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22 Aug 2011 07:03
22 August 2011
SIRIUS PETROLEUM PLC
("Sirius" or the "Company")
Interim Results for the six month period ended 30 June 2011
Sirius (AIM:SRSP), the oil and gas exploration and development company announces its interim results for the six months ended 30 June 2011.
Summary
·; Significant progress made on potential oil and gas assets acquisitions
·; Development of trading business - completed sale of first cargo of Fuel Oil since the period end
·; Strengthened board with appointment of oil & gas specialist Ed Johnson as Commercial Director
Enquiries:
Sirius Petroleum plc Mike Hirschfield
| +44 (0) 20 7451 9800 |
Strand Hanson Limited (Nominated Adviser and Broker) James Harris / James Spinney
| +44 (0) 20 7409 3494 |
Gable Communications John Bick / Justine James | +44 (0) 20 7193 7463 |
Chairman's Statement
I am pleased to present my first report as Chairman of Sirius, covering the six month period to 30 June 2011. This has been a period of significant progress on both the assessment of potential oil and gas asset acquisitions and the development of an oil trading business. We have also strengthened the board of directors (the "Board") through the appointment of Ed Johnson and I am delighted to welcome Ed to the Board. Ed joins us as Commercial director and will work with the Board in its assessment of potential projects but also has been charged with the task of building the management team required to control and monitor our oil field projects on a day-to-day basis as soon as we commence first operations.
Oil field projects
Having identified a number of attractive oil field assets we are undertaking the work necessary to assess the technical data on the fields and determine the economics of each project. We will make an announcement as appropriate once we have selected our preferred first target and entered into an agreement to develop the asset.
Trading activities
In regards to our trading activities, the Company is pleased to announce it has commenced trading activities and completed the sale of a cargo of Fuel Oil (Premium Motor Spirit) which has generated a net profit in excess of $140,000 since the period end. Following the successful completion of this trade, the Company intends to import cargos of increasing size and on a more frequent basis to generate a reliable income stream. Whilst the Company has deliberately made a small and cautious start to this activity, we look forward to developing this business activity into a significant revenue stream
Results
As these results pre-date our first revenues reported above, they represent the costs of developing our strategy, reviewing potential marginal field opportunities and setting the structure for oil trading activities. Cash costs incurred in the half year amounted to $4,785,000 which include certain costs of the aborted Ke transaction and the Company's re-admission to AIM as an investing company earlier this year, The vast majority of these costs are non-recurring in nature with normal overheads, net of sundry income amounting to $804,000,which is in line with expectations. During the period the Company benefitted from the recovery of $600,000 which had been advanced to Del Sigma and which had previously been written off. The results include a non-cash charge of $6,239,000 for share based payments which is an accounting adjustment relating to warrants and options issued by the Company to directors, Strand Hanson, Corvus and EMMEF. Taking these items together the Company recorded a loss for the period of $10,303,000 (5 month period to 30 June 2010: $828,000) giving a loss per share of 01.63c (2010: 0.16c). The Company's cash reserves remain strong with funds available as cash at bank or on short term deposit amounting approximately $3.9million at 30 June 2011
During the period the Company issued a total of 220,898,610 new ordinary shares of 0.25p each and now has 741,726,330 shares in issue. Sirius does not hold any shares in treasury and hence the total number of voting rights in the Company is 741,726,330 and this figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the Financial Service Authority's Disclosure and Transparency Rules.
