28 February 2014 Adriatic Oil Plc ("Adriatic", the "Company") Preliminary Announcement of Final Results The Board of Adriatic Oil Plc, the ISDX Growth Market quoted international oil and gas exploration Company, is pleased to present the results for the twelve months to 30 September 2013 (the "Period"), which has seen positive developments for the Company and a diversification of its portfolio interests, offering investors an opportunity to be part of a fast moving business run by a management team with a demonstrable track record. HIGHLIGHTS DURING THE PERIOD AND BEYOND - Successful equity Placing, raising £200,000 gross - Intention to seek Admission to AIM - Appointment of Competent Person - Ongoing work programme of Licensing Option 12/5, Shanagarry - Application made for two offshore blocks in the Italian Adriatic - Re-initiation of discussions with Albpetrol with regards to Albanian offshore Block North Rodoni During the Period, the Company incurred a loss after taxation of £549,469 representing a basic loss of 0.17p per share as compared to a loss after taxation in the previous year of £243,353 and a basic loss per share of 0.10p per share. CORPORATE REVIEW Intention to seek Admission to AIM The Company has announced its intention to apply for the Admission of the ordinary shares of the Company to trading on the AIM market of the London Stock Exchange ("AIM"). The Board intends the Company's potential Admission to AIM to be accompanied by a fundraising. Appointment of Competent Person SLR Environmental Consulting (Ireland) Ltd has been appointed as Competent Person to the Company and has been commissioned to prepare a Competent Person's Report ("CPR") in relation to all of Adriatic Oil's assets. This CPR marks a first in the Companyâ€²s history in that no previous third-party report of its nature has been prepared on Adriatic Oil's assets. The report is available on the Company's website: www.adriaticoil.com. Shanagarry - North Celtic Sea/Ireland The Work Programme of Licensing Option 12/5 Shanagarry, containing part-Blocks 49/18, 49/19, 49/20, 49/23, 49/24 and 49/25, and of which collectively 64.5% is farmed-out to Fastnet Oil & Gas plc, is ongoing. The Company expects to report about the developments by May 2014. Further information on the Licensing Option 12/5 Shanagarry and the respective work programme can be found in the Competent Person's Report ("CPR") which is available on the Company's website. Seaward Production Licence P1921 - UK North Sea On 3 September 2013, the Company announced that it had agreed with Elixir Petroleum Limited ("Elixir") to vary the terms of its Farm-In to the Seaward Production Licence P1921 in relation to Blocks 12/18 and 12/19c ("the Blocks"), which are located in the Inner Moray Firth area of the UK's North Sea. Under the terms of the variation of the Farm-In, Elixir agreed to assign an additional 55% Working Interest in the Licence to Adriatic Oil, increasing Adriatic Oil's total Working Interest in the Licence to 80% and leaving Elixir with a 20% Working Interest. The new arrangements were approved by the UK Department of Energy and Climate Change. Since then, the Company has decided to relinquish the Seaward Production Licence P1921 containing Blocks 12/18 and 12/19c in the Inner Moray Firth, following an evaluation of the licence The evaluation, which was fully funded by Adriatic, included re-processing and reinterpretation of existing 3D seismic data. It failed to identify sufficient prospectivity in the primary target interval to warrant entering into the second exploration period, for which there were substantial additional spending commitments. Elixir concurs with Adriatic's interpretation, and both parties have proceeded with the relinquishment of the Blocks. The Company intends to participate in the 28th North Sea Application Round, which is currently open for bids. Application for two offshore blocks in the Italian Adriatic An application for two Licence Blocks, d 169 A.R.-.AD and d 170 A.R.-.AD in the Northern Adriatic, offshore Italy, was made in April 2013. The Licence Blocks were formerly operated by ENI and Edison. Adriatic Oilâ€²s application in both blocks is for 100%. The area of the d 170 A.R.-.AD hydrocarbon licence application is located in the Northern Adriatic, near the Croatian offshore territorial border. The area is in shallow waters (20 to 40 metres) and lies some 25 to 30 kilometres away from the Italian coast, near the town of Rimini. It is located between three groups of gas fields: Annabella to the south-west, Andreina and Annamaria to the east, and Lavande-Tea-Arnica to the north-west. The d 169 A.R.-.AD Licence, for which an application has been made, is located just to the south-east of d 170 A.R.