29th Sep 2006 07:02
Matra Petroleum PLC29 September 2006 Matra Petroleum Plc 29 September 2006 Interim results for the six months ended 30 June 2006 Matra Petroleum, the oil and gas exploration company focused on accessing theupstream oil and gas opportunities presented in Central Europe, today announcesits interim results for the six months ended 30 June 2006. For further information, please contact: Matra Petroleum www.matrapetroleum.comPeter Hind, Managing Director +44 (0) 7990 807 855 Aquila Financial Limited www.aquila-financial.comPeter Reilly +44 (0) 20 7202 2601 INTERIM REPORT FOR THE SIX MONTHS ENDED 30 JUNE 2006 MANAGING DIRECTOR'S STATEMENT I am pleased to present to you the Interim Report of Matra Petroleum plc for theperiod ended 30 June 2006. The main activities during this period were presented in our 2005 Annual Report.The Company was extremely active during this period with re-listing on AIM, fundraising, acquiring Inke Petroleum Pty Ltd and the drilling of our first well inHungary. In addition to our office in Budapest we have opened an office in Chertsey asour headquarters and our website www.matrapetroleum.com is now operational. Neil Hodgson joined us as Exploration Director at the end of May and has beenundertaking a review of the exploration potential of the Inke Concession andsupervising the reinterpretation of the 3-D seismic data and the AVO analysis toassist in hydrocarbon identification. I am pleased to say that we have achieved our objectives with this review by: •Defining two drilling targets within the 3-D area •Highlighting several prospects in the other areas of the block More details were given in the press release dated 25 September 2006. Although the rig market in Hungary has tightened a little we expect that we willbe able to drill the next exploration well in early 2007. Work on the existing 2-D seismic on the remainder of the block is continuing andit is likely that we will acquire further seismic to better define theseprospects. Our second main objective is to broaden the Company's portfolio by acquiringfurther low risk exploration and/or production opportunities. We have also beenvery active on that front and continue to review projects both within Hungaryand in nearby countries. It is difficult to report meaningfully on such activitygiven its confidential nature but whilst we haven't yet identified and securedthe next project for Matra, our work so far gives us confidence that we will besuccessful in acquiring additional assets that add value for shareholders. We have achieved great progress this year so far and with a very small and costeffective team. Our balance sheet shows that we are well funded to continue theexploration of the Inke Concession and to bring new projects into Matra. I thank you for your continued support and will report on further progress as ithappens. Peter HindManaging Director INDEPENDENT REVIEW REPORT Introduction We have been instructed by the Company to review the financial information forthe six months ended 30 June 2006 set out below and we have read theother information contained in the Interim Report and considered whether itcontains any apparent misstatements or material inconsistencies with thefinancial information. Our responsibilities do not extend to any otherinformation. Directors' responsibilities The Interim Report including the financial information contained therein is theresponsibility of, and has been approved by, the directors. The directors areresponsible for preparing the Interim Report in accordance with the AIM Ruleswhich require that the accounting policies and presentation applied to theinterim figures should be consistent with those applied in preparing thepreceding annual accounts except where any changes, and the reasons for them,are disclosed. Review work performed We conducted our review in accordance with guidance contained in Bulletin 1999/4"Review of Interim Financial Information" issued by the Auditing Practices Boardfor use in the United Kingdom. A review consists primarily of making enquiriesof management 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 test of controlsand verification of assets, liabilities and transactions. It is substantiallyless in scope than an