30 September 2016
Mayan Energy Ltd / Index: AIM / Epic:
NCT / ISIN: VGG6622A1057 / Sector: Oil & Gas
Mayan Energy Ltd
(“Mayan” or “the Company”)
Interim
Results
Oil Production
Brought On Line. Gas Contract and Tap Installed. Positioned for
Growth.
Mayan Energy Ltd (AIM: MYN), the AIM
listed oil and gas company, is pleased to announce its unaudited
financial results for the six months ended 30 June 2016. This has been a period which saw
commencement of oil production from Shoats Creek Field (“Shoats
Creek”) (the Lutcher Moore (“LM”) 20 well), the announcement of
major steps leading to gas sales in the near term, the
implementation of a cost cutting regime, two fund raisings and two
transactions designed to deleverage the Company’s balance sheet and
reduce risk.
HIGHLIGHTS:
- LM 20 bought on stream –now producing a steady 120 bopd (24
bopd net to Mayan (20%));
- Disposal of 70% working interest (“WI”) in LM 20, for total
consideration of US$ 1.03 million,
with a corresponding reduction in net current
assets/liabilities;
- Raised £0.95 million in new equity capital.
POST PERIOD END:
- Shoats Creek gas tie in contract announced;
- Shoats Creek gas line laid, with first gas sales planned for
October 2016;
- Name changed to Mayan Energy Ltd to mark commitment to develop
Mexico;
- Raised an additional £0.55 million in new equity capital.
CHAIRMAN AND CHIEF EXECUTIVE'S
STATEMENT
After almost 18 months of decline, oil prices stabilised during
the first half of 2016 and given the consensus medium term outlook,
the focus of the Board turned to how to achieve profitability in
the current oil price environment. To this end, a change in
leadership with a focus on cost cutting, sale of non-core assets,
optimising performance from the Shoats Creek field and pursuit of
the opportunities associated with Mexican energy sector reforms was
embraced and acted upon by the Board.
Management
In September, Mayan appointed Mr. Heriberto Gonzalez (“Eddie”) as Chief Executive
Officer (“CEO”) and Mr. James Doyle
McGraw (“JD”) as a non-executive director of the
Company.
Eddie and JD each have a successful track-record pursuing
various business opportunities in the
United States of America (“USA”), and importantly,
Mexico. Most recently Eddie was involved in a 100,000 MMBTU
2-year natural gas deal between U.S. suppliers and Comisión Federal
de Electricidad, the Mexican state owned utility.
At the same time, Mr Randy
Connally and Mr Kevin Green
stepped down from the Board, with Mr Kevin
Green remaining as a consultant. On behalf of the
Board, I wish them both well in their future endeavours.
Operations
US – Shoats Creek
The Board believes that Shoats Creek represents an excellent
opportunity to create real value for the Company, and be the spring
board for Mexico. During the period under review Shoats Creek
has been a key area of focus and it will continue to be so for the
coming period.
In initiating production at LM 20, the Company took a major step
in the development of Shoats Creek. Since his appointment,
Stephen Brock, the new Vice
President Operations, has been pursuing production and revenue
growth by way of low risk, low capital cost work-over and re-entry
opportunities, and as these initiatives bear fruit, the Company
will continue towards the drilling its next new Frio well, the
LM21.
Subject to funding in respect of the medium and longer term
plans, the Company will seek to implement the following work
program at Shoats Creek:
Short Term (1-3 Months)
- Installation of necessary equipment to permit sales of natural
gas;
- Initiate Gas and Oil production from LM 14; and
- Initiate production from RC1 and RC2.
Medium Term: (3-6 Months)
- Acquire rights to additional adjoining acreage to expand the
Shoats Creek project area and provide additional prospective
drilling locations;
- Subject to the above, re-enter and initiate gas and oil
production from an additional two wells;
- Subject to the above, re-enter and convert an existing well
bore into a second salt water disposal well, to provide for
expanded capacity and redundancy to the existing (LM 15) salt water
disposal well.
