20th Feb 2006 12:41
Cambrian Oil & Gas PLC20 February 2006 20 February 2006 CAMBRIAN OIL & GAS PLC ("Cambrian Oil & Gas" or "the Company") Interim Group Results for the six-months ending 31st December 2005 The Directors of Cambrian Oil & Gas have pleasure in presenting the Company'sunaudited accounts for the six months ending 31st December 2005. Highlights • Acquisition of the Toktogul exploration licence area in the Kyrgyz Republic in July 2005; • A 100km 2D seismic commenced on 20 September 2005 in the Company's Tash Kumyr Licence; • A water injection project commenced on 13 October 2005 to improve oil recovery at the Beshkent-Togap oil field in the south west of the Kyrgyz Republic; • On 14 October 2005 the Company acquired a 5% interest in Elko Energy Inc, a private Canadian oil and gas exploration company that holds the largest offshore exploration permit in the Danish North Sea and is pursuing opportunities in Europe and other locations. With Cambrian Mining, the two companies own over 30% of Elko; • In December 2005, Elko acquired an approximate 30% interest in private Canadian company, Dragon Energy, which holds rights to a major oil re-development project in China; • Retained loss for the period of £256,000; • Cash of £1.3m as at 31 December 2005 John Byrne, Chairman of Cambrian Oil & Gas commented: "Cambrian Oil & Gas has advanced its projects in the Kyrgyz Republic andachieved a number of milestones, including the commencement of water injectionat the Beshkent-Togap oil field and acquisition of additional seismic over anumber of our exploration prospects at Tash Kumyr. We are well advanced inpursuing the objectives we set at the time of listing." ENDS Full Financial Statements follow For further information, please contact: Neale Taylor, Chief Executive Tim Cofman-NicorestiCambrian Oil & Gas W.H IrelandTel: +44 (0)20 7493 7671 Tel: +44 (0) 121 616 2101 Cambrian Oil and Gas Plc Interim Report for the six months ending 31st December 2005 The Directors have pleasure in presenting the Company's unaudited accounts forthe half year ending 31st December 2005. Chief Executive's Report The Company incurred a retained loss of £0.256 million for the six months periodto 31 December 2005 as a result of its active development and explorationactivities in the Kyrgyz Republic during the period. During the reporting period, the Company reports the following progress: • In July 2005, the Company acquired an additional Kyrgyz exploration licence area adjoining Lake Toktogul and which contains an anticlinal structural feature, which is expressed at the surface. The Company is currently screening available geological and geophysical data to define a forward exploration program. The Kyrgyz Government recently approved the Company's application for an increase in the licence area. • A 100km 2D seismic survey was commenced in the Company's Tash Kumyr Licence (Number NG-72-00) in September 2005. 50 km were acquired prior to the winter season and results are being processed; new information will be combined with results from reprocessing of approximately 100 km of existing seismic. All seismic data is being processed in Germany using advanced techniques suitable for areas containing overthrust layering. • A pilot water injection project was installed at the Beshkent-Togap oil field and water injection commenced in October 2005. Water injection continues into 2 injection wells and testing is in progress at adjoining production wells. Results will be compared to pre-injection levels to identify those wells where incremental oil is stimulated by water injection. If results are in line with the Company's original expectations, the Company expects to expand injection facilities across the field. • In October 2005, the Company, along with Cambrian Mining Plc, acquired an interest in Elko Energy Inc, a private Canadian oil & gas exploration company. In October Elko was granted a 5000 sq km offshore exploration licence in the Danish North Sea and is pursuing opportunities in Europe and other locations. The Company holds in interest in approximately 5% of Elko and the company's major shareholder, Cambrian Mining, holds an interest in approximately 27%. • In December 2005, Elko acquired an interest in 30% of Dragon Energy Inc., a private Canadian company ("Dragon"). Cambrian Mining also holds an interest in 2 million ordinary shares in Dragon. Dragon has signed a Joint Venture Agreement with a provincial subsidiary of CNPC providing for the re-development of the Maling Oilfield in the Gansu Province of China. The Maling Field contains an estimated 75 million barrels of remaining recoverable oil and Dragon's development plans indicate potential to achieve daily gross oil production exceeding 10,000 bpd within three years. • The Company has reviewed several opportunities in both the Kyrgyz Republic and other areas, and is actively screening a number of projects. RESULTS A summary of Company results for the six months ended 31st December 2005 is setout below: £'000 Loss on ordinary activities 267Tax on loss on ordinary activities - ______Loss for the financial period 267 ===== Loss per shareBasic loss per share 0.24p The Company's financial position remains in line with its expectations at thetime of re-admission. Your Board and management continues to seek new opportunities and remainsenthusiastic about the future prospects of the Company. Thank you for yourongoing support. Neale TaylorChief Executive20 February 2006 Independent Review Report to Cambrian Oil and Gas Plc Introduction We have been instructed by the Company to review the financial information setout on pages 6 to 11 and we have read the other information contained in theinterim report and considered whether it contains any apparent misstatements ormaterial inconsistencies with the financial information. This report, including the conclusion, has been prepared for and only for theCompany for the purpose of their interim report and for no other purpose. We donot, therefore, in producing this report, accept or assume responsibility forany other purpose or to any other person to whom this report is shown or intowhose hands it may come save where expressly agreed by our prior consent inwriting. Directors' responsibilities The interim report, including the financial information contained therein, isthe responsibility of, and has been approved by the Directors. Review work performed We conducted our review in accordance with guidance contained in Bulletin 1999/4review of interim financial information issued by the Auditing Practices Boardas if that Bulletin applied. A review consists principally of making enquiriesof the Directors and applying analytical procedures to the financial informationand underlying financial data and based thereon, assessing whether theaccounting policies and presentation have been consistently applied unlessotherwise disclosed. A review excludes audit procedures such as tests ofcontrols and verification of assets, liabilities and transactions. It issubstantially less in scope than an audit performed in accordance with AuditingStandards and therefore provides a lower level of assurance than an audit.Accordingly we do not express an audit opinion on the financial information. Review conclusion On the basis of our review we are not aware of any material modifications thatshould be made to the financial information as presented for the six monthsended 31st December 2005. CHAPMAN DAVIS LLPChartered Accountants2 Chapel CourtLondon SE1 1HH Consolidated Income Statement (Unaudited)For the 6 months ended 31st December 2005 Notes Six months ending 31st Period ending 30th December 2005 £'000 June 2005 £'000 (Unaudited) (Audited) Administrative expenses (308) (394) ______ ______OPERATING LOSS 2 (308) (394) ______ ______Interest received on bank deposits 41 54 ______ ______LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION (267) (340) Taxation 3 - - ______ ______LOSS FOR THE PERIOD (267) (340) Equity minority interest 11 23 ______ ______RETAINED LOSS FOR THE PERIOD (256) (317) ====== ====== Loss per share: 5 Basic (0.24p) (0.7p) The financial year end of Cambrian Oil and Gas Plc is 30th June. Thecomparatives in the consolidated Income Statement are for the period 1st March2004 to June 30th 2005. Consolidated Balance Sheet (Unaudited)At 31st December 2005 Notes 31st December 30th June 2005 2005 £'000 £'000 (Unaudited) (Audited)Fixed assetsIntangible assets 2,153 1,918Tangible assets 157 114Investments 243 - ______ ______ 2,553 2,032 ______ ______ Current assetsDebtors 257 93Cash at bank and in hand 1,300 2,408 ______ ______ 1,557 2,501 ______ ______Creditors: amounts falling due within one year (275) (431) ______ ______Net current assets 1,282 2,070 ______ ______Net assets 3,835 4,102 ====== ====== Capital and reservesCalled up share capital 1,082 1,082Share premium 1,758 1,758Merger reserve 1,602 1,602Profit and loss account (573) (317) ______ ______Equity shareholders' funds 6 3,869 4,125Equity minority interests (34) (23) ______ ______ 3,835 4,102 ====== ====== Group Cash Flow Statement (Unaudited)For the 6 months ended 31st December 2005 Notes Six months ending 31st Period ending 30th December 2005 £'000 June 2005 £'000 (Unaudited) (Audited) Reconciliation of operating loss to net cashoutflow from operating activitiesOperating loss (308) (394)Increase in debtors (164) (93)Increase in creditors 164 111Depreciation 4 -Net cash outflow from operating activities (304) (376) ______ ______CASH FLOW STATEMENTNet cash outflow from operating activities (304) (376) ______ ______Returns on investments and servicing offinance interest received 41 54 ______ ______Capital expenditurePurchase of tangible fixed assets (47) (114)Purchase of intangible fixed assets (235) (202)Purchase of Investments (243) - ______ ______ (525) (316) AcquisitionsNet cash acquired with subsidiary acquisition - 286 ______ ______FinancingIssue of share capital - 2,440Short term loans (320) 320 ______ ______ (320) 2,760 ______ ______(Decrease)/Increase in cash (1,108) 2,408 ====== ======Reconciliation of net cash flow to movement innet funds (Decrease)/Increase in cash in the period (1,108) 2,408Decrease/(Increase) in short term loans 320 (320) ______ ______Change in net funds (788) 2,088Net funds at beginning of period 2,088 - ______ ______Net funds at end of period 1,300 2,088 ====== ====== Notes to the Interim ReportFor the 6 months ending 31st December 2005 1. (a) Presentation of interim results This interim report was approved by the Directors on 20th February 2006. The interim results have not been audited, but were the subject of an independent review carried out by the Company's auditors, Chapman Davis LLP. Their review confirmed that the figures were prepared using applicable accounting policies and practices consistent with those adopted in the annual report. The financial information contained in this interim report does not constitute statutory accounts as defined by Section 240 of the Companies Act 1985. (b) Basis of preparation These financial statements have been prepared under the historical cost convention and in accordance with applicable United Kingdom accounting standards. (c) Basis of consolidation The financial statements of controlled entities are included in the consolidated financial statements from the date control commences until the date control ceases. The Group profit and loss account and balance sheet combine the accounts of the Company, its wholly-owned subsidiary, Zhibek Resources Plc and its 72% owned subsidiary CJSC KNG Hydrocarbons, together with its 85% owned subsidiary CJSC Zhibek Hydrocarbons, using the acquisition method of accounting. 2. OPERATING LOSS Six months ending 31st Period ending 30th December 2005 £'000 June 2005 £'000 (Unaudited) (Audited)By geographical area U.K. (62) (200)Kyrgyz Republic (194) (117) ______ ______ (256) (317) ====== ====== 3. TAXATION No taxation has been provided due to losses in the period. 4. DIVIDENDS The Directors do not recommend the payment of a dividend. 5. LOSS PER SHARE Six months ending 31st Period ending 30th December 2005 £'000 June 2005 £'000 (Unaudited) (Audited)Basic Loss for the period Loss (£'000) (256) (317)Weighted Average Number of Shares (million) 108.2 48 Loss Per Share - pence (0.24p) (0.7p) No diluted loss per share is presented as the effect of exercise of outstandingoptions is to decrease the loss per share. 6. RECONCILIATION OF MOVEMENT IN EQUITY SHAREHOLDERS' FUNDS Share capital Share premium Profit and Merger Total loss account Reserve £'000 £'000 £'000 £'000 £'000 At 1st July 2005 1,082 1,758 (317) 1,602 4,125(Loss) for the period - - (256) - (256) ______ ______ ______ ______ ______At 31st December 2005 1,082 1,758 (573) 1,602 3,869 ====== ====== ====== ====== ====== This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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