Annual Report 2010 - Ophir Energy

An African Energy Company
Annual Report 2010
Company Registration No 5047425

Ophir energy plc |
2010 ANNUAL REPORT
Crew member on board Deepsea Stavanger

Contents
Overview
Highlights of the Year 2
About Us 3
2010 ANNUAL REPORT
1
Contents
Business Review
Chairman’s and Managing Director’s Review 4
Board of Directors and Senior Management 8
Operations’ Review 12
Financial Review 20
Principal Risks and Uncertainties 22
Directors’ Report 24
Ophir energy plc |
Governance
Corporate Governance Statement 30
Directors’ Remuneration Report 34
Statement of Directors’ Responsibilities 36
Independent Auditor’s Report 37
Group Accounts
Group Income Statement and Statement of Comprehensive Income 38
Group Statement of Changes in Equity 39
Company Statement of Changes in Equity 40
Group Statement of Financial Position 41
Company Statement of Financial Position 42
Group Statement of Cash Flows 43
Company Statement of Cash Flows 44
Notes to the Financial Statements 45
Corporate Directory 73
List of Figures
Figure 1 - Operations 3
Figure 2 - African Net Deepwater Acreage Position (km 2 ) 3
Figure 3 - Operational Highlights over the reporting period to date 13
Figure 4 - Blocks 1, 3 and 4 - Tanzania 13
Figure 5 - Block R, Equatorial Guinea 15
Figure 6 - Mbeli, Ntsina, Manga, Gnondo Blocks - Gabon 16
Figure 7 - AGC Profond, AGC 17
Figure 8 - Marovoay Block 2102 - Madagascar 17
Figure 9 - Berbera PSA - Somaliland 18
Figure 10 - Block Marine IX - Congo (Brazzaville) 19
Figure 11 - Daora, Haouza, Mahbes & Mijek Blocks - SADR 19

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Ophir energy plc | 2010 ANNUAL REPORT
Overview | HigHLigHTs Of THE yEAR
Overview
Highlights of the Year
3D Seismic Acquisition Offshore Tanzania
2010
April Acquisition of gravimetry survey, Mbeli and Ntsina Blocks, Gabon
Mtwara Drilling Support Base becomes fully operational
May Entered into gas commercialisation agreements with the Government of Tanzania and Tanzania Petroleum
Development Corporation (“TPDC”) granting rights to exploit any natural gas in Blocks 1, 3 and 4, Tanzania
June Entered into rig use agreement for the Deepsea Stavanger drillship for Tanzania
Farm out deal on Blocks 1, 3 and 4, Tanzania, with BG International Limited
July Acquired an interest in the Marovoay Block, Madagascar
Entered into rig use agreement for the Maersk Deliverer drillship for AGC
October Drilled Pweza-1, Block 4, Tanzania. Gas discovery
Entered into HOA with FAR Limited for farm out of 10% (paying interest) of AGC Profond Block
Completed gradiometry, gravity, magnetic, LIDAR surveys over 3,600km 2 over Marovoay Block 2102,
Madagascar
December Drilled Chewa-1, Block 4, Tanzania. Gas discovery
Appointment of Lexicon Partners as financial advisors to the Company
2011
February
Acquisition of 5,000km 2 3D seismic data in Blocks 1, 3 and 4, Tanzania
March Drilled Chaza-1, Block 4, Tanzania. Gas discovery
Exited from the Block 3, JDZ permit

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SADR x4
Daora, Haouza, Mahbes, Mijek
Op 50% 74,327km 2
Senegal x3
Rufisque, Sangomar, Sangomar Deep
*Op 25% 7,491km 2
AGC x1
AGC Profond **Op 54.2% 9,838km 2
Equatorial Guinea x1
Block R Op 80% 1,674km 2
Gabon x4
Mbeli, Ntsina, Manga, Gnondo
Op 100% 12,712km 2
Somaliland x1
Berbera
Op 75% 16,270km 2
Tanzania x3
Block 1, Block 3, Block 4
Op 40% 27,665km 2
Madagascar x1
Marovoay Block 2102
Op 80% 12,070km 2
Congo (B) x1
Marine IX
Op 31.5% 1,044km 2
Ophir energy plc | 2010 ANNUAL REPORT
Overview | Highlights of the year
* Subject to completion of farm out, Government consent, exercise of Ophir option to acquire and before government back-in
** Subject to completion of farm out, Government consent and before government back-in
Figure 1 - Operations
About Us
Ophir Energy plc (“Ophir”) is the parent company of the
Group with its headquarters located in London (England),
supported by operational offices in Perth (Australia), Dar es
Salaam (Tanzania) and Malabo (Equatorial Guinea).
Ophir is a United Kingdom incorporated independent oil
and gas exploration company with a focus on Africa.
Since its foundation in 2004, the Company has acquired
an extensive portfolio of exploration interests currently
consisting of 16 projects in eight jurisdictions in Africa.
The Company also has options over three additional
exploration interests.
As at 1 March 2011, the Company had interest in
approximately 155,820km 2 of gross exploration acreage
(excluding those interests under option) corresponding to an
equity share 89,976km 2 of which approximately 69,500km 2
lie offshore in water depths greater than 250m and are thus
classified as “deepwater”.
According to IHS, one of the leading providers of oil and gas
licensing data and intelligence, the Company was, as at 31
December 2010, one of the top five holders of deepwater
exploration acreage in Africa in terms of net acreage.
The Company has drilled eight exploration wells as operator,
making two gas discoveries in Equatorial Guinea and three
gas discoveries in Tanzania.
In October 2010, the Company was named “Best Oil & Gas
Exploration Company” in the 2010 World Finance Oil & Gas
Industry Awards and in June 2009 the Company was jointly
named as Operator of the Year for 2008 in the Petroleum
Africa magazine annual awards.
Shell
Petro SA
Exxon Mobil
Total SA
Chevron Corp
Roc Oil
Nambia NOC
Sonatrach
Petrobras
Statoil
Anadarko
Tullow Oil
BHP Billiton
Premier Oil
BP
Maurel & Prom
Petronas
Defba Oil
Atlas Group
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
110,000
120,000
130,000
140,000
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180,000
Figure 2 - African Net Deepwater Acreage Position (km 2 )
Data used to create this graph was provided by IHS Probe and was current as of December 2010. Deepwater acreage is defined here as any
exploration license reported by IHS to have a maximum depth range in excess of 250m. The total for Ophir includes the interests held under
Assurance Agreements in SADR.

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Ophir energy plc | 2010 ANNUAL REPORT
CHAiRmAN’s ANd mANAgiNg diRECTOR’s REviEw
Business Review
Chairman’s and Managing Director’s Review
BUsiness review |
Helicopter operations, Deepsea Stavanger
corporate Overview
Ophir has been successful in meeting its key objective
for the year in opening up a new petroleum province in
Tanzania by drilling three ground-breaking gas discoveries.
Each well encountered a substantial volume of gas and it is
our expectation, with further exploration drilling, that there
will be sufficient volumes of gas present within the acreage
held by Ophir to support the construction of one or more
Liquefied Natural Gas (“LNG”) processing facilities which
will allow for the export of gas to world markets.
Tanzania is particularly well located to supply the
growing energy markets of Asia and the Indian
sub-continent. The Government of Tanzania has already
demonstrated its support for the project via a series of gas
commercialisation agreements that were concluded in May
2010. These specifically define the fiscal terms applying to
gas developments and grant the Company an exclusive right
to build and operate the facilities necessary to liquefy and
export the gas. These agreements are every bit as groundbreaking
as the discovery wells and provide the basis for
accelerated field development. The agreements also make
provision for the supply of gas to markets in Tanzania,
thereby ensuring that the development provides direct
stimulus to the domestic economy in addition to
providing export earnings.
A key part of the equation in Tanzania, and another of
our core strategic objectives for the year, was to establish
a joint venture, prior to drilling, with partners that had the
appropriate skills to undertake a full cycle LNG project.
In this regard we were particularly delighted to conclude
a transaction with BG International Limited (“BG”) whose
credentials in both LNG development and marketing are
amongst the best in the industry. BG entered into a farm
in across all three of the blocks held by the Company
in Tanzania and also became a party to the gas
commercialisation agreements. It is our view that the
combination of an aligned joint venture with relevant
experience and a supportive Government backing the
development of an export gas industry, through the
commercialisation agreements, creates favourable
conditions for a world class LNG development in Tanzania.
Although there has been a great deal of attention paid
towards our exploration successes in Tanzania it has been
a year of steady progress across several other parts of
the portfolio.
In Equatorial Guinea we have been interpreting the new
3D seismic data that was acquired following our 2008
Fortuna-1 and Lykos-1 gas discoveries in Block R. As a
consequence, the project is now sufficiently advanced to
drill appraisal wells and run production tests on both these
discoveries and to undertake further planned drilling.
In parallel with the technical work there have been detailed

negotiations with the Government of Equatorial Guinea to
determine how best to integrate the development of Block R
gas into the proposed second LNG train on Bioko Island.
These discussions have made substantive progress and it is
our expectation that drilling activities will commence in the
second half of 2011.
Our exploration project in Northwest Africa in the Senegal/
Guinea Bissau Common Zone (“AGC”) has matured to the
point where the first exploration well, Kora-1, is expected to
be drilled in Q2 2011. This is the first deepwater well drilled
along this part of the African margin. With other operators
enjoying success to the north in Mauritania and to the south
in Sierra Leone, the Kora-1 well will be watched by many
with great interest.
In Gabon we are presently negotiating the terms of a farm
out transaction prior to acquiring new 3D seismic data
specifically designed to image the pre-salt geology which
is considered to be analogous to basins on the conjugate
South Atlantic margin in Brazil.
There were two new country entries during the year with a
farm in to Wilton Petroleum Limited’s (“Wilton”) interests in
the Marovoay Block 2102 in Madagascar and, subject to the
completion of documentation, the securing of an option
over three blocks in Senegal operated by FAR Limited (“FAR”).
To ensure that the pace of growth across Ophir’s interests
is maintained and to further ensure that shareholders are
able to realise some benefit from their investments, the
Board have determined to investigate ways in which
Ophir might secure additional funding. The first step in
this process has been to appoint Lexicon Partners as
financial advisors to the Company. They are working with
Management to review available options before reporting
back to the Board later in 2011.
Portfolio Management
It has been an active year for portfolio management with
farm out transactions completed with BG in Tanzania and,
FAR in AGC and a farm out in Gabon at an advanced stage
in the subsequent period. These transactions both protect
Ophir’s Balance Sheet from exposure to drilling risk and
importantly in the case of the BG transaction brings proven
experience relevant to the particular assets involved.
The transaction with FAR will give the Company a zero
cost option over an acreage position in Senegal. The
prospectivity of the Senegalese play will be influenced
by the Kora-1 result in the AGC and the option can be
exercised 60 days after completion of the well.
In Equatorial Guinea, Ophir will shortly be inviting suitably
qualified companies to consider participation in the Block R
PSC. Once again the objectives are to protect Ophir’s
Balance Sheet, but just as importantly, to build a joint
venture with the balance of skills necessary to execute
the project efficiently on behalf of the Government of
Equatorial Guinea.
The portfolio has also grown via a farm in to Madagascar
where Ophir has acquired an 80% interest and operatorship
of the onshore Marovoay Block 2102.
Ophir is also actively managing its smaller interests. Post
year end, the Group relinquished its minority interest (4%)
in Block 3 of the Nigeria/Sao Tome & Principe Joint
Development Zone (“JDZ”) where it participated in the
drilling of a sub-commercial gas discovery in 2009. Ophir is
currently in negotiations with the Government of Congo
(Brazzaville) regarding an extension of the Marine IX PSC
where Premier Oil plc (“Premier”) (operator) and Kufpec
Congo Limited (“Kufpec”) drilled the unsuccessful Frida-1
well in 2009. Ophir elected not to participate in the Frida-1
well. Although Premier has notified the Government of its
intention to withdraw, Ophir and Kufpec are considering
applying to extend the current-term of the contract alone,
with a view to evaluating other play concepts.
Ophir is currently in discussions with the Government of
Somaliland with regards to a revision to the Berbera PSA
timetable to allow for the acquisition of 2D seismic data
and an orderly ongoing exploration programme.
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Ophir energy plc | 2010 ANNUAL REPORT
Business review | Chairman’s and Managing Director’s review
Drilling operations on board Deepsea Stavanger
View into the moon pool, Deepsea Stavanger

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Ophir energy plc | 2010 ANNUAL REPORT
BUsiness review | CHAiRmAN’s ANd mANAgiNg diRECTOR’s REviEw
Operations
It has been a year of outstanding achievement for the Ophir
operations team. In Tanzania a newly built rig has been
taken directly from the shipyard to a remote area offshore
southern Tanzania where there was previously no oilfield
infrastructure. The port and airport at Mtwara were
extensively renovated at a gross cost of US$10 million
(shared with other operators) to act as a base for drilling
operations. Within the port this has included the provision
of offices and workshops for up to 50 company and service
company personnel suitable for round-the-clock operations.
The port has been upgraded to allow for multi-vessel
operations with installation of bunkering and heavy
lift facilities. The airport terminal was upgraded and a
dedicated helicopter hangar and maintenance facility
installed. Within Mtwara itself, local offices and housing
have been renovated to provide accommodation, mess and
medical facilities for up to 65 people. Wherever possible
local suppliers and manufacturers have been used and in
excess of 230 local staff have been employed and trained,
to become a core part of the operations team.
In addition to the challenges of operating in a remote
environment, the Company is acutely aware that the Indian
Ocean has seen an upsurge in marine criminal activity.
The safety of everybody involved in Ophir’s operations is of
paramount importance and an extensive security operation
has been implemented in conjunction with the Tanzanian
Navy whose professionalism and vigilance is to be
commended.
The drilling operation is, at the time of writing, nearing
completion. Drilling into a frontier basin where sub-surface
conditions are unknown generally presents a number of
challenges. The Tanzanian basins have been no exception,
providing the drilling team with a rich tapestry of such
challenges; however we are delighted to report that
operations have thus far been conducted safely and
efficiently with no lost time accidents or incidents
reported. We are immensely proud of the achievements of
the whole Ophir team together with all of the consultants
and service providers who have taken a pride of ownership
in the project.
We are appreciative of the confidence that our partners BG
placed in us by allowing Ophir to continue as the operator
during the initial drilling campaign. As operatorship now
begins to transfer across to BG through the remainder
of 2011, we look forward to building the joint venture
partnership for the benefit of the people of Tanzania on
behalf of whom we conduct these operations. We are
reminded of our partnership with the people of Tanzania
across every facet of the project. The Government, through
the Ministry of Energy & Mineral Resources and TPDC
have provided support and guidance at many levels. The
Regional Commissioner of the Mtwara Region and the local
Government Departments of the township of Mtwara have
also been supportive and last and by no means least are the
residents and business people of Mtwara who have become
enthusiastically involved, either directly or indirectly, in
allowing us to become part of their community.
Financial
During the year under review, the development of the
Group’s exploration assets continued to be financed by
funds raised through equity issues in 2008 and 2009 and
the conversion of the Company’s convertible bond in 2008.
There were no fresh issues of shares in 2010.
The Group recorded a loss for the year after taxation of
US$19.278 million (2009: US$43.266 million). No dividends
were paid or declared by the Company during the financial
year (2009: nil) and the Directors do not propose to pay a
dividend for the year ended 31 December 2010.
The loss for the year includes US$11.344 million of
exploration expenditure expensed (net of recoveries),
general and administrative costs of US$7.272 million,
finance costs of US$0.429 million and other costs of
US$0.766 million. The net cash outflow of the Group for the
year ended 31 December 2010 was US$45.386 million and
cash and cash equivalents held by the Group at year end
totalled US$89.925 million.
Discussions of the results are set out in the Financial Review
on pages 20 and 21.
Board and staff
The Ophir Board provides the Company with a wealth of
knowledge and experience and the contribution of Directors
to the development of the Company over the last year has
been significant. In March the Company announced the
resignation of Mr Harak Banthia who was one of two
representatives of Mittal Investments on the Ophir Board.
We would like to thank him for his contribution to Ophir
and welcome Mr Arun Balakrishnan as his replacement.
Ophir has assembled a small yet dedicated and highly skilled
team of staff who consistently deliver far higher levels of
performance than it is reasonable to expect. The Board
would like to publicly acknowledge the team’s achievements
and thank the management and staff for their continued
hard work and commitment which have provided the
foundation for another outstanding year for the Company.
This year of performance has been delivered without
compromising on safety and we are pleased to report no
lost time accidents or incidents reported, despite the diverse
range of operations undertaken.
On board the seismic vessel during 3D seismic survey acquisition
offshore Tanzania

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Ophir energy plc | 2010 ANNUAL REPORT
CHAiRmAN’s ANd mANAgiNg diRECTOR’s REviEw
Drilling operations, Deepsea Stavanger
BUsiness review |
corporate responsibility
Corporate Responsibility is an integral part of the culture at
Ophir and within the limited means at our disposal we seek
to have a positive impact upon the communities within
which we conduct our business. This can express itself in
the form of a preference for local manufacture through to
financial support of local projects.
In Equatorial Guinea, Ophir provided the funding for the
construction of a nursery school in the village of Ebein
Yenkeng which became operational this year. We are also
pleased to have acquired and installed six electricity
generators into rural hospitals.
Outlook
The pace of activity over the year ahead should increase
significantly. In the next few weeks we anticipate being
able to announce the results of the Kora-1 well in AGC and
later in the year we expect to embark on further drilling
campaigns offshore Tanzania and Equatorial Guinea. Both of
these campaigns should include a mix of appraisal drilling
and further exploration.
In addition to the drilling programmes, Ophir will continue
to seek opportunities to grow its portfolio and to mature
those assets already within the portfolio.
In Tanzania, where Ophir has invested in excess of US$10
million into the port development, approximately half of this
amount was spent locally providing a major boost to the
area. We have also supported other schemes in Mtwara, for
example providing building supplies for a local school and
funding to a local maternity clinic to purchase essential
drugs and baby equipment.
In Gabon, Ophir has funded a cultural exchange programme
between Gabon and South Africa under the auspices of
the South African Embassy for the Nelson Mandela School
in Libreville.

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Ophir energy plc | 2010 ANNUAL REPORT
BOARd Of diRECTORs ANd sENiOR mANAgEmENT
Business Review
Board of Directors and Senior Management
BUsiness review |
Deepsea Stavanger on location offshore Tanzania
Directors
The names of the Directors of the Company during the
financial year and since the end of the financial year are:
non executive chairman
nicholas smith - Chairman (appointed Director
10 October 2007, Chairman 4 September 2009)
Mr Smith trained as a Chartered Accountant with Ernst
& Young. He joined the Jardine Fleming Group in 1986,
serving from 2003 as Chief Financial Officer and as a
member of the Executive Committee. Mr Smith became a
director of Robert Fleming International Ltd in 1998 and the
Director of Origination - Investment Banking serving until
2000. Mr Smith currently serves as a non executive director
for Asian Citrus Holdings Ltd, PLUS Markets Group plc,
Sorbic International Ltd., Japan Opportunities Fund II Limited
and Schroder Asia-Pacific Fund plc. Mr Smith served as
Chairman of the Audit and Nominations Committees until
his appointment as Chairman on 4 September 2009.
Mr Smith is a member of the Audit, Remuneration and
Nominations Committees.
executive Directors
Alan stein Bsc (hons), phD - Managing Director
(appointed 18 February 2004)
Dr Stein began his career in the UK as a geologist with
oil consultants Dolan & Associates where he worked on
projects in Europe, Australia and the Far East. In 1992, he
established Dolan & Associates’ first international office in
Australia and in 1994 was one of the founding partners of
the IKODA consultancy group which had offices in London
and Perth. In 1996 he was one of the founding directors of
FIL Resources Limited which acquired interests in offshore
Mauritania. These interests were sold to Fusion Oil & Gas plc
(“Fusion”) and Dr Stein was appointed managing director
of Fusion in 1998. Dr Stein resigned from Fusion following
its sale in December 2003 and in early 2004 was one of
the founding directors of Ophir. Dr Stein is non executive
chairman of Neon Energy Limited, an ASX-listed petroleum
exploration and production company headquartered
in Perth.

