TIDMBOIL

RNS Number : 8368W

Baron Oil PLC

23 August 2022

The information contained within this announcement is deemed by the Company to constitute inside information for the purposes of Regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310. Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

23 August 2022

Baron Oil Plc

("Baron", or the "Company")

Interim Results for the six months ended 30 June 2022

Baron Oil Plc (AIM: BOIL), the AIM-quoted oil and gas exploration company focused on assets in SE Asia and the UK, is pleased to announce its unaudited interim results for the six months ended 30 June 2022.

Key Points

 
  --   Considerable technical advances made on Chuditch, offshore 
        Timor-Leste. Our geoscience team are interpreting the improved 
        subsurface image resulting from the TGS 3D reprocessing 
        project and integrating it into a revised evaluation. 
  --   Likewise, in UK Licence P2478, the 3D seismic reprocessing 
        project and geochemical studies have been received and re-interpretation 
        commenced on schedule in July. The revised evaluation of 
        the prospectivity of the licence, including the Dunrobin 
        prospect, is anticipated to be delivered during Q4 2022. 
  --   Relinquishment of legacy Block XXI allows for an orderly 
        withdrawal from Peru. 
  --   A Placing and Subscription in April 2022 raised approximately 
        GBP1.65m gross (net GBP1.5m), primarily to progress the 
        Chuditch and P2478 projects towards their key milestones. 
  --   At the end of the half year period, the free cash position 
        stood at GBP2,365,000 (30 June 2021: GBP1,650,000). 
 

Commenting on the results, John Wakefield, Non-executive Chairman, said:

"We believe that Baron is in a strong position to deliver value to shareholders as our two major projects move through key evaluation points at the same time as the oil & gas sector tailwinds of energy security, structural imbalances in LNG, and historically high gas prices are firmly with us. Our strategy remains that of seeking and working up high potential impact exploration and appraisal opportunities at significant equity in proven hydrocarbon basins."

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 more than 40 years' experience as a petroleum geoscientist. He has compiled, read, and approved the technical disclosure in this regulatory announcement.

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 Broker 
Alex Brearley, Nick Harriss, Nick Athanas (Corporate 
 Finance) 
 Kelly Gardiner (Sales and Corporate Broking) 
IFC Advisory Limited                                      +44 (0) 20 3934 6630 
Financial PR and IR 
Tim Metcalfe, Florence Chandler 
 
 
 

FINANCIALS

The net result for the period was a loss before taxation of GBP419,000 (30 June 2021: net loss of GBP117,000; year ended 31 December 2021: net loss of GBP1,127,000), representing a loss of 0.003p per share (30 June 2021: 0.002p; year to 31 December 2021: 0.012p). It should be noted that the interim and year end results for 2021 included a one-off non-cash gain on the deemed disposal of an associated undertaking amounting to GBP302,000.

Exploration and evaluation expenditure written off and included in the Income Statement amounts to GBP120,000, consisting of Peru-related costs up to the date of the relinquishment of the Block XXI licence, surface rental in Timor-Leste, and technical consultancy. An impairment provision in respect of a Peru tax receivable was reduced by GBP44,000, this being attributable to adjustments arising from the relinquishment of the licence.

Administration expenses for the period amounted to GBP497,000, compared to GBP424,000 in the same period in 2021, and GBP1,321,000 for the whole of 2021 The increase over the previous six month period is entirely due to the full inclusion of expenses arising in Timor-Leste (first consolidated in April 2021), and the relative reduction on the 2021 full year figures is attributable to lower director and staff salary costs, and the inclusion of share-based payments of GBP286,000 in 2021, not repeated in 2022.

During the six months to 30 June 2022, the US Dollar strengthened against the Pound Sterling considerably, with an opening rate of $1.35 and a closing rate of $1.21. This has given rise to a substantial gain on holdings of US Dollar assets of GBP161,000 (30 June 2021: loss of GBP36,000; 31 December 2021: gain of GBP22,000).

