26th Oct 2005 07:00
Empyrean Energy PLC26 October 2005 EMPYREAN ENERGY PLC CHAIRMAN'S STATEMENTFOR THE PERIOD ENDED 30 SEPTEMBER 2005 Empyrean Energy plc ("Empyrean" or the "Company") has completed its first halfyear of operations since incorporation in March 2005 and listing on AIM in July2005, and has taken the initial steps towards its declared objective ofdeveloping energy resources in regions of low political risk. Glantal Prospect - GermanyThe first project to be developed by Empyrean is the Glantal-1 well to bedrilled on the Neues Bergland permit near Frankfurt in Germany. It will beoperated by one of Empyrean's partners, Pannonian International Ltd (a whollyowned subsidiary of USA listed Galaxy International), who have already completedkey preparatory work at the site, putting the essential infrastructure is inplace. As a result I am happy to report that the first drilling campaign at theGlantal prospect is on schedule to produce results in Q4 2005. With strong gasprices in Germany and demand increasing due to government policies, the Companyis well positioned if the prospective commercial discovery is realized. Eagle Oil Pool Development Project - USATo develop further its strategy of investing in geopolitically low risk regions,the Company has secured a farm-in agreement with Australian Stock Exchangequoted Victoria Petroleum NL to earn a 38.5% working interest in the Eagle OilPool Development Project in the San Joaquin Basin, California. The San JoaquinBasin is a proven oil and gas field that has already produced in excess of 12billion barrels of oil and 11 trillion cubic feet of gas. An independent experthas estimated that the Eagle Oil Pool Development Project could contain areserve, with 50% probability, of 7.1 million barrels of recoverable oil and12.3 billion cubic feet of associated gas. The initial phase, scheduled forNovember 2005, will take approximately 14 days to complete. ResultsDuring the period to 30 September 2005, the Company made a loss before and aftertax of £232,938. Exploration costs of £661,794 for the period have beencapitalised, which relate to both the acquisition and initial expenditure on thecurrent drill programme at Glantal. OutlookEmpyrean has sufficient cash reserves subsequent to its listing on AIM toundertake both the Glantal and Eagle Oil Pool Development Project explorationprograms to a point of discovery/confirmation of economically viable reserves.Success on either project will necessitate further development funding. The Board is continuing to seek additional opportunities which match its chosenstrategy, and I am looking forward to an exciting second half of our first year. Patrick CrossChairman25 October 2005 EMPYREAN ENERGY PLCUNAUDITED INCOME STATEMENTFOR THE PERIOD ENDED 30 SEPTEMBER 2005 Notes From Incorporation 10 March 2005 to 30 September 2005 £ Administrative expenses (251,452)Operating loss (251,452) Interest receivable 18,514 Loss on ordinary activities before taxation (232,938) Taxation -Loss on ordinary activities after taxation (232,938) Basic earnings per share (pence) 2 (0.98) p Diluted earnings per share (pence) 2 (0.95) p EMPYREAN ENERGY PLCUNAUDITED BALANCE SHEETFOR THE PERIOD ENDED 30 SEPTEMBER 2005 Notes From Incorporation 10 March 2005 to 30 September 2005 £ FIXED ASSETSIntangible assets 661,794Tangible assets 8,972 670,766CURRENT ASSETSStocks -Debtors 58,153Cash at bank and in hand 2,963,841 3,021,994CREDITORSAmounts falling due within one year (32,569) NET CURRENT ASSETS 3,660,191 NET ASSETS 3,660,191 CAPITAL AND RESERVES Called up share capital 61,289Share premium account 3,828,551Equity reserve 3,289Profit and loss account (232,938) EQUITY SHAREHOLDERS' FUNDS 3,660,191 EMPYREAN ENERGY PLCUNAUDITED CASH FLOW STATEMENTFOR THE PERIOD ENDED 30 SEPTEMBER 2005 Notes From Incorporation 10 March 2005 to 30 September 2005 £ Net cash outflow from operating activities (241,237) Interest received 18,514Net cash inflow from returns on investments 18,514 Payments to acquire intangible assets (696,093)Payments to acquire tangible assets (10,471)Net cash outflow from capital expenditure (706,564) Net cash inflow before financing (929,287) Issue of ordinary share capital 4,230,498Share issue costs (337,370)Net cash inflow from financing 3,893,128 Increase in cash 2,963,841 EMPYREAN ENERGY PLCNOTES TO THE FINANCIAL STATEMENTSFOR THE PERIOD ENDED 30 SEPTEMBER 2005 1. Basis of preparation The financial information contained in this document has been prepared inaccordance the historical cost convention and in accordance with GenerallyAccepted Accounting Principles in the United Kingdom and with AIM Rules and doesnot constitute statutory accounts as defined in Section 240 of the Companies Act1985. The interim report for the Period ended 30 September 2005 is unaudited and wasapproved by directors on the 14 October 2005.In the opinion of the directors thefinancial information for this period fairly presents the financial position,results of the operations and cash flows for the period and conforms withgenerally accepted accounting principles. A copy of this interim report is available from Empyrean's registered office at28 Eccleston Square, London SW1V 1NZ. 2. Earnings per share The calculation of earnings per share is based on the loss after taxationdivided by the weighted average number of share in issue during the period: £Net loss after taxation (232,938) Weighted average number of ordinary shares used in calculatingbasic earnings per share 23,812,306 Weighted average number of ordinary shares used in calculatingdiluted earnings per share 24,268,394 3. Deferred Tax Assets A net deferred tax asset is regarded as recoverable and therefore recognisedonly when, on the basis of all available evidence, it can be regarded as morelikely than not that there will be suitable taxable profits against whichcarried forward tax losses can be offset. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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