TIDMCOP
RNS Number : 0985K
Circle Oil PLC
20 June 2014
20 June 2014
Circle Oil Plc
(The "Company") and its Subsidiaries ("Circle" or the
"Group")
Preliminary results for the year ended 31 December 2013
Circle Oil Plc (AIM: COP), the international oil and gas
exploration, development and production company, is pleased to
announce its results for the year ended 31 December 2013.
Financial Highlights
2013 2012 %
US$000 US$000 Increase
Group revenue 93,343 73,270 27
Group operating profit 32,348 28,189 15
EBITDA 51,274 39,254 31
Cash generated from operations 53,365 39,275 36
Available cash 26,155 18,841 39
-- Record revenues and production in both Egypt and Morocco
-- Cash receipts from EGPC increased through 2013 compared to 2012
-- Signed Reserve Based Lending facility with IFC for up to US$100MM
Operational Highlights
-- Commenced sale of gas and associated liquids in Egypt
(through connection of a new 12" gas line), in addition to existing
oil revenues
-- 100% success with the production and injector wells drilled
in Egypt comprising six producers and one injector
-- Successful bid and award of the Grombalia permit in Tunisia December 2013
-- Signed farm-in to the Beni Khaled production licence in
Tunisia with an initial 30% stake in summer 2013
-- Completed processing and interpretation of onshore 2D data on Block 49 Oman
-- Acquired a 300 sq km 3D seismic survey over the northern part
of the Mahdia Block, offshore Tunisia
Current Trading
-- Commenced drilling operations on third drilling campaign in Morocco on 12 May 2014
-- Commenced drilling operations on the EMD-1 offshore well
Mahdia Permit, Tunisia on 8 June 2014
-- Completed the 2D marine seismic acquisition programme on Block 52 Oman in May 2014
-- Completed the initial development programme for the Egyptian Al Amir SE and Geyad fields
-- Gross production from Morocco at the end of May 2014 was
approximately 7 MMscf/d (5.25 MMscf/d net to Circle)
-- Gross production from Egypt at the end of May 2014 was 12,432
boepd (4,973 boepd net to Circle)
Stephen Jenkins, Chairman, said:
"Circle has a significant portfolio of assets with considerable
potential to create value for shareholders. As Chairman I am keen
to see the inherent value of the portfolio unlocked and to identify
additional assets to further grow shareholder value."
For further information contact:
Circle Oil Plc (+44 20 7638 9571)
Professor Chris Green, CEO
Brendan McMorrow, CFO
Investec (+44 20 7597 5970)
Chris Sim
George Price
James Rudd
Liberum Capital Limited (+44 20 3100 2222)
Clayton Bush
Tim Graham
Citigate Dewe Rogerson (+44 20 7638 9571)
Martin Jackson
Shabnam Bashir
Murray Consultants (+353 1 498 0300)
Joe Murray
Joe Heron
Chairman's Statement
Dear Shareholder,
I am delighted to have been appointed as the new Chairman of
Circle.
Progress has been made in all our operating countries throughout
2013 and we are looking forward to announcing progress of our busy
operational schedule in 2014. Circle has continued to produce gas
in Morocco for supply to local industry, as well as to produce oil,
gas and associated liquids in Egypt. Our production levels are at
an all-time high and as a result we are seeing a resulting increase
in profitability.
In Morocco, a new 8 inch pipeline connection was installed to
link the Ksiri/Gaddari area wells in Sebou to the main gas station,
enabling a higher flow rate from these wells. Sebou gas production
has averaged over 6 MMscf/d throughout 2013, and is now
approximately 7 MMscf/d with a total annual production last year of
2.27 bcf (gross).
Circle's 2014 drilling campaign in Morocco, on both the Sebou
and Lalla Mimouna Nord Blocks, is essential in order for Circle to
enlarge the reserve base which will be converted into further
production growth. The 12 well drilling campaign commenced in May
2014.
In Egypt, gross oil production through 2013 averaged 10,443 bopd
and with the 12" gas line completed, the gas and associated liquids
added a further 2,134 boepd, totaling 12,577 boepd (5,031 boepd to
Circle). With the completion of the initial development programme
in early 2014, capital expenditure should decrease
significantly.
