Aurelian Oil & Gas PLC
(“Aurelian” or the “Company”)
Final results for the year ended 31 December 2011
Aurelian, the European focussed E&P Company, is pleased to announce its final results for the year ended 31
A challenging year for the Company, but important technical lessons learned which are now being positively applied to
Phase one of the Siekierki field appraisal programme completed. Significant gas volume in place confirmed with mid-
case 2tcf gross GIIP (forthcoming RPS CPR – see table below). Recoverability and commerciality still to be proven –
typical of the early stage appraisal of a large unconventional gas resource.
High impact exploration prospects in central and southern Poland, Slovakia and Romania will provide further
opportunities in the future
Strong cash position of €63.4 million, sufficient to carry out our planned exploration programme of up to 10 wells and
appraisal activities well into 2013
Strategic Options Review continuing, update to be announced in due course
Siekierki GIIP and resources from the forthcoming 2012 RPS CPR
Gross (100% equity) Low Mid High
GIIP (bcf) 932 1,992 4,088
Contingent Resources (bcf) 96 422 1,395
1C 2C 3C
Contingent Resources (bcf) 422
NPV €383 million
Siekierki is a discovery and, as such, is assigned a significant quantity of Contingent Resources
(Development Pending).The chance of development is primarily contingent on resolving the
Demonstration of successful fracture stimulation as per design and commercial flow rates
from an extended well test.
Demonstration of successful operation of Jet Pumps for lifting water.
Disposal via re-injection of produced water.
RPS considers that Aurelian’s current appraisal programme is reasonable and will address
Rowen Bainbridge, CEO of Aurelian, commented:
“Despite 2011 being a challenging year for the company, with operational difficulties and lower than expected initial
flow test rates on our Siekierki asset, our confidence in the attractiveness and materiality of Siekierki has been
reaffirmed by the forthcoming CPR and we have learnt significant lessons which we are now applying to on-going
operations. The Siekierki project is a fundamental part of the Aurelian portfolio and we remain committed to bringing
this significant gas resource to market.
We are also continuing with the review of strategic options, and the maximisation of shareholder value remains our top
priority. Aurelian is a well-funded company with high quality assets and a talented and motivated team of people and
we look forward to 2012 with renewed confidence.”
There will be a conference call this morning at 10.00am UK time for analysts and investors. Please call
College Hill on 020 7457 2020 for the dial in details and go to the Company’s website
www.aurelianoil.com to download the presentation that will be discussed on the call.
Aurelian Rowen Bainbridge, CEO 020 7245 4999
Greenhill & Co. LLP Financial Adviser 020 7198 7400
Ambrian Partners Limited Nominated Adviser 020 7634 4700
Oriel Securities Joint Broker 020 7710 7600
Macquarie Capital (Europe) Joint Broker 020 3037 2000
Limited Paul Connolly
College Hill Public Relations Adviser 020 7457 2020
2011 has been a tough year for Aurelian. Positive progress in understanding the potential of our extensive exploration portfolio, and
successful strengthening of our technical capabilities, particularly in Poland, have been overshadowed by disappointing results from
our appraisal programme in the Siekierki field.
Much of our energies in recent months have been devoted to unravelling the evident technical complexity of the Siekierki field. While
the production results of the two wells were below expectation, the data acquired has significantly enhanced our understanding of the
asset, and leads us to the conclusion, supported by two Third Party Assessments, that Siekierki remains a material and attractive
project. Indeed, the Siekierki project is a fundamental part of the Aurelian portfolio and we remain committed to bringing this
significant gas resource to market. Mr Bainbridge comments in some detail in his Chief Executive Officer’s review on our thinking
regarding the future of Siekierki.
The changing outlook for Siekierki is the main driver for the Board to have initiated the Strategic Options Review which we
Evidently, the current impact of the 2011 Siekierki programme on our share price has been severe. Throughout this difficult period we
have received encouraging support from our shareholders and I would like to thank them for that.
