Preliminary Results
Rockhopper Exploration plc
06 June 2006
PRESS RELEASE
For immediate release: 6 June, 2006
Rockhopper Exploration plc
Preliminary Results for the Year ended 31 March 2006
Rockhopper Exploration plc ('Rockhopper' or 'the Company'), the oil and gas
exploration company focussed on the North Falkland Basin, which listed on AIM in
August 2005, has today announced its preliminary results for the year ended 31
March 2006.
Highlights:
- Successful placing and listing on AIM
- 2D seismic survey completed
- Electromagnetic surveys completed
- 3D seismic survey commissioned
- Cash at bank 31 March 2006 of £12.5 million
- Pre tax loss of £0.354 million
Executive Chairman, Dr. Pierre Jungels commented:
'We completed a successful listing on AIM in August 2005 raising £15 million
before expenses to undertake work on all of our licence areas.
A 2D programme has been completed on licences PL023 and PL024 and a 3D vessel is
now secured for licences PL032 and PL033. CGG, one of the world's leading marine
seismic contractors, will undertake the survey.
We have also completed two Controlled Source Electromagnetic surveys in order to
give ourselves greater confidence in the prospects over which they were
acquired. These are the first such surveys ever completed in the Falkland
Islands, the results of which will be fully integrated with all our other
technical studies once they are available.
We remain positive about the prospectivity of the basin as a whole and our
acreage specifically.'
For further information, please contact:
Rockhopper Exploration plc www.rockhopperexploration.co.uk
Sam Moody, Managing Director 01722 414 419
Peter Dixon-Clarke, Finance Director
Aquila Financial Limited www.aquila-financial.com
Peter Reilly 020 7202 2601
Yvonne Fraser 020 7202 2609
Notes to editors
Rockhopper Exploration plc is currently the largest licence holder in the North
Falkland Basin and has a 100 per cent. interest in four offshore production
licences which cover approximately 5,800 sq. km. These licences have been
granted by the Falkland Islands government.
Since listing on AIM in August 2005 Rockhopper has undertaken a 2D seismic
survey, a controlled source electro magnetic imaging survey and commissioned a
3D survey to be undertaken in late 2006.
Chairman's Statement
Background
Rockhopper Exploration was established in early 2004 to explore for oil in the
North Falkland Basin. We currently have a 100% working interest in and are the
Operator of 4 licences, PL023, PL024, PL032 and PL033, which between them cover
approximately 5,800 km2. In addition, we have a 7.5% working interest in
licences PL003 and PL004, which are operated by Desire Petroleum. In total, our
net acreage position of over 5,900 km2 currently makes us the largest acreage
holder in the North Falkland Basin.
We are currently in a period of relatively high oil prices and have seen a
significant growth in exploration activity across the world. Access to high
quality acreage is becoming increasingly difficult and expensive while high
quality people and equipment are in high demand and short supply. Against this
background, your board has built up an acreage position of real prospectivity
and value and has also been able to carry out a significant part of the work
programme set out at the time of our listing on the Alternative Investment
Market (AIM), with more work already timetabled for later this year.
Achievements
We completed a successful listing on AIM in August 2005 raising £15 million
before expenses to undertake work on all of our licence areas. We specified at
the time that we would conduct both 2D and 3D seismic acquisition programmes and
consider using other exploration technologies in addition to fulfilling our
commitment to drilling with Desire Petroleum.
The 2D programme has been completed on licences PL023 and PL024 and the 3D
vessel is now secured for licences PL032 and PL033. CGG, one of the world's
leading marine seismic contractors, will undertake the survey. We have also
completed two Controlled Source Electromagnetic (CSEM) surveys in order to give
ourselves greater confidence in the prospects over which they were acquired.
These are the first such surveys ever completed in the Falkland Islands. The
results of these surveys will be fully integrated with all our other technical
studies once they are available.
We are working closely with Desire in moving towards drilling on licences PL003
and PL004 but have experienced a significant tightening in the worldwide market
for drilling units.
