Tlou Energy Ltd (LON:TLOU)

Tlou Energy Ltd (LON:TLOU)


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Tlou Energy Ltd RNS Release

Interim Results


RNS Number : 0799R
Tlou Energy Ltd
26 February 2019
 

26 February 2019

 

Tlou Energy Limited

("Tlou" or "the Company")

 

Interim Results

 

 

Tlou Energy Limited, the ASX, AIM and BSE listed company focused on delivering power in Botswana and southern Africa through the development of coal bed methane ('CBM'), is pleased to announce its interim results for the six months ended 31 December 2018.

 

Managing Directors' report

The reporting period was focussed on preparations for the new development wells located in the vicinity of the proposed central gas processing and power generation facility.  Additional activity included working on the Environmental Impact Statement for the planned downstream development comprising gas gathering, gas processing, power generation and an electrical transmission line to Serowe.  A submission was also made in October in response to the government of Botswana's request for a proposal in relation to a gas-to-power re-tender.

 

As a result of the achievements during the period, we are in a good position to make further significant advancements in the months ahead.  We are proceeding with a series of value adding field operations, the most significant of which is the drilling of initial development wells (Lesedi 3 and 4) which is on-going.  These wells have been positioned in the best technical location and orientation to potentially result in enhanced gas flows compared to what has already been achieved at Selemo.  The results of the recently acquired seismic data coupled with an extensive geological review of our area by our independent geological consultants has determined the optimum positioning for the current drilling campaign.

 

In terms of gaining access to the power grid to ultimately monetise our gas via electricity, we have continued to run parallel processes of going down the path of the re-issued gas-to-power tender (while recognising its challenges) as well as going it alone by gaining all of the necessary approvals to independently connect to the grid in any event.  The Company notes that the Southern African Power Pool region continues to suffer from inadequate investment in electrical power generation capacity and sooner rather than later will again experience significant electrical energy shortages.  This situation will be reinforced on the downside for energy supply in southern Africa should any interruptions of the Eskom supply from South Africa be experienced.  The Tlou project offers cost effective and relatively clean energy for Botswana coupled with providing energy security and much needed jobs with successful implementation.

 

The near-term objectives, aimed at negating the currently perceived principal risks, are considered by the Company to be achieving an enhanced gas flow from the Lesedi development wells and obtaining a clear pathway to gas monetisation via a power purchase agreement or equivalent.  The first half of 2019 should see significant advancements towards achieving one or both of these objectives.

 

Review and results of operations

The loss for the half-year after income tax amounted to $1,520,139 (December 2017: loss $1,676,624).  The loss for the half-year is marginally below that of the same period in the prior year.  This ties in with the Company's continued focus on reducing corporate, administrative, and operating costs wherever possible, where this can be done without any adverse effect on performance.

 

Net spend on exploration activities during the period amounted to $3,594,701.  This is an increase on the comparative period and relates mainly to the development wells that were commenced during the reporting period. 

 

Subject to the results of the ongoing drilling program and the tender submission to the Government of Botswana, the coming months could be transformational for the Company and we look forward to updating the market as the project progresses.

 

Thanks to all our shareholders, staff, consultants, advisors, and management for their support during the period.

 

The Half-year report is available on the Company's website at www.tlouenergy.com/reports

 

****

For further information regarding this announcement please contact:

 

Tlou Energy Limited

+61 7 3012 9793

Tony Gilby, Managing Director

 

Solomon Rowland, General Manager

 

 

 

Grant Thornton (Nominated Adviser)

+44 (0)20 7383 5100

Samantha Harrison, Colin Aaronson, Harrison Clarke, Seamus Fricker

 

 

 

Shore Capital (Broker)

+44 (0) 207 408 4090

Jerry Keen, Toby Gibbs, Mark Percy

 

 

 

FlowComms Limited (Investor Relations)

+44 (0) 7891 677 441

Sasha Sethi

 

 

Company Information

Tlou Energy is focused on delivering Gas-to-Power solutions in Botswana and southern Africa to alleviate some of the chronic power shortage in the region.  Tlou is developing projects using coal bed methane ('CBM') natural gas.  Botswana has a significant energy shortage and generally relies on imported power and diesel generation to fulfil its power requirements.  As 100% owner of the most advanced gas project in the country, the Lesedi CBM Project, Tlou Energy provides investors with access to a compelling opportunity using domestic gas to produce power and displace expensive diesel and imported power.

