TIDMUKOG
RNS Number : 5001R
UK Oil & Gas PLC
30 June 2020
30 June 2020
UK OIL & GAS PLC
("UKOG" or the "Company)
Unaudited results for the six-month period ended 31 March
2020
CHIEF EXECUTIVE'S STATEMENT
I am pleased to present the unaudited results of UK Oil &
Gas PLC ("UKOG") for the six-month period ended 31 March 2020.
From a Company perspective the reporting period was dominated by
continued operations at our flagship Horse Hill oil field, which
has been in stable production of over 300 barrels of oil per day
(bopd) for most of the reporting period. We also submitted planning
applications for Arreton oil appraisal on the Isle of Wight and
Loxley gas appraisal in Surrey, both projects designedto add
further proven recoverable resources and potential near-term cash
flow to the Company.
The reporting period has, of course, heralded the beginning of a
uniquely demanding period for the nation and for our industry.
Dealing with Covid-19 and the subsequent collapse of Brent Crude
values has been challenging.
I have experienced and survived many oil price downturns, but
this is by far the most serious and rapid, and unusually beyond the
control of even OPEC, the Unites States and Russia. The collapse is
unprecedented, with Brent crude falling in real terms to levels not
seen since the early 1970s or arguably since the late 1940s. Whilst
there seems to be signs of Brent recovery, the future remains
uncertain. Here at UKOG we have been preparing for the worst but
expecting the best.UKOG's glass remains half-full.
Whilst we have no influence over the price of crude oil, we have
quickly adapted and played to our strengths. Consequently, the
underlying driver of our actions in response to the price collapse
was not simply to focus on cost cutting to weather the downturn,
but more importantly, to position the company to emerge stronger
and with an eye for new opportunities. We believe these will surely
present themselves in a financially distressed world.
Fortunately for UKOG, on 12 March 2020, just before the Covid
lockdown, Horse Hill was granted full long-term production consent
by the Oil and Gas Authority (OGA), enabling us to continue stable
production and, crucially, to enter into longer-term more cost
effective service contracts. The OGA consent also enables us, at
the right time, to allocate net recoverable reserves to the
Company, a pre-requisite for future potential debt-based funding
when oil prices return to better levels.
Just before the Covid-19 lockdown, the Company also paid the
final GBP1 million deferred consideration to Tellurian Investments
LLC to complete the purchase of Magellan Petroleum (UK) Investment
Holdings Limited, which was renamed UKOG 137/246 Ltd. As a result,
UKOG significantly increased its interest in the producing Horse
Hill oil field to a controlling 85.635%. This means we have the
lion's share of Horse Hill production revenues.
We have continued to transform our Horse Hill activities from
testing operations to fit for purpose stable oil production during
the pandemic. Oil production has continued utilising only essential
key workers, all of whom operate under strict hygiene and social
distancing practices under the Company's Covid-19 policy introduced
in early March.
During the period we successfully drilled and completed the
HH-2/2z well, which confirmed the presence and extent of the
Portland oil accumulation. It would be fair to say that the well
has been challenging, particularly under the Covid situation, where
access to the necessary kit and specialist personnel has been
difficult.
After the initial reported high HH-2z oil rates, significant
formation water ingress was observed, requiring the successful
installation of a Thermatek plug to isolate the water inflow. It is
now clear from the image logs recorded in the well, that both the
oil and water flow originated from a series of extensive natural
fractures, primarily at the toe of the well, although there are
also further natural fractures observed higher up in the well. The
plug was initially successful in returning flow to the reported
high oil cut, however water cut built up, necessitating the well to
be produced intermittently as the water disposal costs outweighed
oil revenues.
The HH-2z well is currently shut in for a long duration pressure
build up test to re-assess its connected oil volume. Consequently,
the company has sought an extension to the current test permission
in order to ensure that sufficient data is available to enable the
correct forward decisions to be made.
We are reviewing a number of options for the future use of
HH-2z, including stimulation to return it into long-term oil
production, sidetracking the well to a different subsurface
location and possibly converting it into a future water
re-injection well to further reduce future operating costs (as
foreseen in the Horse Hill field development plan presented to the
OGA earlier this year).
