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Company Announcements

Final Results for the year ended 31 December 2014

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RNS Number : 8491N
Andes Energia PLC
21 May 2015
 

21 May 2015

 

Andes Energia plc

(“Andes” or “the Company”)

 

Final Results for the year ended 31 December 2014

 

The Board of Andes Energia is pleased to report final results for the year ended 31 December 2014.

 

OVERVIEW

 

Year ended 31 December

2014

2013

 

US$m

US$m

Revenue

48.2

22.5

Operating profit/(loss)

**5.5

*(3.9)

EBITDA

**8.8

*(2.4)

Net operating cash generated from operations

14.6

3.4

* Before exceptional items of US$6.2 million

** Before impairment charges of US$3.8 million

 

HIGHLIGHTS

 

The 2014 highlights were:

 

·       Average production rate of 1,700 bpd in 2014 (2013: 916 bpd), representing a 73% increase over the previous year.

·       A total of 25 development and appraisal wells drilled.  9 wells were converted to injection wells in the Chachahuen block, which is now producing 709 bpd net to Andes.

·       Las Varillas x-1 well was successfully fracked, tested and brought in to production from the Vaca Muerta shale formation, in partnership with YPF.

·       Successful test of the Vaca Muerta formation from the Vega Grande x-1 well, in a 100% owned and operated block. Currently in production.

·       Three new blocks containing historical conventional oil discoveries awarded to Andes by the regulator (ANH) in the Llanos basin, Colombia.

·       Revenue rose 114% year on year of which 79% results from production growth and 35% from recognising the results of 2013 acquisitions for the full year.

·       2014 average selling price of US$73 per barrel.

 

Post year end highlights:

 

·       On 20 January 2015 Andes acquired a 51% interest in Interoil Exploration and Production ASA ("IOX") for a consideration of US$4.7 million. The acquisition provides Andes with operational capability in exploration and producing licences in Colombia, which includes 5.7 million bbls net of 2P reserves and 1,500 boepd net of production. The acquisition allows Andes to consolidate its position in Colombia and increase and diversify its production, reserve base and cash flow.

·       Current daily production: Argentina 1,952 bpd; Colombia 1,500 (IOX); total 3,452 bpd.

·       Current selling price in Argentina is US$77 per barrel and in Colombia US$61 per barrel.

 

Alejandro Jotayan, CEO said:

 

"During 2014 we accomplished very demanding objectives, significantly increasing our revenues resulting in positive and growing maiden operating profits, as well as continuing to develop our shale acreage in the Vaca Muerta with two discoveries this year.  In 2015 we expect further growth, and will further develop our unconventional licences and consolidate our position as the leading independent public company in the Vaca Muerta."

 

 

For further information please contact:

 

Andes Energia plc

Nicolas Mallo Huergo, Chairman

Alejandro Jotayan, CEO

Billy Clegg, Head of Communications

 

T: +54 11 4110 5150

 

T: +44 20 3757 4983

Macquarie Capital (Europe) Ltd

Jon Fitzpatrick

Fergus Marcroft

Nick Stamp

 

T: +44 20 3037 2000

 

Westhouse Securities

Antonio Bossi

David Coaten

 

T: +44 20 7601 6100

GMP Europe LLP

Rob Collins

Emily Morris

 

T: +44 20 7647 2800

Camarco

Georgia Mann

 

T: +44 20 3757 4986

 

Note to Editors:

Andes Energia is an oil and gas company focused on onshore South America with a market capitalisation of circa £150m. The Company has its main operations in Argentina and Colombia.

 

Annual Report

The Company will shortly be posting to shareholders a copy of the audited annual report for the year ended 31 December 2014 together with the notice for the Annual General Meeting, to be held at the offices of Nabarro LLP at Lacon House, 84 Theobald's Road, London WC1X 8RW at 10.00a.m. on 25 June 2015. The annual report will be made available on the Group's website at www.andesenergiaplc.com.ar after it has been posted to shareholders

 

STRATEGIC REPORT

 

OVERVIEW

 

Andes Energia plc ("Andes" or the "Company" and with its subsidiaries the "Group") is a Latin American oil and gas group, with interests in Argentina, Colombia, Brazil and Paraguay.

 

Year ended 31 December

2014

2013

 

US$m

US$m

Revenue

48.2

22.5

Operating profit / (loss)

**5.5

*(3.9)

EBITDA

**8.8

*(2.4)

Net operating cash generated from operations

14.6

3.4

 

* Before exceptional items of US$6.2 million

** Before impairment charges of US$3.8 million

 

Our financial results incorporating the results of Andes together with its subsidiaries for the year ended 31 December 2014 are set out below.

