Xtract Regulatory News (XTR)

4 Apr 2006 07:01

Resmex plc04 April 2006 RESMEX PLC ("Resmex" or the "Company") Preliminary results for the year ended 31 December 2005 HIGHLIGHTS . Listed on AIM in March 2005 . In August 2005, acquired 100% of Sermines de Mexico S.A. de C.V., a company which owns mineral exploration and development rights in three concessions in the California-Sonora Gold Belt in Mexico . In October 2005, acquired 21.7% of the issued share capital of Xtract Oil Limited, a new company that intends to develop the technology for oil extraction from oil shale minerals . In October 2005, agreed to acquire mining tenements in Queensland from Intermin Resources Limited, mainly in an area known as Julia Creek . In process of application for petroleum exploration permits in the south island of New Zealand for oil shale deposits . In February 2006, completed the acquisition of the remaining 78.3% of Xtract Oil Limited. . John Newton appointed to the board of the Company as Chief Executive Officer with effect from 10 March 2006. John Newton has a background in international stockbroking, accounting and corporate finance and has been a director of a number of quoted companies in Australia and Canada For further information, please contact: Sue Wickerson John NewtonResmex plc Resmex plcTel: +44 (0) 20 8466 0406 Tel: +61 (3) 9654 1776 Chairman's Statement Established in October 2004, Resmex plc has had an exciting first year ofdevelopment. In August 2005, the Company acquired Sermines de Mexico S.A. de C.V., which ownsmineral exploration and development rights in three concessions in theCalifornia-Sonora Gold Belt in Mexico. The result of limited exploration whichhas been undertaken at the concessions has been encouraging. In February 2006, Resmex completed the acquisition of Australian company XtractOil Limited ("Xtract"). Xtract is a new company that intends to develop thetechnology for oil extraction from oil shale minerals. Resmex has a significantportfolio of oil shale resource tenements in Australia and has applied forexploration permits in New Zealand. Oil shale has been the subject of investigation as a source of oil for manyyears. World resources of oil shale are believed to be extremely large However,the inefficient and environmentally damaging nature of the technology currentlyemployed in the extraction process and the relatively low cost of finding andproducing oil from conventional sources has been a barrier to commercialdevelopment of oil shale resources. The development of new extractiontechnologies and the rising world demand for oil have re-awakened interest inoil shale. The development of Xtract's technology could produce liquidhydrocarbons to address the global decline of conventional oil reserves withsignificant environmental benefits and higher yields over previously triedextraction methods. For Xtract to bench test and commercially develop a technology for hydrocarbonextraction access to an oil shale is required as this is not a commodity whichis commercially traded. Resmex has acquired mining tenements in Queensland fromIntermin Resources Limited, mainly in an area known as Julia Creek. The JuliaCreek deposits are estimated to contain substantial quantities of oil. In oneparticular part of the deposit there are an estimated 415 million barrels of insitu resources. As an active and involved investor, the Company is focused on the business ofoverseeing the development of the Xtract Technology and the related kerogenextraction at the Resmex Tenements. The Board has extensive public company andcommercial experience as well as petroleum industry experience in both upstreamand down stream operations. With an experienced board and sound investmentstrategy, we are looking forward to long term growth. Robert J. AnnellsChairman 3 April 2006 Income StatementFor the year ended 31 December 2005 Notes 2005 £000Administrative and Operating Expenses Amortisation of intangibles 21 Consulting Fees 37 Directors Fees 12 Share-based payments expense 79 Office General 32 Professional fees 33 Other 8 Foreign Exchange (gain)/loss (1) ----- Operating loss (221) Share of loss of associate (24) Investment revenues 25 ----- Loss before taxation (220) Income tax expense - ----- Loss for the period (220) ===== Net loss per share- Basic & diluted 2 (0.21)p Balance SheetAt 31 December 2005 2005 £000 NotesAssetsNon-current assetsIntangible assets 81Investment in associate 3 412 ------ 493 ------ Current assetsCash and cash equivalents 1,321Prepaid expenses 12Trade and other receivables 1 ------ 1,334 ------ Total assets 1,827 ======Equity and liabilities Capital and reservesShare