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Interim Results to 30 November 2010

28 Feb 2011

VICTORIA OIL AND GAS PLC (‘VOG’ or the ‘Company’)

INTERIM FINANCIAL REPORT FOR THE SIX MONTHS TO 30 NOVEMBER 2010

 

CHAIRMAN’S STATEMENT

 

Dear Shareholder,

It is my pleasure to provide an update of your Company since the release of the 2010 Annual Results. Following the AGM on the 30 November, VOG completed the fundraising of £10.8m in new equity to reinforce our capital base. This capital underpins our transformation to a producing and cash generating company at our flagship Logbaba Gas field in Cameroon.

Award of the Exploitation Decree for the Logbaba Gas Field, to be signed by the President of Cameroon, His Excellency Paul Biya, is imminent. We must remember that this is a very high profile project in Cameroon and the first Exploitation Decree of its type to be issued.  Once the decree has been issued, we expect to deliver first gas sales within five months.

Logbaba has aroused much interest in Cameroon. Over the last three months, Rodeo Development Limited, our subsidiary company in Cameroon has participated in many fact-finding meetings and discussions with Government, the Office of the President and industrial customers. In addition, we have had many community meetings and consultations with local chiefs and civic leaders. We are respecting these procedures and the response has been universally positive.

While these discussions have been underway, we have advanced the project on every front:

  • All design and engineering is complete.
  • All equipment has been procured and transported to site.
  • Expro Worldwide B.V, who has been awarded the contract for the leased process gas separation and cleaning facilities, has shipped their equipment into Cameroon and this is ready to be constructed and commissioned.
  • Contracts for civil works at the Logbaba site and trenching and installation of the pipeline have been tendered and evaluated and we are ready to award these contracts upon receipt of the Decree.
  • As for other permits, the Company has obtained a Certificate of Environmental Conformance from the Ministry of Environment and Natural Affairs. We have secured a Letter of Approval for the right to work in public roads from the Douala City Council, Public Works Department. In addition, the Company has negotiated Transit Agreements with two state companies, Magzi Industrial Estate and Camrail, (the state railway company,) upon whose land part of the pipeline will be installed and we expect these to be signed shortly. Finally, the Demolition and Construction Permits for civils works at the Logbaba Site have been reviewed and are ready to be granted from the Douala City Council, Department of Construction and Urban Environment.

We remain on course to have a very successful year at Logbaba. The delay in getting the Exploitation Decree is minor in the overall context of this project and the future remains very exciting for us all.

Meanwhile, operations at West Medvezhye, Russia are gathering momentum. Our gas tomography and passive seismic surveys concluded last year confirmed direct hydrocarbon indication in six accumulations. VOG’s technical team has carried our preliminary integration of the new data with existing datasets including seismic and well data. Work is progressing and the studies are highlighting several interesting leads for more detailed analysis and future drilling.

This month, we met with Russian geosciences consulting institutes with established experience in the region including OGFC Siberian Scientific & Analytical Centre, “SibNats” and Mineral LLC, “Mineral” to discuss technical collaboration. As a result, we have commissioned a seismic reprocessing and geological modelling study with Mineral to re-interpret certain targeted areas taking into account the newly integrated survey information.

Also in February, our technical team presented the results of our 2010 work programme and outlined forward plans for this year and 2012 to the Ministry of Natural Resources and other official bodies in Russia. I am delighted to report that the plans have been approved. We plan to drill two exploration/appraisal wells by the end of 2012. Drilling locations will be decided once we receive the results of the study by Mineral, which is expected to take 4 months and an additional 185 km of 2D seismic which will also be acquired this year.

In addition, we are assessing ways of exploiting the well 103 discovery to generate cash. This work will incorporate the 2011 subsurface studies and data acquisition and conceptual development studies to evaluate various surface production facilities and downstream options for commercialising these reserves.

Finally, we have extended the option to acquire Falcon Petroleum Limited which has assets in Mali and Ethiopia. In the meantime, the Company has also commissioned a third party evaluation to determine the prospectivity of the assets and a valuation range. This work is now complete and VOG is currently negotiating with the Directors of Falcon. We expect to provide a further update to the market shortly.

