TIDMJOG
RNS Number : 0336S
Jersey Oil and Gas PLC
28 September 2017
28 September 2017
Jersey Oil and Gas plc
("Jersey Oil & Gas", "JOG" or the "Company")
Interim Results for the six months ended 30 June 2017
Jersey Oil & Gas (AIM: JOG), an independent upstream oil and
gas company focused on the UK Continental Shelf region of the North
Sea, is pleased to announce its unaudited interim results for the
six months ended 30 June 2017.
Highlights
-- Post period end, the fully carried 20/05b-13 (Verbier)
well was drilled safely, on time and within budget
by Statoil (U.K.) Limited ("Statoil"), encountering
water bearing reservoir
-- On 17 September 2017, the decision was taken by
the joint venture partners to sidetrack the well
to test a potentially smaller up-dip hydrocarbon
accumulation, the presence of which cannot be
ruled out given the evaluation of wireline log
data acquired in the main wellbore
-- Operations commenced on the sidetrack well, 20/05b-13z,
on the 17 September 2017 and are expected to take
25-35 days to complete
-- In light of the 10% cash carry by CIECO V&C (UK)
Limited ("CIECO") on the 20/05b-13z well, JOG's
net cost for the 20/05b-13z well is estimated
to be approximately GBP0.7million
-- The Company received income from its partner CIECO
in relation to the carry arrangement in place
on the P.2170 licence
-- Cash at period end of c.GBP1.45m, which is estimated
to increase to approximately GBP1.8m taking into
account net funds due from the Company's carry
arrangements
-- The Company continues to pursue its core strategy
of acquiring oil & gas production assets in the
UK Continental Shelf ("UKCS"), having reviewed
and evaluated in excess of 50 production field
interests in the UKCS
-- Global oil prices appear to be holding above the
$50/bbl level since the beginning of September
2017, providing increased clarity for a production
focused acquisition strategy
Andrew Benitz, CEO of Jersey Oil & Gas, commented:
"A key focus for JOG during the first half of 2017 was the
build-up of operations on the P.2170 licence for the 20/05b-13
Verbier exploration well, led by Statoil. Disappointingly, the
20/05b-13 well failed to find any commercial hydrocarbons but a
sidetrack well, which is currently being drilled, is intended to
target an up-dip accumulation which the 20/05b-13 well could not
disprove. Following the drilling of the 20/05b-13z sidetrack well,
the Company's cash position will be approximately GBP1.8m, leaving
JOG in a strong position to continue to pursue its production
focused acquisition strategy.
We are pleased to be able to expose our shareholders to terrific
exploration opportunities and I would like to thank our
shareholders for their ongoing support. JOG has a strong vision for
growth across the North Sea and with this support, we can achieve
our stated objectives."
General enquiries:
Jersey Oil & Gas Andrew Benitz, C/o Camarco:
plc CEO Tel: 020 3757 4983
Strand Hanson Limited James Harris Tel: 020 7409 3494
Matthew Chandler
James Bellman
Arden Partners Chris Hardie Tel: 020 7614 5900
plc Benjamin Cryer
BMO Capital Markets Neil Haycock Tel: 020 7236 1010
Tom Rider
Camarco Billy Clegg Tel: 020 3757 4983
Georgia Edmonds
James Crothers
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014.
Notes to editors:
Jersey Oil & Gas is a UK E&P Company focused on building
a production focussed company in the North Sea. The Company owns an
18 per cent. interest in the P.2170 licence, Blocks 20/5b &
21/1d, Inner Moray Firth.
The Company plans to build a production portfolio via
acquisitions coinciding with the cyclical recovery in the oil price
and the current opportune buying market in the North Sea. The
Company is involved in multiple sales processes and intends to draw
on its management team's considerable experience, knowledge and
expertise to deliver shareholder value from its stated production
acquisition strategy.
Chairman's Statement
During the first six months of the year we actively pursued our
dual strategy of developing our existing license interests while
seeking to acquire North Sea production assets. Our share price
performance was dominated by hopes relating to the summer drilling
of the Verbier exploration well (Licence P.2170, Blocks 20/5b &
21/1d, "Verbier"). As announced earlier this month, the primary
well was regrettably not successful and consequently our share
price fell very significantly. Nonetheless, the well did enable
further interpretative work to be undertaken, as a result of which
the operator recommended that a sidetrack well be undertaken which
is currently being drilled. We await the outcome of this with much
interest.
