On October 24, 2007, British Virgin Islands company Equator Exploration Ltd published unaudited interim results for six months ended June 30, 2007. The company reported of certain losses in the first half of the year 2007, mainly connected with sufferings in its operations on the Bilabri field development. As a result of these problems, Equator Exploration transferred the responsibility of completing the above project to its partner and operator of the block, Peak Petroleum Industries Ltd, retaining only a smaller interest in the future oil and gas production.
According to BVI company’s unaudited consolidated income statement for the six months ended 30 June 2007, loss for this period (in US$,000) made 84,746, while the loss for the respective period of 2006 was 3,557. The increase of the loss, to much extent, can be explained by the â€œExceptional item: impairment chargeâ€ in the Income Statement on the amount of 70 million US$.
It was said in the statement signed by BVI Company’s Director/Chief Executive that â€œin the light of the uncertainties surrounding the recoverability of the costs we have incurred to date on OML 122, on both Bilabri and Owanare, we consider that, as a matter of financial prudence, a further provision should be made. We have therefore made provision for US$70 million in the first half of 2007 in addition to the US$200 million provision made in 2006.â€ Company’s director has noted, however, that, against the disappointments on the Bilabri developments, they have successfully farmed out part of their interest in one of project’s blocks to BG Exploration and Production Nigeria Ltd. This company is to bring in to Equator Exploration a total amount of up to US$75 million in cash, and carry on exploration and appraisal costs.
By the unaudited consolidated balance sheet, total assets of the company (in US$,000) made 237,984 in the period ended 30 June 2007, – compared to 436,222 for the corresponding period of 2006, the total assets of the company decreased more than 45%.
As regards the share structure of the BVI company, as at 30 June 2007 there were 175,165,590 common shares in issue, and no further shares have been issued since the balance sheet date. On June 30, 2007, there were 12,852,750 outstanding share options, 16,677,307 outstanding and issued warrants, and 12,307,693 contracted but not issued warrants. Since 30 June 2007, further 25,641,000 warrants have been issued. Warrants and options are exchangeable into common shares at prices ranging from Â£0.30 per share to Â£3.05 per share.