Interim Results
April 01 2008 - 8:05AM
UK Regulatory
RNS Number:3034R
Spitfire Oil Limited
01 April 2008
Interim Statement
For the six months ended 31 December 2007
Spitfire Oil Limited ("Spitfire" or the "Company") is pleased to publish its
interim results for the six months ended 31 December 2007.
Highlights
- Resource drilling of the lignite deposit commenced and large diameter core
samples were acquired;
- Aerial surveys were completed for Electromagnetic (EM) and topographical
data;
- Laboratory research commenced into Spitfire Oil's proprietary llow
temperature catalytic pyrolysis technique. Lignite-to-Value;
- The Project was referred to State and National environmental regulators for
determination of the appropriate level of environmental assessment. Field
surveys for flora and fauna species were initiated.
Review of Operations
Your directors present their report on the consolidated entity consisting of
Spitfire Oil Limited and the entities it controlled at the end of, or during,
the half-year ended 31 December 2007.
The following persons were directors of Spitfire Oil Limited during the whole of
the half year and up to the date of this report:
Mr. Mladen Ninkov Non-Executive Chairman
Mr. Andrew Woskett Chief Executive Officer (CEO)
Mr. Malcolm Randall Non-Executive Director
Mr. Rupert Crowe Non-Executive Director
Mr. Roger Goodwin Non-Executive Director
Spitfire Oil Limited was admitted to the Alternative Investment market (AIM) on
18 July 2007 under the market code SRO. The initial public offer for Spitfire
Oil raised �10 million (before costs of the issue) thereby enabling the
subsidiary company Spitfire Oil Pty Ltd. (SOPL) to commit to and to satisfy
significant expenditure in a number of operational areas.
Resource Definition and Sampling
The first exploration drilling investigation of the lignite deposit since 2002
was completed in December 2007. A series of 4 PQ sized diamond core samples were
taken from the full lignite seam section, including a 21m thick seam
intersection. The samples were subjected to a range of laboratory tests for coal
chemical analysis and quality assessment.
The first geophysical programme conducted on the tenements was completed late in
2007. This comprised both airborne EM data manipulation using the SkyTemTM
system and downhole geophysical interrogation of cased drill holes through the
full section of the lignite seam. 1000 line kilometres of aerial EM data were
collected and all 2007 drill holes were wireline logged for the full suite of EM
tools (such as resistivity and gamma readings). Data acquisition, integration,
and compilation was performed by external consultants, resulting in a fully
validated database of electromagnetic highs/lows and output of high resolution
imagery depicting subsurface sedimentary contours.
An aerial survey was flown in December 2007 using the LIDAR system. A remote
digital terrain model (DTM) was completed, covering an area of 105 square
kilometers and providing accurate elevation datapoints and orthoimagery, for
refinement of the mining model.
Technology Development
A contract with Curtin University of Technology in Perth, Western Australia, for
the supply of Research and Development Services was activated. Curtin
University's Centre for Fuels and Energy (CFE) will investigate and optimise
Spitfire Oil's Lignite-to-Value conceptualised process for conversion of lignite
into fuel oil products. The ultimate design approach for lignite conversion is
called L2V.
Lignite-to-Value represents a low temperature catalytic pyrolysis method suited
to the particular chemical characteristics of the Salmon Gums lignite, in
particular its variable compositions of sulphur, ash, moisture and salt.
Receipt of core samples enabled CFE to start work on its first and second
contractual deliverables and CFE's report into the first, lignite
characterisation, was submitted. This provided valuable new understanding of the
chemistry of the lignite and clarified the design approach for the pryloysis
reactor, a laboratory scale vessel in which L2V conversions can be simulated and
refined. The first stage of the pyrolysis reactor, with a design throughput of
15kg per hour batch basis, was built and cold commissioned.
Environmental Assessment
Project Referral documents were lodged with the Western Australian Environmental
Protection Authority (EPA) and the Australian Department of Environment. The EPA
determined that the required level of environmental assessment applicable to
this project is the Environmental Review and Management Plan. The environmental
assessment process was initiated.
This report is made in accordance with a resolution of Directors.
Mr. Andrew Woskett
Chief Executive Officer & Director
Spitfire Oil Limited
Dated: 31st Day of March 2008.
Chairman's Statement
"This report contains the inaugural results for Spitfire Oil Limited, following
its successful admission to AIM. Spitfire Oil has made a strong start towards
development of its coal to liquids technology and application of that to its
100% owned lignite deposit in Western Australia."
Mr. Mladen Ninkov
Chairman
Spitfire Oil Limited (AIM : SRO)
Dated: 31st Day of March 2008.
Further Information
Mladen Ninkov - Chairman +44(0)20 7629 7774
Andrew Woskett - Chief Executive Officer & Director +61 1300 551 244
Roger Goodwin - Director +44(0)20 7629 7774
Spitfire Oil Limited's shares are quoted on the Alternative Investment Market
(AIM) of the London Stock Exchange symbol SFO.
The Company's news releases are available on the Company's web site:
www.spitfireoil.com
CONSOLIDATED INCOME STATEMENT
FOR THE HALF YEAR ENDED 31 DECEMBER 2007
Consolidated Entity
31 December 2007 31 December 2006
$ $
Revenue
Non-Operational Revenue 740,059 -
Expenses
Mining & Exploration (R&D) (438,849) -
Promotion & investor relations 16,563 -
Impairment of Goodwill (1,120,096) -
Corporate Expenses 116,113 -
Other Expenses (608,931) -
PROFIT/(LOSS) BEFORE INCOME TAX (1,295,142) -
INCOME TAX EXPENSE - -
PROFIT/(LOSS) FOR THE PERIOD (1,295,142) -
Cents Cents
Loss per share for loss from attributable to the ordinary
equity holders of the company:
Basic loss per share (3.04) -
Diluted loss per share (3.04) -
The accompanying noted form part of these financial statements.
