13th Aug 2007 07:01
Emerald Energy PLC13 August 2007 13 August 2007 EMERALD ENERGY PLC ("EMERALD" OR THE "COMPANY") ANNOUNCES INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2007 Highlights * Khurbet East No.2 appraisal well confirms presence of significant volumes of hydrocarbons in the Khurbet East field in Block 26, Syria * Emerald elected to enter into first extension of the exploration period in Block 26, Syria; * Exploration activities commenced in four new ANH contracts in Colombia; * Colombian gross production maintained at an average rate of 3,661 bopd (2006: 3,677 bopd); * Adjusted EBITDA for the period of $14.4 million (2006: $13.2million), 9% higher than in the same period last year; * Profit after tax for the period of $4.1 million (2006: $3.6million), 16% higher than in the same period last year; * Cash reserves of $42 million (as at 31 July 2007), following the issue of convertible bonds in July 2007. OUTLOOK In Block 26, Syria, Emerald is focused on further appraisal of the Khurbet Eastdiscovery with the objective of early development and production. Activity onKhurbet East is planned to continue with the acquisition of a 3D seismic surveyand may include another appraisal well prior to the submission of a commercialdiscovery report under the production sharing contract. Electing to enter thefirst extension of three years of the exploration period will allow furtherexploration within the block, including the area around the Khurbet Eastdiscovery where the acquisition of further seismic information is planned tomature the leads identified in the same exploration play. In Colombia, the focus is on the exploration potential of the new ANH licensesfor the Ombu, Maranta and Jacaranda blocks, while maintaining the grossproduction from the existing fields. Exploration activity for the remainder of2007 will concentrate on maturing the high potential prospects and leads withinthese blocks, where mean unrisked prospective resources are estimated to be inexcess of 40 million barrels of oil equivalent. The drilling campaign on theselicenses is expected to commence by early 2008. With two of the larger prospectsat shallow depths of between 3,000 and 6,000 feet, the Company looks forward toa cost-effective exploration drilling programme testing material prospectiveresources. The issue of $30 million senior unsecured convertible bonds in July and thestrong cash flow, generated from its existing production in Colombia, willpermit the Company to execute its current exploration and development plans. SUMMARY FINANCIAL RESULTS 1H 2007 1H 2006 --------- --------- mbbl mbbl --------- ---------Attributable gross production 663 665Entitlement production 408 441 --------- --------- Restated(**) $ '000 $ '000 --------- ---------Revenue 20,687 21,290Production costs (5,211) (6,042)Adjusted EBITDA(*) 14,424 13,216Profit before tax 8,289 7,697 --------- --------- Cents Cents --------- ---------Earnings per ordinary share on diluted basis 6.74 5.77------------------------------ --------- --------- (*) Adjusted EBITDA is earnings before interest, tax, depletion, depreciation,amortisation, exceptional items and non-cash charges relating to share basedcompensation. (**) Results for the six months ended 30 June 2006 are restated following to thechange of accounting policy in respect of production sharing under associationcontracts in Colombia, as disclosed in the annual report and accounts for theperiod ended 31 December 2006. In the six months to 30 June 2007, the Group achieved average revenue of $50.07per barrel of entitlement production, 4% higher than $48.28 per barrel, achievedin the same period of last year. The sales price is based upon the benchmarkprice of West Texas Intermediate and Vasconia Blend; it is subject to an oilquality price adjustment and a discount to reflect the cost of transporting theoil to the international markets. Production costs per barrel of entitlementproduction were $12.77, some 7% lower than $13.70 achieved in the same period oflast year reflecting improved production efficiencies achieved in the Gigante,Campo Rico and Vigia fields following the upgrade of production facilitiescarried out in 2006 and early 2007. OPERATIONS REVIEW Syria, Block 26 - Exploration and Appraisal The Tigris No.1 exploration well was drilled to a depth of 4,500 metres inFebruary. Emerald concluded, on the basis of the drilling and wireline loggingdata available, that it is unlikely that commercial hydrocarbons can be producedfrom this well and elected not to participate in the running of a liner in thewell. The Khurbet East No.1 exploration well was drilled to a total depth of 3,800metres in May and encountered multiple hydrocarbon bearing formations. TheKhurbet East structure is located approximately 12 kilometres