REG - Sterling Energy PLC - Annual Financial Report <Origin Href="QuoteRef">SEY.L</Origin> - Part 2

AfentraAnnouncement

26/03/2015 07:01

- Part 2: For the preceding part double click  ID:nRSZ4783Ia 

      Intangible royalty assets 
 
                                       Group    
                                       $000     
                                                
 Net book value at 1 January 2013      2,424    
 Amortisation charge for the year      (782)    
 Impairment reversal                   1,152    
 Net book value at 31 December 2013    2,794    
 Amortisation charge for the year      (733)    
 Impairment for the year               (2,061)  
 Net book value at 31 December 2014    -        
                                                
 
 
Group net book value at 31 December 2014 comprises the value of rights to
future royalties in respect of the Group's agreements covering licences PSC A,
PSC B and PSC C-10 in Mauritania. The value of these royalty interests is
dependent upon future oil and gas prices and the development and production of
the underlying oil and gas reserves. 
 
7.         Intangible Exploration and Evaluation ("E&E") assets 
 
                                                                         Group    
                                                                         $000     
                                                                                  
 Net book value at 1 January 2013                                        10,245   
 Additions during the year                                               4,192    
 Reimbursement of back costs on farm-out of Ambilobe licence    (1,250)  
 Net book value at 31 December 2013                                      13,187   
 Additions during the year                                               17,102   
 Impairment for the year                                                 (1,863)  
 Net book value at 31 December 2014                                      28,426   
                                                                                  
 
 
Impairment for the year refers to the full impairment of the Ampasindava
asset. 
 
On 27 January 2014, the Group accounted for $3.0 million toward a 15% interest
in the Odewayne block from Jacka Resources Somaliland Limited (Jacka), an
Australian company. This had been previously accounted for as a prepayment at
31 December 2013. 
 
On 6 May 2014, the Company announced the completion of the acquisition of an
additional 15% interest in the Odewayne block from Jacka and paid $12.0
million as consideration for the farm-in and settlement for future commitments
under the farm-in agreement. 
 
Under the terms of both acquisitions, the Group paid $15.0 million for a 30%
interest in the Odewayne block, further to the 10% acquired in 2013 from
Petrosoma Limited. 
 
8.         Property, plant and equipment 
 
                                                                Computer                         
                                            Oil and Gas assets  and office equipment  Total      
 Group                                      $000                $000                  $000       
                                                                                                 
 Cost                                                                                            
 At 1 January 2013                          185,802             3,064                 188,866    
 Additions during the year                  -                   85                    85         
 Adjustments during the year                -                   (3,006)               (3,006)    
 At 31 December 2013                        185,802             143                   185,945    
 Additions during the year                  -                   32                    32         
 At 31 December 2014                        185,802             175                   185,977    
                                                                                                 
 Accumulated depreciation and impairment                                                         
 At 1 January 2013                          (181,825)           (2,982)               (184,807)  
 Charge for the year                        (1,638)             (69)                  (1,707)    
 Impairment reversal for the year           3,207               -                     3,207      
 Disposals in the year                      -                   3,006                 3,006      
 At 31 December 2013                        (180,256)           (45)                  (180,301)  
 Charge for the year                        (1,567)             (58)                  (1,625)    
 Impairment for the year                    (3,979)             -                     (3,979)    
 At 31 December 2014                        (185,802)           (103)                 (185,905)  
                                                                                                 
 Net book value at 31 December 2014         -                   72                    72         
 Net book value at 31 December 2013         5,546               98                    5,644      
 Net book value at 31 December 2012         3,977               82                    4,059      
                                                                                                 
 
 
DEFINITIONS AND GLOSSARY OF TERMS 
 
$                                                       US dollars 
 
2006 Act                                            The Companies Act 2006, as
amended 
 
2007 LTIP                                          the 2007 Long Term
Incentive Plan 
 
1P                                                     Proven reserves or
in-place quantities depending on the context 
 
2D                                                     two dimensional 
 
2P                                                        the sum of Proven
and Probable reserves or in-place quantities depending on the context 
 
3D                                                     three dimensional 
 
3P                                                        the sum of Proven,
Probable and Possible reserves or in-place quantities depending on the
context 
 
AIM                                                   AIM, a market of the
London Stock Exchange 
 
All Staff LTIP                                      the All Staff Long-Term
Incentive Plan adopted in 2009 
 
AGM                                                 Annual General Meeting 
 
Articles                                              the Articles of
Association of the Company 
 
bbl                                                    barrel, equivalent to
42 US gallons of fluid 
 
bopd                                                  barrel of oil per day 
 
boe                                                       barrel of oil
equivalent, a measure of the gas component converted into its equivalence in
barrels of oil 
 
Board                                                the Board of Directors of
the Company 
 
Combined Code or Code                         UK Corporate Governance Code 
 
Companies Act                                  the Companies Act (as amended
2006) 
 
