Orca Exploration Group Inc. announced that it will restate its 2013 audited financial statements and 2014 unaudited interim financial statements for the three, six and nine month periods, mainly due to computational errors, which were found while preparing company’s consolidated financial statements for the year ended 31 December 2014. Also, the BVI company will correct reported finance income and finance costs previously recognized on overdue trade receivables for 2013 and 2014. Finance income and finance costs in the amount of $2.6 million for the year ended 31 December 2013 and $1.7 million for the nine months ended 30 September 2014 will be eliminated.
The impact of the combined income tax and finance income errors, including penalties and interest, on the 2013 financial statements results in a decrease of revenue from $54.7 million to $53.5 million, an increase in general and administrative expenses from $15.4 million to $16.2 million, an increase in income tax expense from $1.7 million to $2.2 million, an increase in net loss after tax from $5.5 million to $7.9 million. The impact of the combined income tax and finance income errors, including penalties and interest at 30 September 2014 results in a decrease of revenue from $47.6 million to $47.0 million, an increase in general and administrative expense from $14.6 million to $14.7 million, an increase in income tax expense from $7.9 million to $8.2 million, a decrease in net profit after tax from $8.5 million to $7.4 million.
BVI-registered Talon Metals Corp. announced that it has received the unsecured loan in the amount of US$4,000,000 from Kennecott Exploration Company, which is a subsidiary of the Rio Tinto Group. The unsecured loan will be used by Talon Metals to continue to fund exploration activities at the Tamarack Project in Minnesota, USA. The maturity date of the loan is December 21, 2015. The loan will bear interest at the rate of LIBOR plus 8 per cent per annum.
Talon Metals and Kennecott have agreed on the deferral of a US$2,500,000 option payment due by the BVI corporation to Kennecott on June 26, 2015, under the terms of the Exploration and Option agreement signed on June 25, 2014, until December 21, 2015. Also, Kennecott will not make further cash calls beyond the amount of the loan, until the fourth quarter of this year.
Kennecott and Talon have started planning for the next phase of exploration at the Tamarack Project.
Xcite Energy Limited, a BVI company focused on oil exploration and development of oil resources in the North Sea, announced financial results for the year ended 31 December 2014. During this period, Xcite Energy refinanced balance sheet, with new debt financing of US$135 million of secured 12 per cent coupon bonds, and with repayment of the existing US$80mln unsecured 12.5 per cent loan notes. Also, the company received extension to the Bentley field licence until 31 December 2016, from the Department of Energy and Climate Change.
For the year 2014, net loss of the BVI company was £3.2mln, as compared to £6.6mln profit in the year period ended 31 December 2013, and net loss of £1.7mln in the year 2012. Company’s loss per share in 2014 was 1.1p (2.3p profit in 2013, 1.7p loss in 2012). Total assets reported by Xcite Energy at the end of this year were £310.4mln. At the end of the year 2014, cash balance made £32.5mln (£21.9mln at the end of 2013).