20th Dec 2007 12:13
Rift Oil PLC20 December 2007 For Immediate Release 20 December 2007 Rift Oil PLC ("Rift" or the "Company") Interim Results for the six months ended 30 September 2007 Rift Oil PLC (AIM : RIFT), the oil and gas exploration company with assets inPapua New Guinea, is pleased to announce its interim results for the six monthsended 30 September 2007. Summary of key points: •Significant progress toward becoming a substantial gas producer based on non-binding MOU with Alcan •Douglas -1 upside potential reserves - 1TCF •Funding and rig for next development at Puk Puk-1 •Kelly Down managing drilling of Puk Puk-1 •Cash position: £11million Chairman, Ian Gowrie-Smith said: "Rift Oil is now in an exceptional position. We have gas reserves and an inprinciple agreement with Alcan which together have the potential to betransformational. We are looking at what could be worth billions. There areissues we need to prove and substantial hurdles to clear, but we have the rigand the funding. I look forward to reporting on progress in due course." For further information please contact: Rift Oil PLC 020 7340 9970David Lees, Finance Director Buchanan Communications 020 7466 5000Tim AndersonIsabel Podda RBC Capital Markets 020 7653 4000Andrew SmithSarah Wharry RIFT OIL PLC Chairman's statement Rift Oil has made considerable strides towards becoming a substantial andsuccessful gas producer. We have the benefit of a non-binding Memorandum ofUnderstanding with Rio Tinto Alcan ("Alcan") which, with successful outcomes,could lead to a 20-year agreement to supply Alcan with gas at its Alumina Plantat Gove in the Northern Territory of Australia. At current prices andconsumption, Alcan's oil supplied energy requirements could well exceed $10billion over the next 20 years. The Rift/Alcan MOU seeks to replace this energywith gas from Douglas and our surrounding structures. The symbiotic relationshipbetween Alcan's needs and our potential ability to supply this gas is at theleast extraordinary.Key milestones for Rift to date include: •our completed well, Douglas-1, was a gas discovery with potential meanrecoverable reserves of 231 BCF. We haveother structures identified byseismicindicating an upside total potential (on block) recoverable reserves ofover 1TCF • we have sufficient cash resources and the rig to drill the next well, Puk Puk-1 and flow test as needed • we have a non-binding MOU to sell this gas to a logical consumer, Alcan, subject to establishing sufficient reserves and securing a Gas Supply Agreement. Our immediate attention has been on the preparation for drilling Puk Puk-1,which lies about 25 km NW of Douglas-1 within PPL 235; successful results hereshould significantly enhance our potential reserves of gas. Our CompetentPerson's Report suggests the drilling of this prospect, expected to be completedin the first half of 2008, has a relatively good chance of yielding the resultsnecessary to make progress in discussions with Alcan, as envisaged under theterms of our non-binding MOU signed also by our partner Austral Pacific EnergyLtd. Austral Pacific have indicated that they may not participate in the costs ofdrilling Puk Puk-1 and therefore potentially suffer a loss of entitlement tosome consequential revenues from the sale of any gas thereby proven. Your Boardis in discussions with Austral Pacific and both parties have agreed thatdrilling Puk Puk-1 should commence at the earliest opportunity. We have employed Kelly Down Consultants Pty Ltd to manage the drilling of PukPuk-1 and flow testing of Douglas-1 and Puk Puk-1. They have extensiveexperience of this work in Papua New Guinea and elsewhere, and a team is now onthe ground in PNG. Long lead items such as casing and tubing have arrived inPort Moresby and rig refurbishment equipment is expected imminently. Puk Puk-1site preparation is underway and our 'port' on the Strickland River is beingmade ready to accept our equipment from barges in January/February 2008. The rigis expected to be flown to Puk Puk from Douglas-1 after refurbishment work iscompleted in February. Drilling at Puk Puk-1 will be followed by a flow test (ifwarranted) using a test separator. Once the flow test is completed, thatequipment is planned be flown to Douglas-1 to test that well. We will report the results of this planned drilling and testing programme asthey become available. Ian Gowrie-SmithChairman19 December 2007 The information presented in this announcement has been reviewed and verified byPeter Mikkelsen FGS, AAPG, non-executive Director. Mr Mikkelsen is the QualifiedPerson for the purposes of the AIM Guidance Note on Mining, Oil and GasCompanies dated March 2006. Mr Mikkelson is a geologist with 30 years ofupstream oil industry experience, including 15 years at exploration managerlevel or equivalent. He received a Bsc (Hons) degree in Geology from OxfordUniversity in 1976. RIFT OIL PLC Condensed consolidated income statementFor the period 1 April 2007 to 30 6 