TIDMBOIL
RNS Number : 4648K
Baron Oil PLC
02 September 2021
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Regulation
Article 11 of the Market Abuse (Amendment) (EU Exit) Regulations
2019/310 until the release of this announcement.
2 September 2021
Baron Oil Plc
("Baron" or "the Company")
Interim Results for the six months ended 30 June 2021
Baron Oil Plc (AIM:BOIL), the AIM-quoted oil and gas exploration
company focused on opportunities in SE Asia, UK and Latin America,
announces its unaudited interim financial information and results
for the six months ended 30 June 2021.
Key Points
-- Consolidation of interests in Timor-Leste Chuditch PSC - Baron now has a 75% interest
-- Critical 3D seismic reprocessing by TGS to define Chuditch prospectivity underway
-- Agreed increase in interest in UK licence P2478 containing the large Dunrobin prospect
-- Acceleration of Dunrobin subsurface evaluation with Baron's technical oversight
-- First half of 2022 set to be a key period for both Chuditch and Dunrobin
Financial
-- Available cash (excluding monies held as security for bank
guarantees in Peru and Timor-Leste) as at 30 June 2021 of
GBP2,515,000 (30 June 2020: GBP1,798,000; 31 December 2020:
GBP1,190,000). Successful Placing and Subscription raising GBP3
million (gross) announced on 24 March 2021.
-- In April 2021, the Company increased its stake in SundaGas
(Timor-Leste Sahul) Pte. Ltd ("TLS") to a controlling interest of
85% at a cash cost of US$1,243,000; and acquired the remaining 15%
on 17 June 2021 in exchange for the issue of 1,157,202,885 ordinary
shares in the Company. Baron was not required to make any further
contribution to the bank guarantee deposit. The full value of the
guarantee deposit of US$1,000,000 is now consolidated, with
US$667,000 shown as a payable to SundaGas Pte. Ltd.
-- Net loss after finance costs and tax of GBP117,000 (30 June
2020: net loss of GBP703,000; year to 31 December 2020: net loss of
GBP920,000), representing a loss of 0.002p per share (30 June 2020:
0.020p; year to 31 December 2020: 0.023p).
-- There is a gain of GBP359,000 arising on the deemed disposal
of the interest in an associated undertaking under IFRS3 that
arises on the acquisition of the remaining equity in SundaGas
(Timor-Leste Sahul) Pte. Ltd (see note 7 of the Interim Financial
Statements).
-- Increase in administration expenses largely arises from
consolidation of TLS, which was previously accounted for as an
associated undertaking, for part of the period for the first time,
and a severance payment to a former director.
Andy Yeo, Chief Executive commented:
"We believe that the success in securing the significantly
increased interest in the Chuditch PSC places Baron in a strong
position to deliver material value for shareholders. The ongoing
sophisticated technical work and the scale of the mean Prospective
Resources, now independently evaluated to be an aggregate of
592MMBOE (gross), are believed to be of a sufficient level to
attract the interest of major regional gas players and other
potential funding partners. The Company anticipates initiating
discussions with a range of such parties from September 2020
onwards. In addition, we have been able to accelerate progress in
the UK on Licence P2478 as well as increasing our interest in the
potentially large Dunrobin prospect.
"The first half of 2022 will be an important period for Baron
for both Chuditch and P2478."
For further information, please contact:
Baron Oil Plc +44 (0)20 7117 2849
Andy Yeo, Chief Executive
Allenby Capital Limited +44 (0)20 3328 5656
Nominated Adviser and Joint Broker
Alex Brearley, Nick Harriss, Nick Athanas (Corporate
Finance)
Kelly Gardiner (Sales and Corporate Broking)
Turner Pope Investments (TPI) Limited +44 (0)20 3657 0050
Joint Broker
Andy Thacker
IFC Advisory Limited +44 (0)20 3934 6630
Financial PR and IR
Tim Metcalfe, Florence Chandler
Timor-Leste: offshore Chuditch PSC, Timor Sea - Baron 75%; TIMOR
GAP 25%
Corporate & PSC Developments
During the reporting period, Baron progressively increased its
interest in SundaGas Timor-Leste (Sahul) Pte. Ltd. ("TLS") from
33.33% to 100%. TLS is the parent company of SundaGas Banda
Unipessoal Lda. ("Banda"), the Timor-Leste registered subsidiary,
which is the Operator of and 75% interest holder in the TL-SO-19-16
PSC ("Chuditch PSC", or "PSC"). The remaining 25% interest is held
by TIMOR GAP Chuditch Unipessoal, Lda. ("TIMOR GAP"), a subsidiary
of the Timor-Leste state oil company, which is carried for all
exploration and development costs through to first production.
