Regulatory news announcement

Audited Results to 30 April 2018

 
TIDMKEP 
 
KAROO ENERGY PLC 
 
                ("Karoo Energy", the "Group" or the "Company") 
 
         AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2018 
 
Chief Executive Officer's statement and Group Strategic Report 
 
for the year ended 30 April 2018 
 
I am pleased to report that the Company has made progress during the year. We 
announced in the first half of this year that exploration work in the Gemsbok 
Basin covered by the Company's Prospecting Licences EL001/2012 and PL171/2015 
has produced results which confirm the geological model for the Company's 
exploration programme. 
 
This model, based on multiple research projects, including deep boreholes and 
seismic surveys, undertaken by the Department of Geological Survey of Botswana 
and other published academic works, predicts a deep sedimentary basin, the 
Gemsbok Basin, infilled by Karoo Supergroup sedimentary rocks underlain by Nama 
Group sedimentary rocks. Both groups of rock, Karoo and Nama, are known to 
contain organic shales which form the target for this exploration project. 
 
Further work in the second half of the year has strengthened the findings that 
support our belief in the integrity of our licence areas and thus re-main 
committed to our belief for the potential for shale gas within our portfolio of 
licences, our anticipated move to AIM and associated fund raise will accelerate 
exploration work and I look forward to announcing our progress in due course. 
 
Subsequent to the year end the Company has had a change of personnel with the 
appointment of a new Non-Executive Director, Mr Darren Hopkins ACA. Darren is a 
chartered accountant and is a very welcome addition to the team as we 
anticipate an upswing in operational activity subject to an imminent AIM 
listing. To this end the Company has appointed new brokers to assist with the 
fund raising requirements and, with their competence and commitment, are 
confident in a successful outcome in the final quarter of 2018. 
 
FINANCIALS 
 
The financial results for the year-ended 30 April 2018 show a loss after 
taxation of GBP877,835 (2017: GBP395,123) and year end cash of GBP41,419 (2017: GBP 
nil). The Group raised GBP502,449 net of expenses during the year through the 
issue of 16.899 million shares for the advancement of its Botswana licences and 
ongoing administrative expenses. It remains the focus of the Board to continue 
to progress the licence work programmes in Botswana in the most effective 
manner, utilising new technologies and the opportunities that the current 
low-cost exploration environment bring, whilst minimising the ongoing overhead 
and administrative cost burden to the extent that this does not impact 
adversely on operations. 
 
The Company does not intend to pay a dividend for the year ended 30 April 2018. 
 
REVIEW OF BUSINESS 
 
The Company has made good progress during 2018 and has reviewed in detail its 
assets and operational strategy. 
 
The Company is the holder of one of the largest shale gas licence areas in the 
world, comprising 4 licence areas and covering approximately 100,000 square km. 
We are always conscious of the challenges to explore and manage efficiently 
such large areas simultaneously. 
 
The company remains very focused on shale gas, while also having CBM licences 
and as part of our strategy to sequence our exploration efforts whilst managing 
current and future cash resource, we applied for, and the Minister for Minerals 
and Mines kindly granted, a suspension of one of our shale gas licences, 
licence EL161-2015. This means that the licence commitments and time period in 
which they are due to be delivered are frozen. Licence PL2012-001 is under 
renewal. The Company also successfully applied for a suspension of its two CBM 
licences, this enables conservative cost management and a strategic focus on 
shale. The Company can now focus on just two of its four licences. The licence 
suspensions can be lifted at a time in the future at the Company's discretion 
and are protected in the meantime under the Company's ownership. 
 
Subsequent to the year end the Company has engaged a strategic operational 
partner, Contax Partners, an experienced oil and gas project management company 
based in the Middle East but with projects under management worldwide. Contax 
has already begun work on the ground in Botswana and are encouraged by their 
findings to the extent that they wish to participate in a significant equity 
stake on admission to AIM. The Company is delighted with this new partnership 
and that it is aligned through its operational focus and incentivised through 
its proposed equity participation. 
 
The strategic focus for the immediate future is to achieve an admission to AIM 
to enable significant fundraising to be carried out. The Company is confident, 
with the appointment of a new broker, that it will be successful however this 
is subject to completing fundraising and AIM approval. Assuming a successful 
admission is completed in the last quarter of 2018 then operational work will 
build up quickly on the ground. The work programme on the two shale gas 
licences is scheduled to be completed by July 2019. It is hoped this work 
programme on two of our licences may yield an estimated resource on one or both 
of these licence areas. 
 
The Company also intends to do a dual listing on the Botswana Stock Exchange 
(BSE) following its admission to AIM. This will enable the raising of funds 
locally for the next phase of the exploration and possibly for any future 
production program. 
 
ON BEHALF OF THE BOARD: 
 
N Lyons - Director 
 
1 October 2018 
 
The Directors of the Company accept responsibility for the content of this 
announcement. 
 
