14 Mar 2016 07:00
RED EMPEROR RESOURCES NL - Half-yearly ReportRED EMPEROR RESOURCES NL - Half-yearly Report
PR Newswire
London, March 14
14 March 2016
Red Emperor Resources NL
Half Year Report for the Period Ending 31 December 2015
Please see below extracts from the Company's Half Year Report for the period ended 31 December 2015, being the:
Directors' Report Consolidated Statement of Comprehensive Income Consolidated Statement of Financial Position Consolidated Statement of Cash FlowsA copy of the entire Half Year Report is available on the Company's website - www.redemperorresources.com
For further information please visit www.redemperorresources.com or contact:
Red Emperor
Greg Bandy +61 8 9212 0102
Grant Thornton UK LLP
Philip Secrett/Jen Clarke/Jamie Barklem +44 20 7383 5100
Directors’ Report
The Directors present their report for Red Emperor Resources NL (“Red Emperor” or “the Company”) and its subsidiaries (“the Group”) for the half year ended 31 December 2015.
Directors
The persons who were directors of Red Emperor Resources NL during the half year and up to the date of this report are:
Mr. Greg Bandy (Managing Director) Mr. Jason Bontempo (Non-Executive Director) Mr. Nathan Rayner (Non-Executive Director)Review of Operations for the Half Year ended 31 December 2015
Philippines (SC 55)
Red Emperor advised during the period that its Joint Venture partner and Operator, Otto Energy Limited (ASX: OEL) requested that a two-year moratorium be granted by the Philippines Department of Energy over SC 55. The JV fulfilled the work obligation under the current exploration Sub-Phase by drilling the Hawkeye-1 exploratory well in August 2015. Although the well did not encounter gas in commercial quantities, it proved the presence of an active petroleum system within the Service Contract area, which also hosts several other leads, including the “Cinco Prospect”. The consortium intends to undertake further technical studies during the moratorium period, including a Quantitative Interpretation (QI) Study. QI is a relatively recent geophysical technique that is designed to gain a better understanding of existing and potential petroleum reservoirs. The Joint Venture expects a response from the Department of Energy with respect to its moratorium request in March 2016.
Subsequent to the end of the period, Red Emperor was advised by Otto Energy of its intention to exit the Joint Venture as part of its strategy to focus on its North American assets. As a result, Red Emperor would have the option to either maintain its 15% participating interest in SC 55 or be assigned a percentage of Otto Energy’s interest on a pro-rata basis. In this instance, Red Emperor’s participating interest could be increased by up to 22.5% to 37.5%. Red Emperor is considering its options and will advise the market accordingly.
Georgia
Red Emperor, a 20% shareholder of Strait Oil and Gas Limited (Strait), a Gibraltarian company with a valid Production Sharing Contract (PSC) across Block VIa in the Republic of Georgia, continues to be advised of ongoing negotiations with a potential purchaser of the PSC. Red Emperor understands that delays in reaching agreement with the potential purchaser have been due to volatility in the oil and gas price and political instability in the region.
Corporate
In July 2015, the Company, through its London broker, Brandon Hill Capital, and its Australian broker, 708 Capital, placed 65,750,000 new ordinary shares at 4 pence (A$0.08) per share to raise £2.63 million (A$5.26 million) before expenses. Proceeds from the fundraise and existing cash resources were used to fund the drilling activities in the Philippines.
The Company also issued 4,320,000 unlisted options, exercisable at $0.08 each on or before 2 July 2018 as part consideration to advisors of the Company for capital raising fees associated with the July 2015 Share Placement.
Events subsequent to Reporting Date
There have been no significant events subsequent to the half-year to the date of this report.
Auditor’s Independence Declaration
Section 307C of the Corporations Act 2001 requires our auditors, to provide the Directors of the Company with an Independence Declaration in relation to the review of the half-year financial report. This Independence Declaration is set out on page 3 and forms part of this Directors’ report for the half-year ended 31 December 2015.
This report is signed in accordance with a resolution of the Board of Directors made pursuant to section 306(3) of the Corporations Act 2001.
