RNS Number:4107J
Black Rock Oil & Gas PLC
31 March 2003
CHAIRMAN'S STATEMENT
FOR THE SIX MONTHS ENDED 31 DECEMBER 2002
Black Rock continues to review new investments and opportunities for acquisition.
A summary of our current licences is set out below.
During the period, and subsequent to 31 December 2002, Black Rock disposed of its entire shareholding and warrant
holding in Norwest Energy NL, which has strengthened the Company's cash position. Our holding in Norwest Energy NL
arose from the sale of an interest in an oil well drilled during October 2002, which was subsequently abandoned as
dry and so this asset trade for marketable securities has been a favourable outcome for the Company.
AUSTRALIA
EP 373 Canning Basin
The onshore Canning Basin of northern Western Australia is an extensive area of around 40,000 sq km. EP 373 is
located in the north central part of the basin and the Company is the operator and 100% permit holder. Efforts are
continuing to find a farm-in partner or partners for this block.
PEL 425 Darling Basin
PEL 425 is located in the Bancannia Trough, part of the Darling Basin of Western New South Wales, an area where minor
oil and gas shows have been reported both at surface and in wells. The licence is under-explored with only three
exploration wells drilled in the 1960's within the licence area of 10,425 square kilometres (approximately 2.57
million acres). A number of large structural leads have been mapped by Otto Oil Pty Ltd, from which this licence was
acquired in June 2001, using reprocessed seismic data.
EP 419, Perth Basin
Black Rock has reached agreement with Norwest Energy NL to farm-out an 80% interest in Permit EP-419 in the Perth
Basin. Under the terms of the agreement, Norwest Energy NL will assume the role of Operator and will pay all the
costs of reprocessing existing seismic data recorded within EP-419. The sale is subject only to formal documentation
and relevant Government approvals.
EUROPE
PEDL 113, PEDL 098 & PEDL 099 - Wessex Basin
Black Rock has farmed out its interests during August 2002 in these three blocks in southern England, where the
second phase of exploration has commenced through which Black Rock has been free carried whilst retaining a 10%
interest in each block. Northern Petroleum Plc has taken over from Black Rock as operator.
PEDL 042 & 026 - Weald Basin
PEDL 042 is to be relinquished during March 2003.
The administration problems caused by the insolvency of the previous operator, Independent Energy have not been fully
resolved on PEDL 026. However the Joint Venture partners have decided, based on technical work to date, to relinquish
the licence. No drillable prospects had been identified.
DIVIDENDS
The directors do not recommend the payment of a dividend at this time.
David Steinepreis
Chairman & Managing Director
28 March 2003
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE SIX MONTHS ENDED 31 DECEMBER 2002
(Unaudited) (Unaudited) (Audited)
six months ended six months ended Year ended
31 December 2002 31 December 2001 30 June 2002
Notes # # #
Group turnover - - -
Cost of sales - - -
Gross profit - - -
Administrative expenses before impairment of exploration expenditure and (138,180) (158,527) (365,524)
goodwill
Impairment of exploration expenditure and goodwill (54,258) (10,851) (2,406,091)
Group operating loss - continuing (192,438) (169,378) (2,771,615)
Profit on disposal of interest in exploration licence - continuing 174,062 - -
Loss on ordinary activities (18,376) (169,378) (2,771,615)
before interest
Interest receivable 193 5,513 6,261
Loss on ordinary activities (18,183) (163,865) (2,765,354)
before taxation
Taxation 3 - - -
Loss for the financial period (18,183) (163,865) (2,765,354)
Loss per ordinary share
Basic 2 (0.02p) (0.20p) (3.29p)
Diluted 2 (0.02p) (0.15p) (2.47p)
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
FOR THE SIX MONTHS ENDED 31 DECEMBER 2002
(Unaudited) (Unaudited) (Audited)
six months ended six months ended 31 December 2001 year ended
31 December 2002 30 June 2002
# # #
Retained loss for the period (18,183) (163,865) (2,765,354)
Exchange differences (27,895) (21,581) 4,290
Total gains and losses recognised for the (46,078) (185,446) (2,761,064)
period
CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2002
(Unaudited) (Unaudited) (Audited)
31 December 2002 31 December 2001 30 June 2002
Notes # # #
Fixed assets
Intangible assets 4 1,003,707 3,630,028 1,297,865
Tangible assets 229 503 382
1,003,936 3,630,531 1,298,247
Current assets
Debtors 51,700 22,570 31,569
Cash at bank and in hand 121,825 146,945 36,674
Listed investments 112,692 - -
286,217 169,515 68,243
