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UK Oil & Gas Inv PLC - Interim Results

RNS Number : 9836S
UK Oil & Gas Investments PLC
29 June 2018
 

                                                                                                                                                                                                29 June 2018

UK OIL & GAS INVESTMENTS PLC

("UKOG" or the "Company)

 

Unaudited results for the six-month period ended 31 March 2018

 

HIGHLIGHTS (during and post-period)

 

·    Horse Hill-1 ("HH-1") PEDL137 oil discovery, UKOG 32.435%: Post period end, 150-day extended well test ("EWT") operations commenced at HH-1. The EWT campaign includes three flow and pressure build-up sequences over the Portland, Kimmeridge Limestone 3 ("KL3") and KL4 oil pools, which in 2016 flowed at commercial initial rates of 323, 464 and 901 barrels of oil per day ("bopd") over short stabilised flow periods of 4, 7.5 and 8 hours, respectively. The EWT, if successful, is designed to enable a declaration of commerciality to be made, with first stable oil production targeted in 2019.

·   

·    PEDL234: The Oil and Gas Authority ("OGA") granted a 5-year licence extension to 31 December 2023.

·    PEDL234: Two further Kimmeridge exploratory drilling locations were selected in the central part of the licence. Site lease terms were agreed, and planning application work is underway with a target of drilling in 2019. The first well will target both a large Kimmeridge geological feature and appraise the overlying Godley Bridge Portland gas discovery.

·    PEDL234 BB-1/1z: An 18-month planning consent extension was submitted to West Sussex County Council. If granted, the extension to 31 March 2020 will provide sufficient time to review the results of the HH-1 EWT and completion drilling and testing of the next planned Kimmeridge exploration/Portland gas appraisal well in PEDL234 so as to be able to decide on a BB-1y sidetrack.

·    PEDL331 Arreton oil discovery, UKOG 65%: Xodus Competent Person's Report ("CPR")  (see below)  confirms Arreton-1 & 2  discovery contains 10.2 million barrels ("MMbbl") UKOG Net P50 Contingent Resources. Arreton-3 appraisal and Arreton South exploration well sites chosen, lease negotiations are near finalisation, and a planning application is expected to be submitted this summer. Drilling is targeted for late 2019.

·    PEDL143 Holmwood-1, UKOG 40%: In September 2017, UKOG acquired a further 10% interest in the PEDL143 licence (Holmwood) from Warwick Energy Exploration and Production Limited.

·    Capital Raise: £10 million raised in convertible debt during the period, and a further £5.5m from institutional investors via a share placing post period end.

·    Xodus CPR: Xodus reported 21.0 MMbbl Total UKOG Portfolio Net P50 Recoverable Resources; 13.2 MMbbl UKOG Net P50 discovered Contingent Resources from five oil fields and discoveries, of which 10.2 MMbbl UKOG Net P50 Contingent Resources lie within the Arreton discovery; 7.7 MMbbl UKOG Net P50 Prospective Resources within the Arreton and Holmwood prospects. Note: the KL play was excluded from the scope of work for this CPR. It is likely that a KL focussed CPR will be initiated following the HH-1 EWT campaign.

·    P1916 offshore UKOG 100%: In January 2018, UKOG announced that, in order to focus on the Arreton oil discovery and satellite exploration prospects, it had informed the OGA that it would not seek any further extension to the offshore P1916 Isle of Wight licence. Consequently, the P1916 licence lapsed.

 

CHAIRMAN'S STATEMENT

 

I am pleased to present the unaudited results of UK Oil & Gas Investments PLC for the six-month period ended 31 March 2018.

 

Over the past year our focus remained upon maximising UKOG's growth potential via a combination of our flagship KL oil exploration play, ably supported by low-risk appraisal and development projects such as the Horse Hill and Arreton Portland discoveries. Our focus will remain firmly on delivering success from this focus over the foreseeable future.

 

To this end, in May 2017 at BB-1/1z, we commenced a series of drilling and testing operations that are planned to continue through to the end of 2019. These operations are aimed at moving our 13.2 MMbbl of conventional discovered Weald and Isle of Wight Portland recoverable resources into reserves and, for the first time, to add Petroleum Resources Management System compliant Kimmeridge reserves and related cash flow into our portfolio.

