2 million for the six months ended 30 June 2017 and 2016,
and for the six months ended 31 December 2016, respectively. Gains
on hedging instruments for 1H17 compared to 1H16 declined $2.3
million or 90%, and for 1H17 compared to 2H16 declined $1.0 million
or 80% as a result of existing positions settling and the Company
not entering into new contracts after the precipitous decline in
oil prices.
Mark-to-market gains(losses) totaled $0.8 million, nil and
$(0.7) million for the six months ended 30 June 2017 and 2016, and
for the six months ended 31 December 2016, respectively.
Mark-to-market gains for 1H17 compared to 1H16 increased $0.8
million due to new non-hedge accounting derivative instruments
being put in place in the second half of 2016. For 1H17 compared to
2H16, an increase of $1.6 million is result of market change of oil
prices and the Company entering into new contracts.
Cost of Sales
The following is a comparative summary of cost of sales:
Six months ended
30 June
Six months
ended 31 Year ended
December 31 December
2017 2016 2016* 2016
--------------------------- ------------------------------ ------------------------------------- ---------------------------------
(Unaudited) (Unaudited) (Audited)
Production
taxes $ 576,664 $ 519,813 $ 447,222 $ 967,035
Lease
operating
expenses 3,897,864 2,420,829 2,695,315 5,116,144
Depreciation 2,373,852 1,511,636 2,071,279 3,582,915
Contribution
from test
revenue - - - -
Revenue and
profit share
and other 110,913 160,624 234,305 394,929
--------------------------- ------------------------------ ---------------------------------
Total Cost
of Sales $ 6,959,293 $ 4,612,902 $ 5,448,121 $ 10,061,023
=========================== ============================== ===================================== =================================
*The period has been extracted as the difference between the
audited year end 31 December 2016 and the unaudited period 30 June
2016.
Lease operating expenses ("LOE") for 1H17 compared to 1H16
increased $1.5 million or 61%. LOE per barrel of oil equivalent
("BOE") for 1H17 compared to 1H16 increased $7.83 per gross BOE
($12.09 per net BOE) to $17.53 per gross BOE ($23.93 per net BOE)
from $9.70 per gross BOE ($11.84 per net BOE). The increase to LOE
and LOE per BOE was the result of the implementation of the Pilot
Project in Q4 of 2016. Whilst the Pilot Project generated positive
margin for 1H17, the volumetric response has been slow as the
reservoir pressure has slowly increased. When pressure from the
Pilot Project has sufficiently increased, costs incurred for the
project will be offset by improved production volumes and equate to
a decrease in LOE when measured on a BOE basis.
LOE for 1H17 compared to 2H16 increased $1.2 million or 45%. LOE
per BOE for 1H17 compared to 2H16 increased $5.99 per gross BOE
($9.74 per net BOE) to $17.53 per gross BOE ($23.93 per net BOE)
from $11.54 per gross BOE ($14.19 per net BOE). This increase to
LOE and LOE per BOE was due to the Pilot Project implementation
discussed in previous paragraph.
Production taxes totaled $0.6 million, $0.5 million and $0.4
million for the six months ended 30 June 2017 and 2016, and for the
six months ended 31 December 2016, respectively. Production taxes
are comprised of three separate components:
Severance Taxes: Severance tax rates are established by the
State of Colorado and are calculated based upon the gross sales
value realized each production month, which increases/decreases
depending upon prevailing crude oil prices and produced oil
volumes.
Conservation Taxes: Conservation taxes are calculated at a set
rate established by the State of Colorado based upon produced oil
volumes each production month.
Ad valorem Taxes: Ad valorem tax rates are established by the
county the producing well resides in and are variable from one year
to the next, with a portion of the assessment applied against the
reported gross sales value realized each production month also
being available as a tax credit for the Company's severance tax
obligation.
As the significant portion of the production taxes are based
upon a percentage of oil revenue, increase or decrease is driven by
revenue results discussed above.
Depreciation totaled $2.4 million, $1.5 million and $2.1 million
for the six months ended 30 June 2017 and 2016, respectively, and
for the six months ended 31 December 2016, respectively.
Depreciation for 1H17 compared to 1H16 increased $0.9 million or
57%, and for 1H17 compared to 2H16 increased $0.3 million or 15%.
Depreciation per BOE for 1H17 compared to 1H16 increased $4.61 per
gross BOE ($7.18 per net BOE) to $10.67 per gross BOE ($14.57 per
net BOE) from $6.06 per gross BOE ($7.39 per net BOE). Depreciation
per BOE for 1H17 compared to 2H16 increased $1.80 per gross BOE
($3.66 per net BOE) to $10.67 per gross BOE ($14.57 per net BOE)
from $8.87 per gross BOE ($10.91 per net BOE). The increase from
prior year periods is due to increased depreciable costs associated
with capital improvements and increased P&A provisions for
producing wells.