 

Kevin Foo

Chairman

 

 


 

 

UNAUDITED CONSOLIDATED INCOME STATEMENT

FOR THE HALF YEAR ENDED 30 NOVEMBER 2010

 

 

 

 

 

 

 

 

6 months

ended

30 November 2010

6 months

ended

30 November 2009

12 months

ended

31 May

2010

 

 

Unaudited

Unaudited

Audited

 

Notes

$000

$000

$000

 

 

 

 

 

Continuing operations

 

 

 

 

Administrative expenses

 

(2,053)

(3,155)

(5,796)

Other gains and (losses)

5

1,559

(472)

(133)

 

 

 

 

 

OPERATING LOSS

 

(494)

(3,627)

(5,929)

Interest received

 

21

18

71

Finance revenue

6

617

Finance costs

7

(360)

(863)

(866)

 

 

 

 

 

LOSS BEFORE TAXATION

 

(833)

(4,472)

(6,107)

Income tax expense

8

 

 

 

 

 

LOSS AFTER TAXATION

 

 

 

 

FOR THE PERIOD

 

(833)

(4,472)

(6,107)

 

 

 

 

 

 

 

 

 

Cents

 

Cents

 

Cents

Loss per share – basic

3

(0.06)

(1.11)

(0.63)

Loss per share – diluted

 

(0.06)

(1.11)

(0.63)

 

 

 

 

 

 

 

 

 

 

UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE HALF YEAR ENDED 30 NOVEMBER 2010

 

 

 

 

 

 

 

6 months

ended

30 November 2010

6 months

ended

30 November 2009

12 months

ended

31 May

2010

 

 

Unaudited

Unaudited

Audited

 

 

$000

$000

$000

 

 

 

 

 

 

 

 

 

 

 

Loss for the financial period

(833)

(4,472)

(6,107)

 

Exchange differences on translation of

foreign operations

(666)

218

70

 

 

 

 

 

 

TOTAL COMPREHENSIVE LOSS

 

 

 

 

FOR THE PERIOD

(1,499)

(4,254)

(6,037)

 

 

 

 

 

 

                 


 

 

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET

AS AT 30 NOVEMBER 2010

 

 

 

 

 

 

 

 

30 November

2010

30 November

2009

31 May

2010

 

 

Unaudited

Unaudited

Audited

 

Notes

$000

$000

$000

 

 

 

 

 

ASSETS:

 

 

 

 

NON CURRENT ASSETS

 

 

 

 

Intangible assets

4

122,543

102,360

115,917

Property, plant and equipment

 

351

143

221

Receivables

9

20,767

19,916

 

 

 

 

 

 

 

 

 

 

 

 

143,661

102,503

136,054

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

Receivables

9

17,917

1,038

1,776

Cash and cash equivalents

 

7,225

14,196

6,034

 

 

 

 

 

 

 

 

 

 

 

 

25,142

15,234

7,810

Held for sale assets

 

1,829

1,829

 

 

 

 

 

 

 

26,971

15,234

9,639

 

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

 

170,632

117,737

145,693

 

 

 

 

 

 

 

 

 

 

LIABILITIES:

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

Trade and other payables

10

(13,625)

(11,635)

(17,595)

Borrowings

 

(462)

(1,184)

(1,854)

 

 

 

 

 

 

 

 

 

 

 

 

(14,087)

(12,819)

(19,449)

 

 

 

 

 

 

 

 

 

 

NET CURRENT ASSETS /(LIABILITIES)

 

12,884

2,415

(9,810)

 

 

 

 

 

 

 

 

 

 

NON-CURRENT LIABILITIES

 

 

 

 

Borrowings

 

(762)

Convertible loan – debt portion

 

(659)

(1,150)

(529)

Derivative financial instruments

 

(254)

(925)

(24)

Deferred tax liabilities

 

(6,599)

(6,599)

(6,599)

Provisions

 

(6,704)

(2,945)

(7,406)

 

 

 

 

 

 

 

 

 

 

 

 