On a positive note we also firmed up our plans for the
reperforation and recompletion of HH-1. The current completion and
perforation scheme is less than optimal for both pump efficiency
and oil inflow. Consequently, if successful we remain confident
this programme can further improve the well's oil production rate.
We currently plan this activity to occur this summer. We should not
forget that outside of the Wytch Farm Field, HH-1 is currently the
UK onshore's most productive well.
Whilst we started the transition in Horse Hill cost structure
from a purely testing phase to expected production in February, it
is fair to say that the Brent collapse accelerated this process. To
date, via the GBP1.65 million purchase of rented surface production
equipment and other savings, we have seen Horse Hill operating
costs significantly reduced by $11 per barrel (bbl) from the
testing phase. Current asset level operating costs, which include
crude transportation and refining fees, are approximately $13/bbl
at current production rates. We believe these are likely to be
amongst the lowest in the entire UK sector, both onshore and
offshore. Further cost savings are ongoing.
As part of the plan to position UKOG for a post Covid world, in
June, the Company fully repaid the convertible loan with Riverfort
Global Opportunities PCC Limited and YA II PN Ltd, making UKOG debt
free. The additional driver for the repayment of the GBP1.75
million outstanding balance was to eliminate the uncertainty
attached to loan note conversion timings and pricing, something the
Company believed created a negative influence on the Company's
share price. We are possibly seeing some of the benefit of this
action in the week prior to this report.
In addition, we raised GBP4.2 million to provide funding for the
above and other key activities, to include the forthcoming HH-1
reperforation and preparations for work at Loxley and follow-up of
the Arreton planning application.
I acknowledge the concerns of private investors about 'dilution'
of shares in the Company. However, it is our view that,
particularly in these financially uncertain times, raising funds
from equity remains the most prudent and only feasible way to fund
projects that can add substantive growth in the asset value of the
company.
Had oil prices remained at their healthy pre-Covid levels, this
would have been a different story, as with our current low $13/bbl
operating costs, the Company would have been able to consolidate a
heathy cash position, plus debt funding would be a reality. I trust
you understand that, at present, we do not live in such a world. We
hope and plan for a better Brent price in the not too distant
future.
I believe that it is also a sign of confidence in the underlying
strength of the company, together with the resultant liquidity of
our stock, that has enabled us to raise significant funds during
such troubled times. This liquidity is a valuable tool, but rest
assured that we will only use this route when it is the best or
only way to implement our strategy to grow the value of the
company.
Finally, I had hoped to bring news of a positive outcome from
yesterday's Surrey County Council's Planning and Regulatory
Committee regarding the Loxley gas appraisal project. However, the
application was refused by a narrow 6-5 decision. Unfortunately,
the precise reasons for refusal remain unclear, which is less than
satisfactory, as was the general conduct and progress of the
meeting.
We have severe reservations regarding the validity of the
council's decision. The meetings main discussion centred around a
highways issue regarding the suitability of the Dunsfold road
adjoining the site to accommodate the envisaged traffic flows.
However, the County Highway's and Planning Officers supported the
application, stating that the submitted traffic mitigation plans
would permit safe use of the road and entry and egress from the
site.
As I made clear at the planning hearing, UKOG believes Loxley is
a material regional resource, which could have made, and could
still make, a timely contribution to Surrey and the UK's recovery
from the Covid-related economic downturn, something that has
affected everyone.
It is particularly disappointing that such a net zero compliant
project which could have been used to generate clean hydrogen fuel
for the UK has had this setback. Whilst we are obviously
disappointed and are considering our position, our current thoughts
are that we will likely appeal the decision via the planning
inspectorate.
To conclude on a positive note, at the time of writing, Brent
continues to stay at $40/bbl, which is very encouraging. We
continue to actively pursue and evaluate new opportunities, both
home and abroad, to add near term production revenues for the
Company and we will be operating prudently and creatively to enable
UKOG to perform at an optimum level.
Operational Review
H ealth, Safety, Environment
There were no Lost Time Incidents , reportable environmental
incidents or health issues on any of UKOG's sites during the period
or post period.
