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26 Sep 2022 10:14
The following amendment has been made to the Interim results for six months ended 30 June 2022 announcement released on 26 September 2022 at 07:00 under RNS No 5365A.
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Under the subtitle "Acquisition Process" the current version refers to "the consideration is expected to be payable solely from production from BNG".
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It has been replaced with "solely from production from Block 8".
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All other details remain unchanged.
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The full amended text is shown below:
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Caspian Sunrise PLC ("Caspian Sunrise" or the "Company")
Interim results for the six months ended 30 June 2022, planned acquisition & dividend update
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Highlights
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Non-financial
Β· Operational - (new wells drilled at the end of the period) 2022: 2 (2021: 2)
Β· Aggregate production in the period (bbls) up 81% - 2022: 414,048 (2021: 228,387)
Β· Post period end production up 101% at 2,264 bopd (2021: 1,124 bopd)**
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Financial
Β· Revenue up 155% at $25.6 million (2021: $10.1 million) and more than 2021 as a whole
Β· Gross Profit up 145% at $18.9 million (2021: $7.7 million)
Β· Operating profit up 168% at $10.3 million (2021: $3.9 million)
Β· Profit before tax up 193% at $10.0 million (2021: $3.4 million)
Β· Profit after tax up 211% at $7.3 million (2021: $2.4 million)
Β· Net current liabilities down 41% at $13.1 million (2021: $22.6 million)
Β· Cash up $4.7 million at $5.0 million (2021: $0.3 million)
Β· Total assets down 11% at $112.5 million (2021: $126.1 million)
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** based on production at end August 2022 & and August 2021
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The Directors are pleased to present the unaudited results for the six months ended 30 June 2022, together with details of a significant asset acquisition and an update on the timing of first dividends.
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Introduction
Despite losing between $30 and $35 per barrel on export sales since March 2022 as a result of the war in the Ukraine these results for the six months ended 30 June 2022 are comfortably the best in the Group's history.
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Results
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Revenue
Revenue for the period at $25.6 million was approximately 155% ahead of the corresponding period in 2021 (2021: $10.1) and greater than for 2021 as a whole. The increase comprises an 81% increase in the volume of oil produced and a 39% increase in the gross price at which that oil was sold.
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Production volumes
In the period under review 414,048 barrels of oil were produced (2021: 228,387) at an average of 2,288 bopd (2021: 1,262). This increased production included contributions from Wells 154 and 153, which were not operational in the corresponding period in 2020.
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Prices achieved
All the oil produced came from the shallow structures at BNG for which we have long term full production licences allowing oil to be sold by reference to international prices. However, under Kazakh regulations a proportion of the oil produced under export licences must be sold on the domestic market.
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In the period under review approximately 42% of oil sold was at domestic prices averaging approximately $25 per barrel. Approximately 55% of the oil sold in the period was at international prices, which for most of the period under review were after significant discounts for "Urals Oil" of between $30 and $35 per barrel. The average price achieved for these export sales was approximately $86 per barrel compared to average Brent prices in the period of $120 and beyond.
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A development towards the end of the period under review was the emergence of local mini refineries. The advantage of sales to mini refineries are significantly lower taxes and treatment & transportation costs as sales to mini refineries are taxed on a domestic basis with buyers collecting the oil untreated direct from the wellhead. However, in the period under review only approximately 3% of oil sold was to these mini refineries.
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The overall average gross price achieved for all the oil sold in the first 6 months of 2022 was approximately $61 per barrel (2021: $44 per barrel).
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Cost of sales
In the period under review cost of sales increased by 186% to $6.7 million (2021: $2.3 million).
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Gross profit
Gross profit for the period was $18.9 million (2021: $7.7 million).
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Selling expenses
In the period under review, selling expenses increased by approximately 224% from $2.1 million to $6.9 million as the result of increased crude oil volume sold and prices.
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Other administrative expenses
These were stable at approximately $1.7 million as throughout the period under review the board maintained the temporary cost reduction first introduced in H1 2020.
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Operating income
Operating income increased by approximately 168% to $10.3 million from $3.8 million.
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Finance costs
Finance costs reduced by 37% from approximately $0.5 million to approximately $0.3 million, principally following the conversion of the $6.2 million Oraziman family debt.
