Half-year Report

RNS Number : 5514P

Petro Matad Limited

01 September 2017

 

Petro Matad Limited

('Petro Matad' or the 'Company')

Interim results for the six months ended 30 June 2017

LONDON, 01 September 2017: Petro Matad Limited, the AIM quoted Mongolian oil explorer, is pleased to announce its unaudited interim results for the six months ended 30 June 2017.

Financial Summary

The Group posted a loss of USD 2.518 million for the six-month period ended 30 June 2017, which compares to a profit of USD 0.1 million for the comparable period in 2016. The Company's cash balance at 30 June 2017 was $10.92 million, which compares to a cash balance of $0.49 million on 30 June 2016.

As reported in the announcement of 8 May 2017, the Company entered into a financing agreement with Bergen Global Opportunity Fund, LP (Bergen), which agreement was amended and announced post period end on 15 August 2017. Under the provisions of the agreement the Company has obtained two tranches of $1.2 million each and has issued a Convertible Note to Bergen for a further $1.5 million. Further tranches have been postponed until 15 October 2017, during which period the Company will continue to review its financing requirements.

Operations

On 5 July 2017, the Company announced its 2017 exploration drilling programme and initial drilling targets in Blocks IV and V, following the signing of a drilling rig contract with Sinopec International Petroleum Service Mongolia. Preparations for the commencement of drilling operations continue and the Company expects to issue a full operational announcement by mid-September 2017, which will include a full update on drilling rig preparations and expected spud date.

For more information, please contact:

Petro Matad Limited   

Ridvan Karpuz, CEO      [phone] / [phone]

NOMAD and Broker

Stockdale Securities Limited      

Richard Johnson / David Coaten              [phone]

Business Advisory Firm

FTI Consulting

Edward Westropp                                    [phone]

About Petro Matad

Petro Matad is the parent company of a group focussed on oil exploration, as well as future development and production in Mongolia. At the current time, Petro Matad holds the sole operatorship of three Production Sharing Contracts with the Government of Mongolia. Block XX has an area of 10,343 km² in the far eastern part of the country, and Blocks IV and V have an area of 28,999 km2 and 21,150 km2, respectively, in the southwest part of the country.

Petro Matad Limited is incorporated in the Isle of Man under company number 1483V. Its registered office is at Victory House, Prospect Hill, Douglas, Isle of Man, IM1 1EQ.

 

STATEMENT OF COMPREHENSIVE INCOME

FOR THE HALF-YEAR ENDED 30 JUNE 2017

		Consolidated
		30 Jun 2017	30 Jun 2016
		$'000	$'000
Continuing Operations
Revenue
Interest Income		9	30
Other Income		-	4,841
		9	4,871
Expenditure
Consultancy fees		(26)	(29)
Depreciation and amortisation		(131)	(92)
Employee benefits expenses		(1,156)	(1,803)
Exploration expenditure		(378)	(2,171)
Other expenses		(836)	(683)
Profit/(Loss) from continuing operations before income tax		(2,518)	93
Income tax expense		-	-
Profit/(Loss) from continuing operations after income tax		(2,518)	93
Net Loss		(2,518)	93
Other comprehensive income/(loss)
Exchange rate differences on translating foreign operations		44	16
Other comprehensive income/(loss), net of income tax		44	16
Total comprehensive loss		(2,474)	109
Profit/(Loss) attributable to owners of the parent		(2,518)	93
Total comprehensive income/(loss) attributable to owners of the parent		(2,474)	109
Earnings/(loss) per share (cents per share)
-       Basic and diluted earnings/(loss) per share		(0.87)	0.03

 

 

 

STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2017

	Consolidated
	30 Jun 2017	31 Dec 2016	30 Jun 2016
	$'000	$'000	$'000
ASSETS
Current Assets
Cash and cash equivalents	10,924	6,479	492
Trade and other receivables	168	5,155	668
Prepayments and other assets	472	523	496
Total Current Assets	11,564	12,157	1,656
Non-Current Assets
Trade and other receivables	-	-	536
Exploration and evaluation	15,275	15,275	15,275
Property, plant and equipment	720	783	1,031
Total Non-Current assets	15,995	16,058	16,842
TOTAL ASSETS	27,559	28,215	18,498
LIABILITIES
Current liabilities
Trade and other payables	1,821	1,352	2,453
Total Current Liabilities	1,821	1,352	2,453
TOTAL LIABILITIES	1,821	1,352	2,453
NET ASSETS	25,738	26,863	16,045
EQUITY
Issued capital	107,476	106,150	106,150
Reserves	4,176	4,109	4,094
Accumulated losses	(85,914)	(83,396)	(94,199)
TOTAL EQUITY	25,738	26,863	16,045

