Petro Matad
Limited
('Petro Matad' or the
'Company' or the 'Group')
Interim results for the six
months ended 30 June 2024
LONDON, 19 September 2024: Petro
Matad Limited, the AIM quoted Mongolian oil company, announces its
unaudited interim results for the six months ended 30 June
2024.
Financial Summary 1H 2024
The Group posted a loss of USD 2.56 USD million for
the 6-month period ended 30 June 2024, which compares to a loss of
USD 1.90 million for the comparable period in 2023. The Company's
cash balance at 30 June 2024 was USD 1.93 million (USD 0.77 million
in cash and USD 1.16 million in Financial Assets), which compares
to a cash balance of USD 8.39 million (USD 0.82 million in cash and
USD 7.57 million in Financial Assets) on 30 June 2023.
As previously announced, a
successful fundraise totalling USD 9.4 million of gross proceeds
was completed in July 2024 to fund commencement of production and
development of the Heron oil discovery in Block XX and to continue
to develop renewable energy projects through the SunSteppe
Renewable Energy (SRE) joint venture.
Operational Summary 1H 2024 and look ahead
On the Company's Block XX in eastern
Mongolia where the Heron oil discovery had been ready for the first
phase of development for some time, the land access issue continued
to delay activities through the first half of 2024. The hold up was
due to delay in the government completing the registration of Block
XX as State Special Purpose Land even though this had been approved
by the cabinet in July 2023. With the matter delayed at provincial
level, Petro Matad was able to secure land use agreement at the
district level in late May 2024 that allowed operational activity
to go ahead in the second half of the year.
Following the reporting period, the
Company has announced the downhole completion of the Heron-1
discovery well, the commencement of drilling of the Heron-2
development well and the plans to spud the Gobi Bear-1 exploration
well. Operational activities are focussed on starting production
from the discovery and securing a route to market for the
oil.
On the Block V Production Sharing
Contract (PSC) in central Mongolia, with the expiration of the
exploration period due in late July 2024, the Company undertook all
the necessary work to hand back the acreage to the government in
good order. This work was completed ahead of the expiration of the
period on 28 July 2024.
MRPAM's Exploration Tender Round offering new
PSC areas continued through the first half of the year although
progress was held up by the late June 2024 parliamentary elections.
As previously reported, the Company has been selected as the
preferred contractor for the two blocks for which it submitted
applications. Following the parliamentary elections the Company has
been advised that the process to award the new PSCs is now
progressing.
The Company's renewable energy
initiative continued to make good progress in the first half of
2024. The SunSteppe Renewable Energy (SRE) joint
venture had high graded two projects for development.
The first project involves the provision of Green
Hydrogen to Mongolia's major Oyu Tolgoi copper and gold mine in
which Rio Tinto is the major investor. An exclusive Memorandum of
Understanding was signed with Oyu Tolgoi and the Japanese Overseas
Environmental Cooperation Centre (OECC) to develop the project and
supply Green Hydrogen to be used to provide heat to facilities at
the mine. Through the involvement in
the venture of OECC, the partnership was able to secure some
Japanese Government grant funding and an application for further
grant funding is expected to be made in due course.
SRE's second high graded project
is the Choir 50MW Battery Energy
Storage System (BESS). The government
has identified the need for a substantial BESS at Choir to help
stabilise the grid and reduce high-cost import of power from China
and Russia at peak hours and the economically wasteful export of
power during off peak periods. SRE secured approval of the
feasibility study from the Ministry of Energy for a 50MW BESS
project at Choir and began preparation of the application for the
licence to construct which continued beyond the end of the
reporting period.
In parallel with bringing its
two high graded projects to construction readiness expeditiously,
SRE is reviewing a number of other renewable energy opportunities
in Mongolia in order to add the most attractive to its high graded
portfolio.
Mike Buck, CEO of
Petro Matad, said:
"The progress made on the land
issue in 1H 2024 has been a long time coming but with permits now
in hand, our successful fund raise in July has allowed operational
activity to commence in earnest with downhole completion of
Heron-1, spud of Heron-2, plans to spud Gobi Bear-1 and
preparations for production start up.
I would like to thank the entire
Petro Matad team for their relentless work, in often frustrating
conditions, so far this year and we look forward to updating
shareholders on the progress and conclusion of several workstreams
in the months to come."
