TIDMNAUT
RNS Number : 6959H
Nautilus Marine Services PLC
14 March 2018
Immediate Release 14 March 2018
NAUTILUS MARINE SERVICES PLC
(the "Group" or "Nautilus")
AUDITED FINAL RESULTS FOR THE YEARED 31 DECEMBER 2017
Nautilus Marine Services PLC (AIM: NAUT), the Group focused on
making strategic investments in service providers, technologies,
and assets to offer integrated and innovative solutions for
multiple offshore service industries, today announces its audited
final results for the year ended 31 December 2017 (the
"Period").
Highlights:
- Change of name from Global Energy Development PLC and
completion of a fundamental change of the business with its first
acquisition of offshore service vessels during February 2017
- Cash balance at 31 December 2017 of US$16.8 million
- Positive working capital of US$20 million positions the Group
to take advantage of investment and acquisition opportunities of
distressed service companies, technologies and assets within the
offshore industry
John Payne, Managing Director of Nautilus, commented:
"2017 was a challenging year for offshore service providers both
in the US Gulf of Mexico and globally. We have reviewed the Gulf of
Mexico and international markets during this past year and will
continue these efforts during 2018 in order to identify investment
prospects in offshore service-providers with commercialised
offshore technologies which have been able to maintain strong
customer relationships despite the downturn."
"With our expertise and available capital, we believe we can
build an offshore service group by connecting synergistic
technologies and helping to expand those services into new regions
as well as providing existing customers with a wider range of
services. Through balance sheet restructuring, streamlining of
administrative functions and capital infusion for expanded
services, Nautilus aims to develop as a well-balanced and unique
service provider for offshore projects with the intention of
creating value for our shareholders."
Enquiries:
Nautilus Marine Services PLC
nautilusirinfo@nmsplc.com
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www.nautilusmarineplc.com
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finnCap Ltd
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Christopher Raggett/Scott Mathieson/Kate
Bannatyne (Corporate Finance) 020 7220 0500
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Emily Morris (Corporate Broking)
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Yellow Jersey
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+44 (0) 7710
Tim Thompson/ Henry Wilkinson 718 649
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Forward-looking statements
This annual report may include statements that are, or may be
deemed to be, "forward-looking statements". These forward-looking
statements can be identified by the use of forward-looking
terminology, including the terms "believes", "estimates", "plans",
"projects", "anticipates", "expects", "intends", "may", "will" or
"should" or, in each case, their negative or other variations or
comparable terminology, or by discussions of strategy, plans,
objectives, goals, future events or intentions. These
forward-looking statements include all matters that are not
historical facts. They appear in a number of places throughout this
annual report and include, but are not limited to, statements
regarding the Group's intentions, beliefs or current expectations
concerning, among other things, the Group's results of operations,
financial position, liquidity, prospects, growth, strategies and
expectations of the industry. By their nature, forward-looking
statements involve risk and uncertainty because they relate to
future events and circumstances. Forward-looking statements are not
guarantees of future performance and the development of the markets
and the industries in which the Group operates may differ
materially from those described in, or suggested by, any
forward-looking statements contained in this annual report. In
addition, even if the development of the markets and the industries
in which the Group operates are consistent with the forward-looking
statements contained in this annual report, those developments may
not be indicative of developments in subsequent periods. A number
of factors could cause developments to differ materially from those
expressed or implied by the forward-looking statements including,
without limitation, general economic and business conditions,
industry trends, competition, commodity prices, changes in law or
regulation, currency fluctuations (including the US dollar),
changes in its business strategy, political and economic
uncertainty. Save as required by law, the Company is under no
obligation to update the information contained in this annual
report.
Past performance cannot be relied on as a guide to future
performance.
Chairman's Statement and Review of Operations
2017 Strategic Initiatives
The Group divested of substantially all of its producing
Colombian oil and gas assets in the fourth quarter of 2014 and
subsequently performed an analysis of the impact of low oil pricing
on the oil and gas industry and held discussions with a variety of
companies. These activities culminated with the decision to
purchase distressed offshore service assets. During 2016, the Group
performed the requisite due diligence activities on a number of
opportunities and completed its initial acquisition in February
2017 of distressed assets from two companies (the "Transaction").
This was considered to be a fundamental change of business and was
approved by shareholders. The Transaction resulted in the receipt
of $10.5 million in cash proceeds and twelve offshore service
vessels along with related dive equipment and inventory valued at
$13.6 million in exchange for the issuance of deeply-discounted
convertible loan notes with a fair value of $16.1 million and debt
forgiveness of $8 million.
This fundamental change of business shifted the Group's focus
from Latin American oil and gas exploration and production to the
global offshore service industry in order to take advantage of
distressed offshore opportunities. The Group intends to continue to
purchase distressed assets which may be paired with technology and
established service providers to build an innovative offshore
service company. As a result of the oil and gas asset divestiture
in late 2014 as well as the placement of convertible notes in early
2017, the Group has available cash resources to identify and
complete its initial opportunistic acquisitions.
Following the completion of the Transaction in February, the
Group has spent considerable time and resources assessing and
evaluating the acquired assets, as well as their best use, given
the near-term outlook for the offshore service industry. As a
result of this review, and as outlined at the time of the
Transaction, the Group concluded to transition the entire acquired
fleet into a laid-up status until industry conditions improve in
order to conserve cash and allow its management team to focus on
further acquisition opportunities. The Group continues to monitor
the economic environment for recovery signals which would indicate
at which time, the assets may either be profitably operated or sold
at a premium to their initial cost.
2017 Financial Results
Financial Position
The Group had a positive working capital position of $20 million
at 31 December 2017 due to recent divestitures and issuance of the
Series A, B, and C convertible loan notes pursuant to the
Transaction. The convertible loan notes carry a nominal value of
$31.6 million and were issued at an approximate discount of $15.5
million (49%) based on an independent, third party valuation of the
note instruments. This discount on the convertible loan notes will
be recognised as an accretion expense over their respective terms,
which range from 10 to 15 years. Further details of the terms of
the notes such as conversion pricing and interest rates are set out
in note 12 to the financial statements.
As part of the Transaction, and in exchange for the receipt of
vessels, the Group amended its note receivable from Everest Hill
Group, Inc. by reducing the outstanding principal balance from $12
million to $4 million, extending the maturity date from 15 January
2017 to 15 September 2018, and lowering the interest rate from 12
per cent per annum to 8 per cent per annum.
