TIDMNUOG
RNS Number : 0937B
Nu-Oil and Gas PLC
31 March 2017
NU-OIL AND GAS PLC
AIM symbol: 'NUOG'
31 March 2017
NU-Oil and Gas plc
("NU-Oil" or "the Company")
Interim Results for the six months ended 31 December 2016
NU-Oil, the independent Oil and Gas company, today announces its
interim results for the six months ended 31 December 2016.
Key points:
-- Strategy focused on utilising redeployable engineering
solutions that reduce Opex and Capex to build a portfolio of low
risk highly appraised marginal assets;
-- Continuing focus on the development of portfolio through
Marginal Field Development Company (MFDevCo) Ltd ("MFDevCo"), in
which the Company has a 50% interest;
-- MFDevCo entered into a collaboration agreement with COSL
Drilling Pan Pacific Limited ("CDPL") (the "Collaboration
Agreement"), a major drilling and oilfield services company, in
order to secure marginal field projects more cost-effectively,
earlier and with less up-front capital;
-- Currently in discussions with regards to acquiring further
projects which are expected to become increasingly valuable as the
market improves;
-- During the period, the Company raised GBP1,129,000 net of
expenses, primarily towards the implementation of the Company's
stranded and marginal field strategy and for general working
capital purposes;
-- Concluded the specific terms of a production sharing
agreement with PVF Services Inc. ("PVF") for PL2002-01(A) (the
"Production Sharing Agreement"), which provides for the Company to
receive 50% of net revenue from production following the recovery
of any costs incurred by PVF in performing its obligations. Work
remains on schedule to allow commencement of activity in Q2
2017;
-- The period of due diligence on the option agreement with G2
Energy which covers EL1070 (the "Option Agreement") has passed
satisfactorily and the agreement has come into full effect;
-- The Company reports a loss of GBP421,000 for the period, a
decrease of GBP51,000 in the loss reported over the corresponding
period in 2015; and
-- Following the end of the period, the Company raised a further
GBP2,050,000 before expenses and expects this, in conjunction with
the funds raised during the reporting period, to meet the Company's
requirements in the medium term.
Nigel Burton, CEO of NU-Oil, commented:
"NU-Oil has seen a strong turnaround over the six-month period,
with the share price increasing substantially. The Company has
raised sufficient funds to implement its clear and focused strategy
and plans have been implemented for legacy assets. In addition, the
Directors have demonstrated their support for the Company's
strategy through the purchase of shares."
For further information, please visit the NU Oil and Gas website
www.nu-oilandgas.com or contact:
NU-Oil and Gas plc Tel: +44 161 817
Alan Minty 7460
Nigel Burton Tel: +44 7785 234447
---------------- ---------------------- ----------------------
Rory Murphy Strand Hanson Limited Tel: +44 20 7409
Ritchie Balmer 3494
---------------- ---------------------- ----------------------
Jon Belliss Beaufort Securities Tel: +44 20 7382
Elliot Hance Limited 8300
---------------- ---------------------- ----------------------
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). On the
publication of this announcement via a Regulatory Information
Service ("RIS"), this information is now considered to be in the
public domain.
Note to Editors:
NU-Oil and Gas plc is an independent oil and gas company whose
strategy is to build a diverse portfolio of assets with a strong
emphasis on acquiring interests in stranded and marginal
fields.
These fields are low risk highly-appraised projects and
consequently the Company's entry cost will be low. NU-Oil will look
to develop these assets utilising solutions delivered by MFDevCo
and the Marginal Field Development Consortium (see below), which
can significantly improve the development economics of a project.
This is also expected to enable the early booking of reserves.