-.AD and partially follows the Italy-Croatia median line. The areas of the two licence applications are surrounded by substantial existing oil and gas infrastructure, comprising platforms, pipelines and some floating production, storage and offloading units ("FPSOs"). Re-initiation of discussions with Albpetrol about Albanian offshore Block North Rodoni Adriatic Oilâ€²s negotiations to potentially obtain the North Rodoni exploration Licence offshore Albania had previously been suspended. In November 2013, Adriatic Oil was contacted by Albpetrol indicating its interest to re-initiate discussions with regards to the possible award of Block North Rodoni. The licence area is 714km² in relatively shallow waters (a maximum of 120m water depth). There is one possible gas discovery on the Block, Rodoni - 1, which was drilled by OMV of Austria in 1996. In addition, a total of three other leads have been mapped by GasPlus and the National Agency for Natural Resources of Albania but they cannot be validated in the absence of seismic data that will only become available once the licence is potentially awarded. Discussions with Albpetrol are now ongoing. OUTLOOK Entering 2014, the Board and management team remains committed to its goals which project the achievement of further growth. As Chairman, I would like to take this opportunity to thank all shareholders and staff for their continued support. Jack A. G. Wilson Non-Executive Chairman On behalf of the Board February 2014 CONSOLIDATED INCOME STATEMENT FOR THE YEAR ENDED 30 SEPTEMBER 2013 2013 2012 GBP GBP Revenue - - Administrative expenses (549,469) (243,353) -------- -------- Loss before taxation (549,469) (243,353) Income tax - - Loss after taxation (549,469) (243,353) -------- -------- 2013 2012 EARNINGS PER SHARE Basic for profit for the year (0.0017) (0.0010) All of the Group's operations are classed as continuing. There were no gains or losses in the period other than those included in the above consolidated profit and loss account. CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 SEPTEMBER 2013 2013 2012 GBP GBP ASSETS NON CURRENT ASSETS Intangible assets 55,625 42,050 CURRENT ASSETS Available-for-sale financial assets 35,853 45,395 Trade and other receivables 41,266 - Prepayments 8,934 6,899 Cash and cash equivalents 61,578 364,392 -------- -------- 147,631 416,686 -------- -------- TOTAL ASSETS 203,256 458,736 -------- -------- EQUITY ISSUED CAPITAL AND RESERVES Issued share capital 1,641,465 1,467,619 Share premium 1,154,552 1,088,399 Reserves (883,167) (890,508) Retained profits (1,780,262) (1,230,793) -------- -------- TOTAL EQUITY 132,588 434,717 CURRENT LIABILITIES Trade and other payables 70,668 24,019 -------- -------- TOTAL EQUITY AND LIABILITIES 203,256 458,736 -------- -------- Notes: 1. The Group's financial statements for 2013 and the comparative figures for 2012 have both been prepared for the first time in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union and as applied in accordance with the provisions of the Companies Act 2006. 2. Loss per share from continuing operations attributable to equity shareholders 2013 2012 GBP GBP Loss: Loss for the purpose of basic and diluted loss per share being net (loss)/profit attributable to equity shareholders 549, 469 243,353 Number of shares: Weighted average number of ordinary shares for the purposes of basic loss per share 318,672,012 239,974,921 Loss per ordinary share: Basic (0.17)p (0.10)p Basic loss per share is calculated by dividing the loss attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the year. The calculation of diluted loss per share assumes conversion of all potential dilutive ordinary shares, all of which arise from share options or warrants. A calculation is done to determine the number of shares that could have been acquired at fair value, based upon the monetary value of the subscription rights attached to outstanding share options and warrants. Given the Group's reported losses for the year, outstanding share options and warrants are not taken into account when determining the weighted average number of ordinary shares in issue during the year, and therefore the basic and diluted loss per share are the same. 3. Announcement information The information contained within this announcement has been agreed with the Group's auditor. The financial information set out in this announcement does not constitute statutory accounts. 4. Dividend The Directors do not propose to recommend the payment of a final dividend for the year ended 30 September 2013. No final dividend was paid in relation to the year ended 30 September 2012. THE DIRECTORS OF THE COMPANY ACCEPT RESPONSIBILITY FOR THE CONTENTS OF THIS ANNOUNCEMENT --ENDS-- Enquiries: ADRIATIC OIL PLC Bruno Müller +44 (0) 20 3178 4060 SVS SECURITIES PLC - ISDX Growth Market Corporate Adviser +44 (0) 20 3700 0100 YELLOW JERSEY PR LIMITED - Financial PR Dominic Barretto / Anna Legge +44 (0) 20 3664 4087 NOTES TO EDITORS: Adriatic Oil Plc is a publicly quoted UK-incorporated international oil and gas exploration company with a portfolio of activities focused on the North Celtic Sea, the UK North Sea and the Adriatic Sea Basin. In the North Celtic Sea, the Company has agreed with Fastnet Oil & Gas plc to farm-out 64.5% of its original 80% interest in a Licensing Option which covers an area of 881 sq. km. Following execution of the Farm-in Agreements, the Company will hold 15.5% of the Licensing Option. The Company has a second small carried interest in offshore Western Ireland. Adriatic Oil is also focused on making and progressing applications for offshore exploration opportunities in Albania, which holds the largest onshore oilfield ever found in Europe with 5.7 billion barrels of oil in place. Adriatic Oil's strategy is to add shareholder value by proving and developing leads and plays in areas which the Directors of the Company consider to be high potential oil and gas provinces. Adriatic Oil's ordinary shares are quoted on the ISDX Growth Market (operated by ICAP Securities & Derivatives Exchange Limited) under the ticker symbol 'ADOP'. The Company's website is available at www.adriaticoil.com. END END -0- Feb/28/2014 10:07 GMT
ADRIATIC OIL PLC: Preliminary Announcement of Final Results
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