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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Woburn Energy | LSE:WBN | London | Ordinary Share | GB00B1YW2916 | ORD 1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 1.00 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
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RNS Number : 4833K
Woburn Energy PLC
20 April 2010
+-------------------------------+-------------------------------+
| For immediate release | 20 April 2010 |
+-------------------------------+-------------------------------+
Woburn Energy Plc
("Woburn Energy" or the "Company")
Audited Results for the 18 months ended 31 December 2009
Notice of Annual General Meeting
Woburn Energy (AIM: WBN) announces its audited results for the 18 months ended
31 December 2009. The Report and Accounts for the 18 months ended 31 December
2009 are being posted to shareholders shortly. The Annual General Meeting of
Woburn Energy Plc will be held at the offices of Maclay Murray & Spens LLP at 11
a.m. on 19 May 2010.
CHAIRMAN'S STATEMENT
2009 marked a significant turning point for Woburn Energy Plc ("Woburn").
Whilst the deterioration of the international economic climate flattened out and
has now partially rebounded, the last 18 months have seen the worst
international economic conditions for most countries and companies that any of
us can ever remember. Thankfully at the height of the world's economic woes, we
were pleased to announce that negotiations had been successfully concluded for a
significant recapitalisation of the Company.
As announced on 17 December 2008 agreement was reached with Cetus Investment to
subscribe conditionally GBP2,000,000 for 200,000,000 new Ordinary Shares of 1p
each representing 86.147% of the enlarged issued share capital of the Company
("First Subscription"). Cetus Investment was a newly-formed company established
specifically to make the investment in the Company and is a wholly-owned
subsidiary of Zaver Petroleum. The First Subscription was subject to a number
of conditions, including the approval by the shareholders of the Company of the
waiver of any obligations of Cetus Investment to make a general offer to
Shareholders pursuant to Rule 9 of the City Code on Takeovers and Mergers. All
the necessary resolutions were passed at the Extraordinary General Meeting of
the Company held on 15 January 2009 and the First Subscription was completed on
3 February 2009.
Cetus Investment also conditionally committed to fund, subject to commercial and
technical evaluation, the next stage of the Company's exploration, appraisal and
well development programme in Colombia. Cetus Investment agreed to provide a
minimum of GBP5,000,000 and a maximum of GBP10,000,000 either by arranging third
party debt for Woburn or itself providing the funding either by additional
equity or a shareholder loan.
As announced in our corporate update in September 2009, there has been limited
progress with Woburn's assets in Colombia and the UK. This is described in more
detail in the Managing Director's report but in summary:
1. In Colombia, Woburn along with its partners in the Alhucema E&P Contract
decided to relinquish the Block back to Agencia Nacional de Hidrocarburos
("ANH"), the Colombian government agency responsible for overseeing Colombia's
oil and gas exploration and production sector. This follows the Arrinconada dry
hole and the lack of encouraging prospects identified in the 2D seismic acquired
in 2009.
2. In the Las Quinchas Association Contract, the Acacia Este 1 well has
remained in long-term production testing and is now producing around 24 barrels
of oil per day ("BOPD"). Cold production testing was also undertaken on Arce 4
but never reached commercially justifiable levels and therefore testing ceased
in March 2010. Some of the production equipment on the Arce field has now been
moved to the Acacia Este field to enhance its production capabilities.
3. A workover of Acacia Este-2 has been completed in order to undertake a
trial of the Cold Heavy Oil Production with Sand ("CHOPS") production technique,
pioneered in Canada. Las Quinchas Resource Corporation is working with the
operator to run as soon as possible a 4 month test to assess the potential
impact this innovative approach may have to the problems of producing sand from
the unconsolidated Mugrosa sand reservoir and increasing heavy oil production.
4. Woburn has a 15% interest in the Southern North Sea licence P1147 that
has been running on a care and maintenance basis whilst Woburn and the Joint
Venture ("JV")has sought a buyer or a farm-in partner for our interests. As
there have been no firm expressions of interest in the assets, the JV is now
seeking to relinquish the Block, subject to approval from the UK Department of
Energy and Climate Change.
Our Board nevertheless remains committed to growing the Company through the
development of existing assets and the acquisition of new assets or companies.
The Board of Woburn has therefore undertaken a thorough review of its asset
portfolio and has implemented a new strategy for growth. Initially it aims to
acquire or farm-in to one or more new assets/companies and is targeting a
production acquisition as a first step.
Arif Kemal
Non-executive Chairman
20 April 2010
MANAGING DIRECTOR'S REPORT
The 2008/9 financial period has been one of financial success for Woburn Energy
Plc with the refinancing of the Company at a time of serious international
economic weakness but, as previously announced in our corporate update in
September 2009, slow progress or negative results on the Company's existing
appraisal and near-production opportunities in Colombia and the UK Southern
North Sea.
Colombia
Las Quinchas Association Contract ("Las Quinchas")
On Las Quinchas, Woburn has completed all its obligations under the farm-in
contract signed with the operator, Kappa Resources Colombia ("Kappa"), a wholly
owned subsidiary of Pacific Rubiales Energy Corp, in April 2005 in which it
agreed to fund certain exploration drilling activities in order to earn a right
to obtain, subject to approval, a 50% interest in the Contract. In early 2008,
Woburn transferred its interests in the Las Quinchas Association Contract to Las
Quinchas Resource Corp. ("LQRC"), through which it now participates in the joint
execution of exploration and production activities in the Las Quinchas Block
with Kappa.
Woburn participated in the acquisition of a 33 square kilometre 3D seismic
programme over the Acacia Este discovery during 2008. This survey was acquired
by Kappa, the operator, in order to gain a greater definition of the basement
including topographic highs and faults and any impact these may have on the
nature and distribution of the fluvial sands that constitute the reservoir in
the Acacia Este field.
As previously announced, the 3D seismic survey has now shown that Acacia Este is
more complex than originally considered with a number of major NE-SW and NW-SE
faults dividing the field into a series of discrete compartments that may
account for the productivity and reservoir differences between AE-1 and AE-2.
The results of the sole-risk drilling of AE-4 and AE-5 by the operator have
supported the view that the widespread but complicated distribution of
hydrocarbons in the field is potentially controlled by structural configuration
and reservoir characteristics.
A comprehensive evaluation and synthesis of all the data collected by drilling
and seismic exploration of Acacia Este conducted in 2009 by the operator
suggests that we are dealing with an alluvial fan complex as the most likely
depositional environment for the Mugrosa Reservoir. This in turn indicates that
sweet spots in the reservoir are likely to occur within migrating fluvial
channels running over the fan surface in a NW to SE direction. Consequently,
both structural and stratigraphic changes are likely to be factors adding
uncertainties to any future development plan for the field.
One further consideration at the present moment is whether the Lower Unit of the
Mugrosa Reservoir can be considered as a producing interval or not. As
announced in the discovery of AE-1, the lower sand horizon in the Mugrosa was
found to contain oil but productivity was significantly lower than in the upper
sands. This was also reflected in AE-2 and overall Mugrosa target reservoir
productivity is therefore a major uncertainty factor for field development and,
in exploration settings, prospect definition and risking.
One additional issue being constantly examined is the unconsolidated nature of
the Mugrosa sand reservoir and the problems of frequent sanding up of the well
completions leading to expensive workovers or a perception of marginal field
economics at best. One solution to this problem may be CHOPS. This is a
technique originally developed in Canada in the early 1990s as a means of
dealing with the large amounts of sand generated when heavy oil is extracted
from unconsolidated reservoir sandstones. Traditionally oil companies have
tried to limit the amount of sand generated when extracting heavy oil from
unconsolidated sand reservoirs by controlling pump pressure or using screens,
slotted liners or gravel packs. This unfortunately has in the past frequently
resulted in a slow plugging of the screen or liner reducing inflow. In Canada
today, the conventional wisdom in this situation is to produce, using an
open-hole completion, as much sand as possible at the interface between the
reservoir and the well bore to create numerous higher permeability "worm-holes".
Once the pressure at the interface has dropped, because of the significant
increase in surface area to the point of little sand production, heavy oil will
start to be produced at the well head. As a result of over 15 years of
experience in the heavy oil belt of Canada, it has been observed that CHOPS has
resulted in higher production rates and higher total recovery levels per well
than through conventional production approaches. This innovative technology has
been so successful in Canada that over 20% of its oil is now produced by this
method and CHOPS is used as a "quasi primary" production approach in
unconsolidated sandstones. The JV believes that the utilisation of CHOPS may
enhance productivity from the Acacia Este field and therefore a trial of the
technology is being applied to the Acacia Este 2 well. A workover of AE-2 has
been completed and a hydraulic pump will be installed in order to conduct the
test of the well using CHOPS in the near future.
Acacia Este 1 well has remained in long-term production testing since November
2008. Initially production rose to 122 BOPD and has now settled back to around
24 BOPD with over 25,000 barrels cumulative production and no increase in water.
For comparison, Acacia Este 2 well has been on intermittent production in this
financial period.
As reported previously, the Arce Field project has proved to be currently
uneconomic. Little has changed since the previous annual report. Just briefly
to review the issues involved with Arce, Woburn reported that a pilot steam
injection project, utilising the Arce 2, 3 and 4 wells, had been initiated in
October 2006 and operations were expected to last until June 2007. However,
Ecopetrol requested that the cold flow stage of the test be extended. As the
cold flow production in effect created some void space, steam was to be
sequentially injected into each well for a period of 1-2 weeks, followed by a
soak period of 1-2 weeks whilst the reservoir heated up. Each well was then
expected to be put into production for the remainder of a 3-month test cycle.
Each steam injection test should have involved a minimum of 2 cycles for a total
test lasting approximately 6 months.
Subsequently, as reported by our Chairman, Kappa experienced difficulties in
completing a full steam injection cycle on any of these wells due to equipment
breakdown or well completion failures. In November 2007 when the steam
generator was determined to require two further months of repair, Kappa and
Woburn decided that injection operations on Arce Field should be suspended
whilst options for the future appraisal and development of the field were
reconsidered. This potential discovery has therefore not yet been properly
appraised due to equipment failure, and the Company continues to review the best
way to progress testing.
In October 2007, Ecopetrol authorised Kappa and Woburn to proceed with the
development of a 77 acre area, including the 4 existing Arce wells and the
surrounding area, at their sole risk in October 2007. As is customary,
Ecopetrol retained the right to participate at a future date by reimbursing past
costs, including a penalty premium for those costs expended during sole risk
operations. Exploration operations outside of the sole risk area, including the
Acacia Este discovery and untested extensions of the Arce accumulation, will
also continue to be funded by Kappa and Woburn. Ecopetrol also confirmed that
the Contract's exploration period is now over, and the exploitation period has
commenced.
In the meantime, extended cold production testing has been undertaken on Arce 4.
This was initiated on 6 December 2008 with initial production peaking at 23
BOPD. Production has now settled back to around 5-6 BOPD with 4 barrels of
water per day ("BWPD"). Cold flow testing was completed on 5 March 2010 and
some of the production equipment has now been moved to the Acacia Este Field to
enhance their production capabilities. This cold flow test confirmed that the
oil in the reservoir is mobile and supports the need for additional work to
establish the optimal development strategy to convert this structure into a
producing reservoir.
In the Las Quinchas Association Contract, Woburn's interest is vested with its
subsidiary, the Las Quinchas Resource Corp. ("LQRC") in which Woburn holds a 51%
interest. Woburn has therefore a 25.5% working interest in the Las Quinchas
Association Contract.
Fifty percent of the remaining acreage in the Las Quinchas Association Contract
was relinquished in 2009. Subject to approval by Ecopetrol, the JV has retained
25,000 Hectares around Acacia Este, Arce, Baul and Bukhara whilst relinquishing
the less prospective and more risky sections in the NE of the Contract area. A
further and final relinquishment is due in the summer of 2010 at which point all
areas outside of producing fields or protected areas are due to be returned to
ANH. The JV is looking to retain the area around Acacia Este and Arce at a
minimum.
Alhucema E&P Contract
Woburn held a 25.5% working interest, via Alhucema Resource Corporation, in the
Alhucema E&P Contract. As reported at the 2009 Annual General Meeting, our year
3 obligations on the Alhucema E&P Contract consisted of the acquisition of a 50
km programme of 2D seismic. Technical interpretation of the processed seismic
was disappointing and revealed only high-risk prospects that were considered
inappropriate for drilling in view of the results of the Arrinconada well and
the structural complexity revealed in the equivalent Mugrosa sequences along
strike in Acacia Este.
As announced on 1 September 2009, following careful review of the remaining
opportunities on the Contract area, further expenditure could not be justified.
The operator, Kappa, in agreement with all interest holders in the property, has
therefore decided not to proceed with the next exploration phase of the Alhucema
E&P Contract (year 4) and has submitted a notice to the ANH to such effect. The
ANH has acknowledged the surrender of the property and has conditioned its
acceptance to evidence of compliance with certain contractual matters. The ANH
E&P Contract for the block has six phases and all work commitments have been
completed up to and including phase 3 of the programme.
North Sea
The Company has a 15% interest in Block 49/8c, in the Southern North Sea,
operated by Wintershall Noordzee, which contains the undeveloped Monterey gas
field. Discovered in 1989, the Monterey gas field is located approximately 15
kilometres west of the Windermere gas platform and south of the Schooner and
Ketch gas fields. The water depth in this location is about 35 metres. The
Monterey gas field has been estimated by the field operator on completion of the
49/8c-4 appraisal well to contain over 100 billion cubic feet of gas reserves
although no formal resource or reserve report has been prepared under any of the
accepted standards.
Development of Monterey is now realistically unlikely to take place before the
end of the current licence period in October 2011 as further technical work,
including possibly drilling a horizontal appraisal well, will be required to
determine the most appropriate development scenario for this Carboniferous tight
gas sand field. Also, despite the unusually cold winter, gas prices remain
depressed as a result of the weak economic conditions in the UK.
Woburn has worked with its partners over the last 18 months to seek a buyer for
its interest or to farm down its interest to companies who will carry us through
any future work obligations required to take Monterey into development.
However, there have been no firm expressions of interest in this opportunity to
date and, as a result, the partners have agreed in principle, to relinquish the
licence, subject to approval from the UK Department of Energy and Climate
Change, prior to 1 October 2011 including abandoning the 49/8c-4 well. In the
meantime, the JV will continue to operate on a care and maintenance basis.
Portfolio Development
Woburn continues regularly to review the structure of and risks associated with
its portfolio of assets, and it recognises that significant modifications to the
Company's portfolio will be required in the future to increase its breadth of
opportunities, create cash flow and reduce its exposure to financial risk.
Consequently, Woburn has reviewed its asset portfolio in 2009 and implemented a
new strategy for growth with the support of its largest shareholder. It is now
anticipating acquiring or farming-in to one or more new assets/companies in the
near future.