audit performed in accordance with United Kingdom 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 30 June 2006. EK & Co 2003 LtdChartered Certified Accountants12B Talisman Business CentreBicesterOxonOX26 6HR FINANCIAL REVIEW The Company now produces consolidated group financial statements due to theacquisition of Inke Petroleum in April. Accounting for the acquisition of Inkehas resulted in €3.09 million of goodwill reported on the balance sheet undernon-current assets. Drilling of the Blue Topaz-9 well was completed in May which, together withprevious exploration expenditures, is represented by €3.45 million of intangibleexploration assets on the balance sheet. As a result of the placing in April, which raised £8 million (aproximately€11.50 million) before costs, the Company is in a strong financial position. Asat 30 June 2006, cash balances totalled €9.17 million. The loss for the period is €0.67 million. Overheads were incurred for themaintenance of our operations office in Hungary and for the administrativeoffice which was originally in Perth, Australia but is now in Chertsey, UK.Investment income of €84,975 was received as interest on cash balances and€15,730 was received for the sale of seismic data. Peter HindManaging Director GROUP INCOME STATEMENT 6 months to 6 months to Year to 30 June 30 June 31 December 2006 2005 2006 (unaudited) (unaudited) (audited) Note • • • Revenue 15,730 - -Administrationexpenses (767,823) (15,363) (191,603) -------- -------- ----------Operating loss (752,093) (15,363) (191,603)Interest income 84,975 21,707 58,419 -------- -------- ----------Profit/(loss)before taxation (667,118) 6,344 (133,184)Taxation - - - -------- -------- ----------Profit/(loss)after taxation (667,118) 6,344 (133,184)Loss attributable to minority - - -interests -------- -------- ----------Profit/(loss)attributable toequityshareholders (667,118) 6,344 (133,184) -------- -------- ---------- Profit/(loss) per shareBasic (cents pershare) 2 (0.456) 0.019 (0.311)Diluted (cents pershare) 2 (0.408) 0.018 (0.253) All transactions arise from continuing operations GROUP BALANCE SHEET As at As at As at 30 June 30 June 31 December 2006 2005 2005 (unaudited) (unaudited) (audited) Note • • • Assets Non-current assetsIntangible exploration assets 3,449,877 7,276 -Other intangible assets 3,085,263 - -Property, plant & equipment 61,121 - - -------- --------- ---------- 6,596,261 7,276 - Current assetsCash and cash equivalents 9,166,242 1,499,133 1,105,859Trade and other receivables 412,953 4,376 370,112 -------- --------- ---------- 9,579,195 1,503,509 1,475,971 -------- --------- ----------Total Assets 16,175,456 1,510,785 1,475,971 -------- --------- ---------- Equity and Liabilities Capital and reservesCalled up share capital 384,151 77,747 79,212Share premium account 15,434,067 1,405,464 1,424,480Other reserves 149,673 - 79,286Profit and loss account (800,302) 6,344 (133,184) --------- --------- ----------Attributable to equity holders 3 15,167,589 1,489,555 1,449,794Minority interest - - - --------- --------- ----------Equity 15,167,589 1,489,555 1,449,794 --------- --------- ---------- Current liabilitiesTrade and other payables 1,007,867 21,230 26,177 --------- --------- ----------Total Equity and Liabilities 16,175,456 1,510,785 1,475,971 --------- --------- ---------- GROUP CASH FLOW STATEMENT 6 months to 6 months to Year to 30 June 30 June 31 December 2006 2005 2005 (unaudited) (unaudited) (audited) Note • • • Net cash inflow/(outflow) fromoperating activities 4 (1,011,447) 1,491 (463,733) Investing activitiesInterest received 84,975 21,707 58,419Purchase of intangibleexploration (1,908,338) (7,276) -assetsPurchase of tangible assets (18,590) - -Net cash effect of purchase ofsubsidiaries 343,257 - - --------- --------- ----------Net cash inflow/(outflow) frominvesting activities (1,498,696) 14,431 58,419 Financing activitiesNet proceeds from issue of 10,570,526 1,483,211 1,511,173shares Net increase in cash and cash 8,060,383 1,499,133 1,105,859equivalentsCash and cash equivalents atthe beginning of period 1,105,859 - -Cash and cash equivalents at --------- --------- ----------the end of the period 9,166,242 1,499,133 1,105,859 --------- --------- ---------- NOTES TO THE