Importantly, our cash position at 31 December was €63.4 million, which allows us to carry out our planned exploration and appraisal
activities well into 2013.
Our exploration portfolio has been critically examined and re-structured by Dr Smallwood, our Exploration Director. It now focusses
on four distinctive plays in Central Europe. Two of these plays have been matured for testing with the drill bit in 2012. The Sosna-1
well is planned to test the Zechstein ‘reef’ oil play in the Torzym concession in western Poland in Q2. The other play test will be
Aurelian’s first operated thrust belt well. Prospects in East Karpaty in southern Poland are approaching drillable status and Svidnik in
Slovakia is also being matured as a drilling option. All these wells are intended to be play-opening in the success case, in that they
would de-risk a number of additional prospects and leads identified within the existing Aurelian portfolio. The acreage position is
under review, with two new concessions being added in the Polish sector of the core areas in 2011, namely Prusice and Wetlina,
while two fringe blocks, Romanian Cuejdiu and Bulgarian B1-Golitza, are being relinquished.
We recognise that we are unlikely to be successful in creating value in our business without the excellent relationships we have built
with governments, service providers and the communities in our areas of operation. We appreciate their input and consider it a prime
enabler of safe and effective operating performance.
Last September we were delighted to announce the appointment of Mr Rozwadowski as an independent Non-executive Director. He
brings valuable regional insight to the Board, particularly in the context of operating within Central Europe and Poland. At the end of
November, Mr Reid resigned as Chief Financial Officer for personal reasons. We wish him well in his new career. We are most
grateful to Mr Matthews for stepping into the role of Finance Director at short notice and at a crucial time for Aurelian.
We have continued to invest in our people, building stronger teams in all of our locations. I believe that the expertise we can now
bring to bear in any situation is remarkable for a company of our size and I would like to thank all our staff for their resilience and
excellent contribution during this last year.
Chief Executive Officer’s Review
Strategic Options Review
2011 was an extremely challenging year for the Company. The steady progress we made in 2010 was overshadowed by
disappointing well results in both of our core areas. Geological risk and uncertainty is part of the exploration business and yet we
found ourselves caught in a perfect storm across conventional, unconventional, operated and non-operated plays. Specifically, the
initial production rates from the first two MFHWs on our Siekierki tight gas project were significantly lower than we had forecast and
our conventional thrust fold belt exploration programme did not make a significant discovery. It was a tough year for exploration
companies across the board but particularly hard for pioneers in early stage appraisal and high impact, emerging plays like Aurelian.
The support of all our staff, partners and shareholders has been essential and the Board and I would like to express our deepest
thanks in helping the Company move forward.
Whilst we retain our first mover advantage in Central Europe and we believe we have good people with the right experience,
expertise and technical skills to deliver project success across the Aurelian portfolio, the Board recognise that to unlock shareholder
value we will require more time, technology and capital. It is for this reason that we announced the Strategic Options Review in
February 2012 and appointed Greenhill & Co. to assist us in establishing the best way forward. The Review is continuing and I look
forward to updating you in due course. In the meantime, we continue to execute the plans we have set out; moving the appraisal of
the Siekierki tight gas field forward and drilling the high impact exploration prospects in central and southern Poland, Slovakia and
In the review below, I have touched on the key achievements and challenges we have endured over the year across our businesses.
I have also described how, despite the initial set-backs, we have weathered the storm and face 2012 stronger for the experience and
with a lot to look forward to.
Unlocking value through technology
Our strategy remains the exploration, appraisal and development of onshore hydrocarbon resources, through the application of
proven technologies to underexplored hydrocarbon systems. In our tight gas business, this means employing horizontal drilling and
fracture stimulation processes, and across our exploration business this means applying modern 2D and 3D seismic, along with the
latest thinking in geology and geoscience.