Creditors: amounts falling due (69,181) (98,629) (99,440)
within one year
Net current assets/(liabilities) 217,036 70,866 (31,197)
Total assets less current 1,220,972 3,701,417 1,267,050
Liabilities
Net assets 1,220,972 3,701,417 1,267,050
Capital and reserves
Called up share capital 5 488,126 409,376 488,126
Shares to be issued 5 - 200,000 -
Share premium account 6 3,842,240 3,579,739 3,842,240
Profit and loss account 6 (3,109,394) (487,698) (3,063,316)
Shareholders' funds 7 1,220,972 3,701,417 1,267,050
CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 31 DECEMBER 2002
(Unaudited) (Unaudited) (Audited)
six months ended six months ended 31 December 2001 year ended
31 December 2002 30 June 2002
Notes # # #
Net cash outflow from operating 8 (130,796) (207,046) (388,838)
activities
Returns on investments and servicing
of finance
Investment income 193 5,513 6,261
(130,603) (201,533) (382,577)
Acquisitions and disposals
Net funds used for investing in (11,076) (95,973) (159,199)
exploration
Net cash outflow from acquisitions and (11,076) (95,973) (159,199)
disposals
Net cash inflow/(outflow) before (141,679) (297,506) (541,776)
financing
Financing
Proceeds from sale of listed 226,830 - -
investments
Proceeds from issue of shares - - 122,500
Cost of raising capital - (11,499) -
Net cash inflow/(outflow) from 226,830 (11,499) 122,500
financing
Increase/(decrease) in cash 9 85,151 (309,005) (419,276)
NOTES TO THE FINANCIAL INFORMATION
FOR THE SIX MONTHS ENDED 31 DECEMBER 2002
1. Basis of preparation
1.1 The financial information is prepared in accordance with the historical cost convention and in accordance with
applicable accounting standards and the Statement of Recommended Practice "Accounting for Oil and Gas Exploration,
Development, Production and Decommissioning Activities".
1.2 The results for the six month periods ended 31 December 2002 and 31 December 2001 are unaudited and do not
constitute statutory accounts as defined in section 240 of the Companies Act 1985. They have been prepared using
accounting bases and policies consistent with those used in the preparation of the financial statements of Black Rock
Oil & Gas PLC for the year ended 30 June 2002.
1.3 The comparative figures for the year ended 30 June 2002 are extracted from the statutory financial statements
which have been filed with the Registrar of Companies and which contained an unqualified audit report and did not
include a statement under section 237(2) or (3) of the Companies Act 1985.
2. Loss per ordinary share
The basic loss per ordinary share has been calculated using the loss for the financial period of #18,183 (six months
to 31 December 2001 - loss of #163,865; year ended 30 June 2002 - loss of #2,765,354) and the average number of
ordinary shares in issue of 97,625,200 (six months to 31 December 2001 - 81,851,559; year ended 30 June 2002 -
84,052,323).
The diluted loss per ordinary share has been calculated using the loss for the financial period of #18,183 (six
months to 31 December 2001 - loss of #163,865; year ended 30 June 2002 - loss of #2,765,354) and the average number
of ordinary shares in issue and those expected to be issued in respect of outstanding warrants and options of
106,745,240 (six months to 31 December 2001 - 111,922,987; year ended 30 June 2002 - 111,836,223).
3. Taxation
No liability to UK or overseas taxation has arisen during the period and no provision for deferred tax was considered
necessary.
4. Intangible assets
The intangible assets can be summarised as follows:
Exploration
and appraisal
expenditure Goodwill Total
# # #
Cost
At 1 July 2002 3,721,227 217,031 3,938,258
Exploration expenditure 11,076 - 11,076
Disposals (222,095) - (222,095)
Exchange loss (28,881) - (28,881)
________ ________ ________
At 31 December 2002 3,481,327 217,031 3,698,358
________ ________ ________
Amortisation and Impairment
At 1 July 2002 (2,495,520) (144,873) (2,640,393)
Charge for the period - (54,258) (54,258)
________ ________ ________
At 31 December 2002 (2,495,520) (199,131) (2,694,651)
________ ________ ________
Net book value
At 31 December 2002 985,807 17,900 1,003,707
======= ======= =======
At 30 June 2002 1,225,707 72,158 1,297,865
======= ======= =======
5. Share capital
31 December 2002 30 June 2002
# #
Authorised
200,000,000 ordinary shares of 0.5p each 1,000,000 1,000,000
======= =======
Allotted, called up and fully paid
97,625,200 ordinary shares of 0.5p 488,126 488,126
======= =======
The Company also has in issue warrants 45,600,200 exercisable at 1 penny each up to 1 May 2004 and 4,885,012 options
exercisable at 5 pence each up to 8 April 2004.