 

At the time of writing, the Company, together with our partners in Horse Hill Developments Ltd ("HHDL"), are back at the Horse Hill site near Gatwick Airport to carry out the much anticipated EWT campaign. Horse Hill remains a fundamental and exciting part of UKOG's portfolio, and this is a key operational step in the Company's short history.

 

I remain very confident that the comprehensive long-term production testing campaign will provide the necessary data to fully assess Horse Hill's Portland and Kimmeridge commerciality and help move the project towards timely production in 2019. 

 

Our short-term flow tests at Horse Hill in 2016 provided the first step in our journey towards sustainable Horse Hill cash flow, demonstrating commercially viable metered initial stabilised rates of 323, 464 and 901 bopd from the Portland, KL3 and KL4 oil pools, respectively, over short 4 to 8 hour flow periods. We are confident that the EWT will build upon these short tests and move us closer towards our goal of  positive cash flow in 2019.

 

Horse Hill's 2018  forward plan will deliver a programme of three flow test sequences lasting in total around 150 days. These tests are designed to assess whether the well is connected to a commercially viable volume of oil in one or more of the threes discovered oil pools.

 

Following a successful EWT outcome and an associated declaration of commerciality, a two well drilling campaign is planned to commence in late 2018/early 2019, comprising a Portland appraisal well, HH-2, plus a Kimmeridge sidetrack, HH-1z. Both wells are designed to be completed as future permanent oil producers, with first oil targeted in 2019, subject to the necessary regulatory approvals and field development consent. A planning application to convert the site to a permanent producing site is underway with a submission expected in late summer/early autumn.

 

To maintain our Kimmeridge exploration momentum and following the significant positive technical knowledge of the wider KL play gained from BB-1/1z, the Company has accelerated its plans to drill two further Kimmeridge wells within the 300 km² PEDL234 licence. Two drilling sites have now been confirmed, with lease terms on the first site agreed and a planning application planned for admission this summer. Drilling is targeted in 2019. I am also excited that the first new PEDL234 well will also test both the Kimmeridge and the potentially significant overlying Godley Bridge-1 Portland gas discovery.

 

These new wells together with the Holmwood-1 well are also designed, if successful, to add further Kimmeridge and Portland recoverable resources to the portfolio.

 

The significant potential and further understanding of the KL oil play has been our prime focus over the past year. The BB-1/1z oil discovery, the first solely Kimmeridge targeted exploration well in the basin, located in the Weald's largest single licence, the 300 km² PEDL234, was designed as a bold 27 km step-out from HH-1. The well, designed to provide proof of our geological concept that oil within the KL, as found at the Company's HH-1 discovery, was part of a regionally extensive continuous oil deposit. The comprehensive data acquisition programme was also designed to significantly improve our understanding of the Kimmeridge play. We are pleased to say that the well delivered its primary technical objectives.

 

The multiple live, mobile oil shows seen in cuttings and drilling fluids, light oil seen in open fractures in cores, the recovery of oil and gas to surface from KL1 to KL4 flow tests, together with the light oil flowed continuously to surface from the KL5 test zone, presents further compelling evidence that the Upper Jurassic Kimmeridge of the central Weald Basin contains an extensive continuous oil accumulation.

 

These live, mobile oil occurrences, together with corresponding rock and electric log data also, in our view, demonstrate that a KL oil deposit of up to 1400 ft vertical extent exists at BB-1z. The BB-1/1z well also confirmed the Kimmeridge deposit's significant lateral extent and provided supporting evidence for a regionally extensive natural fracture system within the six naturally fractured KL reservoir units. The widespread existence of these fractures, capable of delivering flow to surface, is a key element of the Kimmeridge play.

 

Whilst the overall flow rates obtained from the well were to date sub-commercial, we are now actively pursuing a possible return to the site to drill and test a BB-1y sidetrack. An 18-month planning consent extension was submitted to West Sussex County Council on 14 June 2018 and, if granted, the extension to 31 March 2020, will provide sufficient time to enable a BB-1y sidetrack to be drilled and tested following completion of the next planned Kimmeridge exploration/Portland gas appraisal well in PEDL234.