Regardless of its outcome, our participation in the drilling of
the Verbier well and sidetrack benefits from certain carry
arrangements with our partners such that even in a dry hole case,
the impact on our cash resources is positive. This is a good
example of management's ability to create a credible drilling
opportunity for shareholders in a financially innovative way.
We remain highly focused on seeking to acquire North Sea oil and
gas production assets, on which a large amount of time and resource
has been spent during the period, and continues to be deployed
currently.
Against a backdrop of a far less volatile Brent crude oil price,
we have been able to engage with a number of parties in connection
with the acquisition element of our strategy. However, whilst our
approach continues to be a disciplined and analytical one, we are
still seeing some unrealistic price expectations and conditions
being demanded by sellers of certain North Sea production assets.
Nonetheless, over time, we believe suitable assets will become
available at actionable prices and on realistic terms.
Our cash reserves at 30 June 2017 were approximately GBP1.45m,
and we currently expect our available cash resources to increase to
approximately GBP1.8m post completion of the Verbier sidetrack
well, once the beneficial effects of our carry arrangements work
through.
We continue to maintain a strong control on our costs.
I thank all of our shareholders for their valuable support and
patience and look forward to consummating, in due course, one of
the many potential transactions on which we are currently
working.
Marcus Stanton
Non-Executive Chairman
28 September 2017
Chief Executive Officer's Report
JOG's Strategy
At the time of publication, the drilling of a Verbier sidetrack
is underway to test whether hydrocarbon-bearing sands exist up dip
from the initial target. Irrespective of the results, which we
eagerly anticipate, I take this opportunity to remind shareholders
of our strategy which was communicated when we combined with Trap
Oil in August 2015. We clearly set out a two-pronged strategy which
was, on the one hand, to manage the enlarged group's legacy
portfolio of exploration assets and, on the other hand, to pursue a
production-focused acquisition strategy, seeking to utilise the
corporate tax loss position built up by Trap Oil of some GBP25m.
During the period since the combination, we have raised a total of
GBP2.4m gross from both new and existing shareholders, including
management. Post completion of the Verbier drilling campaign, we
currently expect to have a cash position of approximately GBP1.8m.
Over the course of the past two years, we have, inter alia, exposed
our shareholders to a terrific exploration opportunity, including
the drilling of a high profile exploration well, endorsed by
Statoil (U.K.) Limited ("Statoil"), achieving what we believe to be
the only promoted farm-out of an exploration asset in the UKCS
region of the North Sea in over three years. We have also very
actively pursued our production-focused acquisition strategy and
our capabilities in this regard have advanced considerably during
this time. We have thoroughly evaluated, both technically and
commercially, over 50 production field interests in the North Sea,
thereby building our knowledge-base and we remain single-mindedly
focused on identifying and securing successful transactions to grow
the group's business, for the benefit of shareholders.
Operations
A key focus for JOG during the first half of 2017 was the
buildup of operations on the P.2170 licence area with respect to
the Verbier exploration well programme, led by Statoil. Following
our successful farm-out to Statoil last year, JOG retained an 18%
interest in this licence. In April 2017, we were pleased to
announce the signing, by Statoil, of a contract for use of the the
Transocean Spitsbergen rig. This set in motion detailed plans for
drilling of the Verbier exploration well, which commenced post the
financial period end in August 2017.
JOG also furthered its technical understanding of the two
drill-ready prospects on the licence, Verbier and Cortina, and in
March 2017 we announced the findings of an independent Competent
Person's Report ("CPR") conducted by ERC Equipoise Limited, which
ascribed prospective resources and risks for these prospects. We
were pleased with the outcome of this independent study as it
reported an upgrade on our previous management estimates, with mean
prospective resources of 162MMbbls ascribed to Verbier with a
chance of success of 29%, and 124MMbbls ascribed to Cortina with a
chance of success of 19%.
Unfortunately, although the well was on time and within budget,
after 29 days of drilling on the Verbier exploration well, JOG was
disappointed to announce that the well had failed to find any
commercial hydrocarbons. The well encountered water-bearing Upper
Jurassic sands, deeper than anticipated. This geological result was
indeed a surprise to the P.2170 joint venture partnership. The
wireline log data from the well, together with the pressure samples
and seismic data, were subsequently evaluated by the joint venture
partnership, led by the operator, Statoil, and it was concluded
that potential for hydrocarbons to be present in an accumulation up
dip of the 20/05b-13 Verbier exploration well could not be ruled
out. The joint venture partnership has therefore identified the
potential for late Jurassic sands, similar to the water-bearing
sands encountered in the 20/05b-13 well, to be present within the
hydrocarbon window up dip of the original well location, offering
the possibility of a potentially lesser, but still commercially
attractive, hydrocarbon accumulation. Accordingly, JOG was pleased
to support the operator's recommendation to undertake the drilling
of a sidetrack exploration well which is currently under way. The
results of the Verbier work programme will be fully analysed by the
joint venture partnership to understand the implications for
Cortina which remains an independent and prospective Upper Jurassic
target.
