REG - Chariot Oil & Gas Ld - Final Results <Origin Href="QuoteRef">CHARC.L</Origin> - Part 2
20/03/2015 07:01
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current liabilities 2,132 6,019
Total liabilities 2,132 6,019
Net assets 162,051 188,410
Capital and reserves attributable to equity holders of the parent
Share capital 17 4,779 3,776
Share premium 338,348 324,577
Contributed equity 796 796
Share based payment reserve 4,514 3,874
Foreign exchange reserve (1,241) (1,241)
Retained deficit (185,145) (143,372)
Total equity 162,051 188,410
The notes form part of these financial statements.
The financial statements were approved by the Board of Directors and
authorised for issue on 19 March 2015.
George Canjar
Chairman
Chariot Oil & Gas Limited
Consolidated Cash Flow Statement for the Year Ended 31 December 2014
Year ended 31 December 2014 Year ended 31 December 2013
US$000 US$000
Operating activities
Loss for the year before taxation (41,462) (8,646)
Adjustments for:
Finance income (1,546) (758)
Finance expense 1,580 1,177
Depreciation 334 349
Share based payments 1,746 2,219
Impairment of exploration asset 33,629 -
Net cash outflow from operating activities before changes in working capital (5,719) (5,659)
(Increase) / decrease in trade and other receivables (197) 1,360
Increase / (decrease) in trade and other payables 162 (1,520)
Increase in inventories (92) (81)
Cash outflow from operating activities (5,846) (5,900)
Tax payment (2,078) -
Net cash outflow from operating activities (7,924) (5,900)
Investing activities
Finance income 1,578 758
Payments in respect of property, plant and equipment (63) (80)
Farm-in proceeds 10,265 26,400
Payments in respect of intangible assets (19,146) (31,574)
Net cash outflow used in investing activities (7,366) (4,496)
Financing activities
Issue of Ordinary share capital 14,577 -
Issue costs (909) -
Net cash inflow from financing activities 13,668 -
Net decrease in cash and cash equivalents in the year (1,622) (10,396)
Cash and cash equivalents at start of the year 56,684 68,257
Effect of foreign exchange rate changes on cash and cash equivalent (1,580) (1,177)
Cash and cash equivalents at end of the year 53,482 56,684
The notes form part of these financial statements.
Chariot Oil & Gas Limited
Notes forming part of the financial statements for the year ended 31 December
2014
1 General information
Chariot Oil & Gas Limited is a company incorporated in Guernsey with
registration number 47532. The address of the registered office is Regency
Court, Glategny Esplanade, St Peter Port, Guernsey, GY1 3RH. The nature of the
Company's operations and its principal activities are set out in the
Director's Report and in the Technical Director's Review of Operations.
2 Accounting policies
Basis of preparation
The financial statements have been prepared in accordance with International
Financial Reporting Standards (IFRS) and IFRIC interpretations, as issued by
the International Accounting Standards Board (IASB), as adopted by the
European Union.
In accordance with the provisions of section 244 of the Companies (Guernsey)
Law 2008, the Group has chosen to only report the Group's consolidated
position, hence separate Company only financial statements are not presented.
The financial statements are prepared under the historical cost accounting
convention on a going concern basis.
Going concern
The Directors are of the opinion that the Group has adequate financial
resources to enable it to undertake its planned programme of exploration and
appraisal activities for a period of at least 12 months.
New Accounting Standards
The following new standards and amendments to standards are mandatory for the
first time for the Group for the financial year beginning 1 January 2014. The
implementation of these standards and amendments to standards has had no
material effect on the Group's accounting policies.
Standard Effective year commencing on or after
IFRS 10 - Consolidated Financial Statements 1 January 2014
IFRS 11 - Joint Arrangements 1 January 2014
IFRS 12 - Disclosure of Interests in Other Entities 1 January 2014
IAS 27 - Amendment - Separate Financial Statements 1 January 2014
IAS 28 - Amendment - Investments in Associates and Joint Ventures 1 January 2014
IAS 32 - Offsetting Financial Assets and Financial Liabilities 1 January 2014
IAS 36 - Recoverable Amounts Disclosures for Non-Financial Assets 1 January 2014
IAS 39 - Novation of Derivatives and Continuation of Hedge Accounting 1 January 2014
IFRIC 21 - Levies 1 January 2014
Certain new standards and amendments to standards have been published that are
mandatory for the Group's accounting periods beginning after 1 January 2015 or
later years to which the Group has decided not to adopt early when early
adoption is available. The implementation of these standards and amendments is
expected to have no material effect on the Group's accounting policies. These
are:
Standard Effective year commencing on or after
IAS 1 - Presentation of Financial Statements (Amendments) 1 January 2016*
IAS 19 - Defined Benefit Plans (Amendments) 1 February 2015
IAS 16 and IAS 38 - Acceptable Methods of Depreciation and Amortisation (Amendments) 1 January 2016*
IAS 27 - Separate Financial Statements 1 January 2016*
IFRS 9 - Financial Instruments 1 January 2018*
IFRS 10 and IAS 28 - Investments in Associates and Joint Ventures (Amendments) 1 January 2016*
IFRS 10, 12 and IAS 28 - Investment Entities (Amendments) 1 January 2016
IFRS 11 - Joint Arrangements (Amendments) 1 January 2016*
IFRS 15 - Revenue from Contract with Customers 1 January 2017*
Annual Improvements to IFRSs - (2010-2012 Cycle) 1 February 2015
Annual Improvements to IFRSs - (2011-2013 Cycle) 1 January 2015
Annual Improvements to IFRSs - (2012-2014 Cycle) 1 January 2016*
* Not yet endorsed by the EU.