CONSOLIDATED INCOME STATEMENT
FOR THE HALF YEAR ENDED 31 DECEMBER 2007
Consolidated Entity
31 December 2007 30 June 2007
$ $
Assets
Current Assets -
Cash and cash equivalents 18,709,664 -
Trade and other receivables 76,963 -
Other 56,135 -
Total Current Assets 18,842,761 -
Non-Current Assets
Other Financial assets 10,000 -
Property, plant and equipments 8,412 -
Exploration and evaluation expenditure 883,346 -
Total Non-Current Assets 901,758 -
TOTAL ASSETS 19,744,520 -
LIABILITIES
Current Liabilities
Trade and other payables 207,900 -
Total Current Liabilities 207,900 '-
TOTAL LIABILITIES 207,900 -
NET ASSETS 19,536,620 -
EQUITY
Issued capital 20,570,009 -
Reserves 261,753 -
Accumulated Losses (1,295,142) -
TOTAL EQUITY 19,536,620
The accompanying notes form part of these financial statements.
CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2007
Consolidated Entity
Issued Capital Reserves Accumulated Losses Total
$ $ $ $
Shares issued net of costs 20,570,009 - - 20,570,009
Translation of Foreign currency - 261,753 - 261,753
Net (Loss) for the period -
- (1,295,142) (1,295,142)
Balance at 31 December 2007 20,570,009 261,753 (1,295,142) 19,536,620
The accompanying notes form part of these financial statements
CONSOLIDATED CASH FLOW STATEMENT
FOR THE HALF YEAR ENDED 31 DECEMBER 2007
Consolidated Entity
31 December 2007 31 December 2006
$ $
CASH FLOWS RELATED TO OPERATING ACTIVITIES
Payments to suppliers and employees (3,980,202) -
Interest received 457,600 -
Income Tax Returns 277,788 -
NET OPERATING CASH FLOWS (3,244,814) -
CASH FLOWS RELATED TO INVESTING ACTIVITIES
Payment for purchases of plant and equipment (8,913) -
Asset revaluation under IFRS & transition period (893,346) -
NET INVESTING CASH FLOWS (902,259) -
CASH FLOWS RELATED TO FINANCING ACTIVITIES
Proceeds from issues of securities 22,939,791 -
Capital raising costs (344,807) -
NET FINANCING CASH FLOWS 22,594,984 -
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS 18,447,911 -
Cash and cash equivalents at the beginning of the half - -
year
Effects of exchange rate changes on cash and cash
equivalents 261,753 -
CASH AND CASH EQUIVALENTS AT THE END OF THE HALF YEAR 18,709,664 -
The accompanying notes form part of these financial statements
NOTES TO THE FINANCIAL STATEMENTS
Note 1 - Basis of Preparation
The general purpose financial report for the interim half year reporting period
ended 31 December 2007 has been prepared in accordance with the requirements of
International Accounting Standard IAS34: Interim Financial Reporting.
This half year financial report does not include all notes of the type normally
included in an annual financial report and therefore cannot be expected to
provide as full an understanding of the financial performance, financial
position and financing and investing activities of the entity as the full
financial report.
The accounting policies adopted are consistent with the Admission Document
Financial Reports at the time of Spitfire Oil Limited's admission to AIM. No
comparatives have been presented in this financial report as the parent entity,
Spitfire Oil Limited, a Bermuda company, was established on 2 July 2007.
Spitfire Oil Limited listed on AIM on 18 July 2007.
This half-year report has been prepared on an accruals basis and is based on
historical costs modified by the revaluation of selected non-current assets,
financial assets and financial liabilities for which the fair value basis of
accounting has been applied.
All amounts stated in this interim financial report are represented in
Australian Dollars (AUD) unless otherwise stated.
Note 2 - Dividends
The Company did not declare any dividends in the half year ended 31 December
2007.
Spitfire Oil Limited (AIM: SRO)
Note 3 - Contingent Liabilities and Assets
There has been no change in contingent liabilities and assets since the last
annual reporting date.
Note 4 - Issued Capital
31 December 2007 30 June 2007
No $ No $
Issued and Paid up Capital
Fully Paid Ordinary Shares 43,350,000 20,570,009 - -
Options over Fully Paid Ordinary 3,500,000 - - -
Shares
Total Issued Capital 20,570,009 -
Note 5 - Events Subsequent to Reporting Date
No matters or circumstances have arisen since the end of the reporting period,
not otherwise disclosed in this report, which significantly affected or may
significantly affect the operations of the economic entity, the result of those
operations or the state of affairs of the economic entity in subsequent
financial years.
DIRECTORS DECLARATION
The Directors declare that are set out herein:
1. The financial statements and notes:
a. comply with International Accounting Standard IAS34: Interim Financial
Reporting; and
b. give a true and fair view of the economic entity's financial position as at
31 December 2007 and of its performance for the half year ended on that date.
2. In the Directors' opinion there are reasonable grounds to believe that the
Company will be able to pay its debts as and when they become due and payable.
This declaration is made in accordance with a resolution of the Directors.
Mr. Roger Goodwin
Director
Spitfire Oil Limited
This information is provided by RNS
The company news service from the London Stock Exchange
END
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