Last checked at 30 Jun 2017 07:00
RNS Number : 8367C
Nostra Terra Oil & Gas Company PLC
30 June 2017
Nostra Terra Oil and Gas Company plc
("Nostra Terra" or the "Company")
Final results for the year ended 31 December 2016
Highlights
• | Revenue for the period of £282,000 (2015: £594,000)* |
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• | Gross loss for the period of £466,000 before depletion, depreciation and amortisation (2015: profit of £385,000)* |
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• | Reduction in borrowings by more than 50% to £788,000 |
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• | Sale of Chisholm Trail prospect for $2.7m (final figure received), at a significant profit to the carrying book value of US$1.7m as at 31 December 2015 |
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• | Acquisition of 80% working interest in Pine Mills oil field for US$1m |
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• | First Permian Basin acquisition completed |
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• | Raised, in aggregate, £600,000 via two placings |
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• | Settlement of Loan Note for East Ghazalat acquisition, eliminating $2.5m in debt for a payment of $200k by the IRE JV (owner of 50% of East Ghazalat Concession), of which Nostra Terra owned 50% |
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* Decrease in production, revenue and gross operational profit reflect the 6-month gap between selling the Chisholm Trail asset and acquiring the Pine Mills asset
Post Balance Sheet Highlights
• | Acquisition of additional 7.5% Working Interest in Pine Mills and non-appealable Court Judgement in favor of Nostra Terra to secure remaining 12.5% Working Interest |
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• | Stabilised, average production in May 2017 at Pine Mills reached 118bopd |
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• | Second Permian Basin acquisition completed |
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• | Appointment of Non-Executive Director, John Stafford, in conjunction with the retirement of Non-Executive Director, Stephen Oakes |
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• | Raised £500,000 via a placing |
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• | Acquisition of additional 25% interest in East Ghazalat Concession, through increasing ownership of IRE JV to 100% |
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For further information please visit www.ntog.co.uk or contact:
Nostra Terra Oil and Gas Company Plc |
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Matt Lofgran, CEO | +1 480 993 8933 |
Strand Hanson Limited |
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(Nominated & Financial Adviser & Joint Broker) |
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Rory Murphy / Ritchie Balmer / Jack Botros | +44 (0) 20 7409 3494 |
Smaller Company Capital Ltd (Joint Broker) |
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Rupert Williams / Jeremy Woodgate | +44 (0) 20 3651 2910 |
Chairman's Report
In my 2015 address to shareholders I set out the industry back drop and also the Nostra Terra strategic goals. It is against these criteria upon which the Company's progress and achievements can be assessed.
The oil price continues to be challenging for the industry but there is a growing expectation that we are now at the bottom of the cycle and those companies which have survived and restructured will benefit from the improving macro environment.
As stated, our strategic focus is to build a business which, at an oil price of $30/ bbl, is cash neutral and reliant primarily on conventional oil. At oil prices above $30/ bbl Nostra Terra will then have the internally generated funds to invest in either organic growth within its producing oil field(s) or pursue new investment opportunities.
I am pleased to report that Nostra Terra has made significant progress in 2016 with the sale of Chisholm Trail and the acquisition of Pine Mills and Permian Basin assets. These acquisitions fit with the stated strategic goal and will provide the Company with predictable long term production. In addition we have also, in undertaking these acquisitions, become the Operator of the acquired assets with the benefit of control and adding experienced operational personnel to the Company. Nostra Terra is hopeful of adding similar assets to its portfolio in its area of operation upon which the Company can leverage this experience and skill set.
Nostra Terra is therefore very different, having evolved its portfolio to an oil production focused Operator, and a broader set of skill sets and experience to utilise. Nostra Terra has also directly addressed its costs keeping a tight rein on overheads and a capital structure that is not overburdened with debt. The current administration expenses reflect this once non-recurring costs are deducted.
