SRO.L Regulatory News (SRO)

1 Apr 2008 12:04

Spitfire Oil Limited01 April 2008 Interim Statement For the six months ended 31 December 2007 Spitfire Oil Limited ("Spitfire" or the "Company") is pleased to publish itsinterim results for the six months ended 31 December 2007. Highlights - Resource drilling of the lignite deposit commenced and large diameter core samples were acquired; - Aerial surveys were completed for Electromagnetic (EM) and topographical data; - Laboratory research commenced into Spitfire Oil's proprietary llow temperature catalytic pyrolysis technique. Lignite-to-Value; - The Project was referred to State and National environmental regulators for determination of the appropriate level of environmental assessment. Field surveys for flora and fauna species were initiated. Review of Operations Your directors present their report on the consolidated entity consisting ofSpitfire Oil Limited and the entities it controlled at the end of, or during,the half-year ended 31 December 2007. The following persons were directors of Spitfire Oil Limited during the whole ofthe half year and up to the date of this report: Mr. Mladen Ninkov Non-Executive Chairman Mr. Andrew Woskett Chief Executive Officer (CEO) Mr. Malcolm Randall Non-Executive Director Mr. Rupert Crowe Non-Executive Director Mr. Roger Goodwin Non-Executive Director Spitfire Oil Limited was admitted to the Alternative Investment market (AIM) on18 July 2007 under the market code SRO. The initial public offer for SpitfireOil raised £10 million (before costs of the issue) thereby enabling thesubsidiary company Spitfire Oil Pty Ltd. (SOPL) to commit to and to satisfysignificant expenditure in a number of operational areas. Resource Definition and Sampling The first exploration drilling investigation of the lignite deposit since 2002was completed in December 2007. A series of 4 PQ sized diamond core samples weretaken from the full lignite seam section, including a 21m thick seamintersection. The samples were subjected to a range of laboratory tests for coalchemical analysis and quality assessment. The first geophysical programme conducted on the tenements was completed late in2007. This comprised both airborne EM data manipulation using the SkyTemTMsystem and downhole geophysical interrogation of cased drill holes through thefull section of the lignite seam. 1000 line kilometres of aerial EM data werecollected and all 2007 drill holes were wireline logged for the full suite of EMtools (such as resistivity and gamma readings). Data acquisition, integration,and compilation was performed by external consultants, resulting in a fullyvalidated database of electromagnetic highs/lows and output of high resolutionimagery depicting subsurface sedimentary contours. An aerial survey was flown in December 2007 using the LIDAR system. A remotedigital terrain model (DTM) was completed, covering an area of 105 squarekilometers and providing accurate elevation datapoints and orthoimagery, forrefinement of the mining model. Technology Development A contract with Curtin University of Technology in Perth, Western Australia, forthe supply of Research and Development Services was activated. CurtinUniversity's Centre for Fuels and Energy (CFE) will investigate and optimiseSpitfire Oil's Lignite-to-Value conceptualised process for conversion of ligniteinto fuel oil products. The ultimate design approach for lignite conversion iscalled L2V. Lignite-to-Value represents a low temperature catalytic pyrolysis method suitedto the particular chemical characteristics of the Salmon Gums lignite, inparticular its variable compositions of sulphur, ash, moisture and salt. Receipt of core samples enabled CFE to start work on its first and secondcontractual deliverables and CFE's report into the first, lignitecharacterisation, was submitted. This provided valuable new understanding of thechemistry of the lignite and clarified the design approach for the pryloysisreactor, a laboratory scale vessel in which L2V conversions can be simulated andrefined. The first stage of the pyrolysis reactor, with a design throughput of15kg per hour batch basis, was built and cold commissioned. Environmental Assessment Project Referral documents were lodged with the Western Australian EnvironmentalProtection Authority (EPA) and the Australian Department of Environment. The EPAdetermined that the required level of environmental assessment applicable tothis project is the Environmental Review and Management Plan. The environmentalassessment process was initiated. This report is made in accordance with a resolution of Directors. Mr. Andrew WoskettChief Executive Officer & DirectorSpitfire Oil LimitedDated: 31st Day of March 2008. Chairman's Statement "This report contains the inaugural results for Spitfire Oil Limited, followingits successful admission to AIM. Spitfire Oil has made a strong start towardsdevelopment of its coal to liquids technology and application of that to its100% owned lignite deposit in Western Australia." Mr. Mladen NinkovChairmanSpitfire Oil Limited (AIM : SRO)Dated: 31st Day of March 2008. Further Information Mladen Ninkov - Chairman +44(0)20 7629 7774Andrew Woskett - Chief Executive Officer & Director +61 1300 551 244Roger Goodwin - Director +44(0)20 7629 7774 Spitfire Oil Limited's shares are quoted on the Alternative Investment Market(AIM) of the London Stock Exchange symbol SFO. The Company's news releases are available on the Company's web site:www.spitfireoil.com CONSOLIDATED INCOME STATEMENTFOR THE HALF YEAR ENDED 31 DECEMBER 2007 Consolidated Entity 31 December 2007 31 December 2006 $ $Revenue Non-Operational Revenue 