6th Jun 2006 07:01
Rockhopper Exploration plc06 June 2006 PRESS RELEASEFor immediate release: 6 June, 2006Rockhopper Exploration plc Preliminary Results for the Year ended 31 March 2006 Rockhopper Exploration plc ("Rockhopper" or "the Company"), the oil and gasexploration company focussed on the North Falkland Basin, which listed on AIM inAugust 2005, has today announced its preliminary results for the year ended 31March 2006. Highlights: - Successful placing and listing on AIM- 2D seismic survey completed- Electromagnetic surveys completed- 3D seismic survey commissioned- Cash at bank 31 March 2006 of £12.5 million- Pre tax loss of £0.354 million Executive Chairman, Dr. Pierre Jungels commented: "We completed a successful listing on AIM in August 2005 raising £15 millionbefore expenses to undertake work on all of our licence areas. A 2D programme has been completed on licences PL023 and PL024 and a 3D vessel isnow secured for licences PL032 and PL033. CGG, one of the world's leading marineseismic contractors, will undertake the survey. We have also completed two Controlled Source Electromagnetic surveys in order togive ourselves greater confidence in the prospects over which they wereacquired. These are the first such surveys ever completed in the FalklandIslands, the results of which will be fully integrated with all our othertechnical studies once they are available. We remain positive about the prospectivity of the basin as a whole and ouracreage specifically." For further information, please contact: Rockhopper Exploration plc www.rockhopperexploration.co.uk Sam Moody, Managing Director 01722 414 419Peter Dixon-Clarke, Finance Director Aquila Financial Limited www.aquila-financial.com Peter Reilly 020 7202 2601Yvonne Fraser 020 7202 2609 Notes to editorsRockhopper Exploration plc is currently the largest licence holder in the NorthFalkland Basin and has a 100 per cent. interest in four offshore productionlicences which cover approximately 5,800 sq. km. These licences have beengranted by the Falkland Islands government. Since listing on AIM in August 2005 Rockhopper has undertaken a 2D seismicsurvey, a controlled source electro magnetic imaging survey and commissioned a3D survey to be undertaken in late 2006. Chairman's Statement BackgroundRockhopper Exploration was established in early 2004 to explore for oil in theNorth Falkland Basin. We currently have a 100% working interest in and are theOperator of 4 licences, PL023, PL024, PL032 and PL033, which between them coverapproximately 5,800 km2. In addition, we have a 7.5% working interest inlicences PL003 and PL004, which are operated by Desire Petroleum. In total, ournet acreage position of over 5,900 km2 currently makes us the largest acreageholder in the North Falkland Basin. We are currently in a period of relatively high oil prices and have seen asignificant growth in exploration activity across the world. Access to highquality acreage is becoming increasingly difficult and expensive while highquality people and equipment are in high demand and short supply. Against thisbackground, your board has built up an acreage position of real prospectivityand value and has also been able to carry out a significant part of the workprogramme set out at the time of our listing on the Alternative InvestmentMarket (AIM), with more work already timetabled for later this year. AchievementsWe completed a successful listing on AIM in August 2005 raising £15 millionbefore expenses to undertake work on all of our licence areas. We specified atthe time that we would conduct both 2D and 3D seismic acquisition programmes andconsider using other exploration technologies in addition to fulfilling ourcommitment to drilling with Desire Petroleum. The 2D programme has been completed on licences PL023 and PL024 and the 3Dvessel is now secured for licences PL032 and PL033. CGG, one of the world'sleading marine seismic contractors, will undertake the survey. We have alsocompleted two Controlled Source Electromagnetic (CSEM) surveys in order to giveourselves greater confidence in the prospects over which they were acquired.These are the first such surveys ever completed in the Falkland Islands. Theresults of these surveys will be fully integrated with all our other technicalstudies once they are available. We are working closely with Desire in moving towards drilling on licences PL003and PL004 but have experienced a significant tightening in the worldwide marketfor drilling units. OutlookOnce the results of the two CSEM surveys have been fully integrated into theseismic studies, our knowledge of the southern, undrilled part of the NorthFalkland Basin will be taken to a new level. Processing the new 920km 2D seismic survey data is nearing completion. Once wehave the processed data, we will focus on interpreting and integrating it intoour existing knowledge of the area. The next active step in our exploration will be the collection of the new 3Dseismic survey in licences PL032 and PL033. Once the data has been acquired,processing and interpretation will carry the work programme into 2007. The ultimate test of any exploration is, of course, drilling. To this end, notonly do we have the 7.5% interest in PL003 and PL004, but we are working on ourown 100% acreage with modern seismic techniques and CSEM in order to reduce riskbefore committing to a drilling programme. It is our intention to co-operate asfully as possible with other operators in the region in order to reduce costsand maximise not only knowledge and experience, but also the chance of success. We have achieved a great deal in this first year against a background ofincreasingly difficult markets for services in the oil sector. We look forwardto being able to present the full results of our new 2D and CSEM programmeslater this year and the results of our significant 3D programme during 2007. Atthat point, we will need to consider our funding options should we confirm thepresence of drillable targets in our acreage. SummaryWe remain positive about the prospectivity of the basin as a whole and of ouracreage specifically. We believe a number of completely untested plays remain inthe basin which give a better chance of success than the original drillingcampaign in 1998. The technical work is progressing as anticipated at the timeof the listing and