Property, plant and equipment increased significantly during the
year as the Group took delivery of vessels, equipment and inventory
valued at $13.6 million. The Group has also recognised a reversal
of a previous impairment on its Bolivar assets of $4 million due to
a view of stabilisation of increased oil pricing at year end. Such
reversal was determined based on a third-party valuation and
Management's estimates of contingent reserves within this contract.
The Bocachico assets remained uneconomic at year-end pricing and
remained fully impaired.
Results of Operations
The Group's operating expenses increased substantially as
compared to the prior year primarily due to the acquired assets.
Operating expenses increased from $489 thousand during the prior
year period to $3.7 million during the period. Vessel operating
costs comprised $2.8 million of this increase, and the cost of
sales for the Group's legacy oil and gas assets in Colombia
comprised $377 thousand of the increase.
Vessel operating costs for the period were comprised of $566
thousand in costs related to the initial receipt, transition and
assessment of the vessels and equipment, $768 thousand in dock and
facility costs, $352 thousand in vessel crewing and technical
management fees, $571 in allocated labor and management costs, and
$586 thousand in insurance, maintenance and other expenses. The
Group also recorded depreciation charges on the acquired vessels
and equipment of $1.8 million. Following completion of the initial
assessment and transition during the first half of 2017, vessel
operating costs were significantly reduced primarily as a result of
lower crewing and technical management costs as the scope of these
activities were reduced following the initial assessment and
evaluation of the acquired assets. In late 2017, the Group moved
the entire fleet to a laid-up status and expects its vessel
operating costs to remain low until the vessels are returned to
service
Oil and gas operating costs increased during the year primarily
due to one-time severance and inventory obsolescence charges within
the Bocachico contract area. These charges were due to the Group's
decision to shut in its production while this property remains
uneconomic. The Group expects cost savings while both contract
areas remain shut-in; however, it will continue to incur security,
environmental, and maintenance costs at both of these locations to
ensure the contracts remain secure, compliant and in good standing
with the local authorities and communities. Oil and gas operating
costs for the year were more than offset by the $4 million in
partial reversal of the prior years' impairment charges due to a
view of stabilisation of increased oil pricing at 31 December
2017.
Administrative expenses increased slightly to $6.3 million
compared to $6.1 million for the prior year. The increase was
primarily due to increased staffing, consulting, and professional
fees while the Group integrated the acquisitions and altered the
organisational structure for its new operating activities. Because
the Group's integration efforts for the Transaction were
substantially completed during the year, staffing, consulting and
professional fees will decrease significantly in the future if no
further acquisitions are made.
Finance income decreased by $908 thousand during the year as a
result of the reduction in the outstanding balance down to $4
million and the interest rate down to 8% on the Group's note
receivable from Everest Hill Group, Inc. Interest expense and
accretion of discount on the convertible loan notes issued during
2017 resulted in increased finance expense of $1.8 million.
Interest and accretion charges were partially offset by a $543 gain
on the embedded derivatives within the convertible notes due to a
decrease in the fair value of the conversion option of the notes as
determined by a third-party valuation firm.
Conclusion
The Group's activities during 2017 successfully rebranded it as
an offshore service provider and established the necessary
foundations for growth. Management believes that in 2018 Nautilus
will take significant steps towards its ultimate objective of
building an international offshore service group. Importantly, the
management team remains focused on closely monitoring its costs in
order to preserve its liquidity for acquisition efforts.
Nautilus will continue its efforts to identify profitable
companies, innovative technologies and distressed assets. These
synergistic pairings are expected to provide revenue growth as the
offshore industry recovers. Simultaneously, Nautilus hopes to
expand the geographic footprint of the Group, leading to further
growth in value.
Mikel Faulkner
Chairman
13 March 2018
PRIMARY FINANCIAL STATEMENTS
Consolidated Statement of Comprehensive Income
For the year ended 31 December 2017
2017 2016
$'000 $'000
Continuing Operations
---------------------------------------------------- --------------- -----------
Revenue 250 178
Cost of Sales (5,552) (602)
---------------------------------------------------- --------------- -----------
Gross loss (5,302) (424)
---------------------------------------------------- --------------- -----------
Gain/(loss) on disposal of assets 100 (1)
Administrative expenses (6,336) (6,112)
Impairment reversal/(charge) 3,968 (703)
---------------------------------------------------- --------------- -----------
Operating loss from continuing operations (7,570) (7,240)
---------------------------------------------------- --------------- -----------
Finance income and other 877 1,242
Finance expense and other (2,074) (285)
---------------------------------------------------- --------------- -----------
Loss before taxation from continuing operations (8,767) (6,283)
---------------------------------------------------- --------------- -----------
Tax expense (179) (197)
---------------------------------------------------- --------------- -----------
Loss from continuing operations, net of
tax (8,946) (6,480)
---------------------------------------------------- --------------- -----------
Loss from discontinued operations, net
of tax (13) (147)
---------------------------------------------------- --------------- -----------
Total loss for the year attributable to
the equity owners of the parent (8,959) (6,627)
----------------------------------------------------
Other comprehensive income/(loss) - -
Total comprehensive loss for the year attributable
to the equity owners of the parent (8,959) (6,627)
---------------------------------------------------- --------------- -----------
Loss per share for continuing operations
- Basic and diluted $(0.25) $(0.18)
Loss per share for discontinued operations
- Basic and diluted $(0.00) $(0.00)
Total loss per share
- Basic and diluted $(0.25) $(0.18)
---------------------------------------------------- --------------- -----------
Figures in thousands except for per share information.
