Regulatory news announcement

Financial Results for the Year Ended 30 April 2017

                ("Karoo Energy", the "Group" or the "Company") 
I am pleased to report that following the completion of a detailed Competent 
Persons Report ("CPR") and independent analysis carried out by RPS Energy, we 
can confirm that the significant prospectivity potential within our licence 
acreage continues to give us every reason to continue with our exploration work 
and hope for a commercially successful outcome. The key highlights of the CPR 
report are noted below: 
  * The four natural gas / petroleum licenses in Botswana broadly correlate 
    with strata in the Main Karoo Basin ("MKB") South Africa for which a shale 
    gas risked recoverable resource of 370 Tscf has been identified in the 
    lower Ecca Group (EIA 2013). 
  * On-block well data confirm the presence of organic-rich shales in the Lower 
    Ecca which are gas-prone, correlate with well-established source rock data 
    and improve in quality towards the southwest in the Gemsbok-basin where 
    shales are predicted, which may be more analogous to major producing shale 
    gas reservoirs in North America. 
  * Magnetic anomaly data interpreted in conjunction with existing well data 
    indicate a potential basinal trough which could represent a relatively deep 
    shale gas play area. Similarly, other Karoo shale gas play areas have been 
    delineated based upon integrated interpretation. Karoo shale gas maturity 
    is the key play risk. 
  * Early analysis of the potential thermal maturity of shale gases indicate 
    oil maturity from mined High Volatility Bituminous coals and gas maturity 
    from the Ecca Bori Formation. Further exploration and mapping is required 
    to better understand these risks which will be confirmed by Karoo's 
    proposed future work programmes over the forthcoming exploration periods 
    and will significantly enhance our understanding in this area. 
  * Additional shale gas play potential has been identified directly underlying 
    the Karoo Supergroup at depths of up to greater than 2km below surface and 
    is demonstrably gas-mature but source rock presence remains a risk. 
  * A range of CBM Prospective Resources were estimated for licence PL160 with 
    a best estimate of 244 Bscf. No CBM resource estimate was made for the 
    second CBM licence PL159 at this time due to insufficient data. 
Licence PL001-2012 expired in December 2015 and a licence renewal application 
has been submitted under conditions requiring the relinquishment of 50% of the 
original licence area. The proposed area to be relinquished was recently 
modified following the interpretation phase of the CPR study and an amendment 
submitted to the Botswana Department of Mines on the 28 June 2017. 
We recently announced that we will be seeking a dual listing on the Botswana 
Stock Exchange ("BSE") by way of introduction from NEX Exchange. This will 
allow the Company to establish itself among investors in Botswana including the 
pension funds and private investors who are looking for local opportunities. 
We further announced that we will be making an application to have our shares 
admitted to AIM. The work required for this is well underway and we will be 
making further announcements in due course. 
I am pleased to welcome Andrew Smith to the Board. Andrew brings with him a 
wealth of experience especially on the finance and accounting side of the oil 
and gas industry and has spent many years working on projects within 
Sub-Saharan Africa. This is part of the Company's strategy of strengthening the 
management team in preparation for the growth and expansion that is anticipated 
once full-scale exploration gets underway. To this end the Company is also in 
discussions with potential technical partners who can bring extra skills and 
knowledge to the exploration process and help the Company build its technical 
capabilities as it progresses. 
The financial results for the year-ended 30 April 2017 show a loss after 
taxation of GBP381,914 (2016: GBP357,691) and year-end cash of GBPnil (2016: GBP 
294,546). The Group raised GBP214,068 net of expenses during the year through the 
issue of 7.7 million shares for the advancement of its Botswanan 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 directors do not recommend payment of a dividend (2016: GBPNil). 
The challenges facing Karoo Energy include the size and scope of the licence 
areas and the limited time available to complete the work programs coupled with 
the requirement to raise sufficient finance to undertake the work. Furthermore, 
we will be making announcements regarding the renewal process for shale gas 