Longer Term: (More than 6 Months)
- Drill and complete LM 21 and further review other drilling
locations post successful completion of LM 21;
- Additional geophysical and engineering work to high grade
existing wells and add additional locations in anticipation of a
new well drilling program.
US - Other
The Company has undertaken only limited activities in the other
assets in its US portfolio. These assets will be sold as and
when suitable opportunities arise.
Mexico
In Mexico, the Company’s vision
is to create an energy services company centred on oilfield
services and midstream opportunities. In the short term Mayan
Drilling Fluids, the joint venture (“JV”) formed with Gaia
Ecologica S.A. DE C.V. (“Gaia”), a local oil field and
environmental services company with a strong track record, is
intended to be the Company’s entry platform into the Mexican
market. The JV is currently completing its first
environmental waste remediation facility capable of recycling oil
cuttings. On its completion, Mayan will be paid 85% of
distributable cash flow until pay-out, plus a 9.0% internal rate of
return on its investment. Following payback, profits will be
split 51% to Mayan and 49% to Gaia.
The Company has undertaken the following initiatives regarding
the development of its Mexican businesses:
- Entering into a letter of intent with PEMEX, the Mexican
national oil company, to provide waste remediation services;
- Offering "public scale" services to trucking companies
-utilizing the weigh scales installed at its site in Comalcalco (the location of the planned waste
remediation facility);
- Advancing discussions with a range of parties to develop
opportunities for the initial remediation facility and to increase
the number of other opportunities in Mexico.
Commenting on the above, Mayan’s CEO Eddie Gonzalez said:
"Since I have come on board, and started working with
Stephen Brock who joined the Company
in August, we have been working flat out at getting the gas
accessible from our Shoats Creek wells into production. I
have to say that although we have been effected by bad weather and
other hitches, we have kept to the plan I envisaged. So right
now we are looking to get the gas flowing within the next week or
so, with sales by the end of October.
“At the same time, I have implemented a regime which has led to
considerable cost savings - the benefits of which I expect to see
flow through in the coming months. Together with greater
revenues from planned increases in production of gas and oil, I am
confident that the US will be operationally profitable soon.
“With Shoats now looking like it is on a good track, I am also
committed to monetizing our other “non-core” US assets. Also,
with the benefit of more capital in hand, I am personally going to
revitalise the development of our initiatives in Mexico. It
is not going to be easy, but I am excited about it. I think
we got a good team now, and a clear plan. In my opinion, the future
is now beginning to look much brighter.”
FINANCIAL REVIEW
During the period, Mayan raised £450,000 via the issue of
1,428,571,429 new ordinary shares and £500,000 via the issue of
1,587,301,587 new ordinary shares.
The Group generated a gross loss in the period of US$1,279,000 (30 June
2015: US$2,141,000 Loss), an
improvement of US$862,000 compared to
the previous period. The reduction in losses is attributable
to cost savings made, and lower operational losses suffered.
As to the reduction in revenue numbers, this is attributable to the
decline in performance of Mayan’s other (non-core) interests,
with production from Shoats presently limited to LM20, which only
came on stream in late April
2016.
As reported in January and in March
2016 the Company announced two transactions which had the
effect of reducing Mayan’s working interest in LM 20, from 97% to
20% for a total consideration of US$ 1.03
Million. For the purposes of preparing these interim
financial statements, it has been assumed that the above has been
settled by offsets against amounts payable to Southern Coastal
Development Inc. the operator of Shoats Creek-in connection with
the transaction with them, while remaining outstandings from the
other transaction are included as a deduction from trade
payables.
FUTURE PROSPECTS
Post period end the Group has continued to implement further
steps to improve operational and financial performance in the
USA, and the recent progress at
Shoats Creek will be an important driver of this change. At
the same time, steps being taken now will, it is hoped, soon lead
to the divestiture of non-core assets. Taken together is
expected that the benefits of these actions will lead to improved
results for the second half of the year and beyond.
