RNS Number:9350S
Hereward Ventures PLC
08 December 2003
8 December 2003
HEREWARD VENTURES plc
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2003
CHAIRMAN'S STATEMENT
Highlights
* Bulgarian exploration holdings increased to over 1,000 square
kilometres
* Acquisition of Gold Fields' interest in Bulgarian JV
* Serbian Government granted exploration permits with known gold
resources
* Acquired interests in three UK onshore hydrocarbon exploration licences
I am pleased to report that during the last six months Hereward Ventures plc ("
Hereward" or "the Company") has made considerable progress in developing its
exploration projects within the Balkans in addition to adding three UK onshore
hydrocarbon projects to its portfolio. With new targets at a drill-ready stage
following positive exploration results in Bulgaria, and with a foothold in the
onshore UK hydrocarbon sector which has shown a marked resurgence over the past
year, I believe that Hereward is strongly positioned to enhance shareholder
value through the ongoing development of its resource exploration portfolio.
Operations
During the half year, the mineral exploration ground holdings in Bulgaria were
increased and re-established at Rosino and Gornoseltsi. Hereward also expanded
its Balkan activities into Serbia following the award of two new permits in
areas considered by Serbian geological experts as some of the most prospective
in the country. In addition, the Company entered into an agreement with Black
Rock Resources (UK) to acquire 5 per cent. interests in three UK onshore
hydrocarbon exploration permits.
Bulgaria
In Bulgaria, the exploration ground holdings have increased to in excess of
1,000 square kilometres through the award of four new permit areas by the
Bulgarian State. These areas are highly prospective for epithermal gold
mineralization and exploration work on these properties has advanced at an
accelerated pace during the latter half of the year. Numerous targets are now
at a drill-ready stage and await drilling at the earliest opportunity in 2004.
Acquisition of Gold Fields' Participating Interest in Joint Venture
In November, agreement was reached to acquire the participating interest of Gold
Fields in the Bulgarian joint venture. This followed several technical reviews
of the properties where independent consultants SRK Australia confirmed and
enhanced our knowledge base of the permit areas and specifically highlighted
several targets with the potential to host high-grade gold deposits in excess of
500,000 ounces. The Directors considered that these prospective permit areas
offer better value to our shareholders through 100 per cent. ownership rather
than suffering substantial dilution as a result of the joint venture programme
with Gold Fields. Following ratification of this transaction, Gold Fields will
become the largest single shareholder in Hereward, holding approximately 7 per
cent. of the issued share capital.
Exploration Results
Results and assays from our permit areas range from encouraging to excellent
with some promising high gold grades being returned. A new discovery of
stratiform gold mineralization on the Polski Gradets permit includes several
broad trench intercepts of up to 2.87 g/t. A trench sample from Lensko, within
the Rosino permit, assayed 981g/t gold. Elsewhere, also on the Rosino permit at
Tashlaka Hill where an initial resource of some 250,000 ounces of gold-holding
potential for early open pit development has been defined by Hereward, recent
drilling has returned a metric assay interval high of 234 g/t within a 20 metre
high grade intercept. Other permit areas also show outstanding future
potential. An open resource at Chaira on the Dobrocelets permit of some 450,000
ounces of gold exists where drill intercepts such as 209 metres at 1.35 g/t and
38 metres at 2.67 g/t have been encountered. Untested outcrops assaying 62.5 g/
t gold are currently being trenched. In short, the major exploration campaign
undertaken by our technical staff during the year has without doubt advanced our
projects.
Serbia
As indicated in my 2003 Annual statement, Hereward established an operating
subsidiary company in Serbia and was successfully granted two permits by the
Serbian Ministry for Mining and Energy. These prospective permits are on the
Tertiary metallogenetic belt located in the prolific Lece Mining District of
southern Serbia. The permits, named Ivan Kula and Tulare, cover an area of
approximately 150 square kilometres and host substantial established gold
resources.
The Ivan Kula Permit area hosts polymetallic gold mineralization with an
established resource estimated at 800,000 tonnes averaging 9 g/t gold, which
remains open on strike and at depth. The permit area also contains numerous
additional zones of gold mineralization where historic drill sample grades of 20
g/t gold and above make this area a priority gold exploration target for 2004.
Tulare contains known porphyry gold and copper including numerous additional
zones of gold-silver mineralization which remain untested. Our technical team
are now compiling project databases on each area with field work scheduled to
commence soon.
Ireland
We continue to hold base-metal licences in Tullamore, Ireland and believe that
the recent improvement in base metal prices provides scope for renewed interest
by potential joint venture partners for these properties.