Through this process, which included a Placing and Subscription
of GBP3 million (gross) and a Share Exchange, Baron has secured
undiluted control of Banda, welcomed a significant new shareholder
to Baron, and retained the Banda technical and commercial team who
will continue to drive the Chuditch PSC project forward.
At the regulatory level, Banda enjoys a strong, constructive
relationship with Autoridade Nacional do Petróleo e Minerais
("ANPM"), the Timor-Leste state oil and gas regulatory authority,
and our partner, TIMOR GAP. This was an important consideration for
ANPM when granting Banda a year's extension to Contract Year 1 of
the PSC in February 2021, to enable the timely completion of the
committed work programme, in particular the 3D seismic reprocessing
project. The latest Management Committee Meeting with ANPM and
TIMOR GAP in late June 2021 reaffirmed the significant progress
being made on the PSC's work programme and ratified Banda's plans
for continuing technical studies and for the expansion and training
of the Timor-Leste based team.
3D Seismic Reprocessing
The licensing and reprocessing of 1,270km(2) of 3D seismic data
covering the Chuditch-1 discovery and adjacent prospects commenced
in April 2021 with the work being conducted by TGS-NOPEC
Geophysical Company ASA ("TGS") at their UK processing centre in
the United Kingdom.
The reprocessing is specifically designed to address key issues
associated with sea-bed topography and shallow geological features
which significantly impact the existing seismic image at the
reservoir level local to the Chuditch area, where previous
technologies had largely failed. Whilst necessarily computationally
intensive and time-consuming, the work is expected to result in a
considerably enhanced subsurface image, critical for the definition
of the size and shape of the accumulation, impacting the evaluation
of gas volumes in place and the location of potential future
wells.
Encouraging progress is being made with the reprocessing,
affirmed at a key milestone meeting held during August 2021.
Initial reprocessed data are scheduled to be delivered in Q4 2021
with final data due in Q2 2022. A decision on whether to enter the
drilling phase, with the potential for a high impact drilling
programme in 2023, is to be taken by Q4 2022 following the
interpretation of the final reprocessed data.
Geological and Geophysical Studies
In parallel with the reprocessing project, the geological and
geophysical database has been expanded by accessing legacy
information on seismic acquisition and drilling held on behalf of
the government of Timor-Leste by Geoscience Australia. These
additional data sets are being incorporated into the evaluation of
the Chuditch area, including:
-- extensive seismic interpretation and mapping, now complete,
based on legacy 2D seismic data, developing the understanding of
the regional context of the Chuditch discovery;
-- a detailed petroleum systems modelling exercise utilising the
expanded regional geological datasets and seismic mapping; and
-- a revised petrophysical evaluation of the Chuditch discovery.
Prospective Resources
On 17 July 2021, the Company announced the results of an
independent review of Prospective Resources by THREE60 Energy Asia
Sdn. Bhd. ("THREE60 Energy") for the Chuditch PSC, validated to SPE
PRMS 2018 industry standards. This independent review confirmed and
superseded previous non-SPE PRMS compliant gross volume potential
assessments, including for the first time an assessment of the
volumes of prospective condensate resources in the Chuditch-1
discovery and adjacent prospects and lead:
-- Aggregate Gross Mean Prospective Resources of 3,368 Bscf of
gas and 30 MMbbl of condensate, equivalent to a total of 592
MMBOE.
-- High Estimate (3U) of gross Prospective Resources equivalent
to a total of 1,156 MMBOE reflecting the potential for a single,
large accumulation.
-- Subsurface risks for the prospects and lead estimated to be
low since they share analogous geological characteristics to
Chuditch-1 and other gas discoveries in adjacent Timor-Leste and
Australian waters.