Ross Warner
Eddie Gonzalez
Chairman
Chief Executive Officer
30 September 2016
30 September 2016
A copy of this announcement and the Interim results will be
available on the Company's website. For further information
visit www.Mayan energy.com or contact the following:
Eddie Gonzalez |
Mayan Energy Ltd |
+ 1 469 394 2008 |
Ross Warner |
Mayan Energy Ltd |
+44 7760 487 769 |
Roland Cornish |
Beaumont Cornish Ltd |
+44 20 7628 3396 |
James Biddle |
Beaumont Cornish Ltd |
+44 20 7628 3396 |
Elliot Hance |
Beaufort Securities Ltd |
+44 20 7382 8300 |
Nick Bealer |
Cornhill Capital Limited |
+44 20 7710 9612 |
Elisabeth Cowell |
St Brides Partners Limited |
+44 20 7236 1177 |
Notes:
Mayan Energy Limited is an AIM listed (London Stock Exchange)
oil and gas energy company with a vision of building a midstream
service (oil and gas waste management) and downstream operations
business in Mexico ,exploiting the
opportunities arising from the liberalisation of that country’s
energy sector. This vision will complement the Company’s
present operations which are focussed on the redevelopment and
enhancement of its upstream oil and gas interests in Oklahoma and Louisiana.
CONDENSED CONSOLIDATED INTERIM
FINANCIAL STATEMENTS
Consolidated Statement of
Comprehensive Income
for the Interim six months period
ended 30 June 2016
|
|
Six Months to |
Six Months to |
Year Ended |
|
|
30 June |
30 June |
31-Dec |
|
Notes |
2016 |
2015 |
2015 |
|
|
(Unaudited) |
(Unaudited) |
(Audited) |
|
|
US$ 000’s |
US$ 000’s |
US$ 000’s |
|
|
|
|
|
Revenue |
|
50 |
349 |
841 |
Cost
of Sales |
|
(241) |
(599) |
(961) |
Gross
Profit |
|
(191) |
(250) |
(120) |
Other
Operating Income |
|
|
- |
|
Administrative expenses |
|
|
|
|
Impairment of property, plant and equipment |
|
- |
- |
(1,361) |
Other
administrative expenses |
|
(1,064) |
(1,537) |
(4,299) |
Total Administrative expenses |
|
(1,064) |
(1,537) |
(5,660) |
Operating loss |
|
(1,255) |
(1,787) |
(5,780) |
|
|
|
|
|
Finance Income |
|
- |
3 |
20 |
Finance Costs |
|
(24) |
(357) |
(428) |
Loss before income tax |
|
(1,279) |
(2,141) |
(6,188) |
|
|
|
|
|
Income
tax expense |
|
- |
- |
- |
Loss for the period from continuing operations |
|
(1,279) |
(2,141) |
(6,188) |
|
|
|
|
|
Attributable to owners of the parent |
|
(1,279) |
(2,141) |
(6,137) |
Attributable to non-controlling interest |
|
- |
- |
(51) |
Loss for the period from continuing operations |
|
(1,279) |
(2,141) |
(6,188) |
|
|
|
|
|
Other comprehensive income |
|
|
|
|
Items that may be reclassified subsequently to profit or
loss: |
|
|
|
|
Currency translation differences |
|
- |
164 |
254 |
Revaluation gains |
|
- |
66 |
- |
Other comprehensive income for the period, net of tax |
|
(1,279) |
(1,911) |
(5,934) |
|
|
|
|
|
Total comprehensive income for the period |
|
|
|
|
Attributable to owners of the parent |
|
(1,279) |
(1,911) |
(5,883) |
Attributable to non-controlling interest |
|
|
- |
(51) |
Loss per share from continuing and discontinued
operations |
|
(1,279) |
(1,911) |
(5,934) |
attributable to the owners of the parent during the
period |
|
|
|
|