licence PL001-2012 in due course. The licence expired in December 2015 and due 
to the length of time taken to renew the licence and the uncertainty over this, 
the Board decided to impair the associated exploration costs in full. 
Ongoing funding of the work programmes continue to present a challenge that the 
Board is working on by both strengthening the management team and dual listing 
the Company on the Botswana Stock exchange alongside its application to trade 
its shares on AIM. Both of these moves will open up further sources of funding 
to the Company and help the Company complete its work programs on time and in 
I am pleased with the development of the Group since my last report to 
shareholders and believe we are making steady progress with our exploration 
program on our portfolio of licenses in Botswana. We look forward to providing 
investors with detail on further progress over the coming weeks. 
Noel Lyons 
Chief Executive Officer, 
29 September 2017 
The Directors of Karoo Energy accept responsibility for the content of this 
Noel Lyons 
020 3130 0674 
Corporate Adviser 
Peterhouse Corporate Finance Limited 
Guy Miller / Mark Anwyl 
Telephone: 020 7220 9796 
Consolidated Income Statement for the year ended 30 April 
                                                                   2017          2016 
                                                                    GBP           GBP 
Revenue                                                               -             - 
Cost of sales                                                         -             - 
Gross profit                                                          -             - 
Administrative expenses                                       (388,123)     (356,285) 
Operating loss                                                (388,123)     (356,285) 
Finance costs                                                   (7,000)       (3,260) 
Loss before taxation                                          (395,123)     (359,545) 
Taxation                                                              -             - 
Loss for the year                                             (395,123)     (359,545) 
Loss after tax attributable to: 
Equity owners of the parent company                           (381,914)     (357,691) 
Non-controlling interest                                       (13,209)       (1,854) 
                                                              (395,123)     (359,545) 
Loss per share from operations 
Basic and diluted loss per share (pence)                       (0.2043)      (0.2341) 
Consolidated Statement of Comprehensive Income for the year ended 30 April 
                                                                    2017         2016 
                                                                     GBP          GBP 
Loss for the financial year                                    (381,914)    (357,691) 
Total comprehensive income for the financial year              (381,914)    (357,691) 
attributable to the Company's equity shareholders 
All amounts relate to continuing operations. 
The notes on pages 15 to 38 form part of these financial statements. 
Consolidated Balance Sheet as at 30 April 
                                                                   2017             2016 
Assets                                                              GBP              GBP 
Non-current assets 
Intangible assets                                               322,154          362,252 
                                                                322,154          362,252 
Current assets 
Investments                                                           -                - 
Trade and other receivables                                      95,260           19,011 
Cash and cash equivalents                                             -          294,546 
                                                                 95,260          313,557 
Total Assets                                                    417,414          675,809 
Equity and liabilities 
Capital and reserves 
Share capital                                                   469,590          450,449 
Share premium                                                 1,771,584        1,576,659 
Retained losses                                             (2,078,648)      (1,696,734) 
Shareholders' funds                                             162,528          330,374 
Non-controlling Interests                                       (7,906)            5,303 
                                                                154,622          335,677 
Current liabilities: 