Jack Pryde
Chairman
22 August 2011
SIRIUS PETROLEUM PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 30 JUNE 2011
| Note | 6 months to 30/06/2011 Unaudited | 5 months to 30/06/2010 Unaudited | 17 months ended 31/12/2010 Audited |
|
| $000 | $000 | $000 |
|
|
|
| |
Other income |
| 100 | - | - |
|
|
|
| |
|
|
|
| |
Reverse impairment/(impairment) of other receivables |
| 600 | - | (600) |
Share based payment charge |
| (6,239) | - | - |
Professional fees |
| (3,881) | (97) | (548) |
Other administrative expenses |
| (904) | (732) | (2,750) |
|
|
|
|
|
Total administrative expenses |
| (10,424) | (829) | (3,898) |
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|
|
| |
Loss from operations |
| (10,324) | (829) | (3,898) |
|
|
|
| |
Finance income |
| 22 | 1 | 1 |
Finance cost |
| (1) | - | (62) |
|
|
|
| |
Loss before taxation |
| (10,303) | (828) | (3,959) |
|
|
|
| |
Taxation |
| - | - | - |
|
|
|
| |
Loss after taxation and retained loss attributable to equity holders of the Company |
| (10,303) | (828) | (3,959) |
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|
|
| |
Other comprehensive income |
|
|
| |
Exchange differences in translating foreign operations |
| - | - | (2) |
|
|
|
|
|
Total comprehensive (expenditure) for the period
|
| (10,303) | (828) | (3,961) |
|
|
|
| |
Loss per share (cents) |
|
|
| |
- basic and diluted | 2 | (1.63.c) | (0.16c) | (0.77c) |
SIRIUS PETROLEUM PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 30 JUNE 2011
Share capital | Share premium account | Share based payment reserve | Exch-ange reserve | Profit and loss account | Total | ||||
$'000 | $'000 | $'000 | $'000 | $'000 | $'000 | ||||
At 1 February 2010 (unaudited and restated) | 2,384 | 5,407 | 83 | (1) | (6,713) | 1160 | |||
Share based payments | - | - | 97 | - | 97 | ||||
Exchange reserve | - | - | - | (2) | - | (2) | |||
Transactions with owners | - | - | 97 | (2) | - | 95 | |||
Loss for the period and total comprehensive income for the period | - | - | - | - | (828) | (828) | |||
At 30 June 2010 (unaudited) | 2,384 | 5,407 | 180 | (3) | (7,541) | 427 | |||
Share capital | Share Premium account | Share-based payment reserve | Translation reserve | Profit and loss account | Total | ||||
$000 | $000 | $000 | $000 | $000 | $000 | ||||
At 31 July 2009 | 2,308 | 3,675 | - | - | (5,755) | 228 | |||
Issue of share capital | 76 | 1,732 | - | - | - | 1,808 | |||
Share based payments | - | - | 548 | - | 548 | ||||
Transactions with owners | 76 | 1,732 | 548 | - | - | 2,356 | |||
Loss for the period | - | - | - | - | (3,959) | (3,959) | |||
Other comprehensive income for the period | - | - | - | (2) | - | (2) | |||
Total comprehensive income for the period | - | - | - | (2) | (3,959) | (3,961) | |||
At 31 December 2010 | 2,384 | 5,407 | 548 | (2) | (9,474) | (1,377) | |||
Issue of share capital | 901 | 8,802 | - | - | - | 9,703 | |||
Share issue costs | - | (308) | - | - | - | (308) | |||
Share based payments | - | - | 6,239 | - | - | 6,239 | |||
- | - | - | 3 | - | 3 | ||||
Transactions with owners | 901 | 8,494 | 6,239 | 3 | - | 15,637 | |||
LLoss for the year and total comprehensive income for the period | - | - | - | - | (10,303) | (10,303) | |||
Exercise of warrants | - | - | (1,552) | - | 1,552 | - | |||
At 30 June 2011 (unaudited) | 3,285 | 13,901 | 5,235 | 1 | (18,465) | 3,957 | |||
SIRIUS PETROLEUM PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2011
|
Note | 30/06/2011 Unaudited | 30/06/2010 Unaudited | 31/12/2010 Audited |
|
| $000 | $000 | $000 |
ASSETS |
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Non-current assets |
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|
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Tangible assets |
| 27 | 14 | 8 |
|
| 27 | 14 | 8 |
Current assets |
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|
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Trade and other receivables | 3 | 3,485 | 590 | 42 |
