Cap Energy Ltd
LSE : CAPP
|
November 04, 2009 02:00 ET
Announcements of Results
04/11/2009
GB00B0MH9D42/GBP/PLUS-exn
CAP ENERGY LIMITED
("CAP" or the "Company")
Audited Results for the year ended 31 December 2009
and Unaudited Results for the six months ended 30 June 2009
CHAIRMAN'S STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2008
The Chairman presents his statement for the period.
At the beginning of 2008, the Company had largely eliminated its operating losses by selling a number of its
Oklahoma properties, and had completed a small share placing to provide funds for new acquisitions. Remaining
production was cash positive but revenue was substantially decreased by the drop in energy prices.
At the end of December, 2008, following protracted negotiation, evaluation and due diligence, CAP announced that its
wholly-owned US subsidiary, CAP Energy USA, Inc. ("CAPUSA") had exchanged contracts on the acquisition of interests
in the Starks Dome oilfield in southern Louisiana from CSV Holdings, Inc. ("CSV"). Total consideration due was
US$350,000 cash and US$650,000 in shares (at 10p), loan notes or cash, giving CSV a maximum 29.9% shareholding in
CAP. As part of the agreement, CSV had the right to nominate a further director for both CAP and CAPUSA at such
time as it wished.
The assets acquired comprised working interests in seven producing oil wells and three new wells shortly to be
completed for production, plus the right to participate at base cost in any new wells to be drilled on CSV's lease.
Included in the acquisition was the right to participate in the recompletion of up to forty existing wells in the
Starks Dome Field which contained unproduced oil reserves in the upper zones of the wells.
Included also in the acquisition was the right to participate in the recompletion of a productive well drilled on
the Iberia Dome structure in southern Louisiana. CAPUSA would earn a 10% share of CSV's interest, with much of the
cost success-based. While this project has a higher risk profile than the Starks Dome project, there is a real
possibility of achieving rates of production many times higher, of both oil and gas. The Iberia Dome Field has
already produced large quantities of oil and gas, so pipeline facilities are already in place.
This acquisition represents a major step change for CAP. Apart from the fact that the producing interests are a
scale larger than its existing assets, there is potential for many years' drilling and recompletion activity at
Starks Dome at base costs, with progressively deeper and more prolific production potential as oil prices and
economics allow. The Iberia Dome project has the potential to make a substantial further increase in CAP's asset
value, combined with a relatively low cost/low risk first phase. With a large portion of its consideration being in
CAP's shares and convertible loan notes, CSV has every incentive to help the company grow successfully.
In early 2009, CAP sought to raise funds for field development and payment of the outstanding cash balance
($100,000) due on the acquisition by the issue of convertible loan notes. This proved difficult in the current
economic climate, so payment for the acquisition was completed in October 2009 by the issue of £268,740 of
Convertible Loan Notes to the vendor, in lieu of the outstanding cash balance, some field development costs and the
consideration due in shares which could not be issued in excess of CSV's holding of 29.9% in CAP. Total Convertible
Loan Notes issued amounted to £507,490 of which £238,750 was for cash which will be used for field development,
corporate overhead and accrued acquisition expenses.
CAP now has a 25% interest in seven producing wells at Stark's Dome, with three new wells shortly to commence
production. A program of recompletion of existing non-producing wells will follow, with the prospect of the company
then producing a positive cash flow for the first time, and a major long term asset being progressively developed.
Added to this is the possibility of prolific production from the Iberia Dome project at low cash risk.
On a sad note it is with regret that in February of this year, CAP had to announce the death of Philippe Schreiber,
its legal/financial director in the USA since the Company's formation in 2005.
In summary, the Directors believe that the major changes to CAP's operating strategy described above will secure a
more interesting and positive future.
Timothy Hearley
Chairman
CAP ENERGY LIMITED
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2008
2008 2007
£ £
44,602 74,348
TURNOVER
(36,770) (71,729)
Cost of sales
7,832 2,619
GROSS PROFIT
(133,585) (157,833)
Administrative expenses
(125,753) (155,214)
OPERATING LOSS
EXCEPTIONAL ITEMS
130,174 (28,888)
Other exceptional items
4,421 (184,102)
PROFIT/(LOSS) ON ORDINARY ACTIVITIES BEFORE INTEREST
1,944 1,180
Interest receivable
6,365 (182,922)
PROFIT/(LOSS) ON ORDINARY ACTIVITIES BEFORE TAXATION
- -
Tax on profit/(loss) on ordinary activities
6,365 (182,922)
PROFIT/(LOSS) FOR THE FINANCIAL YEAR
EARNINGS/(LOSS) PER SHARE 0.00 (0.04)
The Directors do not recommend payment of a dividend.
CAP ENERGY LIMITED
CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2008
2008 2007
£ £ £ £
FIXED ASSETS
864,969 155,954
Tangible fixed assets
CURRENT ASSETS
10,995 9,469
Debtors
32,594 108,045
Cash at bank
43,589 117,514
(585,020) (191,397)
CREDITORS: amounts falling due within one year
(541,431) (73,883)
NET CURRENT LIABILITIES
323,538 82,071
TOTAL ASSETS LESS CURRENT LIABILITIES
CAPITAL AND RESERVES
30,660 20,835
Called up share capital
1,126,615 945,438
Share premium account
44,100 -
Foreign exchange reserve
(877,837) (884,202)
Profit and loss account
SHAREHOLDERS' FUNDS 323,538 82,071
The above results are an extract from the full audited financial statements. A full version of these figures can be
found on the Report and Accounts section of the Company on the PLUS website.
CAP ENERGY LIMITED
INTERIM RESULTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
Cap Energy Limited is pleased to announce its unaudited interim results for the six months to 30 June 2009.
Chairman's Statement
The Company has made a loss for the period of GBP64,629 in line with expectations.
At 30 June 2009 the Company had interests in thirteen producing wells and one water disposal well, over five
locations in the USA. The seven Stark's Dome producing wells, acquired at the end of 2008, generated a small
operating surplus in the first six months, reflecting the very low oil prices in that period. A more positive
effect will be seen in the final quarter of the year, with higher oil prices and three more wells coming on
production.
UNAUDITED CONSOLIDATED PROFIT AND LOSS ACCOUNT
For the period ended 30 June 2009
6 Months ended 6 Months Year ended
June 2009 ended December
June 2008 2008
Unaudited Unaudited Audited
GBP GBP GBP
31,935 22,504 44,602
TURNOVER
(33,334) (16,416) (36,770)
Cost of sales
(1,399) 6,068 7,832
GROSS PROFIT/ (LOSS)
(63,230) (47,841) (133,585)
Administrative expenses
(64,629) (41,753) (125,753)
OPERATING (LOSS)
- (9,346) 130,174
Exceptional Items - Dec 2008, release of provisions less
dry well costs (June 2008 - dry well costs only)
- 1,560 1,944
Interest receivable
(64,629) (49,539) 6,365
LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION
- - -
Tax on loss on ordinary activities
(64,629) (49,539) 6,365
LOSS ON ORDINARY ACTIVITIES AFTER TAXATION
Earnings/ (Loss) per share GBP(0.01) GBP(0.01) GBP0.001
The figures have been reviewed by the Company's auditor.
The Directors of CAP are responsible for the contents of this announcement.
Contact:
Cap Energy Limited
John Killer
Tel: 07979 903673
St Helens Capital Partners LLP
Duncan Vasey or Mark Anwyl
Tel: +44 (0) 20 7368 6959