months 6 months 12 monthsSeptember 2007 to to to 30 30 31 March September September 2007 2006 2007 £'000 £'000 £'000 Unaudited unaudited unaudited Notes Revenue - - - Administration expenses (231) (74) (570) --------- --------- --------- Operating loss (231) (74) (570) Finance income 100 26 51 --------- --------- --------- Loss before tax (131) (48) (519)Income tax - - 80 --------- --------- --------- Loss for the period (131) (48) (439) ========= ========= ========= Loss per shareBasic & diluted (pence per share) 3 (0.028) (0.014) (0.125) RIFT OIL PLC Condensed consolidated balance sheet As at 30 September 2007 30 September 30 September 31 March 2007 2006 2007 £'000 £'000 £'000 unaudited unaudited unaudited NotesAssetsNon-current assetsProperty, plant and equipment 1,775 1,313 1,571Intangible assets 9,654 9,251 9,564 --------- --------- --------- Total non-current assets 11,429 10,564 11,135 Current assetsTrade and other receivables 125 244 32Cash and bank balances 11,028 670 1,201 --------- --------- --------- Total current assets 11,153 914 1,233 Current liabilitiesTrade and other payables 45 102 178 --------- --------- --------- Total current liabilities 45 102 178 Net current assets 11,108 812 1,055 Net assets 22,537 11,376 12,190 ========= ========= ========= EquityCapital and reservesShare capital 6,974 3,566 4,041Share premium 16,517 8,250 8,975Share option reserve 12 9 9Retained earnings (966) (449) (835) --------- --------- --------- Total equity 22,537 11,376 12,190 ========= ========= ========= RIFT OIL PLC Condensed consolidated statement of changes in equity Share Share Shares to be Share option Retained Total capital premium issued reserve earnings equity £'000 £'000 £'000 £'000 £'000 £'000 At 1 April 360 8,582 573 5 (401) 9,1192006 Loss fortheperiod (48) (48)after -------- -------- -------- -------- -------- --------taxTotalrecognisedincome andexpense (48) (48) Issue of 575 2,299 (573) 2,301sharesBonusissue of 2,631 (2,631)sharesEquitysettled 4 4shareoptions -------- -------- -------- -------- -------- --------At 30September 3,566 8,250 - 9 (449) 11,3762006 Loss fortheperiod (386) (386)after -------- -------- -------- -------- -------- --------taxTotalrecognisedincome andexpense (386) (386) Issue of 475 950 1,425sharesAssociatedissue (225) (225)costs -------- -------- -------- -------- -------- --------At 31March 4,041 8,975 - 9 (835) 12,1902007 Loss fortheperiod (131) (131)after -------- -------- -------- -------- -------- --------taxTotalrecognisedincome andexpense (131) (131) Issue of 2,933 8,067 11,000sharesAssociatedshareissue (525) (525)costsEquitysettled 3 3shareoptions -------- -------- -------- -------- -------- -------- At 30September 6,974 16,517 - 12 (966) 22,5372007 ======== ======== ======== ======== ======== ======== RIFT OIL PLC Condensed consolidated cash flow statement For the period 1 April 2007 to 30 September 6 months to 6 months to 12 months2007 to 30 30 31 March September September 2007 2006 2007 £'000 £'000 £'000 Unaudited unaudited unaudited Cash flows from operating activities Loss for the period (131) (48) (439) Adjustments for:Finance income (100) (26) (51)Depreciation 42 - 81Share option charge 3 2 9(Increase) in trade and otherreceivables (93) - (28)Decrease in trade and other payables (133) (87) (10) --------- --------- --------- Net cash used in operating activities (412) (159) (438) Cash flows from investing activitiesInterest received 100 26 51Payments for property plant andequipment (246) - (334)Payments for intangible assets (90) (2,112) (2,431) --------- --------- --------- Net cash used in investing activities (236) (2,086) (2,714) Cash flows from financing activitiesProceeds from issue of equity shares 11,000 2,063 3,726Issue costs (525) - (225) --------- --------- --------- Net cash generated by financingactivities 10,475 2,063 3,501 --------- --------- --------- Net increase / (decrease) in cash andcash equivalents 9,827 (182) 349Cash and cash equivalents at thestart of the period 1,201 852 852 --------- --------- --------- Cash and cash equivalents at the endof the period 11,028 670 1,201 ========= ========= ========= RIFT OIL PLC 1. Accounting policies Basis of preparation The unaudited consolidated interim financial information is for the six monthperiod ended 30 September 2007. The financial information has been prepared inaccordance with the accounting policies set out below which are based on therecognition and measurement principles of IFRS in issue as adopted by theEuropean Union (EU) and are effective at 31 March 2008 or are expected to beadopted and effective at 31 March 2008, our first annual reporting date at whichwe are required to use IFRS accounting standards adopted by the EU. The interimfinancial information does not include all of the information required for fullannual financial statements. From 1 April 2006 the Group has adopted International Financial ReportingStandards (IFRS) in the preparation of its consolidated