Annual Report 2010 - Ophir Energy

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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
Page 1 and 2: An African Energy Company Annual Re
Page 3 and 4: Contents Overview Highlights of the
Page 5 and 6: 3 SADR x4 Daora, Haouza, Mahbes, Mi
Page 7 and 8: negotiations with the Government of
Page 9 and 10: 7 Ophir energy plc | 2010 ANNUAL RE
Page 11 and 12: Jonathan Taylor BSc (Hons), MSc - E
Page 13 and 14: 11 Control room on the rig floor, D
Page 15 and 16: 13 The operational activities under
Page 17 and 18: Forward plan The recent drilling re
Page 19 and 20: Agc profond, Agc Overview AGC is a
Page 21 and 22: Block Marine iX, congo (Brazzaville
Page 23 and 24: 21 campaigns offshore Tanzania and
Page 25 and 26: OPERATIONAL RISKS Discovery Risk: N
Page 27 and 28: 25 ORDINARY SHARES OF 0.25P EACH NA
Page 29: supplier payment policy The Company
Page 33 and 34: The Board of Directors currently co
Page 35 and 36: health, safety & environment commit
Page 37 and 38: The remuneration of the Executive a
Page 39 and 40: 37 Independent Auditor’s Report W
Page 41 and 42: Group Accounts Group Statement of C
Page 43 and 44: group Accounts Group Statement of F
Page 45 and 46: Group Accounts Group Statement of C
Page 47 and 48: Notes to the financial statements 1
Page 49 and 50: Notes to the Financial Statements 2
Page 57 and 58: Notes to the Financial Statements (
Page 59 and 60: Notes to the financial statements (
Page 61 and 62: Notes to the Financial Statements (
Page 73 and 74: Notes to the Financial Statements S
Page 75: Corporate directory DirecTOrs non e

Annual Report 2010 - Ophir Energy

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