TIDMDPL
RNS Number : 2699P
Dominion Petroleum Limited
30 September 2011
30 September 2011
Dominion Petroleum Limited
("Dominion" or "the Company")
Half Year Results for 6 months ended 30 June 2011
Dominion is an independent oil and gas exploration company whose
core activity area is Africa, with current operations in Tanzania,
Kenya, Uganda and the Democratic Republic of Congo.
HIGHLIGHTS
-- Significant progress made in advancing Deepwater Block 7,
offshore Tanzania, with additional mapped prospects estimated at
between 1.3 Tcf and 6.5 Tcf (P90 to P10 range).
-- Production Sharing Ccontracts ("PSC's") entered into with
Government of Kenya in relation to:
o Block L9, offshore Kenya
o Block L15, offshore Kenya
-- Both Kenyan PSC's are contiguous to blocks operated by
significantly larger operators, where successful drilling has
already taken place.
-- US$10.7 million cash position as at 30 June 2011
Andrew Cochran, Dominion's Chief Executive, commented:
"Dominion has had an eventful first half of 2011. Most notably,
it has added exciting acreage with the acquisition of Blocks L9 and
L15 offshore Kenya. We believe that this combined with our existing
portfolio, on- and offshore East Africa, will attract industry
interest and allow us to retain a sizable portion of upside in
these highly prospective blocks.
"The failure of the resolutions at the SGM in connection with
Dominion's plans to strengthen its balance sheet and expand its
operations was clearly a disappointment for the Board and the
majority of Dominion's shareholders who had voted in favour of
them. Even with this disappointment, with Blocks L9 and Block L15
now added to its portfolio of exploration assets in offshore East
Africa, Dominion holds a leading exploration portfolio in the
deepwater East African margin with its three blocks in Tanzania and
Kenya.
"Clearly there is work to be done, but the directors anticipate
that the expanded, combined portfolio will gain even more industry
interest going forward. We believe that Dominion's shareholders
will be in a position to gain significant benefit from their
position as stakeholders in the exciting East African deepwater
play."
ENQUIRIES:
Dominion Petroleum Limited
Andrew Cochran, Chief Executive
Officer +44 (0) 20 7349 5900
Rob Shepherd, Finance Director
Pelham Bell Pottinger Limited
+44 (0)20 7861 3112 / +44 (0)7802
Archie Berens 442 486
RBC Capital Europe Limited, NOMAD
and Joint Broker +44 (0)20 7653 4000
Martin Eales
Jonathan Hardy
CHAIRMAN'S & CHIEF EXECUTIVE'S STATEMENT
INTRODUCTION
Dominion has had an eventful first half of 2011. Most notably,
it has added exciting acreage with the acquisition of Blocks L9 and
L15 offshore Kenya. We believe that this combined with our existing
portfolio, on- and offshore East Africa, will attract industry
interest and allow us to retain a sizable portion of upside in
these highly prospective blocks.
RESULTS (UNAUDITED)
As the group is continuing with exploration activities, Dominion
did not receive any revenues in the six month period ended 30 June
2011 (H1 2010: $nil), although $0.08 million was earned in interest
from cash on deposit (H1 2010: $0.02 million).
The loss before tax for the period was $3.6 million (H1 2010:
$4.2 million). The loss per share was US cents 0.23 based on
1,589,781,144 shares (H1 2010: US cents 0.33 based on 1,285,325,011
shares).
The Group's cash position at 30 June 2011 was $10.7 million (H1
2010: $40.1 million).
REVIEW OF OPERATIONS
Tanzania Deep Water Block 7 (Dominion Tanzania Ltd 100% working
interest ("WI"), Operator)
As previously disclosed, a large 3D seismic survey was acquired
at the end of 2010 across a lead identified as the Alpha structure.
A Fast Track volume has been interpreted, and the fully processed
Final 3D volume was delivered in late July. Overall the quality of
the fully processed data is good.
The results of the 3D seismic survey and subsequent analyses
will help the Company to re-assess potential volumes to improve
chances of success, not only for all the different target levels
within the Alpha structure but for other prospects mapped within
the survey area.
The Fast Track 3D has highlighted the presence of new
opportunities not apparent on the original 2D dataset. Examples of
the new Tertiary prospects include:
1. a Paleocene fan prospect (Amp 6, 7 & 10);
2. a shallow Eocene fan prospect (Amp 13); and
3. a Miocene/Pliocene channel prospect (Amp 08).