 

The Group recorded an operating profit of US$5.5 million for the year before provisions for impairment compared to an operating loss before exceptional items on continuing operations of US$3.9 million in 2013.

 

BUSINESS REVIEW

 

Andes's portfolio includes:

 

·      46 licences

·      7.5 million net acres of licence area

·      20 million bbls of 2P net reserves in Argentina

·      640 million boe of net contingent and prospective resources

·      2014 average production of approximately 1,700 bpd

 

Andes is an oil and gas company focused on South America with interests in Argentina, Colombia, Brazil and Paraguay. The Company has interests in exploration, development and producing assets. The Company has 20 million bbls of conventional 2P reserves in Argentina and certified resources of 640 million boe. The Company's licences cover 7.5 million acres across South America with 2 million net acres in unconventional plays including 250,000 net acres in the Vaca Muerta formation, which is the second largest shale oil deposit in the world and the only producing shale oil deposit outside of the USA. Over 250 wells have already been drilled and fracked in the Vaca Muerta formation. The Company currently produces 1,952 bpd in Argentina from 6 conventional fields, with positive cash flow generated. Andes, with its partner YPF, has 30 wells planned over the next 12 months, which will be funded primarily by cash flow from production.

 

OPERATIONAL REVIEW

 

2014 highlights:

 

·      Average production rate of 1,700 bpd in 2014 (2013: 916 bpd).

·      A total of 25 development and appraisal wells were drilled and 9 wells were converted to injection wells in the Chachahuen block, which is now producing 709 bpd net to Andes.

·      Las Varillas x-1 well was successfully fracked and tested in the Vaca Muerta shale formation.

·      Successful operation on the Vega Grande x-1well, testing the Vaca Muerta formation.

·      Three new blocks with conventional oil discoveries were awarded to Andes by the regulator (ANH) in the Llanos basin, Colombia.

·      Revenue increase of 114% year on year of which 79% results from production growth and 35% from recognising the results of 2013 acquisitions for the full year.

·      2014 average selling price of US$73 per barrel.

 

Post year end highlights:

 

·      On 20 January 2015 Andes acquired a 51% interest in Interoil Exploration and Production ASA. The acquisition provides Andes with an interest in exploration and producing licences in Colombia and 5.7 million bbls of 2P reserves. The acquisition allows Andes to increase and diversify its production and reserve base.

·       Current daily production: Argentina 1,952 bpd; Colombia 1,500 (IOX); total 3,452 bpd.

·       Current selling price in Argentina is US$77 per barrel and Colombia US$61 per barrel.

 

Andes continued with its stated strategy to expand and diversify its oil and gas portfolio during 2014 and has been able to increase its average production in 2013 from 916 bpd to 1,700 bpd in 2014. Andes has experienced strong performance from its conventional activities and is well placed to develop its position in the Vaca Muerta formation.

 

Argentina

 

Summary

 

Licences

2P reserves

Resources

Current Production

Net acres

 

(MMbbls)

(MMbbls)

(bbls/day)

 

Conventional production/shale development

Mendoza

6

17.5

368.7

1,952

420,393

Conventional development

Mendoza

4

1.6

0.0

0

1,384

Shale oil development

Neuquén

2

0.2

171.0

0

39,230

Conventional/unconventional exploration

Rio Negro

1

N/A

32.0

0

124,788

Conventional/unconventional exploration

Chubut

7

N/A

16.7

0

2,771,402

Conventional exploration

Salta

3

0.3

50.0

0

2,865,439

 

 

 

 

 

 

 

Total

 

23

19.6

638.4

1,952

6,222,636

 

 

Chachahuen block - Mendoza

 

Licence status

 

The Argentine Province of Mendoza granted a 25 year right to develop the "Chachahuen Sur" ("ChuS") oil field located in the Chachahuen block, to a joint operation between Andes, the state-run energy company YPF and the local firm Energia Mendocina. This development block covers an area of 72 km² in the south of the Chachahuen block that borders the energy-rich Neuquén Province. The remaining area (approximately 3,063 km²) is still in the exploration phase.

 

Development drilling (ChuS)

 

The 2014 drilling program focused on developing and delineating the ChuS field discovery by the well Chus x.-2. The well program targeted the clastic member, cycle 2 and 3 of the Rayoso formation. This unit was deposited during the early Cretaceous in a predominantly continental environment and is composed of a succession of fine sandstones, red mudstones, and minor evaporates. A total of 23 development wells were drilled and completed successfully during the year.