Jonathan Taylor BSc (Hons), MSc - Executive Director
- New Business & Deputy Managing Director (appointed
4 May 2004)
Mr Taylor has over 20 years’ of experience in a range of
technical and asset management roles in Africa, Europe, the
Far East and the Middle East, for Amerada Hess Ltd, Clyde
Petroleum plc and Gulf Canada Resources Ltd. Mr Taylor
was appointed Exploration Director of Fusion Oil & Gas plc
in November 1998, resigning in March 2004. In early 2004,
Mr Taylor was one of the founding directors of Ophir,
serving initially as its Technical Director. Mr Taylor is a
member of the Heath, Safety & Environment Committee.
Independent Non Executive
Directors
Dennis McShane (appointed 10 October 2007)
Mr McShane is a founding principal of Midas Resource
Partners. From September 2004 to November 2008
Mr McShane was a senior executive of the Ferrexpo group
of companies serving as executive director of finance and
business strategy. He led the successful initial public offering
of Ferrexpo plc on the Official List of the London Stock
Exchange in June 2007. Prior to joining Ferrexpo, Mr
McShane was an investment banker with JPMorgan Chase
& Co (“JPM”) emerging markets investment banking and
mining and metals practices in London. In 2002, he became
head of mining and metals in JPM’s Asia-Pacific practice,
based in Sydney. He attended Harvard Business School and
the State University of New York. Mr McShane is a member
of the Audit, Nominations and Remuneration Committees.
He was appointed Chairman of the Audit and Nominations
Committees on 4 September 2009.
Lyndon Powell (appointed 10 October 2007)
Mr Powell retired from HM Forces in 2006 after completing
a full career with the Royal Military Police and Special
Forces. He served in diverse locations throughout the
world in a variety of appointments, gaining a wide
spectrum of experience in operational and strategic
security management. He has worked with the Foreign
& Commonwealth Office, providing protection for HM
Ambassadors and has commanded four major units. He was
Chief of Special Forces at the Allied Rapid Reaction Corps
and was an advisor to the Sierra Leone Armed Forces in
Freetown. In 2007, he was appointed as Deputy Director
Security Operations with Infinity SDC Ltd. In 2008 he moved
to start his own company, Barbican Global Ltd, which
specialises in independent security advice to the corporate
sector. Mr Powell serves as Chairman of the Heath, Safety
& Environment Committee and is a member of the
Remuneration Committee.
John Lander (appointed 18 November 2008)
Mr Lander started his career with Shell as a geophysicist in
their international division, and has more than 40 years’
experience in the international oil and gas industry. He has
held executive boardroom posts at RTZ Oil and Gas Limited,
Pict Petroleum plc, Premier Oil plc, British-Borneo Petroleum
Syndicate plc and Tullow Oil plc, the latter until his
retirement from fulltime employment. He is currently
chairman of Alkane Energy plc and Canadian North Sea
Energy Limited as well as being a non executive director
of Neon Energy Limited. Mr Lander is Chairman of the
Remuneration Committee and is a member of the Audit,
Nominations and Heath, Safety & Environment Committees.
Shareholder Representative Non
Executive Directors
Arun Balakrishnan (appointed 18 February 2011)
Mr Balakrishnan is a Chemical Engineer with a Post
Graduate Diploma in Management from the Indian
Institute of Management, Bangalore. A former Chairman
& Managing Director of the Fortune 500 Company M/s.
Hindustan Petroleum Corpn Ltd., India, he now heads
the Joint Venture Refinery M/s. HPCL-Mittal Energy Ltd.,
India. He is also the Chairman of the Scientific Advisory
Committee for Hydrocarbons, Ministry of Petroleum &
Natural Gas, Government of India and member of the Board
of National Commodities Exchange (“NCDEX”) and The
Institute of Company Secretaries of India. He has over
35 years’ of experience in the oil industry and has won
various awards for innovative Human Resources
management and leadership.
Michael Cohen (appointed 17 March 2008)
Mr Cohen is an Executive Managing Director and the
Head of European Investing for The Och-Ziff Group and the
CEO of Och-Ziff Management Europe Limited, a global
institutional asset management firm. As of 1 January 2011,
the Och-Ziff Group had assets under management of
approximately US$27.6 billion. Mr Cohen joined Och-Ziff
in 1997 as an Analyst, and is now based in London and
manages the firm’s European operations. Prior to Och-Ziff,
Mr Cohen was employed as an Analyst at Franklin Mutual
Advisory, analysing equity investments and as an Investment
Banking Analyst at CS First Boston, specialising in the
financial services sector. Mr Cohen holds a BA in Economics
from Bowdoin College.
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Ophir energy plc | 2010 ANNUAL REPORT
Business review | Board of Directors and Senior Management

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Ophir energy plc | 2010 ANNUAL REPORT
BUsiness review | BOARd Of diRECTORs ANd sENiOR mANAgEmENT
Jaroslaw paczek (appointed 2 December 2008)
Mr Paczek is a Barrister from Poland having graduated from
the Jagiellonian University in Cracow and subsequently
attended the Harvard Business School and DePaul University
in Chicago. He began his career as a lawyer with the Hogan
& Hartson Legal office in Warsaw in 1995 and also practiced
with Feuguer et Associés in Paris. In 1997 Mr Paczek joined
ERA GSM, the Polish Mobile operator as a Deputy General
Director. For the last ten years, Mr Paczek has worked with
the Kulczyk Group, the largest Private Equity Fund in Poland
where he was involved in various M&A transactions in the
Eastern European Region, in particular in the Telecom,
Electricity and Insurance sectors. Mr Paczek transferred to
London in 2006 and has been responsible for the successful
generation and development of the portfolio of oil, gas and
mineral investments.
rajan Tandon (appointed 4 September 2009)
Mr Tandon is Vice President-in-charge of Finance and
Accounts at Mittal Investments and has over 25 years’ of
industrial experience. Prior to this he was Director-in-charge
of Finance and Accounts at Mittal Steel. He has been a
leading member of the Corporate Finance Team. He has also
served as Treasurer for LNM Holdings NV until its merger
with Ispat International in December 2004. With a 20 year
career within the Mittal Steel Group, he has held various
positions in Finance and Accounting within the Group.
Mr Tandon is an Honours Graduate in Accounting and
Commerce from St Xavier’s College, Kolkata, a Fellow of
The Institute of Chartered Accountants of India and a
member of The Institute of Internal Auditors. He also
serves on the Board of various companies.
Mikki Xayiya (appointed 5 April 2004)
Mr Xayiya has been an active member of the African
National Congress (“ANC”) since 1978 and was imprisoned
on Robben Island by the apartheid government of South
Africa from 1984 to 1990. After his release in 1990,
Mr Xayiya was involved in various community programmes
in South Africa and Swaziland before becoming a policy
advisor to the Gauteng Provincial Government in 1994.
Mr Xayiya was appointed as managing director of
Mawenzi Asset Managers (Pty) Ltd in 1998 and he joined
Mvelaphanda Holdings (Proprietary) Ltd (“Mvelaphanda”)
in 1999, where he currently holds the position of
executive chairman and also serves on several boards
within the Group.
Alternate Directors
Jacob Ulrich - Alternate to Mr Mikki Xayiya (appointed
4 September 2009)
stefan Krieglstein - Alternate to Mr Jaroslaw Paczek
(appointed 10 March 2011)
Directors/Alternate Directors who
have resigned from the Board since
the last annual report
harak Banthia - Non Executive Director (appointed
4 September 2009, resigned 14 February 2011)
B yvonne holm - Alternate to Messrs Banthia & Tandon
(appointed 19 March 2010, resigned 25 January 2011)
peter Thomas - Executive Director and CFO (appointed
25 November 2009, resigned 21 June 2010)
senior Management
Day-to-day management of the Group’s business is the
responsibility of the board of Ophir Services Pty Ltd (“Ophir
Services”). In addition to the persons below, Alan Stein and
Jonathan Taylor also serve on the board of directors of Ophir
Services.
B yvonne holm BA, MA - Chief Financial Officer 1
Ms Holm has 15 years’ of commercial experience with
international oil and gas companies and energy investment
groups. She started her career as Business Analyst in the
Finance Division of Wintershall AG, Germany’s largest
international oil and gas company, where she handled
international Acquisition & Divestment (“A&D”) asset deals
and later as a Senior Project Manager managed various
international corporate acquisition projects. After nine years
at Wintershall, she left to join Amerada Hess Ltd as Senior
Commercial Advisor in London and in 2007 took up a
position with Mittal Investments as General Manager
Business Development focussing on the oil and gas sector.
Ms Holm was responsible for Mittal’s investment into Ophir
in 2008 and she served on the Ophir Board as an alternate
Non-Executive Director representing Mittal. Ms Holm is an
active member of the Association of International Petroleum
Negotiators (“AIPN”) and served on the AIPN Board from
2004 to 2007. In 2005, she initiated and co-chaired a very
successful three day Negotiation Skills Workshop which
she and a group of senior E&P professionals have since
offered 10 times at various international venues. Ms Holm
attended UCLA, Albert Ludwigs University in Freiburg and
Georgetown University, Washington DC and holds a dual
master’s degree in Economics and Cultural Studies.
1
At the date of writing Ms Holm has yet to be appointed to any of the Group’s boards or committees.

11
Control room on the rig floor, Deepsea Stavanger
Michael Fischer Bsc (hons), phD - Chief Operating Officer
Dr Fischer is a geologist who spent the first 10 years of
his career with BP Exploration in Aberdeen. Following
assignments in Spain, Australia, Papua New Guinea and the
People’s Republic of China, he moved to Woodside Energy
Ltd. (“Woodside”) in Perth, where he was part of the group
responsible for building the company’s position outside of
the North West Shelf interests (Woodside’s primary
Australian producing asset). Dr Fischer was part of the core
team responsible for developing and delivering Woodside’s
international strategy. Dr Fischer then took on the position
of asset manager (West Africa) and led the team responsible
for discoveries at Chinguetti, Banda and Tiof. He left
Woodside in 2004 to join OMV Exploration & Production
GmbH as senior vice-president for exploration, operations
and projects where he had full responsibility for both the
geoscience and engineering technical functions. Dr Fischer
joined Ophir in 2006.
John innes Bcom, h Dip Acc, AcA - Director - Finance
Mr Innes is a chartered accountant (qualified in Australia)
with over 20 years’ experience in the resources sector.
Before joining the oil industry in 2001, Mr Innes was a
project manager with responsibility for the overseeing of
Australia’s then largest mining company’s interests in two
large joint ventures in Western Australia. In 2001, Mr Innes
joined Fusion as the finance manager where he was
responsible for all financial and corporate affairs of the
Fusion group. Prior to entering the resources sector Mr Innes
was a senior manager with Deloitte working in Australia
and South Africa where he specialised in corporate advisory
services, taxation and assurance. Mr Innes joined Ophir
in 2004.
Crew change, Deepsea Stavanger
David Bond Bsc (hons) - Director - Drilling
Mr Bond began his career in 1981 as a drilling engineer
with ConocoPhillips Ltd in the North Sea. He has held
several positions in both engineering and supervision
with BHP Petroleum in the Timor Sea and with Woodside.
During his time with Woodside, he pioneered the
development of the “Technical Limit” management process
which significantly changed Woodside’s drilling and
completion performance and has since been adopted by
several major oil companies around the world. Mr Bond was
also Woodside’s international drilling manager and he led
Woodside’s first international operation in deepwater
offshore Mauritania. Prior to joining Ophir, Mr Bond was
general manager (drilling & completions) for Reliance
Industries Limited in India, managing a multi-rig operation
for both ultra-deepwater exploration and ultra-deepwater
developments. Mr Bond is currently leading Ophir’s
capability expansion to drill in ultra-deepwater in Africa.
Mr Bond joined Ophir in 2007.
Andy Oldham Bsc (hons) - Director - Exploration
Mr Oldham began his career in 1981 with Seismograph
Service Limited working for six years in North Africa and
Australia as a field geophysicist and party chief. He then
spent nine years with Santos Limited, working as an
exploration geophysicist on the Cooper/Eromanga Basins
and the Timor Sea. In 1997, he joined Woodside, and during
his ten years there he acted as a technical coordinator on
the Mauritanian, Algerian and Kenyan assets, overseeing the
subsurface exploration teams in those areas. Mr Oldham is
currently responsible for all exploration activities within the
operated and non-operated assets. Mr Oldham joined Ophir
in 2007.
Ophir energy plc | 2010 ANNUAL REPORT
BUsiness review | BOARd Of diRECTORs ANd sENiOR mANAgEmENT

12
2010 ANNUAL REPORT
OPERATiONs REviEw
Ophir energy plc |
BUsiness review |
Business Review
Operation’s Review
Ophir has interests in 16 exploration projects in eight different jurisdictions in Africa.
3D Seismic Acquisition Offshore Tanzania
JUrisDicTiOn
AsseT
pArTicipATing
inTeresT (%)
grOss
AreA (KM 2 )
Tanzania (Operator) Block 1 40 4
7,063
Tanzania (Operator) Block 3 40 4
10,595
Tanzania (Operator) Block 4 40 4
10,007
Equatorial Guinea (Operator) Block R 80 1,674
Gabon (Operator) Mbeli 100 3,384
Gabon (Operator) Ntsina 100 3,299
Gabon (Operator) Manga 100 3,455
Gabon (Operator) Gnondo 100 2,574
AGC (Senegal/Guinea Bissau Common Zone) (Operator) Profond 54.2 1 9,838
Madagascar (Operator) Marovoay 80 12,070
Somaliland (primarily onshore) (Operator) 2 Berbera 75 16,270
Congo (Brazzaville) Marine IX 31.5 5 1,044
SADR (Operator) 3 Daora 50 17,540
SADR (Operator) 3 Haouza 50 17,277
SADR (Operator) 3 Mahbes 50 16,338
SADR (Operator) 3 Mijek 50 23,172
Notes
1 l’Entreprise AGC has a 12% beneficial interest, with an option to increase such beneficial interest by a maximum of 5%, Rocksource currently has an
interest of 5% in the PSC but may earn up to 25% in total by making a promoted contribution towards the cost of the first two exploration wells.
FAR may earn 10% paying interest (8.8% beneficial interest) by making promoted contributions towards the cost of the first well.
2 The Berbera PSA was granted by the Government of Somaliland. Although a declaration of independence was made by Somaliland in 1991, it is yet
to be recognised as a sovereign state by the United Nations. The Company’s rights under this PSA remain uncertain pending recognition of sovereignty.
Ras Al Khaimah Gas Company (“RAKGas”) has an interest of 22.5% in the permit. The Government of Somaliland has 2.5% equity in the permit.
3 Title remains subject to the approval of a United Nations Resolution granting the SADR international recognition as an independent and sovereign state.
4 These numbers will be adjusted following completion of negotiations with the Government regarding variations to the relinquishment obligations.
5 The Company’s participation in Marine IX is subject to satisfactory negotiations with the Government regarding an extension of the current term of
the PSC.

13
The operational activities undertaken by the Company over the reporting period to date are summarised below:
Senegal
• Farm in option with FAR to be
exercised post drilling of first AGC well
AGC
• Farm out to FAR
• Acquired CSEM survey
• Contracted rig for Q2 2011
JDZ
• Exited Block 3 after sub-commercial
gas discovery
Equatorial Guinea
• Interpretation of new 3D seismic
and completion of conceptual
field design project
Gabon
• Marine gradiometry surveys
• Advanced stage of a farm out of
Mbeli and Ntsina
Tanzania
• Gas Commercialisation Agreements
• Farm out to BG International
• Pweza gas discovery
• Chewa gas discovery
• Chaza gas discovery
Madagascar
• Farm in to Marovoay Block via
Wilton Petroleum
• Airborne gradiometry and
magnetic survey
Ophir energy plc | 2010 ANNUAL REPORT
BUsiness review | OPERATiONs REviEw
Figure 3 - Operational Highlights over the reporting period
Blocks 1, 3 and 4, Tanzania
Overview
The three Tanzanian blocks, Blocks 1, 3 and 4, cover a large
area of unexplored acreage in the Ruvuma and Mafia Deep
Basins area (27,371km 2 ), located in water depths ranging
from approximately 100m to greater than 3,000m. During
the period the Company has participated in the drilling of
three significant gas discoveries at Chewa-1, Pweza-1 and
Chaza-1. Neither the Company nor its partners BG have
released estimates of potential gas volumes encountered by
these wells; however Management are now confident that
further exploration and appraisal drilling will demonstrate
the presence of sufficient volumes of gas to support the
construction of one or more LNG processing facilities which
will allow the export of gas to world markets.
Tanzania
Chewa-1
Pweza-1
Block 1
Block 4
Block 3
The shallow water and onshore extensions of these basins
have seen only limited exploration which has resulted in two
commercial gas developments (Songo Songo and Mnazi
Bay), which currently supply gas to local markets.
The results of the Group’s recent drilling activity in Blocks 1
and 4 have confirmed the presence of both Tertiary and
Cretaceous reservoir systems. Management’s interpretation
of seismic data carried out on these blocks suggests the
reservoir systems were derived from the Ruvuma Delta
system in the south and the Rufiji Delta system in the north.
All three of the recent wells drilled in Blocks 1 and 4 have
encountered gas within Tertiary reservoirs and each
discovery is associated with a distinctive seismic signature
or anomaly which is considered to be caused by the
presence of gas within the pore volumes of the reservoir.
Such anomalous seismic responses are commonly referred
to as direct hydrocarbon indicators (“DHIs”) and they are
used as a diagnostic indicator to identify potential drilling
locations. DHIs are the observed response from the
hydrocarbon:water contact or the change in response
between hydrocarbon saturated and water saturated
reservoir rocks. Given the relationship between DHIs and
gas charge in all the wells drilled in Blocks 1 and 4 to date,
it is expected that future exploration within the Tertiary
Mozambique
Chaza-1
Windjammer-1
Figure 4 - Blocks 1, 3 and 4 - Tanzania
Tubaroa-1
Barquentine-1
Lagosta-1
Collier-1
Ironclad-1
LEGEND
Ophir Well
Existing Oil Discovery
section will be guided by the presence of several other
anomalous features in all three blocks.
The older Cretaceous reservoirs, which typically have higher
densities due to greater compaction, do not exhibit such
clear anomalous seismic responses. The wells in Blocks 1
and 4 have demonstrated the presence of viable reservoir
sections within the Cretaceous but these have yet to be
tested in optimal locations for the discovery of
hydrocarbons.

14
Ophir energy plc | 2010 ANNUAL REPORT
BUsiness review | OPERATiONs REviEw
The Group’s drilling results to date have demonstrated that
the basins in southern Tanzania can generate significant
quantities of gas. The presence of a regionally extensive
gas-prone system is confirmed by recent discoveries
made immediately to the south of Block 1 in northern
Mozambique, in a block in which the Group does not have
an interest, where an Anadarko-operated joint venture has
reported several gas discoveries. Numerous potential source
rocks are present, ranging in age from Permo-Triassic
(Karoo) through to Middle Eocene. The most significant
source rocks are thought to be Jurassic to Cretaceous in age
and these are sufficiently deeply buried in the western parts
of Blocks 1, 3 and 4 to be within the gas window.
The basins of southern Tanzania and northern Mozambique
have also produced an oil charge. Oil is present in the Mnazi
Bay Field and residual oil columns have been reported in
exploration wells to the west of Mnazi Bay. Oil seepages
are recorded along the coast and the Nyuni-1 well west of
Block 4 encountered Jurassic age oil-prone source rocks.
The Anadarko-led joint venture in northern Mozambique
reported the presence of a significant oil column in poorly
developed Cretaceous reservoirs in its Ironclad
exploration well.
Management believes the Jurassic and Cretaceous source
rocks that lie within the gas window in the west of Blocks 1,
3 and 4 are less deeply buried towards the east of the
blocks where they may be mature for oil generation.
The Group has recently acquired an extensive 5,000km 2
3D seismic survey over this part of the basin targeting a
prominent structural feature called the Seagap Ridge.
In preparation for the recent drilling campaign the Company
has been instrumental in transforming the port and airport
facilities in Mtwara in southern Tanzania into an oilfield
supply base capable of supporting deepwater drilling
operations. In October 2009, Ophir Tanzania (Block 1)
Limited (“Ophir Tanzania (Block 1)”) entered into a lease
agreement with the Tanzania Port Authority pursuant to
which it was granted the right to develop the existing
port at Mtwara as a supply base for drilling campaigns.
The upgrading of the facilities at Mtwara has involved a
considerable amount of civil works to improve the capability
of the port and airport and the training of local workers to
provide essential services. At the peak of operations during
the recent drilling campaign there were more than 65
expatriate workers based in the Group’s facilities in Mtwara,
supported by over 230 local employees.
Interests
On 29 October 2005, the Group was awarded a 100%
interest in Block 1, offshore Tanzania. TPDC has back-in
rights in Block 1 of 12% exercisable at any time. On 19 June
2006, the Group was awarded 100% interest in Blocks 3
and 4. In Blocks 3 and 4, TPDC has a back-in right of 15%,
12% exercisable at any time and a further 3% exercisable
within 12 months of a declaration of commerciality. The
Group currently holds its interest in each block through its
wholly owned subsidiary, Ophir Tanzania (Block 1).
On 26 May 2010, the Group entered into a suite of
agreements with the Government of Tanzania and TPDC
granting it the rights to develop, build and operate the
infrastructure required to exploit any discovery of natural
gas in any of Blocks 1, 3 or 4. The agreements also grant the
right to export and sell any recovered gas (converted to LNG
or other gas products) into the international market. The
suite of documents include an implementation agreement
relating to all of Blocks 1, 3 and 4 and an addendum to each
of the production sharing agreements relating to Blocks 1, 3
and 4 which incorporate gas terms (together the “Gas
Commercialisation Agreements”).
On 16 April 2010, the Group entered into a farm out
agreement with BG (the “BG Farm Out Agreement”),
granting BG a 60% participating interest share in each
of Blocks 1, 3 and 4.
Operatorship
Under the terms of the BG Farm Out Agreement,
Ophir undertook to act as the operator on behalf of
the Contractors until the completion of the first three
exploration wells and the acquisition of the 3D seismic
survey at which point operatorship would transfer to BG.
The process of transferring operatorship is currently
underway.
Exploration and appraisal
In 2006, the Group completed a considerable amount of
work to establish a stratigraphic framework for the whole
of the southern Tanzanian offshore area in order to gain a
better understanding of potential reservoir distribution and
source potential. Infill 2D seismic surveys were acquired over
Block 1 in 2005 and Blocks 3 and 4 in 2006. Based on
these data, a significant portfolio of large prospects was
identified, many of the prospects having multiple targets.
Management believe the probability for success for many of
these prospects is enhanced because of the interpreted
presence of seismic DHIs.
There is a considerable body of evidence to suggest that
the petroleum system in the deepwater areas can generate
oil, but nearby discoveries at Mnazi Bay, Songo Songo,
Mafia Island, Windjammer and the recent gas discoveries
(see below) by the Company show that the basin is
predominantly gas-prone. Given the size of the prospects, it
is likely that gas discoveries would be commercially attractive
and able to support a significant LNG development. On this
basis, the Company entered into the Gas Commercialisation
Agreements with the Government of Tanzania and TPDC
which now provide the joint venture with the contractual
framework to develop any such significant gas discoveries.
The Company commenced drilling operations during the
second half of 2010 using the newly built semi-submersible
rig Deepsea Stavanger. Over the period September 2010
to date the Company drilled three wells with each well
encountering a significant gas column. Following drilling
of its first well, the Pweza-1 exploration well located in
Block 4, the Company announced on 17 October 2010 that
it had encountered a thick section of gas-bearing sands. In
December 2010 the Company announced that a significant
gas discovery had been made in the Chewa-1 exploration
well. A third gas discovery in the Chaza-1 well was made
subsequent to 31 December 2010.

Forward plan
The recent drilling results are currently being evaluated.
The wealth of new data provided by these wells can now
be calibrated back into existing seismic data to upgrade the
extensive portfolio of prospects and leads within all three
blocks. In January 2011, the Company commenced the
acquisition of a 5,000km 2 3D seismic survey in the eastern
part of the blocks. The data produced by this survey will
be processed during 2011 with evaluation expected to
commence during the second half of the year.
It is planned to further upgrade the facilities at Mtwara in
partnership with other oil companies operating in the region
to allow for the operation of more than one drilling rig at
any one time.
The Directors expect, following the transfer of operatorship
to BG, that there will be another multi-well drilling
campaign beginning in the second half of 2011. This will
involve a mix of exploration and appraisal wells.
Block r, equatorial guinea
Overview
Block R in Equatorial Guinea (“Block R”) is located in the
south-eastern part of the Niger Delta complex, close to
numerous significant oil and gas discoveries made in the
Nigerian sector, including Akpo (600MMbbl of condensate
and 1.2Tcf of gas), Usan/Ukot (600MMbbl of oil and 250Bcf
of gas) and Zafiro (1,200MMbbl of oil).
Usan West
Usan
Ukot
Lykos-1
Nigeria
Estrella de Mar-1
(Gas Discovery)
Fortuna-1
Oreja Marina-1
(Gas Discovery)
Exploration and appraisal
Three wells were drilled in Block R in late 2008, two of
which (Fortuna-1 and Lykos-1) discovered significant
volumes of dry gas. Fortuna-1 tested a seismic amplitudesupported
prospect in a deepwater clastic fan which was
deposited in front of the developing Niger Delta thrust
belt. The well intersected a number of gas columns in slope
channel facies. Lykos-1 tested a four-way dip-closed
structure, also with strong seismic DHI support. There are a
large number of Lykos look-alike prospects within Block R,
many of which have been significantly de-risked by the
Lykos-1 result. The third well, Bythos-1, tested a large
thrust-related, anticlinal structure with multiple stacked
target horizons. The well encountered excellent reservoir
sections although these were water-wet. Hydrocarbon
shows while drilling do however, suggest the presence
of an oil charge system in the area.
The Company entered into a two year first extension period
for Block R on 18 April 2010. This term carries a one well
commitment, which has already been met by drilling the
Lykos-1 well. Appraisal locations have been declared over
the Lykos and Fortuna discoveries.
Prior to drilling, only approximately 30% of the Fortuna
prospect was covered by 3D seismic data. To properly
evaluate the discovery, a new 1,050km 2 3D seismic survey
was acquired in May 2009. This survey covers the full extent
of the Fortuna discovery as well as imaging the area along
strike from Fortuna, to explore for similar features in front of
the thrust zone. The new Fortuna 3D survey also extends
the seismic coverage to the north-west, into an area which
is best located to receive oil charge from the north.
Based on the exploration successes to date and the presence
of numerous DHIs similar to those encountered during
drilling, Management believe that there are potentially
sufficient gas resources in Block R to sustain a commercially
viable development based on current gas price assumptions.
A number of subsurface and engineering studies have been
carried out with a view to assessing potential development
schemes. These include both a pipeline back to an existing
LNG plant on Bioko Island where the gas could underpin
a second LNG train and an independent Floating LNG
(“FLNG”) development.
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Ophir energy plc | 2010 ANNUAL REPORT
BUsiness review | OPERATiONs REviEw
Interest
Bythos-1
Block R
Equatorial Guinea
Figure 5 - Block R - Equatorial Guinea
LEGEND
Ophir Well
Existing Oil Discovery
The Group has a 100% paying interest with the state oil
company, GEPetrol, being carried through exploration for
its 20% beneficial interest (ie the Group bears the full cost
of exploration during the exploration phase but receives a
reimbursement of the 20% carried amount from GEPetrol
in the production period).
Forward plan
The Company is in advanced negotiations with the
Government of Equatorial Guinea regarding the
incorporation of gas terms into the PSC in respect of Block
R. In parallel, there are discussions with other stakeholders
in the area to identify ways in which the project can be
moved forward as efficiently as possible within the
framework of the gas commercialisation structure proposed
by the Government for a second LNG train on Bioko Island.
The Company aims to undertake a combination of appraisal
and exploration drilling sufficient to demonstrate that Block
R has the capacity to produce foundation volumes of gas
for an LNG project. It is expected that up to three appraisal
wells and four exploration wells will be required to
demonstrate project viability. Suitably qualified parties
will be invited to join the Block R joint venture ahead of
undertaking this drilling activity which could commence
during the second half of 2011.