 

We will continue to review our investment portfolio to ensure our resources are employed only on the most technically and economically viable projects. This process was recently illustrated by the removal of the offshore Isle of Wight licence (P1916) from the portfolio due to its low technical/economic potential and environmental sensitivity.

 

To fund our activities, UKOG raised £10 million in a convertible loan note of which £1.75 million is outstanding. In addition, we raised a further £5.5 million post period end from institutional investors via a share placing.

 

INVESTMENT AND OPERATIONAL SUMMARY

 

BROADFORD BRIDGE: (BB-1/1z, PEDL234, UKOG Interest 100%)

 

Drilling and testing of the BB-1/1z exploration well drilling and testing was completed, with detailed results announced by UKOG on 29 March 2018. Reservoir geology and oil occurrence at BB-1/1z and HH-1 demonstrated that the KL oil deposit has a 27 km north-south extent. The BB-1/1z well confirms the existence of a regional scale KL natural fracture network capable of delivering oil to surface without reservoir stimulation. UKOG is the largest licence holder within the most prospective area of the KL deposit.

 

Two further PEDL234 KL drilling sites have been finalised, both located within the thickest, most thermally mature and oil generative area of the KL deposit. A 2019 drilling campaign is scheduled after completion of the 2018/19 Horse Hill testing and drilling programme.

 

A further BB-1y sidetrack and/or alternate completion and reservoir stimulation techniques are under consideration to help deliver higher sustainable rates and possible future commerciality at BB-1/1z. 

 

Broadford Bridge next steps

 

An 18-month planning consent extension was submitted to West Sussex County Council. If granted, the extension to 31 March 2020, will provide sufficient time to enable a BB-1y sidetrack to be drilled and tested following completion of the next planned Kimmeridge exploration/Portland gas appraisal well in PEDL234.

 

HORSE HILL: (HH-1, PEDL137 and PEDL246, UKOG 32.435%)

 

HHDL's focus during the period has been to obtain all regulatory approvals and financing necessary to carry out the HH-1 EWT. This was achieved post period end with the final OGA approval announced on 13 June.

 

Post period end, 150-day EWT operations commenced at HH-1. The campaign includes three test sequences covering the Portland, Kimmeridge Limestone 3 ("KL3") and KL4  oil pools which flowed at commercial  initial rates of 323, 901 and 464 barrels of oil per day ("bopd") over short stabilised flow periods respectively. The EWT, if successful, is designed to enable a declaration of commerciality to be made, with a target of first stable oil production in 2019.

 

In order to enable permanent production and cash flow in a timely manner a planning application to convert the site and operation to production is being compiled and is planned to be submitted in late summer/early autumn 2018.

 

HOLMWOOD: (PEDL143, UKOG 40%)

 

The operator (Europa) now plans to drill and test the Holmwood-1 exploration well in late 2018 or 2019. The well will target both the Kimmeridge continuous oil deposit and conventional Portland and Corallian sandstones.

 

ISLE of WIGHT: (PEDL331, UKOG 65%, P1916 UKOG 100%)

 

Sites for the Arreton-3 appraisal well and an Arreton South exploration well have now been finalised. The Arreton-3 site lease is currently under negotiation, and the plan is to submit a planning application by the end of Summer 2018 for drilling targeted towards the end of 2019.

 

Offshore licence P1916 (UKOG 100%) was relinquished due to low technical/economic potential, environmental sensitivity of the site and to focus upon the higher reward, technically more robust, lower risk discovered oil of the onshore Arreton discovery and satellite prospects.

 

MARKWELLS WOOD: (PEDL126 UKOG interest 100%)

 

UKOG is preparing to re-submit a revised planning application for further extended flow testing to include the Kimmeridge section of the well.