The JV is planning to drill a total of 30 development wells during 2015.

 

Exploratory drilling

 

Two appraisal wells ChuS e-186 and ChuS e-187 were drilled and completed successfully, which targeted the sandstone of cycle 5 of Rayoso formation. The wells were placed approximately 2.2 km and 3.6 km respectively southeast of the discovery well ChuS x-44.ChuS e-186 came on stream in December 2014 at an initial rate of 96 bpd.

 

Enhanced Oil Recovery -Water Flood project

 

In order to enhance oil recovery a water flood pressure maintenance project, a method of secondary recovery, was initiated to displace residual oil. The project commenced continuous operation in November 2014 to support the pressure of the reservoirs and sweep or displace oil from the prolific cycle 2 of the Rayoso formation.

 

Nine producing wells were converted to injector wells and a network of brine injection wells were built as an extension of the facilities in the neighbouring DBE field. Each water flood pattern comprises four producing wells surrounding an injection well (an inverted five spot pattern).

 

An average rate of 1,800 bpd was injected during the first stage of the project. In 2015, it is planned to continue with this secondary recovery program, converting an additional 10 producing wells into injector wells.

 

Oil production (ChuS)

 

At the end of 2014 a total of 59 wells were on stream, producing approximately 3,545 bpd (Andes has a 20% working interest equivalent to 709 bpd).

 

In all of the wells, a progressing cavity pump artificial lift system was installed, which best suits the conditions of the wells and has long been proven to be efficient.

 

Puesto Pozo Cercado and Chañares Herrados blocks - Mendoza

 

During 2014, three wells were worked over, as a result production increased by an average of 30 bpd.

 

El Manzano West - Mendoza

 

During February 2014, Andes announced the results of the multi-target unconventional and conventional exploration well, Las Varillas x-1. The well, the most northerly well to be drilled into the Vaca Muerta formation, was vertically drilled reaching a total depth of 7,851 feet (2,393 metres) and encountered 410 feet (125 metres) of gross pay in the unconventional Vaca Muerta formation, the primary target. The drilling was characterised by the persistent presence of oil and gas shows through most of the Vaca Muerta interval. Geochemical data were sampled at two metre intervals through the entire Vaca Muerta column. Oil was also found in the mud pits. Two 18 metre core samples from the Vaca Muerta formation have been recovered and a comprehensive suite of logs has been run. The analysis of this data was used to design the completion, fracking and production testing of this well. The Las Varillas x-1 well was drilled by YPF. Andes was fully carried during the drilling of this well, as part of the farm-in agreement with YPF under which Andes has a 100% working interest in all production from the Agrio formation, which overlays the Vaca Muerta formation and a 40% carried interest in the Vaca Muerta and other formations.

 

Ñirihuau block - Chubut

 

An additional 500 soil gas samples were collected bringing the total to 3,000 samples. As part of our commitment work a total of 160 km of 2D seismic is being reprocessed and reinterpreted.

 

Colombia

 

In six out of the eight areas where Andes holds interests in Colombia (VMM-8, LLA-79, LLA-12, LLA-2, LLA-49 and LLA-28), the country's regulatory authority, ANH, has approved the start of operational phase 1. This means that Andes can commence the operations needed to realise the potential of these areas. These activities will include the recording of new seismic data, the reprocessing of existing data using new technologies and the evaluation of existing wells in the area. Data from recent discoveries in nearby areas will be incorporated into Andes's regional database to evaluate similar features within Andes's acreage.

 

In August 2014, three new blocks with conventional oil discoveries were awarded to Andes by the regulator (ANH) in the Llanos basin (YD LLA 2, YD LLA 5 and YD LLA 8).

 

Brazil and Paraguay

 

The Board is focused on the development of its Colombia and Argentina operations and is considering its options with regards to the development of its interests in Brazil and is still pursuing analysis and exploration activities in Paraguay.

 

TRADING PERFORMANCE

 

Revenue from operations increased from US$22.5 million in 2013 to US$48.2 million in 2014. Average production has increased from 916 bpd in 2013 to 1,700 bpd in 2014. Exploration and development activities continue and we expect to see the benefit of these programs in future years. Revenue increase of 114% year on year of which 79% results from production growth and 35% from recognising the results of 2013 acquisitions for the full year.

