Editor's Pick: The week ahead....
(GOO.L) Gold Oil PLC Buy/Sell
4.55
+0.22
(5.08%)
Add to portfolio
Set Alert
Level 2
Desktop Trader
News
|
(HUG)
2009-10-30 07:06
Gold Oil PLC - Final Results |
|---|
| Previous | Next | All news for this company |
| Article layout: raw |
|
Final Results Gold Oil PLC 30 October 2009
Gold, an oil and natural gas exploration and exploitation company focused on Central and Southern America, today reports final results for the year ended 30 April 2009. Highlights * Operating loss £3.17million (2008: profit £1.59 million) * Loss for year attributable to equity holders £3.039 million(2008: profit £0.84 million) * Loss per ordinary share 0.62p (2008:Earnings per ordinary share 0.18p) * Cash at period end of £2.2 million; * Revenue increased to £1.004m (2008: £0.399m) Mark Pritchard, Chairman, commented "The past year has been one of significant challenge for the Company. In difficult circumstances, we have been very active in advancing our portfolio of assets and I am encouraged with the progress we have made. We are now actively seeking partners in our major prospects to enable us to exploit more rapidly our exploration resources in both Peru and Colombia". The Company's Annual General Meeting will be held at 10.00 a.m. on 23 November 2009 at Finsgate, 5-7 Cranwood Street, London EC1V 9EE. For further information, please contact:
Mark Pritchard Seymour Pierce Ltd Tel: +44 (0) 207 107 8000 Jonathan Wright Annual Report and Accounts The Company has today published and posted to shareholders its Annual Report and Accounts for the year ended 30 April 2009 ("Annual Report"). For the information of investors and shareholders alike, copies of the Annual Report will be available for at least one month, free of charge, at the offices of the Company's Nominated Adviser, Seymour Pierce Ltd, being 20 Old Bailey, London EC4M 7EN. Electronic copies are available on the Company's website, www.goldoilplc.com. Notes to Editors Gold Oil Gold Oil Plc is an independent oil and natural gas exploration and exploitation company focused on Central and Southern America. Shares in Gold are quoted on the AIM market in London - (Stock Quote GOO.L).
The Company is seeking to maintain a balanced portfolio of high-risk
recognised as an operator for both onshore and offshore Perú, is an operator with an exploration licences onshore Colombia, is operator of production onshore Colombia. The Company's objective is to deliver shareholder value through capital appreciation.
CHAIRMAN'S STATEMENT Introduction The year under review has been one of challenge for Gold Oil and its shareholders. Following the resignation of Gary Moore and Pat Mahony I was appointed executive chairman in March this year and Mike Burchell became a non executive director. In April, Thomas Tidow joined the board with responsibility for operations. Review of Operations The year has seen considerable activity for the Group in its two main geographic locations, Peru and Colombia. Perú Gold Oil Licence Interests in Peru at 30 April 2009
Name
In July 2008 the Group drilled a second exploration well, SA2X, on the onshore Block XXI, a kilometre north of SA1X to test the Verdun and Palaeozoic sands. The well was located on the basis of a detailed gravimetric survey and a DNME (differentially nomalised method) survey. The latter is a system of mapping the subsurface resistivity which, when interpreted, can indicate the presence of hydrocarbons. It is the first application of this process outside of Russia where it has been extensively tested, but the results on Block XXI showed major problems with the interpretation by the Russian contractor. The well was plugged and abandoned in late September 2008. We are now planning to acquire more detailed information on the block in order to generate a new drilling prospect and are scheduling a 2D seismic survey in the first quarter of 2010, close to the SA1X site. The main object is to try and identify the extent of a trap updip of the oil and gas logged in the Palaeozoic and Verdun in SA1X. Testing of the Palaeozoic and Verdun in SA1X was impossible because of the mechanical condition of the well and the influx of highly saline water which we believe came from a zone at the base of the Palaeozoic which exhibited good reservoir properties and trapping conditions in the Palaeozoic.