southwest of theSouedieh field and 12 kilometres south of the Roumelan field, two producing oilfields in Block 26 operated by the Syrian Petroleum Company. The top of the Tertiary aged Chilou formation was identified at 1,319 metres andwireline logs indicated a potential net hydrocarbon interval of approximately26.4 metres. The top of the Cretaceous aged Massive formation was identified at 1,917 metreson the wireline logs which also indicated a net hydrocarbon interval ofapproximately 22.5 metres. An oil sample was recovered from this interval by awireline formation pressure sampler which recorded a hydrocarbon gradient overthe interval and did not identify a clear oil/water contact. The Triassic aged Butmah formation top was encountered at 2,850 metres and theoperator has estimated a net hydrocarbon interval of approximately 16 metres. Awireline formation sampler which recovered a gas sample to surface confirmed thepresence of hydrocarbon. The top of the Triassic aged Kurrachine Dolomite formation was identified at3,098 metres with hydrocarbon shows observed across an interval of approximately60 metres; the net hydrocarbon interval was uncertain as well-bore conditionsresulted in inconclusive wireline logs over this section. The presence ofhydrocarbon was confirmed during the well test of a 102 metre open-hole sectionof the Kurrachine Dolomite formation. Oil of approximately 35 degrees APIgravity was produced to surface under natural flowing conditions through a 32/64inch choke at a rate of up to 478 barrels per day, with a gas-to-oil ratioaveraging approximately 2,000 standard cubic feet per barrel. No further welltesting operations were conducted on this well. The well has been suspendedretaining the option for further testing or production operations in theKurrachine Dolomite in the future. The Khurbet East No.2 appraisal well, located approximately 1.2 kilometres tothe northeast of the Khurbet East No.1 discovery well, was drilled to a totaldepth of 2,050 metres. The well was drilled to appraise the Tertiary Chilou andCretaceous Massive formations. The Tertiary Chilou formation was encountered at 1,317 metres. The results of aformation pressure sampler indicated this formation to be mainly water bearingat this location and it is therefore considered unlikely to contain hydrocarbonin sufficient quantities to support commercial development. The Cretaceous Massive formation was encountered at 1,931 metres. Wireline logsindicated a gross hydrocarbon interval of 49 metres and a net hydrocarboninterval of 29 metres. No clear oil/water contact was seen on the logs andtherefore the thickness of the oil interval may be greater than currentlyinterpreted. Well testing operations were conducted over the upper 10 metres,approximately, of the Massive formation. During a 16 hour flow period, oilflowed to surface under natural flow through a 32/64 inch choke at an averagerate of 710 barrels per day, increasing to a final rate of 820 barrels per day.The oil was of approximately 26 degrees API gravity with a gas-to-oil ratio ofapproximately 15 standard cubic feet per barrel. The results of the testingoperation indicate very good formation permeability and it is believed that thisproduction rate would be materially enhanced with artificial lift methods. The Khurbet East No.2 well has been suspended as planned, retaining the optionsof further testing or future production from this location, and the rig has beende-mobilised from the location. Further appraisal of the Khurbet East discoverywill now continue with the acquisition of a 3D seismic survey over thestructure, planned to commence in September 2007. The results of this surveywill be used to plan further well locations. Emerald and its partner have elected to enter the first extension of theexploration period of the Block 26 Production Sharing Contract which shallcommence following the expiry of the initial exploration period on 23 August2007. The duration of the first extension is three years and the minimum workobligation is 250 square kilometres of 3D seismic and two exploration wells. Theterms of the first extension include the relinquishment of an area equivalent to25% of the area of Block 26, for which the partnership has selected an areaconsidered to be of limited exploration potential. Colombia - Exploration and Development The Company was awarded two new exploration and production contracts (Helen andJacaranda) by the National Hydrocarbon Agency of Colombia ("ANH"). These are inaddition to the two exploration and production contracts (Maranta and Ombu)awarded to the Company by the ANH in the second half of 2006. Explorationactivities are now focused on these four new areas as prospectivity has beenidentified on each and the ANH contracts include attractive fiscal