A minor fire occurred in the engine housing of the BDF28
drilling rig in November 2019 during HH-2/2z drilling operations.
The fire was quickly extinguished by site operatives within
minutes, without injury.
Post-period there was a brief protester incident at the Horse
Hill site on 1 June 2020. Two individuals gained illegal access to
the site and were subsequently arrested by the police and charged
with aggravated trespass, a criminal offence. The perpetrators were
advised by staff and the police that they were also in breach of a
High Court Injunction but declined to move. Dependent upon the
outcome of any criminal prosecution, the Company is considering
whether to seek committal hearings for the individuals for the
blatant injunction breach.
Horse Hill Oil Field, PEDL137 and PEDL246 (UKOG 85.64%)
The field and surrounding licence is operated by UKOG's
subsidiary company Horse Hill Developments Ltd (HHDL) in which UKOG
holds a 77.9% ownership. The Licensees are HHDL (65% interest) and
UKOG (137/246) Ltd (35% interest).
Following planning approval for Horse Hill production in
September 2019, the key event of the period was the Oil and Gas
Authority's (OGA) consent to the Field Development Plan (FDP) in
March 2020 and the permission to produce. This milestone allows
long-term production from UKOG's flagship asset.
The Horse Hill-1 well (HH-1) continued producing at high rates
of over 300 bopd almost continuously during the period. Post period
a higher capacity and energy efficient linear rod pump was
installed on HH-1, leading to increased production from the
Portland interval. As of 29 June 2020, 113,143 bbl in total has
been produced from Horse Hill.
Also, operating costs have been reviewed and substantially
reduced, including the purchase of the surface facilities to remove
the substantial equipment rental costs. Further significant savings
were also achieved in oil transportation costs and other
services.
The Horse Hill-2z (HH-2z) well was drilled and completed between
September and November 2019. During well clean-up, formation water
was produced to surface. A water-shut-off intervention was then
completed. HH-2z well testing resumed via a combination of flow
periods, with downhole pumping via a bespoke electric submersible
pump, and pressure build-ups (PBUs) to assess oil volumes connected
to the well.
Following initial high oil rates, HH-2z oil rates declined with
continuing formation water production. The well is currently
shut-in for a long-term PBU test. A number of options are being
reviewed for the future use of HH-2z, including stimulation to
return it into long-term production, sidetracking the well to a
different subsurface location and possibly converting it into a
future water re-injection well to implement pressure support and
further reduce future operating costs (as foreseen in the Horse
Hill FDP). The Company has also sought an extension to the current
test permission in order to ensure that sufficient data is
available to enable the correct decisions to be made.
Post-period, the Company also plans a significant intervention
in HH-1 specifically designed to further improve flow into the
wellbore. Together with a full reperforation of the entire Portland
section using a different type of perforating gun than prior
operations, a new , simpler production tubing completion will be
installed. The new completion will permit the downhole pump to be
installed below the Portland interval to significantly improve pump
efficiency.
Loxley, Broadford Bridge, PEDL234 (UKOG (234) 100%)
UKOG notes with disappointment the refusal of UKOG's Loxley
planning application by Surrey County Council on 29 June 2020,
despite the recommendation to approve our application by its own
planning officers and the permit approval by the Environment Agency
on 25 June. UKOG's is considering appealing this planning
decision.
The Loxley well is intended to test the crest of the Portland
gas accumulation, originally discovered on the neighbouring licence
by the Godley Bridge-1 well.
OGA has approved an amendment to the PEDL234 Retention Area work
programme such that Loxley-1/1z is to be drilled by December
2021.
In November 2019 UKOG submitted a planning application to West
Sussex County Council to extend the existing Broadford Bridge
planning approval by 24 months to March 2022.
Arreton, Isle of Wight, PEDL331 (UKOG 95%)
UKOG held a stakeholder exhibition on the Isle of Wight in
December 2019. The Arreton planning application was submitted in
March 2020 and public consultation is now ongoing. The EA permit
application for Arreton will be submitted shortly.
UKOG intends to drill, sidetrack and test an Arreton-3/3z well,
which will appraise the Arreton-2 oil discovery made by British Gas
in the 1970s. The primary target will be the Portland oil
discovery, but the well will also test the underlying Kimmeridge
section.
Markwells Wood
Work was completed to restore and re-plant the Markwells Wood
well site. UKOG has now relinquished the related PEDL126
licence.
Other Assets
As operator of PEDL143 (UKOG 67.5%), UKOG is reviewing the oil
& gas potential of the licence and has surveyed possible well
sites. OGA granted a two-year extension of PEDL143 to 30 September
2022.
Stable oil production with low water cut continues from the
Horndean oil field in Hampshire (UKOG 10%).
FINANCIAL REVIEW
The operating loss for the six months to 31 March 2019 was
GBP0.77 million compared to GBP1.56 million for the same period
last year. Revenue for the six months saw a reduction from GBP0.1
million to GBP0.08 million, which was a result of lower oil price
and lower production from the non-operated Horndean oil field. Oil
sales from the Horse Hill field were not included in the revenue
line but rather netted of exploration and evaluation expenditure.
There was a substantial reduction in administrative costs that was
primarily driven by a GBP0.92 million recharge of technical staff
to exploration and evaluation assets.
Net cash outflow from operations decreased from GBP3.44 million
to GBP1.06 million; again, this decrease was driven by the
capitalisation of technical staff against exploration and
evaluation assets.
Our expenditures on exploration and evaluation assets during the
period increased to GBP7.80 million (2019: GBP3.98 million), due to
the increased activity at the Horse Hill oil field, this activity
along with lower a lower oil price, also had a negative effect on
the receipts for the sales of test volumes, which decreased from
GBP1.77 million in the six months ending 31 March 2019 to GBP0.99
million. Offsetting the cash outflows, UKOG raised GBP2 million
this resulted in a net cash outflow of GBP6.11 million in the
current period compared to GBP5.15 million in the six months ending
31 March 2019. At the end of the reporting period, UKOG has GBP0.78
million in cash and cash equivalents. After year end it raised a
further GBP4.2 million via the issue of 2,100,000,000 new ordinary
shares in the Company.
As a result of the increased expenditure on exploration and
evaluation assets, associated with drilling on our Horse Hill oil
field, these assets increased to GBP34.03 million (31 March 2019:
GBP24.58 million). The Company's goodwill increased from GBP6.29
million to GBP17.43 million as result of the acquisition the entire
share capital of Magellan Petroleum (UK) Investment Holdings
Limited for a total consideration of GBP12 million in cash and UKOG
shares which occurred in the second half of our 2019 financial
year. It, therefore, was not recognised in the period ending 31
March 2019.
Our borrowings increased from GBP2.3 million at the end of March
2019 to GBP5.48 million at the end of March 2020, this was a result
of our acquisitions of additional equity stakes in Horse Hill
Development Ltd, in the second half of the last financial year,
which resulted in the consolidation of the loans owed to its
shareholders. Subsequent to the year end we repaid the convertible
loan in it entirety from the GBP4.2 million placing carried out in
June 2020.
For further information please contact:
UKOG
Stephen Sanderson / Kiran Morzaria Tel: 01483 900582
WH Ireland (Nominated Adviser and Broker)
James Joyce / James Sinclair-Ford Tel: 0207 220 1666
Cenkos Securities PLC (Joint Broker)
Joe Nally / Neil McDonald Tel: 0207 397 8919
Novum Securities (Joint Broker)
John Bellis Tel: 0207 399 9400
Public Relations
Brian Alexander Tel: 01483 900582
Glossary of Terms:
Term Meaning
deg API A measure of the density of crude oil, as defined by
the American Petroleum Institute
bopd Barrels of oil per day
calcareous Containing calcium carbonate (limestone)
Contingent Those quantities of petroleum estimated, as of a given
Resources date, to be potentially recoverable from known accumulations,
but the applied project(s) are not yet considered mature
enough for commercial development due to one or more
contingencies. Contingent Resources are further categorised
in accordance with the level of certainty associated
with the estimates and may be sub-classified based
on project maturity and/or characterised by their economic
status.
core or coring A drilling technique that involves using a doughnut-shaped
drilling bit to capture or "cut" a continuous cylinder-shaped
core of undamaged in-situ rock. The core is captured
in a steel pipe or "core barrel" above the bit. Core
is normally cut in 30 feet lengths, or multiples of
30 feet, and normally with a diameter of 3.5 or 4 inches.
Core is taken in petroleum reservoir rocks for detailed
laboratory analyses of petrophysical and geomechanical
parameters
discovery A petroleum accumulation for which one or several exploratory
wells have established through testing, sampling and/or
logging the existence of a significant quantity of
potentially moveable hydrocarbons
drawdown pressure drawdown ( P) is defined as the difference
between the reservoir pressure and the flowing bottom
hole pressure. Drawdown enables fluids to flow from
the reservoir into the wellbore. The magnitude of the
drawdown is a major controlling factors of a well's
production rate
extended a well test, as per the permission granted by the Oil
well test and Gas Authority, with an aggregate flow period duration
over all zones of greater than 96 hours
flow test A flow test or well test involves testing a well by
flowing hydrocarbons to the surface, typically through
a test separator. Key measured parameters are oil and
gas flow rates, downhole pressure and surface pressure.
The overall objective is to identify the well's capacity
to produce hydrocarbons at a commercial flow rate
limestone A sedimentary rock predominantly composed of calcite
(a crystalline mineral form of calcium carbonate) of
organic, chemical or detrital origin. Minor amounts
of dolomite, chert and clay are common in limestones.
Chalk is a form of fine-grained limestone. The Kimmeridge
Limestones are effectively chalks being comprised of
the remains of calcareous planktonic algae
mmbbl Million barrels
naturally Fractured reservoirs contain cracks or surface of breakage
fractured within rock; fractures can enhance permeability of
reservoirs rocks greatly by connecting pores together; naturally
fractured reservoirs have been created over geological
time by nature, not man-made via hydraulic fracturing
oil in place The quantity of oil or petroleum that is estimated
(OIP) to exist originally in naturally occurring accumulations
in the ground before any extraction or production
P50 (best a 50% probability that a stated volume will be equaled
estimate) or exceeded
prospect A project associated with a potential accumulation
that is sufficiently well defined to represent a viable
drilling target
Reserves those quantities of petroleum anticipated to be commercially
recoverable by application of development projects
to known accumulations from a given date forward under
defined conditions. Reserves must further satisfy four
criteria: they must be discovered, recoverable, commercial,
and remaining (as of the evaluation date) based on
the development project(s) applied. Reserves are further
categorised in accordance with the level of certainty
associated with the estimates (i.e. Proven, Probable
and Possible) and may be sub-classified based on project
maturity and/or characterised by development and production
status
sandstone A clastic sedimentary rock whose grains are predominantly
sand-sized. The term is commonly used to imply consolidated
sand or a rock made of predominantly quartz sand
shale A fissile rock that is formed by the consolidation
of clay, mud, or silt particles, and that has a finely
stratified or laminated structure. Certain shales,
such as those of the Kimmeridge, often contain a significant
proportion of organic material, which when subject
to increasing temperature and pressure over geological
time transform into petroleum (known as petroleum "source
rocks")
sidetrack Re-entry of a well from the well's surface location
with drilling equipment for the purpose of deviating
from the existing well bore to achieve production or
well data from an alternative zone or bottom hole location,
or to remedy an engineering problem encountered in
the existing well bore.
