TIDMCZN
RNS Number : 2461C
Curzon Energy PLC
28 September 2018
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
Unaudited Half-Year Results for the Six Months Ended 30 June
2018
Curzon Energy Plc
("Curzon" or the "Company")
28 September 2018
Curzon Energy Plc, which holds interests in coalbed methane
("CBM") leases in Coos Bay, Oregon, USA, announces its unaudited
interim results for the six months to 30 June 2018.
CHAIRMAN'S STATEMENT
I am pleased to present the interim report for the Company
covering its results for the six months ended 30 June 2018.
Financial review
The Company incurred a loss of US$ 530,990 in the period. A
majority of this loss comprised expenditures in relation to the
ongoing evaluation of the commercial potential of its Coos Bay CBM
project. Net cash of US$ 451,188 at 30 June 2018 (US$ 1,595,035 as
at 31 December 2017). Basic loss per share of US$ 0.007 (period
ended 30 June 2017: US$ 0.014).
Given the nature of the business and its development strategy,
it is unlikely that the Board will recommend a dividend in the
foreseeable future.
Outlook
The Company's near-term goals are to continue evaluating the
commerciality of its Coos Bay CBM project and to evaluate
additional opportunities in the U.S. gas sector that have
attractive revenue potential as appropriate.
On behalf of the Board, I would like to take this opportunity to
thank our staff and advisers for their hard work as well as our
shareholders for their support given to the Company.
We look forward to updating shareholders on our operational
progress in due course.
John McGoldrick Chairman and Non-Executive Director
CHIEF EXECUTIVE OFFICER'S REVIEW
During the period, the Company continued to develop and evaluate
its Coos Bay CBM assets.
As part of the ongoing Coos Bay evaluation process, the Company
re-perforated select existing completions and made new perforations
in the Coos Bay wells in order to open all identified gas bearing
coal seams and accelerate gas production rates to commercial
quantities.
While certain wells are showing gradual increased gas production
rates, the wells have not yet achieved commercial gas production
rates that would enable us to connect and sell gas into the nearby
regional pipeline.
Of the five wells, the 1-21 well has shown the most promise to
date, and is the well with the most zones perforated, including
several targeted deeper zones. However, the current location of the
pump in this well is deemed to be too shallow, and is preventing
sufficient removal of the water required to open and exploit all
perforated zones. We are currently analysing various options that
would install additional pumping capacity at the proper depth to
allow this well to demonstrate its full potential.
All five wells remain on long term test and ongoing monitoring
of the field continues. The Directors are of the opinion that
results to date do not yet provide enough data to assess the
overall commerciality of the field and that more work, including
drilling additional wells using modern drilling and completion
techniques, may be required in order to complete the initial
appraisal program.
The Company is currently evaluating alternative strategies for
accelerating development of the Coos Bay CBM assets to include
ongoing discussions with potential farm in partners in the region
that would allow for joint development of these assets.
Stephen Schoepfer Chief Executive Officer
CORPORATE MATTERS POST 30 JUNE 2018
On 31 July 2018, 4,425,616 New Ordinary Shares were issued at a
price of GBP0.08 per share to Mr Barry Liben in satisfaction of the
aggregate debt of GBP354,049.24 owed to him pursuant to a
promissory note entered into with the Company on 29 December 2016,
that is referred to in note 5 as Cuart Investments and also set out
to in note 7.
STATEMENT OF DIRECTORS' RESPONSIBILITIES IN RESPECT OF THE
CONDENSED INTERIM REPORT AND CONDENSED FINANCIAL STATEMENTS
The Directors confirm that the condensed interim financial
information has been prepared in accordance with International
Accounting Standard 34, 'Interim Financial Reporting', as adopted
by the European Union and that the Interim Report includes a fair
review of the information required by DTR 4.2.7R and DTR 4.2.8R,
namely:
-- an indication of important events that have occurred during
the first six months and their impact on the condensed interim
financial information, and a description of the principal risks and
uncertainties for the remaining six months of the financial year;
and
-- material related-party transactions in the first six months and any material changes in the related-party transactions described in the last Annual Report.