In 2011, we executed two MFHWs (approximately 5,000m and 5,500m along holes), drilled the deviated vertical Krzesinki-1 gas
discovery well and conducted the first urban 3D seismic survey in the city of Poznań as part of the appraisal of the Siekierki gas field.
These activities involved a number of technological firsts for the region such as the use of multistage fracture stimulation, directional
drilling and wireless geophones. In total, we acquired 1,657km of new 2D and 120km 2 3D seismic data in 2011 to deepen our
exploration prospect inventory and de-risk our high impact plays. This brings our investment in new seismic technology to over €19
million since 2009. Whilst technology transfer has had its challenges, notably in the Trzek-2 well on the Siekierki gas field, we remain
convinced that our strategy remains solid and that we are steadily progressing up the learning curve.
During the year, we continued with our commitment to grow a sustainable business in such a manner as to provide enduring benefits
to shareholders, stakeholders, staff and the communities in which we operate. We are committed to ensuring the health and safety of
all who work with us and to protect the environment in which we work. We insist that all our contractors maintain the same high
standards. Our ultimate goal is zero harm to people and the environment, and our HSE performance last year was good. As part of
our efforts at improvement, we have updated our HSE management system and placed a greater emphasis on sustainable
The Company respects the communities in which it works and seeks to continuously improve the ways in which it contributes directly
or indirectly to the economy and well-being of those communities. We recognise that understanding and respecting local communities
is essential to ensuring the Company’s continued presence in the locations where we operate. This has been particularly true in
Poznań where we worked closely with community groups and local government to explain and minimise the implications of “fraccing”
on the Siekierki tight gas project, a subject that has been particularly sensitive in the USA. Aurelian has been a pioneer in this regard,
working closely with regional and national agencies to establish suitable legislation in Poland for these new oil field practices.
Economic review and the European hydrocarbon revolution
The Central European Energy Market continues to have compelling economic fundamentals despite the continuing Eurozone crisis.
High reliance on imports results in strong local demand for indigenously produced hydrocarbons. Fiscal terms remain some of the
most attractive in the world and gas prices in Poland remain robust. There has been some speculation about moves by the Polish
government to tighten these terms and we have seen this recently in the licence fee charges associated with the block 208 licence
extension. However, we believe that any changes are likely to be modest and will not impact upon the overall attractiveness of the
financial terms in Central Europe.
With these fundamentals, the market has seen significant new entrants, creating intense competition for new licences and
concessions, as well as the services required to carry out the necessary drilling and exploration programmes. This trend looks set to
continue throughout 2012. Aurelian, with its first mover advantage and technical and regional expertise, is an ideal partner for any
new entrants into this market.
Review of our core areas in Central Europe
Our strategy continues to be focussed on the exploration, appraisal and development activities in two core areas. The core areas
contain assets which offer potentially material returns to shareholders, significant room for organic and accelerated growth, and have
the potential to deliver 50mmboe of proven reserves net to Aurelian.
Three exploration wells were drilled in 2011. Krzesinki-1 (Poland, block 207 in Poznań East) and Niebieszczany-1 (Poland, block 457
in Bieszczady) were both flow-tested as gas discoveries, while Horodnic-1 (Romania, Brodina block) was a dry hole.
A considerable investment in seismic data was made during 2011 to de-risk previously identified prospects and leads, and to provide
reconnaissance data in some areas where no data had previously existed. Aurelian’s continuing strategy of applying existing
technology for the first time in the region continued with the completion of Poland’s first urban 3D seismic survey in block 206 in
Poznań North. Furthermore, all seven operated and three non-operated seismic surveys were completed within budget.
Core area 1: The southern Permian Basin: The Rotliegendes and Zechstein plays in central and western Poland
The main focus of our activities in 2011 was the Siekierki tight gas project. We executed a three-well appraisal programme to
establish the likely recovery rates from long-reach horizontal wells and to establish the lateral extension of the field to the south-west.
