Petro Matad Ltd (MATD)

 

LSE:MATD: Half-year Report

Petro Matad Ltd

01 Sep 2017 08:52:50

Petro Matad Ltd

RNS Number : 5514P
Petro Matad Limited
01 September 2017
 

Petro Matad Limited

('Petro Matad' or the 'Company')

Interim results for the six months ended 30 June 2017

LONDON, 01 September 2017: Petro Matad Limited, the AIM quoted Mongolian oil explorer, is pleased to announce its unaudited interim results for the six months ended 30 June 2017.

Financial Summary

The Group posted a loss of USD 2.518 million for the six-month period ended 30 June 2017, which compares to a profit of USD 0.1 million for the comparable period in 2016. The Company's cash balance at 30 June 2017 was $10.92 million, which compares to a cash balance of $0.49 million on 30 June 2016.

As reported in the announcement of 8 May 2017, the Company entered into a financing agreement with Bergen Global Opportunity Fund, LP (Bergen), which agreement was amended and announced post period end on 15 August 2017. Under the provisions of the agreement the Company has obtained two tranches of $1.2 million each and has issued a Convertible Note to Bergen for a further $1.5 million. Further tranches have been postponed until 15 October 2017, during which period the Company will continue to review its financing requirements.

 

Operations

 

On 5 July 2017, the Company announced its 2017 exploration drilling programme and initial drilling targets in Blocks IV and V, following the signing of a drilling rig contract with Sinopec International Petroleum Service Mongolia. Preparations for the commencement of drilling operations continue and the Company expects to issue a full operational announcement by mid-September 2017, which will include a full update on drilling rig preparations and expected spud date.

 

For more information, please contact:

 

Petro Matad Limited   

Ridvan Karpuz, CEO      +97 670 141 099 / +97 675 751 099

 

NOMAD and Broker

Stockdale Securities Limited      

Richard Johnson / David Coaten              +44 (0)20 7601 6100

 

Business Advisory Firm

FTI Consulting

Edward Westropp                                    +44 (0)20 3727 1521

 

About Petro Matad

 

Petro Matad is the parent company of a group focussed on oil exploration, as well as future development and production in Mongolia. At the current time, Petro Matad holds the sole operatorship of three Production Sharing Contracts with the Government of Mongolia. Block XX has an area of 10,343 km² in the far eastern part of the country, and Blocks IV and V have an area of 28,999 km2 and 21,150 km2, respectively, in the southwest part of the country.

Petro Matad Limited is incorporated in the Isle of Man under company number 1483V. Its registered office is at Victory House, Prospect Hill, Douglas, Isle of Man, IM1 1EQ.

 

 

STATEMENT OF COMPREHENSIVE INCOME

FOR THE HALF-YEAR ENDED 30 JUNE 2017

 

 

 

 

              Consolidated

 

 

30 Jun 2017

30 Jun 2016

 

 

$'000

$'000

 

 

 

 

Continuing Operations

 

 

 

Revenue

 

 

 

Interest Income

 

9

30

Other Income

 

-

4,841

 

 

9

4,871

 

 

 

 

Expenditure

 

 

 

Consultancy fees

 

(26)

(29)

Depreciation and amortisation

 

(131)

(92)

Employee benefits expenses

 

(1,156)

(1,803)

Exploration expenditure

 

(378)

(2,171)

Other expenses

 

(836)

(683)

Profit/(Loss) from continuing operations before income tax

 

(2,518)

93

Income tax expense

 

-

-

Profit/(Loss) from continuing operations after income tax

 

(2,518)

93

Net Loss

 

(2,518)

93

 

 

 

 

Other comprehensive income/(loss)

 

 

 

Exchange rate differences on translating foreign operations

 

44

16

Other comprehensive income/(loss), net of income tax

 

44

16

Total comprehensive loss

 

(2,474)

109

 

 

 

 

Profit/(Loss) attributable to owners of the parent

 

(2,518)

93

 

 

 

 

Total comprehensive income/(loss) attributable to owners of the parent

 

(2,474)

109

 

 

 

 

 

 

 

-       Basic and diluted earnings/(loss) per share

 

(0.87)

0.03

 

 

 

STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2017

 

 

 

                                Consolidated

 

30 Jun 2017

31 Dec 2016

30 Jun 2016

 

$'000

$'000

$'000

ASSETS

 

 

 

Current Assets

 

 

 

Cash and cash equivalents

10,924

6,479

492

Trade and other receivables

168

5,155

668

Prepayments and other assets

472

523

496

Total Current Assets

11,564

12,157

1,656

 

 

 

 

Non-Current Assets

 

 

 

Trade and other receivables

-

-

536

Exploration and evaluation

15,275

15,275

15,275

Property, plant and equipment

720

783

1,031

Total Non-Current assets

15,995

16,058

16,842

TOTAL ASSETS

27,559

28,215

18,498

 

 

 

 

LIABILITIES

 

 

 

