WRES.L Regulatory News (WRES)

27 Sep 2006 11:05

Caspian Holdings plc27 September 2006 27 September 2006 AIM: CSH CASPIAN HOLDINGS Interim Results for the six months ended 30 June 2006 (unaudited) Caspian Holdings ("Caspian" or "the Company") presents its interim report andfinancial statements (unaudited) for the six month period to 30 June 2006. Highlights for the period include: • Drilling of 5 new wells in the 6 months to June 30, 2006 and 7 wells to date. • Oil production increased 67% to 28,123 barrels of oil (six months to 30 June 2005: 16,874) • Oil shipments from Zhengeldy increased by 44% to 27,992 barrels (six months to 30 June 2005: 19,382) • Receipt of revenue on first export shipment of 7,200 barrels (1,000 tonnes) in first half 2006 being $412,709 (£227,262). Exports in 1,000 tonne lots are continuing. • Wellhead price through export increases 3.5 times to $56 per barrel (six months to 30 June 2005: $16 barrel) • Identification of further scope to increase production rates through the new drilling and workover programme • Strengthening of the management team in the appointment of Operations Manager, Essien Umoren and Chief Financial Officer, Dom Del Borrello • Equity raising of £3,331,400 to strengthen balance sheet and fund drilling programme Michael Masterman, Chairman of Caspian Holdings Plc, commented: "We havecontinued to find commercial oil reserves from our drilling programme andperformance has been enhanced by a combination of increased production, thecommencement of exports from the Zhengeldy field and the general increase in oilprices." Enquiries: Caspian Holdings Plc Hoodless Brennan Parkgreen CommunicationsMichael Masterman Luke Cairns Justine Howarth/Ana RibeiroT: +44 (0) 7791288381 T: +44 (0) 20 7538 1166 T: +44 (0) 20 7493 3713www.caspianoil.co.uk CASPIAN HOLDINGS Plc INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2006 Caspian Holdings Plc has had a continued active drilling and production campaignsince the 2005 Annual Report and significant field work and workovers have nowcreated oil production capacity. The Company has continued to find commercialoil reserves from its drilling campaign and the continued increasing productionprofile has been further enhanced during the half by an expected increase inwellhead price resulting from the commencement of exports from the Zhengeldyfield and increase in oil prices. Highlights for the period include: • Drilling of 5 new wells in the 6 months to June 30, 2006 and 7 wells to date. • Production of 28,123 barrels of oil as compared to 16,874 for the same period in 2005 being an increase of 67 % • Increase in shipments from Zhengeldy by 44% (27,992 barrels) building up required export inventory at the Karsak export terminal. Previously oil was sold in Kazakhstan with 19,382 barrels shipped in the previous corresponding period. • Receipt of revenue on first export shipment of 7,200 barrels (1,000 tonnes) in first half 2006 being $412,709 (£227,262). Exports in 1,000 tonne lots are continuing. • Increase in wellhead price through export from an average of $16 barrel in the same period for 2005 to $56 barrel for the corresponding period in 2006 • Identification of further scope to increase production rates through the new drilling and workover program • Strengthening of the management team in the appointment of Operations Manager, Essien Umoren and Chief Financial Officer, Dom Del Borrello • Equity raising of £3,331,400 to strengthen balance sheet and fund drilling program Since January 2006, Caspian has drilled 7 new wells and in total 17 new wellshave been drilled by Caspian since the commencement of field developmentoperations in mid 2004. This brings total cumulative field production to date inexcess of 70,000 barrels of oil since commencement of operations. The interim financial results reflect the early stage of development and oilproduction of the company. For the six months to 30th June 2006, turnover was£250,227 (2005 £159,494) and the Profit after taxation was £25,118 (2005 loss-£522,633) ............................................ Michael MastermanChairman 25th September, 2006 CASPIAN HOLDINGS PlcINTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2006 GROUP INCOME STATEMENT Unaudited Unaudited Six Six Year to Months to Months to 31st 30th June 30th June December Notes 2006 2005 2005 REVENUE 250,227 159,494 318,578 Cost of sales (266,339) (182,590) (428,497) GROSS LOSS (16,112) (23,096) (109,919) Administrative expenses (510,141) (510,640) (1,299,637) OPERATING LOSS (526,253) (533,736) (1,409,556) Exchange gains in year 723,858 (42,044) 161,658Adjustment in fair values of fixed assets (55,633) - -Provisions created in period (145,634) - - Finance income 37,143 55,632 82,788Finance costs (8,363) (2,485) (18,766) PROFIT/(LOSS) BEFORE TAXATION 25,118 (522,633) (1,183,876) Taxation - - - RETAINED PROFIT/(LOSS) FOR THE 5FINANCIAL PERIOD £25,118 £(522,633) £(1,183,876) Basic and diluted profit/(loss) per share 4 0.02p 0.62p (1.4p) CASPIAN HOLDINGS PlcINTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2006 GROUP BALANCE SHEET