Regional Activity
We believe that recent events in the Timor Sea area illustrate
the high value potential of Chuditch within this important emerging
gas arena:
-- acceleration in regional gas development following the Santos US$1.25 billion acquisition of ConocoPhillips' upstream and midstream assets in northern Australia and Timor-Leste;
-- infill drilling results by Santos on the Bayu-Undan field in
Timor-Leste waters demonstrated high initial rates of gas and
condensate production from the Jurassic Plover Formation (the
reservoir encountered in Chuditch-1), expected to lead to an
extension of infrastructure life;
-- announcement of a Memorandum of Understanding between Santos
and ENI to jointly explore synergies for the development of gas
resources and infrastructure in the Timor Sea; and
-- robust demand and price growth in the SE Asia liquid natural
gas ("LNG") market, where future demand is forecast to exceed
supply.
UKCS: offshore Licence P2478, Inner Moray Firth - Baron 32%;
Corallian 36%; Upland 32% *
Background
The P2478 Licence contains the prospective Dunrobin area
consisting of large, rotated fault blocks mapped mostly on 3D
seismic data with candidate direct hydrocarbon indicators. The cost
of a well to test the Dunrobin prospect is expected to be modest at
c. GBP7 million gross as the prospect lies in waters of less than
100 metres and the total drilling depth is prognosed to be
approximately 660 metres.
Dunrobin is evaluated by Baron to be one of the few remaining
targets yet to be drilled in the UK North Sea where estimated gross
mean Prospective Resources are in excess of 100 MMbbl (a non-SPE
PRMS compliant estimate). In addition, there is the follow up
potential of the smaller Golspie prospect within the licence area.
The Beatrice field c.20km north of Dunrobin produced over 140 MMbbl
from the same petroleum system.
Regional Technical Studies
In Q1 2021, the joint venture received the results of regional
technical studies undertaken by a large European E&P company as
part of a work sharing agreement, which enhanced the partners'
understanding of the petroleum geology and corroborated their view
of Dunrobin as a potentially attractive and substantial target. The
results have been incorporated into the ongoing work programme.
Increase in Interest
During August 2021, Baron increased its interest in P2478 and in
particular in Dunrobin from 15% to 32% (* subject to the consent of
the UK Oil and Gas Authority ) in exchange for paying 100% of the
costs of the remaining Phase A work commitments up to a cap of
GBP160,000. Corallian remains the operator of Licence P2478, with
Baron assuming the role of technical overseer of the remaining
Phase A work commitments.
3D Seismic Reprocessing Programme
The key component of the Phase A work is 3D seismic reprocessing
which is expected to be delivered during H1 2022 and which is aimed
at reducing the range of volumetric uncertainty and subsurface risk
as well as providing potential drilling location candidates. The
accelerated evaluation will provide time to mature the Dunrobin
prospect and to engage with potential drilling partners ahead of
making a "drill or drop" decision before the end of Phase A in July
2023.
Peru: onshore Block XXI, Sechura Desert of northern Peru - Baron
100%
Background
In a country where political upheaval and uncertainty continues,
Peru has been hard-hit by the pandemic, recording the highest
COVID-19 death toll per capita in the world. Nevertheless, there
are signs that the authorities are beginning to scale back certain
COVID restrictions ahead of the next review of the current national
State of Emergency.
As previously noted, whilst the ongoing COVID-19 restrictions
have continued to delay progress in relation to a drilling decision
for the proposed El Barco-3X exploration well, there has been some
progress in our application for a three-year extension option to
the licence. Also, following the appointment of a new regional
president and council in the Piura region which contains the
licence area, our Peru based team has recently been able to visit
and engage with the local communities of Belisario and El
Barco.
Drilling Requirements
In order to progress the drilling project, we will require all
of the following:
-- confirmation that a three-year extension option to the licence is available;
-- a local farm-in operating partner;
-- freedom to conduct workshops with the local communities of Belisario and El Barco; and
-- drilling authorisation at the local level from, amongst
others, the regional president and council.
For now, the licence remains in Force Majeure. It remains
unclear how quickly oil and gas exploration activity might recover
once COVID restrictions have been lifted. Given the lengthy
economic shutdown and our drilling requirements before progressing
the project, we are unlikely to be able to take a decision on the
drilling of the El Barco-3X exploration well until we move into
2022.
Qualified Person's Statement
Pursuant to the requirements of the AIM Rules - Note for Mining
and Oil and Gas Companies, the technical information and resource
reporting contained in this announcement has been reviewed by Jon
Ford BSc, Fellow of the Geological Society, Technical Director of
the Company. Mr Ford has 40 years' experience as a petroleum
geoscientist. He has compiled, read, and approved the technical
disclosure in this regulatory announcement and indicated where it
does not comply with the Society of Petroleum Engineers'
standard.
