Cap Energy Ltd
LSE : CAPP

November 04, 2009 02:00 ET

Announcements of Results

                                                                                                                    


                                                                                                          04/11/2009
                                                                                           GB00B0MH9D42/GBP/PLUS-exn
                                                          
                                                 CAP ENERGY LIMITED
                                              ("CAP" or the "Company")
                                                          
                                 Audited Results for the year ended 31 December 2009
                             and Unaudited Results for the six months ended 30 June 2009
                                                                                                                    
                                                CHAIRMAN'S STATEMENT
                                         FOR THE YEAR ENDED 31 DECEMBER 2008

The Chairman presents his statement for the period.

At  the  beginning  of  2008, the Company had largely eliminated its operating losses by selling  a  number  of  its
Oklahoma  properties,  and  had  completed a small share placing to provide funds for  new  acquisitions.  Remaining
production was cash positive but revenue was substantially decreased by the drop in energy prices.

At the end of December, 2008, following protracted negotiation, evaluation and due diligence, CAP announced that its
wholly-owned US subsidiary, CAP Energy USA, Inc. ("CAPUSA") had exchanged contracts on the acquisition of  interests
in  the  Starks  Dome oilfield in southern Louisiana from CSV Holdings, Inc. ("CSV").  Total consideration  due  was
US$350,000  cash  and US$650,000 in shares (at 10p), loan notes or cash, giving CSV a maximum 29.9% shareholding  in
CAP.   As  part of the agreement, CSV had the right to nominate a further director for both CAP and CAPUSA  at  such
time as it wished.

The  assets  acquired  comprised working interests in seven producing oil wells and three new wells  shortly  to  be
completed for production, plus the right to participate at base cost in any new wells to be drilled on CSV's  lease.
Included  in the acquisition was the right to participate in the recompletion of up to forty existing wells  in  the
Starks Dome Field which contained unproduced oil reserves in the upper zones of the wells.

Included  also in the acquisition was the right to participate in the recompletion of a productive well  drilled  on
the Iberia Dome structure in southern Louisiana.   CAPUSA would earn a 10% share of CSV's interest, with much of the
cost  success-based.  While this project has a higher risk profile than the Starks Dome project,  there  is  a  real
possibility  of  achieving rates of production many times higher, of both oil and gas.  The Iberia  Dome  Field  has
already produced large quantities of oil and gas, so pipeline facilities are already in place.

This  acquisition represents a major step change for CAP.  Apart from the fact that the producing  interests  are  a
scale  larger  than  its existing assets, there is potential for many years' drilling and recompletion  activity  at
Starks  Dome  at  base costs, with progressively deeper and more prolific production potential  as  oil  prices  and
economics  allow.  The Iberia Dome project has the potential to make a substantial  further increase in CAP's  asset
value, combined with a relatively low cost/low risk first phase.  With a large portion of its consideration being in
CAP's shares and convertible loan notes, CSV has every incentive to help the company grow successfully.

In  early  2009,  CAP  sought  to  raise funds for field development and payment of  the  outstanding  cash  balance
($100,000)  due  on the acquisition by the issue of convertible loan notes.  This proved difficult  in  the  current
economic  climate,  so  payment  for the acquisition was completed in October 2009  by  the  issue  of  £268,740  of
Convertible Loan Notes to the vendor, in lieu of the outstanding cash balance, some field development costs and  the
consideration due in shares which could not be issued in excess of CSV's holding of 29.9% in CAP.  Total Convertible
Loan  Notes  issued  amounted to £507,490 of which £238,750 was for cash which will be used for  field  development,
corporate overhead and accrued acquisition expenses.

CAP  now  has  a  25%  interest in seven producing wells at Stark's Dome, with three new wells shortly  to  commence
production. A program of recompletion of existing non-producing wells will follow, with the prospect of the  company
then  producing a positive cash flow for the first time, and a major long term asset being progressively  developed.
Added to this is the possibility of prolific production from the Iberia Dome project at low cash risk.

On  a sad note it is with regret that in February of this year, CAP had to announce the death of Philippe Schreiber,
its legal/financial director in the USA since the Company's formation in 2005.

In  summary, the Directors believe that the major changes to CAP's operating strategy described above will secure  a
more interesting and positive future.

