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Press release from Marketwire

Caza Oil & Gas Announces Third Quarter Results and Provides Operational Update

Thursday, November 15, 2012

Caza Oil & Gas Announces Third Quarter Results and Provides Operational Update02:00 EST Thursday, November 15, 2012HOUSTON, TEXAS--(Marketwire - Nov. 15, 2012) - Caza Oil & Gas, Inc. ("Caza" or the "Company") (TSX:CAZ)(AIM:CAZA), is pleased to provide its unaudited financial and operational results for the three-months ended September 30, 2012.Unaudited Third Quarter Financial ResultsCaza's production increased 2% to 21,999 Boe for the three-month period ended September 30, 2012, from 21,476 Boe for the comparative period in 2011. This represents an average daily production rate increase of 6 Boe/d to 239 Boe/d, as compared to 233 Boe/d for the comparative period. The modest increase occurred despite the sale of the San Jacinto assets in Midland County, Texas, that closed effective July 31, 2012 (the "sale of the San Jacinto assets").Caza's revenues from oil and gas sales decreased 9% to $902,622 for the three-month period ended September 30, 2012, from $995,466 for the comparative period in 2011. The decrease in revenues was primarily due to the 11% decrease in commodity prices from the comparative period and the sale of the San Jacinto assets.The average combined price received by Caza decreased 11% to $41.03 per Boe during the three-month period ended September 30, 2012, from $46.35 per Boe during the comparative period in 2011, due to lower commodity prices.Caza's NGL production increased 11% to 8,818 bbls for the three-month period ended September 30, 2012, from 7,956 bbls for the comparative period in 2011. The Company's oil and NGL production has increased to 40% of the Company's combined oil and natural gas production in the nine-month period ended September 30, 2012 from 37% in the nine-month period ended September 30, 2011, further mitigating the low US gas price. The Company's ratio of oil and NGL production versus natural gas continues to increase, but was slowed due to the sale of the San Jacinto assets in the Third Quarter 2012.Caza had a cash balance of $12,776,306 as of September 30, 2012, as compared to $4,715,163 at June 30, 2012. Caza's working capital balance at September 30, 2012, was $7,537,645 as compared to $4,908,143 at June 30, 2012. The increase in Caza's working capital balance is due primarily to proceeds of $6.1MM received from the sale of the San Jacinto assets.Third Quarter Operational Results and Recent EventsThe Caza Ridge 14 State No. 3H horizontal Bone Spring well reached total measured depth in early October 2012, and was successfully fracture stimulated in the 3rd Bone Spring Sand. Flowback of the well began on October 27, 2012. Thus far, the peak producing rate day was 1,060 bbls/d of oil and 1,212 Mcf/d, which equates to 1,262 Boe/d. The last five days of production have averaged 1,047 bbls/d of oil and 1,184 Mcf/d, which equates to 1,244 Boe/d. Both oil and gas are already going to sales. Caza currently has a 45% working interest (35.213% net revenue interest) before payout and a 58.75% working interest (45.972% net revenue interest) after payout in the Caza Ridge 14 State No. 3H well.The Forehand Ranch 27 State Com No. 1H horizontal well has reached the intended total measured depth of approximately 11,961 feet and log data has been obtained. The lateral section was drilled in the target objective 2nd Bone Spring Sand. After correlating and reviewing log data, which indicates multiple shows for oil and natural gas throughout the 2nd Bone Spring lateral, Caza is prepared to recommend the fracture stimulation procedure to its partners. The frac job is tentatively scheduled to occur on or around December 4, 2012. Once the well is fracture stimulated and the well is flowing back, the market will be updated accordingly. Caza has a 54.83% working interest before payout (42.02% net revenue interest) and a 63.00% working interest after payout (48.27% net revenue interest) in the Forehand Ranch 27 State Com No. 1H well.The Bradley "29" Fed Com No. 3H horizontal well reached total measured depth of approximately 12,690 feet in early June 2012, and was successfully fracture stimulated and completed in the 2nd Bone Spring Sand on June 14, 2012. The average daily production rate over the first thirty days was 281 bbls/d of oil and 359 Mcf/d, which equates to 341 Boe/d. This is a good result, and the production profile and all costs associated with drilling, completing and producing this well were in line with Company expectations. Caza has a 20% working interest and a 15% net