Outlook
Once the results of the two CSEM surveys have been fully integrated into the
seismic studies, our knowledge of the southern, undrilled part of the North
Falkland Basin will be taken to a new level.
Processing the new 920km 2D seismic survey data is nearing completion. Once we
have the processed data, we will focus on interpreting and integrating it into
our existing knowledge of the area.
The next active step in our exploration will be the collection of the new 3D
seismic survey in licences PL032 and PL033. Once the data has been acquired,
processing and interpretation will carry the work programme into 2007.
The ultimate test of any exploration is, of course, drilling. To this end, not
only do we have the 7.5% interest in PL003 and PL004, but we are working on our
own 100% acreage with modern seismic techniques and CSEM in order to reduce risk
before committing to a drilling programme. It is our intention to co-operate as
fully as possible with other operators in the region in order to reduce costs
and maximise not only knowledge and experience, but also the chance of success.
We have achieved a great deal in this first year against a background of
increasingly difficult markets for services in the oil sector. We look forward
to being able to present the full results of our new 2D and CSEM programmes
later this year and the results of our significant 3D programme during 2007. At
that point, we will need to consider our funding options should we confirm the
presence of drillable targets in our acreage.
Summary
We remain positive about the prospectivity of the basin as a whole and of our
acreage specifically. We believe a number of completely untested plays remain in
the basin which give a better chance of success than the original drilling
campaign in 1998. The technical work is progressing as anticipated at the time
of the listing and the board as a whole remains strongly supportive of the
management team as we move closer to discovering the real potential of the
basin.
Dr Pierre Jungels CBE
Executive Chairman
5 June 2006
NB: This statement has been approved by the Company's geological staff who
include Keith Williams (Exploration Director), who is a Member of The European
Association of Geoscientists & Engineers (EAGE) with over 30 years of experience
in petroleum exploration and management, for the purpose of the Guidance Note
for Mining, Oil and Gas Companies issued by the London Stock Exchange in respect
of AIM companies, which outline standards of disclosure for mineral projects.
Rockhopper Exploration plc
Group profit and loss account
for the year ended 31 March 2006
Year ended Fourteen months
31 March ended 31 March
2006 2005
£'000 £'000
Group turnover - -
Cost of sales - -
---------- -----------
Gross profit - -
---------- -----------
Administrative expenses (822) (228)
Foreign exchange movement 56 -
---------- -----------
Group operating loss (766) (228)
---------- -----------
Interest receivable 412 5
---------- -----------
Loss on ordinary activities before
taxation (354) (223)
---------- -----------
Taxation 2 - -
---------- -----------
Loss for the financial
year / period (354) (223)
---------- -----------
Loss per share (pence): Basic 3 (0.61)p (3.27)p
Loss per share (pence): Diluted 3 (0.61)p (3.27)p
The operating loss for the year/period arises from the group's continuing
operations. No separate Statement of Total Recognised Gains and Losses has been
presented as all such gains and losses have been dealt with in the Profit and
Loss Account.
