Last checked at 22 Mar 2013 07:00
TANGIERS PETROLEUM LIMITED - Full Year Statutory AccountsTANGIERS PETROLEUM LIMITED - Full Year Statutory Accounts
PR Newswire
London, March 22
The Company would like to advise that a copy of the Company's full yearstatutory accounts for the year ended 31 December 2012 has been lodged on theASX and are also available on the Company's website atwww.tangierspetroleum.com.au
Set out below is a summary of the Company's financial information for the yearended 31 December 2012 as extracted from the full year statutory accounts,being:
Statement of Comprehensive Income;Statement of Financial Position;Statement of Changes in Equity; andStatement of Cash Flows. CHAIRMANS STATEMENTI am pleased to present Tangiers Petroleum Limited's Annual Report for 2012 andprovide an overview of the significant achievements made by your company overthe past 12 months.
Following the acquisition of a 677 sq km 3D offshore seismic program in Moroccoand interest shown by the European investment community, a London AIM listingwas completed on 3 February 2012. By August 2012, however, your company hadless than $1 million in cash reserves and over $70 million in imminentfinancial obligations on its combined acreage in Morocco and Australia.
In September 2012, with a new board appointed, significant efforts were put tothe immediate raising of capital crucial for the continued existence of yourcompany and to the negotiation of farmout arrangements to cover permitobligations in Morocco and Australia.
On the closure of farmout deals on both the Moroccan and Australian acreage,your company will have cash of some $14 million as well as be fully funded forall its exploration commitments up to end 2014. In addition, your company willhave retained valuable exposure of 25% and 27% in these assets respectively.
The Moroccan farmout, which now only requires the approval of the Moroccangovernment, brings in a valuable partner in Galp Energia, a major Portuguese E&P company with a market capitalisation of some A$12 billion and operations ineight African countries. Galp is a fully integrated company with interests inexploration, development, production, refining and marketing. It is theprincipal service-station retailer in Portugal and Spain as well as being amember of a significant deepwater-producing consortium in Brazil.
The full-carry to a maximum of $33 million on well cost negotiated with Galp onthe Tarfaya Block in Morocco, is comparable to deals achieved in surroundingacreage. It is important to note that well cost will be relatively low on ourTarfaya Block, which covers an area of predominantly shallow-water shelf.Contrary to our neighbours, we will be able to utilise a jack-up rig or smallsemi-submersible, typically around half the cost of a large semi-submersible ora drillship required for the deeper-water permits which surround us. Inaddition, the full repayment of past costs far exceeds the past cost repaymentsachieved in other deals for blocks in this region of offshore Morocco.
On completion of the Galp farmout, Tangiers Petroleum Limited will retain a 25%interest in the Tarfaya Block in addition to a cash reimbursement totalling$10.5 million comprising of a refund of past costs and bank guarantee.
In Australia, a Heads of Agreement was signed in November 2012 with CWHResources Limited and a legally-binding farmout agreement is close tosignature. CWH will fund the first $35 million of exploration expenditure onour Bonaparte Basin blocks, consisting of the WA-442-P and NT/P81 permits.These funds will cover commitments for a 3-D seismic survey and 2 wells.
CWH is an ASX-listed company with headquarters in Chongqing, in south-westChina. CWH has several sources of funding through its major shareholders,covering a variety of activities and has formally advised that it hassignificant and continuing financial support from its Chinese shareholders.
On completion of the CWH farmout, Tangiers Petroleum Limited will retain a 27%interest in the Bonaparte Basin blocks.
With the completion of the company's `crisis turn-around' and appointment of anew management team, your company is now ideally placed to pursue the next legof its growth strategy.
This desired growth in the assets of your company will be strongly grounded onthe relevant professional and hands-on experience of its board and managementteam, targeting shallow-water and onshore petroleum assets in Africa for theimmediate future.
The board has expressed a preference for oil E&P opportunities but pricing andinfrastructure are parameters that will be considered for an involvement in anappropriate conventional gas opportunity that could bring value to yourcompany. Unconventional gas will not be considered for the foreseeable future.Opportunities in new permit acquisitions, farm-in agreements, mergers andcorporate acquisitions will be considered recognising your company's financialcapabilities and its logistical limitations.
Above all, in capitalising on the opportunities in our chosen region of growth,the board will be keeping foremost in mind the benefit to the existingshareholders of Tangiers.
I wish to thank the present and past management, staff and contractors ofTangiers Petroleum Limited for their considerable efforts throughout the last 6months.
Lastly, I wish to thank our faithful shareholders for their ongoing support andour new shareholders for the faith in the board and management of TangiersPetroleum Limited.