financial statements.Comparative financial information previously published under UK GenerallyAccepted Accounting Principles has been restated on an IFRS basis for theopening balance sheet as at 1 April 2006, interim accounts as at 30 September2006 and for the year end 31 March 2007. The change in the groups reportedperformance and financial position on adopting IFRS is fully disclosed in theseinterim consolidated financial statements. The interim financial information has not been audited nor has it been reviewedunder ISRE 2410 of the Auditing Practices Board. The financial information setout in this interim report does not constitute statutory accounts as defined inSection 240 of the Companies Act 1985. The Group's statutory financialstatements for the year ended 31 March 2007 prepared under UK GAAP have beenfiled with the Registrar of Companies. The auditors report on those financialstatements was unqualified and did not contain a statement under Section 237(2)of the Companies Act 1985. First time adoption The opening IFRS balance sheet as at the date of transition on 1 April 2006 hasbeen prepared with regard to the measurement and recognition rules of IFRS 1'First time adoption'. The most significant optional exemptions adopted are setout below:- a) IAS 21 The effects of foreign exchange differences Cumulative translation differences which exist at the time of the transition canbe transferred into the retained earnings and the foreign exchange reservetherefore shows only differences arising after transition (IFRS 1 'First timeadoption of IFRS'). b) IFRS 3 Business combinations Business combinations prior to the date of transition to IFRS need not berestated (IFRS 1 'First time adoption of IFRS'). c) IFRS 2 Share based payments Share based payments have been adopted for share options not vested by 1 April2006. Accounting policies The principal accounting policies adopted by the group are set out below: Consolidation Subsidiaries are all entities over which the group has the power to govern thefinancial and operating policies generally accompanying a shareholding of overone half of the voting rights. The existence and effect of potential votingrights that are currently exercisable or convertible are considered whenassessing whether the group controls another entity. Subsidiaries are fullyconsolidated from the date on which control is transferred to the group. Theyare deconsolidated on the date control ceases. The group uses the purchase method of accounting for the acquisition of asubsidiary. The cost of an acquisition is measured by the fair value of theassets given, equity instruments issued and liabilities incurred or assumed atthe date of exchange, plus costs directly attributable to the acquisition.Identifiable assets acquired and liabilities and contingent liabilities assumedin a business combination are measured initially at their fair values at theacquisition date irrespective of the extent of any minority interest. The excessof the cost of acquisition over the fair value of the group's share of theidentifiable net assets acquired is recorded as goodwill. If the cost of theacquisition is less than the fair value of the net assets of the subsidiaryacquired the difference is recognised directly in the income statement. Inter-company transactions, balances and unrealised gains and losses ontransactions between group companies are eliminated except where they provideevidence of impairment. RIFT OIL PLC 1. Accounting policies (continued) Jointly controlled assets The Group is party to the joint ownership and control of assets but withoutsetting up a separate entity. The Group therefore accounts for its share of theincomes, costs, assets and liabilities resulting from the utilisation of thejointly controlled assets on the basis of the agreed percentage of ownership andincluding any amounts incurred jointly with the other venturers. Segmental reporting A business segment is a group of assets and operations engaged in productionthat is subject to risks and returns that are different from those of otherbusiness segments. A geographical segment is engaged in production within aparticular economic environment that is different from that in segmentsoperating in other economic environments. The Group's one principal activity is the exploration for and production of oiland gas, which is traded as a commodity on a world wide basis. This activity iscarried out in a single theatre of operations in Papua New Guinea. The directorsdo not therefore provide additional segmental reporting. Foreign currency translation a) Functional and presentational currency Items included in the financial statements of each of the group's entities aremeasured using the currency of the primary economic environment in which theentity operates (the functional currency). The company's functional currency andthe Group's presentational currency is Sterling. b) Transactions and balances Foreign currency transactions are