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Crown Energy: Crown Energy AB: Year-end report 2015

Fourth quarter 2015

* No sales were recognised.
* Operating income came in at SEK 140 thousand (0) and the operating loss
totalled SEK -2,361 thousand (-3,370), consisting primarily of employee
benefit expenses and other external costs.
* Loss after tax was SEK -3,733 thousand (-6,489), corresponding to SEK -0.07
per share (-0.23).
* Investments exploration and evaluation assets totalled SEK 655 thousand

Full year 2015

* No sales were recognised.
* Operating income for 2015 totalled SEK 73 thousand (0). Operating expenses
totalled SEK -8,644 thousand (-9,448), consisting primarily of employee
benefit expenses and other external costs.
* Loss after tax was SEK –15,577 thousand (-21,859), corresponding to SEK
-0.35 per share (-0.76).
* Investments in exploration and evaluation assets for the period amounted to
SEK 3,688 thousand (3,830), excluding translation differences and
investments in the form of acquisitions.
* In Q1 2015, the Company took over the shares of the British company Simbo
Petroleum No.2 Ltd, which holds 40.5 per cent of the Block 2B licence in
South Africa. The acquisition increased the Company’s exploration and
evaluation assets in the form of licences by a total of SEK 55,355

CEO statement

Dear shareholders and investors,

For Crown Energy, 2015 was a very eventful year, and the world market price
for crude oil has been challenging to say the least. We acquired the company
holding shares in licence block 2B in South Africa over the year and
proceeded to farm out this asset to the Lundin group company Africa Energy in
a transaction with exciting ramifications for Crown Energy. I also took
office as CEO of the Company during the year. Focus on staying the course and
concentration on innovation should ensure that Crown Energy's journey will
remain an exciting one. We are constantly adapting to current market
conditions and working on finding more interesting transactions involving our
assets. We are also assessing options for creating a cash flow generating
segment in the future.

The oil price is slowing down the oil industry in general, but creates scope
for new transactions as well. The price collapse began in 2014 and initially
put a major check on transactions within the industry. But we have been able
to see some light at the end of the tunnel on the basis of a couple of
transactions that directly or indirectly affected us. One example is Maersk,
which farmed in Africa Oil's assets in a major transaction announced in Q4
last year. But our transaction with Africa Energy in Block 2B is in any
event, a sign that several transactions between oil industry companies are
starting to be made again.

Business decisions that affected the Company’s performance

Since Q3, we have worked hard to take a second look at Crown Energy’s existing
business model. We are adapting to the current climate, and are prepared to
be capable of operating both in the event of lower oil prices and/or if they
are back on the rise. As a result, we are assessing options for incorporating
cash flow generating operations as well as continuing improvements to find
farm-in partners for existing assets. The activities undertaken with respect
to our capital structure in Q2, the farm-out in Q4 and finally the
capitalisation now in the New Year enabled us to continue our efforts to take
the next step in strengthening the Company’s financial position going
forward. It will be extremely important to have a strong financial position
in these times of continuing oil price uncertainty. We want to have our place
in the market, where the appetite from major oil companies has been low over
the past one- to two-year period, but where we are now seeing signs of some
changes in attitude. It is too soon to call it a trend reversal, but we
expect an increase in the level of activity in 2016 and we want to be
prepared for both purchases and sales. We will be on the scene when things
get moving again, as we have positioned ourselves accordingly now.


Crown Energy is well positioned with a balanced portfolio of exciting projects
that have great potential for development. We have continued our process of
change with cost cuts on things that are not absolutely necessary, but we are
also picking up the pace in areas which may lead to new financiers or
partners. In our contact with companies in our sphere of influence, we are
now seeing a clear change in the view of the future, mainly on the oil price
outlook. Many people we are talking to forecast an oil price upswing in 2016
or early 2017. For that reason, there are several stakeholders who think that
interesting investments can be made in oil and gas at this time. If you
speculate that we are at or close to the bottom when it comes to oil prices,
then you can get good prices on transactions. We are noticing a major change
in attitude across the industry at the moment. And that is why we think those
who will farm in, or invest in our projects in another way, will improve them
and identify their potential value, and together we can enjoy common gains
when and if a reversal of the current occurs as some are speculating. We
continue to be well equipped with assets located in geologically attractive
areas with more reasonable development costs than many other projects around
the world.

We have just finished raising some capital, and our immediate capital needs
are therefore met. In addition, we are continuing to conduct several
processes in parallel which should be capable of leading to substantial
financial breakthroughs for Crown Energy. These processes must fit in well
with the slightly revised strategy the Company is pursuing. We will continue
to work on wrapping up one or more of these ongoing processes and thus create
solid prospects for a long-term and robust Crown Energy. We hope to have some
concrete news for the market and our shareholders in the near future. As with
all business, nothing is a done deal until it is on paper and money is in the

We think 2016 will be an interesting and exciting year and we continue to have
confidence in our assets, as well as confidence that we will be able to
capitalise on them. We believe we will be able to create value for you, our

Andreas Forssell

CEO, Crown Energy AB (publ)

Crown Energy AB (publ) discloses above information pursuant to the Swedish
Securities Market Act and/or the Swedish Financial Instruments Trading Act.
The information was released for publication on February 11, 2016, 8:30 AM.


Please contact Andreas Forssell, CEO, Crown Energy AB

+46 8 400 207 20

+46 707 51 41 84


Crown Energy is an international oil and gas company engaged in exploration in
Africa and Middle East. Growth is created by developing assets in early
stages and then maximizing value by introducing appropriate industry partners
in the development and production stages. For more information please visit

Författare NGN

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