Half-year Report

RNS Number : 8081J

Solo Oil Plc

14 September 2016

 

For Immediate Release

14 September 2016

Solo Oil plc

("Solo" or the "Company")

UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2016

Chairman's Statement

The Company has continued to advance its portfolio of oil and gas investments in the first half of 2016 with several major milestones occurring in that period; most significantly the signing of a gas sales agreement for Kiliwani North in Tanzania in January followed in April by first gas from the project, and the successful testing of the Horse Hill oil discovery in the UK providing considerable support to the concept of a commercial discovery.  Whilst market conditions remain somewhat volatile and uncertain the Company has taken prudent measures to cut costs and to focus on the existing core assets in Tanzania and the UK. 

Highlights for the period include:

Tanzania

·     Gas Sales Agreement ("GSA") was executed with the Tanzanian Petroleum Development Corporation ("TPDC") for a price of US$3.00 per mmBTU

·     First gas was achieved from Kiliwani North-1 ("KN-1") on 4 April 2016

·     Commissioning of the Song Songo Island Gas Plant was completed and testing of the KN-1 well up to over 30 mmscfd was undertaken

·     Solo increased its interest in KN-1 from 6.175% to 7.175% and holds an option to increase its interest to up to 8.75% as project performance milestones are achieved

·     Following the mid-year, first revenue from Kiliwani North was received in line with the GSA

·     A 12-month extension of the Ruvuma PSA was granted by TPDC and endorsed by the Tanzanian Minister of Petroleum

·     Ruvuma PSA operator Aminex plc announced its intention to drill two Ntorya appraisal wells starting in 2016 and that site preparation for the first well, Ntorya-2, was underway

United Kingdom

·     Horse Hill-1 well ("HH-1") was tested with the Kimmeridge Limestones produced at natural flow rates of over 460 and 900 barrels of oil per day gross ("bopd") from naturally fractured intervals in the Lower and Upper Kimmeridge respectively

·     Pumped production, constrained by pump size, of up to a gross 320 bopd was obtained from the Portland Sandstone reservoir during testing of that interval at HH-1 in March

·     The Company was formally awarded a 30% working interest in PEDL 331 on the Isle of Wight and announced its intention, with operator UK Oil and Gas Investments ("UKOG"), to pursue the previously discovered Arreton-2 field as part of an initial work program

·     The resources of the HH-1 Portland discovery were upgraded in July by 200 percent in a reserves report by Xodus for UKOG

Corporate

·     On 7 April the Company raised a total of £0.8 million before financing costs through the allotment of 320 million shares in private placements at a price of 0.25p

·     Following the AGM on 10 August the Board was restructured with the appointment of Dan Maling as Finance Director and the retirement of Sandy Barblett as a non-executive director, to be replaced by Don Strang the former Finance Director

Review of Investments for the period:

1.    Tanzania, Kiliwani North (7.175% interest)

In 2014 Solo agreed with Aminex to acquire up to a 13% working interest in the Kiliwani North Development Licence ("KNDL") on Songo Songo Island.  The Kiliwani North-1 ("KN-1") well was drilled by Aminex and its partners in 2008 and discovered gas in a 60 metre column in the Lower Cretaceous.  Based on well test results Kiliwani North-1 is expected to be flowed at a rate of up to 30 mmscfd once on stream through a short tie-in pipeline to the Songo Songo Island gas processing facility, and from there to the newly constructed 36-inch pipeline to Dar es Salaam.

Solo acquired an initial 6.5% interest in the KNDL project for US$3.5 million in 2015 and subsequently announced its intention to increase its stake to 10% through the acquisition of three additional tranches of project equity linked to project milestones at the Company's option.  Solo's original stake of 6.5% was subsequently reduced by way TPDC's back-in to the project for a 5% interest which reduced Solo's holding to 6.175%.  Back-in by the State Company is viewed as a positive move since it aligns the KNDL partnership with national objectives.

