Bluebird Energy plc : Half Yearly Report



BLUEBIRD ENERGY PLC

(AIM: BBE)

Interim Results for the Six Months Ended 31 December 2012

Bluebird Energy plc ("Bluebird" or "the Company") is pleased to announce its Interim Results for the Half Year ended 31 December 2012.

CHAIRMAN'S STATEMENT

The rationalisationof Bluebird's US Oil and Gas asset base and operating cost structure is now substantially complete; however the cash proceeds from US asset base to date have been minimal, at $26,000. The board has decided to impair the carrying value of the Solitaire project in Colorado as a consequence of the impeding expiry of those leases: this has resulted in a loss of $1.58m which has been recognised as an exceptional administration expense.

Following this impairment, the balance sheet of Bluebird essentially comprises a 5.1% interest in Wessex Exploration PLC held as an asset available for sale (together with an associated tax liability on the capital gain) and a cash balance of $1.7m at 31st December 2012.
  As at 6 March 2013 these balances were as follows:

37,055,245 Wessex Exporation shares at   4.00p (being the closing price on 5/3/2012)	£1.48m
Cash Balances (primarily held in sterling)	£1.00m

Outlook

While we will continue to review the options for realisation of value from the Wessex holding, the primary focus is now on the implementation of a new investment strategy for the company aimed at growing net asset value (NAV) per share through the realisationof opportunities across a broader range of sectors. It is the board's intention to convene a General Meeting at which permission will be sought from shareholders to change the company's investment strategy; a circular will be published shortly.

Board Changes

In September 2012 Bluebird announced that Andy Yeo and Frederik Dekker had resigned from the board as CEO and non-executive director respectively to focus on their other executive responsibilities.
  At the same time, we were pleased to welcome Gordon Hall to the Board as an independent non-executive director.

We have commenced recruitment of an investment team and anticipate making further hires in the near future.

US Portfolio

In the US, a number of steps were taken during the period to exit the Group's portfolio of interests in Oil and Gas assets and reduce operating costs. The Group relinquished its Denver office on expiry of the lease in November 2012 and completed the sale of its interest in Cimarron Royalties for $26,000. At the Relvoc project in Pennsylanvia, in which Bluebird holds a 50% non-operator interest, all seven wells have been plugged and abandoned. Since the end of the period the Group has exited its interest in the Revloc project, which was carried at nil value and there were no proceeds on exiting the JV.

Despite review work which supported the possibility of a Mississippian oil play within our Solitaire acreage in Colorado and our efforts to market the asset, there hasn't been any interest from potential buyers of this asset.
  While the Board has decided to write down the carrying value of Solitaire to nil given this lack of interest as well imminent expiry of the leases, we are continuing to explore options to exit this project.

Financial Results

The losses during the interim period primarily reflect the write down of the Group's Solitaire interest in Colorado, which resulted in an exceptional administrative expense of $1.58m. Comprehensive income was negatively impacted by the decline in the carrying value of the company's interest in Wessex Exploration from 6.77p to 4.43p which resulted in a loss of $1.3m.

Administrative expenses of $956k (H1 2011: $1,787k) for the six month comprised $518k in relation to the accelerated recognition of share based remuneration and $74k relating to the loss on disposal of the Cimarron Royalties interest. The remaining $364k in administration costs relate to ongoing operating costs incurred during the six month period.

As a result of the efforts to reduce operational expenses, the cash outflow from operational activities was reduced to $380k (H1 2011: $2.42m) while a currency gain and proceeds from the sale of Cimmarron Royalties limited the decline in cash balances to $295k leaving cash and cash equivalents at the period end of $1.7m.

James Ede-Golightly

6 March 2013

Contacts

Bluebird Energy plc

www.bluebirdenergy.net

James Ede-Golightly Chairman

[phone]

WH Ireland Limited

www.wh-ireland.co.uk

John Wakefield

[phone]

CONDENSED CONSOLIDATED INCOME STATEMENT

		(Unaudited)	(Unaudited)	(Audited)
		Six months ended 31 December 2012	Six months ended 31 December 2011	Year ended 30 June 2012
	Notes	US$'000	US$'000	US$'000
Continuing operations:
Revenue		-	3	5
Gross profit		-	3	5
Administrative expenses		(956)	(1,787)	(2,714)
Exceptional administrative expenses	2	(1,583)	(268)	(972)
Total administrative expenses		(2,539)	(2,055)	(3,686)
Operating loss		(2,539)	(2,052)	(3,681)
Finance income		1	4	7
(Loss)/profit on sale of available-for-sale investments		-	-	2,569
Loss before taxation		(2,538)	(2,048)	(1,105)
Taxation		-	(8)	(8)
Share of losses of associates		-	(2)	(36)
Loss for the financial period from continuing operations		(2,538)	(2,058)	(1,149)
Loss for the financial period from discontinued operations		-	(431)	(418)
Loss for the financial period		(2,538)	(2,489)	(1,567)
Attributable to:
Equity shareholders of the Company		(2,538)	(2,489)	(1,567)
Loss per share from continuing and discontinued operations attributable to the equity shareholders of the company.
Basic and diluted loss per share (US cents)	3	(0.51)	(0.51)	(0.32)
Loss per share from continuing operations	3	-	(0.42)	(0.23)
Basic and diluted loss per share (US cents)

