8 Jun 2012 07:00
Embargoed for release: 0700 on 8 June 2012
Northern Petroleum Plc ("Northern", "the Group", or "the Company") Audited Results for the Year Ended 31 December 2011
Northern Petroleum Plc, an independent oil and gas exploration, development andproduction company announces its audited results for the year ended 31 December2011.RESULTS SUMMARY Year ended Year ended 31 December 31 December 2011 2010 €'000 €'000 Revenue 24,531 14,968 Gross profit 12,117 6,697 EBITDA (i) 18,251 5,083 Adjusted EBITDA (ii) 18,971 6,475 Profit / (loss) for the year 6,231 (1,155) Basic earnings / (loss) per share on 6.7 € cents (1.3) €result for the year cents Capital expenditure (iii) 9,966 13,688 Cash and cash equivalents 29,794 21,430 Other working capital 1,509 2,466 Net assets 93,280 85,371 Total Group distributable reserves 61,568 54,039 Production (million boe) 0.58 0.44
Average revenue, in currency of receipt,
per boe: Gas €41.20 €32.69 Oil $103.42 $73.58
Unaudited Net Commercial Oil & Gas Reserve 75.55
89.45Quantities
- Proven and Probable reserves (million boe)
i. Earnings before interest (and other finance income and costs), tax,
depreciation, depletion, amortisation and write offs of oil and gas assets.
ii. In addition to the above, is calculated before share-based payments and
pre-licence costs.
iii. Includes increase in investment in Northpet Investments Limited (i.e.
financing Zaedyus-1 well) during the year.
Richard Latham, Chairman of Northern, commented:
For the 2011 financial year Northern achieved much good progress against ourobjectives. Most notable has been our exploration success with theground-breaking Zaedyus oil discovery in Guyane, potentially opening up a newoil province offshore of South America. We have made progress in Italy, andalso in The Netherlands where the shale oil potential of our licences on whichwe have embarked on seeking a divestment or partner to develop the potential,is giving us encouragement. In 2012 and continuing through 2013, a programme ofdevelopment and exploration wells will start to provide renewed growth takingadvantage of our strong asset base. We have the management team andstrengthened financial resources from operating activities to ensure that wedeliver.
The year was not without its challenges, all of which were dealt with decisively by management and the Board. Despite these challenges, we made significant headway.
Our total annual production was up 31 per cent on 2010, even though in TheNetherlands our operations on four new gas fields were at the initial stages,with production to be enhanced following further development drilling. Dutchgas volumes from other fields were maintained and the gas and oil prices wereceived were higher. The average unit gas price received in The Netherlands in2011 was €0.264 per normal cubic metre against €0.21 in 2010. This enables usto report robust financial results with revenue up by €9.5 million at €24.5million, operating cash flow rising to €15.0 million and profit before taxreaching €10.5 million, a material improvement on the 2010 break-even position.Throughout 2011 we focused on seeking to realise the large upside potential ofour portfolio and on continually improving productivity and efficiency at ouroperations, while reviewing opportunities for new sources of value to enhancegrowth. We invested a total of €8.7 million in the current asset base of theGroup, including the Zaedyus oil discovery in late 2011 which demonstrated theprospectivity of offshore Guyane. Having made this investment we closed theyear with €29.8 million cash, against €21.4 million at the end of 2010.These cash balances are providing us with the strategic flexibility we need togrow the business. Our objectives remain to optimise, expand and grow,underpinning the Company's long-term future and delivering on our commitment torealise value for our shareholders. In line with our strategy of trading, wewill also continue to review whether we should realise any assets in order tofund the building of existing or new opportunities elsewhere.The review process of our Netherlands fields announced last year continues. Allour 3D seismic coverage is being reprocessed and some initialre-interpretations are available on fast track volumes. Preliminary reservoirstudy results have been assessed and on balance indicate the need for downwardrevision. However, the results available so far have encouraged us to moveforward the plans to drill two new development wells in the Geesbrug gas field.Each will be located on existing sites, those of Geesbrug-1 and Tiendeveen-1,avoiding the time normally required for application for local planningconsents. These should boost production revenues next year.
