TIDMUKOG
RNS Number : 9881X
UK Oil & Gas Investments PLC
28 February 2017
UK Oil & Gas Investments PLC
("UKOG" or the "Company")
Final Results
For the year ended 30 September 2016
UK Oil & Gas Investments PLC (London AIM and NEX: UKOG)
announces its audited results for the year ended 30 September 2016.
The full results will shortly be posted to shareholders and made
available on the Company's website: www.ukogplc.com.
HIGHLIGHTS FOR THE YEAR
-- The Horse Hill-1 oil discovery was the first ever to flow
substantial oil from the Kimmeridge Limestones ("KL"). It achieved
an aggregate stabilised natural flow rate of 1,365 barrels of oil
per day ("bopd") from two KL reservoirs (KL3 and KL4), a record
rate for any UK onshore discovery well.
-- Via two acquisitions, UKOG became the largest licence holder
in the south-east of the UK, holding 942 gross km(2), a 113%
increase from the previous reporting period.
-- UKOG's acreage interests are independently calculated to
contain approximately 20% of the Kimmeridge oil in place ("OIP")
over the entire Weald Basin, with a gross P50 Kimmeridge OIP within
Company licences of 17.12 billion barrels
-- We acquired regulatory permissions to drill two new KL wells
in 2017, Broadford Bridge-1 and Holmwood-1. Both are HH-1
geological look-alikes.
TARGETS FOR THE COMING YEAR
-- Demonstrate commercial production from one, possibly two, wells at Horse Hill by end 2018
-- Demonstrate that Horse Hill results can be replicated in
three other locations across the Weald Basin (two wells in 2017:
Broadford Bridge-1, Holmwood-1, one further in the first half of
2018)
-- Deliver production from each well as early as permitting allows
-- Further consolidate our holdings, where possible, and acquire further prospective acreage
-- Planning permissions are in place for the two 2017 wells, and
we expect to receive the necessary consents for the planned Horse
Hill production testing and drilling activities by the end of July
this year.
-- We are firmly on track to meet our end 2018 first production oil target.
For further information, please contact:
UK Oil & Gas Investments PLC
Stephen Sanderson / Kiran Morzaria Tel: 020 7440 0640
WH Ireland (Nominated Adviser and Broker)
James Joyce / James Bavister Tel: 020 7220 1666
Square 1 Consulting (Public Relations)
Brian Alexander / David Bick Tel: 020 7929 5599
STRATEGIC REPORT FOR THE YEARED 30 SEPTEMBER 2016
STATEMENT FROM THE CHAIRMAN
UK Oil & Gas Investments PLC ("Group", "Company" or "UKOG")
is an oil and gas investment company which specialises in finding
and producing oil from previously unrecognised naturally-fractured
rocks in the Weald Basin of southern England. Our prime focus is
upon a new type of oil deposit within Kimmeridge Limestone rocks
which we are pushing towards commercial production.
In the three years since UKOG re-listed on AIM, chiefly boosted
by the success of our Kimmeridge Limestone oil results at Horse
Hill, we have become one of the most recognised and significant
players in the UK onshore sector.
Listed on London's Alternative Investment Market (AIM) and NEX
Exchange Growth Market (formerly the ISDX Growth Market), we have a
portfolio of direct and indirect investments in 12 UK onshore
exploration, appraisal, development and production assets. We are
the largest acreage holder in the south-east of England, with
assets covering 942 gross km(2) in the Weald and Purbeck-Wight
Basins. Our portfolio includes five undeveloped conventional oil
fields that we are moving towards near-term production. We generate
investment cash from our interests in two producing oil fields in
the region, Horndean and Avington.
At the heart of all that we do is minimising the impact of our
activities on local communities and having total respect for the
environment in which we live. We are determined to provide energy
for Britain while preserving the way of life and rural beauty of
our licence areas.
We believe that fully understanding our assets is fundamental to
our success. That is why we engage with global experts, such as
Nutech, Schlumberger and Xodus Group, together with internationally
recognised academic institutions such as Imperial College, London,
to provide us with the best advice to help turn our innovative
ideas and oil discoveries into economic reality.
Our interests in the new Kimmeridge Limestone oil play have the
potential for exceptional growth in the near and foreseeable
future. Our portfolio also provides a solid underpinning of
undeveloped oil discoveries, which along with our Kimmeridge
Limestone projects, are economically robust at current Brent crude
prices. We have a clear business plan, and the technical and
operational expertise to make UKOG into a significant onshore
producing oil company by end 2018.
The key highlights of 2016 include:
-- The Horse Hill-1 ("HH-1") oil discovery was the first ever to
flow substantial oil from the Kimmeridge Limestones ("KL"). It
achieved an aggregate stabilised natural flow rate of 1,365 barrels
of oil per day ("bopd") from two KL reservoirs (KL3 and KL4), a
record rate for any UK onshore discovery well.
-- Additionally, the HH-1 Portland reservoir flowed at a
stabilised pumped rate of 323 bopd, the highest rate recorded from
any UK Portland well. This rate was constrained by the pump's
capacity.
-- Via two acquistions, UKOG became the largest licence holder
in the south-east of the UK, holding 942 gross km(2), a 113%
increase from the previous reporting period.
-- Acquisition of the 300 km(2) PEDL234 licence made UKOG the
largest acreage holder within the KL play, with 672 gross km(2)
licenced within the basin's "sweet spot".
-- UKOG's acreage interests are independently calculated to
contain approximately 20% of the Kimmeridge oil in place ("OIP")
over the entire Weald Basin, with a gross P50 Kimmeridge OIP within
Company licences of 17.12 billion barrels
-- We acquired regulatory permissions to drill two new KL wells
in 2017, Broadford Bridge-1 and Holmwood-1. Both are HH-1
geological look-alikes.
-- UKOG consolidated and increased its interests in Horse Hill
(PEDL137/246) and Holmwood (PEDL143)
-- We submitted planning applications for two extensive
appraisal and development projects at Horse Hill and Markwells
Wood.
-- Contingent Resources from our conventional portfolio
increased to over 14 million barrels ("MMbbl") recoverable
(excludes any recoverable resources in the KL and the PEDL234
Godley Bridge Portland gas discovery). UKOG's net resources have
scope for significant growth via future inclusion of the KL.
The past year's activities and results are part of our goal to
deliver, by the end of 2018, at least one, but potentially three,
producing wells from the KL, plus production from the Horse Hill
Portland. The forward plan also aims to deliver, by the end of
2019, oil production from Markwells Wood and Arreton, plus KL oil
and Portland natural gas from the Godley Bridge discovery. If
successful, the Company is therefore poised to generate significant
cash flow in the short to medium-term.
Sadly, there was one event that marred UKOG's past year. In
November 2016, Jason Berry, our Commercial Director, died suddenly.
He was only 47. Jason was instrumental in securing the solid
financial footing that enabled us to deliver such a positive
performance. He was heavily involved in the Company's GBP4 million
share placing (May 2016). He will be missed. The most fitting
tribute we can pay to him is to build further upon the momentum and
success he helped to achieve. Our thoughts remain with his
family.
Strategy
UKOG's overall exploration and appraisal strategy is geared
towards oil extraction from previously unrecognised
naturally-fractured rocks within the Weald and the Purbeck-Wight
Basins of southern England. We have built a portfolio that has the
potential to generate significant returns for the Company and its
shareholders. It includes low-risk oil & gas production,
appraisal and development assets as well as high upside exploration
assets.
The key to this strategy is the Kimmeridge Limestone oil play,
which will continue to be our flagship for the foreseeable future.
Our aim is to demonstrate that the play can generate economic
returns and is repeatable over the entirety of our 672 gross km(2)
licence holding in the basin's "sweet spot". Whilst it is still
early days, our goals are simple, and we aim to:
-- Demonstrate commercial production from one, possibly two, wells at Horse Hill by end 2018
-- Demonstrate that Horse Hill results can be replicated in
three other locations across the Weald Basin (two wells in 2017:
Broadford Bridge-1, Holmwood-1, one further in the first half of
2018)
-- Deliver production from each well as early as permitting allows
-- Further consolidate our holdings, where possible, and acquire further prospective acreage
Planning permissions are in place for the two 2017 wells, and we
expect to receive the necessary consents for the planned Horse Hill
production testing and drilling activities by the end of July this
year. We are firmly on track to meet our end 2018 first production
oil target.
OPERATIONAL REVIEW AND OUTLOOK
Horse Hill
Onshore licences PEDL137 (99.3 km(2), net interest 31.2%) and
PEDL246 (43.6 km(2), net interest 31.2%) contain the Horse Hill
Portland and KL light oil discoveries. Long term production testing
is planned for 2017, to be followed by two further
appraisal/development wells in 2018.
Much of the Company's effort over the past year was focused on
the highly successful well tests at HH-1, and numerous follow-up
analyses. Although we had expected to encounter moveable light oil
in the Kimmeridge, the overall stabilised flow rate from the two
uppermost limestones (KL3 and KL4), which aggregated 1,365 bopd of
40 API gravity dry oil, were beyond our highest expectations. These
rates undeniably proved that the limestones could produce at
initial commercial rates. No evidence of depletion was indicated
from the test data analyses.
We followed up the flow tests with the acquisition of Angus
Energy's and Flowermay Limited's interests in the licences and the
submission of an extensive planning application to undertake
long-term production testing and drill further wells at Horse Hill.
By agreement with Surrey County Council, the determination of the
planning application will take place by the end of July following
Surrey's May 4(th) local council elections. The timing is in line
with our expectations to commence testing in 2017 and our future
projected first-oil target. The testing will last for approximately
six months.
The planned production tests are specifically designed to prove
access to a commercial volume of oil in place ("OIP").
Consequently, we expect to be able to make a declaration of
commerciality for the Kimmeridge and Portland following these test
results.
Analysis of the HH flow test data clearly demonstrates that
natural fracturing is the key parameter that enabled high natural
flow rates. We have learnt a great deal about the origin and
pattern of this natural fracture system and plan to collect core
and image log data from our new wells to help further this
understanding.
The HH-1 well test data also indicate that the fractures in KL3
and KL4 could be vertically connected. Consequently, we believe
that the well may have connected to a much larger
fractured-reservoir "tank" than the the two individual limestones
tested. It is, therefore, possible that natural fractures within
the shale may also have directly contributed to measured oil flow.
This observation has important and positive implications for the
quantity of oil that could be recovered from a Kimmeridge well. We
will, of course, know more after the upcoming long-term tests.
Following the production tests, we plan to drill a further
deviated KL wellbore, HH-1z, from the existing HH-1 wellbore, and
then a new well, HH-2, designed to access the Portland in both the
Horse Hill and Collendean Farm fault blocks. We may use the
opportunity to drill a HH-2 pilot hole down through the Kimmeridge
to take key core and image log data. These wells are designed to be
completed as future permanent oil producers, with first oil planned
towards the end of 2018, subject to the necessary regulatory
approvals and field development consent.
We also note with interest that, after the period, the nearby
Brockham field re-entry well, BR-X1z (UKOG indirect interest 1.41%)
recorded oil and gas shows throughout the Kimmeridge section. The
same observations were made throughout the Kimmeridge at HH-1.
Should the BR-X1z well encounter natural-fracturing and flow oil
from the Kimmeridge at commercial rates, it will provide further
support that the Horse Hill results can be replicated elsewhere,
and that the Horse Hill oil deposit likely extends to the north
across the 99.3 km(2) of PEDL137 to Brockham (PL235 8.9 km(2)).
Furthermore, a good Kimmeridge result would have strong positive
implications for our Holmwood well, only 8 km west of HH-1. UKOG,
with its extensive 672 km(2) acreage holding in the Weald's
"sweet-spot", is well-positioned to exploit this wider oil
deposit.
The HH-1 Portland oil discovery's importance was further boosted
by Xodus' report which determined that the P50 OIP had increased to
32 MMbbl, an increase of 53% from the 21 MMbbl reported prior to
2016 flow testing. Gross Contingent Resources rose to 1.5 MMbbl
(0.5 MMbbl net to UKOG) with a further 1.7-6.6 MMbbl gross
recoverable ( 0.5-2.1 MMbbl net UKOG) being possible via
implementation of a water re-injection scheme.
Other Horse Hill-related Activity Highlights
-- Xodus' conceptual Weald Kimmeridge Limestone oil development
study, pubished in October 2015, showed a low visual impact site
could be achieved via wellheads and pumps below ground level.
Controlled production could minimise HGV impact on local road
infrastructure.
-- Nutech calculated a total Horse Hill licence Kimmeridge P50
OIP of 5,198 MMbbl, of which 960 MMbbl is contained in the KL2, KL3
and KL4 (October 2015).
-- EY's report, published in April 2016, assessed the potential
impact of a Weald-wide KL oil production success case on the UK
economy. The report concludes that KL oil production could provide
up to 27% of future UK daily oil demand, a gross value-add to the
UK economy of up to GBP53 billion and generate significant
jobs.
-- The Oil and Gas Authority granted licence extensions to
PEDL137 and PEDL246 via the creation of "Retention Areas" over the
entirety of both licences.
Broadford Bridge
Onshore licence PEDL234 (300 km(2), net interest 100%) contains
multiple look-alike geological features to the Horse Hill KL oil
discoveries. The licence also contains an eastern extension of the
Godley Bridge-1 Portland gas discovery. The Broadford Bridge-1 well
is planned for 2017.
During the period, utilising the knowledge gained from the HH-1
flow tests, UKOG acquired PEDL234, significantly increasing its
acreage holding within the KL play's prime prospective area, or
"sweet spot". The licence is operated by Kimmeridge Oil & Gas
Limited ("KOGL"), a wholly-owned subsidiary of UKOG.
The licence is one of the UK's largest, covering 300 km(2),
three times the size of our Horse Hill licence PEDL137. It
straddles both the northern and southern flanks of the Weald Basin
and, more crucially, the basin centre, where the Kimmeridge is
interpreted to contain significant volumes of in-situ generated
oil. Nutech's calculated Kimmeridge P50 OIP figures of 7,100 MMbbl
within PEDL234, of which 1,700 MMbbl lie within the limestones,
gives comfort to this viewpoint.
The KL are shown by legacy wells and seismic to be well
developed over the entire licence, as are multiple areas likely to
contain natural fracturing within the Kimmeridge, similar to that
seen at Horse Hill.
Importantly, the licence acquisition included the existing
Broadford Bridge well pad, planning permission and EA consent to
drill the Broadford Bridge-1 ("BB-1") exploratory well.
The BB-1 well, planned for Q2 2017, will be a deviated or
"slant" well, designed to penetrate the entire Kimmeridge section,
targeting the four naturally-fractured Kimmeridge Limestones
(KL1-KL4) to confirm that KL oil is contained within a resource or
continuous oil deposit. The well will test the southern edge of the
basin within a mirror-image of the Horse Hill fault block. The
Kimmeridge section is planned to be drilled at an angle of
approximately 45 degrees to vertical and approximately orthogonal
to the predicted direction of open fractures within the
Kimmeridge.
Operations will include the acquisition of an extensive coring,
electric log and borehole imaging data set to provide further key
information on the limestone reservoirs and natural fracturing. All
pre-drill tenders have been issued and a drilling rig chosen. We
expect that the well will provide UKOG with a quantum leap in
knowledge of these unique KL reservoirs.
Our planning permission also includes the ability to flow test
the well for up to 14 weeks. If successful, and provided the tests
are encouraging, KOGL would aim to apply for permanent production
status from BB-1 by the end of 2018.
Due to our 100% ownership, if BB-1 is a discovery of similar
nature to HH-1, it could result in three times the overall net oil
production impact to the Company compared to Horse Hill.
