Earnings Release • Oct 2, 2020
Earnings Release
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30th September 2020 Cyprus Stock Exchange Nicosia
RE: Approval of Interim Financial Results
Following the meeting of the board of directors of C.O. Cyprus Opportunity Energy Public Company Ltd (the "Company") (the "Board") which was held today, September 30th 2020, the Company would like to inform the investing public that the Board has examined and approved the unaudited half year financial statements for the Board nas examined and approved
(the "Interim ES 2020") (the "Interim FS 2020").
The Interim FS 2020 are hereby attached.
Kind Regards
Andreas Leonidou
Chairman of C.O.Cyprus Opportunity Energy Public Company Ltd
UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS For the six months period ended 30 June 2020
PAGE
| Explanatory Statement | |
|---|---|
| Interim condensed consolidated statement of profit or loss and other comprehensive Income |
2 |
| Interim condensed consolidated statement of financial position | 3 |
| Interim condensed consolidated statement of changes in equity | 4 |
| Interim condensed consolidated statement of cash flows | 5 |
| Notes to the interim condensed consolidated financial statements | 6 - 11 |
C.O. Cyprus Opportunity Energy Public Company Limited (the "Company") was incorporated in Cyprus on 10 February 2012 (registration no. HE301167) as a linited liability company'' was incorporated in Cyprus on 10
Companies Law, Cap. 113. On 17 July 2012, the Company under the Companies Law, Cap. 113. On 12301107) as a limited lability company inder the Cyprus Soft the Cyprus Stock Exprus Stock Exprus Stock Exprus Stock Cyprus Stock Cyprus Stock Cyprus Stock Exchange.
These consolidated financial statements comprise the Company and its subsidiaries (together referred to as the "Group").
According to the Company's Admission Document, the primary intention of the Group is to participate in oil and/or gas exploration and upstream activities in the exclusive economic zone ("EEZ") of Cyprus. The Groups in oll and/or
activities refer to the searching for and the reconomic zon activities refer to the searching for and the recovery and production of oil and natural gastream
searching for potential underground or underwater oil and natural gas. Such searching for potential undervater on underwater oil and natural gas. Such activities involve the the the the the the the the drilling and operating the wells of and of and of and gas helds, drilling of exploratory well
During the second half of 2017, the Group through its wholly owned subsidiary Cyprus Opprtunity Energy Inc., has commenced development activities in North Dakota, USA. On 5 April 2020, the Company Inc., has sale and purchase agreement, according to which the Company agreed to sell its entire holding in Cypris
Opportunity Energy Inc to a non-related natur in conci Opportunity Energy Inc to a non-related party in consideration of US\$1,000.
For further details on the background information, please refer to the notes of these interim condensed consolidated
The net profit for the period attributable to the shareholders of the Group amounted to US\$8,155 (2019: net loss of US\$79,694).
On 30 June 2020 the total assets of the Group were US\$16,375 (31 December 2019: US\$421,832), including cash and the net liabilities of the Group were US\$ 158,964 (31 December 2019: US\$17,119),
For any changes in the share capital during the six months ended 30 June 2020, please refer to Note 16 of the financial statements.
By order of the Board of Directors,
Andreas Leonidou Chairman
30 September 2020
| Note | 30/06/2020 US\$ |
30/06/2019 ાંટિક |
|
|---|---|---|---|
| Revenue | 7 | ||
| Cost of sales | 8 | 27,406 | |
| Gross loss | (55,864) (28,458) |
||
| Other operating income Profit on sale of subsidiary |
12 | 618 | |
| Administration expenses | 9 | 16,243 (8,351) |
|
| Operating profit / (loss) | 7,892 | (51,292) (79,132) |
|
| Net finance income/(expense) | 263 | ||
| Loss before tax | (562) | ||
| 8,155 | (79,694) | ||
| Tax | 10 | ||
| Net profit / (loss) for the period | 8,155 | (79,694) | |
| Other comprehensive income | |||
| Total comprehensive income / (loss) for the period | 8,115 | (79,694) | |
| Profit / (loss) per share attributable to equity holders of the | |||
| parent (dollar) | 11 | 0.000064 | (0,00063) |
The notes on pages 6 to 11 form an integral part of these interim condensed consolidated financial statements.
