Last checked at 22 Sep 2014 07:00
Petro Matad Limited
('Petro Matad' or the 'Company')
Interim results for the six months ended 30 June 2014
LONDON, 22 September 2014: Petro Matad Limited, the AIM quoted Mongolian oil explorer, is pleased to announce its unaudited interim results for the six months ended 30 June 2014
Financial Summary
The Group posted a loss of USD 2.00 million for the six-month period ended 30 June 2014, which compares to a loss of USD 3.65 million for the comparable period in 2013. The reduced loss in 2014 reflects lower activity levels and reduced staff numbers compared to 2013.
Oil Conference
Petro Matad would also like to take this opportunity to provide an update on recent events in Mongolia. The new Petroleum Law passed the Mongolian Parliament in 2014 and came into force as from 29 July 2014 when it was published in the State Information magazine. An Oil Conference was held in Ulaanbaatar on 10 and 11 September 2014 at which the Mongolian Government and the Petroleum Authority of Mongolia gave a number of talks explaining the implications of the new Law. The conference also had a number of talks and discussion groups on future oil exploration opportunities in Mongolia. Details of the conference can be found at http://www.oilmongolia.com/about_the_conference.
The most significant impact of this newly approved Petroleum Law for Petro Matad is that it extends the initial licence term for exploration acreage from five (5) years to eight (8) years for licences signed prior to the new Law coming into effect. It also allows the Government administrative body to further extend the licences two more times for up to two (2) years each. As a result of this, the initial exploration licence period for Petro Matad's Blocks IV and V is now eight (8) years to 29 July 2017.
Operational Update
The main activities during the first half of 2014 were field studies, ongoing prospect generation and supporting the ongoing farmout effort. The most recent operational update was issued on 7 May 2014 and is posted on the Company's website. Following is a link to this update.
http://www.petromatad.com/wp-content/uploads/2014/05/07052014-Operational-Update.pdf
About Petro Matad Limited
Petro Matad is the parent company of a group focussed on oil exploration, as well as future development and production, in Mongolia. The Group holds sole operatorship of three Production Sharing Contracts with the Government of Mongolia. Block XX has an area of 10,340km² in the far eastern part of the country. Blocks IV and V are located in central Mongolia. Block IV covers approximately 29,000km² and Block V approximately 21,150km².
Petro Matad Limited is incorporated in the Isle of Man under company number 1483V. Its registered office is at Victory House, Prospect Hill, Douglas, Isle of Man, IM1 1EQ.
Further information:
Petro Matad Limited
George Watkins, Chairman
+976 11 331099
NOMAD and Broker
Westhouse Securities Limited
Alastair Stratton / Martin Davison
+44 (0)20 7601 6100STATEMENT OF COMPREHENSIVE INCOME
FOR THE HALF-YEAR ENDED 30 JUNE 2014
Consolidated | |||
30 Jun 2014 | 30 Jun 2013 | ||
$'000 | $'000 | ||
Continuing Operations | |||
Revenue | |||
Interest Income | 48 | 71 | |
Other Income | 1 | - | |
49 | 71 | ||
Expenditure | |||
Consultancy fees | 25 | 192 | |
Depreciation and amortisation | 72 | 122 | |
Employee benefits expenses | 1,482 | 2,181 | |
Exploration expenditure | 34 | 574 | |
Other expenses | 355 | 602 | |
Loss from continuing operations before income tax | (1,919) | (3,600) | |
Income tax expense | - | - | |
Loss from continuing operations after income tax | (1,919) | (3,600) | |
Net Loss | (1,919) | (3,600) | |
Other comprehensive loss | |||
Exchange rate differences on translating foreign operations | (81) | (53) | |
Other comprehensive income, net of income tax | (81) | (53) | |
Total comprehensive loss | (2,000) | (3,653) | |
Loss attributable to owners of the parent | (1,919) | (3,600) | |
Total comprehensive loss attributable to owners of the parent | (2,000) | (3,653) | |
Loss per share (cents per share) | |||
- Basic and diluted loss per share | 0.69 | 1.93 | |
STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2014
Consolidated | |||
30 Jun 2014 | 31 Dec 2013 | 30 Jun 2013 | |
$'000 | $'000 | $'000 | |
ASSETS | |||
Current Assets | |||