translated into the functional currency usingthe exchange rates prevailing at the dates of the transactions. Foreign exchangegains and losses resulting from the settlement of such transactions and from thetranslation at reporting period end exchange rates of monetary assets andliabilities denominated in foreign currencies are recognised in the incomestatement. c) Group companies The results and financial position of all group entities that have a functionalcurrency different from the presentation currency are translated into thepresentation currency as follows: i. Assets and liabilities for each balance sheet presentedare translated at the closing rate at the date of the balance sheet; ii. Income and expenses for each income statement aretranslated at the transaction date but the average exchange rate for the periodis an acceptable approximation and; iii. All resulting exchange differences are recognised as aseparate component of equity. On consolidation, exchange differences arising from the translation of the netinvestment in foreign entities are taken to equity and as previously describedthe Group has claimed the transitional exemption from retrospective applicationof IAS 21 'The effects of changes in foreign exchange rates'. This means thatequity will show only post transition foreign exchange differences. Differencesinitially brought to equity are recycled to the income statement on disposal ofthe business. Income and expense recognition Revenue is the fair value of the total amount receivable by the group forsupplies of goods and services. VAT or similar local taxes and trade discountsare excluded. Interest income and expenditure are reported on an accruals basis. Dividendsreceived are recognised at the time of their distribution. Operating expensesare recognised in the income statement upon utilisation of the service or at thedate of their origin. RIFT OIL PLC 1. Accounting policies (continued) Borrowing costs All borrowing costs are expensed to the income statement on an accrual basisusing the effective interest method except interest on borrowings to financeexploration which is capitalised and depreciated with the rest of the costsassociated with viable exploration projects or written off where the project isnot deemed viable. Oil and gas expenditure Intangibles - exploration and evaluation assets Capitalisation Costs incurred prior to acquiring the rights to explore are charged directly tothe income statement. Licence acquisition costs and all costs incurred after the rights to explore anarea have been obtained, such as geological and geophysical costs and otherdirect costs of exploration (drilling, trenching, sampling and technicalfeasibility and commercial viability activities) and appraisals are accumulatedand capitalised as intangible exploration and evaluation (E & E) assets, pendingdetermination. E & E costs are not amortised prior to the conclusion of appraisal activities.At completion of appraisal activities if technical feasibility is demonstratedand commercial reserves are discovered, then, following development sanction,the carrying value of the relevant E & E asset will be reclassified as adevelopment and production asset, but only after the carrying value of the E & Easset has been assessed for impairment and, where appropriate, its carryingvalue adjusted. If, after completion of appraisal activities in an area, it isnot possible to determine technical feasibility and commercial viability or ifthe legal rights to explore expires or if the company decides not to continueexploration and evaluation activities then the costs of such unsuccessfulexploration and evaluation is written off to the income statement in the periodthe relevant events occur. Impairment On an annual basis or if and when circumstances indicate that the carrying valueof an E & E asset may exceed its recoverable amount an impairment review isperformed. The recoverable amount is the higher of its fair value less costs tosell and its value in use. If the carrying value exceeds the recoverable amount,the carrying value is reduced to the recoverable amount and charged to theincome statement in that period. Tangibles - development and production assets Capitalisation Development and production (D&P) assets represent the cost of developing thecommercial reserves and bringing them into production together with the E & Eexpenditures incurred in finding the commercial reserves previously transferredfrom intangible E & E assets as outlined in the policy above. Development assets are not depreciated until production commences. Depreciationis estimated on a unit of production method based on commercially provablereserves. The calculation takes account of the estimated future costs ofdevelopment of recognised proven and probable reserves, based on current pricelevels. Changes in reserve quantities and cost estimates are recognisedprospectively from the last reporting date. Impairment An impairment review is performed