Annual Report 2010 - Ophir Energy

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.