TIDMSLE
RNS Number : 3887N
San Leon Energy PLC
28 September 2012
Friday 28 September 2012
San Leon Energy Plc
Interim Results for the six months ended 30(th) June 2012
San Leon Energy Plc ("San Leon"), the AIM listed company focused
on oil and gas exploration in Europe and North Africa today
announces its interim results for the six months ended 30 June
2012.
Highlights:
Poland:
-- New potential unconventional gas play confirmed by the Siciny-1 well
-- Lelechow-SL1 successfully finds oil, testing ongoing
-- Successful completion of Szymkowo-1 well, the Company's third
shale gas exploration well in the Baltic Basin with Talisman
Energy
-- Licence awards:
- The Praszka concession, Southern Permian/SW Carboniferous Basin - 296,082 acres
- The Czersk concession, Baltic Basin - 173,584 acres
-- Expansion of the Rawicz Concession including existing Rawciz gas field
-- Acquired a 75% working interest in certain Polish assets held
by Hutton Energy for US $15million
-- JV Partnership with Celtique Energie to jointly develop the existing Celtique concessions
-- Acquisition by NovaSeis of first seismic in Poland including
150 km 2D in the Baltic Basin and 220 km(2) 3D over the Gora
Concession including the Siciny-2 well
Morocco:
-- Successful offshore farm-out agreements with free carries over two exploration wells:
- Genel Energy farmed in to the Sidi Moussa Block
- Cairn Energy farmed in to the Foum Draa Block
-- Cooperation agreement in oil shale development with Enefit Outotec Technology ("EOT")
-- Award of four additional shallow oil shale blocks and
extension of exclusivity period to March 2014
Albania:
-- Numerous high quality oil & gas prospects identified across the Company's Durresi licence
-- Prestack Depth Migration completed by Western Geophysical on the 2011 840 km(2) Duressi 3D
Ireland:
-- Continued work on Barryroe indicates additional upside in the field
Corporate:
-- Admission of ADRs onto OTCQX with Deutsche Bank appointed as the Company's depository Bank
-- Appointed FirstEnergy as Joint Broker
-- Appointment of Con Casey as Non-Executive Director, effective
after the Company's AGM later today
-- Establishment of Advisory Committee
Financial:
-- Profit for the six months to 30 June 2012 of EUR0.78million (2011: EUR1.48million)
-- Revenue for the six months to 30 June 2012 amounted to EUR1.16million (2011: EUR0.52million)
-- Cash and cash equivalents of EUR6.21million, excluding the
EUR9.9million cash proceeds from the sale of the Amstel royalty
Outlook:
-- 120km(2) 3D seismic over Rawicz gas field, Poland, with first
appraisal well in Q2/Q3 2013 and first production expected in Q3
2013
-- Second exploration well, Czaslaw in Nowa Sol, Poland, expected to spud in October 2012
-- Free well carry on Sidi Moussa Block, targeted for 2014
-- Free well carry on Foum Draa Block, expected in 2013
-- Completion of farm-in process across the Durresi Block, Albania
-- Data rooms opened on the North Porcupine and Slyne licences,
Ireland, with a view to gaining farm-in partners
Oisin Fanning, Chairman of San Leon said:
"This has been San Leon's most active period to date both
operationally and corporately. We have continued to prove up the
potential of our assets through the drillbit whilst the calibre and
potential of these assets has been further endorsed by the partners
we have brought in.
As we enter the next exciting phase of our development the level
of activity seen in the last period is set to continue. We have an
extensive work programme across our portfolio and will continue to
manage our risk profile through the completion of further
transactions similar to those done in Morocco. San Leon is well
placed with a highly attractive portfolio of assets across a number
of different play types and an excellent technical team in
place.
We look forward to providing further updates in due course."
San Leon Energy Plc Tel: +353 1291 6292
Oisin Fanning, Executive Chairman
John Buggenhagen, Exploration
Director
Macquarie Capital (Europe) Limited Tel: +44 (0) 20 3037 2000
John Dwyer
Fox Davies Capital Tel: +44 (0) 20 3463 5000
Daniel Fox-Davies
Richard Hail
FirstEnergy Capital LLP Tel: +44 (0) 20 7448 0200
Hugh R. Sanderson
David Van Erp
Westhouse Securities (Nominated Tel: +44 (0) 20 7601 6100
Advisor)
Richard Johnson
Antonio Bossi
College Hill Associates Tel: +44 (0) 20 7457 2020
Nick Elwes
Alexandra Roper
The Interim results will shortly be available at:
www.sanleonenergy.com
Qualified person
John Buggenhagen, who has reviewed this update, has over 15
years experience in the oil & gas industry. He has a Ph.D. and
M.Sc. in Geophysics from the University of Wyoming and a B.Sc. in
Geophysics from the University of Arizona. He is currently the
Director of Exploration for the San Leon Energy Group and based in
San Leon's Warsaw office in Poland.