The 20/05b-13 exploration well was drilled with ultimately no
cost exposure to JOG, given the innovative double carry arrangement
that we negotiated with our partners. With the sidetrack
exploration well now under way, we continue to benefit from a 10%
cash carry receivable from CIECO for this well. We therefore
estimate the net cost liability to JOG to be GBP0.7m for our 18%
interest in the sidetrack.
Potential Acquisitions
During the reporting period, JOG was involved in several live
sales processes of production assets. Whilst this did not
ultimately lead to any acquisitions being completed or announced,
the team's knowledge base was usefully enhanced which will be of
value to the Company going forward. Our technical team, which
includes geological, geophysical, reservoir and facilities
engineering skill sets, as well as our commercial team which
includes in-house legal counsel and finance, each with significant
experience in the North Sea, provides us with a solid platform from
which to grow this side of the business. However, we have learned
that deals of the nature we are pursuing take time to consummate
and multiple issues, many deal-specific, have to be negotiated in
tandem with vendors. Two challenges we have consistently
encountered are abandonment liabilities and joint venture partner
approval. With many late-life producing fields, the cost of
decommissioning the facilities once production ceases, outweighs
the future expected cashflow from the field. Negotiating with
vendors for them to retain this liability has been historically
problematic, however deal precedents have now been set and I am
pleased to observe that many vendors will now accept retention of
such liabilities. Joint venture partner approval does remain
problematic, however with the OGA supporting ownership change,
particularly if it leads to delivering on their MER (Maximum
Economic Recovery) strategy, we are hopeful that such approvals
will be less challenging going forward.
Several large-scale North Sea divestments have been announced by
industry participants in recent months. Such divestments provide a
great deal of encouragement that a new wave of deal activity is
beginning in the UKCS. The Company continues to be involved in
multiple sales processes, and the Board remains confident that the
management team's experience, knowledge and expertise, and in
particular the foundations and processes established over the
course of the past couple of years, put the Company in a strong
position to ultimately deliver shareholder value from its stated
production acquisition strategy.
Other Licence activities
In early 2016, JOG sold its interest in licence P.1989, which
contains the Partridge prospect, to Azinor Catalyst Limited
("Azinor") in return for a contingent financial interest, subject
to a discovery, of up to US$4m. During August 2017, Azinor
announced that drilling had begun on its Partridge prospect. While
the well encountered excellent quality reservoir rocks,
hydrocarbons were not present and it has now been plugged and
abandoned. Accordingly, no contingent payments will be received by
the Company from Azinor.
Financial review
As in recent previous financial periods, the Company continues
to operate without any direct revenue from oil or gas production.
In this reporting period however, we did begin to receive income
relating to the carry we have in place with CIECO on the P.2170
licence.
Our Cost of Sales remain small as they relate to the limited
ongoing work on our remaining licence interest, P.2170, where we
have incurred expenditure which is not recoverable from our
partners. This included proprietary technical studies that JOG
commissioned to further our geological understanding of the Verbier
prospect, which resulted in JOG commissioning an independent
competent person's report by ERC Equipoise Limited, the results of
which were announced in March 2017.
The Company has always been focused on controlling
administration costs and tries to keep these to a minimum. These
costs have increased year on year as we expanded our cost base
slightly following the farm-out of licence P.2170 and in the lead
up to drilling. We also incurred increased advisory costs relating
to potential asset acquisitions pursued during the period.
Overall, the group incurred a loss of approximately GBP0.63m for
the period and our tightly managed cash balance stood at
approximately GBP1.45m at the end of June 2017.
Looking Forward
With drilling now underway on the 20/05b-13Z sidetrack
exploration well, JOG looks forward to the prospect of potentially
finding oil up dip from the water bearing sands encountered, in the
initial Verbier well. With the sidetrack well expected to take 25
to 35 days to complete, its result is expected during October
2017.
Following a brief dip at the beginning of summer, oil prices are
now showing good support above US$50/bbl. We are confident that our
ongoing production-focused strategy remains appropriate to seek to
deliver strong shareholder returns. We continue to engender good
support both in the debt and equity markets, should we find a
suitable asset or portfolio of assets to acquire.
