TIDMCASP
RNS Number : 6208A
Caspian Sunrise plc
26 September 2022
The following amendment has been made to the Interim results for
six months ended 30 June 2022 announcement released on 26 September
2022 at 07:00 under RNS No 5365A.
Under the subtitle "Acquisition Process" the current version
refers to "the consideration is expected to be payable solely from
production from BNG".
It has been replaced with "solely from production from Block
8".
All other details remain unchanged.
The full amended text is shown below:
Caspian Sunrise PLC ("Caspian Sunrise" or the "Company")
Interim results for the six months ended 30 June 2022, planned
acquisition & dividend update
Highlights
Non-financial
-- Operational - (new wells drilled at the end of the period) 2022: 2 (2021: 2)
-- Aggregate production in the period (bbls) up 81% - 2022: 414,048 (2021: 228,387)
-- Post period end production up 101% at 2,264 bopd (2021: 1,124 bopd)**
Financial
-- Revenue up 155% at $25.6 million (2021: $10.1 million) and more than 2021 as a whole
-- Gross Profit up 145% at $18.9 million (2021: $7.7 million)
-- Operating profit up 168% at $10.3 million (2021: $3.9 million)
-- Profit before tax up 193% at $10.0 million (2021: $3.4 million)
-- Profit after tax up 211% at $7.3 million (2021: $2.4 million)
-- Net current liabilities down 41% at $13.1 million (2021: $22.6 million)
-- Cash up $4.7 million at $5.0 million (2021: $0.3 million)
-- Total assets down 11% at $112.5 million (2021: $126.1 million)
** based on production at end August 2022 & and August 2021
The Directors are pleased to present the unaudited results for
the six months ended 30 June 2022, together with details of a
significant asset acquisition and an update on the timing of first
dividends.
Introduction
Despite losing between $30 and $35 per barrel on export sales
since March 2022 as a result of the war in the Ukraine these
results for the six months ended 30 June 2022 are comfortably the
best in the Group's history.
Results
Revenue
Revenue for the period at $25.6 million was approximately 155%
ahead of the corresponding period in 2021 (2021: $10.1) and greater
than for 2021 as a whole. The increase comprises an 81% increase in
the volume of oil produced and a 39% increase in the gross price at
which that oil was sold.
Production volumes
In the period under review 414,048 barrels of oil were produced
(2021: 228,387) at an average of 2,288 bopd (2021: 1,262). This
increased production included contributions from Wells 154 and 153,
which were not operational in the corresponding period in 2020.
Prices achieved
All the oil produced came from the shallow structures at BNG for
which we have long term full production licences allowing oil to be
sold by reference to international prices. However, under Kazakh
regulations a proportion of the oil produced under export licences
must be sold on the domestic market.
In the period under review approximately 42% of oil sold was at
domestic prices averaging approximately $25 per barrel.
Approximately 55% of the oil sold in the period was at
international prices, which for most of the period under review
were after significant discounts for "Urals Oil" of between $30 and
$35 per barrel. The average price achieved for these export sales
was approximately $86 per barrel compared to average Brent prices
in the period of $120 and beyond.
A development towards the end of the period under review was the
emergence of local mini refineries. The advantage of sales to mini
refineries are significantly lower taxes and treatment &
transportation costs as sales to mini refineries are taxed on a
domestic basis with buyers collecting the oil untreated direct from
the wellhead. However, in the period under review only
approximately 3% of oil sold was to these mini refineries.
The overall average gross price achieved for all the oil sold in
the first 6 months of 2022 was approximately $61 per barrel (2021:
$44 per barrel).
Cost of sales
In the period under review cost of sales increased by 186% to
$6.7 million (2021: $2.3 million).
Gross profit
Gross profit for the period was $18.9 million (2021: $7.7
million).
Selling expenses
In the period under review, selling expenses increased by
approximately 224% from $2.1 million to $6.9 million as the result
of increased crude oil volume sold and prices.
Other administrative expenses
These were stable at approximately $1.7 million as throughout
the period under review the board maintained the temporary cost
reduction first introduced in H1 2020.
Operating income
Operating income increased by approximately 168% to $10.3
million from $3.8 million.
Finance costs
Finance costs reduced by 37% from approximately $0.5 million to
approximately $0.3 million, principally following the conversion of
the $6.2 million Oraziman family debt.
