Annual Report 2010 - Ophir Energy

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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
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 and 30: supplier payment policy The Company
Page 31 and 32: Auditors Each of the persons who is
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: Group Accounts Group Statement of C
Page 49 and 50: Notes to the Financial Statements 2
Page 51 and 52: 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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