Interim Statement For The Six Months Ended 31st December 2015

Spitfire Oil Limited (“Spitfire” or “the Company”) is pleased to publish a copy of its condensed consolidated unaudited interim results for the six months ended the 31st December 2015.

Spitfire and its subsidiaries (together “the Group”) recorded a loss before tax for the six months ended the 31st December 2015 of A$460,906 (2014: A$183,983). With cash balances of A$4m, the Group has benefited from interest receipts of A$58,350 (2014 A$44,272) in the period. Operating costs were A$258,065 (2014 A$228,255) and provision has been made for impairment of exploration and development costs incurred of A$261,191 (2014 A$nil).

Chairman’s Statement

Chairman Mladen Ninkov commented

Following the disastrous 2014 year for oil and gas prices, the trend tragically continued in 2015 with even further catastrophic falls in prices. With the junior oil and gas equity markets effectively on life support and the projects available for acquisition economically unviable and the carrying costs unsustainable, the Company has had little option but to preserve its cash holdings and look for projects in extractive industries which may have a long term future in a fast changing world. Nothing examined to date has yet fulfilled these requirements or currently remains incapable of being acquired, but the Company remains hopeful that such an asset may be able to be obtained in the future. The challenge remains Himalayan in its proportion.


SPITFIRE OIL LIMITED
CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS
OR OTHER COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 31 DECEMBER 2015
(expressed in Australian dollars)

Half-year Full-year
Note 31 December 2015 Unaudited
A$
31 December 2014 Unaudited
A$
30 June 2015 Audited
A$
OTHER INCOME 58,350 44,272 144,291
EXPENDITURE
Corporate expenses (252,476) (203,664) (369,325)
Other expenses (5,589) (24,591) (82,843)
OPERATING LOSS (199,715) (183,983) (307,877)
Imparment – exploration and evaluation costs (261,191) (288,217)
LOSS BEFORE INCOME TAX (460,906) (183,983) (596,094)
INCOME TAX
LOSS AFTER INCOME TAX (460,906) (183,983) (596,094)
OTHER COMPREHENSIVE INCOME, NET OF TAX
TOTAL COMPREHENSIVE LOSS FOR THE PERIOD ATTRIBUTABLE TO OWNERS OF SPITFIRE OIL LIMITED (460,906) (183,983) (596,094)
Basic and diluted loss per share for loss attributable to the ordinary equity holders of the Company (cents per share). 6 (1.7) (0.7) (2.3)

The above consolidated statement of profit or loss or other comprehensive income should be read in conjunction with the accompanying notes.

SPITFIRE OIL LIMITED
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2015
(expressed in Australian dollars)

Note 31 December 2015
Unaudited
A$
31 December 2014
Unaudited
A$
30 June
2015
Audited
A$
CURRENT ASSETS
Cash and cash equivalents 3,976,987 4,676,319 4,428,982
Trade and other receivables 1,733
Accrued revenues 94,347
Other current assets 36,747 20,905 17,341
TOTAL CURRENT ASSETS 4,013,734 4,697,224 4,542,403
NON-CURRENT ASSETS
Plant and equipment 163 1,145 164
Capitalised exploration and evaluation costs 4,340,000 4,521,853 4,340,000
Other non-current assets 45,000 45,000 45,000
TOTAL NON-CURRENT ASSSETS 4,385,163 4,567,998 4,385,164
TOTAL ASSETS 8,398,897 9,265,222 8,927,567
CURRENT LIABILITIES
Trade and other payables 55,114 41,314 122,878
TOTAL CURRENT LIABILITIES 55,114 41,314 122,878
TOTAL LIABILITIES 55,114 41,314 122,878
NET ASSETS 8,343,783 9,223,908 8,804,689
EQUITY
Issued capital 5 19,289,284 19,289,284 19,289,284
Accumulated losses (10,945,501) (10,065,376) (10,484,595)
TOTAL EQUITY 8,343,783 9,223,908 8,804,689

The above consolidated statement of financial position should be read in conjunction with the accompanying notes.

SPITFIRE OIL LIMITED
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 31 DECEMBER 2015
(expressed in Australian dollars)

Issued Capital Options Reserve Accumulated Losses Total
A$ A$ A$ A$
BALANCE AT 31 DECEMBER 2013 19,307,329 321,600 (5,788,853) 13,840,076
Loss for the period (4,421,248) (4,421,248)
TOTAL COMPREHENSIVE LOSS (4,421,248) (4,421,248)
TRANSACTIONS WITH OWNERS IN THEIR CAPACITY AS OWNERS
Expenses re purchase of shares for cancellation (18,045) (18,045)
Transfer on expiry of options (321,600) 321,600
Transaction with owners (18,045) (321,600) 321,600 (18,045)
BALANCE AT 30 JUNE 2014 19,289,284 (9,888,501) 9,400,783
Loss for the period (183,983) (183,983)
TOTAL COMPREHENSIVE LOSS (183,983) (183,983)
BALANCE AT 31 DECEMBER 2014 19,289,284 (10,072,484) 9,216,800
Loss for the period (412,111) (412,111)
TOTAL COMPREHENSIVE LOSS (412,111) (412,111)
BALANCE AT 30 JUNE 2015 19,289,284 (10,484,595) 8,804,689
Loss for the period (460,906) (460,906)
TOTAL COMPREHENSIVE LOSS (460,906) (460,906)
BALANCE AT 31 DECEMBER 2015 19,289,284 (10,945,501) 8,343,783

The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.

