Challenger Energy - Half Yearly Report
Challenger Energy (ASX:CEL) has announced a total profit of A$197k for the 6 months ending 31 December 2017. The result was positively impacted by a A$626k foreign exchange gain. At the end of the period, the Company had A$560k cash and equivalents. Operationally, the Company continues to monitor changes and updates to legislation in South Africa that controls shale gas development.
FINANCIAL HIGHLIGHTS
- Challenger Energy reported a A$197k total profit for the half year ended 31 December 2017.
- The profit was positively impacted by a A$626k foreign exchange gain based on currency translations from its South African subsidiaries.
- At the end of the reporting period, Challenger held A$560k in cash and cash equivalents.
OPERATING HIGHLIGHTS
- Recommended changes to the Mineral and Petroleum Resources Development Act (“MPRDA”) Amendment Bill presented to the Upper House (National Council of Provinces) Select Committee by the Department of Mineral Resources (“DMR”) in early November. Public consultations expected to be complete by end March/April 2017.
- Preliminary Information Memorandum on the LNG Independent Power Producer Procurement Programme published in early October. Energy Minister states the programme “is designed to provide imported LNG as a base to trigger exploration as well as upstream development and the reindustrialization of the economy.”
- Department of Energy (“DOE”) gazettes draft Integrated Energy Plan (IEP) and draft Integrated Resource Plan (IRP) Assumptions and Base Case for public comment in late November.
- Strategic Environmental Assessment (“SEA”) for Shale Gas Development completes second phase with publication in November of the final scientific assessment report.
- Given past delays and remaining uncertainties around the timing of exploration rights awards, the Company continues to focus on internal cost control and is also evaluating other projects that could add a further dimension to the Company’s portfolio.
