TIDMSER
RNS Number : 6279A
Sefton Resources Inc
30 September 2015
30 September 2015
Sefton Resources, Inc.
("Sefton" or the "Company")
Half Yearly Report for the six months to 31 July 2015
The Board of Directors of Sefton (the "Board") wishes to advise
shareholders of the Company's performance during the six months to
31 July 2015 (the "Period").
In the face of significant challenges over the past six months
the Company has seen a strengthening of its balance sheet with net
assets increasing by c$2 million following successful equity issues
in a difficult market in 2015. During the Period the Company has
also materially reduced its aged payable balances, implemented
robust financial controls and strengthened the Company's corporate
governance.
Together with the strengthening of the Company's financial
position, the Board has continued to pursue the wider development
of the Company's South-East Asian strategy and have highlighted
three potential investment opportunities for which technical due
diligence is well-progressed and commercial discussions are
underway. The Board has a credible, fixed strategy to build
revenues based on regional knowledge and technical ability, as well
as the drive and commitment to deliver these.
In support of this strategy, the Company contributed GBP500k to
a Development Agreement (the 'Agreement') with UTAS Petroleum
Services Ltd ('UTAS') to facilitate the identification and
screening of potential asset targets in the region. The Board
maintains this structure is in the best interests of Shareholders
as it acknowledges the actions brought in the US federal courts by
a former Chairman have had a severe negative impact on the
Company's ability to arrive at commercial terms with Sellers,
attract a suitable CEO candidate and close such deals
independently. The Board is pleased to report that the technical
and financial due diligence for three asset targets is now complete
and commercial negotiations are now ongoing under the joint
venture. To date, UTAS has spent a total of GBP197k in business
development expenses in this process. All funds are under the
direct control of the Development Committee, of which Sefton has
the majority of votes.
The Development Agreement still remains in effect, although
potential CEO candidate Mr Rob Shepherd and the technical teams are
no longer pursuing further due diligence. If the Agreement is
terminated in the future by Sefton, UTAS will have the first right
of refusal to all opportunities investigated as per the terms of
the agreement. By keeping the agreement active, Sefton retains the
right of first refusal.
In May 2015 the Company appointed Jossy Rachmantio as a
Non-Executive Director and in September 2015 he was subsequently
appointed as Executive Chairman of the Company. Mr Rachmantio, an
Engineer by training, has over 25 years' experience in the energy
industry, mostly focusing on Oil and Gas Exploration and Production
in Indonesia. The Board are delighted to have made this appointment
and it is a significant milestone in the implementation of the
Company's strategic plans.
The Company continues to keep its legacy U.S. assets on a care
and maintenance regime whilst a study on the underlying value of
the assets is commissioned. The Company continues to seek potential
buyers, however it recognises the difficulties in the market due to
the current depressed oil price. Furthermore, the Company notes it
has received instruction from the US federal courts that it may not
dispose of these assets whilst the bankruptcy claim is
outstanding.
Whilst pursuing the strategic goals of the Company, the Board
has continued to contest with a number of challenging legacy
scenarios, notably concerning the activities of former officers of
the Company, as detailed in recent press releases. Whilst such
matters have proven to be a distraction of senior management's time
as well the Company's limited resources, the Board remains hopeful
that these matters will be resolved in the Company's favour,
enabling the Company to focus wholly on building a value-accretive
portfolio of sustainable oil and gas production.
In this Interim period, the Management Team of the Company has
clearly demonstrated commitment to delivering real value despite
the various legacy issues. The Board has a clearly articulated
strategy to build a real production portfolio in a region that, due
to its domestic energy demands, commands lucrative price premiums
and is partially decoupled from global commodities prices. The
Board looks forward to the opportunities that this will bring to
the Company.
