TIDMTOM
RNS Number : 5767R
TomCo Energy PLC
30 June 2020
30 June 2020
TomCo Energy plc
("TomCo" or the "Company" or the "Group")
Unaudited interim results for the six-month period ended 31
March 2020
TomCo Energy plc (AIM: TOM), the oil exploration and development
company focused on using innovative technology to unlock
unconventional hydrocarbon resources, announces its unaudited
interim results for the six-month period ended 31 March 2020.
HIGHLIGHTS
-- Engagement with Valkor LLC ("Valkor") to produce a Pre-FEED
study to demonstrate the economic viability of Petroteq Energy
Inc's ("Petroteq") oil sands separation process.
-- Post period end, entered into a joint venture agreement with
Valkor for the establishment of Greenfield Energy LLC
("Greenfield") to develop, subject to funding, the Petroteq test
plant into a pre-commercial plant, to seek to verify the design for
a commercial scale (10,000 bopd) plant.
-- Board re-organisation with Andrew Jones stepping down and
Stephen West joining as Non-Executive Chairman.
John Potter, TomCo's Chief Executive Officer, said: "The
establishment of the JV with Valkor to form Greenfield, post the
period end, is a major step in us seeking to prove the commercial
scale potential of Petroteq's oil sands separation process. Valkor
has developed a detailed understanding of the process requirements
and the Board is confident that, subject to funding, the upgrades
to the Petroteq test plant and the resulting FEED will confirm our
expectations that a commercial scale plant is financially
viable."
Enquiries:
For further information, please visit www.tomcoenergy.com or
contact:
TomCo Energy plc +44 (0)20 3823 3635
John Potter (CEO)
Stephen West (Chairman)
Strand Hanson (Nominated Adviser) +44 (0)20 7409 3494
James Harris / Richard Tulloch / Jack Botros
Turner Pope (Broker) +44 (0)20 3657 0050
Andy Thacker / Zoe Alexander
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014.
DIRECTORS' REPORT
Operational
With the continuing global disruption to travel from Covid-19,
the Group's operations on its Holliday A Block, including in
respect of TurboShale's RF technology, have been postponed for the
rest of 2020. A decision on the next steps of the TurboShale
technology development will be made towards the end of 2020.
The Company has continued to explore other opportunities for its
oil shale leases within the Uinta Basin, Utah, (the "Leases") which
resulted in the Company being introduced to Valkor LLC ("Valkor"),
an international engineering, procurement, construction and
installation and field operations company, with operations in the
US, South America and Africa both on and offshore and the owner and
operator of gas and oil fields in Trinidad, USA, Turkey and the
Ukraine, in September 2019.
In December 2019, the Company entered into a memorandum of
understanding ("MoU") with Valkor, alongside a placing to raise
GBP925,000 (gross), to explore the potential to develop a joint
venture ("JV") for the development of a commercial scale oil sands
separation plant on one of the Company's existing leases using
Petroteq Energy Inc's ("Petroteq") closed loop system for use in
the recovery of oil from oil sands (the "Oil Sands Technology").
The Company believes that Valkor has a good understanding of the
Oil Sands Technology, having assisted Petroteq with the design
improvements for its closed loop system for use in the recovery of
oil from oil sands.
Subsequent to entering into the MoU, the Company undertook a
study of the potential to deploy the Oil Sands Technology at a
suitable location across its Leases. The desktop study of the
Leases determined that, while oil sands were present at depth, more
suitable sites with near surface oil sands were identified in the
vicinity of the Leases and these will be the focus of the parties
going forward.
On 19 March 2020, the Company and Valkor announced that they had
agreed to enter into a binding exclusivity agreement ("Exclusivity
Agreement") to continue discussions regarding forming a JV to,
inter alia, explore the potential to deploy the Oil Sands
Technology at a suitable location. The parties also agreed to
undertake a Pre-FEED study, to be undertaken by Valkor and verified
by a third party, to demonstrate the economic viability of the Oil
Sands Technology, with a gross budget of US$250,000 to be funded
equally by the parties and if the results of the study were
sufficiently favourable, the Company expected to form a JV with
Valkor.
