re: GED.L - Global Energy Development 280p (UK/AIM)
finance.yahoo.com
For all newcomers, this is Harken Energy's LatAm spin-off. Currently producing 2250bopd, big acreage in Latin America - almost 10 million acres altogether.. Marketcap is a meager US$210m .. way to go ... A research piece by EquityDevelopment recently put a risked valuation tag of up to 613p on it..
Apart from Fidelity, recently Merril Lynch got onboard - with a 3% stake
companyannouncements.net
And last week Interim Results were announced -- altogether looking great. GED really seems to be flying under the radar..
uk-wire.com
Global Energy Development PLC
01 September 2005
Immediate Release 1 September 2005
GLOBAL ENERGY DEVELOPMENT PLC
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2005
Global Energy Development PLC ('Global' or the 'Company'), the Latin America
focused petroleum exploration and production company (LSE-AIM: 'GED'), is
pleased to announce its interim results for the six months ended 30 June 2005.
Highlights:
• Revenues up 64.8% at $9,103,000 against the comparable period last
year (2004: $5,524,000);
• Gross profit up 69.4% at $4,997,000 (2004: $2,949,000);
• Profit before tax up 38.3% at $3,138,000 (2004: $2,269,000) and
greater than the full year ended 31 December 2004;
• Net income up 42.6% at $2,797,000 (2004: $1,961,000) and greater
than the full year ended 31 December 2004;
• Capital expenditure up 158.3% at $6,361,000 (2004: $2,463,000) with
capital expenditure for the year ended 31 December 2005 anticipated at
approximately $16 million;
• No debt as at 30 June 2005;
• Escalation of production underway for the second half of 2005;
• Rapid progression towards exploratory drilling on several existing
contracts; and
• Additional acreage anticipated to be secured during the remainder of
2005 and into 2006.
Commenting on the outlook for the Company, Mikel Faulkner, Chairman, said:
'For the remainder of 2005, Global intends to grow production, to add to the
high potential acreage already under the Company's control and progress rapidly
to exploratory drilling on several of its newer acreage positions which the
management of Global believe offer significant scope for substantial finds based
on historic data and recently completed third-party reports. Global looks
forward to the remainder of 2005 and beyond with confidence.'
For further information:
Global Energy Development PLC
Catherine Miles, director of Investor Relations +44 (0) 20 7763 7177
www.globalenergyplc.com
+44 (0) 7909918034
--------------------------
Notes to Editors:
Global currently holds approximately 5.1 million acres through six contracts in
Colombia and Peru, an exclusive Technical Evaluation Agreement ('TEA') in
Colombia and a concluded exclusive TEA in Panama which is in the process of
being converted into an exclusive contract. As at 31 December 2004, Global had
independently reported proved and probable reserves totalling 16.5 million BOE.
Chairman and Managing Director's Statement
Financials
Revenues for the six months ended 30 June 2005 were $9,103,000, a 64.8% increase
against the comparable period last year (2004: $5,524,000). Gross profit
increased by 69.4% to $4,997,000 (2004: $2,949,000). General and administrative
costs rose to $1,859,000 (2004: $691,000) reflecting the increased number of
employees and consultants working on a portfolio much enlarged from 2004 and
actively sourcing and progressing new contracts and Technical Evaluation
Agreements ('TEAs'). Notwithstanding the increase in general and administrative
costs, profit before tax for the six months ended 30 June 2005 increased by
38.3% to $3,138,000 (2004: $2,269,000), with this being greater than the profit
before tax for the full year ended 31 December 2004 of $3,127,000. Likewise, net
income, up 42.6% at $2,797,000 (2004: $1,961,000), also exceeded the net income
for the full year ended 31 December 2004 of $2,566,000. This financial
performance was influenced by historically high oil prices as well as the new
crude oil sales contract Global entered into with Petrobras, the state oil
company of Brazil, effective 1 May 2005 offering improved financial terms for
Global. As at 30 June 2005, Global had no debt.