revenue interest in the Bradley "29" Fed Com No. 3H well.The Quail "16" State No. 3H horizontal well, operated by Fasken Oil and Ranch, Ltd. ("Fasken") reached total measured depth of approximately 14,987 feet in August, and was successfully fracture stimulated and completed in the 3rd Bone Spring Sand beginning on September 11, 2012. The average daily production rate over the first thirty days was 617 bbls/d of oil and 449 Mcf/d, which equates to 692 Boe/d. This was a good result and is significant, because the well offsets the Company's Lynch property and helped de-risk the Company's acreage position while providing valuable information for future drilling at Lynch. Caza has a 0.25% working interest and an approximate 0.1875% net revenue interest in the Quail "16" State No. 3H well.The Company announced the successful sale of the San Jacinto assets, which included the Caza Elkins 3401 and 3402 wells. The price received was $6.1MM and exceeded Caza's internal matrix for return on investment and capital employment.W. Michael Ford, Chief Executive Officer commented:"Caza continued its positive operational and financial performance in the third quarter of 2012.""The proceeds from the sale of the San Jacinto property opened several doors for the Company, especially on the exploration front. Management used a portion of the proceeds to drill the Caza Ridge and Forehand Ranch horizontal Bone Spring test wells at our Copperline and Forehand Ranch prospects respectively. We are very pleased to report that oil and natural gas from the Caza Ridge well are already going to sales, and we continue to be impressed with the well's production results. We also look forward to fracture stimulating the Forehand Ranch well and bringing it online in December. The Caza Ridge well alone has made up for and surpassed any decreases in production, revenue and cash flow caused in this quarter by the sale of the San Jacinto assets and will provide a substantial increase to our oil to natural gas ratio in the fourth quarter.""The horizontal Bone Spring play has proven to be a successful venture for Caza thus far, as we also participated as a non-operator in the Bradley 29 and Quail 16 State horizontal Bone Spring wells. Knowledge gained from the successful results of these wells has de-risked some of Caza's acreage position in the play, while also providing the Company with valuable information for future drilling from the Company's inventory of Bone Spring prospects. In addition to Copperline, Forehand Ranch, Quail Ridge and Bradley 29, Caza has five other horizontal Bone Spring prospects under lease including: Lynch, Lennox, Mad River, Two Mesas and Azotea Mesa. This gives the Company approximately 3,300 net acres in the play with many potential drillsite locations.""In addition, positive reports continue to come from elsewhere in the Bone Spring play. In order to build on the momentum created by the Company's recent successes, management is preparing the Lennox prospect in Lea County, New Mexico for drilling as early as mid-January 2013."Copies of the Company's unaudited financial statements for the third quarter ended September 30, 2012, and the accompanying management's discussion and analysis are available on SEDAR at and the Company's website at CazaCaza is engaged in the acquisition, exploration, development and production of hydrocarbons in the following regions of the United States of America through its subsidiary, Caza Petroleum, Inc.: Permian Basin (West Texas and Southeast New Mexico) and Texas and Louisiana Gulf Coast (on-shore).In accordance with AIM Rules - Guidance Note for Mining, Oil and Gas Companies, the information contained in this announcement has been reviewed and approved by Anthony B. Sam, Vice President Operations of Caza who is a Petroleum Engineer and a member of The Society of Petroleum Engineers.ADVISORY STATEMENTInformation in this news release that is not current or historical factual information may constitute forward-looking information within the meaning of securities laws. Such information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "schedule", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "intend", "could", "might", "should", "believe", "develop", "test", "anticipation" and similar expressions. In particular, information regarding the depth, timing and location of future drilling, intended production testing and the Company's future working interests and net revenue interests in properties contained in this news release constitutes forward-looking information within the meaning of securities laws.Implicit in this information, are assumptions regarding the success