RNS Number:1548Q
Global Energy Development PLC
25 September 2003
GLOBAL ENERGY DEVELOPMENT PLC
Interim Report for the six months ended 30 June 2003
The Company is pleased to report that its financial results at mid year compare
favourably to the prior period. Earnings before interest, taxes, depreciation
and amortisation for the first 6 months of 2003 were $1,367,000 versus
$1,181,000 in the first half of 2002. This increase of 16% in EBITDA results
from continued efforts to reduce general and administrative costs in both
Colombia and in the Houston corporate office as well as improved oil prices
experienced so far during 2003. Profit after taxation increased even more
substantially to $700,000 from a loss of $591,000 in 2002.
Operations in Colombia are progressing well. As we previously reported, the
Cajaro No. 1 well successfully tested oil from the newly discovered Mirador
formation during the second quarter and, following negotiations with the state
oil company, Ecopetrol, the Company was awarded a new discovery net revenue rate
of 92% for this well. Production of the Cajaro No. 1 well commenced in late
June and has improved the Company's daily production.
Planning for the expansion of the Company's production base is now underway for
2004. Geologic mapping of the Mirador and Ubaque formations in the Palo Blanco
field is almost complete and will represent the technical foundation of our
development drilling plans in this field during the first quarter. The Company
is also studying the application of improved oil recovery techniques in its
Bolivar field located in the northern Magdalena river valley of Colombia. The
Bolivar field has proved and probable oil reserves and we are hopeful of further
increasing the potential of this asset on the basis of a successful engineering
study outcome.
We are very excited about our outlook for the remaining portion of this year and
2004 as we continue to work towards our goal of substantially increasing our
daily oil production and expanding our reserve assets.
Mikel D. Faulkner Stephen C. Voss 24 September 2003
Chairman Managing Director
UNAUDITED FINANCIAL HIGHLIGHTS (1)
(Figures in thousands except for per share information)
Six months Six months Twelve months
ending ending ending
30 June 30 June 31 December
2003 2002 2002
$000 $000 $000
TURNOVER 3,787 3,981 7,619
Profit (Loss) attributable to shareholders
Per share (basic and diluted) 0.03 (0.02) (0.09)
Expenditures on capital assets 3,581 957 2,825
Net current assets 1,653 4,143 3,468
Capital and reserves 55,226 56,357 54,479
Common shares outstanding
End of period 27,972 27,972 27,972
RESERVE INFORMATION - UK GAAP BASIS AS OF 1 JANUARY 2003
Future
Quantity Net NPV
Bbls. Revenue at 10%
Thousands $000 $000
Proved 5,497 92,166 67,424
Probable 17,996 339,986 205,377
------- ------- -------
Total 23,493 432,152 272,801
======= ======= =======
Note (1):
Global Energy Development PLC had no debt as of the reporting dates stated
above.
INDEPENDENT REVIEW REPORT TO GLOBAL ENERGY DEVELOPMENT PLC
Introduction
We have been instructed by the company to review the financial information for
the six months ended 30 June 2003 on page 4 to 9. We have read the other
information contained in the interim report and considered whether it contains
any apparent misstatements or material inconsistencies with the financial
information.
The report is made solely to the company 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 the Alternative
Investment Market. Our review has been undertaken so that we might state to the
company those matters we are required to state it in this report and for no
other purpose. To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the company for our review work, for
this report, or for the conclusions reached.
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 the Alternative
Investment Market which require that the accounting policies and presentation
applied to the interim figures should be consistent with those applied in
preparing the preceding annual accounts except where any changes, and the
reasons for them, are disclosed.
Review Work Performed
We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board for use in the United Kingdom. A review
consists principally of making enquiries of management and applying analytical
procedures to the financial information and underlying financial data and based
thereon, assessing whether the accounting policies and presentation have been
consistently applied unless otherwise disclosed. A review excludes audit
procedures such as test of controls and verification of assets, liabilities and
transactions. It is substantially less in scope than an audit performed in
accordance with United Kingdom Auditing Standards and therefore provides a lower
level of assurance than an audit. Accordingly, we do not express an audit
opinion on the financial information.