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Profit before tax
Profit before tax increased by 193% to $10.0 million ($3.4 million).
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Tax charge
Tax in the period under review has been estimated at approximately $2.7 million compared to $1.1 million in the corresponding period.
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Profit after tax
Profit after taxation was approximately 211% higher at $7.3 million (2021: $2.4 million).
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Non-current assets
Non-current assets at approximately $101 million were approximately 7% lower than in the corresponding period in 2021, principally as the result of amortisation charges.
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Net current liabilities
Net current liabilities at approximately $13.1 million were approximately 42% lower (2021: $22.6 million).
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Cash
Included in net current liabilities at 30 June 2022 was cash of approximately $5.0 million (2021: $0.30 million.
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Cashflows
Of the approximately $24.3 million received from customers approximately $14.2 million was paid to suppliers and staff; $5.5 million spent on additions to unproven oil and gas assets; and approximately $4.6 million added to retained cash balances.
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Other developments in the period under review
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Drilling - deep wells
Having extended the well from approximately 4,500 meters to approximately 5,400 meters in 2021 in the period under review we attempted to produce from three of the potential oil-bearing intervals identified. However, after some initial success, we concluded that A8 would not produce at commercial quantities and moved the rig to other targets.
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In June 2022 we spudded Deep Well 802 on the Yelemes Deep structure. This is the sixth and final deep well required under the BNG work programme.
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Drilling - shallow wells
Workover and horizontal drilling at Well 142 on the MJF structure was interrupted at a key stage by the civil unrest at the start of January. A consequence of which was the loss of a drilling camera and a delay in bring the well back into production.
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Similarly at Well 141 we have been delayed for several weeks with a pipe stuck in the well with the well not producing in the period under review.
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3A Best
During the period under review there has been no material progress at 3A Best.
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Caspian Explorer
We have submitted the final tender documents for a commercial drilling charter in 2023 and expect to know whether we have been successful before the end of the year. There was no Caspian Explorer income in the period under review.
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Loan conversion
On 9 March 2022 independent Caspian Sunrise shareholders voted to convert approximately $6.2 million of debt due to the Oraziman family into 139,729,446 new Ordinary shares at a price of 3.2p per shares, increasing the Oraziman family's aggregate shareholding from 45.0% to 48.4%.
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Cancelation of share premium
On 22 April 2022 shareholders voted to cancel the share premium account and the deferred shares in Caspian Sunrise Plc paving the way for the future declaration of dividends. On 22 June 2022 the UK High Court confirmed the cancellations, which took effect in the period under review.
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Covid
The impact of Covid in the period under review was minimal despite several office closures.
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Current trading
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Oil prices
Given our production volumes we are obliged to use local international oil traders for our international sales. This is set to change from 1 January 2023 when we will be able to sell direct to end users eliminating trader commissions.
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Despite the European Union confirming oil produced in Kazakhstan and transported through the Russian pipeline system is not subject to EU sanctions and the action taken by the Kazakh authorities in redesignating oil produced in Kazakhstan as Kazakhstan Export Blend Crude Oil (KEBCO) the discount for oil emerging from Russian pipeline has if anything widened from the $30 - 35 per barrel previously reported to nearer $40 per barrel. At the same time international prices have retreated below the $100 per barrel level.
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This, together with international sales being taxed at the pre discount prices has reduced both the net amount receivable for international sales.
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At the same time the domestic price has increased to approximately $32 per barrel and the price from mini refineries has increased to approximately $38 per barrel with very few other deductions.
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We have therefore focused since the period under review on sales to mini refineries for the majority of oil produced, still with a significant minority of sold on the conventional domestic market. We will look to resume export sales as and when export market prices improve.
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Production
Recent production levels are 2,264 bopd. This is lower than previously achieved, in part as Wells 142 and 145 have been taken out of production to deal with a rising water cuts, and in part as Well 141 has not yet resumed production, where the delays relate to a stuck pipe. Our focus has now moved back to Well 142, which we believe this can be brought back into production sooner than Well 141.Β
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Drilling
At Deep Well 802, has reached a depth of 3,800 meters with casing set for the 3,000 meters. We have drilled through the salt layer and already encountered significant oil shows and the usual high pressures. We look forward to completing and testing the well, which based on current progress we to be in Q4 2022.