In particular, Woburn is looking at new onshore, oil or gas opportunities within
its current areas of activity together with those proven oil basins where it has
existing experience or influence. In particular, we would highlight Europe,
Africa, the Middle East and the Indian Sub-Continent as our first new target
areas. Any assets acquired will be generally non-operated but Woburn is looking
in the long-run to build a technical team and establish operational
capabilities.
Initially we are seeking to acquire production to create immediate cash flow and
profits but we are also actively examining development and appraisal
opportunities for longer-term growth and upside for the Company. Exploration
remains even further down the line but if suitable high-class opportunities
arise as a result of the current weak market conditions, Woburn will review
them.
Woburn has over the past 12 months evaluated a series of acquisition and farm-in
opportunities and currently, it is actively targeting production opportunities
with exploration up-side.
J M Cubitt
Managing Director
20 April 2010
For further information, please contact:
+----------------------------------------+------------------------+
| Woburn Energy Plc | Tel: +44 (0)20 7380 |
| | 4609 |
+----------------------------------------+------------------------+
| Dr John Cubitt, Managing Director | www.woburnenergy.com |
+----------------------------------------+------------------------+
| | |
+----------------------------------------+------------------------+
| Beaumont Cornish Limited (Nominated | Tel: +44 (0)20 7628 |
| Adviser) | 3396 |
+----------------------------------------+------------------------+
| Michael Cornish | |
+----------------------------------------+------------------------+
A copy of this announcement is available from the Company's website,
www.woburnenergy.com.
Dr John Cubitt (a Director of the Company) has been involved in the oil and gas
production industry for more than 28 years. Dr John Cubitt is a registered
Chartered Geologist (CGeol) and has a BSc and PhD in geology. He has compiled,
read and approved the technical disclosure as it relates to Woburn Energy Plc in
this announcement.
DIRECTORS' REPORT
The Directors present their report together with the audited financial
statements of the Company and the Group for the 18 month period ended 31
December 2009.
Change of Company name
On 15 January 2009, the shareholders at an Extraordinary General Meeting voted
in favour of changing the name of the Company from Black Rock Oil & Gas Plc to
Woburn Energy Plc ("Woburn").
Change of accounting reference date
The Company changed its accounting reference date to 31 December from 30 June.
These financial statements therefore cover the financial period from 1 July 2008
to 31 December 2009. The comparative amounts in these financial statements
cover the year ended 30 June 2008.
Principal activity
The Company is registered in England and Wales. The Company is part of a Group
whose principal activity is oil and gas exploration and production. The Group
operates through Woburn Energy Plc, a company traded on AIM, a Market operated
by the London Stock Exchange, and through wholly owned subsidiary company, Black
Rock Oil & Gas Sucursal, together with Woburn's other subsidiary companies, Las
Quinchas Resource Corporation and Alhucema Resource Corporation, details of
which are set out in note 12 to these accounts.
Early in 2009 a significant recapitalisation of the Company was announced.
Cetus Investment Resources Inc (Cetus Investment) subscribed conditionally
GBP2,000,000 for 200,000,000 new Ordinary Shares of 1p each representing 86.147%
of the enlarged issued share capital of the Company. Cetus Investment is a
wholly-owned subsidiary of Zaver Petroleum.
Review of the business and future prospects
The Group's results for the period and financial position at 31 December 2009
are considered satisfactory by the Directors. A review of the activities for
the period and future prospects is contained in the Chairman's statement and
Managing Director's report.
Due to the early stage of the development of the Group, the Directors do not
consider it meaningful to consider a review of the key performance indicators in
respect of the period under review. Critical non-financial KPIs, at this stage,
are the adherence to licence commitments and the availability of funding to meet
those commitments.
Principal risks and uncertainties facing the Company
The principal risks and uncertainties facing the Company at the present time are
the price of world oil, the identification and funding of international
production and development projects in the oil and gas industry and obtaining
investment funds to pursue corporate or asset acquisitions. At a time of global
financial turmoil, raising finance is recognised as difficult but not
impossible, and discussions were satisfactorily concluded resulting in a
subscription for shares by Cetus Investment, early in 2009. This investment
group has encouraged and supported Woburn in the acquisition of a portfolio of
production, development and exploration assets to provide growth, cash flow and
profits for the future development of the Company.
Further risks and uncertainties have been identified regarding the technical
appraisal of our Colombian heavy oil assets in the Acacia Este and Arce fields
of the Las Quinchas Association Contract area. Principal risks and
uncertainties facing the Group include but are not limited to:
· Market price of oil and gas and foreign exchange rates which are affected
by numerous factors beyond the Group's control but could have a material effect
on the financial condition and value of its future reserves.
· No assurance that oil and gas will be discovered and if it is, that it is
not economically viable to be recovered.
· Delays in commissioning of appraisal and development projects may result
in the Group's projected target dates for production being delayed or further
capital expenditure required.
· Reliance on facilities operated by others over which the Group has no
control.
· Operations may be disrupted by a variety of risks and hazards which are
beyond the control of the Group, including environmental hazards, accidents,
technical failures, and inclement or hazardous weather conditions.
· Future exploration and development and/or acquisition of new properties
may be dependent upon the Group's ability to obtain suitable financing and at
reasonable terms.
· The Group competes with other companies in the search for oil and gas and
other interests as well as for the recruitment and retention of qualified
employees.
Results and dividends
The Group results for the period are set out on page 21. The Group made a loss
of $4,483,256 for the 18 month period ended 31 December 2009 (2008: $7,410,217).
The Directors are not recommending a dividend for the period ended 31 December
2009 (2008: $Nil).
Group structure and changes in share capital
Details of movements in share capital during the period are set out in note 17
to these financial statements.
Directors
The following Directors held office during the period:
K Ahmed From 3 February 2009
A B Baldry
J M Cubitt
H A Hashwani From 3 February 2009
R B Kanga From 3 February 2009
A Kemal From 3 February 2009
P J Kitson Resigned 3 February 2009
C R K Moore Resigned 3 February 2009
Employees' health and safety
It is the policy of the Group to consider the health and welfare of employees by
maintaining a safe place and system of work as required by the Safety, Health
and Welfare at Work Act, 1989.
Significant shareholders
Pursuant to the Companies Act 2006 the Company has been notified of major
shareholdings. In accordance with "Disclosure and Transparency Rules", issued
by the Financial Services Authority, the interests in the Company's Ordinary
Shares as at 12 April 2010 its major shareholders were as follows:
+-----------------------------+------------------+------------------+
| | Number of | % of Issued |
| | Ordinary Shares | Share Capital |
+-----------------------------+------------------+------------------+
| | | |
+-----------------------------+------------------+------------------+
| Cetus Investment Resources | 200,000,000 | 86.15% |
| Inc | | |
+-----------------------------+------------------+------------------+
No other individual or organisation holds more than 3% of the Company's Ordinary
Shares.
Environment
The Group's exploration activities within the United Kingdom and Colombia are
subject to the relevant environment protection acts of each country. While at
31 December 2009 the Group is not an operator of any exploration projects, it
closely monitors activities of the operators to ensure to the best of its
knowledge there is no potential for any such breach. There have been no
convictions in relation to breaches of these acts recorded against the Group
during the reporting period.
Use of financial instruments
The Group's financial risk management objectives are to minimise debt, to fund
exploration activity through equity financing and to ensure sufficient working
capital for the Group's overhead and capital expenditure commitments. This is
achieved by prudent financial management and careful management of the Group's
cash balances, both short and long term.
Information to shareholders - Website
In compliance with AIM Rule 26, the Company has its own website
(www.woburnenergy.com) for the purposes of improving information flow to
shareholders as well as to potential investors.
Internal controls
The Board is responsible for identifying and evaluating the major business risks
faced by the Group and for determining and monitoring the appropriate course of
action to manage these risks.
Creditor payment policy and practice
The Group agrees terms of contracts when orders are placed and on entering
exploration joint ventures. It is the Group's policy that payments to suppliers
are made in accordance with those terms and conditions agreed between the Group
and its suppliers, providing that all trading terms and conditions have been
complied with.
Political and charitable contributions
There were no political or charitable contributions made by the Group during the
period ended 31 December 2009.
Events after the balance sheet date
There have been no significant events after the balance sheet date that require
disclosure.
Corporate Governance
Although AIM listed companies are not required to report on the Combined Code,
the Directors are committed to proper standards of corporate governance and will
continue to keep procedures under review.
The Board
The Board is responsible to the shareholders for the leadership and control of
the Company and it meets on a regular basis. Meetings are conducted when
important matters or issues require discussion. Circular resolutions of the
Directors are undertaken on minor issues. In addition, the Managing Director
keeps all members of the Board appraised on a regular basis. Directors also
meet regularly on an informal basis to discuss various matters relating to the
Group's activities, objectives and to ensure Corporate Governance is maintained.
The Board considers and monitors all matters as are specifically vested to it
under the Company's Articles of Association ("the Articles"). The Company's
management provides formal and transparent procedures to appoint or re-elect
Board Members. The Articles provide for the re-election of all Directors at
regular intervals. In this regard Tony Baldry will offer himself for
re-election at the forthcoming Annual General Meeting, details of which are
given in the Notice of Annual General Meeting on page 45.
Those Directors appointed during the period will put themselves up for election
at the Annual General Meeting on 19 May 2010. In this regard, Kamran Ahmed,
Hasan Hashwani, Rustom Kanga and Arif Kemal, all of whom were appointed on 3
February 2009, will offer themselves up for election at the forthcoming Annual
General Meeting.
Remuneration Report
Introduction
This report has been prepared in accordance with the Directors' Remuneration
Report Regulations 2002, except for the inclusion of a performance graph and
provision of details of how remuneration packages have been benchmarked. Woburn
Energy, as an AIM listed company rather than a fully listed company, is not
required to comply with these requirements but it is committed to the highest
standards of Governance.
Remuneration Committee
The purpose of the Committee is to make recommendations to the Board on an
overall remuneration policy for Executive Directors in order to attract, retain
and motivate high quality executives capable of achieving the Company's
objectives. The Company's Remuneration Committee currently comprises Hasan
Hashwani (Chairman), Arif Kemal and Rustom Kanga.
Remuneration packages
Remuneration packages currently consist of base salaries and a pension
contribution for John Cubitt. There are no performance related bonuses, long
term incentive awards or health and other benefits.
Remuneration policy
Woburn Energy has undertaken to review the packages of the Directors in the
coming year and in particular the alignment between the interests of
shareholders and executives.
Directors' remuneration and service contracts
There are no service contracts with the Directors other than an employment
contract between Dr J M Cubitt and Woburn Energy Plc. Under this service
contract Dr Cubitt was paid an annual salary of GBP120,000 from 3 February 2009
and his employment was subject to a 30 days' termination period.
Directors' interests
The beneficial interests in the Company's shares of the Directors and their
families were as follows:
+--------------------+-----------+-----------+-----------+-----------+
| | 31 December 2009 | 30 June 2008 |
+--------------------+-----------------------+-----------------------+
| | Ordinary | Warrants | Ordinary | Warrants |
| | shares of | re: | shares of | re: |
| | 1p each | Ordinary | 1p each | Ordinary |
| | | shares of | | shares of |
| | | 1p each | | 1p each |
+--------------------+-----------+-----------+-----------+-----------+
| K Ahmed (from | - | - | - | - |
| 03.02.09) | | | | |
+--------------------+-----------+-----------+-----------+-----------+
| A B Baldry | 72,222 | - | 72,222 | 100,000 |
+--------------------+-----------+-----------+-----------+-----------+
| J M Cubitt | 244,149 | - | 244,149 | 60,000 |
+--------------------+-----------+-----------+-----------+-----------+
| H A Hashwani (from | - | - | - | - |
| 03.02.09) | | | | |
+--------------------+-----------+-----------+-----------+-----------+
| R B Kanga (from | - | - | - | - |
| 03.02.09) | | | | |
+--------------------+-----------+-----------+-----------+-----------+
| A Kemal (from | - | - | - | - |
| 03.02.09) | | | | |
+--------------------+-----------+-----------+-----------+-----------+
| P J Kitson (up to | 213,903 | - | 213,903 | - |
| 03.02.09) | | | | |
+--------------------+-----------+-----------+-----------+-----------+
| C R K Moore (up to | - | - | - | - |
| 03.02.09) | | | | |
+--------------------+-----------+-----------+-----------+-----------+
The Warrants are not traded on AIM nor quoted on any recognised stock exchange
but are freely transferable. None of the Directors exercised any Warrants
during the period.
None of the Directors had any interests in the share capital of any of the
Company's subsidiaries at 31 December 2009 or 30 June 2008.
Kamran Ahmed, Hasan Hashwani, Rustom Kanga and Arif Kemal are Directors
appointed by Cetus Investment which is a wholly-owned subsidiary of Zaver
Petroleum which is itself a wholly-owned subsidiary of United Paramount Holding
Corp. Mr Hashwani is beneficially interested in the entire issued share capital
of United Paramount Holding Corp. Zaver Petroleum's principal asset is its 55%
interest in Orient Petroleum International Inc. ("OPII"). Messrs Hashwani,
Kanga and Kemal are all Directors of OPII.
Pensions
The Company paid $30,491 to privately administered pension plans in respect of
Dr Cubitt who was a Director of the Company during the period. The Group does
not operate a pension scheme for any of the other Directors or employees.
Directors' remuneration
Remuneration of Directors was as follows:
+--------------------+------------+--------------+---------------+---------+---------+
| | Fees/basic | Compensation | Pension | 2009 | 2008 |
| | salary | for loss of | contributions | Total | Total |
| | | office | | | |
+--------------------+------------+--------------+---------------+---------+---------+
| | $ | $ | $ | $ | $ |
+--------------------+------------+--------------+---------------+---------+---------+
| Executive | | | | | |
+--------------------+------------+--------------+---------------+---------+---------+
| J M Cubitt | 320,960 | - | 30,491 | 351,451 | 435,200 |
+--------------------+------------+--------------+---------------+---------+---------+
| P J Kitson (up to | - | 48,144 | - | 48,144 | 244,280 |
| 03.02.09) | | | | | |
+--------------------+------------+--------------+---------------+---------+---------+
| Non-Executive | | | | | |
+--------------------+------------+--------------+---------------+---------+---------+
| K Ahmed (from | - | - | - | - | - |
| 03.02.09) | | | | | |
+--------------------+------------+--------------+---------------+---------+---------+
| A B Baldry | 90,939 | - | - | 90,939 | 115,000 |
+--------------------+------------+--------------+---------------+---------+---------+
| H A Hashwani (from | - | - | - | - | - |
| 03.02.09) | | | | | |
+--------------------+------------+--------------+---------------+---------+---------+
| R B Kanga (from | - | - | - | - | - |
| 03.02.09) | | | | | |
+--------------------+------------+--------------+---------------+---------+---------+
| A Kemal (from | - | - | - | - | - |
| 03.02.09) | | | | | |
+--------------------+------------+--------------+---------------+---------+---------+
| C R K Moore (up to | - | - | - | - | - |
| 03.02.09) | | | | | |
+--------------------+------------+--------------+---------------+---------+---------+
| Total | 411,899 | 48,144 | 30,491 | 490,534 | 794,480 |
+--------------------+------------+--------------+---------------+---------+---------+
Aggregate emoluments disclosed above do not include any amounts for the value of
warrants to subscribe for Ordinary Shares in the Company granted to or held by
the Directors.
