TIDMFAST
RNS Number : 2485A
Fastnet Oil & Gas PLC
18 December 2014
19 December 2014
Fastnet Oil & Gas plc
("Fastnet", the "Company" or the "Group")
Interim Results for the six months ended 30 September 2014
Fastnet (AIM: FAST, ESM: FOI), the UK and Irish listed E&P
company focussed on near-term exploration and appraisal acreage in
Morocco and the Celtic Sea, announces its interim results for the
six month period ended 30 September 2014.
Operational Highlights
-- Foum Assaka farm-out to SK Innovation completed in April 2014
for back costs and a carried interest in the FA-1 well and a
potential carried interest in a second well
-- FA-1 well completed in May 2014 having encountered live oil
shows and provided supporting evidence for reservoir development.
Post-well technical studies are ongoing to incorporate all of the
FA-1 well data into the geological framework of the Foum Assaka
Licence
-- Celtic Sea and Tendrara Lakbir farm-out processes commenced
and ongoing with the Company working towards bringing in partners
to further pursue exploration activities
-- Improved terms and option extension secured on Tendrara
Lakbir in June 2014 and on Deep Kinsale in August 2014
Financial and Corporate Highlights
-- US$18.8m cash balance at 30 September 2014 (US$17.4m at 31
March 2014, US$10.9m at 30 September 2013) with no material
outstanding licence commitments
-- US$20.4m in backs costs received from SK Innovation on
completion of the Foum Assaka farm-out
-- Net loss for the period of US$1.6m which reflects the
increase in technical work developing Fastnet's portfolio during
the period (6 months to 31 March 2014: loss of US$1.7m, 6 months to
30 September 2013: loss of US$0.9m). The current period net loss
comprises general and administrative costs of US$1.6m, a
share-based payment charge of US$0.1m and finance income of
US$0.1m. Ongoing monthly general and administrative costs in 2015
forecast to reduce from US$275k to US$215k per month
-- Carol Law appointed Chief Executive Officer in December 2014
and Will Holland appointed to the Board as Chief Financial Officer
in May 2014
Carol Law, CEO of Fastnet, commented:
"Throughout 2014, Fastnet continued its strategy of monetising
the Company's existing assets and prudently managing its
significant cash reserves in order to create shareholder value. The
Foum Assaka farmout was a prime example of this strategy with the
FA-1 well delivered at a cost of just US$2.75m to the Company. As
the technical studies progress we look forward to continue working
with Kosmos, BP and SK in evaluating the licence potential and, in
the event of drilling a second well on the licence, the Company
would have a further carried interest.
"The oil and gas sector is faced with challenging times but
looking ahead to 2015, we believe that Fastnet's portfolio will
increase in marketability as industry focus moves towards
profitable shallow water and onshore projects in attractive fiscal
regimes with low operating costs. In this regard, we will continue
to work towards bringing in partners to further pursue exploration
activities across our portfolio and seek appropriate licence
extensions to enable us to execute this strategy.
"Fastnet is well positioned as a result of a strong balance
sheet, management team and asset portfolio. Prudent management will
deliver a significant reduction in ongoing general and
administrative costs going forward and we will continue to develop
and grow the asset portfolio in a selective and low-cost manner as
is possible."