Administrative Expenses
Administrative expenses, excluding exceptional items, during the
period ended 30 June 2017 were $2.2 million as compared to $3.3
million for the six months ended 30 June 2016. The decrease from
the same 2016 period was primarily due to a reduction in legal
services associated with pending litigation matters resolved on 19
September 2016. Compared to 2H16 administrative expenses decreased
$0.3 million to $2.2 million from $2.5 million primarily due to a
reduction in legal costs for the first half of 2017.
Exceptional administrative expenses were nil for the periods
ending 30 June 2017 and 30 June 2016. Expenses for the year ended
31 December 2016 consisted of impairment of exploration and
production assets of $7.1 million, and a $(0.3) million release of
the contingent consideration provision, for a total exceptional
administrative expense of $6.8 million for 2016.
Finance costs
Finance costs were $2.4 million and $4.6 million for the six
months ended 30 June 2017 and 2016, respectively. For 1H17 compared
to 1H16, the decrease of $2.2 million was primarily related to a
loss on rescheduling of the CBA bank loan of nil for 1H17, as
compared to $0.7 million for 1H16, and an exchange rate gain on
financial instruments of $0.8 million for 1H17, as compared to a
loss of $1.1 million for 1H16.
Taxation
Taxation was $0.04 million and $1.0 million for the six months
ended 30 June 2017 and 2016, respectively. The tax charges for the
respective periods represent the recycling of deferred tax
liabilities held in the hedging reserve that relate to gains on the
Company's hedges realised during the period.
Cash Flows
The following is a summary of cash flows from operating,
investing and financing activities.
Six months ended
30 June
Six months
ended 31 Year ended
December 31 December
2017 2016 2016* 2016
Cash flows
from: (Unaudited) (Unaudited) (Audited)
Operating
activities $ 934,913 $ 1,982,341 $ 4,838,803 $ 6,821,144
Investing
activities (1,925,126) (760,244) (2,734,410) (3,494,654)
Financing
activities (1,521,277) (5,432,250) 2,048,210 (3,384,040)
---------------- ----------------------- -------------------------- ---------------------------
Net change in
cash
and cash
equivalents $ (2,511,490) $ (4,210,153) $ 4,152,603 $ (57,550)
================ ======================= ========================== ===========================
*The period has been extracted as the difference between the
audited year end 31 December 2016 and the unaudited period 30 June
2016.
Net cash flows from operating activities declined $1.0 million
for the period ended 30 June 2017 as compared to the same period in
2016, and $3.9 million for 1H17 compared to 2H17. The decline is
primarily due to decreasing production levels combined with
increased LOE costs associated with the Pilot Project, well site
maintenance and operating costs associated with an aging well
population.
Net cash flows used in investing activities increased $1.2
million for the period ended 30 June 2017 as compared to the same
period in 2016. This increase is largely due to well site workover
activities and capital improvement projects completed during the
first half of 2017. When compared to 2H16, the reduction to cash
flows from investing activities of $0.8 million was largely due to
a decrease in capital expenditures resulting from spending related
the Pilot Project which was under primary construction during Q3
and Q4 of 2016 and completed during the first half of 2017.
Net cash flows used in financing activities during the period
ended 30 June 2017 were reduced by $3.9 million when compared to
the same period during 2016. Financing activities during 1H17
included $1.5 million in interest and finance lease payments and
nil in principal reduction payments, wherein financing activities
during 1H16 included $1.4 million in interest payments and an
additional $4.0 million in principal reduction payments on the
Company's reserves-based lending bank facility ("RBL") with
Commonwealth Bank of Australia ("CBA"). When compared to 2H16,
financing activities for 1H17 increased by $3.6 million as a result
of an escalation in interest and finance lease payments of $0.6
million and the absence of proceeds on the issuance of new loans
from the second half of 2016 for the $3.0 million capital raise to
fund the Pilot Project.
At 30 June 2017, the Company held cash balances of $3.1 million
as compared to $1.5 million at 30 June 2016 and $5.6 million at 31
December 2016. On 30 June 2017, the Company amended its credit
facility with CBA to include a change of the maturity date to 31
December 2017 and made an additional principal reduction payment of
$1.75 million on 07 July 2017, thereby reducing the principal
balance of the existing RBL facility with CBA to $21.25
million.
Subsequent to 30 June 2017, the Company also amended certain
existing unsecured borrowings for the purpose of deferring interest
and certain overriding royalty and profit sharing payments until
after the CBA RBL facility maturity date, refer to Note 9 for
detail.
The following is a summary of normalised operating profit and
EBITDA before exceptional administrative expenses, including on a
per gross and net barrel sold basis:
Six months ended 30
June
Year ended
31 December
2017 2016 2016
(Unaudited) (Audited)
Operating
profit (loss) $ (415,341) $ 1,522,205 $ (4,626,722)
Exceptional
expenses - - 6,797,041
------------------------------------ ------------------------------------ ---------------------------
Normalised
operating
profit before
exceptional
administrative
items (415,341) 1,522,205 2,170,319
Depreciation,
amortisation
and
contribution
from
test revenue 2,411,219 1,571,983 3,677,776
------------------------------------ ------------------------------------ ---------------------------
Normalised
EBITDA before
exceptional
administrative
items $ 1,995,878 $ 3,094,188 $ 5,848,095
==================================== ==================================== ===========================
Normalised
EBITDA per
bbl sold - Net $ 12.25 $15.13 $14.83
1. Normalised operating profit is operating profit adjusted for
exceptional administrative items.
