Sodra Petroleum AB - 9 Months Results
November 13 1998 - 11:41AM
UK Regulatory
RNS No 6607n
SODRA PETROLEUM AB
13th November 1998
Sodra Petroleum AB (publ)
Report for the period
15 December 1997 - 30 September 1998
RESULT AND CASH FLOW
The Group
Sodra Petroleum AB (Sodra) reports a group net result of MSEK .2
corresponding to SEK 0.0 per share for the period ended 30 September
1998.
Sodra incurred administration expenses of MSEK 2.1 during the period.
Net financial income and expenses were MSEK 2.3. Included was interest
received of MSEK 4.1 and net currency exchange gains of MSEK 4.1
offset by AIM share-listing costs of MSEK 5.9. Currency exchange gains
arose primarily as a result of translating loans receivable from USD
to SEK.
Parent Company
The parent company reported a net result for the period from
incorporation until 30 September 1998 of MSEK -9.0. The loss arose due
to share issue costs of MSEK 11.4 and AIM share-listing costs of MSEK
5.9 being charged to income during the period netted off against
unrealised currency exchange gain on loans receivable of MSEK 4.2. and
interest income of MSEK 6.1.
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 shares in
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 September 1998 amounted to MSEK 188.4. 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 168.5. Of this amount, MSEK 18.6 was for the
acquisition of Lundin Oils' interest in the Falklands concession. The
balance primarily represents Sodra's share of expenditure for drilling
operations offshore the Falkland Islands during the period.
OPERATIONS
Sodra is the 87.5% interest holder of Tranche F following a farmout
agreement, subject to government approval, entered into by Desire
Petroleum Plc in September. On September 16 Sodra commenced drilling
an exploration well (14/24-1 on the Braela prospect in Tranche F. By
October 12 the well had reached a total depth of 2983 meters below sea
level. The geological formations at that depth were unfavourable for
oil accumulation or generation and it was decided to plug and abandon
the well. The data collected from the well are now being analysed to
determine the prospectivity of Tranche F.
Elsewhere in the Falkland Islands a total of four wells have been
drilled, with a fifth one in Shell's Tranche B currently drilling. The
combined results of the drilled wells have shown the necessary
elements for an oil accumulation to be present in the basin but the
right combination of these elements is yet to be found. The results of
Sodra's well together with data from other wells are now being
incorporated into the overall analysis and evaluation of the area.
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. At an additional EGM held on
October 2 Dr Roger Cairns was elected to the Board of Directors.
Stockholm, 13 November 1998
Magnus Nordin
Managing Director
KEY FINANCIAL RATIOS
15 Dec 15 Dec
1997- 1997-
30 Sept 30 Sept
1998 1998
Group Parent Company
Key Financial Ratios
Equity ratio, % 1 85.1 99.5
Shareholders' equity SEK per 3.84 3.84
share 2
Earnings SEK per share 3 0.0 -0.11
Number of shares at the period 81,012,976 81,012,976
end
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 Sept 1998 30 Sept 1998
Group Parent Company
Administration expenses -2,078,753 -1,962,593
---------- ----------
Operating loss -2,078,753 -1,962,593
Financial income and expenses, 2,325,856 -7,011,264
net --------- ----------
Net result 247,103 -8,973,857
GROUP BALANCE SHEET IN SUMMARY
Expressed in TSEK 30 Sept 30 Sept
1998 1998
Group Parent Company
ASSETS
Tangible fixed assets
Oil and gas properties 168,529,911 0
Financial fixed assets
Share in subsidiaries 0 95,880
Current Assets
Other current assets 8,634,579 135,773846
Cash and bank 188,411,448 176,789,808
----------- ----------
Total current assets 197,046,027 312,563,654
----------- ----------
Total assets 365,575,938 312,659,534
SHAREHOLDERS' EQUITY
AND LIABILITIES
Shareholders' equity including
net result for the financial
period -310,984,153 -311,187,263
Current liabilities -54,591,785 -1,472,271
----------- -----------
Total shareholders' equity and
liabilities -365,575,938 -312,659,534
This report has not been subject to review by the company's auditors.
For further information, please contact:
Magnus Nordin
Sodra Petroleum AB
Tel: +46 705 766 555
Simon Rothschild
Millham Communications
Tel: 0171 256 5756
END
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