By order of the Board
John McGoldrick Chairman and Non-Executive Director
Consolidated statement of comprehensive income
for the six months ended 30 June 2018
Six months Six months Year ended
ended ended 31 December
30 June 30 June 2017
2018 2017 Unaudited Audited
Note Unaudited
US$ US$ US$
-------------------------------------- ------ ----------- ------------------ ---------------
Well field expenses - (66,216) (293,867)
Administrative expenses (511,951) (495,470) (1,662,619)
-------------------------------------- ------ ----------- ------------------ ---------------
Loss from operations (511,951) (561,686) (1,956,486)
Finance expense, net (31,893) (45,818) (116,123)
Foreign exchange differences 12,854 (48,406) 13,835
Other income - 3,240 225,393
-------------------------------------- ------ ----------- ------------------ ---------------
Loss before taxation (530,990) (652,670) (1,833,381)
Income tax expense - - -
-------------------------------------- ------ ----------- ------------------ ---------------
Loss for the year attributable
to
equity holders of the parent
company (530,990) (652,670) (1,833,381)
-------------------------------------- ------ ----------- ------------------ ---------------
Other comprehensive income/(expense)
Gain/(loss) on translation
of parent net assets and
results from functional currency
into presentation currency (4,716) 28,358 44,624
-------------------------------------- ------ ----------- ------------------ ---------------
Total comprehensive loss
for the year (535,706) (624,312) (1,788,757)
-------------------------------------- ------ ----------- ------------------ ---------------
(Loss) per share
Basic and diluted, US$ 3 (0.007) (0.014) (0.034)
-------------------------------------- ------ --------------- ------------------- -------------
Consolidated statements of financial position
At 30 June At 30 June
2018 2017 At 31 December
2017
Note Unaudited Unaudited Audited
US$ US$ US$
----------------------------------- ----- ------------- ------------- ---------------
Assets
Non-current assets
Intangible assets 6 3,302,444 2,559,000 2,559,000
Restricted cash 125,000 125,315 125,440
Total non-current assets 3,427,444 2,684,315 2,684,440
----------------------------------- ----- ------------- ------------- ---------------
Current assets
Prepayments and other receivables 175,638 - 148,616
Cash and cash equivalents 451,188 81,963 1,595,035
----------------------------------- ----- ------------- ------------- ---------------
Total current assets 626,826 81,963 1,743,651
----------------------------------- ----- ------------- ------------- ---------------
Total assets 4,054,270 2,766,278 4,428,091
----------------------------------- ----- ------------- ------------- ---------------
Liabilities
Current liabilities
Trade and other payables 514,496 714,105 463,413
Borrowings 5 586,998 567,119 578,599
----------------------------------- ----- ------------- ------------- ---------------
Total current liabilities 1,101,494 1,281,224 1,042,012
----------------------------------- ----- ------------- ------------- ---------------
Total liabilities 1,101,494 1,281,224 1,042,012
----------------------------------- ----- ------------- ------------- ---------------
Capital and reserves attributable
to shareholders
Share capital 4 964,575 639,925 964,575
Share premium 4 3,199,004 763,854 3,199,004
Share-based payments reserve 217,062 - 114,659
Warrants reserve 191,011 - 191,011
Merger reserve 31,212,041 31,212,041 31,212,041
Foreign currency translation
reserve 1,755 (9,795) 6,471
Accumulated losses (32,832,672) (31,120,971) (32,301,682)
----------------------------------- ----- ------------- ------------- ---------------
Total capital and reserves 2,952,776 1,485,054 3,386,079
----------------------------------- ----- ------------- ------------- ---------------
Total equity and liabilities 4,054,270 2,766,278 4,428,091
----------------------------------- ----- ------------- ------------- ---------------
Consolidated statements of changes in equity
Foreign
Share-based currency
Share Share Consolidation payment Warrant translation Accumulated
capital premium reserve reserve reserve reserve losses Total
US$ US$ US$ US$ US$ US$ US$ US$
--------------- -------- ---------- --------------- ------------- --------- ------------ ------------- ------------
At 1 January
2017
(audited) 639,925 763,854 31,212,041 - - (38,153) (30,468,301) 2,109,366
Loss for the
period - - - - - - (652,670) (652,670)
Other
comprehensive
income for
the
period - - - - - 28,358 - 28,358
--------------- -------- ---------- --------------- ------------- --------- ------------ ------------- ------------
Total
comprehensive
loss for the
period - - - - - 28,358 (652,670) (624,312)
Issue of
shares - - - - - - - -
Share issue
costs - - - - - - - -
Issue of share
warrants - - - - - - - -
Issue of share
options - - - - - - - -
At 30 June
2017