Consolidated Statement of Financial Position
As at 31 December 2017
2017 2016
$'000 $'000
-------------------------------------- ----------------------- ----------------
Assets
Non-current assets
Intangible assets 130 144
Other non-current assets 946 888
Property, plant and equipment 15,427 21
-------------------------------------- ----------------------- ----------------
Total non-current assets 16,503 1,053
-------------------------------------- ----------------------- ----------------
Current assets
Inventories 146 259
Note receivable and accrued interest 4,013 12,060
Trade and other receivables 7 66
Prepayments and other assets 303 283
Cash and cash equivalents 16,758 16,446
-------------------------------------- ----------------------- ----------------
Total current assets 21,227 29,114
-------------------------------------- ----------------------- ----------------
Total assets 37,730 30,167
-------------------------------------- ----------------------- ----------------
Liabilities
Non-current liabilities
Convertible loan notes and accrued
interest (15,809) -
Long-term provisions (2,712) (2,161)
-------------------------------------- ----------------------- ----------------
Total non-current liabilities (18,521) (2,161)
-------------------------------------- ----------------------- ----------------
Current liabilities
Trade and other payables (533) (1,306)
Short-term provisions (361) (948)
Corporate and equity tax liabilities (55) (116)
Derivative financial liabilities (262) -
-------------------------------------- ----------------------- ----------------
Total current liabilities (1,211) (2,370)
-------------------------------------- ----------------------- ----------------
Total liabilities (19,732) (4,531)
-------------------------------------- ----------------------- ----------------
Net assets 17,998 25,636
-------------------------------------- ----------------------- ----------------
Capital and reserves attributable to
equity holders of the parent
Share capital 608 608
Share premium 27,139 27,139
Capital reserve 30,435 51,855
Other reserves 1,307 -
Accumulated losses (41,491) (53,966)
-------------------------------------- ----------------------- ----------------
Total equity 17,998 25,636
-------------------------------------- ----------------------- ----------------
Consolidated Statement of Cash Flows
For the year ended 31 December 2017
2017 2016
$'000 $'000
--------------------------------------- ------------------ --------------
Cash flows from operating
activities
Cash used by operations (10,343) (6,137)
Tax paid (continuing and
discontinued operations) (203) (201)
---------------------------------------- ------------------ --------------
Net cash used in operating
activities (10,546) (6,338)
---------------------------------------- ------------------ --------------
Cash flows from investing
activities
Placement of note receivable - (4,000)
Interest on note receivable 366 1,222
Proceeds from disposal
of assets 116 39
Purchase of intangible
assets and property, plant
and equipment (124) (85)
---------------------------------------- ------------------ --------------
Net cash provided by/(used
in) investing activities 358 (2,824)
---------------------------------------- ------------------ --------------
Cash flows from financing
activities
Issuance of convertible
loan notes pursuant to Transaction
B 10,500 -
Net cash provided by financing
activities 10,500 -
--------------------------------------- ------------------ --------------
Increase (decrease) in cash
and cash equivalents for the
year 312 (9,162)
Cash and cash equivalents
at beginning of year 16,446 25,608
Cash and cash equivalents
at the end of year 16,758 16,446
---------------------------------------- ------------------ --------------
Consolidated Statement of Changes in Equity
For the year ended 31 December 2017
Share Share Capital Other Accumulated Total
capital premium reserve reserve losses equity
$'000 $'000 $'000 $'000 $'000 $'000
--------------- ---------------- ------------------ ------------------ ------------------ ------------------ ------------------
At 1 January
2016 608 27,139 51,855 - (47,349) 32,253
Comprehensive
Loss
for the year:
Total loss for
the
year - - - - (6,627) (6,627)
Other
comprehensive
income/(loss) - - - - - -
--------------- ---------------- ------------------ ------------------ ------------------ ------------------ ------------------
Total
comprehensive
loss for the
year
attributable
to equity
owners of
the parent - - - - (6,627) (6,627)
Transaction
with owners:
Share-based
payment
- options
equity
settled - - - - 10 10
--------------- ---------------- ------------------ ------------------ ------------------ ------------------ ------------------
Other
movements
within
equity - - - - 10 10
--------------- ---------------- ------------------ ------------------ ------------------ ------------------ ------------------
At 1 January
2017 608 27,139 51,855 - (53,966) 25,636
Comprehensive
Loss
for the year:
Total loss for
the
year - - - - (8,959) (8,959)
Other
comprehensive
income/(loss) - - - - - -
--------------- ---------------- ------------------ ------------------ ------------------ ------------------ ------------------
Total
comprehensive
loss for the
year
attributable
to equity
owners of
the parent - - - - (8,959) (8,959)
Transaction
with owners:
Share-based
payment
- options
equity
settled - - - - 14 14
Capital
reserve
transfer - - (21,420) - 21,420 -
Equity
proportion of
convertible
loan note - - - 1,307 - 1,307
---------------- ------------------ ------------------ ------------------ ------------------ ------------------
Other
movements
within
equity - - (21,420) 1,307 21,434 1,321
---------------
At 31 December
2017 608 27,139 30,435 1,307 (41,491) 17,998
--------------- ---------------- ------------------ ------------------ ------------------ ------------------ ------------------
ABRIDGED NOTES TO THE PRIMARY FINANCIAL STATEMENTS
For the twelve months ended 31 December 2017
1. Accounting policies
Basis of preparation
The principal accounting policies adopted in the preparation of
the financial statements are set out below. The policies have been
consistently applied to all the years presented, unless otherwise
stated.
In forming its opinion as to going concern, the Board prepares a
working capital forecast based upon its assumptions. The Board also
prepares a number of alternative scenarios modelling the business
variables and key risks and uncertainties. Based upon these, the
Board remains confident that the Group's current cash on hand and
current cash flow from operations will enable the Group to fully
finance its future working capital and discretionary expenditures
beyond the period of 12 months of the date of this report.
The financial statements of the Group for the 12 months ended 31
December 2017 have been prepared in accordance with International
Financial Reporting Standards, International Accounting Standards
and Interpretations (collectively "IFRS") issued by the
International Accounting Standards Board ("IASB") as adopted by the
European Union.
Certain prior year amounts in the Consolidated Statement of
Financial Position and Consolidated Statement of Comprehensive
Income have been reclassified to conform with current year
presentation for the purposes of comparability. These
reclassifications include net losses on foreign currency exchange
previously presented separately within continuing operations which
are now presented within finance expense and other. In addition,
the loss on the disposal of assets previously presented within
finance expense and other has been presented separately in the
current period.
2. Acquisition of Offshore Service Vessel-Owning Companies
Shareholders approved the acquisition of offshore service
vessel-owning companies through two separate transactions on 8
February 2017, and the Company's shares were re-admitted to the
AIM, a market operated by the London Stock Exchange, as Nautilus
Marine Services PLC (LSE-AIM: "NAUT"). These two acquisitions are
described below:
Transaction A: The Group acquired three offshore service vessels
through the acquisition of vessel-owning companies from Everest
Hill Group, Inc. ("Everest"), a related party, in exchange for: (i)
forgiveness of $8 million of the outstanding principal amount of
the Note Receivable; (ii) the amendment of the terms of the Note
Receivable to reduce the interest rate from 12 per cent to 8 per
cent per annum and to extend the maturity date from 15 January 2017
to 15 September 2018; and (iii) contingent additional consideration
equal to the lower of $5 million or 75 per cent of the net cash
inflows attributable to the three vessels for the period of
eighteen months following completion of their acquisition by the
Group. Part of the existing collateral under the Note Receivable,
comprising Everest's and its affiliates' shareholdings in HKN,
which is a substantial shareholder in the Company, will remain in
place. Please see note 11 for further information on the Note
Receivable.