Profit before tax
Profit before tax increased by 193% to $10.0 million ($3.4
million).
Tax charge
Tax in the period under review has been estimated at
approximately $2.7 million compared to $1.1 million in the
corresponding period.
Profit after tax
Profit after taxation was approximately 211% higher at $7.3
million (2021: $2.4 million).
Non-current assets
Non-current assets at approximately $101 million were
approximately 7% lower than in the corresponding period in 2021,
principally as the result of amortisation charges.
Net current liabilities
Net current liabilities at approximately $13.1 million were
approximately 42% lower (2021: $22.6 million).
Cash
Included in net current liabilities at 30 June 2022 was cash of
approximately $5.0 million (2021: $0.30 million.
Cashflows
Of the approximately $24.3 million received from customers
approximately $14.2 million was paid to suppliers and staff; $5.5
million spent on additions to unproven oil and gas assets; and
approximately $4.6 million added to retained cash balances.
Other developments in the period under review
Drilling - deep wells
Having extended the well from approximately 4,500 meters to
approximately 5,400 meters in 2021 in the period under review we
attempted to produce from three of the potential oil-bearing
intervals identified. However, after some initial success, we
concluded that A8 would not produce at commercial quantities and
moved the rig to other targets.
In June 2022 we spudded Deep Well 802 on the Yelemes Deep
structure. This is the sixth and final deep well required under the
BNG work programme.
Drilling - shallow wells
Workover and horizontal drilling at Well 142 on the MJF
structure was interrupted at a key stage by the civil unrest at the
start of January. A consequence of which was the loss of a drilling
camera and a delay in bring the well back into production.
Similarly at Well 141 we have been delayed for several weeks
with a pipe stuck in the well with the well not producing in the
period under review.
3A Best
During the period under review there has been no material
progress at 3A Best.
Caspian Explorer
We have submitted the final tender documents for a commercial
drilling charter in 2023 and expect to know whether we have been
successful before the end of the year. There was no Caspian
Explorer income in the period under review.
Loan conversion
On 9 March 2022 independent Caspian Sunrise shareholders voted
to convert approximately $6.2 million of debt due to the Oraziman
family into 139,729,446 new Ordinary shares at a price of 3.2p per
shares, increasing the Oraziman family's aggregate shareholding
from 45.0% to 48.4%.
Cancelation of share premium
On 22 April 2022 shareholders voted to cancel the share premium
account and the deferred shares in Caspian Sunrise Plc paving the
way for the future declaration of dividends. On 22 June 2022 the UK
High Court confirmed the cancellations, which took effect in the
period under review.
Covid
The impact of Covid in the period under review was minimal
despite several office closures.
Current trading
Oil prices
Given our production volumes we are obliged to use local
international oil traders for our international sales. This is set
to change from 1 January 2023 when we will be able to sell direct
to end users eliminating trader commissions.
Despite the European Union confirming oil produced in Kazakhstan
and transported through the Russian pipeline system is not subject
to EU sanctions and the action taken by the Kazakh authorities in
redesignating oil produced in Kazakhstan as Kazakhstan Export Blend
Crude Oil (KEBCO) the discount for oil emerging from Russian
pipeline has if anything widened from the $30 - 35 per barrel
previously reported to nearer $40 per barrel. At the same time
international prices have retreated below the $100 per barrel
level.
This, together with international sales being taxed at the pre
discount prices has reduced both the net amount receivable for
international sales.
At the same time the domestic price has increased to
approximately $32 per barrel and the price from mini refineries has
increased to approximately $38 per barrel with very few other
deductions.
We have therefore focused since the period under review on sales
to mini refineries for the majority of oil produced, still with a
significant minority of sold on the conventional domestic market.
We will look to resume export sales as and when export market
prices improve.
Production
Recent production levels are 2,264 bopd. This is lower than
previously achieved, in part as Wells 142 and 145 have been taken
out of production to deal with a rising water cuts, and in part as
Well 141 has not yet resumed production, where the delays relate to
a stuck pipe. Our focus has now moved back to Well 142, which we
believe this can be brought back into production sooner than Well
141.
Drilling
At Deep Well 802, has reached a depth of 3,800 meters with
casing set for the 3,000 meters. We have drilled through the salt
layer and already encountered significant oil shows and the usual
high pressures. We look forward to completing and testing the well,
which based on current progress we to be in Q4 2022.