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Block 8
We are pleased to announce the intention to acquire Block 8, a producing Contract Area located approximately 160 km from BNG, for a maximum consideration of $60 million, payable in cash from the future production from Block 8 at the rate of $5 per barrel of oil produced.
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Background
The Block 8 Contract Area is 2,823 sq km with three identified structures and production from two existing wells. The Block 8 Contract Area is owned by a member of the Oraziman family, which holds approximately 48.4% of the shares in Caspian Sunrise, and as such it would constitute a related party transaction.
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Caspian Sunrise has acquired an option to acquire the UAE registered holding company of EPC Munai LLP, which is the Kazakh registered holder of the licence for the Block 8 Contract Area, conditional upon inter alia satisfactory due diligence, including a review by an independent expert; the renewal of the existing licence; Independent Director and Nominated Adviser approval; and the consents of the regulatory authorities in Kazakhstan the UAE and the UK.
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The Company and the Oraziman family have entered into a loan agreement under which the Company has agreed to advance cash and equipment up to $5 million to EPC LLP to complete the existing work programme commitments under the existing licence. The loan will bear interest at the rate of 7% and in the event the acquisition of Block 8 does not complete would be repayable by the Oraziman family from future dividend payments.
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The Block 8 licence was previously owned by LG International the Korean conglomerate, who in 2006 started to acquire 3D seismic data over approximately 456 sq km. In recent years two deep wells have been drilled to depths of 4,203 meters and 3,449 maters respectively, from which oil has flowed at rates of up to 800 bopd.
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Current production from Block 8 is approximately 110 bopd, with oil transported to the same treatment and pumping station used by BNG.
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The acquisition of Block 8 would bring a second flagship asset into the Caspian Sunrise Group together with BNG with both having the ability to transform the value of the Group in the event of successful deep drilling.
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Acquisition process
As the acquisition terms do not involve the issue of additional shares and the consideration is expected to be payable solely from production from Block 8, the option if exercised is not expected to result in any material dilution for existing shareholders.
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It is anticipated that the Independent Directors would be in a position to exercise the option by the end of Q1 2023, and that, if exercised, the acquisition would take a further 9-12 months to complete, with much of that time spent on securing the required regulatory approvals.
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Other than the initial $5 million loan ("Loan Agreement") it is not expected that the acquisition of Block 8 would require additional funding from Caspian Sunrise and the therefore the Group's existing other development plans should be unaffected.
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Related Party transaction
The Loan Agreement is considered a Related Party Transaction pursuant to the AIM Rules for Companies.
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The Independent Directors consider, having consulted with WH Ireland, that the terms of the proposed Loan Agreement are fair and reasonable insofar as shareholders of Caspian Sunrise and the Company are concerned. Should the option to acquire Block 8 be exercised by the Independent Directors a further formal assessment by the Independent Directors and WH Ireland would be required at that time.Β
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First dividends
Economic and financial uncertainties over the past few weeks led us to review the start date for the commencement of dividends. However, based on the current position it remains our intention as set out in the 2021 audited accounts published in June, to commence dividends payments in H2 2022.
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Comment
Clive Carver, Chairman said
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"These results demonstrate the strength of the Group's business. Even after suffering discounts of between $30 and $35 per barrel on export sales since March 2022 and continuing to be taxed as if we were selling at full international prices, we have recorded the largest trading profit in the Group's history.
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The Group's balance sheet has been strengthened with a reduction in net current liabilities of approximately $8.5 million. Cash at approximately $5.0 million was the highest for several years.
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All this is without any meaningful contribution from the Caspian Explorer.
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The proposed acquisition of Block 8 has been structured to provide a second flagship asset with huge potential but in a way that should not materially dilute existing shareholders.
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We remain on track to pay the first dividend before the end of the year.
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When the Ukraine war and the associated sanctions end there should be a very material improvement in profitability. Until then the Group looks to broaden its asset base and continue to trade profitably adding to shareholder value."