I would like to thank our shareholders for their ongoing
support. JOG has a strong vision for growth across the North Sea
and with such support, I remain confident that we can achieve our
stated objectives.
Andrew Benitz
Chief Executive Officer
28 September 2017
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHSED 30 JUNE 2017
6 months 6 months Year
to to to
30/06/17 30/06/16 31/12/16
(unaudited) (unaudited) (audited)
Notes GBP GBP GBP
CONTINUING OPERATIONS
Revenue - - -
Cost of sales (9,634) (12,290) (4,950)
GROSS LOSS (9,634) (12,290) (4,950)
Other income 6 140,156 126,582 214,110
Gains on disposal of
assets - - 239,724
Administrative expenses (757,578) (326,281) (1,244,393)
OPERATING LOSS (627,056) (211,989) (795,509)
Finance costs - - -
Finance income 77 1,152 2,070
LOSS BEFORE TAX (626,979) (210,837) (793,439)
Tax 7 - - -
LOSS FOR THE PERIOD (626,979) (210,837) (793,439)
OTHER COMPREHENSIVE - - -
INCOME
TOTAL COMPREHENSIVE
LOSS FOR THE PERIOD (626,979) (210,837) (793,439)
============ ============ ============
Total comprehensive
loss attributable to:
Owners of the parent (626,979) (210,837) (793,439)
============ ============ ============
Loss per share expressed
in pence per share: 8
Basic (6.35) (4.31) (9.28)
Diluted (6.35) (4.31) (9.28)
============ ============ ============
The above consolidated statement of comprehensive income should
be read in conjunction with the accompanying notes.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2017
30/06/17 30/06/16 31/12/16
(unaudited) (unaudited) (audited)
Notes GBP GBP GBP
NON-CURRENT ASSETS
Intangible assets -
Exploration costs 9 128,689 183,199 48,363
Property, plant & equipment 10 - 2,714 372
------------- ------------- -------------
128,689 185,913 48,735
------------- ------------- -------------
CURRENT ASSETS
Trade and other receivables 103,408 50,309 122,872
Cash and cash equivalents 11 1,452,902 582,154 1,882,310
------------- ------------- -------------
1,556,310 632,463 2,005,182
------------- ------------- -------------
TOTAL ASSETS 1,684,999 818,376 2,053,917
============= ============= =============
EQUITY
SHAREHOLDERS' EQUITY
Called up share capital 2,347,308 2,331,767 2,347,017
Share premium account 71,200,336 69,569,978 71,170,230
Share options reserve 1,282,645 1,381,133 1,495,921
Accumulated losses (73,494,084) (72,181,357) (72,763,959)
Reorganisation reserve - (382,543) (382,543)
------------- ------------- -------------
TOTAL EQUITY 1,336,205 718,978 1,866,666
------------- ------------- -------------
LIABILITIES
CURRENT LIABILITIES
Trade and other payables
< 1 year 348,794 99,398 187,251
------------- ------------- -------------
TOTAL LIABILITIES 348,794 99,398 187,251
------------- ------------- -------------
TOTAL EQUITY AND LIABILITIES 1,684,999 818,376 2,053,917
============= ============= =============
The above consolidated statement of financial position should be
read in conjunction with the accompanying notes
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHSED 30 JUNE 2017
Called Share Share Re-
up share premium options Accumulated organisation Total
capital account reserve Losses reserve equity
GBP GBP GBP GBP GBP GBP
At 1 January
2016 2,331,767 69,569,978 1,381,133 (71,970,520) (382,543) 929,815
Loss for the
period and
total comprehensive
income - - - (210,837) - (210,837)
At 30 June
2016 2,331,767 69,569,978 1,381,133 (72,181,357) (382,543) 718,978
========= ========== ========= ============ ============= =========
At 1 January
2017 2,347,017 71,170,230 1,495,921 (72,763,959) (382,543) 1,866,666
Loss for the
period and
total comprehensive
income - - - (626,979) - (626,979)
Reclassification
of Re-organisation
reserve - - - (382,543) 382,543 -
Issue of share
capital 291 30,106 - - - 30,397
Share based
payments - - 66,121 - - 66,121
Lapsed share
options - - (279,397) 279,397 - -
At 30 June
2017 2,347,308 71,200,336 1,282,645 (73,494,084) - 1,336,205
========= ========== ========= ============ ============= =========
The following describes the nature and purpose of each reserve
within owners' equity:
Reserve Description and purpose
Called up share capital Represents the nominal value of shares
issued
Share premium account Amount subscribed for share capital in
excess of nominal value
Share options reserve Represents the accumulated balance of
share based payment charges recognised in respect of share options
granted by the Company less transfers to retained deficit in
respect of options exercised or cancelled/lapsed
Accumulated losses Cumulative losses recognised in the
Consolidated Statement of Comprehensive Income
Reorganisation reserve Amounts resulting from the restructuring
of the Group
