June 2015 Half Year Report and Financial Statements
Brisbane, Aug 27, 2015 AEST (ABN Newswire) - The principal activities of Pryme Energy Limited (
ASX:PYM) (POGLY:OTCMKTS) during the period under review were evaluating, exploring and developing oil and gas prospects and producing oil and gas in the United States of America. There have been no changes in the nature of these activities during the Period. In the first half of 2015, $3,967,506 was invested in exploration, evaluation and development activities (2014: $1,118,181). This investment was principally in developing the Capitola Oil project including the drilling of the first 4 wells in the project.
Production
For the half year ended 30 June 2015, cumulative net production for the Company comprised 17,674 barrels of oil and 13,464 Mcf of natural gas from the Capitola Oil Project, LaSalle Parish and Four Rivers projects (2014: 6,752 barrels of oil and 18,461 Mcf of natural gas).
The increase in oil production for the 2015 half year compared to the previous half year was achieved despite the sale of the Turner Bayou project in the 2014 financial year and reflects the commencement of production from the company's Capitola Oil project in January 2015. The reduction in natural gas production compared to the previous corresponding period reflects the sale of the Raven project in the 2014 financial year and the commencement of natural gas production from the Capitola Oil project in the first half of 2015.
Financial Results
Revenue of the Consolidated Entity from production of oil and gas for the half year ended 30 June 2015 was $1,179,592 (2014: $848,066). The increase reflects a combination of the commencement of production in the Capitola Oil Project, natural decline in the LaSalle and Four Rivers projects, and the sale of the Raven and Turner Bayou projects. The increase in revenue has been achieved despite the average oil price received for the 6 months to June 2015 falling from US$102 per Bbl in 2014 to US$50.17 per Bbl. Total revenue from oil sales is attributable to the following producing assets: Capitola 81%, LaSalle 13%, Four Rivers 6%. All gas revenue is attributable to the Capitola Oil project. The average gas price received for the 6 months to June 2015 was US$2.15 per Mcf (2014: US$4.52 per Mcf).
For the half year ended 30 June 2015, the Company has recorded a loss from continuing operations of $1,931,730 (2014: $567,541). This includes non-cash depletion, depreciation and impairment totalling $1,600,079. Total Comprehensive Income for the Company for the period was a loss of $993,795 (2014: $1,280,220) including an impairment loss of $714,525 in relation to the Four Rivers project following a review of the economic recoverability of behind pipe reserves and taking in to account current low commodity prices. Total comprehensive loss includes a gain of 937,935 (2014: loss of $252,669) arising on translation of foreign operations.
For the half year ended 30 June 2015, the Company has recorded negative cash flows from operations of $610,069 (2014: negative $212,963).
The functional currency for the US operations of the Group is US Dollars. The presentation currency for the Group's accounts is Australian Dollars. All figures quoted in this report are Australian Dollars unless otherwise specified.
Exploration Activities
Details of Pryme's exploration activities are specified in the "Projects" section of the half year report.
For the full report, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-PYM-875503.pdf
About Indago Energy Ltd
Indago Energy Ltd (ASX:INK) (OTCMKTS:POGLY) is an Australian listed company engaged in oil and gas exploration, development and production. Indago's project portfolio includes liquid rich producing assets together with substantial oil development and exploration acreage in the United States.
The Company's Exploration and Production focus is on high growth oil and gas projects offering scalability of production, cash flows and reserves. Indago currently has several producing projects together with a significant acreage position. The Company's immediate focus is the development of its Capitola Oil Project located in an active region of the Cline Shale resource play along the Eastern Shelf of the Permian Basin, Texas. The project's core development and exploitation opportunities are shallower multiple "stacked" sandstones and limestones to depths of 7,000 feet which are effectively produced from vertically drilled wells. Indago's value driven model is executed through exploiting shallower, well defined intervals with advanced completion and stimulation technology within known produced oil fields together with exposure to the emerging Cline Shale resource play.
Indago's shares are publicly traded on the Australian Securities Exchange (ASX ticker: INK) and also as American Depositary Receipts on the OTCQX (ADR ticker: POGLY).
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