Interim Results

RNS Number : 1639L

Island Oil and Gas PLC

30 April 2010

 

Island Oil & Gas Plc

'Island' or 'The Company'

Interim Results for the period ended 31 January 2010

Group income statement

Interim to 31 January 2010

(unaudited)

	6 Months Ended 31 Jan 2010 Stg £'000	6 Months Ended 31 Jan 2009 Stg £'000	Year Ended 31 July 2009 Stg £'000
Revenue	280	1,293	1,879
Cost of Sales	(1,276)	(650)	(2,602)
Gross Profit	(996)	643	(723)
Other operating income	-	-	-
Administration expenses	(854)	(908)	(1,908)
Costs associated with uncommercial projects	-	(133)	(127)
Impairment of exploration and evaluation assets	(376)	-	(41,127)
Operating profit/(loss) - continuing operations	(2,226)	(398)	(43, 885)
Finance income	-	454	456
Finance expense	(647)	(2,295)	(1,697)
Profit/(loss) before taxation	(2,874)	(2,239)	(45,126)
Income tax expense	-	-	-
Profit/(loss) for the financial period/year from continuing activities	(2,874)	(2,239)	(45,126)
Earnings per share (Stg £)
Basic	(0.0215)	(0.0192)	(0.3865)
Diluted	(0.0215)	(0.0192)	(0.3865)

Group Balance Sheet

At 31 January 2010

(unaudited)

	31 Jan 2010 Stg £'000	31 Jan 2009 Stg £'000	31 July 2009 Stg £'000
Assets:
Non current assets
Intangible exploration and evaluation assets	24,256	63,420	23,737
Property, plant and equipment	1,707	1,208	2,637
	25,963	64,628	26,374
Current assets
Other receivables	1,187	1,444	1,656
Cash and cash equivalents	115	1,900	416
	1,302	3,344	2,072
Total assets	27,265	67,972	28,446
Equity and liabilities
Equity attributable to equity holder of the parent
Called up share capital	965	798	809
Shares to be issued	-	238	-
Share premium	52,122	51,167	51,394
Unrealised reserve	47	47	47
Share option reserve	1,443	1,270	1,443
Retained earnings	(41,295)	4,466	(38,421)
Total equity	13,282	57,986	15,272
Non current liabilities
Provisions	3,815	719	3,815
Loans	7,480	7,470	6,870
	11,295	8,189	10,685
Current liabilities
Trade and other payables	2,688	1,797	2,489
	2,688	1,797	2,489
Total liabilities	13,984	9,986	13,174
Total equity and liabilites	27,265	67,972	28,446

Group Cashflow Statement

Interim to 31 January 2010

(unaudited)

	6 Months Ended 31 Jan 2010 Stg £'000	6 Months Ended 31 Jan 2009 Stg £'000	Year Ended 31 July 2009 Stg £'000
Cash flows from operating activities
Profit before taxation	(2,874)	(2,239)	(45,126)
Finance income	-	(454)	(456)
Finance expense	647	2,295	1,697
Operating profit/(loss)	(2,227)	(398)	(43,885)
Adjusted for
Depreciation	930	218	1,859
Costs associated with uncommercial projects	-	133	127
Impairment of exploration and evaluation assets	376	-	41,127
Cost of share awards	-	85	258
Foreign Exchange Loss	-	427	72
	(921)	465	(442)
Decrease/(increase) in other receivables	469	(319)	341
Increase in trade and other payables	82	638	228
Net cash from operating activities	(370)	784	127
Cash flows from investing activities
Expenditure on intangible exploration and evaluation assets	(1,118)	(3,068)	(5,087)
Contribution from partners for exploration and evaluation assets	223	724	1,308
Purchase of property, plant and equipment	-	(8)	(12)
Finance Income	-	61	479
Net cash used in investing activities	(895)	(2,291)	(3,312)
Cash flows from financing activities
Net proceeds from issue of share capital	884	-	-
Debt arrangement fees	(20)	-	-
Drawdown of other loans	100	-	200
Finance expenses	-	-	(6)
Net cash generated by/(used in) financing activities	964	-	194
Net (decrease)/increase in cash and cash equivalents	(301)	(1,507)	(2,991)
Cash and cash equivalents at beginning of period	416	3,407	3,407
Cash and cash equivalents at end of period	115	1,900	416

Notes to the Interim results  

1. Basis of preparation  

The condensed interim information has been prepared in accordance with the Recognition and measurement principles of IAS 34 Interim Financial reporting. The accounting policies applied are consistent with those set out in the Group's Consolidated financial statements for the year ended 31 July 2009 which are prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU.  

The Financial information for the year ended 31 July 2009 represents an abbreviated version of the Group's statutory financial statements for that year. Those statutory financial statements contained an unqualified audit report. There was an Emphasis of matter included in the auditors report.  

The financial information is presented in Sterling, rounded to the nearest thousand.

2. Finance income / expense  

Interim to 31 January 2010  

(unaudited)  

	6 Months Ended 31 Jan 2010 Stg £'000	6 Months Ended 31 Jan 2009 Stg £'000	Year Ended 31 July 2009 Stg £'000
Bank deposit interest receivable	-	27	29
Foreign exchange gain on restatement of bank	-	427	427
Finance income	-	454	456
Interest on bank loans, overdraft and other	422	347	706
Arrangement fees	20	-	-
Foreign exchange loss on restatement of US Dollar denominated loan	205	1,948	991
Finance expense	647	2,295	1,697

3. Intangible exploration and evaluation assets

Interim to 31 January 2010  

(unaudited)  

	6 Months Ended 31 Jan 2010 Stg £'000	6 Months Ended 31 Jan 2009 Stg £'000	Year Ended 31 July 2009 Stg £'000
At start of period/year	23,737	61,212	61,212
Additions	895	2,341	3,779
Costs associated with uncommercial projects	-	(133)	(127)
Impairment charge	(397)	-	(41,127)
At end of period/year	24,255	63,420	23,737

The Directors have considered the carrying value of the Group's intangible assets and are satisfied that they are worth at least the amount stated in the Interim Balance Sheet. In making this assessment, the Directors have made certain assumptions in relation to the future price of oil and gas, potential development opportunities and the ability of the Group to dispose or divest interests in certain assets at close to the carrying value. 

For further information please contact:

Enquiries:

Island Oil & Gas plc	Tel: [phone]
Carl Kindinger
Davy (NOMAD and broker)	Tel: [phone]
Anthony Farrell
College Hill (Financial PR)	Tel: [phone]
Nick Elwes

 

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