For accounting purposes, this acquisition has been treated as an
asset acquisition with the acquisition date fair value of $8
million in consideration issued allocated between the three
offshore service vessels acquired based on independent, third-party
valuations. The fair value of the consideration was determined to
be the value of the forgiveness of the outstanding Note Receivable.
No gain or loss was recorded on the extinguishment of the debt as a
result of the proximity of the maturity date of the original loan
and the extinguishment date upon acquisition and the amended note
terms being at arms-length terms. In addition, the fair value of
the contingent consideration related to the future net cash inflows
of the three vessels was determined to be $nil as of the
acquisition date and as at 31 December 2017. This Level 3 fair
value was based on internal probability weighted cash projections
and operating assumptions related to the three vessels (see note 14
for further information).
Transaction B: The Group acquired (i) a barge vessel through the
acquisition of Everest Vessel Holdings, LLC from a related-party,
Alan Quasha, HKN's Chairman of the Board, and (ii) eight offshore
service vessels along with related offshore dive equipment through
the acquisition of a vessel-owning company, Maritime Finance, LLC,
owned by McLarty Capital Partners ("MCP") and Caleura Limited. As
consideration, the Group issued three series of convertible loan
notes: Series A Convertible Loan Notes ("Series A Loan Notes"),
Series B Convertible Loan Notes ("Series B Loan Notes") and Series
C Convertible Loan Notes ("Series C Loan Notes"). In addition to
the acquired vessels and equipment, the Group received $10.5
million in cash. Please see note 12 for further information on the
convertible loan notes.
For accounting purposes, this acquisition has been treated as an
asset acquisition. The acquisition date fair value of $16.1 million
in consideration issued consisted of $10.5 million received in
cash, with the remaining $4 million allocated to the offshore
service vessels and $1.6 million allocated to offshore equipment
and inventory based on independent, third-party valuations. The
fair value of the convertible loan notes issued as consideration
was based on an independent, third-party valuation using a binomial
lattice model. This Level 3 fair value was calculated with inputs
such as volatility, risk-free interest rate and credit spread (see
note 14 for further information).
3. Notes to the Consolidated Statement of Cash Flows
(a) Reconciliation of loss before taxation to net cash flow used
by operations
2017 2016
$'000 $'000
------------------------------------------ -------------- -----------------
Continuing operations
Loss before tax (8,767) (6,283)
Adjustments for:
Depreciation of property, plant &
equipment 1,843 113
Amortisation of intangible assets 15 -
Gain on derivative financial instruments (543) -
(Gain)/loss on sale of assets (100) 1
Impairment (reversal)/charge (3,968) 703
Inventory obsolescense provision
and write downs 380 -
Provision for uncollectible accounts - 4
Share based expense 14 10
Finance income (366) (1,222)
Interest and accretion expense on
convertible loan notes 1,756 -
Unwinding of discount on decommissioning
provision 219 172
------------------------------------------ -------------- -----------------
Operating cash flow before movements
in working capital (9,517) (6,502)
------------------------------------------ -------------- -----------------
Decrease/(increase) in inventories 36 (13)
Decrease/(increase) in trade and
other receivables 28 (44)
(Decrease)/increase in trade and
other payables (876) 438
------------------------------------------ -------------- -----------------
Cash used in continuing operations (10,329) (6,121)
------------------------------------------ -------------- -----------------
Discontinued operations
Loss before tax (13) (147)
Adjustments for:
Provision for uncollectible accounts 1 131
------------------------------------------ -------------- -----------------
Operating cash flow before movements
in working capital (12) (16)
------------------------------------------ -------------- -----------------
Increase in trade and other receivables - (5)
(Decrease)/increase in trade and
other payables (2) 5
------------------------------------------ -------------- -----------------
Cash used in discontinued operations (14) (16)
------------------------------------------ -------------- -----------------
Cash used by operations (10,343) (6,137)
------------------------------------------ -------------- -----------------
(b) Significant non-cash transactions
During the year ended 31 December 2017, the Group acquired
property, plant and equipment comprised of offshore service vessels
and dive and operating equipment valued at $13.3 million and
inventory valued at $303 thousand through the forgiveness of $8
million of the outstanding principal amount of the Note Receivable
and issuance of convertible loan notes (see note 2 for additional
information).
(c) Reconciliation of liabilities arising from financing
activities
Non-cash changes
-------------------------------------------------------------------------------------------------
Foreign Fair
Cash exchange value Interest
flows Acquisition movement changes Payable Accretion
2016 $'000 $'000 $'000 '$'000 '$'000 '$'000 2017
------------- ------------------- -------------------- ------------------ -------------------- ------------------ --------------- ------------------ ---------------
Convertible
loan notes - 10,500 3,553 - - 1,663 93 15,809
Derivative
liabilities - - 780 25 (543) - - 262
Total
liabilities
from
financing
activities - 10,500 4,333 25 (543) 1,663 93 16,071
------------- ------------------- -------------------- ------------------ -------------------- ------------------ --------------- ------------------ ---------------
The Group had no liabilities arising from financing activities
as at 31 December 2015 or during the year ended 31 December
2016.
4. Loss per Share
Basic loss per share amounts are calculated by dividing loss for
the period attributable to ordinary equity holders of the parent by
the weighted average number of ordinary shares outstanding for the
period.
Diluted loss per share amounts are calculated by adjusting the
loss attributable to ordinary equity holders and the weighted
average number of ordinary shares outstanding for the effects of
all dilutive potential ordinary shares, comprised of those related
to convertible loan notes and share options. The convertible loan
notes are assumed to have been converted into ordinary shares and
the net loss is adjusted to eliminate the related finance costs,
including interest and accretion, and any gain or loss recognized
on the derivative financial liability related to the convertible
loan notes. The calculation of the dilutive potential ordinary
shares related to employee and Director share option plans includes
only those options with exercise prices below the average share
trading price for each period.
