WRES.L Regulatory News (WRES)

28 Sep 2007 07:04

Caspian Holdings plc28 September 2007 28 September 2007 AIM:CSH INTERIM RESULTS FOR THE SIX MONTHS ENDED 30TH JUNE 2007 FOR CASPIAN HOLDINGS Plc Caspian Holding Plc, ("Caspian" or "the Company"), which focuses on developingshallow oil fields in Kazakhstan and the onshore region around the Caspian sea,announces its interim results for the 6 months to 30 June 2007. Highlights • Production from the Zhengeldy field remained steady from the previous period at 22,000 barrels for the 6 months• Revenue recognised increased 140% to £601,524 Production over the half year has been steady and this trend has continued intothe September quarter.Revenue was dampened by the lower proportion of domesticsales relative to export sales, with 21,600 barrels exported and 7,200 barrelssold domestically. Progress towards the restart of export sales is positive.The key development report, which has held up grant of an export quota, wasapproved by the key geological and regional authorities in August 2007 and isawaiting Ministerial committee approval early in the 4th Quarter, a few monthslater than previously anticipated. Operating loss for the period was £663,268 (2006 Loss £526,253). During the halfyear, a range of initiatives, including reducing office overheads, have been putin place to streamline costs. Chairman's Statement, Operations Review and Financial Statements follow. Enquiries: Caspian Holdings Plc Grant Thornton Corporate Hoodless Brennan Parkgreen Communications FinanceMichael Masterman Fiona Owen Luke Cairns Justine HowarthT: +44 (0) 7791 288381 T: +44 (0) 20 7383 5100 T: +44 (0) 20 7538 1166 T: +44 (0) 20 7851 7480www.caspianoil.co.uk CASPIAN HOLDINGS Plc CHAIRMANS STATEMENT TO THE INTERIM RESULTS FOR THE SIX MONTHS TO 30TH JUNE 2007 Caspian Holdings Plc has focused on achieving steady production from itsexisting oil producing wells located on the Zhengeldy field during the half yearand streamlining its cost structure. Caspian's management team has also focusedon new project generation activities with the objective of increasing theportfolio of oil fields. Highlights for the period include: • Production from the Zhengeldy field of 22,000 barrels of oil as compared to 28,123 for the same period in 2006 a decline of 21.7%. • Increased revenue recognised from both export and domestic oil sales £601,524 (2005 £250,227) up 140% for the previous corresponding period. • Average wellhead price achieved through export and domestics sales for the period was $42.58 per barrel Operations have benefited from a focus on steady state production withmaintenance of production volumes with no new drilling. Plans are beingevaluated to restart drilling in the final quarter of 2007. The interim financial results reflect the early stage of development and oilproduction of the company. For the six months to 30th June 2007 the OperatingLoss before taxation, foreign exchange gains and adjustments/provisions was£663,268 (2006 Loss £526,253). The Loss after taxation was £433,145 (2006profit £25,118). Michael MastermanChairman 28th September, 2007 CASPIAN HOLDINGS Plc GROUP INCOME STATEMENT FOR THE SIX MONTHS ENDED 30TH JUNE 2007 Unaudited Unaudited Six Months Six Months Year to 31st to 30th June to 30th June December Notes 2007 2006 2006 REVENUE 601,524 250,227 1,508,015 Cost of sales (653,576) (266,339) (936,578) GROSS LOSS (52,052) (16,112) (571,437) Administrative expenses (611,216) (510,141) (3,289,610) OPERATING LOSS (663,268) (526,253) (2,718,173) Exchange gains in year 249,446 723,858 (595,594) Adjustment in fair values of fixed assets - (55,633) (52,864) Provisions created in period (5,282) (145,634) (88,795) Finance income 11,476 37,143 57,648Finance costs (25,517) (8,363) (14,810) PROFIT/(LOSS) BEFORE TAXATION (433,145) 25,118 (3,412,588) Taxation - - - RETAINED PROFIT/(LOSS) FOR THE FINANCIAL PERIOD 5 £(433,145) £25,118 £(3,412,588) Basic and diluted profit/(loss) per share 4 (0.43)p 0.02p (3.6p) CASPIAN HOLDINGS Plc GROUP BALANCE SHEET 30TH JUNE 2007 Unaudited Unaudited 31st 30th June 30th June December Notes 2007 2006 2006 ASSETSNON-CURRENT ASSETSGoodwill 326,998 1,307,985 326,998Intangible assets 352,333 654,908 528,327Property, plant and