All three well results were below our expectations and those of the market. Trzek-2 and Trzek-3 flowed at 3.0 and 3.2mmscf/d
respectively after 14 and 28 days of testing and Krzesinki discovered 5-20bcf gross GIIP.
Although the results were disappointing, the data collected has significantly improved our understanding of the asset. In October
2011, we commissioned an independent review by the technical consultants TRACS. The results of the review were that the Siekierki
gas field is still a material and attractive project. A CPR is being finalised by RPS. We have now answered many of the questions
posed by the initial results. We now have a much better understanding of the gas field and a clear plan to take the project forward
involving further testing, early commercialisation of gas and export system, and a strategic partner. Based on the above, we are
planning for first test production by the end of 2013.
The Siekierki project is a fundamental part of the Aurelian portfolio and we remain committed to bringing this significant gas resource
On our Torzym block in central Poland we have matured our ‘reef’ oil business. We plan to spud our first oil well targeting a mid-case
35mmbbl gross STOIIP prospect in April 2012. This is an exciting block with several potential follow-on prospects and leads already
We have obtained the Prusice licence, a shale gas block adjacent to San Leon’s acreage in the Fore-Sudetic Basin in central Poland.
Core area 2: The Carpathian Thrust Fold Belt in southern Poland, Slovakia and central Romania
During the year we continued to develop our second core area. On our highly prospective Bieszczady licence, the Niebieszczany-1
well discovered 50bcf gross GIIP in two horizons and identified a 200bcf gross GIIP resource play in the Krosno Formation (Aurelian
estimates). This is something we will continue to work with the operator, PGNiG, to determine whether the discoveries can be tied in
The deeper targets remain untested across the Bieszczady block and we have further delineated the subsurface of the licence
through two additional 2D seismic surveys; one of 312km completed in March 2011 and a second of 262km completed in February
2012, increasing the block coverage to 60%.
Across the Polish Carpathians, Slovakia and Romania we shot 6 surveys covering 1,082km. This investment to enhance our prospect
inventory has been incorporated into our plan to drill in Q4 2012, and in Slovakia, the Medzilaborce survey is expected to add further
prospects to those currently identified in Svidnik.
In Romania we tested the Sarmatian sand play on our Brodina licence with the Horodnic-1 exploration well. The well showed that the
Voitinel trend did not extend south and we will now focus on the thrust belt potential to the west of the Brodina block.
We have also obtained the Wetlina licence, a fold belt play close to the Bieszczady block in southern Poland.
Our people and values
We continue to enhance the technical depth and project execution skills at all levels of the Company. During 2011, we have added
capability in exploration with the appointment of Dr Smallwood as Exploration Director and built up our subsurface team of UK and
Poland based senior geologists and geophysicists, reducing our reliance on third party consultants. We have also strengthened the
Kraków operating base with the appointment of Paweł Chałupka as Operations Director and Eric Beaumont as Senior Drilling
Aurelian’s values are Integrity, Courage, Resilience, Acting Like Owners and most of all a Winning Mentality. We have had to draw
heavily on these values over the last year and it is a credit to our people that we have endured and moved on. I would like to add my
personal thanks to all our employees, contractors, consultants and their families for all their hard work and character during the most
challenging year in the Company’s history.
The reported loss of €10.1 million for the period (2010: €16.9 million) included €1.4 million of costs relating to the disposed Romanian
business (2010: €7.2 million), and exploration write-offs of €3.8 million (2010: €4.6 million).
Cash of €63.4 million was held at year-end 2011 (2010: €114.7 million plus €1.7 million held in a disposal group), which is enough to
fund our exploration programme for the next 18 months.
