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MX Oil PLC (MXO)

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Thursday 27 September, 2018

MX Oil PLC

Half-year Report

RNS Number : 0646C
MX Oil PLC
27 September 2018
 

27 September 2018

 

 

"MX Oil" or the "Company"

 

Half-yearly report for the six months to 30 June 2018

 

MX Oil plc, an AIM quoted oil and gas investing company, is pleased to announce its unaudited half-year results for the six months to 30 June 2018.

Highlights

·           Oil is being produced at a stable rate from two wells in the Aje Field, part of OML 113, in which the Company has an investment

·           An updated CPR has been prepared showing a significant increase in reserves

·           The renewal of the OML 113 licence for another 20 years has been approved by the Minister of Petroleum Resources

·           The plan for the next phase of the Aje Field expansion is being developed

 

Chairman's statement

Introduction

During the first six months of 2018, MX Oil plc has continued to pursue its strategy as an oil and gas investing company.  Currently, the Company is principally focused on developing its investment in Nigeria. During the first six months of 2018, the Company made a total comprehensive loss of £1,147,000 (2017: £800,000). 

 

Review of activities

 

During the first six months of 2018, the Company has continued to make good progress with regard to its investment in OML 113.  The two wells in the Aje Field within the OML 113 licence area have continued to produce, at a relatively stable rate of around 3,300 bopd (165 bopd net to MX Oil).

 

As part of the oil production process, new data about the underlying reservoir and related geology has been collected.  Consequently, the partners in the licence commissioned the preparation of an updated Competent Person's Report ("CPR") in order to take into account this new data and to provide a more accurate update of the future potential of the field.

 

In February 2018, the Company announced that it had raised £500,000 to assist with the further development of the Aje project.

 

In May 2018, the details of the revised CPR were announced.  The revised CPR is an update to the CPR prepared previously in July 2014 and incorporates all the developments and new data generated by the project since that date. The level of reserves reported in this latest CPR represents a significant increase compared to the previous report and highlights the future potential of the Aje Field.

 

In August 2018, the Company announced that it had received consent from the Minister of Petroleum Resources for the renewal of the OML 113 licence for another term of 20 years.  The renewal is subject to the satisfaction of certain conditions, including a commitment to develop the gas potential of the licence.

 

Outlook 

  

Now that the Company has received the updated CPR, work is currently underway on modelling the potential for new oil wells in both the Turonian and Cenomanian.  Subject to the outcome of this modelling work, the Company expects to see further development drilling in 2019.

 

 

N Lee 

Non-Executive Chairman

 

For further information please visit www.mxoil.co.uk or contact:

 

MX Oil PLC

Stefan Olivier, CEO

 

+44 20 7710 9618

 

Cairn Financial Advisers LLP

(Nominated Adviser)

Jo Turner/James Caithie

 

 

+44 20 7213 0880

 

Cornhill Capital

(Broker)

Daniel Gee

 

 

+44 20 7710 9612

 

 

 

 

 

 

 

UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 30 JUNE 2018

 

 

 

Unaudited

6 months

ended

30 June

 2018

Unaudited

6 months

ended

30 June

2017

Audited

Year ended

31 December

2017

 

Notes

£'000

£'000

£'000

 

 

 

 

 

 

Continuing operations

 

 

 

 

 

 

 

 

 

Revenue

 

968

377

1,727

 

 

 

 

 

Operating costs

 

(1,422)

-

(2,565)

Administrative expenses

 

(693)

(656)

(1,495)

 

 

 

 

 

Operating loss

 

(1,147)

(279)

(2,333)

 

 

 

 

 

Other gains and losses

2

-

-

27

Finance costs

 

-

(521)

(1,129)

 

 

 

 

 

Loss on ordinary activities before taxation

 

(1,147)

(800)

(3,435)

 

 

 

 

 

Taxation

 

-

-

-

 

 

 

 

 

Loss for the period

 

(1,147)

(800)

(3,435)

Other Comprehensive income:

 

 

 

 

Exchange translation movement

 

150

-

(746)

Total comprehensive loss for the period

 

(997)

(800)

(4,181)

 

 

 

 

 

Basic and diluted loss per share

3

 

 

 

From continuing and total operations

 

(0.07)p

(0.06)p

(0.24)p

 

 

 

 

 

UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED 30 JUNE 2018

 

 

Share capital

Share premium

Reserve for options granted

Reserve for warrants issued

Exchange translation reserve

Retained deficit

Total

equity

 

£'000

£'000

£'000

£'000

£'000

£'000

£'000

 

 

 

 

 

 

 

 

At 1 January 2017

8,336

25,460

172

783

-

(22,497)

12,254

Loss for the year

-

-

-

-

-

(3,435)

(3,435)

Exchange translation movement

-

-

-

-

(746)

-

(746)

Total comprehensive expense for the year

-

-

-

-

(746)

(3,435)

(4,181)

Issue of new shares

53

6,522

-

-

-

-

6,575

Share issue costs

-

(449)

-

-

-

-

(449)

 

 

 

 

 

 

 

 

At 31 December 2017

8,389

31,533

172

783

(746)

(25,932)

14,199

Loss for the period

-

-

-

-

-

(1,147)

(1,147)

Exchange translation movement

-

-

-

-

150

-

150

Total comprehensive expense for the period

-

-

-

-

150

(1,147)

(997)

Issue of new shares

10

490

-

-

-

-

500

Share issue costs

-

(60)

-

-

-

-

(60)

 

 

 

 