Based on the Fast Track 3D management estimate these three
mapped prospects alone could add cumulatively between 1.3 Tcf and
6.5 Tcf (P90 to P10 range) of prospective resources to Block 7.
Further work on these and other potential prospects and leads is
now continuing using the fully processed Final 3D volume.
Additional 3D seismic will be acquired on Prospect Alpha to
analyse the deeper Cretaceous targets. Management anticipates that
the perceived geological chance of success for both Tertiary and
Cretaceous prospects will improve as a consequence of the
additional 3D data whilst successful drilling offshore Tanzania and
Mozambique by other operators in the region may also de-risk the
prospects further.
Dominion was granted a one year extension to the initial
exploration period for Block 7 by the United Republic of Tanzania's
Ministry of Energy and Minerals, in March 2011. The extension to
the current period removes any obligation for the Company to
relinquish any portion of Block 7 until May 2012, providing
Dominion with sufficient time to fully evaluate the acreage before
the mandatory 50 per cent relinquishment.
Reprocessing of the Final 3D seismic volume was completed in
July 2011. The Company will initiate a full CPR in the coming
months once the dataset is fully interpreted. This CPR will focus
on all the prospects so far identified from the Pliocene to the
Lower Cretaceous targets.
Interpretation of the Fast Track 3D has led to a better
understanding of the whole of Block 7. This understanding has
provided management with increased confidence that the deepwater
Lambda and Mu leads may offer substantial additional prospectivity.
To this end, additional 2D is intended to be acquired as "in fill"
to the deeper water portion of Block 7, to improve the Company's
understanding of both of these prospects, as well as some
underlying large Cretaceous structural fans.
Dominion's intention is to seek farm-in partners for Block 7,
prior to commencing drilling operations in the first half of
2012.
Uganda Exploration Area 4B (Dominion Uganda Limited WI 100%,
Operator), Democratic Republic of Congo, Block V (Dominion DRC WI
46.75%)
EA4B and Block V are contiguous across the Lake Edward Basin,
which straddles the borders of the Democratic Republic of Congo and
Uganda. Both blocks are part of the Albertine Rift system of
sedimentary basins where Tullow has made numerous commercial oil
discoveries in recent years. Although the Ngaji-1 well on EA4B,
drilled in mid 2010, did not identify any significant hydrocarbons,
the well results did confirm the presence of many of the key
elements of a petroleum system, including good quality reservoir,
seals and possible Pliocene source.
On 27 April 2011, Dominion submitted an application to the
Government of Uganda seeking to enter the Third Exploration Period,
commencing in July 2011 and ending in July 2013 for EA4B. Given
that the Company has exceeded the minimum commitments for the
second period and is committing to undertake at least the minimum
programme required for the third period, the Company anticipates
the extension will be granted.
Dominion's exploration efforts in Uganda's EA4B are focused on
two prospects: Prospect "B", with 49.4 mmboe net prospective P50
resources; and the "Izzy" Prospect, with 83.7 mmboe net prospective
P50 resources (management estimates).
The security review over Block V in the DRC is ongoing. The
initial environmental and social impact assessment ("ESIA") was
submitted to the Groupe d'Etudes Environnementales du Congo in
March 2011. Following a period of review and consultation with
stakeholders, including various departments within the Government
of DRC, a final ESIA was submitted in May and was later
approved.
Over the next 12 months, Dominion and the Block V operating
partner, SOCO International, intend to acquire a joint high
resolution gravity survey across Lake Edward, spanning both the DRC
and Ugandan licences. This will be followed by a grid of prospect
specific 2D seismic data in Area 4B in Uganda and a more regional
grid in Block V, DRC.
Tanzania onshore
Following further evaluation of the results of the Kianika-1
well, on 23 March 2011, Maurel et Prom advised the relevant
authorities in Tanzania that the partners would be surrendering the
Mandawa contract area.
On 28 July 2011, Dominion requested TPDC that it be allowed to
relinquish the Selous PSA, dated 27 April 2006 and the Selous
Exploration Licence dated 19 June 2006.
Since the signing of the PSA and Exploration Licence by TPDC,
the Ministry of Energy and Minerals (MEM) and Dominion, access to
the contract area has been denied for exploration purposes due to
the special nature of the contract area falling within the Selous
Game Reserve (SGR). Whilst considerable efforts have been made by
all relevant parties to amend the legislation and develop
regulations to allow access, access to the area has been denied for
almost five years. Wishing to concentrate its resources and efforts
on the offshore Block 7 contract area, the Company has requested
the relinquishment.