- Ends -
Further
information please contact:
|
Petro Matad
Limited
|
|
|
Mike Buck, CEO
|
+976 7014 1099 / +976 7575 1099
|
|
|
|
|
Shore Capital
(Nominated Adviser and Broker)
|
|
Toby Gibbs
Rachel Goldstein
|
+44 (0) 20 7408 4090
|
|
Zeus (Joint
Broker)
Simon Johnson
Louisa Waddell
|
+44 (0) 20 3829 5000
|
|
FTI Consulting
(Communications Advisory Firm)
|
|
|
Ben Brewerton
Christopher Laing
Catrin Trudgill
|
+44 (0) 20 3727 1000
|
About Petro
Matad
Petro Matad is the parent company of
a group focused on oil exploration, development and production in
Mongolia. Currently, Petro Matad holds 100% working interest and
the operatorship of the Matad Block XX Production Sharing Contract
with the government of Mongolia. Block XX has an area of 214 square
kilometres in the far eastern part of the country.
Petro Matad Limited is incorporated
in the Isle of Man under company number 1483V. Its registered
office is at Victory House, Prospect Hill, Douglas, Isle of Man,
IM1 1EQ.
STATEMENT OF COMPREHENSIVE INCOME
FOR
THE HALF-YEAR ENDED 30 JUNE 2024
|
|
|
Consolidated
|
|
|
|
30 Jun 2024
|
30 Jun 2023
|
|
|
|
$'000
|
$'000
|
|
|
|
|
|
|
Continuing Operations
|
|
|
|
|
Revenue
|
|
|
|
|
Consulting service
revenue
|
|
-
|
100
|
|
Interest Income
|
|
102
|
11
|
|
Other Income
|
|
-
|
30
|
|
|
|
102
|
141
|
|
|
|
|
|
|
Expenditure
|
|
|
|
|
Consultancy fees
|
|
(65)
|
(62)
|
|
Depreciation and
amortisation
|
|
(105)
|
(89)
|
|
Employee benefits
expenses
|
|
(869)
|
(892)
|
|
Exploration expenditure
|
|
(1)
|
(52)
|
|
Other expenses
|
|
(1,626)
|
(948)
|
|
Profit/(Loss) from continuing operations before income
tax
|
|
(2,564)
|
(1,902)
|
|
Income tax expense
|
|
-
|
-
|
|
Profit/(Loss) from continuing operations after income
tax
|
|
(2,564)
|
(1,902)
|
|
Net
Loss
|
|
(2,564)
|
(1,902)
|
|
|
|
|
|
|
Other comprehensive income/(loss)
|
|
|
|
|
Exchange rate differences on
translating foreign operations
|
|
13
|
5
|
|
Other comprehensive income/(loss), net of income
tax
|
|
13
|
5
|
|
Total comprehensive loss
|
|
(2,551)
|
(1,897)
|
|
|
|
|
|
|
Profit/(Loss) attributable to owners
of the parent
|
|
(2,564)
|
(1,902)
|
|
|
|
|
|
|
Total comprehensive income/(loss)
attributable to owners of the parent
|
|
(2,551)
|
(1,897)
|
|
|
|
|
|
|
Earnings/(loss) per share (cents per share)
|
|
|
|
|
- Basic and diluted
earnings/(loss) per share
|
|
(0.23)
|
(0.18)
|
STATEMENT OF FINANCIAL POSITION
AS
AT 30 JUNE 2024
|
|
Consolidated
|
|
|
30 Jun 2024
|
31 Dec 2023
|
30 Jun 2023
|
|
|
$'000
|
$'000
|
$'000
|
|
ASSETS
|
|
|
|
|
Current Assets
|
|
|
|
|
Cash and cash equivalents
|
772
|
503
|
815
|
|
Trade and other
receivables
|
344
|
438
|
346
|
|
Prepayments
|
143
|
159
|
215
|
|
Financial assets
|
1,160
|
3,529
|
7,572
|
|
Inventory
|
217
|
215
|
218
|
|
Total Current Assets
|
2,636
|
4,844
|
9,166
|
|
|
|
|
|
|
Non-Current Assets
|
|
|
|
|
Exploration and
evaluation
|
15,275
|
15,275
|
15,275
|
|
Investment in SunSteppe Power
LLC
|
793
|
946
|
468
|
|
Property, plant and
equipment
|
222
|
239
|
266
|
|
Right-of-Use asset
|
43
|
99
|
38
|
|
Total Non-Current assets
|
16,333
|
16,559
|
16,047
|
|
TOTAL ASSETS
|
18,969
|
21,403
|
25,213
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
Current liabilities
|
|
|
|
|
Trade and other payables
|
263
|
348
|
317
|
|
Lease liability
|
-
|
-
|
-
|
|
Total Current Liabilities
|
263
|
348
|
317
|
|
TOTAL LIABILITIES
|
263
|
348
|
317
|
|
NET
ASSETS
|
18,706
|
21,055
|
24,896
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
Issued capital
|
160,176
|
160,176
|
160,177
|
|
Reserves
|
405
|
243
|
61
|
|
Accumulated losses
|
(141,875)
|
(139,364)
|
(135,342)
|
|
TOTAL EQUITY
|
18,706
|
21,055
|
24,896
|
CONDENSED CASH FLOW STATEMENT
FOR
THE HALF-YEAR ENDED 30 JUNE 2024
|
|
Consolidated
|
|
|
30 Jun 2024
|
30 Jun 2023
|
|
|
$'000
|
$'000
|
|
|
|
|
|
Cash flows from operating activities
|
|
|
|
Payments to suppliers and
employees
|
(2,339)
|
166
|
|
Consulting service
revenue
|
-
|
100
|
|
Interest received
|
102
|
11
|
|
Net
cash flows from/(used in) operating activities
|
(2,237)
|
277
|
|
|
|
|
|
Cash flows from investing activities
|
|
|
|
Purchase of property, plant and
equipment
|
(10)
|
(26)
|
|
Proceeds from sale of financial
assets
|
2,369
|