Net production for the period was 233,119 barrels of oil (2004: 199,669 net
barrels of oil) with the mostly second-half weighted 2005 workover and drilling
programme expected to culminate in full year production being materially ahead
of last year which totalled 365,527 net barrels of oil for the year ended 31
December 2004.
The Company has had a finding and development cost of approximately $4.01 per
proved and probable barrel in the period from April 2002, the year of the
Company's flotation on the AIM Market of the London Stock Exchange ('AIM'), to
30 June 2005. During the six months ended 30 June 2005, the Company averaged a
cash netback per barrel of $27.26 (2004: $21.78) with cash netbacks in the month
of June 2005 averaging $38.96 per barrel. These netback figures were again
influenced by historically high oil prices and the new sales contract with
Petrobras. Netback figures are derived after deducting all productions costs,
including general and administrative costs, from net wellhead prices.
Operations
Global remains committed to Latin America, particularly Colombia, Peru and
Panama, in order to continue capitalising on the Company's extensive operating
history in the region.
For the remainder of 2005, Global intends to grow production, to add to the high
potential acreage already under the Company's control and progress rapidly to
exploratory drilling on several of its newer acreage positions which the
management of Global believe offer significant scope for substantial finds based
on historic data and recently completed third-party reports.
Capital expenditure for the full year 2005 is anticipated to total approximately
$16 million and be fully funded from cashflow from the enlarged production and
cash available. This marks a significant transition from the $2,825,000 spent in
2002, the year of the Company's flotation on AIM, and is almost double the 2004
capital expenditure of $8.7 million.
Of the $16 million 2005 capital expenditure budget, only approximately $4
million is required under the terms of the existing contracts and agreements
with the remainder at the Company's discretion and being utilised to accelerate
the Company's current operations, specifically advancing the exploration
operations and supporting this with the increasing production from the workover
and drilling programme.
Global is actively working on obtaining several more contracts and TEAs in
Colombia and Peru, all currently at various stages of progression, with hopes
that one or more will be signed during the remainder of 2005 with others falling
into early 2006. In addition, the exclusive contract for the Garachine Block
area in Panama is scheduled to be signed in the fourth quarter of 2005 or early
2006 with the Panamanian Government recently publicly announcing its commitment.
The first exploratory wells on the Valle Lunar TEA area in Colombia and the
Block 95 contract area in Peru are currently scheduled to be drilled in the
second half of 2006, reflecting the Company's efforts in accelerating its
exploratory drilling programme, and any securing of additional new contracts or
TEAs during the remainder of 2005 may result in more exploratory drilling around
this time. However, the exact timing of drilling may be influenced by rig
availability.
As previously indicated, a much larger proportion of capital expenditure will be
directed towards exploration activities going forward and 2006 should reflect
this with approximately 50% of expenditure planned to be directed towards
exploration against the less than 10% expected in 2005. This change is
reflective of the Company's enlarged exploration opportunities which have been
amassed during 2004 and so far in 2005 to supplement its productive assets. The
Company, along with an independent report, identified approximately $200 million
of developmental and exploratory drilling in total within the portfolio as at 31
December 2004, with this figure not taking into account the Valle Lunar TEA
acreage as it was signed in 2005 nor the Garachine Block area as it was deemed
purely exploratory at that time.
The Company's other contracts, namely the three Association contracts and two
exclusive Concession contracts in Colombia, offer the expected near-term
continued uplift in production as well as exploratory operations. The
anticipated uplift in production for 2005 is expected to be predominantly due to
workovers and drilling within the Alcaravan Association contract plus the newer
Rio Verde and Los Hatos Concession contracts. Within the Rio Verde contract, the
Company is looking to exit 2005 with three wells producing as the exploratory
well Tilodiran 2 is scheduled to be drilled later this year. The Rio Verde
contract only had two weeks contribution to production from one well in 2004.
The Los Hatos Concession contract is also expected to contribute to production
in 2005 as the first well, the exploratory well Los Hatos 1, is currently being
spudded and if successful is expected to be brought onto production in October
2005.