Kenya
On 17 May 2011, Dominion entered into a PSC with the Kenyan
Ministry of Energy for a 100% working interest and operatorship of
the Block L9 PSC in the Lamu Basin, offshore Kenya. It is
anticipated that Dominion will retain a net operated working
interest of 60 per cent following transfers of interests to Flow
Energy Limited and Avana Petroleum Limited.
The award of Block L9 represents a significant achievement for
Dominion as the process was highly competitive. The surrounding
acreage is also all operated by significantly larger operators such
as Apache Corp, BG Group PLC, Anadarko Petroleum Corporation, and
Premier Oil PLC.
Block L9 was one of the last remaining opportunities for
unlicensed acreage along the whole of the deepwater East African
margin. The initial exploration period of the PSC lasts for two
years and will require the reprocessing of 2,500 line km of 2D
seismic, block wide geological and geophysical studies and the
acquisition of 500 sq km of 3D seismic data. Minimum expenditure
will total US$6.15 mln gross. Dominion will then either relinquish
the PSC or enter into the next two year PSC period carrying a
commitment to drill one exploration well.
This work programme does not need to take place until Apache has
drilled its highly prospective oil prospect Mbawa, located
immediately to the north in Block L8. A positive outcome would be
of material impact to Dominion's on trend, large Mbawa-South
prospect.
Management believes Block L9 represents an ideal opportunity for
organic expansion where Dominion can add value at relatively low
cost before leveraging its position through a farm-out.
On 1 August 2011, Dominion, as operator with a 100% working
interest, announced that it had been awarded Block L15 of the Lamu
Basin, offshore Kenya. The award of Block L15 is subject only to
the signature of a Production Sharing Contract ("PSC") by Dominion
and Kenya's Ministry of Energy; currently scheduled to take place
in October in Nairobi.
Block L15 lies immediately to the north of Block L8, where the
reportedly 1 billion barrel Mbawa prospect is due to be drilled in
mid 2012 by Apache. Dominion's new block lies on the same Davy-Walu
structural trend as Block L9 and may contain a minor extension of
Prospect Mbawa if filled to spill. The only well drilled to date in
Block L15 is Kofia-1 (Union Oil, 1985), which encountered good oil
shows in both the Palaeogene and Upper Cretaceous intervals.
Planned drilling by other operators along the Davy-Walu trend
over the next 12 months may serve to de-risk the prospectivity in
both L9 and L15 before firm drilling commitments are made in either
L15 or L9 PSC's.
Following signature of the PSC, the Initial Exploration Period
on the block will be for a period of two years. During this time, a
gross minimum work commitment of $2.85m inclusive of the
acquisition of 250km(2) of 3D seismic data is required. Following
this Initial Exploration Period, there is an option to relinquish
the PSC or commit to another two year exploration period with the
obligation to drill one well in that period.
The terms and the commitments for Block L15 defined in the HoA
compare very favourably to other countries in the region relative
to the potential resource the block represents.
Other
On 24 June 2011, Dominion announced its intention to raise
approximately US$55 mln (approximately GBP34.4 mln) by way of the
issue and sale of new and existing Consolidated Shares (the
"Placing Shares") in the Company (the "Placing"), with both new and
existing institutional investors.
Also and immediately prior to the issue and sale of the Placing
Shares, the Company proposed that the issued and unissued
US$0.00004 common shares of the Company would be consolidated on a
20 for 1 basis into common shares of a nominal value of
US$0.0008.
Approximately US$18 mln of the proceeds of the Placing were
intended to be used to repurchase at a discount and then cancel
approximately US$24 mln in face value of senior secured convertible
notes (the "Notes") held by certain noteholders and to repay any
additional amounts owed to them under the note.
On 27 June 2011, Dominion announced the placing, subject to
shareholder approval, of 35,782,981 Subscription Shares and
8,622,781 Sale Shares at a Placing Price of 70 pence per share.
On 25 July 2011, Dominion announced that, at the Special General
Meeting held on that day, resolutions were passed enabling James
Keyes and Gregory Tolaram to be appointed to the Board.