Timothy Hearley
Chairman



                                                 CAP ENERGY LIMITED
                                                          
                                        CONSOLIDATED PROFIT AND LOSS ACCOUNT
                                         FOR THE YEAR ENDED 31 DECEMBER 2008
                                                          
                                                                                             2008                2007
                                                                                               £                   £
                                                                                                  
                                                                                          44,602               74,348
TURNOVER
                                                                                        (36,770)             (71,729)
Cost of sales
                                                                                           7,832                2,619

GROSS PROFIT
                                                                                       (133,585)            (157,833)
Administrative expenses
                                                                                       (125,753)            (155,214)

OPERATING LOSS
                                                                                                                     
EXCEPTIONAL ITEMS
                                                                                         130,174             (28,888)
Other exceptional items
                                                                                           4,421            (184,102)

PROFIT/(LOSS) ON ORDINARY ACTIVITIES BEFORE INTEREST
                                                                                           1,944                1,180
Interest receivable
                                                                                           6,365            (182,922)

PROFIT/(LOSS) ON ORDINARY ACTIVITIES BEFORE TAXATION
                                                                                               -                    -
Tax on profit/(loss) on ordinary activities
                                                                                           6,365            (182,922)
                                                                     
PROFIT/(LOSS) FOR THE FINANCIAL YEAR

                                                                                                    
EARNINGS/(LOSS) PER SHARE                                                                   0.00               (0.04)
                                                                                                     

The Directors do not recommend payment of a dividend.

                                                 CAP ENERGY LIMITED
                                                          
                                             CONSOLIDATED BALANCE SHEET
                                               AS AT 31 DECEMBER 2008
                                                          
                                                                                  2008                          2007
                                                                      £                £             £               £
                                                                                                           
FIXED ASSETS
                                                                                 864,969                         155,954
Tangible fixed assets
                                                                                                          
CURRENT ASSETS
                                                                 10,995                           9,469 
Debtors
                                                                 32,594                         108,045 
Cash at bank
                                                                                                           
                                                                 43,589                         117,514 
                                                              (585,020)                       (191,397) 
CREDITORS: amounts falling due within one year
                                                                              (541,431)                        (73,883)
NET CURRENT LIABILITIES
                                                                               323,538                          82,071
TOTAL ASSETS LESS CURRENT LIABILITIES
                                                                                                          
CAPITAL AND RESERVES
                                                                                 30,660                          20,835
Called up share capital
                                                                              1,126,615                         945,438
Share premium account
                                                                                 44,100                               -
Foreign exchange reserve
                                                                              (877,837)                       (884,202)
Profit and loss account
                                                                                                           
SHAREHOLDERS' FUNDS                                                             323,538                         82,071


The above results are an extract from the full audited financial statements. A full version of these figures can be
found on the Report and Accounts section of the Company on the PLUS website.



                                                                                                        
                                              CAP ENERGY LIMITED
                                                       
                                                INTERIM RESULTS
                                     FOR THE SIX MONTHS ENDED 30 JUNE 2009


Cap Energy Limited is pleased to announce its unaudited interim results for the six months to 30 June 2009.

Chairman's Statement

The Company has made a loss for the period of GBP64,629 in line with expectations.

At  30  June 2009 the Company had interests in thirteen producing wells and one water disposal well, over  five
locations  in the USA. The seven Stark's Dome producing wells, acquired at the end of 2008, generated  a  small
operating  surplus in the first six months, reflecting the very low oil prices in that period. A more  positive
effect  will  be seen in the final quarter of the year, with higher oil prices and three more wells  coming  on
production.

                                UNAUDITED CONSOLIDATED PROFIT AND LOSS ACCOUNT
                                       For the period ended 30 June 2009
                                                       
                                                            6 Months ended           6 Months             Year ended
                                                                 June 2009              ended              December
                                                                                    June 2008                  2008
                                                                 Unaudited           Unaudited               Audited
                                                                       GBP                GBP                   GBP
                                                                                                   
                                                                    31,935               22,504                44,602
TURNOVER
                                                                                                     
                                                                  (33,334)              (16,416)              (36,770)
Cost of sales
                                                                   (1,399)                6,068                 7,832
GROSS PROFIT/ (LOSS)
                                                                  (63,230)             (47,841)              (133,585)
Administrative expenses
                                                                  (64,629)             (41,753)              (125,753)
OPERATING (LOSS)
                                                                                                      
                                                                        -               (9,346)               130,174
Exceptional Items - Dec 2008, release of provisions less
dry well costs (June 2008 - dry well costs only)
                                                                        -                 1,560                 1,944
Interest receivable
                                                                  (64,629)             (49,539)                 6,365
LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION
                                                                        -                   -                      -
Tax on loss on ordinary activities
                                                                  (64,629)             (49,539)                 6,365
LOSS ON ORDINARY ACTIVITIES AFTER TAXATION
                                                                                                      
Earnings/ (Loss) per share                                       GBP(0.01)            GBP(0.01)              GBP0.001



The figures have been reviewed by the Company's auditor.

The Directors of CAP are responsible for the contents of this announcement.

Contact:

Cap Energy Limited
John Killer
Tel: 07979 903673


St Helens Capital Partners LLP
Duncan Vasey or Mark Anwyl
Tel: +44 (0) 20 7368 6959
                                                       
                                                       
                                                       

Contact Information

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