Cap Energy Ltd

November 30, 2010 02:00 ET

Final Results and Interim Results

                                                 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 2010
                                                CHAIRMAN'S STATEMENT

The Chairman presents his statement for the year ended 31 December 2009 and the six months ended 30 June 2010.
At the beginning of the year, Cap finally acquired the working interests in the Stark's Dome oilfield and the Iberia
Dome project, both in Louisiana, USA. The Directors of Cap believe that transactions like this are necessary for Cap
to  become  a  significant oil and gas producer with great potential for further development. As two thirds  of  the
acquisition consideration was satisfied by the allotment of ordinary shares in Cap, the owner-operator  of  the  two
interests,  CSV  Holdings,  Inc., now holds 29.9% of Cap's issued share capital, and has  every  incentive  for  the
interests  and  Cap itself to succeed.  On acquisition, Cap owned 25% of seven new producing oil  wells,  three  new
wells awaiting completion and a large number of depleted inoperative wells which appeared to have further productive

Our first priority for 2009 was the raising of new funding to satisfy the cash element of the CSV acquisition price,
to  fund  the  completion of the three new oil wells, the recompletion of some non-producing wells  and  to  provide
working capital and corporate overhead for the coming year.  Thanks to a toxic combination of weak financial markets
and  a  low oil price, this exercise was not completed until October 2009, when Cap issued a total of £505,000 worth
of interest-bearing convertible loan notes.

On completion of the funding exercise, a work programme began to place the three uncompleted remaining new oil wells
on  production and a preliminary series of recompletions of old oil wells on the Stark's Dome Oilfield.  Around this
time, CSV began to have problems with its salt water disposal well at Stark's Dome, which is essential for the field
to  be  able  to  operate fully. The result of the difficulties of disposing of waste water  meant  that  any  wells
producing water as well as oil had to be shut in, severely reducing CSV's and Cap's output.

Finally it was agreed that a new disposal well was necessary. This was a lengthy process requiring the selection and
evaluation  of a suitable abandoned well, design of the completion of the disposal system, approval of  the  planned
scheme  by  the  state authority, execution of the work, testing of the recompleted well and final approval  by  the
state authority. All bar the final element is now complete and we wait to hear that our wells can be placed back  on
full production.

The prolonged delay has naturally been very frustrating for the Company and their shareholders and Cap can only look
forward  to a better year with production unhindered by technical problems.  In the period after the CSV acquisition
the  Company  saw  enough  normal oil production to show that the wells were producing  a  decent  surplus  even  at
depressed oil prices. Current prices of around $80 per barrel are more than adequate for our production to  generate
good operating surpluses.

While  waiting  for  production to recommence, Cap continues to evaluate other possibilities  which  are  presenting
themselves in the USA and elsewhere. When finances allow, hopefully in early 2011, CSV's project in the Iberia  Dome
area of Louisiana will commence, with the potential for high returns.

With  respect to the Company's accounts for the year, the reduction in turnover in 2009 compared with  that  of  the
previous  year  reflects  the  sale of its producing assets in Oklahoma at the end of  2008  and  the  loss  of  oil
production  at  the  Stark's Dome Oilfield in 2009 as a result of the problems with the salt  water  disposal  well.
Increased overhead was incurred in 2009 as a result of the protracted funding transaction during the year.

I wish to thank the Directors, officers and shareholders of the Company for their support during the year.

T Hearley

Date: 22 November 2010

The Directors present their report and the financial statements for the year ended 31 December 2009.

