Financial highlights
- Balance sheet restructuring transaction ("Restructuring") announced on 14 July 2016. Subject to completion, the new capital structure will have significantly lower debt, reducing from over $600 million (including unpaid interest due on 18 April 2016) to $100 million post Restructuring, through the conversion of debt to equity
- Improved liquidity and cash position expected from capital raise of $25 million through the Open Offer, removal of the debt service reserve account freeing up $32.5 million of cash for general liquidity (subject to completion of the Restructuring), and regular payments from the MNR
- Restructuring is on track and expected to complete on or around 14 October 2016
- resolution to increase authorised share capital approved by the shareholders at the Special General Meeting on 5 August 2016
- 90% and 84% of the Guaranteed Noteholders and Convertible Bondholders, respectively, have agreed to the Restructuring under the Restructuring Agreement
- prospectus in relation to Open Offer published on 31 August 2016
- Open Offer closed on 15 September 2016 raising the full amount of $25 million (subject to the completion of the Restructuring)
- Positive cash flow of $46.7 million generated from operations during the period. Cash and cash equivalents at 20 September 2016 of $68 million
- Gross payments of $97.5 million received in 2016 to date following the Kurdistan Regional Government ("KRG") committing to a regular payment cycle to international oil companies
- Revenues of $102.1 million recognised in 1H 2016 (H1 2015: $30.1 million; FY2015: $86.2 million). This includes $51.2 million recognised in relation to a part of the previously unrecognised revenue arrears and $50.9 million for H1 2016 liftings.
- Management of cost base with cash spend on capital items in H1 2016 of $15.7 million, compared to $52.2 million in FY2015. Gross operating costs per barrel of $4/bbl (FY2015: $5/bbl).
- Gross profit of $25.8 million for the period due to recognition of revenue relating to prior years' liftings
- Impairment of $40.0 million following the relinquishment of the Sheikh Adi and Ber Bahr blocks
- Loss after tax for H1 2016 of $59.9 million (H12015: $77.7 million; FY2015: $135.0 million)
- The Group's share of unrecognised revenue arrears is estimated at $28 million as at 30 June 2016 (net of payables to the MNR and May and June 2016 receivables, subject to audit and reconciliation).
- Subject to the execution of the Second Shaikan PSC Amendment, the Group estimates back-costs associated with the Government Participation Option of $ 61 million net to GKP as at 30 June 2016
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