There were no contracts existing during or at the end of the period in which a
Director was or is materially interested.
Directors' remuneration shown comprises all of the fees, salaries and other
benefits and emoluments paid to Directors. Messrs Ahmed, Hashwani, Kanga and
Kemal chose to waive their Directors' Fees for the period.
Audit Committee
The Audit Committee is responsible for maintaining an appropriate relationship
with the Group's external auditors and for monitoring the Group's internal
financial controls and the audit process. Its duties also include approving the
Group's accounting policies and reviewing the interim and the annual financial
statements before submission to the Board. It aids the Board in seeking to
ensure that the financial and non-financial information supplied to shareholders
presents a balanced assessment of the Group's position.
The Audit Committee reviews the objectivity and independence of the external
auditors and also considers the scope of their work and fees paid for audit and
non-audit services.
The Audit Committee has unrestricted access to the Group's documents and
information, as well as to employees of the Group and the external auditors.
Members of the Committee may, in pursuit of their duties, take independent
professional advice on any matters at the Group's expense. The Committee
Chairman reports the outcome of meetings to the Board.
The members of the Audit Committee who held office during the period and at the
date of this report are:
· Peter Kitson and Chris Moore until 3 February 2009 when both resigned from
the Board
· Kamran Ahmed (Chairman), Tony Baldry and Rustom Kanga from 3 February 2009
to date.
Membership of the Audit Committee is determined by the Board, from amongst the
Directors of the Group. Its terms of reference are set by the Board and are
modelled closely on the provisions of the Combined Code.
Acquisition of new projects
Prior to acquiring new projects, the Company initially evaluates both the
political and legal risk associated with the country in which the project is
located. If either of these are considered too much of a concern, no further
evaluation is undertaken. The Board, as a whole, has elected at this point in
the Company's history, not to get involved in projects located in basins which
do not have significant hydrocarbon systems. Final sign-off on new acquisitions
is only taken following technical evaluation of the available data. Initially,
areas are evaluated by senior in-house staff, technical consultants, and where
warranted, by expert international consulting groups. The Managing Director,
who is technically trained, then reviews all information and presents to the
full Board for approval. In addition, no formal agreements contracting the
Company to a project area are signed without approval from senior legal
advisers.
Going concern
The Board's consideration of the going concern basis is set out in note 3.2 to
these financial statements.
During the 18 month period ended 31 December 2009 the Group made a loss of
$4,483,256 (30 June 2008 - $7,410,217). At the balance sheet date the Group had
net assets of $7,118,328 (30 June 2008 - $5,051,758) and net current assets of
$379,133 (30 June 2008 - net current liabilities $570,886).
On 17 December 2008 the Board announced that negotiations had been successfully
concluded for a significant recapitalisation of the Company. Agreement was
reached with Cetus Investment to subscribe conditionally GBP2,000,000 for
200,000,000 new Ordinary Shares of 1p each (the "First Subscription"). Cetus
Investment is a newly-formed company established specifically to make the
investment in Woburn Energy and is a wholly-owned subsidiary of Zaver Petroleum
International Inc. The First Subscription was subject to a number of
conditions, including the approval by the shareholders of the Company of the
waiver of any obligations of Cetus Investment to make a general offer to
shareholders pursuant to Rule 9 of the City Code on Takeovers and Mergers. All
the necessary resolutions were passed at the Extraordinary General Meeting of
the Company held on 15 January 2009 and the First Subscription was completed on
3 February 2009.
Cetus Investment also conditionally committed to fund, subject to commercial and
technical evaluation, the next stage of the Company's exploration, appraisal and
well development programme in Colombia. Subject to the technical and commercial
evaluation by Cetus Investment's management team, Cetus Investment agreed to
provide a minimum of GBP5,000,000 and a maximum of GBP10,000,000 either by
arranging third party debt for Woburn Energy or itself providing the funding
either by additional equity or a shareholder loan.
The Group had $2,216,678 of cash as at 31 December 2009 and had trade and other
payables due within one year outstanding of $2,751,190 and expected operating
costs of $1,860,000 for the year ending 31 December 2010. As at 31 March 2010
the Group had $1,825,000 of cash with future expected costs, including operating
costs, to 31 March 2011 of $2,870,000. In view of the current market conditions
and the need to continue the exploration activities, the Board continues to
review its options, in particular the need for future finance.
The Group is not currently earning significant revenues and therefore is not
profitable because it is still in the exploration phase of its business. The
Group is therefore reliant on the future support from its existing shareholders
or its ability to raise funds in the open market in order to be able to meet its
obligations in the foreseeable future.
The Directors have reviewed the Group's overall position and outlook and, as
further discussed in note 3.2 to the financial statements, the Directors are
satisfied that the Group will have adequate resources to continue its operations
for the foreseeable future, and for at least one year from the date of approval
of these financial statements and they, therefore, continue to adopt the going
concern basis in preparing the Group's financial statements.
Changes in share capital
Details of movements in share capital and share warrants during the year are set
out in note 17 to these financial statements.
Statement of responsibilities of those charged with governance
The Directors are responsible for preparing the financial statements in
accordance with applicable law and International Financial Reporting Standards
as adopted by the European Union ("IFRS").
Company law requires the Directors to prepare financial statements for each
financial period which give a true and fair view of the state of affairs of the
Company and of the Group and of the profit or loss of the Group 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 accounting standards have been followed,
subject to any material departures disclosed and explained in the financial
statements; and
· prepare the financial statements on the going concern basis unless it is
inappropriate to presume that the Company will continue in business.
The Directors confirm that the financial statements comply with the above
requirements.
The Directors are responsible for keeping proper accounting records that
disclose with reasonable accuracy at any time the financial position of the
Company and of the Group and enable them to ensure that the financial statements
comply with the Companies Act 2006. They are also responsible for safeguarding
the assets of the Company 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 on the Company's website. Legislation in the United
Kingdom governing the preparation and dissemination of financial statements may
differ from legislation in other jurisdictions.
Statement of disclosure to auditor
So far as each of the Directors at the time of approval of the report are aware:
· there is no relevant audit information of which the Company's auditors are
unaware; and
· the Directors have taken all steps that they ought to have taken to make
themselves aware of any relevant audit information and to establish that the
auditors are aware of that information.
Auditors
In accordance with Section 489 of the Companies Act 2006, a resolution proposing
that UHY Hacker Young LLP be re-appointed as auditors of the Company and that
the Directors be authorised to fix their remuneration will be put to the next
Annual General Meeting.
On behalf of the Board
J M Cubitt
Managing Director
20 April 2010
INDEPENDENT AUDITORS' REPORT
TO THE SHAREHOLDERS OF WOBURN ENERGY PLC
We have audited the financial statements of Woburn Energy Plc for the 18 month
period ended 31 December 2009 which comprise the Consolidated income statement,
the Consolidated and Parent Company balance sheets, the Consolidated and Parent
Company statements of changes in equity, the Consolidated and Parent Company
cash flow statements and the related notes. The financial reporting framework
that has been applied in their preparation is applicable law and International
Financial Reporting Standards (IFRSs) as adopted by the European Union.
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 Statement of responsibilities of those charged
with governance, set out in page 16, 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 the financial statements in
accordance with relevant legal and regulatory requirements 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/UKNP.
Opinion on financial statements
In our opinion:
· the financial statements give a true and fair view of the state of the
Group's and of the Parent Company's affairs as at 31 December 2009 and of the
Group's loss for the period then ended;
· the financial statements have been properly prepared in accordance with
IFRSs as adopted by the European Union; and
· the financial statements have been prepared in accordance with the
requirements of the Companies Act 2006.
Emphasis of matter - Going concern
In forming our opinion on the financial statements, which is not qualified, we
have considered the adequacy of the disclosures made in note 3.2 to the
financial statements concerning the Group's and Company's ability to continue as
a going concern. The Group incurred a loss of $4,483,256 during the period
ended 31 December 2009 and is still incurring losses. Along with similar
companies, the Company raises finance for its exploration and appraisal
activities in discrete tranches. As discussed in note 3.2 the Group currently
expects that it will need to raise funds from existing or future shareholders to
meet its obligations. These conditions, along with other matters discussed in
note 3.2, indicate the existence of a material uncertainty which may cast
significant doubt about the Group's and Company's ability to continue as a going
concern. The financial statements do not include the adjustments that would
result if the Group and Company were unable to continue as a going concern.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion the information given in the Directors' Report for the financial
period 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 by the Parent Company, or
returns adequate for our audit have not been received from branches not visited
by us; or
· the Parent company 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.
Colin Wright (Senior Statutory Auditor)
For and on behalf of UHY Hacker Young
Quadrant House
Chartered Accountants
4 Thomas More Square
Statutory Auditor
London E1W 1YW
20 April 2010
CONSOLIDATED INCOME STATEMENT FOR THE PERIOD ENDED 31 DECEMBER 2009
+----------------------------+-------+----------------+----------------+
| | 18 months | Year ended 30 |
| | ended 31 | June 2008 |
| | December 2009 | |
+------------------------------------+----------------+----------------+
| | | | (Restated) |
+----------------------------+-------+----------------+----------------+
| |Notes | $ | $ |
+----------------------------+-------+----------------+----------------+
| | | | |
+----------------------------+-------+----------------+----------------+
| Revenue | 4 | 182,045 | 38,428 |
+----------------------------+-------+----------------+----------------+
| | | | |
+----------------------------+-------+----------------+----------------+
| Operating expenses | | (1,550,115) | (1,111,995) |
+----------------------------+-------+----------------+----------------+
| | | __________ | __________ |
+----------------------------+-------+----------------+----------------+
| | | | |
+----------------------------+-------+----------------+----------------+
| Gross profit | | (1,368,070) | (1,073,567) |
+----------------------------+-------+----------------+----------------+
| | | __________ | __________ |
+----------------------------+-------+----------------+----------------+
| Administrative expenses | | (1,535,388) | (1,923,560) |
| before impairment of | | | |
| assets | | | |
+----------------------------+-------+----------------+----------------+
| Impairment of exploration | 11 | (650,044) | (4,435,936) |
| assets | | | |
+----------------------------+-------+----------------+----------------+
| | | ___________ | ___________ |
+----------------------------+-------+----------------+----------------+
| | | | |
+----------------------------+-------+----------------+----------------+
| Total administrative | | (2,185,432) | (6,359,496) |
| expenses | | | |
+----------------------------+-------+----------------+----------------+
| | | ___________ | ___________ |
+----------------------------+-------+----------------+----------------+
| | | | |
+----------------------------+-------+----------------+----------------+
| Group operating loss | 5 | (3,553,502) | (7,433,063) |
+----------------------------+-------+----------------+----------------+
| | | | |
+----------------------------+-------+----------------+----------------+
| Bank interest receivable | | 1,185 | 22,846 |
+----------------------------+-------+----------------+----------------+
| | | ___________ | ___________ |
+----------------------------+-------+----------------+----------------+
| | | | |
+----------------------------+-------+----------------+----------------+
| Loss before taxation | | (3,552,317) | (7,410,217) |
+----------------------------+-------+----------------+----------------+
| | | | |
+----------------------------+-------+----------------+----------------+
| Taxation | 6 | - | - |
+----------------------------+-------+----------------+----------------+
| | | ___________ | ___________ |
+----------------------------+-------+----------------+----------------+
| | | | |
+----------------------------+-------+----------------+----------------+
| Loss for the period from | | (3,552,317) | (7,410,217) |
| continuing operations | | | |
+----------------------------+-------+----------------+----------------+
| | | | |
+----------------------------+-------+----------------+----------------+
| Discontinued operations | | | |
+----------------------------+-------+----------------+----------------+
| Loss for the period from | 7 | (930,939) | - |
| discontinued operations | | | |
+----------------------------+-------+----------------+----------------+
| | | ___________ | ___________ |
+----------------------------+-------+----------------+----------------+
| | | | |
+----------------------------+-------+----------------+----------------+
| Loss for the period | | (4,483,256) | (7,410,217) |
+----------------------------+-------+----------------+----------------+
| | | ___________ | ___________ |
+----------------------------+-------+----------------+----------------+
| | | | |
+----------------------------+-------+----------------+----------------+
| Attributable to: | | | |
+----------------------------+-------+----------------+----------------+
| Equity holders of the | | (3,160,630) | (6,837,083) |
| Parent Company | | | |
+----------------------------+-------+----------------+----------------+
| Minority interest | 18 | (1,322,626) | (573,134) |
+----------------------------+-------+----------------+----------------+
| | | ___________ | ___________ |
+----------------------------+-------+----------------+----------------+
| | | | |
+----------------------------+-------+----------------+----------------+
| | | (4,483,256) | (7,410,217) |
+----------------------------+-------+----------------+----------------+
| | | ___________ | ___________ |
+----------------------------+-------+----------------+----------------+
| Loss per share (cents): | 8 | | |
| Continuing operations | | | |
+----------------------------+-------+----------------+----------------+
| Basic | | (1.77) | (11.03) |
+----------------------------+-------+----------------+----------------+
| Diluted | | (1.77) | (11.03) |
+----------------------------+-------+----------------+----------------+
| | | ___________ | ___________ |
+----------------------------+-------+----------------+----------------+
| Loss per share (cents): | | | |
| Discontinuing and | | | |
| continuing operations | | | |
+----------------------------+-------+----------------+----------------+
| Basic | | (2.07) | (11.03) |
+----------------------------+-------+----------------+----------------+
| Diluted | | (2.07) | (11.03) |
+----------------------------+-------+----------------+----------------+
| | | ___________ | ___________ |
+----------------------------+-------+----------------+----------------+
CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2009
+--------------------------+-------+-------------+--------------+-------------+--------------+
| |Notes | 31 December | 30 June 2008 |
| | | 2009 | |
+--------------------------+-------+----------------------------+----------------------------+
| | | | | | (Restated) |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| | | $ | $ | $ | $ |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| ASSETS | | | | | |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| | | | | | |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| Non-current assets | | | | | |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| Intangible assets | 11 | | 11,692,754 | | 10,489,999 |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| | | | | | |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| Current assets | | | | | |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| Receivables | 13 | 913,645 | | 790,564 | |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| Cash and cash | | 2,216,678 | | 31,424 | |
| equivalents | | | | | |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| | | __________ | | __________ | |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| | | | 3,130,323 | | 821,988 |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| | | | __________ | | __________ |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| Total Assets | | | 14,823,077 | | 11,311,987 |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| | | | | | |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| LIABILITIES | | | | | |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| | | | | | |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| Current liabilities | | | | | |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| Trade and other payables | 14 | | (2,751,190) | | (1,392,874) |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| | | | | | |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| Non-current liabilities | | | | | |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| Borrowings | 15 | (4,274,000) | | (4,274,000) | |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| Provision for | 16 | (679,559) | | (593,355) | |