and timing of drilling operations, rig availability, projected revenue and expenses and well performance. These assumptions, although considered reasonable by the Company at the time of preparation, may prove to be incorrect. Readers are cautioned that actual future operations, operating results and economic performance of the Company are subject to a number of risks and uncertainties, including general economic, market and business conditions and could differ materially from what is currently expected as set out above. In addition, the geotechnical analysis and engineering to be conducted in respect of certain wells may not be complete. Future flow rates from wells may vary, perhaps materially, and wells may prove to be technically or economically unviable. Any future flow rates will be subject to the risks and uncertainties set out herein.For more exhaustive information on these risks and uncertainties you should refer to the Company's most recently filed annual information form which is available at and the Company's website at You should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While we may elect to, we are under no obligation and do not undertake to update this information at any particular time except as may be required by securities laws.GLOSSARY OF ABBREVIATIONSbblone barrel, each barrel representing 34.972 Imperial gallons or 42 U.S. gallonsMcf Mcf/done thousand cubic feet of natural gas one thousand cubic feet of natural gas per daybbls/dbarrels per dayBoebarrels of crude oil equivalent derived by converting natural gas to crude oil in the ratio of six thousand cubic feet of natural gas to one barrel of crude oilMcfeone thousand cubic feet of natural gas equivalent derived by converting crude oil to natural gas in the ratio of one barrel of oil into six thousand cubic feet of natural gasBoe/dbarrels of crude equivalent per dayNGLnatural gas liquidsBoe may be misleading, particularly if used in isolation. A Boe conversion ratio of 6 Mcf:1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the well head.Caza Oil & Gas, Inc.Condensed Consolidated Statement of Financial Position(Unaudited)(In United States dollars)September 30, 2012December 31, 2011AssetsCurrentCash and cash equivalents$ 12,776,306$ 10,204,176Accounts receivable2,039,7233,680,998Prepaid and other98,104312,70414,914,13314,197,878Exploration and evaluation assets (Note 2)7,658,980 4,941,256Petroleum and natural gas properties and equipment (Note 3)20,012,12229,419,741$ 42,585,235$ 48,558,875LiabilitiesCurrentAccounts payable and accrued Liabilities$ 7,376,488 $ 5,352,445Decommissioning liabilities (Note 4)795,8281,052,0918,172,3166,404,536Shareholders' EquityShare capital75,064,21675,064,216Share based compensation reserve9,552,5829,430,656Deficit(49,521,359)(42,747,681) Equity attributable to owners of the Company35,095,43941,747,191 Non-controlling interests(682,520)407,14834,412,91942,154,339$ 42,585,235$ 48,558,875See accompanying notes to the condensed consolidated financial statementsCaza Oil & Gas, Inc.Condensed Consolidated Statements of Net Loss and Comprehensive Loss(Unaudited)Three months endedNine months endedSeptember 30,September 30,(In United States dollars)2012201120122011Revenue and otherPetroleum and natural gas$ 902,622$ 995,466$ 3,389,045$ 2,883,245Interest income1,9531,8362,74614,875904,575997,3023,391,7912,898,120ExpensesProduction470,165257,5041,583,036609,239General and administrative1,387,0031,260,1034,293,0223,756,102Depletion and depreciation605,562733,9942,010,5712,132,729Financing costs - unwinding of the discount3,8193,16912,08516,363Other expense (income)-9,821(176,004)(86,371)Development and production impairment (note 3)-72,2522,688,506145,435Exploration and evaluation impairment-1,683,930-4,600,148Loss on disposal of assets634,019-634,019-Abandonment expense8,005-209,902-3,108,5734,020,77311,255,13711,173,645Net loss and comprehensive loss for the period(2,203,998)(3,023,471)(7,863,346)(8,275,525)Attributable to:Owners of the Company(1,898,578)(2,603,738)(6,773,678)(7,126,365)Non-controlling interests(305,420)(419,733)(1,089,668)(1,149,160)$ (2,203,998)(3,023,471)$ (7,863,346)(8,275,525)Net loss per share- basic and diluted(0.01)(0.02)(0.05)(0.05)Weighted average shares outstanding- basic and diluted (1)164,743,667164,400,380164,743,667164,350,478All options and warrants have been excluded from the diluted loss per share computation as they are anti-dilutive.See accompanying notes to the condensed consolidated financial statementsCaza Oil & Gas, Inc.Condensed Consolidated Statement of Cash Flows(unaudited)Nine months endedSeptember 30,(In United States dollars)20122011OPERATINGNet