(14,216)

(12,381)

(14,558)

 

 

 

 

 

NET ASSETS

 

142,329

92,537

111,686

 

 

 

 

 

 

 

 

 

 

EQUITY:

 

 

 

 

Share capital

11

16,897

8,351

11,648

Share premium

 

182,240

137,987

155,636

ESOP Trust reserve

 

(584)

(271)

(293)

Translation reserve

 

(11,370)

(10,556)

(10,704)

Other reserves

 

4,408

3,820

3,828

Retained earnings – deficit

 

(49,262)

(46,794)

(48,429)

 

 

 

 

 

 

 

 

 

 

TOTAL EQUITY

 

142,329

92,537

111,686

 

 

 

 

 

 

 

 

 

 

           


 

 

UNAUDITED CONSOLIDATED STATEMENT OF CHANGES

IN EQUITY FOR THE HALF YEAR ENDED 30 NOVEMBER 2010

 

 

 

 

 

 

 

 

 

 

Share capital

Share premium

ESOP Trust reserve

Retained earnings / (deficit)

Translation reserve

Other reserve

Total

 

$000

$000

$000

$000

$000

$000

$000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At 31 May 2009

4,289

114,620

(124)

(42,322)

(10,774)

2,882

68,571

Shares issued

4,062

25,416

(147)

29,331

Total comprehensive loss for the period

(4,472)

218

(4,254)

Share issue costs

(1,111)

(1,111)

Recognition of share based

 

 

 

 

 

 

 

Payments

(938)

938

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At 30 November 2009

8,351

137,987

(271)

(46,794)

(10,556)

3,820

92,537

Shares issued

3,297

19,514

(22)

(655)

22,134

Total comprehensive loss for the period

(1,635)

(148)

(1,783)

Share issue costs

(1,202)

(1,202)

Recognition of share based

 

 

 

 

 

 

 

Payments

(663)

663

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At 31 May 2010

11,648

155,636

(293)

(48,429)

(10,704)

3,828

111,686

Shares issued

5,249

28,028

(370)

32,907

Total comprehensive loss for the period

(833)

(666)

(1,499)

Share issue costs

(844)

(844)

Recognition of share based

 

 

 

 

 

 

 

Payments

(580)

580

Credit for value of shares vested

by ESOP

79

79

 

 

 

 

 

 

 

 

At 30 November 2010

16,897

182,240

(584)

(49,262)

(11,370)

4,408

142,329

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


b

UNAUDITED CONSOLIDATED CASH FLOW STATEMENT

FOR THE HALF YEAR ENDED 30 NOVEMBER 2010

 

 

6 months

ended

30 November

2010

6 months

ended

30 November 2009

12 months

ended

31 May

2010

 

Unaudited

Unaudited

Audited

 

$000

$000

$000

 

 

 

 

CASH FLOW FROM OPERATING ACTIVITIES

 

 

 

Loss for the period

(833)

(4,472)

(6,107)

Non cash finance costs recognised in the income statement

130

63

866

Fair value loss/(gain) on embedded derivatives

230

373

(617)

Release of share based payment reserve

(655)

Depreciation and amortisation of non-current assets

218

104

207

Net foreign exchange gain

(1,258)

(500)

(568)

Value of shares vested by ESOP Trust

79

 

 

 

 

 

 

 

 

 

(1,434)

(4,432)

(6,874)

MOVEMENTS IN WORKING CAPITAL

 

 

 

Increase in trade and other receivables

(17,071)

(293)

(17,365)

Increase in available for sale assets and inventories

(1,829)

Increase / (decrease) in trade and other payables

(5,140)

8,697

17,523

 

 

 

 

 

 

 

 

NET CASH USED IN OPERATING ACTIVITIES

(23,645)

3,972

(8,545)

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

Payments for intangible fixed assets

(5,985)

(22,291)

(35,212)

Payments for tangible fixed assets

(145)

(124)

(310)

VAT recovered that had previously been capitalised

671

3,569

 

 

 

 

 

 

 

 

NET CASH USED IN INVESTING ACTIVITIES

(5,459)

(18,846)