GLOSSARY
Bscf Billion standard cubic feet.
High Estimate Denotes the high estimate qualifying as
or 3U Prospective Resources. Reflects a volume
estimate that there is a 10% probability
that the quantities actually recovered
will equal or exceed the estimate.
Mean Reflects a mid-case volume estimate of
resource derived using probabilistic methodology.
This is the mean of the probability distribution
for the resource estimates and may be
skewed by high resource numbers with relatively
low probabilities.
MMbbl Million barrels (either oil or condensate
liquids associated with gas, depending
on context).
MMBOE Million barrels of oil equivalent. Volume
derived by dividing the estimate of the
volume of natural gas in billion cubic
feet by six in order to convert it to
an equivalent in million barrels of oil
and, where relevant, adding this to an
estimate of the volume of oil or condensate
in millions of barrels.
Prospective Resources Quantities of petroleum estimated to be
potentially recoverable from undiscovered
accumulations by application of future
development projects.
SPE PRMS The Society of Petroleum Engineers' ("SPE")
Petroleum Resources Management System
("PRMS"): a system developed for consistent
and reliable definition, classification,
and estimation of hydrocarbon resources
prepared by the Oil and Gas Reserves Committee
of SPE and approved by the SPE Board in
June 2018 following input from six sponsoring
societies: the World Petroleum Council,
the American Association of Petroleum
Geologists, the Society of Petroleum Evaluation
Engineers, the Society of Exploration
Geophysicists, the European Association
of Geoscientists and Engineers, and the
Society of Petrophysicists and Well Log
Analysts.
Baron Oil plc
Consolidated Income Statement
for the six months ended 30 June 2021
6 months 6 months
to to Year to
30 June 30 June 31 December
2021 2020 2020
Note Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Revenue - - -
Cost of sales - - -
Gross loss - - -
Exploration and evaluation
expenditure (135) (67) (145)
Intangible asset impairment 22 (120) 59
Property, plant and equipment
depreciation (6) - (2)
Receivables impairment 42 (14) 74
Administration expenses 5 (424) (367) (710)
Profit/(loss) arising on foreign
exchange (36) 37 (157)
Other operating income 89 - -
Operating loss (448) (531) (881)
----------------------------------- ----- ------------------ ------------------ ------------------
Loss from interest in associated
undertaking (29) (15) (44)
Impairment of investment in
associated undertaking - (159) -
Gain on disposal of associated
undertaking 7 359 - -
Loss before interest and taxation (118) (705) (925)
----------------------------------- ----- ------------------ ------------------ ------------------
Finance cost (1) - -
Finance income 2 2 5
Loss on ordinary activities
before taxation 6 (117) (703) (920)
Income tax (expense)/benefit 8 - - -
Loss on ordinary activities
after taxation (117) (703) (920)
----------------------------------- ----- ------------------ ------------------ ------------------
Loss on ordinary activities
after taxation is attributable
to:
Equity shareholders (117) (703) (920)
Non-controlling interests - - -
Loss on ordinary activities
after taxation (117) (703) (920)
----------------------------------- ----- ------------------ ------------------ ------------------
Earnings/(loss) per share:
basic 9 (0.002)p (0.020)p (0.023)p
----------------------------------- ----- ------------------ ------------------ ------------------
Diluted 9 (0.002)p (0.020)p (0.023)p
----------------------------------- ----- ------------------ ------------------ ------------------
Baron Oil plc
Consolidated Statement of Comprehensive Income
for the six months ended 30 June 2021
6 months 6 months
to to Year to
30 June 30 June 31 December
2021 2020 2020
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Loss on ordinary activities after
taxation attributable to the
parent (117) (703) (920)
Other comprehensive income
Release of option reserve - - 41
Currency translation differences (19) 88 (115)
Total comprehensive income for
the period (136) (615) (994)
------------------------------------------ ---------------- ---------------- ------------
Total comprehensive income attributable
to:
Owners of the company (136) (615) (994)
------------------------------------------ ---------------- ---------------- ------------
Baron Oil plc
Consolidated Statement of Financial Position
at 30 June 2021
30 June 30 June 31 December
2021 2020 2020
Unaudited Unaudited Audited
Note GBP'000 GBP'000 GBP'000
Non-current assets
Property, plant and equipment 37 - 43
Intangibles 6 2,486 14 18