(expressed in cents per share) |
|
|
|
|
|
|
|
|
|
-
Basic and diluted |
4 |
-0.0167 |
-0.0554 |
-0.1234 |
Group Statement of Financial
Position
As at 30 June
2016
|
|
Six Months to |
Six Months to |
Year to |
|
|
30 June |
30 June |
31 Dec |
|
Notes |
2016 |
2015 |
2015 |
|
|
(Unaudited) |
(Unaudited) |
Audited |
|
|
US$ 000’s |
US$ 000’s |
US$ 000’s |
ASSETS |
|
|
|
|
Non-current assets |
|
|
|
|
Property, plant and equipment |
|
6,141 |
5,522 |
6,601 |
Available for sale investments |
|
- |
534 |
- |
|
|
|
|
|
Total non-current assets |
|
6,141 |
6,056 |
6,601 |
|
|
|
|
|
Current assets |
|
|
|
|
Inventories |
|
18 |
33 |
31 |
Trade
and other receivables |
|
331 |
464 |
325 |
Available for sale financial investments |
|
- |
- |
- |
Cash
& cash equivalents |
|
50 |
2,348 |
91 |
|
|
|
|
|
Total current assets |
|
399 |
2,845 |
447 |
|
|
|
|
|
TOTAL ASSETS |
|
6,540 |
8,901 |
7,048 |
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
Non-Current Liabilities |
|
|
|
|
Provisions |
|
(684) |
(684) |
(1,030) |
|
|
|
|
|
Total
non-current liabilities |
|
(684) |
(684) |
(1,030) |
|
|
|
|
|
Current liabilities |
|
|
|
|
Trade
and other payables |
|
(1,861) |
(1,719) |
(2,006) |
Borrowings |
|
- |
(361) |
(236) |
Provisions |
|
(566) |
(160) |
(220) |
|
|
|
|
|
Total current liabilities |
|
(2,427) |
(2,240) |
(2,462) |
|
|
|
|
|
TOTAL LIABILITIES |
|
(3,111) |
(2,924) |
(3,492) |
|
|
|
|
|
NET
ASSETS |
|
3,429 |
5,977 |
3,556 |
|
|
|
|
|
EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT |
|
|
|
|
Share
Capital |
5 |
- |
- |
- |
Share
premium |
|
31,800 |
29,363 |
30,633 |
Foreign exchange reserve |
|
314 |
239 |
329 |
Reverse acquisition reserve |
|
(8,202) |
(8,202) |
(8,202) |
Retained earnings |
|
(20,792) |
(15,423) |
(19,513) |
|
|
|
|
|
Total Equity attributable to the equity owners of the
parent |
3,120 |
5,977 |
3,247 |
|
|
|
|
|
Non-controlling interest |
|
309 |
- |
309 |
TOTAL EQUITY |
|
3,429 |
5,977 |
3,556 |
Group Statement of changes in
equity
For the six months interim period
ended 30 June 2016
|
Share
capital |
Share
premium |
Foreign exchange reserve |
Reverse Acquisition Reserve |
Retained earnings |
Non-Controlling Interests |
Total
equity |
|
US$ 000’s |
US$ 000’s |
US$ 000’s |
US$ 000’s |
US$ 000’s |
US$ 000’s |
US$ 000’s |
As
at 1 January 2015 (audited) |
- |
21,244 |
75 |
(8,202) |
(13,711) |
|
(594) |
Loss
for the period |
- |
- |
- |
- |
(2,141) |
- |
(2,141) |
Items that may be reclassified subsequently to profit or
loss |
|
|
|
|
|
- |
- |
Gain
on available for sale investments |
- |
- |
- |
- |
66 |
- |
66 |
Currency translation differences |
- |
- |
164 |
- |
- |
- |
164 |
Total comprehensive income for the period |
- |
|
164 |
- |
(2,075) |
|
(1,911) |
Issue
of Shares |
- |
9,030 |
- |
- |
- |
- |
9,030 |
Share
issue costs |
- |
(621) |
- |
- |
- |
- |
(621) |
Issue
of warrants |
- |
(290) |
- |
- |
363 |
- |
73 |
As
at 30 June 2015 (unaudited) |
- |
29,363 |
239 |
(8,202) |
(15,423) |
|
5,977 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
at 1 January 2016 (audited) |
- |
30,633 |
329 |
(8,202) |
(19,513) |
309 |
3,556 |
Loss
