TIDMMXO
RNS Number : 6186K
MX Oil PLC
23 September 2016
23 September 2016
MX OIL PLC
("MX Oil" or the "Company")
Results for the half year to 31 June 2016
MX Oil plc, the AIM quoted oil and gas investing company, is
pleased to announce its unaudited half-year results for the
six-month period to 30 June 2016.
Key points
-- Aje Field, part of OML 113, commenced production in May 2016
-- Next phase of the Aje Field expansion being developed
-- Over GBP7 million of new funding raised before expenses
-- Repayment of loan notes to reduce gearing to a negligible level
-- Strengthening of the management team
MX Oil's Chief Executive Officer Stefan Olivier said:
"With the Aje Field commencing production, the year to date has
been an exciting period for the Company. We continue to look at
opportunities in Mexico whilst, at the same time, further
opportunities are now presenting themselves in other parts of the
world. We are delivering on our objective to build a leading oil
and gas investing company and I look forward to providing further
updates on our progress."
Chairman's statement
During 2016, MX Oil's indirect investment in the OML 113 licence
in Nigeria achieved an important milestone with the start of
production from the Aje Field. Consequently, MX Oil now has an
investment in a producing oil and gas asset and we are very much
looking forward to receiving revenue from this investment in the
short term. As previously announced, the Company agreed to acquire
the company that indirectly holds the interest in OML 113 and has
begun the notification and change of control process with the
relevant authorities.
At the start of this year, we were pleased to have been awarded
four licences in the bid rounds for certain Mexican onshore
licences. It was disappointing, for the various reasons previously
outlined, that we were not ultimately able to secure a licence or
sell our interests. We have, however, gained invaluable experience
from this exercise and maintain our belief that Mexico will provide
some interesting opportunities in the future and we continue to
monitor developments closely.
More generally, we are pleased to report that we are seeing an
increasing number of interesting investment opportunities and hope
to be able to update the market on these if and when they come to
fruition.
In the first half of the year, we raised over GBP7 million
through the issue of both new equity and debt, principally to
invest in OML 113 as it progressed towards production. The loan
notes which were raised earlier in the year have now either been
repaid or converted, reducing the Company's gearing to a negligible
level. As part of our fund raising activities, we are pleased to
welcome a number of new investors as shareholders in the
Company.
We are also pleased that we have been able to strengthen the
board with both technical and strategic skills which will stand us
in good stead going forward.
During the first six months of 2016, the Company made a total
comprehensive loss of GBP1,831,000 (2015: GBP718,000). This
increase in the level of losses compared to the previous year is
principally due to the increased level of activity at the Company
during this period compared to the same period last year. The most
significant areas of cost included our activities in Mexico and the
costs of fund raising, along with associated professional fees,
given the Company's requirement to raise significant new funds for
investment. Employee and related costs have also increased as the
board has been strengthened and the Company's infrastructure has
been further developed to support these increased levels of
activity.
As 2016 progresses, we are looking forward to further
developments at the Aje Field and to getting involved in other
exciting investment opportunities as they arise.
