29th September 2006
Unaudited Interim Results for the period from incorporation to 30th June 2006
Irvine Energy plc, the investing company established for the purpose of making investments in energy related projects, announces its unaudited interim results for the period from incorporation on 6th September 2005 to 30th June 2006.
Highlights
- Loss before tax on continuing operations for the period is £32,168
- Loss per share as at 30th June 2006 of 0.02p. Shares on issue as at 30 June 2006 were 200,000,000
- Proposed acquisition of 75% working interest in US shale gas project announced 3 July 2006
- Capital raising during August of £4,247,000 at 3.5p per share
Enquiries
For further information please contact:
Irvine Energy plc
Michael Frayne, Chairman: +44 (0) 207 016 9579
Nabarro Wells & Co Limited
Hugh Oram, Director: +44 (0) 207 710 7400
St Brides Media & Finance
Hugo de Salis: +44 (0) 207 242 4477
Chairman's Statement
The Board is pleased to report the interim results for Irvine Energy plc ("the Company") for the period from incorporation on 6 September 2005 to 30 June 2006.
Following the Company's listing on AIM in December 2005, the Company evaluated a number of energy related projects, before announcing on 3 July 2006 the proposed acquisition of the USA shale gas project ("the Project").
The Project comprises the initial acquisition of a 75% working interest in approximately 30,000 acres of oil and gas leases on the prospective Chattanooga Shale in Kansas, USA. The remaining 25% working interest is owned by Kanco Energy. Inc. and Metro Energy Group. Inc. (together "the Metro Group"), an experienced shale gas developer in the USA. The Metro Group will be the lead operator to the Project and will manage the lease acquisition program, and three dimensional seismic studies and drilling programs to establish the economic parameters of the licence lease areas within the Chattanooga Shale gas formations.
The Project encompasses an Area of Mutual Interest ("AMI") with the Metro Group of around seven million acres, which has a history of conventional oil and gas production and significant infrastructure in place.
As the first group to actively seek shale gas acreage in this region, the Company with Metro, aims to acquire additional leases within the AMI and increase its land position up to 200,000 acres.
Gas shale exploitation is one of the fastest growing energy sectors in the USA. Shale gas, while generally having lower gas flow rates than conventional reservoirs, tends to produce over a longer period of time. This, combined with technological advancements and a strong energy price environment, has fuelled the growth of this multi-billion dollar industry in the USA.
The Board believes the Project is an exciting opportunity to partner with an experienced operator in a large new USA shale gas play in an established oil and gas region, with the potential to create significant value for shareholders.
The acquisition of the Project represents a fundamental change in the business of the Company and accordingly is a reverse takeover under the AIM Rules and subject to shareholder approval. Consequently, Irvine's shares have been suspended from trading until the lodgement of a Re-admission document is posted to shareholders, which is expected to be in October 2006.
Following the announcement of the acquisition of the Project, the Company received subscriptions for 121,356,969 ordinary shares at 3.5 pence per share, to raise £4,247,000 before costs. In August 2006 the Company allotted and issued 99,928,398 of the ordinary shares to be issued pursuant to this placing, with the remainder planned to be allotted on or before 30 September 2006. The funds from this placement will be used to complete the acquisition of the Project and to provide working capital to meet the Company's commitments in respect to the Project.
The loss of only £32,168 for the period ended 30 June 2006 reflects a cost effective investment review process for the period.
The Board looks forward to completing the acquisition of the Project and partnering with Metro in evaluating the exciting development potential of the Project.
Michael Frayne
Chairman
29 September 2006
Independent Review Report to
Irvine Energy Plc
Introduction
We have been instructed by the Company to review the financial information set out on pages 4 to 6 and we have read the other information contained in the interim report and considered whether it contains any apparent misstatements or material inconsistencies with the financial information.
This report, including the conclusion, has been prepared for and only for the Company for the purpose of their interim report and for no other purpose. We do not, therefore, in producing this report, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.
Directors' responsibilities
The interim report, including the financial information contained therein, is the responsibility of, and has been approved by the Directors.
Review work performed
We conducted our review in accordance with guidance contained in Bulletin 1999/4 issued by the Auditing Practices Board as if that Bulletin applied. A review consists principally of making enquiries of the Directors and applying analytical procedures to the financial information and underlying financial data and based thereon, assessing whether the accounting policies and presentation have been consistently applied unless otherwise disclosed. A review excludes audit procedures such as tests of controls and verification of assets, liabilities and transactions. It is substantially less in scope than an audit performed in accordance with Auditing Standards and therefore provides a lower level of assurance than an audit. Accordingly we do not express an audit opinion on the financial information.
Review conclusion
On the basis of our review we are not aware of any material modifications that should be made to the financial information as presented for the six months ended 30th June 2006.
CHAPMAN DAVIS LLP
Chartered Accountants
2 Chapel Court
London SE1 1HH
Profit and Loss Account (Unaudited)
From the date of incorporation 6th September 2005 to 30th June 2006
Balance Sheet (Unaudited)
At 30th June 2006
Cash Flow Statement (Unaudited)
From the date of incorporation 6th September 2005 to 30th June 2006
Notes to the Interim Report
From the date of incorporation 6th September 2005 to 30th June 2006
1. Presentation of Interim Results
This interim report was approved by the Directors on 28 September 2006. The interim results have not been audited, but were the subject of an independent review carried out by the Company's auditors, Chapman Davis LLP. Their review confirmed that the figures were prepared using applicable accounting policies and practices consistent with those to be adopted in the annual report. The financial information contained in this interim report does not constitute statutory accounts as defined by Section 240 of the Companies Act 1985. A copy of this interim report is available from the Company's registered office.
2. Loss per Share
The total number of shares in issue at 30th June 2006 amounted to 200,000,000. The total amount of options held over the shares at 30th June 2006 were 3,000,000. These options are exercisable at 3p per share for a period of 5 years from AIM admission. No diluted loss per share is presented as the effect of exercise of outstanding options is to decrease the loss per share.
3. Reconciliation of net cash flow to movement in net funds
4. Reconciliation of Movement in Shareholders' Funds
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