(35,522)

 

 

 

 

CASH FLOW FROM FINANCING ACTIVITIES

 

 

 

Proceeds from issue of equity shares

31,807

29,331

51,624

Shares issued to ESOP trust

(291)

Payment of equity share issue costs

(844)

(1,111)

(2,193)

 

 

 

 

 

 

 

 

NET CASH GENERATED FROM FINANCING ACTIVITIES

30,672

28,220

49,431

 

 

 

 

 

 

 

 

NET INCREASE IN CASH AND CASH EQUIVALENTS

1,568

13,346

5,364

 

 

 

 

CASH AND CASH EQUIVALENTS BEGINNING OF THE PERIOD

6,034

711

711

Effects of exchange rate changes on the balance of cash held in foreign currencies

(377)

139

(41)

 

 

 

 

 

 

 

 

CASH AND CASH EQUIVALENTS END OF THE PERIOD

7,225

14,196

6,034

 

 

 

 

 

 

 

 

         

 

 


 

 

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 NOVEMBER 2010

 

1.            PRINCIPAL ACCOUNTING POLICIES

The annual financial statements of Victoria Oil & Gas Plc are prepared in accordance with International Financial Reporting Standards (IFRS) and in accordance with International Accounting Standard 34 ‘Interim Financial Reporting’.

The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the Group's annual consolidated financial statements for the year ended 31 May 2010.

The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Group's annual consolidated financial statements as at 31 May 2010.

At the date of these interim financial statements the following Standards and Interpretation were in issue but not yet effective:

Name of new Standards/amendments Effective from

IFRS 9 Financial Instruments 1 January 2013

IAS (revised Nov. 2009) Related Party Disclosures 1 January 2011

IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments 1 July 2010

 

The Directors anticipate that all of the above Standards and Interpretation will be adopted in the Group’s financial statements in future periods and that they will have no material impact on the financial statements of the Group in the period of initial application.

 

2.            SHARE OPTION EXPENSE

The fair value of warrants issued by the Company in respect of fees for share placings has been offset against Share Premium. The amount for the 6 months to 30 November 2010 was $580,000 (6 months to 30 November 2009 and 12 months to 31 May 2010: $938,000).

The warrants have been fair valued using a Black-Scholes option pricing model. The inputs into the Black-Scholes model were as follows:

 

30 November

2010

30 November 2009

31 May

2010

 

 

 

 

Number of warrants

11,076,445

14,983,020

14,983,020

Weighted average share price – pence sterling

4.00

4.51

4.51

Option term – years

3

3 to 5

3 to 5

Share exercise price – pence Sterling

2.72 to 5.01

3.77 to 6.02

3.77 to 6.02

Risk-free rate

0.25%

0.25%

0.25%

% Expected volatility

125%

122%

122%

Expected dividend yield

nil

nil

nil



The expected volatility was determined based on the historical movement in the Company’s share price over a period equivalent to the option period.

 

3.            LOSS PER SHARE

Basic earnings or loss per share is computed by dividing the profit or loss after tax for the year available to ordinary shareholders by the weighted average number of ordinary shares in issue and ranking for dividend during the year, excluding those held by the ESOP Trust. Diluted earnings or loss per share is computed by dividing the profit or loss after taxation for the financial year by the weighted average number of ordinary shares in issue, each adjusted for the effect of all dilutive potential ordinary shares that were outstanding during the year.


 



The following table sets forth the computation for basic and diluted loss per share.

 

 

 

 

 

30 November

30 November

31 May

 

2010

2009

2010

 

$000

$000

$000

Numerator:

 

 

 

Numerator for basic EPS – retained loss

(833)

(4,472)

(6,107)

 

 

 

 

 

 

 

Number

Number

Number

Denominator:

 

 

 

Denominator for basic EPS and diluted EPS

1,499,257,499

403,555,842

968,919,960

 

 

 

 

 

 

Cents

Cents

Cents

Loss per share – basic and diluted

(0.06)

(1.11)

(0.63)

 

 

 

 

 

 

 

 

 

Basic and diluted loss per share are the same, as the effect of the outstanding warrants is anti-dilutive and is therefore excluded.