2. Normalised earnings before interest, taxation, depreciation
and amortisation ("NEBITDA") is operating profit adjusted for
depreciation, amortisation, contribution from test revenue and
exceptional administrative items.
As shown in the table above, excluding the effect of exceptional
items, the Company was able to maintain a relatively consistent
Normalised EBITDA per bbl sold for the periods presented even
during periods of price and sales volume volatility.
Kurtis Hooley
Chief Financial Officer
25 September 2017
Independent Review Report to Nighthawk Energy plc
Introduction
We have been engaged by the company to review the set of
financial statements in the interim financial report for the six
months ended 30 June 2017 which comprises the Consolidated Income
statement, Consolidated Statement of Comprehensive Income,
Consolidated Balance Sheet, Consolidated Statement of Changes in
Equity, Consolidated Cash Flow Statement and related notes.
We have read the other information contained in the interim
report and considered whether it contains any apparent
misstatements or material inconsistencies with the information in
the set of financial statements.
Directors' responsibilities
The interim report, including the financial information
contained therein, is the responsibility of and has been approved
by the directors. The directors are responsible for preparing the
interim report in accordance with the rules of the London Stock
Exchange for companies trading securities on AIM which require that
the half-yearly report be presented and prepared in a form
consistent with that which will be adopted in the company's annual
accounts having regard to the accounting standards applicable to
such annual accounts.
Our responsibility
Our responsibility is to express to the company a conclusion on
the condensed set of financial statements in the interim financial
report based on our review.
Our report has been prepared in accordance with the terms of our
engagement to assist the company in meeting the requirements of the
rules of the London Stock Exchange for companies trading securities
on AIM and for no other purpose. No person is entitled to rely on
this report unless such a person is a person entitled to rely upon
this report by virtue of and for the purpose of our terms of
engagement or has been expressly authorised to do so by our prior
written consent. Save as above, we do not accept responsibility for
this report to any other person or for any other purpose and we
hereby expressly disclaim any and all such liability
Scope of review
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410, "Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity", issued by the Auditing Practices Board for use in
the United Kingdom. A review of interim financial information
consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other
review procedures. A review is substantially less in scope than an
audit conducted in accordance with International Standards on
Auditing (UK) and consequently does not enable us to obtain
assurance that we would become aware of all significant matters
that might be identified in an audit. Accordingly, we do not
express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that
causes us to believe that the financial statements in the interim
report for the six months ended 30 June 2017 is not prepared, in
all material respects, in accordance with the rules of the London
Stock Exchange for companies trading securities on AIM.
Emphasis of matter - Going concern
In forming our review conclusion, which is not modified, we have
considered the adequacy of the disclosures made in note 2 to the
financial statements concerning the group's ability to continue as
a going concern. The group's cash flow forecasts indicate that its
ability to meet its liabilities as they fall due for next 12 months
is dependent upon securing alternative funding.
These conditions indicate the existence of a material
uncertainty which may cast significant doubt as to the group's
ability to continue as a going concern. The financial statements do
not include the adjustments that would result if the group was
unable to continue as a going concern.
BDO LLP
Chartered Accountants and Registered Auditors
London
United Kingdom
25 September 2017
BDO LLP is a limited liability partnership registered in England
and Wales (with registered number OC305127).