environmental permits to allow us to conduct the survey and we expect to receive the required consents shortly. It is encouraging to note that there is considerable activity on the neighbouring block (Block XIII) where reported production from recent wells is around 3,000 bopd. The Z34 block is immediately to the west of four of the largest developed oil fields in Northern Peru that have produced 1.6 billion barrels and, in 2006, the Group farmed out half its interest in Block Z34 to Plectrum Petroleum plc ("Plectrum"). Following the acquisition of Plectrum by Cairn Energy Plc ("Cairn") in September 2007 the Company had been in negotiation with Cairn about the future of the block. As Cairn had no strategic focus in the region, in October 2008 the Company reacquired the 50% of the block from Plectrum giving it a 100% interest. As well as returning its interest, Plectrum also made a payment to the Group of US$1.5 million. With the Group holding 100% of the Block the US$1.5 million was deposited in an escrow account in Lima as a guarantee against the seismic work programme. The Group finally received its environmental permit from the Environment Ministry in August 2008. In April 2009 SCAN Geophysical, a Norwegian company specialising in the acquisition of marine seismic, was contracted to acquire 2,013 kms of 2D seismic on Block Z34 in water depths of 200m to 3,000m. This was successfully completed in June 2009. Initial processing indicated a variety of leads, some in 200300m of water. It is very encouraging to note that the seismic survey has confirmed the initial geological model with a definitive presence of turbidite style structures trapped in 'geological mega structural features' similar to the neighbouring Z2B oilfields, and their extension into Z34. The Z2B oilfields which are located to the east in shallower water have produced over 300 MMbbl of light oil and still have large proven reserves. Some reprocessing of the onboard processed data and improvement of the acquired seismic lines is in process and will help to improve the interpretation and refine the mapping of the initial leads. The data collected from the survey is considerable and needs to be analysed thoroughly. However, we believe that even at this initial stage the five leads identified so far could have substantially more reserves then those of the neighbouring block Z2B. Colombia Gold Oil Licence Interests in Colombia at 30 April 2009
SAC
During the year under review the Group agreed to acquire an additional 18.05% working interest in the prolific NancyBurdineMaxine fields through the acquisition of a 100% shareholding in Inversiones Petroleras de Colombia SA to give a total interest to the Company of 58.05%. The consideration paid for the additional stake was US$4 million. With a majority stake in this project, the Group became the operator of the fields. In July 2009, on receipt of the Environmental Permits for three Burdine wells, the Group commenced work on them to evaluate their condition. Burdine 1, 4 and 5 were found to be in good mechanical condition and were put on short term production tests. The initial, restricted, flow rate from Burdine5 was around 60 bopd and bottom hole pressure analysis indicates that this well is an excellent candidate for reperforating the producing intervals. Well Burdine1 is now on a longer term production test with around 300 bopd of light crude. The short term plan is to workover the Burdine wells and subsequently upgrade the construction of Burdine production facilities. The medium term plan (Q2 in 2010) is to locate one or two new prospects for the drilling of development wells on the crest of Nancy after interpretation of available seismic lines. At present the Nancy structure has only one producing well, N1, from which the actual identified reserves are being drained, but N1 is on the flank of the structure and, as expected, production is declining. The Group finalised its acquisition of a 20% working interest in the Azar Block in the Putumayo Basin of Colombia. The Group was carried through the Palmera1 work over and will be carried for half of its 20% working interest in the first exploration well on the Block. The workover of the Palmera1 well tested 15o API oil at 45 bopd although a bottomhole pressure survey indicated a pumped potential of 300 bopd. It is suspended pending studies on its completion as a producing well and additional economic studies. A 3D and 2D seismic programme has been completed on the block to confirm the location of the next exploration well and firm up other prospects on the block for possible drilling in 2010. On the Rosa Blanca block the Group had farmed out half its interest to Osage Exploration and Development Inc ("Osage") who carried the Group for the cost of the well and 30 days of testing. Subsequently Osage farmed out part of its interest to Lewis Energy Colombia ("Lewis Energy") who operates the block to the south of the Rosa Blanca block. The first exploration well on the block was drilled and then suspended in December 2008 pending testing. The well was extensively tested over two periods in late January 2009 and mid March 2009. However, as only water was tested from all four zones the well was plugged and abandoned in late March 2009. As recently announced, Lewis Energy and Osage have left the licence group so Gold Oil (90%) and Empesa S.A. (10%) will use the funds lodged by all parties with ANH (Agence Nacional de Hidrocarburo) to shoot seismic later this year. Lewis Energy has signed an agreement to come back onto the Rosa Blanca Block for 25% equity and reimbursement of their share of past costs incurred by Gold Oil and Empesa.