| ASSETS | Note | 30/06/2020 US\$ |
31/12/2019 US\$ |
|---|---|---|---|
| Current assets Trade and other receivables Cash and cash equivalents |
13 14 |
16,375 | 22,255 412 |
| Total assets | 16,375 16,375 |
22,667 22,667 |
|
| EQUITY AND LIABILITIES | |||
| Equity Share capital Share premium Accumulated losses Total equity |
15 | 1,503,826 1,142,535 (2,805,325) (158,964) |
1,503,826 1,142,535 (2,813,480) (167,119) |
| Non-current liabilities Provisions for other liabilities and charges |
15,283 | ||
| Current liabilities Trade and other payables Borrowings |
16 | 175,339 | 15,283 174,475 |
| 175,339 | 28 174,503 |
||
| Total liabilities | 175,339 | 189,786 | |
| Total equity and liabilities | 16,375 | 22,667 |
On 30 September 2020 the Board of Directors of C.O. Cyprus Opportunity Energy Public Company Limited authorised these consolidated financial statements for issue.
Andreas Leonidou Director
Antonakis Antoniou Director
The notes on pages 6 to 11 form an integral part of these interim condensed consolidated financial statements.
For the six months period ended 30 June 2020
| Share capital પાટક |
Share premium US\$ |
Accumulated losses US\$ |
Tota US\$ |
|
|---|---|---|---|---|
| Balance at 1 January 2019 | 1,503,826 1,142,535 (2,345,273) | 301,088 | ||
| Comprehensive income Net loss for the period |
(79,694) | (79,694) | ||
| Balance at 30 June 2019 | 1,503,826 1,142,535 (2,424,967) 221,394 | |||
| Balance at 1 January 2020 | 1,503,826 1,142,535 (2,813,480) (167,119) | |||
| Comprehensive income | ||||
| Net profit for the period | 8,155 | 8,155 | ||
| Balance at 30 June 2020 | 1,503,826 1,142,535 (2,805,325) (158,964) |
The notes on pages 6 to 11 form an integral part of these interim condensed consolidated financial statements.
| CASH FLOWS FROM OPERATING ACTIVITIES | Note | 30/06/2020 US\$ |
30/06/2019 ાટિક |
|---|---|---|---|
| Profit / (loss) before tax Adjustments for: Depreciation of oil and gas properties |
8,155 | (79,694) | |
| Profit on sale of subsidiary Exchange profit |
(16,243) | 9,594 | |
| Unwinding of decommissioning charge Impairment charge |
(263) | (664) 420 19,284 |
|
| Changes in working capital: | (8,351) | (51,060) | |
| Decrease in trade and other receivables Increase in trade and other payables |
7,939 | 7,625 9,985 |
|
| VAT refund | (412) | (33,450) | |
| Cash (used in) / generated from operations | (412) | 41,700 8,250 |
|
| CASH FLOWS FROM INVESTING ACTIVITIES Payment for acquisition of property, plant and equipment |
|||
| Net cash used in investing activities | (61) (61) |
||
| Net (decrease) / increase in cash and cash equivalents Cash and cash equivalents at beginning of the year |
(412) | 8,189 | |
| Cash and cash equivalents at end of the period | 14 | 412 | 17,986 26.175 |
The notes on pages 6 to 11 form an integral part of these interim condensed consolidated financial statements.
For the six months period ended 30 June 2020
C.O. Cyprus Opportunity Energy Public Company'') was established under the Cyprus Companies
Law, Cap. 113, on 10 February 2012. On 17 July 2012 the Company was listed on the Law, Cap. 113, on 10 February Ltd (the Company') was established under the Cyprus Companies
of the Cyprus Stock Exchange Ltd. On 17 July 2012 the Company was listed on the Ey Connell (1978) 1978 - Straily 2012 the Company was listed on the Energing Contribution of the Energing Con
According to the Company's Admission Document, the primary intention of the Group is to participate in oil and/or gas exploration and upstream activities in the exclusive economic to pricipian in oll and/or
refer to the searching for and the exclusive economic zone of Cyprus. The Group's refer to the searching for and the recovery and production of Cyprus. The Group's upstream activities
searching for potential underwater oil and production of oil and natural searching for por und the recovery and production of oli and natural gas. Such activities involve the
searching for potential undervater oil and gas felilling of explor drilling and operating the wells that of underwater of and gas helds, drilling of exploration website
On 11 May 2012, the Company together with Petrica Energy AS (collectively the "Consortium"), submitted applications for two offshore hydrocardon licenses (Blocks 2 and 8) through the "Consortion"), submitted
Licensing Round for offshore exploration ites Goversments C and 8) t Licensing Round for offshore exploration initiated by the Government of Cyprus.
