Preliminary Results

Spitfire Oil Limited (“the Company”) and its wholly owned subsidiary, Spitfire Oil Pty Ltd (“Spitfire”), together (“the Group”), recorded a loss before tax for the year ended 30th June 2019 of A$936,103 (2018: A$1,350,901), after providing $763,507 (2018: $1,116,767) for diminution in value of the Salmon Gums tenements. The Group benefited from interest receivable of A$26,610 (2018: $63,405). Operating costs of A$199,206 (2018: A$297,539) were incurred. A$313,507 (2018: A$316,767) was incurred and capitalised on licence fees and tenement management.


On 30th August 2019, following a further review of the economic feasibility of the Salmon Gums lignite project, in particular with consideration of the current and long term forecast for the continued relatively low oil prices and the continuing costs of maintaining the retention licence over the Salmon Gums tenements, Spitfire relinquished the retention licence over the Salmon Gums lignite tenements and as a result all costs incurred in respect of the Salmon Gums lignite venture have been written off and charged to profit and loss.

Operations

Following the renewal of the retention licence over the Salmon Gums lignite deposits in September 2018, the Group continued to explore the feasibility of extracting liquid hydrocarbons from the Salmon Gums lignite deposits on a commercial basis. Despite these efforts and in seeking joint venture partners to further develop the venture, on 30th August 2019, following a further review of the economic feasibility of the Salmon Gums lignite project, in particular with consideration of the current and long term forecast for the continued relatively low oil prices and the continuing costs of maintaining the retention licence over the Salmon Gums tenements, Spitfire relinquished the retention licence over the Salmon Gums lignite tenements.

With the relinquishment of the retention licence, the Company becomes an AIM Rule 15 cash shell. As such, the Company is required to make an acquisition (or acquisitions) which constitutes a reverse takeover under AIM Rule 14 on or before 29 February 2020. If no such acquisition is completed by 29 February 2020, the Company’s shares would then be suspended from trading on AIM pursuant to AIM Rule 40.

The Group has continued to keep its running costs to a minimum while reviewing possible new projects.

Chairman’s Statement

During the 2018/19 financial year all efforts were made to commercially advance the Salmon Gums lignite deposits either through new technology, partnership or sale. Against a background of relatively low oil prices and significant anti fossil fuel sentiment, it was concluded it was no longer prudent to maintain the expenditure required to retain the Salmon Gum’s retention licence and consequently it was relinquished on the 30th August 2019.

With the relinquishment of the retention licence, the Company is now an AIM Rule 15 cash shell. The directors continue to be focused and motivated on acquiring another company, project or venture which has the potential to bring significant value to shareholders. Whilst a number of such ventures have been identified or forwarded to the Company, none have reached a stage where it will be likely to conclude an acquisition by the 29th February 2020, the date at which the Company’s shares will be suspended from trading on AIM pursuant to AIM Rule 40.

Thereafter, as soon as an acquisition can be made the directors will seek the re admission of the Company’s shares onto AIM, however, if an acquisition cannot be successfully completed in a reasonable period of time, then the Company may be liquidated and surplus funds returned to shareholders.

Spitfire Oil Limited
Consolidated Statement of Profit or Loss and Other Comprehensive Income

YEAR ENDED 30 JUNE 2019 2019 2018
A$ A$
OTHER INCOME 26,610 63,405
EXPENDITURE
Corporate expenses (112,438) (217,641)
Other expenses (86,768) (79,898)
OPERATING LOSS (172,596) (234,134)
Impairment – exploration and evaluation costs (763,507) (1,116,767)
LOSS BEFORE INCOME TAX (936,103) (1,350,901)
INCOME TAX
LOSS AFTER INCOME TAX (936,103) (1,350,901)
OTHER COMPREHENSIVE INCOME, NET OF TAX
LOSS AND TOTAL COMPREHENSIVE INCOME FOR
THE YEAR ATTRIBUTABLE TO OWNERS OF SPITFIRE OIL
LIMITED
(936,103) (1,350,901)
Basic and diluted loss per share for loss attributable to the ordinary equity holders of the Company (cents per share) (3.6) (5.22)