The condition precedent for further acquisition of project equity by Solo was the signature of a gas sales agreement ("GSA") which was achieved in January 2016.  The subsequently agreed tranche milestones were the commencement of gas production which was achieved in April 2016, the receipt of first cash revenue and the declaration of commercial (post-commissioning) gas production under the take-or-pay arrangements of the GSA. The first of these milestones has been reached and Solo has increased its direct participation to 7.175%.  Receipt of first revenue occurred in August 2016 and the Company has elected not to increase equity in KNDL to 8.425% in order to focus on investments in the Ruvuma PSC.  The Company retains the option to increase its KNDL stake by a further 1.575% to 8.75% when commercial operations are officially declared.

The GSA signed with TPDC for KN-1 gas contains payment guarantees in US Dollars ("US$") and is linked to a price escalation formula commencing at US$3.00 per million BTU ("mmBTU") and rising from January 2016.  The main contract phase is a depletion contract with take-or-pay provisions for 85% of the daily minimum quantity of gas to be supplied, initially set at a gross 20 mmscfd.  Payment for gas during the commissioning phase is based on the agreed tariff on an "as supplied" basis and no minimum quantity is guaranteed under the contract.  Commissioning of the Songo Songo Island gas processing plant commenced in early April 2016 and was essentially complete by end July.

Independently verified gas in place was confirmed by LR Senergy in a CPR in May 2015.  LR Senergy computed gross mean gas in place of 44 bcf of which 28 bcf have been attributed as best estimate contingent resources. These contingent resources will be converted to reserves once the GSA comes into full force on commercial gas production, which anticipated to be in the third or fourth quarter of 2016.

2.    Tanzania, Ruvuma Basin (25% interest)

Solo holds a 25% interest in the Ruvuma Petroleum Sharing Agreement ("Ruvuma PSA") in the south-east of Tanzania covering an area of approximately 3,447 square kilometres of which approximately 90% lies onshore and the balance offshore.  The Ruvuma PSA is in a region of southern Tanzania where very substantial gas discoveries have been made offshore in recent years and where gas has also been discovered onshore and along the coastal islands at Ntorya, Mnazi Bay and Songo Songo Island.

The Ntorya gas-condensate discovery, made in 2012 and operated by Aminex plc ("Aminex"), represents the most immediate commercialisation opportunity in the Ruvuma PSC.  The Ntorya-1 well was flow testing over a 3.5 metres zone at the top of the gross 25 metre gas bearing interval produced at a maximum gross flow rate of 20.1 million cubic feet per day ("mmscfd") and 139 barrels per day ("bpd") of 53 degree API condensate through a 1-inch choke.  The well is currently suspended as a discovery for subsequent additional testing or production. An early production scheme involving local use of the gas or its conversion to power is under consideration.

Based on an infill 2D seismic programme around Ntorya-1 a re-estimation of the discovered and prospective resources in the Likonde-Ntorya area was made and subsequently audited by Senergy (GB) Limited ("LR Senergy") who issued a Competent Person's Report ("CPR") in May 2015.  LR Senergy estimated that Ntorya contains a gross 158 bcf of proven gas in place, of which they attribute a gross 70 bcf as best estimate contingent resources.  Overall in the Ruvuma PSA, LR Senergy estimate gross 4.17 trillion cubic feet ("tcf") of discovered and undiscovered gas in place.   Contingent resources are expected to be converted to reserves once a commercial development and export scheme is approved.

The partners in the Ruvuma PSA are planning the drilling of two appraisal well in order to firm up these resource volumes and to commence gas sales negotiations.  Two appraisal well locations have been selected, Ntorya-2 and -3, and it is anticipated that the first of these wells could be spudded before end 2016.  At the time of this report site preparation is well advanced at Ntorya-2 location.

In order to fund the drilling of the appraisal wells Solo is again considering a farmout of a portion of its 25% interest in return for a financial carry on the appraisal.  Solo is currently contacting potentially interested parties and hopes to finalise arrangements prior to the spudding of Ntorya-2. The Company remains open minded as to farmout arrangements and will consider offers on their merits.