Forthcoming exploration wells on our acreage in Tunisia and Oman
in 2014 will reveal the potential of these licences and we await
the results with cautious optimism.
Financial
2013 has been another very successful year financially for
Circle. Oil and gas revenue is up by 27% to US$93.3 million,
operating profits up by 15% to US$32.3 million while EBITDA at
US$51.3 million shows an increase of 31% on the previous year.
Cash generated by operations at US$53.4 million was up 36% on
the previous year as a result of increased cash receipts from EGPC,
which were up 20% compared to 2012 receipts, and the above noted
increased profitability.
In November 2013, we announced the receipt of board approval
from IFC (a member of the World Bank Group) to lead a four year
reserve based debt facility of up to US$100 million and the loan
agreement for this facility was signed in March of this year.
Full details of the above noted matters are presented in the
Financial Review Report section of this announcement.
Corporate
During the year Mr Thomas Anderson stepped down as Chairman
after 10 years of service to the Company from its formation to
profitable position today. We now hope to build on the strong
position he was instrumental in creating for the Company. We would
like to thank him for his contribution and wish him well for the
future.
We continue to look to strengthen our technical and corporate
resources and also welcome our new country manager in Morocco.
Outlook
In early 2014, Circle and its partners completed the initial
field development programme in Egypt to bring the Al Amir SE and
Geyad fields into maturity, with a consequent decrease in capital
expenditure. Before undertaking further drilling we will now
concentrate on understanding the reservoirs behaviour with a newly
developed dynamic reservoir model.
In Morocco, late spring 2014 has seen the start of a 12 well
drilling campaign on the Sebou and Lalla Mimouna blocks to prove up
additional gas reserves.
Further exploration activity should also see the drilling of up
to two wells in Tunisia, one on the offshore Mahdia permit and the
other on the onshore Ras Marmour Block in 2014.
In Oman, we have acquired additional 2D seismic over the inshore
portion of Sawqirah Bay in Block 52 and we are continuing our
efforts to obtain a partner to join in the drilling of a well on
this permit in 2015. On Block 49 we will be drilling an exploration
well to be completed in H2 of 2014. We are also awaiting the
outcome of our bid to gain a new exploration block in the 2013 Oman
Bid Round.
In the coming year Circle will use the proceeds from existing
cash flow and senior debt facilities to grow the value of the
Company. Circle's primary area of focus continues to be the MENA
region and it is our intention to add additional projects in this
area to increase the value of the Company. We are continuously
evaluating projects and opportunities, both organic and inorganic,
and continue to see great potential in the region in which we
operate.
As indicated in our recent operational updates from Morocco and
Tunisia, Circle is entering a period of considerable activity. This
activity will cover all of our licence areas and, the next 24
months is likely to be an exciting period for the Company.
Political changes have continued in the MENA region over the
past year; however Circle has remained, both operationally and
financially, on track. We must sincerely thank our teams in all
countries and our partners for their professionalism and valued
contributions to the continuing evolution of the Company.
I again acknowledge the contributions of Circle's staff,
associates and partners and would also like to thank all our
shareholders, for your support during the past year.
Stephen Jenkins
Chairman
Operations Review
2013 has been another productive and profitable year for the
Company and we look forward to reporting on a busy schedule in
2014.
The 2014 Competent Person's Report (CPR) has recently been
completed by Bayphase, an independent consultancy specialising in
petroleum and gas reservoir evaluation, resulting in 2P Gross
Estimated Ultimate Recovery for the Egyptian NW Gemsa and Moroccan
Sebou onshore concessions of 50.93 MMboe (22.13 MMboe net to
Circle). 2P Gross Remaining Reserves, which accounts for production
to the end of 2013, are estimated to be 33.98 MMboe (15.05 MMboe
net to Circle).
Morocco
In Morocco, gas production averaged 6.2 MMscf/d (1,069 bopd) in
2013, supplying three companies in the Kenitra industrial zone.
Preparation for a twelve well drilling campaign for the Sebou and
Lalla Mimouna permits continued during 2013 and we are delighted to
have commenced what is a very important drilling campaign for
Circle. The wells have been planned with the specific purpose of
confirming the viability of additional reserves and increasing our
gas production supplies.