 

FINANCIAL PERFORMANCE

 

Revenue has significantly increased to US$48.2 million compared to US$22.5 million in 2013, an increase of 114% primarily as a result of production from Chachahuen and CHPPC. The loss before tax of US$4.1 million (before impairment provisions of US$3.8 million) compares favourably with the US$6.3 million loss before tax in 2013 (before the exceptional gain of US$6.2 million) particularly given the investment of US$20 million in exploration and development activities during the year.

 

The Group's total assets have decreased from US$319 million in 2013 to US$265 million at the end of the year mainly due to the devaluation of the Argentine Peso. The devaluation of the Argentine Peso resulted in US$49 million of exchange losses being recognised in the comprehensive loss for the year (2013: US$68 million).

 

Borrowings increased from US$56 million in 2013 to US$58 million at the end of the year. Net current liabilities increased from US$1 million at the end of 2013 to US$2 million at the end of 2014.

 

At year end, the Group had cash resources of US$10.6 million compared to US$8.2 million at the end of 2013, which management believes together with the free cash flow generated from existing activities will be sufficient to meet its ongoing working capital requirements. The directors will not be recommending the payment of a dividend.

 

EARNINGS PER SHARE

 

Basic and diluted loss per share increased from 0.1 cents in 2013 to 2.11 cents in 2014. During the year the number of shares in issue increased by 37 million to 552 million.

 

SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

 

On 20 January 2015 Andes acquired a 51% interest in Interoil Exploration and Production ASA for a consideration of US$4.7 million. The acquisition provides Andes with an interest in exploration and producing licences in Colombia and 5.7 million bbls of 2P reserves. The acquisition allows Andes to increase and diversify its production and reserve base.

 

There were no other significant events after the balance sheet date.

 

OUTLOOK

Operationally, 2015 has started well, with group production increasing to 1,952 bpd in Argentina and 1,500 bpd in Colombia from Interoil's production, taking production levels to 3,452 bpd.  Selling prices in Argentina have remained at US$77/bbl (with Andes receiving a slight discount to this based on oil specification). 

 

Andes, with its partner YPF, has 30 wells planned over the next 12 months, which will be funded primarily by field production cash flow.

 

With the General Election in Argentina set for October 2015 and pro-business candidates leading comfortably in the polls, Andes is very well placed to benefit from the development of the world class Vaca Muerta shale, where we have 250,000 net acres, all underpinned by oil prices of US$77/bbl.

 

Alejandro Jotayan

Chief Executive Officer

 

 

CONSOLIDATED INCOME STATEMENT

 

FOR THE YEAR ENDED 31 DECEMBER 2014

 

 

31-Dec-14

31-Dec-13

 US$'000

 US$'000

Revenue

48,229

22,456

Production cost

(30,630)

(14,224)

17,599

8,232

Other operating income/(expense) before exceptional items

996

(1,066)

Exceptional items

                   -  

6,211

Total other operating income

996

5,145

Impairment charge

(3,796)

-

Distribution costs

(3,115)

(1,711)

Administrative expenses

(9,977)

(9,387)

1,707

2,279

Finance income

3,783

6,188

Finance costs

(13,397)

(8,561)

(7,907)

(94)

Taxation

(3,012)

(334)

(10,919)

(428)

 

 

Cents

 Cents

Adjusted basic and diluted loss per share

(2.11)

(1.58)

Basic and diluted loss per share

(2.11)

(0.10)

 

The finance costs are accrued and no interest has been paid during the year and the Group has the option on a large proportion of the loans to satisfy the interest in shares.

 

 

 

 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

 

FOR THE YEAR ENDED 31 DECEMBER 2014

 

 

 

 

31-Dec-14

31-Dec-13

 

US$'000

US$'000

Loss for the year

(10,919)

(428)

Translation differences

(48,760)

(68,058)

(59,679)

(68,486)

 

The above items will not be subsequently reclassified to profit and loss.

 

 

 

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

 

31 DECEMBER 2014

 

31-Dec-14

31-Dec-13

 

US$'000

US$'000

 

 

Intangible assets

165,104

219,831

Property, plant and equipment

61,185

60,812

Available for sale financial assets

1,646

1,634

Trade and other receivables

10,592

10,724

Deferred income tax assets

464

1,490

238,991

294,491

 

 

 

 

Inventories

618

540

Available for sale financial assets

2,644

3,680

Trade and other receivables

12,339

12,151

Restricted cash

5,944

3,561

Cash and cash equivalents

4,700

4,617

26,245

24,549

 

 

 

 

Trade and other payables

20,348

17,436

Financial liabilities

7,870

7,957

28,218

25,393

 

