24th Aug 2009 07:00
PRESS RELEASE
For immediate release: 24 August 2009
Matra Petroleum plc ("Matra" or the "Company")
Interim Results for six months ended 30 June 2009
Matra Petroleum plc today announces its interim results for the six month period ended 30 June 2009.
Peter Hind, Managing Director of Matra Petroleum, said:
"Our efforts in the first half of the year have been primarily focused on in-house technical work, raising sufficient funds to drill and complete the next well (Well-13) and in obtaining modifications to our existing license. In all three categories we have been successful.
Additional geological modelling has shown that we might expect a thicker and higher quality reservoir at the Well-13 location and our best estimate of reserves for the Sokolovskoe Field is 65 million barrels.
Support from Delek (our largest shareholder), Macquarie Bank, other existing shareholders together with new investors enabled us to raise £5.35 million through a placing of new shares in July. These funds will allow us to progress to the next stage of the development of the Sokolovskoe Field by drilling and completing Well-13 and working-over Well-12 to restore production. Following the successful fund-raising we have now contracted a rig for Well-13 and anticipate spud in September with results in the New Year."
For further Information, please contact:
|
Matra Petroleum |
www.matrapetroleum.com |
|
Peter Hind, Managing Director |
+44 (0) 7990 807855 |
|
|
|
|
Aquila Financial Limited (PR) |
www.aquila-financial.com |
|
Peter Reilly RFC Corporate Finance (Nominated Adviser) |
+44 (0) 118 979 4100 |
|
Steve Allen |
+61894802500 |
MANAGING DIRECTOR'S STATEMENT
Dear Shareholder,
I am pleased to present the Interim Report of Matra Petroleum plc for the six months ended 30 June 2009.
Our efforts in the first half of the year have been primarily focused on in-house technical work, raising sufficient funds to drill and complete the next well (Well-13) and in obtaining modifications to our existing license. In all three categories we have been successful.
The license modifications announced on 1 July are significant. Firstly we obtained an area extension to the North of the existing License area. Mapping of the Sokolovskoe structure showed it to be rather larger than we had originally thought and as much as 50% of the structure is contained within the area extension. In addition we were granted an extension to the period of our license until the end of 2010. There were no additional work obligations arising from these modifications.
Additional geological modelling has shown that we might expect a thicker and higher quality reservoir at the Well-13 location and our best estimate of reserves for the Sokolovskoe Field is 65 million barrels.
Support from Delek (our largest shareholder), Macquarie Bank, other existing shareholders together with new investors enabled us to raise £5.35 million through a placing of new shares in July. These funds will allow us to progress to the next stage of the development of the Sokolovskoe Field by drilling and completing Well-13 and working-over Well-12 to restore production. Following the successful fund-raising we have now contracted a rig for Well-13 and anticipate spud in September with results in the New Year.
Our application for a Production License over the entire Sokolovskoe Field is progressing well and we will report again once it is issued.
In all our dealings with them the Russian authorities have been extremely co-operative and the Russian government has stated its wish to encourage foreign investment in the Russian oil industry. At the beginning of the year the Russian Government reduced the Mineral Extraction Tax and Profit Tax and whilst the total government take remains high it is certainly encouraging to see some improvements in fiscal terms.
These improvements together with higher oil prices and at least a partial recovery in financial markets have combined with our fund-raising to make the future for Matra and its shareholders altogether brighter. I look forward to reporting our continued progress throughout this year.
On behalf of the Board.
Peter Hind
Managing Director
19 August 2009 INDEPENDENT REVIEW REPORT
FOR THE PERIOD ENDED 30 JUNE 2009
INDEPENDENT REVIEW REPORT TO MATRA PETROLEUM PLC
Introduction
We have been engaged by the company to review the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2009 which comprises the Condensed Consolidated Income Statement, the Condensed Consolidated Statement of Comprehensive Income, the Condensed Consolidated Balance Sheet, the Condensed Consolidated Cash Flow Statement, the Condensed Consolidated Statement of Changes in Equity and related notes.
We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.
Directors' responsibilities
The interim report, including the financial information contained therein, is the responsibility of and has been approved by the directors. The directors are responsible for preparing the interim report in accordance with the rules of the London Stock Exchange for companies trading securities on the Alternative Investment Market which require that the half-yearly report be presented and prepared in a form consistent with that which will be adopted in the company's annual accounts having regard to the accounting standards applicable to such annual accounts.
Our responsibility
Our responsibility is to express to the company a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review.
Our report has been prepared in accordance with the terms of our engagement to assist the company in meeting the requirements of the rules of the London Stock Exchange for companies trading securities on the Alternative Investment Market and for no other purpose. No person is entitled to rely on this report unless such a person is a person entitled to rely upon this report by virtue of and for the purpose of our terms of engagement or has been expressly authorised to do so by our prior written consent. Save as above, we do not accept responsibility for this report to any other person or for any other purpose and we hereby expressly disclaim any and all such liability.