                                        CONSOLIDATED PROFIT AND LOSS ACCOUNT
                                         FOR THE YEAR ENDED 31 DECEMBER 2009
                                                                                            2009                 2008
                                                                                               £                    £
TURNOVER                                                                                  38,493               44,602

Cost of sales                                                                            (37,048)             (36,770)

GROSS PROFIT                                                                               1,445                7,832

Administrative expenses                                                                 (181,906)            (133,585)
Exceptional administrative expenses                                                     (104,986)                   -
Total administrative expenses                                                           (286,892)            (133,585)

OPERATING LOSS                                                                          (285,447)            (125,753)
Other exceptional items                                                                        -              130,174

(LOSS)/PROFIT ON ORDINARY ACTIVITIES BEFORE INTEREST                                    (285,447)               4,421

Interest receivable and similar income                                                        18                1,944

Amounts written off investments                                                           (5,000)                  -
Interest payable and similar charges                                                      (1,079)                  -

(LOSS)/PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION                                    (291,508)               6,365

Tax on (loss)/profit on ordinary activities                                                   -                    -
(LOSS)/PROFIT FOR THE FINANCIAL YEAR                                                    (291,508)               6,365

EARNINGS PER SHARE                                                                         (0.03)                   -

                                             CONSOLIDATED BALANCE SHEET
                                               AS AT 31 DECEMBER 2009
                                                                                    2009                          2008
                                                                      £                £             £               £

Tangible assets                                                                  617,604                       864,968

Investments                                                                       20,000                             -

                                                                                 637,604                       864,968

Debtors                                                         74,002                          10,995 

Cash at bank                                                    60,000                          32,594 

                                                               134,002                          43,589 

CREDITORS: amounts falling due within one year                 (18,113)                       (585,019) 

NET CURRENT ASSETS/(LIABILITIES)                                                 115,889                      (541,430)

TOTAL ASSETS LESS CURRENT LIABILITIES                                            753,493                       323,538

CREDITORS: amounts falling due after more than                                  (507,490)                            -
one year 
NET ASSETS                                                                       246,003                       323,538


Called up share capital                                                           43,737                        30,660

Share premium account                                                          1,375,084                     1,126,615

Foreign exchange reserve                                                          (3,473)                       44,100

Profit and loss account                                                       (1,169,345)                     (877,837)

SHAREHOLDERS' FUNDS                                                              246,003                       323,538

The  financial statements have been prepared in accordance with the special provisions relating to companies subject
to  the  small  companies  regime  within Part 15 of the Companies Act 2006 and in  accordance  with  the  Financial
Reporting Standard for Smaller Entities (effective April 2008).

The  financial statements were approved and authorised for issue by the board and were signed on its  behalf  on  16
November 2010.

Timothy Hearley                                            John Killer
Director                                                   Director

                                                COMPANY BALANCE SHEET
                                               AS AT 31 DECEMBER 2009
                                                                                  2009                          2008
                                                                      £                £             £               £

Investments                                                                       21,887                         1,887


Debtors                                                       1,598,599                         879,635 

Cash at bank                                                     49,322                           9,266 

                                                              1,647,921                         888,901                
CREDITORS: amounts falling due within one year                  (13,381)                        (15,928) 

NET CURRENT ASSETS                                                             1,634,540                       872,973

TOTAL ASSETS LESS CURRENT LIABILITIES                                          1,656,427                       874,860

CREDITORS: amounts falling due after more than one year                         (507,490)                            -
NET ASSETS                                                                     1,148,937                       874,860


Called up share capital                                                           43,737                        30,660

Share premium account                                                          1,375,084                     1,126,615

Profit and loss account                                                         (269,884)                     (282,415)

SHAREHOLDERS' FUNDS                                                            1,148,937                       874,860

The Directors do not recommend the payment of a dividend for this period.

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.

The audit report in respect of the year ended 31 December 2009 includes the following statement from the Company's

"Emphasis of Matter"

In  forming our opinion, we have considered the adequacy of the disclosure made the in the Going Concern as detailed
below from the financial statements concerning the limitation in producing cashflow and other forecasts. In view  of
the  significance of this uncertainty we consider that it should be drawn to your attention but our opinion  is  not
qualified in this respect.

As  detailed  in  the Chairman's statement, the principal assets now consists of the interests in the  Stark's  Dome
field and related assets operated by CSV Holdings Inc. The directors believe that these assets represent significant
value and that there is the likelihood of strong cashflow developing over the next year. Unfortunately the directors
have been unable to obtain cashflow projections from CSV Holdings Inc. and it appears likely that these will not  be
forthcoming for some time. For this reason the directors have not been able to produce forecasts sufficient to prove
that the group is a going concern for the twelve months from the signing of these financial statements.