Consolidated Income Statement (Unaudited)
for the six months ended 31 March 2020
6 months 6 months
31 March
Notes 31 March 2020 2019
(Unaudited) (Unaudited)
GBP'000 GBP'000
------------------------------------------ ------ -------------- ------------
Revenue 88 103
Cost of sales (40) (43)
Gross profit 48 60
------------------------------------------ ------ -------------- ------------
Operating expenses
Administrative expenses (715) (1,560)
Foreign exchange gains (17) (19)
Depletion & impairment expense (87) (41)
Share-based payment expense - -
Other income - 4
------------------------------------------ ------ -------------- ------------
Operating (loss) (771) (1,555)
------------------------------------------ ------ -------------- ------------
Interest expense - (144)
Finance costs (130) (18)
(Loss) from continuing activities before
taxation (902) (1,717)
------------------------------------------ ------ -------------- ------------
Taxation -
------------------------------------------ ------ -------------- ------------
Net (Loss) after tax from continuing
operations (902) (1,717)
------------------------------------------ ------ -------------- ------------
(Loss) for the 6 months attributable
to:
Owners of the parent (1,599)
Non-controlling interest (118)
(902) (1,717)
------------------------------------------ ------ -------------- ------------
Other comprehensive loss
Transfer to income statement - -
------------------------------------------ ------ -------------- ------------
Other comprehensive loss net of taxation (902) (1,717)
------------------------------------------ ------ -------------- ------------
(Loss) per share
------------------------------------------ ------ -------------- ------------
Pence Pence
Basic and diluted 2 (0.01) (0.04)
Consolidated Statement of Financial Position (Unaudited)
as at 31 March 2020
31 March 31 March
Notes 2020 2019
(Unaudited) (Unaudited)
GBP'000 GBP'000
--------------------------------- ------- ------------ ------------
Assets
Non-current assets
Exploration & evaluation assets 34,032 24,584
Oil & Gas properties 1.427 1,442
Decommissioning asset 344 361
Goodwill 17,443 6,290
Property, Plant & Equipment 237 249
------------------------------------------ ------------ ------------
Total non-current assets 53,483 32,926
------------------------------------------ ------------ ------------
Current assets
Inventory 1 1
Trade and other receivables 1,526 4,397
Cash and cash equivalents 780 7,282
------------------------------------------ ------------ ------------
Total current assets 2,307 11,680
------------------------------------------ ------------ ------------
Total Assets 55,790 44,606
------------------------------------------ ------------ ------------
Total current liabilities (2,001) (1,757)
Non-current Liabilities (5,483) (2,340)
Provisions (447) (580)
------------------------------------------ ------------ ------------
Total liabilities (7,931) (4,677)
------------------------------------------ ------------ ------------
Net Assets 47,859 39,929
------------------------------------------ ------------ ------------
Shareholders' Equity
Share capital 12,366 12,189
Share premium account 93,624 81,401
Share-based payment reserve 1,811 1,590
Accumulated losses (60,055) (55,609)
------------------------------------------ ------------ ------------
47,746 39,570
----------------------------------------- ------------ ------------
Non-controlling interest 113 359
Total shareholders' equity 47,859 39,929
------------------------------------------ ------------ ------------
Consolidated Statement of Changes in Equity for the 6 months
ended 31 March 2020
Share-based Non controll-ing
Share Share payment Accumul-ated Interests
capital premium reserve losses Total Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------- --------- --------- ------------ ------------- --------- ----------------- ---------
Balance at 1 October
2018 12,141 75,799 1,590 (53,393) 36,137 651 36,788
Loss for the year - - - (5,394) (5,394) (5,394)
Movement on reserves
re acquisition - - - (838) (838) (538) (1,376)
Total comprehensive
income - - - (6,232) (6,232) (538) (6,770)
------------------------- --------- --------- ------------ ------------- --------- ----------------- ---------
Issue of shares 109 10,183 - - 10,292 - 10,292
Cost of share issue - (209) - - (209) - (209)
Share option exercised - - - - - - -
Share option expired - - (472) 472 - - -
Share based payments - - 693 - 693 - 693
Total transactions
with owners 109 9,974 221 (5,760) 4,544 (538) 4,006
------------------------- --------- --------- ------------ ------------- --------- ----------------- ---------
Balance at 30 September
2019 12,250 85,773 1,811 (59,153) 40,681 113 40,794
------------------------- --------- --------- ------------ ------------- --------- ----------------- ---------
Loss for the period - - - (902) (902) - (902)
Total comprehensive
income - - - - - - -
------------------------- --------- --------- ------------ ------------- --------- ----------------- ---------