During the year, the net outflow of cash of €53.0 million (2010: inflow of €102.4 million) included the following major items: €6.3
million of operational expenses (2010: €8.3 million), €54.4 million of capital expenditure (2010: €20.3 million) and €1.2 million related
to the early settlement of the Gemini loan facility (“Gemini loan”) (2010: nil), offset by receipts of €5.3 million from the disposal of our
non-core Romanian assets (2010: nil), €2.2 million from the issue of shares to staff and advisers on the exercise of options and
warrants and €0.8 million in bank interest received (2010: €0.4 million).
The completion of Trzek 2 and 4 other wells drilled during 2011 cost a total of €33.8 million. 1,657km of 2D seismic and 120km of 3D
seismic was shot during the year, generating trends and prospects, enhancing our portfolio and costing a total of €10.7 million.
Summary and outlook
2011 was an incredibly challenging year for Aurelian. Operational difficulties and pressure on the share price have tested our values
of courage and resilience in adversity. We have weathered the storm and face 2012 stronger for the experience and can build on
what we have learnt. The insight that we have gained on Siekierki through the pioneering 2010/11 appraisal programme is an
important step forward for the Company. We now know a lot more about this project and have developed a more precise and phased
appraisal plan to capture its value, which we are now executing. 2012 will see us perform further well tests and bring in a strategic
partner. This will help us target the recovery of the 422bcf (gross) of 2C Contingent Resources and the €383 million of NPV attributed
to it by RPS .
We have assembled a great team and Aurelian has created an attractive platform in Central Europe, comprising a diversified portfolio
of operated exploration and appraisal licences, which would be very difficult to replicate. We also have strong working relationships
and in-country operating experience. We are absolutely committed to delivering shareholder value and believe that the Strategic
Options Review is the correct mechanism for determining the right course of action.
The strategic hypothesis of unlocking value through technology in oil and gas exploration and production in an energy-dependant part
of the world remains intact. We are moving the Company forward.
Chief Executive Officer
Siekierki is a discovery and, as such, is assigned a significant quantity of Contingent Resources. The NPV quoted is the mid-case
2C development recovering 422bcf of gas.
Consolidated statement of comprehensive income
Year ended December 31, 2011
Notes Year to Year to
Other administrative expenses (5,377) (3,763)
Transaction related professional costs - (14)
Exchange loss (109) (399)
Equity settled share based payments (422) (170)
Exploration costs impaired (3,847) (4,620)
Total administrative expenses (9,755) (8,966)
Other operating income 1 14
Operating loss (9,754) (8,952)
Finance income 1,119 1,055
Finance expense (11) (1,782)
Loss before tax (8,646) (9,679)
Taxation - -
Loss from continuing operations (8,646) (9,679)
Loss from discontinued operations, net of tax (1,427) (7,202)
Loss for the year attributable to owners of the parent (10,073) (16,881)
Other comprehensive income
Foreign currency translation (loss)/gain (8,425) 1,166
Total comprehensive income attributable to owners of the parent (18,498) (15,715)
Year to Year to
€ cents € cents
Loss per share – basic and diluted loss per 5p ordinary share for (1.76)c (2.83)c
Loss per share – basic and diluted loss per 5p ordinary share 3 (2.05)c (4.94)c
Consolidated statement of
changes in equity
Year ended December 31, 2011
Share Share payment EBT translation Other Retained Total
capital premium reserve reserve reserve reserves deficit equity
€’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000
At 1 January 2010 15,498 65,856 2,124 - (9,479) 3 (15,787) 58,215
Loss for the year - - - - - - (16,881) (16,881)
Foreign currency translation gain - - - - 1,166 - - 1,166
Share capital issued 14,852 124,725 - - - - - 139,577
Share issue costs - (7,175) - - - - - (7,175)
Share based payments - - 171 - - - - 171
At 31 December 2010 30,350 183,406 2,295 - (8,313) 3 (32,668) 175,073
Loss for the year - - - - - - (10,073) (10,073)
Foreign currency translation loss - - - - (8,425) - - (8,425)
Share capital issued 369 1,823 - - - - - 2,192
Purchase of shares by EBT - - - (167) - - - (167)
Share based payments - - 422 - - - - 422
At 31 December 2011 30,719 185,229 2,717 (167) (16,738) 3 (42,741) 159,022
Amounts subscribed for share capital at nominal value.