It is this discipline, and it's successful application, that has enabled Nostra Terra to survive the prolonged low oil price environment and to emerge stronger with the very real prospect of adding further long term oil production assets to grow the Company.
In Egypt, similar to Nostra Terra's strategy in the USA, the Company will commit funds when there is a realistic chance of profitable production. I am pleased that significant progress has been made with our Egyptian partners, and hopeful, given the successful resolution of certain commercial matters, of positive news in the coming months.
I am pleased to welcome John Stafford as a non-executive director to Nostra Terra, who brings many years of astute technical experience and insight to the Company. I also want to take the time to thank Stephen Oakes for the role he played in the early development of the Company and wish him well in his retirement.
Finally, I would like to thank the Company's shareholders for their continued support. Nostra Terra has made significant progress in delivering its growth strategy, and the Board remains fully committed to securing new projects for the Company, and to create significant shareholder value over the medium term. The next time I write to you I hope to report further meaningful progress on the Company's strategy.
Ewen Ainsworth
Chairman
30 June 2017
Chief Executive Officer's Report
Our team at Nostra Terra feels very positively about the position we're in right now. The results for 2016 reflect the difficult position Nostra was in, however the months ahead of us should prove to be an exciting time. The hard work we put into 2016 is paying off and the Company's future looks bright. I am extremely pleased to report we are well on the way to achieving our primary goal for 2017, which is to become cash flow positive across all levels of the business. This is not an easy feat with lower oil prices, however, once we meet this target it will set us apart from our peers on AIM and will enable us to focus more on securing assets with even greater potential upside.
In the first 4 months of 2017 revenue from Pine Mills alone have surpassed 2016 total revenue. Since then our rate of production has increased further with net cashflow being a significant contributor to our corporate overheads. We have also consolidated our position at East Ghazalat, Egypt, and begun solving the issues there. We now own 50% of that asset and that revenue will be reflected in our 2017 financial report.
We have only been able to reach this point after making a number of difficult decisions during 2016 and taking decisive action throughout the year. Although the oil market began to exhibit signs of cyclical recovery, as prices rallied from below US$30/bbl to just over $50/bbl in the last month, we had to restructure Nostra Terra's business model. We controlled costs, significantly reduced borrowings, reorganised the Company's share capital and embarked on a new strategy to acquire larger working interests in producing oil assets, which Nostra would operate. As part of this restructuring, we have decided not to pursue any further exploration of White Buffalo. We are writing down the value and will look to divest the prospect as we continue focussing on producing oil assets, which are profitable in the current environment. This means we now, have control over how work is done and the pace of development of our assets in the United States.
United States
To deliver our new strategy we committed to repositioning our asset portfolio. We disposed of a number of non-core assets, including our interest in the Chisholm Trail Prospect for US$2.7million, a significant premium to the carrying book value of the asset as at 31 December 2015. In the context of the difficulties facing the oil market, the Chisholm Trail sale was particularly pleasing because it reflected Nostra Terra's ability to identify assets with clear potential for growth. In the same way as Chisholm Trail retained its value, I have high hopes that our recent acquisitions will create substantial shareholder value over the medium term. Our recent success already suggests we are on the road to achieving this.
The timing of the Chisholm Trail sale was ideal for Nostra Terra. It brought sizeable new funds into the Company, thus minimizing dilution to shareholders. We were able to reduce a large portion of Nostra Terra's borrowings and also to start acquiring new assets during November 2016. The first two purchases included our entry into the Permian Basin and the acquisition of the initial 80% Working Interest in the Pine Mills Oil field, Texas.
Pine Mills is a perfect fit for Nostra Terra. Our operations team is based in Texas and this was exactly the sort of asset we were looking for to start rebuilding the Company's balance sheet. Production at Pine Mills is profitable below US$30/bbl. We were sure our team was well placed to make meaningful improvements to the oil fields from the point we took over as operator and so far this has proven to be the case, with average monthly production at 118 barrels of oil per day in May 2017. We also managed to reduce average lifting costs to US$16.31/bbl, having cut costs and identified other operational efficiencies.