each year for any indication that the value ofthe Group's oil and gas production assets may be impaired. If the carrying valueof the assets is estimated to exceed the value in use of the assets based on thediscounted future cash flows then the excess value is written off to the incomestatement in that period. No allocation has yet been made to development and production assets asappraisal activities are not complete. RIFT OIL PLC 1. Accounting policies (continued) Financial assets Financial assets consist of cash and financial instruments. Financialinstruments consist of trade and other receivables. Financial assets areassigned to their different categories by management on initial recognition,depending on the purpose for which the asset was acquired. Derecognition of financial instruments occurs when the rights to receive cashflows from the investments expire or are transferred and substantially all ofthe risks and rewards of ownership have been transferred. An assessment forimpairment is undertaken at least at each balance sheet date whether or notthere is objective evidence that a financial asset or a group of financialassets is impaired. Provision against trade receivables is made when there is objective evidencethat the Group will not be able to collect all amounts due to it in accordancewith the original terms of those receivables. The amount of the write down isdetermined as the difference between the assets carrying amount and the presentvalue of estimated future cash flows. Financial liabilities The group's financial liabilities include trade and other payables. Financial liabilities are recognised when the group becomes a party to thecontractual agreements of the instrument. All interest related charges arerecognised as an expense in 'Finance costs' in the income statement. Trade payables are recognised initially at their fair value and subsequentlymeasured at amortised costs less settlement payments. Dividend distributions to shareholders are included in 'Other short termfinancial liabilities' when the dividends are approved by the shareholdersmeeting. Cash and cash equivalents Cash and cash equivalents include cash at bank and in hand, and additionallyincludes deposits repayable on demand by banks and other short term investmentswith original maturities of three months or less. Pension payments The group makes payments to a defined contribution pension plan for employeesand directors. Contributions payable in the year are charged in the incomestatement. RIFT OIL PLC 1. Accounting policies (continued) Income taxes Current income tax assets and liabilities comprise those obligations to fiscalauthorities in the countries in which the group carries out its operations. Theyare calculated according to the tax rates and tax laws applicable to the fiscalperiod and the country to which they relate. All changes to current taxliabilities are recognised as a component of tax expense in the incomestatement. Deferred income taxes are calculated using the liability method on temporarydifferences. This involves the comparison of the carrying amount of assets andliabilities in the consolidated financial statements with their respective taxbases. IAS 12 'Income taxes' does not require deferred tax to be recognised ontemporary differences relating to the initial recognition of goodwill or theinitial recognition of an asset or liability in a transaction that is not abusiness combination and that affected neither the accounting nor taxableprofit. Provision of deferred tax is required on the unremitted profits of jointventures if either the investor is unable to control the timing of theremittance or it is probable that reversal will not take place in theforeseeable future. Deferred tax liabilities are always provided for in full. Deferred tax assetsare recognised to the extent that it is probable that future taxable profitswill be available against which the temporary differences can be utilised.Deferred tax assets and liabilities are calculated at tax rates that areexpected to apply to their respective period of realisation, provided they areenacted or substantively enacted at the balance sheet date. Changes in deferred tax assets or liabilities are recognised as a component oftax expense in the income statement, except where they relate to items that arecharged or credited directly to equity (such as the revaluation of land) inwhich case the related deferred tax is also charged or credited directly toequity. Provisions Provisions are recognised when the present obligations arising from legal orconstructive commitment resulting from past events, will probably lead to anoutflow of economic resources from the group which can be estimated reliably. Provisions are measured at the present value of the estimated expenditurerequired to settle the present obligation, based on the most reliable evidenceavailable at the balance sheet date. All provisions are reviewed at each balance sheet date and adjusted to