Share premium account
The Share premium account represents the amounts received by the Company on the issue of its shares in excess of the nominal value of the shares, net of
issue costs incurred.
Share based payment reserve
The balance held in the Share based payment reserve relates to the fair value of the share options and deferred shares issued that have been charged to the
Statement of Comprehensive Income since adoption of IFRS 2.
The EBT Reserve represents the cost of shares purchased by the Employee Benefit Trust to satisfy employee share awards.
Exchange translation reserve
The Exchange translation reserve includes movements that relate to the retranslation of the results and balances of subsidiaries whose functional currencies are
not the Euro.
Cumulative net gains and losses recognised in the Statement of Comprehensive Income net of amounts recognised directly in equity.
Consolidated statement of financial position
Year ended December 31, 2011
As at As at
Non current assets
Oil & Gas costs pending determination 95,732 56,511
Other intangible assets 42 16
Property, plant and equipment 779 178
Investments - -
Inventory 1,168 -
Trade and other receivables 7,311 10,977
Cash and cash equivalents 63,413 114,729
Assets in disposal groups classified as held for sale - 9,020
Total assets 168,445 191,431
Trade and other payables (9,405) (13,163)
Loans and borrowings (8) (1,241)
Liabilities directly associated with assets in disposal groups - (1,954)
classified as held for sale
Non current liabilities
Loans and borrowings (10) -
Net assets 159,022 175,073
Capital and reserves
Called up equity share capital 30,719 30,350
Share premium account 185,229 183,406
Share based payment reserve 2,717 2,295
EBT Reserve (167) -
Exchange translation reserve (16,738) (8,313)
Other reserves 3 3
Retained deficit (42,741) (32,668)
Consolidated statement of cash flows
Year ended December 31, 2011
Year ended Year ended
Notes 31-Dec-11 31-Dec-10
Cash flows from operating activities
Cash used in operations 4 (6,270) (8,266)
Interest paid (47) (92)
Tax paid - (3)
Net cash used in operating activities (6,317) (8,361)
Cash flows from investing activities
Purchase of property, plant and equipment (811) (349)
Purchase of intangible non current assets (53,598) (19,912)
Proceeds from sale of Romanian subsidiary 5,300 -
Interest received 808 397
Amounts invested in subsidiaries - -
Net cash used in investing activities (48,301) (19,864)
Cash flows from financing activities
Proceeds from issue of ordinary shares 2,192 132,402
Repayment of Gemini loan (1,241) (509)
Finance arrangement costs (9) (500)
Net cash generated from financing activities 942 131,393
Decrease/(increase) in cash and cash equivalents in the year (53,676) 103,168
Cash and cash equivalents at start of year 116,391 13,989
Foreign currency translation differences 698 (766)
Cash and cash equivalents at end of year 63,413 116,391
Cash and cash equivalents at 31 December 2010 include €1.7 million classified as held for sale in the Group
Statement of Financial Position. €114.7 million related to continuing operations.
Notes to the accounts
1. Segmental information
The Group has five reportable segments as set out below. The operating results of each of these segments are regularly reviewed by the Group's chief
operating decision makers in order to make decisions about the allocation of resources and to assess their performance.
During the year revenue of €nil million (2010 €2.317 million) was recognised by the discontinued Romanian segment in respect of customers comprising
10% or more of the Group's total revenue for the year.
