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Half-year Report

30th Sep 2016 15:06

RNS Number : 3925L

New World Oil & Gas

30 September 2016

For immediate release 30 September 2016

NEW WORLD OIL AND GAS PLC

(the "Group" or the "Company")

Interim Report

For the six months ended

30 June 2016

Chairman's Statement

For the six months ended 30 June 2016, the Company reported a profit before tax of £108,000 (2014: Loss £922,000). During this period, the Board has worked to reduce the Company's cost base from historic levels, which has been achieved through a reduction in the size of the board and associated infrastructure.

The value of all assets relating to the Company's oil and gas activities have been fully written down and the Company's assets now principally comprise cash and short term loans. This Interim Report has been produced in pounds sterling (£) as opposed to US Dollars ($). This change has been made as the majority of the Company's assets now comprise cash or short term loans held in £ and therefore more accurately describes the Company's asset base. The Board also believes that £ is a more appropriate currency for the Company to report in going forward.

Strategy

As previously announced, given the difficulties facing the oil and gas industry and in raising funds for the Company's existing assets in Belize, the Company has been reviewing various acquisition opportunities in sectors other than oil and gas with a view to creating value for shareholders.

The Company's only remaining oil and gas asset is the Blue Creek Production Sharing Agreement in Belize, which is due to expire on 31 October 2016. The Board has recently announced that the Company is currently seeking to dispose or relinquish this asset. The Company has also commenced the process of dissolving the subsidiaries associated with its Danish licenses which were relinquished in September 2015.

On 9 May 2016, the Company announced that it had entered into a conditional agreement to acquire Big Sofa Limited, a company operating in the high growth sector of video analytics. The work on this acquisition is progressing well and the Company expects to update the market with regard to this possible acquisition in the near future. As at today's date, the Company has provided a total of £600,000 as a short term loan for working capital purposes to Big Sofa Limited.

On 9 May 2016, given that the proposed acquisition of Big Sofa Limited would constitute a reverse takeover under the AIM Rules, the Directors requested a suspension in the trading of the shares pending publication of the required AIM admission document. In the event that such a document is not published within six months of suspension, trading in the shares will be cancelled.

Nicholas Lee

Non-executive Chairman

30 September 2016

Enquiries:

Adam Reynolds

New World Oil and Gas plc

Tel. +44 (0) 7785 908158

Nicholas Lee

New World Oil and Gas plc

Tel. +44 (0) 20 7580 7576

Roland Cornish or Felicity Geidt

Beaumont Cornish Limited (Nominated Adviser)

Tel: +44 (0)20 7628 3396

Jeremy Garcia, Ben Simons or Fiona Henson

Vigo Communications (Financial Public Relations)

Tel: +44 (0)20 7830 9700

Consolidated Statement of Comprehensive Income

For the 6 months ended 30 June 2016

	Note	Six months ended 30 June 2016	Six months ended June 2015	Year ended 31 December 2015
		(Unaudited)	(Unaudited)	(Audited)
		£'000	£'000	£'000
Revenue		-	-	-

Impairment of intangible assets		-	(361)	(1,421)
Administrative expenses		(223)	(435)	(860)
Legal and professional costs		(103)	(131)	(347)
Foreign exchange differences on conversion to presentational currency		432	-	(12)
		_______	_______	_______
Operating Profit/(Loss)		106	(927)	(2,640)
Interest receivable		2	5	6
		_______	_______	_______
Profit / (Loss) before Taxation		108	(922)	(2,634)
Income tax		-	-	-
		_______	_______	_______
Loss for the period		108	(922)	(2,634)
		_______	_______	_______
Other comprehensive income:
Foreign exchange differences		5	12	12
		_______	_______	_______
Total comprehensive loss for the period		113	(910)	(2,622)
		======	======	======

Basic and diluted loss per share (expressed in pence)	2	0.02	(0.13)	(0.37)

Consolidated Statement of Financial Position

As at 30 June 2016

		30 June 2016	30 June 2015	31 December 2015
	Notes	(Unaudited)	(Unaudited)	(Audited)
		£'000	£'000	£'000

ASSETS
NON-CURRENT ASSETS
Intangible assets - exploration expenditure	3	-	993	-
Tangible assets - plant and equipment		-	5	-
		________	________	________
Total non-current assets		-	998	-
		________	________	________

CURRENT ASSETS
Trade and other receivables		386	264	-
Cash and cash equivalents		1,775	188	2,460
		________	________	________
Total current assets		2,161	452	2,460
		________	________	________
TOTAL ASSETS		2,161	1,450	2,460
		________	________	________
LIABILITIES
Current liabilities
Trade and other payables		(87)	(554)	(499)
		________	________	________
Total current liabilities		(87)	(554)	(499)
		________	________	________