The following table reflects the loss and share data used in the
basic and diluted loss per share calculations:
(Figures in thousands except for share and per share information
which is disclosed in $)
2017 2016
$'000 $'000
--------------------------------- ----------------------------- -----------------------------------
Loss from continuing operations
after taxation (8,946) (6,480)
Loss from discontinued
operations after taxation (13) (147)
----------------------------- -----------------------------------
Net loss attributable
to equity holders (8,959) (6,627)
--------------------------------- ----------------------------- -----------------------------------
Loss per share for continuing
operations
- Basic and diluted $ (0.25) $ (0.18)
Loss per share for discontinued
operations
- Basic and diluted $ (0.00) $ (0.00)
Total loss per share
- Basic and diluted $ (0.25) $ (0.18)
Basic weighted average
number of shares 36,112,187 36,112,187
Dilutive potential ordinary
shares:
Employee and Director
share option plans - -
Shares on conversion
of loan notes - -
Diluted weighted average
number of shares 36,112,187 36,112,187
--------------------------------- ----------------------------- -----------------------------------
Where a loss has occurred, basic and diluted loss per share are
the same because the following potentially dilutive shares were
considered to be anti-dilutive due to the loss arising in the
period:
2017 2016
-------------------------- --------------------------------------
Employee and Director
share option plans 2,350,000 3,989,364
Shares on conversion
of loan notes 25,802,596 -
------------------------- -------------------------- --------------------------------------
5. Operating loss from continuing operations
Loss from continuing operations is stated after charging:
2017 2016
$'000 $'000
------------------------------------------ -------------- -------------
Depletion, depreciation and amortisation
(included in cost of sales):
Other property plant and equipment 1,843 113
Intangible assets 15 -
(Gain)/loss on disposal of assets (100) 1
Other cost of sales 3,694 489
Employee costs 4,515 2,829
Auditor's remuneration 409 297
Other administrative costs(1) 1,412 2,986
Impairment (reversal)/charge (3,968) 703
Total cost of sales, administrative
and other operating costs 7,820 7,418
------------------------------------------ -------------- -------------
(1) Other administrative costs in 2017 and 2016 include $329
thousand and $1.04 million, respectively, related to due diligence
and advisory costs related to the transaction (see note 2).
During the year, the Group obtained the following services from
the Group's auditors at costs as detailed below:
Analysis of auditors' remuneration
2017 2016
$'000 $'000
--------------------------------------- --------------- ---------------
Group Auditors (1)
Audit Services
Statutory audit 98 71
Review of interim report 22 13
Non-audit Services
Transaction-related due diligence
services (2) 7 129
Other services (tax and consulting) 122 5
Other Auditors
Prior year statutory audit 7 -
Audit of subidiaries pursuant to
legislation 12 12
Transaction-related due diligence
services (2) 52 -
Other services (tax and consulting) 89 67
--------------------------------------- --------------- ---------------
Total auditors' remuneration 409 297
--------------------------------------- --------------- ---------------
(1) The Group had a change in Group auditor for fiscal year
2017. The Group auditor for 2017 and 2016 was BDO LLP and RSM UK
Audit LLP, respectively.
(2) See note 2 for additional information regarding the
transaction.
6. Employee costs
Group employee costs (including Executive Directors) during the
year amounted to:
2017 2016
$'000 $'000
----------------------------------------------- -------------- --------------
Wages and salaries 3,776 2,382
Social security costs and other payroll
taxes 251 199
Insurance and other benefits 319 179
Company contributions to defined contribution
plan 155 59
Share-based payments - options - equity
settled 14 10
----------------------------------------------- -------------- --------------
Total employee costs 4,515 2,829
----------------------------------------------- -------------- --------------
The average number of Group employees
(including Executive Directors) was:
2017 2016
------------------------------- --------------- -----
Technical and operations 7 7
Management and administrative 15 13
------------------------------- --------------- -----
Total Group employees 22 20
------------------------------- --------------- -----
The employee costs and number of employees above do not include
contract and casual labour in field operations which are charged
directly to operating expense as incurred. These employees are not
on the Group's payroll and are contracted through third
parties.
Directors' remuneration
Total Total
Salary Benefits Bonus Fees 2017 2016
$'000 $'000 $'000 $'000 $'000 $'000
---------------- --------------- ---- -------------- --------------- --------------- -------------- --------------
Executives
Mikel Faulkner 395 (2) 60 196 - 651 246
Non-executives
(1)
Alan Henderson - - - 80 80 74
David Quint - - - 80 80 74
Zac Phillips - - - 80 80 74
---------------- --------------- ---- -------------- --------------- --------------- -------------- --------------
Total 395 60 196 240 891 468
---------------- --------------- ---- -------------- --------------- --------------- -------------- --------------
(1) The non-executive fees were paid in Pounds Sterling of the
amount GBP60 thousand each (2016: GBP47.5 thousand).
(2) This included 2016 salary of $75 thousand contingent on the
completion of the transaction in 2017 to acquire offshore service
assets.
Compensation paid to key management personnel, comprising of the
Executive Directors such as the Chairman, Managing Director and
Finance Director, and the Non-executive Directors:
2017 2016
$'000 $'000
------------------------------------------------- -------------- ---------------
Non-executive Director fees 240 222
Compensation and benefits paid to key
management personnel:
Compensation paid 1,363 837
Performance bonuses 270 13
Health and life insurances 72 30
Company contributions to defined contribution
plan 66 -
Company contributions to payroll taxation 61 48
Other benefits 47 -
Share-based payments - options - equity-settled 12 9
------------------------------------------------- -------------- ---------------
Total 2,131 1,159
------------------------------------------------- -------------- ---------------
At 31 December 2017, there were no amounts due to or from key
management personnel (2016: nil).
7. Cost of sales
A reconciliation of cost of sales by nature is as follows:
2017 2016
$'000 $'000
------------------------------- ------------ -------------
Operating expenses (1) 3,694 489
Depreciation and amortization 1,858 113
-------------------------------- ------------ -------------
Total cost of sales 5,552 602
-------------------------------- ------------ -------------
(1) Of the current year increase, $2.8 million is due to
operating cost incurred following acquisition of the offshore
services segment in 2017 (see note 2 for additional
information).
8. Finance income and other
2017 2016
$'000 $'000
----------------------------------------- ------------- ---------------
Income on note receivable and others
(1) 334 1,242
Unrealized gain on derivative financial
liabilities (2) 543 -
----------------------------------------- ------------- ---------------
Total finance income and other 877 1,242
----------------------------------------- ------------- ---------------
(1) The decrease in the current year is mainly related to the
decrease in the principal balance from $12 million to $4 million in
connection with the transaction in 2017 (see note 2).