ENQUIRIES: 
 
Company 
 
Karoo Energy plc 
 
Noel Lyons 
 
Telephone: 020 3130 0674 
 
Corporate Adviser 
 
Peterhouse Capital Limited 
 
Guy Miller / Mark Anwyl 
 
Telephone: 020 7220 9795 
 
Consolidated Statement of Profit or Loss 
 
for the year ended 30 April 2018 
 
 
2018                                    2017 
 
 
GBP                                           GBP 
 
CONTINUING OPERATIONS 
 
Revenue 
-                                           - 
 
Administrative 
expenses                                                            (870,941) 
                             (388,123) 
 
 
 
OPERATING 
LOSS 
(870,941)                            (388,123) 
 
Finance 
costs 
(7,000)                                (7,000) 
 
Finance 
income 
106                                           - 
 
LOSS BEFORE INCOME TAX           (877,835)                  (395,123) 
 
 
Income 
tax 
-                                           - 
 
LOSS FOR THE YEAR                              (877,835)     (395,123) 
 
 
Loss attributable to: 
 
Owners of the 
parent 
(831,175)                            (381,914) 
 
Non-controlling 
interests                                                              (46,660) 
                              (13,209) 
 
 
 
 
(877,835)                             (395,123) 
 
 
 
Earnings per share expressed 
 
in pence per share: 
 
Basic 
-0.43                                    -0.21 
 
Diluted 
-0.43                                    -0.21 
 
 
 
Consolidated Statement of Profit or Loss and Other Comprehensive Income 
 
for the year ended 30 April 2018 
 
 
2018                                    2017 
 
 
GBP                                          GBP 
 
LOSS FOR THE YEAR 
(877,835)                            (395,123) 
 
OTHER COMPREHENSIVE INCOME 
-                                           - 
 
TOTAL COMPREHENSIVE INCOME FOR 
THE YEAR                       (877,835)                   (395,123) 
 
 
Total comprehensive income attributable to: 
 
Owners of the 
parent 
(831,175)                            (381,914) 
 
Non-controlling 
interests                                                              (46,660) 
                              (13,209) 
 
 
 
 
(877,835)                             (395,123) 
 
 
 
Consolidated Statement of Financial Position 
 
30 April 2018 
 
 
2018                                    2017 
 
 
GBP                                           GBP 
 
ASSETS 
 
NON-CURRENT ASSETS 
 
Intangible 
assets 
135,439                               322,154 
 
 
 
 
135,439                               322,154 
 
 
 
CURRENT ASSETS 
 
Trade and other 
receivables 
41,072                                 95,260 
 
Cash and cash 
equivalents 
41,419                                           - 
 
 
 
 
82,491                                 95,260 
 
 
 
TOTAL 
ASSETS 
217,930                               417,414 
 
 
 
EQUITY 
 
SHAREHOLDERS' EQUITY 
 
Called up share 
capital 
511,837                               469,590 
 
Share 
premium 
2,231,786                            1,771,584 
 
Retained 
earnings 
(2,843,187)                         (2,078,646) 
 
 
 
 
(99,564)                              162,528 
 
Non-controlling 
interests                                                              (54,566) 
                                (7,906) 
 
 
 
TOTAL 
EQUITY 
(154,130)                              154,622 
 
 
 
LIABILITIES 
 
CURRENT LIABILITIES 
 
Trade and other 
payables 
372,060                               262,792 
 
 
 
TOTAL 
LIABILITIES 
372,060                               262,792 
 
 
 
TOTAL EQUITY AND LIABILITIES 
217,930                               417,414 
 
 
 
The financial statements were approved by the Board of Directors on 1 
October 2018 and were signed on its behalf by: 
 
N Lyons - Director 
 
Company Statement of Financial Position 
 
30 April 2018 
 
 
2018                                    2017 
 
 
GBP                                           GBP 
 
ASSETS 
 
NON-CURRENT ASSETS 
 
Intangible 
assets 
-                                           - 
 
Investments 
312,674                               312,674 
 
 
 
 
312,674                               312,674 
 
 
 
CURRENT ASSETS 
 
Trade and other 
receivables 
189,841                               778,370 
 
Cash and cash 
equivalents 
41,419                                           - 
 
 
 
 

(MORE TO FOLLOW) Dow Jones Newswires

October 01, 2018 12:51 ET (16:51 GMT)

DJ Karoo Energy Plc Audited Results to 30 April 2018 -2-

231,260                               778,370 
 
 
 
TOTAL 
ASSETS 
543,934                            1,091,044 
 
 
 
EQUITY 
 
SHAREHOLDERS' EQUITY 
 
Called up share 
capital 
511,837                               469,590 
 
Share 
premium 
2,231,786                            1,771,584 
 
Opening retained earnings 
(1,319,916)                            (943,191) 
 
Loss for 
year 
(1,209,730)                            (376,725) 
 