| decommissioning | | | | | |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| | | __________ | | __________ | |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| | | | (4,953,559) | | (4,867,355) |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| | | | __________ | | __________ |
| | | | | | |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| | | | | | |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| Total Liabilities | | | (7,704,749) | | (6,260,229) |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| | | | __________ | | __________ |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| Net Assets | | | 7,118,328 | | 5,051,758 |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| | | | __________ | | __________ |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| EQUITY | | | | | |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| | | | | | |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| Capital and reserves | | | | | |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| Share capital | 17 | | 13,596,651 | | 10,738,490 |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| Share premium | | | 17,815,055 | | 17,815,055 |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| Share-based payments | | | 190,800 | | 268,440 |
| reserve | | | | | |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| Retained losses | | | (27,374,489) | | (24,291,499) |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| | | | __________ | | __________ |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| Shareholders' Funds | | | 4,228,017 | | 4,530,486 |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| Minority interests | 18 | | 2,890,311 | | 521,272 |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| | | | __________ | | __________ |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| | | | 7,118,328 | | 5,051,758 |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| | | | __________ | | __________ |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| | | | | | |
+--------------------------+-------+-------------+--------------+-------------+--------------+
These financial statements were approved by the Board of Directors on 20 April
2010 and signed on its behalf by:
Director - J M Cubitt
Company Registration Number: 04128401
COMPANY BALANCE SHEET AS AT 31 DECEMBER 2009
+--------------------------+-------+-------------+--------------+-------------+--------------+
| |Notes | 31 December | 30 June 2008 |
| | | 2009 | |
+--------------------------+-------+----------------------------+----------------------------+
| | | | | | (Restated) |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| | | $ | $ | $ | $ |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| ASSETS | | | | | |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| | | | | | |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| Non-current assets | | | | | |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| Investments in | 12 | | 4,168,283 | | 5,290,746 |
| subsidiaries | | | | | |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| Intangible assets | 11 | | 4,274,000 | | 5,460,008 |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| | | | __________ | | __________ |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| | | | 8,442,283 | | 10,750,754 |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| Current assets | | | | | |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| Receivables | 13 | 219,066 | | 373,568 | |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| Cash and cash | | 1,320,644 | | 15,836 | |
| equivalents | | | | | |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| | | __________ | | __________ | |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| | | | 1,539,710 | | 389,404 |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| | | | __________ | | __________ |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| Total Assets | | | 9,981,993 | | 11,140,158 |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| | | | | | |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| LIABILITIES | | | | | |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| | | | | | |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| Current liabilities | | | | | |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| Trade and other payables | 14 | | (81,898) | | (313,576) |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| | | | | | |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| Non-current liabilities | | | | | |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| Borrowings | 15 | (4,274,000) | | (4,274,000) | |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| Provision for | 16 | (537,460) | | (593,354) | |
| decommissioning | | | | | |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| | | __________ | | __________ | |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| | | | (4,811,460) | | (4,867,354) |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| | | | __________ | | __________ |
| | | | | | |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| | | | | | |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| Total Liabilities | | | (4,893,358) | | (5,180,930) |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| | | | __________ | | __________ |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| Net Assets | | | 5,088,635 | | 5,959,228 |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| | | | __________ | | __________ |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| | | | | | |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| EQUITY | | | | | |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| | | | | | |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| Capital and reserves | | | | | |
| attributable to equity | | | | | |
| holders | | | | | |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| Share capital | 17 | | 13,596,651 | | 10,738,490 |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| Share premium | | | 17,815,055 | | 17,815,055 |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| Share-based payments | | | 190,800 | | 268,440 |
| reserve | | | | | |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| Retained losses | | | (26,513,871) | | (22,862,757) |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| | | | __________ | | __________ |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| Total Equity | | | 5,088,635 | | 5,959,228 |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| | | | __________ | | __________ |
+--------------------------+-------+-------------+--------------+-------------+--------------+
| | | | | | |
+--------------------------+-------+-------------+--------------+-------------+--------------+
These financial statements were approved by the Board of Directors on 20 April
2010 and signed on its behalf by:
Director - J M Cubitt
Company Registration Number: 04128401
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDED 31 DECEMBER
2009
+----------------------------+------------+------------+-------------+--------------+-------------+-------------+-------------+
| | Share | Share | Share-based | Retained | Total | Minority | Total |
| | Capital | Premium | Payments | Losses | | Interest | Equity |
| | | | Reserve | | | | |
+----------------------------+------------+------------+-------------+--------------+-------------+-------------+-------------+
| | $ | $ | $ | $ | $ | $ | $ |
+----------------------------+------------+------------+-------------+--------------+-------------+-------------+-------------+
| | | | | | | | |
+----------------------------+------------+------------+-------------+--------------+-------------+-------------+-------------+
| | | | | | | | |
+----------------------------+------------+------------+-------------+--------------+-------------+-------------+-------------+
| Balance at 1 July 2007 | 10,515,511 | 14,434,404 | 77,640 | (17,722,984) | 7,304,571 | - | 7,304,571 |
+----------------------------+------------+------------+-------------+--------------+-------------+-------------+-------------+
| Fractional adjustment on | 406 | - | - | - | 406 | - | 406 |
| consolidation of shares | | | | | | | |
+----------------------------+------------+------------+-------------+--------------+-------------+-------------+-------------+
| Share issues less costs | 222,573 | 3,380,651 | - | - | 3,603,224 | - | 3,603,224 |
+----------------------------+------------+------------+-------------+--------------+-------------+-------------+-------------+
| Share based payments | - | - | 190,800 | - | 190,800 | - | 190,800 |
+----------------------------+------------+------------+-------------+--------------+-------------+-------------+-------------+
| Exchange difference | - | - | - | - | - | 12,686 | 12,686 |
+----------------------------+------------+------------+-------------+--------------+-------------+-------------+-------------+
| Minority's interest in | - | - | - | - | - | 1,350,288 | 1,350,288 |
| share capital of | | | | | | | |
| subsidiary | | | | | | | |
+----------------------------+------------+------------+-------------+--------------+-------------+-------------+-------------+
| Loss for year ended 30 | - | - | - | (6,288,986) | (6,288,986) | (573,134) | (6,862,120) |
| June 2008 - as previously | | | | | | | |
| stated | | | | | | | |
+----------------------------+------------+------------+-------------+--------------+-------------+-------------+-------------+
| Prior year adjustment | - | - | - | (279,529) | (279,529) | (268,568) | (548,097) |
| (note 11) | | | | | | | |
+----------------------------+------------+------------+-------------+--------------+-------------+-------------+-------------+
| | | | | | | | |
+----------------------------+------------+------------+-------------+--------------+-------------+-------------+-------------+
| Loss for year ended 30 | - | - | - | (6,568,515) | (6,568,515) | (841,702) | (7,410,217) |
| June 2008 - restated | | | | | | | |
+----------------------------+------------+------------+-------------+--------------+-------------+-------------+-------------+
| | | | | | | | |
+----------------------------+------------+------------+-------------+--------------+-------------+-------------+-------------+
| | | | | | | | |
+----------------------------+------------+------------+-------------+--------------+-------------+-------------+-------------+
| Balance at 1 July 2008 | 10,738,490 | 17,815,055 | 268,440 | (24,291,499) | 4,530,486 | 521,272 | 5,051,758 |
+----------------------------+------------+------------+-------------+--------------+-------------+-------------+-------------+
| Share issues less costs | 2,858,161 | - | - | - | 2,858,161 | - | 2,858,161 |
+----------------------------+------------+------------+-------------+--------------+-------------+-------------+-------------+
| Loss for period ending 31 | - | - | - | (3,160,630) | (3,160,630) | (1,322,626) | (4,483,256) |
| December 2009 | | | | | | | |
+----------------------------+------------+------------+-------------+--------------+-------------+-------------+-------------+
| Disposal of minority | - | - | - | - | - | 39,647 | 39,647 |
| interest | | | | | | | |
+----------------------------+------------+------------+-------------+--------------+-------------+-------------+-------------+
| Minority's interest in | - | - | - | - | - | 3,652,018 | 3,652,018 |
| share capital of | | | | | | | |
| subsidiary | | | | | | | |
+----------------------------+------------+------------+-------------+--------------+-------------+-------------+-------------+
| Transfer on expiry of | - | - | (77,640) | 77,640 | - | - | - |
| warrants | | | | | | | |
+----------------------------+------------+------------+-------------+--------------+-------------+-------------+-------------+
| | | | | | | | |
+----------------------------+------------+------------+-------------+--------------+-------------+-------------+-------------+
| Balance at 31 December | 13,596,651 | 17,815,055 | 190,800 | (27,374,489) | 4,228,017 | 2,890,311 | 7,118,328 |
| 2009 | | | | | | | |
+----------------------------+------------+------------+-------------+--------------+-------------+-------------+-------------+
| | | | | | | | |
+----------------------------+------------+------------+-------------+--------------+-------------+-------------+-------------+
COMPANY STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDED 31 DECEMBER 2009
+-------------------------------+------------+------------+-------------+--------------+-------------+
| | Share | Share | Share-based | Retained | Total |
| | Capital | Premium | Payments | Losses | |
| | | | Reserve | | |
+-------------------------------+------------+------------+-------------+--------------+-------------+
| | $ | $ | $ | $ | $ |
+-------------------------------+------------+------------+-------------+--------------+-------------+
| | | | | | |
+-------------------------------+------------+------------+-------------+--------------+-------------+
| | | | | | |
+-------------------------------+------------+------------+-------------+--------------+-------------+
| Balance at 1 July 2007 | 10,515,511 | 14,434,404 | 77,640 | (17,647,522) | 7,380,033 |
+-------------------------------+------------+------------+-------------+--------------+-------------+
| Fractional adjustment on | 406 | - | - | - | 406 |
| consolidation of shares | | | | | |
+-------------------------------+------------+------------+-------------+--------------+-------------+
| Share issues less costs | 222,573 | 3,380,651 | - | - | 3,603,224 |
+-------------------------------+------------+------------+-------------+--------------+-------------+
| Share based payments | - | - | 190,800 | - | 190,800 |
+-------------------------------+------------+------------+-------------+--------------+-------------+
| Loss for 2008 | - | - | - | (5,215,235) | (5,215,235) |
+-------------------------------+------------+------------+-------------+--------------+-------------+
| | | | | | |
+-------------------------------+------------+------------+-------------+--------------+-------------+
| | | | | | |
+-------------------------------+------------+------------+-------------+--------------+-------------+
| Balance at 1 July 2008 | 10,738,490 | 17,815,055 | 268,440 | (22,862,757) | 5,959,228 |
+-------------------------------+------------+------------+-------------+--------------+-------------+
| Share issues less costs | 2,858,161 | - | - | - | 2,858,161 |
+-------------------------------+------------+------------+-------------+--------------+-------------+
| Transfer on expiry of | - | - | (77,640) | 77,640 | - |
| warrants | | | | | |
+-------------------------------+------------+------------+-------------+--------------+-------------+
| Loss for 2009 | - | - | - | (3,728,754) | (3,728,754) |
+-------------------------------+------------+------------+-------------+--------------+-------------+
| | | | | | |
+-------------------------------+------------+------------+-------------+--------------+-------------+
| | | | | | |
+-------------------------------+------------+------------+-------------+--------------+-------------+
| Balance at 31 December 2009 | 13,596,651 | 17,815,055 | 190,800 | (26,513,871) | 5,088,635 |
+-------------------------------+------------+------------+-------------+--------------+-------------+
| | | | | | |
+-------------------------------+------------+------------+-------------+--------------+-------------+
CONSOLIDATED CASH FLOW STATEMENT FOR THE PERIOD ENDED 31 DECEMBER 2009
+--------------------------------------------+-------------+-------------+
| | 18 months | Year |
| | ended 31 | ended 30 |
| | December | June 2008 |
| | 2009 | |
+--------------------------------------------+-------------+-------------+
| | | (Restated) |
+--------------------------------------------+-------------+-------------+
| | $ | $ |
+--------------------------------------------+-------------+-------------+
| Cash flows from operating activities | | |
+--------------------------------------------+-------------+-------------+
| Group operating loss from continuing | (3,553,502) | (7,433,063) |
| operations | | |
+--------------------------------------------+-------------+-------------+
| Operating loss from discontinued | (987,824) | - |
| operations | | |
+--------------------------------------------+-------------+-------------+
| Adjustment for items not requiring an | | |
| outlay of funds: | | |
+--------------------------------------------+-------------+-------------+
| Impairment of exploration assets - | 650,044 | 4,435,936 |
| continuing operations | | |
+--------------------------------------------+-------------+-------------+
| Impairment of exploration assets - | 1,209,198 | - |
| discontinuing operations | | |
+--------------------------------------------+-------------+-------------+
| Foreign exchange differences | 1,067,513 | 39,566 |
+--------------------------------------------+-------------+-------------+
| Adjustment arising from consolidation of | - | 406 |
| shares | | |
+--------------------------------------------+-------------+-------------+
| | ___________ | ___________ |
+--------------------------------------------+-------------+-------------+
| | | |
+--------------------------------------------+-------------+-------------+
| Operating loss before changes in working | (1,614,571) | (2,957,155) |
| capital | | |
+--------------------------------------------+-------------+-------------+
| Increase in receivables | (125,506) | (688,334) |
+--------------------------------------------+-------------+-------------+
| Increase in trade and other payables | 1,474,518 | 989,540 |
+--------------------------------------------+-------------+-------------+
| | ___________ | ___________ |
+--------------------------------------------+-------------+-------------+
| | | |
+--------------------------------------------+-------------+-------------+
| Net cash used in operating activities | (265,559) | (2,655,949) |
+--------------------------------------------+-------------+-------------+
| | ___________ | ___________ |
+--------------------------------------------+-------------+-------------+
| Investing activities | | |
+--------------------------------------------+-------------+-------------+
| Funds used for exploration and evaluation | (4,058,314) | (2,956,235) |
+--------------------------------------------+-------------+-------------+
| Interest received | 1,185 | 22,846 |