Unaudited Consolidated Income Statement
All amounts are shown in US$
Six months ended
30 June
Year ended
31 December
Notes 2017 2016 2016
(Unaudited) (Audited)
Continuing
operations:
Revenue 3 8,717,893 9,409,498 18,023,333
Cost of sales 4 (6,959,293) (4,612,902) (10,061,023)
Gross profit 1,758,600 4,796,596 7,962,310
Administrative
expenses (2,173,941) (3,274,391) (5,791,991)
Exceptional
expenses 5 - - (6,797,041)
Total
administrative
expenses (2,173,941) (3,274,391) (12,589,032)
Operating
profit (loss) (415,341) 1,522,205 (4,626,722)
Finance income 737 38 582
Finance costs 6,9 (2,397,629) (4,574,408) (8,172,019)
Loss before
taxation (2,812,233) (3,052,165) (12,798,159)
Taxation 8 (35,986) (1,036,431) (1,419,971)
Earnings for
the financial
period and
attributable
to equity
shareholders
of the Company (2,848,219) (4,088,596) (14,218,130)
Earnings per
share
attributable
to the equity
shareholders
of the Company
Basic 7 (0.00) (0.00) (0.01)
============================ ============================== ===================================
Diluted 7 (0.00) (0.00) (0.01)
============================ ============================== ===================================
Unaudited Consolidated Statement of Comprehensive Income
All amounts are shown in US$
6 months ended
30 June
Year ended
31 December
Notes 2017 2016 2016
(Unaudited) (Audited)
Earnings for the financial
period 7 (2,848,219) (4,088,596) (14,218,130)
---------------------- ---------------------- -------------------------------
Other comprehensive
income(expense)
Hedging gain reclassified
to profit or loss 3 (237,227) (2,491,235) (3,686,396)
Deferred tax on hedging
gain reclassified to
profit and loss 84,456 886,915 1,312,409
Items that may be
reclassified
subsequently to profit
or loss:
Foreign exchange gains
(loss) on consolidation (1,406,381) 2,629,018 4,438,314
Fair value (loss) gain
on hedging instruments
designated in cash flow
hedges 135,585 (415,616) (311,695)
Deferred tax on fair
value (loss) gain on
hedging instruments
designated in cash flow
hedges 8 (48,270) 147,966 110,968
Other comprehensive
income (expense) for
the financial period,
net of tax (1,471,837) 757,048 1,863,600
---------------------- ---------------------- -------------------------------
Total comprehensive
expense for the financial
period attributable
to the equity shareholders
of the Company (4,320,056) (3,331,548) (12,354,530)
====================== ====================== ===============================
Unaudited Consolidated Balance Sheet
All amounts are shown in US$
As at 30 June
As at 31
December
Notes 2017 2016 2016
Assets (Unaudited) (Audited)
Non-current assets
Property, plant and equipment 23,166,254 22,312,712 22,704,185
Intangibles 8,714,463 14,306,138 8,274,560
Derivative financial assets - 178,907 -
-------------------------- ------------------ -------------------------
31,880,717 36,797,757 30,978,745
-------------------------- ------------------ -------------------------
Current assets
Inventory 805,103 886,540 785,904
Derivative financial assets 228,060 1,242,036 329,702
Trade and other receivables 2,035,262 2,893,820 2,353,503
Cash and cash equivalents 3,105,540 1,529,642 5,569,041
6,173,965 6,552,038 9,038,150
Total Assets 38,054,682 43,349,795 40,016,895
========================== ================== =========================
Equity and Liabilities
Capital and reserves attributable
to the Company's equity
shareholders:
Share capital 10 4,007,795 4,007,795 4,007,795
Share premium account 1,402,644 1,402,644 1,402,644
Foreign exchange translation
reserve 10,745,233 10,342,323 12,151,619
Special (restricted) reserve 29,760,145 29,760,145 29,760,145
Retained deficit (82,459,336) (69,739,369) (79,611,117)
Share-based payment reserve 5,162,434 5,392,876 5,157,045
Equity option on convertible
loans 6,992,276 6,992,276 6,992,276
Cash flow hedging reserve 146,868 915,068 212,324
Total equity (24,241,941) (10,926,242) (19,927,269)
-------------------------- ------------------ -------------------------
Current liabilities
Trade and other payables 4,889,746 3,911,722 6,425,562
Borrowings 9 23,000,000 23,000,000 23,139,502
-------------------------- ------------------ -------------------------
27,889,746 26,911,722 29,565,064
-------------------------- ------------------ -------------------------
Non-current liabilities
Borrowings 9 30,076,144 24,160,164 27,402,697
Provisions 4,330,733 3,204,151 2,976,403
-------------------------- ------------------ -------------------------
Total non-current liabilities 34,406,877 27,364,315 30,379,100
-------------------------- ------------------ -------------------------
Total liabilities 62,296,623 54,276,037 59,944,163
-------------------------- ------------------ -------------------------
Total Equity and Liabilities 38,054,682 43,349,795 40,016,895
========================== ================== =========================
Unaudited Consolidated Statement of Changes in Equity
For the six months ended 30 June 2017
All amounts are shown in US$
Share Share Foreign Special Retained Share Equity Cash Total
capital Premium Exchange (restricted) earnings Based option flow
account Translation reserve Payment on hedging
reserve reserve convertible reserve
loans
Balance at
1 January
2016 4,007,795 1,402,644 7,713,305 29,760,145 (65,650,773) 5,367,376 6,992,276 2,787,038 (7,620,194)
--------------- --------------------- --------------------- ------------------------ ------------------------ ------------------------- --------------------- --------------------- ------------------------------ ------------------------
Loss for the
period - - - - (4,088,596) - - - (4,088,596)
--------------- --------------------- --------------------- ------------------------ ------------------------ ------------------------- --------------------- --------------------- ------------------------------ ------------------------
Share-based
payments - - - - - 25,500 - - 25,500
--------------- --------------------- --------------------- ------------------------ ------------------------ ------------------------- --------------------- --------------------- ------------------------------ ------------------------
Foreign
exchange
loss on
consolidation - - 2,629,018 - - - - - 2,629,018