loss for the period(7,863,346)(8,275,525)Adjustments for items not affecting cash:Depletion and depreciation2,010,5712,132,729Unwinding of the discount12,08516,363Share-based compensation121,92644,482Development and production impairment (Note 3)2,688,506145,435Loss on disposal of assets (Note 3)634,019-Exploration and evaluation impairment-4,600,148Other income(176,004)(54,185)Interest income(2,746)(14,875)Changes in non-cash working capital (Note 7a)2,746,88052,041Cash flows (used in) from operating activities171,891(1,353,387)FINANCINGInterest received2,74614,875Proceeds from issuance of shares-11,060Changes in non-cash working capital (Note 7a)-(9,310)Cash flow from financing activities2,74616,625INVESTINGExploration and evaluation expenditures(4,159,360)(8,030,035)Development and production expenditures(1,687,956)(5,794,939)Purchase of office furniture and equipment(1,944)(18,879)Joint interest billings partner reimbursements1,166,215-Proceeds from sale and disposal of assets5,947,500-Changes in non-cash working capital (Note 7a)1,133,038(2,673,887)Cash flows used in investing activities2,397,493(16,517,740)INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS2,572,130 (17,854,502)CASH AND CASH EQUIVALENTS, BEGINNING OF THE PERIOD10,204,176 33,885,900CASH AND CASH EQUIVALENTS, END OF THE PERIOD12,776,306 16,031,398Supplementary information (Note 7)See accompanying notes to the condensed consolidated financial statementsCaza Oil & Gas, Inc.Condensed Consolidated Statement of Changes in Equity(Unaudited)For the nine months periods ended September 30, (in United States dollars)20122011Share CapitalBalance, Beginning of Period75,064,21675,013,680Common Shares Issued-18,802Balance, End of Period75,064,21675,032,482Share based compensation reserveBalance, Beginning of Period9,430,6569,363,598Exercise of stock options-(7,742)Share-Based Compensation121,92644,482Balance, End of Period9,552,5829,400,338DeficitBalance, Beginning of Period(42,747,681)(22,700,262)Net loss, allocated to owners of the Company(6,773,678)(7,126,365)Balance, End of Period(49,521,359)(29,826,627)Non-Controlling InterestsBalance, Beginning of Period407,1483,636,761Net loss allocated to non-controlling interests(1,089,668)(1,149,160)Balance, End of Period(682,520)2,487,601Total Shareholders' Equity34,412,91957,093,794See accompanying notes to the condensed consolidated financial statements1. Basis of PresentationCaza Oil & Gas, Inc. ("Caza" or the "Company") was incorporated under the laws of British Columbia on June 9, 2006 for the purposes of acquiring shares of Caza Petroleum, Inc. ("Caza Petroleum"). The Company and its subsidiaries are engaged in the exploration for and the development, production and acquisition of, petroleum and natural gas reserves. The Company's common shares are listed for trading on the TSX (symbol "CAZ") and AIM stock exchanges (symbol "CAZA"). The corporate headquarters of the Company is located at 10077 Grogan's Mill Road, Suite 200, The Woodlands, Texas 77380 and the registered office of the Company is located at Suite 1700, Park Place, 666 Burrard Street Vancouver, British Columbia, V6C 2X8. Caza's functional and presentational currency is the United States ("U.S.") dollar as the majority of its transactions are denominated in the currency. The condensed consolidated financial statements (the "Financial Statements") were prepared in accordance with IAS 34 - Interim Financial Reporting using accounting policies consistent with International Financial Reporting Standards ("IFRS").These Financial Statements should be read in conjunction with the Company's audited annual consolidated financial statements as at and for the year ended December 31, 2011, which outline the Company's significant accounting policies in Note 2 thereto, as well as the Company's critical accounting judgements and key sources of estimation uncertainty, which have been applied consistently in these Financial Statements. The note disclosure requirements of annual consolidated financial statements provide additional disclosures to that required for interim unaudited condensed consolidated financial statements.These Financial Statements were approved for issuance by the Board of Directors on November 13, 2012.2. Exploration and evaluation assets ("E&E")September 30, 2012December 31, 2011Balance, beginning of the period$ 4,941,256$ 7,371,582Additions to E&E assets4,163,2559,271,394Transfers to property, plant and equipment(6,327)(5,361,725)Joint interest billings partner reimbursements(1,166,215)-Sale and disposal of assets (Note 3)(272,989)-E&E impairment-(6,339,995)Balance, end of the period$ 7,658,980$ 