The movements in the share capital and the warrants are summarised below:
Number of Number of Number of
shares warrants options
At 1 July 2002 and 31 December 2002 97,625,200 45,600,200 4,885,012
========= ========= =========
6. Reserves
Movements in the share premium and profit and loss account during the period were as follows:
Share Profit
Premium and loss
# #
At 1 July 2002 3,842,240 (3,063,316)
Retained loss for the period - (18,183)
Exchange differences - (27,895)
________ ________
At 31 December 2002 3,842,240 (3,109,394)
======= =======
7. Reconciliation of movements in shareholders' funds - equity only
(Unaudited) (Unaudited) (Audited)
Six months to Six months to Year ended
31 December 2002 31 December 2001 30 June 2002
# # #
Loss for the period (18,183) (163,865) (2,765,354)
Net proceeds from issues of shares - (11,499) 329,752
Shares to be issued - 200,000 -
Exchange differences (27,895) (21,581) 4,290
________ ________ ________
(46,078) 3,055 (2,431,312)
Opening shareholders' funds 1,267,050 3,698,362 3,698,362
________ ________ ________
Closing shareholders' funds 1,220,972 3,701,417 1,267,050
======= ======= =======
8. Reconciliation of operating loss to net cash inflow from operating activities
(Unaudited) (Unaudited) (Audited)
Six months to Six months to Year ended
31 December 2002 31 December 2001 30 June 2002
# # #
Group operating loss (18,376) (169,378) (2,771,615)
Impairment of exploration expenditure - - 2,261,218
Decrease in debtors 23,198 10,027 1,029
Decrease in creditors/provisions (30,259) (37,119) (29,055)
Foreign exchange differences 2,131 (21,581) 4,429
Amortisation of goodwill 54,258 10,851 144,873
Depreciation 153 154 283
Profit on disposal of interest in
exploration licence (174,062) - -
Loss on sale of listed investments 12,161 - -
________ ________ ________
Net cash outflow from
operating activities (130,796) (207,046) (388,838)
======= ======= =======
9. Analysis of changes in net funds
(Unaudited) (Unaudited)
1 July 2002 Cash flow 31 December 2002
# # #
Cash at bank and in hand 36,674 85,151 121,825
======= ======= =======
INDEPENDENT REVIEW REPORT TO BLACK ROCK OIL & GAS PLC
Introduction
We have been instructed by the Company to review the financial information for the six months ended 31 December 2002,
which comprises the Consolidated Profit and Loss Account, the Statement of Total Recognised Gains and Losses, the
Consolidated Balance Sheet, the Consolidated Cash Flow Statement and the related notes.
We have read the other information contained in the interim report and considered whether it contains any apparent
misstatements or material inconsistencies with the financial information.
Directors' responsibilities
The interim report, including the financial information contained therein, is the responsibility of, and has been
approved by, the directors. The directors are responsible for preparing the interim report on the basis that the
accounting policies and presentation applied to the interim figures should be consistent with those applied in
preparing the preceding annual accounts except where any changes, and the reasons for them, are disclosed.
Review work performed
We conducted our review in accordance with guidance contained in Bulletin 1999/4 issued by the Auditing Practices
Board for use in the United Kingdom. A review consists principally of making enquiries of group management and
applying analytical procedures to the financial information and underlying financial data and based thereon,
assessing whether the accounting policies and presentation have been consistently applied unless otherwise disclosed.
A review excludes audit procedures such as tests of controls and verification of assets, liabilities and
transactions. It is substantially less in scope than an audit performed in accordance with United Kingdom Auditing
Standards and therefore provides a lower level of assurance than an audit. Accordingly, we do not express an audit
opinion on the financial information.
Review conclusion
On the basis of our review we are not aware of any material modifications that should be made to the financial
information as presented for the six months ended 31 December 2002.
Hacker Young
Chartered Accountants
London
28 March 2003
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