TIDMMXO
RNS Number : 4999J
MX Oil PLC
29 June 2017
MX Oil / Ticker: MXO / Index: AIM / Sector: Oil & Gas
29 June 2017
MX Oil plc ("MX Oil" or the "Company")
Final Results for the Year Ended 31 December 2016 and
Notice of AGM
MX Oil plc, the AIM quoted oil and gas investing company,
announces its final results for the year ended 31 December
2016.
The Company will today post its Report and Accounts for the year
ended 31 December 2016 ("Report and Accounts") to all shareholders
together with a Notice of Annual General Meeting which will be held
at the offices of Adams & Remers LLP, Quadrant House, 55-58
Pall Mall, London SW1Y 5JH on Monday 24 July 2017 at 11:30 a.m.
This announcement contains an extract of the Report and
Accounts. A complete version of the Report and Account, which
should be read in full, together with the Notice of Annual General
Meeting will shortly be available from the Company's website
www.mxoil.co.uk.
Enquiries:
MX Oil PLC +44 20 7571
Stefan Olivier, CEO 0473
Cairn Financial Advisers LLP
(Nominated Adviser) +44 20 7213
Jo Turner/James Caithie 0880
Cornhill Capital
(Broker) +44 20 7710
Nick Bealer 9612
Extract of the Report and Accounts
Chairman's Statement
Introduction
During the year, MX Oil plc has continued to pursue its strategy
as an oil and gas investing company. The Group is now focused
principally on its investment in Nigeria having, for the time
being, decided not to proceed any further with its interests in
Mexico.
Review of activities
In July 2015, the Group indirectly invested into a non-operated
5% revenue interest in OML 113, offshore Nigeria which includes the
Aje Field. Two wells, Aje 4 and Aje 5, have now been drilled and,
in May 2016, oil production commenced. Aje-4, the first well to go
into production, has continued to produce since the date of first
production. After an initial period of decline, associated with
rising water, production has now stabilised. As previously
announced, production from Aje-5 has been limited and has required
subsurface intervention. This intervention is now completed and
this well will be recommencing production.
The Group has, to date, been investing indirectly into OML 113
through Jacka Resources Nigeria Holdings Limited ("JRNH"), a wholly
owned subsidiary of Jacka Resources Limited ("Jacka"). JRNH owns
100% of PR Oil and Gas Limited, the holder of the interest in OML
113. In August 2016, the Board decided to implement the final stage
of its investment process by exercising its right to take full
control of this investment through the acquisition of JRNH, for a
nominal sum, from Jacka.
The Aje Field is believed to hold significant resources of gas
and so in terms of next steps, the partnership has been progressing
the field development plan for the development of the gas and has
also held discussions with various potential gas off-takers. The
partners in the Aje Field are therefore currently considering
whether it would be more appropriate for the next stage of the
field development to focus on gas production rather than drilling
additional oil wells. It is expected that a CPR will be updated
shortly with a focus on the gas using the new data obtained from
the recent operational work on Aje 5. Previously, it was
anticipated that a further well, Aje 6, would be drilled in the
short term to increase oil production from the field, however,
until the partners have concluded as to the most appropriate next
steps, the drilling of this well will be deferred.
Also during 2016, the Group announced that it had signed a
non-binding memorandum of understanding ("MOU") with the Government
of Grenada with regard to making an investment in the exploration
and development of hydrocarbons in a subterranean area adjoining
the maritime boundary with Trinidad and Tobago. The area covered by
the MOU includes underexplored prospective Grenada Tobago Basin
acreage adjacent to the Venezuelan/Trinidadian Patao - Poinsettia
gas trend. The MOU will form the basis for the negotiation of a
more detailed Production Sharing Agreement ("PSA") which, if
signed, is likely to occur during 2017. It is expected that the PSA
will cover matters including, but not limited to, tenure and work
programme including 2D seismic and, subject to these results
proving encouraging, further exploratory phases including 3D
seismic data acquisition.
Management
During the year, the board has been further strengthened by the
appointment of Richard Carter as a non-executive director.
Financing
During 2016, the Group has raised over GBP7 million. These funds
have principally been used to complete the financing of the Group's
share of expenditure in connection with the Aje Field and for
general working capital purposes.
Outlook
The Group has made good progress and has an investment in an oil
and gas licence which has now commenced production. The Group is
also actively reviewing other interesting investment opportunities
that could create additional value for shareholders going
forward.