Marginal Field Development Company (MFDevCo) Ltd
(www.mfdevco.com)
MFDevCo is a joint venture between RMRI (www.rmri.co.uk) and
NU-Oil. It focuses on maximising recovery from the vast,
undeveloped hydrocarbon resources contained within marginal fields
worldwide, utilising appropriate re-deployable solutions to
transform these undervalued assets. MFDevCo manages the entire
lifecycle of marginal field projects from opportunity screening,
suitability assessment and financing through engineering to
production and decommissioning. The solutions developed can be used
to:
-- Realise the potential from marginal or stranded fields;
-- Extend the life of mature fields;
-- Rejuvenate fields with a previous or existing development
solution that is currently sub-economic;
-- Defer decommissioning liabilities; and
-- Provide early production systems
The Marginal Field Delivery Consortium www.mfdconsortium.com
The Marginal Field Delivery Consortium (the "Consortium") is a
collaborative partnership, established and led by MFDevCo, between
upstream oil and gas industry specialists committed to developing
hydrocarbon resources around the world which cannot be economically
recovered using conventional methods. Through its members, the
Consortium offers the technology and services required to deliver
marginal oil and gas projects from project identification and
concept selection through to operation and decommissioning, using
cost-effective and re-deployable production solutions, which can
transform the economics of marginal fields by reducing the
development costs by up to 60% compared to using conventional
solutions.
The Consortium is led by MFDevCo and includes:
Arup - ACE platform and project management
Kongsberg - Control and automation systems for 'normally
unattended' operations
Frames - Process and utility design for 'normally unattended'
solutions
RMRI - Managing regulatory aspects of 'normally unattended'
operations
Braemar ACM - Facility financing, yard broker and assistance
with project acquisition
AGR - Drilling management and well design services
Apollo - NU-SIFT structural engineering
Aibel - Project management and EPC contractor
COSL Pan Pacific - Drilling and oilfield services
Chairman's Statement and Operational Review
I am pleased to provide this update following a fundamental and
positive change in the Company's position and prospects. The six
months to 31 December 2016 have seen a reversal in the Company's
share price decline, with strong progress being made in the
development of the Company's legacy assets and strengthening of its
financial position, which we expect to allow it, in conjunction
with its investment in MFDevCo, to secure projects in line with its
marginal field strategy.
The acquisition of the first project will be the event that
validates the Company's strategy. Progress always appears slow but
the reality is that projects are complex with many factors to be
managed, not least of which is the obligations of the Directors who
must be sure that the application of the Company's resources will
lead to viable projects.
The Company has to gather and interpret a potential project's
specific engineering factors and accommodate them within our
solution, address the regulatory and taxation framework of any
jurisdiction in which we may wish to operate, establish the local
management team with the necessary expertise, develop the
appropriate financial strategy, negotiate the specific terms under
which we might become involved and acquire the seismic and well
data to create the subsurface model that allows us to plan well
locations and predict the flow rates that generate project returns.
In addition, in undertaking this validation work, we need to
utilise external specialists, some of which are part of the
Consortium. Finally, marginal field projects are in the development
and production stage rather than the exploration stage, with
correspondingly earlier results but more stringent delivery
criteria.
Noting the above constraints, the projects that we have been
pursuing have been targets for a significant period of time and
much of the work described above has been completed, with only a
small number of issues requiring resolution prior to completion.
Moreover, it should be noted that the Company continues to advance
the activities of the marginal field strategy alongside the
revitalisation of its legacy assets.
MFDevCo entered into the Collaboration Agreement with CDPL, a
major drilling and oilfield services company, in order to secure
marginal field projects more cost-effectively, earlier and with
less up-front capital. CDPL is the international branch of China
Oilfield Services Limited ("COSL"), in turn, a majority owned
subsidiary of China National Offshore Oil Corporation. The
agreement envisages delayed invoicing and payment terms to delay a
significant portion of costs of drilling until after the production
of hydrocarbons on secured projects and collaboration on additional
services with sister companies of CDPL. This enables MFDevCo to
make commitments on specific work required to secure access to
projects at an earlier stage than would otherwise be possible and
having raised significantly less capital prior to commencement. In
my opinion, this is a significant milestone and will form an
important part of a project's financing strategy.