Although we sold our small interest in the Vinkega gas discovery for € 3.2million, this has led to recognition of on trend exploration prospects on our licence and these are among plans for drilling being finalised in discussion with our partners.
We have continued to work on our existing production wells and on planning newones, ensuring that our assets are positioned to generate long-term, morereliable operating performance. To this end we have maintained our absolutecommitment to operating in a responsible manner with our host communities andto ensuring that we embed the culture of health and safety in all ouroperations and activities.Our industry is becoming an increasingly expensive one in which to operate.Against a backdrop of rising cost pressures we continued to keep a tight reinon out-goings and to operate economically. Given our plans for new explorationand drilling in The Netherlands and the programme in Guyane we have alsocontinued to actively pursue new partnerships so as to be able to deliverprogress elsewhere without diluting shareholders' equity.
Competition for good assets is becoming more and more competitive. However, Northern has established a track record with government authorities as a trusted manager of both onshore and offshore projects, acting with high integrity. However, there has been a heightening of environmental concerns and in consequence it has not always been possible for us to move as fast as we would like.
This applies notably in Italy, where Northern has exciting and significant longterm opportunities in a large portfolio of assets. Escalation of our operationsthere continued to be delayed by the slowness of processing applicationdocuments through the Italian system, notwithstanding the country's intenseneeds for energy industry investment.The success in Guyane justifies the Board's strategy of reviewing and obtainingopportunities for new sources of value. It was as long ago as 2004, ahead ofTullow, Total and Shell that Northern obtained an interest in the GuyaneMaritime Licence and for many years it was not regarded in the industry ashaving any great potential. Now it is recognised as being one of the world'smore exciting new prospects, with the potential of multiple billion barrels ofoil.The joint venture, now operated by Shell, will be commencing a 3-4 wellprogramme in the next few months and success can be expected to be followed bya larger programme in order to drill as many prospects as possible before theend of the licence period in 2016. Northern holds a 1.25% interest via its 50%interest in Northpet Investments Limited.
The project, which pre-Zaedyus was considered high risk, now offers proven potential, though it is too early to be able to accurately assess the risk and reward.
We are continuing to press forward on our Italian portfolio. We are focusing onour offshore core areas around Sicily and in the even more prospective southernAdriatic Sea where our first infill 2D seismic survey has recently beenrecorded. We still await the requisite permissions there for our plannedpre-drilling 600km2 3D seismic survey (which will largely be at our 15% partnerAzimuth's cost). This is the part of our overall Italian portfolio assessed asoffering the greatest potential and so is at the forefront of our endeavours.We recognise that to move forward our planned multiple well drilling programmeit would be prudent for us to seek a new funding partnership. This summer wewill open a data room for interested parties.West of Sicily, we have recognised that Shell is not undertaking to drill awell and we are in discussion with prospective new partners whilst undertakingmeasures to extend our permits. I would make clear to shareholders that so farthis has been a successful deployment of Northern`s strategy of low entry costand this post 3D seismic stage has been achieved at little cost to us. We haveretained the operatorship and are already in talks on partnership with onelarge company.On licence C.R147.NP, offshore Pantelleria, we took the decision to surrenderthe permit after assessing the full effects of the 2010 decree aimed atprotecting the near shore environment. Although it did not affect our currentinterests directly, the offshore limits set by this decree impacted thepotential to discover sufficient associated and primary gas reserves to achieveour target of exceeding our economic threshold requirement for a pipeline toSicily.
A Memorandum of Understanding has been reached with a gas company, with the prospect of an alliance that could provide finance for gas exploration projects. Discussions on the details are proceeding on a strictly confidential basis so as to better protect the business interests of both parties.
