NODDING DONKEY PLC
("Nodding Donkey", the "Company" or the "Group")
UNAUDITED FINANCIAL STATEMENTS FOR THE 12 MONTHS ENDED 30 APRIL 2015
CHIEF EXECUTIVE OFFICER'S STATEMENT
FOR THE YEAR ENDED 30 APRIL 2015
The past few months have seen significant milestones hit, most notably the awarding of both petroleum exploration licences and coal bed methane licences that have ensured the Company controls the largest land position in Botswana for hydrocarbons.
AWARDING OF LICENCES PROSPECTIVE FOR COAL BED METHANE
In April we announced that the Company's 86.95% owned subsidiary, Equatorial Oil & Gas plc ("Equatorial"), had been issued with two licences in Botswana prospective for coal bed methane. The two licences are both located within the Western Central Kalahari Sub-Basin and are in close proximity to proven CBM gas resources. Previous work was undertaken on these licences when they were originally part of a farm-in agreement between Equatorial and African Coal and Gas Corporation Ltd. The farm-in was subsequently terminated by mutual consent, enabling Equatorial to reapply for the key licences in its own name.
The stratigraphic drilling performed by Equatorial under the farm-in agreement yielded encouraging results, intersecting two coal horizons as anticipated. Significant total organic carbon ("TOC") results were returned, with content of between 13.32% and 65.74% recorded from a horizon thickness of 7.88 metres, and TOC content of between 1.92% and 49.06% recorded from a horizon thickness of 3.79 metres.
The generation of methane is a function of maceral (microscopic organic constituents that make up coal) type and the thermal maturation process. As such, significant TOC values are indicative of potentially high methane gas content. The depth of the coal horizons confirmed by the borehole, being between 500 - 700 metres, also makes the target zone attractive for potential production.
AWARDING OF LICENCES PROSPECTIVE FOR SHALE GAS
In September, meanwhile, we were pleased to announce that the Group companies had been issued with three petroleum exploration licences in Botswana, all prospective for hosting shale gas.
Equatorial has been issued with petroleum exploration licence 171/2015, which is located in the Kgalagadi district, and covers 29,291 square kilometres. The licence, which is valid for four years, is contiguous to the south of petroleum licence EL001/2012, which is controlled by Equatorial's 85% owned subsidiary, Tamboran Botswana (Pty) Ltd ("Tamboran"). Together, the two licences cover the entirety of the Gemsbok sub-basin in South-West Botswana.
Meanwhile, Equatorial's 85% owned subsidiary, Tamboran, has been issued with petroleum exploration licence 162/2015, which is located in the Ghanzi/Kgalagadi/Kweneng districts, and covers 34,435 square kilometres. The licence, which is valid for four years, is contiguous to the east of Tamboran's licence EL001/2012, and is located within the Western Central Kalahari sub-basin.
The Group's Tamboran subsidiary has also been issued with petroleum exploration licence 161/2015, which is located in the Central district, and covers 23,980 square kilometres. The licence, which is valid for four years, lies within the Northern Belt of the Central Kalahari sub-basin, and is of particular geologic significance as it covers almost the entirety of the Mmashoro sub-basin, which is a structural low that has the requisite conditions for natural gas to be hosted within shales.
The Mmashoro low is one of the deepest parts of the Kalahari Karoo basin, which is significant, as the burial depth of organic material is essential so as to enable categenesis, the conversion of kerogen to hydrocarbons, to occur. The Kalahari Karoo basin is predominantly a relatively shallow basin, and hence why the Mmashoro basin represents a high priority target within the overall Kalahari Karoo basin for hosting shale gas.
Following the awarding of these licences, steps are being put in place to commence development work, so that the potential of the licences for hosting natural gas can be determined. Based on our understanding of the geology, and progress made by others in the region, we are optimistic as to the potential of the licences for hosting natural gas.
FINANCIALS
The financial results for the twelve months to 30 April 2015 show a loss after taxation of £158,779 (2014: £121,311), which is attributable to ongoing administrative costs associated with the running of the Company, and to the development of the Group's interests in Botswana.
If it becomes known to the Directors of the Company that the audit report is to be qualified or is modified in relation to going concern or otherwise, the terms of such qualification or modification will be announced immediately.
These financial statements have not been audited or reviewed by the Company's auditors.
OUTLOOK
We look forward to outlining plans in the coming weeks regarding the development of the Group's licences in Botswana, and to realising value for all stakeholders. We are delighted at the Group's licences having been awarded, and are optimistic as to their potential.
I would like to thank all investors for their patience whilst we have worked to fully establish our position in Botswana, and we look forward to the future with much optimism and excitement.
Noel Lyons
Chief Executive Officer,
30 September 2015
The Directors of Nodding Donkey plc accept responsibility for the content of this announcement.