+--------------------------------------------+-------------+-------------+
| Cash disposed with subsidiary | (2,237) | - |
+--------------------------------------------+-------------+-------------+
| | ___________ | ___________ |
+--------------------------------------------+-------------+-------------+
| | | |
+--------------------------------------------+-------------+-------------+
| Net cash used in investing activities | (4,059,366) | (2,933,389) |
+--------------------------------------------+-------------+-------------+
| | ___________ | ___________ |
+--------------------------------------------+-------------+-------------+
| Financing activities | | |
+--------------------------------------------+-------------+-------------+
| Proceeds from issue of ordinary shares | 2,858,161 | 4,006,500 |
+--------------------------------------------+-------------+-------------+
| Share issue costs | - | (212,476) |
+--------------------------------------------+-------------+-------------+
| Proceeds from minorities for issue of | 3,652,018 | 1,350,288 |
| ordinary shares | | |
+--------------------------------------------+-------------+-------------+
| | ___________ | ___________ |
+--------------------------------------------+-------------+-------------+
| | | |
+--------------------------------------------+-------------+-------------+
| Net cash from financing activities | 6,510,179 | 5,144,312 |
+--------------------------------------------+-------------+-------------+
| | ___________ | ___________ |
+--------------------------------------------+-------------+-------------+
| | | |
+--------------------------------------------+-------------+-------------+
| Increase/(decrease) in cash and cash | 2,185,254 | (445,026) |
| equivalents | | |
+--------------------------------------------+-------------+-------------+
| Cash and cash equivalents at beginning of | 31,424 | 476,450 |
| period | | |
+--------------------------------------------+-------------+-------------+
| | ___________ | ___________ |
+--------------------------------------------+-------------+-------------+
| | | |
+--------------------------------------------+-------------+-------------+
| Cash and cash equivalents at end of period | 2,216,678 | 31,424 |
+--------------------------------------------+-------------+-------------+
| | ___________ | ___________ |
+--------------------------------------------+-------------+-------------+
COMPANY CASH FLOW STATEMENT FOR THE PERIOD ENDED 31 DECEMBER 2009
+-----------------------------------------+--------------+-------------+
| | 18 months | Year ended |
| | ended | 30 June |
| | 31 December | 2008 |
| | 2009 | |
+-----------------------------------------+--------------+-------------+
| | $ | $ |
+-----------------------------------------+--------------+-------------+
| Cash flows from operating activities | | |
+-----------------------------------------+--------------+-------------+
| Company operating loss | (3,648,289) | (5,166,284) |
+-----------------------------------------+--------------+-------------+
| Adjustment for items not requiring an | | |
| outlay of funds: | | |
+-----------------------------------------+--------------+-------------+
| Impairment of loans due from | 69,684 | 2,678,070 |
| subsidiaries | | |
+-----------------------------------------+--------------+-------------+
| Impairment of exploration assets | 157,389 | 593,354 |
+-----------------------------------------+--------------+-------------+
| Loss on disposal of subsidiary | 1,040,813 | - |
+-----------------------------------------+--------------+-------------+
| Foreign exchange adjustments on | 986,267 | 26,914 |
| translations | | |
+-----------------------------------------+--------------+-------------+
| Adjustment arising from consolidation | - | 406 |
| of shares | | |
+-----------------------------------------+--------------+-------------+
| | ___________ | ___________ |
+-----------------------------------------+--------------+-------------+
| | | |
+-----------------------------------------+--------------+-------------+
| Operating loss before changes in | (1,394,136) | (1,867,540) |
| working capital | | |
+-----------------------------------------+--------------+-------------+
| Decrease/(increase) in receivables | 154,502 | (271,338) |
+-----------------------------------------+--------------+-------------+
| Decrease in trade and other payables | (231,678) | (79,754) |
+-----------------------------------------+--------------+-------------+
| | ___________ | ___________ |
+-----------------------------------------+--------------+-------------+
| | | |
+-----------------------------------------+--------------+-------------+
| Net cash used in operating activities | (1,471,312) | (2,218,632) |
+-----------------------------------------+--------------+-------------+
| | ___________ | ___________ |
+-----------------------------------------+--------------+-------------+
| Investing activities | | |
+-----------------------------------------+--------------+-------------+
| Acquisition of subsidiary companies | - | (5,000) |
+-----------------------------------------+--------------+-------------+
| Loans granted to subsidiary companies | - | (1,977,828) |
+-----------------------------------------+--------------+-------------+
| Funds used for exploration and | (83,226) | (69,684) |
| evaluation | | |
+-----------------------------------------+--------------+-------------+
| Interest received | 1,185 | 22,846 |
+-----------------------------------------+--------------+-------------+
| | ___________ | ___________ |
+-----------------------------------------+--------------+-------------+
| | | |
+-----------------------------------------+--------------+-------------+
| Net cash used in investing activities | (82,041) | (2,029,666) |
+-----------------------------------------+--------------+-------------+
| | ___________ | ___________ |
+-----------------------------------------+--------------+-------------+
| Financing activities | | |
+-----------------------------------------+--------------+-------------+
| Proceeds from issue of ordinary shares | 2,858,161 | 4,006,500 |
+-----------------------------------------+--------------+-------------+
| Share issue costs | - | (212,476) |
+-----------------------------------------+--------------+-------------+
| | ___________ | ___________ |
+-----------------------------------------+--------------+-------------+
| | | |
+-----------------------------------------+--------------+-------------+
| Net cash from financing activities | 2,858,161 | 3,794,024 |
+-----------------------------------------+--------------+-------------+
| | ___________ | ___________ |
+-----------------------------------------+--------------+-------------+
| | | |
+-----------------------------------------+--------------+-------------+
| Increase/(decrease) in cash and cash | 1,304,808 | (454,274) |
| equivalents | | |
+-----------------------------------------+--------------+-------------+
| Cash and cash equivalents at beginning | 15,836 | 470,110 |
| of period | | |
+-----------------------------------------+--------------+-------------+
| | ___________ | ___________ |
+-----------------------------------------+--------------+-------------+
| | | |
+-----------------------------------------+--------------+-------------+
| Cash and cash equivalents and | 1,320,644 | 15,836 |
| borrowings at end of period | | |
+-----------------------------------------+--------------+-------------+
| | ___________ | ___________ |
+-----------------------------------------+--------------+-------------+
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2009
1. Authorisation of financial statements
Woburn Energy Plc (formerly Black Rock Oil & Gas Plc) is a public limited
company incorporated in England and Wales whose shares are traded on AIM, a
market operated by the London Stock Exchange. The principal activities of the
Company and its subsidiaries ("the Group") are exploration, and development of
oil and gas.
The Group's financial statements for the period ended 31 December 2009 were
authorised for issue by the Board of Directors on 20 April 2010 and the balance
sheets were signed on the Board's behalf by J M Cubitt.
1.1 Change of accounting reference date
The Company changed its accounting reference date to 31 December from 30 June.
These financial statements therefore cover the financial period from 1 July 2008
to 31 December 2009. The comparative amounts in these financial statements
cover the year ended 30 June 2008.
2. Adoption of International Financial Reporting Standards
The Company's and Group's financial statements for the period ended 31 December
2009 and for the comparative year ended 30 June 2008 have been prepared in
accordance with International Financial Reporting Standards ("IFRS") and IFRIC
(International Financial Reporting Interpretations Committee) interpretations
and with those parts of the Companies Act 2006 applicable to companies reporting
under IFRS.
3. Significant accounting policies
The principal accounting policies applied in the preparation of these financial
statements are set out below. These policies have been consistently applied to
all the years presented, unless otherwise stated below.
3.1 Basis of preparation
The financial statements are prepared on a going concern basis, under the
historical cost convention and in accordance with International Financial
Reporting Standards, as adopted by the European Union, including IFRS6
'Exploration for and Evaluation of Mineral Resources' and in accordance with the
Companies Act 2006. The Parent Company's financial statements have also been
prepared in accordance with IFRS and the Companies Act 2006.
3.2 Going concern
During the 18 month period ended 31 December 2009 the Group made a loss of
$4,483,256 (30 June 2008 - $7,410,217). At the balance sheet date the Group had
net assets of $7,118,328 (30 June 2008 - $5,051,758) and net current assets of
$379,133 (30 June 2008 net current liabilities - $570,886).
On 17 December 2008 the Board announced that negotiations had been successfully
concluded for a significant recapitalisation of the Company. Agreement was
reached with Cetus Investment to subscribe conditionally GBP2,000,000
($2,858,161) for 200,000,000 new Ordinary Shares of 1p each (the "First
Subscription"). Cetus Investment is a newly-formed company established
specifically to make the investment in Woburn Energy and is a wholly-owned
subsidiary of Zaver Petroleum International Inc. The First Subscription was
subject to a number of conditions, including the approval by the shareholders of
the Company of the waiver of any obligations of Cetus Investment to make a
general offer to shareholders pursuant to Rule 9 of the City Code on Takeovers
and Mergers. All the necessary resolutions were passed at the Extraordinary
General Meeting of the Company held on 15 January 2009 and the First
Subscription was completed on 3 February 2009.
Cetus Investment also conditionally committed to fund, subject to commercial and
technical evaluation, the next stage of the Company's exploration, appraisal and
well development programme in Colombia. Subject to the technical and commercial
evaluation by Cetus Investment's management team, Cetus Investment agreed to
provide a minimum of GBP5,000,000 and a maximum of GBP10,000,000 either by
arranging third party debt for Woburn Energy or itself providing the funding
either by additional equity or a shareholder loan.
The Group had $2,216,678 of cash as at 31 December 2009 and had trade and other
payables due within one year outstanding of $2,751,190 and expected operating
costs of $1,860,000 for the year ending 31 December 2010. As at 31 March 2010
the Group had $1,825,000 of cash with future expected costs, including operating
costs, to 31 March 2011 of $2,870,000. In view of the current market conditions
and the need to continue the exploration activities, the Board continues to
review its options, in particular the need for future finance.
The Group is not currently earning significant revenues and therefore is not
profitable because it is still in the exploration phase of its business. The
Group is therefore reliant on the future support from its existing shareholders
or its ability to raise funds in the open market in order to be able to meet its
obligations and planned expenditures in the foreseeable future.
The Directors believe that the Group will be able to raise finance from existing
or future shareholders in the foreseeable future. The Group's majority
shareholder has confirmed that it will continue to provide financial support for
the foreseeable future. The Directors therefore believe that the Group will
therefore have appropriate levels of financing and that the Group will have
sufficient cash to fund its activities and to continue its operations for the
foreseeable future and for the Group to continue to meet its liabilities as they
fall due, and for at least the next twelve months from the date of approval of
these financial statements. The financial statements have, therefore, been
prepared on the going concern basis.
3.3 New IFRS standards and interpretations not applied
At the date of approval of these financial statements, the following Standards
and Interpretations which will be applicable to the Group, but have not been
applied in these financial statements, were in issue but not yet effective:
+---------------+---------------------------------+--------------+
| International Financial Reporting Standards | Effective |
| (IFRS/IAS) | date |
+-------------------------------------------------+--------------+
| | | |
+---------------+---------------------------------+--------------+
| IFRS 8 | Operating Segments | 1 January |
| | | 2009 |
+---------------+---------------------------------+--------------+
| IFRS 2 | Share-based payments | 1 January |
| | (Amendment) | 2009 |
+---------------+---------------------------------+--------------+
| IAS 23 | Borrowing Costs | 1 January |
| (Amendment) | | 2009 |
+---------------+---------------------------------+--------------+
| IAS 1 | Presentation of Financial | 1 January |
| | Statements (Amendment) | 2009 |
+---------------+---------------------------------+--------------+
| IFRS 3 | Business combinations (revised) | 1 July 2009 |
+---------------+---------------------------------+--------------+
| IAS 27 | Consolidated and Separate | 1 July 2009 |
| | Financial Statements | |
+---------------+---------------------------------+--------------+
| IFRIC 16 | Hedges of a net investment in a | 1 October |
| | foreign operation | 2008 |
+---------------+---------------------------------+--------------+
| IFRIC 17 | Distributions of non-cash | 1 July 2009 |
| | assets to owners | |
+---------------+---------------------------------+--------------+
| IFRIC 18 | Transfers of assets from | 1 July 2009 |
| | customers | |
+---------------+---------------------------------+--------------+
The Group does not anticipate that the adoption of these standards will have a
material effect on its financial statements except for additional disclosures on
Operating Segments when IFRS 8 comes into effect for its year ending 31 December
2010.
3.4 Basis of consolidation
The consolidated financial statements incorporate the accounts of the Company
and its subsidiaries and have been prepared by using the principles of
acquisition accounting ("the purchase method") which includes the results of the
subsidiaries from their date of acquisition. Intra-group sales, profits and
balances are eliminated fully on consolidation.
3.5 Goodwill
Goodwill is the difference between the amount paid on the acquisition of the
subsidiary undertakings and the aggregate fair value of their separable net
assets - of which oil and gas exploration expenditure is the primary asset.
Goodwill is capitalised as an intangible fixed asset and in accordance with
IFRS3 'Business Combinations' is not amortised but tested for impairment
annually and when there are any indications that its carrying value is not
recoverable. As such, goodwill is stated at cost less any provision for
impairment in value. If a subsidiary undertaking is subsequently sold, goodwill
arising on acquisition is taken into account in determining the profit and loss
on sale.
3.6 Oil and Gas Exploration and Evaluation Expenditure
All exploration and evaluation costs incurred or acquired on the acquisition of
a subsidiary are accumulated in respect of each identifiable project area.
These costs, which are classified as intangible assets are only carried forward
to the extent that they are expected to be recouped through the successful
development of the areas or where activities in the area have not yet reached a
stage which permits reasonable assessment of the existence of economically
recoverable reserves (successful efforts). Pre licence/project costs are
written off immediately. Other costs are written off unless commercial reserves
have been established or the determination process has not been completed. Thus
accumulated costs in relation to an abandoned area are written off in full
against profit in the year in which the decision to abandon the area is made.
When production commences the accumulated costs for the relevant area of
interest are transferred from intangible assets to tangible assets as 'Developed
Oil and Gas Assets' and amortised over the life of the area according to the
rate of depletion of the economically recoverable costs.
3.7 Impairment of Oil and Gas Exploration and Evaluation Expenditure and
Related Goodwill
The carrying value of unevaluated areas and the related goodwill is assessed on
at least an annual basis or when there has been an indication that impairment in
value may have occurred. The impairment of unevaluated prospects is assessed
based on the Directors' intention with regard to future exploration and
development of individual significant areas and the ability to obtain funds to
finance such exploration and development.
3.8 Impairment of Developed Oil and Gas Assets
When events or changes in circumstances indicate that the carrying amount of any
developed oil and gas assets included within tangible assets may not be
recoverable from future net revenues from oil and gas reserves attributable to
that asset, a comparison between the net book value of the asset and the
discounted future cash flows from estimated recoverable oil and gas reserves is
undertaken. To the extent that the carrying amount exceeds the recoverable
amount, the asset is written down to its recoverable amount and the write off
being charged as amortisation in the income statement
3.9 Amortisation of Developed Oil and Gas Assets
Developed oil and gas assets will be amortised on a unit of production basis
using the ratio of oil and gas production in the period to the estimated
quantity of commercial reserves at the end of the period plus production in the
period. Changes in estimates of commercial reserves or future development costs
are dealt with prospectively.