Block 8
We are pleased to announce the intention to acquire Block 8, a
producing Contract Area located approximately 160 km from BNG, for
a maximum consideration of $60 million, payable in cash from the
future production from Block 8 at the rate of $5 per barrel of oil
produced.
Background
The Block 8 Contract Area is 2,823 sq km with three identified
structures and production from two existing wells. The Block 8
Contract Area is owned by a member of the Oraziman family, which
holds approximately 48.4% of the shares in Caspian Sunrise, and as
such it would constitute a related party transaction.
Caspian Sunrise has acquired an option to acquire the UAE
registered holding company of EPC Munai LLP, which is the Kazakh
registered holder of the licence for the Block 8 Contract Area,
conditional upon inter alia satisfactory due diligence, including a
review by an independent expert; the renewal of the existing
licence; Independent Director and Nominated Adviser approval; and
the consents of the regulatory authorities in Kazakhstan the UAE
and the UK.
The Company and the Oraziman family have entered into a loan
agreement under which the Company has agreed to advance cash and
equipment up to $5 million to EPC LLP to complete the existing work
programme commitments under the existing licence. The loan will
bear interest at the rate of 7% and in the event the acquisition of
Block 8 does not complete would be repayable by the Oraziman family
from future dividend payments.
The Block 8 licence was previously owned by LG International the
Korean conglomerate, who in 2006 started to acquire 3D seismic data
over approximately 456 sq km. In recent years two deep wells have
been drilled to depths of 4,203 meters and 3,449 maters
respectively, from which oil has flowed at rates of up to 800
bopd.
Current production from Block 8 is approximately 110 bopd, with
oil transported to the same treatment and pumping station used by
BNG.
The acquisition of Block 8 would bring a second flagship asset
into the Caspian Sunrise Group together with BNG with both having
the ability to transform the value of the Group in the event of
successful deep drilling.
Acquisition process
As the acquisition terms do not involve the issue of additional
shares and the consideration is expected to be payable solely from
production from Block 8, the option if exercised is not expected to
result in any material dilution for existing shareholders.
It is anticipated that the Independent Directors would be in a
position to exercise the option by the end of Q1 2023, and that, if
exercised, the acquisition would take a further 9-12 months to
complete, with much of that time spent on securing the required
regulatory approvals.
Other than the initial $5 million loan ("Loan Agreement") it is
not expected that the acquisition of Block 8 would require
additional funding from Caspian Sunrise and the therefore the
Group's existing other development plans should be unaffected.
Related Party transaction
The Loan Agreement is considered a Related Party Transaction
pursuant to the AIM Rules for Companies.
The Independent Directors consider, having consulted with WH
Ireland, that the terms of the proposed Loan Agreement are fair and
reasonable insofar as shareholders of Caspian Sunrise and the
Company are concerned. Should the option to acquire Block 8 be
exercised by the Independent Directors a further formal assessment
by the Independent Directors and WH Ireland would be required at
that time.
First dividends
Economic and financial uncertainties over the past few weeks led
us to review the start date for the commencement of dividends.
However, based on the current position it remains our intention as
set out in the 2021 audited accounts published in June, to commence
dividends payments in H2 2022.
Comment
Clive Carver, Chairman said
"These results demonstrate the strength of the Group's business.
Even after suffering discounts of between $30 and $35 per barrel on
export sales since March 2022 and continuing to be taxed as if we
were selling at full international prices, we have recorded the
largest trading profit in the Group's history.
The Group's balance sheet has been strengthened with a reduction
in net current liabilities of approximately $8.5 million. Cash at
approximately $5.0 million was the highest for several years.
All this is without any meaningful contribution from the Caspian
Explorer.
The proposed acquisition of Block 8 has been structured to
provide a second flagship asset with huge potential but in a way
that should not materially dilute existing shareholders.
We remain on track to pay the first dividend before the end of
the year.
When the Ukraine war and the associated sanctions end there
should be a very material improvement in profitability. Until then
the Group looks to broaden its asset base and continue to trade
profitably adding to shareholder value."