4,941,256Included in the $4,163,255 additions to E&E are the costs incurred during the three month period ended September 30, 2012 for the drilling of the Caza Ridge 14 State #3H and the Forehand Ranch 27 State Com # 1H. During the year ended December 31, 2011, the Company expensed $6,339,995 of exploration and evaluation costs of which $2,594,801 related to the Marian Baker et al, No 1 drilled during the three months ended March 31, 2011 that did not encounter hydrocarbons as well as an impairment to the valuation of the Las Animas prospect in the amount of $1,146,226. The balance of the costs expensed related to other leasehold and prospect expenditures that have expired or no longer provide value for the Company. 3. Petroleum and natural gas properties and equipmentDevelopment & Production AssetsCorporate AssetsTotalCostBalance, December 31, 2011$ 45,223,073$ 826,882$ 46,049,955Additions1,691,5671,9441,693,511Disposal of assets(7,643,197)-(7,643,197)Transfers from E&E6,327-6,327Balance, September 30, 2012$ 39,277,770$ 828,826$ 40,106,596Development & Production AssetsCorporate AssetsTotalAccumulated Depletion and DepreciationBalance, December 31, 2011$ 15,943,179$ 687,035$ 16,630,214Depletion and depreciation1,930,04280,5292,010,571Disposal of assets(1,234,817)-(1,234,817)Impairment2,688,506-2,688,506Balance, September 30, 2012$ 19,326,910$ 767,564$ 20,094,474Carrying amountsAt December 31, 2011$ 29,279,894$ 139,847$ 29,419,741At September 30, 2012$ 19,950,860$ 61,262$ 20,012,122Future development costs of proved undeveloped reserves of $21,758,600 were included in the depletion calculation at September 30, 2012 (December 31, 2011 - $30,722,900). The Company did not note any indications of impairment as at September 30, 2012. The Company performed an impairment test at March 31, 2012 to assess whether the carrying value of its petroleum and natural gas properties exceeds fair value. An impairment in the amount of $2,688,506 was required to be recorded as at March 31, 2012 primarily due to changes in the estimates of expected future natural gas prices used in determining the fair value. The March 31, 2012 impairment was recognized using a 16% discount rate (December 31, 2011 - 16%). On July 18, 2012, the Company sold the San Jacinto property which includes the Caza Elkins 3401 and 3402 wells for consideration of $5,947,500 net of the Company incurred brokerage fees in the amount of $152,500 associated with the sale. There were also several other small properties that were disposed during the quarter resulting in aggregate of $6,408,390 net of accumulated depletion from Development & Production Assets, $272,989 of E&E assets and $99,850 of decommissioning costs which were also associated with the disposals. The resulting impact of these sales is a loss on disposal of $634,019. The Company had an 85% working interest in the Caza Elkins 3401 with a 63.75% net revenue interest. In all subsequent wells on the San Jacinto property, including the Caza Elkins 3402 well and the remainder of the leases, Caza had a 75% working interest and a 56.25% net revenue interest. The closing date of the transaction was July 31, 2012.4. Decommissioning LiabilitiesThe following table presents the reconciliation of the beginning and ending aggregate carrying amount of the obligation associated with the retirement of oil and gas properties:September 30, 2012Year ended December 31, 2011Decommissioning liabilities, beginning of the period$ 1,052,091$ 807,754Obligations incurred94,693131,318Revision in estimated cash flows and discount rate(20,761)171,100Obligations settled/disposals(342,280)(79,898)Unwinding of the discount12,08521,817Decommissioning liabilities, end of the period$ 795,828$ 1,052,091The undiscounted amount of cash flows, required over the estimated reserve life of the underlying assets, to settle the obligation, adjusted for inflation, is estimated at $1,187,167 (December 31, 2011 - $1,533,283). The obligation was calculated using a risk free discount rate of 2.5 percent and an inflation rate of 3 percent. It is expected that this obligation will be funded from general Company resources at the time the costs are incurred with the majority of costs expected to occur between 2012 and 2030.5. Related Party TransactionsThe aggregate amount of expenditures made to related parties:Singular Oil & Gas Sands, LLC ("Singular") is a related party as it is a company under common control with Zoneplan Limited, which is a significant shareholder of Caza. Singular participates in the drilling of the Matthys McMillan Gas Unit #2 and the O B Ranch #1 and 2 wells located in Wharton County, Texas. Under the terms of that