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UNAUDITED CONDENSED CONSOLIDATED INCOME STATEMENT
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Six months Ended 30 June 2022 Unaudited | Six months ended 30 June 2021 | |
US$000s | US$000s | |
Revenue | 25,591 | 10,055 |
Cost of sales | (6,705) | (2,341) |
Gross Profit | 18,886 | 7,714 |
Selling expense | (6,906) | (2,129) |
Other administrative expenses | (1,662) | (1,733) |
Operating Income | 10,318 | 3,852 |
Finance cost | 4 (330) | (447) |
Finance income | 10 | 11 |
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Income before taxation | 9,998 | 3,416 | |
Taxation | (2,690) | (1,065) | |
Income after taxation | 7,308 | 2,351 | |
Income attributable to owners of the parent | 7,218 | 2,389 | |
Income (Loss) attributable to non-controlling interest | 90 | (38) | |
Income for the year | 7,308 | 2,351 | |
Β Earnings per share | Β 3 | Β |
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Basic income per ordinary share (US cents) 0.33 0.11
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UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
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Six months Ended 30 June 2022 Unaudited | Six months ended 30 June 2021 | ||
US$000s | US$000s | ||
Β Income after taxation | 7,218 | 2,351 | |
Other comprehensive loss: | |||
Items to be reclassified to profit or loss in subsequent periods Exchange differences on translating foreign operations | Β Β (9,264) | Β Β (2,103) | |
Total comprehensive loss for the period | (1,956) | 248 | |
Β Total comprehensive loss attributable to: Owners of the parent | Β Β (2,046) | Β Β 286 | |
Non-controlling interest | 90 | (38) | |
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UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
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For the six months ended 30 June 2022
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Unaudited | Share capital | Share premium | Deferred shares | Cumulative translation reserve | Capital contribution reserve | Merger Reserve | Retained deficit | Total | Non-controlling interests | Total equity | ||||||
US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | |||||||
At 1 January 2022 | 31,118 | 164,817 | 64,702 | (62,103) | (2,362) | 11,511 | Β (156,239) | 51,444 | (5,801) | 45,643 | ||||||
Income after taxation | - | - | - | - | - | - | 7,218 | 7,218 | 90 | 7,308 | ||||||
Exchange differences on translating foreign operations | - | - | - | Β (9,264) | - | - | - | (9,264) | - | (9,264) | ||||||
Total comprehensive income for the period | Β - | Β - | - | Β Β (9,264) | Β - | Β - | Β 7,218 | Β (2,046) | Β 90 | Β (1,956) | ||||||
Shares issue (debt to equity)* | 1,942 | 4,273 | - | -
| Β - | Β - | - | 6,215 | Β - | 6,215 | ||||||
Share premium and Deferred Shares reserves cancellation** | (169,090) | (64,702) | Β | Β | Β | 233,792 | - | - | - | |||||||
At 30 June 2022 | 33,060 | - | - | (71,367) | (2,362) | 11,511 | 84,771 | 55,613 | (5,711) | 49,902 | ||||||
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For the six months ended 30 June 2021
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Unaudited | Share capital | Share premium | Deferred shares | Cumulative translation reserve | Capital contribution reserve | Retained deficit | Total | Non-controlling interests | Total equity |
US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | |
At 1 January 2021 | 30,804 | 248,950 | 64,702 | (55,240) | (2,362) | Β (223,868) | 62,986 | (5,809) | 57,177 |
Income after taxation | - | - | - | - | - | 2,389 | 2,389 | (38) | 2,351 |
Exchange differences on translating foreign operations | - | - | - | Β (2,103) | - | - | (2,103) | - | (2,103) |
Total comprehensive income for the period | Β - | Β - | - | Β Β (2,103) | Β - | Β 2,389 | Β 286 | Β (38) | Β 248 |
Shares issue | 43 | 57 | - | -
| Β - | - | 100 | Β - | 100 |
At 30 June 2021 | 30,847 | 249,007 | 64,702 | (57,343) | (2,362) | (221,479) | 63,372 | (5,847) | 57,525 |
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Reserve | Description and purpose |
Share capital | The nominal value of shares issued |
Deferred shares | The nominal value of deferred shares issued Β |
Cumulative translation reserve Β | Β Β Losses arising on retranslating the net assets of overseas operations into US Dollars Β |
Merger reserves | Gains accrued as the result of acquisitions made in previous periodsΒ Β |