UNAUDITED CONDENSED CONSOLIDATED INCOME STATEMENT
Six months Six months
Ended 30 June ended 30
2022 Unaudited June 2021
US$000s US$000s
Revenue 25,591 10,055
Cost of sales (6,705) (2,341)
---------------------- --------------- ----------
Gross Profit 18,886 7,714
Selling expense (6,906) (2,129)
Other administrative
expenses (1,662) (1,733)
Operating Income 10,318 3,852
Finance cost 4 (330) (447)
Finance income 10 11
Income before taxation 9,998 3,416
Taxation (2,690) (1,065)
------------------------------ ------ ------- -------
Income after taxation 7,308 2,351
------------------------------ ------ ------- -------
Income attributable to
owners of the parent 7,218 2,389
Income (Loss) attributable
to non-controlling interest 90 (38)
------------------------------ ------ ------- -------
Income for the year 7,308 2,351
------------------------------ ------ ------- -------
Earnings per share 3
------------------------------ ------ ------- -------
Basic income per ordinary share (US cents) 0.33 0.11
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME
Six months Six months
Ended 30 June ended 30 June
2022 Unaudited 2021
US$000s US$000s
Income after taxation 7,218 2,351
------------------------------------- --------------- --------------
Other comprehensive loss:
------------------------------------- -------------------------------
Items to be reclassified
to profit or loss in subsequent
periods
Exchange differences on
translating
foreign operations (9,264) (2,103)
------------------------------------- --------------- --------------
Total comprehensive loss
for the period (1,956) 248
------------------------------------- --------------- --------------
Total comprehensive loss
attributable to: Owners
of the parent (2,046) 286
Non-controlling interest 90 (38)
------------------------------------- --------------- --------------
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN
EQUITY
For the six months ended 30 June 2022
Unaudited Share Share Deferred Cumulative Capital Merger Retained Total Non-controlling Total
capital premium shares translation contribution Reserve deficit interests equity
reserve reserve
----------------
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
---------------- -------------------- ----------- ---------- ------------- -------------- ------------------ --------------- --------- --------------- ---------
At 1 January
2022 31,118 164,817 64,702 (62,103) (2,362) 11,511 (156,239) 51,444 (5,801) 45,643
---------------- -------------------- ----------- ---------- ------------- -------------- ------------------ --------------- --------- --------------- ---------
Income after
taxation - - - - - - 7,218 7,218 90 7,308
Exchange
differences
on translating
foreign
operations - - - (9,264) - - - (9,264) - (9,264)
---------------- -------------------- ----------- ---------- ------------- -------------- ------------------ --------------- --------- --------------- ---------
Total
comprehensive
income for
the period - - - (9,264) - - 7,218 (2,046) 90 (1,956)
Shares issue
(debt to
equity)* 1,942 4,273 - - - - - 6,215 - 6,215
Share premium
and Deferred
Shares
reserves
cancellation** (169,090) (64,702) 233,792 - - -
---------------- -------------------- ----------- ---------- ------------- -------------- ------------------ --------------- --------- --------------- ---------
At 30 June
2022 33,060 - - (71,367) (2,362) 11,511 84,771 55,613 (5,711) 49,902
---------------- -------------------- ----------- ---------- ------------- -------------- ------------------ --------------- --------- --------------- ---------
For the six months ended 30 June 2021
Unaudited Share Share Deferred Cumulative Capital Retained Total Non-controlling Total
capital premium shares translation contribution deficit interests equity
reserve reserve
---------------
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
--------------- --------------- ----------- -------- ----------- ------------ ---------- ------- --------------- -------
At 1 January
2021 30,804 248,950 64,702 (55,240) (2,362) (223,868) 62,986 (5,809) 57,177
--------------- --------------- ----------- -------- ----------- ------------ ---------- ------- --------------- -------
Income after
taxation - - - - - 2,389 2,389 (38) 2,351
Exchange
differences
on
translating
foreign
operations - - - (2,103) - - (2,103) - (2,103)
--------------- --------------- ----------- -------- ----------- ------------ ---------- ------- --------------- -------
Total
comprehensive
income for
the period - - - (2,103) - 2,389 286 (38) 248
Shares issue 43 57 - - - - 100 - 100
--------------- --------------- ----------- -------- ----------- ------------ ---------- ------- --------------- -------
At 30 June
2021 30,847 249,007 64,702 (57,343) (2,362) (221,479) 63,372 (5,847) 57,525
--------------- --------------- ----------- -------- ----------- ------------ ---------- ------- --------------- -------
Reserve Description and purpose
Share capital The nominal value of shares issued
Deferred shares The nominal value of deferred shares issued
Cumulative translation
reserve
Losses arising on retranslating the net assets of
overseas operations into US Dollars
Merger reserves Gains accrued as the result of acquisitions made
in previous periods
Capital contribution Capital contribution arise when a shareholder has