The above consolidated statement of changes in equity should be
read in conjunction with the accompanying notes
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHSED 30 JUNE 2017
6 months 6 months Year
to to to
30/06/17 30/06/16 31/12/16
(unaudited) (unaudited) (audited)
Notes GBP GBP GBP
CASH FLOWS FROM OPERATING
ACTIVITIES
Cash used in operations 11 (379,556) (331,105) (927,144)
Net interest received 77 1,152 2,070
Interest paid - - -
------------ ------------ ----------
Net cash used in operating
activities (379,479) (329,953) (925,074)
------------ ------------ ----------
CASH FLOWS FROM INVESTING
ACTIVITIES
Purchase of intangible
assets (80,326) (53,680) (85,993)
Proceeds on sale of intangible
fixed assets - 102,877 414,966
Net cash (used in)/generated
from investing activities (80,326) 49,197 328,973
------------ ------------ ----------
CASH FLOWS FROM FINANCING
ACTIVITIES
Proceeds from share issue 30,397 - 1,615,501
------------ ------------ ----------
Net cash generated from
financing activities 30,397 - 1,615,501
------------ ------------ ----------
INCREASE/(DECREASE) IN
CASH AND CASH EQUIVALENTS (429,408) (280,756) 1,019,400
CASH AND CASH EQUIVALENTS
AT BEGINNING OF PERIOD 11 1,882,310 862,910 862,910
------------ ------------ ----------
CASH AND CASH EQUIVALENTS
AT OF PERIOD 11 1,452,902 582,154 1,882,310
============ ============ ==========
The above consolidated statement of cash flows should be read in
conjunction with the accompanying notes
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHSED 30 JUNE 2017
1. GENERAL INFORMATION
Jersey Oil and Gas plc (the "Company") and its subsidiaries
(together, "the Group") are involved in the upstream oil and gas
business in the U.K.
The Company is a public limited company, which is quoted on AIM,
a market operated by London Stock Exchange plc and incorporated and
domiciled in the United Kingdom. The address of its registered
office is 10 The Triangle, ng2 Business Park, Nottingham, NG2
1AE.
2. BASIS OF PREPARATION
These consolidated interim financial statements have been
prepared under the historic cost convention, using the accounting
policies that will be applied in the Group's statutory financial
information for the year ended 31 December 2017 and in accordance
with the Disclosure and Transparency Rules of the Financial Conduct
Authority (previously the Financial Services Authority) and with
IAS 34 'Interim financial reporting'. The condensed interim
financial statements should be read in conjunction with the annual
financial statements for the year ended 31 December 2016, which
have been prepared in accordance with IFRS as adopted by the
European Union.
The Company is expected to have sufficient resources to cover
the expected running costs of the business for a period of 12
months after the issue of these interim financial statements. This
is after taking into account the carry from Statoil and the
anticipated cash receivable from CIECO in relation to our carry
from them on the P.2170 (Verbier) well drilling and the side-track,
which is ongoing at the time of writing, and based on the current
anticipated well costs. It is expected that in a dry hole case for
the sidetrack our cash reserves will more than exceed the estimated
liabilities of the Company. Should the side-track of the well be
successful as we hope, further studies and well activity will then
be required and the Company will seek to approve budgets with our
partners and raise additional finance in order to cover this
eventuality and its share of the expected additional costs. Whilst
there can be no certainty of the success of any fund raising, the
Directors believe the successful well result in this scenario would
position the Company favourably in order to source additional
capital. Based on these circumstances, the Directors have
considered it appropriate to adopt the going concern basis of
accounting in preparing the consolidated interim financial
statements.
The reports for the six months ended 30 June 2017 and 30 June
2016 are unaudited and do not constitute statutory accounts as
defined by the Companies Act 2006. The financial statements for 31
December 2016 have been prepared and delivered to the Registrar of
Companies did not draw attention by way of emphasis of matter and
did not contain a statement under section 498 of the Companies Act
2006.
Under IFRS 11, the Group will continue to proportionately
account for its share of assets, liabilities, revenue and expenses
in its joint operations.
There are no IFRSs or IFRIC interpretations that are effective
for the first time for the financial period beginning on or after 1
January 2017 that would be expected to have a material impact on
the Group.