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30 June 2003.
BDO Stoy Hayward
London
24 September 2003
UNAUDITED SUMMARISED PROFIT AND LOSS ACCOUNT
for the six months ended 30 June 2003
Six months Six months Twelve months
ending ending ending
30 June 30 June 31 December
2003 2002 2002
$000 $000 $000
TURNOVER 3,787 3,981 7,619
Cost of sales (2,009) (2,646) (5,729)
GROSS PROFIT 1,778 1,335 1,890
Administration expenses (1,460) (1,842) (4,178)
Exchange (losses) /gains (4) 13 (49)
Other income 24 - 439
-------- -------- ---------
PROFIT (LOSS) ON ORDINARY ACTIVITIES 338 (494) (1,898)
Net interest receivable/(payable) 11 53 (9)
-------- -------- ---------
PROFIT (LOSS) ON ORDINARY ACTIVITIES
BEFORE TAXATION 349 (441) (1,907)
Taxation on profit /(loss) for
the financial period 351 (150) (595)
-------- -------- ---------
PROFIT (LOSS) ON ORDINARY ACTIVITIES
AFTER TAXATION 700 (591) (2,502)
-------- -------- ---------
PROFIT (Loss) ATTRIBUTABLE TO
SHAREHOLDERS 700 (591) (2,502)
-------- -------- ---------
TRANSFER TO (FROM) RESERVES 700 (591) (2,502)
-------- -------- ---------
PROFIT (LOSS) PER ORDINARY SHARE
share .025 (0.02) (0.09)
======== ======== ========
UNAUDITED SUMMARISED BALANCE SHEET
as at 30 June 2003
30 June 30 June 31 December
2003 2002 2002
$000 $000 $000
FIXED ASSETS
Intangible assets 1,140 191 858
Tangible assets 52,775 52,348 50,477
-------- -------- --------
53,915 52,539 51,335
-------- -------- --------
CURRENT ASSETS
Stocks 715 - 752
Debtors and prepayments 1,742 2,284 441
Cash at bank and in hand 334 2,804 3,562
-------- -------- --------
2,791 5,088 4,755
CREDITORS: amounts falling due
within one year (1,138) (945) (1,287)
-------- -------- --------
NET CURRENT ASSETS 1,653 4,143 3,468
-------- -------- --------
TOTAL ASSETS LESS CURRENT LIABILITIES 55,568 56,682 54,803
Provisions for liabilities and
charges (342) (325) (324)
-------- -------- --------
55,226 56,357 54,479
-------- -------- --------
CAPITAL AND RESERVES
Called up share capital 405 405 405
Capital reserve 210,891 210,844 210,844
Share premium account 18,729 18,696 18,729
Profit and loss account (174,799) (173,588) (175,499)
-------- -------- --------
55,226 56,357 54,479
======== ======== ========
UNAUDITED RECONCILIATION OF SHAREHOLDERS' FUNDS AND MOVEMENT ON RESERVES
for the six months ended 30 June 2003
Profit Total
Share Capital Share And Shareholders'
Capital Reserve Premium Loss Equity
Account Account Account Account Account
$000 $000 $000 $000 $000
AT 1 JANUARY 2002 - 229,807 - (172,997) 56,810
Placement of new capital 29 - 261 - 290
Group Reconstruction 376 (18,963) 18,468 - (119)
Loss for the period - - - (2,502) (2,502)
-------- -------- -------- -------- ---------
AT 31 DECEMBER 2002 405 210,844 18,729 (175,499) 54,479
Capital Contributions - 47 - - 47
Profit for the period - - - 700 700
-------- -------- -------- -------- ---------
AT 30 JUNE 2003 405 210,891 18,729 (174,799) 55,226
======== ======== ======== ======== =========
UNAUDITED SUMMARISED CASH FLOW STATEMENT
for the six months ended 30 June 2003
Six months Six months Twelve months
ending ending ending
30 June 30 June 31 December
2003 2002 2002
$000 $000 $000
NET CASH INFLOW / (OUTFLOW) FROM
OPERATING ACTIVITIES 649 (1,254) 1,666
RETURNS ON INVESTMENTS AND SERVICING
OF FINANCE
Interest received 11 53 20
Interest paid - - -
Taxation (353) (198) (406)
--------- --------- ---------
307 (1,399) 1,280
CAPITAL EXPENDITURE AND FINANCIAL
INVESTMENT
Expenditure on tangible fixed assets (3,581) (957) (2,825)
Disposal of other fixed assets - 48 -
De-recognition of subsidiary - - (17)