Reserve made an irrevocable gift to the Company
Retained deficit Cumulative losses recognised in the profit or loss
Non-controlling interest The interest of non-controlling parties in the net
assets of the subsidiaries
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL
POSITION
As at As at As at
30 June 31 December 30 June
---------------------------
2022 2021 2021
Note US$000s US$000s US$000s
--------------------------- -------------------- --------- --------------------- -------------------
Assets Unaudited Audited Unaudited
Non-current assets
Unproven oil and 5 29,090 46,137 61,634
gas assets
Property, plant
and equipment 6 65,471 57,134 51,549
Other receivables 7 5,813 4,263 6,848
Restricted use cash 607 634 241
--------------------------- -------------------- --------- --------------------- ----------------
Total non-current
assets 100,981 108,168 120,272
--------------------------- -------------------- --------- --------------------- ----------------
Current assets
Inventories 677 664 1,219
Other receivables 5,832 4,950 4,376
Cash and cash equivalents 5,044 429 262
Total current assets 11,553 6,043 5,857
--------------------------- -------------------- --------- --------------------- ----------------
Total assets 112,534 114,211 126,129
--------------------------- -------------------- --------- --------------------- ----------------
Equity and liabilities
Equity
Share capital 8 33,060 31,118 30,847
Share premium - 164,817 249,007
Deferred shares 8 - 64,702 64,702
Other reserves (2,362) (2,362) (2,362)
Merger reserve 11,511 11,511 -
Retained earnings 84,771 (156,239) (221,479)
Cumulative translation
reserve (71,367) (62,103) (57,343)
--------------------------- -------------------- --------- --------------------- ----------------
Shareholders' equity 55,613 51,444 63,372
Non-controlling
interests (5,711) (5,801) (5,847)
--------------------------- -------------------- --------- --------------------- ----------------
Total equity 49,902 45,643 57,525
Current liabilities
Trade and other
payables 15,206 13,240 13,194
Short-term borrowings 9 988 6,425 5,871
Provision for BNG
license payment 3,178 3,178 3,178
Other current provisions 5,261 5,482 6,173
--------------------------- -------------------- --------- --------------------- -------------------
Total current liabilities 24,633 28,325 28,416
--------------------------- -------------------- --------- --------------------- -------------------
Non-current liabilities
Deferred tax liabilities 6,629 6,463 6,529
Provision for BNG
license payment 17,923 19,290 20,578
Other non-current
provisions 452 487 406
Other payables 12,995 14,003 12,675
--------------------------- -------------------- --------- --------------------- -------------------
Total non-current
liabilities 37,999 40,243 40,188
--------------------------- -------------------- --------- --------------------- -------------------
Total liabilities 62,632 68,568 68,604
Total equity and
liabilities 112,534 114,211 126,129
--------------------------- -------------------- --------- --------------------- -------------------
This financial information was approved and authorised for issue
by the Board of Directors on 23 September 2022 and was signed on
its behalf by:
Clive Carver
Chairman
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
Six months ended Six months
30 June 2022 ended
30 June 2021
------------------ --------------------------------- --------------------------------------------------------------------------------------
Unaudited Unaudited
US$000s US$000s
Cash flow
provided
by operating
activities
Cash received
from
customers 24,328 8,480
Payments made to
suppliers
and employees (14,222) (8,252)
------------------ --------------------------------- --------------------------------------------------------------------------------------
Net cash used by
operating
activities 10,106 228
Cash flow used
in
investing
activities
Additions to
unproven
oil and gas
assets (5,362) (566)
Purchase of PP&E (129) -
Cash flow used in
investing
activities (5,491) (566)
--------------------------------- --------------------------------- -----------------------------------------------------------------------
Cash flow used by financing
activities
Loans provided - 271
Net cash used by financing
activities - 271
--------------------------------- --------------------------------- -----------------------------------------------------------------------
Net increase /decrease
in cash and
cash equivalents 4,615 (67)
--------------------------------- --------------------------------- -----------------------------------------------------------------------
Cash and cash equivalents
at
the start of the period 429 329
--------------------------------- --------------------------------- -----------------------------------------------------------------------
Cash and cash equivalents
at the end of the period 5,044 262
--------------------------------- --------------------------------- -----------------------------------------------------------------------
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
INFORMATION
1. STATUTORY ACCOUNTS
The interim nancial results for the period ended 30 June 2022
are unaudited. The nancial information contained within this report
does not constitute statutory accounts as defined by Section 434(3)
of the Companies Act 2006.