As a result of this, Pine Mills started making an immediate positive contribution to Nostra Terra's bottom line. By the end of December 2016, net cash inflows from Pine Mills covered over 60% of Nostra Terra's total cost base, including corporate overheads. This contribution has continued, and actually increased into 2017, up to and including the writing of this report. Our aim at Pine Mills is to continue to reduce overall lifting costs and to raise production to an average stabilised rate of 130-150 barrels of oil per day.
Over at the Permian Basin, Nostra Terra has initially taken a more low key approach. As we have repeatedly commented, we believe the current market for oil assets presents a major opportunity. During the downturn in US oil production, the Permian Basin was the only producing region in the US which continued to see growth. As of writing, Nostra Terra has made two acquisitions that have added multiple leases in Permian Basin assets while identifying a pipeline of further acquisition targets.
Although current production rates are very low across Nostra Terra's Permian assets, there is a great deal of potential for growth. Nostra Terra's working interests include a number of low-risk, drill-ready locations, which are relatively inexpensive to drill. All our Permian leases are Held By Production ("HBP"), meaning that existing production enforces the current leases so they won't expire. This allows Nostra Terra to drill these new wells at its own pace. This means we can focus our working capital on securing acreage across the Permian, while continuing to develop Pine Mills and waiting for general conditions to improve. Our proven undeveloped reserves that we already own are comparable in size to our proven developed reserves at Pine Mills.
Nostra Terra has additional small non-operated working interests and royalties in Harrison County Texas, Brazos County Texas, Ochiltree County Texas, Kingfisher County Oklahoma, and Baca County Colorado. These are non-core assets of the Company.
Egypt
In Egypt, the rate of progress at East Ghazalat is not what we would have preferred. As the junior partner in the Independent Resources Egypt Joint Venture ("IRE JV"), Nostra Terra has been restricted in terms of information received and what it has been able to announce. Clearly there have been issues within the asset and we are hopeful that we will reach a resolution to these in 2017.
Later in 2016 Nostra Terra took a more active role. First was to address the issues with the loan note from TransGlobe. Nostra Terra was instrumental in securing a significant step forward; namely the negotiation and settlement of this note. Thanks to this, in September 2016 we persuaded TransGlobe to accept a US$200,000 payment in full and final settlement on the outstanding US$2.5 million loan note, which was created as part of the original acquisition by the IRE JV of the 50% stake in East Ghazalat. Nostra Terra paid US$100,000 of this sum, which removed a liability from our balance sheet of approximately US$1.3million. This reduced the overall acquisition cost of the 50% in East Ghazalat to approximately US$1.2million, meaning Nostra Terra acquired just over 500,000 barrels of 2P Reserves for the equivalent of US$1.19 a barrel. As of writing, no further funds have been spent on East Ghazalat.
Second, we have now taken an active role and are in discussion with the operator and the Egyptian government regarding a potential solution. Although Nostra Terra was the junior partner in the IRE JV, we have gone to great lengths to ensure that we have healthy working relationships with all parties involved in East Ghazalat.
Third, in June 2017 we reached an agreement to acquire a further 25% interest in the East Ghazalat Concession. This was done on great terms that limit Nostra Terra's expenditure (low risk) until existing hurdles are overcome and production milestones achieved (high reward). Assuming all production targets are met, Nostra Terra will have acquired just over 1 million barrels of 2P Reserves for the equivalent of US$1.09 per barrel of oil.
Outlook
Since the end of 2016, Nostra Terra has continued to make excellent progress. Beyond the success we are having at Pine Mills, we made our second acquisition in the Permian basin and will look for new opportunities to expand in the area. Having acquired a further 25% interest in East Ghazalat Concession on great terms, we plan to continue to build on existing relationships allowing the asset to progress.