Conclusion
Global should begin 2006 with a portfolio further enlarged from the existing
approximate 5.1 million acres and offering additional high potential exploration
projects and drilling opportunities, all intended to be rapidly progressed
against a backdrop of continued growing production. This production should
provide the cashflow to direct towards a capital expenditure budget which should
be a significant enlargement compared to 2005. Global owns a 100% of all its
contracts in order to maintain maximum capital expenditure flexibility and to
quickly capture new opportunities as they arise. In addition, Global will
continue monitoring any opportunities to supplement its operations.
Global looks forward to the remainder of 2005 and beyond with confidence.
1 September 2005
Mikel Faulkner
Executive Chairman
Stephen Voss
Managing Director
UNAUDITED FINANCIAL HIGHLIGHTS (1)
for the six months ended 30 June 2005
(Figures in thousands except for per share information)
Six Months Six Months Twelve Months
Ending Ending Ending
30 June 2005 30 June 2004 31 December 2004
$000 $000 $000
TURNOVER 9,103 5,524 10,974
Earnings per share 0.10 0.07 0.09
Expenditures on capital assets 6,361 2,463 8,700
Net current assets 5,967 4,112 228
Capital and Reserves 68,364 57,481 58,091
Common shares outstanding
End of period 34,965,047 27,971,832 28,060,349
RESERVE INFORMATION - UK GAAP BASIS AS OF 1 JANUARY 2005 (2)
Quantity Future NPV
(Bbls) Net Revenue At 10%
Thousands $000 $000
Proved 4,200 120,079 79,857
Probable 12,252 328,223 201,123
Total 16,452 448,302 280,980
Note (1):
Global Energy Development PLC has no debt as of the reporting dates stated
above.
Note (2):
The reserve information for Global Energy Development PLC has been certificated
by a third-party firm at 31 December 2004.
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 2005. 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.
Our report has been prepared 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 AIM Market of the London Stock
Exchange ('AIM'). No person is entitled to rely on this report unless such a
person is a person entitled to rely upon this report by virtue of and for the
purpose of our terms of engagement or has been expressly authorised to do so by
our prior written consent. Save as above, we do not accept responsibility for
this report to any other person or for any other purpose and we hereby expressly
disclaim any and all such liability.
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 AIM 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 tests 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.
Review conclusion
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 2005.
BDO Stoy Hayward LLP
London
1 September 2005
UNAUDITED SUMMARISED PROFIT AND LOSS ACCOUNT
for the six months ended 30 June 2005
Six Months Six Months Twelve Months
Ending Ending Ending
30 June 30 June 31 December
2005 2004 2004
$000 $000 $000
TURNOVER 9,103 5,524 10,974
Cost of Sales (4,106) (2,575) (5,625)
GROSS PROFIT 4,997 2,949 5,349
Administration Expenses (1,859) (691) (2,241)
Other income 18 22 42
PROFIT ON ORDINARY ACTIVITIES 3,156 2,280 3,150
Net interest
(payable)/receivable (18) (11) (23)
PROFIT ON ORDINARY
ACTIVITIES BEFORE TAXATION 3,138 2,269 3,127
Tax (charge)/credit on profit
for the financial period (341) (308) (561)
PROFIT ON ORDINARY ACTIVITIES
AFTER
TAXATION AND TRANSFER TO
RESERVES 2,797 1,961 2,566
EARNINGS PER ORDINARY SHARE
- Basic $ 0.10 $ 0.07 $ 0.09
- Diluted $ 0.09 $ 0.06 $ 0.09
UNAUDITED SUMMARISED BALANCE SHEET
as at 30 June 2005
30 June 30 June 31 December
2005 2004 2004
$000 $000 $000
FIXED ASSETS
Intangible Assets 1,494 1,186 1,222