Chairman's statement
During the six months under review and the period to date the
Company has made continued progress both operationally and
corporately. San Leon has continued to focus on its core areas of
operations, being Poland, Morocco and Albania, with considerable
achievements across each region.
Poland
Poland continues to be a core area for the Company, both in the
Baltic Basin and the Southern Permian / SW Carboniferous Basin.
During the six months under review and post the period significant
progress has been made across both these regions proving up the
respective plays.
The Szymkowo-1 well was the third shale gas exploration well
that the Talisman / San Leon partnership drilled on the Baltic
Basin with several intervals showing significant gas shows; with
the strongest gas shows encountered in the lower Silurian and
Ordovican shales. This well completed the initial three well
programme of the Talisman farm in. The Company looks forward to
working with Talisman towards the next stage of our cooperation
which is expected to include horizontal drilling and potential
testing in 2013.
Significant progress was also made across the SW Carboniferous
basin of Poland through the successful drilling of the Siciny-2
well. This well had a continuous gas column throughout the
Carboniferous interval and proves up the huge potential upside this
basin has to offer. In addition to this the Lelechow-SL1 well, in
the Company's Nowa Sol Concession in the Southern Permian Basin,
also found oil. The Company looks forward to flow testing the
Siciny-2 well later this year and believes that the Company can
monetise any success there in the first half of next year.
Poland remains a key area of focus with the Company gaining
further acreage in this region. San Leon was delighted to be
awarded the Praszka concession in the Southern Permian Basin and
the Czersk concession in the Baltic Basin. In addition to this the
Company also purchased certain Polish assets from Hutton Energy for
US$ 15 million, with a view to jointly developing those assets, as
well as signing a joint Venture with Celtique Energie over two high
quality exploration blocks on trend with some of San Leon's other
projects. The Company is also delighted to have expanded its
existing Rawicz Concession, with the amended concession including
the previously discovered Rawicz gas field. The Company is
currently acquiring a 120 km(2) of 3D seismic over the Rawciz
field.
San Leon has an unprecedented acreage position in Poland. The
Company has built a portfolio of high potential assets across a
number of different plays, a strategy the Company believes will
prove successful in the future.
Albania
In 2011 the Company completed an 840km(2) of 3D seismic over the
Durresi block offshore Albania. This new 3D seismic has identified
numerous large scale prospects and leads across the licence with
un-risked prospective recoverable resources of more than one
billion barrels of oil equivalent across the proven petroleum
systems.
The Company has also opened a data room on the Durresi block to
select companies. There has been huge interest in our data room,
which is now closed; letters of intent are expected and the Company
expects to make a further announcement on this farm in process
shortly.
We are very excited about the potential of the Durresi Block and
believe it has huge upside potential.
Ireland
Barryroe has continued to prove to be a success for our previous
partners, Providence and Lansdowne. The Company is very pleased to
see the results not least because San Leon had opted for a 4.5% net
profit interest which will give the Company very good cash flow,
but without the inherent costs of this well or development costs in
the future.
San Leon is also currently seeking farm-in partners for the
Slyne and North Porcupine licences and have opened data rooms to
facilitate this process. Several companies are reviewing data and
we will update the market as appropriate.
Morocco
The Company has made good progress on our onshore Tarfaya
licence, during the first half of the year we have further
increased our acreage and we remain committed to early development
of the huge potential our Tarfaya Oil Shale Acreage offers the
Company. The Company has been awarded four additional blocks
covering an area of 16 km(2) in addition to our existing oil shale
acreage of 6,000 km(2) which was awarded back in 2009.
San Leon has entered into a cooperation agreement in oil shale
development with Enefit Outotec Technology ("EOT"). EOT has been
commissioned to conduct a study in the newly awarded onshore
shallow oil shale blocks with a view to applying its proven Ex Situ
retorting technology while we pursue, in parallel, our In Situ
programme on the deeper zones on our existing acreage.