Greg Bandy
Managing Director
Perth, Western Australia,
14 March 2016
Consolidated Statement of Profit or Loss and Other Comprehensive Income
for the half-year ended 31 December 2015
| Note | 31 December 2015 $ | 31 December 2014 $ | |
| Continuing Operations | |||
| Interest received | 125,806 | 182,854 | |
| Employee and director benefits expense | (132,975) | (139,749) | |
| Professional and Consultants | (340,633) | (60,000) | |
| ASX and AIM and share registry fees | (64,138) | (103,681) | |
| Impairment expense | 6 | (7,691,458) | (15,203,814) |
| Gain on derivative liability | - | 783 | |
| Unrealised gain on investment | - | 150,000 | |
| Unrealised FX (loss)/gain | (309,400) | 2,006 | |
| Realised FX gain | 28,341 | - | |
| Other expenses | (105,566) | (172,869) | |
| Share based payment expense | (23,267) | - | |
| Loss before income tax | (8,513,290) | (15,344,470) | |
| Income tax expense | - | - | |
| Loss after income tax for the period | (8,513,290) | (15,344,470) | |
| Other comprehensive profit/( loss) | |||
| Items that may be reclassified to profit or loss | |||
| Other comprehensive profit/(loss) | 13,753 | (243) | |
| Other comprehensive income/(loss) for the period net of tax | 13,753 | (243) | |
| Total comprehensive loss for the period | (8,499,537) | (15,344,713) | |
| Loss per share | |||
| Basic loss per share (cents) | (2.00) | (5.76) | |
| Diluted loss per share (cents) | N/A | N/A | |
| The above Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes. | |||
Consolidated Statement of Financial Position
as at 31 December 2015
| Note | 31 December 2015 $ | 30 June 2015 $ | |
| Current Assets | |||
| Cash and cash equivalents | 12,251,254 | 12,494,427 | |
| Trade and other receivables | 4 | 29,347 | 618,316 |
| Assets held for sale | 5 | - | 3,000,000 |
| Total Current Assets | 12,280,601 | 16,112,743 | |
| Non-Current Assets | |||
| Financial assets at fair value through profit or loss | 400 | 400 | |
| Exploration and evaluation expenditure | 6 | - | - |
| Total Non-Current Assets | 400 | 400 | |
| Total Assets | 12,281,001 | 16,113,143 | |
| Current Liabilities | |||
| Trade and other payables | 7 | 88,163 | 819,254 |
| Total Current Liabilities | 88,163 | 819,254 | |
| Total Liabilities | 88,163 | 819,254 | |
| Net Assets | 12,192,838 | 15,293,889 | |
| Equity | |||
| Issued capital | 8 | 57,329,505 | 52,167,148 |
| Reserves | 9 | 4,089,026 | 3,839,144 |
| Accumulated losses | (49,225,693) | (40,712,403) | |
| Total Equity | 12,192,838 | 15,293,889 | |
| The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes. | |||
Consolidated Statement of Cash Flows
for the half-year ended 31 December 2015
| 31 December 2015 $ | 31 December 2014 $ | ||
| Cash flows from operating activities | |||
| Payments to suppliers and employees | (597,910) | (522,072) | |
| Interest received | 125,806 | 182,854 | |
| Other receipts | 28,341 | - | |
| Net cash used in operating activities | (443,763) | (339,218) | |
| Cash flows from investing activities | |||
| Payments for exploration and evaluation | (4,701,812) | (214,966) | |
| Payments for purchase of equities | - | (182,299) | |
| Payments for investment in associate | - | (59,140) | |
| Net cash used in investing activities | (4,701,812) | (456,405) | |
| Cash flows from financing activities | |||
| Proceeds from issue of shares | 5,600,300 | - | |
| Payment of share issue costs | (388,498) | - | |
| Net cash provided by financing activities | 5,211,802 | - | |
| Net increase/(decrease) in cash and cash equivalents | 66,227 | (795,623) | |
| Cash and cash equivalents at beginning of the period | 12,494,427 | 10,321,349 | |
| Effects of exchange rate changes on cash and cash equivalents | (309,400) | - | |
| Cash and cash equivalents at the end of the period | 12,251,254 | 9,525,726 | |
| The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes. | |||
END