Our onshore Italian projects are no longer considered core, but we are preparing to drill the La Tosca well on a 43bcf gas target after our farm out to Orca Exploration. Drilling operations are expected to commence in August 2012.
In the UK, we have recently suspended our extended production test of theMarkwells Wood oil discovery in the South Downs National Park Authority area. Ibelieve our conduct of operations, recognising the interests of the localcommunity and the specific environment in which we are located, has beenexemplary. Indeed, our conduct of operations has received many plaudits and wehave recently been granted a one year extension of the planning consent.The results of this test were below expectations. The possibilities for furtheraction will now be examined with our partners, but we have decided to react tothe increased risks and uncertainty by reducing our net 2P reserve estimates by1.35 million barrels of oiluntil results prove otherwise.
At Hedge End, we have not been able to locate, rent or acquire a suitable drilling location, therefore the licence will shortly lapse so we can no longer carry 1.29 million barrels of oilof net 2P reserves.
However, the reduced reserves are more than balanced by our excitingexploration potential in the UK and elsewhere. Northern has applied for acreageoffshore in the UK 27th Round, a move vindicated by the unprecedented number ofapplications compared to the last few decades. Despite the acute uncertaintyabout the European economies, prospects for energy prices in Europe are likelyto be supported by the continuing heavy reliance on imports.In respect of the Netherlands the Board has taken the prudent step to reduceits Dutch 2P reserves by 10.67 million boe, 0.43 million boe (2.51 Bscf) ofwhich was taken at the mid year in respect of Wijk en Aalburg, comprising a netreduction of 6.43 million barrels of oil in respect of Ottoland and Papekop and24.58 Bscf in respect of our gas fields. These further revisions have led tosome additional immaterial accelerated DD&A charges in respect of the otherproducing fields.Despite awaiting the final reprocessed seismic data in The Netherlands toupdate in place oil and gas volumes, the Board is required as part of the auditprocess to provide best estimates of reserves as at year end. As a consequencewe advise an overall reduction on the previously reported net 2P reservesestimates for the Group from 88.5 to 75.6 million barrels of oil equivalent,allowing for production in 2011. The net 2P reserves do not include anycontribution from the large oil discovery in Guyane, which are yet to beclassified as reserves.We are on target to meet our first half 2012 production target of 1,040 barrelsof oil equivalent per day, and can advise that our working production forecastfor 2012 is 1,000 barrels of oil equivalent per day. The average unit gas pricereceived in The Netherlands during the first four months of 2012 has been €0.297 per normal cubic metre. Following possible workovers, interventions andnew development wells we anticipate a significant increase in production levelsfor 2013.Globally, urbanisation and industrialisation in the populous parts of the worldwill provide a strong platform for increased demand for energy and support forprices. Although long term fundamentals for growth are strong, there aredownside risks in the short term, and the potential for volatility due topersistent economic imbalances and the fragility of the world's financialsystems.We have strengthened the Board to ensure the most appropriate balance of skillsand experience, and to drive effective decision making. We believe we are wellprepared for the key challenges facing the energy industry, including thetechnical challenges that will arise as we move into unconventional energysources.To assist the Board's efforts Dr Rex Gaisford CBE has joined as a newNon-Executive Director of the Company. During his career to date he has beenCEO, MD, director, project manager, engineer and negotiator, with many largeinternational oil companies and led major multi-billion dollar exploration,development and production operations world-wide as well as opened up newbusiness opportunities in the UK, US, Denmark, Norway and Brazil.We have also appointed to the Board Maurice Eaton, Northern's Director of GroupOperations. He has over 30 years experience as a petroleum engineer andeconomist and substantial international experience with major petroleumcompanies. This marks the first appointment for some time that we have made tothe Board from our existing talented staff, which gives me great pleasure, aswell as underlining the quality of the professional team we have at Northern.
