RNS Number:4915E
Petrolatina Energy PLC
26 September 2007
26 September, 2007
PETROLATINA ENERGY PLC
("PetroLatina" or the "Company")
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2007
PetroLatina Plc , the Latin America focused petroleum exploration and production
Company (LSE-AIM: "PELE"), announces unaudited interim results for the six
months ended 30 June 2007.
Financial Highlights:
* Turnover up to $3,110,000 (six months ended 30 June 2006: $421,000) thanks
to the acquisition of Petroleos del Norte on June 16th, 2006,
* Gross profit up to $1,926,000 (six months ended 30 June 2006 :$363,000)
* Loss on ordinary activities before tax to $2,926,000 (six months ended 30
June 2006 : $3,394,000)
The interim results are the first to be reported in accordance with
International Financial
Reporting Standards ("IFRS").
For further information :
PetroLatina Energy: www.Petrolatinaenergy.com
Tel.: +44(0)2072974360
CHIEF EXECUTIVE OFFICER STATEMENT
Significant changes were made within the Company during the first six months to
30 June 2007.
Operations Review
The Company is presently fully focussed on Colombia after the sale of its assets
in Guatemala for $4 million in cash in May 2007, This decision was made
following discouraging drilling results.
PetroLatina retains a 20% interest in the first three wells to be drilled in
Guatemala in the near future.
In Colombia, the Company holds 50% and 25% interests in the Los Angeles and
Santa Lucia fields on the Tsquirama licence, respectively, and a 100% interest
in the Dona Maria field which together provided a daily production of
approximately 450 barrels per day in the first six months of 2007.
In April 2006 the Group acquired an interest in two exploration blocks with an
85% interest in Midas and an indirect 80% interest in La Paloma, New seismic was
acquired in March/April this year over the La Paloma block and the results show
a very promising large 4 way dip closure. It is planned to drill an exploration
well within 3 to 4 months. Planned total depth is approximately 10,000 ft.
Presently, new seismic is being acquired over the Midas block and first results
are encouraging. It is planned to drill an exploration well to approximately
8,000 ft following the La Paloma well.
The terms and the conditions of the extension of the Tsquirama licence have been
successfully negotiated with Ecopetrol. We are currently waiting for the final
approval by the Board of Ecopetrol which should not take more than 4 weeks. The
delay in the process is caused by new procedures set by the Minister of
Hydrocarbons for all companies negotiating future extensions.
The Seraffin gas project is ready to commence production, However the gas
pipeline owner is currently demanding a letter from Ecopetrol underwriting the
quality of the gas. PetroLatina is holding discussions with all parties involved
to find a quick solution.
PetroLatina also owns the Rio Zulia-Ayacucho pipeline in the prolific Catacomba
basin which transports crude oil. Present exploration/exploitation activities in
this area should increase the volume of the crude oil resulting in an increased
cash flow.
Financials
In the first 6 months of 2007, turnover was $3,110,000 and gross profit
$1,926,000, Loss on ordinary activities before tax was $2,926,000
Administrative expenses of $4,776,000 were high for this period. As a result, a
decision was made to to close the office in London and reduce the salaries of
senior management. Total savings are in excess of $2 million per year.
Present outstanding debt with Macquarie bank is about $5,3 million.
Outlook
Stable production of approximately 450 barrels per day plus incremental
production after the extension approval in the Tisquirama licence, the future
Seraffin gas production, and some very exciting exploration blocks where two
wells will be drilled, create a viable Company with upside. In addition, the
Company is analysing what the best way is to capitalise on the opportunities
currently available in the market.
