CORE Obliouvs16 Feb 2011 07:57
Chalkwell Investments Plc
("Chalkwell" or "the Company")
Unaudited Interim Results for the six months ended 30 November 2010
Chairman's Review
Financial Results
The accounts for the period to 30 November 2010 show a loss of £96,402; loss per share was 15.01p.
Business Review
During the six month period ended 30 November 2010, the Company continued to pursue its stated investment strategy in order to build value for its shareholders.
As shareholders are aware, following the creditors' voluntary liquidation of the Company's principal trading subsidiary, which was announced on 25 January 2010, the Company's shareholders approved an investment strategy to seek suitable acquisition opportunities in the natural resources sector on a worldwide basis. During the period under review, the Company has focused on identifying and assessing opportunities of this nature. In order to enhance the board's ability to do this, Reinhold Heus and I joined the Board in December bringing with us over 50 years of experience in the oil and gas sector, both first hand and City facing.
Shareholders will be aware that during the period under review and following the period end, the Company raised a total of £1.6 million (£600,000 before the period end and £1 million after the period end). Of those funds, Chalkwell has lent £800,000 in two unsecured loans to Core Oil & Gas Inc ("Core") to assist it with the acquisition of a 33.3 per cent working interest and a 29.13 per cent net revenue interest in respect of Mustang Island in Kleburg County, Texas (State of Texas Oil and Gas Lease numbers 108873 and 108877) ("Mustang Assets"). As announced on 26 January 2011, the Company has now agreed outline terms to acquire Core in an all share deal, which will be classified as a reverse takeover under the AIM Rules, if it completes.
As set out above, the Company became an investing company for the purposes of the AIM Rules following the liquidation of its principal trading subsidiary in January 2010. Pursuant to Rule 15 of the AIM Rules, trading in the Company's shares and warrants was suspended on 26 January 2011 due to the Company having been an investing company for 12 months. The Company now has six months from the date of suspension to complete a transaction which constitutes a reverse takeover in accordance with Rule 14 of the AIM Rules or trading in the Company's shares and warrants will be cancelled.
We are progressing the acquisition of Core and whilst there is of course no guarantee that the acquisition will complete during the prescribed timeframe we are making good progress and we are excited by the potential of the Mustang Assets. I would like to take this opportunity to welcome our new shareholders and to thank you for your support and to assure you that we are working hard on your behalf.
On behalf of the board