| Fri 29 Jun 2001, 0:00 | | Zarara - Unaudited Interim Report For The Six Mont |
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Zarara Energy Limited
(Registration number: 1895/001078/06) (Formerly Mawenzi Resources Limited)
(Incorporated in the Republic of South Africa)
("Zarara")
UNAUDITED INTERIM REPORT FOR THE SIX MONTHS ENDED 31 MARCH 2001
Issued: 255 577 396 Ordinary shares of 0,5 cents each
Weighted average number of shares used in earnings calculations: 2000 -233
071 909
Abridged consolidated income statement
Six months Six months Year Ended
Ended ended
31 Mar 2001 31 Mar 2000 30 Sept 2000
R'000 R'000 R'000
Revenue 11,119 33,400 60,525
Operating loss (9,813) (3,286) (27,528)
Exploration assets written off - (7,979) -
Amortisation of goodwill (22) (5,244) (7,735)
Exceptional items - (113,505) (179,751)
Loss on disposal of
subsidiary companies - - (8,326)
Goodwill written off - (10,695) (135,176)
Surplus on realisation
of investment and fixed assets - 553 55,519
Write down of investments and
fixed assets - (103,363) (54,994)
Provision for loss on deposit - - (36,774)
Loss before investment
and interest income (9,835) (130,014) (215,014)
Net interest received/(paid) 4,986 8,768) (5,482)
Loss before taxation (4,849) (138,782) (220,496)
Taxation (28) (1,255) 3,367
Loss after taxation (4,877) (140,037) (217,129)
Outside shareholder's Interest (9) 3,173 1,517
Net loss for the period (4,886) (136,864) (215,612)
Headline loss per share before
exceptional items (cents) (2) (11) (15)
Attributable loss per share
after exceptional items (cents) (2) (63) (93)
Summarised cash flow
Cash generated/(utilised)
in operating activities 77,744 (59,659) (163,237)
Cash generated/(utilised)
in investing activities (475) (161,153) 84,727
Cash (outflow)/inflow
from financing activities (2,580) 216,941 84,148
Net cash inflow/(outflow) 74,689 (3,871) 5,638
Abridged consolidated
balance sheet
At At At
31 Mar 2001 31 Mar 2000 30 Sept 2000
R'000 R'000 R'000
Assets
Fixed assets 18,182 223,948 18,662
Goodwill and intangible assets 35,129 91,399 35,129
Investment and loans 96,597 55,784 96,448
Non-current assets 149,908 371,131 150,239
Current assets 101,608 111,974 128,997
Total assets 251,516 483,105 279,236
Equity and liabilities
Capital and reserves 226,682 304,783 230,885
Outside shareholder's interest 1,799 15,428 1,789
Non-current liabilities 6,674 131,318 6,700
Long-term liabilities 4,765 126,004 4,791
Deferred liabilities 1,909 5,314 1,909
Current liabilities 16,361 31,576 39,862
Total equity and liabilities 251,516 483,105 279,236
Abridged statement of changes
in equity
Share capital and premium
Opening balance 364,236 216,225 216,225
Ordinary shares issued - 143,739 148,011
364,236 359,964 364,236
Non-distributable reserves
Opening balance 3,446 14,075 69,045
Translation of foreign currency 683 0 (65,599)
4,129 14,075 3,446
Distributable reserves
Opening balance (136,797) 67,608 12,638
Transfer from non-distributable
Reserve - - 11,207
Transfer from general reserve - - 54,970
Net loss (4,886) (136,864) (215,612)
(141,683) (69,256) (136,797)
Total equity 226,682 304,783 230,885
Notes to the interim announcement
OPERATIONS
Kandamis Production Licence, Turkey
Electric logging during the drilling of the Turkey well in January 2001 has
identified certain zones. Further engineering analysis of the logs has
determined that the four potential zones were of sufficient commercial
interest to warrant testing. This testing of the well commenced on 21 June
and should take approximately 25 days for completion.