(unaudited) 639,925 763,854 31,212,041 - - (9,795) (31,120,971) 1,485,054
--------------- -------- ---------- --------------- ------------- --------- ------------ ------------- ------------
At 1 January
2017
(audited) 639,925 763,854 31,212,041 - - (38,153) (30,468,301) 2,109,366
Loss for the
year - - - - - - (1,833,381) (1,833,381)
Other
comprehensive
income for
the
year - - - - - 44,624 - 44,624
--------------- -------- ---------- --------------- ------------- --------- ------------ ------------- ------------
Total
comprehensive
loss for the
year - - - - - 44,624 (1,833,381) (1,788,757)
Issue of
shares 324,650 2,921,855 - - - - 3,246,505
Share issue
costs - (486,705) - - - (486,705)
Issue of share
warrants - - - - 191,011 - 191,011
Issue of share
options - - - 114,659 - - - 114,659
--------------- -------- ---------- --------------- ------------- --------- ------------ ------------- ------------
At 31 December
2017
(audited) 964,575 3,199,004 31,212,041 114,659 191,011 6,471 (32,301,682) 3,386,079
--------------- -------- ---------- --------------- ------------- --------- ------------ ------------- ------------
Loss for the
period - - - - - - (530,990) (530,990)
Other
comprehensive
income for
the
period - - - - - (4,716) - (4,716)
--------------- -------- ---------- --------------- ------------- --------- ------------ ------------- ------------
Total
comprehensive
loss for the
period - - - - - (4,716) (530,990) (535,706)
Issue of share
options - - - 102,403 - - - 102,403
At 30 June
2018
(unaudited) 964,575 3,199,004 31,212,041 217,062 191,011 1,755 (32,832,672) 2,952,776
--------------- -------- ---------- --------------- ------------- --------- ------------ ------------- ------------
Consolidated statement of cash flows
Notes Six months Six months Year ended
ended ended 31 December
30 June 2018 30 June 2017 2017
Unaudited Unaudited Audited
US$ US$ US$
------------------------------------- ------- ---------------- -------------- -------------
Cash flow from operating
activities
Loss before taxation (530,990) (652,670) (1,833,381)
Adjustments for:
Finance cost, net 31,893 45,818 86,473
Income from payable write
off - - (225,393)
Share-based payments charge 102,403 - 111,367
Foreign exchange movements (12,854) 48,406 50,184
Operating cashflows before
working capital changes (409,548) (558,446) (1,810,750)
Changes in working capital:
(Increase)/decrease in receivable (27,022) - (118,542)
Decrease/(Increase) in payables 35,814 120,053 66,576
---------------------------------------------- ---------------- -------------- -------------
Net cash used in operating
activities (400,756) (438,393) (1,862,716)
---------------------------------------------- ---------------- -------------- -------------
Investing activities
Well development expenditure
incurred during the period (743,444) -
and capitalised as intangible
asset -
Net cash flow from investing (743,444) -
activities -
Financing activities
Issue of ordinary shares - - 3,087,266
Costs of share issue - - (295,694)
Proceeds from new borrowings - 150,000 250,000
Net cash flow from financing
activities - 150,000 3,041,572
---------------------------------------------- ---------------- -------------- -------------
Net Increase in cash and
cash equivalents in the period (1,144,200) (288,393) 1,178,856
Cash and cash equivalents
at the beginning of the period 1,595,035 370,722 370,722
Restricted cash held on deposits 125,440 125,315 125,315
---------------------------------------------- ---------------- -------------- -------------
Total cash and cash equivalents
at the beginning of the period,
including restricted cash 1,720,475 496,037 496,037
---------------------------------------------- ---------------- -------------- -------------
Effect of the translation
of cash balances into presentation
currency 353 (366) 45,457
(Decrease)/increase in restricted
cash (440) - 125
Cash and cash equivalents
at the end of the period 451,188 81,963 1,595,035
Restricted cash held on deposits 125,000 125,315 125,440
---------------------------------------------- ---------------- -------------- -------------
Total cash and cash equivalents
at the end of the period,
including restricted cash 576,188 207,278 1,720,475
---------------------------------------------- ---------------- -------------- -------------
NOTES TO THE CONSOLIDATED FINANCIAL INFORMATION
1. General information and basis of preparation
The Company was incorporated and registered in England and Wales
on 29 January 2016 as a public limited company under the name
Westport Energy Plc. On 2 December 2016 the Company changed its
name to Curzon Energy Plc. The Company's registered number is
09976843 and its registered office is at Kemp House, 152 City Road,
London EC1V 2NX. On 4 October 2017, the Company's shares were
admitted to the Official List (by way of Standard Listing) and to
trading on the London Stock Exchange's Main Market.