Company                                           Sterling Energy plc 
 
CSOP                                                Company Share Option Plan
(HMRC approved share option scheme) 
 
Directors                                            the Directors of the
Company 
 
E&E                                                     exploration and
evaluation assets 
 
Adjusted EBITDA                                earnings before interest,
taxation, depreciation, depletion and amortisation, impairment, share-based
payments, provisions, and pre-licence expenditure 
 
EITI                                                    Extractive Industries
Transparency Initiative 
 
farm-in & farm-out                                  a transaction under which
one party (farm-out party) transfers part of its interest to a contract to
another party (farm-in party) in exchange for a consideration which may
comprise the obligation to pay for some of the farm-out party costs relating
to the contract and a cash sum for past costs incurred by the farm-out party 
 
FA                                                     Funding Agreement 
 
FPSO                                                   Floating, Production,
Storage and Offloading vessel 
 
G&G                                                     geological and
geophysical 
 
GBP                                                     pounds sterling 
 
Genel Energy                                     Genel Energy Somaliland
Limited 
 
Group                                                the Company and its
subsidiary undertakings 
 
HMRC                                               Her Majesty's Revenue and
Customs 
 
HMRC Approved Sub-Plan or               The HMRC approved sub-plan of the All
Staff LTIP 
 
HMRC Sub-Plan 
 
HSSE                                                Health, Safety, Security
and Environment 
 
hydrocarbons                                     organic compounds of carbon
and hydrogen 
 
IFRS                                                 International Financial
Reporting Standards 
 
K                                                      thousands 
 
km                                                    kilometre(s) 
 
km2                                                   square kilometre(s) 
 
lead                                                   indication of a
possible exploration prospect 
 
London Stock Exchange or LSE          London Stock Exchange Plc 
 
m                                                      metre(s) 
 
mcf                                                    thousand cubic feet 
 
Murphy                                              Murphy Cameroon Ntem Oil
Co. Ltd 
 
NED LTIP                                           non-executive Director Long
Term Incentive Plan adopted in 2009 
 
OECD                                                Organisation for Economic
Cooperation and Development 
 
Ordinary Shares                                  ordinary shares of 40 pence
each 
 
P90, P50, P10                                    90%, 50% and 10%
probabilities respectively that the stated quantities will be equalled or
exceeded. The P90, P50 and P10 quantities correspond to the Proved (1P),
Proved + Probable (2P) and Proved + Probable + Possible (3P) confidence levels
respectively 
 
Panel or Takeover Panel                      The Panel on Takeovers and
Mergers 
 
Petroleum                                          oil, gas, condensate and
natural gas liquids 
 
Petronas                                            PC Mauritania 1 PTY LTD 
 
Premier                                             Premier Oil 
 
Prospect                                            a potential sub-surface
accumulation of hydrocarbons which has been identified but not drilled 
 
PSA                                                  production sharing
agreement 
 
PSC                                                  production sharing
contract 
 
Pura Vida                                          Pura Vida Mauritius 
 
RA                                                    Royalty Agreement 
 
Reserves                                           reserves are those
quantities of petroleum anticipated to be commercially recoverable by
application of development projects to known accumulations from a given date
forward under defined conditions. Reserves must satisfy four criteria; they
must be discovered, recoverable, commercial and remaining based on the
development projects applied. Reserves are further categorised in accordance
with the level of certainty associated with the estimates and may be
sub-classified based on project maturity and/or characterised by development
and production status 
 
Reservoir                                           a porous and permeable
rock capable of containing fluids 
 
RISC                                                     RISC (UK) Limited of
53 Chandos Place, Covent Garden, London WC2N 4HS 
 
Seismic                                             data, obtained using a
sound source and receiver, that is processed to provide a representation of a
vertical cross-section through the subsurface layers 
 
SESP                                                Sterling Energy plc share
price 
 
Shares                                              40p Ordinary Shares 
 
Shareholders                                      Ordinary shareholders of 40p
each in the Company 
 
SMHPM                                            Société Mauritanienne Des
Hydrocarbures et du Patrimoine Minier 
 
Subsidiary                                         a subsidiary undertaking as
defined in the 2006 Act 
 
TSR                                                  Total Shareholder Return
(End Share Price - Opening Share Price/Opening Share Price) plus (Sum of
Dividends Per Share/Opening Share Price) 
 
United Kingdom or UK                        the United Kingdom of Great
Britain and Northern Ireland 
 
UK Corporate Governance Code           Formerly the Combined Code, sets out
standards of good     practice in relation to Board leadership and
effectiveness, remuneration, accountability and relations with shareholders 
 
United States or US                            the United States of America 
 
Working Interest or WI                        a Company's equity interest in a
project before reduction for royalties or production share owed to others
under the applicable fiscal terms 
 
This information is provided by RNS
The company news service from the London Stock Exchange