With our increased level of activity in Colombia, the Group opened a
experienced engineer, as Country Manager. Cuba
In Cuba no progress has been made in getting the Cuban Government to
approve negotiations for a PSA (production sharing agreement). We are
shareholders if any progress is made. Operational Outlook
In Peru we are planning to farm out part of our interests in Block
Z34 and Block XXI and we have active negotiations in process. In
Colombia our primary efforts will focus on increasing production of
negotiating an extension of the licence for the Nancy Burdine fields and the initial indications are that this should be possible. In addition, subject to the results of the seismic interpretation, we intend to participate in one exploration well on the Azar block for which our interest is partially carried. Activity on the Rosa Blanca block will depend on the outcome of the new seismic and further geological and geophysical work Financial Review Revenue for the year increased to £1,004,000 (2008: £398,000). The loss after tax for the year was £3,039,000 (2008: profit of £837,000). At the year end the Group had cash of £2,179,000 (2008: £5,150,000). The Directors recommend that no dividend be paid (2008 £nil). Corporate Review During the year two share placings were undertaken by the Company: the first in July 2008 saw 22.92m of the Company's ordinary shares, that had previously been held for the account of the Company following the disposal of its interest in Minmet Resources plc, issued at 8p per share to raise £1.8m; and the second in January 2009 where 16.125m new shares were issued at 4p per share to raise £645,000, both amounts before expenses. A dispute arose with regard to the second placing which has now been resolved (see below). The Company faced two legal disputes during the period. A wrongful termination case brought by Mrs Imelda Moore following her redundancy in April 2008 was settled on terms favourable to the Company in July 2009. The dispute, arising out of the placing of 16.125m new shares in the Company undertaken in January 2009, was settled out of court, again with a positive outcome for the Company. The six million shares which were the subject of the dispute were returned and subsequently placed out at a price of 4.5 pence per share to raise £270,000 in additional cash for the Company. Upon my appointment as Chairman, an immediate reduction of overheads was implemented. Strict cost controls remain in place. Management and Staff I would like to thank all my colleagues for their efforts during the year. We are currently a small team within the Company and this can have an effect on timelines. It is important that we strengthen our management team as soon as is practicable and bring in direct technical expertise. Conclusion
conditions at the present time for small oil and gas exploration companies such as Gold. Exploration for hydrocarbons is a capital intensive business and in the year under review the steep decline in world equity markets and the contraction of credit markets placed serious limitations on access to capital. All E&P businesses have suffered during this period as the high risk sectors have been hit particularly hard by the financial crisis and the price of oil declined significantly. Notwithstanding the above, we are moving all of our assets forward at the current time. I believe we have an interesting portfolio of assets with a strategy in place to try and balance "blue sky" exploration risk with solid production and that we have retained a good geographic focus. A significant challenge facing the Company will be to raise sufficient capital, either directly or indirectly, to realise the potential of our assets. Finally I want to thank shareholders for the patience and support they have demonstrated throughout the year. Mark Pritchard Chairman 29 October 2009 STATEMENT OF NET OIL RESERVES & CONTINGENT RESOURCES AS DETERMINED ON 1 JULY 2009 (AND 31 MAY 2008) At 1 July 2009: Colombia - Nancy-1 Well: Gold Oil Net Interest 27.4% 1. NET RESERVES
2. NET CONTINGENT OIL RESOURCES
Notes: 1. The Reserve and Resource estimates shown in this report are based upon the joint reserves and resource definitions of the Society of Petroleum Engineers 2. Reserves and Contingent Resources have been prepared by Morning Star Consultants, LCC of Houston, Texas, USA 3. Net volumes have been calculated based on Gold Oil's 58.5% Participating Interest, which after Royalty amounts to 27.4% + Analysis not available Azar (Palmera-1 well) The unaudited Operator's estimate of reserves is as shown below Gold Oil Net Interest 18.4% P10 P50 P90
The Operator of Azar has calculated that Potential Resources of three structures could amount to 40.2 million barrels of which Gold Oil's interest could be 7.4 million barrels.