 

 

 

Trade and other payables

9,326

8,854

Financial liabilities

49,793

48,018

Deferred income tax liabilities

47,614

66,405

Provisions

1,727

454

108,460

123,731

 

 

128,558

169,916

 

 

 

 

 

Called up share capital

90,164

84,216

Share premium account

73,248

58,281

Other reserves

(69,554)

(17,753)

Retained earnings

34,700

45,172

128,558

169,916

 

 

 

 

 

 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

 

FOR THE YEAR ENDED 31 DECEMBER 2014

 

 

Share

Share

Retained

Other

Total

 

capital

premium

earnings

reserves

 

 

 

 

US$'000

US$'000

US$'000

US$'000

US$'000

 

34,814

1,111

45,192

40,662

121,779

Loss for the year

 

 

                   -  

                   -  

(428)

                       -  

(428)

Translation differences

 

 

                   -  

                   -  

                   -  

(68,058)

(68,058)

Total comprehensive loss for the year

 

 

-  

                   -  

(428)

(68,058)

(68,486)

Issue of ordinary shares

 

 

49,402

57,170

                   -  

                       -  

106,572

Deferred contingent consideration shares

 

 

-  

                   -  

                   -  

9,355

9,355

Fair value of share based payments

 

 

-  

                   -  

408

                       -  

408

Issue of warrants

 

 

                   -  

                   -  

                   -  

288

288

 

84,216

58,281

45,172

(17,753)

169,916

Loss for the year

 

 

                   -  

                   -  

(10,919)

                       -  

(10,919)

Translation differences

 

 

                   -  

                   -  

                   -  

(48,760)

(48,760)

Total comprehensive loss for the year

 

 

-  

                   -  

(10,919)

(48,760)

(59,679)

Issue of ordinary shares

 

 

5,948

14,967

                   -  

                       -  

20,915

Deferred contingent consideration shares

 

 

                   -  

                   -  

                   -  

(3,041)

(3,041)

Fair value of share based payments

 

 

-  

                   -  

447

                       -  

447

 

90,164

73,248

34,700

(69,554)

128,558

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Merger

Warrant

Reverse

Translation

Deferred

Total

 

 

reserve

reserve

acquisition

reserve

consideration

Other

 

 

reserve

 

reserve

Reserves

 

 

US$'000

US$'000

US$'000

US$'000

US$'000

US$'000

55,487

1,817

                   -  

(16,642)

                       -  

40,662

Translation differences

 

                   -  

                   -  

                   -  

(68,058)

                       -  

(68,058)

Total comprehensive loss for the year

 

-  

                   -  

                   -  

(68,058)

                       -  

(68,058)

Deferred contingent consideration shares

 

                   -  

                   -  

                   -  

204

9,151

9,355

Issue of warrants

 

                   -  

288

                   -  

                   -  

                       -  

288

55,487

2,105

                   -  

(84,496)

9,151

(17,753)

Translation differences

 

                   -  

                   -  

                   -  

(48,760)

                       -  

(48,760)

Total comprehensive loss for the year

 

-  

                   -  

                   -  

(48,760)

                       -  

(48,760)

Deferred contingent consideration shares

 

                   -  

                   -  

                   -  

                  84  

(3,125)

(3,041)

55,487

2,105

                   -  

(133,172)

6,026

(69,554)

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED CASH FLOW STATEMENT

 

FOR THE YEAR ENDED 31 DECEMBER 2014

 

 

 

31-Dec-14

31-Dec-13

 

US$'000

US$'000

14,640

3,431

Tax paid

-

(59)

14,640

3,372

 

 

Purchase of property, plant and equipment

(18,234)

(1,828)

Purchase of exploration assets

(1,785)

(1,625)

Purchase of financial assets

(84)

(2,525)

Acquisition of subsidiaries

-

23

(20,103)

(5,955)

 

 

 

 

Funds from borrowing

8,601

10,386

Interest received

                    -

11

Interest paid

-

-

Proceeds from issue of shares

33

359

8,634

10,756

 

 

Exchange losses on cash and cash equivalents

(705)

(174)

 

 

 

2,466

7,999

Cash and cash equivalents at the beginning of the year

8,178

179

10,644

8,178

 

Significant non-cash transactions

 

Significant non-cash transactions in 2013 were the acquisitions of Kilwer S.A., Ketsal S.A. and CHPPC Andes S.L.R (formerly MGM International S.R.L.).