 

The Company is listed on the Australian Securities Exchange, London's AIM market and the Botswana Stock Exchange and is led by an experienced Board, management and advisory team including individuals with successful track records in the CBM industry.

 

Since establishment, the Company has significantly de-risked the project in consideration of its goal to become a significant gas-to-power producer.  The Company flared its first gas in 2014 and has a 100% interest in a Mining Licence and nine Prospecting Licences covering an area of ~8,300 Km2 in total.  The Lesedi and Mamba Projects already benefit from significant independently certified 2P gas Reserves of ~41 BCF. In addition, 3P gas Reserves of ~427 BCF and Contingent Gas Resources of ~3,044 BCF provide significant additional potential.

 

The Company is planning an initial scalable gas-to-power project.  Following successful implementation of this first scalable project, the Company looks forward to evaluating longer-term prospects for the delivery of electricity generated from CBM in Botswana to neighbouring countries.

 

****

 

Consolidated statement of comprehensive income 

for the half-year ended 31 December 2018

 

 

 

 

 

 

Consolidated

 

 

 

 

Period ended

Period ended

 

 

 

Note

Dec 2018

Dec 2017

 

 

 

 

$

$

 

 

 

 

 

 

Interest income

 

5,446

820

 

 

 

 

 

 

Expenses

 

 

 

 

Employee benefits expense

 

(587,147)

(426,980)

Depreciation and amortisation expense

 

(238,742)

(88,289)

Foreign exchange gain/(loss)

 

82,659

90,736

Share issue costs

 

-  

(176,685)

Performance rights expense

 

(128,060)

(199,624)

Professional fees

 

(44,485)

(89,936)

Corporate expenses

 

(5,369)

(16,237)

Occupancy costs

 

(33,543)

(21,490)

Other expenses

2

(570,898)

(748,939)

LOSS BEFORE INCOME TAX 

 

(1,520,139)

(1,676,624)

Income tax

 

 

-  

-  

LOSS FOR THE PERIOD

 

(1,520,139)

(1,676,624)

 

 

 

 

 

 

OTHER COMPREHENSIVE INCOME/(LOSS)

 

 

 

Items that may be reclassified to profit or loss

 

 

 

Exchange differences on translation of foreign operations

 

597,713

629,253

Tax effect

 

 

-  

-  

TOTAL OTHER COMPREHENSIVE INCOME/(LOSS)

 

597,713

629,253

TOTAL COMPREHENSIVE INCOME/(LOSS)

 

(922,426)

(1,047,371)

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share

 

 

 

 

 

 

 

 Cents

 Cents

Basic loss per share

 

(0.4)

(0.5)

Diluted loss per share

 

(0.4)

(0.5)

 

 

Consolidated statement of financial position 

as at 31 December 2018

 

 

 

 

 

 

Consolidated

 

 

 

Note

Dec 2018

June 2018

 

 

 

 

$

$

CURRENT ASSETS

 

 

 

Cash and cash equivalents

 

5,520,614

7,019,345

Trade and other receivables

 

457,780

194,814

Other current assets

 

10,764

364,956

TOTAL CURRENT ASSETS

 

5,989,158

7,579,115

 

 

 

 

 

 

NON-CURRENT ASSETS

 

 

 

Exploration and evaluation assets

3

57,124,581

52,861,961

Other non-current assets

 

1,209,650

652,522

Property, plant and equipment

4

1,981,427

440,683

TOTAL NON-CURRENT ASSETS

 

60,315,658

53,955,166

TOTAL ASSETS

 

66,304,816

61,534,281

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

Trade and other payables

 

662,941

258,024

Provisions

 

 

129,229

215,183

TOTAL CURRENT LIABILITIES

 

792,170

473,207

 

 

 

 

 

 

NON-CURRENT LIABILITIES

 

 

 

Deferred tax liabilities

 

369,353

369,353

Provisions

 

 

114,000

97,000

TOTAL NON-CURRENT LIABILITIES

 

483,353

466,353

TOTAL LIABILITIES

 

1,275,523

939,560

 

 

 

 

 

 

NET ASSETS

 

65,029,293

60,594,721

 

 

 

 

 

 

 

 

 

 

 

 

EQUITY

 

 

 

 

Contributed equity

6

95,692,760

90,463,822

Reserves

 

 

(2,179,195)

(2,904,968)

Accumulated losses

 

(28,484,272)

(26,964,133)

TOTAL EQUITY

 

65,029,293

60,594,721

 

 

 