Following the period end and receipt of the draft Pre-FEED study
, which provided sufficient comfort to the TomCo Board to form a
JV, the Company was pleased to enter into a joint venture agreement
with Valkor (the "JV Agreement") in June 2020, to establish
Greenfield Energy LLC ("Greenfield"), that will seek to pursue the
development of a plant utilising the Oil Sands Technology at a
location yet to be determined in Utah, USA.
Under the terms of the JV Agreement, Greenfield will be equally
owned by TomCo and Valkor, with the Company providing funding to
Greenfield, subject to having such funds available and being
satisfied as to the use of such funds, of up to US$1.5 million, to
enable Greenfield to be able to complete, inter alia, the required
upgrades to Petroteq's existing oil sands plant at Asphalt Ridge,
Utah (the "POSP"), and to undertake the proposed test programme as
detailed below, together with funding TomCo's contribution to the
FEED. Pursuant to the JV Agreement, Valkor will provide, to
Greenfield, the services for the completion of the pre-FEED and the
FEED up to a value of US$375,000, along with their management and
operating experience and any other information and other valuable
resources owned by and/or controlled by Valkor. Accordingly, until
such time as TomCo has secured sufficient funding to finance its
contribution to Greenfield, Greenfield will not be in a position to
materially advance operations at the POSP, which includes making
the required upgrades and being able to undertake the proposed work
programme, or complete the FEED .
Under the JV Agreement, Valkor has granted a licence to
Greenfield, for the use on all future plants that are majority
owned and operated by Greenfield in Utah, to its existing
Intellectual Property ("IP") and knowhow for the processing of oil
sands into heavy fuel oil. All modifications and improvements to
the IP developed by Greenfield, including in relation to the
upgrade of the POSP, will belong to Greenfield, which the Board of
TomCo believes will allow Greenfield to develop its own oil sands
plant, subject, inter alia, to identifying a suitable location.
Greenfield will seek to identify and secure suitable locations in
Utah for a commercial scale (up to 10,000 barrels of oil per day
("bopd") ) oil sands plant.
In respect of the POSP, Valkor has entered into an agreement
with Petroteq (the "Work Order"), for Valkor to take over the
management and operations of the POSP. Pursuant to the JV
Agreement, the Work Order will be assigned to Greenfield, and
Valkor, as part of its contribution to Greenfield, will undertake
the works described in the Work Order, and Greenfield will, subject
to funding being provided by TomCo, undertake certain upgrades to
the POSP and run associated tests to demonstrate the POSP's
commerciality.
In addition, Valkor has entered into a new lease, effective from
1 July 2020, for a primary term of 12 months, with the landlord of
the POSP site, which will allow Valkor access to the land to be
able to operate the POSP to undertake the necessary upgrades and
tests as well as to mine for feedstock for the POSP. Pursuant to
the lease, in addition to a monthly rent, the landlord will be
entitled to certain royalty payments in respect of any commercial
produce from the POSP and/or associated operations. Valkor has
granted Greenfield the right to occupy the site to complete the
upgrade works and operations of the POSP proposed under the Work
Order.
The proposed upgrade to the POSP will, subject to agreement
being reached with Quadrise Fuels International plc ("Quadrise"),
include a commercial trial of Quadrise's MSAR(R) Technology at the
POSP.
Quadrise has confirmed that it has agreed in principle with
Valkor to the deployment of MSAR(R) trial equipment for the
commercial trial at the POSP for a price of up to US$150,000, which
has been taken into account in Greenfield's budget for the proposed
work programme. Quadrise has confirmed that it will continue to
work in good faith to finalise the process design and a trial
agreement for commercial trial with Valkor, including the terms of
the scope and timing of the trial.