Cash and cash equivalents | 1,884 | 3,308 | 6,995 |
Trade and other receivables | 289 | 310 | 357 |
Prepayments and other assets | 458 | 484 | 579 |
Total Current Assets | 2,631 | 4,102 | 7,931 |
Non-Current Assets | |||
Exploration and evaluation | 15,275 | 15,275 | 15,275 |
Property, plant and equipment | 511 | 618 | 770 |
Total Non-Current assets | 15,786 | 15,893 | 16,045 |
TOTAL ASSETS | 18,417 | 19,995 | 23,976 |
LIABILITIES | |||
Current liabilities | |||
Trade and other payables | 478 | 718 | 723 |
Total Current Liabilities | 478 | 718 | 723 |
TOTAL LIABILITIES | 478 | 718 | 723 |
NET ASSETS | 17,939 | 19,277 | 23,253 |
EQUITY | |||
Issued capital | 105,097 | 105,097 | 104,308 |
Reserves | 5,312 | 4,736 | 5,689 |
Accumulated losses | (92,470) | (90,556) | (86,744) |
TOTAL EQUITY | 17,939 | 19,277 | 23,253 |
CONDENSED CASH FLOW STATEMENT
FOR THE HALF YEAR ENDED 30 JUNE 2014
Consolidated | ||
30 Jun 2014 | 30 Jun 2013 | |
$'000 | $'000 | |
Cash flows from operating activities | ||
Payments to suppliers and employees | (1,383) | (2,598) |
Interest received | 48 | 70 |
Net cash flows from/(used in) operating activities | (1,335) | (2,528) |
Cash flows from operating activities | ||
Purchase of property, plant and equipment | (2) | (17) |
Proceeds from the disposal of plant and equipment | - | - |
Net cash flows from/(used in) investing activities | (2) | (17) |
Cash flows from financing activities | ||
Proceeds from issue of shares | - | 5,005 |
Capital raising costs | - | - |
Net cash flows from/(used in) financing activities | - | 5,005 |
Net increase/(decrease) in cash and cash equivalents | (1,337) | 2,460 |
Net foreign exchange differences | (87) | (53) |
Cash and cash equivalents at beginning of period | 3,308 | 4,588 |
Cash and cash equivalents at end of period | 1,884 | 6,995 |
STATEMENT OF CHANGES IN EQUITY
FOR THE HALF YEAR ENDED 30 JUNE 2014
Consolidated | ||||
Attributable to equity holders of the parent | ||||
Issued Capital $'000 |
Accumulated Losses $'000 |
Other Reserves $'000 |
Total $'000 | |
As at 1 January 2013 | 98,893 | (83,993) | 5,988 | 20,888 |
Loss for the period | - | (3,600) | - | (3,600) |
Other comprehensive income | - | - | (53) | (53) |
Total comprehensive income for the period | 98,893 | (87,593) | 5,935 | 17,235 |
Transactions with owners in their capacity as owners | ||||
Issue of share capital | 5,005 | - | - | 5,005 |
Cost of capital raising | - | - | - | - |
Share based payments | 410 | 849 | (246) | 1,013 |
As at 30 June 2013 | 104,308 | (86,744) | 5,689 | 23,253 |
As at 1 January 2014 | 105,097 | (90,556) | 4,736 | 19,277 |
Loss for the period | - | (1,919) | - | (1,919) |
Other comprehensive income | - | - | (81) | (81) |
Total comprehensive income for the period | 105,097 | (92,475) | 4,655 | 17,277 |
Transactions with owners in their capacity as owners | ||||
Issue of share capital | - | - | - | - |
Cost of capital raising | - | - | - | - |
Share based payments | - | 5 | 657 | 662 |
As at 30 June 2014 | 105,097 | (92,470) | 5,312 | 17,939 |
1. CORPORATE INFORMATION
The financial report covers the consolidated entity of Petro Matad Limited and its controlled entities.
Petro Matad Limited, a company incorporated in the Isle of Man on 30 August 2007 has five wholly owned subsidiaries, including Capcorp Mongolia LLC and Petro Matad LLC (both incorporated in Mongolia), Central Asian Petroleum Corporation Limited ("Capcorp") and Petromatad Invest Limited (both incorporated in the Cayman Islands), and Petro Matad Services Limited (incorporated in the Isle of Man). Its majority shareholder is Petrovis Matad Inc.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The half-year financial report does not include all of the notes of the type normally included within the annual financial report and therefore cannot be expected to provide as full an understanding of the financial performance, financial position and financing and investing activities of the consolidated entity as the full financial report.
The half-year financial report should be read in conjunction with the annual Financial Report of Petro Matad Limited as at 31 December 2013. The half-year consolidated financial statements have been prepared using the same accounting policies as used in the annual financial statements for the year ended 31 December 2013.