At the end of the period, free cash reserves of the Group had increased to GBP2,365,000 from a level at the preceding year end of GBP1,650,000. The proceeds of a Placing and Subscription of new ordinary shares in the year amounting to GBP1,508,000 net of costs bolstered the Company's cash reserves. The Group's investment in intangible assets in the UK and Timor-Leste amounted to GBP383,000 in the period, together with GBP410,000 of operating cash outflow.

PROJECTS

SE Asia: Timor-Leste, offshore TL-SO-19-16 PSC ("Chuditch") - Baron 75%; Timor Gap 25%

Significant technical progress has been made since the beginning of the year on the evaluation of the Chuditch-1 discovery and offset analogous prospectivity. Our geoscience team is fully engaged in the interpretation of the significantly improved subsurface image resulting from the TGS 3D reprocessing project and its integration with petroleum systems, reservoir and other technical studies. Once the geoscience evaluation is completed we will be updating our development and gas export option studies, including the layout and costs of infield facilities, pipeline and standalone options for gas export, and the treatment and storage of carbon dioxide.

We are engaging with multiple potential farm-in partners by hosting a continuously updated dataroom. Farm-in candidates include not only 'traditional' exploration and production industry players, but also companies seeking security of gas supply as well as infrastructure providers.

In June, as part of our ongoing showcasing of Chuditch, Baron's wholly owned subsidiary SundaGas Banda Unipessoal Lda. ("SundaGas"), the operator of the Chuditch PSC, presented at the 4(th) Timor-Leste Energy & Mining Summit in Dili and the South-East Asia Petroleum Exploration Society (SEAPEX) Asia-Pacific conference in London. This will be followed in September with further presentations at the Business and Exploration Opportunities Show (BEOS) in London, and at the RIU Good Oil & Gas Energy Conference in Perth, Western Australia, which is Australia's pre-eminent oil and gas investment forum for junior and emerging oil and gas explorers and producers.

Our office in Dili, the capital of Timor-Leste, became fully staffed and operational during the first half of 2022, thereby reinforcing our already strong and constructive relationships with in-country authorities, partners and industry peers.

United Kingdom Offshore Licence P2478 - Corallian 36%; Upland Resources 32%; Baron 32%

The 3D seismic reprocessing and geochemical studies covering the Dunrobin and other prospects within Licence P2478 in the Inner Moray Firth have been delivered with a significant uplift in data quality believed to have been achieved. The interpretation of the revised data began on schedule in July 2022. An updated prospectivity evaluation is anticipated to be available during Q4 2022, which will provide sufficient time for the Joint Venture partners to consider options, potentially including engaging with prospective drilling and funding partners, ahead of the July 2023 'drill or drop' licence decision.

We have been encouraged by the UK Government's stance on energy security which has the potential to revive the business and regulatory hydrocarbon exploration environment in the UK North Sea. In addition, the proposed "windfall" tax (the Energy Profits Levy) may lead to producing oil and gas companies re-engaging in exploration drilling. Both aspects may have a positive impact on the chances of the potentially large Dunrobin prospect with its shallow target depths being tested.

Peru

Baron announced in April 2022 the relinquishment of its legacy Peru Licence Block XXI, and in June 2022 the release and successful return of its US$160,000 Bank Guarantee. Through its fully owned subsidiary Peru, Gold Oil Peru SAC, the Company continues to work with Perupetro SA (the Peruvian national oil & gas agency and licensing authority) to establish and file an Abandonment Plan. Ongoing cash expenditure is minimal, and we do not anticipate any material write-offs or impairment as we complete our exit from Peru.

Shareholder Webinar

Based on the success of our first live investor presentation in late January 2022, we anticipate holding a second similar Chuditch focused event during the early part of Q4 2022.

January's Chuditch presentation, which is available on the Baron website, included an updated technical overview; description of the overall commercial context; options for potential future gas export strategies via pipeline to LNG facilities, or standalone solutions such as a Floating Liquefied Natural Gas (FLNG) facility; preliminary concepts for the handling of carbon dioxide and CCS (carbon capture and storage); and a preliminary design for a Chuditch appraisal well.