 

4.            SEGMENTAL ANALYSIS

The Group operates in one class of business being the exploration for, development and production of oil and gas and in three geographical segments, namely the Russian Federation, Republic of Cameroon and the Republic of Kazakhstan.

The analysis by geographical segment is shown below:

 

Six months to 30 November 2010

 

Cameroon

Russia

Kazakhstan

Corporate

Total

 

$000

$000

$000

$000

$000

Administrative expenses

(253)

(497)

(57)

(1,246)

(2,053)

Other gains and (losses)

1,495

(108)

(30)

202

1,559

 


 


 


 


 


 

Operating loss

1,242

(605)

(87)

(1,044)

(494)

Interest received

-

-

-

21

21

Finance costs

-

-

-

(360)

(360)

 


 


 


 


 


 

Profit/(loss) after tax

1,242

(605)

(87)

(1,383)

(833)

Taxation

-

-

-

-

-

 


 


 


 


 


 

Profit/(loss) after tax

1,242

(605)

(87)

(1,383)

(833)

 


 


 


 


 


 

Total Assets

92,617

56,288

123

21,604

170,632

 


 


 


 


 


 

Total Liabilities

(25,516)

(386)

(5)

(2,396)

(28,303)

 


 


 


 


 


 

             



Six months to 30 November 2009

 

Cameroon

Russia

Kazakhstan

Corporate

Total

 

$000

$000

$000

$000

$000

Administrative expenses

(148)

(22)

-

(2,985)

(3,155)

Other losses

-

(7)

-

(465)

(472)

 


 


 


 


 


 

Operating loss

(148)

(29)

-

(3,450)

(3,627)

Interest received

-

12

-

6

          18

Finance costs

-

-

-

(863)

(863)

 


 


 


 


 


 

Loss before tax

(148)

(17)

-

(4,307)

(4,472)

Taxation

-

-

-

-

-

 


 


 


 


 


 

Loss after tax

(148)

(17)

-

(4,307)

(4,472)

 


 


 


 


 


 

Total Assets

47,335

59,796

114

10,492

117,737

 


 


 


 


 


 

Total Liabilities

(19,233)

(1,346)

(242)

(4,379)

(25,200)

 


 


 


 


 


 

             

Segmental Analysis (continued):

 

Twelve months to 31 May 2010

 

Cameroon

Russia

Kazakhstan

Corporate

Total

 

$000

$000

$000

$000

$000

Administrative expenses

(236)

(450)

(5,110)

(5,796)

Other gains and (losses)

203

262

(598)

(133)

 


 


 


 


 


 

Operating loss

(33)

(188)

(5,708)

(5,929)

Interest received

52

19

71

Finance revenue

617

617

Finance costs

(866)

(866)

 


 


 


 


 


 

Loss before tax

(33)

(136)

(5,938)

(6,107)

Taxation

 


 


 


 


 


 

Loss after tax

(33)

(136)

(5,938)

(6,107)

 


 


 


 


 


 

Total Assets

81,547

57,805

124

6,217

145,693

 


 


 


 


 


 

Total Liabilities

(15,440)

(1,507)

(17,060)

(34,007)

 


 


 


 


 


 

 

EXPLORATION AND EVALUATION ASSETS

 

The movement on exploration and evaluation assets, which relate to oil and gas interests, during the period was:

Six months to 30 November 2010

 

 

Opening balance

$000

 

Exchange $000

 

Additions $000

 

Disposals $000

 

Depreciation

$000

 

Closing Balance $000

Cameroon

 

58,305

 

1,820

 

6,588

 

 

 

66,713

Russia

 

57,612

 

(884)

 

361

 

(1,089)

 

(170)

 

55,830

 

 


 

 


 

 


 

 


 

 


 

 


 

November 30 2010

 

115,917

 

936

 

6,949

 

(1,089)

 

(170)

 

122,543

 

 


 

 


 

 


 

 


 

 


 

 


 

 

Six months to 30 November 2009

 

 

Opening balance

$000

 

Exchange $000

 