With effect from admission, the Company has been subject to the
Listing Rules and the Disclosure Guidance and Transparency Rules
(and the resulting jurisdiction of the UK Listing Authority) to the
extent such rules apply to companies with a Standard Listing
pursuant to Chapter 14 of the Listing Rules.
The principal activity of the Company is that of a holding
company for its subsidiaries, as well as performing all
administrative, corporate finance, strategic and governance
functions of the Group. The Company's investments comprise of
subsidiaries operating in the coalbed methane ('CBM') gas
sector.
The entire share capital of Coos Bay Energy, LLC (Coos Bay) was
conditional on Admission, acquired by the Company pursuant to a
membership interest purchase agreement dated 20 May 2017 between
the Company, Coos Bay and the members of Coos Bay.
At the time of its acquisition by the Company, Coos Bay
consisted of Coos Bay Energy, LLC and its wholly owned US Group as
specified below. The Company, Coos Bay Energy, LLC and the US Group
as specified below together are referred to the Curzon Group.
As a result of Coos Bay Energy, LLC acquisition, the Group owns
certain CBM and related assets, which it acquired on 4 November
2016 by acquiring the US Group from Westport Energy Holdings Inc.,
a publicly held company trading on the OTC Pink Market. Coos Bay
acquired the US Group pursuant to a foreclosure agreement dated 4
November 2016 between Coos Bay, Westport Energy Holdings, Inc., the
US Group and the three creditors of Westport Energy Holdings Inc.
(which at the time of the foreclosure was the parent company of the
US Group). Pursuant to the terms of the foreclosure agreement, all
outstanding debt and security instruments of Westport Energy
Holdings, Inc., which was secured by all of the assets of the US
Group, was terminated, along with the creditors' related security
interests in the assets of the US Group. In addition, outstanding
royalty agreements with Queensbury, Inc. and YA Global Investments
Limited were also terminated. YA Global Investments L.P. was the
major creditor and held a 75% interest in Coos Bay prior to the
Acquisition. YA Global Investments L.P. now holds a majority
interest in the Coos Bay and 44.72% interest in the Company.
More information on the individual group companies' activities
and their addresses is presented in the Company's audited
consolidated financial information and notes thereto for the year
ended 31 December 2017.
2. Accounting policies
The Group Financial statements are presented in US Dollars.
Basis of preparation
The interim unaudited consolidated financial information have
been prepared in accordance with International Financial Reporting
Standards and IFRIC interpretations as endorsed by the EU ("IFRS")
and the requirements of the Companies Act applicable to companies
reporting under IFRS.
The preparation of the Group financial statements in conformity
with IFRS requires the use of certain critical accounting
estimates. It also requires the Directors to exercise their
judgment in the process of applying the Group's accounting
policies. The Group's accounting policies as well as the areas
involving a higher degree of judgment and complexity, or areas
where assumptions and estimates are significant to the Group
financial statements are disclosed in the audited annual report for
the year ended 31 December 2017 and are available on the Group's
website.
In the opinion of the management, the interim unaudited
consolidated financial information includes all adjustments
considered necessary for fair and consistent presentation of this
financial information. The interim unaudited consolidated financial
information should be read in conjunction with the Company's
audited financial statements and notes for the year ended 31
December 2017.