3.10 Decommissioning costs
Where a material liability for the removal of production facilities and site
restoration at the end of the field life exists, a provision for decommissioning
is recognised. The amount recognised is the present value of estimated future
expenditure determined in accordance with local conditions and requirements. An
asset of an amount equivalent to the provision is also created and depreciated
on a unit of production basis. Changes in estimates are recognised
prospectively, with corresponding adjustments to the provision and the
associated asset.
3.11 Investments
The Parent Company's investments in subsidiary companies are stated at cost less
provision for impairment in the Company's balance sheet.
3.12 Share based payments
The Company made share-based payments to certain Directors and advisers by way
of issue of share options. The fair value of these payments is calculated by
the Company using the Black Scholes option pricing model. The expense is
recognised on a straight line basis over the period from the date of award to
the date of vesting, based on the Company's best estimate of shares that will
eventually vest.
3.13 Foreign currency translation
(i) Functional and presentational currency
Items included in the Group's financial statements are measured using the
currency of the primary economic environment in which the Group operates ("the
functional currency"). With effect from 1 July 2008, the Directors consider the
US Dollar to be the Group's functional currency. Comparative figures have been
restated into US Dollars from Pounds Sterling (GBP). The effective exchange rate
at 31 December 2009 GBP1 = $1.5986.
(ii) Transactions and balances
Foreign currency transactions are translated into the functional currency using
the exchange rates prevailing at the dates of the transactions. Foreign
exchange gains and losses resulting from the settlement of such transactions and
from the translation at year end exchange rates of monetary assets and
liabilities denominated in foreign currencies are recognised in the income
statement.
Transactions in the accounts of individual Group companies are recorded at the
rate of exchange ruling on the date of the transaction. Monetary assets and
liabilities denominated in foreign currencies are translated at the rates ruling
at the balance sheet date. All differences are taken to the income statement.
3.14 Deferred taxation
Deferred income taxes are provided in full, using the liability method, for all
temporary differences arising between the tax bases of assets and liabilities
and their carrying amounts in the financial statements. Deferred income taxes
are determined using tax rates that have been enacted or substantially enacted
and are expected to apply when the related deferred income tax asset is realised
or the related deferred income tax liability is settled.
The principal temporary differences arise from depreciation or amortisation
charged on assets and tax losses carried forward. Deferred tax assets relating
to the carry forward of unused tax losses are recognised to the extent that it
is probable that future taxable profit will be available against which the
unused tax losses can be utilised.
3.15 Cash and cash equivalents
Cash and cash equivalents are carried in the balance sheet at cost and comprise
cash in hand, cash at bank, deposits held at call with banks, other short-term
highly liquid investments with original maturities of three months or less.
Bank overdrafts are included within borrowings in current liabilities on the
balance sheet. For the purposes of the cash flow statement, cash and cash
equivalents also include the bank overdrafts.
3.16 Receivables
Receivables are carried at original invoice amount less provision made for
impairment of these receivables. A provision for impairment of receivables is
established when there is objective evidence that the Group will not be able to
collect all amounts due according to the original terms of the receivables. The
amount of the provision is the difference between the assets' carrying amount
and the recoverable amount. Provisions for impairment of receivables are
included in the income statement.
3.17 Payables
Payables are recognised initially at fair values and subsequently measured at
amortised cost using the effective interest method.
3.18 Share capital
Ordinary shares are classified as equity. Incremental costs directly
attributable to the increase of new shares or options are shown in equity as a
deduction from the proceeds.
3.19 Critical accounting judgements and estimates
The preparation of financial statements in conformity with International
Financial Reporting Standards requires the use of accounting estimates and
assumptions that affect the reported amounts of assets and liabilities at the
date of the financial statements and the reported amounts of income and expenses
during the reporting period. Although these estimates are based on management's
best knowledge of current events and actions, actual results ultimately may
differ from those estimates. IFRS also require management to exercise its
judgement in the process of applying the Group's accounting policies.
The prime areas involving a higher degree of judgement or complexity, where
assumptions and estimates are significant to the financial statements, are as
follows:
Impairment of intangible assets
Determining whether intangible assets are impaired requires an estimation of
whether there are any indications that its carrying value is not recoverable.
4. Segmental reporting
a) Primary reporting format - Business Segment
For the purposes of segmental information, the operations of the Group currently
comprise one business segment: Oil and Gas Exploration and Production.
b) Secondary reporting format - Geographical
The Group's activities are currently in two geographical areas - Europe and
South America, as shown below:
Revenue
The Group's revenue during the year was attributable solely to its activities in
Colombia and resulted from well testing activities and not commercial
production.
+----------------------------------+--------------+--------------+
| | Period ended | Year ended |
| | 31.12.2009 | 30.06.2008 |
+----------------------------------+--------------+--------------+
| | $ | $ |
+----------------------------------+--------------+--------------+
| Operating loss | | |
+----------------------------------+--------------+--------------+
| Europe | (1,713,283) | (2,488,214) |
+----------------------------------+--------------+--------------+
| South America | (1,840,219) | (4,944,849) |
+----------------------------------+--------------+--------------+
| | ____________ | ____________ |
+----------------------------------+--------------+--------------+
| | | |
+----------------------------------+--------------+--------------+
| | (3,553,502) | (7,433,063) |
+----------------------------------+--------------+--------------+
| | ____________ | ____________ |
+----------------------------------+--------------+--------------+
| Total assets | | |
+----------------------------------+--------------+--------------+
| Europe | 5,813,710 | 5,505,094 |
+----------------------------------+--------------+--------------+
| South America | 9,009,367 | 5,806,893 |
+----------------------------------+--------------+--------------+
| | ____________ | ____________ |
+----------------------------------+--------------+--------------+
| | | |
+----------------------------------+--------------+--------------+
| | 14,823,077 | 11,311,987 |
+----------------------------------+--------------+--------------+
| | ____________ | ____________ |
+----------------------------------+--------------+--------------+
| | | |
+----------------------------------+--------------+--------------+
Capital expenditure is located entirely in South America.
5. Group operating loss
The Group's operating loss is stated after charging:
+---------------+-------------------------+------------+------------+
| | Period | Year |
| | ended | ended |
| | 31.12.2009 | 30.06.2008 |
+-----------------------------------------+------------+------------+
| | $ | $ |
+-----------------------------------------+------------+------------+
| | | |
+-----------------------------------------+------------+------------+
| Impairment of exploration assets (note | 650,044 | 4,435,936 |
| 11) | | |
+-----------------------------------------+------------+------------+
| Employee costs (note 10) | 720,351 | 933,282 |
+-----------------------------------------+------------+------------+
| Rental of properties | 130,418 | 73,286 |
+-----------------------------------------+------------+------------+
| Auditors' | - audit services | 41,603 | 60,000 |
| remuneration | | | |
+---------------+-------------------------+------------+------------+
| | - non-audit services | 20,000 | 20,000 |
+---------------+-------------------------+------------+------------+
Non-audit fees consist of $10,000 (2008: $10,000) for tax compliance services
and $10,000 (2008: $10,000) for reviewing the Group's half yearly results.
6.Taxation
+-------------------------------------------+--------------+--------------+
| | Period | Year |
| | ended | ended |
| | 31.12.2009 | 30.06.2008 |
+-------------------------------------------+--------------+--------------+
| | $ | $ |
+-------------------------------------------+--------------+--------------+
| Current Tax | | |
+-------------------------------------------+--------------+--------------+
| UK corporation tax | - | - |
+-------------------------------------------+--------------+--------------+
| Overseas tax | - | - |
+-------------------------------------------+--------------+--------------+
| Deferred tax | - | - |
+-------------------------------------------+--------------+--------------+
| | ____________ | ____________ |
+-------------------------------------------+--------------+--------------+
| | - | - |
+-------------------------------------------+--------------+--------------+
| | ____________ | ____________ |
+-------------------------------------------+--------------+--------------+
| | | |
+-------------------------------------------+--------------+--------------+
The tax charge can be reconciled to the loss for the year as follows:
+----------------------------------------+-------------+-------------+
| | Period | Year |
| | ended | ended |
| | 31.12.2009 | 30.06.2008 |
+----------------------------------------+-------------+-------------+
| | $ | $ |
+----------------------------------------+-------------+-------------+
| Group loss before tax | (3,552,317) | (7,410,217) |
+----------------------------------------+-------------+-------------+
| | ___________ | ___________ |
+----------------------------------------+-------------+-------------+
| Tax at the standard rate of UK | (994,649) | (2,223,065) |
| corporation tax of 28% (2008:30%) | | |
+----------------------------------------+-------------+-------------+
| | | |
+----------------------------------------+-------------+-------------+
| Effects of: | | |
+----------------------------------------+-------------+-------------+
| Expenses not deductible for tax | 135,276 | 186,769 |
| purposes | | |
+----------------------------------------+-------------+-------------+
| Deferred tax not recognised | 859,373 | 2,036,296 |
+----------------------------------------+-------------+-------------+
| | ___________ | ___________ |
+----------------------------------------+-------------+-------------+
| Total current tax charge | - | - |
+----------------------------------------+-------------+-------------+
| | ___________ | ___________ |
+----------------------------------------+-------------+-------------+
At the balance sheet date, the Group had unused tax losses of $10.6 million
(2008: $8 million) available for offset against suitable future profits. A
deferred tax asset has not been recognised in respect of such losses due to the
uncertainty of future profit streams. The contingent deferred tax asset is
estimated to be $3 million (2008: $2,240,000).
7. Discontinued operations
Discontinued operations consist of the disposal of Alhucema Resource
Corporation. The post-tax loss of the discontinued operations is classified as
a single line on the face of the consolidated income statement, together with
the post-tax gain on the disposal of the operations.
On 1 August 2009, the Company sold its shareholding in the entire issued share
capital of Alhucema Resources Corporation ("ARC") for a consideration of $nil.
The loss from discontinued operations is as follows:
+------------------------------------------------+-------------+----------+
| | Period ended |
| | 31.12.2009 |
+------------------------------------------------+------------------------+
| | $ |
+------------------------------------------------+------------------------+
| | | |
+------------------------------------------------+-------------+----------+
| Loss from operations (note (a) below) | (987,824) | |
+------------------------------------------------+-------------+----------+
| Profit on disposal (note (b) below) | 56,885 | |
+------------------------------------------------+-------------+----------+
| | ___________ | |
+------------------------------------------------+-------------+----------+
| | (930,939) | |
+------------------------------------------------+-------------+----------+
| | ___________ | |
+------------------------------------------------+-------------+----------+
| | | |
+------------------------------------------------+-------------+----------+
a) Loss from discontinued operations may be analysed as follows:
+------------------------------------------------+-------------+
| | Period |
| | ended |
| | 31.12.2009 |
+------------------------------------------------+-------------+
| | $ |
+------------------------------------------------+-------------+
| | |
+------------------------------------------------+-------------+
| Revenue | - |
+------------------------------------------------+-------------+
| Operating expenses | (1,164,991) |
+------------------------------------------------+-------------+
| Other income | 177,167 |
+------------------------------------------------+-------------+
| Finance costs | - |
+------------------------------------------------+-------------+
| | ___________ |
+------------------------------------------------+-------------+
| | 987,824 |
+------------------------------------------------+-------------+
| | ___________ |
+------------------------------------------------+-------------+
| | |
+------------------------------------------------+-------------+
b) Profit on disposal of discontinued operations may be analysed as follows:
+-------------------------------------------------+-------------+
| | Period |
| | ended |
| | 31.12.2009 |
+-------------------------------------------------+-------------+
| | $ |
+-------------------------------------------------+-------------+
| | |
+-------------------------------------------------+-------------+
| Proceeds received | - |
+-------------------------------------------------+-------------+
| Net liabilities on disposal (see below) | (56,885) |
+-------------------------------------------------+-------------+
| Goodwill released on disposal (net of | - |
| impairment) | |
+-------------------------------------------------+-------------+
| | ___________ |
+-------------------------------------------------+-------------+
| | |
+-------------------------------------------------+-------------+
| Total profit on disposal | (56,885) |
+-------------------------------------------------+-------------+
| | ___________ |
+-------------------------------------------------+-------------+
| | |
+-------------------------------------------------+-------------+
| The book values of the net liabilities disposed | |
| were: | |
+-------------------------------------------------+-------------+
| | |
+-------------------------------------------------+-------------+
| Cash and cash equivalents | 2,237 |
+-------------------------------------------------+-------------+
| Trade and other receivables | 2,425 |
+-------------------------------------------------+-------------+
| Trade and other payables | (116,202) |
+-------------------------------------------------+-------------+
| Taxation payable | - |
+-------------------------------------------------+-------------+
| Borrowings | - |
+-------------------------------------------------+-------------+
| | ___________ |
+-------------------------------------------------+-------------+
| | |
+-------------------------------------------------+-------------+
| Net liabilities disposed | (111,540) |
+-------------------------------------------------+-------------+
| | ___________ |
+-------------------------------------------------+-------------+
| | |
+-------------------------------------------------+-------------+
| Group's 51% share of net liabilities | (56,885) |
+-------------------------------------------------+-------------+
| | ___________ |
+-------------------------------------------------+-------------+
| The effect of the disposal on the group's cash | |
| flow is: | |
+-------------------------------------------------+-------------+
| Cash proceeds from disposal | - |
+-------------------------------------------------+-------------+
| Cash balance included in disposal | (2,237) |
+-------------------------------------------------+-------------+
| | ___________ |
+-------------------------------------------------+-------------+
| | |
+-------------------------------------------------+-------------+
| Net cash outflow from the disposal | (2,237) |
+-------------------------------------------------+-------------+
| | ___________ |
+-------------------------------------------------+-------------+
| | |
+-------------------------------------------------+-------------+
8. Loss per share
+-----------------------------------------+-------------+-------------+
| | Period | Year |
| | ended | ended |
| | 31.12.2009 | 30.06.2008 |
+-----------------------------------------+-------------+-------------+
| | $ | $ |
+-----------------------------------------+-------------+-------------+
| Loss attributable to equity | (2,713,719) | (6,837,083) |
| shareholders - Continuing | | |
+-----------------------------------------+-------------+-------------+
| Loss attributable to equity | (3,160,630) | (6,837,083) |
| shareholders - Continuing and | | |
| Discontinuing | | |
+-----------------------------------------+-------------+-------------+
| Weighted average number of shares in | 152,963,327 | 62,003,632 |
| issue | | |
+-----------------------------------------+-------------+-------------+
| | | |
+-----------------------------------------+-------------+-------------+
| | Cents | Cents |
+-----------------------------------------+-------------+-------------+
| Basic loss per share - Continuing | (1.77) | (11.03) |
+-----------------------------------------+-------------+-------------+
| Basic loss per share - Continuing and | (2.07) | (11.03) |
| Discontinuing | | |
+-----------------------------------------+-------------+-------------+
| | ___________ | ___________ |
+-----------------------------------------+-------------+-------------+
The diluted loss per share has been calculated using a weighted average number
of shares in issue and to be issued of 152,963,327 (2008: 62,003,632). The
diluted loss per share has been kept the same as the basic loss per share as the
conversion of share options decreases the basis loss per share, thus being
anti-dilutive.