For further information please visit www.seftonresources.com or
contact:
Jossy Rachmantio, Executive Chairman Tel: 020 7872 5570
-------------------------------------------- -------------------
Nick Harriss, Nick Athanas, Allenby Capital Tel: 0203 328 5656
(Nomad)
-------------------------------------------- -------------------
Nick Bealer, Cornhill Capital (Broker) Tel: 020 7710 9612
-------------------------------------------- -------------------
Tim Blythe, Camilla Horsfall, Blytheweigh Tel: 020 7138 3224
(PR)
-------------------------------------------- -------------------
Financial review for the six months ended 31 July 2015
Summarised financial information (unaudited)
6 months 6 months
to to
31 July 30 June
2015 2014
$'000s $'000s
Loss before non-cash charges, interest
and taxes (1,402) (264)
Total comprehensive loss for the period (1,493) (959)
Cash and cash equivalents 1,017 9
Total assets 2,525 15,708
Total liabilities (780) (9,186)
--------- ---------
Net assets 1,745 6,522
--------- ---------
Unaudited consolidated statement of comprehensive income
Notes 6 months 6 months 13 months
to to to
31 July 30 June 31 January
2015 2014 2015
$'000s $'000s $'000s
Revenue - - -
Cost of sales - - -
---------- ---------- -----------
Gross profit - - -
General and administrative
expenses (1,002) (249) (305)
Retirement obligation
expenses - (15) 117
---------- ---------- -----------
(1,002) (264) (188)
---------- ---------- -----------
Profit/(loss) before exceptional
administrative expenses (1,002) (264) (188)
Exceptional expenses -
release of cross guarantee (400) - -
---------- ---------- -----------
Profit/(loss) before non-cash
charges, interest and
taxes (1,402) (264) (188)
Depletion, depreciation
and amortisation - - (54)
Share based payments - (103) (176)
---------- ---------- -----------
Operating loss (1,402) (367) (418)
Finance costs (1,429) (39) (82)
Loss for the period from
continuing operations (1,429) (406) (500)
Loss for the period from
discontinued operations (64) (553) (7,535)
---------- ---------- -----------
Total comprehensive (loss)
for the period attributable
to equity holders of the
parent (1,493) (959) (8,035)
---------- ---------- -----------
Per share Per share Per share
$ $ $
Basic and diluted loss
per share from continuing
and discontinued operations 2 (0.00044) (0.00132) (0.00989)
(MORE TO FOLLOW) Dow Jones Newswires
September 30, 2015 02:01 ET (06:01 GMT)
Unaudited consolidated balance sheet
As at As at As at
31 July 30 June 31 January
2015 2014 2015
$'000s $'000s $'000s
Non-current assets
Investments 853 - 180
Intangible assets - - -
Property, plant and equipment - 54 -
--------- --------- -----------
853 54 180
Current assets
Non-current assets held for
sale - disposal groups 632 15,531 632
Cash and cash equivalents 1,017 9 27
Trade and other receivables 23 114 124
--------- --------- -----------
1,672 15,654 783
--------- --------- -----------
Total assets 2,525 15,708 963
Non-current liabilities
Retirement obligation - 132 -
Asset retirement obligation - - -
--------- --------- -----------
- 132 -
--------- --------- -----------
Current liabilities
Liabilities associated with
non-current assets held for
sale - disposal groups 247 7,862 232
Trade and other payables 533 1,012 651
Current portion of borrowings - 180 129
--------- --------- -----------
780 9,054 1,012
--------- --------- -----------
Total liabilities 780 9,186 1,012
--------- --------- -----------
Net assets 1,745 6,522 (49)
--------- --------- -----------
Shareholders' equity
Share Capital 28,598 24,879 25,311
Retained deficit (26,853) (18,357) (25,360)
--------- --------- -----------
Total equity attributable to
equity holders of the parent 1,745 6,522 (49)
--------- --------- -----------
Unaudited consolidated statement of changes in equity
Common shares,
no par value
Retained
Shares Amount deficit Total
$'000s $'000s $'000s