3.    Horse Hill, Weald Basin, UK (6.5% interest)

In 2014 the Company acquired a 10% interest in a special purpose company, Horse Hill Developments Limited ("HHDL"), which became the operator and 65% interest holder in two Petroleum Exploration and Development Licences, PEDL 137 and 246, in the northern Weald Basin between Gatwick Airport and London. 

The PEDL 137 licence covers 99.29 square kilometres (24,525 acres) to the north of Gatwick Airport in Surrey and contains the Horse Hill discovery and several other exploration leads.  PEDL 246 covers an area of 43.58 square kilometres (10,769 acres) and lies immediately adjacent and to the east of PEDL 137. 

The Horse Hill-1 ("HH-1") well commenced drilling operations in September 2014 and reached total depth at 8,870 feet MD in November 2014.  Evaluation of electric logs and other data collected from the well resulted in the announcement on 24 October 2014 of a conventional Upper Portlandian Sandstone oil discovery. Subsequent analysis of the Kimmeridge, Oxfordian and Liassic sections in the well indicated that there was also substantial in place oil in the naturally fractured Kimmeridge Limestones and associated mudstones.

Approval for the testing of all three oil bearing zones was granted in late 2015 and the tests commenced in early February 2016.  Tests lead to naturally flowing oil rates of the Kimmeridge Limestones at a gross rate of 460 bopd from the Lower interval and 900 bopd from the upper interval.  The Portland Sandstone was placed on pump to stimulate flow and achieved a maximum gross stable rate in excess of 320 bopd.  These flow rates substantially exceeded the expectations for the well and rank alongside some of the highest rates ever achieved on test for any UK onshore well.

Following the testing of the Portland Sandstone, when higher productivity and a lower than expected water cut were observed, further analysis on the electric logs has led to a 200% increase in the anticipated gross oil in place at this stratigraphic level.  Previous estimates of oil in place within the Portland Sandstone were 7.7 mmbbls per square mile and were increased to 22.9 mmbbls. Based on the original closure estimated by Xodus in 2015 this would increase the overall oil in place within the Horse Hill Portlandian discovery to 62.5 mmbbls. 

The relevant licences have been extended to permit further work and UKOG has indicated that it hopes to perform long term testing on all three zones as part of a wider appraisal program that includes 3D seismic and further drilling.  Planning permission is presently being sought for the next phase of testing which will establish the parameters of any development scheme and the commerciality of production from the various oil bearing intervals.

4.    PEDL 331, Isle of Wight, UK (30% interest)

An application was made jointly with UK Oil and Gas Investments plc ("UKOG") and Angus Energy Limited (who subsequently sold this interest to Doriemus plc ("Doriemus")) for a 200 square kilometre onshore block in the south and central portion of the Isle of Wight in the UK 14^th Landward Licensing Round.   Solo holds a 30% interest in this joint venture.

The UK Oil and Gas Authority ("OGA") have now issued the licence, PEDL 331, to the UKOG-Solo-Doriemus partnership.  Based on work by UKOG and confirmed by independent work by Solo Arreton-2, originally drilled in 1974 but never tested, is now considered to be an oil discovery on the Arreton Main Field.  When taken together with the adjacent prospects Xodus has calculated a P50 gross oil in place estimate of 219 mmbbls in conventional reservoirs within the Purbeck, Portland and Inferior Oolite limestone reservoirs at Arreton.  Arreton Main is considered by Xodus to contain most likely (P50) contingent resource net to Solo's interest in PEDL 331 of 4.7 mmbbls.

UKOG will become operator of PEDL 331 and has commenced discussions with the local planning authorities and expects to seek regulatory consents to appraise the Arreton Main oil discovery in the coming years.