 

BAXTERS COPSE

 

The initial term on the Baxters Copse licence is set to expire on the 30 June 2018 with a second term expiring on 30 June 2019. However to date the operator IGas Energy Enterprise Limited has not carried out its exploration commitment on the license. Therefore we believe that the licence will expire on 30 June 2018, although at this point in time we have not received formal notification of this

 

OTHER ASSETS

 

Horndean continued stable production throughout the period.  Avington has been shut in since the beginning of 2018 due to high operating costs and issues with one of the production wells. UKOG continues to review the economics of a Baxters Copse appraisal well (PEDL233, UKOG 50%).

 

FINANCIAL REVIEW

 

The operating loss for the six-month period to 31 March 2018 was £4.38 million compared to £1.07 million for the same period last year.  £2.85 million of this variance was due to a one-off impairment charge, of which the majority was attributable to intangible assets in Kimmeridge Oil & Gas Limited, specifically the costs associated with BB-1 prior to the drilling of sidetrack BB-1z, the primary testing hole.

 

Net cash outflow from operations increased to £1.76 million which was primarily driven by a £0.72 million decrease in trade payables. Investment in both exploration and evaluation assets and oil and gas properties increased to £4.95 million for the six-month period ending 31 March 2018.

 

During the period, UKOG entered into a £10 million convertible loan note. The loan agreement attracts a 0% interest and can be converted into new ordinary shares in the Company. The conversion price is the lower of either a share price of 8 pence, or 90% of the Company's lowest daily volume weighted average price during the five days prior to the conversion date. The Loan is convertible in tranches of not less than £250,000, with a limit of £3 million per quarter, unless otherwise agreed by the Company. Of the £10 million loan note, £4.75 had been converted into equity in the company by 31 March 2018, via the issue of 208,701,970 new ordinary shares.

 

Netting of the cash inflows from the convertible loan notes the cash and cash equivalents at the end of the period was £4.54 million.

 

On 15 June 2018, UKOG raised £5.5 million through the placing of 611,111,105 new ordinary shares in the Company at 0.9 pence per share.

 

OUTLOOK

 

Over the next twelve-month period the Directors expect to see a number of positive developments for the Company.

 

·      The HH-1 EWT will be completed, with its transformational potential for Horse Hill commerciality and for the future of the KL play in general; in the success case, HH-2 will then be drilled and a planning application for Horse Hill production submitted in tandem to Surrey County Council.

·      UKOG will progress leases and regulatory approvals for two further well sites and exploration wells in the north of PEDL234 and potentially for a BB-1y sidetrack.

·      PEDL331: UKOG will secure a site lease and regulatory steps necessary to drill an appraisal well on the Arreton Main oil discovery and look-alike Arreton South prospect in PEDL331.

·      Europa plans to drill the Holmwood-1 exploration well (UKOG 40%).

·      Markwells Wood: UKOG will submit a revised planning application for further flow testing to include the Kimmeridge section of the well. Necessary consents will also be sought from EA.

·      UKOG plans to continue to consolidate and expand its licence position in the UK onshore, particularly in its core Weald Basin Kimmeridge oil play, with additional exploration, development and production investments.

 

Your Board of Directors will continue to seek out further attractive investments in line with the UKOG's investment strategy.

 

Qualified Person Statement

 

Stephen Sanderson, UKOG's Executive Chairman, who has over 35 years of relevant experience in the oil industry, has approved the information contained in this announcement. Mr Sanderson is a Fellow of the Geological Society of London and is an active member of the American Association of Petroleum Geologists.

 

For further information please contact:

 

UK Oil & Gas Investments PLC

 

Stephen Sanderson / Kiran Morzaria                             

Tel: 01483 243450 

 

 

WH Ireland (Nominated Adviser and Broker)

 

James Joyce / James Bavister                                           

Tel: 020 7220 1666

 

 

Cenkos Securities PLC (Joint Broker)

 

Nick Tulloch / Neil McDonald                                           

Tel: 0131 220 6939

 

 

 

Public Relations

Brian Alexander / David Bick                                                                         Tel: 01483 243450

 

 

Glossary of Terms:

 

Term

Meaning

2C

Denotes the mid or best estimate scenario of Contingent Resources

bopd

Barrels of oil per day

Contingent Resources

Contingent Resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations, but the applied project(s) are not yet considered mature enough for commercial development due to one or more contingencies.  Contingent Resources are further categorised in accordance with the level of certainty associated with the estimates and may be sub-classified based on project maturity and/or characterised by their economic status.

