30th Sep 2008 07:00
For Immediate Release 30 September 2008
Rift Oil plc
("Rift" or "the Company")
Preliminary Results for the year ended 31 March 2008
Rift Oil PLC (AIM : RIFT), the oil and gas exploration company with assets in Papua New Guinea ("PNG"), is pleased to announce its preliminary results for the year ended 31 March 2008.
Operational Highlights
Puk Puk drilled and successfully completed - gas and condensates discovered. Well now testing
Currently completing 210km seismic program with encouraging early results
Agreement with JV partner Austral to assume 100% ownership of JV License areas and the Coral Sea rig for $5 million in June 2008
Heads of agreement signed with Flex LNG for gas sales to floating liquefaction plant offshore Papua New Guinea ("PNG") in June 2008
Preliminary discussions with Rio Tinto Alcan ("Alcan") on Gas Sales Agreement & Heads of Agreement following the signing of a Memorandum of Understanding ("MOU") between the companies last year
Financial Highlights
Raised £11m in July 07 in private placing
Additional £5m raised in private placing in June 08 for Austral Acquisition and drilling
Cash balance as at 31 March 2008 of £8.4m (2007 : £1.2m)
Ian Gowrie-Smith, Chairman of Rift, commented :
"Rift has had an exceptional year following the success of Puk Puk and continued expressions of interest to exploit our gas and condensate discoveries in PPL235 in Papua New Guinea ( PNG).
"Rift has been blessed with early success from the discovery of potentially substantial contingent resources of gas and condensate and I remain absolutely confident that we will have an exciting and successful future."
Peter Mikkelsen FGS, AAPG, as the qualified non-executive Director has reviewed this statement and authorised its release.
Further enquiries:
|
Rift |
|
|
David Lees, Ian Gowrie-Smith |
020 7340 9970 |
|
Buchanan Communications |
|
|
Tim Anderson, Isabel Podda |
020 7466 5000 |
|
RBC Capital Markets |
|
|
Andrew Smith, Sarah Wharry |
020 7653 4804 |
Chairman's Statement
Whilst the Company’s internal current mid case reserves estimate is close to 700 billion cubic feet (BCF), from 3 structures, several other undrilled structures on PPL235 are now highly prospective to be at least gas bearing, with more being delineated by our current seismic program. The current 210km seismic program is progressing well and has produced encouraging early results. Consequently, the Board is confident that PPL235 can deliver over 1 Trillion cubic feet (TCF) to a commercial partner.
This ignores the potential of the adjoining PPL261 field. Puk Puk is currently being tested to establish commercial flow rates and the results are expected imminently. During initial clean-up flow to flare, of the combined Toro and Lower Hedinia pay intervals, a calculated gas flow rate of 29.2 million cubic feet per day was achieved on a 64/64" choke, at a surface flowing pressure in excess of 1200 psi. A separate flow on the Lower Hedinia alone was measured at 20.85 mmcf/d on 48/64” choke, with a surface flowing pressure of 1732 psi.
Additionally, Rift is assessing the possibility of stripping the condensates at well head and taking it South to market. The advantage of this would be early cash flow which would not prejudice gas sales as the gas would be re-injected. Subject to actual test results, a preliminary plan forecasts possible production of up to 500 barrels of condensate a day from one well worth roughly US$20m per annum.
Rift is presently in preliminary discussions on a Gas Sales Agreement with Rio Tinto Alcan and a Heads of Agreement to further the prospect of supplying 40 BCF pa. to its Gove facility or approximately 800 BCF over the next 20 years. These discussions follow the signing of a MOU between the companies last year.