5.    Burj Africa, Nigeria, West Africa (20% interest)

Between 2013 and 2015 Solo made an investment various ventures aimed at accessing known reserves in fields in Nigeria.  These have resulted in a 20% interest in Burj Petroleum Africa Limited ("Burj Africa") a company which had applied for various undeveloped fields in the 2014 Nigerian Marginal Fields Bid Round ("Marginal Fields Round") along with joint venture partners Global Oil and Gas ("Global") and Truvent Consulting.  

Two adjacent marginal fields have been applied for containing 10 wells previously drilled by an international major oil and gas company.  These fields are believed by Burj Africa and its partners to contain gross proven, probable and possible recoverable oil reserves of 59.3 mmbbls, approximately 13.5 mmbbls net to Burj Africa after payment of royalties.

Award of these blocks and any subsequent operations continues to be subject to Nigerian government approval. Recent developments in the world oil markets and specific to Nigeria have significantly delayed the issue of new licences under the envisaged Marginal Fields Round.  The Company continues to monitor developments in Nigeria and looks forward to further news in due course.

6.    Ontario, Canada (28.56% interest)

Solo holds an interest in 23,500 acres of petroleum leases in southern Ontario which contain a number of Ordovician reefal structures which contain variously oil, gas and condensate.  The operator, Reef Resources Inc., has been unable to raise the necessary funds to continue the development of the Ausable gas condensate field and no alternative has so far been found to unlock the potential.  Solo's management continues to seek ways to advance or monetise the investment made in the Ausable and adjacent Airport fields, and hopes to report progress in due course. No material progress has however been achieved in 2016 year to date.

7.    Morocco

In 2015 Solo acquired a small seed interest in the shares Canadian listed oil and gas company, Maxim Resources, with a view to acquiring an interest in a possible onshore gas production asset in Morocco. This is a very early stage seed investment and will be reported on more fully as the project takes shape.

Financial Results

During the year to date in order to fund its ongoing investments the Company raised gross proceeds of £0.8 million in new equity by way of the placing of 320 million new shares at 0.25p each.

The Company's operating loss for the period was £373,000 (30 June 2015: £372,000 loss).  In addition, further charges of £37,000 (30 June 2015: £679,000) relates to the provision for potential losses on the financial instrument (the Equity Swap Agreement) with YA Global Master SPV Ltd as announced on 24 September 2014 and £2,000 (30 June 2015: £49,000) for finance charges.

Immediate Outlook

The Company has made significant advances in its investments in Tanzania and the UK in the last reporting period and is now on production and receiving revenue from its Kiliwani North investment.  The Ruvuma PSC which holds the Ntorya gas condensate discovery has been extended and is targeted for early appraisal drilling.  The Horse Hill discovery has yielded exceptionally high flow rates at all three productive levels and further long term testing is now planned to design a commercial development.  Additionally, the Company has added prospective acreage including the Arreton-2 discovery in a new onshore licence in the Isle of Wight, providing further material prospectivity and oil production potential for future years.

Short term focus will be maintained on the Tanzania and UK portfolio whilst energy market volatility persists.  The Company is increasingly focussed on cost efficiency in its small head office function and anticipates further reductions in costs in the second half of the year.

Neil Ritson

Chairman

14 September 2016

Competent Person's statement:

The information contained in this document has been reviewed and approved by Neil Ritson, Chairman for Solo Oil Plc.  Mr Ritson is a member of the Society of Petroleum Engineers, a Fellow of the Geological Society, an Active Member of the American Association of Petroleum Geologists and has over 38 years relevant experience in the oil industry.