On behalf of the Board, I would like to thank all of our staff for their commitment, enthusiasm and hard work during the past year in developing our business and delivering on our potential. I would also like to congratulate them on our excellent safety record. At the Waalwijk gas field, the crew exceeded one million work hours without a lost time incident, a tremendous achievement of which we are extremely proud. Our thanks also go to our shareholders, whose continued support of Northern has encouraged us in the delivery of these excellent results.
I have great confidence as we advance through 2012 about our prospects andbelieve that Northern is well placed to deliver on the potential of our assetbase and will reward our shareholders for their loyalty in 2011. The comingyear will have its challenges, but I am expecting to be able to bring you astrong flow of good news from Guyane, The Netherlands and in Italy where wehope that the new government will help us to expedite our plans. I am convincedthat we have the elements in place, including our increasingly strong cashposition, which benefited from an accrual of operating cash flow to achieve ourobjectives.
I look forward to reporting again in twelve months time that we have made yet more progress.
R H R LathamChairman of the Board7 June 2012In accordance with the AIM Rules - Guidance for Mining and Oil & Gas Companies,the information contained in this announcement has been reviewed and signed offby the Exploration and Technical Director of Northern, Mr Graham Heard CGeolFGS, who has over 35 years experience as a petroleum geologist. - Ends -
For further information please contact:
Northern Petroleum Plc Tel: +44 (0) 20 7469 2900 Derek Musgrove, Managing Director Chris Foss, Director of Finance, Legal &
Corporate Affairs
Graham Heard, Exploration & Technical Director Cenkos Securities (NOMAD and Joint Broker)
Jon Fitzpatrick Tel: +44 (0) 20 7397 8900 Ken Fleming / Beth McKiernan Tel: +44 (0) 131 220 6939
Westhouse Securities (Joint Broker) Tel: +44 (0) 20 7601 6100 Richard Baty / Petre Norton - Corporate Finance Sanjiv Pandya - Corporate Broking
FTI Consulting Tel: +44 (0) 20 7831 3113 Billy Clegg / Edward Westropp Bishopsgate Communications Tel: +44 (0) 20 7562 3350 Nick Rome / Shabnam Bashir Notes to Editors:Northern is a full cycle oil and gas company currently holding over 50 licencesin a number of low risk areas and is continuing with its strategy of adding andsecuring value for shareholders as it engages with projects at all stages ofthe E&P value chain.
Comprehensive information on Northern and its oil and gas operations, including all press releases, annual reports and interim reports are available from Northern's website at www.northpet.com.
Consolidated Income StatementFor the year ended 31 December 2011
Year Year ended ended 31 31 December December 2011 2010 Notes €'000 €'000 Revenue 24,531 14,968 Production costs (5,298) (4,884) Depletion and amortisation - property, (7,116) 3,387)plant & equipment Cost of sales (12,414) 8,271) Gross profit 12,117 6,697 Pre-licence costs (521) (593) Administrative expenses - other (3,876)
(4,246)
Administrative expenses - share 136 (359)incentives Administrative expenses - total (3,740) (4,605) Profit on disposal of assets 3,108 - Profit from operations 10,964 1,499 Finance costs (1,033) (1,524) Finance income 579 17
Share of operating loss of joint (23)
(8)ventures & associates Profit / (loss) before tax 10,487 (16) Tax expense (4,256) (1,139) Profit / (loss) for the year 6,231 (1,155) Basic earnings per share on profit / 3 6.7 cents (1.3)(loss) for the year cents Diluted earnings per share on profit / 3 6.5 cents
(1.3)
(loss) for the year
cents
All results are from continuing activities and are attributable to equity shareholders of the parent.
Consolidated Statement of Comprehensive Income
For the year ended 31 December 2011
Year ended Year ended 31 December 31 December 2011 2010 €'000 €'000 Profit / (loss) for the year 6,231 (1,155)
Exchange differences on translation of 527
164foreign operations
Other comprehensive income for the year, 527
164net of income tax Total comprehensive profit / (loss) for 6,758 (991)the year
All amounts are attributable to equity shareholders of the parent.
