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DJ Karoo Energy Plc Interim Results to 31 October 2018

 
TIDMKEP 
 
31 January 2019 
 
                               Karoo Energy Plc 
 
("Karoo Energy", the "Group" or the "Company") 
 
           Interim Results For The Six Months Ended 31 October 2018 
 
CHIEF EXECUTIVE OFFICER STATEMENT 
 
This last six-month interim period has seen the Company and Board focus on cash 
conservation, and employ their best endeavours to raise the funds required to 
complete an admission to AIM. Substantial progress has been made on the AIM 
listing, a pathfinder Admission document was signed off in November and 
roadshows recently completed. We remain committed in our belief of the 
potential shale gas within our portfolio of licenses and look forward post a 
successful AIM listing, to proving the resource and exploiting the licenses 
fully. 
 
Whilst no assurances of a successful listing on AIM can be given at this stage, 
the Board expects to be able to confirm, imminently, that it has with its 
Corporate Adviser Peterhouse and its proposed broker Novum, raised the funds 
required to transition to an AIM listing and that it is in the final regulatory 
stage of the admission process. 
 
It is the intention of the Board to update the market on progress as soon as it 
able to do so with an AIM listing currently expected to be finalised and to 
occur in February 2019. 
 
FINANCIALS 
 
The financial results for the six months to 31 October 2018 show a loss after 
taxation of GBP68,089 (2017: GBP422,196). The majority of the costs relating to the 
admission to AIM are recognised in the prior financial periods. 
 
The financial results detailed are unaudited, and have not been reviewed by the 
auditors of the Company. 
 
OUTLOOK 
 
We remain committed to the success of Karoo Energy plc and the exploitation of 
the licenses held. We look forward to providing investors with a progress 
report in due course. 
 
Noel Lyons 
 
CEO 
 
31 January 2019 
 
The Directors of the Company accept responsibility for the content of this 
announcement. 
 
ENQUIRIES: 
 
Company 
 
Karoo Energy plc 
 
Noel Lyons 
 
Telephone: 020 3130 0674 
 
Corporate Adviser 
 
Peterhouse Capital Limited 
 
Guy Miller / Mark Anwyl 
 
Telephone: 020 7220 9795 
 
Consolidated Income Statement for the 6 months ended 31 October 
 
                                                                    2018           2017 
 
                                                     Notes     Unaudited      Unaudited 
 
                                                                       GBP              GBP 
 
Revenue                                                                -              - 
 
Other operating income                                            16,870              - 
 
Administrative expenses                                         (84,969)      (425,348) 
 
Operating profit                                                (68,099)      (425,348) 
 
Finance income                                                         9              - 
 
Finance costs                                                          -              - 
 
Profit before taxation                                          (68,090)      (425,348) 
 
Taxation                                                               -              - 
 
Minority interests                                                   327          3,152 
 
Loss for the financial year attributable to the                 (67,763)      (422,196) 
Company's equity shareholders 
 
Loss per share from operations 
 
Basic and diluted loss per share (GBP)                   2          0.0003         0.0021 
 
Consolidated Statement of Comprehensive Income for the 6 months ended 31 
October 
 
                                                                    2018           2017 
 
                                                               Unaudited      Unaudited 
 
                                                                       GBP              GBP 
 
Loss for the financial year                                     (67,763)      (422,196) 
 
Total comprehensive income for the financial year               (67,763)      (422,196) 
attributable to the Company's equity shareholders 
 
Consolidated Balance Sheet as at 31 October and 30 April 
 
                                               31 October      31 October        30 April 
 
                                                     2018            2017            2018 
 
                                     Notes      Unaudited       Unaudited         Audited 
 
Assets                                                  GBP               GBP               GBP 
 
Non-current assets 
 
Intangible assets                      3          135,439         337,047         135,439 
 
Current assets 
 
Trade and other receivables            4           45,207          37,574          41,072 
 
Investments                                             -               -               - 
 
Cash and cash equivalents                           1,141         186,626          41,419 
 
                                                   46,348         224,200          82,491 
 
Total Assets                                      181,787         561,247         217,930 
 
Equity and liabilities 
 
Capital and reserves 
 
Share capital                          5          511,837         511,837         511,837 
 
Share premium                                   2,231,786       2,231,786       2,231,786 
 
Retained earnings                             (2,910,950)     (2,500,844)     (2,843,187) 
 
Shareholders' funds                             (167,327)         242,779        (99,564) 
 
Minority Interests                               (54,893)        (11,058)        (54,566) 
 
                                                (222,220)         231,721       (154,130) 
 
Current liabilities: 
                                       6 
Trade and other payables                          404,007         329,526         372,060 
 
Total equity and liabilities                      181,787         561,247         217,930 
 