2011 Poland Romania Bulgaria Slovakia Corporate Total Adjustments* Total
€'000 €'000 €'000 €'000 €'000 €'000 €'000 €'000
Other operating costs (net) (993) (72) (57) (84) (5,262) (6,468) 561 (5,907)
Impairments and provisions (175) (3,816) (138) - (7) (4,136) 289 (3,847)
Segment result (operating
loss) (1,168) (3,888) (195) (84) (5,269) (10,604) 850 (9,754)
Finance income 115 - - - 1,004 1,119 - 1,119
Finance expense - (580) - - (8) (588) 577 (11)
Loss before tax (1,053) (4,468) (195) (84) (4,273) (10,073) 1,427 (8,646)
Taxation - - - - - - - -
Loss for the year (1,053) (4,468) (195) (84) (4,273) (10,073) 1,427 (8,646)
* Adjustments relate to Romanian discontinued operations (see Note 2)
2011 Poland Romania Bulgaria Slovakia Corporate Total
€'000 €'000 €'000 €'000 €'000 €'000
Segment assets 94,963 4,640 451 7,349 61,042 168,445
Segment liabilities (7,338) (868) (16) (88) (1,113) (9,423)
Cost in year to acquire property, plant and equipment and
intangible fixed assets 41,424 3,468 139 2,891 874 48,796
Depreciation, depletion and impairment of property, plant
and equipment and intangible fixed assets (186) (3,491) (144) - (185) (4,006)
2010 Poland Romania Bulgaria Slovakia Corporate Total Adjustments* Total
€'000 €'000 €'000 €'000 €'000 €'000 €'000 €'000
Revenue - 2,317 - - - 2,317 (2,317) -
Cost of sales - (1,303) - - - (1,303) 1,303 -
Other operating costs (net) (584) (412) (10) (63) (3,675) (4,744) 412 (4,332)
Impairments and provisions (304) (9,004) (3,117) (2) (15) (12,442) 7,822 (4,620)
Segment result (operating
loss) (888) (8,402) (3,127) (65) (3,690) (16,172) 7,220 (8,952)
Finance income 8 23 - 1 1,046 1,078 (23) 1,055
Finance expense (1) (2) - - (1,781) (1,784) 2 (1,782)
Loss before tax (881) (8,381) (3,127) (64) (4,425) (16,878) 7,199 (9,679)
Taxation - (3) - - - (3) 3 -
Loss for the year (881) (8,384) (3,127) (64) (4,425) (16,881) 7,202 (9,679)
* Adjustments relate to Romanian discontinued operations (see Note 2)
2010 Poland Romania Bulgaria Slovakia Corporate (Discontinued) Total
€'000 €'000 €'000 €'000 €'000 €'000 €'000
Segment assets 58,958 3,693 2,457 5,236 112,067 9,020 191,431
Segment liabilities (8,340) - (2,533) (1,184) (2,347) (1,954) (16,358)
Cost in year to acquire property, plant and
equipment and intangible fixed assets 23,522 1,347 956 1,508 (200) 1,654 28,787
Depreciation, depletion and impairment of
property, plant and equipment and intangible
fixed assets (17) - (10) - (113) (711) (851)
2. Discontinued operations
In June 2011 the Company completed its sale of Aurelian Oil & Gas (Romania) S.R.L. (AOGR) to Raffles Energy Netherlands B.V., a subsidiary of the
Raphael Group. The sale included the AOGR corporate entity, the Bilca Gas Production Asset and the Suceava and Bacau blocks. The Aurelian Group has
carved out and retained two of the licences held by AOGR being the Cuejdiu licence and exploration portion of the Brodina licence, which have been
transferred to a newly formed Group entity, Aurelian Petroleum S.R.L.
The consideration paid on completion of the deal comprised €5.3 million for the oil and gas assets plus payments for working capital and the repayment of
capital injected into AOGR since the effective date of the deal, being 30 June 2010. The total amount received by Aurelian Oil & Gas PLC was €6.8
million and was treated in the books of the Company as a return of intercompany loan from AOGR.