continuous oil deposit

A petroleum accumulation that is pervasive throughout a large area, which is not significantly affected by hydrodynamic influences (i.e. the buoyancy of oil in water) and is not trapped by structural or stratigraphic geological conditions. The deposit, in contrast to conventional accumulations, has therefore not accumulated by the migration of petroleum over medium to long distances. The petroleum in such deposits is found within, or immediately adjacent or close to, the  pore spaces where the petroleum is generated, i.e. those pore spaces lying within petroleum source rocks containing organic rich compounds (kerogen) that, when heated over geological time, transform into petroleum. These accumulations are generally associated with organic-rich shales such as the Kimmeridge Clay Formation. Such accumulations do not generally contain significant volumes of free, mobile formation water and therefore have no observable hydrocarbon-water contacts. The extent of the accumulation is generally defined by the limit of where burial depths have been sufficient to transform organic matter within the petroleum source rock unit into petroleum

core or coring

A drilling technique that involves using a doughnut-shaped drilling bit to capture or "cut" a continuous cylinder-shaped core of undamaged in-situ rock. The core is captured in a steel pipe or "core barrel" above the bit. Core is normally cut in 30 feet lengths, or multiples of 30 feet, and normally with a diameter of 3.5 or 4 inches. Core is taken in petroleum reservoir rocks for detailed laboratory analyses of petrophysical and geomechanical parameters

discovery

A discovery is a petroleum accumulation for which one or several exploratory wells have established through testing, sampling and/or logging the existence of a significant quantity of potentially moveable hydrocarbons

flow test

A flow test or well test involves testing a well by flowing hydrocarbons to the surface, typically through a test separator. Key measured parameters are oil and gas flow rates, downhole pressure and surface pressure. The overall objective is to identify the well's capacity to produce hydrocarbons at a commercial flow rate

limestone

A sedimentary rock predominantly composed of calcite (a crystalline mineral form of calcium carbonate) of organic, chemical or detrital origin. Minor amounts of dolomite, chert and clay are common in limestones. Chalk is a form of fine-grained limestone. The Kimmeridge Limestones are effectively chalks being comprised of the remains of calcareous planktonic algae

live oil

Mobile oil that contains dissolved gas in solution

MMbbl

Million barrels

moveable oil

Oil that can flow or be pumped to the surface

naturally fractured reservoirs

Fractured reservoirs contain cracks or surface of breakage within rock; fractures can enhance permeability of rocks greatly by connecting pores together; naturally fractured reservoirs have been created over geological time by nature, not man-made via hydraulic fracturing

oil in place (OIP)

The quantity of oil or petroleum that is estimated to exist originally in naturally occurring accumulations in the ground before any extraction or production

P50 (best estimate)

a 50% probability that a stated volume will be equalled or exceeded

prospect

A project associated with a potential accumulation that is sufficiently well defined to represent a viable drilling target

sandstone

A clastic sedimentary rock whose grains are predominantly sand-sized. The term is commonly used to imply consolidated sand or a rock made of predominantly quartz sand

shale

A fissile rock that is formed by the consolidation of clay, mud, or silt particles, and that has a finely stratified or laminated structure. Certain shales, such as those of the Kimmeridge, often contain a significant proportion of organic material, which when subject to increasing temperature and pressure over geological time transform into petroleum (known as petroleum "source rocks")

sidetrack

Re-entry of a well from the well's surface location with drilling equipment for the purpose of deviating from the existing well bore to achieve production or well data from an alternative zone or bottom hole location, or to remedy an engineering problem encountered in the existing well bore.

step-out well

A well specifically designed to determine the lateral extent of a discovered hydrocarbon accumulation or play

wet gas

Natural gas, predominantly consisting of methane (C1), ethane (C2) and propane (C3), but also containing the longer molecular chain natural gases butane and iso-butane (C4), pentane and iso-pentane (C5). The C4 and C5 gases are created during oil-generation within a petroleum source rock unit when oil is thermally cracked. At Horse Hill these natural gases lie in solution with the oil in the KL3 and KL4 Kimmeridge Limestone reservoirs (i.e. solution or associated gas and not as a separate free-gas phase).