(2) The increase in the current year is a result of the
convertible loan notes issued in connection with the transaction
(see note 2).
9. Finance expense and other
2017 2016
$'000 $'000
------------------------------------------ -------------- ----------
Unwinding of discount on decommissioning
provision 219 172
Accretion expense on convertible loan
notes (1) 93 -
Interest payable on convertible loan
notes (1) 1,663 -
Net loss on foreign currency exchange 99 113
------------------------------------------ -------------- ----------
Total finance and other expenses 2,074 285
------------------------------------------ -------------- ----------
(1) The increase in the current year is a result of the
convertible loan notes issued in connection with the transaction
(see note 2).
10. Property, plant and equipment
Offshore
equipment Office
and Facilities
site and equipment
Oil and
Vessels improvements properties pipelines other Total
$'000 $'000 $'000 $'000 '$'000 $'000
------------------- -------------------- -------------------- -------------------- -------------------- ------------------ ----------------
Cost
At 1 January 2016 - - 44,561 2,956 949 48,466
Additions - - - - 34 34
Disposals - - - - (116) (116)
Change in
decommissioning
and environmental
provision - - 703 - - 703
At 31 December
2016 - - 45,264 2,956 867 49,087
------------------- -------------------- -------------------- -------------------- -------------------- ------------------ ----------------
Additions 12,025 1,359 - - 78 13,462
Disposals - (18) - - (400) (418)
Change in
decommissioning
and environmental
provision - - (163) - - (163)
At 31 December
2017 12,025 1,341 45,101 2,956 545 61,968
------------------- -------------------- -------------------- -------------------- -------------------- ------------------ ----------------
Depreciation:
At 1 January 2016 - - (44,561) (2,956) (804) (48,321)
Provided during
the year - - - - (113) (113)
Reclassification
of intangible
assets - - - - 71 71
Impairment charge - - (703) - - (703)
At 31 December
2016 - - (45,264) (2,956) (846) (49,066)
------------------- -------------------- -------------------- -------------------- -------------------- ------------------ ----------------
Provided during
the year (1,512) (300) - - (31) (1,843)
Disposals - 4 - - 396 400
Impairment
(charge)/reversal (53) - 4,021 - - 3,968
At 31 December
2017 (1,565) (296) (41,243) (2,956) (481) (46,541)
------------------- -------------------- -------------------- -------------------- -------------------- ------------------ ----------------
Net book value at
31 December 2017 10,460 1,045 3,858 - 64 15,427
Net book value at
31 December 2016 - - - - 21 21
Net book value at
1 January 2016 - - - - 145 145
As a result of the February 2017 asset acquisitions, the Group
acquired 11 offshore service vessels, one barge vessel, and related
offshore equipment. Three of the acquired offshore service vessels
were sold as scrap prior to delivery to the Group's dock facility
and certain offshore equipment was sold during the period. These
disposals resulted in a gain on disposal of assets of $100 thousand
for the year ended 31 December 2017.
The Group performed its annual impairment assessment as at 31
December 2017. For the purposes of assessing impairment for the
vessels, the Group obtained an independent, third-party valuation
to determine the fair value of each vessel at 31 December 2017. As
a result, the Group recognized an impairment charge of $53 thousand
related to the offshore service vessels as a result of decreased
current market valuations. The Group did not identify any factors
that would indicate the value of its offshore service equipment may
be impaired since the acquisition date measurement in February 2017
(see note 2 for additional information).
As the Group's oil and gas segment was fully impaired as at 31
December 2016, the Group considered market conditions and recent
oil price trends, among other factors, when reviewing for
indicators of any impairment reversal. The recoverable amounts of
the two CGUs, the Bolivar area and the Bocachico area, were
determined based upon value in use calculations using risked cash
flow projections. The value in use calculations include estimates
about the future financial performance of each CGU. All estimates
and assumptions included in the value in use calculations are
derived from the reserve report developed by Ralph E. Davis
Associates, Inc., an independent petroleum engineering firm, and
are based on the PRMS joint reserve and resource definitions of the
Society of Petroleum Engineers, the World Petroleum Council, the
American Association of Petroleum Geologists and the Society of
Petroleum Evaluation Engineers consistent with UK reporting
purposes. The projected risked discounted cash flows are calculated
using the Brent oil pricing as at December 2017 of $66.87 per bbl
(2016: $56.82 per bbl), with historical pricing discounts and
historical operating costs. The pre-tax discount rate applied to
the cash flow projections is 10 per cent (2016: 10 per cent).
As at 31 December 2017, the Group's recognized a net impairment
reversal of $4 million. This comprised of an impairment reversal of
$4.1 million related to the Bolivar area based upon the reserve
report valuation of the discounted cash flows for the contingent
reserves within this contract. However, the Bocachico area remained
uneconomic at the increased current year pricing. As a result, an
impairment charge of $57 thousand was recognized due to increases
in the decommissioning and environmental provisions during
2017.
As at 31 December 2016, the Group's Bolivar and Bocachico area
oil assets were fully impaired as a result of continued low oil
prices of $56.82 per bbl which caused the oil reserves within the
Bolivar and Boacachico contract areas to continue to be uneconomic
at 31 December 2016. As a result, the Group recognized impairment
charges of $314 thousand and $389 thousand in impairment charges
for the Bolivar area and the Bocachico area, respectively, due to
increases in the decommissioning and environmental provisions
during 2016.
11. Note receivable
2017 2016
$'000 $'000
-------------------------------------------- --------------- --------------
Note receivable 4,000 12,000
Accrued interest receivable 13 60
Total note receivable and accrued interest
as at 31 December 4,013 12,060
-------------------------------------------- --------------- --------------
Cash received for interest income 366 1,182
Cash received for commission - 40
-------------------------------------------- --------------- --------------
On 15 September 2015, the Group and HKN, Inc. ("HKN")
(collectively as "Co-Lenders") entered into a secured, short-term
financing note agreement ("Note Receivable") with Everest Hill
Energy Group Ltd. ("Everest") for the principal amount of $10
million. Everest is an affiliated company of the Quasha family
trusts which also have an interest in Lyford Investments, Inc., an
existing shareholder of the Group. HKN Inc, ("HKN"), the Group's
principal shareholder, Lyford Investments, Inc. and its parties
acting in concert with it are interested in 22,567,016 shares of
the Group, representing 62.49 per cent of the issued share capital
of the Company. By virtue of these holdings, entry into this Note
Receivable constituted a related party transaction.
