Interim Results for the Six Months Ended 30 June 2023

Source Press Release
Company Baron Oil PLC 
Tags Capital Spending, Financial & Operating Data
Date September 25, 2023

Baron Oil Plc (AIM: BOIL), the AIM-quoted oil and gas exploration and appraisal company focused on assets in SE Asia and the UK, is pleased to announce its unaudited interim results for the six months ended 30 June 2023.

Chief Executive's Statement

Timor-Leste TL-SO-19-16 PSC ("Chuditch PSC" or "PSC") (Baron 75% interest)

The Company's strategic and operational priority this year continues to be to prepare for the drilling and testing of an appraisal well on the Chuditch-1 gas discovery. Success here will prove up the commerciality of the 1,165 Bcf of gas (194MMboe) gross Pmean Contingent Resources in the field and de-risk an additional 1,651 Bcf (275MMboe) of gross Pmean Prospective Resources. The granting of a further six-month PSC extension in June 2023 demonstrates the strength of our relationships in Dili.

Our ongoing discussions with potential funding partners provide additional affirmation that the technical case is robust and there is alignment on the requirement for drilling an appraisal well on Chuditch, followed by additional exploration activities to delineate the total on block gas resources for this LNG scale project.

Technical activities during 2023 have been focused on further detailed interrogation of our data, to identify optimal candidate locations for Chuditch appraisal drilling, including additional geophysical work and environmental impact studies. Based on these studies, we have selected a preferred appraisal drilling location, which is approximately 4.8km from the Chuditch-1 discovery well. This represents a substantial step-out, illustrating the size of the field and our confidence in the reprocessed seismic datasets. This location is now being input into the detailed well planning programme. In anticipation of the proposed drilling of an appraisal well, the Company is in discussions with various contractors and is actively assessing the availability of suitable rigs, equipment and personnel.

Dunrobin (UKCS P2478) - Reabold (Admin.) 36%; Baron 32%; Upland Resources 32%

The publication of the CPR by RPS Group in February 2023 provided independent confirmation of the Company's belief that the western part of the Dunrobin complex had matured into a drillable prospect where a relatively low-cost exploration well can target more than 100 MMbbl of gross Pmean Prospective Resources with modest geological risk.

In July 2023, post period end, the joint venture announced that it had been granted a two-year extension to Phase A of the licence by the UK North Sea Transition Authority ("NSTA"). The additional commitment is to acquire a minimum of 30 square kilometres of 3D seismic data which will complete the 3D coverage over the Dunrobin West prospect.

Plans for execution of this new seismic programme during the first half of next year are underway with contractors, stakeholders and the NSTA. On completion of this work, aimed primarily at further reducing pre-drill risks and volumetric uncertainty, the partners intend to re-engage with potentially interested third parties in respect of the drilling of an exploration well. A 'Drill or Drop' decision on P2478 is now required on or before 14 July 2025.

New Ventures

Baron continues to pursue additional new venture opportunities, to enhance and complement the existing portfolio. In particular, we await the outcome of the UK 33rd Round of Licensing where we participated in a licence application as a non-operating partner. The NSTA has recently indicated that any offer would be made before the end of 2023.

Corporate

The net loss after finance costs and tax of £847,000 (30 June 2022: net loss of £419,000; year to 31 December 2022: net loss of £1,387,000), represented a loss of 0.004p per share (30 June 2022: 0.003p; year to 31 December 2022: 0.010p).

We continue to build out our operations, either in support of existing projects or in the pursuit of new opportunities. We are able to do this as the Company has a well-funded balance sheet which more than covers our current activities and commitments. Available cash (excluding monies held as security for the bank guarantee in Timor-Leste) as at 30 June 2023 was £4,619,000 (30 June 2022: £2,365,000; 31 December 2022: £5,807,000).

On 1 July 2023, Dr. Andy Butler joined the Board as Director, Asia Pacific. He has been closely associated with Baron and Chuditch from the outset through our initial new venture partnership to the capture and de-risking of the TL-SO-19-16 PSC in Timor-Leste. He adds technical and commercial capacity to the Board as well as providing access and expertise in Asia. Andy continues to manage the Timor-Leste project.

During August 2023, we completed the switch over of the US$1m Bank Guarantee ("BG") for the Chuditch PSC from United Overseas Bank Limited of Singapore to ANZ Banking Group Limited in Timor-Leste. In line with its full ownership of both SundaGas (Timor-Leste Sahul) Pte. Ltd. and SundaGas Banda Unipessoal Lda., Baron has provided 100% of the funds required for the BG. 

John Wakefield, Non-Executive Chairman, commented:"

All of our efforts are currently focused on the Chuditch PSC drilling decision to be made late in 2023 for a Chuditch-1 appraisal well. We are making good progress and are in advanced discussions with a number of potential funding partners. We look forward to updating shareholders as soon as we are able."

Qualified Person's Statement

Pursuant to the requirements of the AIM Rules - Note for Mining and Oil and Gas Companies ("AIM MOG"), the technical information and resource reporting contained in this announcement has been reviewed by Jon Ford BSc, Fellow of the Geological Society, Technical Director of the Company. Mr Ford has more than 40 years' experience as a petroleum geoscientist. He has compiled, read and approved the technical disclosure in this regulatory announcement and indicated where it does not comply with the Society of Petroleum Engineers' SPE PRMS standard.