Glossary

 
LNG    Liquefied Natural Gas 
 
  PSC    Production Sharing Contract 
 
TGS    TGS-NOPEC Geophysical Company 
 

Consolidated Income Statement

for the six months ended 30 June 2022

 
                                           Note     6 months     6 months           Year 
                                                          to           to             to 
                                                     30 June      30 June    31 December 
                                                        2022         2021           2021 
                                                   Unaudited    Unaudited        Audited 
                                                     GBP'000      GBP'000        GBP'000 
 Revenue                                                   -            -              - 
 Cost of sales                                             -            -              - 
----------------------------------------  -----  -----------  -----------  ------------- 
 Gross loss                                                -            -              - 
 Exploration and evaluation expenditure                (120)        (135)          (218) 
 Intangible assets impairment                              -           22           (17) 
 Property, plant and equipment 
  depreciation                                           (8)          (6)           (11) 
 Receivables reduction in impairment                      44           42            (7) 
 Administration expenses                      5        (497)        (424)        (1,321) 
 Profit/(loss) arising on foreign 
  exchange                                               161         (36)             22 
 Other operating income                                    -           89             89 
----------------------------------------  -----  -----------  -----------  ------------- 
 Operating loss                               6        (420)        (448)        (1,463) 
----------------------------------------  -----  -----------  -----------  ------------- 
 Income from interest in associated 
  undertaking                                              -         (29)             29 
 Gain on disposal of associated 
  undertaking                                              -          359            302 
----------------------------------------  -----  -----------  -----------  ------------- 
 Loss before interest and taxation                     (420)        (118)        (1,132) 
----------------------------------------  -----  -----------  -----------  ------------- 
 Finance cost                                            (1)          (1)            (2) 
 Finance income                                            2            2              7 
----------------------------------------  -----  -----------  -----------  ------------- 
 Loss on Ordinary activities 
  before taxation                                      (419)        (117)        (1,127) 
 Income tax (expense)/benefit                 8            -            -              - 
----------------------------------------  -----  -----------  -----------  ------------- 
 Loss on ordinary activities 
  after taxation                                       (419)        (117)        (1,127) 
----------------------------------------  -----  -----------  -----------  ------------- 
 Loss on ordinary activities after 
  taxation is attributable to: 
 Equity shareholders                                   (419)        (117)        (1,127) 
 Non-controlling interests                                 -            -              - 
----------------------------------------  -----  -----------  -----------  ------------- 
 Loss on ordinary activities 
  after taxation                                       (419)        (117)        (1,127) 
----------------------------------------  -----  -----------  -----------  ------------- 
 Earnings per share: basic                    9     (0.003)p     (0.002)p       (0.012)p 
----------------------------------------  -----  -----------  -----------  ------------- 
 Diluted                                      9     (0.003)p     (0.002)p       (0.012)p 
----------------------------------------  -----  -----------  -----------  ------------- 
 
 

Consolidated Statement of Comprehensive Income

for the six months ended 30 June 2022

 
                                               6 months     6 months        Year to 
                                                     to           to    31 December 
                                                30 June      30 June           2021 
                                                   2022         2021        Audited 
                                              Unaudited    Unaudited        GBP'000 
                                                GBP'000      GBP'000 
  Loss on ordinary activities after 
   taxation attributable to the parent            (419)        (117)        (1,127) 
  Other comprehensive income 
  Release option reserve                             56            -             33 
  Currency translation differences                   55         (19)             33 
------------------------------------------  -----------  -----------  ------------- 
  Total comprehensive income for the 
   period                                         (308)        (136)        (1,061) 
------------------------------------------  -----------  -----------  ------------- 
  Total comprehensive income attributable 
   to: 
  Owners of the company                           (308)        (136)        (1,061) 
------------------------------------------  -----------  -----------  ------------- 
 

