Annual Report 2007 in PDF - Cairn Energy PLC

NOTES TO THE ACCOUNTS
CONTINUED
12. Earnings per Ordinary Share
The earnings per ordinary share are calculated on a profit of $1,519,653,000 (2006 (restated): loss $97,122,000) and on a
weighted average of 135,637,411 ordinary shares (2006: 157,654,751). The weighted average of ordinary shares excludes shares
held by the Cairn Energy PLC Employees’ Share Trust. No retrospective adjustment was made to the weighted average number
of shares, relating to the share consolidation of 23 March 2007, as there was a corresponding change in resources in the form of
the return of cash to shareholders (see Notes 27 and 29).
The diluted earnings per ordinary share are calculated on a profit of $1,519,511,000 and on 135,844,139 ordinary shares.
The profit of $1,519,511,000 reflects the reduced profit attributable to equity holders of the parent after potential Cairn India
share option issues. The figure of 135,844,139 ordinary shares is the basic weighted average of 135,637,411 ordinary shares
and the 206,728 dilutive potential ordinary shares relating to share options.
In respect of 2006, 587,128 potential ordinary shares were anti-dilutive.
13. Intangible Exploration/Appraisal Assets
Cairn India Capricorn
Group Group Total
Group $’000 $’000 $’000
Cost
At 1 January 2006 290,437 31,418 321,855
Additions 141,826 19,142 160,968
Transfers between categories (1,566) – (1,566)
Unsuccessful exploration costs (56,650) (5,368) (62,018)
––––––––––– ––––––––––– –––––––––––
At 1 January 2007 374,047 45,192 419,239
Acquisition of subsidiaries – 139,505 139,505
Additions 108,628 71,888 180,516
Transfers between categories (11,155) – (11,155)
Disposals – (21,412) (21,412)
Unsuccessful exploration costs (15,347) (25,367) (40,714)
––––––––––– ––––––––––– –––––––––––
At 31 December 2007 456,173 209,806 665,979
––––––––––– ––––––––––– –––––––––––
Impairment
At 1 January 2006 and 2007 – – –
Impairment – 58,924 58,924
––––––––––– ––––––––––– –––––––––––
At 31 December 2007 – 58,924 58,924
––––––––––– ––––––––––– –––––––––––
Net book value at 31 December 2007 456,173 150,882 607,055
––––––––––– ––––––––––– –––––––––––
Net book value at 31 December 2006 374,047 45,192 419,239
––––––––––– ––––––––––– –––––––––––
Net book value at 1 January 2006 290,437 31,418 321,855
––––––––––– ––––––––––– –––––––––––
During the year, Cairn booked reserves in respect of the Lakshmi Oil field (2006: CB-X). As a consequence $11.2m (2006: $1.6m)
of costs were transferred to property, plant & equipment – development/producing assets (Note 14).
The acquisition of subsidiaries refers to the acquisition of Plectrum and medOil during the year. See Note 3 for further details.
The disposal of assets in 2007 relates to the sale of Cairn Energy Bangladesh Limited to Santos International Holdings Pty
Limited. See Note 3 for details.
102 CAIRN ENERGY PLC ANNUAL REPORT 2007