Balances 1 February 2015 1,069,644,495 25,311 (25,360) (49)
Shares issued for cash 3,633,100,675 3,421 - 3,421
Shares issued in lieu
of payment 43,873,227 24 - 24
Share issuance costs (158) (158)
Comprehensive income - - (1,493) (1,493)
Balances 31 July 2015 4,746,618,397 28,598 (26,853) 1,745
-------------- ------- --------- --------
Balances 1 January 2014 704,089,741 24,692 (17,501) 7,191
Shares issued in lieu
of payment 7,154,724 32 - 32
Shares issued on conversion
of loan notes 18,063,854 155 - 155
Compensation expense related
to share options - - 103 103
Comprehensive income - - (959) (959)
Balances 30 June 2014 729,308,319 24,879 (18,357) 6,522
------------ ------- --------- ------
Balances 1 January 2014 704,089,741 24,692 (17,501) 7,191
Shares issued in lieu
of payment 128,988,778 355 - 355
Shares issued on conversion
of loan notes 76,565,976 150 - 150
Shares issued in placing 160,000,000 120 - 120
Share issuance costs - (6) - (6)
Compensation expense related
to share options - - 176 176
Total comprehensive income - - (8,035) (8,035)
Balances 31 January 2015 1,069,644,495 25,311 (25,360) (49)
-------------- ------- --------- --------
Unaudited consolidated statement of cash flows
6 months 6 months 13 months
to to
31 July 30 June 31 January
2015 2014 2015
$'000s $'000s $'000s
Cash flows from operating activities
Operating loss (1,493) (959) (8,035)
Finance costs 27 264 679
Share based payments 24 103 176
Retirement benefit expense - 36 706
Depreciation - 152 390
Impairments - - 3,401
Loss on disposal of subsidiary - - 1,430
Loss on disposal of equipment - - 3
--------- --------- -----------
(1,442) (404) (1,250)
Changes in operating assets
and liabilities:
Changes in trade and other
receivables 101 204 613
Changes in trade and other
payables (99) 91 225
--------- --------- -----------
Net cash provided by operating
activities (1,440) (109) (412)
--------- --------- -----------
Cash flows from investing activities
Purchase of intangible assets - (94) (1)
Investments in business development
activities (673) - -
Purchase of property, plant
and equipment - (28) (122)
Net cash outflow on disposal
of a subsidiary - - (8)
--------- --------- -----------
Net cash used in investing
activities (673) (122) (131)
--------- --------- -----------
Cash flows from financing activities
Proceeds of issue of new shares 3,263 - -
Expenses of new share issue - - -
Proceeds from notes payable - 102 329
Payments on notes payable (129) - -
Interest paid (27) - (13)
--------- --------- -----------
Net cash provided by financing
activities 3,107 102 316
--------- --------- -----------
Net decrease in cash and cash
equivalents 994 (129) (227)
Cash and cash equivalents at
beginning of period 23 250 250
--------- --------- -----------
Cash and cash equivalents at
end of the period 1,017 121 23
--------- --------- -----------
Represented by
Cash and bank balances 1,017 9 27
Cash and bank included in disposal
groups held for sale - 112 (4)
--------- --------- -----------
1,017 121 23
--------- --------- -----------
Notes to the Unaudited Financial Information
for the 6 months ended 31 July 2015
1. Accounting polices
The interim financial information in this report has been
prepared on the basis of the accounting policies set out in the
audited financial statements for the period ended 31 January 2015,
which complied with the International Financial Reporting Standards
as adopted for use in the European Union ("IFRS").
IFRS is subject to amendment and interpretation by the
International Accounting Standards Board ("IASB") and the IFRS
Interpretations Committee and there is an on-going process of
review and endorsement by the European Commission.
(MORE TO FOLLOW) Dow Jones Newswires
September 30, 2015 02:01 ET (06:01 GMT)
Sefton Resources (LSE:SER)
Historical Stock Chart
From Mar 2024 to Apr 2024
Sefton Resources (LSE:SER)
Historical Stock Chart
From Apr 2023 to Apr 2024