Consolidated statement of changes in equity 

for the half-year ended 31 December 2018

 

 

 

Contributed Equity

Share Based Payments Reserve

Foreign Currency Translation Reserve

Accumulated Losses

Total

 

$

$

$

$

$

Balance at 1 July 2017

83,380,184

520,500

(3,627,932)

(24,153,403)

56,119,349

Loss for the period

-  

-  

-  

(1,676,624)

(1,676,624)

Other comprehensive income, net of tax

-  

-  

629,253

-  

629,253

Total comprehensive income

-  

-  

629,253

(1,676,624)

(1,047,371)

 

 

 

 

 

 

Transactions with owners in their capacity as owners

 

 

 

Share based payments

-  

199,624

-  

-  

199,624

Shares issued, net of costs

4,407,047

-  

-  

-  

4,407,047

 

4,407,047

199,624

-  

-  

4,606,671

Balance at 31 December 2017

87,787,231

720,124

(2,998,679)

(25,830,027)

59,678,649

 

 

 

 

 

 

 

 

 

 

 

 

Balance at 1 July 2018

90,463,822

309,401

(3,214,369)

(26,964,133)

60,594,721

Loss for the period

-  

-  

-  

(1,520,139)

(1,520,139)

Other comprehensive income, net of tax

-  

-  

597,713

-  

597,713

Total comprehensive income

-  

-  

597,713

(1,520,139)

(922,426)

 

 

 

 

 

 

Transactions with owners in their capacity as owners

 

 

 

Share based payments

-  

128,060

-  

-  

128,060

Shares issued, net of costs

5,228,938

-  

-  

-  

5,228,938

 

5,228,938

128,060

-  

-  

5,356,998

Balance at 31 December 2018

95,692,760

437,461

(2,616,656)

(28,484,272)

65,029,293

 

 

Consolidated statement of cash flows 

for the half-year ended 31 December 2018

 

 

 

 

 

 

Consolidated

 

 

 

 

Period ended

Period ended

 

 

 

 

Dec 2018

Dec 2017

 

 

 

 

$

$

 

 

 

 

 

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

Payments to suppliers and employees (inclusive of GST and VAT)

(1,478,225)

(1,796,542)

Interest received

 

5,247

820

GST and VAT received

 

323,943

117,549

NET CASH USED IN OPERATING ACTIVITIES

 

(1,148,835)

(1,678,173)

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

Payments for exploration and evaluation assets

 

(3,782,387)

(2,106,573)

Payment for property, plant and equipment

 

(1,771,253)

(20,741)

NET CASH USED IN INVESTING ACTIVITIES

 

(5,553,640)

(2,127,314)

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

Proceeds from issue of shares

 

5,488,927

4,419,259

Share issue costs

 

(259,989)

(28,377)

NET CASH PROVIDED BY FINANCING ACTIVITIES

 

5,228,938

4,390,882

 

 

 

 

 

 

Net increase in cash held

 

(1,473,537)

585,395

Cash at the beginning of the period

 

7,019,344

6,727,424

Effects of exchange rate changes on cash

 

(25,193)

150,381

 

 

 

 

 

 

CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD

5,520,614

7,463,200

 

 

Notes to the consolidated financial statements 

for the half-year ended 31 December 2018

 

Note 1.    Significant accounting policies

 

Introduction

Tlou Energy Limited (Tlou) is a company domiciled and incorporated in Australia. The Financial Report for the half-year ended 31 December 2018 consists of the Financial Statements of Tlou Energy Limited and the entities it controlled during the period ('Consolidated Entity').

 

Compliance with accounting standards

The half-year financial report is a general purpose financial report prepared in accordance with the requirements of the Corporations Act 2001 and Australian Accounting Standard AASB 134: Interim Financial Reporting.

 

The half-year financial report does not include all the notes of the type normally included in an annual financial report and shall be read in conjunction with the most recent annual financial report of the group.

 

Basis of preparation

The financial statements have been prepared on an accruals basis and are based on historical costs. The financial report is presented in Australian dollars.

 

The accounting policies and methods of computation applied by the Consolidated Entity in the consolidated interim financial report are the same as those applied by the Consolidated Entity in its consolidated financial report as at and for the year ended 30 June 2018, except as noted below.

 

New and amended standards adopted by the group

A number of new or amended standards became applicable for the current reporting period and the group had to change its accounting policies as a result of adopting the following standards:

 

·      AASB 9 Financial Instruments; and

·      AASB 15 Revenue from Contracts with Customers.