for the period |
- |
- |
(15) |
- |
(1,279) |
- |
(1,294) |
Items that may be reclassified subsequently to profit or
loss |
|
|
|
|
|
|
- |
Gain
on available for sale investments |
- |
- |
- |
- |
- |
- |
- |
Currency translation differences |
- |
- |
- |
- |
- |
- |
- |
Total comprehensive income for the period |
- |
- |
(15) |
- |
(1,279) |
- |
(1,294) |
Issue
of Shares |
- |
1,455 |
- |
- |
- |
- |
1,455 |
Share
issue costs |
- |
(288) |
- |
- |
- |
- |
(288) |
As
at 30 June 2016 (unaudited) |
- |
31,800 |
314 |
(8,202) |
(20,792) |
309 |
3,429 |
Group Statement of Cash Flows for the
six months interim period ended 30 June
2016
|
|
Six Months to |
Six Months to |
Year to |
|
|
30 June |
30 June |
31 Dec |
|
|
2016 |
2015 |
2015 |
|
|
(Unaudited) |
(Unaudited) |
Audited |
|
|
US$ 000’s |
US$ 000’s |
US$ 000’s |
Cash flows from operating activities |
|
|
|
|
|
|
|
|
|
(Loss)
before tax |
|
(1,279) |
(2,141) |
(6,188) |
|
|
|
|
|
Adjustments for: |
|
|
|
|
Depreciation |
|
- |
50 |
- |
Impairment |
|
- |
- |
1,359 |
Loss
on disposal of property, plant and equipment |
|
- |
66 |
- |
Share
based payment expense |
|
- |
83 |
- |
Finance cost |
|
24 |
357 |
428 |
Finance income |
|
- |
(3) |
(20) |
|
|
|
|
|
Operating loss before changes in working capital |
|
(1,255) |
(1,588) |
(4,421) |
|
|
|
|
|
Change in working capital items |
|
|
|
|
Decrease/(increase) in inventories |
|
13 |
18 |
20 |
(Increase)/decrease in trade and other receivables |
|
(6) |
(41) |
68 |
(Decrease)/increase in trade and other payables |
|
(73) |
(141) |
(47) |
Net
cash used in operating activities |
|
(1,321) |
(1,752) |
(4,380) |
|
|
|
|
|
Cash flows used in investing activities |
|
|
|
|
Acquisition of subsidiary (net of cash) |
|
- |
1 |
(360) |
Purchases of property, plant and equipment |
|
- |
(56) |
(1,153) |
Exploration and evaluation -tangible assets |
|
(43) |
- |
- |
Proceeds from farm-in/sale |
|
(100) |
45 |
- |
Purchase of available for sale investments |
|
- |
(468) |
- |
Interest received |
|
- |
3 |
- |
Net
cash used in investing activities |
|
(143) |
(475) |
(1,513) |
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
Proceeds from issue of share capital |
|
1,539 |
6,785 |
7,999 |
Share
issue costs |
|
(288) |
(621) |
(703) |
Repayment of borrowings |
|
211 |
(1,579) |
(1,311) |
Finance cost |
|
(24) |
(36) |
(22) |
|
|
|
|
|
Net
cash generated from financing activities |
|
1,438 |
4,549 |
5,963 |
|
|
|
|
|
Net
increase in cash and cash equivalents |
|
(26) |
2,322 |
70 |
Cash
and cash equivalents at beginning of period |
|
91 |
5 |
5 |
Effect
of foreign exchange rate changes |
|
(15) |
21 |
16 |
Cash and cash equivalents at end of period |
|
50 |
2,348 |
91 |
Notes to the consolidated financial
statements (unaudited)
For the six months ended 30 June 2016
1.Basis of presentation
The condensed consolidated interim financial statements has been
prepared under the historical cost convention and on a going
concern basis and in accordance with International Financial
Reporting Standards and IFRIC interpretations adopted for use in
the European Union (“IFRS”).