Issue of shares 116 7,983 - - 8,099 - 8,099
Cost of share issue - (132) - - (132) - (132)
Total transactions
with owners 116 7,851 - (902) 7,065 - 7,065
------------------------- --------- --------- ------------ ------------- --------- ----------------- ---------
Balance at 31 March
2020 12,366 93,625 1,811 (60,034) 47,746 113 47,859
------------------------- --------- --------- ------------ ------------- --------- ----------------- ---------
Statement of Cash Flows (Unaudited)
for the six months ended 31 March 2020
6 months 6 months
31 March 31 March
Notes 2020 2019
(Unaudited) (Unaudited)
GBP'000 GBP'000
---------------------------------------------- ------- ------------ ------------
Cash flows from operating activities
Loss from operations (771) (1,559)
Depletion & impairment 87 41
Cash effect of provision release - (786)
Decrease / (increase) in inventories - 4
Decrease / (increase) in trade and other
receivables (347) 97
(Decrease) / increase in trade and other
payables (27) (1,232)
------------------------------------------------------- ------------ ------------
Net cash (outflow) from operating activities (1,058) (3,436)
------------------------------------------------------- ------------ ------------
Cash flows from investing activities
Expenditures on exploration & evaluation
assets (7,803) (3,975)
Receipts from sale of test volumes 995 1,773
Expenditures on oil & gas properties 0 (1)
Expenditures on property, plant & equipment (113) (14)
Net cash flows on acquisition of share
in subsidiary - 652
------------------------------------------------------- ------------ ------------
Net cash (outflow) from investing activities (6,922) (1,565)
------------------------------------------------------- ------------ ------------
Cash flows from financing activities
Proceeds from issue of share capital 2,000 -
Interest expense on minority interest
loans (132) (144)
Net cash inflow from financing activities 1,868 (144)
------------------------------------------------------- ------------ ------------
Net change in cash and cash equivalents (6,112) (5,145)
------------------------------------------------------- ------------ ------------
Cash and cash equivalents at the beginning
of the period 6,892 12,427
Cash and cash equivalents at the end
of the period 780 7,282
------------------------------------------------------- ------------ ------------
Notes to the half-yearly results
1. Basis of preparation
As permitted by IAS 34, 'Interim Financial Reporting' has not
been applied to these half-yearly results. The financial
information of the Company for the six months ended 31 March 2020
have been prepared in accordance with the recognition and
measurement principles of International Financial Reporting
Standards, International Accounting Standards and Interpretations
(collectively "IFRS") issued by the International Accounting
Standards Board ("IASB") as adopted by the European Union ("adopted
IFRS") and are in accordance with IFRS as issued by the IASB. The
condensed interim financial information has been prepared using the
accounting policies which will be applied in the Company's
statutory financial statements for the period ending 30 September
2020.
The financial information shown in this publication is unaudited
and does not constitute statutory accounts as defined in Section
434 of the Companies Act 2006. The comparative figures for the
financial year ended 30 September 2019 have been derived from the
statutory accounts for 30 September 2019. The statutory accounts
have been delivered to the Registrar of Companies. The auditors
have reported on those accounts; their report was unqualified and
did not contain statements under the section 498(2) or 498(3) of
the Companies Act 2006.
2. (Loss) per share
The calculation of the basic and diluted (loss) per share is
based upon
6 months 6 months
31 March
31 March 2019 2018
(Unaudited) (Unaudited)
Group GBP'000 GBP'000
------------------------------------- -------------- --------------
(Loss) attributable to ordinary
shareholders (902) ( 1,599)
-------------------------------------- -------------- --------------
Number Number
------------------------------------- -------------- --------------
Weighted average number of ordinary
shares for
calculating basic loss per share 7,095,087,349 4,157,963,641
-------------------------------------- -------------- --------------
Pence Pence
------------------------------------- -------------- --------------
Basic and diluted loss per share (0.01) (0.04)
-------------------------------------- -------------- --------------
3. Availability of the Interim Report
Copies of the report will be available from the Company's
registered office and also from the Company's website
www.ukogplc.com
The information contained within this announcement is deemed by
the Company to constitute inside information under the Market Abuse
Regulation (EU) No. 596/2014.
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contact rns@lseg.com or visit www.rns.com.
END
IR URVNRRSUNORR
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