Cash and cash equivalents |
| 677 | 232 | 8 |
Total current assets |
| 4,162 | 822 | 50 |
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Total assets |
| 4,189 | 836 | 58 |
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LIABILITIES |
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Current liabilities |
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Loans |
| - | - | 131 |
Trade and other payables |
| 232 | 409 | 1,304 |
Total current liabilities |
| 232 | 409 | 1,435 |
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EQUITY |
|
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Share capital | 4 | 3,285 | 2,384 | 2,384 |
Share premium account |
| 13,901 | 5,407 | 5,407 |
Share based payment reserve |
| 5,235 | 180 | 548 |
Exchange reserve |
| 1 | (3) | (2) |
Profit and loss account |
| (18,465) | (7,541) | (9,714) |
Total equity attributable to equity holders of the Company |
| 3,957 | 427 | (1,377) |
Total equity and liabilities |
| 4,189 | 836 | 58 |
SIRIUS PETROLEUM PLC
CONSOLIDATED CASH FLOW STATEMENT
FOR THE PERIOD ENDED 30 JUNE 2011
|
| 6 months to 30/06/2011 Unaudited | 5 months to 30/06/2010 Unaudited | 17 months ended 31/12/2010 Audited |
|
| $000 | $000 | $000 |
|
|
|
|
|
Cash flows from operating activities |
|
|
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|
Loss after taxation |
| (10,303) | (828) | (3,959) |
Depreciation |
| 8 | 9 | 19 |
Finance income |
| (22) | (1) | (1) |
Finance cost |
| 1 | - | 62 |
(Increase)/decrease in trade and other receivables |
| (154) | (79) | 103 |
Share based payments |
| 6,239 | 97 | 548 |
(Decrease)/increase in trade and other payables |
| (1,072) | 53 | 902 |
Foreign exchange |
| 3 | (2) | (2) |
Net cash outflow from operating activities |
| (5,300) | (751) | (2,328) |
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Cash flows from investing activities |
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Purchase of property, plant and equipment |
| (27) | (9) | (10) |
Finance income |
| 22 | 1 | 1 |
Net cash flows from investing activities |
| (5) | (8) | (9) |
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Cash flows from financing activities |
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Proceeds from issue of share capital |
| 9,703 | - | 1,808 |
Share issue costs |
| (308) | - | - |
Finance cost |
| (1) | - | (62) |
Loans made |
| (3,289) |
|
|
Loans repaid |
| (131) |
|
|
Loans received |
| - | - | 131 |
Net cash inflow from financing activities |
| 5,974 | - | 1,877 |
|
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Net increase /(decrease) in cash and cash equivalents |
| 669 | (759) | (460) |
Cash and cash equivalents brought forward |
| 8 | 991 | 468 |
Cash and cash equivalents carried forward |
| 677 | 232 | 8 |
SIRIUS PETROLEUM PLC
NOTES TO THE INTERIM REPORT
FOR THE PERIOD ENDED 30 JUNE 2011
1. BASIS OF PREPARATION
The interim financial statements have been prepared in accordance with applicable accounting standards and under the historical cost convention. This interim report is unaudited and does not constitute statutory accounts within the meaning of Section 498 of the Companies Act 2006. The figures for the 17 months ending 31 December 2010 have been extracted from the 2010 financial statements. The auditor's report on these accounts was unqualified and did not contain a statement under Section 498 of the Companies Act 2006.
The principal accounting policies of the Group are consistent with those detailed in the 31 December 2010 financial statements, which are prepared in accordance with International Financial Reporting Standards (IFRSs), as adopted by the European Union.
Going concern
The directors have prepared cash flow forecasts through to 30 September 2012. The cash flow forecasts demonstrate that the Group will have sufficient funding available to pursue its proposed strategy and continue in operational existence for the foreseeable future.