Ian Gowrie-Smith
Chairman
29 September 2008
Consolidated Income Statement
For the year ended 31 March 2008
|
|
|
Year to 31 March |
Year to 31 March |
|
|
|
|
|
2008 |
2007 |
|
|
|
|
£'000 |
£'000 |
|
|
|
|
|
|
|
|
|
Notes |
|
|
|
Revenue |
|
|
- |
- |
|
|
|
|
|
|
|
Administration expenses |
|
|
(644) |
(403) |
|
|
|
|
|
|
|
Operating loss |
|
|
(644) |
(403) |
|
|
|
|
|
|
|
Finance income |
|
|
346 |
51 |
|
|
|
|
|
|
|
Loss before tax |
|
|
(298) |
(352) |
|
Income tax |
|
|
- |
80 |
|
|
|
|
|
|
|
Loss for the period attributable to the equity shareholders |
|
|
(298) |
(272) |
|
|
|
|
|
|
|
Loss per share - total and continuing |
|
|
|
|
|
Basic & diluted (pence per share) |
|
2 |
(0.051)p |
(0.078)p |
|
|
|
|
|
|
|
|
|
|
|
Consolidated Balance Sheet
As at 31 March 2008
|
|
|
|
|
|
|
|
|
|
31 March |
31 March |
|
|
|
|
2008 |
2007 |
|
|
|
|
£'000 |
£'000 |
|
|
|
|
|
|
|
|
|
Notes |
|
|
|
Assets |
|
|
|
|
|
Non-current assets |
|
|
|
|
|
Property, plant and equipment |
|
|
1,485 |
1,571 |
|
Intangible assets |
|
3 |
12,771 |
9,564 |
|
|
|
|
|
|
|
Total non-current assets |
|
|
14,256 |
11,135 |
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
Trade and other receivables |
|
|
183 |
32 |
|
Cash and cash equivalents |
|
|
8,427 |
1,201 |
|
|
|
|
|
|
|
Total current assets |
|
|
8,610 |
1,233 |
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
Trade and other payables |
|
|
(203) |
(178) |
|
|
|
|
|
|
|
Total current liabilities |
|
|
(203) |
(178) |
|
|
|
|
|
|
|
Net current assets |
|
|
8,407 |
1,055 |
|
|
|
|
|
|
|
Net assets |
|
|
22,663 |
12,190 |
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
Capital and reserves |
|
|
|
|
|
Issued capital |
|
|
6,974 |
4,041 |
|
Share premium |
|
|
16,482 |
8,975 |
|
Share based payment reserve |
|
|
57 |
9 |
|
Translation reserve |
|
|
121 |
(162) |
|
Retained earnings |
|
|
(971) |
(673) |
|
|
|
|
|
|
|
Total equity |
|
|
22,663 |
12,190 |
|
|
|
|
|
|
The preliminary results were approved by the Board of Directors on 29 September 2008.
Consolidated Statement of Changes in Equity
For the year ended 31 March 2008
|
Share capital |
Share premium |
Shares to be issued |
Share based payment reserve |
Translation reserve |
Retained earnings |
Total equity |
|
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
|
At 1 April 2006 |
360 |
8,582 |
573 |
5 |
- |
(401) |
9,119 |
|
Exchange differences on translation of foreign operations |
(162) |
(162) |
|||||
|
Net income recognised directly in equity |
(162) |
(162) |
|||||
|
Loss for the period after tax |
(272) |
(272) |
|||||
|
Total recognised income and expense |
(162) |
(272) |
(434) |
||||
|
Issue of shares |
1,050 |
3,249 |
(573) |
3,726 |
|||
|
Associated share issue costs |
(225) |
(225) |
|||||
|
Bonus issue of shares |
2,631 |
(2,631) |
- |
||||
|
Equity settled share options |
4 |
4 |
|||||
|
At 31 March 2007 |
4,041 |
8,975 |
- |
9 |
(162) |
(673) |
12,190 |
|
Exchange differences on translation of foreign operations |
283 |
283 |
|||||
|
Net income recognised directly in equity |
283 |
283 |
|||||
|
Loss for the period after tax |
(298) |
(298) |
|||||
|
Total recognised income and expense |
283 |
(298) |
(15) |
||||
|
Issue of shares |
2,933 |
8,067 |
11,000 |
||||
|
Associated share issue costs |
(560) |
(560) |
|||||
|
Equity settled share options |
48 |
48 |
|||||
|
At 31 March 2008 |
6,974 |
16,482 |
- |
57 |
121 |
(971) |
22,663 |
Consolidated Cash Flow Statement
For the year ended 31 March 2008
|
|
|
|
|
|
|
|
|
|
Year to 31 March |
Year to 31 March |
|
|
|
|
2008 |
2007 |
|
|
|
|
£'000 |
£'000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities |
|
|
|
|
|
|
|
|
|
|
|
Loss before tax |
|
|
(298) |
(352) |
|
|
|
|
|
|
|
Adjustments for: |
|
|
|
|
|
Depreciation |
|
|
94 |
81 |
|
Share option charge |
|
|
48 |
4 |
|
Finance income |
|
|
(346) |
(51) |
|
(Increase)/decrease in trade and other receivables |
|
|
(151) |
28 |
|
Increase/(decrease) in trade and other payables |
|
|
25 |
(70) |
|
|
|
|
|
|
|
Net cash used in operating activities |
|
|
(628) |
(360) |
|
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
Interest received |
|
|
346 |
51 |
|
Payments for property plant and equipment |
|
|
(17) |
(334) |
|
Payments for intangible assets |
|
|
(3,207) |
(2,347) |
|
|
|
|
|
|
|
Net cash used in investing activities |
|
|
(2,878) |
(2,630) |
|
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
Proceeds from issue of equity shares |
|
|
11,000 |
3,726 |
|
Issue costs |
|
|
(560) |
(225) |
|
|
|
|
|
|
|
Net cash generated by financing activities |
|
|
10,440 |
3,501 |
|
|
|
|
|
|
|
Net increase in cash and cash equivalents |
|
|
6,934 |
511 |
|
Foreign exchange movements |
|
|
292 |
(162) |
|
Cash and cash equivalents at the start of the period |
|
|
1,201 |
852 |
|
|
|
|
|
|
|
Cash and cash equivalents at the end of the period |
|
|
8,427 |
1,201 |
Notes to the Preliminary Results
Publication Of Non Statutory Accounts
The financial information set out in this preliminary announcement does not constitute statutory accounts as defined in section 240 of the Companies Act 1985.