Capital contribution Reserve | Capital contribution arise when a shareholder has made an irrevocable gift to the Company Β |
Retained deficit | Cumulative losses recognised in the profit or loss Β |
Non-controlling interest | The interest of non-controlling parties in the net assets of the subsidiaries |
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UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
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As at 30 June | As at 31 December | As at 30 June | ||||
Β Note | 2022 US$000s | 2021 US$000s | 2021 US$000s | |||
Assets Non-current assets Unproven oil and gas assets | Β Β 5 | Unaudited Β 29,090 | Audited Β Β 46,137 | Unaudited Β 61,634 | ||
Property, plant and equipment | 6 | 65,471 | 57,134 | 51,549 | Β | |
Other receivables | 7 | 5,813 | 4,263 | 6,848 | Β | |
Restricted use cash | 607 | 634 | 241 | Β | ||
Total non-current assets | 100,981 | 108,168 | 120,272 | Β | ||
Β Current assets Inventories | Β Β 677 | Β Β 664 | Β Β 1,219 | Β | ||
Other receivables | 5,832 | 4,950 | 4,376 | Β | ||
Cash and cash equivalents | 5,044 | 429 | 262 | Β | ||
Total current assets | 11,553 | 6,043 | 5,857 | Β | ||
Total assets | 112,534 | 114,211 | 126,129 | Β | ||
Equity and liabilities Equity Share capital | Β Β 8 | Β Β 33,060 | 31,118 | Β Β 30,847 | ||
Share premium | - | 164,817 | 249,007 | Β | ||
Deferred shares | 8 | - | 64,702 | 64,702 | Β | |
Other reserves | (2,362) | (2,362) | (2,362) | Β | ||
Merger reserve | 11,511 | 11,511 | - | Β | ||
Retained earnings | 84,771 | (156,239) | (221,479) | Β | ||
Cumulative translation reserve | (71,367) | (62,103) | (57,343) | Β | ||
Shareholders' equity | 55,613 | 51,444 | 63,372 | Β | ||
Non-controlling interests | (5,711) | (5,801) | (5,847) | Β | ||
Total equity | 49,902 | 45,643 | 57,525 | Β | ||
Current liabilities Trade and other payables | Β
| Β 15,206 | 13,240 | Β 13,194 | ||
Short-term borrowingsΒ | 9 | 988 | 6,425 | 5,871 | ||
Provision for BNG license payment | 3,178 | 3,178 | 3,178 | |||
Other current provisions | 5,261 | 5,482 | 6,173 | |||
Total current liabilities | 24,633 | 28,325 | 28,416 | |||
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Non-current liabilities Β | Β | |||||
Deferred tax liabilities | Β 6,629 | 6,463 | 6,529 | Β | ||
Β Provision for BNG license payment | 17,923 | 19,290 | 20,578 | |||
Other non-current provisions | 452 | 487 | 406 | |||
Other payables | 12,995 | 14,003 | 12,675 | |||
Total non-current liabilities | 37,999 | 40,243 | 40,188 | |||
Total liabilities | 62,632 | 68,568 | 68,604 | |||
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Total equity and liabilities | 112,534 | 114,211 | 126,129 | |||
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This financial information was approved and authorised for issue by the Board of Directors on 23 September 2022 and was signed on its behalf by:
Clive Carver
Chairman
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UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
Six months ended 30 June 2022 | Six months ended 30 June 2021 | |||||
Unaudited US$000s | Unaudited US$000s | |||||
Cash flow provided by operating activities Cash received from customers | Β Β 24,328 | Β Β 8,480 | ||||
Payments made to suppliers and employees | Β (14,222) | Β (8,252) | ||||
Net cash used by operating activities | Β 10,106 | Β 228 | ||||
Β Cash flow used in investing activities Additions to unproven oil and gas assets | Β Β Β (5,362) | Β Β Β (566) | ||||
Β Purchase of PP&E | (129) | - | Β | |||
Cash flow used in investing | ||||||
activities | (5,491) | (566) | ||||
Β Cash flow used by financing activities Loans provided | Β Β - | Β Β 271 | ||||
Net cash used by financing activities | Β - | Β 271 | ||||
Net increase /decrease in cash and cash equivalents | Β 4,615 | Β (67) | ||||
Cash and cash equivalents at the start of the period | Β 429 | Β 329 | ||||
Cash and cash equivalents at the end of the period | Β 5,044 | Β 262 | ||||
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NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL INFORMATION
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1.Β STATUTORY ACCOUNTS
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The interim ο¬nancial results for the period ended 30 June 2022 are unaudited. The ο¬nancial information contained within this report does not constitute statutory accounts as defined by Section 434(3) of the Companies Act 2006.