Consolidated Statement of Changes in Equity as at 31 October and 30 April 
 
                                   Share       Share     Retained   Minority 
 
                                 capital     premium     earnings  interests      Total 
 
                                       GBP           GBP            GBP          GBP          GBP 
 
For the 6 months ended 31 
October 2017 
 
Balance at 1 May 2017            469,590   1,771,584  (2,078,648)    (7,906)    154,620 
 
Loss for the period                    -           -    (422,196)    (3,152)  (425,348) 
 
Total comprehensive income             -           -    (422,196)    (3,152)  (425,348) 
 
Issue of shares                   42,247     464,713            -          -    506,960 
 
Cost of share issue                    -     (4,511)            -          -    (4,511) 
 
Balance at 31 October 2017       511,837   2,231,786  (2,500,844)   (11,058)    231,721 
 
Loss for the period                    -           -    (342,343)   (43,508)  (385,851) 
 
Total comprehensive income             -           -    (342,343)   (43,508)  (385,851) 
 
Issue of shares                        -           -            -          -          - 
 
Cost of share issue                    -           -            -          -          - 
 
Balance at 30 April 2018         511,837   2,231,786  (2,843,187)   (54,566)  (154,130) 
 
Loss for the period                    -           -     (67,763)      (327)   (68,090) 
 
Total comprehensive income             -           -     (67,763)      (327)   (68,090) 
 
Issue of shares                        -           -            -          -          - 
 
Cost of share issue                    -           -            -          -          - 
 
Balance at 31 October 2018       511,837   2,231,786  (2,910,950)   (54,893)  (222,220) 
 
Consolidated Statement of Cash Flows for the 6 months ended 31 October 
 
                                                                    2018           2017 
 
                                                     Notes     Unaudited      Unaudited 
 
                                                                       GBP              GBP 
 
Cash flow from operating activities 
 
Loss for the period before tax                                  (68,090)      (425,348) 
 
Finance income                                                       (9)              - 
 
                                                                (68,099)      (425,348) 
 
Changes in working capital 
 
(Increase)/decrease in trade and other receivables     4         (4,135)         57,686 
 
Increase in trade and other payables                   6          31,947         66,394 
 
Cash outflow from operating activities                          (40,287)      (301,268) 
 
Cash flow from investing activities 
 
Purchase of intangible exploration assets              3               -       (14,893) 
 
Interest received                                                      9              - 
 
Net cash used in investing activities                                  9       (14,893) 
 
Cash flow from financing activities 
 
Issue of shares                                        5               -        507,298 
 
Cost of shares issued                                  5               -        (4,511) 
 
Net cash from financing activities                                     -        502,787 
 
Net (decrease)/increase in cash and cash                        (40,278)        186,626 
equivalents 
 
Cash and cash equivalents at beginning of period                  41,419              - 
 
Cash and cash equivalents at end of period                         1,141        186,626 
 
Notes to the interim results 
 
 1. Basis of preparation 
 
The interim financial statements for Karoo Energy plc have been prepared on the 
basis of the accounting policies set out in the audited financial information 
for the year ended 30 April 2018, which complied with International Financial 
Reporting Standards as adopted for use in the European Union ("IFRS"). The 

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January 31, 2019 04:54 ET (09:54 GMT)

DJ Karoo Energy Plc Interim Results to 31 October -2-

financial information for the periods ended 31 October 2018 and 31 October 2017 
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 
on-going process of review and endorsement by the European Commission. 
 
The financial information has been prepared in accordance with the recognition 
and measurement requirements of IFRS that the Directors expect to be applicable 
as at 30 April 2019. 
 
The preparation of condensed consolidated interim financial information 
requires management to make judgements, estimates and assumptions that affect 
the application of accounting policies and the reported amounts of assets and 
liabilities, income and expense. Actual results may differ from those 
estimates. 
 
In preparing these interim financial statements, the significant judgements 
made by management in applying the Group's accounting policies and the key 
sources of estimation uncertainty were the same as those that applied to the 
consolidated financial statements for the year ended 30 April 2018. 
 
Going concern 
 
During the period ended 31 October 2018 the Group made a loss of GBP68,089 (2017: 
loss GBP425,349) and as at 31 Oct 2018 it had net current liabilities of GBP404,007 
(2017: net current liabilities of GBP329,188). The operations of the Group are 
primarily financed from funds which the Parent Company raises from share 
placing as it does not currently generate significant amounts of revenue. 
 
The Group needs to raise significant funds in the short term to pay its 
liabilities as they fall due including existing creditors which exceed the 
group's current assets. Funds are also required to deliver on its obligations 
under the exploration licences, as set out in the audited accounts to 31 April 
2018. 
 
