TIDMANR
RNS Number : 0920B
Altona Energy PLC
31 March 2017
Embargoed until 7am 31 March 2017
Altona Energy plc
("Altona" or "the Company")
Interim Results
Altona (AIM: ANR) is pleased to announce its unaudited interim
results for the six months ended 31 December 2016.
Highlights
-- Application for a petroleum exploration licence (PELA 666)
was made on 17 October 2016 and is under consideration by the South
Australian Government
-- High level development road-map completed by WSG-Parsons
Brinckerhoff for the Arckaringa UCG project
-- New Deed of Variation agreed with Joint Venture Partners, who remain fully supportive
-- South Australia in urgent need of the development of a
significant asset such as Arckaringa which would provide power and
employment
For further information, please visit www.altonaenergy.com or
contact:
Altona Energy plc
Qinfu Zhang, Executive Chairman
Nicholas Lyth, Non-Executive Director +44 7769 906 686
Leander (Financial PR)
Christian Taylor- Wilkinson +44 7795 168 157
Northland Capital Partners Ltd (Nomad and
Broker)
Matthew Johnson / Gerry Beaney (Corporate
Finance)
John Howes (Corporate Broking) +44 20 3861 6625
About Altona Energy
Altona is listed on the London Stock Exchange's AIM market. It
is focused on the evaluation and development of the Company's
Arckaringa Project to exploit the significant coal resources of
approximately 7.8 billion tonnes (non-JORC). The project area is
covered by three exploration licences covering 2,500 km(2) in the
northern portion of the Permian Arckaringa Basin in South
Australia.
CHAIRMAN'S STATEMENT
The Company's strategy remains focused on its investment in the
Arckaringa Project, South Australia, a world class coal resource
exceeding 7.8 billion tonnes (1.3 billion tonnes JORC compliant)
and Altona, along with Sino-Aus Energy Group ("Sino-Aus") and
Wintask Group Limited ("Wintask") (together the "JV Partners")
continue to have the support of the South Australian Government's
Mining Department.
The board of Arckaringa Coal Chemical Joint Venture Co Pty
Limited ("the JV Company"), was informed on 28 July 2016 that it
required a Petroleum Exploration Licence ("PEL") before test
drilling could commence at Arckaringa. This licence, which is
governed by the Petroleum and Geothermal Energy Act (2000) requires
companies to conform to higher levels of regulation and is
considered necessary when extracting any type of hydrocarbon
product, including extraction by way of Underground Coal
Gasification ("UCG").
Therefore, on 17 October 2016, the JV Company made an
application to the South Australian Government for a licence, under
PELA 666. At the same time, it was established that another licence
application, PELA 604, owned by Sapex Energy Limited, a subsidiary
of Linc Energy Limited ("Linc Energy"), which entered into
voluntary administration on 15 April 2016, overlaps Altona's three
Exploration Licences (EL4511, 4512, 4513) relating to the
Arckaringa project.
The JV Company is now waiting to be awarded its own licence,
PELA 666, which covers the same area of land (9,259 km(2) ) as PELA
604. The South Australian Government has confirmed that the JV
Company's application would be the next to be assessed, should the
new owner of PELA 604 not proceed with their application.
The JV Company is confident that it can still deliver on its
strategy to develop the Arckaringa Project and continues to work
closely with WSP-Parsons Brinckerhoff (Australia) ("PB") who
produced a high level development road-map and UCG technology
review report for the project in July 2016.
The JV Partners remain committed to the project and on 6
September 2016, a new Deed of Variation was signed by the JV
Partners, providing revised terms for Sino-Aus to subscribe for a
second tranche of Altona shares and also return AUD$5 million of
funding into the JV Company. Both events will be triggered by the
granting of the PEL, confirmation from PB that all permits
necessary to commencing a UCG test drilling programme have been
received, and consent from the South Australian Government.
According to the joint venture agreement, a second tranche
contribution by Sino-Aus (AUD$ 5.4 million) and Wintask (AUD$
600,000) into the JV Company will happen within 180 days following
the above actions.
Financial Review
The financial loss of the Group for the six months ended 31
December 2016 was GBP241,000 (2015: GBP356,000). This is the second
period now where the full effect of the overhead reduction effort
has been demonstrated. For the six months under review, overheads
continued to fall to GBP241,000 down from GBP369,000 for the same
period in 2015. The Directors will continue to control costs whilst
the Company awaits news on the Arckaringa joint venture.