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2. BASIS OF PREPARATION
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Caspian Sunrise plc is registered and domiciled in England and Wales.
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This interim ο¬nancial information of the Company and its subsidiaries ("the Group") for the six months ended 30 June 2022 has been prepared on a basis consistent with the accounting policies set out in the Group's consolidated annual ο¬nancial statements for the year ended 31 December 2021. It has not been audited or reviewed, does not include all of the information required for full annual ο¬nancial statements, and should be read in conjunction with the Group's consolidated annual ο¬nancial statements for the year ended 31 December 2021. The 2021 annual report and accounts, which received an unqualiο¬ed opinion from the auditors, included a material uncertainty in respect of going concern but did not contain a statement under section 498 (2) or 498 (3) of the Companies Act 2006, have been ο¬led with the Registrar of Companies. As permitted, the Group has chosen not to adopt IAS 34 'Interim Financial Reporting'.
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The financial information is presented in US Dollars and has been prepared under the historical cost convention.
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The accounting policies adopted in the preparation of the interim condensed consolidated ο¬nancial statements are consistent with those followed in the preparation of the Group's annual ο¬nancial statements for the year ended 31 December 2021 except for the eο¬ect of new standards eο¬ective from 1 January 2022 as explained below. These are expected to be consistent with the ο¬nancial statements of the Group as at 31 December 2021 that are/will be prepared in accordance with IFRS and their interpretations issued by the International Accounting Standards Board ("IASB") as adopted by the European Union ("EU").
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Several other amendments and interpretations apply for the ο¬rst time in 2022, but do not have an impact on the interim consolidated ο¬nancial statements of the Group as well.
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Going Concern
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The Group's Financial Statements for the year ended 31 December 2021, which were published on 27 June 2022, contained reference to the existence of a material financial uncertainty, which only some three months on continues to exist. This may cast significant doubt about the Group's ability to continue as a going concern and therefore it may be unable to realise its assets and discharge its liabilities in the normal course of business.
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The financial information in these interim results has been prepared on a going concern basis using current income levels but a reduced work programme. On this basis the Directors believe that the Group will have sufficient resources for its operational needs over the relevant period, being until September 2023. Accordingly, the Directors continue to adopt the going concern basis.
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However, the Group's liquidity is dependent on a number of key factors:
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Β· The Group continues to forward sell it domestic production and receive advances from oil traders with $US2.5 million advanced at 30 June 2022, and the continued availability of such arrangements is important to working capital. Whilst the Board anticipates such facilities remaining available given its trader relationships, should they be withdrawn or reduced more quickly than expected then additional funding would be required.
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Β· Similarly, the Group sells to local mini refineries. Should these arrangements be terminated or reduced then additional funding would be required.
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Β· For the time being the Group is not selling to the international markets as a consequence of the impact of sanctions on Russia, including access to pipelines and the price at which oil emerging from Russian pipelines is sold.
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Β· As ever forecasts remain sensitive to oil prices, which have shown significant volatility in recent times. In the event of a significant decline in world and domestic oil prices additional funding would be required.
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3. INCOME PER SHARE
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Basic loss per share is calculated by dividing the loss attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the year including shares to be issued.
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There is no diο¬erence between the basic and diluted loss per share as the Group made a loss for the current and prior year. Dilutive potential ordinary shares include share options granted to employees and directors where the exercise price (adjusted according to IAS33) is less than the average market price of the Company's ordinary shares during the period.
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The calculation of loss per share is based on: | ||
Six months ended 30 June 2022 Unaudited | Six months ended 30 June 2021 Unaudited | |
The basic weighted average number of ordinary shares in issue during the period | Β 2,157,729,446 | Β 2,088,973,983 |
The income (loss) for the year attributable to owners of the parent (US$'000) | Β 7,284 | Β 2,389 |
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4. FINANCIAL EXPENSE
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The Group incurred US$330,000 financial expenses during the 6 months to 30 June 2022, of which US$49,000 was the interest expense on loans provided by Kuat Oraziman and the companies controlled by him (2021: US$130,000).
