Annual Financial Report

RNS Number : 1395P

Gold Oil PLC

29 September 2011

 

Gold Oil PLC

29^th September 2011

Gold Oil PLC ("Gold Oil" or "the Company" or "the Group")

Final results for the year ended 30 April 2011

Gold Oil, an oil and natural gas exploration and exploitation company focused on Southern America, today reports final results for the year ended 30 April 2011.

Operational Summary

·       Marine 3D seismic survey over Block Z34 southern and northern areas completed

·       Farm-out agreement with Vale Oil and Gas in relation to 70% interest in  Peruvian Block XXI

·       USD$2 million payment expected in the fourth quarter of 2011 after final governmental approval of the farm-out to Vale

·       Gross production has doubled to 600 bopd from workovers completed on the Burdine field

·       La Vega East prospect on the Azar block expected to be drilled in the fourth quarter of 2011

Financial Summary

·     Operating loss £1,588,000 (2010: loss £879,000)

·     Loss for year attributable to equity holders £1,579,000 (2010: loss £976,000)

·     Loss per ordinary share 0.27p (2010:Loss 0.19p)

·     Cash at period end of £11.7million (2010: £2.9 million)

John Bell, Chairman, commented "It is my great pleasure to present this statement to shareholders after my first year as Chairman of your Company.  This last year has been an active one for the Company and I am pleased with the progress that has been made in stabilising the business and establishing the foundations for future growth.

In Peru we have acquired 3D seismic over our key asset Block Z34 and have farmed down our interest, subject to final governmental approval, in Block XXI in order to mitigate risk.  Our operations in Colombia have expanded and, following a workover programme on the Burdine field, we have more than doubled our total net production.

As part of the process of refocusing the Company the Board has agreed that, subject to shareholder approval at the forthcoming AGM, the name of the Company will be changed to InvePetrol PLC.

I would like to thank the Directors and employees of Gold Oil for their significant contribution during the year and also to express my appreciation and thanks to shareholders for their support and confidence in the Company"

Notice of AGM

The Company's Annual General Meeting will be held at 10.00 a.m. on 26^th October 2011 at 20 Old Bailey, London EC4M 7EN.

Annual Report and Accounts

The Company has today published and posted to shareholders its Annual Report and Accounts for the year ended 30 April 2011 ("Annual Report").

For the information of investors and shareholders alike, copies of the Annual Report will be available for at least one month, free of charge, at the registered offices of the Company, being Finsgate, 5-7 Cranwood Street, London EC1V 9EE. In accordance with AIM Rule 26, electronic copies are available on the Company's website, www.goldoilplc.com.

For further information, please contact:

Gold Oil PLC                                      

Richard Mew - CEO                              Tel: [phone]

Seymour Pierce Ltd (Nominated Adviser & Joint Broker)

Jonathan Wright/Stewart Dickson         Tel: [phone]

(Corporate Finance)

Richard Redmayne/David Banks

(Corporate Broking)                              

FirstEnergy Capital LLP (Joint Broker):                                                                                                                 

Hugh Sanderson / Travis Inlow            Tel: + 44 (0) 20 7448 0200

Notes to Editors

Gold Oil is an independent oil and natural gas exploration and exploitation company focused on Southern America. Shares in Gold are quoted on the AIM market of the London Stock Exchange (AIM:GOO).

The Company is seeking to maintain a balanced portfolio of high-risk high reward and low risk cash flow projects by establishing significant licence positions concentrated in a few geographic areas. The Company currently has significant acreage and is recognised as an operator for both onshore and offshore Peru, and is an operator with exploration and production licences onshore Colombia.

CHAIRMAN'S STATEMENT

I have great pleasure in presenting this statement to shareholders of Gold Oil.  It is now over a year since I was appointed by the Board as Chairman of Gold Oil, following the investment by Sheer Energy Pty Ltd ("Sheer") into the Company, and I am pleased at the considerable progress your Company has made over the year.

The year under review has once again been a challenging one for the Company, but one that has laid the foundations to move forward and expand the business.   The short term goal of the Company has been to stabilise the business, improve the value of the assets and provide a solid base from which to work.  As such the Board has focused on the following key priorities:

·     Progress operations across all assets

·     Improve asset value

·     Improve the balance sheet

·     Develop a clear strategy for company growth and increased production

·     Instil confidence and rebuild relationships with regulators and government bodies in Colombia and Peru

·     Improve corporate governance

I am pleased to say that I consider that we have achieved these aims and your Company is in a more robust position with greater credibility in Peru and Colombia than it has had for some years. In this context and after due consideration the Board has agreed that, subject to shareholder approval, the name of the Company will be changed to InvePetrol PLC (reflecting the operating name used by the Company in Colombia). We have a highly motivated and experienced board supported by an experienced management team in place. The assets are being developed effectively with increased daily production and improved value of our exploration acreage.  

Peru

We received environmental permits and approvals for Block Z34 and brought the contract out of Force Majeure.  Within a short time frame we were able to put a contract in place and have now successfully completed an extensive 3D marine seismic survey over a substantial part of the licence area which will better define the leads indicated from the reprocessing of the 2D seismic earlier this year. We promoted Block Z34 in late 2010 to major international E&P companies and attracted a large amount of interest. However, we concluded we would be in a stronger position to negotiate more attractive terms for our shareholders with additional data, hence our decision to shoot 3D seismic so as to add more value and strengthen our position for better farm out terms.   