The remaining resolutions, which were interconditional, were not
passed due to one of the resolutions failing to receive votes in
favour representing 66% of the Company's issued share capital as
required by Company's Bye-laws. The final total of votes in favour
was 63.5% of the Company's Issued Share Capital and 99.7% of all
votes received were in favour of this resolution. As a result, the
Placing announced on 27 June 2011 could not be completed and the
150,134,241 common shares issued to BlueGold Global Fund L.P.
("BlueGold", the "BlueGold Shares") as announced earlier that day
were repurchased at the same price, such that the number of shares
in issue returned to the level prior to the issue of the BlueGold
Shares.
On 22 September 2011, Dominion announced that Mr. Andrew
Cochran's appointment to the Board as Chief Executive had been
formally ratified. Mr Cochran had also entered into a contract of
employment with the Company, on terms similar to those set out in a
circular issued by the Company on 27 June 2011.
Dominion also announced that Mr. Rob Shepherd had resigned from
the Board in order for the Board structure to comply with the
Company's bye-laws. Mr. Shepherd will continue in his role as the
Company's Finance Director.
Both Dennis Crema and Atul Gupta continue to support the Company
in an advisory capacity. It remains the intention of the Company to
ensure that they are all properly appointed to the Board in due
course.
The failure of the proposed resolutions at the SGM was clearly a
disappointment for the Board and the majority of Dominion's
shareholders who had voted in favour of them. Even with this
disappointment, with Blocks L9 and Block L15 now added to its
portfolio of exploration assets in offshore East Africa, Dominion
holds a leading exploration portfolio in the deepwater East African
margin with its three blocks in Tanzania and Kenya.
Clearly there is work to be done, but the directors anticipate
that the expanded, combined portfolio will gain even more industry
interest going forward. We believe that Dominion's shareholders
will be in a position to gain significant benefit from their
position as stakeholders in the exciting East African deepwater
play.
Roger Cagle Andrew Cochran
Chairman Chief Executive
29 September 2011
Dominion Petroleum Limited
Interim Results for 6 months ended 30 June 2011
INDEPENDENT REVIEW REPORT TO DOMINION PETROLEUM LIMITED
Introduction
We have been engaged by the company to review the condensed set
of financial statements in the half-yearly financial report for the
six months ended 30 June 2011 which comprises the consolidated
statement of comprehensive income, consolidated statement of
changes in equity, consolidated statement of financial position,
consolidated cash flow statement and related notes.
We have read the other information contained in the half-yearly
financial report and considered whether it contains any apparent
misstatements or material inconsistencies with the information in
the condensed set of financial statements.
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 in accordance with the rules of the London Stock
Exchange for companies trading securities on AIM which require that
the half-yearly report be presented and prepared in a form
consistent with that which will be adopted in the company's annual
accounts having regard to the accounting standards applicable to
such annual accounts.
Our responsibility
Our responsibility is to express to the company a conclusion on
the condensed set of financial statements in the half-yearly
financial report based on our review.
Our report has been prepared in accordance with the terms of our
engagement to assist the company in meeting the requirements of the
rules of the London Stock Exchange for companies trading securities
on AIM and for no other purpose. No person is entitled to rely on
this report unless such a person is a person entitled to rely upon
this report by virtue of and for the purpose of our terms of
engagement or has been expressly authorised to do so by our prior
written consent. Save as above, we do not accept responsibility for
this report to any other person or for any other purpose and we
hereby expressly disclaim any and all such liability.
Scope of review
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410, "Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity", issued by the Auditing Practices Board for use in
the United Kingdom. A review of interim financial information
consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other
review procedures. A review is substantially less in scope than an
audit conducted in accordance with International Standards on
Auditing (UK and Ireland) and consequently does not enable us to
obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do
not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that
causes us to believe that the condensed set of financial statements
in the half-yearly financial report for the six months ended 30
June 2011 is not prepared, in all material respects, in accordance
with the rules of the London Stock Exchange for companies trading
securities on AIM.
Emphasis of matter - Going concern
In forming our conclusion, which is not modified, we have
considered the adequacy of the disclosures made in note 1 of the
interim financial statements for the six months ended 30 June 2011
concerning the Group being reliant on securing additional funding
to continue to operate in their normal course of business for the
next 12 months. These conditions indicate the existence of material
uncertainties which may cast significant doubt about the Group's
ability to continue as a going concern. The interim financial
information does not include the adjustments that would result if
the Group was unable to continue as a going concern.