In parallel with the commercial trial, Quadrise and Valkor
continue to cooperate in good faith to agree the commercial terms
of a conditional MSAR(R) licence and commercial supply agreement
for the production of MSAR(R) fuel in respect of the development of
a commercial MSAR (R) plant of up to 10,000 bopd. Quadrise has
agreed with Valkor that any licence ultimately granted to Valkor
under the terms of their memorandum of understanding, will be
limited to the deployment of the MSAR(R) Technology in Utah, USA,
in connection with the processing of sweet heavy or paraffinic
crude oil and will be capable of being assigned to Valkor group
joint ventures, including Greenfield, in the future.
A conditional licence will only be finalised upon and following,
inter alia, satisfactory results of the commercial trial, the
agreement between the parties as to commercial terms for the
development of a commercial MSAR(R) plant of up to 10,000 bopd and
the entry of binding agreements.
The Company announced a GBP1.5 million placing alongside the JV
Agreement, which was subsequently terminated as announced on 19
June 2020. As set out above, in order to advance Greenfield and the
planned upgrade and works programme at the POSP, TomCo will need to
raise further funds.
Board changes
Andrew Jones stepped down as Executive Chairman in March 2020 to
pursue other opportunities and I was pleased to step into the role
of Non-Executive Chairman. On behalf of the Board, I would like to
thank Andrew for his hard work as Executive Chairman over the last
five years and the integral role he played in the development of
the Company and wish him all the best with his future
endeavours.
Following my appointment as a Non-executive Director in February
2020, I subsequently became Non-executive Chairman following Andrew
stepping down.
Funding
During the period we raised GBP925,000 (gross) via a placing in
December 2019, through the issue of 142,307,692 new ordinary shares
at a price of 0.65 pence per share, with the net proceeds being
used to provide general working capital and to undertake the
engineering studies in respect of the oil sands opportunity.
As at 29 June 2020, TomCo had approximately GBP340,000 of cash
available to it. Prior to the cost of any works to be undertaken
under the JV Agreement and associated upgrades to the POSP, which
are yet to be agreed, the Board believes the Group has sufficient
funds through to the end of 2020, when it will need to raise
further funding in order to meet its liabilities and commitments as
they fall due as well as to provide additional working capital for
the Group.
The Company continues to require further funding in order to
fund, inter alia, its contribution of US$1.5 million to Greenfield
pursuant to the JV Agreement. Until such funds have been secured,
Greenfield will not be in a position to materially advance
operations at the POSP, which includes making the required upgrades
and being able to undertake the proposed work programme.
We thank shareholders for their continued support, and we look
forward to keeping shareholders updated on progress as we work
towards securing funds to be able to advance the upgrades to the
POSP and associated tests pursuant to the JV Agreement and Work
Order.
Stephen West
Non-Executive Chairman
Condensed consolidated statement of comprehensive income
For the six-month period ended 31 March 2020
Unaudited Unaudited Audited
Six months Six months Year ended
ended ended 30 September
31 March 31 March
2020 2019 2019
Notes GBP'000 GBP'000 GBP'000
----------------------------------------- ----- ----------- ----------- -------------
Revenue - - -
----------------------------------------- ----- ----------- ----------- -------------
Cost of sales - - -
----------------------------------------- ----- ----------- ----------- -------------
Gross profit/(loss) - - -
Administrative expenses 3 (377) (519) (778)
----------------------------------------- ----- ----------- ----------- -------------
Operating loss (377) (519) (778)
Finance income/(costs) 1 (5) (4)
----------------------------------------- ----- ----------- ----------- -------------
Loss on ordinary activities before
taxation (376) (524) (782)
Taxation - - -
----------------------------------------- ----- ----------- ----------- -------------
Loss from continuing operations (376) (524) (782)
Loss for the period/year attributable
to:
Equity shareholders of the parent (355) (459) (749)
Non-controlling interests (21) (65) (33)
----------------------------------------- ----- ----------- ----------- -------------
(376) (524) (782)
----------------------------------------- ----- ----------- ----------- -------------
Items that may be reclassified subsequently to
profit or loss