Exploration and appraisal costs
All expenditure relating to the acquisition, exploration, appraisal and
development of oil and gas interests, including an appropriate share of
directly attributable overheads, is capitalised within cost pools.
The Board regularly reviews the carrying values of each cost pool and writes
down capitalised expenditure to levels it considers to be recoverable. Cost
pools are determined on the basis of geographic principles. The Group
currently has six cost pools being Northern, Central and Southern Blocks in
Namibia, Mauritania, Morocco and Brazil. In addition where exploration wells
have been drilled, consideration of the drilling results is made for the
purposes of impairment of the specific well costs. If the results sufficiently
enhance the understanding of the reservoir and its characteristics it may be
carried forward when there is an intention to continue exploration and drill
further wells on that target.
Where farm-in transactions occur which include elements of cash consideration
for, amongst other things, the reimbursement of past costs, this cash
consideration is credited to the relevant accounts within the cost pools where
the farm-in assets were located. Any amounts of farm-in cash consideration in
excess of the value of the historic costs in the cost pools is treated as a
credit to the Consolidated Statement of Comprehensive Income.
Any Capital Gains Tax payable in respect of a farm-in transaction is
recognised in the Consolidated Statement of Comprehensive Income.
Inventories
The Group's share of any material and equipment inventories is accounted for
at the lower of cost and net realisable value. The cost of inventories
comprises all costs of purchase, costs of conversion and other costs incurred
in bringing the inventories to their present location and condition.
Taxation
Income tax expense represents the sum of the current tax and deferred tax
charge for the year.
Deferred tax is recognised on differences between the carrying amounts of
assets and liabilities in the financial statements and the corresponding tax
bases, and is accounted for using the balance sheet liability method.
Deferred tax liabilities are recognised for all taxable temporary differences
and deferred tax assets are recognised to the extent that it is probable that
taxable profits will be available against which deductible temporary
differences can be utilised.
The carrying amount of deferred tax assets is reviewed at each reporting date
and reduced to the extent that it is no longer probable that sufficient
taxable profits will be available to allow all or part of the asset to be
recovered.
Deferred tax is calculated at the tax rates that have been enacted or
substantively enacted and are expected to apply in the year when the liability
is settled or the asset realised. Deferred tax is charged or credited to the
Consolidated Statement of Comprehensive Income, except when it relates to
items charged or credited directly to equity, in which case the deferred tax
is also dealt with in equity.
Deferred tax assets and liabilities are offset when there is a legally
enforceable right to set off current tax assets against current tax
liabilities and when they relate to income taxes levied by the same taxation
authority and the Group intends to settle its current tax assets and
liabilities on a net basis.
Foreign currencies
Transactions in foreign currencies are translated into US Dollars at the
exchange rate ruling at the date of the transaction. Monetary assets and
liabilities denominated in foreign currencies are translated into US Dollars
at the closing rates at the reporting date and the exchange differences are
included in the Consolidated Statement of Comprehensive Income. The functional
and presentational currency of the parent and all Group companies is the US
Dollar.
Property, plant and equipment and depreciation
Property, plant and equipment are stated at cost or fair value on acquisition
less depreciation and impairment. Depreciation is provided on a straight line
basis at rates calculated to write off the cost less the estimated residual
value of each asset over its expected useful economic life. The residual value
is the estimated amount that would currently be obtained from disposal of the
asset if the asset were already of the age and in the condition expected at
the end of its useful life.
Property, plant and equipment are depreciated using the straight line method
over their estimated useful lives over a range of 2.5 - 5 years.
The carrying value of property, plant and equipment is assessed annually and
any impairment charge is charged to the Consolidated Statement of
Comprehensive Income.
Operating leases
Rent paid on operating leases is charged to the Consolidated Statement of
Comprehensive Income on a straight line basis over the term of the lease.
Share based payments
Where equity settled share awards are awarded to employees or Directors, the
fair value of the awards at the date of grant is charged to the Consolidated
Statement of Comprehensive Income over the vesting period. Non-market vesting
conditions are taken into account by adjusting the number of equity
instruments expected to vest at each balance sheet date so that, ultimately,
the cumulative amount recognised over the vesting period is based on the
number of awards that eventually vest. Market vesting conditions are factored
into the fair value of the awards granted. As long as all other vesting
conditions are satisfied, a charge is made irrespective of whether the market
vesting conditions are satisfied. The cumulative expense is not adjusted for
failure to achieve a market vesting condition.
Where the terms and conditions of awards are modified before they vest, the
increase in the fair value of the awards, measured immediately before and
after the modification, is also charged to the Consolidated Statement of
Comprehensive Income over the remaining vesting period.
Where shares already in existence have been given to employees by
shareholders, the fair value of the shares transferred is charged to the
Consolidated Statement of Comprehensive Income and recognised in reserves as
Contributed Equity.
Basis of consolidation
Where the Company has control over an investee, it is classified as a
subsidiary. The Company controls an investee if it has power over the investee
and it is exposed to variable returns from the investee and it has the ability
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