Rockhopper Exploration plc
Group balance sheet
31 March 2006
As at 31 As at 31
March March
2006 2005
£'000 £'000
Fixed assets
Intangible assets 2,500 236
Tangible assets 14 2
---------- ----------
2,514 238
---------- ----------
Current assets
Debtors 10 38
Cash at bank 12,455 1,190
---------- ----------
12,465 1,228
Creditors: amounts falling due
within one year (59) (106)
---------- ----------
Net Current assets 12,406 1,122
---------- ----------
Total assets less current
liabilities 14,920 1,360
---------- ----------
Capital and reserves
Called up share capital 4 718 361
Share premium account 5 14,919 1,362
Merger reserve 5 (140) (140)
Profit and loss account 5 (577) (223)
---------- ----------
Equity shareholders' funds 14,920 1,360
---------- ----------
Rockhopper Exploration Plc
Group cash flow statement
for the year ended 31 March 2006
Year ended 31 Fourteen months
March ended 31 March
2006 2005
£'000 £'000
Net cash flow from operating activities (782) (147)
Returns on investments and servicing
of finance 412 5
Capital expenditure and financial
investment (2,279) (238)
---------- -----------
(2,649) (380)
Financing 13,914 1,570
---------- -----------
Movement in cash in the year/period 11,265 1,190
---------- -----------
Reconciliation of Net Cash Flow to Movement in Net Funds
Year ended Fourteen
31 March months ended
2006 31 March 2005
£'000 £'000
Movement in cash in the year/period 11,265 1,190
--------- -----------
Movement in net funds 11,265 1,190
Opening Net Funds 1,190 -
--------- -----------
Closing Net Funds 12,455 1,190
--------- -----------
NOTES TO THE PRELIMINARY STATEMENT
1 BASIS OF PREPARATION
The financial statements have been prepared under the historical cost
convention, in accordance with applicable United Kingdom accounting standards
and the Statement of Recommended Practice (SORP) 'Accounting for Oil and Gas
Exploration, Development, Production and Decommissioning Activities' issued by
the UK Oil Industry Accounting Committee on 7 June 2001. The principal
accounting policies of Rockhopper Exploration plc are set out in the Admission
document.
2 TAXATION
The effective rate of tax is based on the estimated tax charge for the year at a
rate of 0% (2005 - 0%).
3 LOSS PER SHARE
The calculation of the basic loss per share is based upon the loss for the year
of £354,000 (2005: £223,000) and the weighted-average number of shares in issue
during the year ended 31 March 2006 of 58,467,365 (2005: 6,816,486). As the
group is reporting a loss for all periods then, in accordance with Financial
Reporting Standard number 22, the share options are not considered dilutive.
This is because the exercise of the share options would have the effect of
reducing the loss per share.
4 SHARE CAPITAL
2006 2006 2005 2005
£'000 No. £'000 No.
Authorised:
Ordinary shares of £0.01 each 1,000 100,000,000 1,000 100,000,000
-------- ---------- --------- ---------
Called up, issued and fully paid:
Ordinary shares of £0.01 each 718 71,774,605 361 36,060,320
-------- ---------- --------- ---------
On 15 August 2005 the Company issued 35,714,285 ordinary shares of £0.01 each at
a premium of £0.41 per share on the Admission of the Company to trading on AIM.
Issue costs of £1.1 million have been charged against the share premium arising.
5 RECONCILIATION OF SHAREHOLDERS' FUNDS AND MOVEMENT ON RESERVES
Share Share Merger Profit and Shareholders'
capital premium reserve loss funds
account
£'000 £'000 £'000 £'000 £'000
At 1 February
2004 140 - (140) - -
Issue of shares 221 1,362 - - 1,583
Loss for the
period - - - (223) (223)
-------- --------- -------- -------- ----------
At 1 April
2005 361 1,362 (140) (223) 1,360
Issue of shares 357 13,557 - - 13,914
Loss for the
year - - - (354) (354)
-------- --------- -------- -------- ----------
At 31 March
2006 718 14,919 (140) (577) 14,920
-------- --------- -------- -------- ----------
6 COPIES OF THE FINAL REPORT
Copies of the final report will be dispatched to shareholders and will be
available to the public at the Registered Office, Hilltop Park, Devizes Road,
Salisbury, SP3 4UF.
7 FINANCIAL INFORMATION
The financial information set out above does not constitute the statutory
accounts of Rockhopper Exploration plc for the year ended 31 March 2006 which
are the first to be prepared by the Group. The statutory accounts for the year
ended 31 March 2006, which were approved by the Directors and authorised for
issue on 5 June 2006, will be delivered following the Company's Annual General
Meeting. The auditors have reported on the accounts; their report was
unqualified and did not contain statements under section 237(2) or (3) of the
Companies Act 1985.
This information is provided by RNS
The company news service from the London Stock Exchange