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5. UNPROVEN OIL AND GAS ASSETS
During the six months period ended June 30 2022 the Company's oil and gas assets decreased on US$ 17 million (2021: increase on US$ 221,000) mainly due to transfer of shallow South Yelemes into production (note 6) and the depreciation expense.
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6. PROPERTY, PLANT & EQUIPMENT
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Group | Β | Proved oiland gas assets | Motor Vehicles | Other | Total | Β |
Β | Β | US$'000 | US$'000 | US$'000 | US$'000 | Β |
Β | Β | Β | ||||
Cost at 1 January 2021 | 43,722 | 56 | 11,177 | 54,955 | Β | |
Additions | 1,757 | 2,198 | 4,938 | 8,894 | Β | |
Disposals | - | - | (11) | (11) | ||
Acquisitions | - | - | 53 | 53 | ||
Foreign exchange difference | (550) | (128) | (212) | (890) | ||
Cost at 31 December 2021 | 44,929 | 2,126 | 15,946 | 63,001 | ||
Additions* | 14,564 | 129 | - | 14,693 | Β | |
Foreign exchange difference | (3,543) | (112) | (955) | (4,610) | Β | |
Cost at 30 June 2022 | 55,400 | 2,015 | 14,779 | 72,194 | Β | |
Depreciation at 1 January 2021 | 1,390 | 47 | 673 | 2,110 | Β | |
Charge for the year | 1,339 | 482 | 1,736 | 3,558 | Β | |
Disposals | - | - | (7) | (7) | Β | |
Foreign exchange difference | 42 | 40 | 124 | 206 | Β | |
Depreciation at 31 December 2021 | 2,771 | 570 | 2,526 | 5,867 | Β | |
Charge for the year | 399 | 179 | 459 | 1,037 | Β | |
Foreign exchange difference | (152) | (9) | (20) | (181) | Β | |
Depreciation at 30 June 2022 | 3,018 | 740 | 2,965 | 6,723 | Β | |
Net book value at: | Β | Β | ||||
01 January 2021 | 42,332 | 9 | 10,504 | 52,845 | Β | |
31 December 2021 | 42,158 | 1,556 | 13,419 | 57,134 | Β | |
30 June 2022 | 52,382 | 1,276 | 11,813 | 65,471 | Β | |
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* During six months of 2022 BNG has moved its unproven oil and gas asset on total US $14,392 into proved assets.
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7. OTHER NON-CURRENT RECEIVABLES
During the six months period ended June 30, 2022, the Company has provided advances related to its drilling operations in the amount of US$1.52 million (2021: US$1.48 million). Total prepayments made for drilling services as at 30.06.2022 was US$ 1,524,000 (2021: US$ 1,482,000). VAT recoverable at the Group level as at 30.06.2022: US$4,289,000 (2020: US$4,031,000).
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8. CALLED UP SHARE CAPITAL
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Number of ordinary shares | $'000 | Number of deferred shares Β | $'000 | |
Balance at 31 December 2021 | 2,110,772,114 | 31,118 | 373,317,105 | 64,702 |
Balance at 30 June 2022 | Β 2,250,501,560 | Β 33,060 | Β -* | Β -* |
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*In June 2022 the Company received approval from the UK High Court for the cancellation of its Deferred shares and Share premium accounts
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Β | 9. BORROWINGS | Β | ||||||||||||
Β | Six months ended 30 June 2022 US$'000 Β | Year ended 31 December 2021 Β US$'000 Β | Β | |||||||||||
Β | Unaudited | Audited | Β | |||||||||||
Β | Amounts payable within one year | Β | ||||||||||||
Β | Akku Investments | 99 | 4,433 | Β | ||||||||||
Β | Mr Oraziman | 355 | 1,424 | Β | ||||||||||
Β | Other borrowings | 534 | 568 | Β | ||||||||||
Β | 988 | 6,425 | Β | |||||||||||
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In March 2022 Caspian Sunrise plc converted its debts to Mr. Oraziman and the related companies by means of issuing in exchange of total 139,729,446 common shares of the Company on total US$ 6.2 million, of which US$5.6 million were the converted loans. During the period to 30 June 2022 Vertom International NV provided US$ 350,000 of new loans to the companies of the group.Β Β Β Β Β Β Β Β Β Β Β Β Β | ||||||||||||||
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