The Group's results are not impacted by seasonality.
3. SIGNIFICANT ACCOUNTING POLICIES
The accounting policies adopted are consistent with those
applied in the previous financial year.
Revenue recognition
Revenue is recognised to the extent that it is probable that
economic benefits will flow to the Group and the revenue can be
reliably measured. It is measured at the fair value of
consideration received or receivable for the sale of goods.
Revenue from strategic partners on the identification of
opportunities, application for a licence to explore further or as a
result of having farm-ed into an asset and provided the Group with
a carry is recognised in the period in which the services are
provided, costs incurred or the date a trigger event occurs if this
is later.
Exploration and evaluation costs
The Group accounts for oil and gas exploration and evaluation
costs using IFRS 6 "Exploration for and Evaluation of Mineral
Resources". Such costs are initially capitalised as Intangible
Assets and include payments to acquire the legal right to explore,
together with the directly related costs of technical services and
studies, seismic acquisition, exploratory drilling and testing.
Exploration costs are not amortised prior to the conclusion of
appraisal activities.
Exploration costs included in Intangible Assets relating to
exploration licences and prospects are carried forward until the
existence (or otherwise) of commercial reserves has been determined
subject to certain limitations including review for indications of
impairment on an individual license basis. If commercial reserves
are discovered, the carrying value, after any impairment loss of
the relevant assets, is then reclassified as Property, plant and
equipment under Production interests and fields under development.
If, however, commercial reserves are not found, the capitalised
costs are charged to the Consolidated Statement of Comprehensive
Income. If there are indications of impairment prior to the
conclusion of exploration activities, an impairment test is carried
out.
Joint operations
The Group participates in joint venture agreements with
strategic partners, where revenue is derived from annual retainers
and success fees in a combination of cash and carried interests.
The Group accounts for its share of assets, liabilities, income and
expenditure of these joint venture agreements and discloses the
details in the appropriate Statement of Financial Position and
Statement of Comprehensive Income headings in the proportion that
relates to the Group per the joint venture agreement.
Financial instruments
Financial assets and financial liabilities are recognised in the
Group's Statement of Financial Position when the Group becomes
party to the contractual provisions of the instrument. The Group
does not have any derivative financial instruments.
Cash and cash equivalents include cash in hand and deposits held
on call with banks with a maturity of three months or less.
Trade receivables are recognised initially at fair value and
subsequently measured at amortised cost using the effective
interest method, less provision for doubtful debts. A provision for
doubtful debts is established when there is objective evidence that
the Group will not be able to collect all amounts due according to
the original terms of the receivables. Significant financial
difficulties of the debtor, probability that the debtor will enter
bankruptcy or financial reorganisation, and default or delinquency
in payments (more than 30 days overdue) are considered indicators
that the recoverability of the trade receivable is doubtful. The
amount of the provision is the difference between the asset's
carrying amount and the present value of estimated future cash
flows, discounted at the original effective interest rate. The
carrying amount of the asset is reduced through the use of an
allowance account, and the amount of the loss will be recognised in
the Consolidated Statement of Comprehensive Income within
administrative expenses. Subsequent recoveries of amounts
previously provided for are credited against administrative
expenses in the Consolidated Statement of Comprehensive Income.
Trade payables are stated initially at fair value and
subsequently measured at amortised cost.
Loan notes are stated initially at fair value and subsequently
measured at amortised cost of the investment as agreed in the loan
instrument.
Share Based Payments
Equity settled share based payments to employees and others
providing similar services are measured at the fair value of the
equity instruments at the grant date. The total amount to be
expensed is determined by reference to the fair value of the
options granted:
-- including any market performance conditions (for example, an entity's share price);
-- excluding the impact of any service and non-market
performance vesting conditions (for example, profitability, sales
growth targets and remaining an employee of the entity over a
specified time period); and
-- including the impact of any non-vesting conditions (for
example, the requirement for employees to save).
The fair value determined at the grant date of the equity
settled share based payments is expensed on a straight line basis
over the vesting period, based on the Group's estimate of equity
instruments that will eventually vest, with a corresponding
increase in equity. At the end of each reporting period, the Group
revises its estimate of the number of equity instruments expected
to vest. The impact of the revision of the original estimates, if
any, is recognised in profit or loss such that the cumulative
expense reflects the revised estimate, with a corresponding
adjustment to the equity settled employee benefits reserve.