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Ophir energy plc | 2010 ANNUAL REPORT
BUsiness review | OPERATiONs REviEw
Mbeli, ntsina, Manga and gnondo
Blocks, gabon
Overview
The Mbeli Marin, Ntsina Marin, Manga Marin and
Gnondo Marin blocks are situated west and north of the
petroliferous Ogooué Delta complex. The Ogooué Delta
complex is a proven hydrocarbon province, where over
2,000MMbbl of oil and 900Bcf of gas have been discovered
since the 1960s.
LEGEND
Ophir Well
Existing Oil Discovery
Existing Gas Discovery
Existing Oil &
Gas Discovery
Existing Oil, Gas &
Condendate Discovery
Interests
Mbeli Marin
Ntsina Marin
Manga Marin
Ngollon-1
Gnondo Marin
Frake Noir-1
Post Gentil
Figure 6 - Mbeli, Ntsina, Manga, Gnondo Blocks - Gabon
The Group was awarded a 100% interest in the
four deepwater blocks on 16 March 2005. Upon the
commencement of production from a field within each of
the blocks, the Government of Gabon will automatically
receive a 10% participating interest in three of the blocks
(Gnondo, Ntsina and Mbeli) and a 15% participating interest
in relation to the Manga block. The Group is in advanced
farm out negotiations with respect to the Mbeli and
Ntsina blocks.
Exploration and appraisal
Gabon
The Group has carried out an extensive review of the
regional petroleum geology. Significant progress was made
in understanding the source and migration risks, reservoir
distribution and trapping mechanisms and a variety of
prospect types were identified across all four blocks.
The second exploration period for Ntsina and Manga
commenced on 14 September 2007 and the Group drilled
two independent play types in late 2008 using the Deep
Venture drillship. Frake Noir-1 was drilled in Ntsina and
Ngollon-1 in Manga and fulfilled the PSC work obligations
for the two permits. Although these wells did not intersect
live hydrocarbon columns they significantly improved the
Group’s understanding of the petroleum system within
the blocks.
Whilst the drilling campaign was being carried out,
extensions to the first term were granted for Mbeli and
Gnondo and the exploration period for Gnondo and Mbeli
commenced on 14 September 2009.
Following assessment of the drilling results, together with
continued regional play system analysis, the Group has
switched the focus of exploration efforts to the pre-salt
sedimentary section. In 2009, the Group carried out a
300km 2D seismic survey to test the imaging ability of deep
tow, dual receiver long cables. The objective was to test this
new acquisition method to image the sub-salt stratigraphy.
The outcome was encouraging and as a result, the Group
proposes to acquire a 3D seismic survey specifically tuned
to image the pre-salt sedimentary section.
To complement the new seismic data, the Group acquired
a 2,000km 2 marine gravity gradiometry survey over Mbeli
and Ntsina early in 2010. Gradiometry is a three-component
gravity acquisition method which provides a significant
improvement in data fidelity over standard gravity methods.
The Gabon survey produced excellent results and has
provided valuable information on the structure and
thickness of the pre-salt sedimentary section.
The Group made application to the Gabonese authorities
to amend the Mbeli and Ntsina PSCs, to extend the second
exploration period in respect of those blocks for three years
from the signature date of the amendments and modifying
the work programme in both the second and third
exploration periods to facilitate exploration of the pre-salt
play offshore Gabon. The Group has received verbal
approval of the extension request and awaits formal
written confirmation.
A total of US$6.8 million was written off the carrying value
of capitalised exploration relating to Gabon PSCs for reasons
of impairment. (Refer notes 9(ii) (a) and 9(ii) (c).)
Forward plan
Following completion of the proposed farm out agreement
the Group intends to acquire a minimum of 2,000km 2 of 3D
seismic data over the Mbeli and Ntsina blocks specifically
designed to image the pre-salt sedimentary section. This
data will be used to further define the structural leads
already mapped beneath the salt and to determine the
optimal location to drill exploration wells. The Company
plans to invite expressions of interest from suitably qualified
companies to farm in to the Gnondo and Manga blocks to
pursue the various prospects and leads already mapped
within these blocks.

Agc profond, Agc
Overview
AGC is a joint commission set up by the Governments of
Senegal and Guinea-Bissau to administer the maritime zone
between the two countries. The AGC Profond block (“AGC
Profond”) consists of the deepwater portions of two blocks
previously known as Cheval Marin and Croix du Sud.
LEGEND
Ophir Well
Existing Oil Discovery
AGC
Profond
Rufisque
Offshore
Sangomar
Offshore Sangomar
Deep Offshore
Kora-1
Dorne
Flore Field
Sinapa Field
Gambia
Senegal
Guinea
Bissau
Guinea
In late 2008, a CSEM survey was conducted. The results
were encouraging and have highgraded a number of
prospects. The joint venture decided to drill the Kora
Prospect in the northern part of the AGC Profond area.
The Kora Prospect is a four-way dip-closed structure and
is one of several such structural closures within the AGC
Profond area.
Forward plan
The semi-submersible rig Maersk Deliverer has been
contracted to drill the Kora Prospect early in 2011. The Kora
Prospect has several stacked reservoir objectives over a
robust four-way dip-closed structure which has the potential
to contain several hundreds of millions of barrels.
Marovoay Block 2102 - Madagascar
Overview
In July 2010, the Group acquired from Wilton an 80%
participating interest and operatorship of a PSC relating
to the Marovoay Block 2102, onshore Majunga basin in
Madagascar (“Madagascar PSC”).
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Ophir energy plc | 2010 ANNUAL REPORT
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Figure 7 - AGC Profond - AGC
Interest
The Group has an 83% participating interest in the block
during exploration with the state owned entity, l’Entreprise
AGC S.A. (“Entreprise”), holding a 12% interest and having
a right to back-in for a further 5% interest following a
declaration of commerciality. Rocksource has earned a 5%
interest by funding a controlled source electromagnetic
(“CSEM”) programme and their promoted contribution
to the first well will permit them to increase this to 15%.
A further 10% interest will be available should they elect
to make a further promoted contribution to a second
exploration well.
Mariararo-1
Mahajanga
Mahajamba-1
Block 2102:
Marovoay
Madagascar
In October 2010, the Group entered into a heads of
agreement with FAR, an ASX-listed oil and gas exploration
and production company. The heads of agreement enables
FAR to acquire a 10% paying interest (8.8% beneficial
interest) in the AGC Profond PSC by contributing 15%
of the cost of the first exploration well. The heads of
agreement gives the Group the right to acquire a 25%
interest in FAR’s three licences in Senegal which cover an
area of 7,990km 2 and include several deepwater prospects
that are considered to be analogous to prospects in the
AGC area.
In the event that both Rocksource and FAR complete their
full earning obligations the Company’s participating interest
will reduce to 54.2%.
Exploration and appraisal
The first exploration period commenced on 19
September 2006. The first renewal period commenced
on 19 September 2009 and lasts for two years with a
commitment to drill one exploration well to a minimum
depth of 1,500m. An extension for a further two years
is possible with a further commitment to drill another
exploration well, also to a minimum depth of 1,500m.
Figure 8 - Marovoay Block 2102 - Madagascar
Wilton has undertaken an initial prospectivity assessment
of the block that included reprocessing of legacy seismic
data, extensive field studies and sample analysis. A revised
geological model has been developed which has potentially
significant implications for the prospectivity of the basin.
The Group has acquired approximately 3,600km 2 of high
resolution gravity gradiometry and aeromagnetic data,
through a contract with UK potential field specialists ARKeX
Ltd in order to test these geological concepts.
Under the terms of the farm in agreement entered into with
Wilton, the Group will fund 100% of the cost incurred
during the first exploration phase (carrying Wilton’s 20%
interest) and will also carry Wilton’s share of costs during
the second exploration phase and the third exploration
phase, subject to certain agreed caps.

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Ophir energy plc | 2010 ANNUAL REPORT
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Interest
The Group has an 80% participating interest in Marovoay
Block 2102 and is designated as the operator.
Exploration and appraisal
The sedimentary sequence comprises an eastern Permo-
Triassic failed rift sediment infill and a western Jurassic-
Cretaceous passive margin section. Management believe
that the wide variety of structural styles, the influence of
halokinesis, the presence of organic rich shales and
hydrocarbons in nearby wells and at outcrop, together
with potential reservoirs at the Permo-Triassic, Jurassic and
Cretaceous levels make Marovoay Block 2102 an attractive
block for further exploration. In addition, the use of
high-resolution gravity gradiometry data provides an
opportunity to benefit from the early application of new
technology that was previously not available. Management
believe that new insight afforded by the interpretation of
these data could help reduce the risk associated with
exploration drilling based on existing seismic data.
The current exploration phase is due to expire on 8 July
2011 and the Group is required to notify the Government
of its election to move into the first extension period by
8 June 2011. During the first extension period (which
expires on 8 July 2013), there is an obligation to drill one
exploration well.
Berbera psA, somaliland
Overview
The geology of Somaliland is considered to be contiguous
with that of Yemen. Reconstructions of the tectonic plates
in the area as they were prior to the opening of the Gulf of
Aden, suggest that the geological structures within the
Berbera PSA were continuations of the rift basins in Yemen
which host a substantial number of oil discoveries.
In April 2003, Rova Energy Corporation Ltd (“Rova”)
entered into the Berbera Block PSA (“Berbera PSA”) with
the Government of Somaliland which was subsequently
amended by an addendum in May 2006. Rova was a special
purpose company established to acquire and develop the
Berbera PSA. In return for providing early funding,
Mvelaphanda was awarded an option to acquire 75% of
Red Sea
Eritrea
Ethiopia
Djibouti
Yemen
Berbera
PSA
Somaliland
Gulf of Aden
Somalia
the issued share capital of Rova. The remaining 25% was
held by a private individual. The Group acquired this option
from Mvelaphanda in October 2004 and in March 2005
exercised its option to acquire 75% of Rova. In February
2007, the Group and the private individual agreed to
exchange the Group’s shareholding in Rova for a direct
interest in the Berbera PSA. This was subsequently ratified
by the Government of Somaliland in March 2007 (with the
transaction completing in May 2007) and the Group is now
a direct participant in the Berbera PSA holding an interest of
75% and is the designated operator. In 2008 Rova agreed
to sell its 25% interest in the Berbera PSA to RAKGas.
The Group and RAKGas currently participate in the
Berbera PSA through a joint venture governed by a joint
operating agreement.
The Republic of Somaliland re-declared its independence
from Somalia in 1991. It remains subject to a sovereignty
dispute with neighbouring Somalia but is in active
diplomatic discussions with surrounding states and the
African Union regarding formal recognition of its
independence.
So long as sovereignty over the Berbera PSA area remains
disputed, the Group’s rights and obligations in respect of its
Somaliland assets also remain uncertain. As a consequence
US$5.3 million was written off at 31 December 2010 for
reasons of impairments. (Refer to note 9(ii) (a).)
The Berbera PSA, located in northern Somaliland, is
predominantly onshore but also extends offshore into the
Gulf of Aden.
Interest
The Group owns 75% of the Berbera PSA and is designated
as the operator.
Exploration and appraisal
Management believes that the petroleum geology of
Somaliland is contiguous with that of Yemen (a territory
where there have been significant oil discoveries and
production). The Group acquired 2D seismic data offshore
and completed an aeromagnetic survey over the onshore
areas in Q1 2008. The Group is currently in the third
exploration period which commenced on 1 December 2010.
Forward plan
Following a re-interpretation of the surface and sub-surface
geology the Group has identified locations where, following
the acquisition of additional seismic data, it believes
drillable prospects could be defined. Discussions with the
Government of Somaliland are underway to re-configure
the terms of the Berbera PSA to allow for the acquisition of
new seismic data. If, following the acquisition of these data,
it is possible to define risk covered prospects, the Group
intends to drill one or possibly two exploration wells.
Figure 9 - Berbera PSA - Somaliland

Block Marine iX, congo
(Brazzaville)
Overview
Ophir is a partner in a joint venture with Premier and Kufpec
in the Marine IX block offshore Congo (Brazzaville) (“Block
Marine IX”); Premier are in the process of withdrawing
from the joint venture. Block Marine IX lays offshore Congo
(Brazzaville) in the area where the Tertiary aged Congo Basin
Fan overlies the Cretaceous to Tertiary Lower Congo Basin.
The gross area of Block Marine IX is 1,044km 2 and water
depths range from 300 to 1,200m.
therefore drilled as a sole risk operation by the remaining
joint venture participants. US$1.0 million of capitalised
exploration costs were written off at 31 December 2010.
(Refer to note 9(ii) (b).)
saharawi Arab Democratic republic
(“sADr”)
Overview
SADR was formerly known as Western Sahara and was a
Spanish colony until 1960, when it was known as Spanish
Sahara. The area is subject to a sovereignty dispute between
the indigenous Saharawi people, as represented by the
Government of the SADR, and the Kingdom of Morocco.
The SADR is recognised as a sovereign state by the African
Union but has yet to receive full international recognition by
the United Nations.
19
Ophir energy plc | 2010 ANNUAL REPORT
BUsiness review | OPERATiONs REviEw
Congo
Morocco
Masseko Marine
Yombo Marine
Loango Marine
Zatchi Marine
Daora
Laayoune
Liklala Marine
Haouza
Frida Marine
Yanga Marine
Sendji Marine
Mijek
Mahbes
Saharawi Arab
Democratic
Republic (SADR)
Fderik
Mauritania
Marine IX
Kitina Marine
Emeraude Marine
Nouadhibou
Figure 11 - Daora, Haouza, Mahbes and Mijek Blocks - SADR
LEGEND
Ophir Well
Existing Oil Discovery
Interest
Moho Bilondo Complex
Ophir has a 31.5% interest, Premier (operator) has a 31.5%
interest and Kufpec has a 27% interest. The Government
have a 10% carried interest.
The First Exploration Period expired on 4 October 2010.
Premier notified the Government of its intention to
withdraw at the end of the first exploration period.
The remaining partners applied for a 12 month extension
(5 October 2010 to 4 October 2011) to allow time to finalise
the withdrawal of Premier and the assumption by Ophir
of operatorship. If the negotiations for an extension are
successful, then the Company may acquire some additional
interest in the PSC.
Exploration and appraisal
Boatou Marine
N’Kossa Marine
Nemba
Figure 10 - Block Marine IX - Congo (Brazzaville)
The Frida-1 exploration well drilled by Premier and Kufpec
during 2009 to test a Cretaceous aged carbonate raft play
did not encounter any hydrocarbons. Ophir had elected not
to participate in the drilling of Frida-1 and the well was
Takula
On 16 March 2006, the Group and Premier Oil (SADR)
Limited (“Premier Oil SADR”) entered into assurance
agreements (the “Assurance Agreements”) and associated
PSCs with the government of the SADR in respect of four
blocks (Daora, Haouza, Mahbes and Mijek) in the offshore
Aaiun Basin. These agreements give each of the Group and
Premier Oil SADR a 50% interest in each block. The Group is
designated as the operator in respect of each asset. The four
areas under licence cover a total area of 74,327km 2 in water
depths ranging from 0 to 2,500m. The Assurance
Agreements signed by the Group specify that the associated
PSCs will not come into effect until, amongst other things,
the SADR has been formally recognised as an independent
and sovereign state by the United Nations. Pending such
recognition, the Group has no rights to carry on exploration
activities in the licence area and no material obligations in
respect of these assets. If the SADR has not been recognised
as a sovereign state by 2016 and the agreements are not
extended, the Assurance Agreements and associated PSCs
will terminate and the Group’s conditional rights and
obligations will fall away.
relinquished assets
Block 3, Nigeria/São Tomé & Principe JDZ
The JDZ is jointly administered by the governments of
Nigeria and São Tomé & Principe. Subsequent to 31
December 2010, the Group withdrew from the Block 3
PSC and relinquished its 4% interest.

20
Ophir energy plc | 2010 ANNUAL REPORT
BUsiness review | fiNANCiAL REviEw
Business Review
Financial Review
Overview
During the year under review, the development of the Group’s
exploration assets continued to be financed by funds raised
through equity issues in 2008 and 2009 and a convertible
bond issued in 2007 and converted into shares in May 2008.
There were no fresh issues of shares in 2010.
The Group’s projects are all in the exploration stage and, other
than interest revenue and funds derived by the farm out of its
Tanzanian Blocks to BG, the Group did not derive any revenues
in 2010.
result for the year
The audited Financial Statements for the year ended
31 December 2010 are set out in the Financial Statement
section of this Annual Report on pages 38 to 71.
The Group recorded a loss for the year after taxation of
US$19.278 million (2009: US$43.266 million). No dividends
were paid or declared by the Company during the financial
year (2009: nil) and the Directors do not propose to pay a
dividend for the year ended 31 December 2010.
The loss for the year includes US$11.344 million of exploration
expenditure expensed (net of recoveries), general and
administrative costs of US$7.272 million, finance costs of
US$0.429 million and other costs of US$0.766 million
Exploration Expenditure
Exploration expenditure comprises pre-licence exploration costs
of US$2.030 million charged directly to the Income Statement,
as well as unsuccessful exploration expenditure written off in
accordance with the Group’s accounting policy (refer note 2.5
to the Financial Statements) of US$13.308 million. This was
offset by the recoupment of expenditure previously written
off of US$4.009 million arising on farm out of the Group’s
Tanzanian interests to BG.
Pre-licence exploration expenses include costs that are incurred
in respect of exploration activities prior to the time that a
licence to explore the area has been obtained. They are written
off in the period they are incurred in accordance with
International Financial Reporting Standards (“IFRS”).
Unsuccessful Exploration Expenditure
The carrying value of exploration and evaluation assets are
reviewed for impairment when events or changes in
circumstances indicate the carrying value may not be
recoverable. Unsuccessful Exploration Expenditure written
off at 31 December 2010 comprised:
(a) Expenditure on licences in Gabon (the Manga PSC,
US$0.439 million) and Somaliland (the Berbera PSA,
US$5.276 million) where the Group is negotiating with
authorities to extend expired exploration terms and where
such negotiations were incomplete at 31 December 2010.
(b) Costs relating to exploration licences in Congo (Brazzaville)
(US$1.031 million) and the JDZ (US$0.167 million) where it is
likely that the Group will relinquish such licences at the end
of their current licence terms.
(c) Costs of US$6.339 million relating to the Gnondo PSC
in Gabon.
General & Administrative Expenses
General & Administrative expenses; which include personnel
costs, administration costs (of the Group’s London and Perth
offices), professional and corporate costs (audit, legal and other
professional advisors’ costs, directors’ fees, board meeting costs,
corporate travel and promotion), share-based payments, charges
and general and administration costs totalled US$7.272 million
(2009: US$6.870 million).
Finance Costs
Finance costs for the year of US$0.429 million relate to foreign
exchange gains arising on the fluctuation of the Group’s
functional currency, the US Dollar, against other currencies
(mainly Pounds Sterling and the Australian Dollar in which some
of the Company’s expenses and costs are incurred). The prior
year comparative of US$11.031 million includes a loss on close
out of a forward exchange contract relating to a capital raising
completed in that year.
Other Expenses
Other expenses of US$0.766 million (2009: US$4.090 million)
primarily consist of depreciation and amortisation and relate to
the write down of the Company’s furniture and equipment and
geological databases over their estimated useful lives.
cash Flow
Overall, the Group expended US$12.754 million in operating
activities including the US$2.030 million of pre-exploration
licence activities. A further US$44.595million was expended on
exploration. The farm out of the Group’s Tanzanian licence
interests to BG generated a cash inflow of funds of US$11.268
million on the completion of the transaction (and the US$4.009
million write back to the Income Statement referred to previously).
(Refer to Group Statement of Cash Flows on page 43.)
The net cash outflow of the Group for the year ended
31 December 2010 was US$45.386 million, leaving cash and cash
equivalents held by the Group at year end totalling US$89.925
million. The Group had exploration commitments of US$39.077
million at 31 December 2010 of which US$37.211 million is due
within one year. (Refer note 23(b) to the Financial Statements.)
Future Developments
The pace of activity is expected to increase in 2011 and this
will require the Company to seek additional sources of finance.
Major expenditure will comprise the Kora-1 well to be drilled in
the AGC in the second quarter of 2011 and expected, but yet
uncommitted, further appraisal and exploration drilling