NET CURRENT (LIABILITIES)/ASSETS		2,074	(102)	1,961
		________	________	________
NET ASSETS		2,074	896	1,961
		=======	=======	=======

SHAREHOLDERS' EQUITY
Share capital		-	-	-
Share premium		33,612	30,407	33,558
Share-based payment reserve		163	590	217
Retained losses		(31,718)	(30,113)	(31,826)
Foreign exchange reserves		17	12	12
		________	________	________
TOTAL EQUITY		2,074	896	1,961
		=======	=======	=======

Consolidated Statement of Cash Flows

For the 6 months ended 30 June 2016

	£'000	£'000	£'000
	Six months ended 30 June 2016	Six months ended 30 June 2015	Year ended 31 December 2015
	(Unaudited)	(Unaudited)	(Audited)

Cash flows from operating activities
Operating loss	106	(927)	(2,640)
Depreciation	-	4	9
Impairment of intangible assets	-	361	1,421
(Increase) / Decrease in receivables	(387)	67	338
Decrease in payables	(412)	(101)	(187)
Decrease in inventories	-	33	33
Foreign exchange differences	6	(5)	(10)
	________	________	________
Net cash outflow from operating activities	(687)	(568)	(1,036)
	________	________	________

Returns on investments and servicing of finance
Interest received	2	5	6
	________	________	________
Net cash inflow from returns on investments and servicing of finance	2	5	6
	________	________	_______
Investing activities
Payments to acquire intangible assets	-	-	(39)
	________	________	________
Net cash outflow from investing activities	-	-	(39)
	________	________	________

Cash flows from financing activities
Proceeds on issuing of ordinary shares	-	-	3,500
Cost of issue of ordinary shares	-	-	(722)
	________	________	________
Net cash inflow from financing activities	-	-	2,778
	________	________	________
Net decrease/(increase) in cash and cash equivalents	(685)	(563)	1,709

Cash and cash equivalents at beginning of period	2,460	751	751
	________	________	________
Cash and cash equivalents at end of period	1,775	188	2,460
	=======	=======	=======

Consolidated Statement of Changes in Equity

For the 6 months ended 30 June 2016

	Share premium	Share-based payment reserve	Retained loss	Foreign exchange differences	Total
	£'000	£'000	£'000	£'000	£'000

Balance at 1 January 2015	30,407	590	(29,191)	-	1,806

Total comprehensive loss for the period	-	-	(922)	-	(922)
Foreign exchange differences	-	-		12	12
	_______	_______	_______	_______	_______
At 30 June 2015	30,407	590	(30,113)	12	896
	======	======	======	======	======

Total comprehensive loss for the period		-	(1,713)	-	(1,713)

Transactions with owners in their

capacity as owners

Shares issued	3,500	-	-	-	3,500
Cost of shares issued	(722)	-	-	-	(722)
Expiration of unexercised warrants	373	(373)	-	-	-
	_______	_______	_______	_______	_______
At 31 December 2015	33,558	218	(31,826)	-	1,961
	======	======	======	======	======

Total comprehensive profit for the period		-	108	5	113

Transactions with owners in their

capacity as owners

Expiration of unexercised warrants	54	(54)	-	-	-
	_______	_______	_______	_______	_______
At 30 June 2016	33,612	163	(31,718)	(17)	2,074
	======	======	======	======	======

Notes to the Interim Report

1. PRINCIPAL ACCOUNTING POLICIES

Presentation of Interim results

This interim report was approved by the Directors on 30th September 2016. The results for the 6 months ended 30 June 2016 have not been audited. The figures have been prepared using applicable accounting policies and practices consistent with those adopted in the 2015 annual report and to be adopted in the 2016 annual report. The financial information contained in this interim report does not constitute statutory accounts as defined by the Companies (Jersey) Law 1991.

The interim accounts have been prepared under the historical cost convention in accordance with International Financial Reporting Standards as adopted by the European Union.

The Directors acknowledge their responsibility for the interim report and confirm that, to the best of their knowledge, the interim consolidated financial statements for the six months ended 30 June 2016 have been prepared in accordance with International Financial Reporting Standards, including IAS 34 "Interim Financial Statements", and complies with the listing requirements for companies trading securities on the AIM market. This interim report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report should be read in conjunction with the annual report for the year ended 31 December 2015.

The Directors are of the opinion that the funds held indicate that preparation of the accounts on a going concern basis is appropriate.

The Group's functional currency is US dollars and assets and liabilities are translated into pounds sterling, the presentation currency, at the rate of exchange ruling at the balance sheet date. The Group's profit or loss is translated at the exchange rates prevailing at the date of the transactions. The exchange differences arising on the translation are taken directly to other comprehensive income.