Retained 
earnings 
(2,529,646)                         (1,319,916) 
 
 
 
TOTAL 
EQUITY 
213,977                               921,258 
 
 
 
LIABILITIES 
 
CURRENT LIABILITIES 
 
Trade and other 
payables 
329,957                               169,786 
 
 
 
TOTAL 
LIABILITIES 
329,957                               169,786 
 
 
 
TOTAL EQUITY AND LIABILITIES 
543,934                            1,091,044 
 
 
 
The financial statements were approved by the Board of Directors on 1 October 
2018 and were signed on its behalf by: 
 
N Lyons - Director 
 
Consolidated Statement of Changes in Equity 
 
for the year ended 30 April 2018 
 
 
Called up 
 
 
share          Retained          Share 
 
 
capital         earnings      premium 
 
 
GBP                    GBP                    GBP 
 
Balance at 
1 May 2016 
450,450     (1,696,732)     1,576,659 
 
Changes in equity 
 
Issue of share 
capital 
19,140                     -         210,553 
 
Cost of share 
issue 
-                     -          (15,628) 
 
Total comprehensive 
income 
-        (381,914)                    - 
 
 
 
Balance at 
30 April 2017 
469,590     (2,078,646)     1,771,584 
 
 
 
Changes in equity 
 
Issue of share 
capital 
42,247                     -         494,375 
 
Cost of share 
issue 
-                     -          (34,173) 
 
Share based 
payments 
-            66,634                     - 
 
Total comprehensive 
income 
-        (831,175)                    - 
 
 
 
Balance at 
30 April 2018 
511,837     (2,843,187)     2,231,786 
 
 
 
 
Non-controlling 
Total 
 
 
Sub-Total      interests         equity 
 
 
GBP                    GBP                    GBP 
 
Balance at 
1 May 2016 
330,377             5,303         335,680 
 
Changes in equity 
 
Issue of share 
capital 
229,693                     -         229,693 
 
Cost of share 
issue 
(15,628)                    -          (15,628) 
 
Total comprehensive 
income                                                       (381,914) 
(13,209)       (395,123) 
 
 
 
Balance at 
30 April 2017 
162,528            (7,906)        154,622 
 
 
 
Changes in equity 
 
Issue of share 
capital 
536,622                     -         536,622 
 
Cost of share 
issue 
(34,173)                    -          (34,173) 
 
Share based 
payments 
66,634                     -           66,634 
 
Total comprehensive 
income                                                       (831,175) 
(46,660)       (784,515) 
 
 
 
Balance at 
30 April 2018 
(99,564)         (54,566)       (154,130) 
 
 
 
Company Statement of Changes in Equity 
 
for the year ended 30 April 2018 
 
 
Called up 
 
 
share          Retained          Share             Total 
 
 
capital         earnings       premium         equity 
 
 
GBP                    GBP                    GBP                    GBP 
 
Balance at 1 May 2016                                        450,450 
(943,191)     1,576,659      1,083,918 
 
Changes in equity 
 
Issue of share capital 
19,140                     -          210,553         229,693 
 
Cost of share issue 
-                     -          (15,628)         (15,628) 
 
Total comprehensive income 
-        (376,725)                    -        (376,725) 
 
 
 
Balance at 30 April 2017                                     469,590 
(1,319,916)     1,771,584         921,258 
 
 
 
Changes in equity 
 
Issue of share capital 
42,247                     -          494,375         536,622 
 
Cost of share issue 
-                     -          (34,173) 
 
Share based payments 
-            66,634                     -           66,634 
 
Total comprehensive income                                              - 
(1,276,364)                    -     (1,143,096) 
 
 
 
Balance at 30 April 2018                                     511,837 
(2,529,646)     2,231,786         213,977 
 
 
 
Consolidated Statement of Cash Flows 
 
for the year ended 30 April 2018 
 
 
2018                                    2017 
 
 
GBP                                          GBP 
 
Cash flows from operating activities 
 
Cash generated from operations 
(389,613)                            (405,570) 
 
Interest 
paid 
(7,000)                                (7,000) 
 
 
 
Net cash from operating activities 
(396,613)                            (412,570) 
 
 
 
Cash flows from investing activities 
 
Purchase of intangible fixed 
assets                                               (64,523) 
                              (96,043) 
 
Interest 
received 
106                                           - 
 
 
 
Net cash from investing 
activities                                                 (64,417) 
                              (96,043) 
 
 
 
Cash flows from financing activities 
 
Share 
issue 
502,449                               229,694 
 
Costs of Share 
Issue 
-                                (15,627) 
 
 
 
Net cash from financing 
activities 
502,449                               214,067 
 
 
 
 
 
Increase/(decrease) in cash and cash equivalents  41,419        (294,546) 
 
Cash and cash equivalents at 
beginning of year                  -                            294,546 
 
 
 
 
Cash and cash equivalents at 
end of year                      41,419                     - 
 
 
 
 
END