A copy of the interim report is now available for download via
the following link:
http://www.fastnetoilandgas.com/investor-relations/reports/financial-reports/2014.aspx
For further information please contact:
Fastnet Oil & Gas plc
Cathal Friel, Non-Executive Chairman
Carol Law, Chief Executive Officer
Will Holland, Chief Financial Officer +353 (1) 644 0007
Shore Capital
Nomad
Bidhi Bhoma, Edward Mansfield
Corporate Broking
Jerry Keen +44 (0) 20 7408 4090
GMP Securities Europe LLP
(Joint Broker)
Rob Collins, Emily Morris, Liz Williamson +44 (20) 7467 2800
Davy
(ESM Adviser & Joint Broker)
John Frain, Anthony Farrell +353 (1) 679 6363
Bell Pottinger
Philip Dennis, Rollo Crichton-Stuart,
Jimmy Lea +44 (0) 203 772 2500
Consolidated Statement of Comprehensive Income
For the six months ended 30 September 2014
Unaudited Unaudited Audited
6 months 6 months 12 months
to to to 31 March
30 September 30 September 2014
2014 2013
US$'000 US$'000 US$'000
------------------------------------------ -------------- -------------- -------------
Continuing operations
Revenue - - -
Operational costs - - -
------------------------------------------ -------------- -------------- -------------
Gross loss - - -
General and administrative costs (1,651) (913) (2,469)
Share based payments (74) (233) (464)
Operating loss (1,725) (1,146) (2,933)
Finance revenue 95 125 201
Net foreign exchange gain 2 165 175
------------------------------------------ -------------- -------------- -------------
Loss on ordinary activities before
taxation (1,628) (856) (2,557)
Tax on loss on ordinary activities - - -
------------------------------------------ -------------- -------------- -------------
Loss and total comprehensive loss
for the period attributable to the
equity holders of the Company (1,628) (856) (2,557)
------------------------------------------ -------------- -------------- -------------
Loss per share:
Loss per share - basic and diluted,
attributable to ordinary equity holders
of the parent (cent) (0.47) (0.31) (0.87)
Consolidated Statement of Financial Unaudited Unaudited Audited
Position 30 September 30 September 31 March
As at 30 September 2014 2014 2013 2014
US$'000 US$'000 US$'000
------------------------------------- -------------- -------------- ----------
Assets
Non-current assets
Property, plant and equipment 11 20 14
Exploration and evaluation assets 35,986 32,325 51,644
------------------------------------- -------------- -------------- ----------
Total non-current assets 35,997 32,345 51,658
------------------------------------- -------------- -------------- ----------
Current assets
Trade and other receivables 148 108 76
Cash and cash equivalents 18,827 10,857 17,428
Total current assets 18,975 10,965 17,504
------------------------------------- -------------- -------------- ----------
Total assets 54,972 43,310 69,162
------------------------------------- -------------- -------------- ----------
Equity and liabilities
Equity attributable to owners of
the parent
Share capital 20,261 15,832 20,261
Share premium 38,918 28,595 38,918
Other reserves 1,996 1,218 1,815
Retained deficit (6,679) (3,350) (5,051)
------------------------------------- -------------- -------------- ----------
Total equity 54,496 42,295 55,943
------------------------------------- -------------- -------------- ----------
Non-current liabilities
Liability for share based payments 2 166 79
Total non-current liabilities 2 166 79
Current liabilities
Trade and other payables 474 849 13,140
------------------------------------- -------------- -------------- ----------
Total current liabilities 474 849 13,140
------------------------------------- -------------- -------------- ----------
Total liabilities 476 1,015 13,219
------------------------------------- -------------- -------------- ----------
Total equity and liabilities 54,972 43,310 69,162
------------------------------------- -------------- -------------- ----------
Consolidated Statement of Cash Flows Unaudited Unaudited Audited
For the six months ended 30 September
2014
6 months 6 months 12 months
to to to 31 March
30 September 30 September 2014
2014 2013
US$'000 US$'000 US$'000
------------------------------------------- -------------- -------------- -------------
Cash flows from operating activities
Group operating loss for the period (1,725) (1,146) (2,933)
Depreciation 3 - 6
Share based payment expense 74 233 464
Movements in working capital:
(Increase)/decrease in trade and
other receivables (72) 3 36
(Decrease)/increase in trade and
other payables (393) (117) 359
Net cash flow from operating activities (2,113) (1,027) (2,068)
------------------------------------------- -------------- -------------- -------------
Cash flow from investing activities
Payments for property, plant and
equipment (1) (7) (7)
Expenditure on exploration and evaluation
assets (16,994) (19,937) (27,382)
Farm-out funds received 20,410 - -
Bank interest received 95 125 201
Net cash flow from investing activities 3,510 (19,819) (27,188)
------------------------------------------- -------------- -------------- -------------
Cash flow from financing activities
Net proceeds from issue of equity
instruments - - 14,971
Net cash flow from financing activities - - 14,971