Furthermore, should BB-1 ultimately prove our hypothesis that KL
oil lies within a wider resource deposit, the licence's 300 km(2)
area could hold around three times the recoverable resources of the
Horse Hill licences.
Consequently, it is our viewpoint that a successful outcome from
the BB-1 programme could have a highly material and
transformational impact upon the Company.
Godley Bridge
Godley Bridge lies within onshore licence PEDL234, as per
Broadford Bridge.
Technical studies by Xodus and UKOG show that the Godley
Bridge-1 ("GB-1") Portland gas discovery likely extends into the
north of PEDL234. More importantly, Nutech's petrophysical analysis
of the GB-1 well also indicates that significant oil potential lies
within the Kimmeridge underlying the Portland gas accumulation.
The Kimmeridge section encountered by the GB-1 well is thicker
and more deeply buried than at Horse Hill, indicating the
possibility for greater oil generation per unit volume of
Kimmeridge shale than at Horse Hill. The Godley Bridge discovery
also lies along a pronounced east-west faulted structural flexure,
some 15 km in extent, and which is a prime candidate for the
development of an associated significant fracture-network within
both limestones and shales. Wet gas and oil shows were recorded
throughout the Kimmeridge in GB-1 as is the case at the HH-1
discovery.
KOGL has started work on the selection of a well site and an
associated planning application to drill a well in the first half
of 2018. The well would both further appraise the Portland gas
discovery and test the deeper KL1 -KL4.
Holmwood
Onshore licence PEDL143 (91.8 km(2), net interest 30%, operator
Europa Oil & Gas (Holdings) plc) contains the Holmwood
prospect, which is a look-alike feature to the HH-1 Portland and
Kimmeridge oil discoveries, 8 km to the east. Planning permission
is in place to drill the Holmwood-1 well to test the Portland and
the Kimmeridge in 2017.
In November 2015, UKOG further increased its interest in the
Holmwood PEDL143 licence and now holds a material 30% stake, being
the largest single participant in the joint venture.
The Holmwood-1 well is an important part of our Kimmeridge oil
strategy. It is one of our three planned new wells designed to
demonstrate that the results of Horse Hill can be replicated across
the Weald and that the Kimmeridge contains a laterally extensive
oil deposit. The planned deviated well will also test a shallower
Portland sandstone objective in a look-alike geological setting to
the Horse Hill and Collendean Farm Portland discovery.
Markwells Wood
Onshore licence PEDL126 (11.2 km(2), net interest 100%) contains
the Markwells Wood-1 oil discovery.
In September 2016 UKOG submitted a planning application to the
South Downs National Park Authority to further appraise and develop
the Markwells Wood-1 oil discovery. The planned two-phase programme
would see four horizontal wells drilled within the conventional
Great Oolite limestone reservoir. The discovery is a geological
look-alike to the neighbouring Horndean producing oil field (UKOG
net interest 10%). A planning decision is expected in Q2 2017.
As part of the Markwells Wood planning application, UKOG has
worked with hydrogeology specialists Envireau Water, the
Environment Agency and Portsmouth Water to arrive at a greatly
improved understanding of the chalk aquifer that lies adjacent to
the site. Future planned drilling will utilise biodegradable
natural drilling fluids to present zero hazard to the area's chalk
groundwater acquifer.
Isle of Wight
Onshore licence PEDL331 (200 km(2), net interest 65%) and
offshore licence P1916 (46.7 km(2), net interest 100%. PEDL331
contains the Arreton-1 and Arreton-2 oil discovery.
These licences contain the same geology as our Weald Basin
licences. Our focus is on fracture-enhanced conventional limestone
and sandstone reservoirs that have been missed by previous
operators.
The PEDL331 licence was formally granted to UKOG by the Oil and
Gas Authority in the Summer. We have selected a well site and are
currently compiling a planning application to drill a deviated
appraisal well in the Arreton-2 oil discovery, again with a view to
achieving early oil production in the event of success.
An analysis by Xodus Group Ltd ("Xodus") of the Arreton-2 oil
discovery ("Arreton Main") and the adjacent low-risk Arreton North
and South Prospects ("Arreton Prospects") calculated an aggregate
gross P50 OIP of 219 MMbbl and net P50 Contingent Resources of 10.2
MMbbl and 6.8 MMbbl for Arreton Main, and the Arreton Prospects
respectively.
Baxters Copse
Onshore licence PEDL233 (89.6 km(2), net interest 50%, Operator
IGas Energy plc) contains the Baxters Copse-1 oil discovery - an
appraisal well is planned for 2018-2019.
Horndean
Onshore licence PL211 (27.3 km(2), net interest 10%, operator
IGas Energy plc). Horndean continued stable oil production
throughout the period averaging 144 gross bopd.
Avington
Onshore licence PL070 (18.3 km(2), net interest 5%, operator
IGas Energy plc) Avington continued stable oil production
throughout the period averaging 47 gross bopd.
Brockham
The Brockham field lies in onshore licence PL235 (8.9 km(2),
indirect net interest 1.41%, operator Angus Energy plc) and is the
closest similar Portland sandstone producing oil field to the HH-1
Portland discovery.
After the reporting period, the operator conducted a well
intervention programme on the Brockham discovery well BR-X1,
encountering oil and gas shows in the Portland, Kimmeridge and
Corallian. We understand that electric logs have been acquired and
are under interpretation. We await further news of planned flow
testing. As previously described, a successful Kimmeridge test
would be a very positive outcome for UKOG's Horse Hll and Holmwood
interests and the overall Kimmeridge Limestone play.
Portland production has been shut in pending completion of site
improvements and the BR-X1 re-entry.
A the time of writing, due to Angus Energy's Initial Public
Offering in November 2016 and other share issues, UKOG's share
ownership was diluted from 6% to 2.56%.
Lidsey
The Lidsey field lies in onshore licence PL241 (5.3 km(2),
indirect net interest 1.28%, Operator Angus Energy plc) produces
from the same Great Oolite limestone as UKOG's Horndean and
Avington oil fields and our Markwells Wood and Baxter's Copse oil
discoveries. UKOG's interest is via our minority shareholding in
Angus Energy. Lidsey production is shut-in pending an infill well
in 2017.
Reserves, Resources and Oil in Place
UKOG has estimated net attributable P50 reserves of 89,983
barrels of oil (see Table 1 below). This figure is largely
unchanged from last year, despite continuing production and several
issues of shares by Angus Energy, diluting UKOG's net attributable
interest in Brockham and Lidsey.
At the time of writing, UKOG also has 22.2 MMbbl of net
attributable P50 Contingent and Prospective Resources (see Table 2
below). Table 2 includes the recently announced net Contingent
Resources for the Horse Hill Portland reservoir. However, Table 2
does not include net Contingent Resources for the PEDL234 Godley
Bridge gas discovery or Prospective Resources for the Isle of Wight
P1916/PEDL331 M prospect.
Gross unrisked OIP for UKOG's licence interests are shown in
Table 3. These OIP volumes are dominated by the Kimmeridge OIP
estimated for the Horse Hill and Broadford Bridge/Godley Bridge
licences.
Table 1: UKOG's Producing Fields, Gross and Net Reserves
Asset UKOG Interest Gross Reserves (bbl) Net Reserves (bbl) Source, Date
---------- -------------- -------------------------------- -------------------------- ----------------
P90 P50 P10 P90 P50 P10
---------- -------------- -------- ---------- ---------- ------- ------- -------- ----------------
Horndean 10% 774,000 1,180,000 1,425,000 71,700 85,600 114,300 IGas, July 2016
---------- -------------- -------- ---------- ---------- ------- ------- -------- ----------------
Avington 5% 18,000 36,000 63,000 900 3,150 6,250 IGas, July 2016
---------- -------------- -------- ---------- ---------- ------- ------- -------- ----------------
Lidsey 1.28% 6,000 6,000 6,000 77 77 77 Angus, Nov 2016
---------- -------------- -------- ---------- ---------- ------- ------- -------- ----------------
Brockham 1.41% 69,000 82,000 92,000 973 1,156 1,297 Angus, Nov 2016
---------- -------------- -------- ---------- ---------- ------- ------- -------- ----------------
TOTALS 73,650 89,983 121,924
---------- -------------- -------- ---------- ---------- ------- ------- -------- ----------------
Table 2: UKOG's Unrisked Gross and Net Resources for Four Oil
Discoveries and Three Exploration Prospects
Asset Licence UKOG's Gross Resources (MMbbl) Net Resources (MMbbl) (1) Source, Date
Interest
-------------- --------- -------------- ---------------------------- ------------------------------ -------------
P90 P50 P10 P90 P50 P10
-------------- --------- -------------- ------- --------- -------- --------- --------- -------- -------------
IGas/DeGMcN,
Horndean (2) PEDL126 10% 0.6 1.3 2.7 0.1 0.1 0.3 July 2016
-------------- --------- -------------- ------- --------- -------- --------- --------- -------- -------------
IGas/DeGMcN,
Avington (2) PEDL070 5% 0.5 0.7 1.0 0.03 0.04 0.05 July 2016
-------------- --------- -------------- ------- --------- -------- --------- --------- -------- -------------
Xodus,
Markwells September
Wood (2) PEDL126 100% 0.6 1.3 2.7 0.6 1.3 2.7 2015
-------------- --------- -------------- ------- --------- -------- --------- --------- -------- -------------
Europa/ERCE,
Holmwood (3) PEDL143 30% 0.8 3.4 12.5 0.2 1.0 3.8 June 2012
-------------- --------- -------------- ------- --------- -------- --------- --------- -------- -------------
Baxters Copse IGas/DeGMcN,
(2,4) PEDL233 50% 2.7 4.6 6.7 1.3 2.3 3.4 July 2016
-------------- --------- -------------- ------- --------- -------- --------- --------- -------- -------------
Horse Hill Xodus,
Portland PEDL137 31.2% 0.6 1.5 3.6 0.2 0.5 1.1 January 2017
-------------- --------- -------------- ------- --------- -------- --------- --------- -------- -------------
Arreton Main Xodus,
(2) PEDL331 65% 9.9 15.7 24.1 6.4 10.2 15.7 January 2016
-------------- --------- -------------- ------- --------- -------- --------- --------- -------- -------------
Arreton
Prospects Xodus,
(3) PEDL331 65% 4.0 10.5 21.6 2.6 6.8 14.0 January 2016
-------------- --------- -------------- ------- --------- -------- --------- --------- -------- -------------
Angus/Xodus,
Lidsey (2,5) PL241 1.02% 0.3 0.6 0.7 0.00 0.01 0.01 Nov 2016
-------------- --------- -------------- ------- --------- -------- --------- --------- -------- -------------
Angus/Xodus,
Brockham (2) PL235 1.41% 0.1 0.2 0.3 0.00 0.00 0.01 Nov 2016
-------------- --------- -------------- ------- --------- -------- --------- --------- -------- -------------
TOTALS 11.5 22.2 41.0
------------------------- -------------- ------- --------- -------- --------- --------- -------- -------------
Notes:
1. UKOG net share.
2. Contingent Resources.
3. Prospective Resources.
4. Contingent Resources are in barrels of oil equivalent, as
they include gas.
5. Angus Energy's rights in any future new Lidsey well are
reduced by 20%, due to a transaction with Doriemus Plc.
Table 3: UKOG Unrisked Gross OIP
Asset Licence UKOG's Interest OIP (MMbbl) or GIIP (bcf) Source & Date
----------------------------- ------------ --------------- ----------------------------- -------------------------
Low P90 Best P50 High P10
----------------------------- ------------ --------------- -------- --------- -------- -------------------------
Offshore Isle of Wight M
Prospect Oil P1916 100% 37 107 239 UKOG, March 2015
----------------------------- ------------ --------------- -------- --------- -------- -------------------------
Offshore Isle of Wight M
Prospect Gas (1) P1916 100% 57 184 426 UKOG, March 2015
----------------------------- ------------ --------------- -------- --------- -------- -------------------------
Onshore Isle of Wight PEDL331 65% 144 219 322 Xodus, January 2016
----------------------------- ------------ --------------- -------- --------- -------- -------------------------
Markwells Wood PEDL126 100% 33 46 62 Xodus, September 2015
----------------------------- ------------ --------------- -------- --------- -------- -------------------------
Holmwood PEDL143 30% 4 15 55 Europa/ERCE, June 2012
----------------------------- ------------ --------------- -------- --------- -------- -------------------------
Horndean PL211 10% 27 56 110 Northern/RPS, Feb 2010
----------------------------- ------------ --------------- -------- --------- -------- -------------------------
Avington PEDL070 5% 25 59 110 IGas/Senergy, July 2014
----------------------------- ------------ --------------- -------- --------- -------- -------------------------
Baxters Copse PEDL233 50% N/A 52 N/A IGas/Senergy, July 2014
----------------------------- ------------ --------------- -------- --------- -------- -------------------------
Horse Hill Portland PEDL137 31.2% 22 32 47 Xodus, January 2017
----------------------------- ------------ --------------- -------- --------- -------- -------------------------
Horse Hill Oil PEDL137/246 31.2% 3,131 9,245 17,519 Nutech, June 2015
----------------------------- ------------ --------------- -------- --------- -------- -------------------------
Horse Hill Oil PEDL137/246 31.2% N/A 10,993 N/A Schlumberger, August 2015
----------------------------- ------------ --------------- -------- --------- -------- -------------------------
Broadford Bridge/ Godley
Bridge Oil PEDL234 100.0% 3,158 7,120 13,717 Nutech, December 2016
----------------------------- ------------ --------------- -------- --------- -------- -------------------------
Lidsey PL241 1.28% 6 10 15 Angus/Xodus Nov 2016
----------------------------- ------------ --------------- -------- --------- -------- -------------------------
Brockham PL235 1.41% 2 3 4 Angus/Xodus Nov 2016
----------------------------- ------------ --------------- -------- --------- -------- -------------------------
Notes:
1. GIIP figures.
FINANCIAL REVIEW
Income Statement
In 2016, production continued from Horndean and Avington
generating revenues of GBP0.15 million. The operating loss
increased in 2016 to GBP2.89 million compared to the GBP1.60
million loss in 2015. This increase is due to higher uncapitalised
consultant, legal and due diligence costs associated with the
acquisition and development of our asset portfolio. Loss for the
year was GBP1.97 million an increase from the GBP1.69 million loss
in 2015. The narrowing of the loss, compared to the operating loss
for the year was due to the GBP1.02 million credit to the Income
statement as a result of the negative goodwill associated with the
acquisition of Broadford Bridge (PEDL234).
Cash Flow / Financing
The Group raised GBP4.41 million during the year, which was
primarily utilised to increase our exposure to the onshore oil
assets within the Weald Basin in England. We acquired 100% of
Celtique Energie Weald Limited (PEDL234) for GBP3.5 million, of
which we paid GBP1.25 million in cash. In addition we increased our
investment in Horse Hill from 20% to 48% over the year for GBP2.8
million, of which we paid GBP1.15 million in cash. We also loaned
Horse Hill Developments Ltd a further GBP1.21 million to fund the
drilling and testing activities carried out during the year at
HH-1. Our net cash out flow from operating activites was GBP1.86
million (2015: GBP1.05 million).
Balance Sheet
During 2016, non-current assets increased by GBP7.87 million
primarily as a result of the acquisition of Broadford Bridge. At
the end of the period the Group had GBP2.44 million (2015: GBP4.59
million) in cash and cash equivalents. Along with its non-current
and other current assets the consolidated total assets were
GBP18.51 million (2015: GBP11.58 million). Total liabilities
increased to GBP0.59 million (2015: GBP0.44 million).
