6th Dec 2005 07:01
Rockhopper Exploration plc06 December 2005 PRESS RELEASE For immediate release: 6 December 2005 Rockhopper Exploration plc Interim results Highlights: •Successful placing and listing on AIM, raising £15m before expenses •Award of two further licences in the North Falkland Basin, making Rockhopper the largest acreage holder in the North Falkland Basin €2D seismic survey commissioned on our 100% owned acreage •Agreement signed with Desire Petroleum to farm-in to 7.5% of two licences adjacent to Rockhopper owned acreage •Management team strengthened Commenting on the results, Chairman Pierre Jungels said: 'Our strategy in theFalklands is to mature a number of high quality drillable prospects on our 100%held acreage and to be ready for a substantial drilling campaign once theavailability and cost of drilling units are more favourable'. Managing Director, Sam Moody said 'The steps we have taken over the last sixmonths have laid the groundwork for the long-term future of the company'. Contacts:Rockhopper Exploration plcSam Moody, Managing Director 01722 414 419Peter Dixon-Clarke, Finance Director Aquila Financial Limited - [email protected] Reilly 020 7849 3319Yvonne Fraser 020 7849 3320 www.rockhopperexploration.co.uk Notes to editorsThe Rockhopper Group started trading in February 2004 to invest in and carry outan offshore oil exploration programme to the north of the Falkland Islands. TheGroup, which floated on AIM in August 2005, is currently the largest licenceholder in the North Falkland Basin and owns a 100 per cent. interest in fouroffshore production licences which cover approximately 5,800 sq. km. Theselicences have been granted by the Falkland Islands government. In total, the Board and its Consultant, the Falklands expert David Bodecott,have over 120 years experience in the oil industry, with specific expertise inthe field of exploration and in the region itself. Chairman's report This interim report for the six months ended 30 September 2005, is the firstreport following our successful placing and listing on AIM on 15th August 2005.As expected the Group incurred a loss for the period. The net proceeds of the placing of £13.9 million are on interest bearingdeposits along with funding already in the Group and will be drawn down asrequired in line with our plans for the business. Rockhopper Exploration is currently the largest acreage holder in the NorthFalkland Basin with 100% interests in four offshore production licences (PL023,PL024, PL032 and PL033) which cover approximately 5,800 sq. km. In addition theGroup has agreed to farm-in for 7.5% in Desire Petroleum plc's licences PL03 andPL04 where Desire expect to drill three exploration wells. PL023 and PL024 were awarded in November 2004 and cover an area of 4,200 sq. kmin water depths of less than 200 metres. The licences are close to the FalklandIslands themselves and their southern-most edge is located only 25 km from theIslands. PL023 and PL024 are already covered by 1832 km of 2D seismic data. TheGroup has signed a contract with Geophysical Service Incorporated (GSI) toundertake a new 2D seismic survey over approximately 900 line kilometers. Thesurvey should be completed early in 2006, with processing and interpretation ofthe data thereafter. PL032 and PL033 were awarded in June 2005 and cover an area of 1,620 sq. km inwater depths of between 350 and 500 metres, they are already covered by 1546kmof 2D and 368 km2 of 3D seismic data. Two wells have been drilled previously onthese licences in 1998 by Shell when the oil price was approximately $10 perbarrel and both demonstrated the presence of hydrocarbons, one flowing live oilto the surface. A new and significant 3D seismic programme has been designed tocover this acreage. Prospects and leads: Rockhopper's exploration team has reinterpreted theexisting 2D and 3D seismic data covering its licences and has identified anumber of prospects and leads which have the potential to contain significantdeposits of hydrocarbons. These will be better defined following the plannedacquisition of new 2D and 3D seismic data. PL03 and PL04 are operated by Desire Petroleum plc. Rockhopper will earn aninterest of 7.5% of these licences by contributing 15% of the dry hole cost ofthe expected 3 well exploration programme. The recently acquired 3D seismic dataon these licences is very encouraging and we look forward to the commencement ofdrilling operations once Desire secures a suitable rig. In summary, Rockhopper has a very exciting and prospective exploration portfolioin relatively shallow water, at a time that the oil industry is fiercelycompeting for access to that very type of opportunity. Our strategy in the Falklands is to mature a number of high quality drillableprospects on our 100% held acreage and to be ready for a substantial drillingcampaign once the availability and cost of drilling units are more favourable. Pierre JungelsChairman5 December, 2005 GROUP PROFIT & LOSS ACCOUNTFor the six months ended 30 September 2005 Notes 6 months 6 months Period ended ended ended 30.09.05 30.09.04 31.03.05 Unaudited Unaudited Audited £000 £000 £000 Administrative expenses (466) (3) (228) --------- --------- -------- Operating loss (466) (3) (228) Interest receivable 88 - 5 --------- --------- -------- Loss on ordinary activities beforetaxation (378) (3) (223) Taxation 5 - - - --------- --------- -------- Loss on ordinary activities aftertaxation (378) (3) (223) ========= ========= ======== Loss per share (pence): Basic 6 (0.84p) (0.01p) (3.27p)Loss per share (pence): Diluted (0.84p) (0.01p) (3.27p) GROUP BALANCE SHEET30 September 2005 Notes As at As at As at 30.09.05 30.09.04 31.03.05 Unaudited Unaudited Audited £000 £000 £000Fixed assets Intangible assets 259 19 236Tangible assets 8 - 2 --------- --------- -------- 267 19 238 --------- --------- --------Current assets Debtors 128 70 38Cash at bank 14,908 - 1,190 --------- --------- -------- 15,036 70 1,228 Creditors: amounts due within one year (407) (22) (106) --------- --------- -------- Net current assets 14,629 48 1,122 --------- --------- -------- Total assets less current liabilities 14,896 67 1,360 ========= ========= ======== Capital & reservesCalled up share capital 4 718 - 361Share premium account 3 14,919 70 1,362Merger reserve 3 (140) - (140)Profit & loss account 3 (601) (3) (223) --------- --------- -------- Equity shareholders' funds 3 14,896 67 1,360 ========= ========= ======== GROUP CASHFLOW STATEMENTfor the six months ended 30 September 2005 Notes 6 months 6 months Period ended ended ended 30.09.05 30.09.04 31.03.05 Unaudited Unaudited Audited £000 £000 £000 Net cash outflow from operatingactivities (557) - (147) Returns on investment and servicing offinanceInterest received 88 - 5 Capital expenditure and financialinvestmentPurchase of intangible fixed assets (23) - (236)Purchase of tangible fixed assets (8) - (2) -------- -------- ------- Net cash outflow before financing (500) - (380) FinancingIssue of share capital 15,000 - 595Share issue costs 2 (782) - -Issue of loan stock - - 975 -------- -------- ------- -------- -------- ------- Movement in net cash 13,718 - 1,190 ======== ======== ======= Reconciliation of operating loss to netcash outflow from operating activities Operating loss (466) (3) (228)Increase in debtors (90) - (38) (Decrease)/increase in creditors (3) 3 106Depreciation 2 - -Shares issued in lieu of fees - - 13 -------- -------- ------- Net cash outflow from operatingactivities (557) - (147) ======== ======== ======= 1 Basis of preparation The interim financial information has been prepared on the basis of theaccounting policies set out in the accounts for the year ended 31 March 2005.The interim financial information is unaudited but has been reviewed by theAuditors. The financial information does not constitute statutory accounts asdefined by section 240 of the Companies Act 1985. Comparative figures for theperiod ended 31 March 2005 are extracts from the non-statutory accounts for thatfinancial period. Those accounts upon which the auditor issued an unqualifiedopinion, did not include a statement under sections 237(2) or 237(3) of theCompanies Act 1985. 2 Share issue costs 6 months 6 months Period ended ended ended 30.09.05 30.09.04 31.03.05 £000 £000 £000 Share issue costs 1,086 - -Issue costs not yet paid andincluded in creditors (304) - - -------- -------- -------- 782 - - ======== ======== ======== 3 Note on reserves and reconciliation of movement in shareholders' funds Share Profit Share premium Merger and loss capital account reserve account Total £000 £000 £000 £000 £000 As at 1 February 2004 - - - - -New shares issued - - - - -Premium on shares issued - 70 - - 70Loss for the period - - - (3) (3) -------- -------- -------- -------- -------- As at 30 September 2004 - 70 - (3) 67 New shares issued 361 - - - 361 Premium on shares issued - 1,292 - - 1,292 Movement on merger reserve - - (140) - (140) Loss for the period - - - (220) (220) -------- -------- -------- -------- -------- As at 31 March 2005 361 1,362 (140) (223) 1,360 New shares issued 357 - - - 357 Premium on shares issued - 14,643 - - 14,643Share issue costs - (1,086) - - (1,086)Loss for the period - - - (378) (378) -------- -------- -------- -------- -------- As at 30 September 2005 718 14,919 (140) (601) 14,896 ======== ======== ======== ======== ======== 4 Issued Share Capital 30.09.05 30.09.04 31.03.05 No. No. No. Ordinary shares of £1 each - 1 -Ordinary shares of £0.01p each 71,774,605 - 36,060,320 ========== ======= ========= Details of shares issued prior to and including 31 March 2005 are disclosed in the Prospectus and non-statutory accounts prepared as at that date. 35,714,285 ordinary shares of £0.01p each were issued as part of the Admission to AIM on 15 August 2005. 5 Taxation The effective rate of tax is based on the estimated tax charge for the full yearat a rate of 0% (2004 - 0%). 6 Loss per share The calculation of basic loss per share is based upon the loss for the periodand the weighted-average number of 45,087,007 as at 30 September 2005 (31 March2005 - 6,816,486; 2004 -17,169,603) shares in issue during the period. As thegroup is reporting a loss for all periods then, in accordance with FinancialReporting Standard Number 22, the share options are not considered dilutive.This is because the exercise of the share options would have the effect ofreducing the loss per share. 7 Copies of the interim report Copies of the interim report will be dispatched to shareholders and will beavailable to the public at the Registered Office, Hilltop Park, Devizes Road,Salisbury, SP3 4UF. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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