 

1. GENERAL INFORMATION

 

1.1 Introduction

 

The financial information set out in this announcement does not comprise the Group's statutory accounts for the years ended 31 December 2014 or 31 December 2013.

 

The financial information has been extracted from the statutory accounts of the Company for the years ended 31 December 2014 and 31 December 2013. The auditors reported on those accounts; their reports were unqualified and did not contain a statement under Section 498(2) or Section 498(3) of the Companies Act 2006.

 

The Company has produced its statutory accounts for the year ended 31 December 2014 in accordance with International Financial Reporting Standards as adopted by the European Union and in accordance with the Group's accounting policies that are unchanged from those set out in the 2013 statutory accounts.

 

The statutory accounts for the year ended 31 December 2013 have been delivered to the Registrar of Companies, whereas those for the year ended 31 December 2014 will be delivered to the Registrar of Companies following the Company's Annual General Meeting.

 

1.2  Taxation

 

 

 

 

 

Current tax

 

(3,635)

(1,172)

Deferred taxation

 

623

838

Tax charge

 

(3,012)

(334)

 

 

 

 

Loss on ordinary activities before tax

 

(7,907)

(94)

 

 

 

 

Tax credit on loss at standard rate of 35%

 

2,768

33

 

 

 

 

Effects of:

 

 

 

 

 

 

 

Expenses not deductible for tax purposes

 

 

 

Items not deductible for tax purposes

 

(132)

(1,132)

Effect of items not taxable

 

375

2,278

Temporary timing differences

 

(210)

0

Recovery of deferred tax position

 

1,316

179

Tax losses for which no deferred tax asset is recognised

 

(7,129)

(1,692)

Current tax charge

 

(3,012)

(334)

 

It should be noted that under Argentine tax law group relief, allowing taxable profits to be offset against taxable losses of companies with the same group, are not available.

 

The tax rate used for the 2014 and 2013 reconciliations above is the corporate tax rate of 35% payable by corporate entities in Argentina on taxable profits under tax law in that jurisdiction. There is no tax arising on any items within the consolidated statement of comprehensive income.

 

The Group is liable to pay a minimum notional income tax at the applicable tax rate (1%) for Argentina´s subsidiaries, calculated on the amount of computable assets at the closing of the financial year. This tax is supplementary to income tax and the Group's tax liability in each fiscal year will be the higher of the minimum notional income tax and the income tax for the year. If the minimum notional income tax for a given financial year exceeds the amount of income tax, such excess may be carried forward as a partial payment of income tax for any of the ten following fiscal years.

 

1.3          Loss per share

 

Basic loss per share is calculated by dividing the net loss for the year attributable to ordinary shareholders of the Group by the weighted average number of ordinary shares outstanding during the year. The basic and diluted loss per share are the same as there are no instruments that have a dilutive effect on earnings. Adjusted basic and diluted loss per share are presented after adjustment of exceptional items.

 

31-Dec-14

31-Dec-13

 

Cents

Cents

 

 

Basic and diluted loss per share

(2.11)

(0.10)

Adjusted basic and diluted loss per share

(2.11)

(1.58)

 

 

 

US$'000

US$'000

Loss for the financial year attributable to equity holders

(10,919)

(428)

Exceptional ítems

                   -  

(6,211)

Tax on exceptional ítems

                   -  

                       -  

Adjusted loss for the financial year attributable to equity holders

(10,919)

(6,639)

 

 

 

 

No,'000

No,'000

Weighted average number of shares

516,786

419,224

Effect of dilutive warrants

                   -  

                       -  

Diluted weighted average number of shares

516,786

419,224

 

 

 

 

No,'000

No,'000

Potential number of dilutive shares

38,656

34,728

 

The warrants are deemed to be non-dilutive for the purposes of this calculation.

                                               

1.4          Events after the balance sheet date

 

On 20 January 2015, the Group acquired a 51% interest in IOX. Andes acquired its interest through the participation in a private placement by Interoil of 330,000,000 shares at NOK0.11. The acquisition provides Andes with an interest in exploration and producing licences in Colombia and 5.7 million bbls of 2P reserves. The acquisition allows Andes to increase and diversify its production and reserve base. Andes believes its management and technical capabilities established in the region, combined with Interoil's existing operational base and personnel will contribute to accelerating the development of both companies' acreage in Colombia. At the date of these financial statements, the Group does not have sufficient information to perform a purchase price allocation required by IFRS 3 as the acquired group's financial statements have not yet been closed. Consequently, the initial accounting for the acquisition is not yet complete.

                                               


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
FR BIGDURGDBGUG

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