Current liabilities

 

 

 

Trade and other payables

1,821

1,352

2,453

Total Current Liabilities

1,821

1,352

2,453

TOTAL LIABILITIES

1,821

1,352

2,453

NET ASSETS

25,738

26,863

16,045

 

 

 

 

EQUITY

 

 

 

Issued capital

107,476

106,150

106,150

Reserves

4,176

4,109

4,094

Accumulated losses

(85,914)

(83,396)

(94,199)

TOTAL EQUITY

25,738

26,863

16,045

 

 

 

 

CONDENSED CASH FLOW STATEMENT

FOR THE HALF-YEAR ENDED 30 JUNE 2017

 

 

Consolidated

 

30 Jun 2017

30 Jun 2016

 

$'000

$'000

 

 

 

Cash flows from operating activities

 

 

Payments to suppliers and employees

(3,041)

(4,261)

Interest received

9

30

Proceeds from Bergen (shares to be issued)

1,200

-

Farm-out proceeds

5,000

-

Net cash flows from/(used in) operating activities

3,168

(4,231)

 

 

 

Cash flows from operating activities

 

 

Purchase of property, plant and equipment

(41)

(667)

Proceeds from the disposal of plant and equipment

-

35

Net cash flows from/(used in) investing activities

(41)

(632)

 

 

 

Cash flows from financing activities

 

 

Proceeds from issue of shares

1,921

-

Capital raising costs

(647)

-

Net cash flows from/(used in) financing activities

1,274

-

 

 

 

Net increase/(decrease) in cash and cash equivalents

4,401

(4,863)

Net foreign exchange differences

44

16

Cash and cash equivalents at beginning of period

6,479

5,339

Cash and cash equivalents at end of period

10,924

492

 

STATEMENT OF CHANGES IN EQUITY

FOR THE HALF-YEAR ENDED 30 JUNE 2017

 

 

 

Consolidated

 

Attributable to equity holders of the parent

 

 

Issued Capital

$'000

 

Accumulated Losses

$'000

 

Other

Reserves $'000

 

 

Total

$'000

 

 

 

 

 

As at 1 January 2016

106,150

(94,310)

4,010

15,850

Income/(Loss) for the period

-

93

-

93

Other comprehensive income

-

-

16

16

106,150

(94,217)

4,026

15,959

Transactions with owners in their capacity as owners

 

 

 

 

Issue of share capital

-

-

-

-

Changes in equity (Dissolved PMSL)

-

18

-

18

Share based payments

-

-

68

68

As at 30 June 2016

106,150

(94,199)

4,094

16,045

 

 

 

 

 

 

 

 

 

 

As at 1 January 2017

106,150

(83,396)

4,109

26,863

Income/(Loss) for the period

-

(2,518)

-

(2,518)

Other comprehensive income

-

-

44

44

106,150

(85,914)

4,153

24,389

Transactions with owners in their capacity as owners

 

 

 

 

Issue of share capital

1,921

-

-

1,921

Cost of capital raising

(647)

-

-

(647)

Share based payments

52

-

23

75

As at 30 June 2017

107,476

(85,914)

4,176

25,738

1.   CORPORATE INFORMATION

 

The financial report covers the consolidated entity of Petro Matad Limited and its controlled entities.

 

Petro Matad Limited, a company incorporated in the Isle of Man on 30 August 2007 has four wholly owned subsidiaries, including Capcorp Mongolia LLC and Petro Matad LLC (both incorporated in Mongolia), Central Asian Petroleum Corporation Limited ("Capcorp") and Petromatad Invest Limited (both incorporated in the Cayman Islands).  Its majority shareholder is Petrovis Matad Inc. Its majority shareholder is Petrovis Matad Inc.

2.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

The half-year financial report does not include all of the notes of the type normally included within the annual financial report and therefore cannot be expected to provide as full an understanding of the financial performance, financial position and financing and investing activities of the consolidated entity as the full financial report.

 

The half-year financial report should be read in conjunction with the annual Financial Report of Petro Matad Limited as at 31 December 2016. The half-year consolidated financial statements have been prepared using the same accounting policies as used in the annual financial statements for the year ended 31 December 2016.

 

It is also recommended that the half-year financial report is considered together with any public announcements made by Petro Matad Limited and its controlled entities during the half-year ended 30 June 2017.

 

(a)      Basis of Preparation

 

The half-year consolidated financial report is a general purpose financial report, which has been prepared in accordance with the requirements of International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ('IASB'). The half-year financial report has been prepared on a historical cost basis, except where stated.

 

The financial report is presented in US dollars and all values are rounded to the nearest thousand dollars ($'000).

 

For the purpose of preparing the half-year financial report, the half-year has been treated as a discrete reporting period.

 

(b)      Basis of consolidation

 

The consolidated financial statements comprise the financial statements of the Group as at 31 December each year.