INVESTING POLICY
The Company's Investing Policy is to invest in and/or acquire
companies and/or projects within the natural resources sector with
potential for growth.
The Company will also consider opportunities in other sectors as
they arise if the Board considers that there is an opportunity to
generate potential value for Shareholders. Where appropriate, the
Board may seek to invest in businesses where it may add its
expertise to the management of the business and utilise its
industry relationships.
The geographical focus will primarily be in regions in the world
where the Board considers that valuable opportunities exist and
potential returns can be achieved. The Board has identified United
Kingdom as the current Company's focus.
The Company's interests in an investment and/or acquisition may
range from a minority position to full ownership and may comprise
one investment or multiple investments. The investments may be in
either quoted or unquoted companies; be made by direct acquisitions
or farm-ins; and may be in companies, partnerships, earn-in joint
ventures, debt or other loan structures, joint ventures or direct
or indirect interests in assets or projects. The Board may focus on
investments where intrinsic value may be achieved from the
restructuring of investments or merger of complementary
businesses.
The Board expects that investments will typically be held for
the medium to long term, although short term disposal of assets
cannot be ruled out if there is an opportunity to generate a
potentially attractive return for Shareholders. The Board will
place no minimum or maximum limit on the length of time that any
investment may be held. The Company may be both an active and a
passive investor depending on the nature of the individual
investment.
There is no limit on the number of projects in which the Company
may invest, and the Company's financial resources may be invested
in a number of propositions or in just one investment, which may be
deemed to be a reverse takeover under the AIM Rules. The Board
intends to mitigate risk by appropriate due diligence and
transaction analysis. Any transaction constituting a reverse
takeover under the AIM Rules will also require Shareholder
approval. The Board considers that as investments are made, and new
promising investment opportunities arise, further funding of the
Company may also be required.
Where the Company builds a portfolio of related assets it is
possible that there may be cross holdings between such assets.
Investments in early stage assets are expected to be mainly in the
form of equity, with debt potentially being raised later to fund
the development of such assets. Investments in later stage assets
are more likely to include an element of debt to equity gearing.
The Board may also offer New Ordinary Shares by way of
consideration as well as cash, thereby helping to preserve the
Company's cash for working capital and as a reserve against
unforeseen contingencies including, for example, delays in
collecting accounts receivable, unexpected changes in the economic
environment and operational problems.
Investments may be made in all types of assets and there will be
no investment restrictions on the type of investment that the
Company might make nor the type of opportunity that may be
considered.
The Company may consider possible opportunities anywhere in the
world.
The Board will conduct initial due diligence appraisals of
potential business or projects and, where they believe further
investigation is warranted, intend to appoint appropriately
qualified persons to assist. The Board believes its expertise will
enable it to determine quickly which opportunities could be viable
and so progress quickly to formal due diligence. The Company will
not have a separate investment manager.
The initial focus of the Company will be the achievement of
capital growth for Shareholders and therefore the Company will only
consider the payment of dividends as and when it is appropriate to
do so. As such, it is not possible at this stage to give an
indication of the likely level or timing of any future dividends.
To the extent that any dividends are paid they will be paid in
accordance with any applicable laws and the regulations to which
the Company is subject. The amount of the dividends paid to
Shareholders will fluctuate according to the levels of profits
earned by the Company and will be dependent on sufficient
distributable reserves being available to the Company.
CORPORATE SOCIAL RESPONSIBILITY
UKOG's Environmental Initiatives
I am pleased to report that to further enhance our environmental
credentials, we have agreed a long-term alliance with a
British-based company to use its natural, biodegradable drilling
fluid. This zero-hazard drilling fluid (or "mud") will be used in
all of UKOG's oil exploration and development drilling activities
across the Weald Basin. The use of this mud will ensure that there
can be zero contamination of any groundwater via the drilling
process.
The drilling fluid, also used by water well drilling companies
in the UK, is registered with the Centre for Environment, Fisheries
and Aquaculture Science (Cefas). It is also the only drilling fluid
to be formally approved by the Department for the Environment, Food
and Rural Affairs for use in the public water supply.
UKOG has also commissioned a company to construct and operate an
enclosed flare for its upcoming Horse Hill appraisal and well
testing programme. The enclosed flare, commonly used at landfill
sites, is clean burning, without odour and produces low emissions.
The enclosed flare will be a first in the UK onshore oil & gas
industry.
Oil Price Environment
We note the welcome recovery in the Brent oil price to around
$55 per barrel at the time of writing. While neither OPEC or Russia
have likely achieved their full promised production cuts, US shale
production has also not recovered as quickly as some forecast. US
stockpiles have also remained below expectations. Therefore, we see
cuts broadly balancing increased US shale production and Brent
crude remaining broadly stable in 2017 at or around current prices.
At this price level, our Kimmeridge and other projects remain very
robust. As the bulk of UKOG's costs are incurred in Sterling, the
corresponding fall of around 20% in the US dollar to Sterling
exchange rate post-Brexit acts as a further economic boost to
UKOG's near term projects.
Your Board of Directors will continue to seek out further
attractive investments in line with UKOG's investment strategy.
The Board would like to take this opportunity to thank our
shareholders for their continued support, and I look forward to
reporting further progress over the next period and beyond.
Stephen Sanderson
Executive Chairman & Chief Executive Officer
27 February 2017
DIRECTORS
FOR THE YEARED 30 SEPTEMBER 2016
Stephen Sanderson, Executive Chairman and Chief Executive
Officer
Stephen Sanderson joined UK Oil & Gas Investments PLC in
September 2014 and was appointed Executive Chairman and Chief
Executive in July 2015. A highly-experienced petroleum geologist,
oil industry veteran and upstream energy business leader, with over
30 years operating experience, Stephen is a proven oil finder and
was instrumental in the discovery of more than 13 commercial fields
to date, including the giant Norwegian Smorbuk-Midgaard field
complex. Stephen held a variety of senior management roles for ARCO
(which was acquired by BP in 2000), Wintershall AG (a subsidiary of
German chemical giant BASF) and three junior start-ups. He created
and ran successful new exploration businesses in Africa, Europe and
South America. He has significant technical and commercial
expertise in the petroleum systems of Africa, the North Sea,
Norway, onshore UK & Europe, South America, the South Atlantic,
Middle East, Asia, India, Australia and the USA. He is a graduate
and Associate of the Royal School of Mines, Imperial College,
London, a Fellow of the Geological Society of London and a member
of the American Association of Petroleum Geologists. He served for
four years in the British Army and TAVR as a platoon commander,
serving in the UK and Berlin.
Kiran Morzaria, Finance Director (appointed 23 October 2015)
Mr Morzaria holds a Bachelor of Engineering (Industrial Geology)
from the Camborne School of Mines and an MBA (Finance) from CASS
Business School. He has extensive experience in the mineral
resource industry working in both operational and management roles.
Mr. Morzaria spent the first four years of his career in
exploration, mining and civil engineering. He then obtained his MBA
and became the Finance Director of Vatukoula Gold Mines Plc for
seven years. He has served as a director of a number of public
companies in both an executive and non-executive capacity, he is a
non-executive director of European Metals Holdings Ltd and the
Chief Executive Officer for Rare Earth Minerals plc.
Jason Berry, Executive Director (ceased as a director 16
November 2016)
Jason Berry joined UK Oil & Gas Investments PLC as an
Executive Director in August 2014. He had extensive experience
operating in global public markets having spent approximately 20
years working in the financial services sector in London. He was
experienced in raising capital for listed companies and sales
trading. Jason was Director of Dawnay Day Investment Banking
Limited and was involved in the successful buy out of the business
which now trades as Hobart Capital Markets Limited. Subsequent to
the year end Jason died unexpectedly from a short illness and
ceased to be a director on 16 November 2016.
REPORT OF THE DIRECTORS
The Directors present their annual report together with the
audited consolidated financial statements of the Group for the Year
Ended 30 September 2016.
Principal Activity and Business Review
The principal activity of the Group and the Company is that of
an investment holding company to acquire a diverse portfolio of
direct and indirect interests in exploration, development and
production oil and gas assets which are based in the UK.
Results and Dividends
Loss on ordinary activities of the Group after taxation amounted
to GBP1,972,000 (2015: Loss GBP1,695,000). The Directors do not
recommend the payment of a dividend (2015: GBPnil). The Company has
no plans to adopt a dividend policy in the immediate future.
Principal Risks and Uncertainties
The principal risks and uncertainties facing the Group involve
the ability to secure funding in order to finance the acquisition
and exploitation of oil and gas assets and fluctuating commodity
prices.
In addition, the amount and quality of the Group's oil and gas
resources and the related costs of extraction and production
represent a significant risk to the Group.
Financial Risk Management Objectives and Policies
The Group's principal financial instruments are available for
sale assets, trade receivables, trade payables and cash at bank,
and borrowings. The main purpose of these financial instruments is
to fund the Group's operations.
It is, and has been throughout the period under review, the
Group's policy that no trading in financial instruments shall be
undertaken. The main risk arising from the Group's financial
instruments is liquidity risk. The Board reviews and agrees
policies for managing this risk and this is summarised below.
Liquidity Risk
The Group's objective is to maintain a balance between
continuity of funding and flexibility through the use of equity and
its cash resources. Further details of this are provided in the
principal accounting policies, headed 'going concern'.
Key Performance Indicators
Due to the current status of the Group, the Board has not
identified any performance indicators as key.
Future Developments
Future developments are outlined in the Chairman's Statement and
Strategic Report.
Going Concern
The Directors note the substantial losses that the Group has
made for the year ended 30 September 2016. The Directors have
prepared cash flow forecasts for the period ending 28 February 2018
which take account of the current cost and operational structure of
the Group.
The cost structure of the Group comprises a high proportion of
discretionary spend and therefore in the event that cash flows
become constrained, costs can be quickly reduced to enable the
Group to operate within its available funding.
These forecasts demonstrate that the Group has sufficient cash
funds available to allow it to continue in business for a period of
at least twelve months from the date of approval of these financial
statements. Accordingly, the financial statements have been
prepared on a going concern basis.
Events After the Reporting Period
Events after the Reporting Period are outlined in Note 25 to the
Financial Statements.
Corporate Governance
Audit and Remuneration Committees have been established and in
each case comprises Directors Stephen Sanderson and Kiran Morzaria,
with Kiran Morzaria as Chairman.
The role of the Remuneration Committee is to review the
performance of the executive Directors and to set the scale and
structure of their remuneration, including bonus arrangements. The
Remuneration Committee also administers and establishes performance
targets for the Group's employee share schemes and executive
incentive schemes for key management. In exercising this role, the
terms of reference of the Remuneration Committee require it to
comply with the Code of Best Practice published in the Combined
Code.
The Audit Committee is responsible for making recommendations to
the Board on the appointment of the auditors and the audit fee, and
receives and reviews reports from management and the Company's
auditors on the internal control systems in use throughout the
Group and its accounting policies.
Suppliers' Payment Policy
The Group's policy is to agree terms and conditions with
suppliers in advance; payment is then made in accordance with the
agreement provided the supplier has met the terms and conditions.
Suppliers are typically paid within 30 days of issue of
invoice.
Charitable Contributions
During the year the Group made charitable donations amounting to
GBPNil (2015 - GBPNil).
Substantial Shareholdings
As at 11 February 2016, the Company had been notified of the
following substantial shareholdings in the ordinary share
capital:
Number of Ordinary Holding %
Shares
----------------------- ------------------- ----------
TD Direct Investing
Nominees (Europe)
Ltd 191,838,833 9.45
Barclayshare Nominees
Ltd 178,210,748 8.78
HSDL Nominees Ltd 160,723,350 7.92
Hargreaves Lansdown
(Nominees) Ltd 151,766,218 7.48
HSBC Client Holdings
Nominee (UK) Ltd 112,843,780 5.56
Hargreaves Lansdown
(Nominees) Ltd 95,366,579 4.70
Hargreaves Lansdown
(Nominees) Ltd 94,076,594 4.63
HSDL Nominees Ltd 85,750,035 4.22
Vidacos Nominees Ltd 76,997,918 3.79
TD Direct Investing
Nominees (Europe)
Ltd 69,957,786 3.45
Directors
The Directors who held office during the year and up to the date
of this report are given below:
Current Board
Stephen Sanderson (Executive Chairman)
Kiran Morzaria (Finance Director) (appointed 23 October
2015)
Previous Directors
Donald Strang (resigned 23 October 2015)
Jason Berry (ceased 16 November 2016)
Stephen Sanderson, holds fully vested options over 35,000,000
ordinary shares (total options held by directors is 35,000,000)
which are exercisable at 0.4p and 1.82p each up until 31 December
2017, and 28 September 2019, respectively. Kiran Morzaria holds no
options.
REPORT OF THE DIRECTORS
Auditor
A resolution to reappoint Chapman Davis LLP as auditor will be
proposed at the forthcoming Annual General Meeting ("AGM").
Annual General Meeting
Notice of the forthcoming Annual General Meeting will be
enclosed separately.
Statement of Directors' Responsibilities
The Directors are responsible for preparing the annual report
and financial statements in accordance with applicable law and
regulations.
Company law requires the directors to prepare consolidated
financial statements for each financial year. The Directors have
prepared the consolidated accounts in accordance with International
Financial Reporting Standards as adopted by the EU ("adopted
IFRS"). The consolidated financial statements are required by law
to give a true and fair view of the state of affairs of the Group
and Company and of the profit or loss for that period. In preparing
these financial statements, the Directors are required to:
-- Select suitable accounting policies and then apply them consistently;
-- Make judgements and estimates that are reasonable and prudent;
-- State whether applicable IFRS's have been followed, subject
to any material departures disclosed and explained in the financial
statements; and
-- Prepare the consolidated financial statements on the going
concern basis unless it is inappropriate to presume that the Group
will continue in business.
The Directors are responsible for keeping adequate accounting
records, which disclose with reasonable accuracy at any time the
financial position of the Group and to enable them to ensure that
the consolidated financial statements comply with the Companies Act
2006. They are also responsible for safeguarding the assets of the
Group and hence for taking reasonable steps for the prevention and
detection of fraud and other irregularities.
The Directors are responsible for the maintenance and integrity
of the corporate and financial information included on the
Company's website. The Company's website is maintained in
accordance with AIM Rule 26.
Legislation in the United Kingdom governing the preparation and
dissemination of consolidated financial statements may differ from
legislation in other jurisdictions.
Statement as to Disclosure of Information to the Auditor
As at the date of this report the serving directors confirm
that:
-- So far as each director is aware, there is no relevant audit
information of which the Group's auditors are unaware, and
-- they have taken all the steps that they ought to have taken
as directors' in order to make themselves aware of any relevant
audit information and to establish that the Group's auditor are
aware of that information.
ON BEHALF OF THE BOARD
Stephen Sanderson
Director
27 February 2017
REPORT OF THE INDEPENT AUDITOR TO THE MEMBERS OF UK OIL &
GAS INVESTMENTS PLC
We have audited the Group and Parent Company financial
statements of UK Oil & Gas Investments PLC for the year ended
30 September 2016, which comprise the Consolidated Statement of
Comprehensive Income, the Consolidate Statement of Financial
Position, the Company Statement of Financial Position the
Consolidated Statement of Cash Flows, Company Statement of Cash
Flows, the Consolidated Statement of Changes in Equity, the Company
Statement of Changes in Equity and the related notes. The financial
reporting framework that has been applied in their preparation is
applicable law and International Financial Reporting Standards as
adopted by the EU ("adopted IFRS").
This report is made solely to the Company's members, as a body,
in accordance with Chapter 3 of Part 16 of the Companies Act 2006.
Our audit work has been undertaken so that we might state to the
Company's members those matters we are required to state to them in
an auditor's report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to
anyone other than the Company and the Company's members as a body,
for our audit work, for this report, or for the opinions we have
formed.