Spitfire Oil Limited
Consolidated Statement of Financial Position

AS AT 30 JUNE 2019 2019 2018
A$ A$
CURRENT ASSETS
Cash and cash equivalents 2,124,200 2,560,120
Trade and other receivables 1,405
Accrued revenues 23,229
Other current assets 21,499 28,954
TOTAL CURRENT ASSETS 2,147,104 2,612,303
NON‑CURRENT ASSETS
Capitalised exploration and evaluation costs 450,000
Office equipment
Other non-current assets 45,000 45,000
TOTAL NON‑CURRENT ASSETS 45,000 495,000
TOTAL ASSETS 2,192,104 3,107,303
CURRENT LIABILITIES
Trade and other payables 57,774 36,870
TOTAL CURRENT LIABILITIES 57,774 36,870
TOTAL LIABILITIES 57,774 36,870
NET ASSETS 2,134,330 3,070,433
EQUITY
Issued capital 19,289,284 19,289,284
Reserves
Accumulated losses (17,154,954) (16,218,851)
TOTAL EQUITY ATTRIBUTABLE TO THE EQUITY HOLDERS OF THE PARENT 2,134,330 3,070,433

Spitfire Oil Limited
Consolidated Statement of Changes in Equity

YEAR ENDED 30 JUNE 2019 Issued Capital Accumulated Losses Total
A$ A$ A$
BALANCE AT 30 JUNE 2017 19,289,284 (14,867,950) 4,421,334
Loss for the year (1,350,901) (1,350,901)
TOTAL COMPREHENSIVE LOSS (1,350,901) (1,350,901)
TRANSACTIONS WITH OWNERS IN THEIR CAPACITY AS OWNERS
Transaction with owners
BALANCE AT 30 JUNE 2018 19,289,284 (16,218,851) 3,070,433
Loss for the year (936,103) (936,103)
TOTAL COMPREHENSIVE LOSS (936,103) (936,103)
TRANSACTIONS WITH OWNERS IN THEIR CAPACITY AS OWNERS
Transaction with owners
BALANCE AT 30 JUNE 2019 19,289,284 (17,154,954) 2,134,330

Spitfire Oil Limited
Consolidated Statement of Cash Flows

YEAR ENDED 30 JUNE 2019 2019 2018
A$ A$
CASH FLOWS FROM OPERATING ACTIVITIES
Payments to suppliers and employees (167,158) (342,724)
Interest
received
49,839 50,688
NET CASH FLOWS USED IN OPERATING
ACTIVITIES
(117,319) (292,036)
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for exploration and evaluation expenditure (313,507) (316,767)
NET CASH OUTFLOWS USED IN INVESTING
ACTIVITIES
(313,507) (316,767)
NET DECREASE IN CASH AND CASH
EQUIVALENTS
(430,826) (608,803)
Cash and cash equivalents at the beginning
of the financial
year
2,560,120 3,170,851
Effects of exchange rate changes on cash and cash equivalents (5,094) (1,928)
CASH AND CASH EQUIVALENTS AT THE END OF THE FINANCIAL
YEAR
2,124,200 2,560,120

Notes to the preliminary results to 30th June 2019

  1. This statement has been prepared using accounting policies and presentation consistent with those applied in the preparation of the statutory accounts of the Group.
  2. 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 summarised consolidated statement of financial position at 30 June 2019 and the summarised consolidated statement of profit or loss and other comprehensive income, consolidated statement of changes in equity and the summarised consolidated statement of cash flows for the year then ended have been extracted from the Group’s 2019 statutory financial statements upon which the auditors’ opinion is unqualified. The statutory financial statements for the year to 30 June 2019 have been prepared in accordance with the requirements of International Accounting Standard IAS1: Presentation of Financial Statements as adopted in Australia. The results for the year ended 30 June 2018 have been extracted from the statutory accounts for that period, upon which the auditors’ opinion is qualified as to the inability to obtain sufficient audit evidence concerning the capitalised exploration and evaluation costs in respect of the Salmon Gums Project at 30th June 2016 and the consequent impact on the summarised consolidated statement of profit or loss and other comprehensive income, consolidated statement of changes in equity and the summarised consolidated statement of cash flows.
  3. The annual report and accounts for 2019 are being sent by post to all registered shareholders. Additional copies of the annual report and accounts are available from the Company’s London correspondent office, 8th Floor, 54 Jermyn Street, London, SW1A 6LX and on the Company’s web site.
  4. The calculation of the basic and diluted losses per share is based on the loss attributable to ordinary shareholders of A$936,103 (2018 A$1,350,901) divided by the weighted average number of shares in issue during the year of 25,884,001 (2018 25,884,001). There is no dilutive effect of share purchase options.