IFRS 9 Financial Instruments is being adopted for the first time
in the six months ended 30 June 2018. The Company applied IFRS 9
retrospectively in accordance with IAS 8 Accounting Policies,
Changes in Accounting Estimates and Errors. The application of IFRS
9 has not resulted in any reclassification or restatement of net
assets at 1 January 2017 or 31 December 2017.
IFRS 15 Revenue from contracts with customers was also applied
in this financial information for the first time. Due to the Group
being at pre-revenue stage, the adoption of this standard did not
result in any restatement or re-classifications.
Going concern
The Group financial statements have been prepared on a going
concern basis as the Directors have assessed the Group's ability to
continue in operational existence for the foreseeable future. The
operations are currently being financed by third party loans and
funds raised from an equity placing completed on 4 October
2017.
The Group is reliant on the continuing support from its
shareholders and the expected support of future shareholders.
The Group financial statements do not include the adjustments
that would result if the Group were not to continue as a going
concern.
Basis of consolidation
The Company was incorporated on the 29th of January 2016. It
acquired Coos Bay Energy, LLC on the 4th of October 2017. At the
time of its acquisition by the Company, Coos Bay Energy, LLC
consisted of Coos Bay Energy, LLC and its wholly owned US Group. It
is the Directors' opinion that the Company at the date of
acquisition of Coos Bay Energy, LLC did not meet the definition of
a business as defined by IFRS 3 and therefore the acquisition is
outside on the IFRS 3 scope.
Coos Bay Energy, LLC was incorporated on 2 September 2016. It
acquired Westport Energy Acquisition, Inc. on 4 November 2016.
Westport Energy Acquisition, Inc. was a sole owner of the US Group.
More details on the US Group composition are given in the note 1.
It is the Directors' opinion that Coos Bay Energy, LLC at the date
of acquisition of Westport Energy Acquisition, Inc. did not meet
the definition of a business as defined by IFRS 3 and therefore the
acquisition is outside on the IFRS 3 scope.
2. Accounting policies (continued)
There is no other specific guidance on this topic elsewhere in
IFRS. Management therefore needs to use judgement to develop an
accounting policy that provides relevant and reliable information
and apply it consistently to all similar transactions. The
management has decided that a "merger accounting" method would be
the most relevant method to be used for the two acquisitions
described above. It involves accounting for the post-acquisition
entities in the Group as if the companies have always been
together.
The Group consistently applies it to all similar transactions in
the following way:
- the acquired assets and liabilities are recorded at their
existing carrying values rather than at fair value;
- no goodwill is recorded;
- all intra-group transactions, balances and unrealised gains
and losses on transactions are eliminated from the beginning of the
first comparative period or inception, whichever is earlier;
- comparative periods are restated from the beginning of the
earliest comparative period presented based on the assumption that
the companies have always been together;
- all the pre-acquisition accumulated losses of the legal
acquire are assumed by the Group as if the companies have always
been together;
- all the share capital and membership capital contributions of
all the companies included into the legal acquiree sub-group less
the Company's cost of investment into these companies are included
into the merger reserve; and
- the Company's called up share capital is restated at the
preceding reporting date to reflect the value of the new shares
that would have been issued to acquire the merged company had the
merger taken place at the first day of the comparative period.
Where new shares have been issued during the current period that
increased net assets (other than as consideration for the merger),
these are recorded from their actual date of issue and are not
included in the comparative statement of financial position.
The results and cash flows of all the combining entities were
brought into the financial statements of the combined entity from
the beginning of the financial year in which the combination
occurred, adjusted so as to achieve uniformity of accounting
policies. The comparative information was restated by including the
total comprehensive income for all the combining entities for the
previous reporting period and their statement of financial position
for the previous reporting date, adjusted as necessary to achieve
uniformity of accounting policies.
The Company's called up share capital was initially restated at
1 January 2016 to reflect the nominal value of the 2 incorporation
shares and the new 40,000,000 shares that would have been issued to
acquire the merged Coos Bay sub-group had the merger taken place on
that date. The total amount of share capital recognised by the
Company on 1 January 2016 was $530,803. Also, on 1 January 2016 the
Group has recognised the US Group's accumulated losses in full in
the amount of $26,948,973. On consolidation, the Company has
recognised the merger reserve (referred to in this financial
information as "consolidation reserve") in the amount of
$25,545,285, which was calculated as a difference between the sum
of the US Group share capital and additional capital of $26,076,085
and the cost of investment deemed to have been made by Curzon into
Coos Bay's shares in the amount of $530,800. During the year ended
31 December 2016, the consolidation reserve was further increased
by US$5,666,756 following the acquisition of the US Group by Coos
Bay and extinguishing liabilities of the previous owner of the US
Group, which was treated in the US Group's accounts as increase in
its additional capital. After all the acquisitions described above
were completed, the consolidation reserve totalled
US$31,212,041.