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

		(Unaudited)	(Unaudited)	(Audited)
		Six months ended 31 December 2012	Six months ended 31 December 2011	Year ended 30 June 2012
		US$'000	US$'000	US$'000
Loss for the financial period		(2,538)	(2,489)	(1,567)
Other comprehensive income
Available-for-sale financial assets:
Fair value (losses) / gains arising during the year		(1,341)	2,481	3,806
Plus: reclassification adjustments for losses included in profit or loss		-	-	(2,569)
Tax on loss/(gain) on available-for-sale financial assets		311	(439)	(263)
Foreign exchange gains / (losses) on consolidation		63	(931)	(45)
Other comprehensive income for the financial period, net of tax		(967)	1,111	929
Total comprehensive income for the financial period		(3,505)	(1,378)	(638)

CONDENSED CONSOLIDATED BALANCE SHEET

		(Unaudited)	(Unaudited)	(Audited)
		Six months ended 31 December 2012	Six months ended 31 December 2011	Year ended 30 June 2012
	Notes	US$'000	US$'000	US$'000
Assets
Non-current assets
Property, plant and equipment		-	980	771
Intangible assets		-	1,408	912
Available-for-sale financial assets		2,654	5,158	3,990
		2,654	7,546	5,673
Current assets
Trade and other receivables		19	80	97
Cash and cash equivalents		1,701	2,582	1,996
		1,720	2,662	2,093
Total assets		4,374	10,208	7,766
Equity and liabilities
Current liabilities
Trade and other payables		(2)	(67)	(111)
Non-current liabilities
Deferred tax		(393)	(881)	(705)
Provisions		(10)	-	-
Provision for associate losses		-	(2)	-
Total liabilities		(405)	(950)	(816)
Net assets		3,969	9,258	6,950
Capital and reserves attributable to the Company's equity shareholders:
Share capital	4	2,210	2,210	2,210
Share premium account		5,025	5,031	5,025
Foreign exchange translation reserve		(2,509)	(3,458)	(2,572)
Retained earnings		(2,135)	4,901	1,433
Share-based payment reserve		1,378	574	854
Total equity		3,969	9,258	6,950

The financial statements were approved by the Board of Director's on 6 March 2013 and were signed on its behalf by:

James Ede-Golightly

Chairman

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

	Share capital	Share premium account	Foreign exchange translation reserve	Retained earnings	Share based payment reserve	Total
	US$'000	US$'000	US$'000	US$'000	US$'000	US$'000
Balance at 1 July 2011	1,318	2,537	(2,527)	5,348	299	6,975
Profit for the financial period	-	-	-	(2,489)	-	(2,489)
Other comprehensive income:
Fair value gain on available-for-sale financial assets	-	-	-	2,481	-	2,481
Tax on gain on available-for-sale investments	-	-	-	(439)	-	(439)
Foreign exchange loss on consolidation	-	-	(931)	-	-	(931)
Total comprehensive income	-	-	(931)	(447)	-	(1,378)
Share-based payments	-	-	-	-	275	275
Issue of share capital	892	2,677	-	-	-	3,569
Issue costs	-	(183)	-	-	-	(183)
Balance at 31 December 2011	2,210	5,031	(3,458)	4,901	574	9,258
Balance at 1 January 2012	2,210	5,031	(3,458)	4,901	574	9,258
Profit for the financial period	-	-	-	922	-	922
Other comprehensive income:
Fair value loss on available-for-sale financial assets	-	-	-	(1,243)	-	(1,243)
Tax on gain on available-for-sale investments	-	-	-	176	-	176
Foreign exchange gains on consolidation	-	-	886	-	-	886
Total comprehensive income	-	-	886	(145)	-	741
Share-based payments	-	-	-	-	280	280
Issue of share capital adjustment	-	(6)	-	-	-	(6)
Specie dividend	-	-	-	(3,323)	-	(3,323)
Balance at 30 June 2012	2,210	5,025	(2,572)	1,433	854	6,950
Balance at 1 July 2012	2,210	5,025	(2,572)	1,433	854	6,950
Loss for the financial period	-	-	-	(2,538)	-	(2,538)
Other comprehensive income:
Fair value loss on available-for-sale financial assets	-	-	-	(1,341)	-	(1,341)
Tax on loss on available-for-sale investments	-	-	-	311	-	311
Foreign exchange gain on consolidation	-	-	63	-	-	63
Total comprehensive income	-	-	63	(3,568)	-	(3,505)
Share-based payments	-	-	-	-	524	524
Balance at 31 December 2012	2,210	5,025	(2,509)	(2,135)	1,378	3,969