the board as a whole remains strongly supportive of themanagement team as we move closer to discovering the real potential of thebasin. Dr Pierre Jungels CBEExecutive Chairman5 June 2006 NB: This statement has been approved by the Company's geological staff whoinclude Keith Williams (Exploration Director), who is a Member of The EuropeanAssociation of Geoscientists & Engineers (EAGE) with over 30 years of experiencein petroleum exploration and management, for the purpose of the Guidance Notefor Mining, Oil and Gas Companies issued by the London Stock Exchange in respectof AIM companies, which outline standards of disclosure for mineral projects. Rockhopper Exploration plcGroup profit and loss accountfor the year ended 31 March 2006 Year ended Fourteen months 31 March ended 31 March 2006 2005 £'000 £'000 Group turnover - -Cost of sales - - ---------- -----------Gross profit - - ---------- ----------- Administrative expenses (822) (228)Foreign exchange movement 56 - ---------- -----------Group operating loss (766) (228) ---------- ----------- Interest receivable 412 5 ---------- -----------Loss on ordinary activities before taxation (354) (223) ---------- ----------- Taxation 2 - - ---------- -----------Loss for the financialyear / period (354) (223) ---------- ----------- Loss per share (pence): Basic 3 (0.61)p (3.27)pLoss per share (pence): Diluted 3 (0.61)p (3.27)p The operating loss for the year/period arises from the group's continuingoperations. No separate Statement of Total Recognised Gains and Losses has beenpresented as all such gains and losses have been dealt with in the Profit andLoss Account. Rockhopper Exploration plcGroup balance sheet31 March 2006 As at 31 As at 31 March March 2006 2005 £'000 £'000Fixed assetsIntangible assets 2,500 236Tangible assets 14 2 ---------- ---------- 2,514 238 ---------- ----------Current assetsDebtors 10 38Cash at bank 12,455 1,190 ---------- ---------- 12,465 1,228 Creditors: amounts falling duewithin one year (59) (106) ---------- ----------Net Current assets 12,406 1,122 ---------- ----------Total assets less currentliabilities 14,920 1,360 ---------- ---------- Capital and reservesCalled up share capital 4 718 361Share premium account 5 14,919 1,362Merger reserve 5 (140) (140)Profit and loss account 5 (577) (223) ---------- ----------Equity shareholders' funds 14,920 1,360 ---------- ---------- Rockhopper Exploration PlcGroup cash flow statementfor the year ended 31 March 2006 Year ended 31 Fourteen months March ended 31 March 2006 2005 £'000 £'000 Net cash flow from operating activities (782) (147)Returns on investments and servicingof finance 412 5Capital expenditure and financial investment (2,279) (238) ---------- ----------- (2,649) (380) Financing 13,914 1,570 ---------- -----------Movement in cash in the year/period 11,265 1,190 ---------- ----------- Reconciliation of Net Cash Flow to Movement in Net Funds Year ended Fourteen 31 March months ended 2006 31 March 2005 £'000 £'000 Movement in cash in the year/period 11,265 1,190 --------- -----------Movement in net funds 11,265 1,190Opening Net Funds 1,190 - --------- -----------Closing Net Funds 12,455 1,190 --------- ----------- NOTES TO THE PRELIMINARY STATEMENT 1 BASIS OF PREPARATION The financial statements have been prepared under the historical costconvention, in accordance with applicable United Kingdom accounting standardsand the Statement of Recommended Practice (SORP) 'Accounting for Oil and GasExploration, Development, Production and Decommissioning Activities' issued bythe UK Oil Industry Accounting Committee on 7 June 2001. The principalaccounting policies of Rockhopper Exploration plc are set out in the Admissiondocument. 2 TAXATION The effective rate of tax is based on the estimated tax charge for the year at arate of 0% (2005 - 0%). 3 LOSS PER SHARE The calculation of the basic loss per share is based upon the loss for the yearof £354,000 (2005: £223,000) and the weighted-average number of shares in issueduring the year ended 31 March 2006 of 58,467,365 (2005: 6,816,486). As thegroup is reporting a loss for all periods then, in accordance with FinancialReporting Standard number 22, the share options are not considered dilutive.This is because the exercise of the share options would have the effect ofreducing the loss per share. 4 SHARE CAPITAL 2006 2006 2005 2005 £'000 No. £'000 No.Authorised:Ordinary shares of £0.01 each 1,000 100,000,000 1,000 100,000,000 -------- ---------- --------- ---------Called up, issued and fully paid:Ordinary shares of £0.01 each 718 71,774,605 361 36,060,320 -------- ---------- --------- --------- On 15 August 2005 the Company issued 35,714,285 ordinary shares of £0.01 each ata premium of £0.41 per share on the Admission of the Company to trading on AIM.Issue costs of £1.1 million have been charged against the share premium arising. 5 RECONCILIATION OF SHAREHOLDERS' FUNDS AND MOVEMENT ON RESERVES Share Share Merger Profit and Shareholders' capital premium reserve loss funds account £'000 £'000 £'000 £'000 £'000 At 1 February 2004 140 - (140) - -Issue of shares 221 1,362 - - 1,583 Loss for the period - - - (223) (223) -------- --------- -------- -------- ----------At 1 April 2005 361 1,362 (140) (223) 1,360 Issue of shares 357 13,557 - - 13,914 Loss for the year - - - (354) (354) -------- --------- -------- -------- ----------At 31 March 2006 718 14,919 (140) (577) 14,920 -------- --------- -------- -------- ---------- 6 COPIES OF THE FINAL REPORT Copies of the final report will be dispatched to shareholders and will beavailable to the public at the Registered Office, Hilltop Park, Devizes Road,Salisbury, SP3 4UF. 7 FINANCIAL INFORMATION The financial information set out above does not constitute the statutoryaccounts of Rockhopper Exploration plc for the year ended 31 March 2006 whichare the first to be prepared by the Group. The statutory accounts for the yearended 31 March 2006, which were approved by the Directors and authorised forissue on 5 June 2006, will be delivered following the Company's Annual GeneralMeeting. The auditors have reported on the accounts; their report wasunqualified and did not contain statements under section 237(2) or (3) of theCompanies Act 1985. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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