Nostra Terra also strengthened our board with the addition of John Stafford. John brings with him a wealth of technical experience. We have a robust pipeline of potential deals, including a number of larger assets. John's expertise will no doubt continue to play an important role in helping us conduct thorough due diligence and enhance operational plans, as we seek to take the next step forward with Nostra Terra.
Conclusion
To finish I would like to thank our shareholders. After a difficult few years, Nostra Terra has made demonstrable progress in transforming its business model. This has not yet been fully reflected in the current share price, but we remain convinced that the track we are on is leading us towards material appreciation in the Company's worth. I look forward to providing further updates as we continue to build a solid foundation and march towards becoming a cash flow positive business.
Matt Lofgran
Chief Executive Officer
30 June 2017
Consolidated Income Statement
for the year ended 31 December 2016
| Notes | 2016 £000 | 2015 £000 |
Revenue | 282 | 594 | |
Cost of sales |
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Production costs |
| (130) | (209) |
Abortive acquisition costs |
| (618) | - |
Well impairment |
| (1,855) | (571) |
Depletion, depreciation, amortisation |
| (445) | (1,129) |
Total cost of sales |
| (3,048) | (1,909) |
GROSS PROFIT/(LOSS) |
| (2,766) | (1,315) |
Share based payment |
| 154 | (27) |
Administrative expenses |
| (760) | (689) |
Share of results of joint venture | 14 | (162) | (157) |
OPERATING LOSS | 5 | (3,534) | (2,188) |
Finance expense | 4 | (324) | (122) |
Other income | 6 | 967 | - |
LOSS BEFORE TAX |
| (2,891) | (2,310) |
Tax (expense) recovery | 7 | - | - |
LOSS FOR THE YEAR |
| (2,891) | (2,310) |
Attributable to: |
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Owners of the company |
| (2,891) | (2,310) |
Earnings per share expressed in pence per share: |
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Continued operations |
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Basic and diluted (pence) | 9 | (3.416) | (2.730) |
Consolidated Statement of Comprehensive Income
for the year ended 31 December 2016
| 2016 £000 | 2015 £000 |
Loss for the year | (2,891) | (2,310) |
Other comprehensive income: | ||
Currency translation differences | 262 | 111 |
Total comprehensive income for the year | (2,629) | (2,199) |
Total comprehensive income attributable to: | ||
Owners of the company | (2,629) | (2,199) |
Consolidated Statement of Changes in Equity
for the year ended 31 December 2016
| Share capital £000 | Deferred shares £000 | Share premium £000 | Share options reserve £000 | Translation reserves £000 | Retained losses £000 | Total £000 |
As at 1 January 2015 | 3,360 | - | 11,060 | 138 | (175) | (10,142) | 4,241 |
Share issue costs | - | - | - | - | - | - | - |
Foreign exchange translation | - | - | - | - | 111 | - | 111 |
Loss after tax for the year | - | - | - | - | - | (2,310) | (2,310) |
Share based payments | - | - | - | 27 | - | - | 27 |
As at 31 December 2015 | 3,360 | - | 11,060 | 165 | (64) | (12,452) | 2,069 |
Shares issued | 764 | - | 262 | - | - | - | 1,026 |
Consolidation and subdivision of shares | (4,028) | 4,028 | - | - | - | - | - |
Share issue costs | - | - | - | - | - | - | - |
Foreign exchange translation | - | - | - | - | 262 | - | 262 |
Loss after tax for the year | - | - | - | - | - | (2,891) | (2,891) |
Share based payments | - | - | - | (154) | - | - | (154) |
As at 31 December 2016 | 96 | 4,028 | 11,322 | 11 | 198 | (15,343) | 312 |
Share capital is the amount subscribed for shares at nominal value.
Deferred shares represent an additional class of shares created during the year. These shares do not have any rights to the assets of the company until all common and preferred shareholders are paid.
Share premium represents the excess of the amount subscribed for share capital over the nominal value of those shares net of share issue expenses. Share issue expenses in the year comprise costs incurred in respect of the issue of new shares on the London Stock Exchange's AIM market.