Owl Technologies Limited
The company has acquired a small interest in an oily water treatment
company. This company will be commissioning its first treatment plant in
Gibraltar which will be formally commissioned toward the end of July 2001.
The company plans additional facilities in the Bahamas and, with Zarara's
assistance, a facility in Fujeirah, U.A.E. Owl Technologies Limited plans to
go public on the London Alternative Investment Market in the United Kingdom
in mid July 2001. This public listing would provide new equity for that
company to fund additional expansion plans in other areas including South
Africa.
Leesburg Asphalt Company LLC
Zarara has made a small investment in this company for a nominal amount.
Leesburg has an asphalt producing facility in the U.S.A. The plant is under
construction and will be commissioned in early July with production starting
in early August 2001. The facility will initially process about 2 000
barrels per day of local crude oil, ramping up to its 4 000 barrel per day
design within 60 days.
General Exploration
Zarara is awaiting response from the Somaliland authorities to its request
to re-open negotiation on its concessions granted to Zarara prior to the
independence referendum. In Sudan Zarara is awaiting a response to its
request to acquire the data package for the off shore block 15, which
contains a natural gas discovery. In Tunisia Zarara is awaiting the final
hydrocarbon law amendments prior to Zarara signing a PSA concession, in
Mozambique, Zarara has agreed with Sasol Limited to extend the Sofala
licence into the next exploration phase. In the Buzi-divinhe block Zarara is
discussing the potential farm-out of the licence to a reputable oil and gas
company. This company has received the data presentation and is currently
evaluating the information prior to making an offer to Zarara. In Lybia
Zarara is awaiting results from our consulting activities in acquiring data
on potential acquisitions.
FINANCIAL AND LEGAL
The iProp Limited transaction has almost been concluded with two properties
still awaiting transfer. Once transfer has taken place a further R600 000
will be paid. Outstanding issues have to be resolved with iProp Limited on
the adjustment account and various claims that have been made.
A claim has been submitted by Heriot Properties International (Pty) Ltd
against Mawenzi Properties (Pty) Ltd for an amount of R600 000 for property
sold to them some time ago. This action is to be defended by the company and
will be heard in the courts on 31 August 2001. Zarara is confident that it
will successfully defend the action.
The NRB arbitration has been scheduled for 23 October 2001. Currently Zarara
is actively preparing itself for the arbitration.
Change of Sector
Zarara currently has an application into the Johannesburg Securities
Exchange SA ("JSE") to change its sector from Properties to the non-mining
resources, chemicals, oils and plastics sector. This will only be finalised
once the Turkey testing programme has been completed.
Reduction of Capital
At the Annual General Meeting of shareholders held on Thursday, 24 May 2001,
the resolution necessary to effect a distribution equivalent to six cents
per share to shareholders in terms of Section 90 of the Companies Act by way
of a reduction in share premium was approved. The JSE has granted a further
listing of 22 164 644 new fully paid ordinary shares of 0,5 cents each in
the share capital of Zarara and a total cash amount of R10 587 697.50 was
paid to shareholders. The total issued share capital of Zarara now stands at
277 727 613 ordinary shares of 0,5 cents each.
Odd-lot offer
Some 4000 shareholders out of 4995 shareholders currently hold less than 1
000 shares, the board of directors have resolved to proceed with an odd-lot
offer to shareholders who hold less than 1 000 shares.
A further announcement regarding the terms of the odd-lot offer will be
published on or about Monday, 16 July 2001.
Constitution of the Board
The board of directors now consists of members with appropriate expertise
and experience in the energy field. The members are SS Yahya (Chairman)
(United Arab Emirates), DC Shreve (Managing Director) (United States of
America) ASS Binbrek (United Arab Emirates), LM Carroll and DG Strauch
(United States of America). Further appointments could be made to add to the
overall expertise of the board.
By order of the board
Johannesburg
29 June 2001