 

The impact of the adoption of these standards and the new accounting policies are disclosed below. The other standards did not have any impact on the group's accounting policies and did not require retrospective adjustments.

 

AASB 15 Revenue from Contracts with Customers - Impact of adoption

The group has adopted AASB 15 Revenue from Contracts with Customers from 1 July 2018. In accordance with the transition provisions in AASB 15, the group has adopted the new rules retrospectively however there was no material impact on the amounts disclosed previously and as a result there has been no restatement required as a result of reclassification or remeasurement and no change to the previously disclosed accounting policies.

 

AASB 9 Financial Instruments - Impact of adoption

AASB 9 replaces the provisions of AASB 139 that relate to the recognition, classification and measurement of financial assets and financial liabilities, derecognition of financial instruments, impairment of financial assets and hedge accounting.

 

The adoption of AASB 9 Financial Instruments from 1 July 2018 resulted in changes in accounting policies. The new accounting policies are set out in note below. In accordance with the transitional provisions in AASB 9(7.2.15) and (7.2.26), comparative figures have not been restated.

 

(i) Classification and Measurement

On 1 July 2018 (the date of initial application of AASB 9), the Group's management has assessed which business models apply to the financial assets held by the group and has classified its financial instruments into the appropriate AASB 9 categories. There were no changes to the classification and measurement of financial assets.

 

(ii) Impairment of financial assets

The Group has one type of financial asset that is subject to AASB 9's new expected credit loss model, being trade and other receivables.

 

The group was required to revise its impairment methodology under AASB. There was no material impact of the change in impairment methodology on the group's retained earnings and equity.

 

While cash and cash equivalents are also subject to the impairment requirements of AASB 9, there was no material impairment loss identified.

 

 

Note 1  Significant accounting policies (continued)

 

AASB 9 Financial Instruments - Accounting policies applied from 1 July 2018

 

(i) Investments and other financial assets

 

Classification

From 1 July 2018, the group classifies its financial assets in the following measurement categories:

·      those to be measured subsequently at fair value (either through OCI, or through profit or loss); and

·      those to be measured at amortised cost.

The classification depends on the entity's business model for managing the financial assets and the contractual terms of the cash flows.

 

For assets measured at fair value, gains and losses will either be recorded in profit or loss or OCI. For investments in equity instruments that are not held for trading, this will depend on whether the group has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income (FVOCI).

 

The Group reclassifies debt investments when and only when its business model for managing those assets changes.

 

Measurement

 

At initial recognition, the group measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss (FVPL), transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at FVPL are expensed in profit or loss.

 

Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are solely payment of principal and interest.

 

Debt instruments

Subsequent measurement of debt instruments depends on the group's business model for managing the asset and the cash flow characteristics of the asset. There are three measurement categories into which the group classifies its debt instruments:

 

·      Amortised cost: Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortised cost. Interest income from these financial assets is included in finance income using the effective interest rate method. Any gain or loss arising on derecognition is recognised directly in profit or loss and presented in other gains/(losses), together with foreign exchange gains and losses. Impairment losses are presented as separate line item in the statement of profit or loss.

 

·      FVOCI: Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets' cash flows represent solely payments of principal and interest, are measured at FVOCI. Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest revenue and foreign exchange gains and losses which are recognised in profit or loss. When the financial asset is derecognised, the cumulative gain or loss previously recognised in OCI is reclassified from equity to profit or loss and recognised in other gains/(losses). Interest income from these financial assets is included in finance income using the effective interest rate method. Foreign exchange gains and losses are presented in other gains/(losses) and impairment expenses are presented as separate line item in the statement of profit or loss.

 

·      FVPL: Assets that do not meet the criteria for amortised cost or FVOCI are measured at FVPL. Again or loss on a debt investment that is subsequently measured at FVPL is recognised in profit or loss and presented net within other gains/(losses) in the period in which it arises.

 

Impairment

From 1 July 2018, the group assesses on a forward looking basis the expected credit losses associated with its debt instruments carried at amortised cost and FVOCI. The impairment methodology applied depends on whether there has been a significant increase in credit risk.

 

For trade receivables, the group applies the simplified approach permitted by AASB 9, which requires expected lifetime losses to be recognised from initial recognition of the receivables.

 

Going Concern

The consolidated financial statements have been prepared on a going concern basis which contemplates that the group will continue to meet its commitments and can therefore continue normal business activities and the realisation of assets and settlement of liabilities in the ordinary course of business.