The share options reserve is a compensation scheme for senior executives of the group whereby senior executives may be granted options to purchase ordinary shares in the company.
Translation reserves arise on consolidation of the translation of the subsidiary's statement of financial position at the closing rate of exchange and its income statement at the average rate.
Retained loss represents the cumulative losses of the group attributable to owners of the company.
Company Statement of Changes in Equity
for the year ended 31 December 2016
| Share capital £000 | Deferred shares £000 | Share premium £000 | Share options reserve £000 | Retained losses £000 | Total £000 |
As at 1 January 2015 | 3,360 | - | 11,060 | 138 | (9,928) | 4,630 |
Share issue costs | - | - | - | - | - | - |
Loss after tax for the year | - | - | - | - | (1,650) | (1,650) |
Share based payments | - | - | - | 27 | - | 27 |
As at 31 December 2015 | 3,360 | - | 11,060 | 165 | (11,578) | 3,007 |
Shares issued | 764 | - | 262 | - | - | 1,026 |
Consolidation and subdivision of shares | (4,028) | 4,028 | - | - | - | - |
Share issue costs | - | - | - | - | - | - |
Loss after tax for the year | - | - | - | - | (4,265) | (4,265) |
Share based payments | - | - | - | (154) | - | (154) |
As at 31 December 2016 | 96 | 4,028 | 11,322 | 11 | (15,843) | (386) |
Share capital is the amount subscribed for shares at nominal value.
Deferred shares represent an additional class of shares created during the year. These shares do not have any rights to the assets of the company until all common and preferred shareholders are paid.
Share premium represents the excess of the amount subscribed for share capital over the nominal value of those shares net of share issue expenses. Share issue expenses in the year comprise costs incurred in respect of the issue of new shares on the London Stock Exchange's AIM market.
The share options reserve is a compensation scheme for senior executives of the group whereby senior executives may be granted options to purchase ordinary shares in the company.
Retained loss represents the cumulative losses of the company attributable to owners of the company.
Consolidated Statement of Financial Position
31 December 2016
| Notes | 2016 £000 | 2015 £000 |
ASSETS |
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NON-CURRENT ASSETS |
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Goodwill | 10 | - | - |
Other intangibles | 11 | 1,036 | 3,127 |
Property, plant, and equipment |
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- oil and gas assets | 12 | 202 | 464 |
Other assets |
| 41 | - |
Investment in joint venture | 14 | 1 | 190 |
| 1,280 | 3,781 | |
CURRENT ASSETS |
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Trade and other receivables | 15 | 439 | 171 |
Deposits and prepayments |
| - | 5 |
Cash and cash equivalents | 16 | 172 | 144 |
| 611 | 320 | |
LIABILITIES |
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CURRENT LIABILITIES |
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Trade and other payables | 17 | 791 | 373 |
Borrowings | 18 | 788 | 1,308 |
| 1,579 | 1,681 | |
NET CURRENT LIABILITIES |
| (968) | (1,361) |
NON-CURRENT LIABILITIES |
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Other loans | 18 | - | 351 |
NET ASSETS |
| 312 | 2,069 |
EQUITY AND RESERVES |
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Share capital | 19 | 4,124 | 3,360 |
Share premium | 20 | 11,322 | 11,060 |
Translation reserves | 20 | 198 | (64) |
Share option reserve | 24 | 11 | 165 |
Retained losses | 20 | (15,343) | (12,452) |
| 312 | 2,069 |
The financial statements were approved and authorised for issue by the Board of Directors on 30 June 2017 and were signed on its behalf by:
M B Lofgran
Director
Company registered number: 05338258
Company Statement of Financial Position
31 December 2016
| Notes | 2016 £000 | 2015 £000 |
ASSETS |