Scope of review
We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, ''Review of Interim Financial Information Performed by the Independent Auditor of the Entity'', issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2009 is not prepared, in all material respects, in accordance with the rules of the London Stock Exchange for companies trading securities on the Alternative Investment Market.
BDO Stoy Hayward LLPChartered Accountants and Registered Auditors London
19 August 2009
CONDENSED CONSOLIDATED INCOME STATEMENT
FOR THE PERIOD ENDED 30 JUNE 2009
|
30 June |
30 June |
31 December |
|||
|
2009 |
2008 |
2008 |
|||
|
unaudited |
unaudited |
audited |
|||
|
|
|
Notes |
€ |
€ |
€ |
|
Continuing operations |
|||||
|
Revenue |
- |
753,407 |
1,077,388 |
||
|
|
Cost of sales |
|
- |
(687,655) |
(883,990) |
|
|
Gross profit |
|
- |
65,752 |
193,398 |
|
|
Other administration expenditure |
|
(854,704) |
(1,345,529) |
(2,625,726) |
|
|
Impairment of exploration expenditure |
- |
(2,526,153) |
(2,672,555) |
|
|
|
Loss on disposal of associate |
|
- |
- |
(1,316,533) |
|
|
Total administration expenditure |
|
(854,704) |
(3,871,682) |
(6,614,814) |
|
Loss from operations |
(854,704) |
(3,805,930) |
(6,421,416) |
||
|
Finance income |
389 |
95,102 |
107,074 |
||
|
Finance costs |
(6,986) |
(15,775) |
(21,537) |
||
|
|
Share of loss of associate |
|
- |
(1,099,559) |
(2,353,526) |
|
Loss before taxation |
(861,301) |
(4,826,162) |
(8,689,405) |
||
|
|
Taxation |
|
22,742 |
- |
(101,300) |
|
|
Loss after taxation |
|
(838,559) |
(4,826,162) |
(8,790,705) |
|
Loss per share |
|||||
|
Basic and diluted |
2 |
(0.00181) |
(0.01065) |
(0.01919) |
|
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 30 JUNE 2009
|
30 June |
30 June |
31 December |
|||
|
2009 |
2008 |
2008 |
|||
|
unaudited |
unaudited |
audited |
|||
|
|
|
Notes |
€ |
€ |
€ |
|
Loss after taxation |
|
(838,559) |
(4,826,162) |
(8,790,705) |
|
|
Other comprehensive income: |
|||||
|
|
Exchange differences on translating foreign operations |
|
(484,068) |
(1,451,911) |
(3,251,661) |
|
Other comprehensive income for the period |
(484,068) |
(1,451,911) |
(3,251,661) |
||
|
Total comprehensive income for the period |
|
(1,322,627) |
(6,278,073) |
(12,042,366) |
|
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 30 JUNE 2009
|
Share |
Share |
Foreign |
Other |
Retained |
Total |
|
|
capital |
premium |
currency |
Reserves |
earnings |
||
|
translation |
||||||
|
reserve |
||||||
|
Audited |
€ |
€ |
€ |
€ |
€ |
€ |
|
Total equity as at 1 January 2008 |
646,971 |
28,524,333 |
(1,074,112) |
1,390,142 |
(8,268,598) |
21,218,736 |
|
Total comprehensive income for the year |
- |
- |
(3,251,661) |
- |
(8,790,705) |
(12,042,366) |
|
Shares issued |
14,156 |
289,483 |
- |
- |
- |
303,639 |
|
Recognition of share based payment |
- |
- |
- |
(1,390,142) |
1,513,423 |
123,281 |
|
Total equity as at 31 December 2008 |
661,127 |
28,813,816 |
(4,325,773) |
- |
(15,545,880) |
9,603,290 |
|
Share |
Share |
Foreign |
Other |
Retained |
Total |
|
|
capital |
premium |
currency |
Reserves |
earnings |
||
|
translation |
||||||
|
reserve |
||||||
|
Unaudited |
€ |
€ |
€ |
€ |
€ |
€ |
|
Total equity as at 1 January 2008 |
646,971 |
28,524,333 |
(1,074,112) |
1,390,142 |
(8,268,598) |
21,218,736 |
|
Total comprehensive income for the period |
- |
- |
(1,451,911) |
- |
(4,826,162) |
(6,278,073) |
|
Shares issued |
12,957 |
260,481 |
- |
- |
- |
273,438 |
|
Share issue costs |
- |
- |
- |
- |
- |
- |
|
Recognition of share based payment |
- |
- |
- |
119,425 |
- |
119,425 |
|
Total equity as at 30 June 2008 |
659,928 |
28,784,814 |
(2,526,023) |
1,509,567 |
(13,094,760) |
15,333,526 |
|
Share |
Share |
Foreign |
Other |
Retained |
Total |
|
|
capital |
premium |
currency |
Reserves |
earnings |
||
|
translation |
||||||
|
reserve |
||||||
|
Unaudited |
€ |
€ |
€ |
€ |
€ |
€ |
|
Total equity as at 1st January 2009 |
661,127 |
28,813,816 |
(4,325,773) |
- |
(15,545,880) |
9,603,290 |
|
Total comprehensive income for the period |
- |
- |
(484,068) |
- |
(838,559) |
(1,322,627) |
|
Recognition of share based payment |