21
campaigns offshore Tanzania and Equatorial Guinea in the
latter part of the year. The Board is currently considering how
best to secure efficient access to capital, while at the same
time, providing shareholders with an opportunity to realise
value for the investment they have made in the Company
including a listing for the Company’s shares in the near future.
Balance sheet
The discussion below summarises movements in selected line
items from the Group’s Balance Sheet which is set out on
page 41 of this Annual Report.
Non-current assets
As at 31 December 2010, exploration and evaluation assets
totalled US$270.043 million compared to US$238.295 million
as at 31 December 2009. This was due primarily to
capitalisation of US$45.071 million of exploration and
evaluation expenditure incurred during the financial year
ended 31 December 2010 less US$13.308 million written off.
Current assets
The Group held inventories of US$9.058 million as at 31
December 2010 (2009: US$9.116 million). These comprise
drilling materials held by the Group for planned future drilling
campaigns. Receivables include debtors of US$3.070 million
(2009: US$1.136 million) and a receivable of US$42.225 million
representing an offset of a liability of the same amount referred
to in the following section on liabilities. Cash and short-term
deposits stood at US$89.925 million as at 31 December 2010
compared to US$135.077 million as at 31 December 2009,
reflecting the net cash used in operating, investing and
financing activities.
Liabilities
The Group had no debt at 31 December 2010 (2009: Nil).
Trade payables and accruals totalled US$17.502 million at year
end (2009: US$13.461 million). In addition, at 31 December
2010 the Group recorded a liability in respect of a joint venture
partner’s share of liabilities arising under contracts entered into
by a subsidiary as operator of that joint venture of US$42.225
million. This amount is offset by a receivable of the same
amount referred to in the current assets section above.
Commitments
In acquiring its oil and gas interests, the Group has pledged
that various work programmes will be undertaken on each
permit/interest. The exploration commitments are tabulated
in note 23(b) to the Financial Statements on page 66 and are
an estimate of the minimum expected cost of performing
these work programmes
Contingent liabilities
As at 31 December 2010 the Group did not have any
contingent liabilities.
purpose of these financial instruments is to provide finance for
the Group’s operations. The Group does not generally enter into
any derivatives transactions.
The main risks arising from the Group’s financial instruments
are foreign currency risk and interest rate risk.
Credit risk
Credit risk refers to the risk that a third party will default on its
contractual obligations resulting in financial loss to the Company
or Group. The Group does not require collateral where credit is
extended to third parties. The Group measures credit risk on a
fair value basis. The Company and Group’s maximum exposure
to credit risk of third parties is the aggregate on the carrying
value of its cash and short-term deposits and other receivables.
Interest rate risk
Cash at bank is held in call accounts at floating interest rates
based on the relevant inter-bank rates. Cash held on deposit
earns interest at rates set in advance for periods ranging from
one to six months. The average rate of interest on deposits for
the Group at 31 December 2010 was 0.65% (2009: 0.63%).
No other financial assets or liabilities of the Group or Company
are interest-bearing.
Foreign currency risk
The Company operates in the UK and the Group, through its
principal subsidiaries, Ophir Services Pty Ltd (“Ophir Services”)
and Ophir Holdings Limited, operates in both Australia and Africa.
The US Dollar has been adopted as the functional currency of the
Company and its subsidiaries (with the exception of Ophir Services
which uses the Australian Dollar). As the majority of the Group’s
expenditure is incurred in US Dollars, the use of the US Dollar as
the functional currency acts as a natural hedge on the majority of
the Group’s expenditure. However, most of the expenses of the
Company are denominated in Pounds Sterling and most of those
of Ophir Services are denominated in Australian Dollars. As at
31 December 2010, the Group and Company did not have any
hedging mechanisms in place for Pounds Sterling or the Australian
Dollar commitments, however both the Company and Ophir
Services hold funds in Pounds Sterling or Australian Dollars for their
short-term needs. Rates of exchange used at 31 December 2010
to translate assets and liabilities denominated in Pounds Sterling
and Australian Dollars into US Dollars were £1.00 = US$1.5469
and A$1.00 = US$1.0163.
Financial Liabilities
Other than short-term creditors, the Group and Company do
not have any financial liabilities.
Off Balance Sheet Arrangements
The Company has not entered into and is not a party to any
off Balance Sheet arrangements.
Ophir energy plc | 2010 ANNUAL REPORT
Business review | Financial review
Financial Risk Management
Strategy and Objectives
The Group’s financial instruments comprise cash and shortterm
deposits and various items, such as trade debtors and
trade creditors that arise directly from its operations. The main
B Yvonne Holm
Chief Financial Officer
28 March 2011

22
Ophir energy plc | 2010 ANNUAL REPORT
BUsiness review | PRiNCiPAL Risks ANd UNCERTAiNTiEs
Business Review
Principal Risks and Uncertainties
The effective management of risk is essential to the success
of Ophir. As an upstream oil and gas business, Ophir
operates in an inherently risky sector. Principal risks faced
by Ophir include external factors such as risks arising from
political, social and infrastructure issues in the countries in
which Ophir operates, as well as risks internal to Ophir and
its strategic plan. Ophir’s overall strategy to mitigate risk
is to seek to maintain a balanced portfolio of assets,
implement suitable policies and procedures and to employ
appropriately experienced and skilled professionals to
administer and oversee those procedures.
The principal risks that Ophir has identified that provide the
greatest challenge to its strategic objectives are:
gOvernMenT sTABiliTy
Political Risk:
Some of the countries in which Ophir operates are in areas of the world where there is
political uncertainty, corruption, poor infrastructure and where the rule of law is not
necessarily consistently enforced.
Political risk is mitigated by having a diverse portfolio across different jurisdictions. Further,
Ophir employs senior executives who have extensive experience in the African countries in
which Ophir operates and engages local managers familiar with local customs and practices.
Ophir has Codes of Practice to which all employees are required to abide. Strict enforcement
of these practices reduces exposure of Ophir to inappropriate activities by its employees.

OPERATIONAL RISKS
Discovery Risk:
No Current Production:
Oil & Gas Price:
Unexpected Events:
Ophir has an excellent portfolio of assets and a sound track record of success.
However, given the nature of the business there is no guarantee of exploration success.
Ophir mitigates these risks by holding a diverse portfolio in various stages of maturity and
by employing advanced geoscience techniques to evaluate its exploration prospects. Such
technology reduces, but cannot eliminate, the risk that no economically producible oil or gas
will be discovered by exploration efforts or determined to be recoverable from Ophir’s
exploration assets described in this report.
Ophir does not currently produce any oil or gas and therefore does not have operating
cash flow to sustain investment levels.
Ophir’s reporting procedures and close monitoring of cash flows ensures that funding
requirements are identified well in advance of its commitments.
Ophir’s asset value and the economic viability of its exploration projects depend on the price
of oil and gas. Ophir’s ability to raise funds in the future is likely to be sensitive to the price
of oil and gas.
The nature of Ophir’s business and its geographical spread exposes it to risks of unexpected
events such as accidents, environmental incidents and issues of security.
23
Ophir energy plc | 2010 ANNUAL REPORT
Business review | Principal Risks and Uncertainties
Ophir mitigates these risks by ensuring compliance with robust policies and procedures in
the areas of Health, Safety and Environment. Ophir has clear crisis management plans in
place to immediately respond to and minimise the impact of any incident that may occur.
Ophir continually monitors security in the jurisdictions of its operations and carries
comprehensive insurance cover over these operations.
STRATEGIC RISKS
Capital Intensive
Business:
Ophir has been successful in raising capital from diverse investors to date and manages its
liquidity and commitments closely, with no debt obligations at present. However, oil and gas
exploration is a highly capital intensive business and will require Ophir to raise new capital in
the future and/or to farm out assets.
Ophir closely monitors its liquid resources and cash flow needs ensuring that funding
requirements are identified well in advance of its commitments.
Ophir funds operations across its portfolio of assets through its supportive shareholder base,
introduction of farm in partners or asset divestiture. Whilst the Company is not quoted on
any stock exchange at this time, the Directors may seek a listing for the Company’s shares
in the future.
Competition:
There is a great deal of competition in every public round of bidding for exploration
blocks throughout Africa, making the replacement of maturing assets in its portfolio a
challenging exercise.
Ophir continually looks for business opportunities and asset portfolio growth in the public
arena, through its extensive industry contacts, innovative assets swaps and farm in
arrangements.
Personnel:
Ophir is reliant on a small team of experienced oil and gas professionals for its success.
The loss of key staff would provide a serious challenge to Ophir’s growth prospects.
Ophir continually monitors its staffing needs, recruits suitably qualified staff and motivates
and retains its personnel through competitive remuneration packages and incentive plans.

24
Ophir energy plc | 2010 ANNUAL REPORT
BUsiness review | diRECTORs’ REPORT
Business Review
Directors’ Report
Inspecting drilling bit on board the Deepsea Stavanger
The Directors of Ophir Energy plc (Company Number
5047425) (the “Company”) present their Annual Report
on the affairs of the Company and its subsidiaries (the
“Group”), together with the Financial Statements and
auditor’s report for the year ended 31 December 2010.
The Financial Statement will be laid before the shareholders
at the AGM at a date to be determined.
principal Activities, Business
review and Future Developments
Ophir is an independent oil and gas exploration business
with a focus on Africa. The principal activities of Ophir are
currently the exploration for oil and gas, predominantly
in deepwater acreage in eight jurisdictions in East and
West Africa.
Ophir Energy plc is the Parent Company of the Group and is
incorporated in the United Kingdom. Ophir’s headquarters
are located in London (England) with operational offices in
Perth (Australia), Dar es Salaam (Tanzania) and Malabo
(Equatorial Guinea). Details of Group Offices are set out
in the Corporate Directory inside the back cover of this
Annual Report.
results and Dividends
The audited Financial Statements for the year ended
31 December 2010 are set out on pages 38 to 71. Ophir
recorded a loss for the year after taxation of US$19.3 million
(year ended 31 December 2009: US$43.3 million).
No dividends were paid or declared by the Company during
the financial year (year ended 31 December 2009: nil).
The Directors do not propose to pay a dividend for the year
ended 31 December 2010.
Directors
The names and biographical details of the Directors of the
Company during the financial year and since the end of the
financial year are set out on pages 8 to 10.
The remuneration of the Directors for the year ended
31 December 2010 is set out in the Remuneration Report
on pages 34 and 35, and note 5 to the Financial Statements.
Directors’ beneficial and non-beneficial interests in shares in
the Company are set out in the table on the next page.
Fulfilling the requirements of the Business Review, details of
the development of Ophir’s business during the year and the
future developments can be found in the Overview and
Business Review sections on pages 2 to 29.

25
ORDINARY SHARES OF 0.25P EACH
NAME
NOTES 31 DECEMBER 2010 31 DECEMBER 2009
Nicholas Smith 1 48,000 48,000
Alan Stein 2 7,303,792 7,303,792
Jonathan Taylor 3 6,836,320 6,836,320
John Lander 4 152,000 152,000
Dennis McShane 5 104,000 104,000
Lyndon Powell 6 24,000 24,000
Michael Cohen 7 35,735,723 35,735,723
Harak Banthia 8 47,421,790 47,421,790
Ophir energy plc | 2010 ANNUAL REPORT
Business review | Directors’ report
Jaroslaw Paczek 9 29,597,007 29,597,007
Rajan Tandon 8 47,421,790 47,421,790
Mikki Xayiya 10 40,000,000 40,000,000
B Yvonne Holm 8 47,421,790 47,421,790
Jacob Ulrich 10 46,391,120 46,391,120
Stefan Krieglstein 9 29,597,007 29,597,007
NOTES:
1 Mr Smith held a total of 48,000 shares as at 31 December 2010 and at the date of this report.
2 Dr Stein and members of his family held direct interests in 5,697,140 ordinary shares in the Company as at 31 December 2010 and at the date of
this report. In addition, at 31 December 2010 Dr Stein held a 40% legal and beneficial interest in FIL Resources Limited (“FIL”), which was the
legal and beneficial owner of 1,400,272 ordinary shares in the Company as at 31 December 2010 and at the date of this report. FIL is also the
legal and beneficial owner of Haroma Pty Ltd which was the legal and beneficial owner of 206,380 ordinary shares in the Company as at
31 December 2010 and at the date of this report.
3 Mr Taylor and members of his family held a legal and beneficial interest in of a total of 6,836,320 ordinary shares in the Company as at
31 December 2010 and at the date of this report.
4 Mr Lander and members of his family hold a 100% legal and beneficial interest in Vectis Petroleum Limited the holder of 152,000 ordinary
shares as at 31 December 2010 and at the date of this report.
5 Mr McShane held a 100% legal and beneficial interest in 104,000 ordinary shares as at 31 December 2010 and at the date of this report.
6 Mr Powell held a total of 24,000 shares as at 31 December 2010 and at the date of this report.
7 Mr Cohen holds an interest in shares in the Company by virtue of his membership of the board of Och-Ziff Management Europe Limited,
a wholly owned subsidiary of OZ Management LP, the investment manager of each of OZ Master Fund, Ltd., OZ Europe Master Fund Ltd. and
OZ Global Special Investments Master Fund, L.P. (collectively, the “OZ Funds”). The OZ Funds directly hold 29,344,603 ordinary shares in the
Company and have an indirect interest in a further 6,391,120 ordinary shares in the Company directly owned by Ivern International Ltd.,
a wholly owned subsidiary of African Global Capital I, L.P., a limited partnership in which the OZ Funds collectively hold an interest. These
interests were held at 31 December 2010 and at the date of this report.
8 Messrs Banthia and Tandon (and Ms Holm by virtue of being their alternate up to the date of her resignation on 25 January 2011) held a
non-beneficial interest in shares in the Company by virtue of their employment by the Mittal Group, the holder of 47,421,790 ordinary shares
in the Company as at 31 December 2010, the date of this report and at the date of their appointment as directors of the Company.
9 Mr Paczek holds a non-beneficial interest in shares in the Company by virtue of his employment by the Kulczyk Group. The Kulczyk Group
indirectly owns a 100% interest in Oil & Gas Exploration Limited a company that is beneficially interested in 29,597,007 ordinary shares in the
Company. This interest was held at 31 December 2010 and at the date of this report. Mr Krieglstein, from the date of his appointment on
10 March 2011, is deemed to hold the same interests as Mr Paczek by virtue of being Mr Paczek’s alternate.
10 Mr Xayiya (and his alternate Mr Ulrich) hold an indirect and beneficial 10% interest in Mvelaphanda Holdings (Proprietary) Limited
(“Mvelaphanda”). Mvelaphanda directly hold 40,000,000 ordinary shares in the Company. These interests were held at 31 December 2010
and at the date of this report.

26
Ophir energy plc | 2010 ANNUAL REPORT
BUsiness review | diRECTORs’ REPORT
Directors’ beneficial and non-beneficial interests in Options and Warrants Granted over Ordinary Shares in the Company are
as follows:
nAMe
nOTes
OpTiOns/wArrAnTs Over OrDinAry
shAres OF 0.25p eAch
31 DeceMBer 2010 31 DeceMBer 2009
Jaroslaw Paczek 1 4,697,173 4,697,173
Michael Cohen 2 697,173 697,173
NOTES:
1. Mr Paczek by virtue of his employment by the Kulczyk Group is deemed to be interested in the following options and warrants. Mr Krieglstein,
from the date of his appointment on 10 March 2011, is deemed to hold the same interests as Mr Paczek by virtue of being Mr Paczek’s alternate:
a. 697,173 share warrants with an exercise price of £0.0025 per share exercisable on or before 30 June 2012.
b. 1,200,000 options with an exercise price of £0.50 per share exercisable on or before 21 September 2011.
c. 2,000,000 options with an exercise price of £2.30 per share exercisable on or before 21 September 2011.
2. Mr Cohen by virtue of his membership of the board of Och-Ziff Management Europe Limited is deemed to be interested in 697,173 warrants to
subscribe for ordinary shares at a price of £0.0025 per share on or before 30 June 2012.
No options, in which directors were interested, were exercised during the year or during the subsequent period up to the
date of this report.
There were no acquisitions or disposals by the Directors of shares and options in the Company during the year ended
31 December 2010 and there have been no changes to the shareholdings or options of Directors between 31 December
2010 and the date of this report.
substantial shareholders
As at the date of this report the Company had been notified of the following interests in the Company’s issued
ordinary shares:
vOTing righTs
ATTAching TO issUeD
OrDinAry shAres
percenTAge
OF vOTing
righTs
nATUre OF
hOlDing
Mittal Investments S.à.r.l. 47,421,790 21.1 Direct
Mvelaphanda Holdings (Proprietary) Limited 40,000,000 17.8 Direct/Indirect
OZ Funds 35,735,723 15.9 Direct/Indirect
Kulczyk Group 29,597,007 13.2 Direct/Indirect
Helicopter operations
Mtwara supply base

supplier payment policy
The Company’s policy, which is also applied by Ophir, is
to settle terms of payment with suppliers when agreeing
the terms of each transaction, to ensure that the supplier
is aware of the terms and to abide by the terms of the
payment. At 31 December 2010, Ophir had an average of
32 days’ purchases outstanding in creditors (2009: 35 days).
capital structure
Details of the authorised and issued share capital, together
with details of the movements in the Company’s issued
share capital during the year are shown in note 19. The
Company has one class of ordinary shares which carry no
right to fixed income. Each share carries the right to one
vote at general meetings of the Company. The ordinary
shares reflect 100% of the total issued nominal value of
all share capital.
There are no specific restrictions on the size of a holding
nor on the transfer of shares, which are both governed by
the general provisions of the Articles of Association and
prevailing legislation. The Directors are not aware of any
agreements between holders of the Company’s shares that
may result in restrictions on the transfer of securities or on
voting rights.
Details of employee share schemes are set out in note 6.
No person has any special rights of control over the
Company’s share capital and all issued shares are fully paid.
Details of significant shareholdings are set out above.
With regard to the appointment and replacement of
Directors, the Company is governed by its Articles of
Association, the Combined Code, the Companies Acts
and related legislation. In addition the Company has
certain agreements with shareholders which entitle those
shareholders to board representation. These Non Executive
Shareholder Representative Directors are identified on
pages 9 and 10.
Under its Articles of Association, the Company has authority
to issue 2,000,000,000 ordinary shares.
Directors’ liabilities and
insurance cover
The Articles of the Company provide for the
indemnification, to the extent permitted by the Companies
Act 2006, by the Company, of all Directors (and Officers) of
the Company against:
(a) any liability in connection with any negligence, default,
breach of duty or breach of trust by him in relation to
the Company other than (i) any liability to the Company
or any associated company and (ii) to pay a fine under a
criminal law or to a regulator for breach of a regulatory
requirement, for the costs in criminal proceedings in
which the director is convicted or for the costs of civil
proceedings brought by the Company (or a Group
company) in which the director is unsuccessful; and
(b) any other liability in relation to actual or purported
execution and/or discharge of his duties and/or the
exercise or purported exercise of his powers and/or
otherwise in relation to or in connection with his
duties, powers or office.
The Company maintains Directors’ and Officers’ Liability
insurance cover, the level of which is reviewed annually.
Financial instruments
Ophir’s financial instruments comprise cash and liquid
resources, and various instruments, and trade creditors,
which arise directly from its operations. It is, and has been
throughout the year under review, Ophir’s policy that there
is no trading in derivative financial instruments other than in
prescribed circumstances to hedge risks. See note 26 to the
Financial Statements.
conflict of interests
With effect from 1 October 2008, a Director has a duty
under the Companies Act 2006 to avoid a situation where
he has, or can derive a direct or indirect interest that
conflicts, or may possibly conflict, with the interests of the
Company. Following this new legislation, the Company has
put in place procedures for the disclosure and review of
any conflicts, or potential conflicts, of interest which the
Directors may have and for the authorisation of such conflict
matters by the Board where appropriate.
27
Ophir energy plc | 2010 ANNUAL REPORT
BUsiness review | diRECTORs’ REPORT
Supply vessel supporting Deepsea Stavanger

28
Ophir energy plc | 2010 ANNUAL REPORT
BUsiness review | diRECTORs’ REPORT
relationships with shareholders
The Board remains fully committed to maintaining regular
communication with its shareholders. Certain major
shareholders are represented on the Board. There is regular
dialogue with major shareholders and meetings are offered,
normally with the Managing Director. The Chairman is also
available to meet with shareholders. Press releases are
issued for significant events and the Company maintains
a website on which all press releases are posted and
which also contains major corporate presentations and the
Annual Reports and accounts. Additionally, all registered
shareholders are sent regular Shareholder Letters containing
updates about Ophir’s activities. Enquiries from individual
shareholders on matters relating to their shareholdings and
the business of Ophir are welcomed. Shareholders are also
encouraged to attend the Annual General Meeting to
discuss the progress of the Company.
events since the Balance
sheet Date
There were no events that occurred during the period from
31 December 2010 to the date of this report that warrant
disclosure in this report or the Financial Statements.
going concern
Ophir’s business activities, together with the factors likely
to affect its future development, performance and position
are set out in the Annual Report. The financial position of
Ophir at the year end, its cash flows and liquidity position
are described in the Financial Review on pages 20 and 21.
In addition note 26 to the Financial Statements includes
Ophir’s objectives, policies and processes for managing its
capital, its financial risk management objectives and details
of its financial instruments; and note 26 describes its
exposures to credit risk and liquidity risk.
The Group is currently conducting exploration activities
using existing funds from capital raised during prior years in
the form of shareholder funding. The Directors believe that
the Group has sufficient cash resources to meet its current
contractual commitments for the 12 months from the date
of this report. However, the Directors recognise that the
Company will need to raise additional finance in the
short-term to fund the further planned and anticipated
activities, most notably the anticipated multi well drilling
campaign in Tanzania described in the Directors’ report.
The Directors are in the process of evaluating a number
of funding proposals which include the issue of additional
equity via a private placing or pursuant to an admission
to a recognised stock exchange and/or a farm out or sale
of exploration interests. The Company considers that it
retains the strong support of its major shareholders and the
Directors believe that they have other options to raise funds
should that be required. The Directors are confident that the
required additional funds can be raised from any one of a
number of funding sources, but note that as this has not
been secured at the date of this report this creates a
material uncertainty which may cast significant doubt about
the Company’s ability to continue as a going concern.
The Directors are confident of continuing funding based on
the range and feasibility of alternatives being explored, and
on this basis, believe that the adoption of the going concern
basis is appropriate and that no adjustments are required to
the carrying value of assets.
charitable and political Donations
Ophir did not make any political or charitable donations
during the year or prior period, however as part of its
commitments within the various countries where Ophir
operates, it participates in social and community-related
as well as economic programmes.
environmental Matters
The Board believe that good environmental practices
support the Board’s strategy by enhancing the reputation of
the Group. Our business operations can have an impact on
the environment and we place a high priority on mitigating
this risk. The industry is subject to a range of UK and US
legislation. Compliance imposes costs and failure to comply
would materially affect the Group’s ability to operate.
The Group has undertaken Environmental Impact
Assessments in Tanzania, Equatorial Guinea, Gabon and the
AGC. To date, there have been no environmental incidents
and the Company will continue to behave responsibly
towards the environment.
Helicopter operations

Auditors
Each of the persons who is a Director at the date of
approval of this Annual Report confirms that:
• So far as the Director is aware, there is no relevant
audit information of which the Company’s auditors are
unaware; and
• The Director has taken all the steps that he ought to
have taken as a Director in order to make himself aware
of any relevant audit information and to establish that
the Company’s auditors are aware of that information.
This confirmation is given and should be interpreted in
accordance with the provisions of s418 of the Companies
Act 2006.
Ernst & Young LLP were reappointed as auditor of the
Company at the Annual General Meeting held on 4 June
2010. A resolution to appoint the Company’s auditor for
the period until the date of the following Annual General
Meeting will be proposed at the forthcoming Annual
General Meeting.
29
Ophir energy plc | 2010 ANNUAL REPORT
Business review | Directors’ report
By order of the Board
Alan Stein
Managing Director
28 March 2011
Mtwara staff
Mtwara dockside

30
Ophir energy plc | 2010 ANNUAL REPORT
gOvernAnce | CORPORATE gOvERNANCE sTATEmENT
governance
Corporate Governance Statement
Drilling operations, Deepsea Stavanger
compliance with the combined
code on corporate governance
This Report describes how the Company has applied the
principles of the Combined Code on Corporate Governance
(June 2008) (the “Code”) published by the Financial
Reporting Council, including the extent of compliance with
the provisions of the Code and the reasons for any matters
where there is not currently full compliance.
The Company’s shares are not presently listed and therefore
the Company is not formally required to comply with the
Code disclosures. Accordingly the disclosures herein are
made on a voluntary basis. However, the Directors are
committed to a high standard of corporate governance and,
where practicable for a company of this size and stage of
development, to applying the requirements of the Code.
Board Operation, structure and
committees
The Board is responsible to shareholders for the proper
management of Ophir. The Board has a formal schedule of
matters specifically reserved for it for decision. In addition to
formal matters required by the Companies Act 2006 to be
set before a board of directors, the Board will also consider
strategy and policy, acquisition and divestment proposals,
approval of major capital investments and financial
commitments, risk management policy, senior
appointments, significant financing matters and
shareholder reporting.
To enable the Board to discharge its duties, all Directors
receive appropriate and timely information and the
Chairman ensures that the Directors take independent
professional advice as required. Appropriate training is
available where necessary. There is a clear separation of the
roles of the Chairman and of the Managing Director. The
Managing Director has responsibility for managing Ophir’s
business, proposing strategy and leads the executive team
which has responsibility for the execution of the strategy
and operational matters.