Respective Responsibilities of Directors and Auditors
As explained more fully in the Directors' Responsibilities
Statement, the directors are responsible for the preparation of the
financial statements and for being satisfied that they give a true
and fair view. Our responsibility is to audit and express an
opinion on the financial statements in accordance with applicable
law and International Standards on Auditing (UK and Ireland). Those
standards require us to comply with the Auditing Practices Board's
(APB's) Ethical Standards for Auditors.
Scope of the Audit of the Financial Statements
A description of the scope of an audit of financial statements
is provided on the APB's website at
www.frc.org.uk/apb/scope/private.cfm.
Opinion on the Financial Statements
In our opinion the financial statements:
-- Give a true and fair view of the state of the Group and
Company's affairs as at 30 September 2016 and of the Group's loss
for the year then ended;
-- Have been properly prepared in accordance with International
Financial Reporting Standards as adopted by the EU; and
-- Have been prepared in accordance with the requirements of the Companies Act 2006.
Opinion on Other Matter Prescribed by the Companies Act 2006
In our opinion the information given in the Directors' Report
for the financial year for which the financial statements are
prepared is consistent with the financial statements.
Matters on Which We are Required to Report by Exception
We have nothing to report in respect of the following matters
where the Companies Act 2006 requires us to report to you if, in
our opinion:
-- Adequate accounting records have not been kept, or returns
adequate for our audit have not been received from branches not
visited by us; or
-- The financial statements are not in agreement with the accounting records and returns; or
-- Certain disclosures of directors' remuneration specified by law are not made; or
-- We have not received all the information and explanations we require for our audit.
Keith Fulton
Senior Statutory Auditor
for and on behalf of Chapman Davis LLP
Statutory Auditor, Chartered Accountants
London
27 February 2017
FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR YEARED 30 SEPTEMBER 2016
Notes 2016 2015
GBP'000 GBP'000
--------------------------------------- ------ -------- --------
Revenue 3 151 240
Cost of sales (204) (146)
Gross (loss)/profit (53) 94
--------------------------------------- ------ -------- --------
Operating expenses
Administrative expenses (2,062) (1,192)
Foreign exchange gains (20) (49)
Depletion & impairment expense 10 (78) (82)
Share based payments expense 22 (682) (378)
Operating (loss) 4 (2,895) (1,607)
--------------------------------------- ------ -------- --------
Gain on settlements of derivative
financial instrument - 62
Share of associate loss 12 (106) (69)
Finance costs 6 - (81)
Negative Goodwill 2 1,029 -
(Loss) before taxation (1,972) (1,695)
--------------------------------------- ------ -------- --------
Taxation 7 - -
--------------------------------------- ------ -------- --------
(Loss) for the year attributable
to equity holders of the parent (1,972) (1,695)
--------------------------------------- ------ -------- --------
Other comprehensive income
Transfer to income statement - (44)
--------------------------------------- ------ -------- --------
Other comprehensive income
net of taxation - (44)
--------------------------------------- ------ -------- --------
Total comprehensive loss attributable
to equity holders of the
parent (1,972) (1,739)
--------------------------------------- ------ -------- --------
(Loss) per share
--------------------------------------- ------ -------- --------
Pence Pence
Basic and diluted 8 (0.09) (0.10)
The accompanying accounting policies and notes form an integral
part of these financial statements.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2016
Notes 2016 2015
GBP'000 GBP'000
--------------------------------- ------ --------- ---------
Assets
Non-current assets
Exploration & evaluation
assets 9 6,187 1,309
Oil & gas properties 10 1,500 1,566
Property, plant & equipment 10 370 -
Investment in associate 12 4,757 2,063
Available for sale investments 13 368 368
--------------------------------- ------ --------- ---------
Total non-current assets 13,182 5,306
--------------------------------- ------ --------- ---------
Current assets
Inventory 14 3 2
Trade and other receivables 15 2,890 1,683
Derivative financial instrument 16 - -
Cash and cash equivalents 17 2,444 4,590
--------------------------------- ------ --------- ---------
Total current assets 5,337 6,275
--------------------------------- ------ --------- ---------
Total Assets 18,519 11,581
--------------------------------- ------ --------- ---------
Current liabilities
Trade and other payables 18 (591) (329)
Borrowings 19 - (111)
--------------------------------- ------ --------- ---------
Total current liabilities (591) (440)
--------------------------------- ------ --------- ---------
Non-current liabilities
Provisions 20 (359) (359)
--------------------------------- ------ --------- ---------
Total non-current liabilities (359) (359)
--------------------------------- ------ --------- ---------
Total liabilities (950) (799)
--------------------------------- ------ --------- ---------
Net Assets 17,569 10,782
--------------------------------- ------ --------- ---------
Shareholders' equity
Share capital 21 11,842 11,787
Share premium account 39,644 31,622
Share based payment reserve 1,224 659
Accumulated losses (35,141) (33,286)
--------------------------------- ------ --------- ---------
Total shareholders' equity 17,569 10,782
--------------------------------- ------ --------- ---------
These financial statements were approved by the Board of
Directors on 27 February 2017 and are signed on its behalf by:
Stephen Sanderson Kiran Morzaria
Director Director
The accompanying accounting policies and notes form an integral
part of these financial statements.
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2016
Notes 2016 2015
GBP'000 GBP'000
------------------------------------ ------ --------- -------------
Assets
Non-current assets
Exploration & evaluation assets 9 742 662
Investment in subsidiary companies 11 5,019 1,512
Investment in associate 12 4,757 2,063
Available for sale investments 13 368 368
------------------------------------ ------ --------- -------------
Total non-current assets 10,886 4,605
------------------------------------ ------ --------- -------------
Current assets
Trade and other receivables 15 3,672 2,120
Derivative financial instrument 16 - -
Cash and cash equivalents 17 2,371 4,461
------------------------------------ ------ --------- -------------
Total current assets 6,043 6,581
------------------------------------ ------ --------- -------------
Total Assets 16,929 11,186
------------------------------------ ------ --------- -------------
Current liabilities
Trade and other payables 18 (299) (313)
Borrowings 19 - (111)
------------------------------------ ------ --------- -------------
Total Current liabilities (299) (424)
------------------------------------ ------ --------- -------------
Total liabilities (299) (424)
------------------------------------ ------ --------- -------------
Net Assets 16,630 10,762
------------------------------------ ------ --------- -------------
Shareholders' equity
Share capital 21 11,842 11,787
Share premium account 39,644 31,622
Share Based Payment Reserve 1,224 659
Accumulated losses (36,080) (33,306)
------------------------------------ ------ --------- -------------
Total shareholders' equity 16,630 10,762
------------------------------------ ------ --------- -------------
These financial statements were approved by the Board of
Directors on 27 February 2017 and are signed on its behalf by:
Stephen Sanderson Kiran Morzaria
Director Director
The accompanying accounting policies and notes form an integral
part of these financial statements.
CONSOLDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEARED 30 SEPTEMBER 2016
Share
based
Share Share payment Revaluation Accumulated
capital premium reserve reserve losses Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------------------------- --------- --------- --------- ------------ ------------ ---------
Balance at 1 October 2014 11,726 23,192 351 44 (31,661) 3,652
Loss for the year - - - - (1,695) (1,695)
Other comprehensive income
- Transfer to income statement - - - (44) - (44)
Total comprehensive income - - - (44) (1,695) (1,739)
---------------------------------- --------- --------- --------- ------------ ------------ ---------
Issue of shares 61 8,922 - - - 8,983
Cost of share issue - (492) - - - (492)
Share option exercised - - (70) - 70 -
Share based payments - - 378 - - 378
---------------------------------- --------- --------- --------- ------------ ------------ ---------
Total contributions by
and distributions to owners
of the Company 61 8,430 308 - 70 8,869
---------------------------------- --------- --------- --------- ------------ ------------ ---------
Balance at 30 September
2015 11,787 31,622 659 - (33,286) 10,782
---------------------------------- --------- --------- --------- ------------ ------------ ---------
Loss for the year - - - - (1,972) (1,972)
Total comprehensive income - - - - (1,972) (1,972)
---------------------------------- --------- --------- --------- ------------ ------------ ---------
Issue of shares 55 8,262 - - - 8,317
Cost of share issue - (240) - - - (240)
Share options exercised - - (117) - 117 -
Share based payments - - 682 - - 682
------------
Total contributions by
and distributions to owners
of the Company 55 8,022 565 - 117 8,759
---------------------------------- --------- --------- --------- ------------ ------------ ---------
Balance at 30 September
2016 11,842 39,644 1,224 - (35,141) 17,569
---------------------------------- --------- --------- --------- ------------ ------------ ---------
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEARED 30 SEPTEMBER 2016
Share
based
Share Share payment Revaluation Accumulated
capital premium reserve reserve losses Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------------------------- --------- --------- --------- ------------ ------------ ---------
Balance at 1 October 2014 11,726 23,192 351 44 (31,661) 3,652
Loss for the year - - - - (1,715) (1,715)
Other comprehensive income
- Transfer to income statement - - - (44) - (44)
Total comprehensive income - - - (44) (1,715) (1,759)
---------------------------------- --------- --------- --------- ------------ ------------ ---------
Issue of shares 61 8,922 - - - 8,983
Cost of share issue - (492) - - - (492)
Share option exercised - - (70) - 70 -
Share based payments - - 378 - - 378
---------------------------------- --------- --------- --------- ------------ ------------ ---------
Total contributions by
and distributions to owners
of the Company 61 8,430 308 - 70 8,869
---------------------------------- --------- --------- --------- ------------ ---------
Balance at 30 September
2015 11,787 31,622 659 - (33,306) 10,762
---------------------------------- --------- --------- --------- ------------ ------------ ---------
Loss for the year - - - - (2,891) (2,891)
------------
Total comprehensive income - - - - (2,891) (2,891)
---------------------------------- --------- --------- --------- ------------ ------------ ---------
Issue of shares 55 8,262 - - - 8,317
Cost of share issue - (240) - - - (240)
Share options exercised - - (117) - 117 -
Share based payments - - 682 - - 682
------------
Total contributions by
and distributions to owners
of the Company 55 8,022 565 - 117 8,759
---------------------------------- --------- --------- --------- ------------ ------------ ---------
Balance at 30 September
2016 11,842 39,644 1,224 - (36,080) 16,630
---------------------------------- --------- --------- --------- ------------ ------------ ---------
CONSOLIDATED STATEMENT OF CASH FLOW
FOR THE YEARED 30 SEPTEMBER 2016
Year ended Year ended
30 September 30 September
2016 2015
GBP'000 GBP'000
Cash flow from operating activities
Loss from operations (2,895) (1,607)
Foreign currency losses 20 48
Other non-cash income & expenses (19) (52)
Depletion & impairment 78 82
Share based payment charge 682 378
(Increase) in inventories (1) (2)
Decrease in trade and other
receivables 9 262
Increase/(decrease) in trade
and other payables 262 (167)
--------------------------------------- ------------- -------------
Net cash (outflow) from operating
activities (1,864) (1,058)
--------------------------------------- ------------- -------------
Cash flows from investing activities
Expenditures on exploration
& evaluation assets (458) (1,013)
Expenditures on oil & gas properties
& PPE (266) (40)
Payments for acquisition of
associate (1,150) -
Payments to acquire available
for sale investments - (580)
Loans advanced to investee
companies (1,216) (531)
Acquisition of subsidiaries,
net of cash acquired (1,257) (1,493)
--------------------------------------- ------------- -------------
Net cash (outflow) from investing
activities (4,347) (3,657)
--------------------------------------- ------------- -------------
Cash flows from financing activities
Proceeds from issue of share
capital 4,416 8,630
Share issue costs (240) (492)
Proceeds from loan & borrowings - 622
Repayments of loan & borrowings (111) (557)
Finance costs paid - (81)
Receipts from settlements of
financial instrument - 201
--------------------------------------- ------------- -------------
Net cash inflow from financing
activities 4,065 8,323
--------------------------------------- ------------- -------------
Net change in cash and cash
equivalents (2,146) 3,608
Cash and cash equivalents at
beginning of period 4,590 982
Cash and cash equivalents at
end of period 2,444 4,590
--------------------------------------- ------------- -------------
COMPANY STATEMENT OF CASH FLOW
FOR THE YEARED 30 SEPTEMBER 2016
Year ended Year ended
30 September 30 September
2016 2015
GBP'000 GBP'000
Cash flow from operating activities
(Loss) from operations (2,785) (1,627)
Foreign currency losses 1 48
Share based payment charge 682 378
Decrease in trade and other
receivables 76 277
(Decrease) in trade and other
payables (14) (183)
--------------------------------------- ------------- -------------
Net cash (outflow) from operating
activities (2,040) (1,107)
--------------------------------------- ------------- -------------
Cash flows from investing activities
Expenditures on exploration
& evaluation assets (80) (662)
Payments for acquisition of
subsidiaries (1,257) (1,512)
Payments for acquisition of
associate (1,150) -
Payments to acquire available
for sale investments - (580)
Loans advanced to investee
companies (1,216) (531)
Loan advanced to subsidiary (412) (452)
--------------------------------------- ------------- -------------
Net cash (outflow) from investing
activities (4,115) (3,737)
--------------------------------------- ------------- -------------
Cash flows from financing activities
Proceeds from issue of share
capital 4,416 8,630
Share issue costs (240) (492)
Proceeds from loan & borrowings - 622
Repayments of loan & borrowings (111) (557)
Finance costs paid - (81)
Receipts from settlements of
financial instrument - 201
--------------------------------------- ------------- -------------
Net cash inflow from financing
activities 4,065 8,323
--------------------------------------- ------------- -------------
Net change in cash and cash
equivalents (2,090) 3,479
Cash and cash equivalents at
beginning of period 4,461 982
Cash and cash equivalents at
end of period 2,371 4,461
--------------------------------------- ------------- -------------
NOTES TO THE FINANCIAL STATEMENTS
1. Principal Accounting Policies
Basis of Preparation
UK Oil and Gas Investments PLC is a company incorporated in the
United Kingdom. The Company's shares are listed on the AIM market
of the London Stock Exchange.
The Consolidated Financial Statements are for the year ended 30
September 2016 and have been prepared under the historical cost
convention and in accordance with International Financial Reporting
Standards as adopted by the EU ("adopted IFRS"). These Consolidated
Financial Statements (the "Financial Statements") have been
prepared and approved by the Directors on 27 February 2017 and
signed on their behalf by Stephen Sanderson and Kiran Morzaria.
The accounting policies have been applied consistently
throughout the preparation of these Financial Statements, and the
financial report is presented in Pound Sterling (GBP) and all
values are rounded to the nearest thousand pounds (GBP'000) unless
otherwise stated.
New standards, amendments and interpretations adopted by the
Company
No new and/or revised Standards and Interpretations have been
required to be adopted, and/or are applicable in the current year
by/to the Group and/or Company, as standards, amendments and
interpretations which are effective for the financial year
beginning on 1 October 2015 are not material to the Company.
New standards, amendments and interpretations not yet
adopted
At the date of authorisation of these financial statements, the
following Standards and Interpretations which have not been applied
in these financial statements, were in issue but not yet effective
for the year presented:
- IFRS 9 in respect of Financial Instruments which will be
effective for the accounting periods beginning on or after 1
January 2018.
- IFRS 14 in respect of Regulatory Deferral Accounts which will
be effective for accounting periods beginning on or after 1 January
2016.
- IFRS 15 in respect of Revenue from Contracts with Customers
which will be effective for accounting periods beginning on or
after 1 January 2018.