Under the Note Receivable, the Group participated as a Co-Lender
by loaning $8.0 million and HKN participated by loaning $2.0
million of the principal amount to Everest. The Note Receivable is
secured by all of Everest's and its subsidiaries' holdings of the
Group and HKN. The Group serves as the collateral agent for the
Co-Lenders. The Note Receivable is subject to an interest charge of
12 per cent per annum, payable monthly in arrears, with the
principal amount being repayable in full on 15 March 2016. Everest
paid to the Group a 2 per cent transaction fee of $160 thousand in
September 2015 upon the closing of the Note Receivable.
On 29 February 2016, the Co-Lenders amended the Note Receivable
(the "Amendment") with Everest. Under the Amendment, the Group
loaned an additional $2.0 million principal amount to Everest and
extended the maturity date six months to 15 September 2016. In
addition, the Group was granted right of first refusal to purchase
certain offshore oil service vessels owned by Everest and its
affiliates. Everest paid to the Group a 2 per cent transaction fee
of $40 thousand upon the closing of the Amendment.
On 9 September 2016, the Co-Lenders extended the maturity date
of the amended Note Receivable by thirty days to 15 October 2016.
On 14 October 2016, the Co-Lenders extended the maturity date
thirty days from 15 October 2016 to 15 November 2016. On 28 October
2016, the Group acquired HKN's rights of their outstanding
principal amount of $2.0 million in respect of the Note Receivable
and as a result the Group is now the sole lender of the Note
Receivable with collateral remaining in place and securing the
obligation. On 14 November 2016, the Group extended the maturity
date to 15 January 2017. The Note Receivable continues to be
subject to an interest charge of 12 per cent per annum, payable
monthly in arrears.
The Note Receivable was further amended on 8 February 2017 as a
result of the completion of Transaction A (as disclosed in note 2).
As a result, the principal balance of the note decreased from $12
million to $4 million and the maturity date was extended from 15
January 2017 to 15 September 2018. In addition, interest was
amended from payable monthly in arrears at 12 per cent per annum to
payable quarterly in arrears at 8 per cent per annum. Part of the
existing collateral under the Note Receivable, comprised of
Everest's and its affiliates' shareholdings in HKN, which is a
substantial shareholder in the Company, remains in place.
12. Convertible Loan Notes and Interest Payable
As a result of the completion of Transaction B on 8 February
2017 (as disclosed in note 2), the Group issued three series of
convertible loan notes in exchange for $10.5 million in cash and
vessels, equipment and inventory with a fair market value of $5.6
million. All three series have been issued and all consideration
has been received by the Group as at 31 December 2017.
A summary of the terms of the convertible loan notes are as
follows:
Convertible Loan Note
--------------------------------------------------------------------
Term: Series A Series B Series C
------------ ---------------- --------------------- ---------------------------
Principal
Amount: $10.5 million $6.1 million $15.0 million
Maturity 1 January 1 January 2029 1 January 2032
Date: 2027 (unless (unless converted (unless converted
converted to Ordinary to Ordinary Shares
to Ordinary Shares before before then).
Shares before then). Payments Payments on maturity
then). on maturity are to be settled
Payments are to be settled in cash or satisfied
on maturity in cash or in whole or in
are to be satisfied in part by the issue
settled in whole or in of Ordinary Shares
cash. part by the at the option
issue of Ordinary of the Company.
Shares at the
option of the
Company.
Interest: Non-compounding Non-compounding Non-compounding
interest will interest will interest will
be payable be payable be payable upon
upon maturity upon maturity maturity or conversion
or conversion or conversion (calculated on
(calculated (calculated a 360-day calendar
on a 360-day on a 360-day year) at 6 per
calendar year) calendar year) cent, payable
at 8 per cent. at 6 per cent, in cash or satisfied
payable in by the issue
cash or satisfied of Ordinary Shares
by the issue at the option
of Ordinary of the Company.
Shares at the
option of the
Company.
Conversion The outstanding The outstanding The outstanding
Price: principal principal amount principal amount
amount will will be convertible will be convertible
be convertible into Ordinary into Ordinary
into Ordinary Shares at 160 Shares at 225
Shares at pence per share, pence per share,
50 pence per subject to subject to adjustment
share, subject adjustment in certain circumstances.
to adjustment in certain
in certain circumstances.
circumstances.
A holder of convertible loan notes may convert any portion of
the outstanding principal amount and (in the case of the Series B
Loan Notes and Series C Loan Notes only) any unpaid and accrued
interest of the convertible loan notes into Ordinary Shares at the
applicable conversion price at any time following thirty days from
the issue of the relevant convertible loan notes with a 20-day
notice to the Company. All three series of convertible loan notes
contain both a fixed exchange rate of $1.22:GBP1 and the right for
the Company to force conversion if the Company's average share
price equals or exceeds 110 per cent of the conversion price for a
period of ten consecutive business days. Furthermore, the Company
may redeem each issue of convertible loan notes any time after
issuance at their nominal value with a 10-day notice to the note
holder. For the Series B Loan Notes and Series C Loan Notes only,
any amounts not previously converted into shares at maturity will
be repaid in cash or by the issuance of shares at a price equal to
the higher of (i) the conversion price and (ii) 110 per cent of the
average closing price of the Company's shares for ten consecutive
business days, at the option of the Company. As a result, the
Series B Loan Notes and Series C Loan Notes failed the 'fixed for
fixed' classification under IAS 32.
The Group determined the convertible loan notes issued to be
compound financial liabilities. The Group classified the conversion
features of the Series A Loan Notes as equity due to the fixed
settlement terms. Accordingly, the proceeds received on issuance
were allocated into their liability and equity components. The
Group classified the conversion features of the Series B Loan Notes
and Series C Loan Notes as derivative financial liabilities.