Consolidated Statement of Financial Position
at 31 December 2011 2011 2010 Notes €'000 €'000 Assets Non-current assets Intangible assets 4 34,694 31,810 Property, plant and 5 47,513 58,123equipment Investments in joint 3,568 579ventures Investments in associates 15 15 Loans and other 6 - 129receivables 85,790 90,656 Current assets Inventories 70 124 Trade and other 6 10,608 8,668receivables Cash and cash equivalents 29,794 21,430 40,472 30,222 Total assets 126,262 120,878 Liabilities Current liabilities Trade and other payables 6,278 6,326 Corporation tax liability 2,891 - 9,169 6,326 Non-current liabilities Trade and other payables 24 30 Provisions 9,437 16,286 Deferred tax liabilities 14,352 12,865 23,813 29,181 Total liabilities 32,982 35,507 Net assets 93,280 85,371 Capital and reserves Share capital 7 5,855 5,768 Share premium 12,366 11,501 Merger reserve 10,289 10,289 Special reserve 28,583 28,428(Distributable) Special reserve - 155(Un-distributable) Share incentive plan 3,020 3,964reserve Foreign currency 182 (345)translation reserve Retained earnings 32,985 25,611 Total equity 93,280 85,371
All amounts are attributable to equity shareholders of the parent.
Consolidated Statement of Cash Flows
for the year ended 31 December 2011
Year ended Year ended 31 December 31 December 2011 2010 €'000 €'000
Cash flows from operating activities
Profit / (loss) before tax 10,487 (16) Depletion and amortisation 7,116 3,387
Depreciation - non-oil and gas property, 194
205plant and equipment
Profit on disposal of property, plant and (3,108)
-equipment
Foreign exchange (gain) / loss (244)
348 Finance income (335) (17) Finance charges 1,033 1,176 Share-based payments 199 799
Expenses settled by issue of shares 29
65
Share of operating loss in associate 23
8
Net cash inflow before movements in working 15,394 5,955capital
Decrease / (increase) in inventories 56
(26)
(Increase) / decrease in trade and (2,427) 8,247other receivables Increase / (decrease) in trade and 36 (2,539)other payables Net cash inflow from changes in working (2,335) 5,682capital Taxes refunded / (paid) 1,913 (2,857) Net cash inflow from operating 14,972 8,780activities
Cash flows from investing activities
Interest received 335 17 Interest paid (312) (6) Purchase of property, plant and (3,579) (9,526)equipment Expenditure on exploration and (2,191) (2,835)evaluation assets Purchase of other intangible assets (1,184)
(999)
Investment in joint venture company (3,012)
(328)
Sale of property, plant and equipment 2,154
-
Net cash outflow from investing (7,789) (13,677)activities
Cash flows from financing activities Issue of ordinary shares net of fees -
11,464
associated with placing Proceeds from the exercise of equity 923
270warrants Net cash inflow from financing 923 11,734activities Net increase in cash and cash 8,106 6,837equivalents Cash and cash equivalents at start of 21,430 15,002year Effect of exchange rate movements 258
(409)
Cash and cash equivalents at end of 29,794
21,430
year
There have been no significant non-cash transactions during either year.