------------------------------------------- -------------- -------------- -------------
Exchange and other movements 2 165 175
------------------------------------------- -------------- -------------- -------------
Net change in cash and cash equivalents 1,399 (20,681) (14,110)
Cash and cash equivalents at beginning
of period/year 17,428 31,538 31,538
------------------------------------------- -------------- -------------- -------------
Cash and cash equivalents at end
of period/year 18,827 10,857 17,428
------------------------------------------- -------------- -------------- -------------
Consolidated Statement of
Changes in Equity
For the six months ended
30
September 2014
Reverse
Share asset
Share Share based Merger acquisition Capital Retained
capital premium payment reserve reserve reserve deficit Total
reserve
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
-------------------------- --------- --------- --------- --------- ------------- --------- ---------- --------
Balance at 1 April 2013 15,832 28,595 695 11,478 (11,256) 9 (2,494) 42,859
Loss and total
comprehensive
loss for the period - - - - - - (856) (856)
Share based payments - - 292 - - - - 292
-------------------------- --------- --------- --------- --------- ------------- --------- ---------- --------
Balance at 30 September
2013
(Unaudited) 15,832 28,595 987 11,478 (11,256) 9 (3,350) 42,295
-------------------------- --------- --------- --------- --------- ------------- --------- ---------- --------
Balance at 1 October 2013 15,832 28,595 987 11,478 (11,256) 9 (3,350) 42,295
Loss and total
comprehensive
loss for the period - - - - - - (1,701) (1,701)
Share based payments - - 597 - - - - 597
Issue of share capital 4,429 10,323 - - - - - 14,752
Balance at 31 March 2014 20,261 38,918 1,584 11,478 (11,256) 9 (5,051) 55,943
(Audited)
-------------------------- --------- --------- --------- --------- ------------- --------- ---------- --------
Balance at 1 April 2014 20,261 38,918 1,584 11,478 (11,256) 9 (5,051) 55,943
Loss and total
comprehensive
loss for the period - - - - - - (1,628) (1,628)
Share based payments - - 181 - - - - 181
Balance at 30 September
2014
(Unaudited) 20,261 38,918 1,765 11,478 (11,256) 9 (6,679) 54,496
-------------------------- --------- --------- --------- --------- ------------- --------- ---------- --------
1. General Information
Fastnet Oil & Gas plc ("Fastnet" or the "Company") is a
company incorporated in England and Wales. Details of the
registered office, the officers and advisers to the Company are
presented on the Company Information page at the end of this
report. The Company is listed on the AIM market of the London Stock
Exchange (ticker: FAST) and the Enterprise Securities Market of the
Irish Stock Exchange (ticker: FOI).
The principal activity of the Company is oil and gas
exploration.
The interim results of the Company for the six month period
ended 30 September 2014 comprise the Company and its subsidiaries
(together the "Group").
2. Basis of Preparation
The interim results have been prepared on the basis of the
recognition and measurement requirements of International Financial
Reporting Standards ("IFRS") as adopted by the European Union
("EU"), and their interpretations adopted by the International
Accounting Standards Board ("IASB"). As is permitted by the AIM
rules the Directors have not adopted the requirements of IAS34
"Interim Financial Reporting" in preparing the financial
statements. Accordingly the financial statements are not in full
compliance with IFRS and have neither been audited nor reviewed
pursuant to guidance issued by the Auditing Practises Board. The
accounting policies used in the preparation of the interim
financial information are the same as those used in the Company's
audited financial statements for the year ended 31 March 2014 and
are expected to be used in the 31 March 2015 year-end financial
statements.
The financial information for the six months ended 31 September
2013 and 31 September 2014 is unaudited. The financial information
presented for the year ended 31March 2013 is an extraction from the
Group's audited accounts and therefore do not constitute statutory
accounts within the meaning of Section 434 of the Companies Act
2006 on which the auditors issued an unqualified report The
auditor's report also did not contain a statement under Section
498(2) or 498 (3) of the Companies Act 2006 and did not include
reference to any matters the auditor drew attention by way of
emphasis. The accounts for the year ended 31 March 2014 have been
delivered to the Registrar of Companies. The Directors consider
that the financial information presented in this Interim Report
represents fairly the financial position, operations and cash flows
for the period, in conformity with IFRS. The Interim Report for the
six months ended 30 September 2014 was approved by the Directors on
19 December 2014.
Presentation of Balances
The Financial Statements are presented in US Dollars ("US$")
which is the functional and presentational currency of the Company
and the functional currency of all the Group's subsidiary
companies. Balances in the Financial Statements are rounded to the
nearest thousand (US$'000) except where otherwise indicated.