BDO LLP
Chartered Accountants and Registered Auditors
55 Baker Street
London
United Kingdom
29 September 2011
BDO LLP is a limited liability partnership registered in England
and Wales (with registered number OC305127).
Dominion Petroleum Limited
Interim Results for 6 months ended 30 June 2011
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Unaudited Unaudited Audited
----------------------- ------- ------------ ------------ ----------------
six months six months twelve months
----------------------- ------- ------------ ------------ ----------------
to 30 June to 30 June to 31 December
2011 2010 2010
----------------------- ------- ------------ ------------ ----------------
Notes $'000 $'000 $'000
----------------------- ------- ------------ ------------ ----------------
Administrative
expenses
----------------------- ------- ------------ ------------ ----------------
Share-based payments - (597) (597)
----------------------- ------- ------------ ------------ ----------------
Impairment charge - - (33,526)
----------------------- ------- ------------ ------------ ----------------
Other administrative
expenses (3,622) (3,307) (5,488)
----------------------- ------- ------------ ------------ ----------------
Total administrative
expenses (3,622) (3,904) (39,611)
----------------------- ------- ------------ ------------ ----------------
Loss from operations (3,622) (3,904) (39,611)
----------------------- ------- ------------ ------------ ----------------
Finance costs (14) (295) (63)
----------------------- ------- ------------ ------------ ----------------
Finance income 75 22 1,204
----------------------- ------- ------------ ------------ ----------------
Loss before taxation (3,561) (4,177) (38,470)
----------------------- ------- ------------ ------------ ----------------
Income tax expense (45) (29) (53)
----------------------- ------- ------------ ------------ ----------------
Loss for the
period/year (3,606) (4,206) (38,523)
----------------------- ------- ------------ ------------ ----------------
Other Comprehensive
Income
----------------------- ------- ------------ ------------ ----------------
Foreign exchange gain
on retranslation of
foreign operations 2 (10) 68
----------------------- ------- ------------ ------------ ----------------
Total comprehensive
income for the
period/year (3,604) (4,216) (38,455)
----------------------- ------- ------------ ------------ ----------------
Loss for the
period/year
attributable to:
Owners of the parent
Non-controlling (3,583) (4,183) (38,506)
interest (23) (23) (17)
----------------------- ------- ------------ ------------ ----------------
Total comprehensive
income attributable
to: Owners of the
parent
Non-controlling (3,581) (4,193) (38,438)
interest (23) (23) (17)
----------------------- ------- ------------ ------------ ----------------
Loss per share Basic
and diluted (US
cent) 3 (0.23) (0.33) (2.68)
----------------------- ------- ------------ ------------ ----------------
All amounts related to continuing activities.
Dominion Petroleum Limited
Interim Results for 6 months ended 30 June 2011
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Unaudited Unaudited Audited
------------------------- ------- -------------- ----------- -------------
30 June 31 December
30 June 2011 2010 2010
------------------------- ------- -------------- ----------- -------------
Notes $'000 $'000 $'000
------------------------- ------- -------------- ----------- -------------
ASSETS
------------------------- ------- -------------- ----------- -------------
Non - current assets
------------------------- ------- -------------- ----------- -------------
Property, plant and
equipment 346 477 402
------------------------- ------- -------------- ----------- -------------
Oil and gas exploration
expenditure 4 72,806 76,191 69,429
------------------------- ------- -------------- ----------- -------------
73,152 76,668 69,831
------------------------- ------- -------------- ----------- -------------
CURRENT ASSETS
------------------------- ------- -------------- ----------- -------------
Trade and other
receivables 1,644 1,190 1,753
------------------------- ------- -------------- ----------- -------------
Inventory 385 - 385
------------------------- ------- -------------- ----------- -------------
Cash and cash
equivalents 10,714 40,062 15,847
------------------------- ------- -------------- ----------- -------------
12,743 41,252 17,985
------------------------- ------- -------------- ----------- -------------
TOTAL ASSETS 85,895 117,920 87,816
------------------------- ------- -------------- ----------- -------------
EQUITY AND LIABILITIES
------------------------- ------- -------------- ----------- -------------
Equity attributable to
equity holders of the
parent
------------------------- ------- -------------- ----------- -------------
Share capital 63 63 63
------------------------- ------- -------------- ----------- -------------