Nicholas Lee
Non-executive Chairman
Group Income Statement
For the year ended 31 December 2016
2016 2015
GBP'000 GBP'000
Continuing operations
Revenue 1,571 -
Administrative expenses (2,311) (1,233)
Share based payment expense (146) (400)
Operating loss (886) (1,633)
Joint venture losses - (806)
Investment income - 1
Other gains and losses (54) (450)
Finance costs (396) (11)
loss on ordinary activities
before taxation (1,336) (2,899)
Taxation - -
Loss for the year (1,336) (2,899)
--------------------------------------- -------- --------
Basic and diluted loss per
share:
From continuing and total operations (0.14)p (1.02)p
Group and Company Statement of Financial Position
As at 31 December 2016
GROUP COMPANY
2016 2015 2016 2015
GBP'000 GBP'000 GBP'000 GBP'000
----------------------------- --------- --------- --------- ---------
NON-CURRENT ASSETS
Development costs 14,461 - - -
Available for sale
investments - 8,532 - 8,532
Investment in subsidiaries - - 11,554 -
14,461 8,532 11,554 8,532
----------------------------- --------- --------- --------- ---------
CURRENT ASSETS
Investments held for
trading - 39 - 39
Trade and other receivables 199 371 66 371
Cash and cash equivalents 334 224 334 224
533 634 400 634
----------------------------- --------- --------- --------- ---------
CURRENT LIABILITIES
Trade and other payables 2,156 310 674 310
Borrowings 584 1,158 584 1,158
2,740 1,468 1,258 1,468
----------------------------- --------- --------- --------- ---------
NET CURRENT LIABILITIES (2,207) (834) (858) (834)
------------------------------ --------- --------- --------- ---------
NON-CURRENT LIABILITIES
Deferred consideration - 677 - 677
------------------------------ --------- --------- --------- ---------
- 677 - 677
NET ASSETS 12,254 7,021 10,696 7,021
------------------------------ --------- --------- --------- ---------
EQUITY
Share capital 8,336 7,659 8,336 7,659
Share premium 25,460 19,714 25,460 19,714
Loan note equity reserve - 31 - 31
Reserve for options
granted 172 172 172 172
Reserve for warrants
issued 783 637 783 637
Retained deficit (22,497) (21,192) (24,055) (21,192)
------------------------------ --------- --------- --------- ---------
Equity attributable
to owners of the Company
and total equity 12,254 7,021 10,696 7,021
------------------------------ --------- --------- --------- ---------
Group Statement of Changes in Equity
For the year ended 31 December 2016
Loan
note Reserve for
Share Share equity Reserve for warrants Retained Total
capital premium reserve options granted issued deficit equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------------- -------- -------- -------- ---------------- ----------- -------- -------
At 1 January
2015 5,879 13,967 - 172 237 (18,293) 1,962
Loss for the
year and total
comprehensive
expense - - - - - (2,899) (2,899)
--------------------- -------- -------- -------- ---------------- ----------- -------- -------
Issue of new
shares 1,780 6,185 - - - - 7,965
Share issue costs - (438) - - - - (438)
Issue of warrants - - - - 400 - 400
Issue of convertible
loan notes - - 31 - - - 31
At 31 December
2015 7,659 19,714 31 172 637 (21,192) 7,021
Loss for the
period and total
comprehensive
income - - - - - (1,336) (1,336)
--------------------- -------- -------- -------- ---------------- ----------- -------- -------
Issue of new
shares 677 6,321 - - - - 6,998
Share issue costs - (575) - - - - (523)
Issue of warrants - - - - 146 - 146
Redemption and
conversion of
loan notes - - (31) - - 31 -
At 31 December
2016 8,336 25,460 - 172 783 (22,497) 12,254
--------------------- -------- -------- -------- ---------------- ----------- -------- -------
Group and Company Statements of Cash Flows
For the year ended 31 December 2016
GROUP COMPANY
2016 2015 2016 2015
GBP'000 GBP'000 GBP'000 GBP'000
------------------------------- -------- -------- -------- --------
OPERATING ACTIVITIES
Loss for the period (1,336) (2,899) (2,894) (2,899)
Adjustments for:
Share based payment expense 146 400 146 400
Loss/(gain) on disposal
of investments 54 16 12 16
Movement in fair value
of quoted investments - 79 - 79
Joint venture expenses - - - 902
Provision for amount
due from joint venture
partner - - - 374
Investment income - (1) - (103)
Finance costs 396 11 368 11
Foreign exchange movement
in liabilities 108 37 108 37
Impairment of joint venture
investment - - - 6
-------------------------------- -------- -------- -------- --------
Operating cashflow before
working capital changes (632) (2,357) (2,190) (1,177)
Decrease/(increase) in
receivables 172 (79) 305 (347)
Increase/(decrease) in
trade and other payables (380) 246 (392) 246
-------------------------------- -------- -------- -------- --------
Net cash outflow from
operating activities (840) (2,190) (2,277) (1,278)
-------------------------------- -------- -------- -------- --------
INVESTMENT ACTIVITIES
Proceeds from disposal
of investments 72 227 72 227
Purchase of investments
held for trading (87) (147) (87) (147)
Development costs (4,459) - - -
Investment in Nigerian
asset - (5,940) - (5,940)
Loans to subsidiary operation - - (3,022) -
Advances to joint venture