2. LOSS PER SHARE

	Six months ended 30 June 2016	Six months ended 30 June 2015	Year ended 31 December 2015
	(Unaudited)	(Unaudited)	(Audited)
	£'000	£'000	£'000

Profit/(Loss) for the period	108	(922)	(2,634)

Weighted average number of ordinary shares in issue - millions	703	703	703

Profit/(Loss) per share - basic (pence)	0.02	(0.13)	(0.37)

No diluted loss per share is presented as the effect of the exercise of outstanding warrants is to decrease the loss per share.

3. INTANGIBLE ASSETS - Exploration Expenditure

£'000

Cost

As at 1 January 2015

8,096

Additions in the six months ended 30 June 2015:

Currency translation differences

(77)

______

As at 30 June 2015:

8,019

______

Additions in the six months ended 31 December 2015:

Currency translation differences

501

______

As at 31 December 2015:

8,560

______

Additions in the six months ended 30 June 2016:

Currency translation differences

901

______

As at 30 June 2016:

9,461

______

Accumulated amortisation and impairment

As at 1 January 2015

6,740

Impairment charge

350

Currency translation differences

(64)

As at 30 June 2015

7,026

Impairment charge

1,096

Currency translation differences

438

As at 31 December 2015:

8,560

Impairment charge

Currency translation differences

901

9,461

As at 30 June 2016:

Carrying value at 30 June 2016

Carrying value at 31 December 2015

______-

Carrying value at 30 June 2015

993

______

The Directors undertook an impairment review of the Group's intangible assets as at 31 December 2015 and determined it prudent to record a full impairment reserve.

4. REVENUE AND SEGMENTAL ANALYSIS

Segment information is presented in respect of the Group's management and internal reporting structure. The Group had no revenue during the year.

Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis.

Operating and Geographical segments

The Group comprises the following operating segments:

Corporate - Parent company administrative costs, general business development and AIM related costs.

Exploration & development - costs in relation to the Group's direct oil and gas exploration operations.

Six months ended 30 June 2016 Business Segments	Corporate	Exploration & development	Total
	£'000	£'000	£'000

Result
Profit for the period	108	-	108
	======	======	======
Balance sheet
Segment assets	2,161	-	2,161
Segment liabilities	(87)	-	(87)
	_______	_______	_______
Net assets	2,074	-	2,074
	======	======	======

Geographical segments	Denmark	Belize	Jersey	Total
	£'000	£'000	£'000	£'000

Result
Profit for the period	-	-	108	108
	======	======	======	======

Balance Sheet
Segment assets - Intangible	-	-	-	-
- Other	-	-	2,161	2,161
Segment liabilities	-	-	(87)	(87)
	_______	_______	_______	_______
Net assets	-	-	2,074	2,074
	======	======	======	======

Six months ended 30 June 2015 Business Segments	Corporate	Exploration & development	Total
	£'000	£'000	£'000

Result
Loss for the period	(539)	(382)	(921)
	======	======	======
Balance sheet
Segment assets	410	1,040	1,450
Segment liabilities	(549)	(5)	(554)
	_______	_______	_______
Net assets	(139)	1,035	896
	======	======	======

Geographical Segments	Denmark	Belize	Jersey	Total
	£'000	£'000	£'000	£'000

Result
Loss for the period	(373)	(9)	(539)	(921)
	======	======	======	======
Balance Sheet
Segment assets - Intangible	-	993	-	993
- Other	18	29	409	456
Segment liabilities	(5)	-	(549)	(554)
	_______	_______	_______	_______
Net assets	13	1,022	(140)	895
	======	======	======	======

Year ended 31 December 2015 Business Segments	Corporate	Exploration & development	Total
	£'000	£'000	£'000

Result
Loss for the period	(1,157)	(1,477)	(2,634)
	======	======	======
Balance sheet
Segment assets	2,443	17	2,460
Segment liabilities	(483)	(16)	(499)
	_______	_______	_______
Net assets	1,960	1	1,961
	======	======	======

Geographical Segments	Denmark	Belize	Jersey	Total
	£'000	£'000	£'000	£'000

Result
Loss for the period	(408)	(1,069)	(1,157)	(2,634)
	======	======	======	======

Balance Sheet
Segment assets - Intangible	-	-	-	-
- Other	8	9	2,443	2,460
Segment liabilities	(16)	-	(483)	(499)
	_______	_______	_______	_______
Net assets	(8)	9	1,960	1,961
	======	======	======	======

5. EVENTS AFTER THE REPORTING DATE

- On 19 July 2016, the second tranche of the £500,000 loan to Big Sofa Limited for working capital purposes, being £250,000, was drawn down in full.

- On 1 September 2016, a further loan of £100,000 was provided to Big Sofa Limited on the same terms as the loan already advanced and as announced on 19 July 2016.

This information is provided by RNS

The company news service from the London Stock Exchange

END

IR ZBLFXQKFBBBL

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