REG - Petro Matad Ltd - Final results for year ended 31 December 2015 <Origin Href="QuoteRef">MATD.L</Origin> - Part 3

Petro MatadAnnouncement

30/06/2016 16:00

- Part 3: For the preceding part double click  ID:nRSd8646Cb 

financial liabilities included in
the level 2 category above have been determined in accordance with generally
accepted pricing models based on a discounted cash flow analysis, with the
most significant inputs being the discount rate that reflects the credit risk
of counterparties. 
 
20   Capital management 
 
The Group's objectives when managing capital are to safeguard the Group's
ability to continue as a going concern in order to provide returns for
shareholders and benefits for other stakeholders and to maintain an optimal
capital structure to reduce the cost of capital. The management of the Group
and the Group's capital is regularly reviewed by the Board.  The capital
structure of the Group consists of cash and bank balances (Note 7) and equity
of the Group (comprising issued capital, reserves and retained earnings as
detailed in Notes 13 and 14).  This is reviewed by the Board of Directors as
part of their regular Directors meetings. 
 
The Group monitors its capital requirements based on the funding required for
its exploration activities in Mongolia and operations of the company. 
 
The Group is not subject to externally imposed capital requirements. 
 
21   Events after the reporting date 
 
On 1 January 2016, Petro Matad Service Limited was dissolved, as the company
was dormant due to no longer being operationally required. 
 
On 20 April 2016, PAM granted a one-year moratorium, effective 1 January 2016,
for Block XX. The moratorium will enable the Company to defer expenditures
towards the minimum PSC obligation by one year. The PSC term is consequently
extended by one-year to July 2018. 
 
On 28 April 2016, the Company received an Exit Notification from BG Group that
advised they were triggering their option under the farm-out agreement to exit
Blocks IV and V PSCs, effective immediately. Upon Mongolian Government
approval, the Company's working interest in both PSCs will therefore revert to
100%. 
 
22   Auditors' remuneration 
 
The auditor of Petro Matad Limited is Deloitte Touche Tohmatsu ("Deloitte"). 
 
                                                                                                                                
                                                                                                                                               
                                                                                                                   31 Dec 2015  31 Dec 2014  
                                                                                                             Note  $'000        $'000        
 Amounts received or due and receivable by Deloitte Touche Tohmatsu for:                                                                     
                                                                                                                                             
 - an audit or review of the financial report of the entity and any other entity in the consolidated entity        75           57           
 - other services in relation to the entity and any other entity in the consolidated entity                        -            -            
                                                                                                                   75           57           
 Amounts received or due and receivable by Deloitte Onch Audit LLC for:                                                                      
                                                                                                                                             
 - an audit or review of the financial report of subsidiary entities                                               39           42           
 - other services in relation to the subsidiary entities                                                           -            -            
                                                                                                                   39           42           
                                                                                                                   114          99           
                                                                                                                                                 
 
 
23   Other Information 
 
Registered Office: 
 
Victory House 
 
Douglas 
 
Isle of Man 
 
IM1 1EQ 
 
This information is provided by RNS
The company news service from the London Stock Exchange