 

 

CONDENSED CASH FLOW STATEMENT

FOR THE HALF-YEAR ENDED 30 JUNE 2017

	Consolidated
	30 Jun 2017	30 Jun 2016
	$'000	$'000
Cash flows from operating activities
Payments to suppliers and employees	(3,041)	(4,261)
Interest received	9	30
Proceeds from Bergen (shares to be issued)	1,200	-
Farm-out proceeds	5,000	-
Net cash flows from/(used in) operating activities	3,168	(4,231)
Cash flows from operating activities
Purchase of property, plant and equipment	(41)	(667)
Proceeds from the disposal of plant and equipment	-	35
Net cash flows from/(used in) investing activities	(41)	(632)
Cash flows from financing activities
Proceeds from issue of shares	1,921	-
Capital raising costs	(647)	-
Net cash flows from/(used in) financing activities	1,274	-
Net increase/(decrease) in cash and cash equivalents	4,401	(4,863)
Net foreign exchange differences	44	16
Cash and cash equivalents at beginning of period	6,479	5,339
Cash and cash equivalents at end of period	10,924	492

STATEMENT OF CHANGES IN EQUITY

FOR THE HALF-YEAR ENDED 30 JUNE 2017

	Consolidated
	Attributable to equity holders of the parent
	Issued Capital $'000	Accumulated Losses $'000	Other Reserves $'000	Total $'000
As at 1 January 2016	106,150	(94,310)	4,010	15,850
Income/(Loss) for the period	-	93	-	93
Other comprehensive income	-	-	16	16
Total comprehensive income/(loss) for the period	106,150	(94,217)	4,026	15,959
Transactions with owners in their capacity as owners
Issue of share capital	-	-	-	-
Changes in equity (Dissolved PMSL)	-	18	-	18
Share based payments	-	-	68	68
As at 30 June 2016	106,150	(94,199)	4,094	16,045
As at 1 January 2017	106,150	(83,396)	4,109	26,863
Income/(Loss) for the period	-	(2,518)	-	(2,518)
Other comprehensive income	-	-	44	44
Total comprehensive income/(loss) for the period	106,150	(85,914)	4,153	24,389
Transactions with owners in their capacity as owners
Issue of share capital	1,921	-	-	1,921
Cost of capital raising	(647)	-	-	(647)
Share based payments	52	-	23	75
As at 30 June 2017	107,476	(85,914)	4,176	25,738

1.   CORPORATE INFORMATION

The financial report covers the consolidated entity of Petro Matad Limited and its controlled entities.

Petro Matad Limited, a company incorporated in the Isle of Man on 30 August 2007 has four wholly owned subsidiaries, including Capcorp Mongolia LLC and Petro Matad LLC (both incorporated in Mongolia), Central Asian Petroleum Corporation Limited ("Capcorp") and Petromatad Invest Limited (both incorporated in the Cayman Islands).  Its majority shareholder is Petrovis Matad Inc. Its majority shareholder is Petrovis Matad Inc.

2.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The half-year financial report does not include all of the notes of the type normally included within the annual financial report and therefore cannot be expected to provide as full an understanding of the financial performance, financial position and financing and investing activities of the consolidated entity as the full financial report.

The half-year financial report should be read in conjunction with the annual Financial Report of Petro Matad Limited as at 31 December 2016. The half-year consolidated financial statements have been prepared using the same accounting policies as used in the annual financial statements for the year ended 31 December 2016.

It is also recommended that the half-year financial report is considered together with any public announcements made by Petro Matad Limited and its controlled entities during the half-year ended 30 June 2017.

(a)      Basis of Preparation

The half-year consolidated financial report is a general purpose financial report, which has been prepared in accordance with the requirements of International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ('IASB'). The half-year financial report has been prepared on a historical cost basis, except where stated.

The financial report is presented in US dollars and all values are rounded to the nearest thousand dollars ($'000).

For the purpose of preparing the half-year financial report, the half-year has been treated as a discrete reporting period.

(b)      Basis of consolidation

The consolidated financial statements comprise the financial statements of the Group as at 31 December each year.

Subsidiaries are entities controlled by the Group.  Control exists when the Group has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.  In assessing control, potential voting rights that presently are exercisable or convertible are taken into account.  The financial statements of the subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases.