CONDENSED CONSOLIDATED CASH FLOW STATEMENT

		(Unaudited)	(Unaudited)	(Audited)
		Six months ended 31 December 2012	Six months ended 31 December 2011	Year ended 30 June 2012
		US$'000	US$'000	US$'000
Cash flow from operating activities		(380)	(2,422)	(3,047)
Cash flow used in investing activities
Purchase of intangible assets		-	(741)	(741)
Purchase of property, plant and equipment		-	(511)	(511)
Purchase of available-for-sale investments		-	(840)	(840)
Proceeds from disposal of business		-	3,100	3,100
Proceeds from disposal of intangible assets		26	-	-
Interest received		1	4	6
Net cash flow from investing activities		27	1,012	1,014
Cash flow from financing activities
Proceeds on issue of new shares		-	3,573	3,565
Expenses of new share issue		-	(170)	(183)
Net cash flows from financing activities		-	3,403	3,382
Net increase / (decrease) in cash and cash equivalents		(353)	1,993	1,349
Cash and cash equivalents at beginning of period		1,996	606	606
Effects of exchange movements		58	(17)	41
Cash and cash equivalents at end of the period		1,701	2,582	1,996

NOTES TO THE COMBINED UNAUDITED HISTORIC FINANCIAL INFORMATION

1.

Accounting policies

Basis of preparation

These condensed Half Yearly financial statements are for the six month period ended 31 December 2012.

The financial information for the six months ended 31 December 2012 and 31 December 2011 is unaudited.

IFRS is subject to amendment and interpretation by the International Accounting Standards Board ("IASB") and the IFRS Interpretations Committee and there is an ongoing process of review and endorsement by the European Commission.

The financial information has been prepared on the basis of IFRS that the Directors expect to be applicable as at 30 June 2013, with the exception of IAS 34 Interim Financial Reporting.

Financial information contained in this document does not comprise the Group's statutory financial statements as defined in section 434 of the Companies Act 2006.

The statutory financial statements for the year ended 30 June 2012 have been delivered to the Registrar of Companies. The auditors reported on these financial statements: their report was unqualified, did not contain a statement under section 498(2) or 498(3) of the Companies Act 2006, and did not include references to any matters to which the auditor drew attention by way of emphasis.

2.

Exceptional administrative expenses

	(Unaudited)	(Unaudited)	(Audited)
	Six months ended 31 December 2012	Six months ended 31 December 2011	Year ended 30 June 2012
	US$'000	US$'000	US$'000
Impairment of intangible assets	(1,583)	(268)	(972)

3.

Loss per share attributable to the equity shareholders of the Company

Basic loss per share	(Unaudited)	(Unaudited)	(Audited)
	Six months ended 31 December 2012	Six months ended 31 December 2011	Year ended 30 June 2012
	US cents	US cents	US cents
Loss per share from continuing operations	(0.51)	(0.42)	(0.23)
Loss per share from discontinued operations	-	(0.09)	(0.09)
Total basic loss per share	(0.51)	(0.51)	(0.32)

The losses and weighted average number of ordinary shares used in the calculation of basic loss per share are as follows:

	US$'000	US$'000	US$'000
Loss used in the calculation of total basic and diluted loss per share	(2,538)	(2,489)	(1,567)
Loss for the year from discontinued operations used in the calculation of basic and diluted earnings per share from discontinued operations	-	(431)	(418)
Loss used in the calculation of basic earnings per share from continuing operations	(2,538)	(2,058)	(1,149)

Number of shares	(Unaudited)	(Unaudited)	(Audited)
	Six months ended 31 December 2012	Six months ended 31 December 2011	Year ended 30 June 2012
Weighted average number of ordinary shares for the purposes of basic loss per share	498,196,408	489,539,931	493,844,518

As at 31 December 2012, 30 June 2012 and 31 December 2011 the options in issue are not dilutive under IAS 33, Earnings per Share, because they would have the effect of decreasing the loss per share.
  As such there is no difference between the basic and dilutive loss per share at these dates.

4.

Share Capital

	(Unaudited)	(Unaudited)	(Audited)
	Six months ended 31 December 2012	Six months ended 31 December 2011	Year ended 30 June 2012
	US$'000	US$'000	US$'000
Allotted, issued and fully paid
498,196,408   shares of 0.25 pence	2,210	2,210	2,210

5.

Related Parties

Brian Marshall, a non- executive director of Bluebird provided accountancy and company secretarial service to the company as a consultant through Brian Marshall Accountancy Services ("BMAS") and registered office premises via Berkeley Hall Marshall Limited ("BHM") of which company he was a director until 22 October 2012. In the period under review BMAS received
£12,500 (2011:
£12,500) and BHM received
£1,500 (2011:
£1,167)

The directors, having consulted the Company's nominated adviser, confirm their opinion that these arrangements, which are with related parties, are fair and reasonable insofar as the interests of shareholders are concerned.

6.

Copies of the Interim Report

A copy of this Interim Report is now available on the Company's website at

This information is provided by RNS

The company news service from the London Stock Exchange

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