- IFRS 16 in respect of Leases which will be effective for
accounting periods beginning on or after 1 January 2019.
- Amendments to IFRS 10, IFRS 12 and IAS 28 in respect of the
application of the consolidation exemption to investment entities
which will be effective for accounting periods beginning on or
after 1 January 2016.
- Amendments to IFRS 10 and IAS 28 in respect of the treatment
of a Sale or Contribution of Assets between an Investor and its
Associate or Joint Venture which will be effective for accounting
periods beginning on or after 1 January 2016.
- Amendments to IFRS 11 in respect of Accounting for
Acquisitions of Interest in Joint Operations which will be
effective for accounting periods beginning on or after 1 January
2016.
- Amendments to IAS 1 in respect of determining what information
to disclose in annual financial statements which will be effective
for accounting periods beginning on or after 1 January 2016.
- Amendments to IAS 16 and IAS 38 in respect of Clarification of
Acceptable Methods of Depreciation and Amortisation which will be
effective for accounting periods beginning on or after 1 January
2016.
- Amendments to IAS 16 and IAS 41 in respect of Bearer Plants
which will be effective for accounting periods beginning on or
after 1 January 2016.
- Amendments to IAS 27 to allow entities to use the equity
method to account for investments in subsidiaries, joint ventures
and associates which will be effective for accounting periods
beginning 1 January 2016.
- Annual improvements to IFRS's which will be effective for
accounting periods beginning on or after 1 January 2016 as
follows:
o IFRS 5 - Changes in methods of disposal
o IFRS 7 - Servicing contracts
o IFRS 7 - Applicability of the amendments to IFRS 7 to
condensed interim financial statements
o IAS 19 - Discount rate: Regional market issue
o IAS 34 - Disclosure of information "elsewhere in the interim
financial report"
There are no other IFRSs or IFRIC interpretations that are not
yet effective that would be expected to have a material impact on
the Group and/or Company.
Basis of consolidation
The consolidated financial information incorporates the
financial statements of the Company and its subsidiaries (the
"Group"). Control is achieved where the Group is exposed, or has
rights, to variable returns from its involvement with the investee
and has the ability to affect those returns through its power over
the investee.
Inter-company transactions, balances and unrealised gains on
transactions between Group companies are eliminated; unrealised
losses are also eliminated unless the transaction provides evidence
of an impairment of the asset transferred.
Where necessary, adjustments are made to the financial
statements of subsidiaries to bring the accounting policies used in
line with those used by the Group.
Business combinations
Business combinations are accounted for using the acquisition
method. The consideration for acquisition is measured at the fair
values of assets given, liabilities incurred or assumed, and equity
instruments issued by the Company in order to obtain control of the
acquiree (at the date of exchange). Costs incurred in connection
with the acquisition are recognised in profit or loss as incurred.
Where a business combination is achieved in stages, previously held
interests in the acquiree are re-measured to fair value at the
acquisition date (date the Group obtains control) and the resulting
gain or loss, is recognised in profit or loss. Adjustments are made
to fair values to bring the accounting policies of acquired
businesses into alignment with those of the Group. The costs of
integrating and reorganising acquired businesses are charged to the
post acquisition profit or loss where applicable.
Revenue
Revenue is measured by reference to the fair value of
consideration received or receivable by the Group for services
provided, excluding VAT and trade discounts. Revenue is credited to
the Income Statement in the period it is deemed to be earned.
Revenue from the sale of oil and petroleum products is
recognised when the significant risks and rewards of ownership have
been transferred, which is considered to occur when title passes to
the customer. This generally occurs when the product is physically
transferred into a vessel, pipe or other delivery mechanism.
Revenue from the production of oil, in which the Group has an
interest with other producers, is recognised based on the Group's
working interest and the terms of the relevant production sharing
contracts. Differences between oil lifted and sold and the Group's
share of production are not significant.
Finance Income and Costs
Finance income and costs are reported on an accruals basis.
Oil & Gas properties ("OGP"), Exploration & Evaluation
assets
Oil and natural gas exploration, evaluation and development
expenditure is accounted for using the successful efforts method of
accounting.
(i) Pre-licence costs
Pre-licence costs are expensed in the period in which they are
incurred.
(ii) Licence and property acquisition costs
Exploration licence and leasehold property acquisition costs are
capitalised in intangible assets. Licence costs paid in connection
with a right to explore in an existing exploration area are
capitalised and amortised over the term of the permit.
Licence and property acquisition costs are reviewed at each
reporting date to confirm that there is no indication that the
carrying amount exceeds the recoverable amount. This review
includes confirming that exploration drilling is still under way or
firmly planned, or that it has been determined, or work is under
way to determine that the discovery is economically viable based on
a range of technical and commercial considerations and that
sufficient progress is being made on establishing development plans
and timing.
If no future activity is planned or the licence has been
relinquished or has expired, the carrying value of the licence and
property acquisition costs are written off through the statement of
profit or loss and other comprehensive income. Upon recognition of
proved reserves and internal approval for development, the relevant
expenditure is transferred to oil and gas properties.
(iii) Exploration and evaluation costs
Exploration and evaluation activity involves the search for
hydrocarbon resources, the determination of technical feasibility
and the assessment of commercial viability of an identified
resource.
Once the legal right to explore has been acquired, costs
directly associated with an exploration well are capitalised as
exploration and evaluation intangible assets until the drilling of
the well is complete and the results have been evaluated. These
costs include directly attributable employee remuneration,
materials and fuel used, rig costs and payments made to
contractors.
If no potentially commercial hydrocarbons are discovered, the
exploration asset is written off through the statement of profit or
loss and other comprehensive income as a dry hole. If extractable
hydrocarbons are found and, subject to further appraisal activity
(e.g., the drilling of additional wells), it is probable that they
can be commercially developed, the costs continue to be carried as
an intangible asset while sufficient/continued progress is made in
assessing the commerciality of the hydrocarbons. Costs directly
associated with appraisal activity undertaken to determine the
size, characteristics and commercial potential of a reservoir
following the initial discovery of hydrocarbons, including the
costs of appraisal wells where hydrocarbons were not found, are
initially capitalised as an intangible asset.
All such capitalised costs are subject to technical, commercial
and management review, as well as review for indicators of
impairment at least once a year. This is to confirm the continued
intent to develop or otherwise extract value from the discovery.
When this is no longer the case, the costs are written off through
the statement of profit or loss and other comprehensive income.
When proved reserves of oil and natural gas are identified and
development is sanctioned by management, the relevant capitalised
expenditure is first assessed for impairment and (if required) any
impairment loss is recognised, then the remaining balance is
transferred to oil and gas properties. Other than licence costs, no
amortisation is charged during the exploration and evaluation
phase.
(iv) Development costs
Expenditure on the construction, installation or completion of
infrastructure facilities such as platforms, pipelines and the
drilling of development wells, including unsuccessful development
or delineation wells, is capitalised
within oil and gas properties.
Oil and gas properties and other property, plant and
equipment
(i) Initial recognition
Oil and gas properties and other property, plant and equipment
are stated at cost, less accumulated depreciation and accumulated
impairment losses.
The initial cost of an asset comprises its purchase price or
construction cost, any costs directly attributable to bringing the
asset into operation, the initial estimate of the decommissioning
obligation and, for qualifying assets (where relevant), borrowing
costs. The purchase price or construction cost is the aggregate
amount paid and the fair value of any other consideration given to
acquire the asset. The capitalised value of a finance lease is also
included within property, plant and equipment.
When a development project moves into the production stage, the
capitalisation of certain construction/development costs ceases,
and costs are either regarded as part of the cost of inventory or
expensed, except for costs which qualify for capitalisation
relating to oil and gas property asset additions, improvements or
new developments.
(ii) Depreciation/amortisation
Oil and gas properties are depreciated/amortised on a
unit-of-production basis over the total proved developed and
undeveloped reserves of the field concerned, except in the case of
assets whose useful life is shorter than the lifetime of the field,
in which case the straight-line method is applied. Rights and
concessions are depleted on the unit-of-production basis over the
total proved developed and undeveloped reserves of the relevant
area.
The unit-of-production rate calculation for the
depreciation/amortisation of field development costs takes into
account expenditures incurred to date, together with sanctioned
future development expenditure. Other property, plant and equipment
are generally depreciated on a straight-line basis over their
estimated useful lives, which is generally 20 years for refineries,
and major inspection costs are amortised over three to five years,
which represents the estimated period before the next planned major
inspection. Property, plant and equipment held under finance leases
are depreciated over the shorter of lease term and estimated useful
life. An item of property, plant and equipment and any significant
part initially recognised is derecognised upon disposal or when no
future economic benefits are expected from its use or disposal. Any
gain or loss arising on derecognition of the asset (calculated as
the difference between the net disposal proceeds and the carrying
amount of the asset) is included in the statement of profit or loss
and other comprehensive income when the asset is derecognised.
The asset's residual values, useful lives and methods of
depreciation/amortisation are reviewed at each reporting period and
adjusted prospectively, if appropriate.
(ii) Major maintenance, inspection and repairs
Expenditure on major maintenance refits, inspections or repairs
comprises the cost of replacement assets or parts of assets,
inspection costs and overhaul costs. Where an asset, or part of an
asset that was separately depreciated and is now written off is
replaced and it is probable that future economic benefits
associated with the item will flow to the Group, the expenditure is
capitalised. Where part of the asset replaced was not separately
considered as a component and therefore not depreciated separately,
the replacement value is used to estimate the carrying amount of
the replaced asset(s) and is immediately written off. Inspection
costs associated with major maintenance programmes are capitalised
and amortised over the period to the next inspection. All other
day-to-day repairs and maintenance costs are expensed as
incurred.
Provision for rehabilitation / Decommissioning Liability
The Group recognises a decommissioning liability where it has a
present legal or constructive obligation as a result of past
events, and it is probable that an outflow of resources will be
required to settle the obligation, and a reliable estimate of the
amount of obligation can be made.
Provision for rehabilitation / Decommissioning Liability
The obligation generally arises when the asset is installed or
the ground/environment is disturbed at the field location. When the
liability is initially recognised, the present value of the
estimated costs is capitalised by increasing the carrying amount of
the related oil and gas assets to the extent that it was incurred
by the development/construction of the field. Any decommissioning
obligations that arise through the production of inventory are
expensed when the inventory item is recognised in cost of goods
sold.
Changes in the estimated timing or cost of decommissioning are
dealt with prospectively by recording an adjustment to the
provision and a corresponding adjustment to oil and gas assets.
Any reduction in the decommissioning liability and, therefore,
any deduction from the asset to which it relates, may not exceed
the carrying amount of that asset. If it does, any excess over the
carrying value is taken immediately to the statement of profit or
loss and other comprehensive income.
If the change in estimate results in an increase in the
decommissioning liability and, therefore, an addition to the
carrying value of the asset, the Group considers whether this is an
indication of impairment of the asset as a whole, and if so, tests
for impairment. If, for mature fields, the estimate for the revised
value of oil and gas assets net of decommissioning provisions
exceeds the recoverable value, that portion of the increase is
charged directly to expense. Over time, the discounted liability is
increased for the change in present value based on the discount
rate that reflects current market assessments and the risks
specific to the liability. The periodic unwinding of the discount
is recognised in the statement of profit or loss and other
comprehensive income as a finance cost. The Company recognises
neither the deferred tax asset in respect of the temporary
difference on the decommissioning liability nor the corresponding
deferred tax liability in respect of the temporary difference on a
decommissioning asset.
Taxation
Current tax is the tax currently payable based on taxable profit
for the year.
Deferred income taxes are calculated using the liability method
on temporary differences. Deferred tax is generally provided on the
difference between the carrying amounts of assets and liabilities
and their tax bases. However, deferred tax is not provided on the
initial recognition of goodwill, nor on the initial recognition of
an asset or liability unless the related transaction is a business
combination or affects tax or accounting profit. Deferred tax on
temporary differences associated with shares in subsidiaries and
joint ventures is not provided if reversal of these temporary
differences can be controlled by the Company and it is probable
that reversal will not occur in the foreseeable future. In
addition, tax losses available to be carried forward as well as
other income tax credits to the Company are assessed for
recognition as deferred tax assets.
Deferred tax liabilities are provided in full, with no
discounting. Deferred tax assets are recognised to the extent that
it is probable that the underlying deductible temporary differences
will be able to be offset against future taxable income. Current
and deferred tax assets and liabilities are calculated at tax rates
that are expected to apply to their respective period of
realisation, provided they are enacted or substantively enacted at
the balance sheet date.
Changes in deferred tax assets or liabilities are recognised as
a component of tax expense in the income statement, except where
they relate to items that are charged or credited directly to
equity in which case the related deferred tax is also charged or
credited directly to equity.
Financial Assets
Financial assets are divided into the following categories:
loans and receivables and available-for-sale financial assets.
Financial assets are assigned to the different categories by
management on initial recognition, depending on the purpose for
which they were acquired, and are recognised when the Group becomes
party to contractual arrangements. Both loans and receivables and
available for sale financial assets are initially recorded at fair
value.
Loans and receivables are non-derivative financial assets with
fixed or determinable payments that are not quoted in an active
market. Trade, most other receivables and cash and cash equivalents
fall into this category of financial assets. Loans and receivables
are measured subsequent to initial recognition at amortised cost
using the effective interest method, less provision for impairment.
Any change in their value through impairment or reversal of
impairment is recognised in the income statement.
Provision against trade receivables is made when there is
objective evidence that the Group will not be able to collect all
amounts due to it in accordance with the original terms of those
receivables. The amount of the write-down is determined as the
difference between the asset's carrying amount and the present
value of estimated future cash flows.
A financial asset is derecognised only where the contractual
rights to the cash flows from the asset expire or the financial
asset is transferred and that transfer qualifies for derecognition.
A financial asset is transferred if the contractual rights to
receive the cash flows of the asset have been transferred or the
Group retains the contractual rights to receive the cash flows of
the asset but assumes a contractual obligation to pay the cash
flows to one or more recipients. A financial asset that is
transferred qualifies for derecognition if the Group transfers
substantially all the risks and rewards of ownership of the asset,
or if the Group neither retains nor transfers substantially all the
risks and rewards of ownership but does transfer control of that
asset.
Derivative instruments are recorded at cost, and adjust for
their market value as applicable. They are assessed for any equity
and debt component which is subsequently accounted for in
accordance with IFRS's. The Group's and Company's only derivative
is considered to be the Equity Swap Arrangement as detailed in Note
16, which is accounted for on a fair value basis in accordance with
the terms of the agreement, being based around the Company's share
price as traded on AIM.
Financial Liabilities
Financial liabilities are obligations to pay cash or other
financial assets and are recognised when the Group becomes a party
to the contractual provisions of the instrument.
All financial liabilities initially recognised at fair value
less transaction costs and thereafter carried at amortised cost
using the effective interest method, with interest-related charges
recognised as an expense in finance cost in the income statement. A
financial liability is derecognised only when the obligation is
extinguished, that is, when the obligation is discharged or
cancelled or expires.
Borrowing costs
Where funds are borrowed specifically to finance a project, the
amount capitalised represents the actual borrowing costs incurred.
Where surplus funds are available for a short term from funds
borrowed specifically to finance a project, the income generated
from the temporary investment of such amounts is also capitalised
and deducted from the total capitalised borrowing costs. Where the
funds used to finance a project form part of general borrowings,
the amount capitalised is calculated using a weighted average of
rates applicable to relevant general borrowings of the Group during
the period. All other borrowing costs are recognised in the
statement of profit or loss and other comprehensive income in the
period in which they are incurred.