Rudolph Berends
Chief Executive Officer
25 September 2007
UNAUDITED CONSOLIDATED INCOME STATEMENT
for the six months ended 30 June 2007
Six Months Six Months Twelve Months
Ending Ending Ending
30 June 2007 30 June 2006 31 December 2006
$000 $000 $000
---------- ---------- ----------
Turnover 3,110 421 4,174
Cost of Sales (1,184) (58) (1,177)
--------------------- ---------- ---------- ----------
Gross profit 1,926 363 2,997
Other income - -
Administrative Costs (4,776) (3,953) (9,628)
Exceptional -
impairment items - - (35,305)
Finance Income 12 259 389
Finance Expense (88) (63) (523)
--------------------- ---------- ---------- ----------
Profit before taxation (2,926) (3,394) (42,070)
Income tax expense (39) - (353)
--------------------- ---------- ---------- ----------
Profit for the period
attributable
to the equity
holders of the parent (2,965) (3,394) (42,423)
--------------------- ---------- ---------- ----------
Earnings per ordinary share
- Basic ($0.03) ($0.05) ($0.49)
- Diluted ($0.03) ($0.05) ($0.49)
--------------------- ---------- ---------- ----------
UNAUDITED CONSOLIDATED BALANCE SHEET
as at 30 June 2007
Six Months Six Months Twelve Months
Ending Ending Ending
30 June 2007 30 June 2006 31 December 2006
$000 $000 $000
---------- ---------- ----------
Assets
Non-current assets
Intangible Assets 3,662 26,333 2,905
Assets Property,
plant and equipment 15,936 20,942 19,395
Available for sales 3,800
---------------------- ---------- ---------- ----------
Total non-current assets 23,398 47,275 22,300
---------------------- ---------- ---------- ----------
Current Assets
Inventories 55 1,587 54
Trade and other receivables 2,694 5,655 1,244
Short-term investments - 115 41
Cash & cash equivalents 2,220 4,655 5,652
---------------------- ---------- ---------- ----------
Total current assets 4,969 12,012 6,991
---------------------- ---------- ---------- ----------
Total assets 28,367 59,287 29,291
====================== ========== ========== ==========
Current liabilities
Trade and other payables (2,580) (11,472) (9,904)
---------------------- ---------- ---------- ----------
Total current liabilities (2,580) (11,472) (9,904)
---------------------- ---------- ---------- ----------
Non-current liabilities
Debt (8,700)
Long term provisions (300) (299) (857)
Trade and other payables - (217) -
---------------------- ---------- ---------- ----------
Total non-current
liabilities (9,000) (516) (857)
---------------------- ---------- ---------- ----------
Total liabilities (11,580) (11,988) (10,761)
---------------------- ---------- ---------- ----------
Total net assets 16,787 47,299 18,530
====================== ========== ========== ==========
Equity
Called up share capital 11,452 8,465 11,077
Share premium account 55,357 48,636 55,357
Other reserve 1,051 139 1,366
Retained earnings (51,073) (9,941) (49,270)
---------------------- ---------- ---------- ----------
Total Equity 16,787 47,299 18,530
====================== ========== ========== ==========
UNAUDITED CONSOLIDATED CASH FLOW STATEMENT
for the six months ended 30 June 2007
Six Months Six Months Twelve Months
Ending Ending Ending
30 June 30 June 31 December
2007 2006 2006
$000 $000 $000
Operating Activities --------- --------- ---------
Profit before taxation (2,926) (3,394) (42,070)
Depreciation, depletion and
amortisation 982 177 1,010
(Increase)/decrease in trade
and other receivables (1,450) (997) (200)
Increase/(decrease) in trade
and other payables (7,324) (423) (1,300)
Increase in inventories (1) (176) (1,300)
Finance income (12) (259) -
Finance expense 88 63 0
Accretion expense on convertible
notes
Other non-cash items 947 38,521
Stock options expense
Income taxes paid (39) - (353)
----------------------- --------- --------- ----------
Net Cash provided by
operating activities (10,682) (4,062) (5,692)
----------------------- --------- --------- ----------
Investing activity
Capital expenditure
and financial investment (19,114) (19,114)
Expenditure on
tangible fixed
assets 0 (442) (13,659)
Expenditure on
intangible
fixed assets 0 (6,162) (1,465)
Disposal of
fixed assets 0 - 786
Increase in
short-term
deposits 0 - (345)
----------------------- --------- --------- ----------
Net cash used
in investing
activities 0 (25,718) (33,796)
----------------------- --------- --------- ----------
Financing activities
Issue of share capital - 26,140 35,429
Debt 7,250 - -
----------------------- --------- --------- ----------
Net cash used in financing
activities 7,250 26,140 35,429
----------------------- --------- --------- ----------
(Decrease)/increase in cash
and cash equivalents (3,432) (3,640) (4,059)
Cash at beginning of period 5,652 7,664 7,664
----------------------- --------- --------- ----------
Cash at end of period 2,220 4,024 3,605
----------------------- --------- --------- ----------
NOTES TO THE FINANCIAL INFORMATION
for the six months ended 30 June 2007
1. Accounting Policy
Basis of Preparation: With effect from 1 January 2007 it became mandatory for
the Group to comply with International Financial Reporting Standards (IFRS).
The financial results of the Group for the six months ended 30 June 2007 have
been prepared on a basis which is consistent with International Financial
Reporting Standards (IFRS) as adopted by the European Union which the Group
expects to apply in the first annual accounts presented as at 31 December 2007.
The financial information presented in this report is unaudited, In the opinion
of the directors, the financial information fairly represents the financial
position, results of operations and cash flows for the periods in conformity
with IFRS.
2. Turnover is attributable to one continuing activity, which is oil production
Petroleos del Norte S.A. located in Colombia, South America.
3. No interim dividend has been declared.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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