Goodwill - - -
Associated undertaking - - 151
2,523 14 212
----------------------------------- ----- ---------------- ------------------ ----------------
Current assets
Receivables 83 311 376
Cash and cash equivalents 2,515 1,798 1,190
Cash held as security for bank
guarantees 842 134 121
3,440 2,243 1,687
----------------------------------- ----- ---------------- ------------------ ----------------
Total assets 5,963 2,257 1,899
----------------------------------- ----- ---------------- ------------------ ----------------
Equity and liabilities
Capital and reserves attributable
to owners of the parent
Called up share capital 10 2,896 1,107 1,107
Share premium account 34,061 32,189 32,156
Share option reserve 135 137 135
Foreign exchange translation
reserve 1,509 1,731 1,528
Retained earnings (33,247) (32,954) (33,130)
Total equity 5,354 2,210 1,796
----------------------------------- ----- ---------------- ------------------ ----------------
Current liabilities
Trade and other payables 570 36 58
Taxes payable 15 11 16
585 47 74
----------------------------------- ----- ---------------- ------------------ ----------------
Non-current liabilities
Lease finance 24 - 29
Total equity and liabilities 5,963 2,257 1,899
----------------------------------- ----- ---------------- ------------------ ----------------
Baron Oil plc
Consolidated Statement of Cash Flows
for the six months ended 30 June 2021
6 months 6 months
to to Year to
30 June 30 June 31 December
2021 2020 2020
Unaudited Unaudited Audited
Note GBP'000 GBP'000 GBP'000
Operating activities 11 25 (675) (919)
Investing activities
Return from investment and servicing
of finance 2 2 5
Repayment from/(advances to)
associated undertakings 323 - (323)
Acquisition of intangible assets (900) (183) (14)
Acquisition of subsidiary and
associated undertakings (889) - (195)
(1,464) (181) (527)
---------------- ------------------- -----------------
Financing activities
Proceeds from issue of share
capital 2,768 2,307 2,295
Lease financing (4) - (6)
Net cash (outflow)/inflow 1,325 1,451 843
Cash and cash equivalents at
the beginning of the period 1,190 347 347
Cash and cash equivalents at
the end of the period 2,515 1,798 1,190
================ =================== =================
As at 30 June 2021, bank deposits include amounts totalling US$1,160,000
(30 June and 31 December 2020: US$160,000) that are being held in
respect of guarantees and are not available for use until the Group
fulfils certain licence and contractual commitments in Peru and
Timor-Leste. This is not considered to be liquid cash and has therefore
been excluded from the cash flow statement.
Should any of the Timor-Leste US $1,000,000 Bank Guarantee be released,
the net proceeds received shall be divided between SundaGas Pte.
Ltd ("SGPL") and Baron in the proportions of their Initial Interests
(66.67% and 33.33%). The receipt of any such funds shall satisfy
the Bank Guarantee Loan Account ("BGLA") which shall be considered
to be repaid in full. In the event that the Bank Guarantee is exercised
or the Bank Guarantee deposit is otherwise forfeited, SGPL and Baron
have agreed that the BGLA shall be written off and neither of them
shall have any claim against TLS in this respect.
Baron Oil plc
Consolidated Statement of Changes in Equity
for the six months ended 30 June 2021
6 months 6 months
to to Year to
30 June 30 June 31 December
2021 2020 2020
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Opening equity 1,796 455 455
Shares issued net of costs 3,694 2,307 2,295
Loss for the period attributable
to equity shareholders (117) (703) (920)
Share based payments - 63 81
Foreign exchange translation (19) 88 (115)
Closing equity 5,354 2,210 1,796
================ ============== ==============
Baron Oil plc
Notes to the Interim Financial Information
1. General Information
Baron Oil Plc is a company incorporated in England and Wales and
quoted on the AIM Market of the London Stock Exchange. The
registered office address is Finsgate, 5-7 Cranwood Street, London
EC1V 9EE.
The principal activity of the Group is that of oil and gas
exploration and production.
These financial statements are a condensed set of financial
statements and are prepared in accordance with the requirements of
IAS 34 and do not include all the information and disclosures
required in annual financial statements and should be read in
conjunction with the Group's annual financial statements as at 31
December 2020. The financial statements for the half period ended
30 June 2021 are unaudited and do not comprise statutory financial
statements within the meaning of Section 435 of the Companies Act
2006.