9. Parent Company income statement
In accordance with the provisions of the Section 408 of the Companies Act 2006,
the Parent Company has not presented an income statement. The loss for the 18
month period ended 31 December 2009 of $3,728,754 (2008: $5,215,235) has been
included in the consolidated income statement.
10. Employee costs
The employee costs of the Group, including Directors' remuneration, are as
follows:
+-----------------------------------------+-------------+-------------+
| | Period | Year |
| | ended | ended |
| | 31.12.2009 | 30.06.2008 |
+-----------------------------------------+-------------+-------------+
| | $ | $ |
+-----------------------------------------+-------------+-------------+
| | | |
+-----------------------------------------+-------------+-------------+
| Wages, salaries and fees | 634,284 | 637,702 |
+-----------------------------------------+-------------+-------------+
| Social security costs | 55,576 | 81,100 |
+-----------------------------------------+-------------+-------------+
| Pension costs | 30,491 | 214,480 |
+-----------------------------------------+-------------+-------------+
| | ___________ | ___________ |
+-----------------------------------------+-------------+-------------+
| | | |
+-----------------------------------------+-------------+-------------+
| | 720,351 | 933,282 |
+-----------------------------------------+-------------+-------------+
| | ___________ | ___________ |
+-----------------------------------------+-------------+-------------+
The number of employees at 31 December 2009 (including Directors) was: 6
Directors and 2 staff. (2008 - 4 Directors and 1 staff)
The above employee costs include the Company's Directors. Further details of
their remuneration are shown below and in the Directors' Report:
+-----------------------------------------+-------------+-------------+
| | Period | Year |
| | ended | ended |
| | 31.12.2009 | 30.06.2008 |
+-----------------------------------------+-------------+-------------+
| | $ | $ |
+-----------------------------------------+-------------+-------------+
| | | |
+-----------------------------------------+-------------+-------------+
| Wages, salaries and fees | 411,899 | 580,000 |
+-----------------------------------------+-------------+-------------+
| Compensation for loss of office | 48,144 | - |
+-----------------------------------------+-------------+-------------+
| Social security costs | 47,022 | 69,478 |
+-----------------------------------------+-------------+-------------+
| Pension contributions | 30,491 | 214,480 |
+-----------------------------------------+-------------+-------------+
| | ___________ | ___________ |
+-----------------------------------------+-------------+-------------+
| | | |
+-----------------------------------------+-------------+-------------+
| | 537,556 | 863,958 |
+-----------------------------------------+-------------+-------------+
| | ___________ | ___________ |
+-----------------------------------------+-------------+-------------+
Benefits in kind comprise of $Nil (2008: $Nil)
11. Intangible assets
+---------------------------+---+-------------+-------------+-------------+
| Group: | Exploration | Goodwill | Total |
| | and | | |
| | evaluation | | |
| | assets | | |
+---------------------------+-----------------+-------------+-------------+
| | $ | $ | $ |
+-------------------------------+-------------+-------------+-------------+
| Cost | | | |
+-------------------------------+-------------+-------------+-------------+
| At 1 July 2007 | 12,473,554 | 1,006,794 | 13,480,348 |
+-------------------------------+-------------+-------------+-------------+
| Additions in 2008 | 4,097,686 | - | 4,097,686 |
+-------------------------------+-------------+-------------+-------------+
| Prior period adjustment (see | (548,097) | - | (548,097) |
| below) | | | |
+-------------------------------+-------------+-------------+-------------+
| | ___________ | ___________ | ___________ |
+-------------------------------+-------------+-------------+-------------+
| At 30 June 2008 | 16,023,143 | 1,006,794 | 17,029,937 |
+-------------------------------+-------------+-------------+-------------+
| Additions in 2009 | 4,058,314 | - | 4,058,314 |
+-------------------------------+-------------+-------------+-------------+
| Foreign exchange adjustments | (996,317) | - | (996,317) |
+-------------------------------+-------------+-------------+-------------+
| Disposed of with subsidiary | (2,373,710) | - | (2,373,710) |
+-------------------------------+-------------+-------------+-------------+
| | ___________ | ___________ | ___________ |
+-------------------------------+-------------+-------------+-------------+
| | | | |
+-------------------------------+-------------+-------------+-------------+
| At 31 December 2009 | 16,711,430 | 1,006,794 | 17,718,224 |
+-------------------------------+-------------+-------------+-------------+
| | ___________ | ___________ | ___________ |
+-------------------------------+-------------+-------------+-------------+
| Amortisation and impairment | | | |
+-------------------------------+-------------+-------------+-------------+
| At 1 July 2007 | (1,097,208) | (1,006,794) | (2,104,002) |
+-------------------------------+-------------+-------------+-------------+
| Impairment charge for 2008 | (4,435,936) | - | (4,435,936) |
+-------------------------------+-------------+-------------+-------------+
| | ___________ | ___________ | ___________ |
+-------------------------------+-------------+-------------+-------------+
| | | | |
+-------------------------------+-------------+-------------+-------------+
| At 30 June 2008 | (5,533,144) | (1,006,794) | (6,539,938) |
+-------------------------------+-------------+-------------+-------------+
| Impairment charge for 2009 | (1,859,242) | - | (1,859,242) |
| (see below) | | | |
+-------------------------------+-------------+-------------+-------------+
| Disposed of with subsidiary | 2,373,710 | - | 2,373,710 |
+-------------------------------+-------------+-------------+-------------+
| | ___________ | ___________ | ___________ |
+-------------------------------+-------------+-------------+-------------+
| | | | |
+-------------------------------+-------------+-------------+-------------+
| At 31 December 2009 | (5,018,676) | (1,006,794) | (6,025,470) |
+-------------------------------+-------------+-------------+-------------+
| | ___________ | ___________ | ___________ |
+-------------------------------+-------------+-------------+-------------+
| Net book value | | | |
+-------------------------------+-------------+-------------+-------------+
| At 31 December 2009 | 11,692,754 | - | 11,692,754 |
+-------------------------------+-------------+-------------+-------------+
| | ___________ | ___________ | ___________ |
+-------------------------------+-------------+-------------+-------------+
| | | | |
+-------------------------------+-------------+-------------+-------------+
| At 30 June 2008 | 10,489,999 | - | 10,489,999 |
+-------------------------------+-------------+-------------+-------------+
| | ___________ | ___________ | ___________ |
+-------------------------------+-------------+-------------+-------------+
| | | | | |
+---------------------------+---+-------------+-------------+-------------+
The net book value of the exploration and evaluation assets can be analysed in
the following geographical areas:
+--------------------------------------+-------------+-------------+
| | 31.12.2009 | 30.06.2008 |
+--------------------------------------+-------------+-------------+
| | $ | $ |
+--------------------------------------+-------------+-------------+
| | | |
+--------------------------------------+-------------+-------------+
| Europe | 4,274,000 | 5,460,008 |
+--------------------------------------+-------------+-------------+
| South America | 7,418,754 | 5,029,991 |
+--------------------------------------+-------------+-------------+
| | ___________ | ___________ |
+--------------------------------------+-------------+-------------+
| | 11,692,754 | 10,489,999 |
+--------------------------------------+-------------+-------------+
| | ___________ | ___________ |
+--------------------------------------+-------------+-------------+
| | | |
+--------------------------------------+-------------+-------------+
Goodwill arose on the acquisition of the Company's subsidiary undertakings. The
Group tests goodwill for impairment annually and when there are indicators of
impairment. Goodwill was fully impaired in prior years.
11. Intangible assets (continued)
The amounts for intangible exploration and evaluation ("E&E") assets represent
costs incurred in relation to the Group's licences. These amounts will be
written off to the income statement as exploration expenses unless commercial
reserves are established or the determination process is not completed and there
are no indicators of impairment. The outcome of ongoing exploration and
evaluation, and therefore whether the carrying value of E&E assets will
ultimately be recovered, is inherently uncertain. The Directors have assessed
the value of the Group's oil and gas exploration and evaluation assets and in
their opinion no further provision for impairment is currently necessary.
The prior year adjustment of $548,097 arose as a result of reclassifying costs
to operating costs that were previously capitalised to E&E assets due to the
late submission of reports from the operator. The income statement and retained
losses in the consolidated statement of changes in equity have been restated
accordingly.
The impairment charge of $1,859,242 shown above includes $1,209,198 relating to
the impairment of Alhucema Resource Corporation's E&E assets which is included
in discontinued operations in the income statement. The balance of $650,044
relates to the impairment of E&E assets from continuing operations and has been
shown on the consolidated income statement.
+-------------------------------------+-----------------------+
| Company | Exploration and |
| | evaluation assets |
+-------------------------------------+-----------------------+
| | $ |
+-------------------------------------+-----------------------+
| Cost | |
+-------------------------------------+-----------------------+
| At 1 July 2007 | 12,473,554 |
+-------------------------------------+-----------------------+
| Additions in 2008 | 2,571,182 |
+-------------------------------------+-----------------------+
| Transfer to subsidiaries | (7,894,166) |
+-------------------------------------+-----------------------+
| | ___________ |
+-------------------------------------+-----------------------+
| | |
+-------------------------------------+-----------------------+
| At 30 June 2008 | 7,150,570 |
+-------------------------------------+-----------------------+
| Additions in 2009 | 83,226 |
+-------------------------------------+-----------------------+
| Foreign exchange adjustment | (1,111,845) |
+-------------------------------------+-----------------------+
| | ___________ |
+-------------------------------------+-----------------------+
| | |
+-------------------------------------+-----------------------+
| At 31 December 2009 | 6,121,951 |
+-------------------------------------+-----------------------+
| | ___________ |
+-------------------------------------+-----------------------+
| Amortisation and impairment | |
+-------------------------------------+-----------------------+
| At 1 July 2007 | (1,097,208) |
+-------------------------------------+-----------------------+
| Impairment charge for 2008 | (593,354) |
+-------------------------------------+-----------------------+
| | ___________ |
+-------------------------------------+-----------------------+
| | |
+-------------------------------------+-----------------------+
| At 30 June 2008 | (1,690,562) |
+-------------------------------------+-----------------------+
| Impairment charge for 2009 | (157,389) |
+-------------------------------------+-----------------------+
| | ___________ |
+-------------------------------------+-----------------------+
| | |
+-------------------------------------+-----------------------+
| At 31 December 2009 | (1,847,951) |
+-------------------------------------+-----------------------+
| | ___________ |
+-------------------------------------+-----------------------+
| Net book value | |
+-------------------------------------+-----------------------+
| At 31 December 2009 | 4,274,000 |
+-------------------------------------+-----------------------+
| | ___________ |
+-------------------------------------+-----------------------+
| | |
+-------------------------------------+-----------------------+
| At 30 June 2008 | 5,460,008 |
+-------------------------------------+-----------------------+
| | ___________ |
+-------------------------------------+-----------------------+
| | |
+-------------------------------------+-----------------------+
The Company transferred all of its E&E assets in Colombia to its subsidiary
companies during the year ended 30 June 2008.