At 30 June 2018, 30 June 2017 and 31 December 2017 the group
results include the results of Curzon Energy Plc, Coos Bay Energy,
LLC, Westport Energy Acquisitions, Inc. and Westport Energy,
LLC.
Segmental analysis
In the opinion of the directors, the Group is primarily
organised into a single operating segment. This is consistent with
the Group's internal reporting to the chief operating decision
maker. Separate segmental disclosures have therefore not been
included.
3. Pro forma basic and diluted loss per share
The basic loss per share is derived by dividing the loss for the
year attributable to ordinary shareholders of the Company by the
weighted average number of shares in issue.
Diluted loss per share is derived by dividing the loss for the
year attributable to ordinary shareholders of the Company by the
weighted average number of shares in issue plus the weighted
average number of ordinary shares that would be issued on
conversion of all dilutive potential ordinary shares into ordinary
shares.
The acquisition of Coos Bay Energy, LLC by Curzon Energy Plc was
not within the scope of the IFRS 3 due to Curzon Energy Plc not
meeting the definition of a business. This acquisition was
accounted using the principles of merger accounting as described in
the accounting policy in note 2. The weighted average number of
shares for the purposes of loss per share calculation for reporting
and comparative years were adjusted as described below.
On 4 October 2017, 40,000,000 shares in Curzon Energy Plc were
issued to Coos Bay Energy, LLC previous owners as a consideration
for the acquisition of Coos Bay Energy, LLC. These new shares were
included into the weighted average number for shares calculation as
if they were in issue from the first day of the first period
presented in these financial statements, 1 January 2017. The 2
ordinary shares, that were issued by Curzon on incorporation, have
also been included into the calculation as if they were in issue
from the first day of the first period presented in these financial
statements, 1 January 2017.
The new shares have been issued during the current and
comparative periods that increased net assets (other than as
consideration for the Coos Bay acquisition, which was accounted for
using the principles of merger accounting). Such shares were
included into the weighted average number of shares calculation
recorded from their actual date of issue and were not included in
the comparative weighted average number of shares.
The following reflects the loss and share data used in the basic
and diluted loss per share computations:
For the For the For the
six months six months year ended
ended 30 ended 30 31 December
June 2018 June 2017 2017
Unaudited Unaudited Audited
----------------------------------------- ------------ ------------ -------------
Loss after tax (US$) 530,990 652,670 1,833,381
Weighted average number of ordinary
shares of GBP0.01 in issue 72,594,700 48,129,700 54,095,138
Effect of dilutive options and warrants - - -
Weighted average number of ordinary
shares of GBP0.01 in issue inclusive
of outstanding dilutive options
and warrants 72,594,700 48,129,700 54,095,138
Loss per share - basic and fully
diluted (US$) 0.007 0.014 0.034
----------------------------------------- ------------ ------------ -------------
4. Share capital
Authorised share capital
As permitted by the Companies Act 2006, the Company does not
have an authorised share capital.
Issued equity share capital
At 30 June 2018 At 31 December At 30 June 2017
Unaudited 2017 Unaudited
Audited
--------------------- ----------------------- ---------------------
Number US$ Number US$ Number US$
------------------------ ----------- -------- ----------- ---------- ----------- --------
Issued and fully paid
Ordinary shares of
GBP0.01 each (after
share split) 72,594,700 964,575 72,594,700 964,575 8,129,700 109,125
Ordinary shares of
GBP0.01 each deemed
to have been issued
on 1 Jan 2016 as a
consideration for the
acquisition of Coos
Bay - - - - 40,000,000 530,800
Total ordinary shares
of GBP0.01 each 72,594,700 964,575 72,594,700 964,575 48,129,700 639,925
------------------------ ----------- -------- ----------- ---------- ----------- --------
The Company has one class of Ordinary shares which carry no
right to fixed income.
