18 sep 25   petrel resources plc - unaudited interim statement petrel resources plc | pet | 0.9 0 0.0% | mkt cap: 1.87m    rns number : 7615z petrel resources plc 18 september 2025                                                                                                                                                                                                                                                                                              18 september 2025    petrel resources plc ("petrel" or "the company")   unaudited interim statement for the six months ended 30 june 2025   petrel resources plc (aim: pet) today announces unaudited financial results for the six months ended 30th june 2025.   chairman's statement   petrel is a junior hydrocarbon explorer with interests in iraq and ghana.   recent months have seen a steady recovery of interest in our sectors: there are now many oil & gas projects available, with promising geology and manageable logistics.  there has also been rising interest in energy minerals, from coal to helium, lithium and rare earths.  after a long depression there is rising acceptance that under-exploration since the great financial crisis is causing shortages.  so far, the effect has been most dramatic in commodity metals, like gold and copper, but similar trends are emerging elsewhere.   during 2024/25 there has been a quiet swing back to reliable fuels.  investment into renewables continues - boosting demand for minerals, but it is now quietly backed up by reliable fuels.  major energy companies are re-focusing on their cash-generative business, and increasingly stress that this relies on continuation of heavy state subsidies, enhanced prices for consumers and other supports.  as a result, fossil fuels continue to grow by circa 1% yearly, and constitute 86% of primary energy supply (ei methodology calculation, 2025).   it is still cheaper to find oil & gas in financial markets than by exploration - though mega-mergers are sensitive. the  european majors who most championed the green transition, especially bp and shell, had been most heavily penalised by financial markets and have now corrected course most vigorously.   majors are still focused on their core assets in priority basins.  they are mostly not entering new basins and are still not heavy participants in farm-in markets.  yet this will change as the cycle progresses.   both these trends are positive for petrel: our core business is acquiring high-potential acreage in the middle east or other neglected area, but to monetise these assets we need either to fund at a premium or farm-out to majors at a premium.   yet as a long-standing player in industrial minerals, and participants in the eu commission's critical resource minerals initiative, we can see the west's desperate need to secure independent access both to key deposits as well as processing capacity to deliver high-quality raw materials for the high-tech, defence and green transition sectors.   fiscal terms remain a challenge, as do demands for up-front cash for new acreage.  but recent discussions suggest a new realism in how governments are engaging with juniors.   accordingly the key ingredients may be finally falling into place for greater stock market and farm-out support of juniors embarking on new frontier projects.   petrel has been investigating acquisition and organic growth opportunities in diverse energy-related sectors and countries.  these must be backed by finance and proper legal title.  initial review work gives our experts confidence in the reserve and resource numbers. potential offtake agreements - both for the eu, as well as china and india are economic at current prices. these are petrel's strengths.    based on initial discussions, we do not see offtake, financing, and permitting as insurmountable obstacles in such critical resources.   financing the directors, and their supporters, have funded working capital needs, and are prepared to participate in any necessary future fundings.   the board expects to add another one or more non-executive director with the next major deal.     david horgan chairman 17 september 2025                             ends   for further information please visit http://www.petrelresources.com/ or contact:   petrel resources  david horgan, chairman john teeling, director     +353 (0) 1 833 2833 strand hanson limited - nominated & financial adviser richard johnson james bellman   +44 (0) 20 7409 3494   novum securities limited - broker  colin rowbury   +44 (0) 20 399 9400     blytheray - pr megan ray   +44 (0) 207 138 3204 teneo luke hogg molly mooney   +353 (0) 1 661 4055                         petrel resources plc financial information (unaudited)     condensed consolidated statement of comprehensive income    six months ended year ended   30 june 25 30 june 24 31 dec 24   unaudited unaudited audited   €'000 €'000 €'000     administrative expenses (191) (155) (283) impairment of exploration and evaluation assets (93) (74) (187) operating loss (284) (229) (470)     loss due to fair value volatility of warrants (73) - - loss before taxation (357) (229) (470) income tax expense                     -                       -                       -   loss for the period (357) (229) (470)     other comprehensive income                       -                       -                       - total comprehensive profit for the period (357) (229) (470)     loss per share - basic and diluted (0.18c) (0.12c) (0.26c)         condensed statement of financial position 30 june 25 30 june 24 31 dec 24   unaudited unaudited audited assets: €'000 €'000 €'000 non-current assets    intangible assets 467 672 560  467 672 560 current assets    trade and other receivables 62 22 9 cash and cash equivalents 42 13 5   104 35 14 total assets 571 707 574     current liabilities    trade and other