2. BASIS OF PREPARATION
Caspian Sunrise plc is registered and domiciled in England and
Wales.
This interim nancial information of the Company and its
subsidiaries ("the Group") for the six months ended 30 June 2022
has been prepared on a basis consistent with the accounting
policies set out in the Group's consolidated annual nancial
statements for the year ended 31 December 2021. It has not been
audited or reviewed, does not include all of the information
required for full annual nancial statements, and should be read in
conjunction with the Group's consolidated annual nancial statements
for the year ended 31 December 2021. The 2021 annual report and
accounts, which received an unquali ed opinion from the auditors,
included a material uncertainty in respect of going concern but did
not contain a statement under section 498 (2) or 498 (3) of the
Companies Act 2006, have been led with the Registrar of Companies.
As permitted, the Group has chosen not to adopt IAS 34 'Interim
Financial Reporting'.
The financial information is presented in US Dollars and has
been prepared under the historical cost convention.
The accounting policies adopted in the preparation of the
interim condensed consolidated nancial statements are consistent
with those followed in the preparation of the Group's annual
nancial statements for the year ended 31 December 2021 except for
the e ect of new standards e ective from 1 January 2022 as
explained below. These are expected to be consistent with the
nancial statements of the Group as at 31 December 2021 that
are/will be prepared in accordance with IFRS and their
interpretations issued by the International Accounting Standards
Board ("IASB") as adopted by the European Union ("EU").
Several other amendments and interpretations apply for the rst
time in 2022, but do not have an impact on the interim consolidated
nancial statements of the Group as well.
Going Concern
The Group's Financial Statements for the year ended 31 December
2021, which were published on 27 June 2022, contained reference to
the existence of a material financial uncertainty, which only some
three months on continues to exist. This may cast significant doubt
about the Group's ability to continue as a going concern and
therefore it may be unable to realise its assets and discharge its
liabilities in the normal course of business.
The financial information in these interim results has been
prepared on a going concern basis using current income levels but a
reduced work programme. On this basis the Directors believe that
the Group will have sufficient resources for its operational needs
over the relevant period, being until September 2023. Accordingly,
the Directors continue to adopt the going concern basis.
However, the Group's liquidity is dependent on a number of key
factors:
-- The Group continues to forward sell it domestic production
and receive advances from oil traders with $US2.5 million advanced
at 30 June 2022, and the continued availability of such
arrangements is important to working capital. Whilst the Board
anticipates such facilities remaining available given its trader
relationships, should they be withdrawn or reduced more quickly
than expected then additional funding would be required.
-- Similarly, the Group sells to local mini refineries. Should
these arrangements be terminated or reduced then additional funding
would be required.
-- For the time being the Group is not selling to the
international markets as a consequence of the impact of sanctions
on Russia, including access to pipelines and the price at which oil
emerging from Russian pipelines is sold.
-- As ever forecasts remain sensitive to oil prices, which have
shown significant volatility in recent times. In the event of a
significant decline in world and domestic oil prices additional
funding would be required.
3. INCOME PER SHARE
Basic loss per share is calculated by dividing the loss
attributable to ordinary shareholders by the weighted average
number of ordinary shares outstanding during the year including
shares to be issued.
There is no di erence between the basic and diluted loss per
share as the Group made a loss for the current and prior year.
Dilutive potential ordinary shares include share options granted to
employees and directors where the exercise price (adjusted
according to IAS33) is less than the average market price of the
Company's ordinary shares during the period.
The calculation of loss
per share is based on:
------------------------------ ---------------------------------------------
Six months Six months
ended 30 ended 30
June 2022 June 2021
Unaudited Unaudited
------------------------------ ---------------------- ---------------------
The basic weighted average
number of ordinary
shares in issue during the
period 2,157,729,446 2,088,973,983
------------------------------ ---------------------- ---------------------
The income (loss) for the
year attributable to owners
of the parent (US$'000) 7,284 2 , 3 89
------------------------------ ---------------------- ---------------------
4. FINANCIAL EXPENSE
The Group incurred US$330,000 financial expenses during the 6
months to 30 June 2022, of which US$49,000 was the interest expense
on loans provided by Kuat Oraziman and the companies controlled by
him (2021: US$130,000).