 

 

 

 

 

 

 

Consolidated Income Statement (Unaudited)
for the six months ended 31 March 2018

 

 

 

6 months

6 months

 

Notes

31 Mar 2018

31 Mar 2017

 

 

(Unaudited)

(Unaudited)

 

 

£'000

£'000

 

 

 

 

Revenue

 

 116

 104

Cost of sales

 

(54)

(167)

 

 

 

 

 

 

 

 

Gross profit

 

62

(63)

 

 

 

 

Operating expenses

 

 

 

Administrative expenses

 

(933)

(967)

Foreign exchange gains

 

(2)

-

Depletion & impairment expense

 

(2,852)

(39)

Share-based payment expense

 

(144)

-

 

 

 

 

 

 

 

 

Operating (loss)

 

(3,869)

(1,069)

 

 

 

 

Finance costs

 

(510)

 -

 

 

 

 

 

 

 

 

(Loss) before taxation

 

(4,379)

(1,069)

 

 

 

 

Taxation

 

 -

 -

 

 

 

 

(Loss) for the year attributable to equity holders of the parent

 

(4,379)

(1,069)

 

 

 

 

Other comprehensive income

 

 

 

Transfer to income statement

 

 -

 -

 

 

 

 

Other comprehensive income net of taxation

 

 -

 -

 

 

 

 

Total comprehensive loss attributable to equity holders of the

 

 

 

parent

 

(4,379)

(1,069)

 

 

 

 

(Loss) per share

 

 

 

 

 

 Pence

 Pence

 

 

 

 

Basic and diluted

2

(0.12)

(0.04)

 

 

Consolidated Statement of Financial Position (Unaudited)
as at 31 March 2018

 

 

Notes

31 Mar 2018

30 Sep 2017

 

 

(Unaudited)

(Audited)

 

 

£'000

£'000

 

 

 

 

Assets

 

 

 

Non-current assets

 

 

 

Exploration & evaluation assets

 

17,245

 15,110

Oil & Gas properties

 

1,413

 1,428-

Investment in associate

 

5,002

5,003

Goodwill on acquisition

 

 -

 -

Property, Plant & Equipment

 

 222

170

Available for sale investments

 

 -

 -

 

 

 

 

Total non-current assets 

 

 23,882

 21,711

 

 

 

 

Current assets

 

 

 

Inventory

 

4

 3

Trade and other receivables

 

3,960

 3,787

Cash and cash equivalents

 

 4,544

 1,748

Total current assets 

 

8,508

 5,539

 

 

 

 

Total Assets

 

32,390

27,250

 

 

 

 

Current liabilities

 

 

 

Trade and other payables

 

(3,009)

(3,725)

Borrowings

 

(5,250)

 -

 

 

 

 

Total current liabilities

 

(8,259)

(3,725)

 

 

 

 

Non-current Liabilities

 

 

 

Provisions

 

(359)

(359)

 

 

 

 

Total non-current liabilities

 

(359)

(359)

 

 

 

 

Total liabilities

 

(8,618)

(4,084)

 

 

 

 

Net Assets

 

 23,772

23,166

 

 

 

 

Shareholders' Equity

 

 

 

Share capital

 

 11,960

 11,938

Share premium account

 

 51,758

 46,939

Revaluation Reserve

 

 -

 -

Share-based payment reserve

 

 1,227

 1,172

Accumulated losses

 

(41,173)

(36,883)

 

 

 

 

Total shareholders' equity

 

23,772

 23,166

 

Consolidated Statement of Changes in Equity for the 6 months ended 31 March 2018

 

 

 

Share capital

Share premium

Share-based payment reserve

Accumulated losses

Total

 

 £'000

 £'000

 £'000

 £'000

 £'000

Balance at  1 October 2016

 11,842

 39,644

 1,224

(35,141)

 17,569

Loss  for the year

 -

 -

 -

(2,268)

(2,268)

Total comprehensive income

 -

 -

 -

(2,268)

(2,268)

Issue of shares

96

7,631

 -

 -

 7,727

Cost of share issue

 -

(336)

