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Nautical Petroleum plc Annual report and accounts 2010
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Directors’ report continued
Going concern
Following the Board’s review of the Group’s financial position and forward cash forecasts, the Directors are of the view that the Group has
adequate financial resources to continue its operational activities and meet its liabilities as and when they fall due for the foreseeable
future and for a period of at least 12 months from the date of authorisation of these financial statements. For this reason the financial
statements are prepared on a going concern basis.
Post balance sheet events
On 31 August 2010 the Company completed a placing of 24,280,000 new ordinary shares of 20 pence each, at a price per share of 125
pence. The placing raised £30.35m (£28.8m net of expenses). Following the admission of the shares there are 87,688,291 shares in issue.
As part of the placing International Energy Group AG (IEG), the Company’s largest shareholder at 30 June 2010 holding 18,309,425 shares
(28.9% of the issued capital), sold 13,000,000 shares. Following the sale of the shares IEG holds 4,409,425 ordinary shares representing
5.03% of the enlarged issued capital of the Company.
On 22 September 2010 the Company signed a Sale and Purchase Agreement with Statoil (U.K.) Limited (Statoil) for the sale of a 20.6667%
interest in Licence P355, Block 9/11a (the “Licence”), which contains the Mariner discovery. Statoil will pay total consideration of £87.5m
for a 20.6667% interest in the Licence and associated rights, plus a maximum £3.0m carry of the Company’s cost through to final
investment decision. Following completion the Company’s interest in the Licence will be 6%. The transaction is pending approval from
the joint venture partners in the block and the Department of Energy and Climate Change (DECC). As at 30 June 2010, the book value of
the assets being sold was £31.1m.
Board committees
Information on the Audit Committee and the Remuneration Committee is included in the Corporate Governance section of the Annual
Report. The report of the Remuneration Committee will be the subject of an ordinary resolution at the Annual General Meeting.
Disclosure of information to the auditors
Having made enquiries of fellow Directors and of the Company’s auditors, each of the Directors confirms that, to the best of each
Director’s knowledge and belief, there is no information relevant to the preparation of their report of which the Company’s auditors are
unaware; and each Director has taken all the steps a Director might reasonably be expected to have taken to be aware of the 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.
Auditors
A resolution to reappoint Ernst & Young LLP as auditors will be proposed at the forthcoming Annual General Meeting at a fee to be
agreed in due course by the Audit Committee and the Directors.
Annual General Meeting
The Annual General Meeting will be held on 16 Tuesday November 2010 as stated in the Notice of Meeting, which accompanies this
Annual Report.
On behalf of the Board.
Stephen Jenkins
Director
8 October 2010