Consolidated Statement of Financial Position

at 30 June 2022

 
                                                               30 June      30 June   31 December 
                                                                  2022         2021          2021 
                                                             Unaudited    Unaudited     Unaudited 
                                           Note                GBP'000      GBP'000       GBP'000 
 Asset 
 Non-current assets 
 Property, plant and equipment                                      40           37            34 
 Intangible fixed assets                                         3,266        2,486         2,736 
--------------------------------------  -------  ---------------------  -----------  ------------ 
                                                                 3,306        2,523         2,770 
--------------------------------------  -------  ---------------------  -----------  ------------ 
 Current assets 
 Receivables                                                       119           83            54 
 Cash and cash equivalents                   10                  2,365        2,515         1,650 
 Cash held as security for bank 
  guarantees                                 10                    823          842           859 
--------------------------------------  -------  ---------------------  -----------  ------------ 
                                                                 3,307        3,440         2,563 
--------------------------------------  -------  ---------------------  -----------  ------------ 
 
 Total assets                                                    6,613        5,963         5,333 
======================================  =======  =====================  ===========  ============ 
 
 Equity and liabilities 
 Capital and reserves attributable 
  to owners of the parent 
 Called up share capital                     11                  3,583        2,896         2,896 
 Share premium account                                          34,882       34,061        34,061 
 Share option reserve                                              332          135           388 
 Foreign exchange translation reserve                            1,616        1,509         1,561 
 Retained earnings                                            (34,587)     (33,247)      (34,224) 
--------------------------------------  -------  ---------------------  -----------  ------------ 
 Total equity                                                    5,826        5,354         4,682 
--------------------------------------  -------  ---------------------  -----------  ------------ 
 
 Current liabilities 
 Trade and other payables                                          760          570           620 
 Taxes payable                                                      13           15            12 
--------------------------------------  -------  ---------------------  -----------  ------------ 
                                                                   773          585           632 
--------------------------------------  -------  ---------------------  -----------  ------------ 
 Non-current liabilities 
 Lease finance                                                      14           24            19 
 
 Total equity and liabilities                                    6,613        5,963         5,333 
======================================  =======  =====================  ===========  ============ 
 

Consolidated Statement of Cash Flows

for the six months ended 30 June 2022

 
                                                      6 months      6 months        Year to 
                                                            to    to 30 June    31 December 
                                                       30 June          2021           2021 
                                                          2022     Unaudited      Unaudited 
                                             Note    Unaudited       GBP'000        GBP'000 
                                                       GBP'000 
 Operating activities                          12        (511)         (334)          (576) 
----------------------------------------  -------  -----------  ------------  ------------- 
 
 Investing activities 
 Return from investment and servicing 
  of finance                                                 2             2              7 
 Repayment from associated undertakings                      -           323            323 
 Performance bond guarantee deposit 
  (2022 - recovery)                                        119             -          (742) 
 Acquisition of intangible assets                        (383)       (1,609)        (2,415) 
 Acquisition of property, plant 
  & equipment                                             (15)             -            (1) 
 Investment in associated undertaking                        -          (93)           (93) 
 Disposal of associated undertaking                          -           272            272 
----------------------------------------  -------  -----------  ------------  ------------- 
                                                         (277)       (1,105)        (2,649) 
----------------------------------------  -------  -----------  ------------  ------------- 
 Financing activities 
 Proceeds from issue of share capital                    1,508         2,768          3,694 
 Lease financing                                           (5)           (4)            (9) 
----------------------------------------  -------  -----------  ------------  ------------- 
 
 Net cash (outflow)/inflow                                 715         1,325            460 
 Cash and cash equivalents at the 
  beginning of the period                                1,650         1,190          1,190 
----------------------------------------  -------  -----------  ------------  ------------- 
 
 Cash and cash equivalents at the 
  end of the period                                      2,365         2,515          1,650 
========================================  =======  ===========  ============  ============= 
 

As at 30 June 2022, bank deposits include amounts totalling US$1,000,000 (30 June and 31 December 2021: US$1,160,000) that are being held in respect of guarantees and are not available for use until the Group fulfils certain licence commitment in Timor-Leste and, previously, Peru. This is not considered to be liquid cash and has therefore been excluded from the cash flow statement.

See also note 10 to the Financial Statements.