Glossary and Notes

2D seismic	seismic data collected using the two-dimensional common depth point method
3D	three-dimensional
AIM	London Stock Exchange Alternative Investment Market
API	American Petroleum Institute
barrel or bbl	45 US gallons
bbls	barrels of oil
bcf	billion cubic feet
best estimate or P50	the most likely estimate of a parameter based on all available data, also often termed the P50 (or the value of a probability distribution of outcomes at the 50% confidence level)
billion	10 to the power 9
bopd	barrels of oil per day
contingent resources	those quantities of petroleum estimated, at a given date, to be potentially recoverable from known accumulations, but the associated projects are not yet considered mature enough for commercial development due to one or more contingencies
CPR	Competent Persons Report
discovery	a petroleum accumulation for which one or several exploratory wells have established through testing, sampling and/or logging the existence of a significant quantity of potentially moveable hydrocarbons
electric logs	tools used within the wellbore to measure the rock and fluid properties of the surrounding formations
GIIP	gas initially in place
GSA	gas sales agreement
HH-1	Horse Hill-1 well
HHDL	Horse Hill Developments Limited
KN-1	Kiliwani North-1 well
KNDL	Kiliwani North Development Licence
m	thousand (ten to the power 3)
mm	million (ten to the power 6)
mmbbls	million barrels of oil
mmscf	million standard cubic feet of gas
mmscfd	million standard cubic feet of gas per day
OGA	UK Oil and Gas Authority (formally the Department of Energy and Climate Change)
oil in place or STOIIP	stock tank oil initially in place, those quantities of oil that are estimated to be in known reservoirs prior to production commencing
pay	reservoir or portion of a reservoir formation that contains economically producible hydrocarbons. The overall interval in which pay sections occur is the gross pay; the portion of the gross pay that meets specific criteria such as minimum porosity, permeability and hydrocarbon saturation are termed net pay
PEDL	Petroleum Exploration and Development License
permeability	the capability of a porous rock or sediment to permit the flow of fluids through the pore space
petrophysics	the study of the physical and chemical properties of rock formations and their interactions with fluids
play	a set of known or postulated oil or gas accumulations sharing similar geologic properties
porosity	the percentage of void space in a rock formation
prospective resources	those quantities of petroleum which are estimated, at a given date, to be potentially recovered from undiscovered accumulations
proven reserves	those quantities of petroleum, which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be commercially recoverable (1P), from a given date forward, from known reservoirs and under defined economic conditions, operating methods, and government regulations
probable reserves	those additional reserves which analysis of geoscience and engineering data indicate are less likely to be recovered than Proved Reserves but more certain to be recovered than Possible Reserves. It is equally likely that actual remaining quantities recovered will be greater than or less than the sum of the estimated Proved plus Probable Reserves (2P)
possible reserves	those additional reserves which analysis of geoscience and engineering data suggest are less likely to be recoverable than Probable Reserves. The total quantities ultimately recovered from the project have a low probability to exceed the sum of Proved plus Probable plus Possible (3P) Reserves, which is equivalent to the high estimate scenario
PSA	petroleum sharing agreement
PRMS	Petroleum Resources Management System
reserves	those quantities of petroleum anticipated to be commercially recovered by application of development projects to known accumulations from a given date forward under defined conditions
reservoir	a subsurface rock formation containing an individual natural accumulation of moveable petroleum
SPE	Society of Petroleum Engineers
tcf	trillion cubic feet
trillion	10 to the power 12
unconventional reservoir	widely accepted to mean those hydrocarbon reservoirs that are tight; that is have low permeability

The estimates provided in this statement are based on the Petroleum Resources Management System ("PRMS") published by the ("SPE") and are reported consistent with the SPE's 2011 guidelines.   All definitions used in the announcement have the meaning given to them in the PRMS.

For further information:

Solo Oil plc Neil Ritson/Daniel Maling	[phone]
Beaumont Cornish Limited Nominated Adviser and Joint Broker Roland Cornish	[phone]
Shore Capital Joint Broker Pascal Keane /Jerry Keen Cassiopeia Services Investor and Media Relations Stefania Barbaglio	[phone] [phone]