Hydrocarbons
During 2003 the Board decided to evaluate the opportunities offered in the oil
and gas industry. Following independent reviews, the decision was made to
acquire a 5 per cent. interest in UK onshore oil exploration licences, PEDL 098,
099 and 113, located in southern England via a farm-in agreement with Black Rock
Resources (UK). Interests in the three licences will be earned by the
contribution of a 10 per cent. share of future costs which will include an
appraisal well expected to be drilled on the Sandhills prospect on PEDL 113 on
the Isle of Wight during 2004.
This transaction represents the first of planned oil and gas acquisitions where
the Board sees the opportunity for considerable growth. On this basis, we are
targeting the acquisition of production or near production assets in order to
establish cash flow for Hereward to fund future and potentially more speculative
exploration programmes.
Summary
I believe that Hereward holds a diverse range of quality exploration projects
that offer excellent upside. With an exploration programme planned in Bulgaria,
which includes the drilling of several 500,000 ounce plus gold targets and
exploration permits with known gold resources granted in Serbia, Hereward is
well positioned to exploit previously undeveloped resources within the Balkans
using modern exploration methods and technology. The addition of the UK
hydrocarbon projects with a well expected to be drilled on the Isle of Wight
during 2004 should also generate near term value to your Company and I look
forward to reporting in the future on further acquisitions within the oil and
gas sector.
As my concluding comment I would like to thank our exploration team in the
Balkans whom during a relatively short period of time have increased our gold
inventory to some 2.7 million ounces and continue to add value to Hereward
through exploration success and prudent acquisitions.
Dr Peter B Bolt
Chairman
8 December 2003
Consolidated Profit and Loss Account
for the six months ended 30 September 2003
6 months to 6 months to 12 months to
30 September 2003 30 September 2002 31 March 2003
Unaudited Unaudited Audited
# # #
Turnover - - -
Administrative expenses (222,232) (195,793) (281,478)
Interest received 7,589 12,755 20,798
Amounts written off investments - - (52,689)
Loss on ordinary activities
before taxation (214,643) (183,038) (313,369)
Tax on loss on ordinary activities - - -
Loss on ordinary activities after taxation (214,643) (183,038) (313,369)
Basic loss per share (0.22p) (0.22p) (0.33p)
Consolidated Statement of Total Recognised Gains and Losses
for the six months ended 30 September 2003
6 months to 30 6 months to 30 12 months to 31 March
September 2003 September 2002 2003
Unaudited Unaudited Audited
# # #
Loss for the financial year (214,643) (183,038) (313,369)
Exchange differences on foreign 1,641 (3,891) (1,209)
currency net investments
Lapse of Share Warrants - - 18,161
Total recognised gains and losses (213,002) (186,929) (296,417)
Consolidated Balance Sheet as at 30 September 2003
30 September 2003 30 September 31 March
Unaudited 2002 2003
# Unaudited Audited
# #
Fixed assets
Intangible assets 2,462,148 1,440,875 1,943,095
Tangible assets 28,776 85,860 100,751
Investments 61,765 114,454 61,765
2,552,689 1,641,189 2,105,611
Current assets
Debtors 98,230 89,226 114,001
Cash at bank and in hand 639,626 795,651 873,086
737,856 884,877 987,087
Creditors: amounts falling due within one
year (67,336) (133,196) (77,711)
Net current assets 670,520 751,681 909,376
Total assets less
current liabilities 3,223,209 2,392,870 3,014,987
Creditors: amounts falling due after more (969,451) (126,589) (548,227)
than one year 2,253,758 2,266,281 2,466,760
Capital and reserves
Called up share capital 982,350 860,320 982,350
Share premium account 2,390,864 2,127,501 2,390,864
Share warrants - 75,426 -
Profit and loss account (1,119,456) (796,966) (906,454)
Shareholders' funds 2,253,758 2,266,281 2,466,760
1. This Interim Statement for the six months ended 30 September 2003 is
unaudited and was approved by the directors on 8 December 2003. The financial
information set out above does not constitute statutory accounts within the
meaning of Section 240 of the Companies Act 1985. Statutory accounts relating
to the year ended 31 March 2003 have been filed with the Registrar of Companies.
2. No dividends were paid or proposed in respect of the six months ended 30
September 2003.
3. The accounting policies remain as stated in the Annual Report for the year
ended 31 March 2003
4. This Interim Statement is being sent by post to all registered
shareholders. Additional copies are available from the Company's registered
office, Cargil Management Services Limited, 22 Melton Street, London, NW1 2BW.
Enquiries:
David Bramhill Laurence Reed / Leesa Peters
Hereward Ventures plc Conduit PR
+44 (0) 117 957 3666 +44 (0) 20 7936 9095
+44 (0) 7801 540 358 +44 (0) 7979 955 923
laurence@conduitpr.com
Bill Staple / Tim Feather
Brown, Shipley & Co. Limited
+44 (0) 20 7282 3219
tim.feather@brownshipley.co.uk
Please note: more background information on Hereward Ventures plc can be
obtained by visiting www.hereward.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR NKPKDQBDDABK