Nicholas Lee
Chairman
23 September 2016
* *S * *
For further information please visit www.mxoil.co.uk or
contact:
MX Oil PLC
Stefan Olivier, CEO +44 20 7710 9618
Cairn Financial Advisers
LLP
(Nominated Adviser)
Jo Turner/James Caithie +44 20 7148 7900
Cornhill Capital
(Broker)
Nick Bealer +44 20 7710 9612
UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHSED 30 JUNE 2016
Unaudited Unaudited
6 months 6 months Audited
ended ended Year ended
30 June 30 June 31 December
2016 2015 2015
Notes GBP'000 GBP'000 GBP'000
Continuing operations
Administrative expenses (1,362) (455) (1,233)
Share based payment
expense (129) - (400)
Operating loss (1,491) (455) (1,633)
Share of joint venture
losses - (247) (806)
Investment income - 38 1
Other gains and losses 2 (69) (54) (450)
Finance costs (271) - (11)
Loss on ordinary activities
before taxation (1,831) (718) (2,899)
Taxation - - -
Loss for the period
and total comprehensive
loss (1,831) (718) (2,899)
----------------------------- ------ ------------- ------------- -------------
Basic and diluted loss
per share 3
From continuing and
total operations (0.26)p (0.36)p (1.02)p
----------------------------- ------ ------------- ------------- -------------
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHSED 30 JUNE 2016
Loan note Reserve for
Share equity reserve Reserve for warrants Retained Total
Share capital premium options granted issued deficit equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------ --------------- -------- --------------- ---------------- ----------- -------- -------
At 31 December
2014 5,879 13,967 - 172 237 (18,293) 1,962
Loss for the year - - - - - (2,899) (2,899)
------------------------ --------------- -------- --------------- ---------------- ----------- -------- -------
Issue of new shares 1,780 6,185 - - - - 3,050
Share issue costs - (438) - - - - (219)
Issue of warrants - - - - 400 - 237
Issue of convertible
loan notes - - 31 - - - 237
At 31 December
2015 7,659 19,714 31 172 637 (21,192) 7,021
Loss for the period - - - - - (1,831) (1,831)
------------------------ --------------- -------- --------------- ---------------- ----------- -------- -------
Issue of new shares 675 5,992 - - - - 6,667
Share issue costs - (523) - - - - (523)
Conversion and
repayment of
convertible
loan notes 3 329 (28) - - - 304
Issue of warrants - - - - 129 - 129
At 30 June 2016 8,337 25,512 3 172 766 (23,023) 11,767
------------------------ --------------- -------- --------------- ---------------- ----------- -------- -------
UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2016
Unaudited Unaudited
6 months 6 months Audited
ended ended Year ended
30 June 30 June 31 December
2016 2015 2015
GBP'000 GBP'000 GBP'000
---------------------------------- ---------------------- -------------------------- -----------------------
NON-CURRENT ASSETS
Available for sale investments 11,567 - 8,532
Investment in joint venture - 422 -
11,567 422 8,532
---------------------------------- ---------------------- -------------------------- -----------------------
CURRENT ASSETS
Financial assets 22 60 39
Trade and other receivables 188 20 371
Cash and cash equivalents 638 800 224
848 880 634
---------------------------------- ---------------------- -------------------------- -----------------------
CURRENT LIABILITIES
Trade and other payables 519 58 310
Borrowings 129 - 1,158
648 58 1,468
---------------------------------- ---------------------- -------------------------- -----------------------
NET CURRENT ASSETS/(LIABILITIES) 200 822 (834)
NONDEFERRED LIABILITIES
Deferred consideration - - 677
----------------------------------- ---------------------- -------------------------- -----------------------
- - 677
---------------------------------- ---------------------- -------------------------- -----------------------
NET ASSETS 11,767 1,244 7,021
----------------------------------- ---------------------- -------------------------- -----------------------
EQUITY
Ordinary share capital 8,337 5,879 7,659
Share premium 25,512 13,967 19,714
Loan note equity reserve 3 - 31
Reserve for options granted 172 172 172
Reserve for warrants issued 766 237 637
Retained deficit (23,023) (19,011) (21,192)
----------------------------------- ---------------------- -------------------------- -----------------------
Equity attributable to
owners of the Company and
total equity 11,767 1,244 7,021
----------------------------------- ---------------------- -------------------------- -----------------------
UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHSED 30 JUNE 2016
Unaudited Unaudited
6 months 6 months Audited
ended ended Year ended
30 June 30 June 31 December
2016 2015 2015
GBP'000 GBP'000 GBP'000
-------------------------------- -------------------------- ------------------------- --------------------------
OPERATING ACTIVITIES
Loss for the period (1,831) (718) (2,899)
Adjustments for:
Share based payment expense 129 - 400
Loss/(profit) on disposal
