For our onshore Block 49, a 2D seismic survey of a planned 2,500
km commenced in mid July 2012. This survey is located in the
south-eastern part of the permit, north-east of the 2010 survey.
The 2D survey is located to cover an area lacking in seismic
control to determine any potential drilling targets.
The farm-out process for the deeper water prospects in offshore
Block 52 has been very active in the first half of 2012 but has so
far not resulted in finalising any agreement. Following encouraging
mapping of prospects within the shallow water inshore of Sawqirah
Bay it is likely that additional 2D seismic coverage will be
acquired to firm up targets for drilling in this shallow water
region of the permit. We believe these could be advantageously
drilled on a sole risk basis.
FINANCIAL REVIEW
Revenue from oil and gas sales in H1 2012 amounted to US$35.4
million which represented an increase of 23% over the same period
in 2011. This was due mainly to a significant increase in gas sold
during H1 2012 (up 111% on H1 2011) together with higher prices
achieved for both oil and gas sales.
Gross profit for the period amounted to US$16.4 million (H1
2011: US$9.9 million) while operating profit at US$14.7 million (H1
2011: US$8.3 million) was up by 78% on the same period in 2011.
EBITDA amounted to US$18.9 million for the period which represented
an increase of 60% over H1 2011.
After allowing for net financing costs of US$1.4 million the
Group recorded a net profit of US$13.3 million (H1 2011: US$8.7
million) an increase of 53%.
Net cash generated by operations before working capital changes
amounted to US$19.0 million (H1 2011: US$8.6 million negative).
Following working capital movements net cash generated in H1 2012
amounted to US$14.2 million (H1 2011: US$1.7 million).
At 30 June 2012 Group total assets amounted to US$245.5 million
(H1 2011: US$212.9 million) while net assets amounted to US$204.1
million (30 June 2011: US$167.6 million).
Cash balances at 30 June 2012 amounted to US$13.8 million and
this position has improved post period end as a result of
increasing payments received from EGPC resulting in a cash balance
at the end of August of US$15.5 million. Despite increased sales
levels in Egypt as a result of increases in both volume and oil
prices the EGPC receivables as at 31 August 2012 have reduced since
year-end.
Thomas Anderson
Chairman
3 September 2012
Glossary
BO Barrels of oil
bopd Barrels of oil per day
boepd Barrels of oil equivalent per day
Bscf Billions of standard cubic feet of gas
bwpd Barrels of water per day
CPR Competent Person Report
EBITDA Earnings before interest, tax, depreciation
and amortisation
EGPC Egyptian General Petroleum Company
km Kilometres
MD Measured depth
MMbo Millions of barrels of oil
Mmboe Millions of barrels of oil equivalent
MMm3 Million cubic metres
MMscf/d Millions of cubic feet of gas per day
sq km Square kilometres
TD Target depth
2D Two dimensional
3D Three dimensional
In accordance with the guidelines of the AIM Market of the
London Stock Exchange, Professor Chris Green, Chief Executive
Officer of Circle Oil Plc, an explorationist and geophysicist with
over thirty years oil & gas industry experience, and Dr Stuart
Harker, VP Geology, also with over 30 years experience, are the
qualified persons as defined in the London Stock Exchange's
Guidance Note for Mining and Oil and Gas companies, who have
reviewed and approved the technical information contained in this
announcement. In relation to Egypt Professor Green and Dr Harker
have relied on primary information supplied by the operator in
carrying out their review.
Circle Oil PLC
CONDENSED CONSOLIDATED INCOME STATEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 2012 - UNAUDITED
Notes 6 months 6 months Year ended
to to 31 December
30 June 2012 30 June 2011 2011
US$000 US$000 US$000
Sales revenue 3 35,359 28,689 57,950
Cost of sales (18,919) (18,751) (34,573)
Gross profit 16,440 9,938 23,377
Administrative expenses (1,658) (1,568) (3,148)
Provision for impairment of
exploration costs (109) (50) (163)
Foreign exchange gain/(loss) 68 (40) (97)
Operating profit- continuing
activities 14,741 8,280 19,969
Finance revenue 6 1,789 2,909 10,823
Finance costs 7 (3,184) (2,485) (5,145)
Profit before taxation 13,346 8,704 25,647
Taxation - - (41)
Profit for the financial period 13,346 8,704 25,606
Basic earnings per share 2 2.37c 1.54c 4.55c
============== ============== =============
Diluted earnings per share 2 2.22c 1.27c 3.02c
============== ============== =============
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 JUNE 2012 - UNAUDITED
6 months 6 months Year ended
to to 31 December
30 June 2012 30 June 2011 2011
US$000 US$000 US$000
Profit for the financial period 13,346 8,704 25,606
Total income and expense recognised - - -
in other comprehensive income
Total comprehensive income
for the period - entirely
attributable to equity holders 13,346 8,704 25,606
============== ============== =============
Circle Oil PLC
CONDENSED CONSOLIDATED statement of financial position
AT 30 JUNE 2012 - UNAUDITED
Notes 30 June 30 June 31 December
2012 2011 2011
US$000 US$000 US$000
Assets
Non-current assets
Exploration and evaluation
assets 4 55,851 44,984 53,140
Production and development
assets 5 134,618 109,295 126,232
Property, plant and equipment 129 99 124
-------- --------- ------------
190,598 154,378 179,496
-------- --------- ------------
Current assets
Inventories 17 105 36
Trade and other receivables 41,169 29,128 40,150
Cash and cash equivalents 13,761 29,303 14,383
-------- --------- ------------
54,947 58,536 54,569
-------- --------- ------------
Total assets 245,545 212,914 234,065
======== ========= ============
Equity and liabilities
Capital and reserves
Share capital 8,084 8,084 8,084
Share premium 167,083 167,083 167,083
Other reserves 12,917 6,658 6,658
Retained earnings/(deficit) 15,994 (14,254) 2,648
Total equity 204,078 167,571 184,473
-------- --------- ------------
Non-current liabilities
Trade and other payables 3,551 1,997 2,872
Convertible loan - debt
portion 23,918 25,993 -
Derivative financial instruments - 9,508 -
Decommissioning provision 291 196 270
Total non-current liabilities 27,760 37,694 3,142
-------- --------- ------------
Current liabilities
Trade and other payables 13,666 7,612 16,930
Current tax 41 37 41
Convertible loan - debt
portion - - 27,813
Derivative financial instruments - - 1,666
Total current liabilities 13,707 7,649 46,450
-------- --------- ------------
Total liabilities 41,467 45,343 49,592
-------- --------- ------------
Total equity and liabilities 245,545 212,914 234,065
======== ========= ============
Circle Oil (LSE:COP)
Historical Stock Chart
From Jun 2024 to Jul 2024
Circle Oil (LSE:COP)
Historical Stock Chart
From Jul 2023 to Jul 2024