5. UNPROVEN OIL AND GAS ASSETS
During the six months period ended June 30 2022 the Company's
oil and gas assets decreas ed on US$ 17 million (2021: increase on
US$ 221,000) mainly due to transfer of shallow South Yelemes into
production (note 6) and the depreciation expense.
6. PROPERTY, PLANT & EQUIPMENT
Proved oil Motor Other Total
and gas Vehicles
Group assets
US$'000 US$'000 US$'000 US$'000
Cost at 1 January 202
1 43,722 56 11,177 54,955
Additions 1,757 2,198 4,938 8,894
Disposals - - (11) (11)
Acquisitions - - 53 53
Foreign exchange difference (550) (128) (212) (890)
------------------------------ ----------- ---------- -------- --------
Cost at 3 1 December
2021 44,929 2,126 15,946 63,001
------------------------------ ----------- ---------- -------- --------
Additions* 14,564 129 - 14,693
Foreign exchange difference (3,543) (112) (955) (4,610)
------------------------------ ----------- ---------- -------- --------
Cost at 30 June 2022 55,400 2,015 14,779 72,194
------------------------------ ----------- ---------- -------- --------
Depreciation at 1 January
2021 1,390 47 673 2,110
1,7 3
Charge for the year 1,339 482 6 3,558
Disposals - - (7) (7)
Foreign exchange difference 42 40 124 206
------------------------------ ----------- ---------- -------- --------
Depreciation at 31
December 2021 2,771 570 2,526 5,867
------------------------------ ----------- ---------- -------- --------
Charge for the year 399 179 459 1,037
Foreign exchange difference (152) (9) (20) (181)
------------------------------ ----------- ---------- -------- --------
Depreciation at 30
June 2022 3,018 740 2,965 6,723
------------------------------ ----------- ---------- -------- --------
Net book value at:
----------------------------- ----------- ---------- -------- --------
01 January 2021 42,332 9 10,504 52,845
31 December 2021 42,158 1,556 13,419 57,134
30 June 2022 52,382 1,276 11,813 65,471
------------------------------ ----------- ---------- -------- --------
* During six months of 2022 BNG has moved its unproven oil and
gas asset on total US $14,392 into proved assets.
7. OTHER NON-CURRENT RECEIVABLES
During the six months period ended June 30, 2022, the Company
has provided advances related to its drilling operations in the
amount of US$1.52 million (2021: US$1.48 million). Total
prepayments made for drilling services as at 30.06.2022 was US$
1,524,000 (2021: US$ 1,482,000). VAT recoverable at the Group level
as at 30.06.2022: US$4,289,000 (2020: US$4,031,000).
8. CALLED UP SHARE CAPITAL
Number of $'000 Number $'000
ordinary of deferred
shares shares
--------------- ---------------- --------- ------------- --------
Balance at
31 December
2021 2,110,772,114 31,118 373,317,105 64,702
--------------- ---------------- --------- ------------- --------
Balance at
30 June 2022 2,250,501,560 33,060 -* -*
--------------- ---------------- --------- ------------- --------
*In June 2022 the Company received approval from the UK High
Court for the cancellation of its Deferred shares and Share premium
accounts
9. BORROWINGS
------------------------------------------------------------------------------------------------------------------
Six Year ended
months 31
ended December 2021
30 June US$'000
2022
US$'000
Unaudited Audited
--------------------------- -------------------------------- ----------------------------------------
Amounts payable within
one year
Akku Investments 99 4,433
Mr Oraziman 355 1,424
Other borrowings 534 568
--------------------------- -------------------------------- ----------------------------------------
988 6,425
--------------------------- -------------------------------- ----------------------------------------
In March 2022 Caspian Sunrise plc converted its debts to Mr. Oraziman
and the related companies by means of issuing in exchange of total
139,729,446 common shares of the Company on total US$ 6.2 million,
of which US$5.6 million were the converted loans. During the period
to 30 June 2022 Vertom International NV provided US$ 350,000 of
new loans to the companies of the group.
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END
IR SEESUMEESEFU
(END) Dow Jones Newswires
September 26, 2022 05:14 ET (09:14 GMT)
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