It is also recommended that the half-year financial report is considered together with any public announcements made by Petro Matad Limited and its controlled entities during the half-year ended 30 June 2014.
(a) Basis of Preparation
The half-year consolidated financial report is a general purpose financial report, which has been prepared in accordance with the requirements of International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ('IASB'). The half-year financial report has been prepared on a historical cost basis, except where stated.
The financial report is presented in US dollars and all values are rounded to the nearest thousand dollars ($'000).
For the purpose of preparing the half-year financial report, the half-year has been treated as a discrete reporting period.
(b) Basis of consolidation
The consolidated financial statements comprise the financial statements of the Group as at 31 December each year.
Subsidiaries are entities controlled by the Group. Control exists when the Group has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. In assessing control, potential voting rights that presently are exercisable or convertible are taken into account. The financial statements of the subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases.
The financial statements of subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies. Adjustments are made to bring into line any dissimilar accounting policies that may exist.
A change in the ownership interest of a subsidiary that does not result in a loss of control is accounted for as an equity transaction.
All intercompany balances and transactions, including unrealised profits arising from intra-group transactions, have been eliminated in full. Unrealised losses are eliminated unless costs cannot be recovered.
3. CONTRIBUTED EQUITY
| CONSOLIDATED | |||||||
| 30 Jun 2014 | 31 Dec 2013 | ||||||
| $'000 | $'000 | ||||||
Ordinary shares (i) 279,340,879 shares paid up (31 Dec 2013: 279,340,879) | 105,097 | 105,097 |
| |||||
105,097 | 105,097 |
| ||||||
(i) Ordinary shares
Full paid ordinary shares carry one vote per share and carry the right to dividends.
Movement in ordinary shares on issue | Number of Shares | Issue Price$ | $'000 |
At 1 January 2014 | 279,340,879 | 105,097 | |
At 30 June 2014 | 279,340,879 | 105,097 |
4. RESERVES
A detailed breakdown of the reserves of the Group is as follows:
Merger reserve | Equity benefits reserve | Foreign currency translation | Total | |
Consolidated | $'000 | $'000 | $'000 | $'000 |
As at 1 July 2013 | 831 | 5,595 | (737) | 5,689 |
Currency translation differences | - | - | (159) | (159) |
Share based payments | - | (794) | - | (794) |
As at 31 December 2013 | 831 | 4,801 | (896) | 4,736 |
Currency translation differences | - | - | (81) | (81) |
Share based payments | - | 657 | - | 657 |
As at 30 June 2014 | 831 | 5,458 | (977) | 5,312 |
5. LOSS PER SHARE
The following reflects the loss and share data used in the total operations basic and diluted loss per share computations:
| CONSOLIDATED | |||||
| 30 Jun 2014 | 30 Jun 2013 | ||||
Basic loss per share |
| |||||
Total basic loss per share (US$ cents per share) (note a) | (0.69) | (1.93) |
| |||
| ||||||
Diluted loss per share |
| |||||
Total diluted loss per share (US$ cents per share) (note b) | (0.69) | (1.93) |
| |||
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(a) Basic loss per share |
| |||||
The loss and weighted average number of ordinary shares used in the calculation of basic loss per share are as follows: |
| |||||
| ||||||
| ||||||
Net loss attributable to ordinary shareholders (US$'000) | 1,919 | 3,600 |
| |||
| ||||||
Weighted average number of ordinary shares for the purposes of basic earnings per share ('000) |
| |||||
279,341 | 186,610 |
| ||||
| ||||||
(b) Diluted loss per share |
| |||||
The loss and weighted average number of ordinary shares used in the calculation of diluted earnings per share are as follows: |
| |||||
| ||||||
| ||||||
Net loss attributable to ordinary shareholders (US$'000) | 1,919 | 3,600 |
| |||
| ||||||
Weighted average number of ordinary shares for the purposes of basic earnings per share ('000) |
| |||||
279,341 | 186,610 |
| ||||
Share options and Conditional Share Awards could potentially dilute basic loss per share in the future, however they have been excluded from the calculation of diluted loss per share because they are anti-dilutive for both years presented.
6. EVENTS AFTER THE REPORTING DATE
The new Mongolian Petroleum Law became effective on 29 July 2014. With passage of this law the initial exploration terms for Blocks IV and V have been amended to eight years as compared to five years under the old law. Consequently the initial exploration term for these Blocks now expires on 29 July 2017 (extendable by a further four years - 2 years x 2).