Number of
shares Share Capital Share Premium Total
US$ US$ US$
--------------------------- ----------- -------------- -------------- ----------
At 30 June 2017
(Unaudited) 48,129,700 639,925 763,854 1,403,779
Shares issued in
the second half
of 2017 24,465,000 324,650 2,435,150 2,759,800
--------------------------- ----------- -------------- -------------- ----------
At 31 December 2017
(Audited) and at
30 June 2018 (Unaudited) 72,594,700 964,575 3,199,004 4,163,579
5. Borrowings
No new borrowings from third parties were originated by the
Group during the six months ended 30 June 2018. During the year
ended 31 December 2017, the Coos Bay issued two short term
promissory notes totalling US$250,000. A promissory note for
GBP300,000 was issued by Coos Bay on 29 December 2016. Details of
the notes are disclosed in the table below:
Origination Contractual Note value Note Annual
date settlement in original value, interest Settlement
date currency US$ rate details
------------------- ------------- ------------- ------------- --------- ---------- -----------------
Settled
on 31 July
2018 by
conversion
extended into 4,425,616
Cuart Investments 29 Dec to 31 Dec Curzon ordinary
PCC, Ltd. 2016 2018 GBP300,000 $404,730 12% shares
Settled
on 4 Oct
2017 by
conversion
into 1,200,000
18 Apr 31 Dec Curzon ordinary
YA Global 2017 2018 $150,000 $150,000 10% shares
Outstanding
at the date
of these
Jonathan 31 Dec accounts
Gellis 1 Sep 2017 2018 $100,000 $100,000 15% preparation
------------------- ------------- ------------- ------------- --------- ---------- -----------------
No interim payments are required under the promissory notes, as
the payment terms require the original principal amount of each
note, and all accrued interest thereon, to be paid in single lump
payments on the respective contractual settlement dates.
On the acquisition of Coos Bay by Curzon, all three notes were
transferred to Curzon from Coos Bay as a part of the purchase
consideration. Immediately after the acquisition, one of the notes
of US$150,000, issued to YA Global, was discharged by conversion
into 1,200,000 shares in Curzon.
30 June 2018 30 June 31 December
Unaudited 2017 2017
Unaudited Audited
US$ US$ US$
------------------------------------- ------------- ----------- ------------
At the beginning of the period 578,599 363,829 363,829
Received during the year - 150,000 250,000
Interest accrued during the year 31,893 45,818 57,725
Exchange rate differences (23,494) 7,472 66,285
Discharged during the year by issue
of shares in Curzon - - (159,240)
------------------------------------- ------------- ----------- ------------
At the end of the period 586,998 567,119 578,599
------------------------------------- ------------- ----------- ------------
6. Intangible assets
During the six months ended 30 June 2018, the Company
capitalised US$743,444 (six months ended 30 June 2017: nil; year
ended 31 December 2017: nil) of expenditure incurred in relation to
the development of the wells.
Development expenditure is costs incurred to obtain access to
proved and probable reserves and to provide facilities for
extracting, treating, gathering, transporting and storing coalbed
methane. Development expenditure is capitalised to the extent that
they are necessary to bring the wells to their commercial
production only when this expenditure is directly attributable to
an area of interest or capable of being reasonably allocated to an
area of interest.
7. Post balance sheet events
On 31 July 2018, 4,425,616 New Ordinary Shares were issued at a
price of GBP0.08 per share to Mr Barry Liben in satisfaction of the
aggregate debt of GBP354,049.24 owed to him pursuant to a
promissory note entered into with the Company on 29 December 2016,
which was referred to in note 5 as Cuart Investments.
For further information please contact:
Curzon Energy Plc +44 (0) 20 7747 9980
Stephen Schoepfer
www.curzonenergy.com
SP Angel Corporate Finance LLP +44 (0) 20 3470 0470
Richard Hail
Richard Redmayne
Optiva Securities Limited +44 (0) 20 3137 1902
Christian Dennis
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR LRMRTMBTTBTP
(END) Dow Jones Newswires
September 28, 2018 02:01 ET (06:01 GMT)
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