Post balance sheet the Company concluded the farm-out process on
our two offshore blocks. Genel Energy ("Genel") farmed into the
Sidi Moussa Block whilst Cairn Energy ("Cairn") farmed into the
Foum Draa Block. These transactions have reduced our financial
exposure through the free carries, whilst allowing the Company to
retain an interest at a level that offers both the Company and its
shareholders significant upside. Attracting companies of this
calibre is a significant achievement and also endorses the
attractiveness and potential of the Company's Moroccan acreage. The
Company, along with our partners, are targeting an exploration well
on our Foum Draa Block in 2013 and planning to drill an exploration
well on our Sidi Moussa Block most likely in 2014.
Financial Review
Revenue for the six months to 30 June 2012 was EUR1.16m compared
to EUR0.52 for six months to 30 June 2011. Revenues from our share
of gas production in the Seven Heads gas field sales was EUR0.5m
for the six months to 30 June 2012 compared to EUR0.52m in
comparative period. Other revenue for the period is attributable to
the provision of seismic acquisition services to third parties by
our seismic company, Novaseis valued at EUR0.66m for the six months
to 30 June 2012 (nil in 2011).
San Leon made a profit before tax of EUR0.78m for the six months
to 30 June 2012, compared to profit of EUR1.48m in six months to 30
June 2011. Earnings per share for the period is 0.069 cent per
share (2011 H1: earnings per share of 0.19 cent per share).
Other income in the period of EUR5.4m relates to the profit on
disposal of our royalty interest in the Amstel Field, Netherlands.
The net cash proceeds received on the sale was EUR9.9m.
Cash and cash equivalents at 30 June 2012 amounted to EUR6.21m.
This excludes cash proceeds from sale of the Amstel royalty of
EUR9.9m which were collected subsequent to 30 June 2012.
Corporate
During the six month period the Company has created an advisory
committee, made up of a number of experienced industry
professionals, to work alongside the management team. It is already
making a considerable contribution.
Their objective is to consider the macro issues associated with
the industry and providence strategic insight.
With a view to increasing its profile to N.American investors
San Leon listed ADRS onto OTCQX, with Deutsche Bank appointed as
the Company's depository bank. FirstEnergy have also been appointed
as joint broker to the Company.
The Company is also delighted to welcome Con Casey to the Board
as Non-Executive Director. Mr Casey has a wealth of experience
having been involved with numerous quoted companies including being
on the Board of Petroceltic since 2000. Mr Casey's appointment
becomes effective post the Company's AGM being held today.
Outlook
This has been a period of intense activity for the Company as we
look to continue to deliver our strategy and prove up our extensive
shale gas and conventional acreage; and during this period of
intense activity the Company has made significant progress.
Our drilling programme has continued to deliver with successful
results seen in both the Baltic and the Southern Permian basins in
Poland, further proving up the plays and potential of these
regions. The Company has also continued its policy of managing risk
with the conclusion of the farm out process in Morocco, bringing in
Genel and Cairn whilst still retaining significant exposure to the
upside potential. Other farm outs are currently on-going and the
Company hope to be able to announce similar deals in the near
future.
San Leon has built up a highly attractive portfolio of assets
across Europe and North Africa and is one of the leading shale gas
players in Europe by acreage. Whilst shale gas remains uncertain
for many, the Company believes that there is incredible potential
across Europe and is confident that it will become a significant
resource in the future.
San Leon is ideally placed to maximise this, whilst also having
a portfolio of conventional assets which again hold significant
potential. The Company's strategy is to prove up these assets,
whilst continuing to manage risk across our portfolio and deliver
value to our shareholders. San Leon has the assets, the technical
expertise and the partners to deliver this.
The following financial information on San Leon Energy Plc
represents the Group's interim results for the 6 months ended 30
June 2012.