Statutory financial statements for the year ended 31 December
2020, prepared under IFRS, were approved by the Board of Directors
on 26 May 2021 and delivered to the Registrar of Companies.
2. Basis of Preparation
This consolidated interim financial information have been
prepared in accordance with International Financial Reporting
Standards ("IFRS") as adopted by the European Union and on the
historical cost basis, using the accounting policies which are
consistent with those set out in the Company's Annual Report and
Financial Statements for the year ended 31 December 2020. This
interim financial information for the six months to 30 June 2021,
which complies with IAS 34 'Interim Financial Reporting', was
approved by the Board on 1 September 2021.
3. Accounting Policies
Except as described below, the accounting policies applied are
consistent with those of the annual financial statements for the
period ended 31 December 2020, as described in those annual
financial statements.
The preparation of financial statements requires management to
make estimates and assumptions that affect the amounts reported for
assets and liabilities as at the balance sheet date and the amounts
reported for revenues and expenses during the period. The nature of
estimation means that actual outcomes could differ from those
estimates. Estimates and assumptions used in the preparation of the
financial statements are continually reviewed and revised as
necessary. Whilst every effort is made to ensure that such
estimates and assumptions are reasonable, by their nature they are
uncertain, and as such, changes in estimates and assumptions may
have a material impact in the financial statements.
i) Carrying value of property, plant and equipment and of
intangible exploration and evaluation fixed assets.
Valuation of petroleum and natural gas properties: consideration
of impairment includes estimates relating to oil and gas reserves,
future production rates, overall costs, oil and natural gas prices
which impact future cash flows. In addition, the timing of
regulatory approval, the general economic environment and the
ability to finance future activities through the issuance of debt
or equity also impact the impairment analysis. All these factors
may impact the viability of future commercial production from
developed and unproved properties, including major development
projects, and therefore the need to recognise impairment.
ii) Commercial reserves estimates
Oil and gas reserve estimates: estimation of recoverable
reserves include assumptions regarding commodity prices, exchange
rates, discount rates, production and transportation costs all of
which impact future cashflows. It also requires the interpretation
of complex geological and geophysical models in order to make an
assessment of the size, shape, depth and quality of reservoirs and
their anticipated recoveries. The economic, geological and
technical factors used to estimate reserves may change from period
to period. Changes in estimated reserves can impact developed and
undeveloped property carrying values, asset retirement costs and
the recognition of income tax assets, due to changes in expected
future cash flows. Reserve estimates are also integral to the
amount of depletion and depreciation charged to income.
Notes to the Interim Financial
Information
4. Segmental information
United South South Total
Kingdom America East
Asia
Six months ended 30 June GBP'000 GBP'000 GBP'000 GBP'000
2021
Unaudited
Revenue
Sales to external customers - - - -
_______ _______ _______ _______
Segment revenue - - - -
Results
Segment result (466) (26) 375 (117)
Total net assets 2,459 125 2,770 5,354
United South South Total
Kingdom America East
Asia
Six months ended 30 June GBP'000 GBP'000 GBP'000 GBP'000
2020
Unaudited
Revenue
Sales to external customers - - - -
_______ _______ _______ _______
Segment revenue - - - -
Results
Segment result (332) (197) (174) (703)
Total assets 2,067 143 - 2,210
United South South Total
Kingdom America East
Asia
Year ended 31 December GBP'000 GBP'000 GBP'000 GBP'000
2020
Audited
Revenue
Sales to external customers - - - -
_______ _______ _______ _______
Segment revenue - - - -
Results
Segment result (891) 15 (44) (920)
Total assets less liabilities 1,200 122 474 1,796
Baron Oil plc
Notes to the Interim Financial Information
(continued)
6 months 6 months
5. Administration expenses to to Year to
30 June 30 June 31 December
2021 2020 2020
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Directors' and employee benefit
expense 220 160 374
Director's severance payment 53 - -
Share-based payment - 63 81
Legal and professional fees 96 114 198
Other expenses 55 30 57
424 367 710
================== ================== ==================
6. Loss on ordinary activities
before taxation
6 months 6 months
to to Year to
30 June 30 June 31 December
2021 2020 2020
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
The loss on ordinary activities
before taxation includes:
Auditors' remuneration
Audit 12 13 32
Other non-audit services 1 1 2
Exploration and evaluation expenditure 135 67 145
Impairment of intangible assets (22) 120 (59)
Depreciation of property, plant
and equipment 6 - 2
Impairment of foreign tax receivables (42) 14 (74)
(Profit)/Loss on exchange 36 (37) 157
7. Gain on disposal of associated undertaking and acquisition
of subsidiary undertaking
During the period, the Company increased its stake in SundaGas
(Timor-Leste Sahul) Limited ("TLS") from 33.33% to 100%. In accordance
with IFRS3, this is treated as an effective disposal of the interest
in the associated undertaking requiring a remeasurement of its
cost to fair value. This results in a gain on disposal of GBP359,000.