 -

 -

(336)

Share option exercised

 -

 -

(316)

316

 -

Share option expired

 -

 -

(210)

210

 -

Share based payments

 -

 -

474

 -

474

Balance at 30 September 2017

 11,938

46,939

1,172

(36,883)

23,166

Loss  for the period

 -

 -

 -

(4,379)

(4,379)

Issue of shares

22

4,819

 -

 -

4,841

Share option exercised

 -

 -

(89)

89

-

Share option expired

 -

 -

 -

 -

 -

Share based payments

 -

 -

144

 -

144

Balance at 31 March 2018

 11,960

 51,758

 1,227

(41,173)

23,772

 

Statement of Cash Flows (Unaudited)
for the six months ended 31 March 2018

 

 

6 months

6 months

 

Notes

31 Mar 2018

31 Mar 2017

 

 

(Unaudited)

(Unaudited)

 

 

£'000

£'000

 

 

 

 

Cash flows from operating activities

 

 

 

Loss from operations

 

(3,869)

(1,069)

Depletion & impairment

 

2,852

 39

Decrease / (increase) in trade and other receivables

 

(174)

(44)

(Decrease) / increase in trade and other payables

 

(715)

 246

Net cash (outflow) from operating activities

 

(1,761)

(828)

 

 

 

 

Cash flows from investing activities

 

 

 

Expenditures on exploration & evaluation assets

 

(4,950)

(547)

Expenditures on oil & gas properties

 

(22)

(99)

Expenditures on property, plant & equipment

 

(52)

-

 

 

 

 

Net cash (outflow) from investing activities

 

(5,024)

(646)

 

 

 

 

Cash flows from financing activities

 

 

 

Proceeds from issue of share capital

 

92

80

Net proceeds from the issue of convertible loan notes

 

9,490

 

Net cash inflow from financing activities

 

9,582

 80

Net change in cash and cash equivalents

 

 

2,796

(1,394)

 

 

 

 

Cash and cash equivalents at the beginning of the period

 

1,748

 2,444

 

 

 

 

Cash and cash equivalents at the end of the period

 

4,544

 1,050

 

Notes to the half-yearly results

 

1.         Basis of preparation

 

As permitted IAS 34, 'Interim Financial Reporting' has not been applied to these half-yearly results. The financial information of the Company for the six months ended 31 March 2018 have been prepared in accordance with the recognition and measurement principles of International Financial Reporting Standards, International Accounting Standards and Interpretations (collectively "IFRS") issued by the International Accounting Standards Board ("IASB") as adopted by the European Union ("adopted IFRS") and are in accordance with IFRS as issued by the IASB. The condensed interim financial information has been prepared using the accounting policies which will be applied in the Company's statutory financial statements for the period ending 30 September 2018. 

 

The financial information shown in this publication is unaudited and does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. The comparative figures for the financial year ended 30 September 2017 have been derived from the statutory accounts for 30 September 2017.  The statutory accounts have been delivered to the Registrar of Companies.  The auditors have reported on those accounts; their report was unqualified and did not contain statements under the section 498(2) or 498(3) of the Companies Act 2006.

 

2.         (Loss) per share

 

The calculation of the basic and diluted (loss) per share is based upon

 

 

 

6 months

 

6 months

 

 

31 Mar 2018

 

31 Mar 2017

 

 

(Unaudited)

 

(Unaudited)

Group

 

£'000

 

£'000

(Loss) attributable to ordinary shareholders

 

(4,379)

 

(1,069)

 

 

 

 

 

 

 

Number

 

Number

 

 

 

 

 

Weighted average number of ordinary shares for
calculating basic loss per share

3,623,661,823

 

2,590,051,681

 

 

 

 

 

 

 

Pence

 

Pence

 

 

 

 

 

Basic and diluted loss per share

 

(0.12)

 

(0.04)

 

3.         Availability of the Interim Report

 

Copies of the report will be available from the Company's registered office and also from the Company's website www.ukogplc.com

 

The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014.

 

 

 


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.
 
END
 
 
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Quick facts: UK Oil & Gas PLC

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Market: AIM
Market Cap: -
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