Even though exploration and evaluation assets can be qualifying
assets, generally, they do not meet the 'probable economic
benefits' test and also are rarely debt funded. Any related
borrowing costs incurred during this phase are generally recognised
in the statement of profit or loss and other comprehensive income
in the period in which they are incurred.
Inventories
Inventories are stated at the lower of cost and net realisable
value. The cost of materials is the purchase cost, determined on
first-in, first-out basis. The cost of crude oil and refined
products is the purchase cost, the cost of refining, including the
appropriate proportion of depreciation, depletion and amortisation
and overheads based on normal operating capacity, determined on a
weighted average basis. The net realisable value of crude oil and
refined products is based on the estimated selling price in the
ordinary course of business, less the estimated costs of completion
and the estimated costs necessary to make the sale.
Cash and Cash Equivalents
Cash and cash equivalents comprise cash on hand and demand
deposits, together with other short-term, highly liquid investments
that are readily convertible into known amounts of cash and which
are subject to an insignificant risk of changes in value.
Share-Based Payments
The Group operates a number of equity-settled, share-based
compensation plans, under which the entity receives services from
employees as consideration for equity instruments (options) of the
Company. The fair value of the employee services received in
exchange for the grant of the options is recognised as an expense.
The total amount to be expensed is determined by reference to the
fair value of the options granted:
-- Including any market performance conditions;
-- Excluding the impact of any service and non-market
performance vesting conditions (for example, profitability or sales
growth targets, or remaining an employee of the entity over a
specified time period; and
-- Including the impact of any non-vesting conditions (for
example, the requirement for employees to save).
Non-market vesting conditions are included in assumptions about
the number of options that are expected to vest. The total expense
is recognised over the vesting period, which is the period over
which all of the specified vesting conditions are to be
satisfied.
In addition, in some circumstances, employees may provide
services in advance of the grant date, and therefore the grant-date
fair value is estimated for the purposes of recognising the expense
during the period between service commencement period and grant
date.
At the end of each reporting period, the entity revises its
estimates of the number of options that are expected to vest based
on the non-market vesting conditions. It recognises the impact of
the revision to original estimates, if any, in profit or loss, with
a corresponding adjustment to equity.
When the options are exercised, the Company issues new shares.
The proceeds received, net of any directly attributable transaction
costs, are credited to share capital (nominal value) and share
premium.
Equity
Equity comprises the following:
"Share capital" representing the nominal value of equity
shares.
"Share premium" representing the excess over nominal value of
the fair value of consideration received for equity shares, net of
expenses of the share issue.
"Share based payment reserve" represents the value of equity
benefits provided to employees and directors as part of their
remuneration and provided to consultants and advisors hired by the
Group from time to time as part of the consideration paid.
"Revaluation reserve" represents the unrealised gain or loss on
fair/market value movement on available for sale investments,
derivative financial instruments and other assets which are valued
at their fair value at the balance sheet date.
"Retained earnings" represents retained profits and
(losses).
Foreign Currencies
Transactions in foreign currencies are translated at the
exchange rate ruling at the date of the transaction. Monetary
assets and liabilities in foreign currencies are translated at the
rates of exchange ruling at the balance sheet date. Non-monetary
items that are measured at historical cost in a foreign currency
are translated at the exchange rate at the date of the transaction.
Non-monetary items that are measured at fair value in a foreign
currency are translated using the exchange rates at the date when
the fair value was determined. Any exchange differences arising on
the settlement of monetary items or on translating monetary items
at rates different from those at which they were initially recorded
are recognised in the profit or loss in the period in which they
arise. Exchange differences on non-monetary items are recognised in
other comprehensive income to the extent that they relate to a gain
or loss on that non-monetary item taken to other comprehensive
income, otherwise such gains and losses are recognised in the
income statement.
The Group and Company's functional currency and presentational
currency is Sterling.
Significant accounting judgements, estimates and assumptions
The preparation of the Group's consolidated financial statements
requires management to make judgements, estimates and assumptions
that affect the reported amounts of revenues, expenses, assets and
liabilities, and the accompanying disclosures, and the disclosure
of contingent liabilities at the date of the consolidated financial
statements. Estimates and assumptions are continuously evaluated
and are based on management's experience and other factors,
including expectations of future events that are believed to be
reasonable under the circumstances. Uncertainty about these
assumptions and estimates could result in outcomes that require a
material adjustment to the carrying amount of assets or liabilities
affected in future periods.
In particular, the Group has identified the following areas
where significant judgements, estimates and assumptions are
required. Further information on each of these areas and how they
impact the various accounting policies are described below and also
in the relevant notes to the financial statements.
Changes in estimates are accounted for prospectively.
(i) Judgements
In the process of applying the Group's accounting policies,
management has made the following judgements, which have the most
significant effect on the amounts recognised in the consolidated
financial statements:
(a) Contingencies
Contingent liabilities may arise from the ordinary course of
business in relation to claims against the Group, including legal,
contractor, land access and other claims. By their nature,
contingencies will be resolved only when one or more uncertain
future events occur or fail to occur. The assessment of the
existence, and potential quantum, of contingencies inherently
involves the exercise of significant judgement and the use of
estimates regarding the outcome of future events.
(ii) Estimates and assumptions
The key assumptions concerning the future and other key sources
of estimation uncertainty at the reporting date that have a
significant risk of causing a material adjustment to the carrying
amounts of assets and liabilities within the next financial year,
are described below. The Group based its assumptions and estimates
on parameters available when the consolidated financial statements
were prepared. Existing circumstances and assumptions about future
developments, however, may change due to market change or
circumstances arising beyond the control of the Group. Such changes
are reflected in the assumptions when they occur.
(a) Hydrocarbon reserve and resource estimates
Hydrocarbon reserves are estimates of the amount of hydrocarbons
that can be economically and legally extracted from the Group's oil
and gas properties. The Group estimates its commercial reserves and
resources based on information compiled by appropriately qualified
persons relating to the geological and technical data on the size,
depth, shape and grade of the hydrocarbon body and suitable
production techniques and recovery rates. Commercial reserves are
determined using estimates of oil and gas in place, recovery
factors and future commodity prices, the latter having an impact on
the total amount of recoverable reserves and the proportion of the
gross reserves which are attributable to the host government under
the terms of the Production-Sharing Agreements. Future development
costs are estimated using assumptions as to the number of wells
required to produce the commercial reserves, the cost of such wells
and associated production facilities, and other capital costs. The
current long-term Brent oil price assumption used in the estimation
of commercial reserves is US$80/bbl. The carrying amount of oil and
gas development and production assets at 30 September 2016 is shown
in Note 10.
The Group estimates and reports hydrocarbon reserves in line
with the principles contained in the SPE Petroleum Resources
Management Reporting System (PRMS) framework. As the economic
assumptions used may change and as additional geological
information is obtained during the operation of a field, estimates
of recoverable reserves may change. Such changes may impact the
Group's reported financial position and results, which include:
-- The carrying value of exploration and evaluation assets; oil
and gas properties; property, plant and equipment; and goodwill may
be affected due to changes in estimated future cash flows
-- Depreciation and amortisation charges in the statement of
profit or loss and other comprehensive income may change where such
charges are determined using the Units of Production (UOP) method,
or where the useful life of the related assets change
-- Provisions for decommissioning may require revision - where
changes to the reserve estimates affect expectations about when
such activities will occur and the associated cost of these
activities
-- The recognition and carrying value of deferred tax assets may
change due to changes in the judgements regarding the existence of
such assets and in estimates of the likely recovery of such
assets
(b) Exploration and evaluation expenditures
The application of the Group's accounting policy for exploration
and evaluation expenditure requires judgement to determine whether
future economic benefits are likely, from future either
exploitation or sale, or whether activities have not reached a
stage which permits a reasonable assessment of the existence of
reserves. The determination of reserves and resources is itself an
estimation process that involves varying degrees of uncertainty
depending on how the resources are classified. These estimates
directly impact when the Group defers exploration and evaluation
expenditure. The deferral policy requires management to make
certain estimates and assumptions about future events and
circumstances, in particular, whether an economically viable
extraction operation can be established. Any such estimates and
assumptions may change as new information becomes available. If,
after expenditure is capitalised, information becomes available
suggesting that the recovery of the expenditure is unlikely, the
relevant capitalised amount is written off in the statement of
profit or loss and other comprehensive income in the period when
the new information becomes available.
(c) Units of production (UOP) depreciation of oil and gas assets
Oil and gas properties are depreciated using the UOP method over
total proved developed and undeveloped hydrocarbon reserves. This
results in a depreciation/amortisation charge proportional to the
depletion of the anticipated remaining production from the
field.
(c) Units of production (UOP) depreciation of oil and gas
assets
The life of each item, which is assessed at least annually, has
regard to both its physical life limitations and present
assessments of economically recoverable reserves of the field at
which the asset is located. These calculations require the use of
estimates and assumptions, including the amount of recoverable
reserves and estimates of future capital expenditure. The
calculation of the UOP rate of depreciation/amortisation will be
impacted to the extent that actual production in the future is
different from current forecast production based on total proved
reserves, or future capital expenditure estimates change. Changes
to proved reserves could arise due to changes in the factors or
assumptions used in estimating reserves, including:
-- The effect on proved reserves of differences between actual
commodity prices and commodity price assumptions
-- Unforeseen operational issues
(d) Recoverability of oil and gas assets
The Group assesses each asset or cash generating unit (CGU)
(excluding goodwill, which is assessed annually regardless of
indicators) each reporting period to determine whether any
indication of impairment exists. Where an indicator of impairment
exists, a formal estimate of the recoverable amount is made, which
is considered to be the higher of the fair value less costs of
disposal (FVLCD) and value in use (VIU). The assessments require
the use of estimates and assumptions such as long-term oil prices
(considering current and historical prices, price trends and
related factors), discount rates, operating costs, future capital
requirements, decommissioning costs, exploration potential,
reserves (see (a) Hydrocarbon reserves and resource estimates
above) and operating performance (which includes production and
sales volumes). These estimates and assumptions are subject to risk
and uncertainty. Therefore, there is a possibility that changes in
circumstances will impact these projections, which may impact the
recoverable amount of assets and/or CGUs.
Information on how fair value is determined by the Group
follows.
(e) Decommissioning costs
Decommissioning costs will be incurred by the Group at the end
of the operating life of some of the Group's facilities and
properties. The Group assesses its decommissioning provision at
each reporting date. The ultimate decommissioning costs are
uncertain and cost estimates can vary in response to many factors,
including changes to relevant legal requirements, the emergence of
new restoration techniques or experience at other production sites.
The expected timing, extent and amount of expenditure may also
change - for example, in response to changes in reserves or changes
in laws and regulations or their interpretation.
Therefore, significant estimates and assumptions are made in
determining the provision for decommissioning.
As a result, there could be significant adjustments to the
provisions established which would affect future financial
results.
External valuers may be used to assist with the assessment of
future decommissioning costs. The involvement of external valuers
is determined on a case by case basis, taking into account factors
such as the expected gross cost or timing of abandonment, and is
approved by the Company's Audit Committee. Selection criteria
include market knowledge, reputation, independence and whether
professional standards are maintained. The provision at reporting
date represents management's best estimate of the present value of
the future decommissioning costs required
(f) Fair value measurement
The Group measures financial instruments, such as derivatives,
at fair value at each balance sheet date. From time to time, the
fair values of non-financial assets and liabilities are required to
be determined, e.g., when the entity acquires a business, or where
an entity measures the recoverable amount of an asset or
cash-generating unit (CGU) at FVLCD.
Fair value is the price that would be received to sell an asset
or paid to transfer a liability in an orderly transaction between
market participants at the measurement date.
The fair value of an asset or a liability is measured using the
assumptions that market participants would use when pricing the
asset or liability, assuming that market participants act in their
economic best interest.
A fair value measurement of a non-financial asset takes into
account a market participant's ability to generate economic
benefits by using the asset in its highest and best use or by
selling it to another market participant that would use the asset
in its highest and best use.
The Group uses valuation techniques that are appropriate in the
circumstances and for which sufficient data are available to
measure fair value, maximising the use of relevant observable
inputs and minimising the use of unobservable inputs. From time to
time external valuers are used to assess FVLCD of the Group's
non-financial assets. Involvement of external valuers is decided
upon by the valuation committee after discussion with and approval
by the Company's Audit Committee. Selection criteria include market
knowledge, reputation, independence and whether professional
standards are maintained. Valuers are normally rotated every three
years. The valuation committee decides, after discussions with the
Group's external valuers, which valuation techniques and inputs to
use for each case.
Changes in estimates and assumptions about these inputs could
affect the reported fair value.
Going Concern
The Directors noted the losses that the Group has made for the
Year Ended 30 September 2016. The Directors have prepared cash flow
forecasts for the period ending 28 February 2018 which take account
of the current cost and operational structure of the Group.
The cost structure of the Group comprises a high proportion of
discretionary spend and therefore in the event that cash flows
become constrained, costs can be quickly reduced to enable the
Group to operate within its available funding.
These forecasts demonstrate that the Group has sufficient cash
funds available to allow it to continue in business for a period of
at least twelve months from the date of approval of these financial
statements. Accordingly, the financial statements have been
prepared on a going concern basis.
It is the prime responsibility of the Board to ensure the Group
remains a going concern. At 30 September 2016 the Company had cash
and cash equivalents of GBP2,444,000 and borrowings of GBPnil. The
Company has minimal contractual expenditure commitments and the
Board considers the present funds sufficient to maintain the
working capital of the Company for a period of at least 12 months
from the date of signing the Annual Report and Financial
Statements. For these reasons the Directors adopt the going concern
basis in the preparation of the Financial Statements.
1. Business Combinations
Acquisition of Celtique Energie Weald Limited
On 13 June 2016 through UK Oil and Gas Investments PLC, the
Group announced the acquisition of 100 per cent of the entire
issued share capital of Celtique Energie Weald Limited. The company
was re-named Kimmeridge Oil & Gas Limited.
The total consideration of GBP3.5 million comprised GBP1.25
million in cash and GBP2.25 million in the form of 142,648,831 UKOG
ordinary shares. The acquisition was completed and shares issued on
5 August 2016.
Through the business combination the Group acquired the
following assets:
-- Weald Basin licence, PEDL234, a 300 sq km area, more than
doubling the Group's net acreage holdings in the prime Kimmeridge
Limestone Oil province.
The assets and liabilities arising on the day of the acquisition
are as follows:
Celtique
Energie
Weald
Limited Fair Total
Fair Value Fair
Value Adjustments Value
-------------------------------- --------- ------------- --------
GBP'000 GBP'000 GBP'000
Intangible Assets: Exploration
Costs 4,536 - 4,536
Net identifiable assets
acquired at fair value 4,536 - 4,536
- - -
-------------------------------- --------- ------------- --------
Total consideration 3,507 - 3,507
-------------------------------- --------- ------------- --------
Negative goodwill on purchase 1,029
-------------------------------- --------- ------------- --------
Total cash outflow on the
acquisition is as follows:
Cash paid 1,257
Net cash acquired with
the subsidiaries -
--------
Net consolidated cash flow 1,257
--------
Acquisition of Northern Petroleum Companies
On 19 October 2014 through UK Oil and Gas Investments PLC, the
Group acquired 100 per cent of the entire issued share capital of
Northern Petroleum (GB) Limited, NP Weald Limited and NP Solent
Limited. The companies were re-named UKOG (GB) Limited, UKOG Weald
Limited and UKOG Solent Limited.
Through the business combination the Group acquired the
following assets:
-- The Horndean (UKOG 10%) and Avington (UKOG 5%) onshore
producing oil fields, producing around 17 barrels of oil per day
("bopd") net to UKOG; both fields are operated by IGas.
