January to March
– Net sales for the first quarter amounted to tSEK 3245 ( 5012 )
– Of which oil business tSEK 3 245 (5 012)
– Operating income for the first quarter amounted to SEK thousands -2047 ( -3019 )
– Of which oil business tSEK -154 (-1 192)
– Earnings per share amounted to SEK – 0, 26 ( -0.50 )
– Equity per share amounted to SEK 10.09 (7.40 )
– First -quarter profit after tax amounted to SEK thousands -2795 ( -3608 )
– EBITDA for the first quarter amounted to SEK thousands -1119 ( -2104 )
– Of which oil business tSEK 773 ( -278 )
– Unrealised exchange differences impacted financial net with tSEK 828 ( -234 )
Significant events in the first quarter
The Extraordinary General Meeting of the Commodity Quest AB (publ) 11 December 2012 decided to shareholders as a dividend in kind to distribute all shares in the wholly owned subsidiary Benchmark Oil & Gas Holding AB ( u.ä.t. Commodity Holding Sweden AB). The connection of the Benchmark Oil & Gas Holding AB to Euroclear Sweden AB carried out on 10 January 2013. Record date for payment was 18 January 2013, and the last day for trading in Commodity Quest AB ( publ), including the right to property dividend was 15 January 2013. First Day trading ex- dividend in kind was the 16th January 2013.
Benchmark Oil & Gas Co. . Inc has signed an agreement with Geotrace for the analysis of 3D seismic shot on Orange field . The company has over 3-4 month period evaluated partners for development of a potential new drilling program and concluded that Geotrace , headquartered in Houston, has the best technology for our typreservoar . Geotrace has proposed to be on the risk side in the analysis . Benchmark Oil & Gas will pay a deposit of about 20 % of the total amount and the remaining amount and the bonus is paid if Geotrace find economically producing oil wells. ” Geotrace is very pleased to have the opportunity to work with Benchmark in this area . By employing the latest geophysical methods we feel confident That Previously undetected reservoirs will be found and resulted in Substantially Increasing Their production , “said Gary Perry, VP Reservoir Services , Geotrace
Green Bank in Dallas , after completion of the due diligence process of the Benchmark Oil & Gas Co. . Inc. paid the first amount of the total credit line. It was an important milestone to get paid the first sum from the Company’s new credit facility. With the new funding received , we are now able to more actively get started with production.
Commodity Quest decided in March on a private placement of 3,000,000 shares and 3,000,000 warrants. The subscription price of SEK 3.50 per share represents a premium of four percent from the volume-weighted price for the past 10 trading days. The warrants expire on 30 September 2014, and gives the right to subscribe for one new share for 3.40 SEK . Issue provides initial company 10.5 million before issue costs and additional 10.2 million upon full exercise of the warrants. The issue was subscribed by seven investors, of which four of them accounted for 2.8 million shares .
We are very pleased to be able to carry out an issue that is above the average shares traded on the market recently . The Company has received long-term investors who have seen the big discount to NAV at which the stock is trading at . We hope to raise the net worth and hopefully lower the discount during the year, which is favorable for the share price. The Company elected to make a private placement in front of a rights issue , then the price per share of the issue was deemed beneficial. The money will be used to strengthen our position as the principal owner of Benchmark Oil & Gas and göraeventuella new and structural investment .
Issue of shares implies a share dilution of about 22 percent. The issue increases the number of shares of Commodity Quest with 3,000,000 10,478,521 to 13,478,521 and the share capital by 10,200,001 SEK from 35,626,974 SEK to 45,826,974 SEK . The issue has been made under the authorization given by the AGM on 12 May 2012.
Commodity Quest for a long time been negotiating with local actors in Imcc where Commodity Quest owns 19.4% of the shares , to take over the licenses and other assets and move them to a newly formed company . Commodity Quest has recently held meetings with local partners and agreed that no acquisition cost to move license etc to a newly formed company . Commodity Quest has invested much time and money on this project and we have now set there own management team to initiate the project during the year. Our geological and commercial research supports the project . Several negotiations with key partners is already implemented , and our goal is to initiate operations and cash flow for the year.
Events after the reporting period
Commodity Quest’s subsidiary Benchmark Oil & Gas In April completed an issuance of 240,000 shares in order to improve the company’s position and key towards the new bank facility . Commodity Quest participated by setting off the debts and interest amounting to 947 500 USD and proceeds of 102 500 USD .
After the transaction , the ownership of the Benchmark Oil & Gas has increased from 64% to 68.4 % . The number of shares in the Benchmark Oil & Gas shares after the issue wil l 1 240 000 pcs of which Commodity Quest owns 850 000 shares.
In addition Commodity Quest has a partner at Benchmark Oil & Gas participated in the issue which provided the company with a further 150 000 USD .
Commodity Quest in April 2013 intensified negotiations on Imcc and agreed to move the license , etc., to a newly formed company which Commodity Quest will have a higher ownership stake than in Imcc . The newly formed company will also take over the debt Imcc have to Commodity Quest of about 7.3 million. As the project is still subject to considerable uncertainty , it is not possible to determine whether all or part of the claim Commodity Quest will be regulated , why Commodity Quest has chosen to reserve the entire outstanding amount.
After an earlier successful warranty for Crown Energy , we decided to participate in an underwriting syndicate in the recently completed convertible issue as Crown Energy completed . The investment amount for the Commodity Quest itself is below 2MSEK .
Commodity Quest AB (publ) is a partner in Kopy Goldfield . Kopy Goldfields announced in April positive results from a preliminary pilot study (called Scoping Study ) of gold deposit Krasny . The study shows that conditions exist for open pit production of 60 koz of gold per year over 18 years with $360 million in free cash flow.