740,059 - ExpensesMining & Exploration (R&D) (438,849) -Promotion & investor relations 16,563 -Impairment of Goodwill (1,120,096) -Corporate Expenses 116,113 -Other Expenses (608,931) - PROFIT/(LOSS) BEFORE INCOME TAX (1,295,142) - INCOME TAX EXPENSE - - PROFIT/(LOSS) FOR THE PERIOD (1,295,142) - Cents Cents Loss per share for loss from attributable to the ordinaryequity holders of the company: Basic loss per share (3.04) -Diluted loss per share (3.04) - The accompanying noted form part of these financial statements. CONSOLIDATED INCOME STATEMENTFOR THE HALF YEAR ENDED 31 DECEMBER 2007 Consolidated Entity 31 December 2007 30 June 2007 $ $AssetsCurrent Assets -Cash and cash equivalents 18,709,664 -Trade and other receivables 76,963 -Other 56,135 - Total Current Assets 18,842,761 - Non-Current AssetsOther Financial assets 10,000 -Property, plant and equipments 8,412 -Exploration and evaluation expenditure 883,346 - Total Non-Current Assets 901,758 - TOTAL ASSETS 19,744,520 - LIABILITIESCurrent LiabilitiesTrade and other payables 207,900 - Total Current Liabilities 207,900 '- TOTAL LIABILITIES 207,900 - NET ASSETS 19,536,620 - EQUITYIssued capital 20,570,009 -Reserves 261,753 -Accumulated Losses (1,295,142) - TOTAL EQUITY 19,536,620 The accompanying notes form part of these financial statements. CONSOLIDATED BALANCE SHEETAS AT 31 DECEMBER 2007 Consolidated Entity Issued Capital Reserves Accumulated Losses Total $ $ $ $ Shares issued net of costs 20,570,009 - - 20,570,009Translation of Foreign currency - 261,753 - 261,753Net (Loss) for the period - - (1,295,142) (1,295,142)Balance at 31 December 2007 20,570,009 261,753 (1,295,142) 19,536,620 The accompanying notes form part of these financial statements CONSOLIDATED CASH FLOW STATEMENTFOR THE HALF YEAR ENDED 31 DECEMBER 2007 Consolidated Entity 31 December 2007 31 December 2006 $ $ CASH FLOWS RELATED TO OPERATING ACTIVITIES Payments to suppliers and employees (3,980,202) -Interest received 457,600 -Income Tax Returns 277,788 - NET OPERATING CASH FLOWS (3,244,814) - CASH FLOWS RELATED TO INVESTING ACTIVITIESPayment for purchases of plant and equipment (8,913) -Asset revaluation under IFRS & transition period (893,346) - NET INVESTING CASH FLOWS (902,259) - CASH FLOWS RELATED TO FINANCING ACTIVITIESProceeds from issues of securities 22,939,791 -Capital raising costs (344,807) - NET FINANCING CASH FLOWS 22,594,984 - NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS 18,447,911 - Cash and cash equivalents at the beginning of the half - -year Effects of exchange rate changes on cash and cashequivalents 261,753 - CASH AND CASH EQUIVALENTS AT THE END OF THE HALF YEAR 18,709,664 - The accompanying notes form part of these financial statements NOTES TO THE FINANCIAL STATEMENTS Note 1 - Basis of Preparation The general purpose financial report for the interim half year reporting periodended 31 December 2007 has been prepared in accordance with the requirements ofInternational Accounting Standard IAS34: Interim Financial Reporting. This half year financial report does not include all notes of the type normallyincluded in an annual financial report and therefore cannot be expected toprovide as full an understanding of the financial performance, financialposition and financing and investing activities of the entity as the fullfinancial report. The accounting policies adopted are consistent with the Admission DocumentFinancial Reports at the time of Spitfire Oil Limited's admission to AIM. Nocomparatives have been presented in this financial report as the parent entity,Spitfire Oil Limited, a Bermuda company, was established on 2 July 2007.Spitfire Oil Limited listed on AIM on 18 July 2007. This half-year report has been prepared on an accruals basis and is based onhistorical costs modified by the revaluation of selected non-current assets,financial assets and financial liabilities for which the fair value basis ofaccounting has been applied. All amounts stated in this interim financial report are represented inAustralian Dollars (AUD) unless otherwise stated. Note 2 - Dividends The Company did not declare any dividends in the half year ended 31 December2007. Spitfire Oil Limited (AIM: SRO) Note 3 - Contingent Liabilities and Assets There has been no change in contingent liabilities and assets since the lastannual reporting date. Note 4 - Issued Capital 31 December 2007 30 June 2007 No $ No $Issued and Paid up CapitalFully Paid Ordinary Shares 43,350,000 20,570,009 - -Options over Fully Paid Ordinary 3,500,000 - - -Shares Total Issued Capital 20,570,009 - Note 5 - Events Subsequent to Reporting Date No matters or circumstances have arisen since the end of the reporting period,not otherwise disclosed in this report, which significantly affected or maysignificantly affect the operations of the economic entity, the result of thoseoperations or the state of affairs of the economic entity in subsequentfinancial years. DIRECTORS DECLARATION The Directors declare that are set out herein: 1. The financial statements and notes: a. comply with International Accounting Standard IAS34: Interim FinancialReporting; and b. give a true and fair view of the economic entity's financial position as at31 December 2007 and of its performance for the half year ended on that date. 2. In the Directors' opinion there are reasonable grounds to believe that theCompany will be able to pay its debts as and when they become due and payable. This declaration is made in accordance with a resolution of the Directors. Mr. Roger GoodwinDirectorSpitfire Oil Limited This information is provided by RNS The company news service from the London Stock Exchange