With respect to our assets in Western Newfoundland, the Company
concluded the specific terms of the Production Sharing Agreement
with PVF for PL2002-01(A). The Production Sharing Agreement
provides for the Company to receive 50% of net revenue from
production following the recovery of any costs incurred by PVF in
performing its obligations. The term of the Production Sharing
Agreement is five years and PVF will cover all costs associated
with an agreed work programme to restore production from
PL2002-01(A) (the "Work Programme"). In addition to PVF providing
100% of the funding for the Work Programme, it will also fund 100%
of ongoing operations on PL2002-01(A) in exchange for 50% of net
revenue from production following the recovery of its costs.
The Work Programme will be undertaken in two phases, with the
first phase involving wireline operations to clean up the well and
mill out a physical obstruction in the completion that is
restricting flow. The well will then be flowed for a period
anticipated to be between 15 and 30 days to allow for reliable
analysis and evaluation of the resulting production. Subject to
satisfactory results, a rig will be mobilised to site to undertake
the second phase of the Work Programme, which will include
recompletion of the well and installation of an appropriate
artificial lift system.
PVF lead a consortium of engineering service companies who are
contributing to the completion of the Work Programme. The
consortium includes:
-- Ecan Oilfield Services LP, an Ontario based company comprised
of nearly 400 personnel who provide a variety of oilfield services
including rig provision; and
-- IDDEL Engineering Ltd, a Canadian professional engineering
consulting firm specialising in mechanical, electrical and
environmental engineering and project management.
Work remains on schedule to allow commencement of activity at
PL2002-01(A) in Q2 2017.
In addition to the activity on PL2002-01(A), the Option
Agreement was signed with G2 Energy Corp ('G2 Energy') whereby G2
Energy has an exclusive option to earn 100% of the Company's
working interest in the Deep Rights on EL1070, with the Company's
wholly owned subsidiary, Enegi Oil Inc., retaining a 5% gross
overriding royalty should the option be exercised. Pursuant to the
Option Agreement, G2 Energy had a period of 45 days to conclude due
diligence on EL1070, which has concluded satisfactorily and the
Option Agreement has come into full effect.
I believe the activities described in this statement demonstrate
the significant progress that the Company has made in the six-month
period to 31 December 2016. The Board's continued belief in its
strategy is demonstrated by the recent purchases of shares by
certain Directors and the length of the lock in period built into
the options that were awarded to the Directors, as announced on 27
February 2017. I remain confident that we will see the results of
that commitment.
Alan Minty
Executive Chairman
31 March 2017
Financials
The accounts for the period have been prepared in accordance
with the International Financial Reporting Standards as adopted by
the European Union using accounting policies that are consistent
with those stated in the Company's 2016 Annual Report and
Accounts.
The Company reports a loss of GBP421,000 for the period, a
decrease of GBP51,000 in the loss reported over the corresponding
period in 2015. This is primarily due to the Company continuing to
reduce its overheads as it resolves the financial and corporate
structure required to implement its strategy.
The Company did not generate any revenue during the period
(2015: GBPnil).
Group net liabilities as at 31 December 2016 were GBP2,525,000
(2015: net liabilities of GBP3,003,000). The change in the
Company's financial position is mainly attributable to its
fundraising activities in the period, during which the Company
raised GBP1,129,000 net of expenses.
Future funding and capital requirements
The Directors believe that NU-Oil has developed a very
attractive business model in choosing to participate in the
development of the marginal fields via its investment in MFDevCo.
We expect to see an upturn in activity by utilising this offering
to increase our project portfolio.
Following the end of this period the Company raised a further
GBP2,050,000 before expenses and expects this, in conjunction with
the funds raised during this period, to meet the Company's
requirements in the medium term.