CONDENSED INTERIM INCOME STATEMENT

		Six months ended	Six months ended	Year ended
	Notes	30 June 2016	30 June 2015	31 December 2015
		(Unaudited)	(Unaudited)	(Audited)
		£ 000's	£ 000's	£ 000's
Revenue		-	-	-
Gross profit		-	-	-
Administrative expenses		(373)	(372)	(906)
Operating (loss)		(373)	(372)	(906)
Impairment charge		-	-	(875)
Finance costs		(2)	(49)	(386)
Finance revenue		-	-	-
Provision for losses on financial instrument		(37)	(679)	(606)
(Loss) on ordinary activities before taxation		(412)	(1,100)	(2,773)
Income tax (expense)		-	-	-
Retained (Loss) for the period attributable to equity holders of the Company		(412)	(1,100)	(2,773)
Loss per share (pence)
Basic and diluted	2	(0.01)	(0.02)	(0.04)

CONDENSED INTERIM STATEMENT OF OTHER COMPREHENSIVE INCOME

		Six months ended	Six months ended	Year ended
	Notes	30 June 2016	30 June 2015	31 December 2015
		(Unaudited)	(Unaudited)	(Audited)
		£ 000's	£ 000's	£ 000's
Loss for the period		(412)	(1,100)	(2,773)
Decrease in value of Available for sale assets		(14)	(41)	(78)
Total comprehensive income		(426)	(1,141)	(2,851)

CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION

		As at	As at	As at
	Notes	30 June 2016	30 June 2015	31 December 2015
		(Unaudited)	(Unaudited)	(Audited)
		£ 000's	£ 000's	£ 000's
Non-current assets
Intangible assets		11,783	11,515	11,392
Available for sale assets		1,203	1,809	1,192
Total non-current assets		12,986	13,324	12,584
Current assets
Trade and other receivables	3	791	1,123	523
Derivative financial instrument		-	-	-
Cash and cash equivalents		362	1,344	824
Total current assets		1,153	2,467	1,347
Total assets		14,139	15,791	13,931
Current liabilities
Trade and other payables		(183)	(176)	(234)
Derivative financial instrument		(351)	(189)	(314)
Borrowings		-	(477)	(112)
Total liabilities		(534)	(842)	(660)
Net assets		13,605	14,949	13,271
Equity
Share capital		588	556	556
Deferred share capital		1,831	1,831	1,831
Share premium reserve		25,805	25,062	25,077
Share-based payments		884	936	884
AFS reserve		(96)	(45)	(82)
Retained loss		(15,407)	(13,391)	(14,995)
Total equity attributable to equity holders of the parent		13,605	14,949	13,271

CONDENSED INTERIM STATEMENT OF CASH FLOWS

		Six months ended	Six months ended	Year ended
		30 June 2016	30 June 2015	31 December 2015
		(Unaudited)	(Unaudited)	(Audited)
		£ 000's	£ 000's	£ 000's
Cash outflow from operating activities
Operating loss		(373)	(372)	(906)
Adjustments for:
Share-based payments		-	-	-
(Increase)/decrease in receivables		(268)	(149)	451
(Decrease)/increase in payables		(51)	(4)	54
Foreign exchange loss		(9)	8	6
Net cash (outflow) from operating activities		(701)	(517)	(395)
Cash flows from investing activities
Interest received		-	-	-
Payments to acquire intangible assets		(391)	(2,472)	(2,649)
Payment to acquire derivative financial instrument		-	-	(110)
Payments to acquire available for sale investment		(8)	(133)	(132)
Net cash outflow from investing activities		(399)	(2,605)	(2,891)
Cash flows from financing activities
Repayments of borrowings		(122)	(396)	(754)
Proceeds from borrowings		-	336	336
Finance costs		-	(49)	(62)
Proceeds on issuing of ordinary shares		800	2,700	2,700
Cost of issue of ordinary shares		(40)	(146)	(131)
Net cash inflow from financing activities		638	2,445	2,089
Net (decrease)/increase in cash and cash equivalents		(462)	(677)	(1,197)
Cash and cash equivalents at beginning of period		824	2,021	2,021
Cash and cash equivalents at end of period		362	1,344	824