Consolidated Income Statement 
for the six months ended 30 June 2023 
    6 months to    6 months to    Year to 
    30 June    30 June    31 December 
    2023    2022    2022 
  Note  Unaudited    Unaudited    Audited 
    £'000    £'000    £'000 
Revenue                     -                      -                      -    
Cost of sales                     -                      -                      -    
             
Gross loss                  -                     -                     - 
             
Exploration and evaluation expenditure    (93)           (120)              (213) 
Property, plant and equipment depreciation             (17)                  (8)                (33) 
Receivables reduction in impairment                     -                     44                   -    
Administration expenses  (778)    (497)    (1,191) 
Profit/(loss) arising on foreign exchange    (37)    161    43 
             
Operating loss  (925)    (420)    (1,394) 
             
             
Finance cost    (4)    (1)    (5) 
Finance income    82      12 
             
Loss on ordinary activities before taxation    (847)    (419)    (1,387) 
             
Income tax (expense)/benefit                  -                   -                      -    
             
Loss on ordinary activities after taxation    (847)    (419)    (1,387) 
             
Loss on ordinary activities after taxation attributable to owners of the parent    (847)    (419)    (1,387) 
             
Earnings per share: basic  (0.004)p    (0.003)p    (0.010)p 
             
Diluted  (0.004)p    (0.003)p    (0.010)p 
             
 



Consolidated Statement of Comprehensive Income 
for the six months ended 30 June 2023 
    6 months to    6 months to    Year to   
    30 June    30 June    31 December   
    2023    2022    2022   
    Unaudited    Unaudited    Audited   
    £'000    £'000    £'000   
Loss on ordinary activities after taxation attributable to owners of the parent    (847)    (419)    (1,387)   
               
Other comprehensive income: items which may subsequently be reclassified to profit and loss               
Exchange difference on translating foreign operations    (144)    55    174   
Total comprehensive income for the period    (991)    (364)    (1,213)   
               
Total comprehensive income attributable to owners of the parent    (991)    (364)    (1,213)   
               



Consolidated Statement of Financial Position 
at 30 June 2023 
    30 June    30 June    31 December   
    2023    2022    2022   
    Unaudited    Unaudited    Audited   
Assets  Note  £'000    £'000    £'000   
Non-current assets               
Property, plant and equipment                58                  40    78   
Intangible fixed assets    3,728    3,266    3,696   
               
    3,786    3,306    3,774   
Current assets               
Receivables    117    119    101   
Performance bond guarantee deposit  790    823    827   
Cash and cash equivalents    4,619    2,365    5,807   
               
    5,526    3,307    6,735   
               
Total assets    9,312    6,613    10,509   
               
Equity and liabilities               
Capital and reserves attributable to owners of the parent               
Called up share capital  10  4,746    3,583    4,730   
Share premium account    38,881    34,882    38,846   
Share option reserve    319    332    332   
Foreign exchange translation reserve    1,591    1,616    1,735   
Retained earnings    (36,389)    (34,587)    (35,555)   
Total equity    9,148    5,826    10,088   
               
Current liabilities               
Trade and other payables    126    760    377   
Taxes payable    14    13    14   
               
    140    773    391   
               
Non-current liabilities               
Lease finance    24    14    30   
               
Total liabilities    164    787    421   
               
Total equity and liabilities    9,312    6,613    10,509   



Consolidated Statement of Cash Flows 
for the six months ended 30 June 2023 
    6 months to    6 months to    Year to 
    30 June    30 June    31 December 
    2023    2022    2022 
    Unaudited    Unaudited    Audited 
  Note  £'000    £'000    £'000 
             
Operating activities  11  (1,172)    (511)    (1,750) 
             
             
Investing activities             
Return from investment and servicing of finance    82                   2                  12 
Performance bond guarantee deposit                     -                119                128 
Additions to exploration and evaluation assets    (130)            (383)              (806) 
Acquisition of tangible assets                     -    (15)                (17) 
             
    (48)    (277)    (683) 
Financing activities             
Proceeds from issue of share capital                    51            1,508            6,619 
Lease financing    (19)    (5)    (29) 
    32    1,503    6,590 
             
             
Net cash (outflow)/inflow    (1,188)    715    4,157 
Cash and cash equivalents at the beginning of the period    5,807    1,650    1,650 
             
Cash and cash equivalents at the end of the period    4,619    2,365    5,807 
             



             
Consolidated Statement of Changes in Equity           
for the six months ended 30 June 2023             
        Share  Foreign   
  Share  Share  Retained  option  exchange  Total 
  capital  premium  earnings  reserve  translation  equity 
  £'000  £'000  £'000  £'000  £'000  £'000 
As at 1 January 2022  2,896  34,061  (34,224)  388  1,561  4,682 
             
Shares issued  1,834  4,785                  -                  -                   -  6,619 
Transactions with owners (net of transaction costs)  1,834  4,785                  -                 -                    -  6,619 
Loss for the year attributable to equity shareholders                  -                   -  (1,387)                  -                   -  (1,387) 
Share option reserve released                  -                  -  56  (56)                   -                  - 
Foreign exchange translation adjustments                  -                  -                  -                  -  174  174 
Total comprehensive income for the period  (1,331)  (56)  174  (1,213) 
             
As at 1 January 2023  4,730  38,846  (35,555)  332  1,735  10,088 
             
Shares issued  16  35                  -                  -                    -  51 
Transactions with owners  16  35                  -                  -                    -  51 
Loss for the year attributable to equity shareholders                   -                   -  (847)                  -                    -  (847) 
Share based payments                  -                  -  13  (13)                    -                  - 
Foreign exchange translation adjustments                  -                  -                  -                  -  (144)  (144) 
Total comprehensive income for the period                  -                   -  (834)  (13)  (144)  (991) 
             
As at 30 June 2023  4,746  38,881  (36,389)  319  1,591  9,148 
             
                       
Source: EvaluateEnergy® ©2024 EvaluateEnergy Ltd