As a consequence of the increased holding in TLS, the company is
now consolidated into the Group Income Statement and Statement
of Financial Position. As TLS is a single asset company in pre-production
phase, it is included as an oil & gas asset purchase rather than
as a business combination, and its carrying value is included in
intangible assets.
8. Income tax expense
There was no tax expense during the period (30 June 2020: nil;
31 December 2020: nil).
Baron Oil plc
Notes to the Interim Financial Information
(continued)
9. Earnings/(loss) per Share
6 months 6 months
to to Year to
30 June 30 June 31 December
2021 2020 2020
Unaudited Unaudited Audited
Pence Pence Pence
Earnings/(loss) per ordinary
share
Basic (0.002) (0.020) (0.023)
Diluted (0.002) (0.020) (0.023)
The earnings/(loss) per ordinary share is based on the Group's
loss for the period attributable to equity shareholders of GBP117,000
(30 June 2020: GBP703,000; 31 December 2020: GBP920,000) and a
weighted average number of shares in issue of 7,302,657,312 (30
June 2020: 3,545,718,838; 2020: 3,988,470,466).
10. Called up Share Capital
On 26 March 2021, the Company issued 1,525,000,000 Ordinary Shares
of 0.025p each at 0.05p per share, plus a further 4,475,000,000
Ordinary Shares of 0.025p each at 0.05p per share on 12 April 2021,
together yielding net proceeds after costs of GBP2,768,000.
On 17 June 2021, the Company issued 1,157,202,885 shares in exchange
for the remaining 15% of the ordinary share capital of SundaGas
(Timor-Leste Sahul) Pty. Ltd. not already held, at a value of GBP926,000.
11. Reconciliation of operating loss to
net cash outflow from operating activities
6 months 6 months
to to Year to
30 June 30 June 31 December
2021 2020 2020
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Loss for the period (117) (703) (920)
Depreciation and amortisation (16) 279 (57)
Share based payments - 63 81
Loss from interest in associated
undertaking 29 15 44
Other operating income non-cash
movement 89 - -
Finance income shown as an investing
activity (2) (2) (5)
Tax Expense/(Benefit) - - -
Foreign currency translation (21) (41) (52)
(Increase)/decrease in receivables 28 (262) (4)
Tax paid - 20 -
Increase/(decrease) in payables 35 (44) (6)
______ ______ _______
25 (675) (919)
Baron Oil plc
Notes to the Interim Financial Information
(continued)
12. Related party transactions
During the period, the Company purchased technical services
amounting to GBPnil (30 June 2020: GBP1.346; 31 December 2020:
GBP17,096) from Tedstone Oil and Gas Limited, a company controlled
by Mr Jon Ford, a director.
During the year, the directors subscribed for new ordinary
shares in the Company at a price of 0.005p per new ordinary
share as part of a placing of new ordinary shares that was
announced by the Company on 24 March 2021. The number of shares
subscribed for during the period, and the aggregate number
and percentage of shares held directly and indirectly by directors
are as follows.
Number of Total shareholding Percentage
Director shares subscribed held
Andrew Yeo 62,600,000 168,850,000 1.61%
Jon Ford 15,000,000 22,500,000 0.22%
John Wakefield 20,000,000 20,000,000 0.19%
13. Financial Information
The unaudited interim financial information for period ended
30 June 2021 do not constitute statutory financial statements
within the meaning of Section 435 of the Companies Act 2006.
The comparative figures for the year ended 31 December 2020
are extracted from the statutory financial statements which
have been filed with the Registrar of Companies and which contain
an unqualified audit report and did not contain statements
under Section 498 to 502 of the Companies Act 2006.
Copies of this interim financial information document are available
from the Company at its registered office at Finsgate, 5-7
Cranwood Street, London EC1V 9EE. The interim financial information
document will also be available on the Company's website www.baronoilplc.com.
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END
IR SSUFAFEFSEFU
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