The  Company has received financial support from CSV Holdings Inc. allowing the Company to continue to operate.  CSV
Holdings  Inc.  has  indicated that this support will continue until such time as the Company has raised  sufficient
funds to operate independently or has reached breakeven from operational cashflows.
                                                 CAP ENERGY LIMITED
                                                   INTERIM RESULTS
                                       FOR THE SIX MONTHS ENDED 30th JUNE 2009

The Chairman presents his statement for the period.

Cap Energy Limited is pleased to announce its unaudited interim results for the six months to 30 June 2010.

The  Company  has made a loss for the period of GBP 103,470 for the reasons more fully described in  the  Chairman's
Statement above.

                                          For the period ended 30 June 2010
                                                            6 Months ended           6 Months             Year ended
                                                                 June 2010              ended               December
                                                                                    June 2009                   2009
                                                                 Unaudited          Unaudited                Audited
                                                                       GBP                GBP                    GBP
TURNOVER                                                             3,278             31,935                 38,493

Cost of sales                                                       (2,129)           (33,334)               (37,048)

GROSS PROFIT/ (LOSS)                                                 1,149             (1,399)                 1,445

Administrative expenses                                            (35,955)           (37,269)               (83,164)
Depreciation of fixed assets                                       (33,333)           (46,608)               (98,742)
Exceptional administrative credits/ -expenses                            0             20,647               (104,986)
OPERATING (LOSS)                                                   (68,139)           (64,629)              (285,447)

Amounts written off investments                                     (5,000)                 0                 (5,000)

Interest payable                                                   (30,601)                 0                 (1,061)

LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION                       (103,740)           (64,629)              (291,508)

Tax on loss on ordinary activities                                       -                  -                      -

LOSS ON ORDINARY ACTIVITIES AFTER TAXATION                        (104,740)           (64,629)              (291,508)

Earnings/ (Loss) per share                                        GBP(0.01)          GBP(0.01)             GBP(0.038)
          UNAUDITED CONSOLIDATED BALANCE SHEET            6 Months                    6 Months            Year ended
                   As at 30 June 2010                        ended                       ended         December 2009
                                                         June 2010                   June 2009               Audited
                                                         Unaudited                   Unaudited                   GBP
                                                               GBP                         GBP
Fixed assets 
Tangible fixed assets                                      622,489                     818,362            617,604
Fixed asset investments                                     15,000                           0             20,000

                                                           637,489                     818,362            637,604
Current assets 
Debtors                                                     67,038                       2,584             74,002
Cash at bank                                                25,163                       6,231             60,000

                                                            92,201                       8,815            134,002

Creditors falling due within one year                      (35,864)                   (559,453)           (18,113)

Net current assets/ (liabilities)                           56,337                    (550,638)           115,889

Total assets less current liabilities                      693,826                     258,909            753,493
Creditors falling due after more than one year            (507,490)                          0           (507,490)
Net assets                                                 186,336                     258,909            246,003
Capital and reserves  

Called up share capital                                     43,737                      30,661             47,737
Share premium account                                    1,375,084                   1,126,614          1,375,084
Foreign exchange reserve                                    40,597                      44,099             (3,473)
Profit and loss account                                 (1,273,082)                   (942,465)        (1,169,345)
Shareholders' funds                                        186,336                     258,909            246,003
The interim results for the six months ended 30 June 2010 have been reviewed by the Company's auditor.
The Directors of Cap are responsible for the contents of this announcement.

Contact details:

John Killer, Managing Director
Cap Energy Limited
John Killer
Tel: 07979 903673

Corporate Advisers:
St Helens Capital Partners LLP
Duncan Vasey or Mark Anwyl
Tel: 020 7368 6959

Contact Information

  • Cap Energy Ltd