The condensed consolidated interim financial statements
contained in this document do not constitute statutory accounts,
for the current reporting period, or for earlier periods, but is
derived from those accounts where applicable. In the opinion
of the directors, the condensed consolidated interim financial
statements fairly presents the financial position, result of
operations and cash flows for the period.
A copy of this Interim Financial Report is available on the
Company’s website: http://www.mayanenergy.co.uk/ and was approved
by the Board of Directors on 30 September
2016.
Statement of compliance
The condensed consolidated interim financial statements have
been prepared in accordance with the requirements of the AIM Rules
for Companies. As permitted, the Company has chosen not to
adopt IAS 34 “Interim Financial Statements” in preparing these
interim condensed consolidated interim financial statements.
The condensed interim financial statements should be read in
conjunction with the annual financial statements for the year ended
31 December 2015, which have been
prepared in accordance with IFRS as adopted by the European
Union.
Accounting policies
The condensed consolidated interim financial statements for the
period ended 30 June 2016 has not
been audited or reviewed in accordance with the International
Standard on Review Engagements 2410 issued by the Auditing
Practices Board. The figures were prepared using applicable
accounting policies and practices consistent with those adopted in
the statutory annual financial statements for the year ended
31 December 2016.
2.Financial risk management and financial instruments
Risks and
uncertainties
The Board continually assesses and monitors the key risks of the
business. The key risks that could affect the Group’s medium
term performance and the factors that mitigate those risks have not
substantially changed from those set out in the Group’s 2015 Annual
Report and Financial Statements, a copy of which is available from
the Group’s website: www.mayanenergy.co.uk. The key financial
risks are market risk (including oil price and currency risk),
credit risk and liquidity.
Going concern
The Group has ambitious plans and the Board recognises that
further funds will be required in order to realise them. The
Group has a track record of using a variety of mechanisms to fund
its commitments, whether it is through operational cash flow, new
equity, farm-ins and disposals. This flexibility gives the
Directors discretion around when expenditure is incurred, but it is
probable that further equity finance will be required at some point
during the next 12 months.
The Board is confident however, that capital will be available
to allow it to realise its strategic goals and that the Company
will have the necessary resources available to finance its future
working capital and discretionary capital expenditures beyond the
period of 12 months of the date of this report. Accordingly
these interim financial statements have been prepared on a going
concern basis.
3.Segmental analysis
In the opinion of the Directors, as at the 30 June 2016 the operations of the Group comprise
one single operating segment comprising exploration, production,
development and sale of hydrocarbons and related activities.
The majority of the Group's operations in the period related to one
geographic area: the United States of
America (“USA”). The Group has head office operations
in the United Kingdom and
Mexico but the quantitative
thresholds of IFRS 8 are only met for the USA, which is therefore the Group's one
reportable segment and the Directors consider that the primary
financial statements presented substantially reflect all the
activities of this single operating segment.
4.Loss per share
The calculation of earnings per share is based on the loss
attributable to equity holders divided by the weighted average
number of share in issue during the period:
|
Six Months to |
Six Months to |
Year to |
|
30 June |
30 June |
31 Dec |
|
2016 |
2015 |
2015 |
|
(Unaudited) |
(Unaudited) |
(Audited) |
|
US$ 000’s |
US$ 000’s |
US$ 000’s |
Net
loss after taxation |
(1,279) |
(2,141) |
(6,188) |
|
|
|
|
Weighted average
number of ordinary shares used in calculating basic loss per
share |
7,647,467,858 |
3,867,646,529 |
5,015,981,767 |
Basic
& diluted loss per share (expressed in cents) |
-0.0167 |
-0.0554 |
-0.1234 |
As the inclusion of the potential ordinary shares would result
in a decrease in the earnings per share, they are considered to be
anti-dilutive, and as such, a diluted loss per share is not
included.