Exchange differences on translation
of foreign operations (107) (24) 408
Items that will not be reclassified subsequently
to profit or loss
Fair value gain on non-derivative
equity instrument - 2 2
----------------------------------------- ----- ----------- ----------- -------------
Other comprehensive income for the year attributable
to:
Equity shareholders of the parent (108) (22) 417
Non-controlling interests 1 - (7)
Other comprehensive income (107) (22) 410
Total comprehensive loss attributable
to:
Equity shareholders of the parent (463) (481) (332)
Non-controlling interests (20) (65) (40)
----------------------------------------- ----- ----------- ----------- -------------
(483) (546) (372)
----------------------------------------- ----- ----------- ----------- -------------
Loss per share attributable to the equity shareholders
of the parent
------------------------------------------------------------- ----------- -------------
Basic & Diluted Loss per share (pence) 4 (0.16) (0.56) (0.73)
----------------------------------------- ----- ----------- ----------- -------------
Condensed consolidated statement of financial position
As at 31 March 2020
Unaudited Unaudited
Six months Six months Audited
ended ended Year ended
31 March 31 March 30 September
2020 2019 2019
Note GBP'000 GBP'000 GBP'000
-------------------------------- ---- ----------- ------------ ---------------
Assets
Non-current assets
Intangible assets 5 9,221 8,218 9,222
Property, plant and equipment 425 313 431
Other receivables 27 23 27
-------------------------------- ---- ----------- ------------ ---------------
9,673 8,554 9,680
-------------------------------- ---- ----------- ------------ ---------------
Current assets
Trade and other receivables 92 656 97
Cash and cash equivalents 751 245 639
-------------------------------- ---- ----------- ------------ ---------------
843 901 736
-------------------------------- ---- ----------- ------------ ---------------
Total Assets 10,516 9,455 10,416
-------------------------------- ---- ----------- ------------ ---------------
Liabilities
Current liabilities
Trade and other payables (353) (349) (615)
(353) (349) (615)
-------------------------------- ---- ----------- ------------ ---------------
Net current assets 490 552 121
-------------------------------- ---- ----------- ------------ ---------------
Total liabilities (353) (349) (615)
-------------------------------- ---- ----------- ------------ ---------------
Total Net Assets 10,163 9,106 9,801
-------------------------------- ---- ----------- ------------ ---------------
Shareholders' equity
Share capital - - -
Share premium 28,784 27,778 28,247
Warrant reserve 354 81 65
Translation reserve 530 207 638
Retained deficit (19,348) (18,798) (19,012)
-------------------------------- ---- ----------- ------------ ---------------
Equity attributable to owners
of the parent 10,320 9,268 9,938
Non-controlling interests (157) (162) (137)
-------------------------------- ---- ----------- ------------ ---------------
Total Equity 10,163 9,106 9,801
-------------------------------- ---- ----------- ------------ ---------------
The financial information was approved and authorised for issue
by the Board of Directors on 30 June 2020 and was signed on its
behalf by:
J Potter
Director
Condensed consolidated statement of changes in equity
For the six months ended 31 March 2020
Share Share Warrant Translation Retained Non-controlling Total
capital premium reserve reserve deficit Total interest equity
----------------------- -----
Note GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------------- ----- -------- -------- -------- ----------- -------- ------- --------------- -------
At 30 September
2018 (audited) - 26,542 43 223 (18,393) 8,415 (97) 8,318
-------- -------- -------- ----------- -------- ------- --------------- -------
Loss for the period - - - - (459) (459) (65) (524)
Comprehensive income
for the period - - - (24) 2 (22) - (22)
------------------------------ -------- -------- -------- ----------- -------- ------- --------------- -------
Total comprehensive
loss for the period - - - (24) (457) (481) (65) (546)
Issue of shares
(net of costs) - 1,236 38 - - 1,274 - 1,274
------------------------------ -------- -------- -------- ----------- -------- ------- --------------- -------
Share-based payment
charge - - - 60 60 - 60
------------------------------ -------- -------- -------- ----------- -------- ------- --------------- -------
Reclassification - - 8 (8) - - -
------------------------------ -------- -------- -------- ----------- -------- ------- --------------- -------
At 31 March 2019
(unaudited) - 27,778 81 207 (18,798) 9,268 (162) 9,106
------------------------------ -------- -------- -------- ----------- -------- ------- --------------- -------