3. Exploration and Evaluation Assets
Offshore Onshore Offshore
Morocco Morocco Ireland Total
US$'000 US$'000 US$'000 US$'000
---------------------------------------------- --------- --------- --------- ---------
Cost
At 1 April 2013 9,496 - 2,545 12,041
Additions 1,828 473 17,983 20,284
---------------------------------------------- --------- --------- --------- ---------
At 30 September 2013 11,324 473 20,528 32,325
---------------------------------------------- --------- --------- --------- ---------
Carrying value 30 September 2013 (unaudited) 11,324 473 20,528 32,325
---------------------------------------------- --------- --------- --------- ---------
Cost
At 1 October 2013 11,324 473 20,528 32,325
Additions 17,491 505 1,323 19,319
---------------------------------------------- --------- --------- --------- ---------
At 31 March 2014 28,815 978 21,851 51,644
---------------------------------------------- --------- --------- --------- ---------
Carrying value 31 March 2014 (audited) 28,815 978 21,851 51,644
Cost
At 1 April 2014 28,815 978 21,851 51,644
Additions 3,417 751 584 4,752
Proceeds from farm-out (20,410) - - (20,410)
---------------------------------------------- --------- --------- --------- ---------
At 30 September 2014 11,822 1,729 22,435 35,986
Carrying value 30 September 2014 (unaudited) 11,822 1,729 22,435 35,986
---------------------------------------------- --------- --------- --------- ---------
Completion of farm-out to SK Innovation Co. Ltd.
On 18 December 2013 Fastnet entered into a farm-out agreement
with SK Innovation Co. Ltd. ("SK"). Under the terms of the
agreement, Fastnet will receive up to a two well carry comprised of
a carry in the first exploration well (FA-1) on the Eagle-1
Prospect and first appraisal well (capped at US$100m per well) or
at SK's sole discretion a carry in a second exploration well
(capped at US$100m) for a 9.375% participating interest (12.5%
paying interest) in the Foum Assaka Licence Area. All completion
conditions in relation to the farm-out were finalised in April 2014
with Fastnet receiving US$20.4m in back costs from SK on
completion.
4. Loss per Share - Basic and Diluted
The Group presents basic and diluted loss per share ("LPS") data
for its Ordinary Shares. Basic LPS is calculated by dividing the
profit or loss attributable to Ordinary Shareholders of the Company
by the weighted average number of Ordinary Shares outstanding
during the period. Diluted LPS is determined by adjusting the
profit or loss attributable to Ordinary Shareholders and the
weighted average number of Ordinary Shares outstanding for the
effects of all dilutive potential Ordinary Shares, which comprise
warrants and share options granted by the Company.
The calculation of loss per share is based on the following:
6 months 6 months 12 months
to 30 September to 30 September to 31 March
2014 2013 2014
------------------------------------------ ----------------- ----------------- -------------
Loss after tax attributable to equity
holders of the parent (US$'000) (1,628) (856) (2,557)
Weighted average number of Ordinary
Shares in issue 345,369,071 273,940,493 294,292,745
Fully diluted average number of Ordinary
Shares in issue 345,369,071 273,940,493 294,292,745
------------------------------------------ ----------------- ----------------- -------------
Basic and diluted loss per share (cent) (0.47) (0.31) (0.87)
------------------------------------------ ----------------- ----------------- -------------
Where a loss has occurred, basic and diluted LPS are the same
because the outstanding share options and warrants are
anti-dilutive. Accordingly, diluted LPS equals the basic LPS.
The share options and warrants outstanding as at 30 September
2014 totalled 25,397,423 (31 March 2014: 17,647,423, 30 September
2013: 15,345,628) and are potentially dilutive.
5. Subsequent Events
Appointment of Chief Executive Officer
On the 10 December 2014 the Company announced the appointment of
Carol Law as Chief Executive Officer of the Company.
Termination of Royalty Agreement
On the 10 December 2014 the Company announced that the Royalty
Agreement in relation to the Foum Assaka licence area between Pan
Maghreb Oil and Gas Limited and Pathfinder Hydrocarbon Ventures
Limited, a 100% owned subsidiary of Fastnet has now been
terminated.
6. Copy of the Interim Report
Copies of the Interim Report are available to download from the
Company's website at
www.fastnetoilandgas.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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