In 2013, the Company was informed by the Ministry of Commerce, Industry and Tourism of the Republic of Cyprus (the "Ministry") that the applications for Blocks 2 and 8 were rejected.
On 20 June 2017 the Supreme Court of Cyprus issued its unanimous judgement by which it dismissed the Consortium's Recourse and Block 8 was awarded to another company. The Comissed the considering their options and possible action in relation to this judgement.
On November 18, 2019 the Company and her partners in Hatrurim License returned the License to the Petroleum Commissioner at the Ministry of National Infrastructures, In Hatunit License to the Petry of the Petry
On January 6, 2020 the Commissioner returned all guarantees related to Hatrurim License.
On 27 July 2017 the Company together with Israel Opportunity Energy Recourses Limited Partnership and Radian Partnership, LP (collectively the "Buyers"), entered into a farmor agreement with independent third parties (the "Sellers"), for the acquisition of rights in the a Tambul arreement with independent third parties (the
6,400 acre) in oil fields in North Dakota, US4 the " Proportially 640 6,400 acre) in oil fields in North Dakota, USA (the " Properties" and "Farmout Agreement").
These rights were held directly by the Company's wholly-owned subsidiary Cyprus Opportunity Energy Inc..
On 5 April 2020, the Company entered into a sale and purchase agreement, according to which the Company agreed to sell its entire holding in Chican in a saile and parchase agreenlent, according to which the Company
to sell its entire holding in Cyprus Opportunity Energy Inc to a non-r
For the six months period ended 30 June 2020
The Interim Condensed Consolidated Financial Statements for the six months period ended 30 June 2020 have not
been audited by the Company's external auditors. been audited by the Company's external auditors.
The interim condensed consolidated financial statements for the six months ended 30 June 2020, with are presented in United States Dollated "Manch" statements" for the six months ended 30 June 2020, which are
presented in United States Dollar (US\$) have been prepared i
The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements and include all the information and disclosures required
statements for the year ended 31 December 2019. statements for the year ended 31 December 2019.
The accounting policies used in the preparation of interim condensed manch statements are consistent
with those used in the annual financial statements for the vear, ended 31 with those used in the annual financial statements for the year ended 31 becements are consistent
amended standards became applicable for the year ended 31 December 2019. A n amended standards became applicable for the year ended 31 December 2019. A number of new of
accounting policies.
The Company has subsidiary undertakings for which section 142(1)(b) of the Cyprus Companies Law Cap. 113 requires consolidated financial tor which school (42(1) of the Cyptus Companies Law Cap. 113
Meeting. The consolidated financial storporate norporat and Meeting. The consolidated financial statements incorporate the company at the Annual General
(including special purpose entities) controlled by the Company of the Company and (including special purpose entires) necessarients of the Company and entities
Financial Statements, Financial Statements.
The Group financial risk management objectives and policies are consistent with those disclosed in the consolidated financial statements for the year ended 31 December 2019.
Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under factors,
judgments made by management in anniving the Creund a socuasonable under the circums judgments made by management in appling the Group's accounting policies and the key sources of esignificant
uncertainty were the same as those that anolied to the soccidition uncertainty were the same as those the oroup's accounting polices and the key sources of estimation
December 2019,
| Revenue from oil sales | 30/06/2020 પારફ |
30/6/2019 ાદક |
|---|---|---|
| Revenue from gas sales | 22,037 | |
| Revenue from natural gas liquid sales | 2,716 | |
| 2,653 | ||
| 27.406 |
For the six months period ended 30 June 2020
| Services received | 30/06/2020 us\$ |
30/6/2019 ાટિક |
|---|---|---|
| Depreciation | 25,265 | |
| Licenses and taxes | 1 | 9,594 |
| Other cost of sales | I | 1,301 |
| 19,704 | ||
| 55.864 |
| Directors' fees (Note 17.1) | 30/06/2020 પાટફ |
30/6/2019 પાર્ટક |
|---|---|---|
| Annual levy | 12,730 | |
| Subscriptions and contributions | 394 | 1,917 |
| Other expenses | 800 | |
| Accounting fees | 420 | 582 |
| 2,878 | ||
| Legal and professional services Consulting fees |
7,537 | 11,883 |
| 20,502 | ||
| 8,351 | 51,292 |
The Company and its wholly owned subsidiary C.O. Cyprus Opportunity Petroleum Limited are subject to corporation tax on taxable profits in Cyprus at the rate of 12.5%.