As described in the CEO statement, subject to AIM approval for the admission to 
AIM, the Directors believe that the Group, in conjunction with the Broker, will 
be able to raise sufficient cash to enable it to continue its operations, and 
continue to meet, as and when they fall due, its planned and committed 
exploration and development activities and liabilities for at least the next 
twelve months from the date of approval of these interim statements. For this 
reason, the Directors continue to adopt the going concern basis in preparing 
the accounts. However, there can be no guarantee that the required funds we be 
raised within the necessary timeframe. The financial statements do not include 
the adjustments that would result if the Group was unable to continue in 
operation 
 
 1. Earnings per share 
 
Basic earnings per share is calculated by dividing the earnings attributable to 
Ordinary Shareholders by the weighted average number of Ordinary Shares 
outstanding during the period. 
 
The Group does not have any potentially dilutive shares in any of the periods 
presented, therefore the basic and diluted earnings per share are the same. 
 
Basic earnings per share 
 
                                                                     2018           2017 
 
                                                                Unaudited      Unaudited 
 
                                                                        GBP              GBP 
 
Total basic loss per share                                         0.0003         0.0021 
 
The losses and weighted average number of Ordinary Shares used in the 
calculation of basic earnings per share are as follows: 
 
                                                                   2018             2017 
 
                                                              Unaudited        Unaudited 
 
                                                                      GBP                GBP 
 
Loss used in the calculation of total basic and diluted        (68,089)        (422,196) 
earnings per share 
 
                                                                   2017             2017 
 
Number of shares                                              Unaudited        Unaudited 
 
Weighted average number of Ordinary Shares for the          203,518,412      200,818,638 
purposes of basic earnings per share 
 
 1. Intangible assets 
 
                                                                        Exploration and 
                                                                      Evaluation assets 
 
                                                                                      GBP 
 
Cost & net book value 
 
At 30 April 2017 (audited)                                                      322,154 
 
Additions                                                                        14,893 
 
At 31 October 2017 (unaudited)                                                  337,047 
 
Additions                                                                        49,630 
 
Impairments                                                                   (251,238) 
 
At 30 April 2018 (audited)                                                      135,439 
 
Additions                                                                             - 
 
At 31 October 2018 (unaudited)                                                  135,439 
 
 1. Trade and other receivables 
 
                                                  31 October     31 October    30 April 
 
                                                        2018           2017        2018 
 
                                                   Unaudited      Unaudited     Audited 
 
                                                           GBP              GBP           GBP 
 
Trade debtors                                          5,535              -           - 
 
Amounts due from director                             16,595         12,855      16,595 
 
Other receivables                                     18,477         16,277      17,477 
 
Prepayments and accrued income                         4,600          8,442       7,000 
 
                                                      45,207         37,574      41,072 
 
 1. Share capital 
 
                                           31 October       31 October         30 April 
 
                                                 2018             2017             2018 
 
                                            Unaudited        Unaudited          Audited 
 
Allotted, issued, and fully paid                    GBP                GBP                GBP 
Ordinary shares of 0.0025 each 
 
Opening balance                               511,837          469,590          511,837 
 
Allotments: 
 
22 May 2017 - shares issued at 3.0p                 -              997                - 
each resulting in premium of GBP10,963 
 
22 May 2017 - shares issued at 3.0p                 -           38,750                - 
each resulting in premium of GBP 
426,250 
 
22 May 2017 - shares issued at 3.0p                 -            2,500                - 
each resulting in premium of GBP27,500 
 
Closing balance                               511,837          511,837          511,837 
 
 
 
                                           31 October       31 October         30 April 
 
                                                 2018             2017             2018 
 
                                            Unaudited        Unaudited          Audited 
 
Allotted, issued, and fully paid                   No               No               No 
Ordinary shares of 0.0025 each 
 
Opening balance                           204,734,976      187,836,308      204,734,976 
 
Allotments: 
 
22 May 2017 - shares issued at 3.0p                 -          398,668                - 
each resulting in premium of GBP10,963 
 
22 May 2017 - shares issued at 3.0p                 -       15,500,000                - 
each resulting in premium of GBP 
426,250 
 
22 May 2017 - shares issued at 3.0p                 -        1,000,000                - 
each resulting in premium of GBP27,500 
 
Closing balance                           204,734,976      204,734,976      204,734,976 
 
 1. Trade and other payables 
 
                                                  31 October     31 October    30 April 
 
                                                        2018           2017        2018 
 
                                                   Unaudited      Unaudited     Audited 
 
                                                           GBP              GBP           GBP 
 
Trade payables                                       226,212        224,924     216,561 
 
Accruals                                              90,535         28,082      68,239 
 
Loan from related party                               87,260         76,520      87,260 
 
                                                     404,007        329,526     372,060 
 
 
 
END 
 

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