12. Investments in subsidiary undertakings
+--------------------------+--------------+--------------+--------------+
| | Loans to | Shares in | Total |
| | subsidiary | subsidiary | |
| | undertakings | undertakings | |
+--------------------------+--------------+--------------+--------------+
| | $ | $ | $ |
+--------------------------+--------------+--------------+--------------+
| Company | | | |
+--------------------------+--------------+--------------+--------------+
| | | | |
+--------------------------+--------------+--------------+--------------+
| Cost | | | |
+--------------------------+--------------+--------------+--------------+
| At 1 July 2007 | - | 7,714,036 | 7,714,036 |
+--------------------------+--------------+--------------+--------------+
| Loans granted in 2008 | 2,747,754 | - | 2,747,754 |
+--------------------------+--------------+--------------+--------------+
| Acquisitions during 2008 | - | 5,209,096 | 5,209,096 |
+--------------------------+--------------+--------------+--------------+
| | ___________ | ___________ | ___________ |
+--------------------------+--------------+--------------+--------------+
| | | | |
+--------------------------+--------------+--------------+--------------+
| At 30 June 2008 | 2,747,754 | 12,923,132 | 15,670,886 |
+--------------------------+--------------+--------------+--------------+
| Disposals during 2009 | - | (1,052,779) | (1,052,779) |
+--------------------------+--------------+--------------+--------------+
| | ___________ | ___________ | ___________ |
+--------------------------+--------------+--------------+--------------+
| | | | |
+--------------------------+--------------+--------------+--------------+
| | 2,747,754 | 11,870,353 | 14,618,107 |
+--------------------------+--------------+--------------+--------------+
| | ___________ | ___________ | ___________ |
+--------------------------+--------------+--------------+--------------+
| Impairment | | | |
+--------------------------+--------------+--------------+--------------+
| At 1 July 2007 | - | (7,702,070) | (7,702,070) |
+--------------------------+--------------+--------------+--------------+
| Impairment charge for | (2,678,070) | - | (2,678,070) |
| 2008 | | | |
+--------------------------+--------------+--------------+--------------+
| | ___________ | ___________ | ___________ |
+--------------------------+--------------+--------------+--------------+
| | | | |
+--------------------------+--------------+--------------+--------------+
| At 30 June 2008 | (2,678,070) | (7,702,070) | (10,380,140) |
+--------------------------+--------------+--------------+--------------+
| Impairment charge for | (69,684) | - | (69,684) |
| 2009 | | | |
+--------------------------+--------------+--------------+--------------+
| | ___________ | ___________ | ___________ |
+--------------------------+--------------+--------------+--------------+
| | | | |
+--------------------------+--------------+--------------+--------------+
| | (2,747,754) | (7,702,070) | (10,449,824) |
+--------------------------+--------------+--------------+--------------+
| | ___________ | ___________ | ___________ |
+--------------------------+--------------+--------------+--------------+
| Net book values | | | |
+--------------------------+--------------+--------------+--------------+
| At 31 December 2009 | - | 4,168,283 | 4,168,283 |
+--------------------------+--------------+--------------+--------------+
| | ___________ | ___________ | ___________ |
+--------------------------+--------------+--------------+--------------+
| | | | |
+--------------------------+--------------+--------------+--------------+
| At 30 June 2008 | 69,684 | 5,221,062 | 5,290,746 |
+--------------------------+--------------+--------------+--------------+
| | ___________ | ___________ | ___________ |
+--------------------------+--------------+--------------+--------------+
| | | | |
+--------------------------+--------------+--------------+--------------+
The Company's directly-held subsidiary undertakings as at 31 December 2009 are:
+--------------------------+-----------+---------------+---------------+
| Name | Ownership | Country |Main activity |
| | | of | |
| | |incorporation | |
+--------------------------+-----------+---------------+---------------+
| | | | |
+--------------------------+-----------+---------------+---------------+
| Las Quinchas Resource | 51% | Barbados | Oil and gas |
| Corporation | | | exploration |
+--------------------------+-----------+---------------+---------------+
| Black Rock Oil & Gas | 100% | Colombia | Oil and gas |
| Sucursal Colombia | | | exploration |
+--------------------------+-----------+---------------+---------------+
| Wildlook Enterprises Pty | 100% | Australia | Struck off |
| Ltd | | | 01/07/2009 |
+--------------------------+-----------+---------------+---------------+
| | | | |
+--------------------------+-----------+---------------+---------------+
13. Receivables
+----------------------+-------------+-------------+-------------+-------------+
| | 31 December 2009 | 30 June 2008 |
+----------------------+---------------------------+---------------------------+
| | Group | Company | Group | Company |
+----------------------+-------------+-------------+-------------+-------------+
| | $ | $ | $ | $ |
+----------------------+-------------+-------------+-------------+-------------+
| | | | | |
+----------------------+-------------+-------------+-------------+-------------+
| Other receivables | 884,077 | 189,783 | 775,940 | 358,944 |
+----------------------+-------------+-------------+-------------+-------------+
| Prepayments | 29,568 | 29,283 | 14,624 | 14,624 |
+----------------------+-------------+-------------+-------------+-------------+
| | ___________ | ___________ | ___________ | ___________ |
+----------------------+-------------+-------------+-------------+-------------+
| | | | | |
+----------------------+-------------+-------------+-------------+-------------+
| | 913,645 | 219,066 | 790,564 | 373,568 |
+----------------------+-------------+-------------+-------------+-------------+
| | ___________ | ___________ | ___________ | ___________ |
+----------------------+-------------+-------------+-------------+-------------+
| | | | | |
+----------------------+-------------+-------------+-------------+-------------+
14. Trade and other payables
+----------------------+-------------+-------------+-------------+-------------+
| | 31 December 2009 | 30 June 2008 |
+----------------------+---------------------------+---------------------------+
| | Group | Company | Group | Company |
+----------------------+-------------+-------------+-------------+-------------+
| | $ | $ | $ | $ |
+----------------------+-------------+-------------+-------------+-------------+
| | | | | |
+----------------------+-------------+-------------+-------------+-------------+
| Trade payables | - | - | 253,660 | - |
+----------------------+-------------+-------------+-------------+-------------+
| Other payables | 39,964 | 39,694 | 5,794 | 5,794 |
+----------------------+-------------+-------------+-------------+-------------+
| Accruals | 2,711,226 | 42,204 | 1,133,420 | 307,782 |
+----------------------+-------------+-------------+-------------+-------------+
| | ___________ | ___________ | ___________ | ___________ |
+----------------------+-------------+-------------+-------------+-------------+
| | | | | |
+----------------------+-------------+-------------+-------------+-------------+
| | 2,751,190 | 81,898 | 1,392,874 | 313,576 |
+----------------------+-------------+-------------+-------------+-------------+
| | ___________ | ___________ | ___________ | ___________ |
+----------------------+-------------+-------------+-------------+-------------+
| | | | | |
+----------------------+-------------+-------------+-------------+-------------+
15. Borrowings
+----------------------+-------------+-------------+-------------+-------------+
| | 31 December 2009 | 30 June 2008 |
+----------------------+---------------------------+---------------------------+
| | Group | Company | Group | Company |
+----------------------+-------------+-------------+-------------+-------------+
| | $ | $ | $ | $ |
+----------------------+-------------+-------------+-------------+-------------+
| | | | | |
+----------------------+-------------+-------------+-------------+-------------+
| Non-current | | | | |
+----------------------+-------------+-------------+-------------+-------------+
| Non-recourse loan | 4,274,000 | 4,274,000 | 4,274,000 | 4,274,000 |
+----------------------+-------------+-------------+-------------+-------------+
| | ___________ | ___________ | ___________ | ___________ |
+----------------------+-------------+-------------+-------------+-------------+
| | | | | |
+----------------------+-------------+-------------+-------------+-------------+
| Total borrowings | 4,274,000 | 4,274,000 | 4,274,000 | 4,274,000 |
+----------------------+-------------+-------------+-------------+-------------+
| | ___________ | ___________ | ___________ | ___________ |
+----------------------+-------------+-------------+-------------+-------------+
| | | | | |
+----------------------+-------------+-------------+-------------+-------------+
In September 2006 the Company entered into an arrangement with Gemini Oil & Gas
Fund II, LP ("Gemini"), whereby Gemini is to fund up to US$4.27 million in
respect of the drilling of the Company's 49/8C-4 well in the Monterey Gas Field
of the Southern Gas Basin of the North Sea. The loan has been fully drawn down.
The loan is currently interest free and it is without recourse in return for an
entitlement for Gemini to receive interest and principal payments based on the
Company's share of future revenues from the Monterey Gas Field.
16. Provision for decommissioning
The Directors have considered environmental issues and the need for any
necessary provision for the cost of rectifying any environmental damage, as
might be required under local legislation and the Group's licence obligations.
In their view, apart from the provision for decommissioning of $679,559 in the
consolidated balance sheet, no further provision is necessary at 31 December
2009 for any future costs of decommissioning or any environmental damage.
17. Share capital and share warrants
+----------------------------------+---------------+-------------+
| | 31 | 30 June |
| | December | 2008 |
| | 2009 | |
+----------------------------------+---------------+-------------+
| Group and Company | | |
+----------------------------------+---------------+-------------+
| | Number | Number |
+----------------------------------+---------------+-------------+
| Authorised | | |
+----------------------------------+---------------+-------------+
| 1,445,235,888 (2008: | 1,445,235,888 | 295,235,888 |
| 295,235,888) ordinary shares of | | |
| 1p each | | |
+----------------------------------+---------------+-------------+
| | | |
+----------------------------------+---------------+-------------+
| 21,031,838 deferred shares of | 21,031,838 | 21,031,838 |
| 24p each | | |
+----------------------------------+---------------+-------------+
| | ___________ | ___________ |
+----------------------------------+---------------+-------------+
| | | |
+----------------------------------+---------------+-------------+
| | 1,466,267,726 | 316,267,726 |
+----------------------------------+---------------+-------------+
| | ___________ | ___________ |
+----------------------------------+---------------+-------------+
| | | |
+----------------------------------+---------------+-------------+
| | $ | $ |
+----------------------------------+---------------+-------------+
| Allotted, called up and fully | | |
| paid | | |
+----------------------------------+---------------+-------------+
| 232,160,407 (2008: 32,160,407) | 3,501,369 | 643,208 |
| ordinary shares of | | |
| 1p each | | |
+----------------------------------+---------------+-------------+
| 21,031,838 deferred shares of | 10,095,282 | 10,095,282 |
| 24p each | | |
+----------------------------------+---------------+-------------+
| | ___________ | ___________ |
+----------------------------------+---------------+-------------+
| | | |
+----------------------------------+---------------+-------------+
| | 13,596,651 | 10,738,490 |
+----------------------------------+---------------+-------------+
| | ___________ | ___________ |
+----------------------------------+---------------+-------------+
| | | |
+----------------------------------+---------------+-------------+
The share capital issues in the period ended 31 December 2009 were as follows:
+------------------------------+----------------+-------------+
| | Number of 1p | Number of |
| | ordinary | 24p |
| | shares | deferred |
| | | shares |
+------------------------------+----------------+-------------+
| | | |
+------------------------------+----------------+-------------+
| As at 1 July 2008 | 32,160,407 | 21,031,837 |
+------------------------------+----------------+-------------+
| Shares issued in year at 1p | 200,000,000 | - |
| per share | | |
+------------------------------+----------------+-------------+
| | ___________ | ___________ |
+------------------------------+----------------+-------------+
| | | |
+------------------------------+----------------+-------------+
| As at 31 December 2009 | 232,160,407 | 21,031,837 |
+------------------------------+----------------+-------------+
| | ___________ | ___________ |
+------------------------------+----------------+-------------+
| | | |
+------------------------------+----------------+-------------+
The details of share warrants outstanding at 31 December 2009 are as follows:
+-----------------------------------------------+-------------+
| | Number of |
| | warrants |
+-----------------------------------------------+-------------+
| | |
+-----------------------------------------------+-------------+
| At 1 July 2008 | 577,018 |
+-----------------------------------------------+-------------+
| Expired during the period (on 18 April 2009) | (200,000) |
+-----------------------------------------------+-------------+
| | ___________ |
+-----------------------------------------------+-------------+
| | |
+-----------------------------------------------+-------------+
| At 31 December 2009 | 377,018 |
+-----------------------------------------------+-------------+
| | ___________ |
+-----------------------------------------------+-------------+
By Ordinary resolution passed on 15 January 2009 the Company increased its
Authorised Share Capital by the creation of 1,150,000,000 new Ordinary shares of
1p each.
On 8 August 2007, the Company issued 377,018 warrants to VSA Resources Limited
("VSA") being 8% of GBP1,192,500 raised on placing the Company's new Ordinary
Shares on 18 January 2007.
These warrants are exercisable at 25p each at
any time between 8 August 2007 and 8 August 2010. These warrants have been
valued at $190,800 and were debited in that year to the Company's share premium
account as a cost of issuing shares.
The Company's share price ranged between 5.38p and 2.31p during the period. The
closing share price as at 31 December 2009 was 2.30p per share.
18. Minority interests
+--------------------------------------------+-------------+-------------+
| | Group | Group |
+--------------------------------------------+-------------+-------------+
| | 31.12.2009 | 30.06.2008 |
+--------------------------------------------+-------------+-------------+
| | $ | $ |
+--------------------------------------------+-------------+-------------+
| | | |
+--------------------------------------------+-------------+-------------+
| Called up share capital | 4,000,000 | 1,350,288 |
+--------------------------------------------+-------------+-------------+
| Accumulated losses | (1,109,689) | (573,134) |
+--------------------------------------------+-------------+-------------+
| Translation reserve | - | 12,686 |
+--------------------------------------------+-------------+-------------+
| Prior year adjustment | - | (268,568) |
+--------------------------------------------+-------------+-------------+
| | ___________ | ___________ |
+--------------------------------------------+-------------+-------------+
| | | |
+--------------------------------------------+-------------+-------------+
| | 2,890,311 | 521,272 |
+--------------------------------------------+-------------+-------------+
| | ___________ | ___________ |
+--------------------------------------------+-------------+-------------+
| | | |
+--------------------------------------------+-------------+-------------+
The minority interests at 31 December 2009 represent a 49% holding by Alange
(formerly Prospero) in Las Quinchas Resource Corporation.
19. Financial instruments
Interest rate risk
At 31 December 2009 the Group had US Dollar cash of $896,034, and Pound Sterling
cash deposits of GBP829,237. The Company's exposure to interest rate risk,
which is the risk that a financial instrument's value will fluctuate as a result
of changes in market interest rates on classes of financial assets and financial
liabilities, was as follows:
+--------------+-------------+--------------+-------------+--------------+
| | 31.12.2009 | 30.06.2008 |
+--------------+----------------------------+----------------------------+
| | Floating | Non-Interest | Floating | Non-Interest |
| | interest | Bearing | interest | Bearing |
| | rate | | rate | |
+--------------+-------------+--------------+-------------+--------------+
| | $ | $ | $ | $ |
+--------------+-------------+--------------+-------------+--------------+
| Financial | | | | |
| assets: | | | | |
+--------------+-------------+--------------+-------------+--------------+
| Cash at bank | 2,216,678 | - | 31,424 | - |
+--------------+-------------+--------------+-------------+--------------+
| | ___________ | ___________ | ___________ | ___________ |
+--------------+-------------+--------------+-------------+--------------+
| | | | | |
+--------------+-------------+--------------+-------------+--------------+
Financial liabilities
At 31 December 2009, the Group had a non-recourse loan of $4,274,000 as shown in
note 15 above.
Net fair value
The net fair value of financial assets and financial liabilities approximates to
their carrying amount as disclosed in the balance sheet and in the related
notes.
Financial risk management
The Directors recognise that this is an area in which they may need to develop
specific policies should the Group become exposed to further financial risks as
the business develops.
Capital risk management
The Group considers capital to be its equity reserves. At the current stage of
the Group's life cycle, the Group's objective in managing its capital is to
ensure funds raised meet the exploration expenditure commitments. The Group
ensures it is meeting its objectives by reviewing its KPIs to ensure its
exploration activities are progressing in line with expectations, controlling
costs and placing unused funds on deposit to conserve resources and increase
returns on surplus cash held.
20. Future exploration expenditure
The Group has no contractual future exploration expenditure commitments and
awaits the technical review of its operations in Colombia before making future
commitments.
21. Related party transactions and compensation of key management
personnel
Key management of the Group are considered to be the Directors of the Company.
There are no transactions with the Directors other than their remuneration and
interests in shares and share options.
The remuneration of Directors is set out below in aggregate for each of the
categories specified in IAS 24 'Related Party Disclosures'. Further information
about the remuneration of individual Directors is shown in the Directors' Report
and note 10.
+--------------------------------------+-------------+-------------+
| | Period | Year ended |
| | ended | 30.06.2008 |
| | 31.12.2009 | |
+--------------------------------------+-------------+-------------+
| | $ | $ |
+--------------------------------------+-------------+-------------+
| | | |
+--------------------------------------+-------------+-------------+
| Short-term employee benefits | 411,899 | 580,000 |
+--------------------------------------+-------------+-------------+
| Termination benefits | 48,144 | - |
+--------------------------------------+-------------+-------------+
| Post-employment benefits | 30,491 | 214,480 |
+--------------------------------------+-------------+-------------+
| | ___________ | ___________ |
+--------------------------------------+-------------+-------------+
| | | |
+--------------------------------------+-------------+-------------+
| | 490,534 | 794,480 |
+--------------------------------------+-------------+-------------+
| | ___________ | ___________ |
+--------------------------------------+-------------+-------------+
| | | |
+--------------------------------------+-------------+-------------+
22. Control
The Group is controlled by Cetus Investment Resources Inc which owns 86.15% of
the Company. Cetus Investment Resources Inc is a wholly-owned subsidiary of
Zaver Petroleum International Inc which is itself a wholly-owned subsidiary of
United Paramount Holding Corp. Mr Hashwani is beneficially interested in the
entire issued share capital of United Paramount Holding Corp and is therefore
the ultimate controlling party.
23. Post balance sheet events
There have been no significant events after the balance sheet date that require
disclosure.
24. Other
The financial information in this announcement has been derived from the
Company's statutory accounts for the 18 months ended 31 December 2009, which
were approved by the Directors on 20 April 2010 and on which the auditors have
given an unqualified opinion. The financial information set out in this
announcement does not constitute statutory accounts. Statutory accounts for the
18 months ended 31 December 2009 will be delivered to the Registrar of Companies
in accordance with the Companies Act. The financial information for the year
ended 30 June 2008 is derived from the Company's statutory accounts, which have
been delivered to the Registrar of Companies and on which the auditors gave an
unqualified opinion.
ENDS
This information is provided by RNS
The company news service from the London Stock Exchange
END
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