| 30/06/2020 | 30/6/2019 | |
|---|---|---|
| Profit / (loss) attributable to shareholders (US\$) | 8,155 | (79,694) |
| Weighted average number of ordinary shares in issue during the period | 126,780,762 126,780,762 | |
| Profit / (loss) per share attributable to equity holders of the parent | ||
| (dollar) | 0.000064 | (0.00063) |
For the six months period ended 30 June 2020
The details of the subsidiaries are as follows:
| Name | Country of Incorporation |
Principal activities | 30/6/2020 Holding |
31/12/2019 Holding |
|---|---|---|---|---|
| C.O. Cyprus Opportunity Petroleum Limited | Cyprus | Holding of | 0/0 100 |
0/0 100 |
| Cyprus Opportunity Energy Inc | USA | investments Holding of rights in oil fields on North Dakota |
100 |
On 5 April 2020, the Company entered into a sale and purchase agreement, according to which the Company agreed to sell its entire holding in Cyprus Opportunity Energy Inc. to a nor-relation of Which the Company agreem.
Company regorised a profit on the sale of its subsidiance in the c Company regognised a profit on the sale of its subsidiary in the amount of US\$16,243.
| 30/06/2020 | 31/12/2020 | |
|---|---|---|
| Trade receivables Receivables from related parties (Note 17.3) Refundable VAT |
US\$ | US\$ |
| 7,618 | ||
| 1,068 | 1,068 | |
| 15,307 | 13,569 | |
| 16.375 | 22.255 |
The fair values of trade and other receivables due within one year approximate their carrying amounts as presented above.
For the six months period ended 30 June 2020
Cash balances are analysed as follows
| Cash at bank and in hand | 30/06/2020 us\$ |
31/12/2019 પાટિક |
|---|---|---|
| 412 | ||
| 417 | ||
| Cash at hank represents curront accounts donemication in |
at bank represents current accounts denominated in Euro, United States Dollar and New Israeli Shekel.
| 30/06/2020 | 30/06/2020 | Number of | 31/12/2019 31/12/2019 | |
|---|---|---|---|---|
| Number of listed ordinary |
listed ordinary |
|||
| Authorised | shares | EUR | shares | EUR |
| Ordinary shares of €0.01 each | 211,950,000 2,119,500 211,950,000 | - 2,119.500 | ||
| Issued and fully paid | US\$ | પકર્ | ||
| Balance at 1 January | 126,780,762 1,503,826 126,780,762 1,503,826 | |||
| Balance at 30 June / 31 December | 126,780,762 | 1,503,826 126,780,762 | 1.503,826 |
| 30/06/2020 | 31/12/2019 | |
|---|---|---|
| US\$ | ાટિક | |
| Trade payables | 3,155 | |
| Payables to related parties (Notes 17.4) | 100,317 | 147,498 |
| Accruals | 2,049 | 19,787 |
| Other creditors | 7049763 | 4.035 |
| 175 339 | 174.475 |
The fair values of trade and other payables due within one year approximate their carrying amounts as presented above.
The Company does not have a single controlling party.
The following transactions were carried out with related parties:
The remuneration of Directors and other members of key management was as follows:
| Directors' fees | 30/06/2020 uss |
30/6/2019 પાટિક |
|---|---|---|
| 12,730 | ||
| 730 | ||
For the six months period ended 30 June 2020
| Shareholders | Nature of transactions Consulting fees |
30/06/2020 US\$ |
30/6/2019 ાટક 20,502 |
|---|---|---|---|
| 20,502 | |||
| 17.3 Receivables from related parties | |||
| Name Shareholders |
30/06/2020 US\$ 1,068 |
31/12/2019 પાટફ 1,068 |
|
| 1,068 | 1,068 | ||
| 17.4 Payables to related parties | |||
| Name Shareholders |
30/06/2020 પકડ 100,317 |
31/12/2019 ાટક 147,498 |
|
| 100,317 | 147,498 |
The payables to related parties are non-interest bearing, unsecured and repayable on demand.
The Group had no contingent liabilities as at 30 June 2020.
There were no material events after the reporting period, which have a bearing on the understanding of the consolidated financial statements.
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