--------------- --------------------- --------------------- ------------------------ ------------------------ ------------------------- --------------------- --------------------- ------------------------------ ------------------------
Loss on
hedging
instruments
designated in
cash flow
hedges - - - - - - - (415,616) (415,616)
--------------- --------------------- --------------------- ------------------------ ------------------------ ------------------------- --------------------- --------------------- ------------------------------ ------------------------
Deferred tax
on hedging
instruments
designated in
cash flow
hedges - - - - - - - 147,966 147,966
--------------- --------------------- --------------------- ------------------------ ------------------------ ------------------------- --------------------- --------------------- ------------------------------ ------------------------
Gain
reclassified
to profit or
loss - - - - - - - (2,491,235) (2,491,235)
--------------- --------------------- --------------------- ------------------------ ------------------------ ------------------------- --------------------- --------------------- ------------------------------ ------------------------
Deferred tax
on gain
reclassified
to profit or
loss - - - - - - - 886,915 886,915
--------------------- --------------------- ------------------------ ------------------------ ------------------------- --------------------- --------------------- ------------------------------ ------------------------
Balance at 30
June 2016 4,007,795 1,402,644 10,342,323 29,760,145 (69,739,369) 5,392,876 6,992,276 915,068 (10,926,242)
--------------- --------------------- --------------------- ------------------------ ------------------------ ------------------------- --------------------- --------------------- ------------------------------ ------------------------
Loss for the
period - - - - (10,129,534) - - - (10,129,534)
--------------- --------------------- --------------------- ------------------------ ------------------------ ------------------------- --------------------- --------------------- ------------------------------ ------------------------
Share-based
payments - - - - - 21,955 - - 21,955
--------------- --------------------- --------------------- ------------------------ ------------------------ ------------------------- --------------------- --------------------- ------------------------------ ------------------------
Foreign
exchange
loss on
consolidation - - 1,809,296 - - - - - 1,809,296
--------------- --------------------- --------------------- ------------------------ ------------------------ ------------------------- --------------------- --------------------- ------------------------------ ------------------------
Loss on
hedging
instruments
designated in
cash flow
hedges - - - - - - - 103,921 103,921
--------------- --------------------- --------------------- ------------------------ ------------------------ ------------------------- --------------------- --------------------- ------------------------------ ------------------------
Deferred tax
on hedging
instruments
designated in
cash flow
hedges - - - - - - - (36,998) (36,998)
--------------- --------------------- --------------------- ------------------------ ------------------------ ------------------------- --------------------- --------------------- ------------------------------ ------------------------
Gain
reclassified
to profit or
loss - - - - - - - (1,195,161) (1,195,161)
--------------- --------------------- --------------------- ------------------------ ------------------------ ------------------------- --------------------- --------------------- ------------------------------ ------------------------
Deferred tax
on gain
reclassified
to profit or
loss - - - - - - - 425,494 425,494
--------------- --------------------- --------------------- ------------------------ ------------------------ ------------------------- --------------------- --------------------- ------------------------------ ------------------------
Exercised and
expired
options
and warrants - - - - 257,786 (257,786) - -
--------------- --------------------- --------------------- ------------------------ ------------------------ ------------------------- --------------------- --------------------- ------------------------------ ------------------------
Balance at 1
January 2017 4,007,795 1,402,644 12,151,619 29,760,145 (79,611,117) 5,157,045 6,992,276 212,324 (19,927,269)
--------------- --------------------- --------------------- ------------------------ ------------------------ ------------------------- --------------------- --------------------- ------------------------------ ------------------------
Loss for the
period - - - - (2,848,219) - - - (2,848,219)
--------------- --------------------- --------------------- ------------------------ ------------------------ ------------------------- --------------------- --------------------- ------------------------------ ------------------------
Share-based
payments - - - - - 5,389 - - 5,389
--------------- --------------------- --------------------- ------------------------ ------------------------ ------------------------- --------------------- --------------------- ------------------------------ ------------------------
Foreign
exchange
loss on
consolidation - - (1,406,381) - - - - - (1,406,381)
--------------- --------------------- --------------------- ------------------------ ------------------------ ------------------------- --------------------- --------------------- ------------------------------ ------------------------
Loss on
hedging
instruments
designated in
cash flow
hedges - - - - - - - 135,585 135,585
--------------- --------------------- --------------------- ------------------------ ------------------------ ------------------------- --------------------- --------------------- ------------------------------ ------------------------
Deferred tax
on hedging
instruments
designated in
cash flow
hedges - - - - - - - (48,270) (48,270)
--------------- --------------------- --------------------- ------------------------ ------------------------ ------------------------- --------------------- --------------------- ------------------------------ ------------------------
Gain
reclassified
to profit or