-- Offshore Isle of Wight exploration licence, P1916 (UKOG 100%
and operator), containing the significant, drill-ready M prospect,
with primary targets in the Jurassic Upper Portland Limestone and
Triassic Sherwood Sandstone.
-- The Baxters Copse (UKOG 50%, IGas operator, PEDL233) and
Markwells Wood (UK 100% and operator, PEDL126) onshore oil
discoveries.
The assets and liabilities arising on the day of the acquisition
are as follows:
Northern
Petroleum NP
(GB) NP Weald Solent
Limited Limited Limited Total
Fair Fair Fair Fair
Value Value Value Value
--------------------------------------- ----------- --------- --------- --------
GBP'000 GBP'000 GBP'000 GBP'000
Intangible Assets: Exploration
Costs - 264 32 296
Tangible Assets: Oil Properties 1,609 - - 1,609
Cash and cash equivalents 19 - - 19
Trade and other receivables 78 1 14 93
Other current assets 1 - - 1
Trade and Other Payables (101) - (46) (147)
Provisions (282) (77) - (359)
Net identifiable assets/(liabilities)
acquired at fair value 1,324 188 - 1,512
Goodwill on purchase - - - -
--------------------------------------- ----------- --------- --------- --------
Total consideration 1,324 188 - 1,512
--------------------------------------- ----------- --------- --------- --------
Total cash outflow on the
acquisition is as follows:
Cash paid 1,512
Net cash acquired with
the subsidiaries (19)
--------
Net consolidated cash flow 1,493
--------
2. Segment Reporting
All of the Group's assets and operations are located in the
United Kingdom. For management purposes, the Group is organised
into business units based on the main types of activities and has
three reportable segments, as follows:
-- Oil exploration and production segment: includes producing business activities
-- Oil exploration and evaluation: includes non-producing activities.
-- Head Office, corporate and administrative, including parent company activities.
The Board of Directors monitors the operating results of its
business units separately for the purpose of making decisions about
resource allocation and performance assessment. Segment performance
is evaluated based on operating profit or loss and is measured
consistently with operating profit or loss in the consolidated
financial statements. However, the Group's financing (including
finance costs and finance income) and income taxes are managed on a
Group basis and are not allocated to operating segments.
The accounting policies used by the Group in reporting segments
internally are the same as those used in the financial
statements.
Subject to further acquisitions and/or disposals, the Group
expects to further review its segmental information during the
forthcoming financial year, as it begins to see the full impact of
its acquisitions and/or disposals.
Group Oil production Oil exploration Corporate
& exploration & evaluation & Administrative Consolidated
Year ended 30 September GBP'000 GBP'000 GBP'000 GBP'000
2016
------------------------- --------------- ---------------- ------------------ -------------
Revenue
External Customers 151 - - 151
Total revenue 151 - - 151
------------------------- --------------- ---------------- ------------------ -------------
Results
Depletion & impairment (78) - - (78)
Share of associates
loss - (106) - (106)
(Loss) before& after
taxation (35) (106) (1,831) (1,972)
------------------------- --------------- ---------------- ------------------ -------------
Segment assets 2,162 10,052 6,305 18,519
------------------------- --------------- ---------------- ------------------ -------------
Segment liabilities (310) (341) (299) (950)
------------------------- --------------- ---------------- ------------------ -------------
Other disclosures:
Investment in associate - 2,800 - 2,800
Capital expenditure
(1) 320 4,940 - 5,260
------------------------- --------------- ---------------- ------------------ -------------
(1) Capital expenditure consists of capitalised exploration
expenditure, development expenditure, additions to oil & gas
properties and to other intangible assets including expenditure on
assets from the acquisition of subsidiaries.
Group Oil production Oil exploration Corporate
& exploration & evaluation & Administrative Consolidated
Year ended 30 September GBP'000 GBP'000 GBP'000 GBP'000
2015
------------------------- --------------- ---------------- ------------------ -------------
Revenue
External Customers 240 - - 240
Total revenue 240 - - 240
------------------------- --------------- ---------------- ------------------ -------------
Results
Depletion & impairment (82) - - (82)
Share of associates
loss - (69) - (69)
Profit/(loss) before&
after taxation 37 (84) (1,648) (1,695)
------------------------- --------------- ---------------- ------------------ -------------
Segment assets 1,907 4,078 5,596 11,581
------------------------- --------------- ---------------- ------------------ -------------
Segment liabilities (297) (78) (424) (799)
------------------------- --------------- ---------------- ------------------ -------------
Other disclosures:
Investment in associate - 352 - 352
Investment in available
for sale investments - 580 - 580
Capital expenditure
(1) 251 802 - 1,053
------------------------- --------------- ---------------- ------------------ -------------
(1) Capital expenditure consists of capitalised exploration
expenditure, development expenditure, additions to oil & gas
properties and to other intangible assets including expenditure on
assets from the acquisition of subsidiaries.
3. Operating Loss
2016 2015
Group GBP'000 GBP'000
--------------------------------- -------- --------
Operating (loss) is stated
after charging:
- Directors remuneration 489 628
- Auditors' remuneration;
Audit-related assurance
services 20 25
Other compliance services - -
Tax compliance - -
- Depletion & impairment
of oil & gas properties 78 82
------------------------------------ -------- --------
4. Directors and Employees
The Company employed the services of 3 Directors (2015: 3).
Remuneration in respect of these executive and non-executive
Directors was:
2016 2015
Group GBP'000 GBP'000
-------------------------------------- -------- --------
Employment costs, including
Directors, during the year:
Wages and salaries 413 34
Consultancy fees 76 594
Share based payments 577 -
-------- --------
1,066 628
-------- --------
Average number of persons, including
executive Directors employed No. No.
Administration 3 3
3 3
-------- --------
Directors' remuneration GBP'000 GBP'000
-------- --------
Emoluments 1,066 628
No. No.
Number of Directors in
money purchase pension
schemes - -
The amounts set out above include remuneration
in respect of the directors' are as follows:
2016 2015
GBP'000 GBP'000
-------------------------------------- -------- --------
David Lenigas (resigned
8 July 2015) - 170
Donald Strang (resigned
23 October 2015) 1 245
Jason Berry 366 162
Stephen Sanderson 607 51
Kiran Morzaria (appointed
23 October 2015) 92 -
Total Directors Emoluments 1,066 628
-------- --------
5. Finance costs
2016 2015
Group GBP'000 GBP'000
Loan interest - 35
Loan arrangement fee - 46
Total finance costs - 81
--------- --------
6. Income Tax
There is no tax credit on the loss for the current or prior
year. The tax assessed for the year differs from the standard rate
of corporation tax in the UK as follows:
2016 2015
Group GBP'000 GBP'000
------------------------------------ --------- ---------
Loss for the year before
tax (1972) (1,695)
Tax rate 20% 20/21%
-------------------------------------- --------- ---------
Expected tax credit (394) (348)
Differences between capital
allowances and depreciation - -
Expenses not deductible
for tax purposes 136 78
Future income tax benefit
not brought to account 258 270
-------------------------------------- --------- ---------
Actual tax expense - -
-------------------------------------- --------- ---------
No deferred tax asset has been recognised because
there is uncertainty of the timing of suitable
future profits against which they can be recovered.
7. Loss per Share
The calculation of the basic loss per share is calculated by
dividing the consolidated loss attributable to the equity holders
of the Company by the weighted average number of ordinary shares in
issue during the year.
2016 2015
Group GBP'000 GBP'000
------------------------------------- -------------- --------------
(Loss) attributable to ordinary
shareholders (1,972) (1,695)
-------------------------------------- -------------- --------------
Number Number
------------------------------------- -------------- --------------
Weighted average number of ordinary
shares for
calculating basic loss per share 2,177,913,909 1,770,767,449
-------------------------------------- -------------- --------------
Pence Pence
------------------------------------- -------------- --------------
Basic and diluted loss per
share (0.09) (0.10)
-------------------------------------- -------------- --------------
As inclusion of the potential ordinary shares would result in a
decrease in the earnings per share they are considered to be
anti-dilutive, as such, a diluted earnings per share is not
included..
8. Exploration & evaluation assets
Group Company
GBP'000 GBP'000
--------------------------- -------- --------
Cost & Net Book Value
As at 1 October 2014 - -
Acquired through Business
Combinations 296 -
Additions 1,013 662
---------------------------- -------- --------
As at 30 September 2015 1,309 662
---------------------------- -------- --------
Acquired through Business
Combinations 4,420 -
Additions 458 80
---------------------------- -------- --------
As at 30 September 2016 6,187 742
---------------------------- -------- --------
During the year, there has been no impairment charged, or
considered there required to be. The Directors have assessed the
fair value of the exploration & evaluation assets as at 30
September 2016, and have concluded at this time there is no
requirement to impair and reduce the carrying value whilst they
continue to explore and assess these licence areas, further to the
detail below.
Exploration and evaluation activity involves the search for
hydrocarbon resources, the determination of technical feasibility
and the assessment of commercial viability of an identified
resource. The additions during the year reflect the multiple
acquisitions and associated exploration and evaluation activities.
As this point the Company is still assessing the potential of these
assets, and will continue to develop and evaluate these assets in
the coming year. Since the acquisition date there has been no
material changes to the Licence areas. The directors therefore
consider that no impairment is required at 30 September 2016.
9. Oil & gas properties
Oil
Oil & gas
& gas Property, Properties
properties plant & equipment Total Total
2016 2016 2016 2015
Group GBP'000 GBP'000 GBP'000 GBP'000
--------------------------- ------------- ------------------- -------- ------------
Cost
As at 1 October 1,648 - 1,648 1,608
Acquired through Business
Combinations - 116 116 40
Additions 12 254 266 -
--------------------------- ------------- ------------------- -------- ------------
As at 30 September 1,660 370 2,030 1,648
--------------------------- ------------- ------------------- -------- ------------
Depletion & impairment
As at 1 October (82) - (82) -
Depletion charge (78) - (78) (82)
--------------------------- ------------- ------------------- -------- ------------
As at 30 September (160) - (160) (82)
--------------------------- ------------- ------------------- -------- ------------
Carrying value
As at 30 September 1,500 370 1,870 1,566
--------------------------- ------------- ------------------- -------- ------------
Impairment review
The Directors have carried out an impairment review as at 30
September 2016, and determined that an impairment charge is not
currently required. The Directors based this assessment ongoing
production from Hordean and in the case of Avington the operational
optimisation that is ongoing to improve operational
efficiencies.
10. Investment in Subsidiaries
Company 2016 2015
GBP'000 GBP'000
------------------- -------- --------
Cost and net book
amount
At 1 October 1,512 -
Additions in the
year 3,507 1,512
At 30 September 5,019 1,512
--------------------- -------- --------
The Company holds more than 50 per cent of the share capital of
the following companies as at 30 September 2016:
Country Proportion Functional Nature of
Company of Registration held Currency business
UKOG (GB) Limited UK 100% GBGBP Oil production
UKOG Solent Limited UK 100% GBGBP Oil exploration
UKOG Weald Limited UK 100% GBGBP Oil exploration
Kimmeridge Oil
& Gas Limited UK 100% GBGBP Oil exploration
11. Investment in Associate
Group & Company 2016 2015
GBP'000 GBP'000
----------------------------------- -------- --------
Carrying Value as at 1 October 2,063 -
Re-classification from available
for sale investments - 1,780
Equity additions at cost 2,800 352
Share of associates loss
for the year (106) (69)
------------------------------------ -------- --------
Carrying Value as at 30 September 4,757 2,063
------------------------------------ -------- --------
On 6 March 2015, the Company acquired a further 8% interest in
Horse Hill Developments Ltd ("Horse Hill") for a cash consideration
of GBP580,000, thus increasing the Company's holding to 28%. At
this point the interest was deemed to qualify as that of an
associate company and the investment re-classified from this date.
A further 2% holding was acquired on 12 March 2015, for GBP352,000
payable by the issue of 44million Ordinary Shares in UK Oil &
Gas Investments PLC, at a price of 0.8p per share. This acquisition
took the Company's interest in Horse Hill to a 30%
shareholding.
On 15 April 2016, the Company acquired a further 12% interest in
Horse Hill for a total consideration of GBP1,800,000, payable as
GBP1,000,000 in cash and GBP800,000 by the issue of 43,886,116
Ordinary Shares in UK Oil & Gas Investments PLC, at a price of
1.82p per share. A further 6% interest was acquired on 21 July
2016, for total consideration of GBP1,000,000, payable as
GBP150,000 in cash and GBP850,000 by the issue of 50,981,799
Ordinary Shares in UK Oil & Gas Investments PLC at a price of
1.57p per share. These acquisitions took the Company's interest in
Horse Hill to a 48% shareholding at 30 September 2016.
Details of the Group & Company's associate
at 30 September 2016 are as follows:
Name Place Proportion Date associate Reporting Principal
of Incorporation held interest Date of activities
acquired associate
Horse Hill UK 48.0% 06/03/15 31/12/16 Oil exploration
Developments
Ltd
Summarised financial information for the Group
& Company's associate, where made publicly
available, as at 30 September 2016 is given
below:
For the period ended As at 30
30 September 2016 September
2016
Revenue (Loss) Total other Assets Liabilities
GBP'000 GBP'000 comprehensive GBP'000 GBP'000
income
GBP'000
Horse Hill
Developments
Ltd - (340) - 9,668 (6,858)
--------------------- --------------------- ----------- --------------- ----------- -------------------
12. Available for Sale Investments
2016 2015
Group & Company GBP'000 GBP'000
----------------------------------- -------- --------
Investment in unlisted securities
Valuation at 1 October 368 1,568
Additions at cost - 580
Re-classification of investment
to associate - (1,780)
------------------------------------ -------- --------
Valuation at 30 September 368 368
------------------------------------ -------- --------
On 16 May 2014, the Company completed the acquisition of a
strategic 6% shareholding in Angus Energy Plc, a company
incorporated in Scotland and resident in the UK, for a
consideration of GBP368,000, payable by the issue of 46 million
shares in the Company.
Angus Energy Plc completed a listing on the AIM Market on 14
November 2016. The Market value of the Company's shareholding as at
21 February 2017 was GBP810,000.
13. Inventory
2016 2015
Group GBP'000 GBP'000
------------------------- -------- --------
Inventories - Crude Oil 3 2
Total 3 2
-------------------------- -------- --------
14. Trade and Other Receivables
Group Company
2016 2015 2016 2015
GBP'000 GBP'000 GBP'000 GBP'000
--------------------- -------- -------- -------- --------
Trade debtors 160 26 145 26
Other debtors 594 609 546 609
Loans to related
parties (see Note
26) 2,117 901 2,117 901
Loans to subsidiary
companies - - 864 452
Prepayments and
accrued income 19 147 - 132
--------------------- -------- -------- -------- --------
Total 2,890 1,683 3,672 2,120
--------------------- -------- -------- -------- --------
The directors consider that the carrying amount of trade and
other receivables approximates to their fair value.
15. Derivative Financial Instrument
Group & Company 2016 2015
Equity Swap Agreement GBP'000 GBP'000
------------------------------------ --------- --------
Fair value at 1 October - 184
Cost of equity swap arrangement - -
Settled during the year - (201)
Gain/(loss) on settled instalments - 61
Transfer to income statement - (44)
Fair value adjustment at
30 September - -
------------------------------------- ---------- --------
Fair value carried forward
at 30 September - -
------------------------------------- ---------- --------
The Company agreed to close out the equity swap agreement on 27
October 2014, for a single final payment of GBP201,250, resulting
in a gain above the benchmark price of GBP61,250. No further equity
swap arrangements were made during the year to 30 September
2016.