- |
- |
- |
- |
(639) |
(639) |
|
Total equity as at 30 June 2009 |
661,127 |
28,813,816 |
(4,809,841) |
- |
(16,385,078) |
8,280,024 |
CONDENSED CONSOLIDATED BALANCE SHEET
AS AT 30 JUNE 2009
|
30 June |
30 June |
31 December |
||
|
2009 |
2008 |
2008 |
||
|
unaudited |
unaudited |
audited |
||
|
|
|
€ |
€ |
€ |
|
Non-current assets |
||||
|
Property, plant & equipment |
47,432 |
82,124 |
60,502 |
|
|
|
Intangible assets |
7,361,495 |
9,416,458 |
7,757,249 |
|
7,408,927 |
9,498,582 |
7,817,751 |
||
|
Current assets |
||||
|
Inventories |
158,122 |
3,159 |
167,040 |
|
|
Trade and other receivables |
248,555 |
5,061,235 |
1,265,701 |
|
|
|
Cash and cash equivalents |
658,610 |
1,891,664 |
530,265 |
|
1,065,287 |
6,956,058 |
1,963,006 |
||
|
Total assets |
8,474,214 |
16,454,640 |
9,780,757 |
|
|
Capital and reserves attributable to equity holders of the Company |
||||
|
Ordinary shares |
661,127 |
659,928 |
661,127 |
|
|
Share premium |
28,813,816 |
28,784,814 |
28,813,816 |
|
|
Foreign currency translation reserve |
(4,809,841) |
(2,526,023) |
(4,325,773) |
|
|
Other reserves |
- |
1,509,567 |
- |
|
|
|
Retained earnings |
(16,385,078) |
(13,094,760) |
(15,545,880) |
|
Total equity |
8,280,024 |
15,333,526 |
9,603,290 |
|
|
Current liabilities |
||||
|
|
Trade and other payables |
194,190 |
1,121,114 |
177,467 |
|
Total liabilities |
194,190 |
1,121,114 |
177,467 |
|
|
Total equity and liabilities |
8,474,214 |
16,454,640 |
9,780,757 |
|
The financial statements are approved and authorised for issue by the Board on 19 August 2009
Peter Hind
Managing Director CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW
FOR THE PERIOD ENDED 30 JUNE 2009
|
30 June |
30 June |
31 December |
||
|
2009 |
2008 |
2008 |
||
|
unaudited |
unaudited |
audited |
||
|
|
|
€ |
€ |
€ |
|
Loss before taxation |
(861,301) |
(4,826,162) |
(8,689,405) |
|
|
Adjustments for: |
||||
|
Depreciation |
12,517 |
11,898 |
24,804 |
|
|
Share of loss of associates |
- |
721,399 |
2,353,526 |
|
|
Impairment of exploration expenditure |
- |
2,526,153 |
2,672,555 |
|
|
Loss on disposal of associate |
- |
1,316,533 |
||
|
Share based payments |
(639) |
119,425 |
123,281 |
|
|
Foreign currency differences |
(119,789) |
(246,670) |
(185,743) |
|
|
Cash used in operating activities before changes in working capital and provisions |
(969,212) |
(1,693,957) |
(2,384,449) |
|
|
(Increase) / decrease in inventories |
8,918 |
(1,965) |
(165,846) |
|
|
(Increase) / decrease in receivables |
1,017,146 |
(1,089,058) |
(875,388) |
|
|
|
Increase / (decrease) in payables |
16,723 |
12,898 |
(930,749) |
|
Cash used in operations |
73,575 |
(2,772,082) |
(4,356,432) |
|
|
|
Income taxes paid |
22,742 |
- |
(101,300) |
|
Cash used in operating activities |
96,317 |
(2,772,082) |
(4,457,732) |
|
|
Disposal of associate interest of Gemstone Properties Limited |
- |
633,204 |
||
|
Purchase of property, plant and equipment |
- |
(7,517) |
(13,297) |
|
|
|
Expenditure on oil and gas assets |
(40,964) |
(2,446,218) |
(1,700,684) |
|
Cash used in investing activities |
(40,964) |
(2,453,735) |
(1,080,777) |
|
|
Proceeds from issue of shares |
- |
273,438 |
303,639 |
|
|
Cash used in financing activities |
- |
273,438 |
303,639 |
|
|
Net (decrease) / increase in cash and cash equivalents |
55,353 |
(4,952,379) |
(5,234,870) |
|
|
Cash and cash equivalents at beginning of period |
530,265 |
7,546,636 |
7,546,636 |
|
|
Effect of foreign exchange rate differences |
72,992 |
(702,593) |
(1,781,501) |
|
|
Cash and cash equivalents at end of period |
658,610 |
1,891,664 |
530,265 |
|
NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2009
1. Accounting policies