 

Because of the nature of the operations, exploration companies, such as Tlou Energy Limited, find it necessary on a regular basis to raise additional cash funds to fund future exploration activity and meet other necessary corporate expenditure. At the date of this financial report, the ability of the group to execute its currently planned exploration and evaluation activities requires the group to raise additional capital within the next 12 months. Accordingly, the group is in the process of investigating various options for the raising of additional funds which may include but is not limited to an issue of shares or the sale of exploration assets where increased value has been created through previous exploration activity.

 

At the date of this financial report, none of the above fund raising options have been concluded and no guarantee can be given that a successful outcome will eventuate. The directors have concluded that as a result of the current circumstances there exists a material uncertainty that may cast significant doubt regarding the group's and the company's ability to continue as a going concern and therefore the group and company may be unable to realise their assets and discharge their liabilities in the normal course of business. Nevertheless, after taking into account the current status of the various funding options currently being investigated and making other enquiries regarding other sources of funding, the directors have a reasonable expectation that the group and the company will have adequate resources to fund its future operational requirements and for these reasons they continue to adopt the going concern basis in preparing the financial report.

 

The interim financial report does not include adjustments relating to the recoverability or classification of recorded assets amounts nor to the amounts or classification of liabilities that might be necessary should the group not be able to continue as a going concern.

 

Fair values

The fair values of Consolidated Entity's financial assets and financial liabilities approximate their carrying values. No financial assets or financial liabilities are readily traded on organised markets in standardised form.

 

Accounting estimates and judgements

Critical estimates and judgements are continually evaluated and are consistent with those disclosed in the previous annual report. 

 

Exploration & evaluation assets

During the prior period the Consolidated Entity converted a prospecting licence into a mining licence.  A mining licence allows the commencement of commercial development.  Despite this management believe that it is not practical to commence amortisation of the exploration and evaluation assets held in relation to the mining licence as the Consolidated Entity has not yet entered into production of a commercially viable resource. 

 

 

Note 2.    Expenses

 

Loss before income tax includes the following specific expenses:

Dec 2018

Dec 2017

 

 

 

 

 

 

 

 

$

$

Other expenses

 

 

 

 

 

 

 

Stock exchange and secretarial fees

 

 

 

 

              135,500

              141,453

Investor relations

 

 

 

 

 

                94,650

                79,283

Travel and accommodation

 

 

 

 

                69,687

              110,857

 

 

Note 3.    Exploration and evaluation expenditure

 

 

 

 

 

 

 

 

 

Dec 2018

June 2018

 

 

 

 

 

 

 

 

$

$

 

 

 

 

 

 

 

 

 

 

Exploration and evaluation assets

 

 

 

 

         57,124,581

         52,861,961

 

 

 

 

 

 

 

 

         57,124,581

         52,861,961

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dec 2018

Dec 2017

 

 

 

 

 

 

 

 

$

$

Movements in exploration and evaluation phase

 

 

 

 

 

Balance at the beginning of period

 

 

 

 

         52,861,961

         49,328,038

Exploration and evaluation expenditure during the half-year

 

 

           3,594,701

           2,081,971

Foreign currency translation

 

 

 

 

              667,919

              633,889

Balance at the end of period

 

 

 

 

         57,124,581

         52,043,898

 

The recoupment of costs carried forward in relation to areas of interest in the exploration and evaluation phase is dependent on successful development and commercial exploitation, or alternatively, sale of the respective areas of interest.

 

Note 4.    Property, plant and equipment

 

 

 

 

 

 

 

 

 

 

Dec 2018

June 2018

 

 

 

 

 

 

 

 

$

$

Plant and equipment at cost

 

 

 

 

4,098,073

2,289,826

Accumulated depreciation

 

 

 

 

(2,116,646)

(1,849,143)

 

 

 

 

 

 

 

 

1,981,427

440,683

 

 

 

 

 

 

 

 

 

 

Movements in Carrying Amounts

 

 

 

 

Dec 2018

Dec 2017

Movement in the carrying amount of plant and equipment between the beginning and the end of the current period:

$

$

 

 

 

 

 

 

 

 

 

 

Balance at the beginning of year

 

 

 

 

440,683

320,739

Additions

 

 

 

 

 

 

1,771,254

20,742

Disposals

 

 

 

 

 

 

-  

(788)

Depreciation

 

 

 

 

 

(238,742)

(87,501)

Foreign exchange movements

 

 

 

 

8,232

4,989

Carrying amount at the end of year

 

 

 

 

1,981,427

258,181

 

 

Note 5.    Contingent liabilities

 

The Directors are not aware of any contingent liabilities at 31 December 2018.

