Regulatory news announcement

Audited Results for the Year Ended 30 April 2013

Nodding Donkey Plc

Audited Results for the Year Ended 30 April 2013

30 September 2013 NODDING DONKEY PLC ("Nodding Donkey" or the "Company") Audited Results for the Year Ended 30 April 2013 Chairman's statement The principal focus for Nodding Donkey over the past year has been the development of its 86.95% owned subsidiary, Equatorial Oil and Gas PLC ("Equatorial"). We, as directors, are cognisant that real value for our shareholders would be created through the development of actual interests in hydrocarbon licences, as opposed to being shareholders in listed and unlisted companies. To this end we have liquidated virtually the entire investment portfolio, so as to enable the resources available to the group to be channelled to the development of Equatorial. In April we announced that Equatorial had commenced the drilling of its maiden borehole for coal bed methane on licence 165/2010 located in the Western Central Kalahari sub-basin of Botswana. This licence is one of three contiguous licences subject to a farm-in agreement with African Coal and Gas Corporation Ltd, whereby Equatorial may earn up to an 85% interest through meeting certain expenditure milestones, as detailed in the company's press release of 26 March 2013. The borehole was drilled to a completion depth of 658 metres, and intersected the geological sequence, with two coal horizons, as anticipated. We have since received the laboratory analysis, and the results from the total organic carbon ("TOC") analysis indicate multiple sections with significant (i.e. greater than 0.5% TOC) values, which provide a suitable target zone for further exploration for methane gas. The generation of methane is a function of maceral (microscopic organic constituents that make up coal) type and thermal maturation process. As such, significant TOC values are indicative of potentially high methane gas content. TOC content of between 13.32% and 65.74% were recorded from a horizon thickness of 7.88 metres, whilst content of between 1.92% and 49.06% were recorded from a horizon thickness of 3.79 metres. The depth of the coal horizons, being between 500-700 metres, also makes the target zone attractive for potential production. A renewal application for these licences has recently been made, and we are optimistic that the area has strong potential for significant natural gas reserves. We are keen to expand Equatorial's portfolio of hydrocarbon interests both in Botswana, and elsewhere in Africa, and we anticipate acquiring further licence interests in the coming months. We will announce details of new interests in licences as our position is secured. Earlier this month we strengthened the board of Equatorial through the appointment of Mr Seteng Motalaote, who has substantial experience and contacts in the natural resource industry, notably in Botswana. We were delighted with this appointment, as it demonstrates Equatorial's commitment to developing its interests in Botswana, whilst ensuring the company's interests are represented in the country. Financials The financial results for the twelve months to 30 April 2013 show a loss after taxation of GBP 193,841 (2012: GBP 65,377) which is attributable to ongoing administrative costs associated with the running of the company, and to the development of Equatorial's interests in Botswana. The directors do not recommend the payment of a dividend. Outlook We are encouraged by the progress made by Equatorial in the past year, which has culminated in highly encouraging results from the maiden borehole on licence 165/2010. Whilst we await the renewal of the licences under Equatorial's farm-in agreement with African Coal and Gas Corporation Ltd, we are actively pursuing new hydrocarbon interests in Botswana and elsewhere in Africa. We look forward to advising shareholders of progress on this front in the near future. It is our intention to attain a listing for Equatorial on a recognised stock exchange, and we will be giving consideration to this in the coming months. A listing will give Equatorial greater transparency, and will also enable a clear value to be placed on Nodding Donkey's shareholding, whilst also enabling Nodding Donkey to pursue other opportunities. I would like to take this opportunity to thank my co-director, Noel Lyons, who has done a superb job since taking the helm of Equatorial, and our shareholders for their continued support. Conrad Windham Chairman, 26 September 2013 The Directors of Nodding Donkey accept responsibility for the content of this announcement. ENQUIRIES: Company Nodding Donkey plc Conrad Windham Telephone: 020 3130 0674 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 2013 2013 2012 GBP GBP TURNOVER (48,995) 80,286 Administrative expenses (148,092) (145,663) LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION (197,087) (65,377) Tax on loss on ordinary activities - - LOSS ON ORDINARY ACTIVITIES AFTER TAXATION (197,087) (65,377) Minority interests 3,246 - LOSS FOR THE FINANCIAL YEAR (193,841) (65,377) Loss per share - basic and diluted (note 8) 0.153pence 0.084pence All amounts relate to continuing operations. CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES FOR THE YEAR ENDED 30 APRIL 2013 2013 2012 GBP GBP LOSS FOR THE FINANCIAL YEAR (193,841) (65,377) Unrealised (deficit) / surplus on (166,072) 27,679 revaluation of current asset investments TOTAL RECOGNISED GAINS AND LOSSES RELATING (359,913) (37,698) TO THE YEAR CONSOLIDATED BALANCE SHEET AS AT 30 APRIL 2013 2013 2012 GBP GBP GBP GBP FIXED ASSETS Intangible assets 87,693 - CURRENT ASSETS Debtors 32,519 13,508 Investments 94,714 322,677 Cash at bank 50,147 70,018 177,380 406,203 CREDITORS: amounts falling due (24,594) (12,065) within one year NET CURRENT ASSETS 152,786 394,138 NET ASSETS 240,479 394,138 CAPITAL AND RESERVES Called up share capital 342,264 297,843 Share premium account 291,572 133,993 Revaluation reserve (143,535) 27,679 Profit and loss account (254,076) (65,377) SHAREHOLDERS' FUNDS 236,225 394,138 MINORITY INTERESTS 4,254 - 240,479 394,138 The financial statements were approved and authorised for issue by the board and were signed on its behalf on 26 September 2013. Noel Lyons Director COMPANY BALANCE SHEET AS AT 30 APRIL 2013 2013 2012 GBP GBP GBP GBP FIXED ASSETS Investments 12,501 1 CURRENT ASSETS Debtors 124,478 33,508 Investments 94,714 322,677 Cash at bank 50,128 64,250 269,320 420,435 CREDITORS: amounts falling due (23,955) (12,065) within one year NET CURRENT ASSETS 245,365 408,370 NET ASSETS 257,866 408,371 CAPITAL AND RESERVES Called up share capital 342,264 297,843 Share premium account 291,572 133,993 Revaluation reserve (143,535) 27,679 Profit and loss account (232,435) (51,144) SHAREHOLDERS' FUNDS 257,866 408,371 The financial statements were approved and authorised for issue by the board and were signed on its behalf on 26 September 2013. Noel Lyons Director CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 30 APRIL 2013 2013 2012 GBP GBP Net cash flow from operating activities (154,575) (147,106) Returns on investments and servicing of 7,500 - finance Capital expenditure and financial investment (87,693) - CASH OUTFLOW BEFORE MANAGEMENT OF LIQUID (234,768) (147,106) RESOURCES AND FINANCING Management of liquid resources 12,897 (214,712) Financing 202,000 431,836 (DECREASE)/INCREASE IN CASH IN THE YEAR (19,871) 70,018 RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS/DEBT FOR THE YEAR ENDED 30 APRIL 2013 2013 2012 GBP GBP (Decrease)/Increase in cash in the year (19,871) 70,018 Cash (inflow)/outflow from (increase)/ (12,897) 214,712 decrease in liquid resources CHANGE IN NET DEBT RESULTING FROM CASH FLOWS (32,768) 284,730 Other non-cash changes (215,066) 107,965 MOVEMENT IN NET DEBT IN THE YEAR (247,834) 392,695 Net funds at 1 May 2012 392,695 - NET FUNDS AT 30 APRIL 2013 144,861 392,695