Additions $000

 

Disposals $000

 

Depreciation

      $000

 

Closing Balance $000

 

Cameroon

 

24,475

 

 

21,554

 

 

 

46,029

Russia

 

58,675

 

573

 

737

 

(3,569)

 

(85)

 

56,331

 

 


 

 


 

 


 

 


 

 


 

 


 

November 30 2009

 

83,150

 

573

 

22,291

 

(3,569)

 

(85)

 

102,360

 

 


 

 


 

 


 

 


 

 


 

 


 

                               

 

Twelve months to 31 May 2010

 

 

Opening balance

$000

 

Exchange

$000

 

Additions $000

 

Disposals $000

 

Depreciation           $000

 

Closing Balance $000

 

Cameroon

 

24,475

 

 

33,830

 

 

 

58,305

Russia

 

58,675

 

553

 

2,178

 

(3,591)

 

(203)

 

57,612

 

 


 

 


 

 


 

 


 

 


 

 


 

May 31 2010

 

83,150

 

553

 

36,008

 

(3,591)

 

(203)

 

115,917

 

 


 

 


 

 


 

 


 

 


 

 


 

                               

Oil and gas interests at 30 November 2010 represent exploration and related expenditure on the Group’s licences & permits in the geographical areas noted above. The realisation of these intangible assets by the Group is dependent on the discovery and successful development of economic reserves and the ability of the Group to raise sufficient funds to develop these interests. Should the development of economic reserves prove unsuccessful, the carrying value in the statement of financial position will be written-off.

The Directors have considered whether facts or circumstances exist that indicate that exploration and evaluation assets are impaired and considered that no impairment loss is required to be recognised as at 30 November 2010. Exploration and evaluation assets have been assessed for impairment having regard to the likelihood of further expenditures and ongoing appraisal for each geographical area.



5.            OTHER GAINS AND (LOSSES)

 

 

30 November

2010

30 November

2009

31 May

2010

 

 

Unaudited

Unaudited

Audited

 

 

$000

$000

$000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign exchange gains and (losses)

 

1,559

(472)

(133)

 

 

 

 

 

           



6.            FINANCE REVENUE

 

 

30 November

2010

30 November

2009

31 May

2010

 

 

Unaudited

Unaudited

Audited

 

 

$000

$000

$000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value gain on embedded derivatives

 

617

 

 

 

 

 

           



7.            FINANCE COSTS

 

 

30 November

2010

30 November

2009

31 May

2010

 

 

 

Unaudited

Unaudited

Audited

 

 

 

$000

$000

$000

 

 

 

 

 

 

 

Convertible loan interest

 

(130)

(427)

(759)

 

Fair value loss on embedded derivatives

 

(230)

(373)

 

Unwinding of discount on decommissioning costs

 

(63)

(107)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(360)

(863)

(866)

((863)

 

 

 

 

 

 

             

 

Interest payable relating to the convertible loans includes both the stated and effective interest charge.



8.            INCOME TAX EXPENSE

 

 

30 November

2010

30 November

2009

31 May

2010

 

 

 

Unaudited

Unaudited

Audited

 

 

 

$000

$000

$000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                             

At the balance sheet date, the Group has unused tax losses of $38.0m (30 November 2009: $35.0m; 31 May 2010:$37.7m) available for offset against future profit. No deferred tax asset has been recognised in either year due to the unpredictability of future profit streams. Accordingly, at the year end, deferred tax assets amounting to $10.7m (30 November 2009: $9.3m; 31 May 2010: $10.6m) have not been recognised.


 

 

 

9.            RECEIVABLES

 

 

30 November

2010

30 November

2009

31 May

2010

 

 

Unaudited

Unaudited

Audited

 

 

$000

$000

$000

           

Amounts due within one year:

 

 

 

VAT recoverable

113

137

278

 

Prepayments

91

31

254

 

Other receivables

17,713

870

1,244

 

             

 

 

 

 

 

 

 

 

 

17,917

1,038

1,776

 

 

 

 

 

 

                     

 

 

 

 

 

 

Other receivables at 30 November 2010 includes $14,706,000 due from subscribers for new ordinary shares in the Company issued in a placing on 15 November 2010 and $3,000,000 relating to RSM Production Corporation’s 40% carried interest in the Logbaba gas development. The amount recoverable from RSM Production Corporation will be recovered from their share of initial net cash flows and is therefore dependent of the successful construction and commissioning of facilities and sales to customers.