loss - - - - - - - (237,227) (237,227)
--------------- --------------------- --------------------- ------------------------ ------------------------ ------------------------- --------------------- --------------------- ------------------------------ ------------------------
Deferred tax
on gain
reclassified
to profit or
loss - - - - - - - 84,456 84,456
--------------------- --------------------- ------------------------ ------------------------ ------------------------- --------------------- --------------------- ------------------------------ ------------------------
Balance at
30 June 2017 4,007,795 1,402,644 10,745,238 29,760,145 (82,459,336) 5,162,434 6,992,276 146,868 (24,241,936)
=============== ===================== ===================== ======================== ======================== ========================= ===================== ===================== ============================== ========================
Unaudited Consolidated Cash Flow Statement
For the six months ended 30 June 2017
All amounts are shown in US$
Six Months Ended
30 June
Year Ended
31 December
Notes 2017 2016 2016
(Unaudited) (Audited)
Cash inflow from
operating
activities 11 934,913 1,982,341 6,821,144
Cash flow from
investing
activities:
Purchase of
intangible
assets (580,863) (308,566) (1,083,530)
Purchase of
property,
plant and
equipment (1,352,425) (451,716) (2,417,206)
Proceeds on
disposal of
property, plant
and equipment 7,425 - 5,500
Interest received 737 38 582
---------------------------- ----------------------------- ----------------------------
Net cash used in
investing
activities (1,925,126) (760,244) (3,494,654)
---------------------------- ----------------------------- ----------------------------
Cash flow used in
financing
activities:
Proceeds from
derivative
financial
instruments 197,308 - 56,525
Repayment of loans - (4,000,000) (4,000,000)
Proceeds on issue
of loans
net of issue
costs - - 3,000,000
Capital payments
on finance
leases (411,130) - (129,423)
Interest on
finance leases (56,497) - (21,477)
Interest paid (1,250,958) (1,432,250) (2,289,665)
---------------------------- ----------------------------- ----------------------------
Net cash used in
financing
activities (1,521,277) (5,432,250) (3,384,040)
---------------------------- ----------------------------- ----------------------------
Net increase
(decrease)
in cash and cash
equivalents (2,511,490) (4,210,153) (57,550)
Cash and cash
equivalents
at beginning of
period 5,569,041 5,969,485 5,969,485
Effects of foreign
exchange
movements 47,989 (229,690) (342,894)
---------------------------- ----------------------------- ----------------------------
Cash and cash
equivalents
at end of period 3,105,540 1,529,642 5,569,041
============================ ============================= ============================
Notes to the Unaudited Financial Information
For the Six months ended 30 June 2017
All amounts are shown in US$
1. Accounting policies
The interim financial information in this report has been
prepared on the basis of the accounting policies set out in the
audited financial statements for the year ended 31 December 2016,
which complied with International Financial Reporting Standards as
adopted for use in the European Union ("IFRS"). The financial
information for the periods ended 30 June 2017 and 30 June 2016 are
unaudited but have been reviewed by the Company's auditors.
IFRS is subject to amendment and interpretation by the
International Accounting Standards Board ("IASB") and the IFRS
Interpretations Committee and there is an on-going process of
review and endorsement by the European Commission.
The financial information has been prepared in accordance with
the recognition and measurement requirements of IFRS that the
Directors expect to be applicable as at 31 December 2016, with the
exception of IAS 34 Interim Financial Reporting that is not
mandatory for companies listed on the AIM Market.
The financial information for the year ended 31 December 2016
set out in this interim report does not comprise the Group's
statutory accounts as defined in section 434 of the Companies Act
2006.
The statutory accounts for the year ended 31 December 2016,
which were prepared under IFRS, have been delivered to the
Registrar of Companies. The auditors' report on the Group accounts
to 31 December 2016 was unqualified, but did include an emphasis of
matter in relation to going concern.
2. Going Concern
The Directors have reviewed cash forecasts, the current
operations of the Group and plans for the next 12 months and
consider that the use of the going concern basis of accounting and
preparation of the financial statements is appropriate but, there
are material uncertainties related to events or conditions that may
cast significant doubt on the Group's ability to continue as a
going concern. Currently, the Group is meeting its day-to-day
financial responsibilities and oil prices are relatively flat. With
the successful implementation of the Pilot Project, it is expected
that adequate cash flow generated from this project will, for the
foreseeable future, meet operating cash flow requirements.
Although there has been a reduction to the Company's liquidity
risk resulting from the amendment to its outstanding loan with
Commonwealth Bank of Australia ("CBA") as discussed in Note 9,
Borrowings, the new maturity date of 31 December 2017 will require
the Company to secure alternative funding by this date or secure an
extension whilst alternative funding is secured. The successful
implementation is expected to generate adequate reserves in order
to provide adequate security for the outstanding loan balance.
Whilst the Directors are confident that the existing facility can
be extended or that borrowings can be replaced by alternative
funding and that adequate reserves will be generated from the Pilot
Project, the outcome of future negotiations and booking of reserves
are unknown and, therefore, they recognise there is a future
material liquidity risk.
As disclosed in Note 12, Post Balance Sheet Events, on 7 July
2017, the Company paid $1.75 million to CBA as a reduction of the
outstanding principal.
The financial statements do not include the adjustments that
would result if the Company were unable to continue as a going
concern.