The corporate assets of AOGR, and the non-current assets relating to the licences to be sold were classified in the Statement of Financial Position for 2010
as held for sale, and are not reflected in the Statement of Financial Position for 2011.
The loss for the current year related to discontinued operations consists of legal and professional costs related to finalising the sale (€561,000), a transfer to
the Income Statement of accumulated exchange differences previously recognised directly in equity (€577,000) and adjustments to the consideration
The following are the totals for the major classes of assets and liabilities relating to these operations :
Oil & Gas costs pending determination - 2,275
Other intangible assets - 29
Property, plant and equipment - 4,090
Inventory - 4
Trade and other receivables - 960
Cash and cash equivalents - 1,662
Assets in disposal groups classified as held for sale - 9,020
Trade and other payables - (1,943)
Loans and borrowings - (11)
Liabilities directly associated with assets in disposal groups classified as
held for sale - (1,954)
The loss on discontinued operations on the Statement of Comprehensive Income can be analysed as follows:
Gas sales - 2,317
Costs of sale - (1,303)
Other net operating expenses (561) (398)
Loss recognised on measurement of assets to fair value less costs to sell (289) (7,815)
Recycling of exchange losses previously recognised in equity (577) -
Profit before tax (1,427) (7,199)
Tax payable - (3)
Total loss recognised on discontinued operations (1,427) (7,202)
The Group Statement of Cash Flows contains the following elements
related to Discontinued operations:
Net cash flows attributable to operating activities (657) 2,065
Net cash flows attributable to investing activities 5,300 (1,632)
3. Loss per share
Loss for the period related to continuing operations (8,646) (9,679)
Loss for the period related to discontinued operations (1,427) (7,202)
Basic weighted average number of shares 490,780,949 341,658,297
Loss per 5p share in Euro Cents related to continuing operations (1.76)c (2.83)c
Loss per 5p share in Euro Cents related to discontinued operations (0.29)c (2.11)c
Exercise of the share options and warrants would lead to dilution of future earnings per share.
The diluted loss per share has been calculated in accordance with the provisions of IAS 33 and is the same as the basic loss per share for the period.
For continuing operations the effect of all potential ordinary share issues arising from the exercise of options and part ownership interests going forward is
considered to be anti-dilutive. 7,915,910 (2010: 10,143,365) potential ordinary shares have been excluded from the above calculation for the continuing
operations as they are anti-dilutive.
4. Cash flow from operating activities
€ 000 € 000
Loss after tax (10,073) (16,881)
Finance income (1,119) (1,078)
Finance expense 11 1,784
Other operating income (1) (66)
Tax charge for the year - 3
Share based payments 422 170
Exploration costs impaired 3,847 4,627
Provision on measurement of assets held for sale to fair value less costs to sell 289 7,815
Depreciation, depletion and amortisation 216 851
Exchange differences (412) 258
Increase in inventory (1,164) -
(Increase)/decrease in trade and other receivables 3,402 (7,290)
(Decrease)/increase in trade and other payables (1,688) 1,541
Cash used in operations (6,270) (8,266)
5. Publication of non-statutory accounts
While the financial information included in this preliminary announcement has been prepared in accordance with the recognition and measurement criteria
of International Financial Reporting Standards (IFRSs), this announcement does not itself contain sufficient information to comply with IFRSs.
The financial information set out above does not constitute the Company's statutory accounts for 2010 or 2011. Statutory accounts for the year 31
December 2011 and 31 December 2010 have been reported on by the Independent Auditors. The Independent Auditors' Report on the Annual Report and
Financial Statements for both years was unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under
498(2) or 498(3) of the Companies Act 2006.
Statutory accounts for the year ended 31 December 2010 have been filed with the Registrar of Companies. The statutory accounts for the year ended 31
December 2011, prepared under IFRS, will be delivered to the Registrar in due course.
6. Annual Report
The Company’s Annual Report will be posted to shareholders in early May, following which it will be available on the Company’s website at