The Board of Directors currently comprises the Non
Executive Chairman, Mr Nicholas Smith, three independent
Non Executive Directors, two Executive Directors, including
Dr Alan Stein the Managing Director, as well as five Non
Executive Directors who are appointees of the Company’s
major shareholders, pursuant to various relationship
agreements between the shareholder entities they represent
and the Company and who are therefore not considered
independent. The Directors who are considered to be
independent are: Messrs Lander, McShane and Powell.
Mr McShane is the Senior Independent Non Executive
Director and is available to meet with shareholders.
The Code requires that at least half of the Board, excluding
the Chairman, should normally consist of independent Non
Executive Directors while a smaller company should have at
least two independent Non Executive Directors. The Board
considers that its composition is currently appropriate to its
needs as an unquoted company given the range of skills,
experience and expertise amongst its members. Biographies
of the Directors are set out on pages 8 to 10 of this Report.
MEETINGS
HELD
The Board meets regularly throughout the year with
meetings held at least quarterly and as issues arise which
require Board attention. In addition, the Chairman has held
meetings of the Non Executive Directors without the
Executives present.
The Board has established Audit, Remuneration and
Nominations Committees comprised solely of independent
Non Executive Directors and a Health, Safety & Environment
Committee comprised of a majority of Non Executive
Directors. Terms of Reference for the Committees have been
approved by the Board and are available to shareholders on
request to the Company.
The attendance record of each Director, together with the
maximum number of meetings that a Director could have
attended during the year, is tabulated below:
BOARD REMUNERATION AUDIT NOMINATIONS HSE
MEETINGS
ATTENDED
MEETINGS
HELD
MEETINGS
ATTENDED
MEETINGS
HELD
MEETINGS
ATTENDED
MEETINGS
HELD
MEETINGS
ATTENDED
MEETINGS
HELD
Nicholas Smith 11 10 1 1 5 5 - - - -
Alan Stein 11 10 - - - - - - - -
Jonathan Taylor 11 10 - - - - - - 2 1
John Lander 11 9 1 1 5 4 - - 2 2
Dennis McShane 11 10 1 1 5 5 - - - -
Lyndon Powell 11 11 1 1 - - - - 2 2
Harak Banthia 11 6 - - - - - - - -
Michael Cohen 11 11 - - - - - - - -
Rajan Tandon 11 2 - - - - - - - -
Jaroslaw Paczek 11 11 - - - - - - - -
Mikki Xayiya 11 3 - - - - - - - -
B Yvonne Holm
(Alternate to Messrs
Banthia & Tandon)
Jacob Ulrich
(Alternate Mr Xayiya)
MEETINGS
ATTENDED
11 11 - - - - - - - -
11 7 - - - - - - - -
Peter Thomas 4 4 - - - - - - - -
31
Ophir energy plc | 2010 ANNUAL REPORT
Governance | Corporate Governance Statement
The other commitments of the Chairman, Mr Smith, are included in his biography and have not restricted his ability to
devote the agreed time to his role as Non Executive Chairman.
Directors are not currently subject to retirement by rotation and re-election to the Board.
Helideck, Deepsea Stavanger
Deepsea Stavanger

32
Ophir energy plc | 2010 ANNUAL REPORT
gOvernAnce | CORPORATE gOvERNANCE sTATEmENT
Non Executive Directors are kept abreast of the views of
major shareholders about the Company through the
representation of the largest shareholders on the Board
and regular reports from the Chairman and the Managing
Director on meetings they have held with investors.
remuneration committee
Members of the Remuneration Committee are Messrs
Lander (Chairman), McShane, Powell and Smith.
The Remuneration Committee is responsible for making
recommendations to the Board on the Company’s overall
remuneration policy framework and for determining the
terms of service and remuneration of the Company’s
Executive Directors and Chairman. The Remuneration
Committee also makes recommendations to the Board
concerning pension contributions and employee incentives,
including share-based schemes. This includes the design of
share incentive plans and the determination of targets for
annual performance-related pay.
The Board itself is responsible for determining the
remuneration of Non Executive Directors. Terms of
remuneration are set with due regard to the overall
framework, external advice where appropriate, the interests
of shareholders, the performance of Ophir and all relevant
legal requirements.
The Committee has purchased surveys on remuneration
levels of comparable companies and uses this information
in making its recommendations. The Managing Director is
invited to join the Committee’s meetings to provide input on
the remuneration of the other Executive Directors. Directors
of Ophir are not permitted to participate in discussions or
decisions of the Committee regarding their own
remuneration.
The Remuneration Report is set out on pages 34 and 35 and
includes details of the terms and conditions of appointment
of the Directors.
As the Company’s major shareholders are represented on
the Board, and the Board approves all new long-term
equity-linked incentive schemes, it is considered that the
substantive objectives of the Code for shareholder approval
of such schemes have been met.
Audit committee
Members of the Audit Committee are Messrs McShane
(Chairman), Smith and Lander. For the purpose of the
Combined Code, Mr McShane, who until 2008 served as
Finance Director of Ferrexpo plc, is considered by the Board
to have recent and relevant financial experience.
The Audit Committee is responsible for monitoring the
integrity of Ophir’s financial reporting and reviewing Ophir’s
systems of internal financial control. It liaises with the
external auditor, Ernst & Young, and reviews the reports
from the auditor relating to financial reporting and control
matters. It also monitors the level of audit and non-audit
services provided to Ophir by the auditor, in order to
safeguard auditor objectivity and independence. The auditor
reports to the Committee annually to confirm that its
independence has been maintained. The Committee also
makes recommendations to the Board on Ophir’s financial
affairs and insurance requirements. Meetings are normally
attended by the external auditor and by the Chief Financial
Officer and/or Director - Finance at the invitation of the
Committee. The Committee met five times during 2010,
including two meetings with the audit engagement partner
without the presence of management.
nominations committee
Members of the Nominations Committee are Messrs
McShane (Chairman), Smith and Lander.
The Nominations Committee is responsible for regularly
reviewing the structure, size and composition (including
skills base and experience) of the Board and makes
recommendations to the Board on changes including
candidates to fill Board vacancies. The Committee meets as
required, however as there were no changes to composition
of the Board and no senior management appointments
during the year the Committee did not meet during 2010.
Drilling operations, Deepsea Stavanger
Tanzania core collected during drilling operations”

health, safety & environment
committee
Members of the Health, Safety & Environment Committee
are Messrs Powell (Chairman), Lander and Taylor.
The Heath, Safety & Environment Committee assists the
Board to fulfil its overall responsibilities in relation to health,
safety, environmental and community matters arising out
of the activities of Ophir and as they affect employees,
contractors and the communities in which it operates.
The Committee met twice during 2010.
Directors’ remuneration
Directors’ remuneration is summarised in note 5 to the
Financial Statements and detailed in the Remuneration
Report on pages 34 and 35.
internal controls
The Directors acknowledge their overall responsibility for
Ophir’s systems of internal control, which are designed to
safeguard the assets of Ophir and to ensure the reliability
of financial information for internal and external use.
The Board has put an organisational structure in place
with clearly defined lines of responsibility and delegation
of authority. Procedures include Board approval of all
significant new projects and senior management approval
at appropriate stages of the transaction cycle. There is a
comprehensive annual budgeting and planning process.
Actual results are reported against budgets approved by the
Board. Revised financial forecasts are prepared regularly
through the year.
The Directors do not believe the size of the Company
warrants an internal audit function.
The Board has overall responsibility for the effectiveness
of Ophir’s risk management activities and internal control
processes. Any system of controls can provide only
reasonable, but not absolute, assurance that assets are
safeguarded, transactions authorised and correctly recorded
and that any material errors or irregularities are detected
within a reasonable timeframe.
The consideration of business risk is a regular matter for
Board discussion. The Health, Safety & Environment
Committee has also considered certain operational risks
and their management and mitigation. However, the
Board has not yet implemented a more formal process for
identification and evaluation of risks in all areas of the
business and review of the effectiveness of Ophir’s system
of internal controls. The Board intends to further develop
its processes in this regard in 2011 as Ophir develops in
complexity and also in order to comply fully with the Code
requirements. By order of the Board
nicholas smith
Chairman
28 March 2011
33
Ophir energy plc | 2010 ANNUAL REPORT
gOvernAnce | CORPORATE gOvERNANCE sTATEmENT
Deepsea Stavanger offshore Tanzania
Drilling operations, Deepsea Stavanger

34
Ophir energy plc | 2010 ANNUAL REPORT
gOvernAnce | diRECTORs’ REmUNERATiON REPORT
governance
Directors’ Remuneration Report
The Remuneration Committee is responsible for the
determination of the remuneration of the Executive and
Non Executive Directors. The Committee, which is made
up of independent Non Executive Directors, is wholly
independent of management and free from any conflicts
of interest arising from cross-directorships and the day to
day running of the Company. No member has a financial
interest, other than as a shareholder, in the matters
delegated to the Committee.
The Committee, which currently comprises Messrs Lander
(Chairman), McShane, Powell and Smith, operates under
a written mandate and meets on a regular basis. The
Managing Director may attend part of the Committee’s
meetings and be consulted in setting the remuneration
of the other Executive Directors, by invitation.
remuneration policy
Ophir’s policy on Directors’ Remuneration in 2010 and for
subsequent years is to maintain levels of remuneration so
as to attract, motivate and retain executives of the highest
calibre who can contribute their experience to Ophir’s
operations and further development of the business.
Directors’ remuneration
Executive Directors
The elements of the remuneration package for Executive
Directors are base salary, annual bonus, non-cash benefits,
pension/superannuation contributions and, in certain cases,
participation in Ophir’s share incentive arrangements. The
founder Executive Directors have a significant stake in the
Company’s equity. A significant element of the potential
remuneration package is, therefore, performance and/or
equity linked.
Executive Directors’ remuneration packages are
reviewed annually each December with regard to
personal performance, Company performance, changes in
responsibilities and competitive market practices. Following
the annual review conducted in December 2009, the
Executive Directors’ basic salaries were retained at their
existing levels during 2010. In determining the total
remuneration of the Executive Directors, the Committee
takes into account the remuneration practices adopted by
listed and unlisted companies of a similar capitalisation
and overseas complexity to the Group. The Committee
sets annual performance targets relevant to Ophir’s key
objectives for the year, against which to assess awards of
performance-related annual bonuses for the Executive
Directors. The Committee is in the process of engaging
remuneration consultants to assist it in formulating an
overall remuneration policy for Executive Directors, taking
account of remuneration policies for the Group as a whole
and external benchmarking.
During 2010, Key Performance Indicators (“KPIs”) targets
were set for the Executive Directors in respect of Health,
Safety & Environmental performance; progress towards a
liquidity event; and reserves and resources additions (firm
and provisional). The Committee have approved bonuses for
the Executive Directors for 2010 equivalent to 70% of salary
by reference to these targets.
No options were held by Executive Directors at the date
of this report or at any time during the year nor were any
options exercised during the year (2009: Nil)
With the prior permission of the Board, Executive Directors
are permitted to accept non executive appointments. Under
this policy Dr Stein serves as Chairman of Neon Energy
Limited, an unrelated entity, for which he received
remuneration of US$45,997 (2009: US$7,442). Dr Fischer
serves as a Non Executive Director for Barrel Chasers Pty Ltd,
an unrelated entity, for which he receives no remuneration
(2009: N/A).
The Company contributes 11% of Executive Directors’ base
salary to private pension plans or superannuation funds.
Where the level of contribution is higher than that which
is eligible for tax relief, the excess can be converted into
additional salary. Both Dr Stein and Mr Taylor so elected in
2010 in respect of part of their entitlements.
No options are held by Executive Directors nor were any
options exercised during the year (2009: Nil).
Non Executive Directors
The Board as a whole determines the remuneration of the
Non Executive Directors.
Remuneration paid to independent Non Executive Directors
is set at a level to attract persons with the necessary
experience and ability to make a significant contribution to
the Company’s operations. Remuneration levels are set
based on external advice and give consideration to the time
commitment and responsibilities of the role.
Non Executive Directors representing the Company’s major
shareholders and appointed by virtue of various relationship
agreements between the Company and the shareholder
entities they represent are not remunerated.
There were no issues of options during the year to Non
Executive Directors or entities in which Non Executive
Directors are deemed to be interested, nor were any
options in which any Non Executive Directors are
interested exercised during the year (2009: Nil) or
during the subsequent period up to the date of these
Financial Statements.

The remuneration of the Executive and Non Executive Directors for the year ended 31 December 2010 is detailed below and
summarised in note 5 to the Financial Statements.
BASE
SALARY/FEES
US$
BONUS
US$
PENSION/
SUPER-
ANNUATION
US$
TERMINATION
BENEFIT
US$
OTHER
BENEFITS
US$
TOTAL
2010
US$
TOTAL
2009
US$
Nicholas Smith 151,243 - - - - 151,243 115,096
Alan Stein 847,405 65,346 22,999 - 12,373 948,123 755,654
Jonathan Taylor 626,324 49,014 64,698 - 5,998 746,034 745,383
John Lander 1 100,828 - - - - 100,828 93,956
Dennis McShane 100,828 - - - - 100,828 93,956
Lyndon Powell 2 100,828 - - - - 100,828 93,956
Harak Banthia - - - - - - -
Michael Cohen - - - - - - -
Jaroslaw Paczek - - - - - - -
Rajan Tandon - - - - - - -
35
Ophir energy plc | 2010 ANNUAL REPORT
Governance | Directors’ Remuneration Report
Mikki Xayiya - - - - - - -
Peter Thomas 3 182,487 - 12,553 376,930 14,376 586,346 40,130
TOTAL 2,109,943 114,360 100,250 376,930 32,747 2,734,230 1,938,131
NOTES:
1 Salary/Fees includes payments made to Vectis Petroleum Limited,
a company associated with Mr Lander, for the provision of
Mr Lander’s services as a Director.
2 Salary/Fees includes payments made to Barbican Global Limited,
a company associated with Mr Powell, for the provision of
Mr Powell’s services as a Director.
3. Excludes Share Based Payments Charge of US$109,244 (2009:
US$31,020) relating to options issued to Mr Thomas in the previous
year in respect of the period from 1 January 2010 to the date of
termination of Mr Thomas’ employment on 14 June 2010, at which
date the options lapsed.
Directors’ Contracts
Executive Directors
Dr Stein has an employment contract with the Company
and Ophir Services, a subsidiary of the Company. The
contract does not provide for a specific term. Ophir Services
may terminate Dr Stein’s employment by giving not less
than 12 months’ written notice (or, at its absolute discretion,
by making payment in lieu of notice) and Dr Stein may
terminate his employment by giving not less than 6 months’
written notice. The notice periods reflect the view of the
Directors that the services of Dr Stein are key to the success
of Ophir.
Mr Taylor has a service agreement with the Company. The
contract does not provide for a specific term. The Company
may terminate Mr Taylor’s employment by giving not less
than 12 months’ written notice (or, at its absolute discretion,
by making payment in lieu of notice) and Mr Taylor may
terminate his employment by giving not less than 6 months’
written notice. The notice periods reflect the view of the
Directors that the services of Mr Taylor are key to the
success of Ophir.
Non Executive Directors
Each of Mr Xayiya (Mvelaphanda representative), Mr Cohen
(OZ Funds representative), Messrs Banthia and Tandon
(Mittal Group representatives) and Mr Paczek (Oil & Gas
Exploration representative) hold office by virtue of various
relationship agreements between the shareholder entities
they represent and the Company. No representative Director
(or the entity he represents) receives any remuneration for
his services as a Director or is entitled to any payment on
termination of his services as a Director.
The letters of appointment of the independent Non
Executive Directors, Messrs Smith, Lander, McShane
and Powell do not provide for specific terms, periods of
notification of termination or entitlement to payment on
termination, however there is an expectation that all
independent Directors will serve for a period until at least
the Company’s fourth Annual General Meeting after their
appointment took effect.
Messrs Lander’s and Powell’s services as Directors of the
Company are provided under a contract between the
Company and Vectis Petroleum Limited (a company
controlled by Mr Lander) and Barbican Global Limited
(a company controlled by Mr Powell) respectively.
By order of the Board
John Lander
Chairman, Remuneration Committee
28 March 2011

36
Ophir energy plc | 2010 ANNUAL REPORT
gOvernAnce | sTATEmENT Of diRECTORs’ REsPONsiBiLiTiEs
governance
Statement of Directors’ Responsibilities
The Directors are responsible for preparing the Annual
Report and the Group Financial Statements in accordance
with applicable United Kingdom law and those International
Financial Reporting Standards (“IFRS”) as adopted by the
European Union.
Under Company Law the Directors must not approve
the Group Financial Statements unless they are satisfied
that they present fairly the financial position, financial
performance and cash flows of the Group for that period.
In preparing the Group Financial Statements the Directors
are required to:
• select suitable accounting policies in accordance with
IAS 8: Accounting Policies, Changes in Accounting
Estimates and Errors and then apply them consistently;
• present information, including accounting policies, in a
manner that provides relevant, reliable, comparable and
understandable information;
The Directors are responsible for keeping adequate
accounting records that are sufficient to show and explain
the Group’s transactions and disclose with reasonable
accuracy at any time the financial position of the Group and
enable them to ensure that the Group Financial Statements
comply with the Companies Act 2006 and Article 4 of the
IAS Regulation. They are also responsible for safeguarding
the assets of the Group and hence for taking reasonable
steps for the prevention and detection of fraud and other
irregularities.
By order of the Board
Alan stein
Managing Director
28 March 2011
• provide additional disclosures when compliance with the
specific requirements in IFRS is insufficient to enable
users to understand the impact of particular
transactions, other events and conditions on the Group’s
financial position and financial performance;
• state that the Group has complied with IFRS, subject to
any material departures disclosed and explained in the
Financial Statements; and
• make judgements and estimates that are reasonable
and prudent.

37
Independent Auditor’s Report
We have audited the Financial Statements of Ophir Energy plc
for the year ended 31 December 2010 which comprise the
Group Income Statement and Statement of Comprehensive
Income, Group and Company Statement of Financial Position,
the Group and Company Statement of Cash Flows; the Group
and Parent Statement of Changes in Equity and the related
notes 1 to 26. The financial reporting framework that has been
applied in their preparation is applicable law and International
Financial Reporting Standards (“IFRS”) as adopted by the
European Union and, as regards the Parent Company Financial
Statements, as applied in accordance with the provisions of the
Companies Act 2006.
This report is made solely to the Company’s members,
as a body, in accordance with Chapter 3 of Part 16 of the
Companies Act 2006. Our audit work has been undertaken so
that we might state to the Company’s members those matters
we are required to state to them in an auditor’s report and for
no other purpose. To the fullest extent permitted by law, we do
not accept or assume responsibility to anyone other than the
Company and the Company’s members as a body, for our
audit work, for this report, or for the opinions we have formed.
Respective Responsibilities of
Directors and Auditor
As explained more fully in the Directors’ Responsibilities
Statement on page 36, the Directors are responsible
for the preparation of the Financial Statements and for
being satisfied that they give a true and fair view. Our
responsibility is to audit and express an opinion on the
Financial Statements in accordance with applicable law and
International Standards on Auditing (UK and Ireland). Those
standards require us to comply with the Auditing Practices
Board’s Ethical Standards for Auditors.
Scope of the Audit of the Financial
Statements
An audit involves obtaining evidence about the amounts
and disclosures in the Financial Statements sufficient to give
reasonable assurance that the Financial Statements are free
from material misstatement, whether caused by fraud or error.
This includes an assessment of: whether the accounting policies
are appropriate to the Group’s and the Parent Company’s
circumstances and have been consistently applied and
adequately disclosed; the reasonableness of significant
accounting estimates made by the Directors; and the overall
presentation of the Financial Statements. In addition, we read
all the financial and non-financial information in the Annual
Report to identify material inconsistencies with the audited
Financial Statements. If we become aware of any apparent
material misstatements or inconsistencies we consider the
implications for our report.
as a going concern. The circumstances explained in note 2.1,
indicate the existence of a material uncertainty which
may cast significant doubt about the Company’s ability to
continue as a going concern. The Financial Statements do not
include the adjustments that would result if the Company
was unable to continue as a going concern.
Opinion on Financial Statements
In our opinion:
• the Financial Statements give a true and fair view of the
state of the Group’s and of the Parent Company’s affairs
as at 31 December 2010 and of the Group’s loss for the
year then ended;
• the Group Financial Statements have been properly
prepared in accordance with IFRS as adopted by the
European Union;
• the Parent Company Financial Statements have been
properly prepared in accordance with IFRS as adopted by
the European Union and as applied in accordance with
the provisions of the Companies Act 2006; and
• the Financial Statements have been prepared in accordance
with the requirements of the Companies Act 2006.
Opinion on other matter prescribed
by the Companies Act 2006
In our opinion the information given in the Directors’ Report
for the financial year for which the Financial Statements are
prepared is consistent with the Financial Statements.
Matters on which we are required
to report by exception
We have nothing to report in respect of the following
matters where the Companies Act 2006 requires us to
report to you if, in our opinion:
• adequate accounting records have not been kept by the
Parent Company, or returns adequate for our audit have
not been received from branches not visited by us; or
• the Parent Company Financial Statements are not in
agreement with the accounting records and returns; or
• certain disclosures of Directors’ remuneration specified
by law are not made; or
• we have not received all the information and
explanations we require for our audit.
Ophir energy plc | 2010 ANNUAL REPORT
Governance | Independent Auditor’s Report
Opinion
Emphasis of Matter - Going Concern
Steven Dobson (Senior Statutory Auditor)
for and on behalf of Ernst & Young LLP, Statutory Auditor
London, 8 April 2011
In forming our opinion on the Financial Statements, which
is not qualified, we have considered the adequacy of the
disclosures made in note 2.1 to the Financial Statements
concerning the Company’s and Group’s ability to continue

38
Ophir energy plc | 2010 ANNUAL REPORT
grOUp AccOUnTs | gROUP iNCOmE sTATEmENT Of COmPREHENsivE iNCOmE
group Accounts
Group Income Statement and Statement of
Comprehensive Income
For the year ended 31 December 2010
grOUp incOMe sTATeMenT
continuing Operations
nOTes
yeAr enDeD
31 Dec 2010
Us$’000
yeAr enDeD
31 Dec 2009
Us$’000
Interest Income 533 616
revenue 533 616
Exploration expenses
4 (a) (11,344) (21,891)
Finance expenses
4 (b)
(429)
(11,031)
Administration expenses
4 (c)
(7,272)
(6,870)
Other expenses
4 (d) (766)
(4,090)
loss from continuing operations before taxation
(19,278)
(43,266)
Taxation
7
- -
loss from continuing operations for the year attributable to
equity holders of the parent
(19,278)
(43,266)
loss per share for loss from continuing operations attributable to
equity holders of the parent
Basic and diluted EPS on loss for the year (per share)
8
(9)¢ (19)¢
grOUp sTATeMenT OF cOMprehensive incOMe
loss from continuing operations for the year attributable to
equity holders of the parent
(19,278)
(43,266)
Other comprehensive income
Foreign currency translation
602 1,013
Other comprehensive income for the year, net of tax 602 1,013
Total comprehensive loss for the year, net of tax attributable to
equity holders of the parent (18,676) (42,253)