reflectthe current best estimates. Exploration and drilling operations are generally subject to decommissioningcosts at the end of their producing lives. Provisions in the accounts are madewhen obligations arise and can be quantified. The directors do not believe thatthere is yet a requirement to provide for decommissioning as no production hasbeen undertaken. Property, plant and equipment Property, plant and equipment are recorded at cost net of accumulateddepreciation and any provision for impairment. Depreciation is provided usingthe straight line method to write off the cost of the asset less any residualvalue over its useful economic life as follows: Oil drilling rig 20 years Machinery and equipment 4 years The oil drilling rig costs include incidental costs required to bring the riginto the appropriate location and condition to commence operations. Leases All leases are regarded as operating leases and the payments made under them arecharged to the income statement in the period in which they are incurred. Thecompany does not act as a lessor. Equity Share capital is determined using the nominal value shares that have beenissued. Equity is any contract which evidences residual interest in the assetsof the Group after deducting all its liabilities. Share based employee compensation The group operates equity settled share based compensation plans forremuneration of its employees. All employee services received in exchange for the grant of any share basedcompensation are measured at their fair values. These are indirectly determinedby reference to the share option awarded. Their value is appraised at the grantdate and excludes the impact of any non-market vesting conditions (e.g.profitability or sales growth targets). All share based compensation is ultimately recognised as an expense in profitand loss with a corresponding credit to the option reserve, net of deferred taxwhere applicable. If vesting periods or other vesting conditions apply, theexpense is allocated over the vesting period, based on the best availableestimate of the number of shares options expected to vest. Non market vestingconditions are included in assumptions about the number of options that areexpected to become exercisable. Estimates are subsequently revised, if there isany indication that the number of share options expected to vest differs fromprevious estimates. No adjustment to expense recognised in prior periods is madeif fewer share options ultimately are exercised than originally estimated. Upon exercise of share options, the proceeds received, net of any directlyattributable transaction costs, up to the nominal value of the shares issued areallocated to share capital with any excess being recorded as share premium. RIFT OIL PLC 2. Segmental reporting The Group's one principal activity is the exploration for and production of oiland gas, which is traded as a commodity on a world wide basis. This activity iscarried out in a single theatre of operations in Papua New Guinea. The directorsdo not therefore provide additional segmental reporting. 3. Loss per share 6 months to 6 months to 12 months to 30 September 30 September 31 March 2007 2006 2007 unaudited unaudited unaudited £'000 £'000 £'000 Loss for the yearattributable to equityshareholders (131) (48) (439) Pence per share Pence per share Pence per share Basic and diluted lossper share (0.028) (0.014) (0.125) Shares Shares Shares Issued ordinary sharesat start of the period 404,111,999 36,040,000 36,040,000Ordinary shares issuedin the period 293,333,333 320,571,999 368,071,999Issued ordinary sharesat end of the period 697,445,332 356,611,999 404,111,999 Weighted average numberof shares in issue forthe period. 474,445,332 333,438,666 349,938,000 ========== ========== ========== The diluted loss per share does not differ from the basic loss per share as theexercise of share options would have the effect of reducing the loss per shareand is therefore not dilutive under the terms of IAS 33. RIFT OIL PLC 4. Intangible assets Exploration and evaluation assets £'000 1 April 2006 7,133Additions 2,118Impairment - ---------- 30 September 2006 9,251Additions 313Impairment - ---------- 31 March 2007 9,564Additions 90Impairment - ---------- 30 September 2007 9,654 ========== 5. Issued share capital On 17 August 2007 the Company issued 293,333,333 shares at 3.75p per shareraising an aggregate of £11.0m and increasing the issued share capital to697,445,332 shares. 