Consolidated income statement
For the six months ended 30 June 2012
Un-audited Un-audited Audited
Notes 30/06/12 30/06/11 31/12/11
EUR EUR EUR
Continuing operations
Revenue 1,164,172 517,649 1,039,654
Cost of sales (739,104) (269,076) (566,469)
------------ ------------ --------------
Gross profit 425,068 248,573 473,185
Other income 2 5,338,951 3,492,434 25,990,204
Administrative expenses (4,675,383) (1,743,858) (7,225,224)
Exploration costs written-off - - (2,684,290)
------------ ------------ --------------
Profit from operating activities 1,088,636 1,997,149 16,553,875
Finance expense (359,660) (679,238) (1,258,186)
Finance income 72,210 161,614 344,255
Share of loss of equity-accounted
investments (13,621) - (4,715)
Profit before income tax 787,565 1,479,525 15,635,229
Income tax expense (9,691) - (35,344)
------------ ------------ --------------
Profit for the period attributable
to equity holders of the Group 777,874 1,479,525 15,599,885
------------ ------------ --------------
Consolidated statement of comprehensive income
for the six months ended 30 June 2012
Un-audited Un-audited Audited
30/06/12 30/06/11 31/12/11
EUR EUR EUR
Profit for the period 777,874 1,479,525 15,599,885
Foreign currency translation
differences 2,169,779 207,606 915,281
----------- ------------ ----------------------
Total comprehensive income
for the period 2,947,653 1,687,131 16,515,166
----------- ------------ ----------------------
Earnings per share:
Basic earnings per ordinary 0.069 cent 0.19 cent 1.85 cent
share
----------- ------------ ----------------------
Diluted earnings per ordinary 0.068 cent 0.18 cent 1.77 cent
share
----------- ------------ ----------------------
Consolidated statement of changes in equity
For the period ended 30 June 2012
Attributable
Share to equity Non-controlling
Currency based holders interest
Share Share translation payment Retained of the Total
capital premium reserve reserve earnings Group equity
EUR EUR EUR EUR EUR EUR EUR EUR
Period ended 30 June
2011
Balance at 1
January 2011 39,099,780 91,589,215 382,768 3,417,145 (13,262,316) 121,226,592 - 121,226,592
----------- ------------ ------------- ---------- --------------- ---------------- ------------------- ----------------
Total comprehensive
income for period
Profit for the
period - - - - 1,479,525 1,479,525 - 1,479,525
Other comprehensive
income
Foreign
currency
translation
differences - - 207,606 - - 207,606 - 207,606
----------- ------------ ------------- ---------- --------------- ---------------- ------------------- ----------------
Total
comprehensive
income for
period - - 207,606 - 1,479,525 1,687,131 - 1,687,131
----------- ------------ ------------- ---------- --------------- ---------------- ------------------- ----------------
Transactions with owners
recognised directly
in equity
Contributions by and distributions
to owners
Issue of
shares 461,796 66,763 - - - 528,559 - 528,559
Share based
payment - - - 315,506 - 315,506 - 315,506
Effect of
share
options
exercised - - - (748,211) 748,211 - - -
Total
transactions
with owners 461,796 66,763 - (432,705) 748,211 844,065 - 844,065
----------- ------------ ------------- ---------- --------------- ---------------- ------------------- ----------------
Balance at
30
June 2011 39,561,576 91,655,978 590,374 2,984,440 (11,034,580) 123,757,788 - 123,757,788
----------- ------------ ------------- ---------- --------------- ---------------- ------------------- ----------------
Period ended 30 June
2012
Balance at 1
January 2012 56,658,591 122,891,220 1,298,049 5,461,488 3,085,780 189,395,128 2,523,181 191,918,309
----------- ------------ ------------- ---------- --------------- ---------------- ------------------- ----------------
Total comprehensive
income for period
Profit for the
period - - - - 777,874 777,874 - 777,874
Other
comprehensive
income
Foreign
currency
translation
differences - - 2,169,779 - - 2,169,779 - 2,169,779
----------- ------------ ------------- ---------- --------------- ---------------- ------------------- ----------------
Total
comprehensive
income for
period - - 2,169,779 - 777,874 2,947,653 - 2,947,653
----------- ------------ ------------- ---------- --------------- ---------------- ------------------- ----------------
Transactions with owners
recognised directly
in equity
Contributions by and distributions
to owners
Issue of
shares
related to
business
combination 364,354 639,023 - - - 1,003,377 - 1,003,377