Production start-up from Sebou was in October 2008 and total
gross production through end December 2013 was 5.56 bcf (0.96
MMboe).
The 2014 CPR estimates take into account the results of the
drilling and development/production activity up to ADD-1 well
drilled in 2011. The KSR-8 Main Hoot production is from only one
restricted area of the seismic anomaly. More wells will be drilled
to fully drain the gas accumulation indicated on the seismic
anomaly and add additional reserves.
For the 2014 CPR by Bayphase, in the Sebou concession, the 2P
value of Gross Estimated Ultimate Recovery of Gas Reserves is 30.15
bcf (5.2 MMboe) of which 22.33 bcf (3.84 MMboe) is net to Circle.
Following production of 5.56 bcf (0.96MMboe) through to end 2013,
the 2P Gross Remaining Reserves are estimated to be 24.59 bcf (4.23
MMboe) of which 17.27 bcf (2.98 MMboe) is net to Circle. In the
same report the 3P Gross Remaining Reserves are estimated at 37.37
bcf (6.44 MMboe) of which 27.38 bcf (4.72 MMboe) is net to Circle.
In 2014, the Gross Contingent Resources are estimated at 2C 2.56
bcf and 3C 7.69 bcf.
In the Sebou concession, Circle has a 75% share and ONHYM, the
Moroccan State oil company, has a 25% share. In the Oulad N'zala
concession, Circle has a 60% share and ONHYM has a 40% share. Both
concessions include the right of conversion to a production licence
of 25 years, plus extensions in the event of commercial
discoveries.
Egypt
The NW Gemsa concession contains the Al Amir SE (AASE) and Geyad
fields, where production averaged 10,443 bopd and 11.4 MMscf/d in
2013. Development drilling continued throughout the period with six
producers and one injector in AASE, plus one exploration well
Shehab-2X. The completion of a new gas export line in Egypt from
the Al Amir facilities to the SUCO terminal at Zeit Bay is
facilitating the export of current production. In addition, the
extraction and sale of condensate and LPG is providing further
income. On the NW Gemsa Permit in Egypt, appraisal, production and
water injection at the Al Amir SE (AASE) and Geyad fields has
continued.
Infill production wells AASE-14X, AASE-18, AASE-15, AASE-19 and
AASE-21 were successfully drilled and completed during this
reporting period, as well as the AASE-16 water injection well, to
complete the initial development plan for the field.
The Shehab-2 exploration well was drilled in 2013, to test an
updip closure from the Shehab-1 well. The target Kareem sands were
found to be water bearing. However, this well encountered a
potential gas-bearing interval in the Upper Rudeis limestones but a
hydraulic fracturation proved to be unsuccessful with no flow to
surface and the well has now been temporarily abandoned whilst
alternative stimulation options are considered.
Gas production through the 12 inch pipeline from the Al Amir
facilities to the SUCO terminal started up on 12 February 2013. The
gas is rich in extractable liquids that add to the income stream
for Circle. Gas processing is providing an additional 2 tonnes per
MMscf of LPG and 9 barrels of condensate per MMscf. Gross
production from start up in February 2009 through end December 2013
was 13.94 MMbo and 3.68 MMscf of gas.
The 2014 CPR reserve estimates take account of the results of
the drilling and development activity up to the end of 2013. For
the 2014 CPR by Bayphase, the NW Gemsa Concession 2P Gross
Estimated Ultimate Recovery is estimated to be 45.73 MMboe of oil
and raw gas (18.29 MMboe net to Circle).
Following production of 15.98 MMboe through to the end of 2013,
the 2P Gross Remaining Reserves are estimated to be 29.75 MMboe of
oil, gas and recoverable liquids of which 11.90 MMboe is net to
Circle. In the same report the Gross 3P Remaining Reserves were
estimated at 49.33 MMboe gross of which 19.73 MMboe is net to
Circle. The 2014 Gross Contingent Resources are estimated at 2C 1.1
MMboe and 3C 2.58 MMboe.
The minor change in Initial Oil Reserves on 2013 figures (Gross
0.68 MMboe increase) is due to additional infill well data and to
the re-mapping of the re-processed 3D seismic that resulted in a
small change of the field areal closure.