payables (1,147) (1,057) (1,165) warrants (73) - -  (1,220) (1,057) (1,165)     net current liabilities (1,116) (1,022) (1,151) net assets (649) (350) (591)     equity    share capital 2,596 2,298 2,298 capital conversion reserve fund 8 8 8 capital redemption reserve 209 209 209 share premium 21,865 21,864 21,864 share based payment reserve 27 27 27 retained deficit (25,354) (24,756) (24,997) total equity (649) (350) (591)   condensed consolidated statement of changes in equity               capital capital share based    share share redemption conversion payment retained total   capital premium reserves reserves reserves losses equity   €'000 €'000 €'000 €'000 €'000 €'000 €'000         as at 1 january 2024 2,236 21,820 209 8 27 (24,527) (227) issue of shares 62 44     106 total comprehensive income                         -   (229) (229) as at 30 june 2024 2,298 21,864 209 8 27 (24,756) (350)         issue of shares - -     - total comprehensive income                         -   (241) (241) as at 31 december 2024 2,298 21,864 209 8 27 (24,997) (591)         issue of shares 298 1     299 total comprehensive income                        -   (357) (357) as at 30 june 2025 2,596 21,865 209 8 27 (25,354) (649)               condensed consolidated cash flow six months ended year ended   30 june 25 30 june 24 31 dec 24   unaudited unaudited audited   €'000 €'000 €'000 cash flow from operating activities    loss for the period (357) (229) (470) impairment 93 74 187 fair value movements of warrants 73 - - foreign exchange - 1 1  (191) (154) (282)     (decrease)/increase in trade and other payables (18) 38 145 (increase)/decrease in trade and other receivables (53) (12) 1 cash used in operations (71) 26 146     net cash used in operating activities (262) (128) (136)     financing activities    shares issued 299 106 106 net cash used in financing activities 299 106 106     net increase/(decrease) in cash and cash equivalents 37 (22) (30)     cash and cash equivalents at beginning of the period 5 36 36     effect of exchange rate changes on cash held in foreign currencies - (1) (1) cash and cash equivalent at the end of the period 42 13 5         notes:     1.    information   the financial information for the six months ended 30 june 2025 and the comparative amounts for the six months ended 30 june 2024 are unaudited. the interim financial statements have been prepared in accordance with ias 34 interim financial reporting as adopted by the european union. the interim financial statements have been prepared applying the accounting policies and methods of computation used in the preparation of the published consolidated financial statements for the year ended 31 december 2024. the interim financial statements do not include all of the information required for full annual financial statements and should be read in conjunction with the audited consolidated financial statements of the group for the year ended 31 december 2024, which are available on the company's website www.petrelresources.com    the interim financial statements have not been audited or reviewed by the auditors of the group pursuant to the auditing practices board guidance on review of interim financial information.     2.    no dividend is proposed in respect of the period.     3.    going concern   the group incurred a loss for the financial period of €356,791 (year ended 31 december 2024: loss of €469,878) and had net current liabilities of €1,115,358 (31 december 2024: €1,150,434) at the balance sheet date. these conditions as well as those noted below represent a material uncertainty that may cast significant doubt on the group and company's ability to continue as a going concern.   included in current liabilities is an amount of €1,082,531 (31 december 2024: €1,037,531) owed to key management personnel in respect of remuneration due at the balance sheet date. key management have confirmed that they will not seek settlement of these amounts in cash for a period of at least one year after the date of approval of the financial statements or until the group has generated sufficient funds from its operations after paying its third party creditors.   the group and company had a cash balance of €42,497 (31 december 2024: €4,838) at the balance sheet date. the directors have prepared cashflow projections for a period of at least twelve months from the date of approval of these financial statements which indicate that additional finance will be required to fund working capital requirements and develop existing projects. as the group is not revenue or cash generating it relies on raising capital from the public market.  on 6 march 2025 the company raised €298,586 (£250,000) via a placing of shares.   these conditions as well as those noted below represent a material uncertainty that may cast significant doubt on the group and company's ability to continue as a going concern.   as in previous years the directors have given careful consideration to the appropriateness of the going concern basis in the preparation of the financial statements and believe the going concern basis is appropriate for these financial statements. the financial statements do not include the adjustments that would result if the group and company were unable to continue as a going concern.     4.    