 

 

 

 

At 30 June 2018

8,399

31,963

172

783

(596)

(27,079)

13,642

 

UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2017

 

 

 

Unaudited

6 months

ended

30 June

 2018

Unaudited

6 months

ended

30 June

2017

Audited

Year ended

31 December

2017

 

 

£'000

£'000

£'000

 

 

 

 

 

NON-CURRENT ASSETS

 

 

 

 

Development costs

 

15,561

16,461

14,984

Investment in subsidiaries

 

-

-

-

 

 

15,561

16,461

14,984

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

Investments held for trading

 

200

-

179

Trade and other receivables

 

31

69

35

Cash and cash equivalents

 

94

24

50

 

 

325

93

264

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

Trade and other payables

 

2,244

549

1,049

 

 

2,244

549

1,049

NET CURRENT LIABILITIES

 

(1,919)

(456)

(785)

 

 

 

 

 

 

 

 

 

 

NET ASSETS

 

13,642

16,005

14,199

 

 

 

 

 

EQUITY

 

 

 

 

Ordinary share capital 

 

8,399

8,369

8,389

Share premium

 

31,963

29,978

31,533

Reserve for options granted

 

172

172

172

Reserve for warrants issued

 

783

783

783

Exchange translation reserve

 

(596)

-

(746)

Retained deficit

 

(27,079)

(23,297)

(25,932)

Equity attributable to owners of the Company and total equity

 

13,642

16,005

14,199

 

 

 

UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED 30 JUNE 2017

 

 

 

Unaudited

6 months

ended

30 June

 2018

Unaudited

6 months

ended

30 June

2017

Audited

Year ended

31 December

2017

 

 

£'000

£'000

£'000

 

 

 

 

 

OPERATING ACTIVITIES

 

 

 

 

Loss for the period

 

(1,147)

(800)

(3,435)

Adjustments for:

 

 

 

 

Profit on disposal of investments

 

-

-

(7)

Finance costs

 

-

521

1,129

Foreign exchange adjustments

 

-

(21)

(35)

Operating cashflow before working capital changes

 

(1,147)

(300)

(2,348)

Decrease in receivables

 

4

130

164

Increase/(decrease) in trade and other payables

 

882

(1,586)

(1,072)

Net cash outflow from operating activities

 

(261)

(1,756)

(3,256)

INVESTMENT ACTIVITIES

 

 

 

 

Proceeds on disposal of investments

 

4

-

303

Purchase of investments

 

(25)

-

(475)

Development costs

 

(104)

(2,000)

(1,113)

Net cash outflow from investment activities

 

(125)

(2,000)

(1,285)

FINANCING ACTIVITIES

 

 

 

 

Issue of ordinary share capital

 

500

5,000

6,575

Share issue costs

 

(60)

(449)

(449)

Net proceeds from short term borrowings

 

-

-

1,710

Repayment of short term borrowings

 

-

(584)

(2,919)

Finance costs paid

 

-

(521)

(504)

Net cash inflow from financing activities

 

440

3,446

4,413

 

 

 

 

 

Net increase/(decrease) in cash and cash equivalents from continuing and total operations

 

54

(310)

(128)

 

(10)

-

(156)

 

50

334

334

 

 

 

 

 

Cash and cash equivalents at end of period

 

94

24

50

 

 

 

 

 

NOTES TO THE HALF-YEARLY REPORT

 

1.             The financial information set out in this interim report does not constitute statutory accounts as defined in section 434 of the Companies Act 2006.  The group's statutory financial statements for the period ended 31 December 2017, prepared under International Financial Reporting Standards (IFRS), have been filed with the Registrar of Companies.  The auditor's report on those financial statements was unqualified and did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.

The interim financial information has been prepared in accordance with the recognition and measurement principles of International Financial Reporting Standards (IFRS) and on the same basis and using the same accounting policies as used in the financial statements for the year ended 31 December 2017. The interim financial statements have not been audited or reviewed in accordance with the International Standard on Review Engagement 2410 issued by the Auditing Practices Board.

The financial statements have been prepared on a going concern basis under the historical cost convention. The Directors believe that the going concern basis is appropriate for the preparation of the financial statements as the Company is in a position to meet all its liabilities as they fall due.

 

2.             Other gains and losses

 

Six months ended

30 June

2018

(unaudited)

Six months

 ended

30 June

2017

(unaudited)

 

Year ended

31 December

 2017

(audited)

 

£'000

£'000

£'000

Net gain on disposal of investments

-

-

7

Refund of FX margin deposit previously written off

-

-

20

 

-

-

27

 

 

3.             Earnings per share

The basic loss per share is calculated by dividing the loss attributable to equity shareholders by the weighted average number of shares in issue.

 

 

Six months ended

30 June

2018

(unaudited)

Six months ended

30 June

2017

(unaudited)

 

Year ended

31 December

 2017

(audited)

 

 

 

 

Weighted average number of shares in the period

1,743,172,868

1,389,760,115

1,439,477,518

 

Loss from continuing and total operations

(£1,147,000)

(£800,000)

(£3,435,000)

 

Basic and diluted loss per share:

 

 

 

From continuing and total operations

(0.07)p

(0.06)p

(0.24)p

 

 

 

 

 

4.             No interim dividend will be paid.

5.           Copies of the interim report can be obtained from: The Company Secretary, MX Oil plc, 17th Floor, 110 Bishopsgate, London, EC2N 4AY and are available to view and download from the Company's website: www.mxoil.com.

 


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