Accordingly, the proceeds received on issuance were allocated into
their host debt liability and embedded derivative components. The
following table details the movements of the convertible loan note
issuances during the period:
2017
$'000
--------------------------------
Balance at 31 December
2016 -
Issuance of convertible
loan notes 16,140
Proportion classified
as equity (1,307)
Proportion classified
as derivative financial
liabilities (780)
Interest payable 1,663
Accretion expense 93
--------------------------------
Convertible loan notes
and accrued interest 15,809
--------------------------------
13. Decommissioning and environmental provisions
2017 2016
Long-term provisions $'000 $'000
------------------------------------------- ------------- ---------------
Decommissioning liability at start of
year, non-current(1) 2,161 2,005
Unwinding of discount 219 172
Reclassification from (to) short-term
provisions(2) 578 (555)
(Decrease)/increase in provision(3) (246) 539
Decommissioning liability at end of year,
non-current 2,712 2,161
------------------------------------------- ------------- ---------------
Total long-term provision 2,712 2,161
------------------------------------------- ------------- ---------------
2017 2016
Short-term provisions $'000 $'000
------------------------------------------- ------------- ---------------
Decommissioning liability at start of
year, current(1) 810 -
Reclassification to (from) long-term
provisions(2) (578) 555
Increase in provision(3) 82 255
------------------------------------------- ------------- ---------------
Decommissioning liability at end of year,
current 314 810
------------------------------------------- ------------- ---------------
Environmental provision - current, at
start of year (4) 138 184
Decrease in provision (91) (46)
Environmental provision - current, at
end of year 47 138
------------------------------------------- ------------- ---------------
Total short-term provision 361 948
------------------------------------------- ------------- ---------------
(1) The decommissioning provision represents the present value
of decommissioning costs for existing assets in the Group's oil
operations, which are expected to be incurred between 2018 and
2024. These provisions have been generated based on the Group's
internal estimates, and where available, studies and analyses from
external sources. Assumptions, based on the current economic
environment, have been made which management believes are a
reasonable basis upon which to estimate the future liability. These
estimates are included within short-term and long-term provisions
within the statement of financial position and are reviewed
periodically to take into account any material changes to those
assumptions.
(2) During 2016, the Group made the decision to perform a
portion of its remediation obligations related to the Bocachico and
Bolivar Contract Areas in Colombia during the upcoming year rather
than upon expiration of the contracts. This decision was made in
order to take advantage of lower oilfield service pricing during
depressed industry conditions in Colombia and to also reduce future
environmental obligations. This decision resulted in the
reclassification from long-term to short-term provisions of $555
thousand during 2016. During 2017, the Group reassessed the scope
of the discretionary projects designated as current at the Bolivar
area and decided to defer a portion to be performed upon the
expiration of the contracts in order to preserve cash on hand. This
resulted in the reclassification from short-term to long-term
provisions of $578 thousand during 2017.
(3) Decommissioning cost estimates increased during 2016 as a
result of performing long-term obligations earlier than expected
and bringing them to present value and identifying additional
requirements for the final decommissioning for both Contract Areas.
However, actual decommissioning costs will ultimately depend upon
future market prices for the necessary decommissioning work
required at the time assets are decommissioned and abandoned.
Furthermore, the timing of decommissioning is likely to depend on
when the fields cease to produce at economically viable rates,
which in turn is dependent upon future oil and gas prices that are
inherently uncertain.
(4) The environmental provision represents the creation of an
environmental investment reserve to reflect a liability under
Colombian law for certain exploration and producing contracts
requiring the Group to perform additional reinvestment in the
amount of 1 per cent of specified investment activity to provide
for the recovery, conservation, preservation, and monitoring of the
hydrographic basin of the exploration areas and obligations to
perform social contract requirements. For the 1 per cent
reinvestment obligation, a provision is provided and an amount
equal to the provision is recognised within the cost of the
respective asset and amortised on a unit of production basis.
Changes in estimates are recognised prospectively, with
corresponding adjustments to the provisions and the associated
fixed asset. Changes in estimate of other environmental and social
obligations are recognised in cost of sales.
14. Financial Instruments- Fair Value Measurement
During 2017, the Group issued financial instruments measured at
fair value. The Group has assessed the different levels in the fair
value hierarchy, for its financial instruments, based on the inputs
used in the valuation techniques. The following tables show the
valuation techniques used in measuring level 3 fair values, as well
as the significant unobservable inputs used.
Valuation Significant unobservable
Type Level Measurement technique inputs
---------------- ------ ------------ ----------------- -------------------------
Derivative 3 Recurring Binomial lattice Share price volatility
financial model
liabilities
(derivative
component
of convertible
loan notes)
---------------- ------ ------------ ----------------- -------------------------
Contingent 3 Recurring Probability Operating and
consideration weighted cash cash flow projections
forecasts
---------------- ------ ------------ ----------------- -------------------------
During the year ended 31 December 2017, a gain of $543 thousand
was recognised on the revaluation of the derivative financial
liabilities within finance income and other in the Consolidated
Statement of Comprehensive Income. The contingent consideration
relates to the acquisition of offshore service vessel-owning
companies as a result of the completion of Transaction B (as
disclosed in note 2). The fair value of the contingent
consideration related to the future net cash inflows of the three
vessels was determined to be $nil at acquisition and as at 31
December 2017. Changes to the Group's key assumptions regarding the
projected net cash inflows generated by the vessels and the
expected timing of potential revenues could impact the fair value
of the contingent consideration, which will be assessed at each
reporting period for the duration of the 18-month contingency
measurement period.
15. Related party disclosures
HKN, Everest, and its parties in concert are major shareholders
of the Company. During 2017, the Group completed the acquisition of
offshore service vessel-owning companies through two separate
transactions from Everest and other related parties (see note 2 for
additional information). As part of the transactions, the Group
amended its outstanding Note Receivable with Everest (see note 11
for additional information).
The Group entered into a Shared Services Agreement with HKN
during 2015 to allow employees to provide or cause to be provided
certain contract services, as needed. The Group paid $32 thousand
to HKN for contract services for due diligence purposes during the
year ended 31 December 2016. No payments were made for services
during 2017.
In addition, during the year ended 31 December 2017, the Group
purchased an automobile for $35 thousand and $8 thousand in
furniture and computer equipment from HKN. During the prior year
period, the Group purchased $22 thousand in furniture and computer
equipment from HKN and also sold $39 thousand in furniture and
computer equipment to HKN, resulting in a loss on the disposal of
assets of $1 thousand.
The Group entered into agreements with Oil and Advisors LTD, in
which Zac Phillips, a non-executive director, performed independent
consulting services. The Group paid $17 thousand and $19 thousand
for contract services during the year ended 31 December 2017 and
2016, respectively.
16. Post reporting date events
After the reporting date, the Group closed on the sale of two of
its offshore service vessels and certain offshore equipment for
proceeds of $665 thousand. These disposals resulted in a gain on
disposal of assets of $541 thousand.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR SFESULFASEID
(END) Dow Jones Newswires
March 14, 2018 05:58 ET (09:58 GMT)
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