Tunisia
Circle has significantly increased its Tunisian asset base in
2013. As well as participation in the Ras Marmour block, Circle has
obtained a 100% share and operatorship of the Mahdia Block and has
farmed into the Beni Khaled Block to earn an initial 30% interest.
The Company has also been awarded the Grombalia Permit (to be
renamed the Takelsa Permit) as operator with 100% interest.
Activity this year has involved seismic survey planning,
acquisition and interpretation, plus well location and rig
planning.
Interpretation of the 3D seismic survey of 300 sq km (acquired
March to mid May 2013) and existing 2D seismic data over the Mahdia
permit (3,780 sq km) was conducted in late 2013. The El Mediouni
prospect was fully delineated as the drilling target and rig was
contracted to be able to drill the commitment well in Q2 2014. The
block is now owned 100% by Circle Oil Tunisia and is located in the
Gulf of Hammamet with numerous fields (Tazerka, Birsa, Oudna, Halk
El Menzel and Isis) and discoveries (the Mahdia-2 well tested 2,700
bopd from the Serj) in proximity. A one year extension to the
permit term to 19 July 2014 was ratified in 2013 by Tunisian
authorities and a further 6 month extension has been applied for to
complete our understanding of the well results.
The Ras Marmour permit in the south-east of Tunisia covers 1,564
sq km and is located in an area with several onshore oil fields.
Circle holds a 23% interest and the operator is Exxoil. A well is
planned to be drilled in 2014 on the Sedouikech prospect, similar
to the nearby Robbana field on the Isle of Djerba. The Ras Marmour
partners are still awaiting the final drilling permit and it is
hoped that site visits by the relevant authorities and continuing
follow up will assist in progressing matters; however at the time
of writing the situation remains unchanged.
The award of the Grombalia permit, covering an area of 2,792 sq
km, was notified by the Tunisian authorities in 2013. Circle will
be the 100% working interest holder and operator. This is regarded
as a key award towards increasing the value of the Company. The
licence area includes existing oil and gas field concessions and
other discoveries within or close to the block. Planning for the
first exploration phase of three years of work commitments is in
progress. These commitments include the acquisition of 80 sq km 3D
seismic, 250 sq km of 2D seismic, followed by the drilling of four
exploration wells.
Circle also conducted a farm-in to the Beni Khaled production
lease in 2013 that lies within the Takelsa permit, centred in the
Cap Bon peninsula. Under the terms of the agreement Circle will
acquire an initial 30% interest in the licence in return for
funding a 50 sq km 3D seismic programme and one well, which is
expected to cost US$5 million. The farm-in agreement further allows
Circle to increase its share in the licence to 50% in two equal
stages by funding one well in each stage. The farm-in is to be
funded from Circle's existing cash flow and facilities. Exxoil will
remain as operator. The Beni Khaled field licence presently
produces approximately 80-100 bopd of light oil (50 API) from one
well, EBK-1, and contains additional possible fault bounded
extensions to the Beni Khaled oilfield itself. To date the well has
produced some 1.2 MMbo and Circle estimates indicate the field now
has 0.25-0.5 MMbo remaining to be produced. The Beni Khaled
production licence has a remaining term of 19 years.
The Beni Khaled licence also contains well BDR-1, the
undeveloped Bir Drassen discovery, which under test, in the early
90's, flowed at a rate of 23.5 MMscf/d of gas and 28 bocd and also
indicates the potential for an unappraised oil rim. Initial
operator estimates of most likely recoverable resources from the
Bir Drassen discovery indicate 47-50 bcf of gas with the
possibility of an additional 6 MMbo in the oil rim. In addition,
two further undrilled leads have been identified within the
production licence to be confirmed by the 3D seismic survey.
Oman
Circle acquired an additional 2,306 line kilometres of closely
spaced 2D seismic survey in 2012 in the south-eastern part of the
Block 49 permit, north-east of, and adjacent to, the 3D survey
which had been completed in 2010. Interpretation of the processed
data was completed in 2013 and integrated with the 3D
interpretation in order to define a drillable prospect. This has
been completed and a drilling location has been selected within the
3D area to test a stratigraphic pinch-out defined by an amplitude
anomaly. Planning is underway in order to drill an exploration well
on this prospect in H2 2014.