In addition we brought Block XXI out of Force Majeure and successfully farmed out our working interest obligations to Vale Oil and Gas (part of the Brazilian Mining group) under satisfactory terms. The newly elected Peruvian Government is developing closer ties with Brazil and our engagement with Vale is consistent with this policy direction. Assignment of Vale to Block XXI is still subject to Government approval and is expected during the fourth quarter of 2011.

Colombia

We implemented a three well workover plan over Burdine -1, -4 and -5 and surface facility improvements on the Burdine field earlier this year making good use of the funds invested by Sheer Energy. This yielded a more than doubling of gross production to approximately 600 barrels per day in total from both the Nancy and Burdine fields combined.

Gold Oil's technical capability and industry experienced management team enabled us to work more effectively with the Operator, Gran Tierra, on the Azar block to ensure the drilling of the La Vega East Prospect, which is now expected in the fourth quarter of 2011. The 3D seismic definition over this prospect makes this a relatively low risk exploration well.

We successfully farmed out the relatively high risk Rosa Blanca exploration block to Montecz S.A., a Colombian based oil field services company, who drilled the Rosa Blanca -2 well in January 2011.  Despite some encouraging shows whilst drilling, the well did not test hydrocarbons.

Corporate

In order to meet our planned capital programme Sheer Energy provided a further USD$4.6m through exercising options in September 2010, November 2010 and February 2011. These funds were used to evaluate our assets and hence added value to the portfolio. In addition the Company successfully raised a targeted £10 million amid difficult conditions in equity capital markets to fund 3D seismic acquisition on Block Z34 and other capital investments.  This major exercise was successfully completed at the end of April 2011.

With limited capital at our disposal we have improved our cash flow position with increased production, lifted our credibility and corporate profile in Peru and Colombia, farmed out assets, and embarked on a significant evaluation of Z34. We are now positioned to be a much stronger company.

Share price performance this past year has been disappointing, but the measures taken will set the company on a positive path to growth once global markets stabilise. We firmly believe the energy industry remains one of the few great investment opportunities in these volatile economic times and we intend to take advantage. When conditions are right we will seek to consolidate our presence through acquisitions within strong economically performing South American countries.

I have personally invested a significant amount of time and money in Gold Oil and built a team of internationally experienced professionals to deliver results. I am committed to the Company's growth and it is my intention to steer the development of the Company to the benefit of all shareholders.

I look forward to the future of the Company with a high degree of optimism for positive outcomes in 2012 building on the foundations of 2011, working on the best returns for our investment through added asset value and selective acquisitions when appropriate. 

I would like to thank the Gold Oil board, management team and employees in the field for their valuable contribution and commitment during the year and in particular to thank our loyal shareholders for their valuable continued support.

John Bell

Chairman

29 September 2011

CONSOLIDATED INCOME STATEMENT FOR THE YEAR ENDED 30 APRIL 2011
				2011	2010
				£'000	£'000
Revenue				1,168	957
Cost of sales				(638)	(555)
Gross profit				530	402
Development expenditure written off				(39)	(246)
Administration expenses				(2,125)	(1,028)
Other operating Income				85	23
Finance cost				(39)	(30)
Operating loss				(1,588)	(879)
Finance income				7	9
(Loss) on ordinary activities
before taxation				(1,581)	(870)
Income tax (expense)/benefit				2	(106)
(Loss) for the year				(1,579)	(976)
(Loss) on ordinary activities
after taxation is attributable to:
Equity shareholders				(1,579)	(976)
				(1,579)	(976)
Earnings per ordinary share - continuing
Basic				(0.27p)	(0.19p)
Diluted				(0.27p)	(0.19p)

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AT 30 APRIL 2011
				2011	2010
				£'000	£'000
Assets
Non current assets
Property plant and equipment
--- oil and gas assets				1,117	178
--- others				-	11
Intangibles				4,724	3,115
Goodwill				2,191	2,191
Deferred tax				177	-
				8,209	5,495
Current assets
Inventories				60	115
Trade and other receivables				1,066	474
Cash and cash equivalents				11,684	2,906
				12,810	3,495
Total assets				21,019	8,990
Equity and liabilities
Capital and reserves attributable to owners of the parent
Share capital				222	125
Share premium account				25,295	10,800
Other reserve				-	1,964
Foreign exchange translation reserve				612	619
Retained earnings				(7,238)	(5,659)
Total equity				18,891	7,849
Current liabilities
Trade and other payables				1,329	357
Taxes payable				189	162
Short term loans				610	622
				2,128	1,141
Total equity and liabilities				21,019	8,990

CONSOLIDATED AND COMPANY STATEMENT OF CASH FLOWS FOR THE YEAR ENDED
30 APRIL 2011
		Group	Company	Group	Company
		2011	2011	2010	2010
		£'000	£'000	£'000	£'000
Operating activities		(124)	(556)	1,775	2,086
Investing activities
Return from investment and servicing of finance		7	3	9	4
Acquisition of investment assets		-	(359)	-	(292)
Acquisition of goodwill		-	-	(329)	-
Acquisition of intangible assets		(1,349)	(1,069)	(716)	(1,026)
Purchase of tangible fixed assets		(967)	(739)	(60)	(41)
		(2,309)	(2,164)	(1,096)	(1,355)
Financing activities
Proceeds from issue of share capital		11,211	11,211	48	48
Net cash inflow		8,778	8,490	727	779
Cash and cash equivalents at the beginning of the year		1,706	1,546	979	767
Cash and cash equivalents at the end of the year		10,484	10,036	1,706	1,546
Reconciliation to Consolidated Statement of Financial Position
Cash and cash equivalents		11,684	11,236	2,906	2,746

 

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