Convertible debt option
reserve 9,573 9,179 9,495
------------------------- ------- -------------- ----------- -------------
Share premium 110,004 110,004 110,004
------------------------- ------- -------------- ----------- -------------
Share based payments
and warrants reserve 23,178 23,178 23,178
------------------------- ------- -------------- ----------- -------------
Currency translation
reserve (110) (190) (112)
------------------------- ------- -------------- ----------- -------------
Retained deficit (95,044) (57,138) (91,461)
------------------------- ------- -------------- ----------- -------------
Equity attributable to
equity holders of the
parent 47,664 85,096 51,167
------------------------- ------- -------------- ----------- -------------
Non-controlling
interest (160) (143) (137)
------------------------- ------- -------------- ----------- -------------
Total Equity 47,504 84,953 51,030
------------------------- ------- -------------- ----------- -------------
NON-CURRENT LIABILITIES
------------------------- ------- -------------- ----------- -------------
Convertible loan notes 5 33,751 29,064 31,202
------------------------- ------- -------------- ----------- -------------
33,751 29,064 31,202
------------------------- ------- -------------- ----------- -------------
CURRENT LIABILITIES
------------------------- ------- -------------- ----------- -------------
Trade and other
payables 4,537 3,815 5,526
------------------------- ------- -------------- ----------- -------------
Current tax payable 103 88 58
------------------------- ------- -------------- ----------- -------------
4,640 3,903 5,584
------------------------- ------- -------------- ----------- -------------
TOTAL LIABILITIES 38,391 32,967 36,786
------------------------- ------- -------------- ----------- -------------
TOTAL EQUITY AND
LIABILITIES 85,895 117,920 87,816
------------------------- ------- -------------- ----------- -------------
These interim financial statements were approved and authorised
for issue by the Board of Directors on 29 September 2011 and were
signed on its behalf by:
R. Shepherd
Dominion Petroleum Limited
Interim Results for 6 months ended 30 June 2011
CONSOLIDATED STATEMENT OF CASH FLOWS
Unaudited Unaudited Audited
-------------------------------- ------------ ------------ ----------------
six months six months twelve months
-------------------------------- ------------ ------------ ----------------
to 30 June to 30 June to 31 December
2011 2010 2010
-------------------------------- ------------ ------------ ----------------
$'000 $'000 $'000
-------------------------------- ------------ ------------ ----------------
CASH FLOWS FROM OPERATING
ACTIVITIES
-------------------------------- ------------ ------------ ----------------
Loss for the period/year (3,606) (4,206) (38,523)
-------------------------------- ------------ ------------ ----------------
Decrease/(increase) in
inventory - 255 (130)
-------------------------------- ------------ ------------ ----------------
Decrease/(increase) in other
receivables 109 (220) (782)
-------------------------------- ------------ ------------ ----------------
Increase /(decrease) in other
payables 175 (918) (1,217)
-------------------------------- ------------ ------------ ----------------
Income tax expense 45 24 53
-------------------------------- ------------ ------------ ----------------
Unrealised foreign exchange
movement (61) (121) (750)
-------------------------------- ------------ ------------ ----------------
Depreciation 66 99 230
-------------------------------- ------------ ------------ ----------------
Loss on disposal of property,
plant and equipment - 11 11
-------------------------------- ------------ ------------ ----------------
Impairment charge - - 33,526
-------------------------------- ------------ ------------ ----------------
Share based payment expense - 597 597
-------------------------------- ------------ ------------ ----------------
Finance income (17) (22) (59)
-------------------------------- ------------ ------------ ----------------
CASH USED IN OPERATIONS (3,289) (4,501) (7,044)
-------------------------------- ------------ ------------ ----------------
Income taxes paid - - (59)
-------------------------------- ------------ ------------ ----------------
NET CASH FROM OPERATING
ACTIVITIES (3,289) (4,501) (7,103)
-------------------------------- ------------ ------------ ----------------
INVESTING ACTIVITIES
-------------------------------- ------------ ------------ ----------------
Interest received 17 22 59
-------------------------------- ------------ ------------ ----------------
Oil and gas exploration
expenditure (1,920) (6,959) (29,140)
-------------------------------- ------------ ------------ ----------------
Proceeds from disposal of
plant and equipment - 2 2
-------------------------------- ------------ ------------ ----------------
