Annual Report and Accounts
September 30 2003 - 9:41AM
UK Regulatory
RNS Number:3504Q
Texas Oil and Gas PLC
30 September 2003
Texas Oil and Gas plc
ANNUAL REPORT AND ACCOUNTS 2003
Further information and full copies of these accounts can be obtained from the
company at 9th Floor, St Alphage House, 2 Fore St, London EC2Y 5DA and by
contacting:
Company
Finance Director: Andrew Glendinning
Tel:- 0207 448 9752
Fax :- 0207 448 9753
PR
Parkgreen Communications: Justine Howarth
Tel:- 0207 287 5544
CHAIRMAN'S STATEMENT AND REVIEW OF OPERATIONS
The company through its wholly owned subsidiary, TOGS Energy Inc., owns
interests in 86 oil wells (31 with a 100% working interest and 55 with a 50%
working interest) of which 10 (100%) and 38 (50%) are producing. The wells are
operated on behalf of the company by M-C Production and Drilling Inc. (M-C).
The year to 31 March 2003 marked a period of significant growth and achievement,
which we hope has laid the foundations for the company's continuing expansion
and development.
The company has announced today the funding of the acquisition and the rework of
10 further wells on the BC Christian lease.
The turnover for the year was #286,989 which compares with #29,219 in the
previous year. This tenfold increase in turnover resulted in a gross profit from
US operations of #80,177 following a gross loss of #8,930 in the previous year.
Significant expenses were incurred during the year to support the expansion of
the company and the loss for the year of #380,530 reflects the considerable
costs involved in acquiring further wells and establishing our quote on the AIM
market.
Reserves at the year end, according to the report of an independent engineer,
were approximately 2.75 million barrels with a value of some $12.5 million. This
equates to around 18.3p per share in issue at that date.
The major achievements during the year included:
Admission to the Alternative Investment Market (AIM) of the London Stock
Exchange
The shares are now quoted under the symbol TXO.
Increase in production
Oil production rose steadily during the year and this is illustrated by the
increase in oil sales, which rose from 1,109 barrels in the month of April 2002
to a peak of 1,908 barrels in the month of March 2003.
Operatorship achieved
TOGS Energy Inc. is now a licensed operator and is bonded with the Texas
Railroad Commission.
First gross profit
The company moved into gross profit from its US operations.
Development strategy
It is the strategy of the company to increase its production activities by
acquiring and reworking further wells. Hence the acquisition of a further 10
wells on the company's best performing lease (BC Christian) referred to above.
Warrants due to be exercised by the end of this calendar year should provide
more working capital to support this strategy.
CHAIRMAN'S STATEMENT AND REVIEW OF OPERATIONS - continued
Recent developments
To date, 2003 has been a year of consolidation for the company after the flurry
of activity around the end of the last financial year and the AIM quote in the
Autumn. The company has begun its rework programme on the leases acquired at
that time, and previously, and is experiencing some success with most of the
leases performing either at or above budget although there have been some
disappointments. The plan is to increase overall production per lease by
reworking further wells and thereby reducing the average costs of production.
During the year we have said goodbye to two directors, David Parlons and Eric
Bosshard and welcomed two new directors, Andrew Glendinning, our new Finance
Director, and Ian Michael Slack. Many shareholders know David personally and
whilst we very much appreciate his past efforts, we are particularly pleased
that he has maintained his interest and support for the company since standing
down as a director.
Mike Chandler, knowing that the company's ability to raise cash was limited,
agreed to sell his assets for shares in Texas Oil & Gas plc. He has had the
patience and flexibility to adapt to the circumstances and has demonstrated his
long-term commitment to the company by the way he has introduced assets to the
company. Of the assets acquired so far, Mike Chandler has received some $400,000
in cash with the balance of over $2,500,000 being taken in stock and notes.
Apart from his #7,000 directors fee, he draws no salary.
Future developments
We continue to believe that Texas Oil and Gas PLC provides unique opportunities
to invest in low risk oil production.
As last year, we are proposing to hold the Annual General Meeting in November
and a notice advising details of timing and venue will be sent out in due
course.
Robin Baum
Chairman
26 September 2003
GROUP PROFIT AND LOSS ACCOUNT
For the year ended 31 March 2003
Notes 2003 2003 2003 2002
# # # #
Ordinary Exceptional Total Total
activities items
Turnover 1 286,989 - 286,989 29,219
Operating costs (206,812) - (206,812) (38,149)
Gross profit /(loss) 80,177 - 80,177 (8,930)
Administrative expenses 2 (234,877) (120,220) (355,097) (144,454)
Operating loss 2 (154,700) (120,220) (274,920) (153,384)
Interest receivable 3 829 - 829 258
Interest payable 4 (106,439) - (106,439) (25,053)
Loss on ordinary activities before taxation (260,310) (120,220) (380,530) (178,179)
Taxation on ordinary activities 5 - - - -
Loss for the financial year 15 (260,310) (120,220) (380,530) (178,179)
Loss per share (pence) 6 (0.98) (1.28)
All amounts derive wholly from continuing activities.
GROUP BALANCE SHEET
As at 31 March 2003
Notes 2003 2002
# #
Fixed assets
Intangible fixed asset - negative goodwill 7 (3,713,243) (4,125,465)
Tangible fixed assets 8 6,630,423 6,662,956
2,917,180 2,537,491
Current assets
Debtors 11 10,756 70,412
Cash and deposits 33,780 153,405
44,536 223,817
Creditors: Amounts falling due within one year 12 (277,718) (696,696)
Net current liabilities (233,182) (472,879)
Total assets less current liabilities 2,683,998 2,064,612
Creditors: Amounts falling due after more than one 12 (340,089) (410,526)
year
Net assets 2,343,909 1,654,086
Capital and reserves
Called up share capital 13 2,079,800 1,570,100
Share premium account 14 1,613,675 842,001
Profit and loss account 15 (1,349,566) (758,015)
Total equity shareholders' funds 16 2,343,909 1,654,086
The accounts on pages 14 to 31 were approved by the Board of Directors on 26
September 2003.
Robin Baum Andrew Glendinning
Chairman Finance Director
GROUP CASH FLOW STATEMENT
For the year ended 31 March 2003
Notes 2003 2002
# #
Net cash (outflow) /inflow from operating activities 18 (267,166) 28,365
Returns on investment and servicing of finance
Interest received 829 258
Interest paid (53,887) (25,053)
Net returns on investment and servicing of finance (53,058) (24,795)
Capital expenditure
Payments to acquire tangible fixed assets (171,229) (915,960)
Net cash outflow before financing (491,453) (912,390)
Financing
Share capital issues 418,450 549,700
Expenses of share issue (34,024) (185,599)
Decrease in long term loans - (22,622)
Decrease in loans to finance acquisitions 17 - 677,030
Net financing 384,426 1,018,509
(Decrease)/Increase in cash 17 (107,027) 106,119
This information is provided by RNS
The company news service from the London Stock Exchange
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