agreement, Singular paid 14.01% of the drilling costs through completion to earn a 10.23% net revenue interest on the Matthys McMillan Gas Unit #2 well and paid 12.5% of the drilling costs to earn a 6.94% net revenue interest on the O B Ranch #1 well. Under the terms of the agreement of the O B Ranch #2 Singular paid 9.375% of the drilling costs to earn approximately 6.8% net revenue interest. This participation was in the normal course of Caza's business and on the same terms and conditions to those of other joint interest partners. Singular owes the Company $22,921 in joint interest partner receivables as at September 30, 2012 (December 31, 2011 - $492,240). All related party transactions are in the normal course of operations and have been measured at the agreed to exchange amounts, which is the amount of consideration established and agreed to by the related parties and which is comparable to those negotiated with third parties.6. Commitments and ContingenciesAs of September 30, 2012, the Company is committed under operating leases for its offices and corporate apartment in the following aggregate minimum lease payments which are shown below:OperatingCapital2012$67,639$4,317,8302013$271,965-2014$258,075-2015$184,402-7. Supplementary Informationnet change in non-cash working capitalSeptember 30,September 30,20122011Provided by (used in)Accounts receivable1,641,275241,553Prepaid and other214,600170,412Accounts payable and accrued liabilities2,024,043(3,043,121)3,879,918(2,631,156)Summary of changesOperating2,746,88052,041Investing1,133,038(2,673,887)Financing-(9,310)3,879,918(2,631,156)(b) supplementary cash flow informationSeptember 30, 2012 September 30, 2011Interest paid$ -$ -Interest received2,74614,875(c) cash and cash equivalentsSeptember 30, 2012 December 31, 2011Cash on deposit$ 4,042,084$ 272,699Money market instruments8,734,2229,931,477Cash and cash equivalents$ 12,776,306$ 10,204,176The money market instruments bear interest at a rate of 0.1% as at September 30, 2012(December 31, 2011 - 0.033%). 8. Financial Instruments Credit Risk Credit risk arises when a failure by counter parties to discharge their obligations could reduce the amount of future cash inflows from financial assets on hand at the consolidated statement of financial position date. A majority of the Company's financial assets at the consolidated statement of financial position date arise from natural gas liquids and natural gas sales and the Company's accounts receivable that are with these customers and joint interest participants in the oil and natural gas industry. Industry standard dictates that commodity sales are settled on the 25th day of the month following the month of production. The Company's natural gas and condensate production is sold to large marketing companies. Typically, the Company's maximum credit exposure to customers is revenue from two months of sales. During the period ended September 30, 2012, the Company sold 79.6% (September 30, 2011 - 62.5%) of its natural gas and condensates to a single purchaser. These sales were conducted on transaction terms that are typical for the sale of natural gas and condensates in the United States. In addition, when joint operations are conducted on behalf of a joint interest partner relating to capital expenditures, costs of such operations are paid for in advance to the Company by way of a cash call to the partner of the operation being conducted.Caza management assesses quarterly whether there should be any impairment of the financial assets of the Company. At September 30, 2012, the Company had overdue accounts receivable from certain joint interest partners of $33,795 which were outstanding for greater than 60 days and $152,850 that were outstanding for greater than 90 days. At September 30, 2012, the Company's two largest joint interest partners represented approximately 6% and 5% of the Company's receivable balance (September 30, 2011 - 20% and 11% respectively). The maximum exposure to credit risk is represented by the carrying amount on the consolidated statement of financial position of cash and cash equivalents, accounts receivable and deposits. FOR FURTHER INFORMATION PLEASE CONTACT: Contact Information: Caza Oil & Gas, Inc.Michael FordCEO+1 432 682 7424Caza Oil & Gas, Inc.John McGoldrickChairman+65 9731 7471 (Singapore)www.cazapetro.comCenkos Securities plcJon Fitzpatrick+44 20 7397 8900 (London)Cenkos Securities plcNeil McDonald+44 131 220 6939 (Edinburgh)VSA Capital LimitedAndrew Raca+44 20 3005 5004VSA Capital LimitedMalcolm Graham Wood+44 20 3005 5012M: CommunicationsPatrick d'Ancona+44 20 7920 2330M: CommunicationsChris McMahon+44 20 7920 2330