An infill 2D seismic survey of 850 line kilometres was designed
for offshore Block 52, to firm up the nearshore Sawqirah Bay leads
into drillable prospects. This survey was completed in May 2014 and
the results will now be processed and interpreted. The farm-out
process for the block is continuing with the objective of obtaining
a partner to drill an exploration well.
Summary
In 2013, Circle has continued the successful appraisal and
development of the NW Gemsa fields in Egypt and the 8 inch gas
export line in Morocco continues to supply the gas output to
industries in Kenitra. In addition, the installation of a new 12
inch gas export in Egypt from the Al Amir facility to the SUCO
terminal was completed and gas and associated liquids production
was established on 12 February 2013. As demonstrated by our results
for 2013, this has aided profitability.
We have completed the 2014 CPR, which shows little change from
the 2013 values for Morocco as no new wells have been drilled. The
Egypt Estimated Ultimate Recoverable Resources show a slight
increase due to a small deepening of the AASE oil-water contact
from additional well data. In Morocco, more wells are being drilled
to grow our reserves base by adding additional gas discoveries
through our third drilling campaign in 2014 and beyond.
Our exploration efforts in Tunisia have continued throughout
2013 with the interpretation of the Mahdia 3D seismic and the well
proposal for the offshore El Mediouni prospect which has recently
spudded. This is a large prospect with game-changing potential from
multiple target levels. Planning of a new 3D acquisition over the
newly farmed in Beni Khaled block is advancing.
In Oman, we are planning to drill our commitment well on onshore
Block 49 in 2014 and await the outcome of the application for a new
exploration opportunity onshore Oman. On the offshore Block 52,
three sizeable leads were identified in the shallow water area on
the existing seismic, which have been the subject of an infill 2D
seismic programme completed in May 2014. A re-invigorated farm-out
process has been started on Block 52 with the objective of securing
a partner in 2014.
We thank Nick Clayton who assumed the role of interim Chairman
while the Board selected a new Chairman. At the beginning of the
New Year, January 2014, we were delighted when Steve Jenkins
accepted the position and joined us as Chairman. Steve's
credentials speak for themselves and we welcome him to Circle as we
enter this exciting period in the company's development.
I wish to thank all our staff in the UK, Ireland, Morocco,
Tunisia, Egypt and Oman for their enthusiasm and hard work. I also
wish to thank our partner oil companies and our State Country Oil
and Gas partners for their input and support throughout our
exploration and production operations. We have had another year in
which we have grown as a successful and profitable operator,
improving the value of the Company, despite some frustrating
delays. We now aim to seek out additional projects for the Company
base to further grow and guarantee your Company's future.
Professor C. Green
Chief Executive Officer
Financial Review
Highlights
-- Group revenue of US$93.3 million - up by 27% on 2012
-- Operating profit of US$32.3 million - up by 15% on 2012
-- EBITDA of US$51.3 million - up by 31% on 2012
-- Cash generated from operations of US$53.4 million - up by 36% on 2012
-- Available cash at year-end of US$26.2 million - up by 39% on 2012
-- Approval and signing of Senior Debt Facility of up to US$100 million with IFC
Results for the year
2013 has been another very successful year for Circle on the
financial front as a result of increased production and revenue
from oil, gas and associated liquids sales in Egypt and gas sales
in Morocco together with increased operating and net
profitability.
Oil and gas revenues increased to US$93.3 million in 2013 from
US$73.3 million in 2012, an increase of 27%. This positive result
was due primarily to an increase in the volume of both oil and gas
sold together with increased prices achieved for gas sales in
Morocco.
The average oil price achieved in Egypt for 2013 was US$104.40
per barrel of oil versus US$107.37 in 2012, while the average gas
price achieved in Morocco was US$10.34 per Mscf as against US$9.40
in 2012. Circle's share of volume of oil sold from the NW Gemsa
permit in Egypt was 1.52 MMbo (2012: 1.26 MMbo) while the volume of
gas sold from the Sebou permit in Morocco was 1.7 bcf, a 51%
increase over the 1.1 bcf sold in 2012.
Gross profit achieved for the year was US$36.9 million against
US$31.8 million for 2012, an increase of 16% year on year.
Total operating costs amounted to US$4.7 million and are up by
US$1.1 million on the previous year due mainly to costs associated
with the implementation of banking facilities.