The consolidated balance sheet at 31 March 2008 and the consolidated income statement, consolidated statement of changes in equity, consolidated cash flow statement and associated notes for the year then ended have been extracted from the Group's 2008 statutory financial statements upon which the auditors opinion is unqualified and does not include any statement under Section 237 of the Companies Act 1985.
Those financial statements have not yet been delivered to the registrar of companies.
1. Basis of preparation
The consolidated financial statements are for the year ended 31 March 2008, have been prepared under the historical cost convention and are presented in sterling rounded to the nearest thousand (£000). They have been prepared in compliance with International Financial Reporting Standards (IFRS) and International Financial Reporting Interpretations Committee (IFRIC) interpretations as adopted by the European Union as at 31 March 2008.
In the current year, as required by AIM rules, the Group has adopted International Financial Reporting Standards for the first time. The opening IFRS balance sheet as at the date of transition on 1 April 2006 has been prepared with regard to IFRS 1 'First time adoption' and the most significant optional exemptions adopted are shown below:-
Please refer to note 5 for the details of the adjustments required to present the accounts under IFRS. The accounting policies used have been consistently applied from the transition balance sheet and throughout all periods presented in the first IFRS financial statements.
2. Loss per share
|
|
Year to 31 March |
Year to 31 March |
|||
|
|
|
2008 |
2007 |
||
|
|
|
£'000 |
£'000 |
||
|
|
|
|
|
||
|
Loss for the year attributable to equity shareholders |
|
(298) |
(272) |
||
|
|
|
|
|
||
|
|
|
Pence per share |
Pence per share |
||
|
|
|
|
|
||
|
Basic and diluted loss per share |
|
(0.051) |
(0.078) |
||
|
|
|
|
|
||
|
|
|
Shares |
Shares |
||
|
|
|
|
|
||
|
Issued ordinary shares at start of the period |
|
404,111,999 |
36,040,000 |
||
|
Ordinary shares issued in the period |
|
293,333,333 |
368,071,999 |
||
|
|
|
|
|
||
|
Issued ordinary shares at end of the period |
|
697,445,332 |
404,111,999 |
||
|
|
|
|
|
||
|
Weighted average number of shares in issue for the period. |
|
586,042,782 |
349,938,000 |
||
The diluted loss per share does not differ from the basic loss per share as the exercise of share options would have the effect of reducing the loss per share and is therefore not dilutive under the terms of IAS 33.
3. Intangible assets
|
Exploration and evaluation assets |
£'000 |
|
|
Cost |
|
|
|
1 April 2006 |
7,133 |
|
|
Additions |
2,431 |
|
|
|
|
|
|
Cost and net book value at 31 March 2007 |
9,564 |
|
|
|
|
|
|
1 April 2007 |
9,564 |
|
|
Additions |
3,207 |
|
|
|
|
|
|
Cost and net book value at 31 March 2008 |
12,771 |
|
4. Events after the balance sheet date
Termination of joint venture
On 23 May 2008, Rift announced that it had reached an out of court settlement with Austral resulting in the termination of the joint venture agreement between the two parties and Rift assuming 100% ownership of Licenses PPL 261 and PPL 235 and the Coral Sea Drilling Rig for a total payment of US$5m.
Issue of shares
In May 2008 the Company raised £5,165,650 by issuing 98,393,348 at an issue price of 5.25 pence per share.
5. IFRS transitional adjustments
First time adoption
From 1 April 2006 the Group has adopted International Financial Reporting Standards (IFRS) in the preparation of its financial statements.
The main items contributing to the change in financial information compared with that reported under UK GAAP and the exemptions on transition taken as at the transition date are shown below:
Rift's annual report and accounts have been posted to shareholders and are available form the Company's website http://www.riftoil.com/
Related Shares:
Rift Helium