Group Accounts
Group Statement of Changes in Equity
For the year ended 31 December 2010
As at 31 December
2008
Called
up Share Capital
US$’000
Share Premium
US$’000
Options Premium
Reserve
US$’000
Special Reserve
US$’000
Cons Reserve
US$’000
Equity Component On
Convertible Bond
Us$’000
Foreign Currency
Translation Reserve
US$’000
Accumulated Losses
US$’000
Total Equity
US$’000
926 309,902 20,440 156,435 (500) 669 4,121 (185,493) 306,500
Loss for the period, net of tax - - - - - - - (43,266) (43,266)
Other comprehensive income,
net of tax
- - - - - - 1,013 - 1,013
39
Ophir energy plc | 2010 ANNUAL REPORT
Group accounts | Group Statement of Changes in Equity
Total comprehensive Income,
net of tax
New ordinary shares issued
to third parties
926 309,902 20,440 156,435 (500) 669 5,134 (228,759) 264,247
108 107,706 - - - - - - 107,814
Exercise of options 7 - - - - - - - 7
Share issue costs - (560) - - - - - - (560)
Share-based payments - - 2,588 - - - - - 2,588
At 31 December 2009 1,041 417,048 23,028 156,435 (500) 669 5,134 (228,759) 374,096
Loss for the year, net of tax - - - - - - - (19,278) (19,278)
Other comprehensive income,
net of tax
Total comprehensive income,
net of tax
- - - - - - 602 - 602
1,041 417,048 23,028 156,435 (500) 669 5,736 (248,037) 355,420
Exercise of options 1 - - - - - - - 1
Share-based payments - - 824 - - - - - 824
At 31 December 2010 1,042 417,048 23,852 156,435 (500) 669 5,736 (248,037) 356,245

40
Ophir energy plc | 2010 ANNUAL REPORT
grOUp AccOUnTs | COmPANy sTATEmENT Of CHANgEs iN EqUiTy
group Accounts
Company Statement of Changes in Equity
For the year ended 31 December 2010
Called
up Share Capital
US$’000
Share Premium
US$’000
Options Premium
Reserve
US$’000
Special Reserve
US$’000
Cons Reserve
US$’000
Foreign Currency
Translation Reserve
US$’000
As at 31 December 2008 926 309,902 20,440 156,435 669 11,839 (162,831) 337,380
Loss for the period, net of tax - - - - - - (20,302) (20,302)
Other comprehensive income, net of tax - - - - - - - -
Total comprehensive income, net of tax 926 309,902 20,440 156,435 669 11,839 (183,133) 317,078
New ordinary shares issued to third parties 108 107,706 - - - - - 107,814
Exercise of options 7 - - - - - - 7
Accumulated Losses
US$’000
Total Equity
US$’000
Share issue costs - (560) - - - - - (560)
Share-based payments - - 2,588 - - - - 2,588
At 31 December 2009 1,041 417,048 23,028 156,435 669 11,839 (183,133) 426,927
Loss for the period, net of tax - - - - - - (8,007) (8,007)
Other comprehensive income, net of tax - - - - - - - -
Total comprehensive income, net of tax 1,041 417,048 23,028 156,435 669 11,839 (191,140) 418,920
Exercise of options 1 - - - - - - 1
Share-based payments - - 824 - - - - 824
At 31 December 2010 1,042 417,048 23,852 156,435 669 11,839 (191,140) 419,745

group Accounts
Group Statement of Financial Position
As at 31 December 2010
nOTes
As AT
31 Dec 2010
Us$’000
As AT
31 Dec 2009
Us$’000
non-current assets
Exploration and evaluation assets 9 270,043 238,295
Property, plant and equipment 10 1,743 2,204
Other financial assets 12 700 288
272,486 240,787
current assets
Inventory 13 9,058
9,116
Trade and other receivables
14 45,295
1,136
Other financial assets 12
- 1,200
Other current assets
15
130
1,015
Cash and short-term deposits
16
89,925
135,077
144,408
147,544
Total assets
416,894
388,331
41
Ophir energy plc | 2010 ANNUAL REPORT
grOUp AccOUnTs | gROUP sTATEmENT Of fiNANCiAL POsiTiON
Current liabilities
Trade and other payables
17
(59,727)
(13,461)
Provisions
18
(611)
(522)
(60,338)
(13,983)
non-current liabilities
Provisions
18 (310)
(252)
(310) (252)
Total liabilities
(60,648) (14,235)
net assets 356,246
374,096
capital and reserves
Called up share capital
19 (b) 1,042 1,041
Share premium account 20 417,048 417,048
Reserves 20 (61,844) (43,993)
Total equity 356,246 374,096
Approved by the Board on 28 March 2011
nicholas smith
Chairman
Alan stein
Managing Director

42
Ophir energy plc | 2010 ANNUAL REPORT
grOUp AccOUnTs | COmPANy sTATEmENT Of fiNANCiAL POsiTiON
group Accounts
Company Statement of Financial Position
As at 31 December 2010
non current assets
nOTes
As AT
31 Dec 2010
Us$’000
As AT
31 Dec 2009
Us$’000
Exploration and evaluation assets 9 - 49
Property, plant and equipment 10 364 126
Investments in subsidiaries 11 (a) 344,791 294,806
Other financial assets 12 418 -
current assets
345,573 294,981
Trade and other receivables
14
823 635
Other financial assets
12
- 1,200
Cash and short-term deposits
16 74,364
131,195
75,187
133,030
Total assets
420,760
428,011
current liabilities
Trade and other payables
17 (822)
(692)
Provisions
18 (192)
(392)
Total liabilities
(1,014)
(1,084)
net assets
419,746
426,927
capital and reserves
Called up share capital
19 (b)
1,042
1,041
Share premium account
20 417,048
417,048
Reserves
20 1,656 8,838
Total equity
419,746 426,927
Approved by the Board on 28 March 2011
nicholas smith
Chairman
Alan stein
Managing Director

Group Accounts
Group Statement of Cash Flows
For the year ended 31 December 2010
NOTES
YEAR ENDED
31 DEC 2010
US$’000
YEAR ENDED
31 DEC 2009
US$’000
Net cash flow used in operating activities 21 (12,754) (10,394)
Investing activities
Purchases of property, plant and equipment (904) (1,319)
Exploration expenditure (44,595) (62,910)
Funds from disposal of inventory 1,365 -
Funds from joint venture disposal 11,268 -
Funds placed on deposit (967) (384)
Funds returned from deposit 1,200 14,279
Funds from close out of forward exchange contract - 10,082
Net cash flow (used in) investing activities (32,633) (40,252)
43
Ophir energy plc | 2010 ANNUAL REPORT
Group accounts | Group Statement of Cash Flows
Financing activities
Issue of ordinary shares 1 107,820
Issue costs - (560)
Net cash flow from financing activities 1 107,260
(Decrease)/increase in cash and cash equivalents for the year (45,386) 56,614
Effect of exchange rates on cash and cash equivalents 234 536
Cash and cash equivalents at the beginning of the year 135,077 77,927
Cash and cash equivalents at the end of the year 16 89,925 135,077

44
Ophir energy plc | 2010 ANNUAL REPORT
grOUp AccOUnTs | COmPANy sTATEmENT Of CAsH fLOws
group Accounts
Company Statement of Cash Flows
For the year ended 31 December 2010
nOTes
yeAr enDeD
31 Dec 2010
Us$’000
yeAr enDeD
31 Dec 2009
Us$’000
net cash used in operating activities 21 (4,635) (4,306)
investing activities
Purchases of property, plant and equipment (334) (114)
Loans to subsidiaries (52,101) (43,067)
Funds placed on deposit (967) (384)
Funds returned from deposit 1,200 -
Funds from close out of forward exchange contract - 10,082
net cash used in investing activities (52,202) (33,483)
Financing activities
Issue of ordinary shares 1 107,820
Issue costs - (560)
net cash from financing activities 1 107,260
(Decrease)/increase in cash and cash equivalents for the year (56,836) 69,471
Effect of exchange rates on cash and cash equivalents 5 (123)
Cash and cash equivalents at the beginning of the year 131,195 61,847
cash and cash equivalents at the end of the year 16 74,364 131,195

Notes to the
financial statements
1 Authorisation of financial
statements
Ophir Energy plc (the “Company” and the ultimate parent
of the Group) is a limited company incorporated and
domiciled in England and its registered offices are situated
at 55 Grosvenor Street, London W1K 3HY.
The Group’s and Company’s Financial Statements for the
year ended 31 December 2010 were authorised for issue
by the board of the directors on 28 March 2011 and the
statement of financial position was signed on the Board’s
behalf by Mr N Smith and Dr A Stein.
The Company has taken advantage of the exemption
provided under s408 of the Companies Act 2006 not
to publish its individual income statement and
related notes.
2 Basis of preparation and
significant accounting policies
2.1 going concern and basis of
accounting
The Directors are of the opinion that the Company and
the Group currently has sufficient funds to meet their
obligations and commitments as they fall due in the
foreseeable future and has therefore adopted the going
concern basis in preparing the Financial Statements.
The Group is currently conducting exploration activities
using existing funds from capital raised during prior years
in the form of shareholder funding. The Directors believe
that the Group has sufficient cash resources to meet its
current contractual commitments for the 12 months from
the date of this report. However the Directors recognise
that the Company will need to raise additional finance in
the short-term to fund the further planned and anticipated
activities, most notably the anticipated multi well
drilling campaign in Tanzania described in the
Directors’ report.
The Directors are in the process of evaluating a number
of funding proposals which include the issue of additional
equity via a private placing or pursuant to an admission
to a recognised stock exchange and/or a farm out or sale
of exploration interests. The Company considers that it
retains the strong support of its major shareholders and
the Directors believe that they have other options to raise
funds should that be required. The Directors are confident
that the required additional funds can be raised from any
one of a number of funding sources, but note that as
this has not been secured at the date of this report this
creates a material uncertainty which may cast significant
doubt about the Company’s ability to continue as a
going concern.
The Directors are confident of continuing funding based on
the range and feasibility of alternatives being explored, and
on this basis, believe that the adoption of the going concern
basis is appropriate and that no adjustments are required to
the carrying value of assets.
2.2 Basis of preparation and statement
of compliance
The Group’s and Company’s Financial Statements have
been prepared in accordance with International Financial
Reporting Standards (“IFRS”) as adopted by the European
Union and those parts of the Companies Act 2006
applicable to companies reporting under IFRS.
The consolidated Financial Statements have been
prepared on a historical cost basis except for revaluation
of certain derivative instruments measured at fair value.
The consolidated Financial Statements are presented in US
Dollars rounded to the nearest thousand dollars (US$’000)
except as otherwise indicated.
Comparative figures for the period to 31 December 2009
are for the year ended on that date.
2.3 significant accounting policies
The accounting policies adopted are consistent with those
of the previous financial year except as follows:
new and Amended Accounting standards and
interpretations
The Group has adopted the following new and amended
IFRS and IFRIC interpretations as of 1 January 2010:
• Amendment to IFRS 2 Group Cash Settled Share-based
Payment Arrangements
• IFRS 3 (revised) Business Combinations
• IAS 27 (amended) Consolidated and Separate Financial
Statements
• Amendment to IAS 39 Financial Instruments:
Recognition and Measurement – Eligible Hedged items
• IFRIC 12 Service Concession Arrangements
• IFRIC 17 Distribution of Non-cash Assets to Owners
• IFRIC 18 Transfers of Assets from Customers
• Improvements to IFRS (issued 2009)
When the adoption of the Standard or Interpretation is
deemed to have an impact on the Financial Statements or
the financial position and performance of the Group, its
impact is described below:
Impact from changes to accounting policies IFRS 3 Business
Combinations (revised) and IAS 27 Consolidated and
Separate Financial Statements (revised 2008).
45
Ophir energy plc | 2010 ANNUAL REPORT
grOUp AccOUnTs | NOTEs TO THE fiNANCiAL sTATEmENTs

46
Ophir energy plc | 2010 ANNUAL REPORT
grOUp AccOUnTs | NOTEs TO THE fiNANCiAL sTATEmENTs
Notes to the
financial statements
IFRS 3 (revised) introduces significant changes in the
accounting for business combinations occurring after this
date. Changes affect the valuation of non-controlling
interests (previously “minority interests”), the accounting
for transaction costs, the initial recognition and subsequent
measurement of contingent consideration and business
combinations achieved in stages. These changes will impact
the amount of goodwill recognised, the reported results
in the period when an acquisition occurs and future
reported results.
IAS 27 (revised) requires that a change in the ownership
interest of a subsidiary (without a change in control) is to be
accounted for as a transaction with owners in their capacity
as owners. The revised Standard changes the accounting for
losses incurred by a partially owned subsidiary as well as the
loss of control of a subsidiary.
The changes in IFRS 3 (revised) and IAS 27 (revised)
will affect future acquisitions, changes in, and loss of
control of, subsidiaries and transactions with noncontrolling
interests.
standards and interpretations issued but not yet
effective
Standards issued but not yet effective at the date of these
Financial Statements are listed below.
eFFecTive DATe
(for periods beginning
on or after)
IAS 32 Classification of rights issues
1 February 2010
IFRIC 19 Extinguishing financial
liabilities with equity instruments
IAS 24 (Amended) Related party
disclosures
IFRIC 14 Prepayments of a minimum
funding requirement (amendment)
Improvements to IFRS (issued in May
2010)
IFRS 9 Financial instruments, covering
classification and measurement of
financial assets
1 July 2010
1 January 2011
1 January 2011
1 January 2011
1 January 2013
The impact of the adoption of the above standards has not
yet been assessed by the Group.
2.4 Basis of consolidation
The Group Financial Statements consolidate the Financial
Statements of the Company and the entities it controls
(its subsidiaries) drawn up to 31 December each year.
Basis of consolidation from 1 January 2010
subsidiaries
Subsidiaries are consolidated from the date of their
acquisition, being the date on which the Group obtains
control, and continue to be consolidated until the date that
such control ceases. Control comprises the power to govern
the financial and operating policies of the investee so as to
obtain benefit from its activities and is achieved through
direct or indirect ownership of voting rights; currently
exercisable or convertible potential voting rights; or by way
of contractual agreement. The Financial Statements of
subsidiaries are prepared for the same reporting year as the
Parent Company, using consistent accounting policies. All
intercompany balances and transactions, including
unrealised profits arising there from, are eliminated.
A change in the ownership interest of a subsidiary,
without loss of control, is accounted for as an equity
transaction. If the Group loses control over a subsidiary, it
(i) derecognises the assets (including goodwill) and liabilities
of the subsidiary; (ii) derecognises the carrying amount of
any non-controlling interest; (iii) derecognises the cumulative
translation differences, recorded in equity; (iv) recognises
the fair value of the consideration received; (v) recognises
the fair value of any investment retained; (vi) recognises
any surplus or deficit in profit and loss; (vii) reclassifies the
parent’s share of components previously recognised in other
comprehensive income to profit and loss or retained
earnings, as appropriate.
non-controlling interests
Non-controlling interests represent the equity in a subsidiary
not attributable, directly and indirectly, to the parent
company and is presented separately within equity in
the Consolidated Balance Sheet, separately from equity
attributable to owners of the parent. Losses within a
subsidiary are attributed to the non-controlling interest
even if that results in a deficit balance.
Basis of consolidation prior to 1 January 2010
Certain of the above-mentioned requirements were applied
on a prospective basis. The following differences, however,
are carried forward in certain instances from the previous
basis of consolidation:
Non-controlling interest represents the portion of profit or
loss and net assets in subsidiaries that is not held by the
Group and is presented separately within equity in the
Consolidated Balance Sheet, separately from parent
shareholder’s equity.
Acquisitions of non-controlling interests, prior to 1 January
2010, were accounted for using the entity method.
Losses incurred by the Group were attributed to the
non-controlling interest until the balance was reduced to nil.
Any further excess losses were attributed to the parent,
unless the non-controlling interest had a binding obligation
to cover these.

Notes to the
Financial Statements
2.5 Exploration and evaluation
expenditure
The Company applies the successful efforts method of
accounting for the exploration and evaluation (“E&E”) costs
as permitted by IFRS 6 “Exploration for and Evaluation of
Mineral Resources”.
All costs incurred after the rights to explore an area have
been obtained, such as licence acquisition costs, geological
and geophysical costs and other direct costs of E&E are
accumulated and capitalised as E&E assets, in well, field or
licence-specific exploration cost centres as appropriate
pending determination.
Costs (other than payments to acquire the legal right to
explore) incurred prior to acquiring rights to explore and
general exploration costs not specific to any particular
licence or prospect are charged directly to the income
statement.
E&E assets are not amortised prior to the determination
of the results of exploration activity. At completion of
evaluation activities, if technical and commercial feasibility
is demonstrated, then, following recognition of commercial
reserves, the carrying value of the relevant E&E asset will be
reclassified as a development and production asset, subject
to the carrying value of the relevant E&E asset being
assessed for impairment.
If on completion of evaluation of prospects or licences,
it is not possible to determine technical feasibility and
commercial viability or if the legal right to explore expires or
if the Group decides not to continue E&E activity, then the
costs of such unsuccessful E&E are written off to the income
statement in the period of that determination.
The carrying value of E&E assets are reviewed for
impairment when events or changes in circumstances
indicate the carrying value may not be recoverable.
2.6 Intangibles
Intangible assets are initially measured at cost. Following
initial recognition, intangible assets are carried at cost less
any accumulated amortisation and any accumulated
impairment losses.
Intangible assets with finite lives are amortised over the
useful life and tested for impairment whenever there is an
indication that the intangible asset may be impaired.
2.7 Property, plant and equipment
Property, plant and equipment, which comprises furniture
and fittings and computer equipment, is stated at cost less
accumulated depreciation and accumulated impairment
losses. Such cost includes costs directly attributable to
making the asset capable of operating as intended.
Depreciation
Depreciation is provided on property, plant and equipment
calculated using the straight line method at rates to write
off the cost, less estimated residual value based on prices
prevailing at the Balance Sheet date, of each asset over
expected useful lives ranging from 3 to 10 years.
2.8 Investment in subsidiaries
The Company holds monetary balances with its subsidiaries
of which settlement is neither planned nor likely to occur in
the foreseeable future. Such balances are considered to be
part of the Company’s net investment in its subsidiaries.
The carrying value of investments in subsidiaries are
reviewed for impairment when events or changes in
circumstances indicate the carrying value may not be
recoverable.
2.9 Trade and other receivables
Trade receivables, which generally have 30 to 90 day terms,
are recognised and carried at the lower of their original
invoiced value and recoverable amount. Where the time
value of money is material, receivables are carried at
amortised cost. Allowance is made when there is objective
evidence that the Group will not be able to recover balances
in full. Evidence on non-recoverability may include
indications that the debtor or group of debtors is
experiencing significant financial difficulty, the probability
that they will enter bankruptcy or default or delinquency in
repayments. Balances are written off when the probability
of recovery is assessed as being remote. The amount of the
impairment loss is the receivable carrying amount compared
to the present value of estimated future cash flows,
discounted at the original effective interest rate.
2.10 Inventories
Inventories which comprise drilling consumables are stated
at the lower of cost end net realisable value. Cost is
determined by using weighted average cost method and
comprises direct purchase costs, cost of transportation and
other related expenses.
47
Ophir energy plc | 2010 ANNUAL REPORT
Group accounts | notes to the financial statements
2.11 Cash and short-term deposits
Cash and short-term deposits in the Balance Sheet comprise
cash at banks, in hand and short-term deposits with original
maturity dates of up to twelve months.

48
Ophir energy plc | 2010 ANNUAL REPORT
grOUp AccOUnTs | NOTEs TO THE fiNANCiAL sTATEmENTs
Notes to the
financial statements
2.12 Trade and other payables
Trade and other payables are carried at amortised cost. They
represent liabilities for goods and services provided to the
Group prior to the end of the financial year that are unpaid
and arise when the Group becomes obligated to make
future payments in respect of the purchase of those goods
and services. The amounts are unsecured and are usually
paid within 30 days of recognition.
2.13 provisions
A provision is recognised when the Group has a legal or
constructive obligation as a result of a past event and it
is probable that an outflow of economic benefits will be
required to settle the obligation and a reliable estimate
can be made of the obligation. If the effect of the time
value of money is material, expected future cash flows
are discounted using a current pre-tax rate that reflects,
where appropriate, the risks specific to the liability. Where
discounting is used, the increase in the provision due to
unwinding the discount is recognised as a finance cost.
2.14 pensions and other post-retirement
benefits
The Group does not operate its own pension plan but
makes pension or superannuation contributions to private
funds of its employees which are defined contribution plans.
The cost of providing such benefits are expensed in the
income statement as incurred.
2.16 equity instruments
Equity instruments issued by the Company are recorded at
the proceeds received, net of direct issue costs.
2.17 interest bearing borrowing
All loans and borrowings are initially recognised at fair value
less directly attributable transaction costs.
After initial recognition, interest-bearing loans and
borrowings are subsequently measured at amortised cost
using the effective interest rate method.
Gains and losses are recognised in the income statement
when liabilities are derecognised as well as through the
amortisation process.
2.18 leases
The determination of whether an arrangement is, or
contains, a lease is based on the substance of the
arrangement and requires an assessment of whether the
fulfilment of the arrangement is dependent on the use of a
specific asset or assets and the arrangement conveys a right
to use the asset.
The Group has leases where the Lessor retains substantially
all the risks and benefits of ownership of the asset. Such
leases are classified as operating leases and rentals payable
are charged to the Income Statement on a straight line basis
over the lease term.
2.15 employee benefits
wages, salaries, annual leave and sick leave
Liabilities for wages and salaries, including non-monetary
benefits, annual leave and accumulating sick leave expected
to be settled within 12 months of the reporting date are
recognised in respect of employees’ services up to the
reporting date. They are measured at the amounts expected
to be paid when the liabilities are settled. Liabilities for
non-accumulating sick leave are recognised when the leave
is taken and are measured at the rates paid or payable.
long service leave
The liability for long service leave is recognised and
measured at the present value of expected future payments
to be made in respect of services provided by employees
up to the reporting date using the projected unit
credit method.
Consideration is given to expected future wage and salary
levels, experience of employee departures, and periods of
service. Expected future payments are discounted using
market yields at the reporting date on national government
bonds with terms to maturity and currencies that match, as
closely as possible, the estimated future cash outflows.
2.19 interests in Joint ventures
The Group has a number of contractual arrangements with
other parties which represent joint ventures. A joint venture
is a contractual arrangement whereby the Group and other
parties undertake economic activity.
Where a Group company undertakes its activities under
joint venture arrangements the Group’s share of jointly
controlled assets, liabilities and related income and expenses
are included in the Financial Statements in their respective
classification categories.
The Group’s interests in joint ventures, which are in the form
of jointly controlled assets, are identified in note 22.
2.20 Derivative financial instruments
Financial instruments are classified as held for trading if they
are acquired for the purpose of selling in the near-term.
Derivatives, including separated embedded derivatives
are also classified as held for trading. Gains or losses on
investments classified as held for trading are recognised in
profit or loss.