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NON-CURRENT ASSETS |
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Fixed asset investments | 13 | 1 | 2,836 |
Investment in joint venture | 14 | 1 | 190 |
| 2 | 3,026 | |
CURRENT ASSETS |
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Trade and other receivables | 15 | 48 | 14 |
Cash and cash equivalents | 16 | 42 | 69 |
| 90 | 83 | |
LIABILITIES |
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CURRENT LIABILITIES |
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Trade and other payables | 17 | 248 | 102 |
Borrowings | 18 | 230 | - |
| 478 | 102 | |
NET CURRENT LIABILITIES |
| (388) | (24) |
NON-CURRENT LIABILITIES |
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Borrowings | 18 | - | - |
NET LIABILITIES/ASSETS |
| (386) | 3,007 |
EQUITY AND RESERVES |
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Share capital | 19 | 4,124 | 3,360 |
Share premium | 20 | 11,322 | 11,060 |
Share option reserve | 24 | 11 | 165 |
Retained losses | 20 | (15,843) | (11,578) |
| (386) | 3,007 |
The financial statements were approved and authorised for issue by the Board of Directors on 30 June 2017 and were signed on its behalf by:
M B Lofgran
Director
Company registered number: 05338258
Consolidated Statement of Cash Flows
for the year ended 31 December 2016
| Notes | 2016 £000 | 2015 £000 |
Cash flows from operating activities |
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Cash generated/(consumed) by operations | 1 | (567) | 57 |
Interest paid |
| (175) | (115) |
Cash generated/(consumed) by operations |
| (742) | (58) |
Cash flows from investing activities |
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Purchase of intangibles - new oil properties |
| (987) | (276) |
Sale/(purchases) of plant and equipment |
| (156) | (25) |
Proceeds from sale of assets |
| 2,431 | - |
Purchase of equity in joint venture investment |
| - | (347) |
Net cash from investing activities |
| 1,288 | (648) |
Cash flows from financing activities |
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Proceeds on issue of shares |
| 600 | - |
New borrowing |
| 1,286 | 1,156 |
Repayment of borrowings |
| (2,850) | (1,162) |
Net cash from financing activities |
| (964) | (6) |
Effect of exchange rate changes on cash and cash equivalents |
| 446 | (5) |
Increase/(decrease) in cash and cash equivalents |
| 28 | (717) |
Cash and cash equivalents at the beginning of the year | 16 | 144 | 861 |
Cash and cash equivalents at the end of the year |
| 172 | 144 |
Represented by: |
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Cash at bank | 16 | 172 | 144 |
Note to the Consolidated Statement of Cash Flows
for the year ended 31 December 2016
1. RECONCILIATION OF OPERATING LOSS TO NET CASH GENERATED FROM OPERATIONS
| 2016 £000 | 2015 £000 |
Operating loss for the year | (3,534) | (2,188) |
Adjustments for: | ||
Depreciation of property, plant, and equipment | 93 | 103 |
Amortisation of intangibles | 352 | 1,026 |
Well impairment | 1,855 | 571 |
Share based payments | (154) | 27 |
Other non-cash movements | 6 | - |
Abortive acquisition costs | 426 | - |
Share of results from joint venture | 162 | 157 |
Operating cash flows before movements in working capital | (794) | (304) |
(Decrease)/increase in finance charge provision | 99 | (15) |
(Increase)/decrease in receivables | (268) | 310 |
(Increase)/decrease in other assets | (41) | - |
(Decrease)/increase in payables | 418 | 34 |
(Increase)/decrease in deposits and prepayments | 5 | - |
(Decrease)/increase in translation reserves | 262 | - |
Borrowings written off | (248) | 32 |
Cash generated/(consumed) by operations | (567) | 57 |
Company Statement of Cash Flows
for the year ended 31 December 2016
| 2016 £000 | 2015 £000 |
Cash flows from operating activities |
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Cash generated/(consumed) by operations | (276) | (161) |