Loss for the period - - - - (290) (290) 32 (258)
Comprehensive income
for the period - - - 439 - 439 (7) 432
------------------------------ -------- -------- -------- ----------- -------- ------- --------------- -------
Total comprehensive
income for the perio
d - - - 439 (290 ) 149 25 174
Issue of shares
(net of costs) - 402 21 - - 423 - 423
Exercise of warrants - 67 (37) - 35 65 - 65
Share-based payment
charge - - - - 33 33 - 33
Reclassification - - - (8) 8 - - -
At 30 September
2019 (audited) - 28,247 65 638 (19,012) 9,938 (137) 9,801
------------------------------ -------- -------- -------- ----------- -------- ------- --------------- -------
Loss for the period - - - - (355) (355) (21) (376)
Comprehensive loss
for the period - - - (108) - (108) 1 (107)
------------------------------ -------- -------- -------- ----------- -------- ------- --------------- -------
Total comprehensive
loss for the period - - - (108) (355) (463) (20) (483)
Issue of shares
(net of costs) - 537 327 - - 864 - 864
Expiry of warrants (42) 42 - - -
Share-based payment
credit - - 4 - (23) (19) - (19)
------------------------------ -------- -------- -------- ----------- -------- ------- --------------- -------
At 31 March 2020
(unaudited) - 28,784 354 530 (19,348) 10,320 (157) 10,163
------------------------------ -------- -------- -------- ----------- -------- ------- --------------- -------
The following describes the nature and purpose of each reserve
within owners' equity:
Reserve Descriptions and purpose
Share capital Amount subscribed for share capital at nominal value,
together with transfers to share premium upon redenomination
of the shares to nil par value.
Share premium Amount subscribed for share capital in excess of nominal
value, together with transfers from share capital
upon redenomination of the shares to nil par value.
Warrant reserve Amounts credited to equity in respect of warrants
to acquire ordinary shares in the Company.
Translation reserve Amounts debited or credited to equity arising from
translating the results of subsidiary entities whose
functional currency is not sterling.
Retained deficit Cumulative net gains and losses recognised in the
consolidated statement of comprehensive income.
Non-Controlling Amounts attributable to the non-controlling interest
Interests in TurboShale Inc.
Condensed consolidated statement of cash flows
For the period ended 31 March 2020
Unaudited Unaudited Audited
Six months Six months Year ended
ended 31 ended 31 30 September
March 2020 March 2019 2019
Note GBP'000 GBP'000 GBP'000
------------------------------------------- ---- ----------- ----------- -------------
Cash flows from operating activities
Loss after tax (376) (524) (782)
Finance (income)/costs (1) 5 4
Amortisation of intangible fixed
assets 3 4 6
Share-based payment (credit)/charge (19) 60 93
Costs settled by the issue of shares - - 5
Decrease/(increase) in trade and
other receivables 5 (8) (55)
(Decrease)/increase in trade and
other payables (239) 30 232
------------------------------------------- ---- ----------- ----------- -------------
Cash used in operations (627) (433) (497)
Interest received/(paid) 1 (5) (4)
Net cash outflows from operating
activities (626) (438) (501)
Cash flows from investing activities
Investment in intangibles 6 (124) (148) (642)
Purchase of property, plant and
equipment - - (95)
Sale of investments - 104 104
Net cash used in investing activities (124) (44) (633)
------------------------------------------- ---- ----------- ----------- -------------
Cash flows from financing activities
Issue of share capital (net of
issue costs) 7 864 614 1,658
Loans repaid - (150) (150)
Net cash generated from financing
activities 864 464 1,508
------------------------------------------- ---- ----------- ----------- -------------
Net increase/(decrease) in cash
and cash equivalents 114 (18) 374
Cash and cash equivalents at beginning
of financial period 639 262 262
------------------------------------------- ---- ----------- ----------- -------------
Foreign currency translation differences (2) 1 3
------------------------------------------- ---- ----------- ----------- -------------
Cash and cash equivalents at end
of financial period 751 245 639
------------------------------------------- ---- ----------- ----------- -------------
UNAUDITED NOTES FORMING PART OF THE CONDENSED CONSOLIDATED
INTERIM FINANCIAL STATEMENTS
For the six months ended 31 March 2020
1. Accounting Policies
Basis of Preparation
The unaudited condensed consolidated interim financial
statements of TomCo Energy plc ("TomCo" or the "Company") for the
six months ended 31 March 2020, comprise the Company and its
subsidiaries (together referred to as the "Group").