terms. The Ombu Contract, in which Emerald has a 100% working interest, covers an areaof 300 square kilometres and is located in the Caguan Basin, to the south-westof the Llanos Basin. A single large prospect has been identified in the block. Awell was drilled on this prospect in 1975; it encountered hydrocarbons at anumber of levels over a 110 feet section and tested oil in the range of 11 to 14degrees API gravity. The future programme will address the lateral extent andproductivity of the accumulation. The initial phase of the exploration periodexpires in November 2007 when Emerald has the right to elect to enter the secondphase, with a duration of one year and a minimum work programme including thedrilling of one well. The Maranta block, in which Emerald has a 100% working interest, covers an areaof 365 square kilometres and is located north-east of the main producing oilfields in the Putumayo Basin in south-west Colombia. The Maranta block isadjacent to blocks in which Gran Tierra Energy Inc. and Solana Resources Limitedrecently announced two discoveries. A number of material prospects and leadshave been identified and will be matured with the acquisition of new 2D seismic.The initial phase of the exploration period expires in March 2008 when Emeraldhas the right to elect to enter the second phase, with a duration of one yearand a minimum work programme including the drilling of one well. The Helen block, in which Emerald has a 15% working interest, is also located inthe Putumayo Basin in south-west Colombia and covers an area of 213 squarekilometres. Emerald's working interest is fully carried through the initialphase of exploration following an agreement with Vetra Energy Group LLC("Vetra") under which Vetra pays 100% of the cost of the initial phase ofexploration and is assigned an 85% working interest in the block. The initialphase of the exploration period expires in October 2007. At the end of thisinitial phase the partners have the right to elect to enter the second phase,with a duration of one year and a minimum work programme including the drillingof one well. The Jacaranda Contract, in which Emerald has a 100% working interest, covers anarea of 235 square kilometres and is located in the Llanos Basin, in Colombia,130 kilometres to the southwest of the Company's Campo Rico operations. A singlelarge lead has been identified and will be matured with the acquisition of new2D seismic. The initial phase of the exploration expires in March 2008 whenEmerald has the right to elect to enter the second phase, with a duration of oneyear and a minimum work programme including the drilling of one well. The Company estimates the mean unrisked prospective resources of the prospectsand leads identified in these four blocks to be in excess of 40 million barrels,net to the Company. The Company intends to progress exploration activities inthese areas with the objective of conducting an exploration drilling programmein 2008 to test this potential. The Company has entered into an agreement with Compania GeofisicaLatinoamericana to acquire new 2D seismic data on the Maranta, Jacaranda, andOmbu blocks. The acquisition programme has commenced and it will satisfy the 2Dseismic commitment of the initial phase of exploration in each block. Drilling of the Aureliano No.1 exploration well on the Fortuna block wascompleted in late January, with the target La Luna limestone formations beingencountered as forecast. An extended phase of production testing was conducted,including an acid stimulation treatment. Following these operations, a flow rateof 10 bopd of 25 degree API gravity oil was established. The recovery of oilconfirmed the presence of hydrocarbons but the low flow rate indicates thatcommunication with a fracture network was not established. The Totumal No.4 well, in the Fortuna block, was re-entered in July with the aimof determining the potential to recommence production from the well. The Totumalfield produced 0.8 million barrels from the La Luna formations prior toabandonment in 1993. The well bore was cleaned out and a production tubingstring with a mechanical pump installed. Production commenced in July at aninitial rate of approximately 40 bopd of 25 API gravity oil. The re-entryprogramme for a second abandoned well on the Totumal field is being evaluated. Aureliano and Totumal fields are considered to be two parts of the samestructure, separated by a major fault with the hydrocarbon bearing La Lunahorizon encountered in both fields. An integrated study of the data acquiredduring the drilling and testing of the Aureliano No.1 well and the Totumal No.4well re-entry is being undertaken to determine the future potential of theTotumal and Aureliano accumulations. A fracture stimulation was conducted on the Umir formation