Share warrants
exercised 8,250 17,404 - - - 25,654 - 25,654
Share based
payment - - - 1,994,646 - 1,994,646 - 1,994,646
Effect of
share
options
lapsed - - - (574,088) 378,356 (195,732) - (195,732)
Shares issued
to Realm
shareholders
on conversion
of
exchangeable
shares - - - - - - (1,003,377) (1,003,377)
Total
transactions
with owners 372,604 656,427 - 1,420,558 378,356 2,827,945 (1,003,377) 1,824,568
----------- ------------ ------------- ---------- --------------- ---------------- ------------------- ----------------
Balance at 30
June 2012 57,031,195 123,547,647 3,467,828 6,882,046 4,242,010 195,170,726 1,519,804 196,690,530
----------- ------------ ------------- ---------- --------------- ---------------- ------------------- ----------------
Consolidated statement of changes in equity
For the period ended 30 June 2012
Attributable
Share to equity Non-controlling
Currency based holders interest
Share Share translation payment Retained of the Total
capital premium reserve reserve earnings Group equity
EUR EUR EUR EUR EUR EUR EUR EUR
Year to 31 December 2011
Balance at
1 January
2011 39,099,780 91,589,215 382,768 3,417,145 (13,262,316) 121,226,592 - 121,226,592
----------- ------------ ------------- ---------- --------------- ---------------- ------------------- ----------------
Total comprehensive
income for year
Profit for
the year - - - - 15,599,885 15,599,885 - 15,599,885
Other
comprehensive
income
Foreign
currency
translation
differences - - 915,281 - - 915,281 - 915,281
Total
comprehensive
income for
year - - 915,281 - 15,599,885 16,515,166 - 16,515,166
----------- ------------ ------------- ---------- --------------- ---------------- ------------------- ----------------
Transactions with owners
recognised directly
in equity
Contributions by and distributions
to owners
Issue of
shares
related to
business
combination 15,352,623 26,926,235 - - - 42,278,858 - 42,278,858
Issue of
shares 1,542,267 3,938,527 - - - 5,480,794 - 5,480,794
Share options
and warrants
exercised 663,921 437,243 - - - 1,101,164 - 1,101,164
Share based
payment - - - 2,792,554 - 2,792,554 - 2,792,554
Effect of
share
options
exercised - - - (748,211) 748,211 - - -
Shares to be
issued on
Realm
acquisition
on conversion
of
exchangeable
shares - - - - - - 5,685,721 5,685,721
Shares issued
to Realm
shareholders
on conversion
of
exchangeable
shares - - - - - - (3,162,540) (3,162,540)
----------- ------------ ------------- ---------- --------------- ---------------- ------------------- ----------------
Total
transactions
with owners 17,558,811 31,302,005 - 2,044,343 748,211 51,653,370 2,523,181 54,176,551
----------- ------------ ------------- ---------- --------------- ---------------- ------------------- ----------------
Balance at
31 December
2011 56,658,591 122,891,220 1,298,049 5,461,488 3,085,780 189,395,128 2,523,181 191,918,309
----------- ------------ ------------- ---------- --------------- ---------------- ------------------- ----------------
Consolidated statement of financial position
As at 30 June 2012
Notes Un-audited Un-audited Audited
30/06/12 30/06/11 31/12/11
EUR EUR EUR
Assets
Non-current assets
Intangible assets 3 150,502,186 88,578,445 140,263,276
Equity accounted investments 4 3,544,232 - 3,026,864
Property, plant and
equipment 5 9,575,188 8,761,217 9,278,608
Other non-current assets 812,977 - 816,928
Financial assets - Barryroe
NPI 6 39,197,977 - 39,197,977
203,632,560 97,339,662 192,583,653
------------ -------------- --------------
Current assets
Inventory 861,236 - 757,669
Trade and other receivables 7 3,839,040 6,573,651 8,064,400
Other financial assets 8 520,276 1,379,193 502,620
Amstel royalty disposal proceeds
receivable 9,900,000 - -
Cash and cash equivalents
** 6,214,286 42,213,207 26,197,963
------------ -------------- --------------
21,334,838 50,166,051 35,522,652
------------ -------------- --------------
Total assets 224,967,398 147,505,713 228,106,305
------------ -------------- --------------
Equity and liabilities
Equity
Called up share capital 13 57,031,195 39,561,576 56,658,591
Share premium account 13 123,547,647 91,655,978 122,891,220
Share based payments
reserve 6,882,046 2,984,440 5,461,488
Currency translation
reserve 3,467,828 590,374 1,298,049
Retained profit/(loss) 4,242,010 (11,034,580) 3,085,780
------------ -------------- --------------
Attributable to equity
holders of the Group 195,170,726 123,757,788 189,395,128