Consolidated Statement of Changes in Equity

for the six months ended 30 June 2022

 
                                    6 months     6 months        Year to 
                                          to           to    31 December 
                                     30 June      30 June           2021 
                                        2022         2021        Audited 
                                   Unaudited    Unaudited        GBP'000 
                                     GBP'000      GBP'000 
 
  Opening equity                       4,682        1,796          1,796 
  Shares issued net of costs           1,508        3,694          3,694 
  Loss for the period                  (419)        (117)        (1,127) 
  Share based payments                     -            -            286 
  Foreign exchange translation            55         (19)             33 
-------------------------------  -----------  -----------  ------------- 
  Closing equity                       5,826        5,354          4,682 
===============================  ===========  ===========  ============= 
 

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.

This financial information is 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 for the year ended 31 December 2021. The financial information for the six months to 30 June 2022 is 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 2021, prepared under IFRS, were approved by the Board of Directors on 30 May 2022 and delivered to the Registrar of Companies.

   2.             Basis of Preparation 

This consolidated interim financial information has been prepared in accordance with UK adopted International Financial Reporting Standards ("IFRS") and IFRIC interpretations issued by the International Accounting Standards Board (IASB), 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 2021. This interim financial information for the six months to 30 June 2022, which complies with IAS 34 'Interim Financial Reporting', was approved by the Board on 22 August 2022.

   3.             Accounting Policies 

The accounting policies applied are consistent with those of the annual financial statements for the period ended 31 December 2021, 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 information.

   4.             Segmental information 
 
                                    United      South        South      Total 
                                   Kingdom    America    East Asia 
                                   GBP'000    GBP'000      GBP'000    GBP'000 
 Six months ended 30 June 
  2022 
 Unaudited 
 Revenue 
 Sales to external customers             -          -            -          - 
-------------------------------  ---------  ---------  -----------  --------- 
 Segment revenue                         -          -            -          - 
===============================  =========  =========  ===========  ========= 
 
 Results 
 Segment result                      (178)        (6)        (235)      (419) 
===============================  =========  =========  ===========  ========= 
 
 Total assets less liabilities       2,322          5        3,499      5,826 
===============================  =========  =========  ===========  ========= 
 
 
                                    United      South        South      Total 
                                   Kingdom    America    East Asia 
                                   GBP'000    GBP'000      GBP'000    GBP'000 
 Six months ended 30 June 
  2021 
 Unaudited 
 Revenue 
 Sales to external customers             -          -            -          - 
-------------------------------  ---------  ---------  -----------  --------- 
 Segment revenue                         -          -            -          - 
===============================  =========  =========  ===========  ========= 
 
 Results 
 Segment result                      (466)       (26)          375      (117) 
===============================  =========  =========  ===========  ========= 
 
 Total assets less liabilities       2,459        125        2,770      5,354 
===============================  =========  =========  ===========  ========= 
 
 
                                    United      South        South      Total 
                                   Kingdom    America    East Asia 
                                   GBP'000    GBP'000      GBP'000    GBP'000 
 Year ended 31 December 2021 
 Audited 
 Revenue 
 Sales to external customers             -          -            -          - 
-------------------------------  ---------  ---------  -----------  --------- 
 Segment revenue                         -          -            -          - 
===============================  =========  =========  ===========  ========= 
 
 Results 
 Segment result                    (1,065)      (130)           68    (1,127) 
===============================  =========  =========  ===========  ========= 
 
 Total assets less liabilities       4,237        125          320      4,682 
===============================  =========  =========  ===========  ========= 
 
   5.             Administration expenses 
 
                                  6 months to   6 months      Year to 
                                                      to 
                                      30 June    30 June  31 December 
                                         2022       2021         2021 
                                    Unaudited  Unaudited      Audited 
                                      GBP'000    GBP'000      GBP'000 
 
Directors' and employee benefit 
 expense                                  251        220          468 
Share-based payments                        -          -          286 
Director's severance payment                -         53           53 
Legal and professional fees                91         96          206 
Other expenses                            155         55          308 
--------------------------------  -----------  ---------  ----------- 
                                          497        424        1,321 
================================  ===========  =========  =========== 
 