3. Revenue
Six months ended
30 June
Year ended
31 December
2017 2016 2016
(Unaudited) (Audited)
Oil sales
revenue $ 7,647,706 $ 6,898,330 $ 15,027,487
Gains on hedging
instruments
reclassified
from equity to
profit or loss 237,227 2,491,235 3,686,396
Mark-to-market
gains/(losses) 825,407 - (744,424)
Other income 7,553 19,933 53,874
-------------------------- ------------------------------- --------------------------------------
$ 8,717,893 $ 9,409,498 $ 18,023,333
========================== =============================== ======================================
4. Cost of Sales
Six months ended
30 June
Year ended
31 December
2017 2016 2016
(Unaudited) (Audited)
Production
taxes $ 576,664 $ 519,813 $ 967,035
Lease
operating
expenses 3,897,864 2,420,829 5,116,144
Depreciation 2,373,852 1,511,636 3,582,915
Contribution
from
test revenue - - -
Revenue and
profit
share and
other 110,913 160,624 394,929
------------------------------- ------------------------------- ---------------------------------------------
$ 6,959,293 $ 4,612,902 $ 10,061,023
=============================== =============================== =============================================
5. Exceptional Items
Six months ended
30 June
Year ended
31 December
2017 2016 2016
(Unaudited) (Audited)
Impairment of
exploration
and
production
assets $ - $ - $ 7,130,541
Release of
contingent
consideration
provision - - (333,500)
-------------------------------- -------------------------------- -------------------------------------
$ - $ - $ 6,797,041
================================ ================================================ =====================================
6. Finance Costs
Six months ended
30 June
Year ended
31 December
2017 2016 2016
(Unaudited) (Audited)
Imputed
interest on
convertible
loan notes $ 1,013,708 $ 1,020,774 $ 2,013,122
Interest on
shareholder
loan with
detachable
warrants 896,561 798,037 1,639,569
Interest on
bank loan 847,097 785,671 1,390,993
Interest on
shareholder
loan 317,819 - 277,241
Finance Lease
Interest 56,497 - 21,477
Fair value
losses on
derivative
financial
instruments
not
designated
as hedging
instruments - 201,400 -
Loss on
rescheduling
of bank loan
(see Note
9) - 709,720 709,720
Exchange rate
(gain)/loss
on financial
instruments (750,847) 1,056,637 1,790,208
Other 16,794 2,169 329,689
------------------------------- ------------------------------- ---------------------------------------------
$ 2,397,629 $ 4,574,408 $ 8,172,019
=============================== =============================== =============================================
7. Earnings per share attributable to the equity shareholders of the Company
Basic earnings per share are calculated by dividing the loss
attributable to ordinary shareholders by the weighted average
number of ordinary shares outstanding during the year. Due to the
Group's reported losses in the periods presented shares issuable
upon the exercise of options, warrants and the conversion of loans
to equity were not taken into account when determining the weighted
average of ordinary issued shares during the period or year for the
diluted calculation. Similarly, losses used in the diluted
calculation would not exclude convertible loan interest that was
anti-dilutive for the same periods. Therefore, the basic and
diluted loss per share were the same for all periods presented.
Six months ended
30 June
2017 2016
Year ended
31 December
(Unaudited) 2016
Earnings per
share from
continuing
operations
Basic $ (0.00) $ (0.00) $ (0.01)
=============================== =============================== =============================================
Diluted $ (0.00) $ (0.00) $ (0.01)
=============================== =============================== =============================================
Loss used in
the
calculation
of basic
and diluted
earnings
per share $ (2,848,219.00) $ (4,088,596.00) $ (14,218,130.00)
=============================== =============================== =============================================
Weighted
average
number
of ordinary
shares for
the
purposes of
basic
earnings
per share 964,076,330 964,076,330 964,076,330
Dilutive
effect of
share
options,
warrants and
conversion
shares - - -
------------------------------- ------------------------------- ---------------------------------------------
Weighted
average
number
of ordinary
shares for
the
purposes of
diluted
earnings
per share 964,076,330 964,076,330 964,076,330
=============================== =============================== =============================================
8. Taxation
The following tax charges and credits arose in the US during
each period presented:
Six months ended
30 June
Year ended
31 December
2017 2016 2016
(Unaudited) (Audited)
Current tax
credit
(charge) $ 200 $ (1,550) $ -
Deferred tax
charge
on hedging
gains
recycled
from other
comprehensive
income
(expense) (84,456) (886,915) (1,312,409)
Deferred tax
on hedging
from rate
change - - 3,406
Deferred tax
(charge)
credit 48,270 (147,966) (110,968)
------------------------------- ------------------------------- ----------------------------------------
Total tax
(charge)
credit $ (35,986) $ (1,036,431) $ (1,419,971)
=============================== =============================== ========================================
No tax charge arose in the in the UK in the reported periods
(period ended 30 June 2017: $nil; period ended 30 June 2016: $nil;
year ended 31 December 2016: $nil).