Non-controlling interest 1,519,804 - 2,523,181
------------ -------------- --------------
Total equity 196,690,530 123,757,788 191,918,309
------------ -------------- --------------
Non-current liabilities
Provision for decommissioning 5,345,211 5,345,211 5,345,211
Loans and borrowings 12 579,416 4,055,984 2,671,219
Deferred tax liabilities 9,329,447 - 9,329,447
------------ -------------- --------------
15,254,074 9,401,195 17,345,877
------------ -------------- --------------
Current liabilities
Trade and other payables 9 6,438,317 9,424,648 12,113,951
Loans and borrowings 10 4,992,000 4,922,082 5,177,144
Provisions 11 1,592,477 - 1,551,024
------------ -------------- --------------
13,022,794 14,346,730 18,842,119
------------ -------------- --------------
Total liabilities 28,276,868 23,747,925 36,187,996
------------ -------------- --------------
Total equity and liabilities 224,967,398 147,505,713 228,106,305
------------ -------------- --------------
**excluding cash proceeds from the disposal of Amstel royalty
collected subsequent to 30 June 2012
Consolidated statement of cash flows
For the six months ended 30 June 2012
Un-audited Un-audited Audited
30/06/12 30/06/11 31/12/11
EUR EUR EUR
Cash flows from operating activities
Profit for the period before
taxation 787,565 1,479,525 15,635,229
Adjustments for:
Depletion and depreciation 102,535 32,768 522,726
Finance expense 359,660 679,238 1,258,186
Finance income (72,210) (161,614) (344,255)
Share based payments charge 205,074 85,434 866,038
Foreign exchange 650,595 - (1,283,211)
Gain on assignment of Barryroe
licence - - (22,408,037)
Gain on disposal of Amstel royalty
interest (5,338,798) - -
Exploration costs written-off - - 2,684,290
(Increase) in stocks (103,567) - (757,669)
Decrease /(increase) in trade
and other receivables 4,251,407 (4,980,059) (6,030,610)
(Decrease) /increase in trade
and other payables (5,733,608) 3,665,132 3,111,101
Share of loss of equity-accounted
investments 13,621 - 4,715
Tax paid - - (37,979)
Net cash flows (used in) /generated
from operating activities (4,877,726) 800,424 (6,779,476)
--------------- --------------- ---------------
Cash flows from investing activities
Expenditure on exploration and
evaluation assets (12,405,504) (12,324,032) (39,440,563)
Joint venture partner share of
exploration costs 491,233 - 8,999,859
Purchases of property, plant
and equipment (200,349) (6,376,283) (7,353,565)
Interest received 46,161 161,614 318,206
Net cash acquired with subsidiary - - 5,216,546
Advances to equity-accounted
investments (530,988) - -
Release of bank guarantees - - 941,883
Net cash (used) in investing
activities (12,599,447) (18,538,701) (31,317,634)
--------------- --------------- ---------------
Cash flows from financing activities
Proceeds from issue of share
capital, net of costs 15,184 528,559 6,302,541
Repayment of convertible loan - (2,150,000) (2,150,000)
Repayment of other loans (2,418,532) (4,989,151) (7,360,572)
Interest paid (300,909) (183,538) (370,798)
---------------
Net cash (used) in/generated
from financing activities (2,704,257) (6,794,130) (3,578,829)
--------------- --------------- ---------------
Net (decrease)/increase in cash
and cash equivalents (20,181,430) (24,532,407) (41,675,939)
Effect of foreign exchange fluctuation
on cash and cash equivalents 197,753 (423,045) 705,243
Cash and cash equivalents at
start of period 26,197,963 67,168,659 67,168,659
--------------- --------------- ---------------
Cash and cash equivalents at
end of period 6,214,286 42,213,207 26,197,963
--------------- --------------- ---------------
Notes to the Interim Financial Information
1. Basis of preparation and accounting policies
The Group interim financial information has been prepared in
accordance with International Financial Reporting Standards and the
accounting policies adopted are consistent with those followed in
the preparation of the Group's financial statements for the year
ended 31 December 2011. The interim financial information was
approved by the Board of Directors on 27 September 2012.
The interim consolidated financial statements do not constitute
statutory financial statements and therefore do not include all the
information and disclosures required in the annual financial
statements, and should be read in conjunction with the Group's
annual financial statements as at 31 December 2011 which are
available on the Group's website www.sanleonenergy.com.