The unaudited condensed interim financial information for the
Group has been prepared using the recognition and measurement
requirements of International Financial Reporting Standards (IFRS
and IFRIC interpretations) issued by the International Accounting
Standards Board ("IASB") as adopted for use in the EU, with the
exception of IAS 34 Interim Financial Reporting that is not
mandatory for companies quoted on the AIM market of the London
Stock Exchange. The unaudited condensed interim financial
information has been prepared using the accounting policies which
will be applied in the Group's statutory financial information for
the year ending 30 September 2020.
There were no new standards, interpretations and amendments to
published standards effective in the period which had a significant
impact on the Group.
IFRS 16-Leases
In applying IFRS 16 for the first time, the Group has elected
not to recognise a lease liability and right of use asset for
leases whose term ends within 12 months of the date of initial
application, which is 1 October 2019. The Group has no leases
within the scope of IFRS 16 that are not short-term leases at the
date of initial application, and therefore IFRS 16 has had no
impact on the Group's financial information.
Going concern
As at 29 June 2020, TomCo had approximately GBP340,000 of cash
available to it. Prior to the cost of any works to be undertaken
under the JV Agreement and associated upgrades to the POSP, which
are yet to be agreed, the Board believes the Group has sufficient
funds through to the end of 2020, excluding further funding
required for Greenfield (see below), when it will need to raise
further funding in order to meet its liabilities and commitments as
they fall due as well as to provide additional working capital for
the Group.
In addition, the Company continues to require further funding in
order to fund, inter alia, its contribution of up to US$1.5 million
to Greenfield pursuant to the JV Agreement. Until such funds have
been secured, Greenfield will not be in a position to materially
advance operations at the POSP, which includes making the required
upgrades and being able to undertake the proposed work
programme.
The Directors note that COVID-19 has had a significant negative
impact on the global economy and oil prices have fallen
significantly, which may mean it is harder to secure additional
funding than it has historically been. Notwithstanding this, the
Directors have a reasonable expectation that they will be able to
secure additional funding, sufficient to meet operating expenditure
beyond December 2020 and to provide further funds to explore the
opportunity to advance Greenfield, as set out above, or to further
advance TurboShale's RF technology .
However, these conditions are necessarily considered to
represent a material uncertainty which may cast significant doubt
over the Group's ability to continue as a going concern. Whilst
acknowledging this material uncertainty, the Directors remain
confident of being able to raise additional funds as and when
required and therefore the Directors consider it appropriate to
prepare this interim financial information on a going concern
basis. The interim financial information does not include any
adjustments that would result if the Group was unable to continue
as a going concern.
2. Financial reporting period
The unaudited condensed interim financial information
incorporates comparative figures for the unaudited six-month
interim period to 31 March 2019 and the audited financial year for
the year ended 30 September 2019. The six-month financial
information to 31 March 2020 is neither audited nor reviewed. In
the opinion of the Directors the unaudited condensed interim
financial information for the period presents fairly the financial
position, results from operations and cash flows for the period in
conformity with the generally accepted accounting principles
consistently applied.