CONDENSED STATEMENT OF CHANGES IN EQUITY

	Share capital	Deferred  share capital	Share premium	Share based payments	AFS reserve	Accumulated losses	Total
	£000's	£000's	£000's	£000's	£000's	£000's	£000's
Balance at 31 December 2014	501	1,831	22,360	936	(4)	(12,291)	13,333
Loss for the period	-	-	-	-	-	(2,773)	(2,773)
Decrease in value of Available for sale assets	-	-	-	-	(78)	-	(78)
Total comprehensive income	-	-	-	-	(78)	(2,773)	(2,851)
Share issue	55	-	2,848	-	-	-	2,903
Cost of share issue	-	-	(131)	-	-	-	(131)
Share-based payment charge	-	-	-	17	-	-	17
Share options expired	-	-	-	(69)	-	69	-
Total contributions by and distributions to owners of the Company	55	-	2,717	(52)	-	69	2,789
Balance at 31 December 2015	556	1,831	25,077	884	(82)	(14,995)	13,271
Loss for the period	-	-	-	-	-	(412)	(412)
Decrease in value of Available for sale assets	-	-	-	-	(14)	-	(14)
Total comprehensive income	-	-	-	-	(14)	(412)	(426)
Share capital issued	32	-	768	-	-	-	800
Cost of share issue	-	-	(40)	-	-	-	(40)
Total contributions by and distributions to owners of the Company	32	-	728	-	-	-	760
Balance at 30 June 2016	588	1,831	25,805	884	(96)	(15,407)	13,605

NOTES TO CONDENSED INTERIM FINANCIAL INFORMATION

1              BASIS OF PREPARATION

The financial information has been prepared under the historical cost convention and on a going concern basis and in accordance with International Financial Reporting Standards and IFRIC interpretations adopted for use in the European Union ("IFRS") and those parts of the Companies Act 2006 applicable to companies reporting under IFRS.

The condensed interim financial information for the period ended 30 June 2016 has not been audited or reviewed in accordance with the International Standard on Review Engagements 2410 issued by the Auditing Practices Board. The figures were prepared using applicable accounting policies and practices consistent with those adopted in the statutory accounts for the period ended 31 December 2015. The figures for the period ended 31 December 2015 have been extracted from these accounts, which have been delivered to the Registrar of Companies, and contained an unqualified audit report.

The condensed interim financial information contained in this document does not constitute statutory accounts. In the opinion of the directors the financial information for this period fairly presents the financial position, result of operations and cash flows for this period.

This Interim Financial Report was approved by the Board of Directors on 14 September 2016.

Statement of compliance

These condensed company interim financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union with the exception of International Accounting Standard ('IAS') 34 - Interim Financial Reporting. Accordingly the interim financial statements do not include all of the information or disclosures required in the annual financial statements and should be read in conjunction with the Company's 2015 annual financial statements.

2              LOSS PER ORDINARY SHARE

The calculation of earnings per share is based on the loss after taxation divided by the weighted average number of share in issue during the period:

	Six months to	Six months to	Year ended
	30 June 2016	30 June 2015	31 December 2015
	(Unaudited)	(Unaudited)	(Audited)
Net loss after taxation (£ 000's)	(412)	(1,100)	(2,773)
Weighted average number of ordinary shares used in calculating basic earnings per share (millions)	5,780.4	5,292.9	5,417.2
Basic loss per share (pence)	(0.01)	(0.02)	(0.04)

As the inclusion of the potential ordinary shares would result in a decrease in the loss per share they are considered to be anti-dilutive and, as such, a diluted loss per share is not included.

3              TRADE AND OTHER RECEIVABLES

	Six months to	Six months to	Year ended
	30 June 2016	30 June 2015	31 December 2015
Current trade and other receivables	(Unaudited)	(Unaudited)	(Audited)
Loan to HHDL	658	360	369
Prepayments	22	96	66
Other debtors	111	667	88
Total	791	1,123	523

4              EVENTS AFTER THE REPORTING DATE.

There are no events after the end of the reporting date to disclose.

5              A copy of this interim statement is available on the Company's website www.solooil.co.uk.

 

END

 

 

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