The interim consolidated financial statements are presented in
Euro ("EUR").
2. Other income
Un-audited Un-audited Audited
30/06/12 30/06/11 31/12/11
EUR EUR EUR
Profit on disposal of Amstel 5,338,798 - -
royalty
Assignment of Rockall Licence - 3,492,434 3,492,433
Assignment of Barryroe Licence - - 22,408,037
Proceeds on sale of seismic data
(North America) - - 87,590
Other 153 - 2,144
----------- ----------- -----------
5,338,951 3,492,434 25,990,204
----------- ----------- -----------
In June 2012, San Leon Energy reached agreement to dispose of
its royalty interest in the Amstel Field, Holland for net proceeds
of EUR9.9m.
3. Intangible assets
Exploration Royalty
Cost and net book value and evaluation Interests Total
assets
EUR EUR EUR
At 1 January 2011 71,503,653 4,561,202 76,064,855
Additions 32,311,681 - 32,311,681
Acquisitions through business
combinations 49,804,747 - 49,804,747
Exchange rate adjustment 1,556,223 - 1,556,223
Assignment of Barryroe Licence
interest (16,789,940) - (16,789,940)
Write-off of USA exploration
assets (2,684,290) - (2,684,290)
---------------- ------------ -------------
At 31 December 2011 135,702,074 4,561,202 140,263,276
Additions 13,508,111 - 13,508,111
Disposals - (4,561,202) (4,561,202)
Exchange rate adjustment 1,292,001 - 1,292,001
----------------
At 30 June 2012 150,502,186 - 150,502,186
---------------- ------------ -------------
An analysis of exploration assets by geographical area is set
out below:
30/06/2012
EUR
Poland 85,697,041
Morocco 39,798,418
Ireland 18,314,844
Albania 4,223,161
Other areas 2,468,722
------------
Total 150,502,186
------------
The Directors have considered the licence, exploration and
appraisal costs capitalised in respect of its exploration and
evaluation assets, which are carried at historical cost. Those
assets have been assessed for impairment and in particular with
regard to remaining licence terms, likelihood of licence renewal,
likelihood of further expenditures and on-going appraisals for each
year. The directors are satisfied that there are no current
indications of impairment, but recognise that the future
realisation of these exploration and evaluation assets is dependent
on future successful exploration and appraisal activities and the
subsequent economic production of oil and gas reserves.
4. Equity accounted investments
Un-audited Un-audited Audited
30/06/12 30/06/11 31/12/11
EUR EUR EUR
Opening balance 3,026,864 - -
Acquisitions through business combinations - - 2,883,863
Exchange adjustment and advances to
entities 530,989 - 147,716
Share of loss of equity -accounted
investments (13,621) - (4,715)
------------ ----------- ----------
Closing balance 3,544.232 - 3,026,864
------------ ----------- ----------
5. Property, plant and equipment
Plant & Asset under Office
Equipment construction Equipment Motor vehicles Total
EUR EUR EUR EUR EUR
Cost
At 1 January 2011 78,692 2,280,211 89,993 27,695 2,476,591
Additions 3,305,845 3,615,436 283,115 200,677 7,405,073
Exchange rate adjustment 2,573 - (1,680) (3,001) (2,108)
At 31 December 2011 3,387,110 5,895,647 371,428 225,371 9,879,556
Additions 196,188 127,219 174,003 104,277 601,687
Exchange rate adjustment 165,344 - 13,121 11,097 189,562
At 30 June 2012 3,748,642 6,022,866 558,552 340,745 10,670,805
----------- -------------- ----------- --------------- -----------
Depreciation
At 1 January 2011 26,230 - 45,713 6,462 78,405
Exchange rate adjustment 858 - (341) (700) (183)
Charge for period 374,856 - 132,185 15,685 522,726
----------- -------------- ----------- --------------- -----------
At 31 December 2011 401,944 - 177,557 21,447 600,948
Exchange rate adjustment 16,647 - 6,169 1,056 23,872
Charge for period 367,888 - 75,475 27,434 470,797
----------- -------------- ----------- --------------- -----------
At 30 June 2012 786,479 - 259,201 49,937 1,095,617
----------- -------------- ----------- --------------- -----------
Net book value
At 30 June 2012 2,962,163 6,022,866 299,351 290,808 9,575,188
----------- -------------- ----------- --------------- -----------
At 31 Dec 2011 2,985,166 5,895,647 193,871 203,924 9,278,608
----------- -------------- ----------- --------------- -----------
Asset under construction relates to the Company's Oil Shale
Project in Morocco.