Segmental reporting
An operating segment is a distinguishable component of the Group that engages in business activities from which it may earn revenues and incur expenses, whose operating results are regularly reviewed by the Group's chief operating decision maker to make decisions about the allocation of resources and assessment of performance and about which discrete financial information is available.
The chief operating decision maker reviews financial information for and makes decisions about the Group's performance as a whole, as the Group has not traded during the period.
Subject to further acquisitions and the future development of the business in Nigeria the Group expects to further review its segmental information during the forthcoming financial year.
2. LOSS per share
The calculation of the basic loss per share is based on the loss attributable to ordinary shareholders divided by the weighted average number of shares in issue during the period. The impact of the options on the loss per share is anti-dilutive.
|
| Basic loss per share | ||
|
| |||
| 6 months to 30/06/2011 Unaudited | 5 months to 30/06/2010 Unaudited | 17 months ended 31/12/2010 Audited | |
|
|
|
| |
Loss on ordinary activities after tax ($'000) | (10,303) | (828) | (3,961) | |
|
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| |
Weighted average number of 0.25p ordinary shares | 632,253,487 | 520,827,720 | 516,226,690 | |
|
|
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| |
Loss per share - basic (cents) | 1.63c | 0.16c | 0.77c | |
3. trade and other receivables
| 30/06/2011Unaudited | 30/06/2010Unaudited | 31/12/2010 Audited |
| $000 | $000 | $000 |
|
|
|
|
Trade receivables | 10 | - | - |
Other receivables | 18 | 545 | 21 |
Loans | 3,289 | - | - |
Prepayments and accrued income | 168 | 45 | 21 |
Total | 3,485 | 590 | 42 |
Trade and other receivables are usually due within 30 - 60 days and do not bear any effective interest rate. The fair value of these short term financial assets is not individually determined as the carrying amount is a reasonable approximation of fair value.
A loan of $3,204,000 to EMMEF which is a related party by virtue of it's shareholding, made in April 2011 for an initial period of 120 days, attracts interest of 3% per annum, which has been accruing.
A loan to Bolad of $85,000 is not interest bearing.
4. SHARE CAPITAL
| 30/06/2011 | 30/06/2010 | 31/12/2010 |
| Unaudited | Unaudited | Audited (Restated) |
| $'000 | $'000 | $'000 |
|
|
|
|
Allotted, issued and fully paid |
|
|
|
741,726,330 (30 June 2010 and 31 December 2010: 520,827,720) ordinary shares of 0.25p | 3,285 | 2,384 | 2,384 |
The movement in ordinary shares and share premium in the period was as follows::
|
Price £ | Number | Nominal amount (USD'000) | Share premium (USD'000) |
As at 31 December 2010 |
| 520,827,720 | 2,384 | 5,407 |
Share placing | 0.05 | 83,898,610 | 342 | 6,501 |
Issue of shares in settlement of fees | 0.0242 | 65,000,000 | 265 | 2,301 |
Settlement of agreement with Sirius Oil and gas |
0.0025 | 52,000,000 | 212 | - |
Placing costs |
| - | - | (308) |
Exercise of Strand Hanson Limited warrant | 0.0025 | 10,000,000 | 41 | - |
Exercise of Corvus warrant | 0.0025 | 10,000,000 | 41 | - |
At 30 June 2011 |
| 741,726,330 | 3,285 | 13,901 |
5. CONTINGENT LIABILITIES
At 30 June 2011 and 30 June 2010 and 31 December 2010 there is a contingent liability of $231,000 relating to a fee payable to Taglient Oil. This fee is payable only on completion of a transaction that constitutes a reverse takeover under the AIM Rules of Companies. As a reverse takeover had not occurred by 30 June 2011 no amount has been recognised in the financial statements in respect of this agreement. The Board consider that this fee is only likely to become payable on signing an agreement to acquire a marginal field and completion of the related fund raising.
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