Interim report 1 January – 30 June, 2017 FIRST HALF-YEAR Revenue from oil & gas production incl. realized derivatives of $3,721’ (1,087’). Effect from unrealized derivatives $18’ (0). Gross result from production incl. realized hedges $1,241’ (-349’) with a margin of 33% (-32%). EBITDA $1,434’ (-2,184’). EBITDA for US operations adjusted for unrealized derivatives amounted to $2,397’ (-792). Net result of -$3,744’ (-6,340’). Earnings per share -$0.03 (-0.18). SIGNIFICANT EVENTS DURING THE HALF-YEAR Extraordinary shareholders meeting was held on January 18, 2017 and it was decided to issue 54,890,695 shares by set-off, to adopt new articles of association with a higher number of shares and to issue a rights issue of 104,174,746 shares. A prospectus for capital acquisition was published on February 14, 2017. Restarted several shut wells to regain production. Resuming of drilling program in Orangefield, Texas with a successful result. The Rights Issues described above were fully subscribed and including the set-off issue the Company got an addition of $14,747’ in equity prior to issuance cost during the spring of 2017. The subsidiary Dome AB Inc. signed an agreement in early June to acquire nine producing oil wells with development acreage. The purchase price of $2,000’ plus a further $2,000’ in development capital have been funded through bridge loans. The Company intends to add this debt to the existing bank facility later this year. Ordinary Shareholders meeting was held on June 20, 2017 and Mats Gabrielsson was elected new board member. Dome Energy has signed a contract to acquire 100% of the shares in the US company Ginger Oil Company. The negotiations are still ongoing and the acquisition is not closed on the day of this report. SUBSEQUENT EVENTS AFTER CLOSING OF THE PERIOD Announcement of the commencement of a four well drilling program. 1
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Interim report 1 January – 30 June, 2017 · Interim report 1 January – 30 June, 2017 FIRST HALF-YEAR Revenue from oil & gas production incl. realized derivatives of $3,721’
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SIGNIFICANTEVENTSDURINGTHEHALF-YEAR Extraordinary shareholders meeting was held on January 18, 2017 and it was decided to issue54,890,695sharesbyset-off,toadoptnewarticlesofassociationwithahighernumberofsharesandtoissuearightsissueof104,174,746shares.
Dome Energy has signed a contract to acquire 100% of the shares in the US company Ginger OilCompany.Thenegotiationsarestillongoingandtheacquisitionisnotclosedonthedayofthisreport.
EBITDAGrossresult,representingnetrevenuefromoilandgassalesincludingrealizedhedgesafterproductioncosts,amountedto$1,241’(-349’)withamarginof33%(-32%)forthefirsthalfyear.EBITDAamountedto$1,434’(-2,184) for the first half year. EBITDA for our US operations excluding changes in value of the unrealizedderivativesamountedto$2,397’(-792).
FinancialpositionandcashflowAs per June 30, 2017 cash and cash equivalents amounted to $3,346’. Outstanding interest bearing debtamountedto$35,107’afterrepaymentoftheoldbridgeloanfromMiddelborgInvestASandtakingupnewshortbridgeloansfortheacquisitionsofnineproducingoilwellsandtodevelopadditionalacreage.Thenewbridgeloansamountsto$4,723’andtheintentionistoaddamajorityofthisdebttotheexistingbankfacilitylaterthisyear.
AccountingprinciplesTheinterimreportofDomeEnergyGroup(DomeEnergyAB,DomeEnergyInc,DomeABInc)hasbeenpreparedinaccordancewiththeAnnualAccountsActand IAS34.The interimreportoftheParentcompanyhasbeenprepared in accordance with the Annual Accounts Act, Chapter 9 - Interim reports. The same accountingprincipleswereusedasdescribedintheAnnualreport2016.
Note1 RisksanduncertaintiesTheGroup’sexposuretorisksisdescribedintheAnnualReport2016,Note3.TheGroup’sactivitiesareexposedto different financial risks. The financial risks that themanagement observes are: 1)Market risk (includingcurrency risk,price riskandcash flowand fairvalue risk in interest rates),2)Credit riskand3)Liquidityandfinancialrisk.TheGroupsoverallriskmanagementpolicyfocusontheunpredictabilityonthefinancialmarketsandstrivetominimizethepotentialnegativeeffectsonresultandliquidityasaresultoffinancialrisks.ThemainfinancialrisksthathavebeenidentifiedwithintheGroupiscurrencyrisk,priceriskandliquidityrisk.Thefinancialinvestmentsareexposedtopriceriskandliquidityriskinthecaseadditionalinvestmentsareneededthatcannotbefinanced.
FinancialCalendarDomeEnergyABhasdecidedtochangethereportingschedulesduring2017frompublishingfinancialreportseveryquartertoevery6thmonth.Thereasonbehindthisdecisionistosavecost.InterimReportJul-Dec2017 February28,2018Annualreportfor2017 May31,2018AnnualGeneralMeeting June30,2018Allreportswillbeavailableonthecompanywebsiteorbycontactwiththecompanyoffices.The Board ofDirectors and the CEOhereby certify that the report gives a fair and true presentation of theCompanyandtheGroup’soperation,positionandresultanddescribestheprincipalrisksanduncertaintiesthattheCompanyandthecompaniesintheGroupface.
Stockholm,August31,2017
PålMørch HåkanGustafsson MatsGabrielsson
PetterHagland
CEO&BoardMember ChairmanoftheBoard BoardMember
BoardMemberThe information inthisreport issuchthatDomeEnergyAB is requiredtodisclosepursuanttotheSecuritiesMarketActandFinancialInstrumentTradingAct.SubmittedforpublicationonAugust31,2017.TheinterimreporthasnotbeensubjecttoreviewbytheauditorsoftheCompany.
AboutDomeEnergyAB(publ)DomeEnergyAB.isanindependentOil&GasCompanypubliclytradedontheNasdaqFirstNorthexchangeinSweden (Ticker:DOME).Mangold FondkommissionAB,phone: +46850301550, is theCompany’sCertifiedAdviser. Headquartered in Houston, Texas, the Company’s focus is on the development and production ofexistingonshoreoilandgasreservesintheUnitedStates.Formoreinformationvisitwww.domeenergy.com.