Equity settled share based payment transactions with parties
other than employees are measured at the fair value of the goods or
services received, except where that fair value cannot be estimated
reliably, in which case they are measured at the fair value of the
equity instruments granted, measured at the date the entity obtains
the goods or the counterparty renders the service.
Exercise proceeds net of directly attributable costs are
credited to share capital and share premium.
4. SEGMENTAL REPORTING
The Directors consider that the Group operates in a single
segment, that of oil and gas exploration, appraisal, development
and production, in a single geographical location, the North Sea of
the United Kingdom and do not consider it appropriate to
disaggregate data further from that disclosed.
5. FAIR VALUE OF NON-DERIVATIVE FINANCIAL ASSETS AND FINANCIAL LIABILITIES
Maturity analysis of financial assets and liabilities
Financial Assets
30/06/17 30/06/16 31/12/16
GBP GBP GBP
Up to 3 months 103,408 50,309 122,872
3 to 6 months - - -
Over 6 months - - -
--------- --------- ---------
103,408 50,309 122,872
========= ========= =========
Financial Liabilities
30/06/17 30/06/16 31/12/16
GBP GBP GBP
Up to 3 months 348,794 99,398 187,251
3 to 6 months - - -
Over 6 months - - -
--------- --------- ---------
348,794 99,398 187,251
========= ========= =========
Fair value estimation
Below analyses financial instruments carried at fair value, by
valuation method. The different levels have been defined as
follows:
-- Quoted prices (unadjusted) in active markets for identical
assets or liabilities (Level 1)
-- Inputs other than quoted prices included within Level 1 that
are observable for the asset or liability, either directly (that
is, as prices) or indirectly (that is, derived from prices) (Level
2)
-- Inputs for the asset or liability that are not based on
observable market data (that is, unobservable inputs) (Level 3)
6. OTHER INCOME
30/06/17 30/06/16 31/12/16
GBP GBP GBP
Refund of JV well costs - 89,202 89,202
Well insurance refund - 37,380 37,380
Carried costs reimbursement 140,156 - 87,528
--------- ---------
140,156 126,582 214,110
========= ========= =========
7. TAX
Jersey Oil and Gas plc is a trading company but no liability to
UK corporation tax arose on the ordinary activities for the period
ended 30 June 2017. As at 31 December 2016, Trap Oil Ltd, a wholly
owned subsidiary, had Ring Fenced Corporation Tax losses of
approximately GBP21.6m and Non-Ring Fenced Corporation Tax losses
of approximately GBP1.8m. Trap Oil Ltd also had approximately
GBP5.7m of losses available to offset future Supplementary Charge
profit.
8. EARNINGS/(LOSS) PER SHARE
Basic loss per share is calculated by dividing the losses
attributable to ordinary shareholders by the weighted average
number of ordinary shares outstanding during the period.
Diluted loss per share is calculated using the weighted average
number of shares adjusted to assume the conversion of all dilutive
potential ordinary shares.
Earnings Weighted
attributable average
to ordinary number Per share
shareholders of shares amount
GBP Pence
Period ended 30 June
2017
Basic & Diluted EPS
Loss attributable
to ordinary shareholders (626,979) 9,867,144 (6.35)
============== =========== ==========
9. INTANGIBLE ASSETS
Exploration
Costs
GBP
COST
At 1 January 2017 16,446,426
Disposals (16,222,821)
Additions 80,326
At 30 June 2017 303,931
=============
ACCUMULATED AMORTISATION
At 1 January 2017 16,398,063
Amortisation on disposals (16,222,821)
At 30 June 2017 175,242
=============
NET BOOK VALUE at
30 June 2017 128,689
=============
10. PROPERTY, PLANT & EQUIPMENT
Computer
& office
equipment
GBP
COST
At 1 January 2017 286,022
Disposals (160,236)
At 30 June 2017 125,786
=========
ACCUMULATED AMORTISATION, DEPLETION
& DEPRECIATION
At 1 January 2017 285,650
Depreciation on disposals (160,236)
Charge for period 372
At 30 June 2017 125,786
=========
NET BOOK VALUE at
30 June 2017 -
=========
11. NOTES TO THE CONSOLIDATED STATEMENT OF CASH
FLOWS
RECONCILIATION OF (LOSS)/PROFIT BEFORE TAX TO
CASH (USED IN)/GENERATED FROM OPERATIONS
30/06/17 30/06/16 31/12/16
(unaudited) (unaudited) (audited)
GBP GBP GBP
Loss for the period
before tax (626,979) (210,837) (793,439)
Adjusted for:
Amortisation, impairments,
depletion and depreciation 372 (91,732) 5,393
Gain on disposal assets - - (239,724)
Share based payments
(net) 66,121 - 114,788
Finance income (77) (1,152) (2,070)
------------ ------------ ------------
(560,563) (303,721) (915,052)
Decrease in inventories - - -
Decrease in trade and
other receivables 19,464 177,409 104,846
Increase/(Decrease)
in trade and other
payables 161,543 (204,793) (116,938)
------------ ------------ ------------
Cash used in operations (379,556) (331,105) (927,144)
============ ============ ============
CASH AND CASH EQUIVALENTS
The amounts disclosed in the consolidated statement of cash
flows in respect of cash and cash equivalents are in respect of
these consolidated statement of financial position amounts:
Period ended 30 June
2017
30/06/17 30/06/16 31/12/16
GBP GBP GBP
Cash and cash equivalents 1,452,902 582,154 1,882,310
----------
1,452,902 582,154 1,882,310
========== ========= ==========
12. COMMITMENTS AND GUARANTEES
In 2014, the Group assigned its lease of 35 King Street to a
third party, although the Group is still acting as Authorised
Guarantor for all liabilities of the assignee in relation to the
lease agreement, which terminates on 30 October 2018.