The financial information contained in this unaudited interim
report does not constitute statutory accounts as defined by the
Isle of Man Companies Act 2006. It does not include all disclosures
that would otherwise be required in a complete set of financial
statements and should be read in conjunction with the 2019 Annual
Report. The comparatives for the full year ended 30 September 2019
are not the Group's full statutory accounts for that year. The
auditors' report on those accounts was unqualified but did include
a material uncertainty paragraph in respect of going concern.
3. Operating Loss
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
31 March 31 March 30 September
2020 2019 2019
GBP'000 GBP'000 GBP'000
------------------------------------------------ ----------- ----------- -------------
The following items have been charged in arriving at operating loss:
Directors' remuneration 264 101 220
Share-based payment (credit)/charges
for directors (19) 60 93
Auditors' remuneration 15 15 31
Operating leases for land and buildings-short
term assets 19 17 37
------------------------------------------------ ----------- ----------- -------------
Directors' remuneration for the period ended 31 March 2020
includes GBP150,000 of compensation and ex gratia payments to
Andrew Jones, which was settled post the period end. Of the credit
to profit and loss for share-based payments, approximately
GBP35,000 arises from the reversal of charges previously recognised
for unvested options awarded to Mr Jones that have now lapsed, and
the replacement of the lapsed options with a similar number of
warrants exercisable on similar terms.
4. Loss per share
Basic loss per share is calculated by dividing the losses
attributable to ordinary shareholders by the weighted average
number of ordinary shares outstanding during the year.
Reconciliations of the losses and weighted average number of shares
used in the calculations are set out below.
Weighted average Per share
Losses number of shares amount
Six months ended 31 March 2020 GBP'000 Pence
---------------------------------------- -------- ------------------ ----------
Basic and Diluted EPS
Losses attributable to ordinary
shareholders on continuing operations (355) 221,025,507 (0.16)
---------------------------------------- -------- ------------------ ----------
Weighted average Per share
Losses number of shares amount
Six months ended 31 March 2019 GBP'000 Pence
---------------------------------------- -------- ------------------ ----------
Basic and Diluted EPS
Losses attributable to ordinary
shareholders on continuing operations (459) 82,243,757 (0.56)
---------------------------------------- -------- ------------------ ----------
Weighted average Per share
Losses number of shares amount
Year ended 30 September 2019 GBP'000 Pence
---------------------------------------- -------- ------------------ ----------
Basic and Diluted EPS
Losses attributable to ordinary
shareholders on continuing operations (749) 102,524,614 (0.73)
---------------------------------------- -------- ------------------ ----------
5. Intangible assets
Oil & Gas Exploration Oil & Gas Patents
and development and patent
licences applications Total
GBP'000 GBP'000 GBP'000
------------------------------------------- --------------------- ----------------- ---------
Cost, net of impairment and amortisation
At 1 October 2017 and 31 March 2018
(unaudited) 7,627 23 7,650
Additions 193 11 204
Translation differences and amortisation 227 (6) 221
------------------------------------------- --------------------- ----------------- ---------
At 30 September 2018 (audited) 8,047 28 8,075
------------------------------------------- --------------------- ----------------- ---------
Additions 148 - 148
------------------------------------------- --------------------- ----------------- ---------
Translation differences and amortisation (2) (3) (5)
------------------------------------------- --------------------- ----------------- ---------
At 31 March 2019 (unaudited) 8,193 25 8,218
Additions 495 (1) 494
Translation differences and amortisation 512 (2) 510
------------------------------------------- --------------------- ----------------- ---------
At 30 September 2019 (audited) 9,200 22 9,222
------------------------------------------- --------------------- ----------------- ---------
Additions 124 - 124
------------------------------------------- --------------------- ----------------- ---------
