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Andalas Energy & Pwr - Half-year Report

RNS Number : 4652A
Andalas Energy And Power PLC
21 January 2020
 

Andalas Energy and Power Plc

('Andalas' or the 'Company')

Interim Results

Andalas Energy and Power Plc, the AIM listed upstream oil and gas and energy company (AIM: ADL), is pleased to announce its half-yearly report for the six months ended 31 October 2019. 

For further information, please contact:

 

Simon Gorringe

Andalas Energy and Power Plc

Tel: +44 1624 681250

Graham Smith

FIM Capital Limited

Tel: +44 1624 681250

Roland Cornish / James Biddle

Beaumont Cornish Limited
(Nominated Adviser)

Tel: +44 20 7628 3396

The Interim Report will be available from the Company's website www.andalasenergy.co.uk

 

 

Chairman's Statement

 

Dear Shareholders,


Overview of the period

 

As described in the Company's Annual Report and Accounts to 30 April 2019, the Company is seeking to develop an international E&P business focused on developing upstream assets in Indonesia and the UK.

In the UK there are two opportunities being pursued, Colter and Southern North Sea.

The investment into Eagle Gas Limited, which holds an indirect interest in the Southern North Sea licence, was written off in the year to 30 April 2019.  There have been no further developments regarding this licence since the issuance of the annual report.

A reconciliation of the costs for the Colter well and sidetrack was completed in August 2019 and resulted in a refund of c£44k.  The Company has made a contribution of 8% towards the cost of the post well review and a review of future seismic options for Colter South.  Also included are licence fees for the next 12 months for P1918, PEDL330 and PEDL345 and the recent work on the Purbeck Anticline (PEDL345), including new petrophysics and fracture analysis for the Southard Quarry-1 well.  The Company will provide a further update on this work in due course.

In Indonesia, there has been no movement in the stalled Bunga Mas deal. 

During the period the Company has entered into an operating services and option agreement in respect of the producing Betun-Selo KSO in Sumatra. The Company commenced the workover program.  At the period end, there is a fee debt of $687,000 which Andalas is entitled to receive and is recorded as a financial asset.  As at the 31st October 2019 the Company had requested payment for $83k of this fee debt and this is recorded as a current receivable.

The Betun wells produced at an average gross production rate for December of:

BTN01 - 28.8 bopd
BTN03 - 3.8 bopd
BTN04 - 22.8 bopd
BTN14 - 19.3 bopd

The field delivered at an average gross production rate for December of 78.1 bopd with a maximum from the 4 wells of 92.7 bopd.  This is in excess of the amount being produced at the time of the agreement (70 bopd).

At this stage, the Company does not intend to exercise its option to drill a new well at Selo.

 

Financial Results and Capital Raising


The Company is reporting a loss in the period of US$0.5 million.

The Company issued new shares (net of issue costs) of US$0.8 million during the period. Since the period end, the Company raised an additional US$0.3 million through a further placing.

The Company continues to control its costs very closely, and conserve cash to the maximum extent possible without preventing the Company from developing opportunities. Its principal cost is its people, therefore in order to preserve cash, two of the Company's current Directors have continued not to draw down their contractual entitlement but have offered to defer payment until the Company is in a stronger cash position. At the period-end, unpaid directors' remuneration amounted to $473,000, (as outlined in note 7) and is still unpaid as at the date of this report.

Going Concern


The Group continues to adopt a going concern basis for the preparation of these financial statements. As a result of the deferral of directors fees and the capital raises, the Company is able to meet its debts as they fall due. As at 31 October 2019 the Company held a cash balance of US$42,000, which was to be supplemented by the proceeds from the placing of new ordinary shares post period end.

Outlook

The board believes the Company is well positioned to pursue new E&P opportunities.  In the meantime, it will seek opportunities to further its existing assets.

 

Dr Robert Arnott
Non-Executive Chairman
21 January 2020

 

Interim Consolidated Statement of Comprehensive Income
For the six months ended 31 October 2019

 

 

 

(Unaudited)
Six months ended
31 Oct 2019

(Audited)
Year ended
30 April 2019

(Unaudited)
Six months ended
31 Oct 2018

 

Notes

$'000

$'000

$'000

 

 

 

 

 

Investment income/(losses):

 

 

 

 

Unrealised losses on investments

 

-

(524)

-

 

 

-

(524)

-

 

 

 

 

 

Other income

 

-

29

13

Asset evaluation and operating expenses

4

(83)

(2,293)

-

Other administrative expenses

4

(419)

(1,079)

(881)

Net loss before Finance Costs and Taxation

 

(502)

(3,867)

(868)

 

 

 

 

 

Finance costs

 

(26)

(63)

 -

Loss before tax

 

(528)

(3,930)

(868)

Tax expense

 

-

-

  -

 

 

 

 

 

Loss after tax

 

(528)

(3,930)

(868)

 

 

 

 

 

Total comprehensive loss after tax

 

(528)

(3,930)

(868)

 

 

 

 

 

Total comprehensive loss

 

(528)

(3,930)

(868)

 

 

 

 

 

Basic and diluted loss per share attributable to owners of the parent during the year
(expressed in US cents per share)

5

 

(0.06) cents

 

 

(1.10 cents)

 


(0.34) cents

 

 

The accompanying notes from an integral part of these consolidated financial statements.

Interim Consolidated Statement of Financial Position
As at 31 October 2019

 

 

 

(Unaudited)
31 Oct 2019

(Audited)
30 April 2019

(Unaudited)
31 Oct 2018

 

Notes

$'000

$'000

$'000

Non-current assets

 

 

 

 

Equity investment in associate

 

-

-

413

Tangible assets

 

-

-

224

Financial asset at fair value through profit or loss

 

604

 

 

Other investments

 

267

267

-

 

 

871

267

637

Current assets

 

 

 

 

Other receivables

 

88

75

332

Cash and cash equivalents

 

42

258

1,164

 

 

130

333

1,496

Total assets

 

1,001

600

2,133

 

 

 

 

 

Current liabilities

 

 

 

 

Trade and other payables

 

(1,005)

(853)

(723)

Total liabilities

 

(1,005)

(853)

(723)

 

 

 

 

 

 

 

 

 

 

Net assets

 

(4)

(253)

1,410

 

 

 

 

Equity attributable to equity holders of the company

 

 

 

Share premium

 

17,630

16,878

15,506

Accumulated deficit

 

(17,634)

(17,131)

(14,096)

Total shareholder funds

 

(4)

(253)

1,410

 

The accompanying notes from an integral part of these consolidated financial statements.

Interim Consolidated Statement of Changes in Equity
For the six months ended 31 October 2019

 

 

 

 Share premium

Accumulated deficit

Total
equity

 

$'000s

$'000s

$'000s

Balance at 1 May 2018

13,377

(13,316)

61

Loss for the period to 31 October 2018 (unaudited)

-

(868)

(868)

Total comprehensive income

-

(868)

(868)

 

 

 

 

Transactions with equity shareholders of the parent:

 

 

 

Share based payments - warrants

(48)

48

-

Share based payments - options

-

40

40

Pro

Quick facts: Andalas Energy and Power PLC

Price: -

Market: AIM
Market Cap: -
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