SPITFIRE OIL LIMITED
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2015
(expressed in Australian dollars)

Half-year Full-year
31 December 2015
Unaudited
A$
31 December 2014
Unaudited
A$
30 June
2015 Audited
A$
CASH FLOWS FROM OPERATING ACTIVITIES
Payments to suppliers and employees (337,912) (225,928) (371,524)
Interest received 152,697 44,272 49,944
Net cash (outflow) from operating activities (185,215) (183,656) (321,581)
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for exploration and evaluation expenditure (261,191) (181,853) (288,217)
Net cash (outflow) from investing activities (261,191) (181,853) (288,217)
NET (DECREASE) IN CASH AND CASH EQUIVALENTS (446,406) (365,509) (609,798)
Cash and cash equivalents at the beginning of the period 4,428,982 5,049,361 5,049,361
Effects of exchange rate changes on cash and cash equivalents (5,589) (7,536) (10,581)
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD 3,976,987 4,676,319 4,428,982

The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.

SPITFIRE OIL LIMITED
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1: BASIS OF PREPARATION OF THE SIX MONTH FINANCIAL REPORT

This condensed consolidated interim financial report for the six month reporting period ended 31 December 2015 has been prepared in accordance with Accounting Standard AASB 134 Interim Financial Reporting.

The summary accounts set out above do not constitute statutory accounts as defined by Section 84 of the Bermuda Companies Act 1981 or Section 435 of the UK Companies Act 2006. The condensed consolidated statement of financial position at 30 June 2015 and the condensed consolidated statement of profit or loss and other comprehensive income, condensed consolidated statement of changes in equity and the condensed consolidated statement of cash flows for the year then ended have been extracted from the Group’s 2015 statutory financial statements upon which the auditors’ opinion is unqualified. The condensed consolidated statement of profit or loss or other comprehensive income has been prepared using information extracted from the Group’s 2015 statutory financial statements.

This condensed consolidated interim financial report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual report for the year ended 30 June 2015 and any public announcements made by Spitfire Oil Limited during the interim reporting period in accordance with the continuous disclosure requirements.

Copies of this interim report are being sent to all registered shareholders. Additional copies are available from the Company’s London office, 60 St James’s Street, London, SW1A 1LE.

The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period.

Adoption of new and revised accounting standards

In the six months ended 31 December 2015, the Group has reviewed all of the new and revised Standards and Interpretations issued by the AASB that are relevant to its operations and effective for annual reporting periods beginning on or after 1 July 2015.

It has been determined by the Group that, there is no material impact of the new and revised standards and interpretations on its business and therefore no change is necessary to the Group’s accounting policies.

The Group has also reviewed all new Standards and Interpretations that have been issued but are not yet effective for the half-year ended 31 December 2015. As a result of this review the Directors have determined that there is no impact, material or otherwise, of the new and revised Standards and Interpretations on its business and, therefore, no change necessary to Group accounting policies.

No retrospective change in accounting policy or material reclassification has occurred requiring the inclusion of a third Statement of Financial Position as at the beginning of the comparative financial period, as required under AASB 101.

NOTE 2: SEGMENT INFORMATION

Management has determined the operating segments based on the reports reviewed by the Board of Directors that are used to make strategic decisions. For management purposes, the Group has identified only one reportable segment, being the exploration and mining for valuable resources that produce energy in Australia.

NOTE 3: DIVIDENDS

The Company has not declared any dividends in the period ended 31 December 2015.

NOTE 4: CONTINGENCIES

There has been no change in contingent liabilities or contingent assets since the last annual reporting date.

NOTE 5: ISSUED CAPITAL

 

31 December 2015 31 December 2014 30 June 2015
No A$ No A$ No A$
Issued and Paid Up Capital
Fully Paid Ordinary Shares 25,884,001 19,289,284 25,884,001 19,289,284 25,884,001 19,289,284
Total Issued Capital 19,289,284 19,289,284 19,289,284

NOTE 6: LOSS PER SHARE

31 December 2015 31 December 2014 30
June 2015
Basic and diluted loss per share (cents) (1.7) (0.7) (2.3)
a) Net loss used in the calculation of basic and diluted loss per share (A$) (460,906) (183,983) (596,094)
b) Weighted average number of ordinary shares outstanding during the period used in the calculation of basic and diluted loss per share 25,884,001 25,884,001 25,884,001

Options that are considered to be potential ordinary shares are excluded from the weighted average number of ordinary shares used in the calculation of basic loss per share. Where dilutive, potential ordinary shares are included in the calculation of diluted loss per share.

All the options on issue do not have the effect to dilute loss per share. Therefore they have been excluded from the calculation of diluted loss per share. There have been no other conversions to, call of, or subscriptions for ordinary shares since the reporting date and before the completion of this report.

NOTE 7: SUBSEQUENT EVENTS

No matter or circumstance has arisen since 31 December 2015, which has significantly affected, or may significantly affect the operations of the Group, the result of those operations, or the state of affairs of the Group in subsequent financial years.


The interim statement is available in Adobe Acrobat PDF format. Please click on the link below: