Challenger Energy Group PLC Annual Report and Financial Statements (9830M)

TIDMCEG

RNS Number : 9830M

Challenger Energy Group PLC

27 September 2021

27 September 2021

Challenger Energy Group PLC

("Challenger Energy" or the "Company")

Annual Report and Financial Statements for the year ended 31 December 2020

Challenger Energy (AIM: CEG), the Caribbean and Atlantic margin focused oil and gas company, with production, appraisal, development, and exploration assets across the region, is pleased to announce its Final Results for the year ended 31 December 2020.

The Company's Annual Report will be posted to shareholders, along with the notice of AGM and proxy form, on Thursday 30th September 2021. The AGM is to be held on 25th October 2021 at Challenger Energy PLC, IOMA House, Hope Street, Douglas, Isle of Man, IM1 1AP.

The Financial Statements for the Year Ended 31 December 2020 and Annual Report, along with notice of AGM and proxy form, are now available on the Company's website https://www.cegplc.com/ .

For further information, please contact:

 
 Challenger Energy Group PLC              Tel: [phone] 
  Eytan Uliel, Chief Executive Officer     647 882 
 Strand Hanson Limited - Nomad            Tel: [phone] 
  Rory Murphy / James Spinney / Rob        3494 
  Patrick 
 Shore Capital Stockbrokers Limited       Tel: +44 (0) 207 
  - J oint Broker                          408 4090 
  Jerry Keen / Toby Gibbs 
 Investec Bank Plc - J oint Broker        Tel: +4 4 (0) 207 
  Chris Sim / Jarrett Silver               597 5970 
 Gneiss Energy - Financial Adviser        Tel: [phone] 
  Jon Fitzpatrick / Paul Weidman / Doug    9263 
  Rycroft 
 CAMARCO                                  Tel: [phone] 
  Billy Clegg / James Crothers / Hugo      4980 
  Liddy 
 

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014, which forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018.

Notes to Editors

Challenger Energy is a Caribbean and Atlantic margin focused oil and gas company, with a range of exploration, appraisal, development and production assets and licences, located onshore in Trinidad and Tobago, and Suriname, and offshore in the waters of The Bahamas and Uruguay. In Trinidad and Tobago, Challenger Energy has five (5) producing fields, two (2) appraisal / development projects and a prospective exploration portfolio in the South West Peninsula. In Suriname, Challenger Energy has on onshore appraisal / development project. Challenger Energy's exploration licence in each of Uruguay and The Bahamas are highly prospective, and offer high-impact value exposure within the overall portfolio value.

Challenger Energy is quoted on the AIM market of the London Stock Exchange.

https://www.cegplc.com

Challenger Energy Group

(formerly Bahamas Petroleum Company)

Annual Report and Financial Statements

For the year ended 31 December 2020

Highlights

Strategic

-- Since early 2020 the Company has pursued a strategy to broaden its asset base and diversify its risk profile such that the Company's future was not solely reliant on the outcome of exploration drilling in The Bahamas, albeit still highly leveraged to its outcome

-- In 2020, successful execution of that strategy saw the Company's business transform to become a full-cycle exploration and production company, centred on the Caribbean and the Atlantic margin

-- The Company's portfolio now consists of 14 assets in four countries that span the industry value chain from production to development, appraisal, and both infrastructure-led and high-impact frontier basin exploration

Production / Appraisal Operations

-- A focussed work program since August 2020, when the Company assumed control of its portfolio of mature producing Trinidadian oilfields, has enabled natural reservoir decline to be mitigated and increasing revenues achieved

-- The licence for the Goudron field in Trinidad was extended for 10 years in November 2020; work is underway in respect of extensions of the Innis-Trinity and South Erin fields (for 2022 and beyond)

-- The Saffron-2 appraisal well in Trinidad was planned during 2020 and subsequently drilled in July 2021 - the well is currently producing and has demonstrated the commercial viability of the Saffron project, with work underway in support of pursuing a development of the Saffron field in 2022

-- Planning, design and environmental approval of the Weg Naar Zee appraisal well and Extended Well Test in Suriname has been completed, with that project targeted to commence as soon as Covid-19 circumstances in Suriname allow

Exploration Activities

-- The Perseverance-1 exploration well was drilled offshore The Bahamas between December 2020 and February 2021 - the first exploration well in The Bahamas since the 1980s. Post well analysis has indicated the potential for a deeper Jurassic oil source, with activity now focussed on securing a farm-in partner and renewing licences for the next phase of activity

-- Following a competitive bid process, the Company was awarded the OFF-1 o shore block in Uruguay in May 2020, a 15,000 km(2) licence area with estimated exploration potential in excess of 1 billion barrels of oil recoverable

-- Work has continued throughout the period to better define the exploration potential of the Southwest Peninsula in Trinidad, including reprocessing of the regional 3D seismic grid - several prospects have been identified with an estimated aggregate of more than 200 million barrels of oil recoverable

HSES

-- In the context of significantly increased operational activity and the extreme operating challenges presented by the Covid-19 pandemic, a concerted effort has been made across the Company's operations to ensure "best in class" policies, procedures and performance in relation to Health, Safety, Environment and Security (HSES)

-- After extensive planning and preparation for the drilling campaign in The Bahamas, Perseverance-1 was drilled without any safety or environmental incidents

-- Extensive work was undertaken in late 2020 in pursuit of Safe to Work (STOW) accreditation in Trinidad, which was recommended in January 2021 and approved in August 2021 for a two-year period

Chairman's Letter to the Shareholders

Dear Shareholders,

Over the last 18 months, the Covid-19 pandemic has dramatically altered the global operating environment for all businesses. At the same time, there were a number of significant developments at our Company. These are discussed in further detail in the Chief Executive Officer's report and in the balance of this annual report document. To provide context, however, I wish to offer some comments in terms of three main themes applicable to Challenger Energy's business in the period under review: strategy, focus on HSES, and shareholder value outcomes.

Strategy

At the start of 2020, this Company had a single business focus: a group of four geographically and commercially co-joined exploration licences, located in the southern territorial waters of The Bahamas, with an obligation to drill an initial exploration well prior to the end of 2020. After more than ten years of preparatory work, the Company had entered 2020 in an advanced state of preparation for the drilling of this well, named Perseverance-1. At that time, drilling was scheduled to commence in April 2020. Thus, at the start of 2020, all activities in the Company were focussed in support of this sole objective.

Plans were materially disrupted by the outbreak of the global Covid-19 pandemic in the beginning of 2020. Seemingly overnight, many countries became subject to extensive lockdowns, and international movements of people and resources became difficult, if not impossible. In our industry, this was compounded by a dramatic collapse in oil prices, such that many projects were either delayed or mothballed. Challenger Energy was in a similar position to its industry peers, and once confronted with the full scale of the unprecedented Covid-19 crisis it was soon realised that safe and uninterrupted drilling operations in April 2020 could not be assured. Reluctantly, management decided the best course of action was to defer the drilling of Perseverance-1 to the end of 2020, after the domestic hurricane season and allowing additional time for appropriate planning and preparation once the impacts of the pandemic would be better known.

In the following months, during what could perhaps be described as a period of extended industry "inactivity" occasioned by the pandemic, the Board and management undertook a review of prevailing conditions in the oil and gas exploration sector. Collectively, it was concluded that a business model based on a single-project, high-impact exploration outcome in a frontier location was unlikely to be sustainable in a world being fundamentally - and rapidly - reshaped.

It was determined that a shift in strategy was necessary and eminently possible. Given the prevailing state of the industry, Challenger Energy could broaden from being a single-asset business into a full-cycle exploration and production company centred on the Caribbean and the Atlantic margin. This would complement high-impact exploration with active oil production and thus cashflow. The objective the Board set for management was thus to work toward assembling a diverse portfolio of assets, in multiple jurisdictions, and with a spread of operational activity across the industry spectrum - from production and development to appraisal and exploration.

In terms of execution of this strategy, through the course of 2020 there were two notable developments. In June 2020 the Company was successful in its application and was awarded a high-impact exploration licence offshore Uruguay. Also in June 2020 a transaction whereby the Company would acquire 100% of Columbus Energy Resources PLC (Columbus) was announced. Columbus owned and operated a range of complementary oil assets in Trinidad and Tobago, and Suriname.

That latter transaction completed in August 2020, such that in the space of approximately six months, the Company had been transformed. From being a company with one high-impact project in one country at the start of 2020, the Company exited 2020 with 14 projects in four countries. Detail of this enlarged portfolio of assets is set out further on page 11 of the annual report.

In the process, the risk profile of the Company was likewise transformed, from being 100% exposed to the outcome of a single offshore exploration well in The Bahamas, to having a broad portfolio of assets, including active oil fields in production. So, whilst remaining heavily leveraged to the success of the exploration drill bit, the strategic transformation during 2020 meant that any exploration downside was somewhat mitigated.

HSES

It should go without saying that first and foremost in any oil industry operation is the objective to ensure that work is carried out safely, without incident, and without causing any harm to people or the environment - an objective that in 2020 became all the more acute given the impacts of the pandemic.

Moreover, the impending drilling of Perseverance-1 coupled with the integration of an active production business meant that in 2020 the responsibilities of the Board and management transitioned quickly from being a small team of eight full-time personnel, focussed entirely on exploration activities in The Bahamas, to being an international business with an operating staff base of over 80 and about 40 retained consultants. Operations through 2020 expanded considerably, to encompass not only exploration and appraisal programs in several jurisdictions, but also managing active production from multiple producing oil fields, operating the drilling of a large, complex offshore well in The Bahamas, and preparing for onshore drilling activities elsewhere in the portfolio.

With this substantial increase in operational activity came a commensurately increased assurance process based around an intense focus on all aspects of HSES. Accordingly, through the course of 2020, everyone at Challenger Energy worked diligently to embed new HSES processes, protocols and procedures across the expanded group. The objective was clear: to place HSES outcomes at the centre of every aspect of Challenger Energy's collective endeavours. I am thus pleased to be able to report that there has been a consistent level of performance upgrade across all key HSES metrics.

The Company has also committed to establishing a formal Environment, Social and Governance (ESG) sustainability framework, comprising a clear ESG strategy and associated goals along with regular tracking of performance against those goals. We expect to begin rolling this out across the Company in 2022.

Shareholder Value Outcomes

Over the course of the last 18 months, our business has been supported by a carefully executed funding strategy, including private institutional placings, an open offer to our existing shareholders, and various convertible debt facilities. I would like to thank our shareholders and financiers for their continued support, as well as our directors, management and staff who have participated materially in these funding initiatives alongside shareholders, in support of our common goals.

I feel it would be remiss of me if I did not at this point address "the elephant in the room". That is, since the results of Perseverance-1 became known in February 2021, the Company's share price has declined markedly, and despite a lot of hard work by everyone in the Company there has not yet been the kind of operating success elsewhere in the portfolio required to offset that decline. In this regard, I make several observations.

Firstly, the Company had a clear obligation to shareholders and the Government of The Bahamas to drill Perserverance-1 within a defined time period. This obligation was met, and drilling was carried out safely and responsibly, despite the compounding uncertainties and unprecedented operating disruptions caused by the global pandemic, a last-minute legal challenge from environmental activists, mixed public messaging from Government authorities, and an unprecedented collapse in global oil prices. Individually, each of these impacts would have severely challenged companies with much larger resources, and it is thus a testament to the tenacity of the management team that drilling was nonetheless able to proceed. Collectively, however, these impacts meant that as we approached the start of drilling, the Company's access to funding became materially constrained. This resulted in some last-minute funding decisions that could not be avoided in the circumstances so as to ensure continued operations. Whilst necessary, these decisions were unpopular with some shareholders, and were certainly a divergence from our longstanding funding strategy to that point.

Secondly, there is nothing that anyone could have done to change the eventual drilling outcome of Perseverance-1. After ten years in the making, when the well was finally drilled the rocks encountered did not yield a commercial discovery at the drill location. Given this technical outcome, nothing would have prevented a significant decline in share price following - just as a significant increase in share price would have inevitably followed had the drilling result been an unmitigated commercial success. In the end, this is the risk-reward equation that any investor in an exploration focussed oil and gas company assumes.

Thirdly, for many years, Board and executive remuneration was heavily aligned toward the outcome of Perseverance-1. Many of us have invested substantially in the Company, becoming sizeable shareholders in our own right and/or by having foregone remuneration. Board and management have thus all shared very directly in the poor financial outcome flowing from the result of the well.

Which brings me to my final observation on this subject: we're still here. Without the strategic shift to become an expanded portfolio business initiated in early 2020, and had the Company not succeeded through the course of 2020 in executing on this strategy, the result of Perseverance-1 would unequivocally have meant the end of this Company. Instead, shareholders continue to have a business, and there remain multiple opportunities to restore shareholder value. More than that, everyone who works at Challenger Energy is motivated and incentivised to do so. So, whilst it will of course take time and effort to rebuild, and whilst there are no guarantees in any business, your Company has good assets, an experienced and deeply committed team, and a proven capacity to stick with it and get things done, even in the most trying of circumstances.

Looking Forward

Overall, the last 18 months has been a time of considerable activity at Challenger Energy, with many of the Company's operational objectives achieved, despite some unprecedented challenges. The financial reward for this effort has not been realised given the technical outcomes, but our team has worked diligently and tirelessly throughout the period. I would like to thank everyone at Challenger Energy for their hard work and commitment to the tasks at hand.

I would especially like to thank Mr Simon Potter, our CEO for the last ten years, who in May 2021 stepped back from daily executive duties. Without Simon's leadership over the past decade, we would not have accomplished the various milestones of the last year, and I am delighted he will continue to support the business as a non-executive director going forward. Mr Eytan Uliel, who has been our Chief Commercial Officer for many years, has taken over as the CEO. Eytan brings not only continuity but also fresh perspective to the Board and I look forward to working with him in the years ahead. I would also like to thank Adrian Collins and Ross McDonald, both of whom have retired from the Board in recent months, for their support over the years.

Looking to the future, your Board remains focussed on delivering the various opportunities across Challenger Energy's expanded portfolio. I look forward to reporting further to you on our progress in the year ahead.

Bill Schrader

Chairman

24 September 2021

Chief Executive Officer's Report to the Shareholders

Dear Shareholders,

This is my first report to you, the owners of the Company, in my capacity as Chief Executive Officer, having assumed that position in May 2021.

Strictly speaking, this annual report covers the 2020 financial year period (that is, from January to December 2020, before I became CEO). Timing for reporting for the 2020 year has, however, been delayed longer than usual owing to the Covid-19 pandemic, and many of the more significant milestone events for our Company, whilst a direct outcome of work undertaken during 2020, actually occurred in the first half of 2021 and subsequent. In general, therefore, I will speak in this report to the period from the start of 2020 until the middle of 2021.

Perseverance-1 in The Bahamas

Without question, drilling of Perseverance-1 in The Bahamas was a key event in the history of this Company. Drilling commenced on 20 December 2020, and was subsequently completed in February 2021, after having been delayed from the targeted start in April 2020 because of the outbreak of the pandemic. Long-standing shareholders will be well aware, however, that this drilling campaign represented the culmination of more than a decade of work: from the initial award of the licences in The Bahamas in 2007, to the acquisition of 3D seismic in 2011, to an extensive amount of data acquisition and technical work spanning many years, and finally the drilling - the first such well to be drilled in The Bahamas since the 1980s.

We all know the Perseverance-1 well result - drilling did not result in a commercial discovery at the Perseverance-1 location. That is part of life in the oil and gas exploration business: no matter how much high-quality technical work precedes drilling, you do not know what resource lies beneath until the well is down.

That said, there are many aspects of the drilling campaign which everyone associated with Challenger Energy should be proud of. In particular, we did what we said we would do. Despite many challenges and numerous setbacks along the way, we eventually drilled the well, thus meeting our core objective of testing the structures at the chosen drilling location.

To do this, we had to work effectively through several changes of Government in The Bahamas. We had to secure the finance needed for the drill, a task most commentators thought was beyond our grasp. We had to recruit an experienced drilling team, and we had to operate a complex offshore drilling program more typically the province of much larger companies. Along the way we built up and deployed the capacity necessary to execute the well, which included bringing together a contractor group made up of some of the world's most respected service companies - familiar names like Stena, Halliburton and, Schlumberger. And, we saw off a legal challenge from environmental activists that was launched at the very last minute in a cynical effort to halt our legitimate business operations.

More than that: we successfully conducted operations during a pandemic. The safe drilling of any offshore exploration well is always a technical challenge, but to do so during a global pandemic necessitated complex logistical planning, and the fact that we were able to drill for approximately seven weeks without an outbreak of infection on the rig is a reflection of the rigorous systems and procedures employed. In so doing, we fulfilled our commitments to the Government of The Bahamas and its people, through operating the drilling program responsibly, and without any incidents.

Looking forward in The Bahamas, it is worth noting that whilst Perseverance-1 may not have resulted in the commercial discovery we hoped for, a substantial amount of data and learning has been obtained from the drill. We are still integrating all of this information, but it provides encouraging support for the possibility of a deeper Jurassic oil play.

As I have observed in other forums, we had hoped for 'instant gratification' with Perseverance-1, which was not the case. However, it is important to remember that in our industry several exploration wells are often required before the potential of a frontier basin is unlocked, and based on what we have learned from Perseverance-1, we continue to believe that our licences in The Bahamas are prospective. We have thus shifted our focus to the future of this project: (i) renewing the licences into a third, three-year exploration period, and (ii) securing a partner - ideally a large industry player - to provide expertise and capital for the next phase of activity. I look forward to updating shareholders on our progress in this regard.

Production Operations in Trinidad & Tobago

In August 2020 we completed the acquisition of Columbus, creating a new and enlarged organisation with operations spanning across the Caribbean and Atlantic Margin region. As is noted by the Chairman in his letter to shareholders, the logic of this strategic transformation was simple: to expand the Company from being a single asset company in The Bahamas to a more diversified business, with risk and reward potential spread across multiple projects in various locations and at differing stages of the industry value chain.

On assuming control of the Columbus assets in August 2020, we found a business that was showing the effects of being cash-starved for a very long time under previous management. This was manifest in terms of low field activity levels, poor morale amongst staff - many of whom had been suspended or put on half pay at the start of the Covid-19 pandemic, inadequate policies and procedures, poor record keeping, local suppliers who had not been paid for some time and a business reputation in-country that was suffering.

Therefore, through the last quarter of 2020 and into 2021, we began an intensive program of work designed to "right the ship". At its core, we were (and still are) guided by a simple objective: to sustain and increase production, to manage costs tightly, and to thereby grow cashflow from the Trinidadian operations.

Some successes worth noting: we substantially increased field activity, with workover frequency rate increasing by 20% under our management. We also implemented a roster of preventative well maintenance work to maximise well uptime, initiated an automation trial, installed new pumps on a number of wells, perforated additional zones in several wells, and carried out a number of heavy workovers including perforation washes on high producing wells, all with the objective of optimising well performance and sustaining / adding to production.

Alongside this increased level of field activity, we undertook a comprehensive review of all assets, and restructured the Trinidadian organisation so as to drive cost efficiencies and allow for more effective work across the portfolio. We focussed on restoring morale within our staff base, and we began a process to restore confidence with local suppliers, regulators and communities.

It has been hard work, and there have been ups and downs - all the more so given the ongoing effects of Covid-19 in Trinidad, and in particular the extreme difficulty of getting into the country. But we are now beginning to see the fruits of our labour. Notably, we have stemmed the rate of production decline in the producing fields, and have been successful in a core objective of maintaining baseline production in the range of 400 - 450 barrels of oil per day. A rising oil price environment, coupled with cost savings measures we have put in place, means that we have now been able to reach a point where the operations in Trinidad & Tobago are largely self-funding. In 2022, we expect to be able to continue along this trajectory, and generate $2 million or more of positive operating cashflow from our existing production operations. This would represent a fairly significant "turnaround" in a relatively short period of time, and is an achievement for which our team in Trinidad should be rightfully proud.

Beyond this, each and every day we continue to look for ways to drive further growth in production which, given our largely fixed cost base in-country, would flow straight to the bottom line. Indeed, at times during the last 18 months production has gone as high as 500 barrels of oil per day, but then we have not been able to be sustain it at that level for the long term: wells go offline, power supplies get disrupted in inclement weather, and so on.

Our objective for 2022 is thus to crack that particular nut: how can we add 100 barrels or more per day of production from existing fields on a sustainable basis and increase cashflow even further? This will inevitably require some trial and error as we continue in our work to maintain and optimise field performance alongside remediation activities, but we are confident we will get there. We also hope that in 2022 the various Enhanced Oil Recovery (EOR) initiatives that have been tested and trialled through 2020 and into 2021 might ultimately provide some incremental production, too.

Appraisal and Exploration Activities

Apart from Perseverance-1 in The Bahamas and the focus on production activities in Trinidad and Tobago, during 2020 and then into 2021 we continued to progress appraisal and exploration activities across the broader business. Three items are worthy of particular note.

Saffron-2 appraisal onshore Trinidad: The Saffron-1 discovery well, drilled by our predecessor in late 2019 at the Bonasse licence in the Southwest Peninsula of Trinidad, had discovered oil in the Middle and Lower Cruse reservoir horizons. However, that well had been beset by various issues during the drilling campaign, such that no production testing of the Lower Cruse reservoirs had been possible. On assuming control of the asset, we analysed the data collected from the Saffron-1 well, and used that analysis to inform a well design and commence detailed well planning for a second Saffron well. Following that work and after receiving approvals from the Ministry, the Saffron-2 appraisal well, our first operated drilling onshore Trinidad, was successfully drilled to TD of 4567 ft in June and July 2021. Saffron-2 encountered multiple oil-bearing horizons in the Upper Cruse, Middle Cruse and Lower Cruse reservoir zones. Subsequent production tests have proved the ability to flow high-quality oil from the Lower Cruse reservoirs, although sustained production from these reservoir units has not yet been achieved due to technical and mechanical issues encountered in this zone - we are working on engineering solutions. On the other hand, the Middle Cruse reservoir sections are producing, and have thus far demonstrated what we consider could be an economic level of production, with work being progressed to see if we can increase production further. The oil produced at Saffron-2 is already being sold, and the immediate plan is to maximise production revenues from the well, bring on additional production from the as yet unperforated Upper Cruse zone, and revisit our thoughts around a potential development (and funding for that). We would like to see a Saffron development get underway in H1 2022.

Weg Naar Zee (WNZ) appraisal onshore Suriname: WNZ is a large block (approx. 900 km(2)) onshore Suriname, in a proven hydrocarbon province with 70 historic wells and 2D seismic coverage. Up to 24 MMbbls STOIIP (15deg API) has been identified in eight pools on the block, and an initial well followed by an Extended Well Test (EWT) has been designed to appraise the producibility of the resource, and to assess whether the asset is suitable for application of enhanced oil recovery techniques used by Challenger Energy in Trinidad. To date, approval to proceed with the planned drilling program has been received from Staatsolie (our PSC partner and Surinamese state-owned oil and gas company and regulator) and NIMOS (the Surinamese environmental regulator). Various preparatory work streams have been completed including the well site being identified, land lease being secured and equipment and service providers having been engaged. We are thus ready to proceed with drilling of a first WNZ appraisal well, albeit operational challenges arising from the Covid-19 situation in Suriname have resulted in the decision to delay the projected well spud date - ideally, we would like to see this project get underway in late 2021 or early 2022.

OFF-1 in Uruguay: As noted, in June 2020 we were awarded the OFF-1 licence block offshore Uruguay. This acreage, which holds an estimated resource potential of up to 1 billion barrels of oil, provides an exciting addition to the broader portfolio. The licence is for an initial 4-year period during which the Company is obliged to undertake geological and geophysical studies to define prospects and resource potential. This work will be carried out internally on a low-cost basis. Formal execution of the licence by the Uruguayan government has been delayed due to the impacts of Covid-19 in Uruguay - we will commence work as soon as that process is complete. Interestingly, two wells are planned by majors in Namibia toward the end of 2021 on the conjugate margin of our asset in Uruguay. We will thus be watching the outcome of that drilling with keen interest.

HSES

Challenger Energy is committed to providing a healthy, safe and secure workplace for all employees, consultants, contractors, service providers and visitors, across all facets of our operations. We believe strongly that pursuit of our commercial objectives should never be at the expense of harm to people or the environment. Moreover, the change during 2020 to the Company's portfolio mix and significant resultant increase in operational activity, alongside the expanding impacts of the Covid-19 pandemic, meant that clear focus and leadership in relation to HSES became mission critical.

In response, over the past 18 months we have made it an unambiguous priority to embed HSES awareness into every aspect of our business, to accurately track our performance, and to implement learnings from that tracking to ensure accountability to the highest international standards. As an absolute minimum, the Company seeks to comply with all applicable laws and regulations in the countries in which it operates but, where the Company has adopted stricter codes of practice in relation to any aspects of HSES management, then these higher standards are applied.

Some notable achievements: as already mentioned, drilling activities - both offshore in The Bahamas and onshore in Trinidad - were undertaken safely and without incident. Across our active operations, we have seen improving trends in relation to key HSES statistics, such as a marked drop in motor vehicle incident frequency. Over the past 18 months we have also placed an emphasis on staff training, and we have put in place systems to ensure that our contractors also meet all necessary standards - the result has been a heightened awareness of risk evident across the business. Safe-to-Work (STOW) Accreditation - an essential part of the social licence to operate in Trinidad and Tobago - has been achieved, and a substantial body of work has been conducted by our HSES team to review and then update an extensive range of policies, procedures and management systems applicable to all aspects of the Company's operations. These are now being regularly re-examined to ensure currency, relevance and applicability. Overall, shareholders should be pleased with the HSES track record the team has established and is working diligently to maintain. Further details are set out on page 17 of the annual report.

Corporate and Financial Review

In terms of finances, 2020 was dominated by the need to secure the funds needed to drill the Perseverance-1 well. With the expansion of the business to include active operations in Trinidad and Tobago and Suriname, the need for funding increased commensurately.

Accordingly, through the course of 2020 and then into 2021, we implemented a broad funding strategy designed to ensure we would be able to meet our funding needs as and when they have been required. This included two open offers with existing shareholders, multiple institutional placings, drawdown of funds from two independent convertible note facilities, and the sponsorship of a Bahamian domiciled mutual fund. In the process, we raised in the order of $60 million in support of the Company's various project initiatives - a credit to the efforts of our team and the support of our investors.

On completion of the transaction with Columbus, we also for the first time began to receive revenues from oil production and sales. This was a relatively small amount in 2020, given that we only accounted for five months of income, production was falling when we assumed control of the Columbus assets, and oil prices were low. But in the life of any oil company the time at which you begin to generate income is a significant milestone. As mentioned, we have focussed throughout 2021 on maximising that income, reducing costs, and benefitting from rising oil prices, with a view to 2022 being the year in which we begin to see surplus cashflows from production in Trinidad.

In terms of overhead and general operating expenses, these increased significantly through the course of 2020, a necessary consequence of gearing up for offshore drilling operations in The Bahamas plus the addition of active operations in other jurisdictions. However, following completion of drilling of the Perseverance-1 well in The Bahamas, we have taken immediate steps to reverse that trend, by reducing our operating footprint, reducing our staff base, and reducing our general costs wherever possible. I can report that as compared to the "peak" in February 2021, overhead costs are now down by approximately 40%, and there remains work to be done which we expect can reduce overhead even further.

2022 and beyond

As we turn our eye to the next chapter of this Company's story, I can assure shareholders of one thing: all of us who work at Challenger Energy are committed to delivering, and we will give 100% at all times.

Success in 2022 will involve achieving sustainable production growth from our portfolio, and hence increasing free cashflow. It will also require us to have success with the drill bit, so as to grow our reserves and production capacity over time. We will also need to continue to manage our costs tightly, and be smart in how we leverage our position in the industry. And in the longer-term, we remain determined to deliver value from The Bahamas and new business initiatives, like Uruguay.

I hope that 2022 marks the first steps in restoring value in this Company, and I look forward to updating shareholders regularly as to continued progress on that journey.

Eytan Uliel

Chief Executive Officer

24 September 2021

Company Report

Business Overview

Challenger Energy's business comprises a portfolio of oil and gas assets - 14 licences across four countries, at varying stages of the industry life cycle from exploration through to appraisal and production. These include ve producing oil elds onshore Trinidad and Tobago, an appraisal project onshore Suriname, a substantial exploration acreage position in the Southwest Peninsula of Trinidad, and two high impact exploration projects - one each in The Bahamas and Uruguay.

 
   Trinidad and Tobago 
     *    7 licences (100%), 1 licence (83.8%) - all onshore, 
          close to sales infrastructure 
 
 
     *    400 - 450 bopd baseline production from five fields, 
          with considerable existing well stock (approximately 
          250 wells of which approximately 80 are in production 
          at any time) 
 
 
     *    2P Reserves of 1.3MMbbls; 2C Resources of 6.4MMbbls 
 
 
     *    Production enhancement opportunities from workovers, 
          reactivations & new pumps accessing shallow 
          reservoirs 
 
 
     *    Opportunity for enhanced sweep efficiency and 
          increased recovery factor via enhanced oil recovery 
          techniques and in-fill wells 
 
 
     *    Discovery at Saffron, with Saffron-2 appraisal well 
          validating commercial potential - current work 
          focussed on defining a development plan 
 
 
     *    Low-cost development options across portfolio 
   Suriname 
     *    1 onshore licence - Weg Naar Zee PSC (100%), 900 km 
          (2) 
 
 
     *    2C Resources of 1.1MMbbls; 3C Resources of 3.5 MMbbls 
          (24 MMbbls STOIIP) 
 
 
     *    Drill ready, with well to be followed by Extended 
          Well Test (EWT) -realised production can be sold; EWT 
          success leads to early, low-cost development and 
          reserves additions 
   Uruguay 
     *    1 offshore licence - OFF-1 (100%); 15,000 km (2) 
 
 
     *    Work by the state-owned authority ANCAP has 
          identified one of the prospects on the block 
          (Lenteja) alone has an estimated resource potential 
          of 1.4 billion barrels of oil 
 
 
     *    Low-cost initial 4-year exploration period, 
          commencing on formal licence signing 
   The Bahamas 
     *    4 licences (100%), all offshore 
 
 
     *    Recently drilled Perseverance-1 well evaluated the 

          potential Albian and Aptian reservoirs of the B North 
          segment of the B structure - the well did not result 
          in a commercial discovery at the drilling location; 
          post well analysis indicates potential for a deeper 
          Jurassic play 
 
 
     *    Licence renewal for a third 3-year exploration period 
          in process; renewed farmout process commenced in 
          parallel - 'Drill or Drop' by 2024 
 
 
 
    People and Assets 
     *    80 staff globally, majority in Trinidad and Tobago 
 
 
     *    2 owned and operated rigs in Trinidad and Tobago to 
          support production and maintenance activities 
 

Assets Summary

Trinidad and Tobago

The Company has five producing fields onshore Trinidad comprising some 250 wells, of which approximately 80 wells are in production at any given time. In addition, the Company has an appraisal project in the Southwest Peninsula ("SWP") of Trinidad (Saffron project) and has identified several other exploration prospects in the same area.

Goudron Field

The Company owns 100% of the Goudron field by way of an enhanced production service contract (EPSC) with Heritage Petroleum Company Limited, the Trinidadian state-owned oil and gas company. The EPSC was renewed in November 2020 for a 10-year term. The Goudron Field produces light sweet oil with an average API gravity of 37 degrees. The Company is progressing enhanced oil recovery programs at Goudron to support increased production, for example by undertaking a water injection pilot project focussed on re-pressuring reservoir units (subject to necessary approvals). Additionally, regular well workover operations are undertaken on the existing production well stock, including well stimulation operations, reperforations, and repairs to shut-in wells, as and when appropriate.

Inniss-Trinity Field

The Company owns 100% of the Inniss-Trinity field by way of an incremental production service contract (IPSC) with Heritage Petroleum Company Limited. The IPSC is due for renewal at the end of December 2021 and the Company is currently undertaking the process necessary for a renewal of that licence. As part of the Inniss-Trinity IPSC, a CO(2) enhanced oil recovery pilot project was undertaken during 2020 and 2021 to establish the potential for increasing field production and with a view to assessing the applicability of the technique for other onshore opportunities. Regular well workover operations are undertaken on the existing production well stock and repairs to shut-in wells, as and when appropriate. In addition, the Company has identified a number of drill-ready compartments on the licence area which will be assessed in the context of other in-field drilling opportunities across the portfolio.

South Erin Field

The Company owns 100% of the South Erin field by way of a farm-out agreement with Heritage Petroleum Company Limited. The farm-out agreement is due for renewal at the end of December 2021 and the Company is currently undertaking the necessary process for such a renewal. Regular well workover operations are undertaken on the existing production well stock and repairs to shut-in wells, as and when appropriate. The Company has identified a number of drill-ready compartments on the licence which will be assessed in the context of other in-field drilling opportunities across the portfolio.

Southwest Peninsula (SWP)

The SWP contains the Bonasse and Icacos producing oilfields in which the Company holds a 100% interest via a number of private petroleum licences covering the Bonasse, Cedros and Icacos licence areas. Similar to the other fields, regular well workover operations are undertaken on the existing production well stock and repairs to shut-in wells, as and when appropriate. The Bonasse licence also includes Saffron prospect which is discussed further below.

Saffron Project

During 2021, the Company successfully drilled the Saffron-2 appraisal well to a depth of 4,567ft encountering Upper, Middle and Lower Cruse reservoirs. During production tests on the Lower Cruse formation pressures at surface of up to 1,400 psi were observed, oil was produced naturally to surface, and oil samples were collected and analysed (48deg API). However, sustained production could not be achieved due to the continual inflow of mobile non-reservoir formation materials (clay and shale influx into the wellbore). Subsequently these zones have been isolated, capable of being re-entered, remediated and produced in the future, as appropriate. Production tests of the Middle Cruse formation has seen sustained oil production (20deg API), with the well continuing to remain on production and produced oil being gathered and sold. The Company expects to be able to maintain production by optimising production parameters as flow rates become better understood, as well as by producing from a further 11ft of reservoir as yet unperforated in the Upper Cruse, to add to the production mix in due course. The Company is working to incorporate the results of the well into an optimal development plan for the Saffron project, as well as an update of the prospective and contingent resource estimates for both the Saffron location and other targets within the Company's SWP portfolio.

SWP Exploration

The large licence position in the Southwest Peninsula of Trinidad also represents the Company's main exploration acreage in Trinidad, with numerous prospects consisting of both stacked shallow and deeper reservoirs. The area is assessed internally by the Company as having recoverable resources amounting to approximately 230 MMbbls. In late 2020 the Company commissioned a reprocessing of the entire 3D seismic grid over the area, with that work completed in H1 2021. The results from this reprocessing work, along with existing data, are being used in support of ongoing work to select future exploration drill targets.

Cory Moruga Field

The Company owns 83.8% of the Cory Moruga licence and is the operator, alongside its partner Touchstone Exploration Inc. which holds a 16.2% non-operated interest. The Cory Moruga licence includes the Snowcap oil discovery, with oil having previously been produced on test from the Snowcap-1 and Snowcap-2ST wells. The Company is presently reviewing its options for the licence in line with other opportunities across the portfolio.

Suriname

Weg Naar Zee Project

The Company holds a 100% interest in a Production Sharing Contract (PSC) with Staatsolie Maatschappij Suriname N.V, the Suriname state-owned petroleum company (Staatsolie), for an onshore appraisal / development project contained in the Weg Naar Zee Block (WNZ). WNZ is a large block covering approx. 900 km(2) in a proven hydrocarbon province with 70 historic wells and 2D seismic coverage. Up to 24 MMbbls STOIIP (15deg API) has been identified in eight pools (of which around half is in a single pool) with the CPR assessing 2C resources of 1.1 MMbbls and 3C resources of 3.5 MMbbls.

An Extended Well Test (EWT) has been designed to appraise the producibility of the discovered resource in the WNZ block, and to assess whether the asset is suitable for application of enhanced oil recovery techniques used by the Company in Trinidad. To date, approval from Staatsolie to proceed with the planned drilling program has been received as has approval from NIMOS (the Surinamese environmental regulator). The proposed well site has been scouted, various in-country contractors and well equipment has been sourced, and rig tenders have been received from a number of suppliers. Commencement of the drilling and subsequent EWT has been delayed due to operating constraints arising from the Covid-19 situation in Suriname. Drilling is expected to commence as soon as Covid-19 circumstances in Suriname allow, but ideally prior to the end of 2021 / early 2022, and will target the largest of the undrained pools on the block (twinning with a historical production well).

The Bahamas

The Company is the holder of four cojoined exploration licences offshore The Bahamas. The Perseverance-1 exploration well was drilled in the licence area, from 20 December 2020 to 5 February 2021, at a location approximately 20 miles from the Bahamas-Cuba maritime border, in water depth of approximately 518 metres. Perseverance-1 represented the first exploration drilling in The Bahamas since the mid-1980s, and the first test of any prospect located in deeper waters off the shallower water carbonate banks. The well reached a depth of 3,905 metres, having intersected five Albian, Upper Aptian, and Mid-Aptian horizons of interest.

The Perseverance-1 well was drilled safely and without incident, with stringent Covid-19 management protocols operating effectively throughout the drilling campaign. Following completion of drilling operations, the well was plugged and secured in accordance with international and BSEE (Bureau of Safety and Environmental Enforcement) standards.

The well did not result in a commercial discovery at the drilling location, with the source quality and migration interpreted as being the primary reason for this non-commercial well outcome. Post-well petrophysical analysis of the well logs have, however, confirmed high quality reservoirs down to the base of the well with no significant deterioration in porosity with depth, indicating the potential for high deliverability reservoirs in the deeper underlying Jurassic formations.

The technical findings from Perseverance-1 thus support a forward program to include further biostratigraphic analysis, fluid inclusion analysis, and selective re-processing of 3D seismic to further educate sequence stratigraphy and seismo-facies of the deeper Jurassic horizons. This work will underpin an assessment of the merits of a further exploration well in the future, both to continue to assess Aptian horizon potential, whilst at the same time targeting the deeper Jurassic intervals. The Company has recommenced a farm-out process to seek a suitable partner for the next phase of activity in The Bahamas. In parallel, in March 2021 the Company notified the Government of The Bahamas of its intent to renew the licences into a third 3-year exploration period.

Uruguay

OFF-1 Block

In June 2020, following a competitive bid process, the Company was notified that it was the successful applicant for the OFF-1 offshore block in Uruguay covering approx. 15,000km(2) . Formal signing of the licence for the OFF-1 offshore block is presently awaiting presidential approval, which has been delayed due to the Covid-19 pandemic situation in Uruguay. The Company expects the formal licence award to be completed before the end of 2021 and will thereafter commence initial technical work in 2022.

In the interim, technical work undertaken independent of the Company by ANCAP, the Uruguayan oil and gas regulator, has sought to highlight exploration prospectivity across the licence area. This involves detailed mapping of several play types and prospects, notably the syn-rift play potential within the Company's OFF-1 block. The prospect and lead screening carried out by ANCAP includes the specific identification of the syn-rift Lenteja prospect with a P(50) estimated ultimate recovery volume (EUR) of 1.359 billion barrels and an upside case of several billion barrels recoverable, potentially accessible in shallow water depths of just 80 metres. This volume estimate aligns well with the earlier guidance provided by the Company of the potential within its OFF-1 licence area as being in excess of a billion barrels.

Reserves and Resources

In 2020, the Company commissioned an independent Competent Person's Report (CPR) from ERC Equipoise (ERCE). The scope of the report was to focus on reserves and resources across the Company's existing producing assets in Trinidad and Tobago, and the Company's Weg Naar Zee licence in Suriname. ERCE certi ed net 2P reserves of 1.29 MMbbls and net 2C contingent resources of 7.46 MMbbls across the portfolio of assets in Trinidad and Suriname, summarised as follows:

 
  Reserves (MMbbls)     1P     2P     3P 
  Total                 0.7    1.3    1.9 
 
 
  Contingent Resources (MMbbls)     1C     2C      3C 
  Total                             0.7    7.5    24.7 
 

Notes

1. Company Working Interest resources are based on the working interest share of the field gross resources and are prior to deduction of royalties. Challenger Energy hold a 100% interest in all relevant fields, being Goudron, Inniss-Trinity, South Erin, Icacos and Bonasse in Trinidad, and Weg naar Zee in Suriname.

2. The Contingent Resources are on unrisked basis and have not been risked for chance of development and are sub-classified as development unclarified.

3. Totals are added arithmetically which means statistically there is a greater than 90% chance of exceeding the total 1C and less than a 10% chance of exceeding the total 3C.

   4.   ERCE did not audit the SWP, including the Saffron project, as part of its CPR. 

2P reserves relate to known oil that is capable of being produced economically, and thus the 2P reserves as certified by ERCE relate solely to production capable of being generated from the Company's existing wells in existing fields. The 2P reserves do not assume any contribution from infill drilling and enhanced oil recovery projects. Moreover, apart from routine operating costs required to keep wells online, accessing this production potential does not require material amounts of incremental capital expenditure.

At oil prices ranging from US$50 to US$60 per barrel, it is estimated this level of 2P reserve represents US$65 million to US$75 million of gross cashflow potential to the Company, and a reserve base equivalent to a baseline production of 500 bopd for approximately 7 years.

The 2020 report commissioned by the Company did not include an assessment of the Saffron project, pending the drilling of the Saffron-2 well. With the Saffron-2 well complete, the Company intends to update its reserve and resource estimates accordingly.

2020: Significant Activities Review

Significant activities during the specific period January 2020 to December 2020 are summarised as follows (note that all shares issuance numbers quoted are before the 1 for 10 share consolidation which took effect on 28 May 2021):

-- On 14 February 2020, the initial offer period closed for a Bahamian domiciled mutual fund sponsored by the Company. This fund had been created to allow Bahamian resident investors to acquire an ownership interest in the Company. The initial offer period closed with $914,000 in subscriptions, giving rise to 35,337,328 shares being issued to the fund at 2 pence per share. Due to delays in securing final approval for the issuance of the shares by the Central Bank of The Bahamas (arising from the outbreak of the Covid-19 pandemic) final issuance of the shares to the Fund took place on 29 June 2020.

-- On 20 February 2020, the Company entered into a zero-coupon convertible loan facility with a Bahamian family office investor, for up to GBP8m in funding (gross of fees). An initial GBP2.7m was drawn down on entering into the facility with a further GBP2m drawn down on 17 March 2020, at which point the facility was expanded to up to GBP16 million in total (including amounts already drawn down at that date). Full settlement of amounts owing was made through the issuance of shares on 26 February 2020 - 48,000,000 shares, 3 April 2020 - 62,500,000 shares, and 1 May 2020 - 79,059,830. No amounts remain outstanding under this facility, and the facility has lapsed.

-- On 27 February 2020, the Company was granted Environmental Authority (EA) from the Government of The Bahamas for the drilling of the Perseverance-1 well. The EA consisted primarily of an Environmental Impact Assessment, Environmental Management Plan and Emergency Response Plan and formed a prerequisite to the commencement of the well, which at that time was scheduled to commence in March / April 2020.

-- On 25 March 2020, the Company announced that it had delayed the commencement of the Perseverance 1 well, following an assessment of the likely impact of the Covid-19 pandemic on the ability to conduct drilling. At the same time, the Company notified the Government of The Bahamas of force majeure under the terms of its licences. On 17 November 2020 the Company and Government of The Bahamas formally agreed the end of the force majeure provisions and an extension to the licences of 6 months, to 30 June 2021, was confirmed.

-- On 26 May 2020, the Company entered into a contract with Stena Drilling for the provision of an offshore drilling rig to undertake the drilling of Perseverance-1. The contract stipulated a deployment window of 15 December 2020 to 1 February 2021, with Stena notifying the Company on 25 September 2020 that the Stena IceMax rig would be provided on or about 15 December 2020.

-- On 9 June 2020, the Company was awarded the OFF-1 offshore exploration licence block in Uruguay. The licence covers an area of approximately 15,000 km(2) and is estimated to contain up to 1 billion barrels of prospective resources. The licence, once formally issued, will be for an initial term of 4 years with an initial work obligation during this period comprising of technical studies and seismic reinterpretation. Formal execution of the licence has been subject to continued delays due to the impacts of the Covid-19 pandemic in Uruguay.

-- On 11 June 2020 the Company launched an offer for 100% of the shares in Columbus Energy Resources PLC, an AIM quoted UK company holding production, appraisal and exploration assets onshore in Trinidad and Tobago and Suriname. On 24 July 2020 the Company's shareholders approved the transaction and on 27 July 2020 the transaction was approved by the shareholders of Columbus. On 7 August 2020 the transaction became legally effective. Following the completion of the acquisition of Columbus, shares were issued to a number of parties in settlement of the transaction and various supporting services as follows: (i) scheme shareholders of Columbus- 757,261,511; (ii) termination payments to Columbus management - 25,562,167; (iii) settlement of cancelled Columbus management options - 23,684,650; (iv) shares to providers of capital investment linked to the transaction - 98,424,660; and (v) advisors to the transaction paid in shares - 34,216,815. In addition, 21,325,966 options were granted to former management of Columbus at a strike price of 0.002 pence, being the par value of the shares of the Company at the time.

-- In the period from June 2020 to December 2020, the Company undertook extensive activities to prepare for drilling of Perseverance-1 in The Bahamas. This included reassembling the drilling team (which had been stood down at the start of the pandemic), and finalising the contractor group (including leading service companies such as Halliburton, Weatherford and Baker Hughes). At the same time, the Company worked closely with all contractors to finalise the drill plan and develop and implement Covid-19 mitigation and operating protocols.

-- On 8 August 2020, the Company assumed control of the Columbus portfolio of assets in Trinidad and Tobago, and Suriname. From that date, the Company commenced an intensive period of rehabilitative and improvement work in relation to those assets. This included restoring all employees to full pay, entering into negotiations with various suppliers and contractors to restore and ensure ongoing supply of critical services, ensuring full deployment of both Company owned rigs and a third contracted rig to increase workover rate, and a concerted focus on improving HSES performance.

-- On 1 October 2020, the Company undertook a private placing with institutional investors to raise GBP9.5m in gross proceeds through the issuance of 475 million new shares.

-- On 15 October 2020, the Company issued 146,818,765 new ordinary shares to certain executives and members of the Board in settlement of amounts owing to those persons as at 1 October 2020. On the same date the Company issued 7,733,592 shares to advisors in settlement of fees.

-- On 27 November 2020, the Company provided formal public notification of the specific drilling rig to be provided by Stena. On the same date the Company announced the expansion of its conditional convertible loan note facility (put in place during 2019) from GBP10.25m to GBP15m, with the first GBP3m of this facility available to the Company on an unconditional basis on commencement of the Perseverance-1 well.

-- On 30 November 2020, the Company finalised a new Enhanced Production Sharing Contract (EPSC) for the Goudron licence block onshore Trinidad. The term of the new EPSC expires on 30 June 2030.

-- On 10 December 2020, a request for a Judicial Review of the decision by the Government of The Bahamas to award the EA for Perseverance-1 was brought by a consortium of environmental activists in The Bahamas, along with a request for a stay to the commencement of the drilling of Perseverance-1. On 6 January 2021 the Bahamian Courts refused the request for a stay on the well, which at that time had already been commenced, and granted leave for the consortium of environmentalists to seek a Judicial Review. On 25 January 2021, the Company was added as a respondent to that action and on 2 March 2021 the Court accepted the Company's request that a security bond be posted by the applicants. The applicants failed to provide this bond and, in July 2021, appealed the Court's ruling, although on 8 July 2021, that appeal was withdrawn, and the applicants have subsequently withdrawn from the action entirely. Consent Orders to this effect have been agreed between the applicants, the Company and the Government, and were endorsed by the Court on 13 August 2021, bringing the matter to a definitive close.

-- On 14 December 2020, the Company entered into a funding facility with an institutional investment fund for up to $20 million, with an initial subscription of $10 million resulting in the issuance of 375 million shares to the investor and 37.5 million shares to advisors to the transaction in lieu of fees. On 12 January 2021 the Company exercised a put option to issue a further 187.5 million shares under the terms of the facility, raising $5 million in subscription proceeds, with a further 9.375 million fee shares being issued to advisors at this time.

-- On 20 December 2020, the Company commenced drilling of Perseverance 1 offshore The Bahamas. The drilling of the well took 49 days to complete to a TD of 3,905 meters and did not encounter commercial volumes of hydrocarbons in any of the penetrated horizons. The Company continues to analyse the data extracted from the well to greater define the remaining prospects within the licence area, in particular deeper Jurassic plays and remaining undrilled structures.

Health, Safety, Environment and Security Review

The Company has an HSES Committee which comprises Board members, senior executives, and representatives from operations which meets regularly to ensure adequacy of and compliance with standards, processes, systems and procedures.

Within this context, key HSES highlights for the period under review include:

-- In November 2020, shortly after assuming control of the Columbus business, the Company's HSES Management System was substantially revised. This was done to ensure a functional system that is tailored to the needs of the Company's operations. Key themes were selected to place additional emphasis on HSES awareness, compliance and culture. These themes are: driving awareness, behavioural safety, and the environment. Throughout 2020 and into 2021, measures against these key themes have been developed and implemented, coupled with enhanced internal communications and Company-wide mandatory awareness sessions on hazard identification, risk management and the importance of safe behaviour.

-- The Company determined as a matter of priority to achieve Safe to Work (STOW) Accreditation, a certification programme that is local to Trinidad and Tobago and is a requirement of all operators by Heritage Petroleum Company Limited (and which certification Columbus had not been able to achieve prior to the Company assuming control of the Columbus assets in Trinidad). Following an extensive period of preparatory work in 2020, the Company commenced its audit for STOW Certification in January 2021 and completed same on 11 February 2021. The Company was recommended for, and subsequently became STOW accredited on 5 August 2021, for a 2-year period.

-- In 2020 and then continuing into 2021, the Company increased efforts to ensure a trained and competent workforce, through a systematic program of internal and external training, and with a focus on promoting awareness of and compliance with the Company's HSES Management System. In parallel, all Company policies and procedures have been reviewed and updated, and a comprehensive business continuity plan was prepared and adopted.

-- Perseverance-1 was drilled in The Bahamas in the period 20 December 2020 to 5 February 2021, although there was considerable field and in-country operations in the months leading up to, and immediately following the completion of, the drilling campaign. Large numbers of crew were successfully moved internationally and on and off the drilling rig, and equipment and supplies were able to likewise be moved on and off the drilling rig responsibly and without any safety or environmental incidents. Covid-19 was a significant impost to operations, but careful management and planning ensured that there were zero infections on the rig for the entire duration of operations.

-- Similarly, all Trinidad and Tobago's operations have continued to function within the restrictions outlined by the Government of Trinidad and Tobago, notwithstanding the significant effects of Covid-19 in that country (including the declaration of various states of emergency). Specific Covid-19 Mitigation and Management Procedures have been implemented across the business, including the use of remote working where possible, restricted access to office areas to non-employees, daily temperature checks, daily sanitization and reinforcement of PPE, hand hygiene and cough etiquette. The measures implemented, together with an effective response procedure to manage cases that include the conduct of contact tracing, PCR testing, quarantine protocols and liaison with the Ministry of Health has proven to be effective in mitigating outbreaks amongst the staff.

-- In preparation for the drilling of both Perseverance-1 (in 2020) and Saffron-2 (in 2021) large-scale tabletop exercises were conducted involving key personnel within the Company as well as representatives of the drilling contractors, suppliers, and key Government bodies. In the case of The Bahamas, it was especially gratifying that this exercise involved joint coordination of authorities in The Bahamas, the United States, and Cuba. During these exercises, detailed plans were formulated for response to and management of various event scenarios, in a step by step and coordinated manner. Key learnings of the exercises were documented for future reference. The conduct of such exercises greatly improved the Company's readiness for possible emergencies during the drilling operations.

Sustainability Statement

Having a formal Environment, Social and Governance (ESG) sustainability framework, comprising a clear ESG strategy and associated goals along with regular tracking of performance against same, has become an important part of doing business for any company in the modern world.

Unambiguously, Challenger Energy is a hydrocarbon company, involved in the business of seeking out, appraising and ultimately developing and producing hydrocarbons - oil and gas - which are used to create energy. Challenger Energy acknowledges its role as a business, which is to create value for its owners from these activities, whilst at the same time ensuring the impact on stakeholders, the communities and the countries in which it works is positive or minimised. In conducting all of our activities it is our intent to do no harm to the environment, to our people, to the communities in which we live and operate, or to any other stakeholders. We will always seek to work in close collaborations with relevant governments, state owned companies or agencies, and local communities, and will always seek to demonstrate operational excellence whilst at the same time abiding by the highest level of environmental management practices.

The Board of Challenger Energy acknowledges and supports the global move towards a lower-carbon world, recognising that this transition will take time. During this period of transition Challenger Energy's business will continue to be relevant to the world we live in, although at the same time there will be both a social and business imperative for Challenger Energy to be more efficient, to be less wasteful, and to continue to operate safely and responsibly with minimal harm to its people, communities, and the environment.

In this context, Challenger Energy is undertaking a formal process to formulate an ESG sustainability framework, against which ESG outcomes can be tracked and measured. The Company expects to have completed this work in time for the ESG sustainability framework to be advised to shareholders and then implemented across the Company in respect of the 2022 calendar year.

In formulating its ESG sustainability framework, the Company is seeking to recognise two primary, globally accepted sets of standards for ESG, being The United Nations Sustainable Development Goals (UN SDG) and The Global Reporting Initiative (GRI). Those elements of the UN SDG most pertinent or most closely aligned to Challenger Energy's business are being brought into the very core of how we do business. In parallel, adoption of key GRI principles will enable a process by which the Company can identify its environmental, economic, and social impact, and then track and report publicly its positive or negative contributions toward sustainable development goals.

Corporate Governance

Challenger Energy's shares are traded on the AIM Market of the London Stock Exchange PLC. The Board of the Company is committed to maintaining high standards of corporate governance at all times. Whilst the Company is not subject to the requirements of the UK Corporate Governance Code, the Company is required to apply a recognised corporate governance code, demonstrating how the Company complies with such corporate governance code and where it departs from it.

QCA Code

The Directors of the Company have formally taken the decision to apply the QCA Corporate Governance Code (the QCA Code) as the standard against which the Company chooses to measure itself. This QCA Code emphasises the need for well balanced, effective boards, with a strong emphasis on overseeing risk management aimed at protecting the Company from unnecessary risk to enable the Company to secure its long-term future. In addition, the QCA Code highlights the alignment of remuneration policies with shareholder interests and sound shareholder relations. Further information on the Company's application of the QCA Code is available on the Company website at www.cegplc.com.

The Board and its Committees

The Board of Directors

The Board meets regularly to discuss and consider all aspects of the Company's activities. A Charter of the Board has been approved and adopted which sets out the membership, roles and responsibilities of the Board. The Board is primarily responsible for formulating, reviewing and approving the Group's strategy, budgets, major items of capital expenditure and acquisitions. As at the time of this report, the Board consists of the Chairman, the Chief Executive Officer, and three Non-executive Directors. All Directors have access to the Company Secretary and the Company's professional advisors.

Records of the board meetings

There were ten board meetings of the parent entity of the Group during the financial year.

Audit Committee

As at the time of this report, the Audit Committee comprises James Smith (Chairman) and Stephen Bizzell. The Audit Committee is primarily responsible for ensuring that the financial performance of the Group is properly reported on and monitored, for reviewing the scope and results of the audit, its cost effectiveness and the independence and objectivity of the auditor. The Audit Committee has oversight responsibility for public reporting and the internal controls of the Group. A Charter of the Audit Committee has been approved and adopted which formally sets out the membership, roles and responsibilities of the Audit Committee.

Remuneration & Nomination Committee

As at the time of this report The Remuneration & Nomination Committee comprises Simon Potter (Chairman) and William Schrader. The Remuneration & Nomination Committee is responsible for making recommendations to the Board of Directors regarding executive remuneration packages, including bonus awards and share options. The role of the Committee also extends to assisting the Board in fulfilling its responsibilities in the search for and evaluation of potential new Directors and ensuring that the size, composition and performance of the Board is appropriate for the scope of the Group's and Company's activities. It is recognised that shareholders of the Company have the ultimate responsibility for determining who should represent them on the Board.

Health, Safety, Environmental and Security Committee

The Group has a Health, Safety, Environmental and Security Committee which as at the date of this report comprises William Schrader, Simon Potter, Nathan Rayner and Dr. Pardogh Gogna. The committee's purpose is to assist the Directors in reviewing, reporting and managing the Group's performance, to assess compliance with applicable regulations, internal policies and goals and to contribute to the Group's risk management processes.

Internal Control

The Directors acknowledge their responsibility for the Group's system of internal control and for reviewing its effectiveness. The system of internal control is designed to manage the risk of failure to achieve the Group's strategic objectives. It cannot totally eliminate the risk of failure but will provide reasonable, although not absolute, assurance against material misstatement or loss.

Going Concern

The Directors consider that the Group and Company has or will have access to adequate financial resources to enable it to meet its financial obligations for at least 12 months from the date of this report. For this reason, they continue to adopt the going concern basis of preparing the financial statements. Further information regarding the appropriateness of the use of the going concern assumption in the basis of preparation can be found in note 1 to the consolidated financial statements.

Directors' Report

The Company's Directors present their report and audited financial statements of the Company and the consolidated group consisting of Challenger Energy Group PLC ("Challenger Energy" or "the Company") and the entities it controlled (the "Group") at the end of, or during, the year ended 31 December 2020.

Directors

The following persons were Directors of the Company during the financial year under review:

William Schrader

James Smith

Simon Potter

Adrian Collins (retired 25 May 2021)

Ross McDonald (retired 1 June 2021)

Leo Koot (appointed 24 August 2020, resigned 22 January 2021)

Further details of the above Directors can be found on the Company's website: www.cegplc.com.

Principal Activity

The principal activity of the Group and the Company consists of oil & gas production, development, appraisal and exploration in Trinidad and Tobago and Suriname, and high impact exploration in The Bahamas and Uruguay.

Results and dividends

The results of the Group for the year are set out on page 28 of the annual report and show a loss for the year ended 31 December 2020 of $13,992,000 (2019: loss of $4,632,000). The total comprehensive loss for the year of $13,992,000 (2019: loss of $4,632,000) has been transferred to the retained deficit.

The Directors do not recommend payment of a dividend (2019: $nil).

Significant Shareholders

The following table represents shareholdings of 3% or more notified to the Company as at 31 December 2020:

 
 Top 10 shareholders (by parent company) 
 Shareholder                                    31-Dec-20    % IC 
=========================================  ==============  ====== 
 Hargreaves Lansdown PLC                      828,280,362   18.38 
=========================================  ==============  ====== 
 Interactive Investor                         499,128,728   11.08 
=========================================  ==============  ====== 
 Halifax Share Dealing                        402,397,871    8.93 
=========================================  ==============  ====== 
 Lombard Odier Asset Management               329,390,732    7.31 
=========================================  ==============  ====== 
 Barclays Wealth                              240,539,264    5.34 
=========================================  ==============  ====== 
 TOTAL                                      2,299,736,957   51.04 
-----------------------------------------  --------------  ------ 
 
 

Directors' Shareholding and Options

The interests in the Company at the balance sheet date of all Directors who held office on the Board of the Company at the year-end are stated below.

 
     Director        Number of Shares   Number of Options 
==================  =================  ================== 
 William Schrader       17,845,667          3,000,000 
------------------  -----------------  ------------------ 
    James Smith         11,475,630          1,500,000 
------------------  -----------------  ------------------ 
   Simon Potter         81,217,700         72,500,000 
------------------  -----------------  ------------------ 
  Adrian Collins        13,528,977          1,500,000 
------------------  -----------------  ------------------ 
   Ross McDonald        11,725,630          1,500,000 
------------------  -----------------  ------------------ 
     Leo Koot           28,093,156              - 
------------------  -----------------  ------------------ 
 

Record of Board Meetings

There were ten board meetings of the parent entity of the Group during the financial year.

 
     Director         Number of Board     Number of Board Meetings 
                      Meetings Attended      Eligible to Attend 
==================  ===================  ========================= 
 William Schrader            10                      10 
------------------  -------------------  ------------------------- 
    James Smith              10                      10 
------------------  -------------------  ------------------------- 
   Simon Potter              10                      10 
------------------  -------------------  ------------------------- 
  Adrian Collins             10                      10 
------------------  -------------------  ------------------------- 
   Ross McDonald             9                       10 
------------------  -------------------  ------------------------- 
     Leo Koot                3                       3 
------------------  -------------------  ------------------------- 
 

Statement of Directors' Responsibilities in respect of the financial statements

The Directors are responsible for preparing the Annual Report and the Financial Statements in accordance with applicable Isle of Man law and regulation.

Company law requires the Directors to prepare financial statements for each financial year. The Directors have elected to prepare the Group and Company financial statements in accordance with International Financial Reporting Standards ("IFRSs") as adopted by the European Union. The financial statements are required by law to give a true and fair view of the state of affairs of the Group and the Company and of the profit or loss of the Group for that period.

In preparing the financial statements, the Directors are required to:

   --   select suitable accounting policies and then apply them consistently; 

-- state whether IFRSs as adopted by the European Union have been followed, subject to any material departures disclosed and explained in the financial statements;

   --   make judgements and accounting estimates that are reasonable and prudent; and 

-- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group and the Company will continue in business.

The Directors are responsible for keeping proper accounting records that are sufficient to show and explain the Group and Company's transactions and disclose with reasonable accuracy at any time the financial position of the Group and the Company and to enable them to ensure that the financial statements comply with the Isle of Man Companies Acts 1931 to 2004. They are also responsible for safeguarding the assets of the Group and 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 Company's website. Legislation in the Isle of Man governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

On behalf of the Board

Eytan Uliel

Director

24 September 2021

Independent auditor's report to the members of Challenger Energy Group PLC

Report on the audit of the financial statements

Our opinion

In our opinion:

-- Challenger Energy Group PLC's (formerly Bahamas Petroleum Company PLC) consolidated financial statements give a true and fair view of the state of the Group's affairs as at 31 December 2020 and of its loss and its cash flows for the year then ended in accordance with International Financial Reporting Standards as adopted by the European Union;

-- Challenger Energy Group PLC's company financial statements give a true and fair view of the state of the Company's affairs as at 31 December 2020 and its cash flows for the year then ended in accordance with International Financial Reporting Standards as adopted by the European Union as applied in accordance with the provisions of the Isle of Man Companies Act 1982; and

-- the financial statements have been properly prepared in accordance with the Isle of Man Companies Acts 1931 to 2004.

What we have audited

Challenger Energy Group PLC's consolidated and company financial statements (the "financial statements") comprise:

   --      the consolidated and company statements of financial position as at 31 December 2020; 
   --      the consolidated statement of comprehensive income for the year then ended; 
   --      the consolidated and company statements of changes in equity for the year then ended; 
   --      the consolidated and company statements of cash flows for the year then ended; and 

-- the notes to the financial statements, which include significant accounting policies and other explanatory information.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing ("ISAs"). Our responsibilities under those standards are further described in the "Auditor's responsibilities for the audit of the financial statements" section of our report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We are independent of the Group in accordance with the International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants ("IESBA Code"). We have fulfilled our other ethical responsibilities in accordance with the IESBA Code.

Material uncertainty related to going concern

In forming our opinion on the financial statements, which is not modified, we have considered the adequacy of the disclosures made in note 1.28 (ii) of the financial statements concerning the Group's and the Company's ability to continue as a going concern. Management has indicated that the Group and Company require additional funding to meet their forecast cash flow requirements during the 12 months following approval of the financial statements in order to continue as a going concern. Whilst funding options are being pursued certain of these will require creditor agreement outside of the Group's control.

These conditions, along with the other matters explained in those notes to the financial statements, indicate the existence of a material uncertainty which may cast significant doubt about the Group's and the Company's ability to continue as a going concern.

The financial statements do not include the adjustments that would result if the Group and the Company were unable to continue as a going concern. In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Our evaluation of the directors' assessment of the Group's and the Company's ability to continue to adopt the going concern basis of accounting included:

-- verifying the mathematical accuracy of management's cash flow forecast and agreeing the opening cash position;

-- assessing management's underlying cash flow projections for the Group to other external and internal sources, where appropriate;

   --      assessing and validating the impact of post year end cash movements and commitments; 
   --      assessing management's ability to take mitigating actions, if required; and 

-- assessing the completeness and appropriateness of management's going concern disclosures in the financial statements.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Our audit approach

Overview

As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial statements. In particular, we considered where the directors made subjective judgements; for example, in respect of significant accounting estimates that involved making assumptions and considering future events that are inherently uncertain. As in all of our audits, we also addressed the risk of management override of internal controls, including among other matters, consideration of whether there was evidence of bias that represented a risk of material misstatement due to fraud.

Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. These comprised:

   --      Material uncertainty related to going concern (Group and Company) as set out above; 

-- Recoverability of the Group's intangible exploration and evaluation assets and goodwill / Recoverability of Company's investment in subsidiaries and amount owed by subsidiary undertakings;

   --      Business combination accounting (Group); and 
   --      Impact of Covid-19 on the financial statements (Group and Company). 

The key audit matters below are consistent with last year except for the addition of Business combination accounting following the Company's merger with Columbus Energy Group PLC.

 
 Key audit matter                                How our audit addressed the key 
                                                  audit matter 
----------------------------------------------  -------------------------------------------------------------- 
 Recoverability of the Group's intangible         For intangible exploration and 
  exploration and evaluation assets                evaluation assets, we critically 
  and goodwill / Recoverability of                 evaluated management's assessment 
  Company's investment in subsidiaries             of each impairment trigger per 
  and amount owed by subsidiary undertakings       'IFRS 6 - Exploration for and Evaluation 
  Refer to note 10 of the financial                of Mineral Resources', including 
  statements.                                      but not limited to: 
  At 31 December 2020 the carrying                  *    Assessing whether the Group had the rights to explore 
  value of the Group's intangible                        in the relevant geographical areas by obtaining 
  exploration and evaluation assets                      supporting documentation such as licence agreements. 
  was $75.3 million (2019: $50.6 million) 
  and goodwill amounted to $4.6 million 
  (2019: $Nil). As the carrying value               *    Enquiring to determine whether management had the 
  of these intangible exploration                        intention to carry out exploration and evaluation 
  and evaluation assets and goodwill                     activity in the relevant exploration areas. We 
  are significant in the financial                       reviewed management's cash flow forecast models to 
  statements of the Group, we consider                   assess the level of the budgeted expenditure on these 
  it necessary to assess whether any                     areas, and obtained details of contracts. 
  facts or circumstances exist to 
  suggest that the carrying amount 
  of these exploration and evaluation               *    Critically assessing the outcome of drilling 
  assets and goodwill may exceed their                   activities as to whether any impairment indicators 
  recoverable amount.                                    were present to suggest that the carrying value of 
  The Company's investment in its                        these exploration and evaluation assets is unlikely 
  subsidiaries totalled $50.9 million                    to be recovered through development or a sale. 
  (2019: $29.6 million) and the amount 
  owed by its subsidiary undertakings 
  totalled $83.8 million (2018: $66.7              For goodwill, our procedures in 
  million) as shown in notes 14 and                relation to management's impairment 
  16 to the financial statements respectively.     assessment included assessing the 
  The recoverability of the Company's              valuation methodology, challenging 
  investment in its subsidiaries and               the reasonableness of key assumptions 
  amount owed by its subsidiary undertakings       based on our knowledge of the business 
  are dependent upon the successful                and industry. We found the assumptions 
  development or sale of the relevant              made by management were reasonable. 
  exploration areas.                               Having completed our work, we did 
                                                   not identify any material misstatements 
                                                   regarding the carrying value of 
                                                   the intangible exploration and 
                                                   evaluation assets and as a result, 
                                                   the recoverability of the Company's 
                                                   investment in subsidiaries and 
                                                   amount owed by its subsidiary undertakings. 
==============================================  ============================================================== 
 
 
 Key audit matter                             How our audit addressed the key 
                                               audit matter 
                                             ============================================ 
 Business combination accounting               We performed the following audit 
  (Group)                                       procedures: 
  Refer to notes 1.04, 1.05, 1.28               -- We obtained a detailed understanding 
  (iv) and 15 of the financial statements.      of the merger and associated acquisition 
  On 7 August 2020, the Company's               accounting under IFRS 3; 
  merger with Columbus Energy Resources         -- We assessed, scoped and tested 
  PLC was completed.                            the opening balance sheet and the 
  This transaction falls under the              fair value adjustments applied 
  scope of IFRS 3 "Business combinations"       to the acquired business; 
  which requires significant management         -- We obtained evidence to challenge 
  judgement in determining the fair             the directors fair value estimates 
  value of consideration transferred            by verifying market data points; 
  and assets acquired, including oil            -- We tested and challenged the 
  and gas properties and intangible             key inputs used in the valuation 
  assets which are inherently judgemental.      focusing on those involving judgement 
  Our key audit matter focuses on               such as oil and gas properties, 
  the valuation of assets acquired              intangible assets, deferred tax 
  and the completeness of liabilities           and decommissioning provisions; 
  including abandonment funds.                  -- We tested the fair value of 
                                                the consideration; 
                                                -- We reviewed the disclosures 
                                                in the financial statements for 
                                                accuracy and completeness. 
                                                Based on the work performed we 
                                                are satisfied the carrying amount 
                                                of assets and liabilities recorded 
                                                are as permitted under IFRS 3. 
===========================================  ============================================ 
 Impact of Covid-19 on the Financial 
  Statements                                    We performed the following procedures 
  During the course of the audit both           to address the impact that Covid-19 
  management and the audit team considered      has on the financial statements: 
  the impact the ongoing Covid-19               -- We held discussions with senior 
  pandemic is having on the Groups'             management about the impact on 
  activities, the financial statements          the plans to raise additional funding. 
  and the oil price environment.                We considered the impact of Covid-19 
  The main impact of the pandemic               on management's going concern assessment 
  on the Group was the movements in             noted above. The impact of the 
  global oil prices, the decision               pandemic on the Group and Company's 
  to delay the commencement of drilling         going concern has been appropriately 
  the Perseverance #1 well until later          mitigated by management. 
  in 2020, the associated force majeure         -- We considered the impact on 
  event extension of the licences               management's assessment of the 
  to 30 June 2021 and additional unforeseen     carrying value of assets, conducted 
  drilling costs relating to Covid-19           in accordance with 'IFRS 6 - Exploration 
  management protocols.                         for and Evaluation of Mineral Resources'. 
  Another potential impact is the               Management concluded the Group 
  ability of the Group to raise additional      had the right under their licences 
  funding required.                             to declare force majeure as a result 
  The Group has disclosed the impact            of the pandemic. This provided 
  of Covid-19 in note 1.28 (ii) to              additional time for the Group to 
  the financial statements.                     commence drilling once operations 
  Given the significance of the above           could resume and hence remain in 
  matters, we determined the impact             compliance with their licence conditions, 
  of Covid-19 to be a key audit matter          despite the delay to the drilling 
  which relates to both the Group               timetable. 
  and the Company financial statements.         We concluded that management's 
                                                assessment of Covid-19 on the financial 
                                                statements is reasonable and the 
                                                disclosure in note 1.28 (ii) of 
                                                the financial statements adequate. 
===========================================  ============================================ 
 

Other information

The other information comprises all of the information in the Annual Report and Financial Statements other than the financial statements and our auditor's report thereon. The directors are responsible for the other information.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the directors for the financial statements

The directors are responsible for the preparation of the financial statements that give a true and fair view in accordance with International Financial Reporting Standards as adopted by the European Union and Isle of Man law, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the Group's and Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group and Company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

-- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

-- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's and Company's internal control.

-- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

-- Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's and Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future

events or conditions may cause the Group   and Company to cease to continue as a going concern. 

-- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

-- Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion.

We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide the directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.

From the matters communicated with the directors, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

This report, including the opinion, has been prepared for and only for the Company's members as a body in accordance with Section 15 of the Isle of Man Companies Act 1982 and for no other purpose. We do not, in giving this opinion, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

Report on other legal and regulatory requirements

Adequacy of accounting records and information and explanations received

Under the Isle of Man Companies Acts 1931 to 2004 we are required to report to you by exception if, in our opinion:

   --      we have not received all the information and explanations we require for our audit; 

-- proper books of account have not been kept, or proper returns adequate for our audit have not been received from branches not visited by us;

-- the company financial statements are not in agreement with the books of account and returns; and

-- certain disclosures of directors' loans and remuneration specified by law have not been complied with.

We have no exceptions to report arising from this responsibility.

Andrew Dunn

for and on behalf of PricewaterhouseCoopers LLC

Chartered Accountants

Douglas

Isle of Man

24 September 2021

Financial Statements

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEARED 31 DECEMBER 2020

 
                                                                                     Year ended         Year ended 
                                                                               31 December 2020   31 December 2019 
                                                                        Note            $ 000's            $ 000's 
 Net petroleum revenue                                                   2                1,417                  - 
 Cost of sales                                                                          (2,781)                  - 
 Gross loss                                                                             (1,364)                  - 
 
 Administrative expenses                                                 3              (9,793)            (4,622) 
 Goodwill impairment                                                     10             (2,435)                  - 
 Operating foreign exchange gains                                                            32                 19 
 Operating loss                                                                        (13,560)            (4,603) 
 
 Other income                                                                                 3                  1 
 Finance income                                                          9                  202                 39 
 Finance costs                                                           9                (628)               (69) 
 Loss before taxation                                                                  (13,983)            (4,632) 
 
 Income tax expense                                                      5                  (9)                  - 
                                                                              -----------------  ----------------- 
 Loss for the year attributable to equity holders of the parent 
  company                                                                              (13,992)            (4,632) 
                                                                              -----------------  ----------------- 
 
 Other comprehensive income 
 Exchange differences on translation of foreign operations                                  147                  - 
 Other comprehensive income for the year net of taxation                                    147                  - 
                                                                              -----------------  ----------------- 
 
 Total comprehensive expense for the year attributable to equity 
  holders of the parent company                                                        (13,845)            (4,632) 
                                                                              -----------------  ----------------- 
 
 Loss per share (cents) 

 Basic and diluted                                                       8                (0.5)             (0.27) 
 
 

All operations are considered to be continuing (see note 2).

The accompanying accounting policies and notes form an integral part of these financial statements.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2020

 
                                                  As at 31 December   As at 31 December 
                                                               2020                2019 
                                          Note              $ 000's             $ 000's 
 Assets 
 Non-current assets 
 Intangible exploration and evaluation 
  assets                                   10                75,259              50,570 
 Tangible assets                           11                25,783                  31 
 Right of use assets                       12                    97                 198 
 Goodwill                                 10/15               4,610                   - 
 Investment in associate                   13                    47                   - 
 Escrow and abandonment funds              16                 1,297                   - 
 Deferred tax asset                         5                 8,975                   - 
 Total non-current assets                                   116,068              50,799 
 Current assets 
 Trade and other receivables               16                 5,313                 858 
 Inventories                               18                   172                   - 
 Restricted cash                           17                   946                  26 
 Cash and cash equivalents                                   17,862              11,152 
 Total current assets                                        24,293              12,036 
                                                 ------------------  ------------------ 
 Total assets                                               140,361              62,835 
                                                 ------------------  ------------------ 
 Liabilities 
 Current liabilities 
 Trade and other payables                  19              (18,620)             (1,952) 
 Lease liabilities                         20                 (105)               (161) 
 Borrowings                                21                 (498)                   - 
 Total current liabilities                                 (19,223)             (2,113) 
 Non-current liabilities 
 Borrowings                                21               (1,639)                   - 
 Provisions                                22               (6,314)                   - 
 Lease liabilities                         20                     -                (44) 
 Deferred tax liability                     5               (8,974)                   - 
                                                 ------------------  ------------------ 
 Total non-current liabilities                             (16,927)                (44) 
                                                 ------------------  ------------------ 
 Total liabilities                                         (36,150)             (2,157) 
                                                 ------------------  ------------------ 
 Net assets                                                 104,211              60,678 
                                                 ==================  ================== 
 Shareholders' equity 
 Called-up share capital                   23                   123                  61 
 Share premium reserve                     23               152,717              96,157 
 Share based payments reserve              24                 5,228               4,868 
 Retained deficit                                          (77,684)            (63,692) 
 Foreign exchange reserve                                       147                   - 
 Convertible debt option reserve           21                   396                   - 
 Other reserves                            23                23,284              23,284 
                                                 ------------------ 
 Total equity attributable to equity 
  holders of the parent company                             104,211              60,678 
                                                 ==================  ================== 
 The accompanying accounting policies and notes form an integral part of 
  these financial statements. 
  These financial statements were approved and authorised for issue by the 
  Board of Directors on 24 September 2021 and signed on its behalf by: 
 
 Eytan Uliel                              Bill Schrader 
 Director                                 Director 
 

COMPANY STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2020

 
                                                As at 31 December   As at 31 December 
                                                             2020                2019 
                                         Note             $ 000's             $ 000's 
 Assets 
 Non-current assets 
 Property, plant and equipment            11                   78                  16 
 Right of use assets                      12                   12                  27 
 Investment in subsidiaries               14               50,940              29,560 
 Trade and other receivables              16               83,839              66,721 
                                               ------------------  ------------------ 
 Total non-current assets                                 134,869              96,324 
 
 Current assets 
 Trade and other receivables              16                  238                 224 
 Restricted cash                          17                   57                  26 
 Cash and cash equivalents                                 17,160              11,100 
                                               ------------------  ------------------ 
 Total current assets                                      17,455              11,350 
                                               ------------------  ------------------ 
 Total assets                                             152,324             107,674 
                                               ------------------  ------------------ 
 
 Liabilities 
 Current liabilities 
 Trade and other payables                 19                (504)             (1,946) 
 Lease liabilities                        20                 (13)                (15) 
 Total current liabilities                                  (517)             (1,961) 
 
 Non-current liabilities 
 Lease liabilities                        20                    -                (13) 
 Borrowings                               21              (1,120)                   - 
                                               ------------------  ------------------ 
 Total non-current liabilities                            (1,120)                (13) 
                                               ------------------  ------------------ 
 Total liabilities                                        (1,637)             (1,974) 
                                               ------------------  ------------------ 
 Net assets                                               150,687             105,700 
                                               ==================  ================== 
 
 Shareholders' equity 
 Called-up share capital                  23                  123                  61 
 Share premium reserve                    23              152,717              96,157 
 Share based payments reserve             24                4,858               4,498 
 Retained deficit                                        (36,942)            (24,551) 
 Convertible debt option reserve          21                  396                   - 
 Other reserve                            23               29,535              29,535 
 Total equity attributable to equity 
  holders of the parent company                           150,687             105,700 
                                               ==================  ================== 
 
 The accompanying accounting policies and notes form an integral part of 
  these financial statements. 
  These financial statements were approved and authorised for issue by the 
  Board of Directors on 24 September 2021 and signed on its behalf by: 
 
 Eytan Uliel                            Bill Schrader 
 Director                               Director 
 
 

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEARED 31 DECEMBER 2020

 
                                                          Year ended         Year ended 
                                                    31 December 2020   31 December 2019 
                                                             $ 000's            $ 000's 
 Cash flows from operating activities 
 Loss before taxation                                       (13,983)            (4,632) 
 (Increase) in trade and other receivables                     (204)              (152) 
 (Decrease)/Increase in trade and other payables             (1,164)                515 
 (Increase) in inventories                                      (18)                  - 
 Impairment of goodwill                                        2,435                  - 
 Depreciation of property, plant and equipment 
  (note 11)                                                    1,446                 20 
 Depreciation of right of use asset (note 
  12)                                                            214                219 
 Loss on disposal of property, plant and 
  equipment (note 11)                                            105                  1 
 Amortisation (note 10)                                          113                  - 
 Share settled payments (note 24)                              2,455                  - 
 Other income                                                    (3)                (1) 

 Finance income (note 9)                                       (202)               (39) 
 Finance costs (note 9)                                          628                 69 
 Share based payments (note 24)                                  360              1,003 
 Income tax paid (note 5)                                        (9)                  - 
 Foreign exchange (gain) on operating activities                (32)               (20) 
                                                   ----------------- 
 Net cash outflow from operating activities                  (7,859)            (3,017) 
                                                   -----------------  ----------------- 
 
 Cash flows from investing activities 
 Purchase of property, plant and equipment 
  (note 11)                                                    (228)                (7) 
 Proceeds from sale of property, plant and 
  equipment                                                        -                  1 
 Payments for exploration and evaluation 
  assets                                                    (14,566)              (985) 
 (Increase) in restricted cash                                   (9)                  - 
 Cash acquired from business combination                       1,039                  - 
  (note 15) 
 Other income received                                             3                  1 
 Interest received (note 9)                                      202                 39 
 Net cash outflow from investing activities                 (13,559)              (951) 
                                                   -----------------  ----------------- 
 
 Cash flows from financing activities 
 Issue of ordinary share capital                              29,536             13,103 
 Principal elements of lease payments (note 
  20)                                                          (216)              (212) 
 Interest payable on lease liabilities (note 
  20)                                                           (17)               (23) 
 Finance costs                                                 (176)                  - 
 Repayment of borrowings                                     (2,694)                  - 
 Proceeds of borrowings                                        1,515                  - 
 Net cash inflow from financing activities                    27,948             12,868 
                                                   -----------------  ----------------- 
 
 Net increase in cash and cash equivalents                     6,530              8,900 
 Effects of exchange rate changes on cash 
  and cash equivalents                                           180                 31 
 Cash and cash equivalents at beginning of 
  year                                                        11,152              2,221 
                                                   -----------------  ----------------- 
 Cash and cash equivalents at end of year                     17,862             11,152 
                                                   -----------------  ----------------- 
 

The accompanying accounting policies and notes form an integral part of these financial statements.

COMPANY STATEMENT OF CASH FLOWS

FOR THE YEARED 31 DECEMBER 2020

 
                                                          Year ended         Year ended 
                                                    31 December 2020   31 December 2019 
                                                             $ 000's            $ 000's 
 Cash flows from operating activities 
 Loss before taxation                                       (12,392)            (3,165) 
 (Increase) in trade and other receivables                      (14)               (68) 
 (Decrease)/increase in trade and other payables               (869)              1,668 
 Depreciation                                                     31                 24 
 Provision for doubtful recovery of intercompany               7,171                  - 
  receivable 
 Share settled payments                                        2,455                  - 
 Other income                                                    (3)                  - 
 Finance income                                                 (46)               (39) 
 Finance costs                                                    81                 48 
 Foreign exchange (gain) on operating activities               (142)               (19) 
 Share based payments                                            360              1,003 
 Net cash outflow from operating activities                  (3,368)              (548) 
                                                   -----------------  ----------------- 
 
 Cash flows from investing activities 
 Payments to acquire tangible assets                            (79)                (3) 
 Interest received                                                46                 39 
 Other income received                                             3                  - 
 (Increase) in restricted cash                                  (31)                  - 
 Advances to and payments on behalf of group 
  companies                                                 (21,610)            (3,686) 
 Net cash outflow from investing activities                 (21,671)            (3,650) 
                                                   -----------------  ----------------- 
 
 Cash flows from financing activities 
 Issue of ordinary share capital                              29,536             13,103 
 Principle elements of lease payments (note 
  20)                                                           (15)               (14) 
 Interest payable on lease liabilities (note 
  20)                                                            (1)                (2) 
 Finance costs                                                  (79)                  - 
 Repayments of borrowings                                          -                  - 
 Proceeds of borrowings                                        1,515                  - 
                                                   -----------------  ----------------- 
 Net cash inflow from financing activities                    30,956             13,087 
                                                   -----------------  ----------------- 
 
 Net increase in cash and cash equivalents                     5,917              8,889 
 Effects of exchange rate changes on cash 
  and cash equivalents                                           143                 30 
 Cash and cash equivalents at beginning of 
  year                                                        11,100              2,181 
                                                   -----------------  ----------------- 
 Cash and cash equivalents at end of year                     17,160             11,100 
                                                   -----------------  ----------------- 
 

The accompanying accounting policies and notes form an integral part of these financial statements.

STATEMENT OF CHANGES IN EQUITY

FOR THE YEARED 31 DECEMBER 2020

 
                   Called up       Share        Share     Retained         Foreign   Convertible        Other       Total 
                       share     premium        based      deficit        exchange   debt option     reserves      Equity 
                     capital     reserve     payments                      reserve       reserve 
                                              reserve 
                     $ 000's     $ 000's      $ 000's      $ 000's         $ 000's       $ 000's      $ 000's     $ 000's 
  Group 
  As at 1 
   January 2019           46      83,068        3,820     (59,060)               -             -     23,284        51,158 
 
  Loss for the 
   year                    -           -            -      (4,632)               -             -            -     (4,632) 
  Currency 
  translation 
  differences              -           -            -            -               -             -            -           - 
                  ----------  ----------  -----------  -----------  --------------  ------------  -----------  ---------- 
  Total 
   comprehensive 
   expense                 -           -            -      (4,632)               -             -            -     (4,632) 
  Share capital 
   issued                 15      13,089            -            -               -             -            -      13,104 
  Share based 
   payments                -           -        1,048            -               -             -            -       1,048 
  Total 
   contributions 
   by and 
   distributions 
   to owners of 
   the Company            15      13,089        1,048            -               -             -            -      14,152 
  As at 31 
   December 2019          61      96,157        4,868     (63,692)               -             -       23,284      60,678 
                  ----------  ----------  -----------  -----------  --------------  ------------  -----------  ---------- 
 
  Loss for the 
   year                    -           -            -     (13,992)               -             -            -    (13,992) 
  Currency 
   translation 
   differences             -           -            -            -             147             -            -         147 
                  ----------  ----------  -----------  -----------  --------------  ------------  -----------  ---------- 
  Total 
   comprehensive 
   expense                 -           -            -     (13,992)             147             -            -    (13,845) 
  Share capital 
   issued                 62      56,560            -            -               -             -            -      56,622 
  Recognition of 
   conversion 
   feature                 -           -            -            -               -           396            -         396 
  Share based 

   payments                -           -          360            -               -             -            -         360 
  Total 
   contributions 
   by and 
   distributions 
   to owners of 
   the Company            62      56,560          360            -               -           396            -      57,378 
  As at 31 
   December 2020         123     152,717        5,228     (77,684)             147           396       23,284     104,211 
 
 Company              Called       Share        Share     Retained     Convertible         Other        Total 
                          up     premium        based      deficit     debt option       reserve       Equity 
                       share     reserve     payments                      reserve 
                     capital                  reserve 
                     $ 000's     $ 000's      $ 000's      $ 000's         $ 000's       $ 000's      $ 000's 
 As at 1 January 
  2019                    46      83,068        3,450     (21,386)               -        29,535       94,713 
 
 Loss for the 
  year                     -           -            -      (3,165)               -             -      (3,165) 
 Total 
  comprehensive 
  expense                  -           -            -      (3,165)               -             -      (3,165) 
 Share capital 
  issued                  15      13,089            -            -               -             -       13,104 
 Share based 
  payments                 -           -        1,048            -               -             -        1,048 
                  ----------  ----------  -----------  -----------  --------------  ------------  ----------- 
 Total 
  contributions 
  by and 
  distributions 
  to owners of 
  the Company             15      13,089        1,048            -               -             -       14,152 
                  ----------  ----------  -----------  -----------  --------------  ------------  ----------- 
 As at 31 
  December 2019           61      96,157        4,498     (24,551)               -        29,535      105,700 
                  ----------  ----------  -----------  -----------  --------------  ------------  ----------- 
 
 Loss for the 
  year                     -           -            -     (12,391)               -             -     (12,391) 
 Total 
  comprehensive 
  expense                  -           -            -     (12,391)               -             -     (12,391) 
 Share capital 
  issued                  62      56,560            -            -               -             -       56,622 
 Recognition of 
  conversion 
  feature                  -           -            -            -             396             -          396 
 Share based 
  payments                 -           -          360            -               -             -          360 
                  ----------  ----------  -----------  -----------  --------------  ------------  ----------- 
 Total 
  contributions 
  by and 
  distributions 
  to owners of 
  the Company             62      56,560          360            -             396             -       57,378 
                  ----------  ----------  -----------  -----------  --------------  ------------  ----------- 
 As at 31 
  December 2020          123     152,717        4,858     (36,942)             396        29,535      150,687 
                  ----------  ----------  -----------  -----------  --------------  ------------  ----------- 
 
 

The accompanying accounting policies and notes form an integral part of these financial statements

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEARED 31 DECEMBER 2020

 
 1      Summary of significant accounting policies 
 1.01   General information and authorisation of financial statements 
        Challenger Energy Group PLC ("the Company", formerly known as Bahamas 
         Petroleum Company PLC) and its subsidiaries (together "the Group") 
         are the holders of several oil & gas exploration and production licences 
         located in The Bahamas, Trinidad & Tobago, Suriname and Uruguay. 
         The Company is a limited liability company incorporated and domiciled 
         in the Isle of Man. The address of its registered office is IOMA House, 
         Hope Street, Douglas, Isle of Man. The Company's review of operations 
         and principal activities is set out in the Directors' Report. See note 
         14 to the financial statements for details of the Company's principal 
         subsidiaries. 
         The accounting reference date of the Company is 31 December. 
 1.02   Statement of compliance with IFRS 
        The Group's financial statements have been prepared in accordance with 
         International Financial Reporting Standards (IFRS) as adopted by the 
         European Union. The Company's financial statements have been prepared 
         in accordance with IFRS as adopted by the European Union and as applied 
         in accordance with the provisions of the Isle of Man Companies Acts 
         1931 to 2004. The principal accounting policies adopted by the Group 
         and Company are set out below. 
        New and revised standards and interpretations not applied 
 
        Certain new accounting standards and interpretations have been published 
         that are not mandatory for 31 December 2020 reporting periods and have 
         not been early adopted by the Group and Company. These standards are 
         not expected to have a material impact on the Group and Company in 
         the current or future reporting periods and on foreseeable future transactions. 
 
 
 1.03   Basis of preparation 
        The financial statements have been prepared on the historical cost 
         basis, except for the measurement of certain assets and financial instruments 
         at fair value as described in the accounting policies below. 
         The financial statements have been prepared on a going concern basis, 
         refer to note 1.28 for more details. 
        The financial statements are presented in United States Dollars ($) 
         and all values are rounded to the nearest thousand dollars ($'000) 
         unless otherwise stated. 
 
 1.04   Basis of consolidation 
           The financial statements incorporate the results of the Company and 
            its subsidiaries ("the Group") using the acquisition method. Control 
            is achieved where the Company is exposed to, or has rights to, variable 
            returns from its involvement with the entity and has the ability to 
            affect those returns through its power over the entity. 
            Inter-company transactions and balances between Group companies are 
            eliminated in full. 
            Where necessary, adjustments are made to the financial statements of 
            subsidiaries to bring the accounting policies used in line with those 
            used by the Group. 
            The investment in associate (an entity over which the Group has significant 
            influence) has been recorded at cost and has not been adjusted to reflect 
            the Group's 25% share of the net profits/losses and assets/liabilities 
            of the associate from the date of acquisition to the balance sheet 
            date as it was deemed immaterial. 
 1.05   Business combinations 
        On the acquisition of a subsidiary, the business combination is accounted 
         for using the acquisition method. In the consolidated statement of 
         financial position, the acquiree's identifiable assets, liabilities 
         are initially recognised at their fair values at the acquisition date. 
         The cost of an acquisition is measured as the aggregated amount of 
         the consideration transferred, measured at the date of acquisition. 
         The consideration paid is allocated to the assets acquired and liabilities 
         assumed on the basis of fair values at the date of acquisition. Acquisition 
         costs not directly related to the issuance of shares in consideration 
         are expensed when incurred and included in administrative expenses. 
         Acquisition costs which are directly related to the issuance of shares 
         in consideration are deducted from share premium. The results of acquired 
         operations are included in the consolidated statement of comprehensive 
         income from the date on which control is obtained. 
         If the cost of acquisition exceeds the identifiable net assets attributable 
         to the Group, the difference is considered as purchased goodwill, which 
         is not amortised but annually reviewed for impairment. In the case 
         that the identifiable net assets attributable to the Group exceed the 
         cost of acquisition, the difference is recognised in profit or loss 
         as a gain on bargain purchase. 
         If the initial accounting for a business combination cannot be completed 
         by the end of the reporting period in which the combination occurs, 
         only provisional amounts are reported, which can be adjusted during 
         the measurement period of 12 months after acquisition date. 
         After initial recognition, goodwill is measured at cost less any accumulated 
         impairment losses. 
 1.06   Intangible assets - exploration and evaluation assets 
           Exploration and evaluation expenditure incurred which relates to more 
            than one area of interest is allocated across the various areas of 
            interest to which it relates on a proportionate basis. Exploration 
            and evaluation expenditure incurred by or on behalf of the Group is 
            accumulated separately for each area of interest. The area of interest 
            adopted by the Group is defined as a petroleum title. 
 
            Expenditure in the area of interest comprises direct costs and an 
            appropriate portion of related overhead expenditure but does not include 
            general overheads or administrative expenditure not linked to a particular 

            area of interest. 
 
            As permitted under IFRS 6, exploration and evaluation expenditure 
            for each area of interest, other than that acquired from the purchase 
            of another entity, is carried forward as an asset at cost provided 
            that one of the following conditions is met: 
 
             *    the costs are expected to be recouped through 
                  successful development and exploitation of the area 
                  of interest, or alternatively by its sale; or 
 
 
             *    exploration and/or evaluation activities in the area 
                  of interest have not, at the reporting date, reached 
                  a stage which permits a reasonable assessment of the 
                  existence or otherwise of economically recoverable 
                  reserves, and active and significant operations in, 
                  or in relation to, the area of interest are 
                  continuing. 
 
 
 
            Such costs are initially capitalised as intangible assets and include 
            payments to acquire the legal right to explore, together with the directly 
            related costs of technical services and studies, seismic acquisition, 
            exploratory drilling and testing. Exploration and evaluation expenditure 
            which fails to meet at least one of the conditions outlined above is 
            taken to the statement of comprehensive income. 
 
            Expenditure is not capitalised in respect of any area of interest unless 
            the Group's right of tenure to that area of interest is current. 
            Intangible exploration and evaluation assets in relation to each area 
            of interest are not amortised until the existence (or otherwise) of 
            commercial reserves in the area of interest has been determined. 
           Exploration and evaluation assets are assessed for impairment when 
            facts and circumstances suggest that the carrying amount may exceed 
            its recoverable amount. In accordance with IFRS 6, the Group reviews 
            and tests for impairment on an ongoing basis and specifically if the 
            following occurs: 
 
            a) the period for which the Group has a right to explore in the specific 
            area has expired during the period or will expire in the near future, 
            and is not expected to be renewed; 
            b) substantive expenditure on further exploration for and evaluation 
            of mineral resources in the specific area is neither budgeted nor planned; 
            c) exploration for and evaluation of mineral resources in the specific 
            area have not led to the discovery of commercially viable quantities 
            of mineral resources and the Group has decided to discontinue such 
            activities in the specific area; and 
            d) sufficient data exists to indicate that although a development in 
            the specific area is likely to proceed the carrying amount of the exploration 
            and evaluation asset is unlikely to be recovered in full from successful 
            development or by sale. 
 
            An impairment loss is recognised for the amount by which the asset's 
            carrying value exceeds its recoverable amount. The recoverable amount 
            is the higher of an asset's fair value less costs to sell and value 
            in use. For the purposes of assessing impairment, assets are grouped 
            at the lowest levels for which there are separately identifiable cash 
            inflows which are largely independent of the cash inflows from other 
            assets or groups of assets (cash-generating units). 
 
            Net proceeds from any disposal of an exploration asset are initially 
            credited against the previously capitalised costs. Any surplus proceeds 
            are credited to the consolidated statement of comprehensive income. 
 
 
 1.07   Oil and gas development/producing assets and commercial reserves 
        If the field is determined to be commercially viable, the attributable 
         costs are transferred to development/production assets within tangible 
         assets in single field cost centres. 
        Subsequent expenditure is capitalised only where it either enhances 
         the economic benefits of the development/producing asset or replaces 
         part of the existing development/producing asset. 
        Decreases in the carrying amount are charged to the consolidated statement 
         of comprehensive income. 
        Net proceeds from any disposal of development/producing assets are 
         credited against the previously capitalised cost. A gain or loss on 
         disposal of a development/producing asset is recognised in the consolidated 
         statement of comprehensive income to the extent that the net proceeds 
         exceed or are less than the appropriate portion of the net capitalised 
         costs of the asset. 
 
        Commercial reserves are proven and probable oil and gas reserves, which 
         are defined as the estimated quantities of crude oil, natural gas and 
         natural gas liquids which geological, geophysical and engineering data 
         demonstrate with a specified degree of certainty to be recoverable 
         in future years from known reservoirs and which are considered commercially 
         producible. There should be a 50% statistical probability that the 
         actual quantity of recoverable reserves will be more than the amount 
         estimated as a proven and probable reserves and a 50% statistical probability 
         that it will be less. 
 
 1.08   Depletion and amortisation 
        All expenditure carried within each field is amortised from the commencement 
         of production on a unit of production basis, which is the ratio of 
         oil and gas production in the period to the estimated quantities of 
         commercial reserves at the end of the period plus the production in 
         the period, generally on a field by field basis. In certain circumstances, 
         fields within a single development area may be combined for depletion 
         purposes. Costs used in the unit of production calculation comprise 
         the net book value of capitalised costs plus the estimated future field 
         development costs necessary to bring the reserves into production. 
         Changes in the estimates of commercial reserves or future field development 
         costs are dealt with prospectively. 
 
 1.09   Decommissioning 
        Where a material liability for the removal of production facilities 
         and site restoration at the end of the productive life of a field 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. The cost of the 
         relevant tangible fixed asset is increased with an amount equivalent 
         to the provision and depreciated on a unit of production basis. Changes 
         in estimates are recognised prospectively, with corresponding adjustments 
         to the provision and the associated fixed asset. 
 
 
 1.10   Property, plant and equipment 
        Property, plant and equipment is stated in the statement of financial 
         position at cost less accumulated depreciation and any recognised impairment 
         loss. Depreciation on property, plant and equipment other than exploration 
         and production assets, is provided at rates calculated to write off 
         the cost less estimated residual value of each asset on a straight-line 
         basis over its expected useful economic life. Depreciation rates applied 
         for each class of assets are detailed as follows: 
          Furniture, fittings and equipment   1 - 4 years 
          Motor vehicles                      5 years 
          Leasehold improvements              Over the life of the lease 
         The assets' residual values and useful lives are reviewed, and adjusted 
         if appropriate, at each balance sheet date. 
         An asset's carrying amount is written down immediately to its recoverable 
         amount if the asset's carrying amount is greater than its estimated 
         recoverable amount with any impairment charge being taken to the statement 
         of comprehensive income. 
         Gains and losses on disposals are determined by comparing proceeds 
         with carrying amount and are recognised in the statement of comprehensive 
         income. 
 
 
 1.11   Inventories 
        Inventories are stated at the lower of cost and net realisable value. 
         Cost is determined by the weighted average cost formula, where cost 
         is determined from the weighted average of the cost at the beginning 
         of the period and the cost of purchases during the period. Net realisable 
         value represents the estimated selling price less all estimated costs 
         of completion and costs to be incurred in marketing, selling and distribution. 
 
 
 1.12   Revenue recognition 
        Revenue from sales of oil and natural gas is recognised at the transaction 
         price to which the group expects to be entitled, exclusive of indirect 
         taxes and excise duties. Revenue is recognised when performance obligations 
         have been met, on delivery of product or when control of the product 
         is transferred to the customer. 
 
 1.13   Foreign currencies 
        Transactions in foreign currencies are translated at the exchange rate 
         ruling at the date of each transaction. Foreign currency monetary assets 
         and liabilities are retranslated using the exchange rates at the balance 
         sheet date. Gains and losses arising from changes in exchange rates 
         after the date of the transaction are recognised in the Statement of 
         comprehensive income. Non--monetary assets and liabilities that are 

         measured in terms of historical cost in a foreign currency are translated 
         at the exchange rate at the date of the original transaction. 
 
           In the financial statements, the net assets of the Group are translated 
            into its presentation currency at the rate of exchange at the balance 
            sheet date. Income and expense items are translated at the average 
            rates for the period. The resulting exchange differences are recognised 
            in equity and included in the translation reserve. The consolidated 
            financial statements and company financial statements are 
        presented in United States Dollars ("$"), which is the functional currency 
         of the Company. Subsidiaries in the Group have a range of functional 
         currencies including United States Dollars, UK Pound Sterling, Trinidad 
         Dollars and Euros. 
 1.14   Leases 
             The Group leases various offices, warehouses, equipment and vehicles. 
              Rental contracts are typically made for fixed periods of 6 months to 
              3 years, but may have extension options. 
              Lease terms are negotiated on an individual basis and contain a wide 
              range of different terms and conditions. The lease agreements do not 
              impose any covenants other than the security interests in the leased 
              assets that are held by the lessor. Leased assets may not be used as 
              security for borrowing purposes. 
              Leases are recognised as a right-of-use asset and a corresponding liability 
              at the date at which the leased asset is available for use by the Group. 
              Assets and liabilities arising from a lease are initially measured 
              on a present value basis. Lease liabilities include the net present 
              value of the following lease payments: 
 
               *    fixed payments (including in-substance fixed 
                    payments), less any lease incentives receivable; 
 
 
               *    variable lease payment that are based on an index or 
                    a rate, initially measured using the index or rate as 
                    at the commencement date; 
 
 
               *    amounts expected to be payable by the Group under 
                    residual value guarantees; 
 
 
               *    the exercise price of a purchase option if the Group 
                    is reasonably certain to exercise that option; and 
 
 
               *    payments of penalties for terminating the lease, if 
                    the lease term reflects the Group exercising that 
                    option. 
 
 
              Lease payments to be made under reasonably certain extension options 
              are also included in the measurement of the liability. The lease payments 
              are discounted using the interest rate implicit in the lease. If that 
              rate cannot be readily determined, which is generally the case for 
              leases in the Group, the lessee's incremental borrowing rate is used, 
              being the rate that the individual lessee would have to pay to borrow 
              the funds necessary to obtain an asset of similar value to the right-of-use 
              asset in a similar economic environment with similar terms, security 
              and conditions. 
              To determine the incremental borrowing rate, the Group: 
 
               *    where possible, uses recent third-party financing 
                    received by the individual lessee as a starting point, 
                    adjusted to reflect changes in financing conditions 
                    since third party financing was received; 
 
 
               *    uses a build-up approach that starts with a risk-free 
                    interest rate adjusted for credit risk for leases 
                    held by the Group, which does not have recent third 
                    party financing; and 
 
 
               *    makes adjustments specific to the lease, for example 
                    term, country, currency and security. 
 
 
              The Group is exposed to potential future increases in variable lease 
              payments based on an index or rate, which are not included in the lease 
              liability until they take effect. When adjustments to lease payments 
              based on an index or rate take effect, the lease liability is reassessed 
              and adjusted against the right-of-use asset. 
              Lease payments are allocated between principal and finance cost. The 
              finance cost is charged to profit or loss over the lease period so 
              as to produce a constant periodic rate of interest on the remaining 
              balance of the liability for each period. 
              Right-of-use assets are measured at cost comprising the following: 
               *    the amount of the initial measurement of lease 
                    liability; 
 
 
               *    any lease payments made at or before the commencement 
                    date less any lease incentives received; 
 
 
               *    any initial direct costs; and 
 
 
               *    restoration costs. 
 
 
              Right-of-use assets are generally depreciated over the shorter of the 
              asset's useful life and the lease term on a straight-line basis. If 
              the Group is reasonably certain to exercise a purchase option, the 
              right-of-use asset is depreciated over the underlying asset's useful 
              life. 
              Payments associated with short-term leases of equipment and vehicles 
              and all leases of low-value assets are recognised on a straight-line 
              basis as an expense in profit or loss. Short-term leases are leases 
              with a lease term of 12 months or less. Low-value assets comprise IT 
              equipment and small items of office furniture. 
 
 1.15   Financial instruments 
             Financial assets 
              The Group classifies its financial assets as financial assets held 
              at amortised cost. Management determines the classification of its 
              financial assets at initial recognition. 
              The Group classifies its financial assets as financial assets held 
              at amortised cost only if both of the following criteria are met: 
               *    the asset is held within a business model whose 
                    objective is to collect the contractual cash flows; 
                    and 
 
 
               *    the contractual terms give rise to cash flows that 
                    are solely payments of principal and interest. 
 
 
              Measurement 
              Financial assets held at amortised cost are initially recognised at 
              fair value, and are subsequently stated at amortised cost using the 
              effective interest method. Financial assets at amortised cost comprise 
              'cash and cash equivalents' at variable interest rates, 'restricted 
              cash', escrowed and abandonment funds and 'trade and other receivables' 
              excluding 'prepayments'. 
 
           Impairment of financial assets 
            The Group assesses on a forward looking basis the expected credit losses 
            associated with its financial assets held at amortised cost. The impairment 
            methodology applied depends on whether there has been a significant 
            increase in credit risk. 
            The Group applies the expected credit loss model to financial assets 
            at amortised cost. Given the nature of the Group's receivables, expected 
            credit losses are not material. 
            Financial liabilities 
            The Group classifies its financial liabilities as other financial liabilities. 
            Other financial liabilities are recognised initially at fair value 
            and are subsequently measured at amortised cost using the effective 
            interest method. Other financial liabilities consist of 'trade and 
            other payables' and 'lease liabilities'. Trade and other payables represent 
            liabilities for goods and services provided to the Group prior to the 
            end of the financial period which are unpaid. The amounts are unsecured 
            and are usually paid within 30 days of recognition. 
 1.16   Cash and cash equivalents 
 
        Cash and cash equivalents includes cash on hand and deposits held at 
         call with financial institutions with original maturities of three 
         months or less. For the purposes of the statement of cash flow, restricted 
         cash is not included within cash and cash equivalents. 
 
 1.17   Share capital 
 
        Ordinary shares are classified as equity. Incremental costs directly 
         attributable to the issue of new shares or options are deducted, net 
         of tax, from the proceeds. Net proceeds are disclosed in the statement 
         of changes in equity. 
 
 
 1.18   Finance costs 
        Borrowing costs are recognised as an expense when incurred. 
 
 
 1.19   Borrowings 
        Borrowings are recognised initially at fair value, net of any applicable 
         transaction costs incurred. Borrowings are subsequently carried at 
         amortised cost; any difference between the proceeds (net of transaction 
         costs) and the redemption value is recognised in the income statement 
         over the period of the borrowings using the effective interest method 
         (if applicable). 
 
         Interest on borrowings is accrued as applicable to that class of borrowing. 
         Convertible loans 
         Loans with certain conversion rights are identified as compound instruments 
         with the liability and equity components separately recognised. The 
         fair value of the liability component on initial recognition is calculated 

         by discounting the contractual stream of future cash flows using the 
         prevailing market interest rate for similar non-convertible debt. The 
         difference between the fair value of the liability component and the 
         fair value of the whole instrument is recorded as equity. Transaction 
         costs are apportioned between the liability and the equity components 
         of the instrument based on the amounts initially recognised. The liability 
         component is subsequently measured at amortised cost using the effective 
         interest rate method, in line with our other financial liabilities. 
         The equity component is not remeasured. On conversion of the instrument, 
         equity is issued and the liability component is derecognised. The original 
         equity component recognised at inception remains in equity. No gain 
         or loss is recognised on conversion. 
 
 1.20   Provisions 
        Provisions are recognised when the Group has a present obligation (legal 
         or constructive) as a result of a past event, it is probable that an 
         outflow of resources embodying economic benefits will be required to 
         settle the obligation and a reliable estimate can be made of the amount 
         of the obligation. 
 
        When the Group expects some or all of a provision to be reimbursed, 
         for example under an insurance contract, the reimbursement is recognised 
         as a separate asset but only when the reimbursement is virtually certain. 
         The expense relating to any provision is presented in the statement 
         of comprehensive income net of any reimbursement. 
 
 1.21   Dividends 
        Dividends are reported as a movement in equity in the period in which 
         they are approved by the shareholders. 
 
 1.22   Taxation 
        The tax expense represents the sum of the tax currently payable and 
         deferred tax. 
 
        Current tax, including overseas tax, is provided at amounts expected 
         to be paid (or recovered) using the tax rates and laws that have been 
         enacted or substantially enacted by the balance sheet date. 
 
        Deferred tax is the tax expected to be payable or recoverable on differences 
         between the carrying amounts of assets and liabilities in the financial 
         statements and the corresponding tax bases used in the computation 
         of taxable profit, and is accounted for using the balance sheet liability 
         method. Deferred tax liabilities are generally recognised for all taxable 
         temporary differences and deferred tax assets are recognised to the 
         extent that it is probable that taxable profits will be available against 
         which deductible temporary differences can be utilised. Such assets 
         and liabilities are not recognised if the temporary difference arises 
         from goodwill or from the initial recognition (other than in a business 
         combination) of other assets and liabilities in a transaction that 
         affects neither the tax profit nor the accounting profit. 
 
        Deferred tax liabilities are recognised for taxable temporary differences 
         arising on investments in subsidiaries and associates, except where 
         the Group is able to control the reversal of the temporary difference 
         and it is probable that the temporary difference will not reverse in 
         the foreseeable future. 
 
        The carrying amount of deferred tax assets is reviewed at each balance 
         sheet date and adjusted to the extent that it is probable that sufficient 
         taxable profits will be available to allow all or part of the asset 
         to be recovered. 
 
        Deferred tax is calculated at the tax rates that are expected to apply 
         in the period when the liability is settled or the asset is realised. 
         Deferred tax is charged or credited in the comprehensive statement 
         of income, except when it relates to items charged or credited directly 
         to equity, in which case the deferred tax is also dealt with in equity. 
 
 
 1.23   Impairment of assets 
        At each balance sheet date, the Group assesses whether there is any 
         indication that its tangible and intangible assets have been impaired. 
         Evaluation, pursuit and exploration assets are also tested for impairment 
         when reclassified to oil and natural gas assets. If any such indication 
         exists, the recoverable amount of the asset is estimated in order to 
         determine the extent of the impairment, if any. If it is not possible 
         to estimate the recoverable amount of the individual asset, the recoverable 
         amount of the cash--generating unit to which the asset belongs is determined. 
        The recoverable amount of an asset or a cash--generating unit is the 
         higher of its fair value less costs to sell and its value in use. The 
         value in use is the present value of the future cash flows expected 
         to be derived from an asset or cash--generating unit. This present 
         value is discounted using a pre--tax rate that reflects current market 
         assessments of the time value of money and of the risks specific to 
         the asset, for which future cash flow estimates have not been adjusted. 
         If the recoverable amount of an asset is less than its carrying amount, 
         the carrying amount of the asset is reduced to its recoverable amount. 
         That reduction is recognised as an impairment loss. 
 
        The Group's impairment policy is to recognise a loss relating to assets 
         carried at cost less any accumulated depreciation or amortisation immediately 
         in the statement of comprehensive income. 
 
 
        Goodwill acquired in a business combination is, from the acquisition 
         date, allocated to each of the cash--generating units, or groups of 
         cash--generating units, that are expected to benefit from the synergies 
         of the combination. Goodwill is tested for impairment at least annually, 
         and whenever there is an indication that the asset may be impaired. 
         An impairment loss is recognised on cash--generating units, if the 
         recoverable amount of the unit is less than the carrying amount of 
         the unit. The impairment loss is allocated to reduce the carrying amount 
         of the assets of the unit by first reducing the carrying amount of 
         any goodwill allocated to the cash--generating unit, and then reducing 
         the other assets of the unit, pro rata on the basis of the carrying 
         amount of each asset in the unit. 
 
        If an impairment loss subsequently reverses, the carrying amount of 
         the asset is increased to the revised estimate of its recoverable amount 
         but limited to the carrying amount that would have been determined 
         had no impairment loss been recognised in prior years. A reversal of 
         an impairment loss is recognised in the statement of comprehensive 
         income. Impairment losses on goodwill are not subsequently reversed. 
 1.24   Employee benefits 
         Wages and salaries, annual leave and sick leave 
        Liabilities for wages and salaries, including non--monetary benefits, 
         expected to be settled within 12 months of the reporting date are recognised 
         in other payables in respect of employees' services up to the reporting 
         date and are measured at the amounts expected to be paid when the liabilities 
         are settled. 
 
        Share-based payments 
        Where equity settled share-based instruments are awarded to employees 
         or Directors, the fair value of the instruments at the date of grant 
         is charged to the statement of comprehensive income over the vesting 
         period. Non-market vesting conditions are taken into account by adjusting 
         the number of equity instruments expected to vest at each balance sheet 
         date so that, ultimately, the cumulative amount recognised over the 
         vesting period is based on the number of instruments that eventually 
         vest. Market vesting conditions are factored into the fair value of 
         the instruments granted. As long as all other vesting conditions are 
         satisfied, a charge is made irrespective of whether the market vesting 
         conditions are satisfied. The cumulative expense is not adjusted for 
         failure to achieve a market vesting condition. 
        Where equity instruments are granted to persons other than employees 
         or Directors, the statement of comprehensive income is charged with 
         the fair value of goods and services received. 
        Bonuses 
         The Group recognises a liability and an expense for bonuses. Bonuses 
         are approved by the Board and a number of factors are taken into consideration 
         when determining the amount of any bonus payable, including the recipient's 
         existing salary, length of service and merit. The Group recognises 
         a provision where contractually obliged or where there is a past practice 
         that has created a constructive obligation. 
         Pension obligations 
         For defined contribution plans, the Group pays contributions to privately 
         administered pension plans. The Group has no further payment obligations 
         once the contributions have been paid. The contributions are recognised 
         as an employee benefit expense when they are due. 
         Termination benefits 
         Termination benefits are payable when employment is terminated by the 
         Group before the normal retirement date, or whenever an employee accepts 
         voluntary redundancy in exchange for these benefits. The Group recognises 
         termination benefits when it is demonstrably committed to a termination 
         and when the entity has a detailed formal plan to terminate the employment 

         of current employees without the possibility of withdrawal. Benefits 
         falling due more than 12 months after the end of the reporting period 
         are discounted to their present value. 
 1.25   Segmental reporting 
        Operating segments are reported in a manner consistent with the internal 
         reporting provided to the chief operating decision-maker. The chief 
         operating decision-maker, who is responsible for allocating resources 
         and assessing performance of the operating segments, has been identified 
         as the Board of Directors that makes strategic decisions. The performance 
         of operating segments is assessed on the basis of key metrics applicable, 
         such as barrels of oil produced per day, "netbacks" per barrel, revenue 
         and operating profit. 
         The Board has determined there is a single operating segment: oil and 
         gas exploration, development and production however, there are four 
         geographical segments: (Trinidad & Tobago, St Lucia & Suriname), Bahamas, 
         (Cyprus, Netherlands, Spain & USA) and the (Isle of Man & UK), one 
         of which is non-operating. 
 
 
 1.26   Share issue expenses and share premium account 
        Costs of share issues are written off against the premium arising on 
         the issues of share capital. 
 
 1.27   Share based payments reserve 
        This reserve is used to record the value of equity benefits provided 
         to employees and Directors as part of their remuneration and provided 
         to consultants and advisors hired by the Group from time to time as 
         part of the consideration paid. 
 
 
 
 1.28    Critical accounting estimates, judgements and assumptions 
         The Group makes estimates and assumptions concerning the future. The 
          resulting accounting estimates will, by definition, seldom equal the 
          related actual results. The estimates and assumptions that have a 
          risk of causing material adjustment to the carrying amounts of assets 
          and liabilities within the next financial year are discussed below. 
 
  (i)    Recoverability of intangible oil and gas costs 
         Costs capitalised as intangible assets are assessed for impairment 
          when circumstances suggest that the carrying value may exceed its 
          recoverable value. This assessment involves judgement as to the likely 
          commerciality of the asset, the future revenues and costs pertaining 
          and the discount rate to be applied for the purposes of deriving a 
          recoverable value. 
              Expenditure of $76,055,348 relating to the cost of exploration licences, 
               geological and geophysical consultancy, seismic data acquisition and 
               interpretation and the drilling of exploration wells has been capitalised 
               as at 31 December 2020 (2019: $50,569,263), being made up of $72,879,666 
               in exploration costs in the Bahamian offshore licences and $3,175,682 
               of costs over exploration licences in Trinidad. The Group's exploration 
               activities are subject to a number of significant and potential risks 
               including: 
 
                *    licence obligations; 
 
 
                *    requirement for further funding; 
 
 
                *    geological and development risks; and 
 
 
                *    political risk. 
 
 
               The recoverability of these intangible assets is dependent on the 
               discovery and successful development of economic reserves, including 
               the ability to raise finance to develop future projects or alternatively, 
               sale of the respective licence areas. The carrying value of the Group's 
               exploration and evaluation expenditure is reviewed at each balance 
               sheet date and, if there is any indication that it is impaired, its 
               recoverable amount is estimated. Estimates of impairment are limited 
               to an assessment by the Directors of any events or changes in circumstances 
               that would indicate that the carrying value of the asset may not be 
               fully recoverable. Any impairment loss arising is charged to the statement 
               of comprehensive income. 
               On 21 February 2019, the Group received notification from the Bahamian 
               Government of the extension of the term of its four southern licences 
               to 31 December 2020, with the requirement that the Company commence 
               an exploration well before the end of the extended term. On 23 March 
               2020 the Group notified the Government of The Bahamas that, due to 
               the impacts of the global response to the Covid-19 pandemic, a force 
               majeure event had occurred under the terms of its exploration licences, 
               such that the term of the licences were extended beyond 31 December 
               2020 commensurate with the duration of the force majeure event. In 
               November 2020 the Group received formal notification by the Government 
               of The Bahamas agreeing to an extension of these licences to 30 June 
               2021 as a result of the force majeure event. 
               On 20 December 2020, the Group commenced drilling of the Perseverance 
               1 exploration well in its Bahamas licence area, with drilling activity 
               ceasing on 8 February 2021. Whilst the well did encounter hydrocarbons, 
               commercial volumes of movable hydrocarbons were not present at the 
               drilling location. The Group has undertaken an extensive review of 
               the data extracted from the well to determine the extent to which 
               this data indicates remaining prospectivity in the deeper, untested 
               horizons, as well as horizons of interest at other locations along 
               the B and C structures. The results of this review indicate that substantial 
               prospectivity remains in sufficient potential volumes such that further 
               exploration activity on these licences is merited. On the basis of 
               the revised prospect volume inventory for these untested horizons 
               and structures, the Group has undertaken an exercise to determine 
               whether the present value of any future economic benefit which may 
               be derived from hydrocarbon extraction from these licences is sufficient 
               to support the carrying value of the capitalised costs as at 31 December 
               2020. Following this review, the Group has determined that the present 
               value of these future economic benefits exceeds the carrying value 
               of this asset and that consequently no impairment of this asset is 
               required. 
               In March 2021, the Group notified the Government of The Bahamas of 
               its election to renew the four southern licences into a further three 
               year exploration period, having discharged the licence obligation 
               to drill an exploration well before the expiry of the current licence 
               period on 30 June 2021. The Group remains in discussions with the 
               Government regarding renewal of these licences and the level of licence 
               fees which remain to be paid for the current period and which would 
               be payable for the renewed licence period. On formal renewal of the 
               licences by the Government, the key licence obligation for the new 
               three year period will be the drilling of a further exploration well 
               within the licence area before the expiry of the renewed licence term. 
               The ability of the Group to discharge its obligation to commence a 
               well prior to the end of the renewed licence period will be contingent 
               on securing the funding required to execute a second exploration well. 
               To this end, the Group has commenced discussions with various industry 
               operators regarding entering into a joint venture partnership or farm 
               out to fund ongoing work leading to a second well, such that the Directors 
               consider that the Group will be able to discharge the licence requirement 
               of a further exploration well within the renewed term of the licences. 
               In June 2021 the Group notified the Government of The Bahamas that 
               it did not intend to further discussions regarding renewal of the 
               Miami licence area, against which capitalised costs totalling $0.4 
               million are being held as at 31 December 2020. As this development 
               represents a non adjusting post balance sheet event, the Group will 
               impair these costs in full in the financial statements to 31 December 
               2021. 
 
 
         Capitalised exploration costs in the Group's Trinidad operations consist 
          primarily of the Bonasse licence area in the South West Peninsula 
          of Trinidad. The Group has undertaken a review to determine if there 
          are any indications that the carrying value of these assets may exceed 
          the present value of any future economic benefit derived from hydrocarbon 
          production. On 26 May 2021 the Group commenced the drilling of the 
          Saffron 2 exploration well in this licence area, which was completed 
          in July 2021, although production testing remains ongoing. Initial 
          results of this well indicate that commercially available volumes 
          of hydrocarbons are likely to exist within the prospective structures, 
          however further exploration activity is required to fully delineate 
          the potential reserves present in the structures. The Group has therefore 

          determined that there is no indication that the carrying value of 
          this asset is impaired as at 31 December 2020. 
 
 (ii)    Going concern 
            These financial statements have been prepared on a going concern basis, 
             which assumes that the Group will continue in operation for the foreseeable 
             future. 
 
             As at the reporting date, the Group had $17.9 million in unrestricted 
             cash funding, and access to financing facilities, include a share 
             subscription facility and a convertible loan facility for up to GBP22.5 
             million (approx. $31.5 million) in additional funding, of which GBP6.75 
             million (approx. $9.5 million), before costs, was drawn down post 
             year end. 
 
             On 24 March 2021 the Group reported that the final cost of the Perseverance-1 
             exploration well, following extensive drilling delays due to equipment 
             failures and additional unforeseen costs relating to Covid-19 management 
             protocols, was approx. $45 million, representing an additional $10 
             million than originally anticipated. The Group has entered into a 
             series of agreements with the suppliers to the well for structured 
             payment plans over the course of 2021 in order to facilitate the orderly 
             settlement of these liabilities. 
 
             On 27 May 2021, the Group raised approx. $9.75 million in additional 
             funding by way of an open offer to the Company shareholders and a 
             placing to certain institutional investors, providing the resources 
             required to ensure the Group could continue to invest in its exploration 
             assets, namely through the drilling of the Saffron 2 well in Trinidad 
             Bonasse licence area, whilst continuing to meet its financial obligations 
             as they fall due. 
 
             The Group's ability to meet all of its anticipated obligations over 
             the 12 months from the date of this report is dependent on the ability 
             to secure access to additional funding. The Group currently estimates 
             that it has a need for approx. $15 million in additional funding in 
             order to continue to meet its obligations as and when they fall due 
             over the 12 months from the date of this report. This includes meeting 
             routine operating costs, undertaking certain planned work program 
             activities, and also includes settlement of final remaining payments 
             to suppliers and finance providers from the drilling campaigns for 
             both the Perseverance-1 well in The Bahamas and the Saffron-2 well 
             in Trinidad. 
 
             In order to meet this funding requirement, the Group has been and 
             continues to evaluate a number of potential funding options. This 
             includes a potential $10 million convertible loan note facility with 
             Arena Investors LP, consideration of Reserve-Based Lending options, 
             the potential disposal of certain assets for cash, potential farming 
             out of an interest in certain of the Group's exploration and/or production 
             licences which would result in some cash inflows and funding of work 
             program plans in relation to those assets, possible further issuances 
             of securities and/or debt instruments for cash, agreeing payment plans 
             for the deferral of outstanding obligations to suppliers and finance 
             providers, and/or settlement of all or part of outstanding obligations 
             to suppliers and finance providers via the issuance of Company shares. 
             As at the date of this report, the Group remains actively engaged 
             in developing and reviewing all of the above potential sources of 
             additional funding. At the same time, the Group is undertaking work 
             necessary to materially reduce overhead and general operating costs, 
             whilst at the same time maximising production revenues from existing 
             producing oil fields, in the expectation of being able to generate 
             surplus operating cashflows in the 12 months from the date of this 
             report, which surplus cashflows could then be applied towards the 
             Group's overall funding requirements. 
 
             While there can be no certainty as to the availability of funding, 
             given the range of funding options available, and given the Group's 
             track record in being able to secure funding as and when required, 
             the Group is confident that it will be able to successfully conclude 
             one or any combination of the above-noted funding options, as well 
             as maximise production cashflows and actively manage the schedule 
             of cash outflows, such that the Group will be able to continue to 
             meet its financial obligation as and when they fall due for the 12 
             months following the date of this report. As a consequence, the directors 
             are satisfied that the going concern principle remains appropriate 
             for the preparation of these financial statements. However, as outlined 
             above, these conditions, which include the need to obtain additional 
             funding from one or more of a number of potential sources, which is 
             not entirely within the Group's control, indicates the existence of 
             a material uncertainty which may cast significant doubt on the Group 
             and Company's ability to continue as a going concern. The financial 
             statements do not include the adjustments that would be required if 
             the Group and Company were unable to continue as a going concern 
 
             Following the outbreak of the Covid-19 global pandemic, the Group 
             has implemented remote working procedures across all of its teams 
             and operations to ensure the ongoing safety of its staff and consultants. 
             As a consequence, the Group does not consider the Covid-19 pandemic 
             to have any material impact on its operations. 
 
 (iii)   Recoverability of investment in subsidiary and amounts owed by subsidiary 
          undertakings in the Company statement of financial position 
          The investment in the Company's direct subsidiaries and amounts owed 
           by subsidiary undertakings at 31 December 2020 stood at $50,939,743 
           (2019: $29,560,456) and $83,838,284 (2019: $66,721,08) respectively. 
           Ultimate recoverability of investments in subsidiaries and amounts 
           owed by subsidiary undertakings is dependent on successful development 
           and commercial exploitation, or alternatively, sale of the respective 
           licence areas. The carrying value of the Company's investments in 
           subsidiaries is reviewed at each balance sheet date and, if there 
           is any indication of impairment, the recoverable amount is estimated. 
           Estimates of impairments are limited to an assessment by the directors 
           of any events or changes in circumstances that would indicate that 
           the carrying values of the assets may not be fully recoverable. Similarly, 
           the expected credit losses on the amounts owed by subsidiary undertakings 
           are intrinsically linked to the recoverable amount of the underlying 
           assets. Any impairment losses arising are charged to the statement 
           of comprehensive income. 
           At 31 December 2020 a loss allowance for expected credit losses of 
           $7,171,198 (2019: nil) was held in respect of the recoverability of 
           amounts due from subsidiary undertakings. 
 
 (iv)    Fair value of assets and liabilities acquired in business combination 
         On 7 August 2020, the Company completed a merger with Columbus Energy 
          Resources PLC ("CERP"), effected by means of a Court sanctioned scheme 
          of arrangement under Part 26 of the UK Companies Act 2006 (the "Scheme"). 
          Pursuant to the Scheme, a total of 757,261,511 new ordinary shares 
          in the Company were issued and allotted to holders of CERP shares. 
          In accounting for this transaction under the acquisition method, the 
          directors have estimated the fair value of the identified assets and 
          liabilities acquired by reference to market data points and industry 
          valuation standard practices. 
          See note 15 for summary of the fair values of the identifiable assets 
          and liabilities of the CERP Group as at the date of acquisition. 
 
 1.29    Earnings per share 
         Basic earnings per share is calculated as net profit attributable 
          to members of the parent company, adjusted to exclude any costs of 
          servicing equity (other than dividends) and preference share dividends, 
          divided by the weighted average number of ordinary shares, adjusted 
          for any bonus element. 
 
         Diluted earnings per share is calculated as net profit attributable 
          to members of the parent company, adjusted for: 
 
 (i)     Costs of servicing equity (other than dividends) and preference share 
          dividends; 
 
 (ii)    The post-tax effect of dividends and interest associated with dilutive 
          potential ordinary shares that have been recognised as expenses; and 
 (iii)    Other non-discretionary changes in revenues or expenses during the 
           period that would result from the dilution of potential ordinary shares, 
           divided by the weighted average number of ordinary shares and dilutive 
           potential ordinary shares, adjusted for any bonus element. 
 
 1.30    Investment in Subsidiary in the Company statement of financial position 

         Investments in subsidiaries are recognised at initial cost of acquisition, 
          less any impairment to date. 
 
 
             2               Turnover and segmental analysis 
                             Management has determined the operating segments based on the reports 
                              reviewed by the Board of Directors that are used to make strategic 
                              decisions. The Board has determined there is a single operating segment: 
                              oil and gas exploration, development and production. However, there 
                              are five geographical segments: Trinidad & Tobago & Suriname (operating), 
                              The Bahamas (operating), The Isle of Man and UK (non-operating, corporate), 
                              and Uruguay, Spain, Cyprus, Netherlands & USA (all non-operating). 
 
                              The segment including Trinidad & Tobago has been reported as the Group's 
                              direct oil and gas producing and revenue generating operating segment. 
                              The Bahamas segment includes The Bahamian exploration licences on which 
                              drilling activities were conducted in 2020. The segment including the 
                              Isle of Man is the Group's parent, and provides management service 
                              to the Group. The entities in Uruguay, St Lucia, Cyprus, Spain, the 
                              Netherlands, and the U.S.A. are non-operating in that they either hold 
                              investments, or are dormant, or in the case of Uruguay has not yet 
                              commenced operations. Their results are consolidated and reported on 
                              together as a single segment. 
       Year ended 31                 Operating       Operating       Management        Non-operating         Total 
       December 
       2020 
                                      Trinidad         Bahamas           IOM/UK 
                                    & Suriname                              (*) 
                                         $'000           $'000            $'000                $'000         $'000 
       Operating 
       profit/(loss) 
       by geographical area 
       Net petroleum 
        revenue 
        (**)                             1,417               -                -                    -         1,417 
                             -----------------  --------------  ---------------  -------------------  ------------ 
 
       Operating 
        profit/(loss)                  (3,081)         (2,167)          (8,103)                (209)      (13,560) 
       Other income                          -               -                3                    -             3 
       Finance (charges)                  (96)            (21)            (511)                    -         (628) 
       Finance income                        -               -              202                    -           202 
       Loss before taxation            (3,177)         (2,188)          (8,409)                (209)      (13,983) 
                             -----------------  --------------  ---------------  -------------------  ------------ 
       Other information 
       Depreciation, 
        amortisation 
        and impairment                 (1,529)           (197)          (2,466)                 (16)       (4,208) 
       Capital additions                    78          22,441               79                    -        22,598 
                             -----------------  --------------  ---------------  -------------------  ------------ 
       Segment assets 
       Tangible and 
        intangible 
        assets                          27,985          73,000            4,703                   61       105,749 
       Investment in 
        associate                           47               -                -                    -            47 
       Deferred tax asset                8,975               -                -                    -         8,975 
       Abandonment fund                  1,297               -                -                    -         1,297 
       Trade and other 
        receivables                      3,123           1,882              285                   23         5,313 
       Inventories                         172               -                -                    -           172 
       Restricted cash                     889               -               57                    -           946 
       Cash                                577              97           17,177                   11        17,862 
                             -----------------  --------------  ---------------  -------------------  ------------ 
       Consolidated total 
        assets                          43,065          74,979           22,222                   95       140,361 
                             -----------------  --------------  ---------------  -------------------  ------------ 
       Segment liabilities 
       Trade and other 
        payables                       (8,979)         (8,738)            (802)                (101)      (18,620) 
       Borrowings                      (1,017)               -          (1,120)                    -       (2,137) 
       Deferred tax 
        liability                      (8,974)               -                -                    -       (8,974) 
       Lease liabilities                  (41)            (51)             (13)                    -         (105) 
       Provisions                      (3,562)               -                -              (2,752)       (6,314) 
                             -----------------  --------------  ---------------  -------------------  ------------ 
       Consolidated total 
        liabilities                   (22,573)         (8,789)          (1,935)              (2,853)      (36,150) 
                             -----------------  --------------  ---------------  -------------------  ------------ 
 
 
 
 
 
 
 
 
       Year ended 31 December            Management   Operating     Total 
        2019 
                                                IOM   Bahamas 
                                              $'000       $'000     $'000 
       Operating profit/(loss) 
        by geographical area 
 
       Net petroleum revenue                      -           -         - 
       Operating profit/(loss)              (3,157)     (1,446)   (4,603) 
       Other income                               1           -         1 
       Finance income                            39           -        39 
       Finance (charges)                       (48)        (21)      (69) 
                                        -----------  ----------  -------- 
       Profit/(loss) before 
        taxation                            (3,165)     (1,467)   (4,632) 
                                        -----------  ----------  -------- 
 
       Other information 
       Depreciation and amortisation           (24)       (214)     (238) 
       Capital additions                          3       2,091     2,094 
                                        -----------  ----------  -------- 
 
       Segment assets 
       Tangible and intangible 
        assets                                   43      50,756    50,799 
       Trade and other receivables              224         634       858 
       Restricted cash                           26           -        26 
       Cash                                  11,100          52    11,152 
                                        -----------  ----------  -------- 
       Consolidated total assets             11,393      51,442    62,835 
                                        -----------  ----------  -------- 
 
       Segment liabilities 
       Trade and other payables             (1,947)         (5)   (1,952) 
       Lease liabilities                       (28)       (177)     (205) 
       Consolidated total liabilities       (1,975)       (182)   (2,157) 
                                        -----------  ----------  -------- 
 

(*) Intercompany balances and transactions between Group entities have been eliminated.

(**) Sales revenues were derived from a single customer within each of these operating countries.

 
 3    Operating loss - Group                                       2020      2019 
     -------------------------------------------------------  ---------  -------- 
                                                                $ 000's   $ 000's 
      Operating loss is arrived at after charging: 
      Fees payable to the Company's auditors and its 
       associates for: 
      -the audit of the Company and Group financial 
       statements                                                   315        75 
      -non audit related services                                    48         1 
  Directors' emoluments - fees and benefits (*)                   1,693       711 
      Impairment of goodwill(**)                                  2,435         - 
  Depreciation (***)                                              1,660       239 
  Amortisation                                                      113         - 
 
   (*) See note 7 for further details. 
    (**) See note 10 for further details. 
    (***) Depreciation of certain oil and gas assets of $863K (2019: $-) 
    has been recognised within cost of sales. 
 
 
  Administrative expenses                           2020      2019 
 ---------------------------------------------  --------  -------- 
                                                 $ 000's   $ 000's 
 
  Staff costs - cash                               1,521     1,237 
  Staff costs - share settled (note 24)            1,425         - 
  Travel and accommodation                           206       318 
  Professional fees - cash                         3,324     1,576 
  Professional fees - share settled (note 24)      1,030         - 

  Depreciation and amortisation                      660       239 
  Share based payments                               360     1,048 
  Other                                            1,267       204 
  Total                                            9,793     4,622 
                                                --------  -------- 
 
 
 4    Employee information (excluding Directors')        2020      2019 
       - Group 
     ----------------------------------------------  --------  -------- 
                                                      $ 000's   $ 000's 
      Staff costs: 
  Wages and salaries - cash                             1,182       599 
      Wages and salaries - share settled (note 24)        433         - 
  IFRS 2 charges                                           43       744 
  Other staff costs                                       417       125 
                                                     --------  -------- 
  Total                                                 2,075     1,468 
                                                     --------  -------- 
 
 
  5    Taxation - Group                                                          2020          2019 
      --------------------------------------------------------------------  ---------  ------------ 
                                                                              $ 000's       $ 000's 
       Analysis of tax charge in the year 
       Tax charge on ordinary activities                                            9             - 
                                                                            ---------  ------------ 
 
       Factors affecting the tax charge for the year: 
  Loss on ordinary activities before tax                                       13,983         4,632 
  Standard rate of corporation tax in the IOM                                      -%            -% 
 
  Loss on ordinary activities multiplied by the                                     -             - 
   standard rate of corporation tax 
  Effects of: 
  Overseas tax on profits                                                           9             - 
  Current tax charge for the year                                                   9             - 
                                                                            ---------  ------------ 
 
 
                                                                                      Deferred tax: 
                             The net deferred tax balances solely relates to the Company's Trinidad 
                                operations. The components of the asset and liability for the years 
                                                  ended December 31, 2020 and 2019 were as follows: 
        Columbus acquisition balances:                                           2020          2019 
                                                                              $ 000's       $ 000's 
  Losses carried forward                                                        9,273             - 
  Leased property                                                                   1             - 
  Deferred tax asset recognised at acquisition                                  9,274             - 
   (note 15) 
  Adjustment to losses carried forward                                          (299)             - 
  Deferred tax asset                                                            8,975             - 
 
 
  Columbus acquisition balances: 
  Property and equipment                                                        9,273             - 
  Deferred tax liability recognised at acquisition                              9,273             - 
   (note 15) 
  Adjustment to property and equipment                                          (299)             - 
  Deferred tax liability                                                        8,974             - 
   Deferred tax assets arise on recognition of deferred tax liabilities 
    which arise on taxable temporary differences. As these temporary differences 
    unwind, release of the deferred tax liabilities creates a taxable profit 
    against which deferred tax assets are utilised. As at 31 December 2020, 
    the Group had an unrecognised deferred tax asset of $47.7m calculated 
    at 45.7% (weighted average across taxable entities) in respect of $100.5m. 
    The deferred tax asset was not recognised as there was insufficient 
    evidence to suggest that it would be recoverable in future periods. 
    The recognition of movements in deferred tax assets and deferred tax 
    liabilities in the statement of comprehensive income for the year have 
    given rise to a net charge of nil (2019: nil). 
  6    Dividends 
      --------------------------------------------------------------------------------------------- 
  During the year, no dividends were paid or proposed by the Directors 
   (2019: nil). 
 
 
 
 7    Directors' remuneration - Group 
     ------------------------------------------------- 
                                        2020      2019 
                                     $ 000's   $ 000's 
  Directors' remuneration              1,693       711 
                                    --------  -------- 
 
 
                                                                        Share based        *Share-settled 
                                Cash payments            Other             payments              payments      Total 
 --------------------------   ---------------  ---------------  -------------------  --------------------  --------- 
                                      $ 000's          $ 000's              $ 000's               $ 000's    $ 000's 
  2020 
  Executive Directors 
  Simon Potter                            450               24                   40                   739      1,253 
  Non-Executive Directors 
  William Schrader                         27                -                   28                    80        135 
  James Smith                              18                -                   18                    52         88 
  Adrian Collins                           21                -                   22                    61        104 
  Ross McDonald                            18                -                   18                    52         88 
  Leo Koot                                 17                -                    -                     8         25 
                              ---------------  ---------------  -------------------  --------------------  --------- 
                                          551               24                  126                   992      1,693 
                              ---------------  ---------------  -------------------  --------------------  --------- 
 
 * Represents the fair value of shares issued to directors during the year in settlement of 
  deferred salary and fees, less the total value of accrued salaries and fees on the date of 
  settlement. See note 24 for further details. 
 
                                                                           Deferred 
                                                                     remuneration -           Share based 
                                                 Cash payments                 cash              payments      Total 
 --------------------------   ---------------  ---------------  -------------------  --------------------  --------- 
                                                       $ 000's              $ 000's               $ 000's    $ 000's 
  2019 
  Executive Directors 
  Simon Potter                                             375                    -                    20        395 
  Non-Executive Directors 
  William Schrader                                           8                   37                    39         84 
  James Smith                                                6                   24                    25         55 
  Adrian Collins                                             6                   29                    33         68 
  Ross McDonald                                              6                   24                    25         55 
  Edward Shallcross                                          6                   24                    24         54 
                                               ---------------  -------------------  --------------------  --------- 
                                                           407                  138                   166        711 
                                               ---------------  -------------------  --------------------  --------- 
 
 
 
 
 
 
 8    Loss per share - Group 
     ---------------------------------------------------------------------------------- 
      The calculation of loss per share is based on the loss after taxation 
       divided by the weighted average number of shares in issue during the 
       year: 
                                                                        2020       2019 
                                                                  ----------  --------- 
  Loss for the year attributable to equity holders 
   of the parent company ($ 000's)                                  (13,992)    (4,632) 
 
  Weighted average number of ordinary shares used 
   in calculating basic loss per share (millions)                      2,895      1,725 
 
  Basic loss per share (expressed in cents)                            (0.5)     (0.27) 
   Diluted 
    Diluted loss per share is calculated by adjusting the weighted average 
    number of ordinary shares outstanding to assume conversion of all dilutive 
    potential ordinary shares. The Company had one category of dilutive 
    potential ordinary shares: share options/warrants. For these share 
    options/warrants, a calculation is performed to determine the number 
    of shares that could have been acquired at fair value (determined as 
    the average annual market share price of the Company's shares) based 

    on the monetary value of the subscription rights attached to outstanding 
    share options/warrants. The number of shares calculated as above is 
    compared with the number of shares that would have been issued assuming 
    the exercise of the share options/warrants. Share options/warrants 
    outstanding at the reporting date were as follows: 
 
 
                                                              2020          2019 
                                                      ------------  ------------ 
 Total share options and warrants in issue (number) 
  (see note 24)                                        486,159,599   200,357,073 
 
 

As the inclusion of potentially issuable ordinary shares would result in a decrease in the loss per share, they are considered to be anti-dilutive and as such, a diluted loss per share is not included.

 
 9    Finance costs/(income) - Group           2020      2019 
                                            $ 000's   $ 000's 
  Finance costs                                 628        69 
  Finance income - Interest received          (202)      (39) 
 
 
 
 10    Intangible assets - Group                                                                            2020 
      -----------------------------------------------------------   ---------  --------------------------------- 
                                                                     Goodwill    Exploration & evaluation assets 
                                                                      $ 000's                            $ 000's 
       Cost 
  As at 1 January 2020                                                      -                             50,570 
  Acquisition of Columbus Energy Resources PLC (note 15)                7,045                              2,492 
  Additions                                                                 -                             22,310 
       Foreign exchange difference on translation                           -                                  - 
                                                                    ---------  --------------------------------- 
  As at 31 December 2020                                                7,045                             75,372 
                                                                    ---------  --------------------------------- 
 
       Accumulated amortisation and impairment 
       As at 1 January 2020                                                 -                                  - 
  Amortisation                                                              -                                113 
       Impairment                                                       2,435                                  - 
       Foreign exchange difference on translation                           -                                  - 
                                                                    ---------  --------------------------------- 
  As at 31 December 2020                                                2,435                                113 
                                                                    ---------  --------------------------------- 
 
       Net book value 
  As at 31 December 2020                                                4,610                             75,259 
                                                                    ---------  --------------------------------- 
  As at 31 December 2019                                                    -                             50,570 
                                                                    ---------  --------------------------------- 
 
  Impairment review 
  The Directors carried out an impairment review of the intangible assets, including goodwill, 
   to determine whether the carrying value of these assets exceeded their fair value. This assessment 
   was undertaken by reference to various market data points and industry valuation standards, 
   including, where applicable, estimations of open market disposal values. Following this exercise, 
   the directors have determined that no impairment of exploration & evaluation assets is required 
   at the balance sheet date and an impairment of $2,435,000 has been recognised to goodwill 
   arising on acquisition at the balance sheet date, which has been recognised in the statement 
   of comprehensive income for the year. 
 
 
  Intangible assets - Group                                                2019 
 --------------------------------------------  -------------------------------- 
                                                Exploration & evaluation assets 
                                                                        $ 000's 
  Cost 
  As at 1 January 2019                                                   48,515 
  Additions                                                               2,055 
  Foreign exchange difference on translation                                  - 
                                               -------------------------------- 
  As at 31 December 2019                                                 50,570 
                                               -------------------------------- 
 
  Net book value 
  As at 31 December 2019                                                 50,570 
                                               -------------------------------- 
  As at 31 December 2018                                                 48,515 
                                               -------------------------------- 
 
 
 
 11    Tangible assets                                                                                      2020 
      --------------------------------------------  ------------------------------------------------------------ 
                                                                                          Group          Company 
                                           Oil and    Property,   Decommissioning         Total        Property, 
                                        gas assets    plant and             costs                      plant and 
                                                      equipment                                        equipment 
                                                            (*)                                              (*) 
                                           $ 000's      $ 000's           $ 000's       $ 000's          $ 000's 
       Cost or Valuation 
  As at 1 January 2020                           -          450                 -           450              100 
  Acquisition of Columbus 
   Energy Resources PLC 
   (note 15)                                23,412        1,671             1,994        27,077                - 
  Additions                                     59          169                 -           228               78 
  Disposals                                   (72)         (33)                 -         (105)              (1) 
  Foreign exchange difference 
   on translation                              (1)            1                 1             1                - 
                                      ------------  -----------  ----------------  ------------  --------------- 
  As at 31 December 2020                    23,398        2,258             1,995        27,651              177 
                                      ------------  -----------  ----------------  ------------  --------------- 
 
       Accumulated depreciation 
        and Impairment 
  As at 1 January 2020                           -          419                 -           419               84 
  Depreciation                               1,113          197               136         1,446               16 
  Disposals                                      -          (1)                 -           (1)              (1) 
  Foreign exchange difference 
   on translation                                2            1                 1             4                - 
                                      ------------  -----------  ----------------  ------------  --------------- 
  As at 31 December 2020                     1,115          616               137         1,868               99 
                                      ------------  -----------  ----------------  ------------  --------------- 
 
       Net book value 
  As at 31 December 2020                    22,283        1,642             1,858        25,783               78 
                                      ------------  -----------  ----------------  ------------  --------------- 
  As at 31 December 2019                         -           31                 -            31               16 
                                      ------------  -----------  ----------------  ------------  --------------- 
 
 
       Tangible assets                                                                                      2019 
      --------------------------------------------  ------------------------------------------------------------ 
                                                                                          Group          Company 
                                           Oil and    Property,   Decommissioning         Total        Property, 
                                        gas assets    plant and             costs                      plant and 
                                                      equipment                                        equipment 
                                                            (*)                                              (*) 
                                           $ 000's      $ 000's           $ 000's       $ 000's          $ 000's 
       Cost or Valuation 
  As at 1 January 2019                           -          464                 -           464               97 
  Additions                                      -            7                 -             7                3 

  Disposals                                      -         (21)                 -          (21)                - 
                                      ------------  -----------  ----------------  ------------  --------------- 
  As at 31 December 2019                         -          450                 -           450              100 
                                      ------------  -----------  ----------------  ------------  --------------- 
 
       Accumulated depreciation 
        and Impairment 
  As at 1 January 2019                           -          418                 -           418               75 
  Depreciation                                   -           20                 -            20                9 
  Disposals                                      -         (19)                 -          (19)                - 
  As at 31 December 2019                         -          419                 -           419               84 
                                      ------------  -----------  ----------------                --------------- 
 
       Net book value 
  As at 31 December 2019                         -           31                 -            31               16 
                                      ------------  -----------  ----------------  ------------  --------------- 
  As at 31 December 2018                         -           46                 -            46               22 
                                      ------------  -----------  ----------------  ------------  --------------- 
 
  (*) Property, plant and equipment includes leasehold improvements. 
 
 
 
 
 
 12    Right of use assets                                                           2020                   2020 
      ----------------------------------------------  ---------------------  ------------  --------------------- 
                                        Group leased   Group motor vehicles   Total Group         Company leased 
                                          properties                                                  properties 
                                             $ 000's                $ 000's       $ 000's                $ 000's 
       Cost 
  As at 1 January 2020                           355                     62           417                     42 
  Acquisition of Columbus 
   Energy Resources PLC 
   (note 15)                                      53                      -            53                      - 
  Additions                                       60                      -            60                      - 
       Foreign exchange                            -                      -             -                      - 
       difference on 
       translation 
                              ----------------------  ---------------------  ------------  --------------------- 
  As at 31 December 2020                         468                     62           530                     42 
                              ----------------------  ---------------------  ------------  --------------------- 
 
       Accumulated 
       depreciation 
  As at 1 January 2020                           206                     13           219                     15 
  Depreciation                                   192                     22           214                     15 
       Foreign exchange                            -                      -             -                      - 
       difference on 
       translation 
                              ----------------------  ---------------------  ------------  --------------------- 
  As at 31 December 2020                         398                     35           433                     30 
                              ----------------------  ---------------------  ------------  --------------------- 
 
       Net book value 
  As at 31 December 2020                          70                     27            97                     12 
                              ----------------------  ---------------------  ------------  --------------------- 
  As at 31 December 2019                         149                     49           198                     27 
                              ----------------------  ---------------------  ------------  --------------------- 
 
 
 
  Right of use assets                                              2019                                 2019 
 -----------------------  ----------------------  ---------------------  ----------------------------------- 
                                    Group leased   Group motor vehicles   Total Group         Company leased 
                                      properties                                                  properties 
                                         $ 000's                $ 000's       $ 000's                $ 000's 
  Cost 
  As at 1 January 2019                       353                     32           385                     42 
  Additions                                    2                     30            32                      - 
                          ----------------------  ---------------------  ------------ 
  As at 31 December 2019                     355                     62           417                     42 
                          ----------------------  ---------------------  ------------  --------------------- 
 
  Accumulated 
  depreciation 
  As at 1 January 2019                         -                      -             -                      - 
  Depreciation                               206                     13           219                     15 
                          ----------------------  ---------------------  ------------  --------------------- 
  As at 31 December 2019                     206                     13           219                     15 
                          ----------------------  ---------------------  ------------  --------------------- 
 
  Net book value 
  As at 31 December 2019                     149                     49           198                     27 
                          ----------------------  ---------------------  ------------  --------------------- 
  As at 31 December 2018                     353                     32           385                     42 
                          ----------------------  ---------------------  ------------  --------------------- 
 
 
 
 13   Investment in associate - Group                                              2020                     2019 
     --------------------------------------------------------------  ------------------  ----------------------- 
                                                                                $ 000's                  $ 000's 
      Cost 
      As at 1 January                                                                 -                        - 
      Acquisition of Columbus Energy Resources PLC                                   47                        - 
       (note 15) 
      As at 31 December                                                              47                        - 
                                                                     ------------------  ----------------------- 
 
      Challenger Energy Group PLC, the parent company of the Group, holds 
       25% of the share capital of the following company: 
               Company                Country of registration        Proportion held       Nature of business 
     --------------------------  --------------------------------  ------------------  ------------------------- 
      Indirect 
      Via Leni Trinidad 
       Ltd 
      Beach Oilfield                     Trinidad & Tobago                 25%           Oil and Gas Production 
       Limited                                                                               and Exploration 
                                                                                                 Company 
 
 
 
 14    Investment in subsidiaries                                               2020           2019 
      --------------------------------------------------------------  --------------  ------------- 
       Company                                                               $ 000's        $ 000's 
       Cost 
  As at 1 January                                                             29,560         29,560 
       Acquisition of Columbus Energy Resources PLC                           21,380              - 
        (note 15) 
       Disposals                                                                   -              - 
                                                                      --------------  ------------- 
  As at 31 December                                                           50,940         29,560 
                                                                      --------------  ------------- 
 
   Challenger Energy Group PLC, the parent company of the Group, holds 
    100% of the share capital of the following companies: 
  Company                          Country of      Proportion            Nature of business 
                                  registration         held 
 ----------------------------  -----------------  ------------  ----------------------------------- 
  Direct 
  BPC (A) Limited                 Isle of Man         100%                          Holding Company 
  BPC (B) Limited                 Isle of Man         100%                          Holding Company 
  BPC (C) Limited                 Isle of Man         100%                          Holding Company 
  BPC (D) Limited                 Isle of Man         100%                          Holding Company 
  BPC (A) Limited                   Bahamas           100%               Oil and Gas Production and 
                                                                                Exploration Company 
  Columbus Energy Resources     England & Wales       100%                          Holding Company 
   Limited 
 
  Indirect 

  BPC Limited                       Bahamas           100%                       Investment Company 
  BPC (B) Limited                   Bahamas           100%                       Investment Company 
  BPC (C) Limited                   Bahamas           100%                       Investment Company 
  BPC (D) Limited                   Bahamas           100%                       Investment Company 
  BPC (E) Limited                   Bahamas           100%                       Investment Company 
  Bahamas Offshore Petroleum        Bahamas           100%                       Investment Company 
   Ltd 
  Island Offshore Petroleum         Bahamas           100%                       Investment Company 
   Ltd 
  Sargasso Petroleum                Bahamas           100%                       Investment Company 
   Ltd 
  Privateer Petroleum               Bahamas           100%                       Investment Company 
   Ltd 
  Columbus Oil & Gas                Bahamas           100%                       Investment Company 
   Limited 
 
 
 
 
 
   Indirect 
   Columbus Energy Holdings         Cyprus       100%                 Holding Company 
    Ltd 
   Columbus Energy Resources      Netherlands    100%   Holding Company (for Suriname 
    South America B.V.                                                        Branch) 
 
   Via Columbus Energy 
    Holdings Ltd 
   Columbus Energy CPS              Cyprus       100%              Investment Company 
    (Cyprus) Ltd 
   Columbus Energy Byron            Cyprus       100%              Investment Company 
    Ltd 
   Columbus Energy (Cyprus)         Cyprus       100%              Investment Company 
    Ltd 
   Columbus Energy Investments      Cyprus       100%              Investment Company 
    Ltd 
 
   Via Columbus Energy 
    CPS (Cyprus) Ltd 
   Compañia Petrolifera         Spain       100%      Oil and Gas Production and 
    de Sedano S.L.U.                                              Exploration Company 
 
   Via Columbus Energy 
    Byron Ltd 
   Leni Gas and Oil US           United States   100%                 Dormant Company 
    Inc. 
 
   Via Columbus Energy 
    (Cyprus) Ltd 
   Columbus Energy (St             St Lucia      100%              Investment Company 
    Lucia) Ltd 
 
   Via Columbus Energy 
    (St Lucia) Ltd 
   Leni Trinidad Ltd              Trinidad &     100%      Oil and Gas Production and 
                                     Tobago                       Exploration Company 
   Columbus Energy Services       Trinidad &     100%    Oil and Gas Services Company 
    Ltd                              Tobago 
   Goudron E&P Ltd                Trinidad &     100%      Oil and Gas Production and 
                                     Tobago                       Exploration Company 
   Columbus Energy Bonasse        Trinidad &     100%      Oil and Gas Production and 
    Limited                          Tobago                       Exploration Company 
   Caribbean Rex Ltd               St Lucia      100%              Investment Company 
   Steeldrum Oil Company           St Lucia      100%              Investment Company 
    Inc 
   Steeldrum Petroleum            Trinidad &     100%              Investment Company 
    Group Ltd                        Tobago 
   FRAM Exploration (Trinidad)    Trinidad &     100%      Oil and Gas Production and 
    Ltd                              Tobago                       Exploration Company 
   Jasmin Oil & Gas Ltd           Trinidad &     100%      Oil and Gas Production and 
                                     Tobago                       Exploration Company 
   Cory Moruga Holdings           Trinidad &     100%      Oil and Gas Production and 
    Ltd                              Tobago                       Exploration Company 
   West Indian Energy             Trinidad &     100%    Oil and Gas Services Company 
    Group Ltd                        Tobago 
   T-REX Resources (Trinidad)     Trinidad &     100%      Oil and Gas Production and 
    Ltd                              Tobago                       Exploration Company 
 
 
 15   Business combination 
     --------------------- 
 
 
 Acquisition in 2020 
  On 7 August 2020, the Company completed a merger with Columbus Energy 
  Resources PLC, effected by means of a Court sanctioned scheme of arrangement 
  under Part 26 of the UK Companies Act 2006 (the "Scheme"). Pursuant 
  to the Scheme, a total of 757,261,511 new ordinary shares of the Company 
  were issued and allotted to holders of CERP shares. 
 
  Assets acquired and liabilities assumed 
 
  The fair values of the identifiable assets and liabilities of the Columbus 
  Energy Group as at the date of acquisition were: 
 
 
                                                                                  Fair value recognised on acquisition 
 Assets                                                                                                        $ 000's 
 Cash and cash equivalents                                                                                       1,039 
 Restricted cash                                                                                                   911 
 Trade and other receivables                                                                                     3,086 
 Inventories                                                                                                       154 
 Investment in associate (note 13)                                                                                  47 
 Right of use assets (note 12)                                                                                      53 
 Property, plant and equipment and decommissioning costs (note 11)                                               3,665 
 Oil and gas properties (note 11)                                                                               23,412 
 Intangible assets (note 10)                                                                                     2,492 
 Abandonment fund                                                                                                1,257 
 Deferred Tax Asset (note 5)                                                                                     9,274 
                                                                                 ------------------------------------- 
                                                                                                                45,390 
                                                                                 ------------------------------------- 
 Liabilities 
 Trade and other payables                                                                                     (12,281) 
 Lease liabilities (note 20)                                                                                      (56) 
 Provisions (Note 22)                                                                                          (6,169) 
 Borrowings                                                                                                    (3,276) 
 Deferred tax liability (note 5)                                                                               (9,273) 
                                                                                 ------------------------------------- 
                                                                                                              (31,055) 
                                                                                 ------------------------------------- 
 Total identifiable net assets at fair value                                                                    14,335 
                                                                                 ------------------------------------- 
 Goodwill (note 10)                                                                                              7,045 
 Purchase consideration transferred (shares issued at fair value)                                               21,380 
 
 Analysis of cash flows on acquisition 
 Net cash acquired with the subsidiary (included in cash flows from investing 
  activities)                                                                                                    1,039 
 Net cash flow on acquisition                                                                                    1,039 
 

The fair value of the trade receivables amounts to $251,973. The gross amount of trade receivables is $251,973 and it is expected that the full contractual amounts can be collected.

Goodwill arising on acquisition is attributable to the Group's enhanced strength following the creation of a portfolio of operations in varying jurisdictions and in various stages of the hydrocarbon value cycle.

From the date of acquisition, Columbus Energy Resources PLC contributed $1,417,000 of revenue and $4,149,000 of loss before tax from continuing operations of the Group. If the combination had taken place at the beginning of the year, revenue from continuing operations would have been $3,507,000 and loss before tax from continuing operations for the Group would have been $28,251,000.

 
 16    Trade and other receivables                                 2020                    2019 
      ----------------------------------------------------  ------------------  -------------------------- 
                                                               Group   Company     Group           Company 
                                                             $ 000's   $ 000's   $ 000's           $ 000's 
       Current trade and other 
        receivables 
       Trade and other receivables                               291         -         -                 - 
  VAT receivable (*)                                           1,468       101        48                48 
  Other receivables (**)                                       1,447        92        80                79 
  Prepayments                                                  2,092        45       729                97 

  Other deposits                                                  15         -         1                 - 
  Total                                                        5,313       238       858               224 
                                                            --------  --------  --------  ---------------- 
 
       Non-current trade and 
        other receivables 
       Escrow and Abandonment                                  1,297         -         -                 - 
        funds (***) 
  Loans due from subsidiaries 
   (****)                                                          -    83,839         -            66,721 
                                                            --------  --------  --------  ---------------- 
  Total                                                        1,297    83,839         -            66,721 
                                                            --------  --------  --------  ---------------- 
 
       (*) VAT receivable is stated at fair value, after expected credit loss 
        allowances totalling $139,000, which have been recognised in the year 
        (2019: nil). 
        (**) Other receivables predominantly comprises balances owing from 
        joint venture partners in Trinidad. 
        (***) Pursuant to certain production and exploration licences, the 
        Company is obligated to remit payments into an Escrow Fund and a separate 
        Abandonment fund based on production, amounts paid vary by licence. 
        The Company remits US$0.25 per barrel of crude oil sold (Escrow fund), 
        and between US$0.28 to US$1.00 (varying by licence) to an abandonment 
        fund and the funds will be used for the future abandonment of wells 
        in the related licenced area. 
        (****) The loans due from subsidiaries are interest free and repayable 
        on demand. At 31 December 2020 a loss allowance for expected credit 
        losses of $7,171,198, which have been recognised in the year (2019: 
        nil), was held in respect of the recoverability of amounts due from 
        subsidiary undertakings. 
 
 17    Restricted cash                                             2020                    2019 
      ----------------------------------------------------  ------------------  -------------------------- 
                                                               Group   Company     Group           Company 
                                                             $ 000's   $ 000's   $ 000's           $ 000's 
  Credit card security                                            77        27        26                26 
  Licence related bonds                                          469        30         -                 - 
       Bank deposits                                             400         -         -                 - 
                                                            --------  --------  --------  ---------------- 
  Total                                                          946        57        26                26 
                                                            --------  --------  --------  ---------------- 
 
 

Bank deposits consist of funds held as security for bank loans in Trinidad. Funds restricted against licence related bonds consist of $30,000 relating to the Group Uruguay licence and $439,000 relating to the Group's licences in Trinidad. Amounts held at the year end have been classified as current as they may be recovered at any point following cancellation of the associated corporate credit card facilities, discharge of the relevant licence obligation or cancellation of the relevant licence and repayment of the relevant bank loans.

 
 18   Inventories                           2020                            2019 
     --------------------------  --------------------------  ---------------------------------- 
                                    Group           Company             Group           Company 
                                  $ 000's           $ 000's           $ 000's           $ 000's 
      Crude Oil                        60                 -                 -                 - 
      Consumables                     112                 -                 -                 - 
                               ----------  ----------------  ----------------  ---------------- 
      Total                           172                 -                 -                 - 
                               ----------  ----------------  ----------------  ---------------- 
 
      The increase in inventories from the date of acquisition to the balance 
       sheet date recognised in the statement of comprehensive income for 
       the year is $18,000 (2019: nil). 
 
 
 
 19    Trade and other payables          2020                2019 
      --------------------------  ------------------  ------------------ 
                                     Group   Company     Group   Company 
                                   $ 000's   $ 000's   $ 000's   $ 000's 
       Current trade and other payables 
  Trade and other payables           5,353        72     1,161     1,159 
  Accruals                          13,267       432       791       787 
                                  --------  --------  --------  -------- 
  Total                             18,620       504     1,952     1,946 
                                  --------  --------  --------  -------- 
 
 
 
 
    Included in the above for the Group is $8,094,000 of payables relating 
    to exploration and evaluation activity in the year (2019: $1,059,000). 
 
 
 20    Lease liabilities                2020                2019 
      -------------------------  ------------------  ------------------ 
                                    Group   Company     Group   Company 
                                  $ 000's   $ 000's   $ 000's   $ 000's 
 
  As at 1 January                     205        28         -         - 
       Acquisition of Columbus         56         -         -         - 
        Energy Resources PLC 
        (note 15) 
  Additions                            60         -       417        42 
  Accretion of interest                17         1        23         2 
  Payments                          (233)      (16)     (235)      (16) 
                                 --------  --------  --------  -------- 
  As at 31 December                   105        13       205        28 
                                 --------  --------  --------  -------- 
  Current                             105        13       161        15 
  Non-current                           -         -        44        13 
 
 

Set out above are the carrying amounts of lease liabilities and the movements during the period.

The following are the amounts recognised in profit or loss:

 
  Lease liabilities                       2020                2019 
 --------------------------------  ------------------  ------------------ 
                                      Group   Company     Group   Company 
                                    $ 000's   $ 000's   $ 000's   $ 000's 
 
  Depreciation expense 
   of right-of-use assets               214        15       219        15 
  Interest expense on lease 
   liabilities                           17         1        23         2 
  Expense relating to short-term         13         -         -         - 
   leases 
  As at 31 December                     244        16       242        17 
                                   --------  --------  --------  -------- 
 
 

The Group has elected not to recognise right of use assets and lease liabilities for short term leases lease term of 12 months or less and leases for low value assets. The Group will recognise the payments associated with these leases as expenses on a straight-line basis over the lease term.

 
 21   Borrowings                 2020                2019 
     -------------------  ------------------  ------------------ 
                             Group   Company     Group   Company 
                           $ 000's   $ 000's   $ 000's   $ 000's 
      Current borrowings 
      Secured loan 2            27         -         -         - 
      Unsecured loan 3         249         -         -         - 
      Secured loan 4            17         -         -         - 
      Secured loan 5           132         -         -         - 
      Secured loan 6            62         -         -         - 
      Unsecured loan 7          11         -         -         - 
                          --------  --------  --------  -------- 
      Total                    498         -         -         - 
                          --------  --------  --------  -------- 
 
 
 
   Borrowings         2020                2019 
  -----------  ------------------  ------------------ 
                  Group   Company     Group   Company 
                $ 000's   $ 000's   $ 000's   $ 000's 
 
 
  Non-current borrowings 
  Convertible loan 1                                     1,120         1,120     -    - 
  Secured loan 2                                            54             -     -    - 
  Secured loan 4                                             6             -     -    - 
  Secured loan 5                                           200             -     -    - 
  Secured loan 6                                           259             -     -    - 
  Total                                                  1,639         1,120     -    - 
                                                  ------------  ------------  ----  --- 
 
  1 Bizzell convertible loan - On 29/30 December 2020, the Company drew 
   down GBP1.11m of a GBP3m first tranche of a convertible loan previously 
   agreed with Bizzell Capital Partners Pty Ltd. Tranche 1 has a face 
   value of GBP3m and total fair value, after deduction of all facility 
   costs, of GBP2.8m. The term of the loan is 3 years from the date of 
   draw down of each Tranche. The holder has the right, at any time prior 

   to maturity, to elect to convert the Notes (principal plus any accrued 
   interest) into fully paid ordinary shares in the Company. Initially, 
   the conversion price was set at a 25% premium to the price of the Company's 
   next capital raising (if any) or at 6p per share, whichever is the 
   lower. Subsequently, in February 2021 the conversion price was amended 
   by agreement to 0.8p per share. The fair value of the debt component 
   amounting to $1,120,000 has been recognised as a non-current financial 
   liability in non-current liabilities. The equity component to the facility 
   amounting to $396,000 has been recognised at fair value under equity 
   reserves. The remainder of the GBP3m Tranche 1 was fully drawn down 
   in 2021, with GBP2.5m of this amount converted into ordinary shares 
   in May 2021, leaving a remaining principal outstanding of GBP0.5m as 
   at the date of this report. 
 
  2 The loan was issued by RBC Royal Bank Limited in June 2015. Repayments 
   are over 7 years and the loan is denominated in Trinidad Dollars. 
 
  3 The loan was issued by BNP Paribas in 2015. In December 2016, the 
   outstanding balance of US$2.6m was refinanced and retired, and all 
   security was removed, leaving a final unsecured payment of US$0.25m 
   due on 31 December 2019. In November 2020 this loan balance was refinanced 
   with the outstanding balance to be repaid over one year commencing 
   in February 2021. The loan is denominated in US Dollars. 
   4 The loan was issued by Ansa Merchant Bank Limited in May 2018. Repayments 
   are over 4 years and the loan is denominated in Trinidad Dollars. 
   5 In December 2019 the Group drew down on a new working capital loan 
   facility with Republic Bank Limited. Repayments are over 3 years with 
   the final payment due in November 2022. The loan is denominated in 
   Trinidad Dollars. 
   6 In July 2019 the Group drew down on a new working capital loan facility 
   (New Sunchit Loan). Repayments are over 5 years with the final payment 
   due in June 2024. The loan is denominated in Trinidad Dollars. 
   7 In January 2020 the Group drew down on a new working capital facility 
   (Solution One). Repayments are over 1 year and the loans are denominated 
   in Trinidad Dollars. 
   The carrying amounts of all the borrowings approximate to their fair 
   value. 
 
 
  Net debt reconciliation                          Group 
 ------------------------------  ----------------------------------------- 
                                  Borrowings    Leases      Cash     Total 
                                     $ 000's   $ 000's   $ 000's   $ 000's 
 
  As at 1 January 2019                     -     (385)     2,221     1,836 
  Cashflows                                -       212     8,900     9,112 
  Acquisition - leases                     -      (30)         -      (30) 
  Foreign exchange adjustments             -         -        31        31 
  Other changes                            -       (2)         -       (2) 
                                 -----------  --------  --------  -------- 
  Net funds as at 31 December 
   2019                                    -     (205)    11,152    10,947 
                                 -----------  --------  --------  -------- 
 
  As at 1 January 2020                     -     (205)    11,152    10,947 
  Acquisition of Columbus 
   Energy Resources PLC 
   (note 15)                         (3,276)      (56)     1,039   (2,293) 
  Cash flows                           1,179       216     5,491     6,886 
  Acquisition - leases                     -      (60)         -      (60) 
  Foreign exchange adjustments          (40)         -       180       140 
                                 -----------  --------  --------  -------- 
  As at 31 December 2020             (2,137)     (105)    17,862    15,620 
                                 -----------  --------  --------  -------- 
 
 
 
  Net debt reconciliation                         Company 
 ------------------------------  ----------------------------------------- 
                                  Borrowings    Leases      Cash     Total 
                                     $ 000's   $ 000's   $ 000's   $ 000's 
 
  As at 1 January 2019                     -      (42)     2,181     2,139 
  Cashflows                                -        14     8,888     8,902 
  Foreign exchange adjustments             -         -        31        31 
                                 -----------  --------  --------  -------- 
  Net funds as at 31 December 
   2019                                    -      (28)    11,100    11,072 
                                 -----------  --------  --------  -------- 
 
  As at 1 January 2020                     -      (28)    11,100    11,072 
  Cash flows                         (1,120)        15     5,917     4,812 
  Foreign exchange adjustments             -         -       143       143 
                                 -----------  --------  --------  -------- 
  As at 31 December 2020             (1,120)      (13)    17,160    16,027 
                                 -----------  --------  --------  -------- 
 
 
 
    22      Provisions - Group 
           -------------------------------------------  ------------------  ------------------------------ 
                                                          Decommissioning*           Other           Total 
                                                                   $ 000's         $ 000's         $ 000's 
            At 1 January 2020                                            -               -               - 
            Acquisition of Columbus 
             Energy Resources PLC                                    5,226             943           6,169 
            New provisions and allocations                              26               4              30 
            Unwinding of discount                                       24               -              24 
            Foreign exchange difference 
             on translation                                             91               -              91 
            At 31 December 2020                                      5,367             947           6,314 
 
            *The provisions relates to the estimated costs of the removal of the 
             Spanish and Trinidadian production facilities and site restoration 
             at the end of the production lives of the facilities. Decommissioning 
             provisions in Trinidad have been subject to a discount rate of 6%, 
             expected cost inflation of 1.3% and assumes an average expected year 
             of cessation of production of 2032. Decommissioning provisions relating 
             to facilities in Spain are undiscounted and uninflated as the field 
             is no longer operating. 
             Other provisions 
             In one of the Group's Trinidadian subsidiaries, there are licence fees 
             and commitments relating to an exploration and production licence that 
             the subsidiary is expecting to settle by way of negotiation with the 
             Ministry of Energy and Energy Industries. These negotiations are continuing 
             in 2021. A provision has been recognised to reflect management's best 
             estimate of its obligation at balance sheet date. 
    23      Share capital - Group & Company 
           -------------------------------------------------------------------------------  ---------------- 
            Called up, allotted, issued and fully                Number of   Nominal value     Share premium 
             paid ordinary shares of 0.0002p each                   shares 
                                                                                   $ 000's           $ 000's 
   As at 1 January 2019                                      1,572,719,096              46            83,068 
                                                         -----------------  --------------  ---------------- 
   Shares issued at average price of 
    2.1p per share                                             120,000,000               4             2,356 
   Shares issued at average price of 
    2.6p per share                                             442,043,690              11            10,733 
   As at 31 December 2019                                    2,134,762,786              61            96,157 
   Shares issued at average price of 
    2.4p per share                                              48,000,000               1             1,454 
   Shares issued at average price of 
    2p per share                                                 3,250,000               -                82 
   Shares issued at average price of 
    1p per share                                                62,500,000               2               788 
   Shares issued at average price of 
    0.9p per share                                              79,059,830               2               914 
   Shares issued at average price of 
    1p per share                                               120,866,141               3              1472 
   Shares issued at average price of 
    2p per share                                                35,337,328               1               884 
   Shares issued at average price of 
    2.1p per share                                             868,888,792              23            24,220 
   Shares issued at average price of 
    2.6p per share                                              61,713,763               2             2,087 
   Shares issued at average price of 
    2.9p per share                                               5,429,206               -               205 
   Shares issued at average price of 
    2p per share                                               475,000,000              12            11,417 
   Shares issued at average price of 
    2p per share                                               154,552,357               4             1,190 
   Shares issued at average price of 

    2.9p per share                                               5,429,206               -               211 
   Shares issued at average price of 
    2.9p per share                                              35,759,140               1             1,412 
   Shares issued at average price of 
    2p per share                                               412,500,000              11            10,126 
   Shares issued at average price of 
    2p per share                                                 3,624,800               -                98 
   As at 31 December 2020                                    4,506,673,349             123           152,717 
                                                         -----------------  --------------  ---------------- 
                                                                 Number of   Nominal value     Share premium 
                                                                    shares 
                                                                                   $ 000's           $ 000's 
   As at 31 December 2019                                    2,134,762,786              61            96,157 
                                                         -----------------  --------------  ---------------- 
   As at 31 December 2020                                    4,506,673,349             123           152,717 
                                                         -----------------  --------------  ---------------- 
 
            During the year, 2,372 million shares were issued (2019: 562 
             million). 
        At the end of 2020, the number of shares in issue comprised 
         4,507 million ordinary shares. 
         During the year, transaction costs for issued share capital 
         totalled $1,887,859 (2019: $763,166), these amounts were allocated 
         to share premium. 
         The total authorised number of ordinary shares at 31 December 
         2020 and 2019 was 10,000,000,000 shares with a par value of 
         0.002 pence per share (2019: 5,000,000,000 shares). All issued 
         shares of 0.002 pence are fully paid. 
 
 
 
  Share capital - Group & Company - other reserves 
 ----------------------------------------------------------------  ------------ 
                            Merger reserve*   Reverse acquisition   Total other 
                                                         reserve*      reserves 
                                    $ 000's               $ 000's       $ 000's 
 As at 31 December 2019              77,131              (53,847)        23,284 
 As at 31 December 2020              77,131              (53,847)        23,284 
                           ----------------  --------------------  ------------ 
 
 

In 2008, BPC Jersey Limited acquired Falkland Gold and Minerals Limited ('FGML') via a reverse acquisition, giving rise to the reverse acquisition reserve. BPC Jersey Limited was the acquirer of FGML although FGML became the legal parent of the Group on the acquisition date. FGML subsequently changed its name to BPC Limited.

The merger reserve arose in 2010 as a result of the Group undergoing a Scheme of Arrangement which saw the shares in the then parent company BPC Limited replaced with shares in Challenger Energy Group PLC.

In the Company Financial Statements, the Other reserve balance of $29,535,463 (2019: 29,535,463) arises from the issue of shares in the Company as part of the Scheme of Arrangement undertaken in 2010, which saw the shares in the then parent company BPC Limited replaced with shares in Bahamas Petroleum Company PLC (then BPC PLC), which became the new parent company of the Group.

* In the Group financial statements to 31 December 2019, the Merger Reserve and Reverse Acquisition Reserve were presented as separate balances on the face of the consolidated statement of financial position. In these financial statements to 31 December 2020 the Merger Reserve and Reverse Acquisition reserve have been aggregated into Other Reserves for presentation on the consolidated statement of financial position.

 
 24   Share based payments 
       reserve - Group & Company 
     ---------------------------  ----  ---- 
 
 
 

A) Options and warrants

Share options have been granted to Directors, selected employees and consultants to the Company.

The Group had no legal or constructive obligation to repurchase or settle any options in cash. Movements in the number of share options and warrants outstanding during the year are as follows:

 
                       2020                                       2019 
    -----------------------------------------  ----------------------------------------- 
 
          Average exercise        No. Options        Average exercise        No. Options 
                 price per         & Warrants               price per         & Warrants 
                     share                                      share 
                   $ 000's            $ 000's                 $ 000's            $ 000's 
 
 
  At beginning of year       2.34p    200,357,073   2.22p     68,850,000 
  Cancelled                      -              -   2.22p   (68,850,000) 
  Granted                    2.87p    309,706,720   2.34p    200,357,073 
  Exercised                0.0072p   (23,904,194)       -              - 
                          --------  -------------  ------  ------------- 
  At end of year             2.76p    486,159,599   2.34p    200,357,073 
  Exercisable at end of 
   year                      1.97p    106,659,599   2.08p    100,357,073 
                          --------  -------------  ------  ------------- 
 

On 31 October 2019, all options in issue were cancelled by mutual consent with the option holders and new options issued as detailed below.

The weighted average remaining contractual life of the options and warrants in issue at 31 December 2020 is 2.46 years (31 December 2019: 4.32 years) and the weighted average exercise price of these instruments is 2.76 pence per share (31 December 2019: 2.34 pence). The range of exercise prices for options outstanding at 31 December 2020 is 2.0 pence to 4.0 pence (31 December 2019: 2.0 pence to 4.0 pence).

The expected price volatility used in calculating the fair value of options and warrants granted by the Company is determined based on the historical volatility of the Company share price (based on the remaining life of the options), adjusted for any expected changes to future volatility due to publicly available information.

The fair value of the warrants and options granted in the year was estimated using the Black Scholes model. The inputs and assumptions used in calculating the fair value of options granted in the year were as follows:

Warrants and options granted in 2020

 
 Name          Date          Share   Vesting         Number        Exercise   Expiry       Expected     Expected   Risk      Dividend   Fair 
                granted      price   date/criteria                  price      date        volatility    life       free      yield     value 
                             at                                     pence                                (years)    return              per 
                             date                                                                                                       option 
                             of                                                                                                         $ 
                             grant 
                             pence 
 Management 
  options 
  (Tranche 
  3)           14/08/2020    1.899   19/12/2020        8,700,000   2.800      14/08/2025   14%          0.53       (0.2%)    -          - 
              ------------  ------  --------------  ------------  ---------  -----------  -----------  ---------  --------  ---------  ------- 
 CERP 
  Management 
  nil cost 
  options      14/08/2020    1.899   17/08/2020       17,029,394   0.002      2024-2027    -            -          -         -          - 
              ------------  ------  --------------  ------------  ---------  -----------  -----------  ---------  --------  ---------  ------- 
 Gneiss 
  Energy 
  options      07/10/2020    1.939   07/10/2020        3,624,800   2.000      07/10/2022   35%          0.73       (0.01%)   -          $0.26 
              ------------  ------  --------------  ------------  ---------  -----------  -----------  ---------  --------  ---------  ------- 
 Management 
  options 
  (Tranche 
  2)           14/10/2020    2.300   14/10/2020       12,500,000   2.400      14/10/2025   35%          0.71       (0.04%)   -          $0.29 
              ------------  ------  --------------  ------------  ---------  -----------  -----------  ---------  --------  ---------  ------- 
 Management 
  options 
  (Tranche 
  3)           14/10/2020    2.300   19/12/2020        8,300,000   2.800      14/10/2025   14%          0.52       (0.04%)   -          - 
              ------------  ------  --------------  ------------  ---------  -----------  -----------  ---------  --------  ---------  ------- 
 Shore 
  Capital 
  warrants     15/10/2020    2.255   15/10/2020       17,052,526   2.000      15/10/2022   35%          0.71       (0.05%)   -          $0.51 
              ------------  ------  --------------  ------------  ---------  -----------  -----------  ---------  --------  ---------  ------- 
 Management 
  options 
  (Tranche 
  2)           30/11/2020    2.525   30/11/2020       12,500,000   2.400      30/11/2025   35%          0.58       (0.02%)   -          $0.30 
              ------------  ------  --------------  ------------  ---------  -----------  -----------  ---------  --------  ---------  ------- 
 1798 
  Volantis 
  Fund Ltd 
  options      13/12/2020    2.354   13/12/2020       93,750,000   3.000      13/12/2021   14%          0.55       (0.13%)   -          - 
              ------------  ------  --------------  ------------  ---------  -----------  -----------  ---------  --------  ---------  ------- 
 1798 
  Volantis 

  Fund Ltd 
  options      13/12/2020    2.354   13/12/2020       93,750,000   4.000      13/12/2021   14%          0.55       (0.13%)   -          - 
              ------------  ------  --------------  ------------  ---------  -----------  -----------  ---------  --------  ---------  ------- 
 Gneiss 
  Energy 
  options      21/12/2020    2.128   21/12/2020       37,500,000   2.000      21/12/2023   14%          0.52       (0.10%)   -          $0.20 
              ------------  ------  --------------  ------------  ---------  -----------  -----------  ---------  --------  ---------  ------- 
 Jordan fund 
  options      21/12/2020    2.128   21/12/2020        5,000,000   2.000      21/12/2023   14%          0.52       (0.10%)   -          $0.20 
              ------------  ------  --------------  ------------  ---------  -----------  -----------  ---------  --------  ---------  ------- 
                                                     309,706,720 
 -------------------------  ------  --------------  ------------  ---------  -----------  -----------  ---------  --------  ---------  ------- 
 

Warrants and options granted in 2019

 
 Name          Date          Share   Vesting         Number         Exercise   Expiry       Expected     Expected   Risk     Dividend   Fair 
                granted      price   date/criteria                   price      date        volatility    life      free      yield     value 
                             at                                      pence                                (years)   return              per 
                             date                                                                                                       option 
                             of                                                                                                         $ 
                             grant 
                             pence 
 Management 
  options 
  (Tranche 
  1)           31/10/2019    2.000   31/10/2019        50,000,000   2.220      31/10/2023   21%          0.67       0.51%    -          $0.08 
              ------------  ------  --------------  -------------  ---------  -----------  -----------  ---------  -------  ---------  ------- 
 Management 
  options 
  (Tranche 
  2)           31/10/2019    2.000   15/02/2020        50,000,000   2.400      31/10/2023   21%          0.67       0.51%    -          $0.04 
              ------------  ------  --------------  -------------  ---------  -----------  -----------  ---------  -------  ---------  ------- 
 Management 
  options 
  (Tranche 
  3)           31/10/2019    2.000   15/04/2020        50,000,000   2.800      31/10/2023   21%          0.67       0.51%    -          $0.01 
              ------------  ------  --------------  -------------  ---------  -----------  -----------  ---------  -------  ---------  ------- 
 Shore 
  Capital 
  warrants     22/03/2019    1.720   22/03/2019         7,200,000   1.600      22/03/2021   72%          1.27       0.66%    -          $0.77 
              ------------  ------  --------------  -------------  ---------  -----------  -----------  ---------  -------  ---------  ------- 
 Shore 
  Capital 
  warrants     11/11/2019    2.100   11/11/2019        13,157,073   2.100      11/11/2021   17%          0.64       0.57%    -          $0.22 
              ------------  ------  --------------  -------------  ---------  -----------  -----------  ---------  -------  ---------  ------- 
 Strand 
  Hanson 
  warrants     05/11/2019    2.000   05/11/2019         5,000,000   2.000      05/11/2021   18%          0.65       0.59%    -          $0.15 
              ------------  ------  --------------  -------------  ---------  -----------  -----------  ---------  -------  ---------  ------- 
 Bizzell 
  Capital 
  Partners 
  options      31/10/2019    2.000   31/10/2019         6,250,000   2.000      31/10/2023   21%          0.67       0.51%    -          $0.18 
              ------------  ------  --------------  -------------  ---------  -----------  -----------  ---------  -------  ---------  ------- 
 MH Carnegie 
  & Co 
  options      31/10/2019    2.000   31/10/2019        18,750,000   2.000      31/10/2023   21%          0.67       0.51%    -          $0.18 
              ------------  ------  --------------  -------------  ---------  -----------  -----------  ---------  -------  ---------  ------- 
                                                      200,357,073 
 -------------------------  ------  --------------  -------------  ---------  -----------  -----------  ---------  -------  ---------  ------- 
 

B) Salary and fee deferrals

On 17 December 2014, the Directors entered into an agreement for the deferral of 20% of their salary and fees on the following terms:

-- 20% of all directors' fees and the CEO's salary were forgone until the Board, having consulted with the relevant advisers to the Company, determines that the cost of an initial exploration well is fully funded on an unconditional basis (defined as the Company either securing a farm-in or securing capital via debt or equity or a combination of both in excess of $25 million, or any combination thereof) .

-- The value of fees/salary forgone accrued at the end of each month as an entitlement to ordinary shares in the Company.

-- The number of ordinary shares accrued was calculated as the value of fees/salary forgone divided by the volume weighted average closing price of the Company shares over each month.

-- The "accrued shares" shall only be issued to the directors once the Board, having consulted with the relevant advisers to the Company, determines that the cost of an initial exploration well is fully funded on an unconditional basis (defined as the Company either securing a farm-in or securing capital via debt or equity or a combination of both in excess of $25 million, or any combination thereof).

   --      The agreement is effective for all parties from 1 October 2014. 

On 1 April 2016, the Directors entered into a further agreement for the deferral of 50% of their fees and the CEO entered into an agreement for the deferral of 90% of his salary on the following terms:

-- 50% of all directors' fees and 90% of the CEO's salary are to be forgone until the Board, having consulted with the relevant advisers to the Company, determines that the cost of an initial exploration well is fully funded on an unconditional basis (defined as the Company either securing a farm-in or securing capital via debt or equity or a combination of both in excess of $25 million, or any combination thereof) .

-- The value of Directors fees forgone shall accrue at the end of each month as an entitlement to ordinary shares in the Company.

-- 50% of the value of the CEO's salary forgone shall accrue at the end of each month as an entitlement to ordinary shares in the Company.

-- 50% of the value of the CEO's salary forgone shall be repayable in cash once the Board, having consulted with the relevant advisers to the Company, determines that the cost of an initial exploration well is fully funded on an unconditional basis (defined as the Company either securing a farm-in or securing capital via debt or equity or a combination of both in excess of $25 million, or any combination thereof) .

-- Receipt of the CEO's forgone salary is conditional on his continued employment by the Group up to the completion of a farm-out or other well financing arrangement as detailed above.

-- All of the CEO share entitlements accrued under the agreement entered into on 1 October 2014 were forgone.

-- The number of ordinary shares accruing shall be calculated as the value of fees/salary forgone divided by the volume weighted average closing price of the Company shares over each month.

-- The "accrued shares" shall only be issued to the directors once the Board, having consulted with the relevant advisers to the Company, determines that the cost of an initial exploration well is fully funded on an unconditional basis (defined as the Company either securing a farm-in or securing capital via debt or equity or a combination of both in excess of $25 million, or any combination thereof).

-- The agreement is effective for all parties from 1 April 2016 and, in the case of the CEO, supersedes the agreement entered into on 17 December 2014.

On 1 January 2018 the Directors (excluding the CEO) entered into a further agreement for the deferral of 90% of their fees on the following terms:

-- 90% of all directors' fees are to be forgone until the Board, having consulted with the relevant advisers to the Company, determines that the cost of an initial exploration well is fully funded on an unconditional basis (defined as the Company either securing a farm-in or securing capital via debt or equity or a combination of both in excess of $25 million, or any combination thereof) .

-- 50% of the value of the directors' fees forgone shall accrue at the end of each month as an entitlement to ordinary shares in the Company.

-- 50% of the value of the directors' fees forgone shall be repayable in cash once the Board, having consulted with the relevant advisers to the Company, determines that the cost of an initial exploration well is fully funded on an unconditional basis (defined as the Company either securing a farm-in or securing capital via debt or equity or a combination of both in excess of $25 million, or any combination thereof) .

-- The number of ordinary shares accruing shall be calculated as the value of fees/salary forgone divided by the volume weighted average closing price of the Company shares over each month.

-- The "accrued shares" shall only be issued to the directors once the Board, having consulted with the relevant advisers to the Company, determines that the cost of an initial exploration well is fully funded on an unconditional basis (defined as the Company either securing a farm-in or securing capital via debt or equity or a combination of both in excess of $25 million, or any combination thereof).

From 1 July 2018 the ongoing deferral of the CEO's salary into conditional share entitlements ceased, resulting in no further share-based payment charges arising as regards the CEO salary from that date. See note 23 for further details.

On 15 October 2020, the Board determined that the criteria for cessation and settlement of all deferred fees, namely the raising of at least $25m in funding for the Perseverance 1 well, had been met. Furthermore, the Board elected to novate all deferred fees that were to be settled in cash into a shares. Consequently, all deferred fees and salaries by directors and executive management were settled through the issuance of 146,818,765 new ordinary shares in the Company. See note 27 for further details.

Under IFRS 2, entitlements to ordinary shares under the above agreements constitute the issuance of equity settled share-based payment instruments with the following terms:

-- Each month of deferred fee entitlements is treated as a separate grant of options with the date of grant being the first day of the month.

-- The fair value of the options at grant is estimated as the share price on the date of grant.

   --      Options awarded each month vest at the end of that month. 

The value of the instruments has been estimated and is being charged to the statement of total comprehensive income in monthly tranches as each month's award of options vest.

Following approval by the Company shareholders at the AGM held on 17 September 2019, conditional entitlements to 21,300,000 shares in the Company were granted to consultants in the prior year in lieu of fees. All conditions associated with these entitlements were identical to those granted to the Directors in the prior year. The fair value of these instruments were estimated by reference to the agreed value of services received by the Group.

The value of the instruments has been estimated and is being charged to the statement of total comprehensive income in monthly tranches as each month's award of options vest, up to 30 September 2020, being the effective settlement date of the deferred pay arrangements.

C) Expense arising from share-based payment transactions

Total expense arising from equity-settled share-based payment transactions:

 
                            2020      2019 
----------------------  --------  -------- 
                         $ 000's   $ 000's 
 Options and warrants        274       190 
 Salary deferrals             86       858 
 Total                       360     1,048 
                        --------  -------- 
 

The above charges in relation to share-based payments include $126,614 relating to Directors (2019: $166,393), $43,577 related to staff and consultants (2019: $744,311), $177,237 relating to warrants granted to the Company's advisors (2019: $92,016) and $12,049 (2019: $45,404) relating to options granted to potential providers of conditional convertible note finance.

 
 Share settled payments                              2020      2019 
-----------------------------------------------  --------  -------- 
                                                  $ 000's   $ 000's 
 
 Professional advisory fees*                        2,245         - 
 Issuance of shares in satisfaction of deferred     1,425         - 
  salaries** 
                                                 --------  -------- 
 Total                                              3,670         - 
                                                 --------  -------- 
 

* Represents the fair value of shares issued to various advisors in lieu of cash for their fees in the acquisition of Columbus by the Company on 7 August 2020. Further shares were issued to advisors following the share placements on 8 October 2020 and 17 December 2020. The fair value of these shares has been calculated based on the number of shares issued and the market price of the Company shares on the date of issuance. These expenses have been recognised in the Group statement of comprehensive income under "Professional fees - share settled" within Administrative expenses. These transactions do not fall within the scope of IFRS 2, Share based payments.

** Represents the fair value of shares issued to directors and staff during the year in settlement of deferred salary and fees, less the total value of accrued salaries and fees on the date of settlement. The fair value of these shares has been calculated based on the number of shares issued and the market price of the Company shares on the date of issuance. Accruals for deferred salary and fees had been recognised based on the value of contractual payments forgone. The excess of the fair value of these shares issued over the total accrued costs for deferred salary and fees to the date of settlement has been recognised in the Group statement of comprehensive income under "Staff costs - share settled" within Administrative expenses. These transactions do not fall within the scope of IFRS 2, Share based payments.

The table below discloses the total share-based payment charges for the year included in the statement of comprehensive income by expense category.

 
                         2020      2019 
-------------------  --------  -------- 
                      $ 000's   $ 000's 
 Staff costs              171       195 
 Professional fees        177       808 
 Finance costs             12        45 
 Total                    360     1,048 
                     --------  -------- 
 
 
 25     Financial instruments and risk management - Group & Company 
       ----------------------------------------------------------------------------------------------------------- 
           The Group's activities expose it to a variety of financial risks: oil 
            price, liquidity, interest rate, foreign exchange, credit and capital 
            risk. The Group's overall risk management programme focuses on minimising 
            potential adverse effects on the financial performance of the Group. 
 
            Risk management is carried out by the CEO under policies approved by 
            the Board of Directors. The CEO identifies, evaluates and addresses 
            financial risks in close cooperation with the Group's management. The 
            Board provides principles for overall risk management, as well as policies 
            covering specific areas, such as mitigating foreign exchange risk, 
            interest rate risk, credit risk and investing excess liquidity. 
            The Group uses financial instruments comprising cash, and debtors/creditors 
            that arise from its operations. The net fair value of financial assets 
            and liabilities approximates the carrying values disclosed in the financial 
            statements. The financial assets comprise cash balances in bank accounts 
            at call. 
        Oil Price Risk 
        Subsequent to the acquisition of the Columbus Energy Resources PLC 
         in August 2020, the Group has been exposed to commodity price risk 
         regarding its sales of crude oil which is an internationally traded 
         commodity. The Group sales prices are based on West Texas Intermediate 
         (WTI) for sales in Trinidad. The pricing of Group oil sales in Trinidad 
         is set by the state oil company Heritage. The Group does not take out 
         hedging instruments for changes in oil prices, with the risks to Group 
         cashflows associated with changes in the oil price obtained from Heritage 
         being mitigated by controls over elective costs of well workovers and 
         other such production enhancing expenditure. 
        The spot prices per barrel for WTI are shown below: 
                                       2020                                                 2019 
        -----------------------------------------------------------------  ------------------------------------- 
                                       Low       Average             High   Low             Average         High 
                                       US$           US$              US$   US$                 US$          US$ 
 WTI                                 35.79         42.00            49.10   n/a                 n/a          n/a 
 
 
 
 
     The below shows the Group's 2020 revenue sensitivity (gross of royalty 
     deductions) to an average price that is up to 30% lower and up to 30% 
     higher than the average price for that year: 
 
 
                      Decrease             Current            Increase 
                                                    ---------------------------- 
                 30%       20%       10%                 10%       20%       30% 
             $ 000's   $ 000's   $ 000's   $ 000's   $ 000's   $ 000's   $ 000's 
 Trinidad      1,253     1,432     1,611     1,790     1,969     2,148     2,327 
 Total         1,253     1,432     1,611     1,790     1,969     2,148     2,327 
            --------  --------  --------  --------  --------  --------  -------- 
 
 
 
 
  Liquidity risk 
     The Group monitors its rolling cash flow forecasts and liquidity requirements 
      to ensure it has sufficient cash to meet its operational needs. Surplus 
      cash is invested in interest bearing current accounts and money market 
      deposits. 
      Future funding requirements 
      The Group's ability to meet all of its anticipated obligations over 
      the 12 months from the date of this report is, however, dependent on 
      the ability to secure access to additional funding. The Group currently 
      estimates that it has a need for approx. $15 million in additional 

      funding in order to continue to meet its obligations as and when they 
      fall due over the 12 months from the date of this report. This includes 
      meeting routine operating costs, undertaking certain planned work program 
      activities, and also includes settlement of final remaining payments 
      to suppliers and finance providers from the drilling campaigns for 
      both the Perseverance-1 well in The Bahamas and the Saffron-2 well 
      in Trinidad. 
 
      In order to meet this funding requirement, the Group has been and continues 
      to evaluate a number of potential funding options. This includes a 
      potential a $10 million convertible loan note facility with Arena Investors 
      LP, consideration of Reserve-Based Lending options, the potential disposal 
      of certain assets for cash, potential farming out of an interest in 
      certain of the Group's exploration and/or production licences which 
      would result in some cash inflows and funding of work program plans 
      in relation to those assets, possible further issuances of securities 
      and/or debt instruments for cash, agreeing payment plans for the deferral 
      of outstanding obligations to suppliers and finance providers, and/or 
      settlement of all or part of outstanding obligations to suppliers and 
      finance providers in equity shares. 
      As at the date of this report, the Group remains actively engaged in 
      developing and reviewing all of the above potential sources of additional 
      funding. At the same time, the Group is undertaking work necessary 
      to materially reduce overhead and general operating costs, whilst at 
      the same time maximising production revenues from existing producing 
      oil fields, in the expectation of being able to generate surplus operating 
      cashflows in the 12 months from the date of this report, which surplus 
      cashflows could then be applied towards the Group's overall funding 
      requirements. 
 
      While there can be no certainty as to the availability of funding, 
      given the range of funding options available, and given the Group's 
      track record in being able to secure funding as and when required, 
      the Group is confident that it will be able to successfully conclude 
      one or any combination of the above-noted funding options, as well 
      as maximise production cashflows and actively manage the schedule of 
      cash outflows, such that the Group will be able to continue to meet 
      its financial obligation as and when they fall due for the 12 months 
      following the date of this report. As a consequence, the Directors 
      are satisfied that the Group will be able to continue to meet its financial 
      obligation as they fall due for the 12 months following the date of 
      this report. 
      Financial liabilities 
      The Group's financial liabilities comprise its trade and other payables 
      and lease liabilities. Trade and other payables all fall due within 
      1 year and it is the Group's payment policy to settle amounts in accordance 
      with agreed terms which is typically 30 days. 
 
      The tables below analyse the Group's financial liabilities into relevant 
      maturity groupings based on their contractual maturities for all non-derivative 
      financial liabilities. The amounts disclosed in the table are the contractual 
      undiscounted cash flows. Balances due within 12 months equal their 
      carrying balances, because the impact of discounting is not significant. 
          Contractual        Less        6 to 12      Between      Between         Total         Carrying 
          maturities         than        months       1 and 2      2 and 5      contractual       amount 
          of financial         6         $ 000's       years        years          cash           $ 000's 
          liabilities       months                    $ 000's      $ 000's       outflows 
          at 31             $ 000's                                               $ 000's 
          December 
          2020 - Group 
          Trade and 
           other 
           payables          18,620            -            -            -           18,620        18,620 
                        -----------  -----------  -----------  -----------  ---------------  ------------ 
          Lease 
           liabilities           41           52           12            -              121           105 
                        -----------  -----------  -----------  -----------  ---------------  ------------ 
          Borrowings          1,132          486          198          321            2,280         2,137 
                        -----------  -----------  -----------  -----------  ---------------  ------------ 
          Total              19,793          538          210          321           21,021        20,862 
                        -----------  -----------  -----------  -----------  ---------------  ------------ 
 
 
          Contractual        Less        6 to 12      Between      Between         Total         Carrying 
          maturities         than        months       1 and 2      2 and 5      contractual       amount 
          of financial         6         $ 000's       years        years          cash           $ 000's 
          liabilities       months                    $ 000's      $ 000's       outflows 
          at 31             $ 000's                                               $ 000's 
          December 
          2020 - 
          Company 
          Trade and 
           other 
           payables             505            -            -            -              505           505 
                        -----------  -----------  -----------  -----------  ---------------  ------------ 
          Lease 
           liabilities            8            5            -            -               13            13 
                        -----------  -----------  -----------  -----------  ---------------  ------------ 
          Borrowings          1,120            -            -            -            1,120         1,120 
                        -----------  -----------  -----------  -----------  ---------------  ------------ 
          Total               1,633            5            -            -            1,638         1,638 
                        -----------  -----------  -----------  -----------  ---------------  ------------ 
 
 
          Contractual        Less        6 to 12      Between      Between         Total         Carrying 
          maturities         than        months       1 and 2      2 and 5      contractual       amount 
          of financial         6         $ 000's       years        years          cash           $ 000's 
          liabilities       months                    $ 000's      $ 000's       outflows 
          at 31             $ 000's                                               $ 000's 
          December 
          2019 - Group 
          Trade and 
           other 
           payables           1,952            -            -            -            1,952         1,952 
                        -----------  -----------  -----------  -----------  ---------------  ------------ 
          Lease 
           liabilities          125           50           27            3              225           205 
                        -----------  -----------  -----------  -----------  ---------------  ------------ 
 
          Total               2,077           50           37           13            2,177         2,157 
                        -----------  -----------  -----------  -----------  ---------------  ------------ 
 
      Contractual        Less        6 to 12      Between      Between         Total         Carrying 
       maturities         than        months       1 and 2      2 and 5      contractual       amount 
       of financial         6         $ 000's       years        years          cash           $ 000's 
       liabilities       months                    $ 000's      $ 000's       outflows 
       at 31             $ 000's                                               $ 000's 
       December 
       2019 - 
       Company 
       Trade and 
        other 
        payables           1,946            -            -            -            1,946         1,946 
                     -----------  -----------  -----------  -----------  ---------------  ------------ 
       Lease 
        liabilities            8            7           13            -               28            28 
                     -----------  -----------  -----------  -----------  ---------------  ------------ 
 
       Total               1,954            7           13            -            1,974         1,974 
                     -----------  -----------  -----------  -----------  ---------------  ------------ 
   Interest rate risk 
   The Group's strategy for managing cash is to maximise interest income 
   whilst ensuring its availability to match the profile of the Group's 
   expenditure. This is achieved by regular monitoring of interest rates 
   and monthly review of expenditure forecasts. 
   The Group's exposure to interest rate risk relates to the Group's cash 
   deposits which are linked to short term deposit rates and therefore 
   affected by changes in bank base rates. At 31 December 2020 short term 
   deposit rates were in the range of 0% to 0.5% (31 December 2019: 0% 
   to 2.38%) and therefore the interest rate risk is not considered significant 
   to the Group. An increase in interest rate of 0.25% in the year would 
   have had an insignificant effect on the Group's loss for the year and 
   the prior year. 
   Group borrowings are at fixed interest rates and therefore do not present 
   an interest rate risk. 
   Foreign currency risk 
  The Group operates internationally and therefore is exposed to foreign 
   exchange risk arising from currency exposures, primarily with regard 
   to UK Sterling, Trinidad Dollars and Euros (2019: UK Sterling only). 

   The Company has a policy of not hedging foreign exchange and therefore 
   takes market rates in respect of currency risk; however it does review 
   its currency exposures on an ad hoc basis. Currency exposures relating 
   to monetary assets held by foreign operations are included within the 
   foreign exchange reserve in the Group statement of financial position. 
   The following table details the Group's sensitivity to a 10% increase 
   and decrease in the US Dollar against the relevant foreign currencies 
   of Pound Sterling, Euro and Trinidadian Dollar. 10% represents management's 
   assessment of the reasonably possible change in foreign exchange rates. 
   The sensitivity analysis includes only outstanding foreign currency 
   denominated investments and other financial assets and liabilities 
   and adjusts their translation at the year-end for a 10% change in foreign 
   currency rates. The table below sets out the potential exposure, where 
   the 10% increase or decrease refers to a strengthening or weakening 
   of the US Dollar: 
                                  Profit or loss sensitivity                        Equity sensitivity 
                                  10% increase           10% decrease          10% increase           10% decrease 
                                       $ 000's                $ 000's               $ 000's                $ 000's 
  Euro                                      17                   (21)                   249                  (304) 
  Pounds Sterling                           63                   (77)                    21                   (26) 
  Trinidad Dollar                          243                  (297)                   331                  (404) 
                         ---------------------  ---------------------  --------------------  --------------------- 
  Total                                    323                  (395)                   601                  (734) 
                         ---------------------  ---------------------  --------------------  --------------------- 
 
    At 31 December 2019, if the US Dollar currency had weakened/strengthened 
    by 10% against UK Sterling with all other variables held constant, 
    post-tax losses for the year and total equity would have been reduced/increased 
    by approximately $59,000, mainly as a result of foreign exchange gains/losses 
    on translation of UK Sterling denominated bank balances. 
    Rates of exchange to $1 used in the financial statements were as follows: 
 
                             As at 31 December            Average for     As at 31 December            Average for 
                                          2020           the relevant                  2019           the relevant 
                                                         consolidated                                 consolidated 
                                                  year to 31 December                          year to 31 December 
                                                                 2020                                         2019 
  Euro                                   0.814                  0.842                   n/a                    n/a 
  Pounds Sterling                        0.734                  0.761                 0.762                    n/a 
  Trinidad Dollar                        6.762                  6.780                   n/a                    n/a 
                         ---------------------  ---------------------  --------------------  --------------------- 
 
 

The Group holds cash as a liquid resource to fund the obligations of the Group. The Group's cash balances are held in various currencies.

The currency profile of the financial assets is as follows:

 
 Cash and short-term deposits       2020      2019 
                                --------  -------- 
                                 $ 000's   $ 000's 
 Sterling                            723    10,812 
 Euros                                 3         - 
 US Dollars                       16,733       340 
 Trinidad Dollars                    403         - 
                                --------  -------- 
 Total                            17,862    11,152 
                                --------  -------- 
 
 
    The Group also has operations denominated in the Bahamian Dollar. As 
     the Bahamian Dollar is pegged to the US Dollar on a one for one basis 
     these operations do not give rise to any currency exchange exposures. 
     Credit risk 
 Credit risk is managed on a Group basis. Credit risk arises from prepayments 
  to suppliers for services, cash and cash equivalents, restricted cash 
  and funds held in escrow and abandonment funds. For prepayments made 
  to suppliers, all suppliers are reviewed to assess the credit risk 
  presented before entering into contractual relationships that give 
  rise to prepaid balances. For banks and financial institutions, only 
  independently rated parties with a minimum rating of 'A' are accepted. 
  In order to mitigate credit risk arising from cash balances the Group 
  holds cash reserves with more than one counterparty. Funds in escrow 
  and abandonment funds are held with the Government of Trinidad and 
  Tobago and so are not considered to be subject to a material level 
  of credit risk. 
  For the Company, credit risk also arises on recoverability of loans 
  due from subsidiary undertakings. Management assesses and manages these 
  risks through regular budgeting and performance analysis. 
  The Group applies the IFRS 9 simplified approach to measuring expected 
  credit losses which uses a lifetime expected loss allowance for all 
  trade receivables and contract assets. 
 
 
      Capital risk management 
      Capital is defined by the Group as all equity reserves, including share 
       capital and share premium. The Group's objectives when managing capital 
       are to safeguard the Group's ability to continue as a going concern 
       in order to provide returns for shareholders and benefits for other 
       stakeholders and to maintain an optimal capital structure to support 
       the Group's business operations and maximise shareholder value. The 
       Group is not subject to any externally imposed capital requirements. 
 26   Commitments and contingencies - Group & Company 
     ---------------------------------------------------------------------------------- 
          Contingencies 
           As at 31 December 2020, one of the Group companies, FRAM Exploration 
           (Trinidad) Ltd, has been named as a defendant in an ongoing matter 
           in the High Court of Trinidad and Tobago in place since 2019. The Group's 
           exposure, in the event of an unsuccessful defence of the claim, is 
           estimated to be in the region of $0.7m to $0.9m, referable to the sums 
           claimed, interest and legal costs. The Group has filed a counterclaim 
           which, if successful, will reduce the Group's liability without fully 
           extinguishing it. The parties to the claims are in the process of settlement 
           discussions, which are scheduled for a case management conference before 
           a judge in February 2022. The matter has not been concluded and its 
           outcome cannot be reliably estimated at this stage. In accordance with 
           International Accounting Standards (IASs) - 10 and 37, no provision 
           has been made in these financial statements in relation to this matter. 
 
           Other than as set out above, as at 31 December 2020 and 2019, the 
           Group and Company had no contingent liabilities that require disclosure 
           in these financial statements. 
 
           Expenditure commitments 
           On 21 February 2019, the Group received notification from the Bahamian 
           Government of the extension of the term of its four southern licences 
           to 31 December 2020, with the requirement that the Group commence an 
           exploration well before the end of the extended term. In November 2020 
           the term of the licence period was extended to 30 June 2021 following 
           the outbreak of the global Covid-19 pandemic and the declaration of 
           the Group of force majeure under the terms of its licences. On 20 December 
           the Group commenced the drilling of its licence obligation well in 
           the Bahamas, Perseverance 1, which was completed on 7 February 2021. 
           In March 2021 the Company formally notified the Government of the Bahamas 
           that it was renewing the four southern offshore exploration licences 
           for a further three year period, having discharged its obligations 
           under the previous licence term. The Group remains in discussions with 
           the Government over the terms of the renewal of these licences and, 
           once formally renewed, will have the obligation to commence a further 
           exploration well in the licence area before the expiry of the next 
           three year term. 
 
           In June 2020, the Group was notified by ANCAP, the Uruguayan state 
           oil company, of the award of the OFF-1 licence block offshore Uruguay. 
           Formal issuance of the licence remains outstanding due to the impact 
           of Covid-19 on the functions of the state in Uruguay, however once 
           the licence has been formally issued the Group will have a commitment 
           to undertake various technical investigations over the licence block 
           before the expiry of the four year licence term. The Group estimates 
           the total cost of these work obligations to be approx. $0.8 million 
           over this period. 
 
           The Group holds an onshore licence for the exploration for and production 
           of hydrocarbons in Suriname. Under the terms of this licence, the Group 
           is obliged to undertake an extended well test in the licence area by 

           October 2022, the costs of which are estimated to be approx. $0.7 million. 
 
         The Group has an obligation under one of its licences in Trinidad to 
          drill 5 wells in this licence area before the expiry of the current 
          term on 31 December 2021. The Group is in discussions with the licensor 
          in relation to the renewal of this licence and expects these obligations 
          to be commuted and form part of the broader work program requirements 
          of the renewed licence term. The Group has no other material work obligations 
          under the terms of its licences in Trinidad. 
         Annual licence rental commitments 
          The Group is required under its Bahamian exploration licences to remit 
          annual rentals in advance to the Government in respect of the licenced 
          areas. 
 
          On 21 February 2019 the Group was notified by the Government of The 
          Bahamas that the term of its four southern licences had been extended 
          to 31 December 2020. In November 2020, the term of the licence period 
          was extended to 30 June 2021 following the outbreak of the global Covid-19 
          pandemic , being a force majeure event under the terms of its licences. 
 
          On 27 February 2020, the Company advised that, consequent on the granting 
          of Environmental Authorisation for the Perseverance #1 well, the Company 
          and the Government of The Bahamas had agreed a process seeking a final 
          agreement on the amount of licence fees payable for the balance of 
          the second exploration period (including the additional period of time 
          to which the licence period was extended as a result of force majeure). 
          At the time, the parties entered into discussions with a view to finalising 
          this outstanding matter. This discussion has been delayed owing to 
          the State of Emergency declared and ongoing business disruption caused 
          by the national response to the Covid-19 outbreak in The Bahamas. However, 
          subject to said confirmation, the Company expects that an appropriate 
          side-letter agreement will be finalised in due course. 
 
          In March 2021 the Company formally notified the Government of The Bahamas 
          that it was renewing the four southern offshore exploration licences 
          for a further three year period, having discharged its obligations 
          under the previous licence term. The Group remains in discussions with 
          the Government over the terms of the renewal of these licences, which 
          will include agreement on the level of annual rental fees payable over 
          the renewed term. 
 
          In June 2021 the Group formally notified the Government of the Bahamas 
          that it did not intend to renew the Miami licence area and consequently 
          no further annual rental fees will be payable in regards to this licence. 
 
          The Group does not have any material annual rental payments payable 
          on its licences in Trinidad and Suriname and, once formally issued, 
          will not have any material annual licence rental fees payable in respect 
          of its licence in Uruguay. 
 
 
 27    Related party transactions - Group & Company 
       Transactions between the Company and its subsidiaries, which are related 
        parties, have been eliminated on consolidation. Transactions between 
        other related parties are outlined below. 
 
       Remuneration of Key Management Personnel 
       The Directors of the Company are considered to be the Key Management 
        Personnel. Details of the remuneration of the Directors of the Company 
        are disclosed below, by each of the categories specified in IAS24 Related 
        Party Disclosures. 
                                                                                     2020         2019 
                                                                             ------------  ----------- 
                                                                                  $ 000's      $ 000's 
  Short-term employee benefits                                                        575          407 
  Short term employee benefits - accrued and 
  contingent*                                                                           -          138 
       Share-settled payments**                                                       992            - 
  Share-based payments                                                                126          166 
  Total                                                                             1,693          711 
                                                                             ------------  ----------- 
 
  *Short term employee benefits - accrued and contingent consist of the 
   50% of directors' deferred fees which are repayable in cash, rather 
   than shares, contingent on the Board, having consulted with the relevant 
   advisers to the Company, determines that the cost of an initial exploration 
   well is fully funded on an unconditional basis (defined as the Company 
   either securing a farm-in or securing capital via debt or equity or 
   a combination of both in excess of $25 million, or any combination 
   thereof). Included in this figure in the prior year is the write back 
   of deferred CEO remuneration which was forgone on 1 July 2018 following 
   agreed changes to the CEO remuneration arrangements (see below) which 
   resulted in a negative charge for that year. 
   **Share-settled payments were made during 2020 to settled the accrued 
   deferred fees payable in cash. 
   See note 7 for further details of the Directors' remuneration and note 
   24 for details of the Directors' share-based payment benefits. 
 
     Effective 1 October 2014, the Directors agreed to forgo 20% of their 
      remuneration which becomes repayable in shares only once the Board, 
      having consulted with the relevant advisers to the Company, determines 
      that the cost of an initial exploration well is fully funded on an 
      unconditional basis (defined as the Company either securing a farm-in 
      or securing capital via debt or equity or a combination of both in 
      excess of $25 million, or any combination thereof). Effective 1 April 
      2016 the Directors agreed to increase this fee deferral to 50% for 
      Board members and 90% for the CEO. From 1 January 2018, the Directors 
      agreed to increase their fee deferral terms to match those of the CEO, 
      being a 90% deferral with 50% of deferred fees recoverable in cash 
      and 50% in shares, once the Board, having consulted with the relevant 
      advisers to the Company, determines that the cost of an initial exploration 
      well is fully funded on an unconditional basis (defined as the company 
      either securing a farm-in or securing capital via debt or equity or 
      a combination of both in excess of $25 million, or any combination 
      thereof). From 1 July 2018, the Company agreed to cease the ongoing 
      deferral of the CEO salary, with all deferred amounts to be settled 
      in shares being retained as a receivable once the agreed criteria had 
      been met and all amounts deferred into a cash receivable, along with 
      accrued pension entitlements, being foregone. See note 24 for further 
      details. 
  On 28 March 2019 the Company and the CEO agreed to extend the term 
   of the CEO contract for a further 12 months. On expiry of the extended 
   contract on 31 March 2020 the contract became cancellable by either 
   party on a rolling 3 month notice period basis. 
   Effective 1 September 2020, the Company and CEO agreed an increase 
   to the annual CEO salary from $375,000 to $600,000. 
   On 15 October 2020, the Board determined that the criteria for cessation 
   and settlement of all deferred fees, namely the raising of at least 
   $25m in funding for the Perseverance 1 well, had been met. Furthermore, 
   the Board elected to novate all deferred fees that were to be settled 
   in cash into a shares. Consequently, all deferred fees and salaries 
   by directors were settled through the issuance of 107,413,150 new ordinary 
   shares in the Company. 
   On 31 October 2020, share options were granted to key management personnel 
   as follows. 
                        Tranche 1 Options          Tranche 2          Tranche 3       Total 
                                                     Options            Options 
    Simon Potter                        -          6,250,000                  -   6,250,000 
                       ------------------  -----------------  -----------------  ---------- 
    William Schrader                    -                  -                  -           - 
                       ------------------  -----------------  -----------------  ---------- 
    James Smith                         -                  -                  -           - 
                       ------------------  -----------------  -----------------  ---------- 
    Adrian Collins                      -                  -                  -           - 
                       ------------------  -----------------  -----------------  ---------- 
    Ross McDonald                       -                  -                  -           - 
                       ------------------  -----------------  -----------------  ---------- 
    Total                               -          6,250,000                  -   6,250,000 
                       ------------------  -----------------  -----------------  ---------- 
   On 30 November 2020, share options were granted to key management personnel 
   as follows. 
                        Tranche 1 Options          Tranche 2          Tranche 3       Total 
                                                     Options            Options 
    Simon Potter                        -          6,250,000                  -   6,250,000 

                       ------------------  -----------------  -----------------  ---------- 
    William Schrader                    -                  -                  -           - 
                       ------------------  -----------------  -----------------  ---------- 
    James Smith                         -                  -                  -           - 
                       ------------------  -----------------  -----------------  ---------- 
    Adrian Collins                      -                  -                  -           - 
                       ------------------  -----------------  -----------------  ---------- 
    Ross McDonald                       -                  -                  -           - 
                       ------------------  -----------------  -----------------  ---------- 
    Total                               -          6,250,000                  -   6,250,000 
                       ------------------  -----------------  -----------------  ---------- 
   On 31 October 2019, share options were granted to key management personnel 
   as follows. 
                               Tranche 1          Tranche 2          Tranche 3        Total 
                                 Options            Options            Options 
    Simon Potter              20,000,000         15,000,000         25,000,000   60,000,000 
                       -----------------  -----------------  -----------------  ----------- 
    William Schrader           1,500,000            750,000            750,000    3,000,000 
                       -----------------  -----------------  -----------------  ----------- 
    James Smith                  750,000            375,000            375,000    1,500,000 
                       -----------------  -----------------  -----------------  ----------- 
    Adrian Collins               750,000            375,000            375,000    1,500,000 
                       -----------------  -----------------  -----------------  ----------- 
    Ross McDonald                750,000            375,000            375,000    1,500,000 
                       -----------------  -----------------  -----------------  ----------- 
    Total                     23,750,000         16,875,000         26,875,000   67,500,000 
                       -----------------  -----------------  -----------------  ----------- 
   On 31 October 2019, all share options previously granted to key management 
   personnel were cancelled by mutual consent, see note 24 for further 
   details. 
   There is no ultimate controlling party of the Group. 
   Other related party transactions 
 
   During the current and prior year the Group operated banking facilities 
   with RBC Royal Bank (Bahamas) Limited in Nassau, The Bahamas. Ross 
   McDonald, a director of the Company during the year, is also a director 
   of RBC Royal Bank (Bahamas) Limited. As at 31 December 2020, $96,768 
   was held on deposit with RBC Royal Bank (Bahamas) Limited (31 December 
   2019: $51,935). 
 
 
 
 
 

Transactions between the Company and its subsidiaries during the year are as follows:

 
                                                      2020      2019 
                                                  --------  -------- 
                                                   $ 000's   $ 000's 
 
 Loans, goods and services provided to Columbus      6,897         - 
  Energy Resources Ltd 
 Loans, goods and services provided to BPC 
  Ltd                                               17,117     3,686 
 Loans, goods and services provided to Columbus         64         - 
  Energy Resources South America B.V. 
 Loans, goods and services provided to Columbus         35         - 
  Energy Bonasse Ltd 
 Loans, goods and services provided to Goudron          69         - 
  E&P Ltd 
 Loans, goods and services provided to Columbus         44         - 
  Energy Services ltd 
 Loans, goods and services provided to Leni              2         - 
  Trinidad Ltd 
 Loans, goods and services provided to FRAM             40         - 
  Exploration (Trinidad) Ltd 
 Loans, goods and services provided to Jasmin           19         - 
  Oil & Gas Ltd 
 Loans, goods and services provided to T-REX             2         - 
  Resources (Trinidad) Ltd 
 
 
 28   Events after the reporting period - Group & Company 
     ------------------------------------------------------------------------------- 
       On 15 January 2021, the Group raised a further GBP3.75 million (approx. 
        $5 million) in funding via the issuance of 187.5 million new ordinary 
        shares, having exercised its put option under a financing facility 
        entered into in December 2020 with an institutional investment fund 
        managed by Lombard Odier Asset Management. 
        On 8 February 2021, the Group announced the completion of the Perseverance 
        1 exploration well in its offshore licence area in the Bahamas. Whilst 
        the well did encounter hydrocarbons, commercial volumes of movable 
        hydrocarbons were not present at the drilling location. The Group has 
        undertaken an extensive review of the data extracted from the well 
        to determine the extent to which this data indicates remaining prospectively 
        in the deeper, untested horizons and the horizons of interest at other 
        locations along the B and C structures. The results of this review 
        indicate that substantial prospectivity remains in sufficient potential 
        volumes such that further exploration activity on these licences is 
        merited. In March 2021, the Group notified the Government of the Bahamas 
        of its election to renew the four southern licences into a further 
        three year exploration period, having discharged the licence obligation 
        to drill an exploration well before the expiry of the current licence 
        period on 30 June 2021. The Group remains in discussions with the Government 
        regarding renewal of these licences and the level of licence fees which 
        remain to be paid for the current period. On formal renewal of the 
        licences by the Government, the key licence obligation for the new 
        three year period will be the drilling of a further exploration well 
        within the licence area before the expiry of the renewed licence term. 
        During the course of January to April 2021, the Group completed the 
        drawing down of GBP3 million in convertible loan notes under the facility 
        provided by Bizzell Capital Partners Pty Ltd. 
        On 20 May 2021, Mr Adrian Collins resigned as a director of the Company. 
        On 21 May 2021, the Company changed its name from Bahamas Petroleum 
        Company PLC to Challenger Energy Group PLC. 
        On 26 May 2021, the Group commenced the drilling of the Saffron 2 well 
        in the Bonasse licences in the South West Peninsula of Trinidad. The 
        well was completed on 14 July 2021 at a cost of approx. $4.8 million. 
        Production testing of the well has indicated that commercial volumes 
        of extractible hydrocarbons are likely to exist, but further exploration 
        drilling will be required to fully delineate the extent of the resource 
        and quantify the reserves present. 
        On 27 May 2021, the Group raised a further GBP6.9 million (approx. 
        $9.75 million) in additional funding through the completion of an open 
        offer with the existing shareholders of the Company and a placing with 
        institutional shareholders. In addition, GBP2.5 million of convertible 
        loan notes drawn down over the course of 2021 were converted, resulting 
        in the issuance of a total of 2,904,589,806 new ordinary shares in 
        the Company. 
        Following shareholder approval at the Company's EGM on 17 May 2021, 
        a Share Consolidation of 1 New Ordinary Share of 0.02 pence each for 
        10 Existing Ordinary Shares of 0.002 pence each took place on 28 May 
        2021. 
        On 1 June 2021, Mr Ross McDonald resigned as a director of the Company, 
        with Mr Eytan Uliel and Mr Stephen Bizzell both being appointed as 
        directors on this date. 
 
 
 29   Comprehensive loss for the year - Company 
      The Company's loss for the year was $12,391,709 (2019: $3,164,902). 
 

Glossary and Notes

 
1P                    proved reserves 
--------------------  ------------------------------------------------------------------ 
2P                    proved plus probable reserves 
--------------------  ------------------------------------------------------------------ 
3P                    proved plus probable plus possible reserves 
--------------------  ------------------------------------------------------------------ 
AIM                   London Stock Exchange PLC's Alternative Investment Market 
--------------------  ------------------------------------------------------------------ 
barrel or bbl         42 US gallons of oil 
--------------------  ------------------------------------------------------------------ 
bbls                  barrels of oil 
--------------------  ------------------------------------------------------------------ 
best estimate or      the most likely estimate of a parameter based on all available 
 P50                   data, also often termed the P50 (or the value of a probability 
                       distribution of outcomes at the 50% confidence level) 
--------------------  ------------------------------------------------------------------ 
BNPP                  BNP Paribas 
--------------------  ------------------------------------------------------------------ 
BOLT                  Beach Oilfield Limited 
--------------------  ------------------------------------------------------------------ 
bopd                  barrels of oil per day 
--------------------  ------------------------------------------------------------------ 
BPC                   Bahamas Petroleum Company PLC 

--------------------  ------------------------------------------------------------------ 
bwpd                  barrels of water per day 
--------------------  ------------------------------------------------------------------ 
contingent resources  those quantities of petroleum estimated, as of a given date, 
                       to be potentially recoverable from known accumulations, but 
                       the applied project(s) are not yet considered mature enough 
                       for commercial development due to one or more contingencies. 
                       Contingent Resources may include, for example, projects for 
                       which there are currently no viable markets, or where commercial 
                       recovery is dependent on technology under development, or 
                       where evaluation of the accumulation is insufficient to clearly 
                       assess commerciality 
--------------------  ------------------------------------------------------------------ 
C-sand                sandstone reservoirs below the pre-Mayaro unconformity and 
                       above the pre-Lower Cruse unconformity encompassing sandstones 
                       of equivalent age to both the Gros Morne and the Lower Cruse 
                       formations 
--------------------  ------------------------------------------------------------------ 
CESL                  Columbus Energy Services Ltd 
--------------------  ------------------------------------------------------------------ 
CPR                   Competent Persons Report 
--------------------  ------------------------------------------------------------------ 
CPS                   Compañia Petrolifera de Sedano S.L.U. 
--------------------  ------------------------------------------------------------------ 
EOR                   enhanced oil recovery 
--------------------  ------------------------------------------------------------------ 
EPSC                  Enhanced production service contract, the form of contract 
                       under which the Goudron field is operated on behalf of Heritage 
--------------------  ------------------------------------------------------------------ 
FRAM                  FRAM Exploration (Trinidad) Ltd 
--------------------  ------------------------------------------------------------------ 
FTG                   Full Tensor Gravity Gradiometry. Full tensor gradiometers 
                       measure the rate of change of the gravity vector in all three 
                       perpendicular directions 
--------------------  ------------------------------------------------------------------ 
GEPL                  Goudron E&P Ltd 
--------------------  ------------------------------------------------------------------ 
Goudron Sandstone     reservoir sands above the pre-Mayaro unconformity, also known 
                       as the Mayaro Sandstone 
--------------------  ------------------------------------------------------------------ 
Heritage              Heritage Petroleum Company Limited (previously known at Petrotrin) 
--------------------  ------------------------------------------------------------------ 
IPSC                  incremental production service contract, the form of contract 
                       under which the Inniss-Trinity field is operated on behalf 
                       of Heritage 
--------------------  ------------------------------------------------------------------ 
La Lora               La Lora Production Concession in Spain 
--------------------  ------------------------------------------------------------------ 
Lind                  Lind Global Macro Fund LP 
--------------------  ------------------------------------------------------------------ 
LTL                   Leni Trinidad Ltd 
--------------------  ------------------------------------------------------------------ 
M&A                   Mergers and Acquisitions 
--------------------  ------------------------------------------------------------------ 
Mayaro Sandstone      reservoir sands above the pre-Mayaro unconformity, also known 
                       as the Goudron Sandstone 
--------------------  ------------------------------------------------------------------ 
MEEI                  Trinidad and Tobago Ministry of Energy and Energy Industries 
                       (formally the Ministry of Energy and Energy Affairs, MEEA) 
--------------------  ------------------------------------------------------------------ 
m                     thousand 
--------------------  ------------------------------------------------------------------ 
mm                    million 
--------------------  ------------------------------------------------------------------ 
mmbbls                million barrels of oil 
--------------------  ------------------------------------------------------------------ 
Petrotrin             The Petroleum Company of Trinidad and Tobago Limited 
--------------------  ------------------------------------------------------------------ 
PPL                   private petroleum rights license 
Predator              Predator Oil & Gas Holdings PLC 
pre-Cruse             early to mid-Miocene sandstone reservoir below the pre-Cruse 
                       unconformity 
--------------------  ------------------------------------------------------------------ 
proved reserves       those quantities of petroleum, which, by analysis of geoscience 
                       and engineering data, can be estimated with reasonable certainty 
                       to be commercially recoverable (1P), from a given date forward, 
                       from known reservoirs and under defined economic conditions, 
                       operating methods, and government regulations 
--------------------  ------------------------------------------------------------------ 
probable reserves     those additional reserves which analysis of geoscience and 
                       engineering data indicate are less likely to be recovered 
                       than Proved Reserves but more certain to be recovered than 
                       Possible Reserves. It is equally likely that actual remaining 
                       quantities recovered will be greater than or less than the 
                       sum of the estimated Proved plus Probable Reserves (2P) 
--------------------  ------------------------------------------------------------------ 
possible reserves     those additional reserves which analysis of geoscience and 
                       engineering data suggest are less likely to be recoverable 
                       than Probable Reserves. The total quantities ultimately recovered 
                       from the project have a low probability to exceed the sum 
                       of Proved plus Probable plus Possible (3P) Reserves, which 
                       is equivalent to the high estimate scenario 
--------------------  ------------------------------------------------------------------ 
PRMS                  Petroleum Resources Management System 
--------------------  ------------------------------------------------------------------ 
PSC                   Production Sharing Contract 
--------------------  ------------------------------------------------------------------ 
reserves              those quantities of petroleum anticipated to be commercially 
                       recovered by application of development projects to known 
                       accumulations from a given date forward under defined conditions 
--------------------  ------------------------------------------------------------------ 
Saint-Gobain          Saint-Gobain Vicasa SA 
--------------------  ------------------------------------------------------------------ 
Schroders             Schroders Investment Management Limited 
--------------------  ------------------------------------------------------------------ 
Staatsolie            Staatsolie Maatschappij Suriname N.V, the state oil company 
                       of Suriname 
--------------------  ------------------------------------------------------------------ 
STOIIP or oil in      stock tank oil initially in place, those quantities of oil 
 place                 that are estimated to be in known reservoirs prior to production 
                       commencing 
--------------------  ------------------------------------------------------------------ 
side-track            an additional or replacement well bore created from an existing 
                       well bore at a depth below the surface casing 
--------------------  ------------------------------------------------------------------ 
SWP                   South West Peninsula of Trinidad 
--------------------  ------------------------------------------------------------------ 
TD                    Total Depth (the depth where drilling has stopped) 
--------------------  ------------------------------------------------------------------ 
Weg Naar Zee          PSC signed with Staatsolie in October 2019 for the Weg Naar 
                       Zee Block, an onshore appraisal and development project in 
                       Suriname 
--------------------  ------------------------------------------------------------------ 
WTI                   West Texas Intermediate; oil price marker crude 
--------------------  ------------------------------------------------------------------ 
 

, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com. 

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

FR VQLFLFKLXBBZ

(END) Dow Jones Newswires

September 27, 2021 02:00 ET (06:00 GMT)