Tomco Energy Regulatory News (TOM)

28 Jun 2007 08:00

TomCo Energy PLC28 June 2007 TOMCO ENERGY PLC ("TomCo" or "the Company") INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2007 Since completion of the acquisition of The Oil Mining Company Inc. on 16 January2007, the Company has announced the investment of $1.39 million in the followingways: • $98,000 for a 40 per cent. interest in the Flusche drilling prospect in Texas; • $160,000 for a 20 per cent. interest in three TN drilling prospects in Tennessee; • $126,000 for a 30per cent. interest in the Rock Crossing drilling prospect in Texas; • $972,000 in a joint venture with Mark III Energy in Texas covering nine producing wells and drilling prospects for a further seventeen wells; and • $30,000 for a 15 per cent. interest in the JELP III drilling prospect in Kansas. Howard Crosby of TomCo commented: "The period under review covers a period during which the Company has beentransformed: the Board's strategy, of holding the oil shale assets untilcommercial production is economical, whilst pursuing exposure to conventional,low cost oil & gas production, is already being fulfilled." For more information contact: Tel: +1 509 301 6322TomCo Energy PlcHoward Crosby Strand Partners Limited Tel: (020) 7409 3494Simon RaggettWarren PearceThomas Lockyer Bankside Consultants Tel: (020) 7367 8888Simon RothschildLouise Mason Chairman's Statement I am pleased to announce the interim results for TomCo (formerly NetcentricSystems Plc) for the six months ended 31 March 2007. These financial resultsreflect the fundamental changes which have taken place in the period.On 16 January 2007, Netcentric Systems Plc completed the reverse acquisition ofThe Oil Mining Company Inc, which owns two separate groups of mineral leases onapproximately 2,918 acres of oil shale in the State of Utah, USA. SRK theindependent firm of mining consultants reporting on the acquired leases, hasestimated these leased oil shale areas to contain some 230 million barrels ofoil. In conjunction with the acquisition, the Company raised a total of £1.78 millionthrough a placing of 71.25 million new ordinary shares, at a placing price of2.5 pence each. These funds are being used as working capital and also to enablethe Company to investigate and make investments in producing oil wells anddrilling in proven undeveloped acreage in the USA in accordance with theCompany's published policy. On completion of the acquisition the Company changed its name to TomCo EnergyPlc and was re-admitted to trading on AIM (Symbol: TOM.L). John Ryan, thePresident of The Oil Mining Company Inc, was also appointed to the Board asCommercial Director. The Company's strategy now is to hold the oil shale assets in reserve until suchtime as their exploitation becomes commercially and economically practical andto utilise the expertise of Howard Crosby, our CEO, and John Ryan (who togetherwere the architects of the huge success of Cadence Resources Inc, a public USbased oil and gas company which they took from a market value of under $1million to $450 million over the five years from 2001 to 2006) in investment inoil wells and proven undeveloped acreage located in the USA. This strategy isnow being implemented and the Company has, to date, already invested$1.39 million in such situations with a view to creating an investment portfolioof conventional American based, shallow producing oil wells and provenundeveloped drilling locations. Progress reports for these will be releasedas appropriate. Meanwhile the Board continues to actively seek furtherinvestments, acquisitions and oil business associations. Although there have been recent advances in the technology to extract oil fromoil shale, particularly by Shell Oil, oil shale in the USA is not yet beingcommercially exploited on any scale. However, your Board believes that thissituation should change over the next decade (as a result of the huge strategicand commercial pressures, together with present supply anxiety) and may, withinthis time frame, induce the USA to create an oil shale industry in the way thatthe Canadian tar sands industry was created. Shareholders can find detailed information on the Company's website:www.tomcoenergy.com which, in accordance with AIM Rule 26, contains a summary ofour current strategy, detailed information about US oil shale and oil shalerelated links to US Government sites. Stephen KomlosyChairman Income Statement(for the 6 months ended 31 March 2007) Six months Six months Year ended ended ended 31 March 2007 31 March 2006 30 September 2006 Unaudited Unaudited Audited £'000 £'000 £'000 ----------- ----------- -----------Continuing operationsRevenue - - -Cost of sales - - - ----------- ----------- -----------Gross profit - - -Administrative expenses (204) (32) (131) ----------- ----------- -----------Operating loss (204) (32) (131) ----------- ----------- -----------Interest receivable andsimilar income 5 2 4 ----------- ----------- -----------Loss before taxation (199) (30) (127)Taxation - - - ----------- ----------- -----------Loss for the period (199) (30) (127) ----------- ----------- -----------Attributable to equityholders of the company (199) (30) (127) ----------- ----------- ----------- Six months Six months Year ended ended ended 31 March 2007 31 March 2006 30 September 2006 Unaudited Unaudited AuditedEarnings per share Pence per share Pence per share Pence per share--------------------- ----------- ----------- -----------From continuing anddiscontinued operationsBasic (0.07) (0.02) (0.09)Diluted (0.07) (0.02) (0.09)From continuing operationsBasic (0.07) (0.02) (0.09)Diluted (0.07) (0.02) (0.09)--------------------- ----------- ----------- ----------- The financial information above may not be representative of future results. Forexample, the historical capital structure does not reflect the future capitalstructure. Future interest income and expense, certain operating costs, taxcharges and dividends may be significantly different from those that resultedfrom the historical ownership structure. Statement of the Total Recognised Income and Expense(for the 6 months ended 31 March 2007) Six months Six months Year ended ended ended 31 March 2007 31 March 2006 30 September 2006 Unaudited Unaudited Audited £'000 £'000 £'000 ----------- ----------- -----------Loss for the financialperiod (199) (30) (127)--------------------- ----------- ----------- -----------Net losses recogniseddirectly in equity (199) (30) (127)--------------------- ----------- ----------- -----------Total recognised income andexpensefor the period (199) (30) (127)--------------------- ----------- ----------- -----------Attributable to the equityshareholdersof the Company (199) (30) (127)--------------------- ----------- ----------- ----------- Balance Sheet(as at 31 March 2007) 31 March 2007 31 March 2006 30 September 2006 Unaudited Unaudited Audited £'000 £'000 £'000 ----------- ----------- -----------ASSETSNon current assetsProperty, plant and equipment 2 - 2Available for sale investments 94 94 94Participating interests 168 - -Goodwill 5,013 - ----------------------- ----------- ----------- ----------- 5,277 94 96 ----------- ----------- -----------Current assetsTrade and other receivables 54 3 86Cash and cash equivalents 1,004 2 83---------------------- ----------- ----------- ----------- 1,058 5 169 ----------- ----------- -----------LIABILITIESCurrent liabilitiesTrade and other payables (62) (55) (47)---------------------- ----------- ----------- ----------- (62) (55) (47) ----------- ----------- -----------Net current assets 996 (50) 122---------------------- ----------- ----------- -----------Net assets 6,273 44 218---------------------- ----------- ----------- -----------SHAREHOLDERS' EQUITYShare capital 2,217 649 832Share premium account 5,057 50 188Retained earnings (1,001) (655) (802)---------------------- ----------- ----------- -----------Total equity 6,273 44 218---------------------- ----------- ----------- ----------- Cash Flow Statement(as at 31 March 2007) Six months Six months Year ended ended ended 31 March 2007 31 March 2006 30 September 2006 Unaudited Unaudited Audited £'000 £'000 £'000 ---------- ---------- ----------Cash flows from operatingactivitiesCash generated fromoperations (157) (3) (99)Interest received 5 2 4----------------------- ---------- ---------- ----------Net cash used operatingactivities (152) (1) (95)----------------------- ---------- ---------- ----------Cash flows from investingactivitiesPurchase of equipment (1) - (2)Purchase ofparticipating interests (168) - (94)----------------------- ---------- ---------- ----------Net cash used ininvesting activities (169) - (96)----------------------- ---------- ---------- ----------Cash flows from financingactivitiesIssue of share capital 1,242 - 271----------------------- ---------- ---------- ----------Net increase/(decrease) in cashand cash equivalents 921 (1) 80Cash and cash equivalents atbeginningof financial period 83 3 3----------------------- ---------- ---------- ----------Cash and cash equivalents at endof financial period 1,004 2 83----------------------- ---------- ---------- ---------- Notes 1. Financial information The interim financial information has been prepared on the basis of theaccounting policies as set out in the statutory financial statements for theyear ended 30 September 2006. The financial information set out herein does notconstitute statutory accounts. 2. Audit review These interim results have not been subject to a full review by our Companyauditors which is in accordance with our normal interim procedures. 