The efforts of the new board and management of your company is, and will be,fully focused on the future growth in value of your company.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOMEFOR THE YEAR ENDED 31 DECEMBER 2012 Restated Note 2012 2011 $ $ Revenue 3(a) 94,304 94,304Administrative expenses 3(b) (1,826,625) (789,724)Occupancy expenses (369,035) (127,028)Employee benefit expenses (827,774) (176,480)Share-based payment expense (1,691,289) (3,906,791)Depreciation and amortisation expense (35,767) (34,500)Exploration expenditure expensed as (35,765) -incurredImpairment of exploration expense (30,528) (340,889)Interest expense (1,840) (605)Loss before income tax (4,771,796) (5,281,713)Income tax expense 4 - -Net loss attributable to members of the (4,771,796) (5,281,713)parent
Other comprehensive income for the year - -Total comprehensive income for the year (4,771,796) (5,281,713)
Basic and diluted loss per share 5 (4.50) (6.32)(cents) CONSOLIDATED STATEMENT OF FINANCIAL POSITIONAS AT 31 DECEMBER 2012 Restated Note 2012 2011 $ $ASSETSCurrent AssetsCash and cash equivalents 6 4,174,910 1,452,219Other receivables 7 307,949 376,695Total Current Assets 4,482,859 1,828,914Non-Current AssetsPlant and equipment 8 43,710 51,725Other financial assets 9 2,939,949 982,656Exploration and evaluation expenditure 10 9,165,356 3,192,571Total Non-Current Assets 12,149,015 4,226,952TOTAL ASSETS 16,631,874 6,055,866 LIABILITIESCurrent LiabilitiesTrade and other payables 11 445,423 1,112,956Total Current Liabilities 445,423 1,112,956TOTAL LIABILITIES 445,423 1,112,956NET ASSETS 16,186,451 4,942,910 EQUITYContributed equity 12(a) 49,196,225 37,561,795Reserves 12(b) 10,096,102 5,804,445Accumulated losses 12(c) (43,105,876) (38,423,330)TOTAL EQUITY 16,186,451 4,942,910 STATEMENTS OF CHANGES IN EQUITYFOR THE YEAR ENDED 31 DECEMBER 2012 Restated Restated Issued Accumulated Total capital Reserve losses equity $ $ $ $ Balance at 1 January 2011 35,637,180 1,078,368 (33,141,617) 3,573,931Loss for the year - - (5,281,713) (5,281,713)Other comprehensive income - - - -Total comprehensive loss for the - - (5,281,713) (5,281,713)year, net of taxShares issued during the year 2,157,344 - - 2,157,344Options issued during the year - 819,286 - 819,286Share-based payments - 3,906,791 - 3,906,791Equity raising costs (232,729) - - (232,729)Balance at 31 December 2011 37,561,795 5,804,445 (38,423,330) 4,942,910
Balance at 1 January 2012 37,561,795 5,804,445 (38,423,330) 4,942,910Loss for the year - - (4,771,796) (4,771,796)Other comprehensive income - - - -Total comprehensive loss for the - - (4,771,796) (4,771,796)year, net of taxShares issued during the year 15,343,055 - - 15,343,055Share-based payments - 4,291,657 - 4,291,657Equity raising costs (3,619,375) - - (3,619,375)Shares cancelled during the year (89,250) - 89,250 -Balance at 31 December 2012 49,196,225 10,096,102 (43,105,876) 16,186,451
STATEMENTS OF CASH FLOWSFOR THE YEAR ENDED 31 DECEMBER 2012 Note 2012 2011 $ $ Cash flows from operating activitiesInterest received 52,365 94,304Payments to suppliers (2,470,246) (1,254,754)Net cash flows used in operating 6 (2,417,881) (3,413,857)activities Cash flows from investing activitiesPayments for plant and equipment (30,342) (28,390)Payments for bank guarantee (1,880,000) -Payments for exploration and evaluation (7,185,116) (2,253,407)activities
Net cash flows used in investing (9,095,458) (28,390)activities Cash flows from financing activitiesProceeds from issue of shares 15,343,055 2,976,630Share issue costs (1,019,007) (232,729)Net cash flows from financing activities 14,324,048 2,743,901
Net increase/(decrease) in cash and cash 2,810,709 (698,346)equivalentsEffects of exchange rate changes on cash (88,018) -and cash equivalentsCash and cash equivalents at beginning 1,452,219 2,150,565of yearCash and cash equivalents at end of year 6 4,174,910 1,452,219
The above consolidated statements should be read in conjunction with theaccompanying notes END Robert DaltonJoint Company Secretary Tangiers Petroleum LimitedLevel 2, 5 Ord StreetWest Perth WA 6005, AustraliaPh: +61 8 9485 0990www.tangierspetroleum.com Contacts RFC Ambrian Limited (Nominated Adviser)Mr Stuart Laing+61 8 9480 2506 Old Park Lane Capital PLC (Joint AIM Broker)Mr Michael Parnes+ 44 20 7493 8188 Shore Capital Stockbrokers Ltd (Joint AIM Broker)Mr Jerry KeenMr Bidhi Bhoma+ 44 20 7408 4090Mr Ed Portman (Media and Investor Relations - United Kingdom)Tavistock Communications+44 20 7920 3150