A net deferred tax asset has not been recognised for tax losses
of approximately US$65.2 million in the US due to uncertainty over
the timing of future pro tability, and limitations under section
382 of the IRS Tax Code that restrict the Group's ability to
utilise tax losses to an amount no greater than $0.4 million per
annum. The unrecognised taxable losses in the US can be carried
forward for U.S. Federal and Colorado State income tax purposes for
up to 20 years. These losses, if not utilised, will begin to expire
in the years 2026 through 2032. The deferred tax that was held in
the hedging reserve was released in the period and relates to the
gains on the Company's hedges realised during the period.
A deferred tax asset in respect of taxable losses available in
the UK has not been recognised due to the uncertainty over timing
of future pro tability. The taxable losses available in the UK may
be carried forward inde nitely.
9. Borrowings
On 30 June 2017, the Company entered into an Eighth Amendment to
the Credit Agreement ("Eighth Amendment") with CBA. The terms and
conditions of the Eighth Amendment with CBA required a principal
reduction payment of $1.75million subsequent to period end,
maintained the same interest rate as in the Fourth Amendment to the
Credit Agreement (LIBOR + 6.0%) and stipulates a loan maturity of
31 December 2017 with the borrowing classified as a current
liability. All borrowings are subject to a one-month interest
period. Provisions of the borrowings also required the Company to
meet conditions that are specified in Note 12, Post Balance Sheet
Events. Non-current liabilities include $25.5 million in
convertible notes, in addition to deferred interest of $4.6 million
per the terms of the Eighth Amendment, and have a maturity date of
March 2019. There are additional non-current liability provisions
for future asset retirement obligations ($2.9 million) and finance
lease liabilities greater than twelve months ($1.4 million).
10. Share Capital
During the period ended 30 June 2017, 30 June 2016 and the year
ended 31 December 2016 the Company did not issue any new ordinary
shares.
11. Reconciliation of loss before tax to cash inflow from operating activities
Six months ended
30 June
Year ended
31 December
2017 2016 2016
(Unaudited) (Audited)
Loss before
tax $ (2,812,233) $ (3,052,165) $ (12,798,159)
Finance income
and other (737) (38) (582)
Finance costs 2,397,629 4,574,408 8,172,019
Release of
contingent
consideration
provision - - (333,500)
Share-based
payment 5,389 25,500 47,455
Gain on
disposal of
property,
plant and
equipment (7,424) - (5,500)
Unrealised
revenue on
hedge
accounted
derivatives 201 - -
(Gain)/loss on
derivative
financial
instruments (825,407) - 744,424
Depreciation 2,409,201 1,569,965 3,673,404
Amortisation
and
contribution
from test
revenue 2,018 2,018 4,372
Impairment of
intangible
assets net of
provision
released for
asset
retirement
costs - - 7,112,106
Impairment of
property,
plant and
equipment - - 18,435
Other (1) (13)
1,168,636 3,119,688 6,634,461
Changes in
working
capital
Change in
inventory (19,202) 30,500 131,138
Change in
trade and
other
receivables 318,241 118,476 442,751
Change in
trade and
other
payables (532,762) (1,286,323) (387,206)
------------------------------- ----------------------------- ---------------------------------------------
934,913 1,982,341 6,821,144
Tax paid - - -
------------------------------- ----------------------------- ---------------------------------------------
Cash inflow
from
operating
activities $ 934,913 $ 1,982,341 $ 6,821,144
=============================== ============================= =============================================
12. Post Balance Sheet Events
Amendments to existing borrowing agreements
As required by the renegotiated CBA loan provisions, certain of
the Company's existing loans were amended to defer all interest and
royalty/profit sharing payments. The amended notes bore interest
rates ranging from 9% to 15%. In exchange for agreeing to defer
payments due, at the Lender's option, the deferred interest and
overriding royalty payments due at 30 June 2018 may be paid in cash
or, subject to shareholder approval, in shares of the Company at
GBP0.08 per share. Interest accrues on the deferred amounts at 15%.
If the noteholders elect to be paid in shares, there will be no
payment of the additional accrued interest. Amounts due for
interest, overriding royalty payments and the additional accrued
interest, if any, are payable by 28 December 2018. The final
maturity date for the loans remains March 2019.
13. Competent Person Review
Chuck Wilson, Chief Operating Officer of the Company, who has
over 34 years of experience in the oil and gas industry and meets
the criteria of qualified persons under the AIM guidance note for
mining and oil and gas companies, has reviewed and approved the
technical information contained in this report.
14. Copies of the Half Yearly Report
A copy of this Half Yearly Report will be made available on the
Company's website at: www.nighthawkenergy.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR DGGDCIUDBGRU
(END) Dow Jones Newswires
September 26, 2017 02:01 ET (06:01 GMT)
Nighthawk Energy (LSE:HAWK)
Historical Stock Chart
From Jun 2024 to Jul 2024
Nighthawk Energy (LSE:HAWK)
Historical Stock Chart
From Jul 2023 to Jul 2024