Damian Minty
Chief Financial Officer
31 March 2017
CONSOLIDATED INCOME STATEMENT
Unaudited Unaudited Audited
6 months 6 months 12 months
ended ended ended
31 December 31 December 30 June
2016 2015 2016
GBP'000 GBP'000 GBP'000
--------------------------- ------------- ------------- -----------
Revenue - - -
Cost of sales - - -
--------------------------- ------------- ------------- -----------
Gross Profit - - -
--------------------------- ------------- ------------- -----------
Administrative expenses (421) (472) (815)
--------------------------- ------------- ------------- -----------
Loss from operations (421) (472) (815)
--------------------------- ------------- ------------- -----------
Finance costs - - (1)
Loss before tax (421) (472) (816)
--------------------------- ------------- ------------- -----------
Taxation - - -
--------------------------- ------------- ------------- -----------
Loss for the year (421) (472) (816)
--------------------------- ------------- ------------- -----------
Loss per share (expressed
in pence per share)
Basic (0.1p) (0.2p) (0.3p)
Diluted (0.1p) (0.2p) (0.3p)
--------------------------- ------------- ------------- -----------
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Unaudited Unaudited Audited
As at As at As at
31 December 31 December 30 June
2016 2015 2016
GBP'000 GBP'000 GBP'000
----------------------------- ------------- ------------- ---------
Non-current assets
Tangible fixed assets 889 791 868
Intangible assets 848 899 848
Other long term assets 502 405 479
----------------------------- ------------- ------------- ---------
2,239 2,095 2,195
----------------------------- ------------- ------------- ---------
Current assets
Trade and other receivables 1,095 907 1,150
Cash and cash equivalents 313 67 -
1,408 974 1,150
----------------------------- ------------- ------------- ---------
Total assets 3,647 3,069 3,345
Current liabilities
Trade and other payables (4,388) (4,093) (4,604)
Due to related parties (1,297) (1,590) (1,514)
----------------------------- ------------- ------------- ---------
(5,685) (5,683) (6,118)
----------------------------- ------------- ------------- ---------
Non-current liabilities
Provisions (487) (389) (466)
----------------------------- ------------- ------------- ---------
Total liabilities (6,172) (6,072) (6,584)
----------------------------- ------------- ------------- ---------
Net liabilities (2,525) (3,003) (3,239)
Shareholders' equity
Ordinary share capital 2,336 1,981 2,022
Share premium account 27,246 26,392 26,431
Reverse acquisition reserve 9,364 9,364 9,364
Other reserves (2,487) (2,487) (2,487)
Warrant reserve 355 355 355
Accumulated losses (39,339) (38,608) (38,924)
----------------------------- ------------- ------------- ---------
Total equity (2,525) (3,003) (3,239)
----------------------------- ------------- ------------- ---------
CONSOLIDATED STATEMENT OF CASH FLOW
Unaudited Unaudited Audited
6 months 6 months 12 months
ended ended ended
31 December 31 December 30 June
2016 2015 2016
GBP'000 GBP'000 GBP'000
---------------------------------- ------------- ------------- -----------
Cash flows from operating
activities
Cash used in operations (778) (354) (436)
Net cash used in operating
activities (778) (354) (436)
---------------------------------- ------------- ------------- -----------
Cash flows from investing
activities
Expenditure on tangible - - -
assets
Net cash used in investing - - -
activities
---------------------------------- ------------- ------------- -----------
Cash flows from financing
activities
Share capital issued
for cash 1,129 380 435
Net cash generated from
financing activities 1,129 380 435
---------------------------------- ------------- ------------- -----------
Net increase / (decrease)
in cash and cash equivalents 351 26 (1)
Cash and cash equivalents
at the start of the period - 1 1
Exchange (losses) / gains (38) 40 -
Cash and cash equivalents
at the end of the period 313 67 -
---------------------------------- ------------- ------------- -----------
NOTE: These statements have been prepared under International
Financial Reporting Standards as adopted by the European Union
using accounting policies consistent with those in the last Annual
Report.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR SDIFWSFWSEFD
(END) Dow Jones Newswires
March 31, 2017 02:00 ET (06:00 GMT)
Nu-oil And Gas (LSE:NUOG)
過去 株価チャート
から 12 2024 まで 1 2025
Nu-oil And Gas (LSE:NUOG)
過去 株価チャート
から 1 2024 まで 1 2025