Unaudited Unaudited 31st 30th June 30th June December Notes 2006 2005 2005 ASSETSNON-CURRENT ASSETSGoodwill 1,307,985 1,307,985 1,307,985Intangible assets 654,908 490,280 662,146Property, plant and equipment 3,321,343 1,516,002 2,135,393 5,284,236 3,314,267 4,105,524 CURRENT ASSETSInventories 570,309 6,389 16,349Trade and other receivables 857,599 586,483 425,168Cash and cash equivalents 1,723,819 1,695,466 477,747 3,151,727 2,288,338 919,264 LIABILITIESCURRENT LIABILITIES Trade and other payables 483,267 251,412 330,705Financial liabilities - borrowings Interest bearing loans and borrowings 8,108 12,519 6,423Provisions 211,453 21,174 29,859 702,828 285,105 366,987 NET CURRENT ASSETS 2,448,899 2,003,233 552,277 NON CURRENT LIABILITIESTrade and other payables 114,586 114,605 117,870Financial liabilities - borrowings Interest bearing loans and borrowings 6,581 10,245 8,524 121,167 124,850 126,394 NET ASSETS £7,611,968 £5,192,650 £4,531,407 SHAREHOLDERS EQUITYCalled up share capital 5 98,699 84,492 84,492Share premium account 5 9,444,938 6,227,445 6,227,445Revaluation reserve 5 30,288 - -Translation reserve 5 (206,545) - -Profit and loss account 5 (1,755,412) (1,119,287) (1,780,530) TOTAL SHAREHOLDERS EQUITY £7,611,968 £5,192,650 £4,531,407 CASPIAN HOLDINGS PlcINTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2006 GROUP CASH FLOW STATEMENT Unaudited Unaudited Six Six Year to Months to Months to 31st 30th June 30th June December Notes 2006 2005 2005 Cash flows from operating activitiesCash generated from operations 1 (952,366) (770,776) (1,059,797)Finance cost (8,363) (2,485) (18,766) Net cash from operating activities (960,729) (773,261) (1,078,563) Cash flows from investing activitiesProceeds from disposal of fixed assets 1,899 117,308 -Purchase of intangible fixed assets (1,063,683) (38,853) (188,430)Purchase of tangible fixed assets - (905,969) (1,571,392)Finance income 37,143 55,632 82,788 Net cash from investing activities (1,024,641) (771,882) (1,677,034) Cash flows from financing activitiesShare issue 3,231,700 140,300 140,300Repayment of financial liabilities - borrowings Interest bearing loans and borrowings (258) (276) (7,541) Net cash from financing activities 3,231,442 140,024 132,759 (Decrease)/Increase in cash and cash equivalents 1,246,072 (1,405,119) (2,622,838) Cash and cash equivalents at beginning of year 2 477,747 3,100,585 3,100,585 Cash and cash equivalents at end of year 2 £1,723,819 £1,695,466 £477,747 CASPIAN HOLDINGS PlcINTERIM RESULTS FOR THE SIX MONTHS TO 30 JUNE 2006 NOTES TO THE GROUP CASH FLOW STATEMENT 1. RECONCILIATION OF OPERATING LOSS TO NET CASH OUTFLOW FROM OPERATING ACTIVITIES Unaudited Unaudited Six Six Year to Months to Months to 31st 30th June 30th June December 2006 2005 2005 Operating loss (526,253) (533,736) (1,409,556)Exchange gains/(losses) in period 738,388 (42,044) 161,658Translation adjustments (206,545) - (63,202)Translation adjustments relating to fixed assets (337,932) 9,633 125,258Loss on disposal of tangible assets 776 - -Depreciation charges 114,076 54,582 143,210Amounts written off intangible assets 76,671 - -(Increase)/decrease in inventories (553,960) 66,080 56,120(Increase) in trade and other receivables (432,431) (283,980) (122,665)Increase/(decrease) in trade and other payables 149,278 (58,388) 23,618Increase in other provisions 25,566 17,077 25,762 Net cash outflowfrom operating activities £(952,366) £(770,776) £(1,059,797) 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 2006 30.06.06 30.06.05 01.01.06 Cash and cash equivalents £1,723,819 £1,695,466 £477,747 Year ended 31st December 2005 31.12.05 01.01.05 01.01.05 Cash and cash equivalents £477,747 £3,100,585 £3,100,585 CASPIAN HOLDINGS PlcINTERIM RESULTS FOR THE SIX MONTHS TO 30 JUNE 2006 NOTES TO THE INTERIM RESULTS 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 2006. 4. PROFIT PER ORDINARY SHARE The calculation of the profit/(loss) per ordinary share is based on a Groupprofit of £25,118 for the 6 months ending 30th June 2006 (£1,183,876 loss forthe year ended 31st December 2005), and the weighted average ordinary sharesoutstanding of 94,037,802 (84,339,184 for the year ended 31st December 2005). On the basis of the above calculations, the profit per ordinary share for the 6months to 30th June 2006 is 0.02p (31st December 2005 loss 1.4p). 5. RESERVES AND RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS FOR THEPERIOD 1ST JANUARY 2006 TO 3OTH JUNE 206 Total Share Revaluation Translation Share Profit and ShareholdersGroup Capital Reserve Reserve Premium Loss Account Fund Profit for the financial year - - - - 25,118 25,118Adjustment in fair values 30,288 - - 30,288Translation Adjustment - (206,545) - - (206,545)Shares issued 14,207 - - 3,217,493 - 3,231,700 Net additions to shareholders' 14,207 30,288 (206,545) 3,217,493 25,118 3,080,561funds Opening shareholders' funds 84,492 - - 6,227,445 (1,780,530) 4,531,407 Closing shareholders' funds £98,699 £30,288 £(206,545) £9,444,938 £(1,755,412) £7,611,968 This information is provided by RNS The company news service from the London Stock Exchange