loss per share   basic loss per share is computed by dividing the loss after taxation for the year attributable to ordinary shareholders by the weighted average number of ordinary shares in issue and ranking for dividend during the year. diluted earnings per share is computed by dividing the loss after taxation for the year by the weighted average number of ordinary shares in issue, adjusted for the effect of all dilutive potential ordinary shares that were outstanding during the year.         the following table sets out the computation for basic and diluted earnings per share (eps):   30 june 25 30 june 24 31 dec 24  € € € loss per share - basic and diluted (0.18c) (0.12c) (0.26c)     basic and diluted loss per share the earnings and weighted average number of ordinary shares used in the calculation of basic loss per share are as follows: numerator €'000 €'000 €'000 loss for the period (357) (229) (470)     denominator number number number weighted average number of shares 199,005,524 183,693,718 183,803,307       basic and diluted loss per share are the same as the effect of the outstanding share options is anti-dilutive.     5.    intangible assets   30 june 25 30 june 24 31 dec 24 exploration and evaluation assets: €'000 €'000 €'000 opening balance 560 746 746 additions - - - impairment (93) (74) (187) closing balance 467 672 560       exploration and evaluation assets relate to expenditure incurred in exploration in ghana. the directors are aware that by its nature there is an inherent uncertainty in exploration and evaluation assets and therefore inherent uncertainty in relation to the carrying value of capitalized exploration and evaluation assets.   during 2018 the group resolved the outstanding issues with the ghana national petroleum company (gnpc) regarding a contract for the development of the tano 2a block. the group has signed a petroleum agreement in relation to the block and this agreement awaits ratification by the ghanian government.   as ratification has not yet been achieved in the current year the directors, as a matter of prudence, opted to write down 20% of the carrying value of the tano 2a block historic expenditure annually.  accordingly, an impairment charge of €93,316 was recorded in the current period to 30 june 2025. (fy 2024: €186,633).                  relating to the remaining exploration and evaluation assets at the financial year end, the directors believe there were no facts or circumstances indicating that the carrying value of the intangible assets may exceed their recoverable amount and thus no impairment review was deemed necessary by the directors. the realisation of these intangible assets is dependent on the successful discovery and development of economic reserves and is subject to a number of significant potential risks, as set out below:                · licence obligations; · exchange rate risks; · uncertainty over development and operational costs; · political and legal risks, including arrangements with governments for licences, profit sharing and taxation; · foreign investment risks including increases in taxes, royalties and renegotiation of contracts; · financial risk management; · going concern and · ability to raise finance.   6.    share capital   2025 2024  €'000 €'000 authorised:    800,000,000 ordinary shares of €0.0125 10,000 10,000                               ordinary shares -nominal value of €0.0125 allotted, called-up and fully paid         number share capital share premium               €'000 €'000 at 1 january 2024 178,871,800 2,236 21,820 share issue 5,000,000 62 44 at 30 june 2024 183,871,800 2,298 21,864     share issue - - - at 31 december 2024 183,871,800 2,298 21,864     share issue 23,809,523 298 1 at 30 june 2025 207,681,323 2,596 21,865   movements in issued share capital   on 6 march 2025 the company announced that it had raised €298,586 (£250,000) through a placing of 23,809,523 new ordinary shares at a placing price of 1.05p per placing share.  each placing share has one warrant attached with the right to subscribe for one new ordinary share at 2p per new ordinary share for a period of two years.   7.    warrants   30 june 2025 30 june 2024 31 december 2024  warrants number weighted average exercise price in pence warrants number weighted average exercise price in pence warrants number weighted average exercise price in pence outstanding at beginning of year - - 19,833,333 1.8 19,833,333 1.8 issued 23,809,523 2.0  -   exercised - - (5,000,000) 1.8 (5,000,000) 1.8 expired - -   (14,833,333) 1.8 outstanding at end of year 23,809,523 2.0 14,833,333 1.8 - -   on 6 march 2025 a total of 23,809,523 warrants with an exercise price of 2p per warrant were granted as part of the placing. the fair value of the warrants of €73,443 was expensed to the consolidated statement of comprehensive income.  the fair value was calculated using the black-scholes valuation model.   the inputs into the black-scholes valuation model were as follows:   grant 6 march 2025     weighted average share price at date of grant (in pence) 1.05p weighted average exercise price (in pence) 2.0p expected volatility 83.45% expected life 1.75 years risk free rate 2% expected dividends none   expected volatility was determined by management based on their cumulative experience of the movement in share prices.   the terms of the warrants granted do not contain any market conditions within the meaning of ifrs 2.     8.    post balance sheet events   there are no material post balance sheets events affecting the group.     9.    the interim report for the six months to 30th june 2025 was approved by the directors on 17 september 2025.     10.  the interim report will be available on the company's website at www.petrelresources.com.   this information is provided by rns, the news service of the london stock exchange. rns is approved by the financial conduct authority to act as a primary information provider in the united kingdom. terms and conditions relating to the use and distribution of this information may apply. for further information, please contact rns@lseg.com or visit www.rns.com.  rns may use your ip address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. for further information about how rns and the london stock exchange use the personal data you provide us, please see our privacy policy.   end   ir dzgmlknngkzm return to news summary

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