 

 

Note 6.    Contributed equity

 

 

 

 

 

 

 

Dec 2018

June 2018

Dec 2018

June 2018

 

 

 

 

 

 

Shares

Shares

$

$

 

 

 

 

 

 

 

 

 

 

Opening balance

 

 

 

354,224,275

304,042,848

90,463,822

83,380,184

Issue of ordinary shares during the year

 

54,889,260

50,181,427

5,488,927

6,894,517

Share issue costs

 

 

 

-  

-  

(259,989)

(221,602)

Transfer from share based payment reserve

 

-  

-  

-  

410,723

Ordinary shares fully paid

 

 

409,113,535

354,224,275

95,692,760

90,463,822

 

 

Performance shares

Details of performance shares issued, exercised, and expired during the financial year are set out below:

 

Vesting Date

Hurdle Price

Conditions

01/07/2018

Issued

Exercised

Expired

31/12/2018

31 January 2017

$0.28

See (i)

2,275,000

                 -  

                  -  

                     -  

         2,275,000

5 May 2019

 

$0.165

See (ii)

             -  

    2,475,000

                  -  

                     -  

         2,475,000

19 Sept 2019

$0.22

See (iii)

             -  

    2,475,000

                  -  

                     -  

         2,475,000

 

 

 

 

 

 2,275,000

    4,950,000

                  -  

                     -  

         7,225,000

                   

 

 

The outstanding performance shares have the following key terms and conditions:

 

Number

Performance condition

(i)

2,275,000

The shares will only vest once the share price of the Company's securities listed on the ASX reaches $0.28 and closes at that price or above for a period of 10 consecutive trading days.

(ii)

2,475,000

The shares will only vest once the share price of the Company's securities listed on the ASX reaches $0.165 and closes at that price or above for a period of 10 consecutive trading days.

(iii)

2,475,000

The shares will only vest once the share price of the Company's securities listed on the ASX reaches $0.22 and closes at that price or above for a period of 10 consecutive trading days.

The Performance Shares will lapse if:

·      None of the pricing conditions are met; or

·      the participant does not meet the service conditions.

 

 

Note 7.    Commitments

 

Exploration expenditure

In order to maintain an interest in the exploration tenements (Prospecting Licences) in which the group is involved, the group is committed to meet the conditions under the agreements. The timing and amount of exploration expenditure and obligations of the group are subject to the Prospecting Licence conditions and may vary significantly from the forecast based on the results of the work performed, which will determine the prospectivity of the relevant licence area. Subject to agreement with the appropriate government department, continued development of the area and renewal of the Prospecting Licences, expenditure and work program obligations may be carried forward and incurred in subsequent renewal periods. The obligations are not provided for in the financial statements.

 

Minimum expenditure requirements

 

 

 

 

 

 

 

 

 

Dec 2018

June 2018

 

 

 

 

 

 

 

 

$

$

not later than 12 months

 

 

 

 

       2,370,453

       4,153,861

between 12 months and 5 years

 

 

 

 

         259,042

           82,893

 

 

 

 

 

 

 

 

      2,629,495

       4,236,754

 

 

Note 8.    Segment information

 

Identification of reportable segments

Operating segments are identified on the basis of internal reports that are regularly reviewed by the executive team in order to allocate resources to the segment and assess its performance. The Company currently operates in one segment, being the exploration, evaluation and development of coalbed methane resources in southern Africa.

 

Segment revenue

As at 31 December 2018 no revenue has been derived from its operations (2017: $nil).

 

Segment assets

Segment non-current assets are allocated to countries based on where the assets are located as outlined below.

 

 

 

 

 

 

 

 

 

Dec 2018

June 2018

 

 

 

 

 

 

 

 

$

$

Botswana

 

 

 

 

 

 

         60,307,016

         53,949,941

Australia

 

 

 

 

 

 

                  8,642

                  5,225

 

 

 

 

 

 

 

 

         60,315,658

         53,955,166

 

 

Note 9.    Events occurring after balance date

 

Other than the matters discussed in this report, there has not arisen in the interval between the end of the half-year and the date of this report any item, transaction or event of a material and unusual nature likely, in the opinion of the directors, to affect significantly the operations of the group, the results of those operations or the state of affairs of the group in subsequent financial periods.

 

 

 

 


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
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