in the Silfide No.1well, also in the Fortuna block, in May. The well commenced production after theworkover with an initial rate of 35 bopd, a modest increase over thepre-workover rate. The Campo Rico No.4 development well, drilled and completed in May, commencedproduction in June 2007 at an initial rate of approximately 360 bopd. The wellis located in the north of the Campo Rico field to recover reserves from theMirador formation that would not be recovered by the existing producing wells. Anew pipeline connects the well to the central Campo Rico field productionfacilities. Under the commerciality status granted by Ecopetrol for the CampoRico field development, the drilling and pipeline costs are shared withEcopetrol on a 50/50 basis, as is future production from the well. The Centauro Sur field development was awarded commerciality status by Ecopetrolin May 2007 and joint operations commenced. The reimbursable costs on this fieldhave been recovered and future costs and production for this field are sharedwith Ecopetrol on a 50/50 basis. In July 2007, Ecopetrol elected not to exercise its 50% back-in right in theVigia field and Emerald has elected for sole-risk field status. Emerald willcontinue to pay 100% of future costs and benefit from 100% of production untilthe sole-risk reimbursable costs on this field have been recovered, after whichEcopetrol will join operations with further costs and production being sharedwith Ecopetrol on a 50/50 basis. Initial interpretation of the 3D seismic acquired in the Gigante field supportsthe potential for a second development well in the field. Further advancedseismic processing is being undertaken to confirm this interpretation, prior toa decision on drilling the Gigante No.2 well. Colombia - Production Daily gross production for the second quarter of 2007 averaged 3,808 bopd,compared to 3,508 bopd achieved in the first quarter of 2007 and averaged some3,661 bopd for the six month period ending 30 June 2007, compared to 3,677 bopdfor the same period of 2006. During June 2007, the daily gross production averaged 3,859 bopd, comprisingapproximately 950 bopd from the Gigante field, 1,700 bopd from the Campo Ricofield, 700 bopd from the Vigia field, 500 bopd from the Centauro Sur field, andthe remainder from the Fortuna block. In July 2007, Ecopetrol's share of production from the joint operations area inthe Gigante field was increased from 25% to 50% as part of the costreimbursement arrangements under the Matambo Association Contract. Ecopetrolwill pay 50% of future operating and capital costs in the joint operations area. In Colombia, the Company aims to maintain gross production levels in theexisting fields through the use of workovers and, where appropriate, wellsidetracks, and, in 2008, to add to production levels through new discoveries,predominantly from the new blocks currently being explored. FINANCING In July 2007, Emerald issued $30 million senior unsecured convertible bonds.Credit Suisse Securities (Europe) Limited subscribed for all of the issue whichcomprised of Series A and Series B tranches. Series A bonds, due January 2012,issued at an aggregate principal amount of $15 million, pay a coupon of 5.875%and are convertible into ordinary shares of the Company at 290 pence per share.Series B bonds, due January 2013, issued at an aggregate principal amount of $15million, pay a coupon of 4.875% and are convertible into ordinary shares of theCompany at 270 pence per share. The bonds were issued and are redeemable at parvalue from July 2010 at the option of the Company, subject to certainconditions. Angus MacAskill, Chief Executive13 August 2006 UNAUDITED GROUP INCOME STATEMENT Half year to Half year to Year to 30 30 31 June June December 2006 2007 2006 Restated $ '000 $ '000 $ '000 --- --------------------- ------ -------- -------- -------- Revenue fromoil sales 20,687 21,290 45,856 Cost of sales -------- -------- -------- -------- Production costs (5,211) (6,042) (13,529) Expensed exploration costs (15) (98) (180) Depletion and depreciation (4,035) (3,579) (8,454) of oil and gas assets Write-offs of unsuccessful (1,288) (1,303) (9,537) exploration costs Impairment charge - - (5,901) -------- -------- -------- --------Total cost ofsales (10,549) (11,022) (37,601) -------- -------- --------Gross profit 10,138 10,268 8,255 -------- -------- --------Other income 972 634 1,262 General andadministrativeexpenses (3,401) (3,485) (8,327) -------- -------- --------Profit fromoperationsbefore tax andnet financecosts 7,709 7,417 1,190 -------- -------- --------Finance costs (62) (122) (199) Finance income 642 402 827 -------- -------- --------Profit beforetax 8,289 7,697 1,818 -------- -------- -------- -------- Current tax charge for the (2,369) (2,437) (968) period Deferred tax