(6,555)
|
|
Investment in SunSteppe Power
LLC
|
153
|
(468)
|
|
Net
cash flows from/(used in) investing activities
|
2,512
|
(7,049)
|
|
|
|
|
|
Cash flows from financing activities
|
|
|
|
Proceeds from issue of
shares
|
-
|
6,523
|
|
Capital raising costs
|
-
|
(403)
|
|
Payments of lease liability
principal
|
(19)
|
(13)
|
|
Net
cash flows from/(used in) financing activities
|
(19)
|
6,107
|
|
|
|
|
|
Net increase/(decrease) in cash and
cash equivalents
|
256
|
(665)
|
|
Net foreign exchange
differences
|
13
|
4
|
|
Cash and cash equivalents at
beginning of period
|
503
|
1,476
|
|
Cash and cash equivalents at end of period
|
772
|
815
|
1. CORPORATE
INFORMATION
The financial report covers the
consolidated entity of Petro Matad Limited and its controlled
entities.
Petro Matad Limited (Company)
incorporated in the Isle of Man on 30 August 2007 has five wholly
owned subsidiaries, which are: Capcorp Mongolia LLC and Petro Matad
LLC (both incorporated in Mongolia), Central Asian Petroleum
Corporation Limited (Capcorp) and Petromatad Invest Limited (both
incorporated in the Cayman Islands), and Petro Matad Energy Limited
(incorporated in Isle of Man). Petro Matad Limited owns 50% of
Sunsteppe Renewable Energy Pte. Ltd. (formerly known as Petro Matad
Singapore Pte. Ltd.), which is incorporated in Singapore, which is
owned jointly together with Sunsteppe Energy LLC to pursue
renewables energy projects. The Company and its subsidiaries are
collectively referred to as the "Group". The Group's principal
activity in the course of the financial year consisted of oil
exploration and development and investment in renewable projects in
Mongolia.
Petro Matad Limited trades on the
Alternative Investment Market (AIM), which is a sub-market of the
London Stock Exchange, under the symbol MATD. Its major shareholder
is Petrovis Matad Inc.
2. SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES
The half-year financial report does
not include all of the notes of the type normally included within
the annual financial report and therefore cannot be expected to
provide as full an understanding of the financial performance,
financial position and financing and investing activities of the
consolidated entity as the full financial report.
The half-year financial report
should be read in conjunction with the annual Financial Report of
Petro Matad Limited as at 31 December 2023. The half-year
consolidated financial statements have been prepared using the same
accounting policies as used in the annual financial statements for
the year ended 31 December 2023.
It is also recommended that the
half-year financial report is considered together with any public
announcements made by Petro Matad Limited and its controlled
entities during the half-year ended 30 June 2024.
(a) Basis of
Preparation
The half-year consolidated financial
report is a general purpose financial report, which has been
prepared in accordance with the requirements of International
Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board
('IASB'). The half-year financial report has been prepared on a
historical cost basis, except where stated.
The financial report is presented in
US dollars and all values are rounded to the nearest thousand
dollars ($'000).
For the purpose of preparing the
half-year financial report, the half-year has been treated as a
discrete reporting period.
(b) Basis of
consolidation
The consolidated financial
statements comprise the financial statements of the Group as at 31
December each year.
Subsidiaries are entities controlled
by the Group. Control exists when the Group has the power to govern
the financial and operating policies of an entity so as to obtain
benefits from its activities. In assessing control, potential
voting rights that presently are exercisable or convertible are
taken into account. The financial statements of the subsidiaries
are included in the consolidated financial statements from the date
that control commences until the date that control
ceases.
The financial statements of
subsidiaries are prepared for the same reporting period as the
parent company, using consistent accounting policies. Adjustments
are made to bring into line any dissimilar accounting policies that
may exist.
