Sodra Petroleum AB - Interim Results
August 21 1998 - 11:00AM
UK Regulatory
RNS No 9712e
SODRA PETROLEUM AB
21st August 1998
Sodra Petroleum AB (publ)
Report for the period
15 December 1997 - 30 June 1998
RESULT AND CASH FLOW
The Group
Sodra Petroleum AB (Sodra) reports a group net result of MSEK 7.9
corresponding to SEK 0.1 per share for the period ended 30 June 1998.
Sodra incurred administration expenses of MSEK 1.6 during the period.
Part of these costs related to the listing of the company on the
Alternative Investment Market (AIM) in London.
Net financial income and expenses were MSEK 9.5. Included was interest
received of MSEK 1.4 and net currency exchange gains of MSEK 8.1. The
latter arose primarily as a result of translating loan receivables
from USD to SEK.
Parent Company
The parent company reported a net result for the period from
incorporation until 30 June 1998 of MSEK (2.5). The loss was the
result of share issue costs of MSEK 11.0 being charged to income
during the period netted off against unrealised currency exchange gain
on loans receivable of MSEK 8.1.
GROUP STRUCTURE
Sodra is the parent company of the group also consisting of Sodra's
100%-owned subsidiary IPC Falklands Ltd.
FINANCING AND LIQUIDITY
On 27 February the Board of Directors of Lundin Oil AB decided to
offer 50% of the interest offshore the Falkland Islands, to Lundin
Oil's shareholders through a share issue in Sodra, the single purpose
subsidiary holding the Falkland interest, comprising 100% of Tranche
F. Shareholders were offered one new convertible share of Sodra for
every two shares held in Lundin Oil, 40,506,476 convertible share sin
aggregate, at a price of SEK 7.50 per share. An EGM in Lundin Oil on
17 March approved the issue of a maximum of 3,400,000 warrants to be
transferred to Sodra to allow Sodra shares to be converted back into
shares of Lundin Oil, at the holder's option, in November 2001 at the
ratio 12 Sodra shares for one new share of Lundin Oil.
The Sodra share issue was completed in May 1998 and all 40,506,476
convertible shares were placed, including 3,000,000 shares taken up by
Lundin Oil. Through the new share issue Sodra raised approximately
MSEK 304 before issue costs. In connection with a listing of the Sodra
convertible shares on the Alternative Investment Market (AIM) in
London, Lundin Oil placed 3,000,000 shares in Sodra originally taken
up by Lundin Oil. The convertible shares are traded on the New Market
of the Stockholm Stock Exchange and as of 17 July 1998 the Alternative
Investment Market (AIM) in London. Greig Middleton & Co. Ltd acted as
Nominated Broker and Advisor to Sodra for the AIM-listing.
Liquid assets at 30 June 1998 amounted to MSEK 220.3. This amount
represents the balance of share issue proceeds after the acquisition
of the Falkland Islands concession and the subsequent funding of
expenditures.
INVESTMENTS
During the period, investment in oil and gas assets have been made to
an amount of MSEK 108.9. Of this amount, MSEK 18.6 was for the
acquisition of Lundin Oils' interest in the Falklands concession. The
balance of the costs were rig mobilisation and support costs incurred
under the FOSA collaboration.
OPERATIONS
Sodra is the 100% interest holder of Tranche F. The Borgny Dolphin
semi-submersible drilling ship arrived in the Falklands in early May
and has since drilled one well for Amerada Hess on Tranche A and one
well for LASMO on Tranche C. It is currently drilling a well for
Shell on Tranche B and will immediately thereafter be mobilised to
Tranche F in order to drill the first well for Sodra Petroleum AB.
The well completed on Tranche A, located north of Tranche F, by the
American oil company Amerada Hess encountered minor oil and gas shows
although not of commercial significance. The fact that hydrocarbons
have been shown to be present in the basin is however very encouraging
for the continuing exploration. In July the English oil company Lasmo
drilled a well on Tranche C, which penetrated potential reservoir
formations, but did not encounter hydrocarbons.
SHARE DATA AND OWNERSHIP
The total number of shares in Sodra amount to 81,012,976 divided into
two classes of shares, ordinary shares and convertible shares. There
are 40,506,500 ordinary shares outstanding and 40,506,476 convertible
shares outstanding. The convertible shares can be exchanged for shares
in the parent company Lundin Oil according to the ratio 12 convertible
shares of Sodra for one new share of Lundin Oil at the nominal price
of SEK 0.50. The exchange may take place in November 2001. All
ordinary shares are owned by Lundin Oil corresponding to 50.01% of the
share capital.
Sodra's second largest shareholder is its Chairman Adolf H. Lundin
holding 10,214,834 convertible shares, corresponding to 12.6% of the
share capital.
INCORPORATION AND HISTORY
Sodra was incorporated, on 15 December 1997. The initial financial
year of the company ends on 31 December 1998. Prior to the
commencement of its current trading activities, the company had not
carried out any activities. The company name was changed to Sodra
Petroleum AB on 24 February 1998.
BOARD OF DIRECTORS
At an Extraordinary General Meeting of Shareholders on 13 March, 1998
Adolf H. Lundin, Ian H. Lundin. Bo Hjelt and Magnus Nordin were
elected to the Board of Directors.
KEY FINANCIAL RATIOS
15 Dec 1997- 15 Dec 1997-
30 Jun 1998 30 June 1998
Group Parent Company
Key Financial Ratios
Equity ratio, %1 95.5 98.9
Shareholders' equity SEK per share2 3.91 3.92
Earnings SEK per share3 0.10 -0.03
Number of shares at the period end 81,012,976 81,012,976
Definitions
1 Equity ratio is defined as the Group's shareholders' equity in
relation to total assets.
2 Shareholders' equity SEK per share is defined as the Group's
shareholders' equity divided by the number of shares at the period
end.
3 Earnings SEK per share is defined as the Group's net result
divided by the weighted average number of shares for the period.
GROUP INCOME STATEMENT IN SUMMARY
15 Dec 1997- 15 Dec 1997-
Expressed in TSEK 30 Jun 1998 30 Jun 1998
Group Parent Company
Administration expenses -1,641 -1,591
------ ------
Operating loss -1,641 -1,591
Financial income and expenses, net 9,521 -928
------ ------
Net result 7,880 -2,519
GROUP BALANCE SHEET IN SUMMARY
Expressed in TSEK 30 Jun 1998 30 Jun 1998
Group Parent Company
ASSETS
Tangible fixed assets
Oil and gas properties 108,946 -
Financial fixed assets
Share in subsidiaries - 96
Current Assets
Other current assets 2,390 101,706
Cash and bank 220,272 219,596
------- -------
Total current assets 222,662 321,302
------- -------
Total assets 331,608 321,398
SHAREHOLDERS' EQUITY
AND LIABILITIES
Shareholders' equity including
net result for the financial period 316,612 317,760
Current liabilities 14,996 3,638
------- -------
Total shareholders' equity and 331,608 321,398
liabilities
Stockholm, 21 August 1998
Magnus Nordin
Managing Director
For further information, please contact:
Magnus Nordin
Lundin Oil
Tel: +46 705 766 555
Simon Raggett
Greig Middleton & Co. Limited
Tel: 0171 655 4000
Simon Rothschild/Judith Parry
Millham Communications
Tel: 0171 256 5756
END
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