operation - - - (912)
Investment income - 1 - 1
-------------------------------- -------- -------- -------- --------
Net cash outflow from
investment activities (4,474) (5,859) (3,037) (6,771)
-------------------------------- -------- -------- -------- --------
FINANCING ACTIVITIES
Continuing operations:
Issue of ordinary share
capital 6,666 6,013 6,666 6,013
Share issue costs (575) (438) (575) (438)
Net proceeds from short
term borrowings 1,098 1,178 1,098 1,178
Repayment of short term
borrowings (1,676) - (1,676) -
Finance costs paid (89) - (89) -
-------------------------------- -------- -------- -------- --------
Net cash inflow from
financing activities 5,424 6,753 5,424 6,753
-------------------------------- -------- -------- -------- --------
Net increase/(decrease)
in cash and cash equivalents
from continuing and total
operations 110 (1,296) 110 (1,296)
Cash and cash equivalents
at beginning of period 224 1,520 224 1,520
Cash and cash equivalents
at end of period 334 224 334 224
-------------------------------- -------- -------- -------- --------
Notes
1. General Information
The Company is a public limited company incorporated in the
United Kingdom and its shares are listed on the AIM market of the
London Stock Exchange.
The Company is an investing company, mainly investing in natural
resources, minerals, metals, and oil and gas projects.
The above information is an extract from the Report and
Accounts, which should be read in full together with the
accompanying notes.
2. Principal Accounting Policies
The principal accounting policies adopted in the preparation of
these financial statements are set out below. These policies have
been consistently applied throughout all periods presented in the
financial statements.
As in prior periods, the Group financial statements have been
prepared in accordance with International Financial Reporting
Standards (IFRS) as adopted by the European Union. The financial
statements have been prepared using the measurement bases specified
by IFRS for each type of asset, liability, income and expense. The
measurement bases are more fully described in the accounting
policies below.
The current period covered by these financial statements is the
year to 31 December 2016. The comparative figures relate to the
year ended 31 December 2015.
The financial statements are presented in pounds sterling (GBP)
which is the functional currency of the Group.
An overview of standards, amendments and interpretations to
IFRSs issued but not yet effective, and which have not been adopted
early by the Group are presented below under 'Statement of
Compliance'.
Going Concern
The Group has cash balances at the period end of GBP334,000 and
since the year end, the Group has raised GBP5 million of new
funding. Furthermore, the Directors have prepared cash flow
forecasts through to 30 September 2017 which demonstrate that the
Group is able to meet its liabilities as they fall due. On this
basis, the Directors have a reasonable expectation that the Group
has adequate resources to continue operating for the foreseeable
future. For this reason they continue to adopt the going concern
basis in preparing the Group's financial statements.
3. Earnings Per Share
The basic and diluted earnings per share is
calculated by dividing the loss attributable
to owners of the Group by the weighted average
number of ordinary shares in issue during the
year.
2016 2015
GBP'000 GBP'000
-------------------------------- ------------ ------------
Loss attributable to owners
of the Group
- Continuing operations (1,336) (2,899)
Continuing and discontinued
operations (1,336) (2,899)
--------------------------------- ------------ ------------
2016 2015
-------------------------------- ------------ ------------
Weighted average number
of shares for calculating
basic and fully diluted
earnings per share 921,886,563 283,826,937
--------------------------------- ------------ ------------
2016 2015
pence pence
-------------------------------- ------------ ------------
Earnings per share:
Loss per share from continuing
and total operations (0.14) (1.02)
--------------------------------- ------------ ------------
The weighted average number of shares used for calculating the
diluted loss per share for 2015 and 2016 was the same as that used
for calculating the basic loss per share as the effect of exercise
of the outstanding share options was anti-dilutive.
4. Posting of Accounts and Notice of AGM
The Company will today post its Report and Accounts for the year
ended 31 December 2016 to all shareholders together with a Notice
of Annual General Meeting ("AGM").
The AGM will be held at the offices of Adams & Remers LLP,
Quadrant House, 55-58 Pall Mall, London SW1Y 5JH on Monday 24 July
2017 at 11:30 a.m.
A full copy of the Annual Report and the Notice of AGM will
shortly be available from the Company's website
www.mxoil.co.uk.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR UWABRBKANUAR
(END) Dow Jones Newswires
June 29, 2017 02:00 ET (06:00 GMT)
Adm Energy (LSE:ADME)
Historical Stock Chart
From Apr 2024 to May 2024
Adm Energy (LSE:ADME)
Historical Stock Chart
From May 2023 to May 2024