The financial information set out in this report is based on the consolidated financial statements of Matra Petroleum plc and its subsidiary companies (together referred to as the 'Group'). The accounts of the Group of the 6 months ended 30 June 2009 were approved and authorised for issue by the Board on 19 August 2009. The interim results have not been audited, but were the subject of an independent review carried out by the Company's auditors, BDO Stoy Hayward LLP. Such unaudited results do not constitute statutory accounts of the Company or the Group. These accounts have been prepared in accordance with the accounting policies that are expected to be applied in the Report and Accounts of Matra Petroleum plc for the year ended 31 December 2009 and are consistent with IFRS. Presentation applied to the interim report is in line with new IAS 1 in respect of the primary statements presentation. The statutory accounts for the year ended 31 December 2008 have been filed with the registrar of Companies. The auditor's report on those accounts was unqualified, but did include an emphasis of matter on going concern; it did not contain a statement under section 237(2)-(3) of the Companies Act 1985.
The unaudited condensed consolidated financial statements incorporate the results of Matra Petroleum plc and its subsidiaries undertakings as at 30 June 2009, using the acquisition method of accounting as appropriate. The corresponding amounts are for the year ended 31 December 2008 and the 6 month period ended 30 June 2008.
Theses interim financial statements have been prepared on a going concern basis as the Directors are confident the cash raised by the shares issued, as announced on 7 July 2009 to the London Stock Exchange, will be sufficient to finance both the exploration work program and general overhead costs for the group for the foreseeable future.
NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2009
2. Loss per share
Basic earnings per share are calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of Ordinary Shares outstanding during the period.
In order to calculate diluted earnings per share, the weighted average number of Ordinary Shares in issue is adjusted to assume conversion of all dilutive potential Ordinary Shares according to IAS 33. Dilutive potential Ordinary Shares include share options granted to employees and Directors where the exercise price (adjusted according to IAS 33) is less than the average market price of the Company's Ordinary Shares during the period.
|
6 months to |
6 months to |
Year ended |
|
|
30 June 2009 |
30 June 2008 |
31 December 2008 |
|
|
Unaudited |
Unaudited |
Audited |
|
|
|
€ |
€ |
€ |
|
Profit /(Loss) attributable to ordinary shareholders |
(838,559) |
(4,826,162) |
(8,790,705) |
|
Number of Shares |
Number of Shares |
Number of Shares |
|
|
Weighted average number of shares used in the calculation of basic loss per share |
463,251,205 |
453,023,994 |
458,162,810 |
|
Effect of dilutive share options |
- |
- |
- |
|
Weighted average number of shares used in the calculation of diluted loss per share |
463,251,205 |
453,023,994 |
458,162,810 |
|
Loss per share |
(0.00181) |
(0.01065) |
(0.01919) |
|
Diluted loss per share |
(0.00181) |
(0.01065) |
(0.01919) |
NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2009
The total number of shares in issue at 30 June 2009 amounted to 463,251,205. The total amount of options and warrants held over the shares at 30 June 2009 was 30,950,000. These options and warrants are exercisable at prices that range between 0.1p and 7.5p.
For the prior periods, the effect of 31,667,409 potential ordinary shares at 30 June 2008, and 30,673,141 potential ordinary shares at 31 December 2008 arising from the exercise of options is considered to be anti-dilutive and have been excluded from the above calculation.
No new shares were issued in the period to 30 June 2009.
3. Events after the balance sheet date
In July the Company announced an extension in area to the Arkhangelovskoe License in Orenburg, Russia. The Company also announced a time extension to the same License for the period until the end of 2010.
Also in July the company raised £5.35 million through the issue of 535,000,000 shares at 1p per share.
4. Interim report
Copies of this interim report for the six months ended 30 June 2009 will be available from the offices of Matra Petroleum plc, 120 Bridge Road, Chertsey, Surrey, KT16 8LA, United Kingdom and on the company's website www.matrapetroleum.com.
Related Shares:
MTA.L