--------- --------- ---------
NET CASH OUTFLOWS BEFORE FINANCING (3,274) (2,308) (1,562)
--------- --------- ---------
FINANCING
Capital contributions 46 921 -
New shares issued - - 933
--------- --------- ---------
DECREASE IN CASH (3,228) (1,387) (629)
Cash at beginning of period 3,562 4,191 4,191
--------- --------- ---------
Cash at end of period 334 2,804 3,562
========= ========= =========
NOTES TO THE FINANCIAL INFORMATION
for the six months ended 30 June 2003
1. Accounting Policy
Basis of preparation The financial statements have been prepared under the
historical cost convention. The financial statements for the year ended 31
December 2002 and the periods ending 30 June 2003 and 2002 have been
prepared in accordance with accounting principles generally accepted in the
United Kingdom ('UK GAAP') as applied by the company in prior accounting
periods.
Basis of consolidation The financial statements have been prepared using
the principles of merger accounting. Under merger accounting, the results
of the Group are combined from the beginning of the financial period in
which the combination occurred and their assets and liabilities combined at
the amounts at which they were previously recorded. Profit and loss account
and balance sheet comparatives are restated on the combined basis.
The comparative figures for the year ended 31 December 2002 were derived
from the statutory accounts for that year which have been delivered to the
Registrar of Companies. Those accounts received an unqualified audit
report, which did not contain statements under section 237(2) or (3) of the
Companies Act 1985.
2. The financial information shown in this publication is unaudited and does
not constitute statutory accounts as defined in Section 240 of the
Companies Act 1985.
3. Turnover is attributable to one continuing activity, which is oil
production from the Harken de Colombia, Ltd. branch located in Colombia,
South America.
4. The calculation of profit per ordinary share for the six months ended 30
June 2003 is based on the weighted average number of ordinary shares.
5. No interim dividend has been declared.
6. Reconciliation of operating profit to net cash flow from operating
activities
Six months Six months Twelve months
ending ending ending
30 June 30 June 31 December
2003 2002 2002
$000 $000 $000
OPERATING PROFIT/(LOSS) ON ORDINARY 338 (494) (1,898)
ACTIVITIES
Depreciation and decommissioning 1,043 1,685 2,769
Intangible asset impairment - - 521
Loss on sale of fixed assets - - 282
Inventory impairment and facilities - - 400
(Increase)/Decrease in debtors and
prepayments (586) - 154
Decrease in inventory - - 61
Decrease in creditors (146) (2,445) (623)
--------- --------- ---------
NET CASH INFLOW/(OUTFLOW) FROM OPERATING
ACTIVITIES 649 (1,254) 1,666
========= ========= =========
7. Income Taxes
No UK corporation tax expense is reflected in the accompanying statements
of operations. Harken de Colombia, Ltd. (HDC) files a separate return in
Colombia for Colombian income tax purposes for which the related income tax
has been provided as anticipated. Additionally, for the period ending 30
June 2003, HDC has filed a refund claim related to the tax period ending 31
December 2001. In that refund claim, HDC expects to receive a refund for a
portion of the tax that was paid in that year. Accordingly, HDC has
recorded a tax benefit related to the future collection of that receivable;
expected collection is anticipated by 30 September 2003.
This information is provided by RNS
The company news service from the London Stock Exchange
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