Interest paid | - | - |
Cash generated/(consumed) by operations | (276) | (161) |
Cash flows from investing activities |
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Funding provided to joint venture | (116) | - |
Net cash from investing activities | (116) | - |
Cash flows from financing activities |
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Proceeds on issue of shares | 600 | - |
New borrowing | 230 | - |
Inter group loan (advances) | (465) | (322) |
Net cash from financing activities | 365 | (322) |
Increase/(decrease) in cash and cash equivalents | (27) | (483) |
Cash and cash equivalents at the beginning of the year | 69 | 552 |
Cash and cash equivalents at the end of the year | 42 | 69 |
Represented by: |
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Cash at bank | 42 | 69 |
Note to the Company Statement of Cash Flows
for the year ended 31 December 2016
1. RECONCILIATION OF OPERATING LOSS TO NET CASH GENERATED FROM OPERATIONS
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| 2016 £000 | 2015 £000 |
Operating loss for the year |
| (783) | (1,650) |
Adjustments for: |
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Management fees |
| (24) | - |
Abortive acquisition costs |
| 426 | - |
Impairment of cost of investments |
| - | 1,277 |
Share of results of joint venture |
| 162 | (157) |
Share based payment |
| (154) | 27 |
Loss on dissolution of subsidiary |
| 40 |
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Foreign exchange loss/(gain) non-cash items |
| (15) | 300 |
Operating cash flows before movements in working capital |
| (348) | (203) |
(Increase)/decrease in receivables |
| (34) | 5 |
(Decrease)/increase in payables |
| 106 | 37 |
Cash generated (consumed) by operations |
| (276) | (161) |
Note to the Company Statement of Cash Flows
for the year ended 31 December 2016
1. SEGMENTAL ANALYSIS
| US mid- continent 2016 £000 | Head office 2016 £000 | Total 2016 £000 |
Segment results - 2016 |
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Revenue | 282 | - | 282 |
Operating loss before depletion, depreciation, amortisation, well impairment share-based payment charges and restructuring costs: | (451) | (775) | (1,226) |
Depreciation of tangibles | (93) | - | (93) |
Amortization of intangibles | (352) | - | (352) |
Well impairment | (1,855) | - | (1,855) |
Share of results of joint venture | - | (162) | (162) |
Share based payment | - | 154 | 154 |
Operating loss | (2,751) | (783) | (3,534) |
Realised exchange (loss)/gain | - | - | - |
Other income | 967 | - | 967 |
Gain from extinguishment of debt | - | - | - |
Finance expense | (181) | (143) | (324) |
Tax | - | - | - |
Loss before taxation | (1,965) | (926) | (2,891) |
Segment assets |
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Property, plant and equipment | 202 | - | 202 |
Intangible assets | 1,036 | - | 1,036 |
Cash and cash equivalents | 130 | 42 | 172 |
Trade and other receivables | 391 | 48 | 439 |
Investment in joint venture | - | 1 | 1 |
Other assets | 41 | - | 41 |
1,800 | 91 | 1,891 |
| US mid- continent 2015 £000 | Head office 2015 £000 | Total 2015 £000 |
Segment results - 2015 |
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Revenue | 594 | - | 594 |
Operating loss before depletion, depreciation, amortisation, well impairment share-based payment charges and restructuring costs: | (181) | (123) | (304) |
Depreciation of tangibles | (103) | - | (103) |
Amortization of intangibles | (1,026) | - | (1,026) |
Well impairment | (571) | - | (571) |
Share of results of joint venture | - | (157) | (157) |
Share based payment | - | (27) | (27) |
Operating loss | (1,881) | (307) | (2,188) |
Realised exchange (loss)/gain | - | - | - |
Other income | - | - | - |
Gain from extinguishment of debt | - | - | - |
Finance expense | - | - | - |
Tax | (122) | - | (122) |
Gain (loss) before taxation | (2,003) | (307) | (2,310) |