CONSOLIDATED INCOME STATEMENT FOR THE YEAR ENDED 30 APRIL 2009
2009 2008
Exceptional items
Profit/(loss) on ordinary activities
Profit/(loss) on ordinary activities
Profit/(loss) on ordinary activities
after taxation is attributable to:
Earnings per ordinary share
CONSOLIDATED BALANCE SHEET AT 30 APRIL 2009
2009 2008
Assets
Non current assets
Property plant and equipment
Current assets
Equity and liabilities
Capital and reserves
Current liabilities
The financial statements were approved and authorised for issue by the Board of Directors on 29 October 2009 and were signed on its behalf by:
Company registration number: 5098776 (England and Wales)
COMPANY BALANCE SHEET AS AT 30 APRIL 2009
2009 2008
Assets
Non current assets
Property plant and
equipment
--- oil and gas
Exploration and
Current assets
Trade and other
Cash and cash
Equity and liabilities
Capital and reserves
Foreign exchange
Current liabilities
Trade and other
liabilities The financial statements were approved and authorised for issue by the Board of Directors on 29 October 2009 and were signed on its behalf by:
Company registration number: 5098776 (England and Wales)
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 APRIL 2009
Foreign exchange
Foreign exchange
Company
Foreign exchange
Foreign exchange
Share capital is the amount subscribed for shares at nominal value. Share premium represents the excess of the amount subscribed for share capital over the nominal value of those shares net of share issue expenses. Retained earnings represents the cumulative loss of the Group attributable to equity shareholders.
CASH FLOW STATEMENT FOR THE YEAR ENDED 30 APRIL 2009
2009 2009 2008 2008
Investing activities
Return from investment and
Acquisition of investment
Loan advanced to
Purchase of intangible
Purchase of tangible fixed
Share of joint venture
Received on acquisition of
Financing activities
Proceeds from issue of
Cash and cash equivalents
at the beginning of the
Cash and cash equivalents
Reconciliation to Consolidated
Balance Sheet
NOTES TO THE CASH FLOW
STATEMENT Operating activities
Operating loss for the
Depreciation and
Foreign exchange
Operating cash outflows
before movements in
Increase/(decrease) in
Increase/(decrease) in
(Decrease)/increase in
Net cash outflows from
Segmental Information In the opinion of the Directors the Group has once class of business, being the exploration for, and development and production of, oil and gas reserves, and other related activities. The Group's primary reporting format is determined to be the geographical segment according to the location of the oil and gas asset. There are currently three geographic reporting segments: South America and Spain, which are involved in production, development and exploration activity, and the United Kingdom being the head office.
Exploration and production 2009
Assets and liabilities
Other segment items
Exploration and production 2008
Assets and liabilities
Other segment items
Loss for the period As permitted by section 230 of the Companies Act 1985, the holding company's income statement has not been included in these financial statements. The loss for the financial year is made up as follows: 2009 2008
Earnings per share
Earnings per ordinary share is based on the Group's loss for the financial year of £2,696,000 (2008 - profit of £837,000). The weighted average number of shares used in the calculation is the weighted average ordinary shares in issue during the year.
2009 2008
warrants issued
diluted earning per share
Cash and cash
Bank current
Bank deposit
Bank deposit accounts comprise cash held by the Group and short-term bank deposits with an oriignal maturity of three months or less and earn interest at respective short-term deposit rates. The carrying amount of these assets approximates to their fair value. As at 30 April 2009, bank deposits included £1,200,000 (2008 - £600,000) that is being held as a guarantee in respect of a letter of credit and is not available for use until the Group fulfills certain licence commitments in Peru. In June 2009, these commitments were met which would enable the guarantee to be released but, should the Group decide to move to the next stage of exploration, then the guarantees would remain in place.
Authorised
Alloted, called up and fully paid
On 9 May 2008, 575,000 ordinary shares were issued at 1p per share on the exercise of warrants. On 19 May 2008, 2,875,000 ordinary shares were issued at 1p per share on the exercise of warrants. On 20 January 2009, 16,125,000 ordinary shares were issued at 4p per share on the placing of the shares. As at 30 April 2009, 6,000,000 of this placing remained unpaid but the amount due has been received since the year end.
---END OF MESSAGE--- This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement. |
| Previous | Next | All news for this company |
| Article layout: raw |