of investments 52 17 16
Movement in fair value of
investments 17 57 79
Share of joint venture losses - 247 -
Investment income - (38) (1)
Finance costs 271 11
Foreign exchange movement
in respect of deferred
liability 50 - 37
Impairment of joint venture
investment - - -
Operating cash flow before
working capital changes (1,312) (435) (2,357)
Decrease/(increase) in
receivables 183 4 (79)
(Decrease)/increase in trade
and other payables (518) (12) 246
--------------------------------- -------------------------- ------------------------- --------------------------
Net cash outflow from operating
activities (1,647) (443) (2,190)
--------------------------------- -------------------------- ------------------------- --------------------------
INVESTMENT ACTIVITIES
Proceeds on disposal of
investments 35 227 227
Purchase of investments (87) (147) (147)
Investment in Nigerian asset (3,035) - (5,940)
Advances to joint venture
operation - (357) -
Investment income - - 1
--------------------------------- -------------------------- ------------------------- --------------------------
Net cash outflow from investment
activities (3,087) (277) (5,859)
--------------------------------- -------------------------- ------------------------- --------------------------
FINANCING ACTIVITIES
Issue of ordinary share capital 6,668 - 6,013
Share issue costs (523) - (438)
Net proceeds of issue of
convertible loan notes 536 - 1,178
Repayment of convertible
loan notes (1,457) - -
Finance costs paid (76) - -
Net cash inflow from financing
activities 5,148 - 6,753
--------------------------------- -------------------------- ------------------------- --------------------------
Net increase/(decrease) in
cash and cash equivalents
from continuing and total
operations 414 (720) (1,296)
Cash and cash equivalents
at beginning of period 224 1,520 1,520
Cash and cash equivalents
at end of period 638 800 224
--------------------------------- -------------------------- ------------------------- --------------------------
NOTES TO THE HALF-YEARLY REPORT
1. The financial information set out in this interim report does
not constitute statutory accounts as defined in section 434 of the
Companies Act 2006. The group's statutory financial statements for
the period ended 31 December 2015, prepared under International
Financial Reporting Standards (IFRS), have been filed with the
Registrar of Companies. The auditor's report on those financial
statements was unqualified and did not contain a statement under
section 498 (2) or (3) of the Companies Act 2006.
The interim financial information has been prepared in
accordance with the recognition and measurement principles of
International Financial Reporting Standards (IFRS) and on the same
basis and using the same accounting policies as used in the
financial statements for the year ended 31 December 2015. The
interim financial statements have not been audited or reviewed in
accordance with the International Standard on Review Engagement
2410 issued by the Auditing Practices Board.
The financial statements have been prepared on a going concern
basis under the historical cost convention. The Directors believe
that the going concern basis is appropriate for the preparation of
the financial statements as the Company is in a position to meet
all its liabilities as they fall due.
2. Other gains and losses
Six months
Six months Year ended
ended ended
30 June 30 June 31 December
2015 2015 2015
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
---------------------------------------------- ------------ ------------- -------------------
Net (losses)/gains investments (52) (74) 12
Net loss on derivative contracts - 20 20
Movement in fair value of trading investments (17) - (108)
Provision for amount owed by Mexican partner - - (374)
(69) (54) (450)
---------------------------------------------- ------------ ------------- -------------------
3. The basic loss per share is calculated by dividing the loss
attributable to equity shareholders by the weighted average number
of shares in issue.
Six months Six months Year ended
ended ended
30 June 30 June 31 December
2016 2015 2015
(unaudited) (unaudited) (audited)
----------------------------------- -------------------- ------------------ --------------------
Weighted average number of
shares in the period 700,222,402 201,332,190 283,826,937
----------------------------------- -------------------- ------------------ --------------------
Loss from continuing and
total operations (GBP1,831,000) (GBP718,000) (GBP2,899,000)
Basic and diluted loss per
share:
From continuing and total
operations (0.26)p (0.36)p (1.02)p
4. No interim dividend will be paid.
5. Copies of the interim report can be obtained from: The
Company Secretary, MX Oil plc, 17(th) Floor, 110 Bishopsgate,
London, EC2N 4AY and are available to view and download from the
Company's website: www.mxoil.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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