ENQUIRIES:
Company
Noel Lyons
020 3130 0674
http://www.noddingdonkeyplc.co.uk/
Corporate Adviser
Peterhouse Corporate Finance Limited
Guy Miller / Mark Anwyl
Telephone: 020 7220 9796
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 APRIL 2015
| 2015 | 2014 | |||
| Note | £ | £ | ||
| TURNOVER | - | (3,288) | ||
| Administrative expenses | (159,257) | (120,414) | ||
| LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION | (159,257) | (123,702) | ||
| Tax on loss on ordinary activities | - | - | ||
| LOSS ON ORDINARY ACTIVITIES AFTER TAXATION | (159,257) | (123,702) | ||
| Minority interests | 478 | 2,391 | ||
| LOSS FOR THE FINANCIAL YEAR | (158,779) | (121,311) | ||
| Loss per share - basic and diluted | 1 | 0.112 | 0.089 |
CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
FOR THE YEAR ENDED 30 APRIL 2015
| 2015 | 2014 | |||
| £ | £ | |||
| LOSS FOR THE FINANCIAL YEAR | (158,779) | (121,311) | ||
| Unrealised deficit on revaluation of current asset investments | (523) | (1,395) | ||
| TOTAL RECOGNISED GAINS AND LOSSES RELATING TO THIS YEAR | (159,302) | (122,706) |
CONSOLIDATED BALANCE SHEET
AS AT 30 APRIL 2015
| 2015 | 2014 | |||||||
| £ | £ | £ | £ | |||||
| FIXED ASSETS | ||||||||
| Intangible assets | 176,896 | 139,982 | ||||||
| CURRENT ASSETS | ||||||||
| Debtors | 42,253 | 31,224 | ||||||
| Investments | 226 | 749 | ||||||
| Cash at bank | 29,152 | 3,291 | ||||||
| 71,631 | 35,264 | |||||||
| CREDITORS: | ||||||||
| Amounts falling due within one year | (86,404) | (39,864) | ||||||
| NET CURRENT ASSETS | (14,773) | (4,600) | ||||||
| NET ASSETS | 162,123 | 135,382 | ||||||
| CAPITAL AND RESERVES | ||||||||
| Called up share capital | 362,264 | 344,764 | ||||||
| Share premium account | 431,572 | 309,072 | ||||||
| Revaluation reserve | 226 | 749 | ||||||
| Profit and loss account | (638,861) | (521,066) | ||||||
| SHAREHOLDERS' FUNDS | 155,201 | 133,519 | ||||||
| MINORITY INTERESTS | 6,922 | 1,863 | ||||||
| 162,123 | 135,382 |
COMPANY BALANCE SHEET
AS AT 30 APRIL 2015
| 2015 | 2014 | |||||||
| £ | £ | £ | £ | |||||
| FIXED ASSETS | ||||||||
| Investments | 12,501 | 12,501 | ||||||
| CURRENT ASSETS | ||||||||
| Debtors | 206,667 | 190,843 | ||||||
| Investments | 226 | 749 | ||||||
| Cash at bank | 27,682 | 3,272 | ||||||
| 234,575 | 194,864 | |||||||
| CREDITORS: | ||||||||
| Amounts falling due within one year | (51,105) | (36,264) | ||||||
| NET CURRENT ASSETS | 183,470 | 158,600 | ||||||
| NET ASSETS | 195,971 | 171,101 | ||||||
| CAPITAL AND RESERVES | ||||||||
| Called up share capital | 362,264 | 344,764 | ||||||
| Share premium account | 431,572 | 309,072 | ||||||
| Revaluation reserve | 226 | 749 | ||||||
| Profit and loss account | (598,091) | (483,484) | ||||||
| SHAREHOLDERS' FUNDS | 195,971 | 171,101 | ||||||
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 30 APRIL 2015
| 2015 | 2014 | |||
| £ | £ | |||
| Net cash flow from operating activities | (108,812) | (103,849) | ||
| Returns on investments and servicing of finance | - | - | ||
| Capital expenditure and financial Investment | (5,327) | (52,289) | ||
| CASH OUTFLOW BEFORE MANAGEMENT OF LIQUID RESOURCES AND FINANCING | ||||
| (114,139) | (156,138) | |||
| Management of liquid resources | - | 89,282 | ||
| Financing | 140,000 | 20,000 | ||
| INCREASE / (DECREASE) IN CASH IN THE YEAR | 25,861 | (46,856) | ||
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS/DEBT
FOR THE YEAR ENDED 30 APRIL 2015
| 2015 | 2014 | |||
| £ | £ | |||
| Increase / (decrease) in cash in the year | 25,861 | (46,856) | ||
| Cash inflow/(outflow) from increase/(decrease) in liquid resources | - | (89,282) | ||
| CHANGE IN NET DEBT RESULTING FROM CASH FLOWS | 25,861 | (136,138) | ||
| Other non-cash changes | (523) | (4,683) | ||
| 25,338 | (140,821) | |||
| Net funds at 1 May 2014 | 4,040 | 144,861 | ||
| NET FUNDS AT 30 APRIL 2015 | 29,378 | 4,040 |
Notes:
- EARNINGS PER SHARE
The loss and number of shares used in the calculation of loss per share are set out below:
Basic & Diluted
| 2015 | 2014 | |||
| £ | £ | |||
| Loss for the financial year | 158,779 | 121,311 | ||
| Weighted average number of ordinary shares | 141,784,956 | 136,979,477 | ||
| Loss per share (pence) | 0.112 | 0.089 |
Due to the Group's reported losses, share options have not been taken into account when determining the weighted average number of ordinary shares in issue during the year for the diluted EPS calculation and therefore the basic and diluted earnings per share were the same.