6. Financial assets - Barryroe Net Profit Interest
In December 2011, San Leon Energy assigned its 30% working
interest in Standard Exploration Licence 1/11 ("Licence" or
"Barryroe") in the Celtic Sea, Ireland to Providence Resources Plc
("Providence") in exchange for a 4.5% Net profit interest ("NPI")
in the full field. Under the terms of the arrangement, San Leon
Energy will not pay any further appraisal or development costs on
the Licence.
The Directors have estimated the fair value of this NPI based on
a technical evaluation of the licence area and with reference to a
third party evaluation report prepared by RPS Energy in February
2011 for Lansdowne Oil & Gas plc, which estimated the net
present value of 100% of the licence at USD 1.14 billion on a P50
case and NPV at a 10% discount rate. Having considered all
available data on the underlying licence area including drilling
and well test results subsequently announced by the licence
operator (Providence), in the opinion of the directors, the
recoverable amount of the NPI is not less than this estimated fair
value.
7. Trade and other receivables
Un-audited Un-audited Audited
30/06/12 30/06/11 31/12/11
EUR EUR EUR
Amounts falling due within
one year:
Trade receivables from joint
operating partners 853,084 1,913,434 1,318,341
VAT and other taxes refundable 815,796 979,934 2,075,922
Other debtors 1,173,828 - 3,390,684
Prepayments and accrued income 996,332 3,680,283 1,279,453
3,839,040 6,573,651 8,064,400
----------- ------------ ------------
8. Other financial assets
Un-audited Un-audited Audited
30/06/12 30/06/11 31/12/11
EUR EUR EUR
Restricted cash at bank 520,276 1,379,193 502,620
520,276 1,379,193 502,620
----------- ------------ ----------
Restricted cash at bank relates to deposit accounts held in
support of bank guarantees required under the Moroccan exploration
licences held by the group.
9. Trade and other payables
Un-audited Un-audited Audited
30/06/12 30/06/11 31/12/11
EUR EUR EUR
Current
Trade payables 2,437,732 7,670,399 6,135,572
Corporation tax - 2,635 -
PAYE / PRSI 212,232 62,993 154,389
Other creditors 39,134 907,331 290,336
Contingent liabilities on
warrant holders 2,261,910 - 2,213,629
Accruals and deferred income 1,487,309 781,290 3,320,025
6,438,317 9,424,648 12,113,951
----------- ----------- -----------
10. Loans and borrowings
Un-audited Un-audited Audited
30/06/12 30/06/11 31/12/11
EUR EUR EUR
Current
Other loans - 477,638 350,785
Delta Hydrocarbons B.V. 4,992,000 4,444,444 4,826,359
4,992,000 4,922,082 5,177,144
----------- ----------- ----------
11. Provisions
Certain Realm Energy International Corporation shareholders
exercised rights of dissent under Canadian law not to accept the
terms of acquisition. Under Canadian law, these dissenting
shareholders are eligible to receive a cash payment equal to the
fair value of their shareholding at acquisition. The provision
represents the directors' estimate of the cash consideration to be
paid to those shareholders taking account of the market price of
the Realm shares at acquisition.
12. Loans and borrowings
Un-audited Un-audited Audited
30/06/12 30/06/11 31/12/11
EUR EUR EUR
Non-current
Delta Hydrocarbons B.V. 579,416 4,055,984 2,671,219
579,416 4,055,984 2,671,219
----------- ----------- ----------
13. Share capital
Un-audited Un-audited
30/06/12 30/06/11
EUR EUR
Authorised
1,500,000,000 Ordinary shares of EUR0.05 each 75,000,000 75,000,000
------------ -----------
Issued share capital No. Ordinary Share capital Share premium
Shares EUR EUR
At 1 Jan 2011 781,995,611 39,099,780 91,589,215
Issued in year 351,176,202 17,558,811 31,718,824
Share issue costs - - (416,819)
-------------- -------------- --------------
At 31 Dec 2011 1,133,171,813 56,658,591 122,891,220
Issued in period 7,452,077 372,604 656,427
At 30 June 2012 1,140,623,890 57,031,195 123,547,647
-------------- -------------- --------------
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR LLFLTALIDFIF
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