Operating profit for the year amounted to US$32.3 million, an
increase of over 15% on the previous year.
After net finance costs for the year amounting to US$3.5 million
comprising mainly US$1.8 million relating to interest paid on the
convertible loan, US$0.4 million interest paid on the working
capital facility and US$1.3 million of non-cash costs the Group
recorded a net profit of US$28.8 million for 2013 (2012: US$25.3
million) a 14% increase on the previous year.
EBITDA for the Group for 2013 amounted to US$51.3 million (2012:
US$39.3 million) and increase of 31% for the year.
Cash flow
Net cash generated from operations for 2013 amounted to US$53.4
million (2012: US$39.3 million) an increase of US$14.1 million over
the previous year. This increase was due to significantly improved
cash receipts from EGPC during 2013 as against 2012, together with
an increased operating profit for 2013.
In relation to EGPC receivables, regular payments were received
throughout 2013 along with a part cargo and a one-off payment also
received which together resulted in an increase in cash receipts of
20% over the previous year. Additionally, total receivables from
EGPC at year end decreased by 11% compared to 2012, despite a 16%
increase in oil sales for 2013.
Net cash used in investing activities relating to oil and gas
assets amounted to US$45.9 million (2012: US$34.4 million) and
comprised mainly of US$17.8 million invested in exploration and
evaluation assets in Morocco, Tunisia and Oman while US$28.2
million was invested in production and development assets in Egypt
and Morocco.
Net cash generated from financing activities totalled US$10.3
million (2012: US$1.8 million used) and related to a net drawdown
of US$12.5 million under the working capital facility less interest
paid on this facility and the convertible loan.
Group cash balances at year-end increased by 86% to US$37.9
million (2012: US$20.4 million) of which US$11.7 million was in
restricted accounts leaving US$26.2 million available for corporate
use.
Statement of financial position
The Group's balance sheet has further strengthened in 2013, as a
result of the net profit recorded for the year.
Total assets for the Group at 31 December 2013 amounted to
US$307.9 million (2012: US$260.9 million) and comprised mainly oil
and gas assets of US$227.5 million, US$42.3 million of trade and
other receivables and cash at bank of US$37.9 million.
Net assets amounted to US$244.8 million at year end (2012:
US$216.0 million) an increase of US$28.8 million and representing
an increase of 13% year on year.
Working capital for the Group amounted to US$47.2 million (2012:
US$43.9 million) an increase of US$3.3 million over the previous
year's figure
On 20 December 2012 the Company announced the signing of a two
year working capital facility with Ahli United Bank Egypt (AUBE)
and throughout 2013 utilised this facility. On 12 November 2013 the
Company announced receipt of approval from IFC (a member of the
World Bank Group) to lead a four year reserve based lending
facility of up to US$100 million. The facility agreement was signed
in March 2014. IFC will hold US$50 million of the facility while
the remainder is subject to syndication. At the date of this report
US$20 million has been syndicated. US$25 million has been drawndown
out of which the AUBE facility of US$12.5 million was repaid in
full.
Net financial gearing at end December 2013 amounted to less than
1% (2012: 2%).