Notes to the
financial statements
2.21 revenue recognition
Revenue is recognised to the extent that it is probable that
the economic benefits will flow to the Group and the
revenue can be reliably measured. Revenue is measured at
the fair value of the consideration received and receivable,
excluding discounts, rebates, VAT and other sales taxes
or duty.
2.22 interest income
Interest income is recognised as it accrues using the
effective interest rate method, that is, the rate that exactly
discounts estimated future cash receipts through the
expected life of the financial instrument to the net carrying
amount of the financial asset.
2.23 Borrowing costs
Borrowing costs directly attributable to the acquisition,
construction or production of qualifying assets, which are
assets that necessarily take a substantial period of time to
be prepared for their intended use, are added to the cost of
those assets until such time as the assets are substantially
ready for their intended use.
All other borrowing costs are expensed in the income
statement in the period in which they are incurred.
2.24 share-based payments
The cost of equity-settled transactions with employees is
measured by reference to the fair value at the date at which
they are granted and is recognised as an expense over
the vesting period, which ends on the date on which the
relevant employees become fully entitled to the award. Fair
value is determined with reference to the market value of
the underlying shares using a pricing model appropriate
to the circumstances which requires judgements as to the
selection of both the valuation model and inputs. In valuing
equity-settled transactions, no account is taken of any
vesting conditions, other than conditions linked to the
price of the shares of the Company (market conditions).
No expense is recognised for awards that do not ultimately
vest, except for awards where vesting is conditional upon a
market condition, which are treated as vesting irrespective
of whether or not the market condition is satisfied, provided
that all other performance conditions are satisfied.
At each Balance Sheet date before vesting, the cumulative
expense is calculated on the basis of extent to which the
vesting period has expired and Management’s best estimate
of the number of equity instruments that will ultimately
vest. The movement in cumulative expense since the
previous Balance Sheet date is recognised in the income
statement, with a corresponding entry in equity.
Where the terms of an equity-settled award are modified
or a new award is designated as replacing a cancelled or
settled award, the cost based on the original award terms
continues to be recognised over the original vesting period.
In addition, an expense is recognised over the remainder
of the new vesting period for the incremental fair value
of any modification, based on the difference between
the fair value of the original award and the fair value of
the modified award, both as measured on the date of the
modification. No reduction is recognised if this difference
is negative.
Where an equity-settled award is cancelled, it is treated as if
it had vested on the date of cancellation, and any cost not
yet recognised in the income statement for the award is
expensed immediately. Any compensation paid up to the
fair value of the award at the cancellation or settlement date
is deducted from equity, with any excess over fair value
being treated as an expense in the income statement.
For equity-settled share-based payment transactions with
third parties, the goods or services received are measured
at the date of receipt by reference to their fair value with a
corresponding entry in equity. If the Group cannot reliably
estimate the fair value of the goods or services received,
their value is measured by reference to the fair value of the
equity instruments granted.
2.25 Foreign currency translation
The functional currency for each entity in the Group is
determined on an individual basis according to the primary
economic environment in which it operates.
Transactions in foreign currencies are initially recorded in
the functional currency by applying the spot exchange rate
ruling at the date of the transaction or an average rate for
the month. Monetary assets and liabilities denominated in
foreign currencies are translated at the rate of exchange
ruling at the Balance Sheet date. All exchange differences
are taken to the income statement.
The assets and liabilities of the Company and those foreign
operations whose functional currency is other than that of
the presentation currency of Ophir are translated into the
presentation currency, at the rate of exchange ruling at the
Balance Sheet date. Income and expenses are translated
at the weighted average exchange rates for the year.
The resulting exchange differences are taken directly to
a separate component of equity. On disposal of a foreign
entity, the deferred cumulative amount recognised in equity
relating to that particular foreign operation is recognised in
the income statement.
2.26 income taxes
current tax
Current tax assets and liabilities are measured at the amount
expected to be recovered from or paid to the taxation
authorities, based on tax rates and laws that are enacted
or substantively enacted by the Balance Sheet date.
49
Ophir energy plc | 2010 ANNUAL REPORT
grOUp AccOUnTs | NOTEs TO THE fiNANCiAL sTATEmENTs

50
Ophir energy plc | 2010 ANNUAL REPORT
grOUp AccOUnTs | NOTEs TO THE fiNANCiAL sTATEmENTs
Notes to the
financial statements
Current income tax is charged or credited directly to equity
if it relates to items that are credited or charged to equity.
Otherwise income tax is recognised in the income
statement.
Deferred tax
Deferred income tax is recognised on all temporary
differences arising between the tax bases of assets and
liabilities and their carrying amounts in the Financial
Statements, with the following exceptions:
• where the temporary difference arises from the initial
recognition of goodwill or of an asset or liability in a
transaction that is not a business combination and, at
the time of the transaction affects neither accounting
nor taxable profit or loss;
• in respect of taxable temporary differences associated
with investments in subsidiaries, associates and joint
ventures, where the timing of the reversal of the
temporary differences can be controlled and it is
probable that the temporary differences will not reverse
in the foreseeable future; and
3 significant accounting
judgements, estimates and
assumptions
The preparation of the consolidated Financial Statements
requires management to make judgements, estimates and
assumptions that affect the reported amounts of assets,
liabilities and contingent liabilities at the date of the
consolidated Financial Statements and reported amounts
of revenues and expenses during the reporting period.
Estimates and assumptions are continuously evaluated and
are based on Management’s experience and other factors,
including expectations of future events that are believed to
be reasonable under the circumstances. However, actual
outcomes can differ from these estimates.
The Group has used estimates and assumptions in deriving
certain figures within the Financial Statements. Such
accounting estimates may not equate with the actual
results which will only be known in time. The key areas of
estimation are noted below with further details of the
assumptions used listed in the relevant note.
• deferred income tax assets are recognised only to the
extent that it is probable that taxable profit will be
available against which the deductible temporary
differences, carried forward tax credits or tax losses
can be utilised.
Deferred income tax assets and liabilities are measured on
an undiscounted basis at the tax rates that are expected to
apply when the related asset is realised or liability is settled,
based on tax rates and laws enacted or substantively
enacted at the Balance Sheet date.
iTeM
nOTes
Exploration and Evaluation assets
2.5, 9
Share-based payments
2.24, 6
Deferred tax
2.26, 7
Deferred income tax is charged or credited directly to equity
if it relates to items that are credited or charged to equity.
Otherwise deferred income tax is recognised in the income
statement.

Notes to the
Financial Statements
4 Operating loss before taxation
YEAR ENDED
31 DEC 2010
US$’000
GROUP
YEAR ENDED
31 DEC 2009
US$’000
The Group operating loss from continuing operations before
taxation is stated after charging/(crediting):
(a) Exploration expenses
- inventory management 14 439
- pre licence exploration costs 2,030 2,608
- exploration expense recovered on farm out (4,009) -
- exploration expenditure written off 13,308 18,844
11,344 21,891
51
Ophir energy plc | 2010 ANNUAL REPORT
Group accounts | notes to the financial statements
(b) Finance expense
Foreign exchange gains & losses
- loss on forward exchange contract - 8,209
- other losses 429 2,822
429 11,031
(c) Administrative expenses include:
Audit of the financial statements 385 216
Other fees to auditors:
- taxation services 14 10
- other services 19 15
418 241
Operating lease payments - minimum lease payments 1,281 823
Share-based compensation charge 825 2,588
(d) Other expenses
- loss on disposal of assets 14 22
- amortisation of intangible non-current assets 17 33
- depreciation of property, plant & equipment 735 576
- amortisation - intangible assets 1 - 3,459
766 4,090
1 Intangible asset fully amortised as at 31 December 2009
As permitted by s408 of the Companies Act 2006 the profit and loss account of the Company has not been separately
presented in these accounts. The Company’s loss for the financial year amounted to US$8.0 million (31 December 2009:
US$20.3 million).

52
Ophir energy plc | 2010 ANNUAL REPORT
grOUp AccOUnTs | NOTEs TO THE fiNANCiAL sTATEmENTs
Notes to the
financial statements
5 staff costs and Directors’ emoluments
yeAr enDeD
31 Dec 2010
Us$’000
grOUp
yeAr enDeD
31 Dec 2009
Us$’000
(a) staff
Employee costs (including payments to executive directors) during the
year/period comprised:
Wages and salaries 7,031 5,049
Social security costs 608 392
Contributions to pension plans and superannuation funds 617 575
Share-based compensation charge 333 1,643
8,589 7,659
(b) Directors’ emoluments
(i) Aggregate compensation
Salaries 1,908 1,763
Bonuses 114 -
Post-employment benefits 477 77
Other benefits 33 4
2,532 1,844
(ii) Share based compensation charge 109 31
(iii) Amounts paid to director related entities not included in (i) above
(refer note 24) 201 94
(iv) Amount paid to the highest paid director
Remuneration paid to the highest paid director includes
superannuation contributions of US$22,999 (2009: US$12,376) 948 756
No options over shares were held by or were exercised by the highest paid
director during the year or the comparative period.
nUMBer
nUMBer
Number of directors to whom superannuation or pension benefits accrued
during the year. 3.0 3.0
Average number of persons employed (full time equivalents):
CEO 1.0 1.0
Exploration & technical 19.3 16.0
Finance & commercial 10.4 7.0
Support 4.6 3.8
35.3 27.8

Notes to the
financial statements
6 share-based compensation
(a) employee incentive share plans
Ophir Energy Company Foundation Incentive Scheme
Ophir Energy Company Foundation Incentive Scheme was
established on 12 May 2004 shortly after the formation of
the Company to attract new employees on start up. The
plan provided for a total of 1,450,000 options to acquire
ordinary shares at 1p per share to be issued to eligible
employees. The Scheme was terminated on 24 November
2005 and all options issued under the scheme have
fully vested.
Ophir energy company limited 2006 share
Option plan
On 5 April 2006 the Board resolved to establish the Ophir
Energy Company Limited 2006 Share Option Plan.
Any employee of the Company or any Subsidiary or any
Director of the Company or any Subsidiary who is required
to devote to his duties substantially the whole of his
working time is eligible to participate under the plan.
At the grant date the Board of Directors determine the
vesting terms, if any, subject to the proviso that no more
than one half of the options become exercisable on the
first and second anniversaries of the date of grant and
any performance conditions are satisfied. Options have
an exercise period of 10 years from the date of grant.
The following table illustrates the number and weighted
average exercise prices (“WAEP”) of, and movements in,
share options during the period for both the above schemes.
These are denominated in Pounds Sterling and have been
translated to US Dollars using the closing exchange rate for
presentation purposes.
53
Ophir energy plc | 2010 ANNUAL REPORT
grOUp AccOUnTs | NOTEs TO THE fiNANCiAL sTATEmENTs
2010 nUMBer 2010 wAep
2009 nUMBer
2009 wAep
Outstanding options beginning of year
8,498,080 $2.60/£1.63 7,848,080
$2.46/£1.55
Granted during the year
-
- 800,000 $3.98/£2.50
Exercised during the year
(320,000)
$0.004/£0.0025
(50,000) $0.004/£0.0025
Lapsed during the year
(717,500)
$3.87/£2.50
(100,000)
$3.98/£2.50
Outstanding options at end of year
7,460,580 $2.50/£1.62
8,498,080
$2.60/£1.63
Exercisable at end of year
7,460,580
$2.50/£1.62 7,055,580
$2.31/£1.45
No options were granted during the year and no options
were exercised during the year (2009: Nil) or during the
subsequent period up to the date of these Financial
Statements.
The weighted average fair value of options granted during
the prior year was US$3.98. The range of exercise prices for
options outstanding at the end of the year was US$0.0040
to US$3.87 (2009: US$0.0040 to US$3.98) with a remaining
exercise period in the range of 3 to 9 years.
2010 2009
Dividend yield (%)
n/a -
Volatility (%) n/a 18.5
Risk-free interest rate (%) n/a 1.0
Expected life of option (years) n/a 2
Weighted average share price n/a £2.50 (US$4.16)
The fair value of equity-settled share options granted is
estimated as at the date of grant using a binomial model,
taking into account the terms and conditions upon which
the options were granted. The table to the right lists the
inputs to the model used for the year ended 31 December
2009. (No options were granted during in 2010.)

54
Ophir energy plc | 2010 ANNUAL REPORT
grOUp AccOUnTs | NOTEs TO THE fiNANCiAL sTATEmENTs
Notes to the
financial statements
(c)
share-based payments to suppliers of goods and services
2010 nUMBer 2010 wAep 2009 nUMBer 2009 wAep
Outstanding options and warrants at beginning
of year 5,794,346 $1.76 (£1.11) 7,394,346 $1.38 (£0.88)
Exercised during the year - (1,600,000)
$0.0040
(£0.0025)
Outstanding options and warrants at end of year
(all exercisable) 5,794,346 $1.76 (£1.11) 5,794,346 $1.76 (£1.11)
The fair value of options granted to suppliers of goods and services is determined by reference to the fair value of goods or
services at the date they are received.
On 3 September 2010 the maturity date for the exercise of 2,000,000 options otherwise maturing on 21 September 2010
were extended to 21 September 2011. In accordance with IFRS 2 the fair value of the options were measured immediately
before and after the extension of the maturity date, resulting in a US$492,000 charge to the Income Statement and a credit
against the Option Premium Reserve. The following table lists the inputs to the model used for the purposes of measuring
the fair value of the options immediately before and after the extension of the maturity date.
2010 2009
Dividend yield (%)
- n/a
Volatility (%)
25.0
n/a
Risk-free interest rate (%)
1.0
n/a
Expected life of option (years)
2
n/a
Weighted average share price
£2.50 (US$3.85)
n/a
No options or warrants were granted during the year or prior year. The range of exercise prices of options and warrants
outstanding at the end of the year was US$0.0040 to US$3.56 (2009: US$0.0040 to US$3.66) with a remaining contractual
life in the range of 9 months to 3 years.
(d)
share-based payments to Directors
No shares or options were issued to Directors or Director related entities during the year, no options were exercised during
the year and no options were held by Directors or Director related entities at 31 December 2010.
During the prior period a total of 700,000 options to acquire ordinary shares at a price of £2.50 per share under the Share
Option Plan were granted to an Executive Director on his appointment under the terms of his employment contract.
These options lapsed on resignation of the Director on 14 June 2010.
grOUp
7 Taxation
yeAr enDeD
31 Dec 2010
Us$’000
yeAr enDeD
31 Dec 2009
Us$’000
(a) income tax expense
Current income Tax:
UK corporation tax - -
Foreign tax - -
Total current income tax - -
Deferred tax:
Origination and reversal of temporary differences - -
Tax charge in the income statement - -

Notes to the
Financial Statements
(b) Reconciliation of the total tax charge
YEAR ENDED
31 DEC 2010
US$’000
GROUP
YEAR ENDED
31 DEC 2009
US$’000
The tax benefit not recognised in the income statement is reconciled
to the standard rate of corporation tax in the UK of 28% (2009: 28%).
The differences are reconciled below:
Loss on operations before taxation (19,278) (43,266)
Loss on operations before taxation multiplied by the UK standard rate
(5,398) (12,115)
of corporation tax of 28% (2009: 28%)
Non-deductible expenditure 35 16
Share-based payments 233 1,693
Expenditure in tax exempt jurisdictions 3,281 1,452
Unrecognised deferred tax assets 1,886 8,986
Other (37) (32)
Total tax expense in the income statement - -
55
Ophir energy plc | 2010 ANNUAL REPORT
Group accounts | notes to the financial statements
(c) Deferred income tax
Deferred income tax balances at 31 December relate to the following:
Deferred tax liabilities:
Property, plant and equipment (34) (25)
Deferred tax assets:
Revenue tax losses 34 25
- -
(d) Unrecognised tax losses
The Group has further tax losses arising in the UK and Australia totalling US$42,982,226 (2009: US$36,556,555)
that are available to carry forward indefinitely to offset against future taxable profits of the companies in which
the losses arose. Deferred tax assets have not been recognised in respect of these losses as there is not sufficient
certainty that taxable income will be realised in the future due to the nature of the Group’s international
exploration activities and the long lead times in either developing or otherwise realising exploration assets.
(e) Other unrecognised temporary differences
The Group has other unrecognised temporary differences in the UK, Australia and various African countries
totalling US$130,340,205 (2009: US$117,675,653) in respect of provisions and exploration expenditure for which
deferred tax assets have not been recognised.

56
Ophir energy plc | 2010 ANNUAL REPORT
grOUp AccOUnTs | NOTEs TO THE fiNANCiAL sTATEmENTs
Notes to the
financial statements
8 earnings per share
The calculation of the basic and diluted earnings per share attributable
to the ordinary equity holders is based on the following data:
yeAr enDeD
31 Dec 2010
Us$’000
grOUp
yeAr enDeD
31 Dec 2009
Us$’000
earnings
Earnings for the purposes of basic and diluted earnings per share
Loss for the year attributable to equity holders (19,278) (43,266)
2010
Us$’000
2009
Us$’000
number of shares
Basic weighted average number of shares 225,267 224,071
There were 13,254,926 (2009: 14,292,426) outstanding share options and
warrants at 31 December 2010 which were anti-dilutive.
There have been no issues of shares between the reporting date and the
date of these Financial Statements.
2010
Us$’000
grOUp
2009
Us$’000
2010
Us$’000
cOMpAny
2009
Us$’000
9 exploration and evaluation assets
Capitalised exploration expenditure at the beginning
of the year 238,295 229,847 49 49
Foreign currency translation 2 13 - -
Exploration expenditure incurred during the financial year (i) 45,071 27,312 - -
Expenditure written off (ii) (13,308) (18,844) (49) -
270,060 238,328 - 49
Right to access geological data base 197 197 - -
Accumulated amortisation of right to access geological
data base (180) (164) - -
Less: amortisation of right to access geological data base (17) (33) - -
Capitalised exploration expenditure at the end of the year 270,043 238,295 - 49

Notes to the
financial statements
(i) Net of recovery of costs incurred in prior year on farm out of Tanzania assets (US$4,008,739).
The Group recognised the impairment loss on the exploration expenditure noted above in accordance with the Group
policy in note 2.6.
(ii) Exploration written off relates to:
(a) Licences in Gabon (US$438,696) and Somaliland (US$5,276,476) where the Group is negotiating with authorities
to extend current exploration licence terms and where such negotiations were incomplete at 31 December 2010.
(b) Costs relating to exploration licences in Congo (Brazzaville) (US$1,031,106) and JDZ (US$167,834) where the
Group is intending to or is likely to relinquish such licences at the end of their current licence terms.
(c) Costs of US$6,338,924 relating to a Gabon licence for reasons of impairment.
grOUp
2010
2009
Us$’000
Us$’000
cOMpAny
2010 2009
Us$’000 Us$’000
57
Ophir energy plc | 2010 ANNUAL REPORT
grOUp AccOUnTs | NOTEs TO THE fiNANCiAL sTATEmENTs
10 property, plant and equipment
Furniture and office equipment
cost
Balance at beginning of year
3,692
1,903 204
132
Foreign currency translation
481
519 -
-
Additions
904
1,319 334
114
Disposals
(962)
(49)
(43) (42)
Balance at end of year
4,115 3,692
495 204
Accumulated depreciation
Balance at beginning of year
1,488
686 78 50
Foreign currency translation
266 248 - -
Disposals
(117) (22) (18) (19)
Depreciation charge for the year
735 576 71 47
Balance at end of year 2,372 1,488 131 78
Book value
At beginning of year 2,204 1,217 126 82
At end of year 1,743 2,204 364 126
There are no debts secured over any of the Group’s assets.

58
Ophir energy plc | 2010 ANNUAL REPORT
grOUp AccOUnTs | NOTEs TO THE fiNANCiAL sTATEmENTs
Notes to the
financial statements
11 investments in subsidiaries
2010
Us$’000
cOMpAny
2009
Us$’000
(a) subsidiary companies
shares at cost
Balance at beginning of year
- -
Acquisitions - -
Balance at end of year
- -
non current loans to subsidiaries
Balance at beginning of year
398,812
355,745
Advances during the year
Ophir Holdings Limited
51,096 42,838
Ophir Services Pty Ltd
1,005
229
Balance at end of year
450,913
398,812
Allowance for impairment
Balance at the beginning of the year
(104,006) (103,545)
Additional allowance
(2,116) (461)
Balance at end of year
(106,122)
(104,006)
Total
344,791
294,806
Book value
At beginning of year
294,806 252,200
At end of year 344,791 294,806
Loans to subsidiaries are unsecured, interest free and form part of the Parent Company’s investments in subsidiaries.
The loans have no particular repayment terms and the Parent Company has indicated that it does not intend to demand
repayment in the foreseeable future. The impairment charge primarily relates to a reduction in value of the subsidiaries
associated with the write off of exploration expenditure.
Loans to subsidiaries are denominated in US Dollars.

Notes to the
Financial Statements
(b) The Parent Company has investments in the following subsidiary undertakings:
Subsidiaries of Ophir Energy plc
COUNTRY
OF
INCORPORATION
PRINCIPAL
ACTIVITY
CLASS
OF
SHARES
HOLDING
BOOK
VALUE OF
INVESTMENT
2010 (US$)
BOOK
VALUE OF
INVESTMENT
2009 (US$)
Ophir Services Pty Ltd Australia Exploration Ordinary 100% 2 2
Ophir Holdings Limited Jersey C.I. Exploration Ordinary 100% 8 8
Ophir Asia Limited Jersey C.I. Dormant Ordinary 100% - -
COUNTRY
OF
INCORPORATION
PRINCIPAL
ACTIVITY
CLASS OF
SHARES
10 10
HOLDING
2010 2009
59
Ophir energy plc | 2010 ANNUAL REPORT
Group accounts | notes to the financial statements
Subsidiaries of Ophir Holdings Limited
Ophir AGC (Profond) Limited Jersey C.I. Exploration Ordinary 100% 100%
Ophir Congo (Marine IX) Limited Jersey C.I. Exploration Ordinary 100% 100%
Ophir Equatorial Guinea Holdings Limited Jersey C.I. Exploration Ordinary 100% 100%
Ophir Gabon (Gnondo) Limited Jersey C.I. Exploration Ordinary 100% 100%
Ophir Gabon (Manga) Limited Jersey C.I. Exploration Ordinary 100% 100%
Ophir Gabon (Mbeli) Limited Jersey C.I. Exploration Ordinary 100% 100%
Ophir Gabon (Ntsina) Limited Jersey C.I. Exploration Ordinary 100% 100%
Ophir JDZ Limited Jersey C.I. Exploration Ordinary 100% 100%
Ophir Somaliland (Berbera) Limited Jersey C.I. Exploration Ordinary 100% 100%
Ophir Madagascar Limited Jersey C.I. Exploration Ordinary 100% 100%
Ophir Tanzania (Block 1) Limited Jersey C.I. Exploration Ordinary 0% 100% a
Ophir Tanzania (Block 3) Limited Jersey C.I. Exploration Ordinary 0% 100% a
Ophir Tanzania (Block 4) Limited Jersey C.I. Exploration Ordinary 0% 100% a
Ophir East Africa Holdings Limited Jersey C.I. Exploration Ordinary 100% 0% b
Ophir East Africa (1) Limited Jersey C.I. Inactive Ordinary 100% 100%
Subsidiary of Ophir Equatorial Guinea Holdings Limited
Ophir Equatorial Guinea (Block R) Limited Jersey C.I. Exploration Ordinary 100% 100%
Subsidiary of Ophir JDZ Limited
Ophir Energy Company Nigeria (JDZ) Limited Nigeria Exploration Ordinary 100% 100%
Subsidiaries of Ophir East Africa Holdings Limited (b)
Ophir Tanzania (Block 1) Limited Jersey C.I. Exploration Ordinary 100% 0% a
Ophir Tanzania (Block 3) Limited Jersey C.I. Exploration Ordinary 100% 0% a
Ophir Tanzania (Block 4) Limited Jersey C.I. Exploration Ordinary 100% 0% a
a Ophir Tanzania (Block 1) Limited, Ophir Tanzania (Block 3) Limited, Ophir Tanzania (Block 4) Limited became subsidiaries of Ophir East Africa
Holdings Limited during the year.
b Ophir East Africa (2) Limited changed its name to Ophir East Africa Holdings Limited and acquired the entire share capital of Ophir Tanzania
(Block 1) Limited, Ophir Tanzania (Block 3) Limited and Ophir Tanzania (Block 4) Limited during the year.
All subsidiaries have a functional currency of US Dollars with the exception of Ophir Services Pty Ltd which
has an Australian Dollar functional currency.