5.Share capital
The authorised share capital of the Company and the called up
and fully paid amounts at 30 June
2016 were as follows:
A) Authorised |
|
US$'000s |
Unlimited Ordinary shares of no par value |
- |
|
|
|
B) Called up,
allotted, issued and fully paid |
Number of shares |
Nominal value |
As at 1 January
2016 |
6,981,874,520 |
- |
Additions: |
|
|
18/Mar/16 |
100,505,706 |
- |
8/Apr/16 |
1,428,571,429 |
- |
26/Apr/16 |
1,587,301,587 |
- |
As at 30 June
2016 |
10,098,253,242 |
- |
Shares issued on 18 March 2016
were issued at a price of US$ 0.00083
cents per share, of this US$
67,200 of shares was in settlement of the acquisition of an
additional 20% WI in the Cockfield- Shoats Creek and US$ 17,063 in settlement of third party creditor
services.
Shares issued on 8 April 2016 were
issued at a price of 0.0315 pence per
share, for a cash consideration of £450,000 before share issue
costs.
Shares issued on 26 April 2016
were issued at a price of 0.0315
pence per share, for a cash consideration of £500,000 before
share issue costs.
6.Share based payments
Total Options in issue
During the six month period ended 30 June
2016 no options were granted, exercised, or forfeited.
Movements on the number of share options and their exercise price
are as follows:
|
Weighted Average Exercise Price |
6 months to |
Weighted Average Exercise Price |
Year to |
|
30 June |
31 December |
|
2016 |
2015 |
|
(Unaudited) |
(Audited) |
|
Pence |
No of
Options
000’s |
Pence |
No of
Options
000’s |
Beginning of period |
1.86 |
49,000 |
1.86 |
49,000 |
Movement |
- |
- |
- |
- |
End
of period |
1.86 |
49,000 |
1.86 |
49,000 |
Total share warrants in issue
During the six month period ended 30 June
2016 158,730,000 warrants were granted, 26,669,000 lapsed
and none were exercised or forfeited.
|
Weighted Average Exercise Price |
6 months to |
Weighted Average Exercise Price |
Year to |
|
30 June |
31 December |
|
2016 |
2015 |
|
(Unaudited) |
(Audited) |
|
Pence |
No of
Warrants
000’s |
Pence |
No of
Warrants
000’s |
Beginning of period |
0.26 |
726,637 |
0.97 |
89,851 |
Cancelled |
- |
- |
- |
- |
Exercised |
- |
- |
0 |
(12,500) |
Modified |
- |
- |
- |
- |
Lapsed |
0.44 |
(26,669) |
- |
- |
Granted |
0.03 |
158,730 |
0.15 |
649,286 |
End
of period |
0.21 |
858,698 |
0.26 |
726,637 |
The parameters used to ascertain the fair value of share
options, are as found in the audited consolidated financial
statements for the year ended 31 Dec
2015.
The fair value charged to the Group Statement of Changes in
Equity for the six month period ended 30
June 2016 was $nil (2015: $nil).
The Group recognised $Nil (2015: $363,000) related to equity-settled share based
payment transactions during the period, of which $Nil (2015: $Nil)
was charged to the convertible loan account as it related to costs
of issue, while $Nil (2015: $290,134)
was charged to share premium and $Nil (2015: $72,866) was expensed.