A change in the ownership interest
of a subsidiary that does not result in a loss of control is
accounted for as an equity transaction.
All intercompany balances and
transactions, including unrealised profits arising from intra-group
transactions, have been eliminated in full. Unrealised losses
are eliminated unless costs cannot be recovered.
3. CONTRIBUTED
EQUITY
|
|
|
CONSOLIDATED
|
|
|
|
|
30 Jun 2024
|
31 Dec
2023
|
|
|
|
|
$'000
|
$'000
|
|
Ordinary shares (i)
1,113,883,601 shares issued and
fully paid.
(31 Dec 2023:
1,113,883,601)
|
|
160,176
|
160,176
|
|
|
|
|
160,176
|
160,176
|
|
|
|
|
|
|
|
|
|
|
(i) Ordinary shares
Full paid ordinary shares carry one
vote per share and carry the right to dividends.
|
|
Movement in ordinary shares on issue
|
Number of
Shares
|
Issue
Price$
|
$'000
|
|
|
At 1 January 2024
|
1,113,883,601
|
|
160,176
|
|
|
No transactions during the
period
|
-
|
-
|
-
|
|
|
At
30 June 2024
|
1,113,883,601
|
|
160,176
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4. RESERVES
A detailed breakdown of the reserves
of the Group is as follows:
|
|
Merger
reserve
|
Equity
benefits reserve
|
Foreign
currency translation
|
Total
|
|
Consolidated
|
$'000
|
$'000
|
$'000
|
$'000
|
|
|
|
|
|
|
|
As at 1 July 2023
|
831
|
593
|
(1,363)
|
61
|
|
Currency translation
differences
|
-
|
-
|
21
|
21
|
|
Expiry of Options
|
-
|
(2)
|
-
|
(2)
|
|
Share based payments
|
-
|
163
|
-
|
163
|
|
As
at 31 December 2023
|
831
|
754
|
(1,342)
|
243
|
|
|
|
|
|
|
|
Currency translation
differences
|
-
|
-
|
13
|
13
|
|
Share based payments
|
-
|
149
|
-
|
149
|
|
As
at 30 June 2024
|
831
|
903
|
(1,329)
|
405
|
EARNINGS/(LOSS) PER SHARE
The following reflects the income
and share data used in the total operations basic and diluted
earnings/(loss) per share computations:
|
|
CONSOLIDATED
|
|
|
30 Jun
2024
|
30 Jun
2023
|
|
Basic earnings/(loss) per share
|
|
|
|
Total basic earnings/(loss) per
share (US$ cents per share) (note a)
|
(0.23)
|
(0.18)
|
|
|
|
|
|
Diluted earnings/(loss) per share
|
|
|
|
Total diluted earnings/(loss) per
share (US$ cents per share) (note b)
|
(0.23)
|
(0.18)
|
|
|
|
|
|
(a) Basic earnings/(loss) per share
|
|
|
|
The profit/(loss) and weighted
average number of ordinary shares used in the calculation of basic
loss per share are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
Net profit/(loss) attributable to
ordinary shareholders (US$'000)
|
(2,564)
|
(1,902)
|
|
|
|
|
|
Weighted average number of ordinary
shares for the purposes of basic earnings per share
('000)
|
1,113,884
|
1,067,531
|
|
|
|
|
|
(b) Diluted earnings/(loss) per share
|
|
|
|
The profit/(loss) and weighted
average number of ordinary shares used in the calculation of
diluted earnings per share are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
Net profit/(loss) attributable to
ordinary shareholders (US$'000)
|
(2,564)
|
(1,902)
|
|
|
|
|
|
Weighted average number of ordinary
shares for the purposes of basic earnings per share
('000)
|
1,113,884
|
1,067,531
|
Share Options and Conditional Share
Awards could potentially dilute basic loss per share in the future,
however they have been excluded from the calculation of diluted
loss per share because they are anti-dilutive for both years
presented.
5. EVENTS AFTER THE REPORTING
DATE
On 1 July 2024, the Company
concluded a placing by issuing 189,311,666 shares at a price of
GBP0.020 per share arranged through its nominated adviser, broker
and joint book runner for the purposes of the Placing, Shore
Capital Stockbrokers.
On 1 July 2024, the Company
concluded a placing by issuing 117,381,250 shares at a price of
GBP0.020 per share arranged through its broker and joint book
runner for the purposes of the Placing, Zeus Capital.
On 1 July 2024, the Company issued
43,307,084 shares through direct subscriptions at a price of
GBP0.020 per share.
On 1 July 2024, the Company issued
20,000,000 shares to shareholders at a price of GBP0.020 per share
through a retail offering.