equipment 3,268,433 3,321,343 3,196,870 3,947,764 5,284,236 4,052,145 CURRENT ASSETSInventories 148,772 570,309 296,268Trade and other receivables 762,052 857,599 767,890Cash and cash equivalents 596,114 1,723,819 200,652 1,506,938 3,151,727 1,264,810 LIABILITIESCURRENT LIABILITIESTrade and other payables 537,660 483,267 519,797Financial liabilities - borrowingsInterest bearing loans and borrowings - 8,108 1,753Provisions 77,769 211,453 108,186 615,429 702,828 629,736 NET CURRENT ASSETS 891,509 2,448,899 635,074 NON CURRENT LIABILITIESTrade and other payables 95,848 114,586 98,728Financial liabilities - borrowingsInterest bearing loans and borrowings 700,000 6,581 - 795,848 121,167 98,728 NET ASSETS £4,043,425 £7,611,968 £4,588,541 SHAREHOLDERS EQUITY Called up share capital 5 98,699 98,699 98,699Share premium account 5 9,474,645 9,444,938 9,474,645Revaluation reserve 5 24,945 30,288 24,945Translation reserve 5 71,399 (206,545) 183,370Profit and loss account 5 (5,626,263) (1,755,412) (5,193,118) TOTAL SHAREHOLDERS EQUITY £4,043,425 £7,611,968 £4,588,541 CASPIAN HOLDINGS Plc GROUP CASH FLOW STATEMENT FOR THE SIX MONTHS ENDED 30TH JUNE 2007 Unaudited Six Unaudited Six Months to Months to Year to 31st 30th June 30th June December Notes 2007 2006 2006 Cash flows from operating activitiesCash generated from operations 1 134,305 (952,366) (1,232,898)Finance cost (10,835) (8,363) (14,810) Net cash from operating activities 123,470 (960,729) (1,247,708) Cash flows from investing activitiesProceeds from disposal of fixed assets - 1,899 1,345Purchase of intangible fixed assets (257,434) - (312,123)Purchase of tangible fixed assets (180,297) (1,063,683) (2,024,468)Finance income 11,476 37,143 57,648 Net cash from investing activities (426,255) (1,024,641) (2,277,598) Cash flows from financing activitiesShare issue - 3,231,700 3,261,407Receipt of loan 700,000 - -Repayment of financial liabilities - borrowingsInterest bearing loans and borrowings (1,753) (258) (13,196) Net cash from financing activities 698,247 3,231,442 3,248,211 (Decrease)/Increase in cash and cash equivalents 395,462 1,246,072 (277,095) Cash and cash equivalents at beginning of year 2 200,652 477,747 477,747 Cash and cash equivalents at end of year 2 £596,114 £1,723,819 £200,652 CASPIAN HOLDINGS Plc NOTES TO THE GROUP CASH FLOW STATEMENT FOR THE SIX MONTHS ENDED 30TH JUNE 2007 1. RECONCILIATION OF OPERATING LOSS TO NET CASH OUTFLOW FROM OPERATINGACTIVITIES Unaudited Six Unaudited Six Year to 31st Months to Months to December 30th June 30th June 2007 2006 2006 Operating loss (677,950) (526,253) (2,718,173)Exchange gains/(losses) in period 249,446 738,388 (648,986)Translation adjustments (111,971) (206,545) 183,370Translation adjustments relating to fixed assets (142,280) (337,932) 215,294Loss on disposal of tangible assets - 776 738Depreciation charges 645,593 114,076 604,513Amounts written off intangible assets - 76,671 -Impairment losses 38,849 - 1,587,164(Increase)/decrease in inventories 147,496 (553,960) (279,919)(Increase)/decrease in trade and other receivables 5,838 (432,431) (342,722)Increase/(decrease) in trade and other payables 14,983 149,278 169,951Increase/(decrease) in other provisions (35,699) 25,566 (4,128) Net cash (outflow)/inflow from operating activities £134,305 £(952,366) £(1,232,898) 2. CASH AND CASH EQUIVALENTS The amounts disclosed on the cash flow in respect of cash and cash equivalentsare in respect of these balance sheet amounts. Six months ended 30th June 2007 30.06.07 30.06.06 30.06.05 Cash and cash equivalents £596,114 £1,723,819 £1,695,466 Year ended 31st December 2006 31.12.06 31.12.05 01.01.05 Cash and cash equivalents £200,652 £477,747 £3,100,585 CASPIAN HOLDINGS Plc NOTES TO THE INTERIM RESULTS FOR THE SIX MONTHS ENDED 30TH JUNE 2007 1. BASIS OF PREPARATION These financial statements have been prepared in accordance with InternationalFinancial Reporting Standards and IFRIC interpretations and with those parts ofthe Companies Act 1985 applicable to companies reporting under IFRS. Thefinancial statements have been prepared under the historical cost convention. The interim results are unaudited but have been reviewed by the auditors. Thefinancial statements herein do not amount to full statutory accounts within themeaning of Section 240 of the Companies Act 1985 (as amended). 