RNS Number : 7519E
Spitfire Oil Limited
01 October 2008
SPITFIRE OIL
60 St James*s Street, London SW1A 1LE, United Kingdom
Telephone: + 44 (0)20 7629 7774 Facsimile: + 44 (0)20 7629 7773
PRELIMINARY RESULTS
Spitfire Oil Limited (*Spitfire Oil* or the *Company*), has today published its results for the period ended 30 June 2008, a summary of
which is attached.
Spitfire Oil was incorporated on 2 May 2007 and on 11 July 2007 acquired the entire issued capital of Spitfire Oil Pty Ltd (formerly
Hurricane Fuels Pty Ltd) (together *the Group*) by way of a share swap. On 18 July 2007 Spitfire Oil*s shares were admitted to trading on
the Alternative Investment Market ("AIM") of the London Stock Exchange. At the same time the Company placed 16,666,667 new Ordinary Shares
at 60p per share to raise �10,000,000 (A$23,298,000).
The Group*s principal activity is the pursuance of the production of fuel oil and distillate from the Salmon Gums Lignite deposits in
Western Australia. As of 30 June 2008, the Company controlled 6 exploration tenements totalling 519 km2 near Salmon Gums, near Esperance, in
the south east of Western Australia. The tenements contain a large lignite (brown coal) deposit with an Inferred Resource, calculated
according to the JORC Code, of 500 million tonnes of lignite. The lignite has a high Kerogen (hydrocarbon) content convertible into oil
using low temperature pyrolysis at a yield of 0.43 bbl / tonne. Extractable commercial oil reserves are estimated to exceed 200 million
barrels.
The Group has reported a loss before tax A$2,828,901 in the period from incorporation to 30 June 2008.
During the period the Group:
� Drilled 187 exploration holes totalling 6,618 metres and applied for two mining leases totalling 9,854 hectares.
� Began a 2 year, A$4.4 million contract with Curtin University to prove its L2VTM low temperature pyrolysis technology. A
new laboratory and a prototype reactor were constructed, specialist research personnel were recruited and technical work started.
� The Environmental approval process was initiated and the project was assessed at the Environmental Review and Management
Plan level.
� A new Chief Executive was recruited with world class experience in the construction of large oil & gas processing plants
and in environmentally sensitive projects based in Western Australia. All management functions have been transferred to Perth.
The near term objectives of Spitfire are now to:
� Complete an exploration drilling program to calculate an Indicated Resource under the JORC Code and apply for additional
mining leases as applicable.
� Complete the L2VTM Pyrolysis tests at Curtin University and complete conceptual mine and process engineering studies to
deliver a definitive feasibility study and a design basis for a phase 1 commercial plant.
� Progress the environmental approval process.
Chairman*s Statement
*For an entity only admitted to trading on the Alternative Investment Market of the London Stock Exchange in July 2007, its progress towards
proof of concept and commercialization has been impressive.
Although the events of the past month have been particularly devastating for the world financial system which, to some extent has been or
will be passed through to the world economy, the gratifying aspect for the Company of these calamitous events has been the continuing high
price for crude oil and distillates. This, coupled with the ever decreasing size of the world*s recoverable oil reserves, gives real hope
that the Company will reap significant financial rewards should the Salmon Gums project come into commercial operation.
It has been heartening to see the progress that has been made to move the Company ever closer to commercialization. Resource delineation,
exploration and environmental approvals have all made sizeable move forwards. The focus this year shifts to the laboratory to ensure oil
yields are extractable and by products of the Pyrolysis process do not cause any negative impacts to either the extraction process or the
environment. We remain ever hopeful of that those results will be extremely positive.
Needless to say, the Company also has not been blinded to other means to grow shareholder value. In that respect, the Company has evaluated
a number of other oil and gas projects. At this stage, most of these projects do not meet the risk profile or the financial returns required
by the Company.*
Further information
Mladen Ninkov * Chairman Telephone: +44(0)20 7629 7774
Roger Goodwin * Director
Spitfire Oil Limited
Adrian Hadden Telephone: +44(0)20 7523 8353
Collins Stewart Europe Limited
Spitfire Oil Limited*s shares are quoted on the Alternative Investment Market (AIM) of the London Stock Exchange (symbol SRO).
