Pennpetro Energy, the company focused on developing strategic traditional and transition energy projects, has announced its financial results for the six months ended 30 September 2024.
Richard Spinks, Interim Chair and Chief Executive Officer, commented:
The period from 1 April to 30 September 2024 was one of profound transition for Pennpetro Energy plc, marked by both limited operational achievement and considerable challenges.
In April, the Company reported continued production and sales from the Peach Creek (Austin Chalk) Oil Field in Gonzales County, Texas, affirming some potential value of the Texan assets.
As the summer progressed, the Company reached agreement in July that Houston-based J&J Drilling International LLC had been engaged by Globalvision International to commence drilling on our Gonzales County wells. This operational momentum coincided with a strategic realignment of our business model.
On 17 July 2024, Pennpetro announced the signing of Heads of Terms with Globalvision. This agreement, once finalized, will see Globalvision acquire all shares in our Texas subsidiary, Nobel USA Inc, in exchange for a life-of-asset revenue stream currently estimated to last around 30 years, the announcement read.
This transformational transaction effectively shifted Pennpetro from a direct operator to a royalty and profit-sharing entity, reducing operational risk while retaining a significant upside in future production.
However, shortly after this announcement, on 1 August 2024, Pennpetro shares were suspended from trading on the London Stock Exchange due to the Company's failure to publish the audited annual financial report by the 31 July deadline. Not for the first time, and this led to the failure to close on the proposed transaction with Globalvision.
Financial Highlights
In the six months ended 30 September 2024, the Company made an operating loss of US $733,697 (30 September 2023: US $1,191,601) and a basic and diluted loss per share of US $0.71 (30 September 2023: US $(1.22)).
Overview of Operations
Post Period Events
Since the suspension, your Board and management, various formats, today being the third iteration, have worked tirelessly to resolve the issues that led to this situation. We have collaborated closely with our auditors, legal advisors, and regulatory authorities to strengthen our financial controls, due diligence procedures, communication and reporting processes, ensuring that Pennpetro emerges from this period with a more robust governance framework.
We have also moved to secure the Company's financial footing, agreeing a Convertible Loan Note with Canadian RMD Group to strengthen working capital through this transition, allowing the Company to settle outstanding trade creditors' invoices going back a year, and often longer.
In November 2025, we convened an Annual General Meeting, at which shareholders approved the 2023/24 accounts-an important milestone on our path to restoring full compliance and seeking reinstatement of trading in our shares. The requirement to publish the 2024/25 audited accounts, which are well on the way to completion, following, again, delays in accessing information needed to complete them from the United States.
Publishing these final set of overdue, audited accounts, as required previously will bring PPP up to date with filings and clear the way from the accounting perspective at least to apply for readmission to trading on the London Stock Exchange.
We are aware that our shareholders have been long-suffering, enduring not only the recent suspension but also historic frustration and disappointment, however there is more that needs to be done before Pennpetro is ready to apply to resume trading on the London Stock Exchange.
This is not a reflection on the current board of the Company, on the contrary, it is only through the efforts over the past twelve months of all involved in overcoming daily challenges at the Company that it continues to survive.
The board will apply for readmission to trading only once all outstanding Compliance and Governance issues, of which there were many, and today remain few, are completely resolved.
For example, the Company will need to demonstrate, to achieve a signed off audit for 2024/25, that it has the financial resources to go forward as a Going Concern. This in my view will not be possible until all of the outstanding, historical problems which have impeded the return and issue of shares in the Company to each and every entity or individual who has a right to receive them is handled, once and for all.
Resolving the issue of historically pledged shares remains an urgent priority; I want to reiterate unequivocally that any pledged shares will be returned to their rightful recipients, in line with a fully confirmed Pledge Agreement between the recipient and Pennpetro.
Any 'downstream' discussions, disputes or arguments are not the business of Pennpetro Energy Plc. A lot of time has passed since this situation was created and much has likely changed for those recipients who have been denied the issuance of shares rightly owed to them. It is not the responsibility of the Company or its directors to arbitrate beyond the contracted obligations between the Company and the Pledgor.
This is central to re-establishing trust and transparency at the Company, without which we cannot expect to be treated as an honest and good faith partner for our shareholders, investors and the market as a whole. We are working in every way to ensure this happens.
We hope to see an end to the endless sniping at the Company by a small group of highly vocal individuals using social media and communication applications to coordinate hateful and libelous narratives to be spread as truth as widely as possible, for reasons known only to them. The Company is recording all such instances and will consider a Norwich Pharmac Order process against each, and every individual or organisation involved in this activity against the company and its personnel.
We are encouraged to read that, finally, this week the London Stock Exchange recognized this libelous behaviour as damaging to listed companies and the London financial markets and will too take action to protect both.
Outlook
Looking ahead, Pennpetro is carrying out due diligence on a number of strategic opportunities including in the United States and Canada. This is to supplement the already announced initial Ukrainian license. This potentially will provide geographical diversification and risk-management to the Company's operations going forward.
We will be holding a General Meeting on 23 December 2025, at which shareholders will be asked to mandate the Board and management to resolve the pledged shares issue, among other share related obligations, which once resolved should see PPP coming back to trading stronger and better than before.
Shareholders should know that it is of critical importance to the future of this Company that they vote to provide the headroom needed if Pennpetro Energy Plc is to move forward.
The Board and I are grateful for the patience and support shown by our stakeholders throughout this period of uncertainty. We remain focused on returning Pennpetro Energy to trading, restoring value, and building a stronger foundation for long-term growth, with shareholder support and market confidence.
Source: Pennpetro Energy