6. Transition to IFRS From 1 April 2006 the Group has adopted International Financial ReportingStandards (IFRS) in the preparation of its financial statements. The main items contributing to the change in financial information compared withthat reported under UK GAAP as at the transition date are shown below: IAS 21 'The effects of changes in foreign exchange rates' Under UK GAAP the Group reported differences in exchange rates on consolidationwithin retained earnings. Under IFRS the Group has claimed the exemption fromretrospective application of IAS 21 and is now required to show all posttransition differences on consolidation as a separate item within equity. Detailed reconciliations between UK GAAP and IFRS of both equity and losses areshown at the end of this note. RIFT OIL PLC 6. Transition to IFRS (continued) Reconciliation of equity as at 1 April 2006Balance sheet UK GAAP IFRS £'000 £'000AssetsNon-current assetsProperty, plant and equipment 1,318 1,318Intangible assets 7,133 7,133 --------- --------- Total non-current assets 8,451 8,451 Current assetsTrade and other receivables 4 4Cash and bank balances 852 852 --------- --------- Total current assets 856 856 Current liabilitiesTrade and other payables 188 188 --------- --------- Total current liabilities 188 188 --------- --------- Net current assets 668 668 --------- --------- Net assets 9,119 9,119 ========= ========= EquityCapital and reservesIssued capital 360 360Shares to be issued 573 573Share premium 8,582 8,582Share option reserve 5 5Retained earnings (401) (401) --------- --------- Total equity 9,119 9,119 ========= ========= RIFT OIL PLC 6. Transition to IFRS (continued) Reconciliation of equity as at 30 September 2006Balance sheet UK GAAP UK GAAP UK GAAP IFRS £'000 £'000 £'000 £'000 As previously Adjustment for Adjusted disclosed timingAssetsNon-current assetsProperty,plant andequipment 1,313 1,313 1,313Intangibleassets 9,251 9,251 9,251 --------- --------- --------- --------- Totalnon-currentassets 10,564 10,564 10,564 Current assetsTrade andotherreceivables 4 240 244 244Cash and bankbalances 670 670 670 --------- --------- --------- --------- Total currentassets 674 914 914 CurrentliabilitiesTrade andother payables 102 102 102 --------- --------- --------- --------- Total currentliabilities 102 102 102 --------- --------- --------- --------- Net currentassets 572 240 812 812 --------- --------- --------- --------- Net assets 11,136 240 11,376 11,376 ========= ========= ========= ========= EquityCapital andreservesIssued capital 1,392 2,174 3,566 3,566Share premium 10,186 (1,936) 8,250 8,250Share optionreserve 9 9 9Retainedearnings (451) 2 (449) (449) --------- --------- --------- --------- Total equity 11,136 240 11,376 11,376 ========= ========= ========= ========= The requirement, under IFRS, that the details of the changes in equity aredisclosed on an interim and full year basis has revealed a timing differencewith regard to the interim accounts at 30 September 2006 under UK GAAP. This isan adjustment to correct the timing of the entry for, primarily, the bonus issueof shares amounting to £2,631,000. RIFT OIL PLC 6. Transition to IFRS (continued) Reconciliation of equity as at 31 March 2007Balance sheet UK GAAP IFRS £'000 £'000AssetsNon-current assetsProperty, plant and equipment 1,571 1,571Intangible assets 9,564 9,564 --------- --------- Total non-current assets 11,135 11,135 Current assetsTrade and other receivables 32 32Cash and bank balances 1,201 1,201 --------- --------- Total current assets 1,233 1,233 Current liabilitiesTrade and other payables 178 178 --------- --------- Total current liabilities 178 178 --------- --------- Net current assets 1,055 1,055 --------- --------- Net assets 12,190 12,190 ========= ========= EquityCapital and reservesIssued capital 4,041 4,041Share premium 8,975 8,975Share option reserve 9 9Retained earnings (835) (835) --------- --------- Total equity 12,190 12,190 ========= ========= RIFT OIL PLC 6. Transition to IFRS (continued) Reconciliation of loss for the period ended 30 September 2006 UK GAAP IFRS £'000 £'000 Revenue - - Administration expenses (74) (74) --------- --------- Operating loss (74) (74) Finance income 26 26 --------- --------- Loss before tax (48) (48)Taxation - - --------- --------- Loss for the period (48) (48) ========= ========= Reconciliation of loss for the period ended 31 March 2007 UK GAAP IFRS £'000 £'000 Revenue - - Administration expenses (570) (570) --------- --------- Operating loss (570) (570) Finance income 51 51 --------- --------- Loss before tax (519) (519)Taxation 80 80 --------- --------- Loss for the period (439) (439) ========= ========= Cash flow As a result of the transition to IFRS the following changes have resulted in thecash flow statement. The definition of cash under UK GAAP is narrower than under IAS 7 'Cash flowstatements'. Under IFRS highly liquid investments, readily convertible to aknown amount of cash and with an insignificant risk of a change in value areregarded as cash equivalents. Under UK GAAP payments to acquire property, plant and equipment were classifiedas part of 'Capital expenditure and financial investment' whilst under IFRS suchpayments have been reclassified as part of 'Investing activities'. There are no other material differences between the cash flow statementpresented under IFRS and that presented under UK GAAP. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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