The financial statements of subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies. Adjustments are made to bring into line any dissimilar accounting policies that may exist.

A change in the ownership interest of a subsidiary that does not result in a loss of control is accounted for as an equity transaction.

All intercompany balances and transactions, including unrealised profits arising from intra-group transactions, have been eliminated in full.  Unrealised losses are eliminated unless costs cannot be recovered.

 

3.   CONTRIBUTED EQUITY

			CONSOLIDATED
					30 Jun 2017		31 Dec 2016
					$'000		$'000
Ordinary shares (i) 303,084,189 shares issued and fully paid  (31 Dec 2016: 287,494,775)				107,476		106,150
				107,476		106,150

(i) Ordinary shares

Full paid ordinary shares carry one vote per share and carry the right to dividends.

Movement in ordinary shares on issue	Number of Shares	Issue Price$	$'000
At 1 January 2017	287,494,775		106,150
Issue of shares to employees and directors on 24 Mar 2017 on exercise of options	197,500	$0.137	27
Issue of shares to employees and a director on 24 Mar 2017 on exercise of options	16,000	$0.247	4
Issue of shares to a director on 24 Mar 2017 on exercise of options	75,000	$0.098	7
Issue of shares to employees on 24 Mar 2017 on exercise of options	141,000	$0.111	16
Issue of shares to Bergen on 11 May 2017*	2,151,951	$0.294	632
Issue of shares to Bergen on 11 May 2017*	3,500,000	$0.010	35
Issue of shares to Bergen on 13 June 2017**	9,507,963	$0.126	1,200
Cost of capital raising			(647)
Share based payment			52
At 30 June 2017	303,084,189		107,476

* On 11 May 2017, the Company issued 5,651,951 commencement and collateral shares to Bergen as part of the initial closing under the Private Placement arrangement.

**On 13 June 2017, the Company issued 9,507,963 new ordinary shares to Bergen in relation to the first tranche payment.

4.   RESERVES

A detailed breakdown of the reserves of the Group is as follows:

	Merger reserve	Equity benefits reserve	Foreign currency translation	Total
Consolidated	$'000	$'000	$'000	$'000
As at 1 July 2016	831	4,299	(1,036)	4,094
Currency translation differences	-	-	(109)	(109)
Share based payments	-	124	-	124
As at 31 December 2016	831	4,423	(1,145)	4,109
Currency translation differences	-	-	44	44
Share based payments	-	23	-	23
As at 30 June 2017	831	4,446	(1,101)	4,176

 

5.   EARNINGS/(LOSS) PER SHARE

The following reflects the income and share data used in the total operations basic and diluted earnings/(loss) per share computations:

			CONSOLIDATED
			30 Jun 2017		30 Jun 2016
Basic earnings/(loss) per share
Total basic earnings/(loss) per share (US$ cents per share) (note a)		(0.87)		0.03
Diluted earnings/(loss) per share
Total diluted earnings/(loss) per share (US$ cents per share) (note b)		(0.87)		0.03
(a)  Basic earnings/(loss) per share
The profit/(loss) and weighted average number of ordinary shares used in the calculation of basic loss per share are as follows:
Net profit/(loss) attributable to ordinary shareholders (US$'000)		(2,518)		93
Weighted average number of ordinary shares for the purposes of basic earnings per share ('000)
		290,268		287,495
(b)  Diluted earnings/(loss) per share
The profit/(loss) and weighted average number of ordinary shares used in the calculation of diluted earnings per share are as follows:
Net profit/(loss) attributable to ordinary shareholders (US$'000)		(2,518)		93
Weighted average number of ordinary shares for the purposes of basic earnings per share ('000)
		290,268		287,495

Share Options and Conditional Share Awards could potentially dilute basic loss per share in the future, however they have been excluded from the calculation of diluted loss per share because they are anti-dilutive for both years presented.

6.   EVENTS AFTER THE REPORTING DATE

On 18 July 2017, the Company issued 13,389,719 new ordinary shares to Bergen in relation to the second tranche payment.

On 15 August 2017, the Company amended its financing agreement with Bergen Global Opportunity Fund, LP (Bergen), to enable the issuance of a Convertible Note to Bergen for $1.5 million. The amendment also postponed future tranches under the Bergen agreement until 15 October 2017.

On 16 August 2017, the Company received $1,500,000 from Bergen for the issue of a convertible note.

 

END

 

 

IR UASBRBWAKRRR