Segment assets |
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Property, plant and equipment | 464 | - | 464 |
Intangible assets | 3,127 | - | 3,127 |
Cash and cash equivalents | 75 | 69 | 144 |
Trade and other receivables | - | - | - |
Investment in joint venture | - | - | - |
Other assets | 352 | 14 | 366 |
4,018 | 83 | 4,101 |
2. EMPLOYEES AND DIRECTORS
| 2016 £000 | 2015 £000 |
Directors' fees | 64 | 32 |
Directors' remuneration | 108 | 226 |
Social security costs | 6 | 13 |
178 | 271 |
The average monthly number of employees (including directors) during the year was as follows:
| 2016 Number | 2015 Number |
Directors | 3 | 4 |
3 | 4 |
3. OPERATING LOSS FOR THE YEAR
The operating loss for the years ended 31 December is stated after charging/(crediting):
2016 £000 | 2015 £000 | |
Auditors' remuneration (company £19,750 - 2015: £21,000) | 20 | 21 |
Depreciation of property, plant and equipment | 93 | 103 |
Amortisation of intangibles | 352 | 1,026 |
Well impairment | 1,855 | - |
Foreign exchange differences | - | - |
Loss on the disposal of exploration and evaluation and oil and gas assets | - | - |
The analysis of administrative expenses in the consolidated income statement by nature of expense:
| 2016 £000 | 2015 £000 |
Directors' remuneration | 108 | 226 |
Social security costs | 6 | 13 |
Directors' fees | 64 | 32 |
Travelling and entertaining | 36 | 55 |
Accountancy fees | 37 | 55 |
Legal and professional fees | 352 | 214 |
Auditors' remuneration | 20 | 21 |
Foreign exchange difference | - | (6) |
Other expenses | 137 | 79 |
760 | 689 |
4. EARNINGS PER SHARE
The calculation of earnings per ordinary share is based on earnings after tax and the weighted average number of ordinary shares in issue during the year. For diluted earnings per share, the weighted average number of ordinary shares in issue is adjusted to assume conversion of all dilutive potential ordinary shares. The group had two classes of dilutive potential ordinary shares, being those share options granted to employees and suppliers where the exercise price is less than the average market price of the group's ordinary shares during the year, and warrants granted to directors and one former adviser.
Details of the adjusted earnings per share are set out below:
| 2016 | 2015 |
EPS - loss |
|
|
Loss attributable to ordinary shareholders (£000) | (2,891) | (2,310) |
Weighted average number of shares | 84,623,219 | 84,623,219 |
Continued operations: |
|
|
Basic and diluted EPS - loss (pence) | (3.416) | (2.730) |
The diluted loss per share is the same as the basic loss per share as the loss for the year has an antidilutive effect.
| 2016 £000 | 2015 £000 |
Gross profit before depreciation, depletion, amortisation and well impairment | (466) | 385 |
EPS on gross profit before depletion, depreciation, amortisation and well impairment (pence) | (0.551) | 0.455 |
| 2016 £000 | 2015 £000 |
Reconciliation from gross loss to gross profit before depletion, depreciation and amortisation |
|
|
Gross (loss)/profit | (2,766) | (1,315) |
Add back: |
|
|
Depletion, depreciation and amortisation | 445 | 1,129 |
Well impairment | 1,855 | 571 |
Gross profit before depreciation, depletion and amortization | (466) | 385 |
5. Availability of Annual Report and Notice of AGM
The Company's AGM will be held at 11:00am on 28 July 2017 at Jeffreys Henry LLP at Finsgate, 5-7 Cranwood Street, London EC1V 9EE, at which resolution 1 (laying of the accounts before the meeting) was adjourned. Notice of the adjourned Annual General Meeting to approve the 2016 Annual Report and Accounts is being posted to Shareholders today, together with a copy of the full report and accounts. A copy of the 2016 Annual Report and Accounts and Notice of the AGM is available to download from Nostra Terra's website at www.ntog.co.uk.
This information is provided by RNS
The company news service from the London Stock Exchange