Brendan McMorrow
Chief Financial Officer
Circle Oil PLC
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2013
Notes 2013 2012
US$000 US$000
Revenue 93,343 73,270
Cost of sales (56,394) (41,482)
Gross profit 36,949 31,788
Administrative expenses (4,719) (3,610)
Foreign exchange gain 118 11
Operating profit 32,348 28,189
Finance revenue 720 2,312
Finance costs (4,211) (5,249)
Profit before taxation 28,857 25,252
Taxation (34) (9)
Profit for the year 28,823 25,243
Basic earnings per share 1 5.12c 4.48c
=========== =========
Diluted earnings per share 1 4.66c 4.17c
=========== =========
CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2013
2013 2012
US$000 US$000
Profit for the year 28,823 25,243
Total income and expense recognised in other - -
comprehensive income
Total comprehensive income for the year -
entirely attributable to equity holders 28,823 25,243
========= =========
Circle Oil PLC
CONSOLIDATED statement of financial position AT 31 DECEMBER
2013
Notes 2013 2012
US$000 US$000
Assets
Non-current assets
Exploration and evaluation assets 81,353 64,817
Production and development assets 146,188 135,530
Property, plant and equipment 133 108
Deferred transaction costs - 279
-------- --------
227,674 200,734
-------- --------
Current assets
Inventories 23 19
Trade and other receivables 42,260 39,769
Cash and cash equivalents 2 37,938 20,391
80,221 60,179
-------- --------
Total assets 307,895 260,913
======== ========
Equity and liabilities
Capital and reserves
Share capital 8,084 8,084
Share premium 167,083 167,083
Other reserves 11,260 12,917
Retained earnings 58,371 27,891
Total equity 244,798 215,975
-------- --------
Non-current liabilities
Trade and other payables 2,064 3,554
Convertible loan - debt portion 26,763 24,501
Derivative financial instruments 134 284
Decommissioning provision 1,159 291
Total non-current liabilities 30,120 28,630
-------- --------
Current liabilities
Trade and other payables 20,442 16,281
Bank borrowings 12,499 -
Current tax 36 27
Total current liabilities 32,977 16,308
-------- --------
Total liabilities 63,097 44,938
-------- --------
Total equity and liabilities 307,895 260,913
======== ========
Circle Oil PLC
CONSOLIDATED cash flow statement
FOR THE YEAR ENDED 31 DECEMBER 2013
Notes 2013 2012
US$000 US$000
Operating activities
Net cash generated from operations 53,365 39,275
Deferred income - 2,990
Taxes paid (27) (24)
Net cash inflow from operating activities 53,338 42,241
--------- ---------------------
Cash flows from investing activities
Payments to acquire exploration and
evaluation assets (17,780) (11,903)
Payments to acquire production and development
assets (28,152) (22,502)
Payments to acquire property, plant
and equipment (99) (57)
Interest received 18 53
Net cash used in investing activities (46,013) (34,409)
--------- ---------------------
Cash flows from financing activities
Working capital facility - amounts drawndown 23,161 -
Working capital facility - amounts repaid (10,662) -
Interest paid (2,203) (1,800)
Net cash from financing activities 10,296 (1,800)
--------- ---------------------
Increase in cash and cash equivalents 17,621 6,032
Cash and cash equivalents at beginning
of year 20,391 14,383
Effect of foreign exchange rate changes (74) (24)
Cash and cash equivalents at end of
year 2 37,938 20,391
========= =====================
Reconciliation to net cash generated by operations
2013 2012
US$000 US$000
Profit before taxation 28,857 25,252
Finance revenue (720) (2,312)
Finance costs 4,211 5,249
Increase/(decrease) in trade and other
payables 3,834 (1,026)
(Increase)/decrease in trade and other
receivables (1,819) 1,013
(Increase)/decrease in inventory (2) 17
Foreign exchange loss 74 24
Depreciation 18,930 11,058
Net cash generated by operations 53,365 39,275
========= ==============
Circle Oil PLC
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2013
Consolidated
Share-based Retained
Share payment Convertible Translation earnings/
Share premium reserve loan - reserve (deficit) Total
capital US$000 US$000 equity US$000 US$000 equity
US$000 portion US$000
US$000
At 1 January
2012 8,084 167,083 6,661 - (3) 2,648 184,473
Convertible
loan - - - 6,259 6,259
Net profit
for the year - - - - - 25,243 25,243
At 31 December
2012 8,084 167,083 6,661 6,259 (3) 27,891 215,975
========= ========= ============= ============= ============= =========== ==========
Reserve transfer - - (1,657) - - 1,657 -
Net profit
for the year - - - - - 28,823 28,823
At 31 December
2013 8,084 167,083 5,004 6,259 (3) 58,371 244,798
========= ========= ============= ============= ============= =========== ==========
NOTES TO THE FINANCIAL STATEMENTS
Basis of preparation
The financial statements have been prepared in accordance with
International Financial Reporting Standards (IFRSs) and
International Financial Reporting Interpretations Committee
(IFRIC). They have also been prepared in accordance with the
Companies Acts, 1963 to 2013 and are compliant with the rules of
the Alternative Investment Market (AIM) of the London Stock
Exchange.
The financial statements have been prepared on the historical
cost basis.