 

 

 

 

30 November

2010

30 November

2009

31 May

2010

 

 

Unaudited

Unaudited

Audited

 

 

$000

$000

$000

           

Amounts due in more than one year:

 

 

 

 

 

 

 

 

 

 

 

 

 

                     

 

 

 

 

 

 

 

 

Other receivables

20,767

_

19,916

 

 

 

 

 

 

                     

 

 

 

 

 

Other receivables due in more than one year relates to RSM Production Corporation’s 40% carried interest in the Logbaba gas development as described above.

 

10.            TRADE AND OTHER PAYABLES

 

 

 

 

 

 

30 November

2010

30 November

2009

31 May

2010

 

 

Unaudited

Unaudited

Audited

 

 

$000

$000

$000

           

Amounts due within one year:

 

 

 

Trade creditors

12,403

10,199

15,907

 

Taxes and social security costs

1,083

10

754

 

Accruals and deferred income

139

242

211

 

Other creditors

1,184

723

 

             

 

 

 

 

 

 

 

 

 

13,625

11,635

17,595

 

 

 

 

 

 

                     

 

 

 

 

 

11.            SHARE CAPITAL

Share capital as at 30 November 2010 amounted to $16.9 million. During the six months to 30 November 2010, the Group issued 676,263,527 shares for cash or in settlement of amounts due to creditors, increasing the number of shares in issue from 1,427,794,447 to 2,104,057,974.


 

 

12. RELATED PARTY TRANSACTIONS

Payments to Directors and other key management personnel are set out below.

 

 

 

30 November

2010

30 November

2009

31 May

2010

 

 

Unaudited

Unaudited

Audited

 

 

$000

$000

$000

 

 

 

 

 

Directors' remuneration

387

354

908

 

Other key management – short term benefits

316

82

1,043

 

Other key management – termination benefits

67

 

                       

 

The following table provides the total amount of transactions entered into by the Group with other related parties:

 

 

 

 

 

 

Purchases from related parties

Loans

repaid to related parties

Cash advances to related parties

Amounts due from / (to) related parties

 

$000

$000

$000

$000

 

 

 

 

 

6 months to 30 November 2010

 

 

 

Subsidiaries

6,773

56,458

Directors' other interests

788

(97)

Professional fees

483

 

 

 

 

6 months to 30 November 2009

 

 

 

Subsidiaries

1,883

43,272

Directors' other interests

414

(810)

Professional fees

705

 

 

 

 

12 Months to 31 May 2010

 

 

 

Subsidiaries

8,296

49,685

Directors' other interests

414

(876)

Professional fees

1,285

 

 

There was no intragroup trading or transactions between Group subsidiaries.

Radwan Hadi is Chief Operating Officer of the Company and a manager of Blackwatch Petroleum Services Limited, a firm of upstream oil and gas consultants. These accounts include $483,000 for the 6 months to 30 November 2010, (6 months to 30 November 2009: $705,000; 12 months to 31 May 2010: $1,285,000;) in relation to oil and gas technical services provided by Blackwatch Petroleum Services Limited to the Company.

In December 2008, HJ Resources Limited, a company owned by a discretionary trust of which Kevin Foo and certain members of his family are potential beneficiaries, provided unsecured loans to Victoria Oil & Gas International Limited totalling $1,188,000. Interest accrues at 0.5% per month. On 6 October 2010 the Company repaid $388,000 and on 20 October 2010 $400,000.

13.            POST BALANCE SHEET EVENTS

 

There were no post balance sheet events.

14.            APPROVAL OF INTERIM FINANCIAL STATEMENTS

 

The financial statements were approved by the Board of Directors on 25 February 2011.

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Interim Results to 30 November 2010602.52 KB