charge for the (1,815) (1,709) (3,574) period -------- -------- -------- --------Total taxexpense (4,184) (4,146) (4,542) Profit for theperiod 4,105 3,551 (2,724)---------------------- ------ -------- -------- -------- ---------------------- ------ -------- -------- -------- Earnings per ordinary share 6.89c 6.33c (4.86c) Earnings per ordinary share on 6.74c 5.77c (4.86c)diluted basis ------ -------- -------- ------------------------------ UNAUDITED GROUP AND COMPANY BALANCE SHEETS Group Company ----------------------------- --------------------------- 30 June 30 June 31 December 30 June 30 June 31 2007 2006 2006 2007 2006 December 2006 Restated Restated $ '000 $ '000 $ '000 $ '000 $ '000 $ '000---------------- ------ ------ ------- ------ ------ ------- Non-currentassets Intangible oiland gas assets 38,602 31,721 29,371 8,485 9,241 5,598 Tangible oiland gas assets 35,243 41,265 36,740 35,243 41,265 36,740 Other tangibleassets 244 664 261 244 664 261 Deferred tax 152 - 152 152 - 152 Investments - - - 30,183 22,480 23,839 ------ ------ ------- ------ ------ ------- 74,241 73,650 66,524 74,307 73,650 66,590 ------ ------ ------- ------ ------ -------Current assets Inventories 5,591 722 4,649 5,591 722 4,649 Trade andotherreceivables 3,179 852 4,963 3,124 868 4,908 Corporationtax debtor - - 905 - - 905 Cash andshort-termdeposits 11,047 18,095 15,762 11,047 18,095 15,762 ------ ------ ------- ------ ------ ------- 19,817 19,669 26,279 19,762 19,685 26,224 ------ ------ ------- ------ ------ ------- -------------- ------ ------ ------- ------ ------ -------Total assets 94,058 93,319 92,803 94,069 93,335 92,814------------- ------ ------ ------- ------ ------ ------- Currentliabilities Trade andother payables 1,598 4,153 7,118 1,598 4,169 7,118 Accruals 1,259 3,000 2,299 1,219 3,000 2,258 Provisions 410 410 410 410 410 410 Corporationtax creditor 502 - - 502 - - ------ ------ ------- ------ ------ ------- 3,769 7,563 9,827 3,729 7,579 9,786 ------ ------ ------- ------ ------ -------Non-currentliabilities Deferred tax 8,319 4,486 6,504 8,319 4,486 6,504 ------ ------ ------- ------ ------ ------- 8,319 4,486 6,504 8,319 4,486 6,504 ------ ------ ------- ------ ------ ------- Equity attributable to theshareholders Issued sharecapital 9,825 9,216 9,216 9,825 9,216 9,216 Share premium 50,359 40,838 40,838 50,359 40,838 40,838 Shares to beissued - 10,130 10,130 - 10,130 10,130 Retainedearnings andreserves 21,107 20,451 15,609 21,158 20,451 15,661 Foreignexchangereserve 679 635 679 679 635 679 ------ ------ ------- ------ ------ ------- 81,970 81,270 76,472 82,021 81,270 76,524 ------ ------ ------- ------ ------ ----------------------- ------ ------ ------- ------ ------ -------Totalliabilitiesand equity 94,058 93,319 92,803 94,069 93,335 92,814---------------- ------ ------ ------- ------ ------ ------- UNAUDITED GROUP AND COMPANY CASH FLOW STATEMENTS Group Company ----------------------------- ----------------------------- 30 June 30 June 31 December 30 June 30 June 31 December 2007 2006 2006 2007 2006 2006 Restated Restated $ '000 $ '000 $ '000 $ '000 $ '000 $ '000---------------- ------ ------- -------- ------ ------ ------- Cash flow from operatingactivities Profit fromoperationsbefore tax andnet financecosts 7,709 7,417 1,190 7,710 7,417 4,699 Share basedpayments 1,392 917 2,675 1,392 917 2,675 Depletion anddepreciation 4,035 3,579 8,454 4,035 3,579 8,454 Write-offs ofunsuccessfulexplorationcosts 1,288 1,303 9,537 1,288 1,303 6,028 Impairmentcharges - - 5,901 - - 5,901 ------ ------- -------- ------ ------ ------- 14,424 13,216 27,757 14,425 13,216 27,757 ------ ------- -------- ------ ------ -------Movement ininventory (942) (488) (4,415) (942) (488) (4,415)Movement intrade debtors 1,785 1,728 (1,584) 1,785 1,728 (1,529)Movement intradecreditors (3,041) (1,496) (1,824) (6,560) (1,496) (1,865) ------ ------- -------- ------ ------ ------- Cash flow fromoperatingactivities 12,226 12,960 19,934 8,708 12,960 19,948 ------ ------- -------- ------ ------ ------- Profit tax (961) (1,065) (1,861) (961) (1,065) (1,861)paid ------ ------- -------- ------ ------ ---------------------Net cash flowfromoperations 11,265 11,895 18,073 7,747 11,895 18,087-------------- ------ ------- -------- ------ ------ ------- Cash flow frominvesting activities Capitalinvestment inColombia (8,996) (10,077) (13,894) (5,477) (10,077) (13,894) Capitalinvestment in Syria (7,597) (5,074) (9,875) - - - Investment insubsidiaries - - - (7,597) (5,074) (9,942) Interestreceived 406 402 864 406 402 864 Exchange gain 393 - - 393 - - ------ ------- -------- ------ ------ ------- (15,794) (14,749) (22,905) (12,275) (14,749) (22,972) ------ ------- -------- ------ ------ ------- Cash flow from financingactivities Net proceedsfrom issue ofequity - 67 67 - 67 67 Interest paidand financecosts (219) (122) (158) (219) (122) (105) ------ ------- -------- ------ ------ ------- (219) (55) (91) (219) (55) (38)---------------- ------ ------- -------- ------ ------ ------- Net change incash andequivalents (4,748) (2,909) (4,923) (4,747) (2,909) (4,923)---------------- ------ ------- -------- ------ ------ ------- Cash andequivalents atperiod start 15,762 20,679 20,679 15,762 20,679 20,679 Period cashflow (4,748) (2,909) (4,923) (4,747) (2,909) (4,923) Currencytranslation 33 325 6 32 325 6---------------- ------ ------- -------- ------ ------ ------- Cash andequivalents atperiod end 11,047 18,095 15,762 11,047 18,095 15,762---------------- ------ ------- -------- ------ ------ ------- COMPANY STATEMENT OF CHANGES IN EQUITY Share Share Shares to be Retained Foreign Total Capital premium issued earnings exchange -------- --------- ----------- -------- -------- -------Balance at 31December 2005 9,203 40,784 10,130 15,658 635 76,410Translationdifferences - - - - 392 392Profit for theperiod - - - 3,551 - 3,551Issue of new - - - - - -share capitalShare basedpayments - - - 917 - 917--------------- ------- ------- ------- ------- ------- -------Balance at 30June 2006 9,203 40,784 10,130 20,126 1,027 81,270--------------- ------- ------- ------- ------- ------- ---------------------- ------- ------- ------- ------- ------- -------Balance at 31December 2005 9,203 40,784 10,130 15,658 635 76,410Translationdifferences - - - - 44 44Profit for theperiod - - - (2,672) - (2,672)Issue of newshare capital 13 54 - - - 67Share basedpayments - - - 2,675 - 2,675--------------- ------- ------- ------- ------- ------- -------Balance at 31December 2006 9,216 40,838 10,130 15,661 679 76,524--------------- ------- ------- ------- ------- ------- -------Translation - - - - - -differencesProfit for theperiod - - - 4,105 - 4,105Issue of newshare capital 609 9,521 (10,130) - - -Share basedpayments - - - 1,392 - 1,392--------------- ------- ------- ------- ------- ------- -------Balance at 30June 2007 9,825 50,359 - 21,158 679 82,021--------------- ------- ------- ------- ------- ------- ------- NOTES TO THE FINANCIAL INFORMATION Basis of Preparation The financial information presented above does not constitute statutory accountswithin the meaning of section 240 of the Companies Act 1985. This financialinformation has been prepared on the basis consistent with the accountingpolicies applied for the year ended 31 December 2006. The Group follows International Financial Reporting Standards as the basis forpreparation of its financial statements. These financial statements are preparedon the historical basis as modified by the requirement of IFRS to presentfinancial assets and financial liabilities at fair value, making the requiredadjustment through the income statement. Earnings per Ordinary Share Basic earnings per share amounts are calculated by dividing profit for theperiod attributable to ordinary equity holders of the Company by the weightedaverage number of ordinary shares outstanding during the period. Diluted earnings per share amounts are calculated by dividing profit for theperiod attributable to ordinary equity holders of the Company by the weightedaverage number of ordinary shares outstanding during the period plus theweighted average number of ordinary shares that would be issued on theconversion of all of the dilutive potential ordinary shares into ordinaryshares. The following reflects the income and share data used in the basic and dilutedearnings per share computations: Half year to Half year to Year to 30 30 31 December June June 2006 2007 2006 Restated $ '000 $ '000 $ '000 -------------------- ----------- ----------- ---------Profit/(loss)attributableto ordinaryshares 4,105 3,551 (2,724)-------------------- ----------- ----------- --------- Number of Number of Number of -------------------- shares shares shares ----------- ----------- ---------Basic weightedaverage numberof shares 59,592,994 56,085,376 56,089,217Dilutive potentially shares:Employee shareoptions 1,318,161 1,937,258 -Shares to beissued toSoyuzneftegasLimited - 3,500,000 --------------------- ----------- ----------- ---------Dilutedweightedaverage numberof shares 60,911,155 61,552,634 56,089,217 ----------- ----------- --------- Dividends No dividend was declared in the reporting period (2006: Nil). Auditors' Review These unaudited interim accounts have not been revived by the Group's auditors,BDO Stoy Hayward LLP. Approval of Accounts These unaudited interim accounts were approved by the Board of Directors on 10August 2007. Subsequent Events There were no material subsequent events between 30 June 2007 and the date ofthis document other than disclosed in this document. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Emerald Energy