The Company*s news releases are available on the Company*s web site: www.spitfireoil.com
SPITFIRE OIL PTY LIMITED
Income Statement
For the period ended 30 June 2008
(expressed in Australian dollars)
Consolidated Group Parent Entity
2008 2008
A$ A$
Other Revenue 1,251,885 949,590
Corporate expenses (1,410,557) (1,035,345)
Impairment of goodwill (534,439) -
Technology and development (1,883,681) -
Other expenses (234,326) (2,743,146)
Promotion and investor relations (17,783) -
Loss before income tax (2,828,901) (2,828,901)
Income tax expense - -
Loss for the period (2,828,901) (2,828,901)
Basic loss per share (cents per share) (7.06)
Diluted loss per share (cents per (7.06)
share)
Spitfire Oil pty Limited
Balance Sheet
As at 30 June 2008
(expressed in Australian dollars)
Consolidated Group Parent Entity
2008 2008
A$ A$
ASSETS
CURRENT ASSETS
Cash and cash equivalents 14,100,639 14,037,046
Trade and other receivables 194,553 -
Other current assets 36,270 36,270
TOTAL CURRENT ASSETS 14,331,462 14,073,316
NON-CURRENT ASSETS
Trade and other receivables - 2,556,540
Other assets - 1,465
Property, plant and equipment 41,220 -
Intangible assets 3,416,172 -
TOTAL NON-CURRENT ASSETS 3,457,392 2,558,005
TOTAL ASSETS 17,788,854 16,631,321
LIABILITIES
CURRENT LIABILITIES
Trade and other payables 1,172,319 14,786
TOTAL CURRENT LIABILITIES 1,172,319 14,786
TOTAL LIABILITIES 1,172,319 14,786
NET ASSETS 16,616,535 16,616,535
EQUITY
Issued capital 20,854,412 20,854,412
Reserves (1,408,976) (1,408,976)
Accumulated loss (2,828,901) (2,828,901)
TOTAL EQUITY 16,616,535 16,616,535
Spitfire Oil Pty Limited
Statement of Changes in Equity
For the period ended 30 June 2008
(expressed in Australian dollars)
Consolidated Group
Issued Capital Foreign Currency Accumulated Losses Share Based Total
Translation Remuneration
A$ A$ A$ A$ A$
Balance at 2 May 2007 - - - - -
Shares issued 23,300,973 - - - 23,300,973
Share issuance costs (2,446,561) - - - (2,446,561)
Share based remuneration - - - 592,667 592,667
Translation of Foreign currency - (2,001,643) - - (2,001,643)
Net (Loss) for the period - - (2,828,901) - (2,828,901)
Balance at 30 June 2008 20,854,412 (2,001,643) (2,828,901) 592,667 16,616,535
Parent Entity
Issued Capital Foreign Currency Accumulated Losses Share Based Total
Translation Remuneration
A$ A$ A$ A$ A$
Balance at 2 May 2007 - - - - -
Shares issued 23,300,973 - - - 23,300,973
Share issuance costs (2,446,561) - - - (2,446,561)
Share based remuneration - - - 592,667 592,667
Translation of Foreign currency - (2,001,643) - - (2,001,643)
Net (Loss) for the period - - (2,828,901) - (2,828,901)
Balance at 30 June 2008 20,854,412 (2,001,643) (2,828,901) 592,667 16,616,535
Spitfire Oil PtyLimited
Cash Flow Statement
For the period ended 30 June 2008
(expressed in Australian dollars)
Consolidated Group Parent Entity
2008 2008
A$ A$
CASH FLOWS RELATED TO
OPERATING ACTIVITIES
Payments to suppliers and (2,818,468) (570,515)
employees
Interest received 965,664 949,590
R&D tax concession received 277,788 -
CASH FLOWS USED IN OPERATING (1,577,016) 379,075
ACTIVITIES
CASH FLOWS RELATED TO
INVESTING ACTIVITIES
Advances to subsidiary - (5,193,333)
Payment for purchases of plant (45,262) -
and equipment
Payment for purchases of - (1,465)
equity investments
Exploration Expenditure (3,131,852) -
CASH FLOWS USED IN INVESTING (3,177,114) (5,194,798)
ACTIVITIES
CASH FLOWS RELATED TO
FINANCING ACTIVITIES
Proceeds from issues of 20,854,412 20,854,412
securities
CASH FLOW FROM FINANCING 20,854,412 20,854,412
ACTIVITIES
NET INCREASE IN CASH AND CASH 16,102,282 16,038,689
EQUIVALENTS
Cash and cash equivalents at - -
the beginning of the year
Effects of exchange rate changes on cash and cash equivalents (2,001,643) (2,001,643)
CASH AND CASH EQUIVALENTS AT THE END OF THE 14,100,639 14,037,046
YEAR
Notes:
1. Spitfire Oil Limited was incorporated on 2 May 2007.
2. This statement has been prepared using accounting policies and presentation consistent with those applied in the preparation of the
statutory accounts of the Group.
3. The summary accounts set out above do not constitute statutory accounts as defined by Section 84 of the Bermuda Companies Act 1981 or
Section 240 of the UK Companies Act 1985. The summarised consolidated and parent balance sheets at 30 June 2008 and the summarised
consolidated and parent income statements, consolidated and parent statements of changes in equity and the summarised consolidated and
parent cash flow statements for the period then ended have been extracted from the Group*s 2008 statutory financial statements upon which
the auditors* opinion is unqualified. The statutory financial statements for the period 2 May 2007 to 30 June 2008 have been prepared in
accordance with the requirements of International Accounting Standard IAS1: Presentation of Financial Statements as adopted in Australia.
4. The annual report and accounts for 2008 are being sent by post to all registered shareholders. Additional copies of the annual report
and accounts are available from the Company*s London correspondent office, 6th Floor, 60 St James*s Street, London, SW1A 1LE.
5. The calculation of the basic losses per share is based on the loss attributable to ordinary shareholders of A$2,828,901 divided by the
weighted average number of shares in issue during the year of 40,050,309. There is no dilutive effect of share purchase options.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR EASNEDSAPEFE
Spitfire Oil (LSE:SRO)
Historical Stock Chart
From May 2024 to Jun 2024
Spitfire Oil (LSE:SRO)
Historical Stock Chart
From Jun 2023 to Jun 2024