Jersey Oil and Gas E&P Ltd. (a wholly owned subsidiary of
Jersey Oil and Gas plc) sub leases office space in Jersey on a
rolling quarterly basis with no cancellation penalty. The office
address is Howard House, 9 The Esplanade, St Helier, Jersey,
Channel Islands, JE2 3QA.
13. CONTINGENT LIABILITIES
In 2015, the settlement agreement reached with our partners in
the Athena Consortium, means that, although Trap Oil Limited
remains a Licensee in the joint venture, any past or future
liabilities in respect of its interest can only be paid from the
revenue that the Athena Oil Field generates and 60 per cent. of net
disposal proceeds or net profits from the P.2170 and P.1989
licences which were the only remaining assets held by the Group at
the time of the agreement with the consortium partners who hold
security over these assets. Any future repayments, capped at the
unpaid liability associated with the Athena Oil Field, cannot be
calculated with any certainty, and any remaining liability still in
existence once the Athena Oil Field has been decommissioned will be
written off. A payment was made in 2016 to the Athena Consortium in
line with this agreement following the farm-out of P.2170 (Verbier)
to Statoil and the subsequent receipt of monies relating to that
farm-out.
14 CONTINGENT ASSET
The P.1989 licence ("Partridge") was farmed out in 2016 to
Azinor Catalyst Limited ("Azinor") and as such it has no value in
the Company's accounts. A well was drilled post the period end by
Azinor which was announced in September 2017 to be dry. As such,
the Company does not expect any further value to be generated from
this Contingent Asset.
15. RELATED PARTIES
During the period, Jersey Oil and Gas plc made loans available
to its wholly owned subsidiaries. The balances outstanding at the
end of the period are Trap Oil Ltd GBP68,483,066 (2016:
GBP68,412,220) and Jersey Oil & Gas E&P Ltd GBP591,130
(2016: GBP296,085) which are included in Trade and Other
Receivables. At the end of the period, Jersey Oil and Gas plc owed
Predator Oil Ltd GBP211,676 (2016: GBP211,676) which are included
in Trade and Other Payables, as Amounts owed by Group undertakings.
During the period, the Company also made sales to Trap Oil Ltd
amounting to GBP279,369 (2016: GBP220,067).
16. POST BALANCE SHEET EVENTS
In September 2017, it was announced that the Verbier exploration
well had been unsuccessful. The drilling of a Verbier sidetrack
exploration well is now underway to test whether
hydrocarbon-bearing sands exist up dip from the initial target.
17. AVAILABILITY OF THE INTERIM REPORT 2017
A copy of these results will be made available for inspection at
the Company's registered office during normal business hours on any
weekday. The Company's registered office is at 10 The Triangle, ng2
Business Park, Nottingham, NG2 1AE. A copy can also be downloaded
from the Company's website at www.jerseyoilandgas.com. Jersey Oil
and Gas plc is registered in England and Wales with registration
number 7503957.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR FDLLLDKFZBBZ
(END) Dow Jones Newswires
September 28, 2017 02:01 ET (06:01 GMT)
Jersey Oil And Gas (LSE:JOG)
과거 데이터 주식 차트
부터 6월(6) 2024 으로 7월(7) 2024
Jersey Oil And Gas (LSE:JOG)
과거 데이터 주식 차트
부터 7월(7) 2023 으로 7월(7) 2024