7.Investment in group companies
At 30 June 2016, the Group
consisted of the following wholly owned subsidiary companies:
Name |
Country of incorporation |
Interest held |
Nature of business |
Northcote Services LLC* |
USA |
100% |
Administrative Company |
Northcote Energy Limited |
Cayman
Isle |
100% |
Holding Company |
Northcote USA Inc. |
USA |
100% |
Holding Company |
NAP
Acquisition Inc. |
USA |
100% |
Holding Company |
Northcote Mexico, LLC * |
USA |
100% |
Holding Company |
Oklahoma Energy LLC* |
USA |
100% |
Holds
Oklahoma (Libby/Tinker) interest |
Northcote Cleveland LLC* |
USA |
100% |
Holds
Oklahoma (Zink Ranch) interest |
Northcote Oklahoma LLC* |
USA |
100% |
Holds
Oklahoma (Horizon and other interests) |
Northcote Minerals LLC* |
USA |
100% |
Holds
Royalty interests |
Northcote Texas LLC* |
USA |
100% |
Holds
South Weslaco interest |
Northcote Energy Mexico S de RL de CV |
Mexico |
100% |
Mexican Holding Company |
NAP
USA Inc. |
USA |
100% |
Oil
& Gas trading company |
Northcote Osage LLC* |
USA |
100% |
Oklahoma operating Company |
NCLA
Operating LLC* |
USA |
100% |
Shoats
Creek related activity |
Northcote Louisiana Operating LLC* |
USA |
100% |
Shoats
Creek related activity |
Northcote Louisiana, LLC * |
USA |
100% |
Shoats
Creek related activity |
Stillwater Operating LLC * |
USA |
100% |
Shoats
Creek related activity |
Springer Energy Partners LP ** |
USA |
53% |
General Partner of Springer Energy Partners, LP |
Mayan
Drilling Fluids, S.A.P.I. de C.V. |
Mexico |
51% |
JV
holding co for Mexico remediation project |
Springer Energy Development, LLC * |
USA |
33.33% |
Limited partnership |
Northcote Energy Development LLC* |
USA |
100% |
Dormant |
Northcote Holdings LLC * |
USA |
100% |
Dormant |
Northcote Operating, LLC |
USA |
100% |
Dormant |
Northcote Gas Marketing LLC * |
USA |
100% |
Dormant |
Northcote Drilling Partners LP ** |
USA |
100% |
Dormant |
Prosper Petro, LLC * |
USA |
100% |
Dormant |
Prosper Station 1, JV LLC * |
USA |
100% |
Dormant |
Northcote Drilling Ventures, LLC * |
USA |
100% |
Dormant |
NCTX
Operating LLC * |
USA |
100% |
Dormant |
* An LLC is not a corporation, it is a legal form of company
that provides limited liability to Mayan, its owner and general
manager.
**An LP is not a corporation, it is a legal form of partnership
that gives the partners limited liability and is managed by a
general manager.
8.Contingent Liability
As a consequence of its acquisition of the Shoats Creek
Properties from Aminex USA Inc. in
2014, Mayan has a US$10 per barrel
Production Payment Obligation to Aminex USA Inc. on Barrels Oil Equivalent (“BOE”) oil
produced from Mayan’s working interest barrels in that field.
On 29 September 2015, and reflecting
weaknesses in oil prices at that time, the production payment
obligation was restructured with the price to be paid defined by
the trailing 30 day average WTI oil price as follows:
•
Where the price is greater than $65.00 the payment would be $10 per BOE
•
Where the price is greater than $45.00 but less than $65.00 the payment would be $5 per BOE
•
Where the price is less than $45.00
the payment would be $2 per BOE
As payment of the production payment obligation is non-recourse
and is only payable out of production and as production is based on
variables outside of the Company’s control, no provision has been
booked in respect of future barrels and each production payment
will be charged to the Income Statement as incurred.
9.Events after the reporting date
In July 2016 the Company secured a
contract to sell natural gas from the Shoats Creek Field, and
subject to necessary investment to install gas lines that would tie
in to the gas tap expected first revenues to be in November
2016. The Company believes it is on track to achieve this
target.
In August 2016 Northcote Energy
Limited changed its name to Mayan Energy Limited, to reflect the
Company’s commitment to widening its exposure in Mexico.
In September 2016 the Company
announced the recruitment of a new management team to lead its
United States and Mexican
Operations. This move saw the stepping down of Randy Connally and Kevin
Green from the Board, and the appointments of Eddie Gonzalez as CEO, and J.D McGraw as a Non-Executive Director, and
Stephen Brock as Vice President of
Operations.
At the same time the Company raised £500,000 through a Placing
to investors, with warrants issued to its broker to subscribe for
new shares in the Company, Ordinary Shares issued as adviser fees
to the placing. Existing options to Directors and management
were also cancelled, and replaced by a new option scheme.
More details of the above events were released by RNS and are
also available from the Company’s website www.Mayanenergy.com
This information is provided by
RNS
The company news service from the
London Stock Exchange
END