3. Segmental reporting Analysis by geographical segmentThere was no revenue in the six month period. The loss before taxation arisesprincipally from the expenditure incurred in the United Kingdom in reshaping andrelisting the Company. Net assets are held in the United Kingdom, with theexception of investments held in US oil properties totalling £168,000. Analysis by business segmentBased on an analysis of risks and returns, the Directors consider that theCompany has only one identifiable business segment; energy. The Directorsconsider that no further segmentation is appropriate. Operational Central activities costs TotalSix months ended 31 March 2007 £'000 £'000 £'000----------------------- ---------- ---------- ----------Continuing activitiesRevenue - - -Administrative expenses - (204) (204)----------------------- ---------- ---------- ----------Operating loss - (204) (204)Interest receivable and similar - 5 5income ---------- ---------- ---------------------------------Loss for the year - (199) (199)----------------------- ---------- ---------- ----------Financial assets- Property, plant and equipment - 2 2- Available for sale investments 94 - 94- Participating interests 168 - 168Trade and other receivables - 54 54Cash and cash equivalents - 1,004 1,004Goodwill - 5,013 5,013----------------------- ---------- ---------- ----------Total assets 262 6,073 6,335----------------------- ---------- ---------- ----------Financial liabilitiesTrade and other payables - (62) (62)----------------------- ---------- ---------- ----------Total liabilities - (62) (62)----------------------- ---------- ---------- ---------- Operational Central activities costs TotalSix months ended 31 March 2006 £'000 £'000 £'000--------------------- ----------- ----------- -----------Continuing activitiesRevenue - - -Administrative expenses - (32) (32)--------------------- ----------- ----------- -----------Operating loss - (32) (32)Interest receivable and similar - 2 2income ----------- ----------- --------------------------------Loss for the year - (30) (30)--------------------- ----------- ----------- -----------Financial assetsTrade and other receivables 94 3 97Cash and cash equivalents - 2 2--------------------- ----------- ----------- -----------Total assets 94 5 99--------------------- ----------- ----------- -----------Financial liabilitiesTrade and other payables - (55) (55)--------------------- ----------- ----------- -----------Total liabilities - (55) (55)--------------------- ----------- ----------- ----------- Operational Central activities costs TotalYear ended 30 September 2006 £'000 £'000 £'000--------------------- ----------- ----------- -----------Continuing activitiesRevenue - - -Administrative expenses - (131) (131)--------------------- ----------- ----------- -----------Operating loss - (131) (131)Interest receivable and similar - 4 4income ----------- ----------- --------------------------------Loss for the year - (127) (127)--------------------- ----------- ----------- -----------Financial assets- Property, plant and equipment - 2 2- Available for sale investments 94 - 94Trade and other receivables - 86 86Cash and cash equivalents - 83 83--------------------- ------------ ----------- -----------Total assets 94 171 265--------------------- ------------ ----------- -----------Financial liabilitiesTrade and other payables - (47) (47)--------------------- ----------- ----------- -----------Total liabilities - (47) (47)--------------------- ----------- ----------- ----------- 4. Earnings per share Basic earnings per share is calculated by dividing the earnings attributable toordinary shareholders by the weighted average number of ordinary sharesoutstanding during the year. For diluted earnings per share, the weighted average number of ordinary sharesin issue is adjusted to assume conversion of all dilutive potential ordinaryshares. Share warrants do not have a dilutive effect. Reconciliations of the earnings and weighted average number of shares used inthe calculations are set out below: Weighted average number of Per share Earnings shares amountSix months ended 31 March 2007 £'000 000's pence-------------------------- --------- ---------- ----------Basic EPSEarnings attributable to ordinary (199) 290,300 (0.07)shareholdersEffect of dilutive securities - - - --------- ---------- ----------Diluted EPSAdjusted earnings (199) 290,300 (0.07)-------------------------- --------- ---------- ---------- Weighted average number of Per share Earnings shares amountSix months ended 31 March 2006 £'000 000's pence-------------------------- --------- ---------- --------Basic EPSEarnings attributable to ordinary (30) 139,735 (0.02)shareholdersEffect of dilutive securities - - --------------------------- --------- ---------- --------Diluted EPSAdjusted earnings (30) 139,735 (0.02)-------------------------- --------- ---------- --------- Weighted average number of Per share Earnings shares amountYear ended 30 September 2006 £'000 000's pence-------------------------- --------- ---------- ---------Basic EPS Earnings attributable to ordinary (127) 149,227 (0.09)shareholders Effect of dilutive securities - - --------------------------- --------- ---------- ---------Diluted EPSAdjusted earnings (127) 149,227 (0.09)-------------------------- --------- ---------- --------- Notes TomCo is an AIM listed company which continues to actively develop aconventional oil production profile in the South-Western United States. TheCompany also owns leases on approximately 3000 acres of shale oil holdings inUtah, estimated by SRK (an independent firm of mining consultants) to containsome 230 million barrels of oil. This information is provided by RNS The company news service from the London Stock Exchange