Outlook
The board of Altona, along with its JV Partners remain confident
that once the PEL is secured the JV Company will commence its test
drilling programme at the Arckaringa site, which will in turn lead
to a Bankable Feasibility Study. As mentioned in the Company's
Annual Report in December 2016, the South Australian region is
currently in an economic downturn and regularly experiences power
shortages, suggesting that a significant asset such as Arckaringa
would be given high priority by the government in order to provide
a large number of new jobs for the lifetime of the project and to
provide a long-term energy supply for the region. The fact remains
that Altona controls 7.8 billion tonnes of coal and this gives the
Company a number of options for the future.
Qinfu Zhang
Executive Chairman
31 March 2017
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE HALF YEARED 31 DECEMBER 2016
Unaudited Unaudited Audited
Half-year Half-year Year
ended ended ended
Notes 31 Dec 2016 31 Dec 2015 30 June 2016
GBP'000 GBP'000 GBP'000
Total administrative expenses
and loss from operations (241) (369) 25
Finance income - 1 1
Loss before taxation (241) (368) 26
Tax 2 - 12 12
Loss for the financial period (241) (356) 38
Other comprehensive income
Exchange differences on translating
foreign operations maybe subsequently
reclassified to profit or loss (1) 110 1,471
Total comprehensive (loss) attributable
to the equity holders of the
parent (242) (246) 1,509
------------- ------------- --------------
Loss per share
- Basic and diluted 3 (0.03p) (0.045p) (0.005p)
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
AS AT 31 DECEMBER 2016
Unaudited Unaudited Audited
31 Dec 2016 31 Dec 2015 30 June 2016
GBP'000 GBP'000 GBP'000
ASSETS
Non-current assets
Intangible assets 11,221 9,858 11,221
Other receivables 3 2 3
------------- ------------- --------------
Total Non-current assets 11,224 9,860 11,224
------------- ------------- --------------
Current assets
Trade and other receivables 14 59 17
Cash and cash equivalents 142 204 362
Total Current assets 156 263 379
------------- ------------- --------------
Total assets 11,380 10,123 11,603
------------- ------------- --------------
LIABILITIES
Current liabilities
Provisions 5 - 790 -
Trade and other payables 4 87 71 68
Total Current liabilities 87 861 68
------------- ------------- --------------
Total liabilities 87 861 68
------------- ------------- --------------
NET ASSETS 11,293 9,262 11,535
------------- ------------- --------------
Capital and reserve attributable
to the equity holders of the
Parent
Share capital 892 792 892
Share premium 18,178 17,778 18,178
Merger reserve 2,001 2,001 2,001
Foreign exchange reserve 1,448 88 1,449
Retained losses (11,226) (11,397) (10,985)
------------- ------------- --------------
TOTAL EQUITY 11,293 9,262 11,535
------------- ------------- --------------
CONSOLIDATED STATEMENT OF CASHFLOWS
FOR THE HALF YEAR ENDED 31 DECEMBER 2016
Unaudited Unaudited Audited
Half-year Half-year Year
ended ended ended
31 Dec 2016 31 Dec 2015 30 June 2016
GBP'000 GBP'000 GBP'000
Operating activities
Loss before taxation (241) (368) 26
Finance income - (1) (1)
Share based payments - - 18
(Increase)/ decrease in receivables 3 (12) 43
(Decrease) / increase in payables
and provisions 19 (37) (830)
Cash used in operations (219) (418) (744)
Income tax benefit received - 75 63
------------- ------------- --------------
Net cash outflow used in operating
activities (219) (343) (681)
------------- ------------- --------------
Investing activities
Interest received - 1 1
------------- ------------- --------------
Net cash outflow from investing activities - 1 1
------------- ------------- --------------
Financing activities
Proceeds from issue of shares - - 500
------------- ------------- --------------
Net cash inflow from financing activities - - 500
------------- ------------- --------------
Decrease in cash and cash equivalents
in period/ year (219) (342) (180)
Cash and cash equivalents at beginning
of period / year 362 543 543
Effect of exchange rate changes on
cash and cash equivalents (1) 3 (1)
------------- ------------- --------------
Cash and cash equivalents at end of
period / year 142 204 362
------------- ------------- --------------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE HALF YEAR ENDED 31 DECEMBER 2016
Foreign
Share Share Merger exchange Retained Total shareholders'
capital premium reserve reserve losses equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 30 June