2. TURNOVER Turnover represents sale of oil. 3. TAXATION There is no taxation arising on the profit on ordinary activities for the sixmonths ended 30th June 2007. 4. LOSS PER ORDINARY SHARE The calculation of the loss per ordinary share is based on a Group loss of£433,145 for the 6 months ending 30th June 2007 (£3,412,588 loss for the yearended 31st December 2006), and the weighted average ordinary shares outstandingof 98,698,685 (95,747,517 for the year ended 31st December 2006). On the basis of the above calculations, the loss per ordinary share for the 6months to 30th June 2007 is 0.43p (31st December 2006 loss 3.60p). 5. RESERVES AND RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS FOR THEPERIOD 1ST JANUARY 2007 TO 30TH JUNE 2007 Share Revaluation Translation Share Profit and TotalGroup Capital Reserve Reserve Premium Loss Account Shareholders Fund Profit for the financial year - - - - (433,145) (433,145)Adjustment in fair values - - - - - -Translation Adjustment - - (111,971) - - (111,971)Shares issued - - - - - - Net additions to shareholders' - - (111,971) - (433,145) (545,116)funds Opening shareholders' funds 98,699 24,945 183,370 9,474,645 (5,193,118) 4,588,541 Closing shareholders' funds £98,699 £24,945 £71,399 £9,474,645 £(5,626,263) £4,043,425 CASPIAN HOLDINGS Plc INDEPENDENT REVIEW REPORT FOR THE SIX MONTHS TO 30TH JUNE 2007 Introduction We have been instructed by the company to review the financial information forthe six months ended 30th June 2007. We have read the other informationcontained in the interim report and considered wither it contains any apparentmisstatements or material inconsistencies with the financial information. Our report has been prepared in accordance with the terms of our engagement toassist the company in meeting the requirements of the rules of the London StockExchange for companies trading securities on the Alternative Investment Marketand for no other purpose. No person is entitled to rely on this report unlesssuch a person is a person entitled to rely upon this report by virtue of and forthe purpose of our terms of engagement or has been expressly authorised to do soby our prior written consent. Save as above, we do not accept responsibility forthis report to any other person or for any other purpose and we hereby expresslydisclaim any and all such liability. Director's Responsibilities The interim report, including the financial information contained therein, isthe responsibility of, and has been approved by the directors. The directors areresponsible for preparing the interim report in accordance with the rules of theLondon Stock Exchange for companies trading securities on the AlternativeInvestment Market which require that the half-yearly report be presented andprepared in a form consistent with that which will be adopted in the company'sannual accounts having regard to the accounting standards applicable to suchannual accounts. Review work performed We conducted our review in accordance with guidance contained in Bulletin 1999/4issued by the Auditing Practices Board for use in the United Kingdom by auditorsof fully listed companies. A review consists principally of making enquiries ofmanagement and applying analytical procedures to the financial information andunderlying financial data and based thereon, assessing whether the accountingpolicies and presentation have been consistently applied unless otherwisedisclosed. A review excludes audit procedures such as tests of controls andverification of assets, liabilities and transactions. It is substantially lessin scope than an audit performed in accordance with United Kingdom AuditingStandards and therefore provides a lower level of assurance than an audit.Accordingly we do not express an audit opinion on the financial information. Review Conclusion On the basis of our review we are not aware of any material modifications thatshould be made to the financial information as presented for the six monthsended 30th June 2007. COOK AND PARTNERSChartered Accountants 28th September 2007 This information is provided by RNS The company news service from the London Stock Exchange