Translation differences and amortisation (122) (3) (125)
------------------------------------------- --------------------- ----------------- ---------
At 31 March 2020 (unaudited) 9,202 19 9,221
------------------------------------------- --------------------- ----------------- ---------
Net book value
At 31 March 2020 (unaudited) 9,202 19 9,221
------------------------------------------- --------------------- ----------------- ---------
At 30 September 2019 (audited) 9,200 22 9,222
------------------------------------------- --------------------- ----------------- ---------
At 31 March 2019 (unaudited) 8,193 25 8,218
------------------------------------------- --------------------- ----------------- ---------
The exploration and development licences comprise nine Utah oil
shale leases covering approximately 15,488 acres. In respect of
leases ML 49570 and ML 49571, independent natural resources
consultants SRK Consulting (Australasia) Pty Ltd, part of the
internationally recognised SRK Group, reported in March 2019 best
estimate Contingent Resources (2C) of, in aggregate, 131.3 million
barrels ("MM bbl") of oil assessed under Petroleum Resources
Management System ("PRMS") guidelines, plus a best estimate
Prospective Resource (2U) of, in aggregate, 442.8 MM bbl oil across
the Leases. This included the Holliday A Block, where the Field
Test has been undertaken, with 2C Contingent Resources of 57.3 MM
bbl of oil and 2U Prospective Resources of 84.7 MM bbl of oil. The
Directors continue to consider the Holliday A Block to be
prospective and are seeking methods of extracting the shale oil
through development of TurboShale's RF technologies. The claim
areas and the Group's interest in them is:
Asset Per cent Licence Expiry Licence Area
Interest Status Date (Acres)
ML 49570 100 Prospect 31/12/2024 1,638.84
ML 49571 100 Prospect 31/12/2024 1,280.00
ML 48801 100 Prospect 01/10/2021 1,918.50
ML 48802 100 Prospect 01/10/2021 1,920.00
ML 48803 100 Prospect 01/10/2021 1,920.00
ML 48806 100 Prospect 01/12/2023 1,880.00
ML 49236 100 Prospect 01/12/2023 2,624.21
ML 49237 100 Prospect 01/12/2023 1,666.67
ML 50151 100 Prospect 30/11/2025 640.00
In performing an assessment of the carrying value of the
exploration licences at the reporting date, the Directors concluded
that it was not appropriate to book an impairment given the
measured resource, the licence term and the continued plans to
explore and develop the block, including the new technologies which
TurboShale is seeking to develop.
The outcome of ongoing exploration, and therefore whether the
carrying value of the exploration licences will ultimately be
recovered, is inherently uncertain and is dependent upon successful
development of commercially viable extraction technology. If the
required additional funding was not to be made available to the
Group or commercially viable extraction technologies cannot be
developed, the carrying value of the asset might need to be
impaired.
During the 2018/2019 financial year, the field test was carried
out.
6. Share Capital
31 March 31 March 30 September
2020 2019 2019
unaudited unaudited audited
Number of shares Number of shares Number of shares
--------------------------- ----------------- ----------------- -----------------
Issued and fully paid
Number of ordinary shares
of no par value 275,759,235 117,612,452 133,451,543
--------------------------- ----------------- ----------------- -----------------
7. Warrants
31 March 31 March 30 September
2020 2019 2019
unaudited unaudited audited
--------------------------- ----------- ---------- -------------
Outstanding (number) 82,341,515 3,035,091 967,429
Exercisable (number) 82,341,515 3,035,091 967,429
Weighted average exercise
price (pence) 1.5 2.7 4.4
--------------------------- ----------- ---------- -------------
8. Post balance sheet events
Joint venture
The Group established a joint venture company, Greenfield Energy
LLC, in partnership with Valkor LLC to pursue the development of an
oil sands plant.
Share options
New options over 14 million shares were granted to the Directors
at an exercise price of 0.6p per share. The options are exercisable
for five years from the date of vesting, with 50% vesting on or
after 30 November 2020 and 50% vesting on or after 31 May 2021.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR KKKBQNBKDQAN
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