   6.             Operating loss 
 
                                          6 months   6 months      Year to 
                                                to         to 
                                           30 June    30 June  31 December 
                                              2022       2021         2021 
                                         Unaudited  Unaudited      Audited 
                                           GBP'000    GBP'000      GBP'000 
The loss on ordinary activities 
 before taxation includes: 
Auditors' remuneration 
Audit                                           21         12           21 
Other non-audit services                         1          1            5 
Exploration and evaluation expenditure           -        135          160 
Impairment/(impairment reduction) 
 of intangible assets                            -       (22)        1,047 
Intangible asset written off                   136          -            - 
Depreciation of property, plant 
 and equipment                                   8          6            - 
Impairment/(impairment reduction) 
 of foreign tax receivables                   (44)       (42)         (16) 
(Profit)/Loss on exchange                    (161)         36           22 
=======================================  =========  =========  =========== 
 
   7.             Gain on disposal of associated undertaking and acquisition of subsidiary undertaking 

During the year ended 31 December 2021, the Company increased its stake in SundaGas (Timor-Leste Sahul) Limited ("TLS") from 33.33% to 100%. In accordance with IFRS3, this was 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 GBP302,000.

As a consequence of the increased holding in TLS in 2021, the company was consolidated for the first time in that year 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 and 31 December 2021: nil).

   9.             Earnings/(loss) per share 
 
                               6 months to   6 months      Year to 
                                                   to 
                                   30 June    30 June  31 December 
                                      2022       2021         2021 
                                 Unaudited  Unaudited      Audited 
                                     Pence      Pence        Pence 
 
Earnings/(loss) per ordinary 
 share 
Basic                              (0.003)    (0.002)      (0.012) 
Diluted                            (0.003)    (0.002)      (0.012) 
=============================  ===========  =========  =========== 
 

The earnings/(loss) per ordinary share is based on the Group's loss for the period of GBP419,000 (30 June 2021: GBP117,000; 31 December 2021: GBP1,127,000) and a weighted average number of shares in issue of 12,373,667,710 (30 June 2021: 7,302,657,312; 31 December 2021: 9,460,727,853.

   10.          Cash and cash equivalents 

As at 30 June 2022, bank deposits include amounts totalling US$1,000,000 (30 June and 31 December 2021: US$1,160,000) that are being held in respect of guarantees and are not available for use until the Group fulfils certain licence commitment in Timor-Leste and, previously, Peru. 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 amount due to SGPL in this event is included in payables as the Bank Loan Guarantee Account ("BGLA"). The receipt of any such funds shall satisfy the 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 that SGPL shall not have any claim against the Group in this respect.

   11.          Called up Share Capital 

On 9 May 2022, the Company issued 2,750,000,000 Ordinary Shares of 0.025p each at 0.06p per share, yielding net proceeds after costs of GBP1,508,000.

   12.          Reconciliation of operating loss to net cash outflow from operating activities 
 
                                     6 months to   6 months      Year to 
                                                         to 
                                         30 June    30 June  31 December 
                                            2022       2021         2021 
                                       Unaudited  Unaudited      Audited 
                                         GBP'000    GBP'000      GBP'000 
 
Profit/(loss) for the period               (419)      (117)      (1,127) 
Depreciation and amortisation                  8       (16)           28 
Share based payments                           -          -          286 
Finance income shown as an 
 investing activity                          (2)        (2)          (7) 
Gain on disposal of associated 
 undertaking                                   -      (359)        (302) 
Income from interest in associated 
 undertaking                                   -         29         (29) 
Other operating income non-cash 
 movement                                      -         89            - 
Foreign currency translation               (174)       (21)           19 
(Increase)/decrease in receivables          (65)         28          (1) 
Increase/(decrease) in payables              141         35          557 
                                           (511)      (334)        (576) 
===================================  ===========  =========  =========== 
 
   13.          Related party transactions 

During the period, a director, Andrew Yeo, subscribed for 16,150,000 new ordinary shares in the Company at a price of 0.06p per new ordinary share as part of a Placing and Subscription of new ordinary shares that was announced by the Company on 29 April 2022.

The directors' aggregate remuneration associated benefits and share-based payments in respect of qualifying services during the period amounted to GBP161,000 (30 June 2021: GBP155,000 31 December 2021: GBP658,000).

   14.          Financial information 

The unaudited interim financial information for period ended 30 June 2022 does 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 2021 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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