Acquisition of property, plant
and equipment (10) (115) (172)
-------------------------------- ------------ ------------ ----------------
CASH USED IN INVESTING
ACTIVITIES (1,913) (7,050) (29,251)
-------------------------------- ------------ ------------ ----------------
FINANCING ACTIVITIES
-------------------------------- ------------ ------------ ----------------
Issue of ordinary share
capital (net of issue costs) - 46,827 46,827
-------------------------------- ------------ ------------ ----------------
Payment made for forfeiture of
options - (32) (32)
-------------------------------- ------------ ------------ ----------------
CASH FLOW FROM FINANCING
ACTIVITIES - 46,795 46,795
-------------------------------- ------------ ------------ ----------------
(Decrease)/increase in cash
and cash equivalents (5,202) 35,244 10,441
-------------------------------- ------------ ------------ ----------------
Cash and cash equivalents at
beginning of period/year 15,847 4,706 4,706
-------------------------------- ------------ ------------ ----------------
Exchange gains on cash and
cash equivalents 69 112 700
-------------------------------- ------------ ------------ ----------------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD 10,714 40,062 15,847
-------------------------------- ------------ ------------ ----------------
Dominion Petroleum Limited
Interim Results for 6 months ended 30 June 2011
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Equity
Convertible Share attributable
debt Based Currency to equity
Share option Share Payment translation Retained holders of Non-controlling Total
capital reserve premium Reserve reserve deficit the parent interest Equity
$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
Unaudited
At 1 January
2011 63 9,495 110,004 23,178 (112) (91,461) 51,167 (137) 51,030
Total
comprehensive
income for
the period - - - - 2 (3,583) (3,581) (23) (3,604)
Issue of share
capital (net
of issue
costs) - - - - - - - - -
Share based
payments - - - - - - - - -
Cash settled
options - - - - - - - - -
Equity portion
of
convertible
loan note - 78 - - - - 78 - 78
---------------- ------------- ---------- -------------- ----------------- ----------
At 30 June
2011 63 9,573 110,004 23,178 (110) (95,044) 47,664 (160) 47,504
---------------- --------- ------------- --------- --------- ------------- ---------- -------------- ----------------- ----------
Unaudited
At 1 January
2010 37 8,909 63,203 22,613 (180) (52,955) 41,627 (120) 41,507
Total
comprehensive
income for
the period - - - - (10) (4,183) (4,193) (23) (4,216)
Issue of share
capital (net
of issue
costs) 26 - 46,801 - - - 46,827 - 46,827
Share based
payments - - - 597 - - 597 - 597
Cash settled
options - - - (32) - - (32) - (32)
Equity portion
of
convertible
loan note - 270 - - - - 270 - 270
---------------- ------------- ---------- -------------- ----------------- ----------
At 30 June
2010 63 9,179 110,004 23,178 (190) (57,138) 85,096 (143) 84,953
---------------- --------- ------------- --------- --------- ------------- ---------- -------------- ----------------- ----------
Audited
At 1 January
2010 37 8,909 63,203 22,613 (180) (52,955) 41,627 (120) 41,507
Total
comprehensive
income for
the year - - - - 68 (38,506) (38,438) (17) (38,455)
Issue of share
capital (net
of issue
costs) 26 - 46,801 - - - 46,827 - 46,827
Share based
payments - - - 597 - - 597 - 597
Cash settled
options - - - (32) - - (32) - (32)
Equity portion
of
convertible
loan note - 586 - - - - 586 - 586
---------------- --------- ------------- --------- --------- ------------- ---------- -------------- ----------------- ----------
At 31 December
2010 63 9,495 110,004 23,178 (112) (91,461) 51,167 (137) 51,030
---------------- --------- ------------- --------- --------- ------------- ---------- -------------- ----------------- ----------
Dominion Petroleum Limited
Interim Results for 6 months ended 30 June 2011
NOTES TO THE CONSOLIDATED FINANCIAL INFORMATION
1. Accounting policies and presentation of financial
information
This half-year report was approved by the Directors on 29
September 2011. The condensed half-year financial statements have
been prepared using policies based on International Financial
Reporting Standards (IFRS and IFRIC interpretations) issued by the
International Accounting Standards Board (IASB) as adopted for use
in the EU except for IAS 34 . The condensed half-year financial
information has been prepared using the accounting policies which
will be applied in the Group's statutory financial statements for
the year ending 31 December 2011.
Going concern
The Group currently needs to secure additional funding to
finance the minimum exploration work programme and working capital
requirements for the next 12 months. The Group is currently
actively pursuing a number of options to provide finance however in
the current market there can be no certainty that any of these
transactions will complete.