 

Subsidiaries are entities controlled by the Group.  Control exists when the Group has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.  In assessing control, potential voting rights that presently are exercisable or convertible are taken into account.  The financial statements of the subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases.

 

The financial statements of subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies. Adjustments are made to bring into line any dissimilar accounting policies that may exist.

 

A change in the ownership interest of a subsidiary that does not result in a loss of control is accounted for as an equity transaction.

 

All intercompany balances and transactions, including unrealised profits arising from intra-group transactions, have been eliminated in full.  Unrealised losses are eliminated unless costs cannot be recovered.

 

 

3.   CONTRIBUTED EQUITY

 

 

                        CONSOLIDATED

 

 

 

30 Jun 2017

  31 Dec 2016

 

 

 

$'000

     $'000

Ordinary shares (i)

303,084,189 shares issued and fully paid

 (31 Dec 2016: 287,494,775)

 

107,476

106,150

 

 

 

107,476

106,150

 

                 

 

(i) Ordinary shares

Full paid ordinary shares carry one vote per share and carry the right to dividends.

 

Movement in ordinary shares on issue

Number of Shares

Issue Price$

$'000

At 1 January 2017

287,494,775

 

106,150

Issue of shares to employees and directors on 24 Mar 2017 on exercise of options

197,500

$0.137

27 

Issue of shares to employees and a director on 24 Mar 2017 on exercise of options

16,000

$0.247

4

Issue of shares to a director on 24 Mar 2017 on exercise of options

75,000

$0.098

7

Issue of shares to employees on 24 Mar 2017 on exercise of options

141,000

$0.111

16

Issue of shares to Bergen on 11 May 2017*

2,151,951

$0.294

632

Issue of shares to Bergen on 11 May 2017*

3,500,000

$0.010

35

Issue of shares to Bergen on 13 June 2017**

9,507,963

$0.126

1,200

Cost of capital raising

 

 

(647)

Share based payment

 

 

52

At 30 June 2017

303,084,189

 

107,476

 

 

 

 

 

 

* On 11 May 2017, the Company issued 5,651,951 commencement and collateral shares to Bergen as part of the initial closing under the Private Placement arrangement.

**On 13 June 2017, the Company issued 9,507,963 new ordinary shares to Bergen in relation to the first tranche payment.

4.   RESERVES

A detailed breakdown of the reserves of the Group is as follows:

 

 

 

Merger reserve

Equity benefits reserve

Foreign currency translation

Total

Consolidated

$'000

$'000

$'000

$'000

 

 

 

 

 

As at 1 July 2016

Currency translation differences

-

-

(109)

(109)

Share based payments

-

124

-

124

 

 

 

 

 

Currency translation differences

-

-

44

44

Share based payments

-

23

-

23

 

 

 

 

5.   EARNINGS/(LOSS) PER SHARE

 

The following reflects the income and share data used in the total operations basic and diluted earnings/(loss) per share computations:

 

 

 

 

CONSOLIDATED

 

 

30 Jun

2017

30 Jun

2016

Basic earnings/(loss) per share

 

 

 

Total basic earnings/(loss) per share (US$ cents per share) (note a)

(0.87)

0.03

 

 

 

 

 

Diluted earnings/(loss) per share

 

 

 

Total diluted earnings/(loss) per share (US$ cents per share) (note b)

(0.87)

0.03

 

 

 

 

 

(a)  Basic earnings/(loss) per share

 

 

 

The profit/(loss) and weighted average number of ordinary shares used in the calculation of basic loss per share are as follows:

 

 

 

 

 

 

 

 

 

 

Net profit/(loss) attributable to ordinary shareholders (US$'000)

(2,518)

93

 

 

 

 

 

Weighted average number of ordinary shares for the purposes of basic earnings per share ('000)

 

 

 

290,268

287,495

 

 

 

 

 

(b)  Diluted earnings/(loss) per share

 

 

 

The profit/(loss) and weighted average number of ordinary shares used in the calculation of diluted earnings per share are as follows:

 

 

 

 

 

 

 

 

 

 

Net profit/(loss) attributable to ordinary shareholders (US$'000)

(2,518)

93

 

 

 

 

 

Weighted average number of ordinary shares for the purposes of basic earnings per share ('000)

 

 

 

290,268

287,495

 

             

 

Share Options and Conditional Share Awards could potentially dilute basic loss per share in the future, however they have been excluded from the calculation of diluted loss per share because they are anti-dilutive for both years presented.

 

6.   EVENTS AFTER THE REPORTING DATE

 

On 18 July 2017, the Company issued 13,389,719 new ordinary shares to Bergen in relation to the second tranche payment.

 

On 15 August 2017, the Company amended its financing agreement with Bergen Global Opportunity Fund, LP (Bergen), to enable the issuance of a Convertible Note to Bergen for $1.5 million. The amendment also postponed future tranches under the Bergen agreement until 15 October 2017.

 

On 16 August 2017, the Company received $1,500,000 from Bergen for the issue of a convertible note.

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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