Annual Report 2007 - Global Energy Development

38 Notes to the financial information Global Energy Development PLCAnnual report 2007Notes to the financial information continuedFor the twelve months ended 31 December 200715. Trade and other receivables2007 2006$000 $000Trade receivables 10,351 4,399Less provision for impairment of trade receivables (1,931) (881)Net trade receivables 8,420 3,518Other receivables 50 601Prepayments 437 286Withholding taxes receivable 460 –Total trade and other receivables 9,367 4,405As at 31 December 2007, with the exception of the unitisation issue discussed below, there were no receivables considered past due(2006: $nil), and the Board of Directors considers that the carrying values adequately represents the fair values of all receivables. Themaximum exposure to credit risk at the reporting date is the fair value of each class of receivable set out above.As at 31 December 2007, trade receivables of $4.0 million (2006: $3.1 million) related to an association partner in the Colombianregion, whose legal entitlement under a unitisation issue is subject to ongoing negotiation and arbitration. In light of the probability ofdelays anticipated in the resolution of the unitisation issue, the Board of Directors elected to impair the receivable. The amount of theprovision as at 31 December 2007 was $1.9 million (2006: $881,000) based on a 10% discount factor. The ageing of this receivableis as follows:2007 2006$000 $000Up to 3 months 244 974 to 6 months 236 317Over 6 months 3,560 2,717Total 4,040 3,131Also included in the above are trade receivables from the Group’s sole customer totalling $6.3 million (2006: $1.1 million) in crudesales receivables not considered a risk due to the short term nature of the receivables, the positive credit rating of the customer, andthe historical trading relationship with this customer. The full balance from this customer as at 31 December 2007 was due within30 days (2006: 30 days).Other classes of financial assets included within trade and other receivables do not contain impaired assets.The carrying values of the Groups’ trade and other receivables are denominated in the following currencies:2007 2006$000 $000US dollar 7,323 3,556Colombian peso 2,040 845Peruvian nuevos soles 4 4Total 9,367 4,405