16. Cash and Cash Equivalents
Group Company
2016 2015 2016 2015
GBP'000 GBP'000 GBP'000 GBP'000
------------------ -------- -------- -------- --------
Cash at bank and
in hand 2,444 4,590 2,371 4,461
------------------ -------- -------- -------- --------
Total 2,444 4,590 2,371 4,461
------------------ -------- -------- -------- --------
17. Trade and Other Payables
Group Company
------------------ ------------------
2016 2015 2016 2015
Current trade and GBP'000 GBP'000 GBP'000 GBP'000
other payables
----------------------- -------- -------- -------- --------
Trade creditors 536 117 244 101
Accruals and deferred
income 55 212 55 212
----------------------- -------- -------- -------- --------
Total 591 329 299 313
----------------------- -------- -------- -------- --------
The directors consider that the carrying amount of trade and
other payables approximates to their fair value.
19. Borrowings
Group Company
2016 2015 2016 2015
GBP'000 GBP'000 GBP'000 GBP'000
--------- -------- -------- --------
YAGM Debt facility - 111 - 111
Total - 111 - 111
-------------------- --------- -------- -------- --------
The Company entered into an unsecured US$10 million debt
facility to be provided by YA Global Master SPV Ltd ("YAGM") on 28
October 2014 to fund further investment in the UK oil and gas
sector in accordance with the Company's investing policy (the "YAGM
Facility") The facility is available to the Company for three years
from the date of the agreement. Any drawdowns by the Company under
the YAGM Facility were to be repaid in twelve equal monthly amounts
("Monthly Repayment Amount") and carry an annual interest rate of
10 per cent.
UKOG was entitled to pay the Monthly Repayments Amounts either
in cash, or at the Company's sole election, by means of conversion
of the Monthly Repayment Amount into new ordinary shares, to be
issued at a conversion price equal to 95% of the average of the
lowest 5 daily volume weighted average prices ("VWAP") during the
15 trading days prior to the scheduled repayment date. All
drawdowns under the YAGM Facility were subject to the prior
approval of YAGM.
The Company drew down US$1 million under the YAGM Facility on
signing the agreement, which was repayable at the rate of US$83,333
per month on or before 1 November 2015, together with accrued
interest. This drawdown was repaid in full on 2 November 2015, and
no further drawdowns were made.
20. Provisions - Decommissioning
2016 2015
Group GBP'000 GBP'000
---------------------------- -------- --------
As at 1 October 359 -
Acquired on acquisition of
subsidiaries - 359
Additions - -
---------------------------- -------- --------
As at 30 September 359 359
----------------------------- -------- --------
The amount provided at 30 September 2016 represents the Group's
share of decommissioning liabilities in respect of the producing
Horndean and Avington fields, and the Markwells Wood and Havant
drilling sites.
The Company makes full provision for the future cost of
decommissioning oil production facilities and pipelines on a
discounted basis on the installation of those facilities. The
decommissioning provision represents the present value of
decommissioning costs relating to oil and gas properties. At this
point in time it is uncertain as to when some of these
decommissioning costs will occur given current plans by the Company
which may change when operations cease. Therefore the Directors
have taken a conservative approach and not discounted these values.
These provisions have been created based on the Company's internal
estimates. Assumptions based on the current economic environment
have been made, which management believes are a reasonable basis
upon which to estimate the future liability. These estimates are
reviewed regularly to take into account any material changes to the
assumptions. However, actual decommissioning costs will ultimately
depend upon future market prices for the necessary decommissioning
works required that will reflect market conditions at the relevant
time. Furthermore, the timing of decommissioning is likely to
depend on when the fields cease to produce at economically viable
rates. This, in turn, will depend upon future oil and gas prices,
which are inherently uncertain.
21. Share Capital
Number
Ordinary Shares of
ordinary Nominal Total
shares Value Value
GBP GBP'000
Issued at 30 September 2014 1,423,063,508 0.0001 142
On 15 October 2014, placing
for cash at 1.2p per share 166,666,667 0.0001 17
On 28 November 2014, warrants
exercised at 0.35p pere share 59,333,334 0.0001 6
On 13 March 2015, issue of
shares at 0.8p per share for
acquisition 44,000,000 0.0001 4
On 17 April 2015, exercise
of warrants and options at
0.4p, & 1.48p per share 70,553,844 0.0001 7
On 10 June 2015, placing for
cash at 2.25p per share 266,666,667 0.0001 27
-------------- -------- --------
Issued at 30 September 2015 2,030,284,020 0.0001 203
On 01 March 16, warrants exercised
at at 2.25p per share 10,666,666 0.0001 1
On 10 March 16, warrants exercised
at at 2.25p per share 2,500,000 0.0001 -
On 15 April 16, for non-cash
on acquisition at at 1.82p
per share 43,886,116 0.0001 5
On 25 May 16, placing for cash
at at 1.5p per share 266,666,667 0.0001 27
On 05 August 16, for non-cash
on acquisition at at 1.58p
per share 142,648,831 0.0001 14
On 11 September 16, for non-cash
on acquisition at at 1.67p
per share 50,981,799 0.0001 5
On 22 September 16, for options
exercised at at 0.4p per share 30,000,000 0.0001 3
-------------- -------- --------
Issued at 30 September 2016 2,577,634,099 0.0001 258
-------------- -------- --------
Deferred shares
The Company has in existence at 30 September 2015 and at 30
September 2016, 1,158,385,229 deferred shares of 0.001p. These
deferred shares do not carry voting rights.
Total Ordinary and Deferred Shares
The issued share capital as at 30 September 2016 is as
follows:
Number Nominal Total Value
of shares Value GBP'000
GBP
Ordinary shares 2,577,634,099 0.0001 258
Deferred shares 1,158,385,352,229 0.00001 11,584
------------
11,842
============
Share Options
During the year 65 million options were granted (2015: 100
million).
As at 30 September 2016 the
options in issue were:
Options
Exercise price Expiry date in issue
30 September
2016
---------------------------- ------------- -------------
31 December
0.4p 2017 90,000,000
28 November
0.4p 2020 22,500,000
22 August
1.15p 2019 10,000,000
28 September
1.82p 2019 65,000,000
187,500,000
---------------------------- ------------- -------------
30 million options were exercised and no options were cancelled
during the year (2015: 17.5 million exercised).
No options lapsed during the year (2015: nil).
Warrants
As at 30 September 2016, 13,500,001 warrants were in issue, all
of these warrants are exercisable up to 10 June 2018, at 2.25p per
share. No warrants lapsed during the year (2015: nil). 13,166,666
warrants were exercised during the year (2015: 112,387,178
exercised).
Employee Benefit Trust
The Company established on 29 September 2014 an employee benefit
trust called the UK Oil & Gas Employee Benefit Trust ("EBT") to
implement the use of the Company's existing share incentive plan
over 10% of the Company's issued share capital from time to time in
as efficient a manner as possible for the beneficiaries of that
plan. The EBT is a discretionary trust for the benefit of
directors, employees and consultants of the Company.
Accordingly, the trustees of the EBT subscribed for 129,000,000
new ordinary shares of 0.01p each in the Company, at par value per
share at an aggregate cost to the Company of GBP12,900, such shares
representing 9.07% of the existing issued share capital of the
Company (at that date). The shares held in the EBT are intended to
be used to satisfy future awards made by the Company's Remuneration
Committee under the share incentive scheme.
No further issue of ordinary shares was made to the EBT during
the year ended 30 September 2016.
22. Share-Based Payments
Details of share options and warrants granted during the year to
Directors & consultants over the ordinary shares are as
follows:
Issued Exercised Date
At during during At from
1 October the the 30 September Exercise which Expiry
2015 year year 2016 price exercisable date
No. No. No. No. GBP
Share
options millions million millions millions
Donald
Strang 10 - - 10 0.0040 28/11/2013 28/11/2020
David
Lenigas 10 - - 10 0.0040 28/11/2013 28/11/2020
Jason
Berry 10 - - 10 0.0115 22/08/2014 22/08/2019
Jason
Berry - 20 - 20 0.0182 28/09/2016 28/09/2019
Stephen
Sanderson 25 - - 25 0.0040 21/01/2015 31/12/2017
Stephen
Sanderson - 35 - 35 0.0182 28/09/2016 28/09/2019
----------- -------- ---------- --------------
55 55 - 110
Consultants 22.5 - (20) 2.5 0.0040 28/11/2013 28/11/2020
Consultants 75 - (10) 65 0.0040 21/01/2015 31/12/2017
Consultants - 10 - 10 0.0182 28/09/2016 28/09/2019
152.5 65.0 (30) 187.5
----------- -------- ---------- --------------
The share price range during the year was GBP0.0088 to GBP0.0298
(2015 - GBP0. 0035 to GBP0. 0310).
The disclosure of Weighted Average Exercise Prices, and Weighted
Average Contractual Life analysis is not viewed as informative
because of the minimal variation of options currently in issue, and
therefore has accordingly not been disclosed.
For those options granted where IFRS 2 "Share-Based Payment" is
applicable, the fair values were calculated using the Black-Scholes
model. The inputs into the model were as follows:
Risk free Share price Expected Share price
rate volatility life at date
of grant
21 January
2015 2.3% 251.4% 2.95 years GBP0.0039
28 September
2016 2.5% 90.1% 3. years GBP0.0180
Expected volatility was determined by calculating the historical
volatility of the Company's share price for 12 months prior to the
date of grant. The expected life used in the model has been
adjusted, based on management's best estimate, for the effects of
non-transferability, exercise restrictions and behavioural
considerations.
The Company recognised total expenses of GBP682,000 (2015:
GBP378,000) relating to equity-settled share-based payment
transactions during the year, and GBP117,000 (2015: GBP70,000) was
transferred via equity to retained earnings on the exercising or
lapse of options during the year.
23. Financial Instruments and Risk Analysis
Financial Assets by Category
The IAS 39 categories of financial asset included in the balance
sheet and the headings in which they are included are as
follows:
Current assets - Group 2016 2015
GBP'000 GBP'000
--------------------------- -------- --------
Inventory 3 2
Loans and receivables 2,890 1,683
Cash and cash equivalents 2,444 4,590
---------------------------- -------- --------
5,337 6,275
--------------------------- -------- --------
Financial Liabilities by Category
The IAS 39 categories of financial liability included in the
balance sheet and the headings in which they are included are as
follows:
Current liabilities - Group
Financial liabilities measured
at amortised cost 591 440
---- ----
The Group is exposed to market risk through its use of financial
instruments and specifically to credit risk, and liquidity risk
which result from both its operating and investing activities. The
Group's risk management is coordinated at its head office, in close
co-operation with the board of Directors, and focuses on actively
securing the Group's short to medium term cash flows by minimising
the exposure to financial markets. Long term financial investments
are managed to generate lasting returns. The Group does not
actively engage in the trading of financial assets for speculative
purposes nor does it write options. The most significant financial
risks to which the Group is exposed to are described below.
Interest Rate Sensitivity
The Group is not substantially exposed to interest rate
sensitivity, other than in relation to interest bearing bank
accounts.
Credit Risk Analysis
The Group's exposure to credit risk is limited to the carrying
amount of trade receivables. The Group continuously monitors
defaults of customers and other counterparties, identified either
individually or by Company, and incorporates this information into
its credit risk controls. Where available at reasonable cost,
external credit ratings and/or reports on customers and other
counterparties are obtained and used. Group's policy is to deal
only with creditworthy counterparties. Group management considers
that trade receivables that are not impaired for each of the
reporting dates under review are of good credit quality, including
those that are past due. None of the Group's financial assets are
secured by collateral or other credit enhancements. The credit risk
for liquid funds and other short-term financial assets is
considered negligible, since the counterparties are reputable banks
with high quality external credit ratings.
Liquidity risk analysis
The Group's continued future operations depend on the ability to
raise sufficient working capital through the issue of equity share
capital. The Directors are confident that adequate funding will be
forthcoming with which to finance operations. Controls over
expenditure are carefully managed.
Capital Management Policies
The Group's capital management objectives are to:
-- Ensure the Group's ability to continue as a going concern; and
-- Provide a return to shareholders
The Group monitors capital on the basis of the carrying amount
of equity less cash and cash equivalents.
Commodity price risk
The Group is exposed to the risk of fluctuations in prevailing
market commodity prices on the mix of oil and gas products it
produces. The Group's policy is to manage these risks through the
use of contract-based prices with customers.
Commodity price sensitivity
The table below summarises the impact on profit before tax for
changes in commodity prices. The analysis is based on the
assumption that the crude oil price moves 10% resulting in a change
of US$4.35/bbl (2015: US$4.50/bbl), with all other variables held
constant. Reasonably possible movements in commodity prices were
determined based on a review of the last two years' historical
prices and economic forecasters' expectations.
Increase/decrease in crude Effect on Effect on
oil prices profit before profit before
tax for the tax for the
year ended year ended
30 September 30 September
2016 2015
Increase/(Decrease) Increase/(Decrease)
--------------------- ---------------------
GBP'000 GBP'000
Increase US$4.35/bbl (2015:
US$4.50/bbl) 16 20
Decrease US$4.35/bbl (2015:
US$4.50/bbl) (16) (20)
--------------------- ---------------------
23. Commitments & Contingent Liabilities
As at 30 September 2016, the Group had the following material
commitments;
Ongoing exploration expenditure is required to maintain title to
the Group's exploration permits. No provision has been made in the
financial statements for these amounts as the expenditure is
expected to be fulfilled in the normal course of the operations of
the Group.
There were no contingent liabilities at 30 September 2016.
24. Events after the Reporting Date
On 21 November 2016, the Company announced the death of Jason
Berry, an Executive Director of the Company, following a short
illness.
On 8 December 2016, the Company announced that it had issued 20
million new ordinary shares in the Company, on the exercising of
share options at 0.4p per share for cash consideration of
GBP80,000.
25. Related Party Transactions
The company had the following amounts outstanding from its
investee companies at 30 September:
2016 2015
GBP'000 GBP'000
------------------------------------- -------- --------
Horse Hill Developments Ltd ("Horse
Hill") 2,117 901
2,117 901
------------------------------------- -------- --------
The above loans outstanding are included within trade and other
receivables, Note 15. The loan to Horse Hill has been made in
accordance with the terms of the investment agreement whereby it
accrues interest daily at the Bank of England base rate and is
repayable out of future cashflows.
Remuneration of Key Management
Personnel
The remuneration of the directors, and other
key management personnel of the Company, is
set out below in aggregate for each of the
categories specified in IAS24 Related party
Disclosures
2016 2015
GBP'000 GBP'000
-------------------------------- -------- --------
Short-term employee benefits 678 728
Share-based payments 682 132
1,360 860
-------------------------------- -------- --------
26. Ultimate Controlling Party
In the opinion of the directors there is no controlling
party.
27. Profit and loss account of the parent company
As permitted by section 408 of the Companies Act 2006, the
profit and loss account of the parent company has not been
separately presented in these accounts. The parent company loss for
the year was GBP2,891,000 (2015: loss GBP1,715,000).
COMPANY INFORMATION
Company registration
number 05299925
Registered office Suite 3B
38 Jermyn Street
London
SW1Y 6DN
Directors Stephen Sanderson
Kiran Morzaria
Secretary Kiran Morzaria
Auditors Chapman Davis LLP
Chartered Accountants
Registered Auditor
2 Chapel Court
London, SE1 1HH
Nominated Adviser WH Ireland Limited
24 Martin Lane
London, EC4R 0DR
Solicitors Kerman and Co. LLP
200 Strand,
London, WC2R 1DJ
Registrars Share Registrars Limited
Suite E, First Floor,
9 Lion and Lamb Yard,
Farnham,
Surrey, GU9 7LL
This information is provided by RNS
The company news service from the London Stock Exchange
END
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