Basis of consolidation
The consolidated financial statements include the financial
statements of the Company and all of its subsidiaries made up to
the end of the financial year. Subsidiaries are consolidated in the
Group financial statements from the dates on which control over
financial and operating policies and decisions is obtained. All
intercompany transactions, balances, income and expenses have been
eliminated in full on consolidation.
1. Basic and diluted earnings per share
The calculation of the basic earnings/per share attributable to
the ordinary equity holders of the parent is based on the following
data:
2013 2012
US$000 US$000
Earnings
Profit for the year attributable to equity
holders of the parent 28,823 25,243
========== ==========
Number of shares '000 '000
Weighted average number of ordinary shares
for the purposes of basic earnings per
share 563,353 563,353
========== ==========
Diluted earnings per share are calculated using the weighted
average number of ordinary shares assuming the conversion of its
potential dilutive equity derivatives outstanding. All of the
Group's potential ordinary shares were dilutive for the year ended
31 December 2013. The Group had total potential ordinary shares
outstanding of 127,846,041 at 31 December 2012 (2012:
114,774,268).
2. Cash and cash equivalents
2013 2012
US000 US$000
Cash at bank 24,801 18,841
Cash held by JV Partners 1,354 -
Restricted cash relating to the working 10,983 -
capital facility
Restricted cash relating to the work
programmes in Morocco 800 1,550
Total cash and cash equivalents 37,938 20,391
========= ==============
In accordance with the guidelines of the AIM Market of the
London Stock Exchange, Professor Chris Green, Chief Executive
Officer of Circle Oil plc, and Dr Stuart Harker both
explorationists, with many years oil & gas industry experience,
are the qualified persons, as defined in the London Stock
Exchange's Guidance Note for Mining and Oil and Gas companies, who
has reviewed and approved the technical information contained in
this announcement.
Prof Chris Green with over 40 years' experience, holds a BSc
(Hons) from London University, MSc from University of Wales and PhD
from University of Dundee.
Stuart Harker, VP Geology, with over 40 years' experience, holds
a BSc (Hons) in Geology from the University of London (UK) and an
MSc and PhD from the University of Saskatchewan, Canada. He is also
a Fellow of the Geological Society of London and a Chartered
Geologist.
Glossary of terms
bcf Billion cubic feet
bocd Barrels of condensate per day
bopd Barrels of oil per day
boepd Barrels of oil equivalent per day
EBITDA Earnings Before Interest, Tax, Depreciation
and Amortisation
EGPC Egyptian General Petroleum Company
LPG Liquified Petroleum Gas
MENA Middle-East North Africa
MMbo Millions of barrels of oil
MMboe Millions of barrels of oil equivalent
Mscf Thousand standard cubic feet of gas
MMscf Million standard cubic feet of gas
MMscf/d Million standard cubic feet of gas
per day
ONHYM Office National des Hydrodarbures et
des Mines
Sq km Square kilometres
2D Two dimensional
3D Three dimensional
2C Best estimate of contingent resources
3C High estimate of contingent resources
2P Probability of success of 50%
3P Probability of success of 10%
Notes to Editors
Circle Oil Plc (AIM: COP) is an international oil & gas
exploration, development and production Company with an expanding
portfolio of assets in Morocco, Tunisia, Oman and Egypt with a
combination of low-risk near-term production and significant
exploration upside potential. The Company listed on AIM in October
2004.
Internationally, the Company has continued to expand its
portfolio over the past years and now has assets in the Rharb
Basin, Morocco; the Ras Marmour Permit in southern Tunisia; the
Mahdia Permit offshore Tunisia; the Grombalia Permit in northern
Tunisia and the Zeit Bay area of Egypt. Circle also has the largest
licence holding of any company in Oman. In addition to its
prospective Block 52 offshore, Circle also has an ongoing
exploration program in Block 49 onshore.
Circle's strategy is to locate and secure additional licenses in
prospective hydrocarbon provinces and through targeted investment
programmes, monetise the value in those assets for the benefit of
shareholders. This could be achieved through farm-outs to selected
partners who would then invest in and continue the development of
the asset into production, or Circle may itself opt to use its own
expertise to appraise reserves and bring assets into production,
generating sustained cash flow for further investment.
Further information on Circle is available on its website at
www.circleoil.net.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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