capital 199Share premium reserve 1,756Share based payments reserve 33Retained earnings (220) ------ Total equity 4 1,768 ------ Current liabilitiesTrade and other payables 5 59 ------ Total liabilities 59 ------ Total equity and liabilities 1,827 ====== Cash Flow StatementFor the year ended 31 December 2005 2005 £000Operations Operating loss for the period (221) -----Adjustments for:Amortisation of intangible assets 21Share based payment expense 79 -----Operating cash flows before movement in working capital (121) Changes in working capital:Increase in receivables (12)Increase in payables 59 -----Net cash used in operating activities (74) =====Investing Activities Interest received 25Acquisition of intangible assets (21)Acquisition of investment in an associate (436)Acquisition of subsidiary (82) -----Net cash used in investing activities (514) -----Financing activities Proceeds of issue of shares 2,010Flotation expenses (101) -----Net cash from financing activities 1,909 -----Net increase in cash and cash equivalents 1,321 -----Cash and cash equivalents at the end of the period 1,321 ===== Notes 1. Accounting policies The financial information contained in this document does not constitutestatutory accounts within the meaning of section 240 of the Companies Act 1985but has been extracted from the audited statutory accounts for the year ended 31December 2005. The audited statutory accounts received an unqualified auditors'report which did not contain a statement under section 237 of the Companies Act1985 and will be delivered to the Registrar of Companies in due course. Thestatutory accounts have been prepared in accordance with International FinancialReporting Standards and on the historical cost basis, except for the revaluationof certain investments. The statutory accounts have been prepared using theaccounting policies set out in the statutory accounts for the year ended 31December 2005. 2. Net loss per share The calculation of the basic and diluted net deficit per share attributable tothe ordinary equity holders of the parent is based on the following data: Earnings 2005 £000Earnings for the purposes of basic earnings per share - loss for the period attributable to equity holders of the parent (220) ===== Numbers of shares 2005 Weighted average number of ordinary shares for the purposes ofbasic earnings per share: 102,744,761 =========== Since the end of the reporting period an additional 57,471,250 shares wereissued in connection with the acquisition of Xtract Oil Limited and a further30,000,000 were issued pursuant to the acquisition of mining tenements fromIntermin Resources Limited. 3. Investment in associate In October 2005, the Group acquired 21.7 per cent of the issued share capital ofXtract Oil Ltd. The investment has been accounted for by the equity method ofaccounting. 2005 £000 Cost of investment in associate 436Share of post-acquisition loss (24) ----- 412 ===== Summarised financial information in respect of the Group's interest in associateis set out below: 2005 £000 Total assets 156Total liabilities - -----Net assets 156 Group's share of associate's net assets 34 ===== Revenue - Loss for the period (111) Group's share of associate's profit for the period (24) 4. Equity Ordinary Shares Share Share Retained Total Premium Based Earnings Share- Reserve Payments holders' Reserve Equity £000 £000 £000 £000 Number Share Capital £000Balance onincorporation 2 - - - - - Sub divisionof each 1pshare into 100.1p shares 18 - - - - - Share issue 49,999,980 50 - - - 50 Share issue 88,500,000 89 796 - - 885 Share issuecosts n/a - (87) - - (87) Share issue 3,088,550 3 43 - - 46 Share issue 56,000,000 56 1,004 - - 1,060 Share issue 1,500,000 1 14 - - 15 Share basedpayments n/a - - 33 - 33 Share issuecosts - - (14) - - (14) Net loss - - - - (220) (220) ------------ ---- ----- --- ----- -----Balance at 31December 2005 199,088,550 199 1,756 33 (220) 1,768 ============ ==== ===== === ===== ===== 5. Trade and other payables 2005 £000 Trade creditors and accruals 59 ---- 59 ==== Trade creditors and accruals principally comprise amounts outstanding for tradepurchases and ongoing costs. The directors consider that the carrying amount of trade payables approximatedtheir fair value. 6. 2005 Annual Report and Financial Statements Copies of the 2005 Annual Report and Financial Statements will be sent toshareholders in due course. Further copies will be available from the Company'snominated adviser, Smith & Williamson Corporate Finance Limited, 25 Moorgate,London EC2R 6AY, free of charge. This information is provided by RNS The company news service from the London Stock Exchange