ACCOUNTS 1. Basis of preparation of financial statements The interim financial information set out on herein has been prepared onthe same basis and using the same accounting policies as were applied inpreparing the accounts for the period ended 31 December 2005. The financial statements have been prepared under the historical costconvention. Following the completion in April 2006 of the acquisition of Inke Petroleum PtyLtd, consolidated group financial statements are required to be produced forthis interim and subsequent reports. Comparative information provided herein for2005 is for Matra Petroleum plc only. The functional currency of the Group is the Euro (•). This represents thecurrency of the primary economic environment in which the Group operates. TheInterim Report has been prepared in •. Transactions of Group companies not denominated in • are translated into • atthe rates ruling at the dates of the transactions. Non • amounts receivable andpayable at the balance sheet date are translated into • at the rates ruling onthat date. The financial information for the six months ended 30 June 2006 is unaudited. Inthe opinion of the directors the financial information for this period fairlypresents the financial position, results of operations and cash flows for theperiod and conforms with generally accepted accounting principles. 2. Profit/(Loss) per share The calculation of the basic loss per share is based on a loss of €667,118 forthe six months ended 30 June 2006 and the weighted average number of ordinaryshares outstanding of 146,309,392 during the period. The diluted earnings pershare is based on a weighted average number of shares outstanding of163,344,059. 6 months to 6 months to Year to 30 June 30 June 31 December 2006 2005 2005 • • • Basic weighted average number ofshares 146,309,392 32,827,068 42,794,953Dilutive share options 17,034,667 3,308,271 9,835,962 --------- --------- ----------Diluted weighted average number ofshares 163,344,059 36,135,339 52,630,915 --------- --------- ---------- 3. Shareholders' funds and changes in shareholders' equity Share Share Other Retained capital premium reserves earnings Total • • • • •Balance at 1January 2006 79,212 1,424,480 79,286 (133,184) 1,449,794New sharesissued 304,939 14,942,007 - - 15,246,946 Cost of shareissue - (932,420) - - (932,420)Equity-settledshare-basedpayments - - 57,283 - 57,283Other movements - - 13,104 - 13,104Net loss forthe period - - - (667,118) (667,118) ------- -------- ------- ------- --------Balance at 30June 2006 384,151 15,434,067 149,673 (800,302) 15,167,589 4. Reconciliation of operating loss to net cash inflow/(outflow) from operatingactivities 6 months to 6 months to Year to 30 June 30 June 31 December 2006 2005 2005 • • •Operating loss (752,093) (15,363) (191,603)(increase)/decrease in receivables 54,360 (4,376) (370,112)Increase/(decrease) in payables (479,718) 21,230 26,177Share-based payment expenses 57,283 - 71,805Foreign exchange gain 108,721 - - -------- -------- ----------Net cash inflow/(outflow) from operatingactivities (1,011,447) 1,491 (463,733) -------- -------- ---------- 5. Publication of Non-statutory Accounts The financial information set out in this Interim Report does not constitutestatutory accounts as defined in section 240 of the Companies Act 1985. Theauditors' report on these financial statements was unqualified and did notcontain a statement under Section 237(2) of the Companies Act 1985. DIRECTORS, SECRETARIES AND ADVISERS Directors BrokerCraig Ian Burton - Chairman Hanson Westhouse LLPPeter Hind - Managing Director 1 Angel CourtNeil Hodgson - Exploration Director London EC2R 7HJPeter Gunzburg - Non-Executive Director Registered Office Nominated AdviserAdderbury Hill Barn RFC Corporate Finance LtdMilton Road Level 8Adderbury 250 St George's TerraceOxon OX17 3HN Perth WA 6000 Australia Secretary AuditorsKatie Macdonald Keen EK & Co 2003 Ltd 12B Talisman Business Centre Bicester Oxon OX26 6HR Solicitors Principal BankerWatson, Farley & Williams LLP Bank of Scotland15 Appold StreetLondon EC2A 2HB RegistrarsComputershare Investor Services PLCPO Box 82The PavilionsBridgwater RoadBristol BS99 7NHPhone: 0870 702 0000 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
MTA.L