60
Ophir energy plc | 2010 ANNUAL REPORT
grOUp AccOUnTs | NOTEs TO THE fiNANCiAL sTATEmENTs
Notes to the
financial statements
12 Other financial assets
2010
Us$’000
grOUp
2009
Us$’000
2010
Us$’000
cOMpAny
2009
Us$’000
Current
Security deposits - 1,200 - 1,200
- 1,200 - 1,200
Security deposits are floating interest
deposits pledged to third parties or banks as
security in relation to the Group’s exploration
commitments. There are no receivables that
are past due or impaired.
Non current
Security deposits 700 288 418 -
13 inventory
Drilling consumables (at cost) 9,058 9,116 - -
14 Trade and other
receivables
Other debtors 3,070 1,136 665 393
Amounts owed by subsidiary undertakings - - 158 242
Receivable from joint venture partners
42,225 - - -
(refer note 17)
45,295 1,136 823 635
Refer to note 2.9 for terms and conditions.
All debtors are current. There are no
receivables that are past due or impaired.
Due to the short-term nature of these
receivables, their carrying value is assumed
to approximate their fair value.
15 Other current assets
Prepayments 130 1,015 - -
130 1,015 - -

Notes to the
financial statements
16 cash and short term
deposits
2010
Us$’000
grOUp
2009
Us$’000
2010
Us$’000
cOMpAny
2009
Us$’000
Cash 19,925 10,077 4,364 6,195
Short-term deposit 70,000 125,000 70,000 125,000
Cash and short-term deposits 89,925
135,077 74,364
131,195
Cash at banks earn interest at floating rates based on daily bank deposit rates. Short-term deposits are made for
varying periods of up to twelve months, depending on the immediate cash requirements of the Group and earn
interest at the various short-term deposit rates. There are no deposits that are past due or impaired.
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Ophir energy plc | 2010 ANNUAL REPORT
grOUp AccOUnTs | NOTEs TO THE fiNANCiAL sTATEmENTs
17 Trade and other payables
Amounts falling due within one (1) year
Trade creditors
2,121 5,833
389
689
Accruals
15,381 7,628
433
3
Payables in relation to joint venture partner a
42,225
- - -
59,727 13,461 822 692
Refer to notes 2.12 and 2.15 for terms and
conditions.
a
The Group has a liability in respect of a joint venture partner’s share of liabilities arising under contracts entered into by a subsidiary.
This amount is offset by a receivable of the same amount included in note 14.
18 provisions
Amounts falling due within one (1) year
Employee provisions for annual leave 611 522 192 392
Amounts falling due after more than
one (1) year
Employee provisions for long service leave 310 252 - -

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Ophir energy plc | 2010 ANNUAL REPORT
grOUp AccOUnTs | NOTEs TO THE fiNANCiAL sTATEmENTs
Notes to the
financial statements
19 called up share capital
grOUp & cOMpAny
2010
Us$’000
2009
Us$’000
(a) Authorised
2,000,000,000 ordinary shares of 0.25p each
7,963 7,963
(b) called up, allotted and fully paid
225,025,528 ordinary shares of 0.25p in issue at the beginning of the year
(year ended 31 December 2009: 197,053,738)
1,041 926
ordinary shares of 0.25p each issued during the year (year ended 31 December
2009: 26,321,790)
- 108
320,000 ordinary shares of 0.25p each issued during the year on exercise of
options (year ended 31 December 2009: 1,650,000)
1
7
225,345,528 ordinary shares of 0.25p each at 31 December 2010 (year ended
31 December 2009: 225,025,528)
1,042
1,041
The balances classified as called up, allotted and fully paid share capital represents the nominal value of the total number of
issued shares of the Company of 0.25p each.
Fully paid shares carry one vote per share and carry the right to dividends.

Notes to the
Financial Statements
20 Reserves
AS AT
31 DEC 2010
US$’000
GROUP
AS AT
31 DEC 2009
US$’000
AS AT
31 DEC 2010
US$’000
COMPANY
AS AT
31 DEC 2009
US$’000
Share premium account a 417,048 417,048 417,048 417,048
Reserves:
Option premium reserve b 23,853 23,028 23,853 23,028
Equity component of convertible bond c 669 669 669 669
Consolidation reserve d (500) (500) - -
Special reserve e 156,435 156,435 156,435 156,435
Translation reserve f 5,736 5,134 11,839 11,839
Accumulated losses (248,037) (228,759) (191,140) (183,133)
(61,844) (43,993) 1,656 8,838
63
Ophir energy plc | 2010 ANNUAL REPORT
Group accounts | notes to the financial statements
Notes on reserves:
a The share premium account represents the total net proceeds on issue of the Company’s shares in excess of their nominal value of 0.25p per
share less amounts transferred to the Special Reserve.
b The option premium reserve represents the cost of share-based payments to Directors, employees and third parties.
c This balance represents the equity component of the convertible bond, net of costs and tax as a result of the separation of the instrument into
its debt and equity components. The bond was converted into 21,661,476 ordinary shares of 0.25p each on 21 May 2008.
d The consolidation reserve represents a premium on acquisition of a minority interest in a controlled entity.
e The Special Reserve was created on reduction of the Company’s share capital on 26 July 2007. The Special Reserve will be available to offset
accumulated losses once all creditors who were in existence at the date of the transfer from share premium have been settled.
f The foreign currency translation reserve is used to record unrealised exchange differences arising from the translation of the Financial
Statements of entities within the Group that have a functional currency other than US dollars.

64
Ophir energy plc | 2010 ANNUAL REPORT
grOUp AccOUnTs | NOTEs TO THE fiNANCiAL sTATEmENTs
Notes to the
financial statements
21 notes to the statement of
cash Flows
As AT
31 Dec
2010
Us$’000
grOUp
As AT
31 Dec
2009
Us$’000
As AT
31 Dec
2010
Us$’000
cOMpAny
As AT
31 Dec
2009
Us$’000
Reconciliation of operating profit to net cash
inflow from operating activities
Operating loss before taxation (19,278) (43,266) (8,007) (20,302)
Adjustments to reconcile operating loss before
tax to net cash flows from operating activities
Depreciation of property, plant and equipment 735 576 71 47
Amortisation of geological databases 17 33 - -
Amortisation of intangible assets - 3,459 - 3,459
(Profit)/Loss on disposal of assets 14 22 4 (19)
Provision for employee entitlements 147 211 5 30
Foreign currency exchange losses 234 194 14 166
Share-based payments 825 2,588 825 2,588
Exploration expenditure written off 13,308 18,844 49 -
Impairment allowance on intercompany loans - - 2,116 461
Fair value of forward exchange contract - 8,209 - 8,209
Exploration recovery on farm out (4,009) - - -
Working capital adjustments
Increase in inventory (4,286) (3,315)
(Decrease)/Increase in trade and other
payables (12) 296 (74) 51
Increase in trade and other receivables (449) 1,755 362 1,004
cash utilised in operations (12,754) (10,394) (4,635) (4,306)
Income taxes paid - - - -
net cash flow used in operating activities (12,754) (10,394) (4,635) (4,306)

Notes to the
financial statements
22 interests in joint ventures
The Group has the following joint venture interests:
cOUnTry
AsseT
BeneFiciAl
inTeresT (%)
AGC (Operator) Profond
83*
Congo (Brazzaville) Marine IX
31.5
Equatorial Guinea (Operator)
Block R
80
Gabon (Operator)
Mbeli
90
65
Ophir energy plc | 2010 ANNUAL REPORT
grOUp AccOUnTs | NOTEs TO THE fiNANCiAL sTATEmENTs
Gabon (Operator)
Ntsina 90
Gabon (Operator)
Manga
85
Gabon (Operator)
Gnondo
90
Madagascar (Operator)
Marovoay
80
Nigeria - São Tomé/Principe JDZ
Block 3
4**
SADR (Operator)
Daora
50
SADR (Operator)
Haouza 50
SADR (Operator)
Mahbes
50
SADR (Operator)
Mijek
50
Somaliland (primarily onshore) (Operator)
Berbera
75
Tanzania (Operator)
Block 1
40
Tanzania (Operator)
Block 3 40
Tanzania (Operator)
Block 4 40
*current position, subject to farm out.
**relinquished post 31 December 2010.
Capital commitments relating to these projects are included in note 23(b). There are no contingent liabilities
associated with these projects.

66
Ophir energy plc | 2010 ANNUAL REPORT
grOUp AccOUnTs | NOTEs TO THE fiNANCiAL sTATEmENTs
Notes to the
financial statements
23 expenditure commitments
2010
Us$’000
grOUp
2009
Us$’000
2010
Us$’000
cOMpAny
2009
Us$’000
(a) lease commitments
At 31 December 2010 the Group was committed to making the following future minimum lease payments in respect
of operating leases over land and buildings with lease termination dates between 1 and 4 years:
Due within one (1) year
1,531 834
665 125
Due later than one (1) year but within
2,638 1,586
1,030 -
four (4) years
4,169
2,420 1,695
125
(b) exploration expenditure commitments
In acquiring its oil and gas interests the Group has pledged that various work programmes will be undertaken on
each permit/interest. The exploration commitments below are an estimate of the net cost to the Group of performing
these work programmes.
Due within one (1) year
37,211
5,164 - -
Due later than one (1) year but within
1,138
19,118
- -
two (2) years
Due later than two (2) years but within
728
40,971
-
-
five (5) years
39,077 65,253
-
-
(c) rig commitments
The Company is party to a rig sharing agreement with a major oil company. The Agreement provided availability to
the use of the West Polaris drillship for up to 300 days over an approximate two (2) year period from 1 January 2010.
The arrangement is flexible and allows the Group, subject to specified notice periods, to defer or hand back periods
(“contract slots”) in the scheduled rig programme which are allocated to the Group. During 2010 the Company
handed back 124 days leaving a total of 176 days available to the Group during 2011/12. As at the date of this report
the Group had no firm expenditure commitment relating to the rig.
24 related party transactions
(a) identity of related parties
The Company has related party relationships with its subsidiaries (refer note 11), its Directors and companies
associated with its directors identified in the following paragraph.
Recharges from the Company to subsidiaries in the year were US$3,523,210 (2009: US$2,197,332).
Transactions between the Company and its subsidiaries have been eliminated on consolidation.
(b) payments to Director/key management personnel related entities
The Company made payments of US$93,872 (year ended 31 December 2009: US$93,956) to Vectis Petroleum
Limited, a company associated with Mr J Lander, for the provision of Mr Lander’s service as a Director and
US$107,128 (year ended 31 December 2009: nil) to Barbican Global Limited, a company associated with Mr L Powell,
for the provision of Mr Powell’s service as a Director.

Notes to the
Financial Statements
25 Borrowing facilities
The Company and the Group had no borrowing facilities as at 31 December 2010 (2009: Nil).
26 Financial risk management and financial instruments
Strategy and objectives
The Group’s principal financial assets and liabilities comprise cash and short-term deposits and various items, such
as receivables and trade and other payables, which arise directly from its operations. The main purpose of these
financial instruments is to manage short-term cash flow and provide finance for the Group’s operations.
The Group’s senior management oversees the management of financial instrument risk and the Board of Directors
has established an Audit Committee to assist in the identification and evaluation of significant financial risks. Where
appropriate, consultation is sought with an external advisor to determine the appropriate response to identified risks.
The Group does not trade in derivatives for speculative purposes.
67
Ophir energy plc | 2010 ANNUAL REPORT
Group accounts | notes to the financial statements
The main risks that could adversely affect the Group’s financial assets, liabilities or future cash flows are foreign
currency, interest rate and credit risks.
(a) Significant accounting policies
Details of significant accounting policies and methods adopted in respect of each class of financial assets, financial
liability and equity instrument are disclosed in note 2 to the Financial Statements.
(b) Credit risk
Credit risk refers to the risk that a third party will default on its contractual obligations resulting in financial loss to the
Company or Group. The Company and Group’s maximum exposure to credit risk of third parties is the aggregate of
the carrying value of its security deposits, cash and short-term deposits, and trade and other receivables.
The Group trades only with recognised, creditworthy third parties, and as such collateral is not requested nor is it the
Group’s policy to securitise its trade and other receivables
In addition, receivable balances are monitored on an ongoing basis with the result that the Group’s experience of bad
debts has not been significant.
Credit quality of financial assets
EQUIVALENT S&P RATING*
A-1 AND
ABOVE
A-2 AND
BELOW
INTERNALLY RATED
NO DEFAULT
CUSTOMERS TOTAL
Year ended 31 December 2010
Current financial assets
Cash and cash equivalents 69,649 20,213 - 89,862
Trade and other receivables - - 3,070 3,070
69,649 20,213 3,070 92,932
Non-current financial assets
Security deposits - 700 - 700
- 700 - 700
*The equivalent S&P rating of the financial assets represents that rating of the counterparty with whom the financial asset is held rather
than the rating of the financial asset itself.

68
Ophir energy plc | 2010 ANNUAL REPORT
grOUp AccOUnTs | NOTEs TO THE fiNANCiAL sTATEmENTs
Notes to the
financial statements
eQUivAlenT s&p rATing*
A-1 AnD
ABOve
A-2 AnD
BelOw
inTernAlly rATeD
nO DeFAUlT
cUsTOMers TOTAl
year ended 31 December 2009
Current financial assets
Cash and cash equivalents 134,662 369 - 135,031
Security deposits - 1,200 - 1,200
Trade and other receivables - - 1,136 1,136
134,662 1,569 1,136 137,367
Non-current financial assets
Security deposits - 288 - 288
- 288 - 288
*The equivalent S&P rating of the financial assets represents that rating of the counterparty with whom the financial asset is held rather
than the rating of the financial asset itself.
Credit risk on cash and short term deposits is managed by limiting the term of deposits to periods of less than
6 months and selecting counterparty financial institutions with reference to long- and short-term credit ratings
published by Standard & Poors.
Fair values
The maximum exposure to credit risk is the fair value of security deposits and receivables. Collateral is not held
as security.
The fair values and carrying values of non-current receivables of the Group are as follows:
cArrying
AMOUnT
Us$’000
2010 2009
FAir vAlUe
Us$’000
cArrying
AMOUnT
Us$’000
FAir vAlUe
Us$’000
Security deposits 700 652 288 238
700 652 288 238
There are no non-current receivables in the Company.
The fair values are based on cash flows discounted at a rate reflecting current market rates adjusted for counterparty
credit risk (refer note 26(g)).
(c) interest rate risk
As of 31 December 2010, the Group’s interest rate risk is limited to interest receivable on deposits and bank balances
as it has no borrowings.
The Group’s exposure to the risk of changes in market interest rate relates primarily to the Group’s cash assets held
primarily in short-term cash deposits. The Board monitors its cash balance on an ongoing basis and liaises with its
financiers regularly to mitigate the risk of a fluctuating interest rate. The benchmark rate used for short-term deposits
is US LIBOR.

Notes to the
financial statements
2010
Us$’000
grOUp
2009
Us$’000
2010
Us$’000
cOMpAny
2009
Us$’000
Financial assets
Security deposits 700 1,488 - 1,200
Cash and cash equivalents 89,925 135,077 74,364 131,195
Net exposure 90,625 136,565 74,364 132,395
The following table demonstrates the sensitivity to a reasonable possible change in interest rates with all other
variables held constant, of the Group’s loss before tax for a 12 month period through the impact on floating rate
deposits and cash equivalent:
increAse/DecreAse in
inTeresT rATe
grOUp
eFFecT On
eFFecT On
lOss
lOss
31 Dec 2010
31 Dec 2009
cOMpAny
eFFecT On
eFFecT On
lOss
lOss
31 Dec 2010
31 Dec 2009
69
Ophir energy plc | 2010 ANNUAL REPORT
grOUp AccOUnTs | NOTEs TO THE fiNANCiAL sTATEmENTs
+0.5%
583 677
524
662
-0.5%
(583)
(677) (524)
(662)
The sensitivity in 2010 was maintained at 0.5% as interest rate volatilities remain similar to those in the prior period.
(d) Foreign currency risk
The Group has currency exposures arising from assets and liabilities denominated in foreign currencies and
transactions executed in currencies other than the respective functional currencies.
The Company and all of its principal operating subsidiaries, with the exception of Ophir Services, have adopted
US Dollars as their functional and reporting currencies as this represents the currency of their primary economic
environment as the majority of the Group’s funding and expenditure is US Dollars. Ophir Services has adopted the
Australian Dollar as its functional currency.
The Group’s exposure to foreign currency risk is managed by holding the majority of its funds in US Dollars, as a
natural hedge, with remaining funds being held in Pounds Sterling and Australian Dollars to meet commitments in
those currencies.
As at 31 December 2010, the Group’s predominant exposure to foreign exchange rates related to cash and cash
equivalents held in Pounds Sterling by companies with US Dollar functional currencies.
At the Balance Sheet date, the Group had the following exposure to Pounds Sterling (“GBP”), CFA Franc BEAC
(“XAF”), Tanzania Shilling (“TZS”), Euros (“EUR”) and Australian Dollars (“AUD”) foreign currency that is not
designated in cash flow hedges:

70
Ophir energy plc | 2010 ANNUAL REPORT
grOUp AccOUnTs | NOTEs TO THE fiNANCiAL sTATEmENTs
Notes to the
financial statements
grOUp
cOMpAny
2010
Us$’000
2009
Us$’000
2010
Us$’000
2009
Us$’000
Financial assets
Cash and cash equivalents
AUD 150 45 - -
EUR 106 38 48 -
GBP 263 2,372 189 2,326
TZS 29
- - -
XAF 340 560
- -
888 3,015
237 2,326
Financial liabilities
Trade and other payables
AUD
(184)
(310)
- -
EUR
(278)
(245)
- -
GBP
(487)
(420)
(384)
(393)
(949)
(975)
(384)
(393)
net exposure
(61) 2,040
(147)
1,933
At 31 December 2010, had the US Dollar moved, as illustrated in the table below, with all other variables held
constant, post-tax profit and other comprehensive income would have been affected as follows:
pOsT TAX lOss
higher/(lOwer)
2010
2009
Us$’000
Us$’000
OTher cOMprehensive
incOMe higher/(lOwer)
2010
2009
Us$’000
Us$’000
Group
US Dollar to GBP Sterling +5% (2009: +5%)
11
(98) - -
US Dollar to GBP Sterling -5% (2009: -5%) (11) 98 - -
US Dollar to AUD +5% (2009: +5%)
(2) 13 30 51
US Dollar to AUD -5% (2009: -5%) 2 (13) (30) (51)
US Dollar to EUR +5% (2009: +5%) (9) (10) - -
US Dollar to EUR -5% (2009: -5%) 9 10 - -
US Dollar to XAF +5% (2009: +5%) 17 28 - -
US Dollar to XAF -5% (2009: -5%) (17) (28) - -
US Dollar to TZS +5% (2009: +5%) 1 28 - -
US Dollar to TZS -5% (2009: -5%) (1) (28) - -
Parent
US Dollar to GBP Sterling +5% (2009: +5%) 10 (97) - -
US Dollar to GBP Sterling -5% (2009: -5%) (10) 97 - -
US Dollar to EUR +5% (2009: +5%) (2) - - -
US Dollar to EUR -5% (2009: -5%) 2 - - -

Notes to the
Financial Statements
Significant assumptions used in the foreign currency exposure sensitivity analysis include:
• Reasonably possible movements in foreign exchange rates were determined based on a review of the last two
years’ historical movements and economic forecasters’ expectations.
• The reasonably possible movement was calculated by taking the US Dollar spot rate as at balance date, moving
this spot rate by the reasonably possible movements and then re-converting the US Dollar into Australian Dollar
with the “new spot rate”. This methodology reflects the translation methodology undertaken by the Group.
(e) Liquidity risk
The Group has a liquidity risk arising from its ability to fund its liabilities and exploration commitments. This risk is
managed by ensuring that the Group has sufficient funds to meet those commitments by monitoring the expected
total cash in and out flows on a continuous basis.
All of the Group and Company’s trade creditors and other payables (note 17) are payable in less than six months.
(f) Derivative instruments
The Company and Group did not make use of derivative instruments during the year.
71
Ophir energy plc | 2010 ANNUAL REPORT
Group accounts | notes to the financial statements
(g) Disclosure of fair values
The carrying value of security deposits and financial liabilities disclosed in the Financial Statements as at 31 December
2010 approximate their fair value for both the Company and Group.
The Group uses various methods in estimating the fair value for financial instruments carried at fair value in the
Financial Statements. The methods comprise:
Level 1
Level 2
Level 3
the fair value is calculated using quoted prices in active markets.
the fair value is estimated using inputs other than quoted prices included in Level 1 that are observable
for the asset or liability, either directly (as price) or indirectly (derived from prices).
the fair value is estimated using inputs for the asset or liability that are not based on observable
market data.
There were no transfers between levels during the year.
(h) Capital management
Capital consists of equity attributable to the equity holders of the Parent. The primary objective of the Group’s
capital management is to ensure it has sufficient funds to carry out its exploration and potential development
activities. At 31 December 2010 the Group had no debt, other than payables as part of normal working capital.

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Ophir energy plc |
2010 ANNUAL REPORT
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Corporate
directory
DirecTOrs
non executive chairman
Nicholas Smith
executive Directors
Alan Stein - Managing Director
Jonathan Taylor - Executive Director - New Business &
Deputy Managing Director
non executive Directors
Arun Balakrishnan
Michael Cohen
Jaroslaw Paczek
Rajan Tandon
Mikki Xayiya
Jacob Ulrich (Alternate Director for Mikki Xayiya)
Stefan Krieglstein (Alternate Director for Jaroslaw Paczek)
independent non executive Directors
John Lander
Dennis McShane
Lyndon Powell
company secretary
Prism CoSec Limited
271 Regent Street
London W1B 2ES
United Kingdom
73
Ophir energy plc | 2010 ANNUAL REPORT
grOUp AccOUnTs | CORPORATE diRECTORy
registered Office
55 Grosvenor Street
London W1K 3HY
United Kingdom
Auditors
Ernst & Young LLP
1 More London Place
London SE1 2AF
United Kingdom
solicitors
Linklaters
One Silk Street
London EC2Y 8HQ
United Kingdom
BAnKers
England:
HSBC Bank plc
70 Pall Mall
London SW1 5EY
United Kingdom
England:
Standard Bank Plc
25 Dowgate Hill
London EC4R 2SB
United Kingdom
Australia:
HSBC Bank Australia Limited
188 - 190 St George’s Terrace
Perth WA 6000
Australia
Ophir OFFices
55 Grosvenor Street
London W1K 3HY
United Kingdom
464 Hay Street
Subiaco WA 6008
PO Box 463
West Perth WA 6872
Australia
Plot 1228, Block 2,
Masaki Street
Msasani Peninsula
PO Box 23184
Dar es Salaam
United Republic of Tanzania
APDO 274
Ophir House
Km 5, Carretera Aeropuerto
Malabo
Equatorial Guinea
Tel: +44 (0)20 7290 5800
Fax: +44 (0)20 7290 5821
Tel: +61 (0)8 9212 9600
Fax: +61 (0)8 9212 9699
Tel: +255 (0)22 221 5500
Fax: +255 (0)22 221 5599
Tel: +240 333 09 84 74
Fax: +240 333 09 86 26
www.ophir-energy.com
info@ophir-energy.com