(MORE TO FOLLOW) Dow Jones Newswires

October 02, 2017 06:20 ET (10:20 GMT)

DJ Karoo Energy Plc Financial Results for the Year -2-

Trade and other payables                                        262,792          340,132 
Total equity and liabilities                                    417,414          675,809 
The financial statements were approved by the Board of Directors on 29 
September 2017 and were signed on its behalf by: 
Andrew Smith 
Consolidated Statement of Changes in Equity 
                              Share       Share     Retained  Non-controlling      Total 
                            capital     premium     earnings        interests 
                                GBP         GBP          GBP              GBP        GBP 
For the year ended 30 
April 2017 
Balance at 1 May 2016       450,449   1,576,659  (1,696,734)            5,303    335,677 
Loss for the                      -           -    (381,914)         (13,209)  (395,123) 
financial year 
Total comprehensive               -           -    (381,914)         (13,209)  (395,123) 
Issue of ordinary            19,141     210,553            -                -    229,694 
share capital 
Cost of share issue               -    (15,628)            -                -   (15,628) 
Balance at 30 April         469,590   1,771,584  (2,078,648)          (7,906)    154,622 
For the year ended 30 
April 2016 
Balance at 1 May 2015       362,264     431,572    (638,635)            6,922    162,123 
Loss for the                      -           -    (357,691)          (1,854)  (359,545) 
financial year 
Total comprehensive               -           -    (357,691)          (1,854)  (359,545) 
Issue of ordinary            88,185   1,145,087            -                -  1,233,272 
share capital 
Acquisition of                    -           -    (700,408)              235  (700,173) 
Balance at 30 April         450,449   1,576,659  (1,696,734)            5,303    335,677 
Consolidated Statement of Cash Flows for the year ended 30 April 
                                                                     2017          2016 
                                                                      GBP           GBP 
Cash flow from operating activities 
Loss for the financial year before tax                          (395,123)     (359,545) 
Finance costs                                                       7,000         3,260 
Revaluation loss on investments                                         -           226 
Impairment of intangible exploration assets                       136,141             - 
                                                                (251,982)     (356,059) 
Changes in working capital 
(Increase) / decrease in trade and other                         (76,249)        23,242 
(Decrease) / increase in trade and other payables                (84,340)       142,968 
Cash outflow from operating activities                          (412,571)     (189,849) 
Cash flow from investing activities 
Cash spend on exploration activities                             (96,043)     (147,856) 
Net cash used in investing activities                            (96,043)     (147,856) 
Cash flow from financing activities 
Issue of ordinary share capital                                   229,694       533,099 
Costs of share issue                                             (15,627)             - 
Proceeds from related party loan                                        -        70,000 
Net cash from financing activities                                214,069       603,099 
Net (decrease)/ increase in cash and cash                       (294,546)       265,394 
Cash and cash equivalents at beginning of financial               294,546        29,152 
Cash and cash equivalents at end of financial year                      -       294,546 
Going concern 
During the year ended 30 April 2017 the Group made a loss of GBP381,914 (2016: a 
loss of GBP357,691).  Whilst the Group had net assets of GBP154,622 (2016: net 
assets of GBP335,667) as at 30 April 2017 it had net current liabilities of GBP 
167,532 (2016: net current liabilities of GBP26,575) at that date. The operations 
of the Group are primarily financed from funds which the Parent Company raises 
from share placings. 
The Group's capital management policy is to raise sufficient funding to finance 
the Group's near-term exploration and development objectives. 
The Company successfully raised GBP229,700 through share placings during the year 
and had raised a further GBP487,000 subsequent to the year end. The Group will 
need to raise additional cash funding to support both working capital 
requirements and its obligations under the exploration licences, as set out in 
note 22 regarding the Group financial commitments. Should such funding not be 
obtained, the Group would fail to meet the required annual spend on the 
exploration licences which in turn may lead to exploration assets being 
impaired and potentially even revoked by the Ministry of Mines in Botswana. 
The Directors believe that the Group will be able to raise as required, 
sufficient cash to enable it to continue its operations, and continue to meet, 
as and when they fall due, its planned and committed exploration and 
development activities and liabilities for at least the next twelve months from 
the date of approval of these financial statements. For this reason, the 
Directors continue to adopt the going concern basis in preparing the accounts. 
However, there can be no guarantee that the required funds we be raised within 
the necessary timeframe. 
Consequently, a material uncertainty exists that may cast doubt on the Group's 
ability to continue to operate as planned and to be able to meet its 
commitments and discharge its liabilities in the normal course of business for 
a period not less than twelve months from the date of this report. The 
financial statements do not include the adjustments that would result if the 
Group was unable to continue in operation.