These financial statements have been prepared on the going
concern basis as the Directors are confident that the Group will
raise sufficient funds but clearly there can be no certainty of
this given current market conditions.
These conditions indicate the existence of a material
uncertainty which may cast significant doubt about the Group's
ability to continue as a going concern. The financial statements do
not contain any adjustments that would result if the Group was
unable to continue as a going concern.
2. Financial Reporting Period
The condensed half-year financial information for the period 1
January 2011 to 30 June 2011 is unaudited. In the opinion of the
Directors the condensed half year financial information for the
period presents fairly the financial position, results from
operations and cash flows for the period, and are in conformity
with generally accepted accounting principles which have been
consistently applied. The accounts incorporate unaudited
comparative figures for the interim period from 1 January 2010 to
30 June 2010 and the audited financial year to 31 December
2010.
The financial information for the year ended 31 December 2010
does not constitute the full statutory accounts for that period.
The Annual Report and Financial Statements for 2010 are available
on request. The Independent Auditors' report on the Annual Report
and Financial Statements for 2010 was unqualified, however did draw
attention to certain matters by way of emphasis.
3. Loss per share
Unaudited Unaudited Audited
six months to six months to twelve months
30 June 30 June to 31 December
2011 2010 2010
Loss per share
Basic and diluted (US
cent) (0.23) (0.33) (2.68)
-------------------------- --------------- --------------- ----------------
Loss
Loss for the purpose of
basic and diluted
earnings per share (net
loss for the year) (3,583) (4,183) (38,506)
-------------------------- --------------- --------------- ----------------
Number of shares
Weighted number of
Ordinary Shares for the
purposes of basic and
diluted earnings per
share 1,589,781,144 1,285,325,011 1,438,804,267
-------------------------- --------------- --------------- ----------------
4. Other Intangible assets
Other intangible assets relate to deferred exploration costs.
The increase of $3.4 million relates primarily to capitalised
finance costs and processing of 3D seismic data offshore
Tanzania.
5. Convertible Loan Notes
Details of movements on convertible loan notes is given
below:
2011
$'000
---------------------------------------------- --------
Balance at 1 January 2011 31,202
Interest and accretion charge in the period 2,627
Proportion of PIK notes classed as equity (78)
---------------------------------------------- --------
Balance at 30 June 2011 33,751
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6. Contingent Liability
In 2009 the Group entered into an option with Maurel & Prom
("M & P") in respect of part of its interest in the Kisangire
PSA in Tanzania.
The option allowed M&P to acquire 35% of the Group's
residual interest for a period of up to 100 days following the
drilling of the commitment well. The commitment well was never
drilled and the Kisangire PSA was relinquished at the end of 2010.
As part of the relinquishment, the partners in Kisangire entered
into discussions with the Tanzania Petroleum Development
Corporation ("TPDC") in respect of a new licence area onshore
Tanzania. M&P has agreed in principle to novate the option
agreement from Kisangire to the new licence area. However at
present there is no binding agreement in place.
The minimum work programme for the new licence area does not
include a well commitment and it is possible that the seismic work
will not support the drilling of an exploration well, in which case
the M&P option will not be able to be executed.
The Directors are confident that the option can be formally
novated and that a well will be drilled on the new licence area. As
a consequence no provision relating to the penalty payments have
been provided in these financial statements. The potential net
liability is $11m.
7. Events after the reporting period
On 25 July 2011, Dominion announced that, at the Special General
Meeting held on that day, resolutions were passed enabling James
Keyes and Gregory Tolaram to be appointed to the Board.
The remaining resolutions, which were interconditional, were not
passed due to one of the resolutions failing to receive votes in
favour representing 66% of the Company's issued share capital as
required by Company's Bye-laws.
On 28 July 2011, Dominion requested TPDC that it be allowed to
relinquish the Selous PSA, dated 27 April 2006 and the Selous
Exploration Licence dated 19 June 2006.
On 1 August 2011, Dominion announced that it had been awarded
Block L15 of the Lamu Basin, offshore Kenya, following the
executing of a heads of agreement ("HoA") which defines the terms
for Block L15, with Dominion serving as operator with a 100%
working interest.
On 22 September 2011, Dominion announced that Mr. Andrew
Cochran's appointment to the Board as Chief Executive had been
formally ratified. Dominion also announced that Mr. Rob Shepherd
had resigned from the Board in order for the Board structure to
comply with the Company's Bye-laws.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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