2015 792 17,778 2,001 (22) (11,041) 9,508
Total comprehensive
loss for the period - - - 110 (356) (246)
Balance at 31 December
2015 792 17,778 2,001 88 (11,397) 9,262
Total comprehensive
loss for the period - - - 1,361 394 1,755
Issue of share capital 100 400 - - - 500
Share based payments - - - - 18 18
Balance at 30 June
2016 892 18,178 2,001 1,449 (10,985) 11,535
Total comprehensive
loss for the period - - - (1) (241) (242)
--------- --------- --------- ---------- --------- --------------------
Balance at 31 December
2016 892 18,178 2,001 1,448 (11,226) 11,293
--------- --------- --------- ---------- --------- --------------------
NOTES TO THE INTERIM REPORT
FOR THE HALF YEAR ENDING 31 DECEMBER 2016
1. GENERAL INFORMATION
Altona Energy Plc (the "Company") is a company registered in
England and Wales. The condensed consolidated interim financial
statements of the Company for the six months ended 31 December 2016
comprise the result of the Company and its subsidiaries (together
referred to as the "Group") and have been prepared in accordance
with the AIM Rules for Companies. As permitted, the Company has
chosen not to adopt IAS 34 "Interim Financial Statement" in
preparing these interim financial statements.
The consolidated interim financial information for the period 1
July 2016 to 31 December 2016 is unaudited. In the opinion of the
Directors the condensed interim financial information for the
period presents fairly the financial position, and results from
operations and cash flows for the period in conformity with the
generally accepted accounting principles consistently applied. The
condensed interim financial information incorporates unaudited
comparative figures for the interim period 1 July 2015 to 31
December 2015 and extracts from the audited financial statements
for the year to 30 June 2016.
The financial information contained in this interim report does
not constitute statutory accounts as defined by section 435 of the
Companies Act 2006.
The comparatives for the full year ended 30 June 2016 are not
the Company's full statutory accounts for that year. A copy of the
statutory accounts for that year has been delivered to the
Registrar of Companies. The auditor's report on those financial
statements was unqualified but did include a reference to the
uncertainties surrounding going concern, to which the auditors drew
attention by way of emphasis of matter and did not contain a
statement under s498 (2) - (3) of Companies Act 2006. The interim
report has not been audited or reviewed by the Company's auditor.
The key risks and uncertainties and critical accountancy estimates
remain unchanged from 30 June 2016 and the accountancy policies
adopted are consistent with those used in the preparation of its
financial statements for the year ended 30 June 2016.
2. TAXATION
The Group has recognised a GBPNil tax credit (31 December 2015:
GBP12,000 and 30 June 2016: GBP12,000) in respect of the concession
for research and development tax credits available to the Group. No
current taxation has been provided due to losses in the period.
3. LOSS PER SHARE
The basic loss per share is derived by dividing the loss for the
period attributable to ordinary shareholders by the weighted
average number of shares in issue.
Unaudited Unaudited Audited
31 Dec 2016 31 Dec 2015 30 June 2016
Loss for the period (GBP'000) (241) (356) 38
Weighted average number of
shares - expressed in millions 892 792 835
Basic loss per share - expressed
in pence (0.03p) (0.045p) (0.005p)
As the inclusion of the potential ordinary shares would result
in a decrease in the loss per share they are considered to be
anti-dilutive and, as such, the diluted loss per share calculation
is the same as the basic loss per share.
4. TRADE AND OTHER PAYABLES
Unaudited Unaudited Audited
31 Dec 2016 31 Dec 2015 30 June 2016
GBP'000 GBP'000 GBP'000
Trade payables 56 41 37
Accruals and other payables 31 30 31
------------- ------------- --------------
87 71 68
============= ============= ==============
5. PROVISIONS
Unaudited Unaudited Audited
31 Dec 2016 31 Dec 2015 30 June 2016
GBP'000 GBP'000 GBP'000
Current provision
Taxes & Social Security - 790 -
------------- ------------- --------------
Following the conclusion of HMRC's enquiries in respect of
potentially underpaid tax the provision was released during the
previous period.
6. POST REPORTING DATE EVENTS
There were no material post reporting date events.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR OKKDQABKDCNN
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