Forza Petroleum : Q3 2022 Interim Financial Statements

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2022 AND 2021

FORZA PETROLEUM LIMITED

Consolidated Financial Statements

For the three and nine months ended September 30, 2022 and 2021

Table of contents

	Page
Consolidated Statements of Profit and Other Comprehensive Income	2
Consolidated Statements of Financial Position	3
Consolidated Statements of Changes in Equity	4
Consolidated Statements of Cash Flows	5
Notes to the Consolidated Financial Statements	6

In accordance with subsection 4.3(3) of National Instrument 51-102 - Continuous Disclosure Obligations, Forza Petroleum Limited discloses that its auditors have not reviewed the unaudited condensed consolidated interim financial statements as at and for the three and nine months ended September 30, 2022 and 2021.

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FORZA PETROLEUM LIMITED

Consolidated Financial Statements

For the three and nine months ended September 30, 2022 and 2021

Consolidated Statements of Profit and Other Comprehensive Income

		Three months ended		Nine months ended
$000s	Note		September 30			September 30
2022	2021		2022	2021
Revenue		85,073	48,727	266,199	130,129
Royalties		(34,832)	(19,951)	(108,970)	(53,330)
Net revenue		50,241	28,776	157,229	76,799
Operating expense	5, 6	(9,058)	(7,256)	(26,998)	(20,736)
Depreciation, depletion and amortization	(12,481)	(8,810)	(37,256)	(26,042)
General and administration expense	18	(1,975)	(1,479)	(5,090)	(3,489)
Other income	501	736	89	5,561
Gain on deconsolidation of subsidiary	21	-	-	-	15,725
Change in fair value of contingent consideration	11a	(1,711)	(3,752)	(5,012)	(12,172)
Profit from operations		25,517	8,215	82,962	35,646
Finance (expense) / income	20	(159)	386	(279)	(55)
Foreign exchange losses		(33)	(56)	(8)	102
Profit before income tax		25,325	8,545	82,675	35,693
Income tax expense	18	(1,654)	(973)	(5,229)	(2,605)
Profit for the period		23,671	7,572	77,446	33,088
Comprehensive income for the period		23,671	7,572	77,446	33,088
Earnings per share (basic and diluted)	15	0.04	0.01	0.13	0.06

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FORZA PETROLEUM LIMITED

Consolidated Financial Statements

For the three and nine months ended September 30, 2022 and 2021

Consolidated Statements of Financial Position

		September 30	December 31
$000s	Note	2022	2021
Non-current assets	5
Intangible assets	47,666	47,748
Property, plant and equipment	6	468,108	469,517
Deferred tax assets		246	241
		516,020	517,506
Current assets	7
Inventories	12,660	9,205
Trade and other receivables	8	70,951	34,481
Other current assets	9	4,745	1,861
Cash and cash equivalents	10	53,646	24,672
		142,002	70,219
Total assets		658,022	587,725
Current liabilities	11
Trade and other payables	89,236	24,803
		89,236	24,803
Non-current liabilities	11
Trade and other payables	-	67,640
Retirement benefit obligation	13	2,302	2,242
Decommissioning obligation	21,536	26,213
		23,838	96,095
Total liabilities		113,074	120,898
Equity	14
Share capital	1,365,467	1,363,221
Reserves	16	21,730	23,301
Accumulated remeasurement of defined benefit obligation,
net of income tax		(6,166)	(6,166)
Accumulated deficit		(836,083)	(913,529)
Total equity		544,948	466,827
Total equity and liabilities		658,022	587,725

The consolidated financial statements were approved by the Board of Directors and authorized for issue on November 8, 2022.

On behalf of the Board of Directors:

signed		signed
Sami Zouari		Peter Newman
Director		Director

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FORZA PETROLEUM LIMITED

Consolidated Financial Statements

For the three and nine months ended September 30, 2022 and 2021

Consolidated Statements of Changes in Equity

					Accumulated
					remeasurement of
				Accumulated	defined benefit
$000s	Note	Share capital	Reserves	deficit	obligation	Total equity
Balance at January 1, 2021		1,362,633	23,182	(923,799)	(5,637)	456,379
Profit for the period	14, 16	-	-	33,088	-	33,088
Shares issued for Long Term Incentive Plan ("LTIP")	588	(588)	-	-	-
Share based payment expense		-	476	-	-	476
Balance at September 30, 2021		1,363,221	23,070	(890,711)	(5,637)	489,943
Loss for the period		-	-	(22,818)	-	(22,818)
Share based payment compensation	16	-	231	-	-	231
Loss on defined benefit obligation, net of tax		-	-	-	(529)	(529)
Balance at December 31, 2021		1,363,221	23,301	(913,529)	(6,166)	466,827
Profit for the period		-	-	77,446	-	77,446
Shares and cash issued for LTIP	14, 16	2,246	(3,044)	-	-	(798)
Share based payment compensation	16	-	1,473	-	-	1,473
Balance at September 30, 2022		1,365,467	21,730	(836,083)	(6,166)	544,948

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