Tangible Assets 61,433 52,660 57,170
62,927 53,846 58,392
CURRENT ASSETS
Stocks 448 484 473
Debtors and prepayments 5,447 2,300 2,005
Cash at bank and in hand 3,169 2,598 2,857
9,064 5,382 5,335
CREDITORS:
amounts falling due within
one year (3,097) (1,270) (5,107)
NET CURRENT ASSETS 5,967 4,112 228
TOTAL ASSETS LESS CURRENT
LIABILITIES 68,894 57,958 58,620
Provisions for liabilities
and charges (529) (477) (529)
68,365 57,481 58,091
CAPITAL AND RESERVES
Called up share capital 532 405 406
Capital reserve 210,844 210,844 210,844
Share premium account 26,091 18,736 18,740
Profit and loss account (169,102) (172,504) (171,899)
68,365 57,481 58,091
UNAUDITED RECONCILIATION OF SHAREHOLDERS' FUNDS AND MOVEMENT ON RESERVES
for the six months ended 30 June 2005
Share Share Share Profit Shareholders'
Capital Reserve Premium And Loss Equity
Account Account Account Account Account
$000 $000 $000 $000 $000
AT 1 JANUARY 2004 405 210,844 18,736 (174,465) 55,520
Placement for new share
capital 1 - 4 - 5
Profit for the period - - - 2,566 2,566
AT 31 DECEMBER 2004 406 210,844 18,740 (171,899) 58,091
Placement for new share
capital 126 - 7,351 - 7,477
Profit for the period - - - 2,797 2,797
AT 30 JUNE 2005 532 210,844 26,091 (169,102) 68,365
UNAUDITED SUMMARISED CASH FLOW STATEMENT
for the six months ended 30 June 2005
Six Months Six Months Twelve Months
Ending Ending Ending
30 June 2005 30 June 2004 31 December 2004
$000 $000 $000
NET CASH FLOW FROM OPERATING
ACTIVITIES (220) 1,908 8,196
RETURNS ON INVESTMENTS AND
SERVICING OF FINANCE
Interest (paid) / received (18) 7 18
TAXATION PAID (341) (32) (65)
(579) 1,883 8,149
CAPITAL EXPENDITURE AND
FINANCIAL INVESTMENT
Expenditure on tangible fixed
assets (6,361) (2,463) (8,700)
NET CASH FLOW BEFORE
FINANCING (6,940) (580) (551)
FINANCING
Issue of share capital 7,477 - 5
DECREASE IN CASH 537 (580) (546)
Cash at beginning of period 2,632 3,178 3,178
CASH AT END OF PERIOD 3,169 2,598 2,632
NOTES TO THE FINANCIAL INFORMATION
for the six months ended 30 June 2005
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 2004 and the periods ending 30 June 2005 and 2004 have been prepared in
accordance with accounting standards and the Statement of Recommended Practice
'Accounting for Oil and Gas Exploration, Development and Decommissioning
Activities'.
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.
The financial information shown in this publication is unaudited and dos not
constitute statutory accounts as defined in Section 240 of the Companies Act
1985.
The comparative figures for the year ended 31 December 2004 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. Turnover is attributable to one continuing activity, which is oil
production from the Harken de Colombia, Ltd. branch located in Colombia, South
America.
3. The calculation of earnings per ordinary share for the six months ended
30 June 2005 is based on the weighted average number of ordinary shares.
4. No interim dividend has been declared.
5. Reconciliation of operating profit to net cash flow from operating
activities
Six Months Six Months Twelve Months
Ending Ending Ending
30 June 2005 30 June 2004 31 December 2004
$000 $000 $000
OPERATING PROFIT ON ORDINARY
ACTIVITIES 3,156 2,280 3,150
Depreciation, depletion and
amortisation 1,881 1,386 3,087
Loss on sale of fixed assets - - 34
Increase in debtors and
prepayments (3,442) (2,195) (2,088)
Decrease/(Increase) in
inventory 25 10 (26)
Decrease/(Increase) in
creditors (1,840) 427 4,039
NET CASH INFLOW FROM
OPERATING ACTIVITIES (220) 1,908 8,196
6. Analysis of net funds
At 1 January Net At 30 June
2005 Cash flows 2005
$000 $000 $000
Cash at bank and in hand 2,857 312 3,169
Bank overdrafts (225) 225 -
2,632 537 3,169 |