Consolidated Statement of Changes in Equityfor the year ended 31 December 2010 Share Foreign Share incentive currency Share premium Merger Special plan translation Retained capital account reserve reserves reserve reserve earnings Total €'000 €'000 €'000 €'000 €'000 €'000 €'000 €'000 At 1 January 4,983 194 10,289 28,583 3,865 (509) 26,359 73,7642010 Total - - - - - 164 (1,155) (991)comprehensive loss for the year Issue of 715 11,437 - - - - - 12,152shares during the year - placing Costs and - (688) - - - - - (688)fees associated with share placing Issue of 70 558 - - (293) - - 335shares during the year - warrants and staff bonus Equity share - - - - (407) - 407 -warrants exercised Share-based - - - - 799 - - 799payments At 31 5,768 11,501 10,289 28,583 3,964 (345) 25,611 85,371December 2010 Total - - - - - 527 6,231 6,758comprehensive loss for the year Issue of 87 865 - - - - - 952shares during the year - warrants and staff bonus Equity share - - - - (1,143) - 1,143 -warrants exercised Share-based - - - - 199 - - 199payments At 31 5,855 12,366 10,289 28,583 3,020 182 32,985 93,280December 2011
All amounts are attributable to equity shareholders of the parent.
Notes to the Group Financial Statements
at 31 December 2011
1. BASIS OF PREPARATION
The financial information set out above does not constitute the Company'sstatutory accounts for the years ended 31 December 2011 or 2010 but is derivedfrom those accounts. Statutory accounts for 2010 have been delivered to theRegistrar of Companies, and those for 2011 will be delivered in due course. Theauditors have reported on those accounts; their reports were (i) unqualified,(ii) did not include a reference to any matters to which the auditors drewattention by way of emphasis without qualifying their report and (iii) did notcontain a statement under section 498 (2) or (3) of the Companies Act 2006 inrespect of the accounts for 2010 and 2011.
Going concern basis of preparation
After consideration of the guidance provided to company directors by theFinancial Reporting Council (FRC) in the document "Going Concern and LiquidityRisk: Guidance for Directors of UK Companies 2009" the Directors consider theuse of the going concern basis of accounting is appropriate for the Companybecause no material uncertainties related to events or conditions that may castsignificant doubt about the ability of the Company to continue as a goingconcern have been identified by the Directors.The Company has processes in place in order to ensure a reasonable cash balanceis maintained at all times. The Company continually monitors its cash balancesand these are reported to the Board weekly. The Board also reviews the forecastcash balance at the end of each of the next twelve months on a rolling basis.Before making a decision to add significant new commitments the Board considersthe risks to the delivery of these cash forecasts.The Group has created a substantial range of projects and opportunities many ofwhich are described in this Annual Report and Accounts. It is clear that theGroup can only fund a very small portion of these opportunities, and clearlynot the capital intensive offshore projects, from its current cash balances.Some projects will be funded from cash flow from production, whilst others willhave to wait on cash created by trading of assets and other projects willrequire farming out before they can progress. The Group has no external debtbut now has a production and reserve base to allow it to obtain debt and theBoard is likely to seek to use this capacity in the future to fund someprojects as it sees fit. In addition the Company has authority from itsshareholders to raise cash by the issue of new shares to fund its programmes.After making appropriate enquiries, the Directors have a reasonable expectationthat the Group has adequate resources to meet all of its commitments and tocontinue in operational existence for the foreseeable future. Accordingly theycontinue to adopt the going concern basis in preparing the Annual Report andAccounts. 2. ACCOUNTING POLICIES The financial information presented in this results announcement for the yearended 31 December 2011 has been prepared in accordance with InternationalAccounting Standards and International Financial Reporting Standards as adoptedby the European Union at 31 December 2011.
The principal accounting policies applied in the preparation of these consolidated group financial statements are set out in the 2010 Annual Report. These policies have been consistently applied to all the years presented, unless otherwise stated.
Changes in accounting policies
In the current year, the following new and revised standards and interpretations are effective and have been adopted but have had no effect on the amounts reported in these financial statements.
i. Standards affecting the reported results and financial position
IFRS 3 - Business Combinations
The IASB issued amendments to IFRS3 in May 2010. This was effective for annual periods beginning on or after 1 July 2010. The amendments are as follows:
* to limit the accounting policy choice to measure Non-Controlling Interests
(NCI) upon initial recognition either at fair value or at the NCI's
proportionate share of the acquiree's identifiable net assets to
instruments that give rise to a present ownership interest and entitle the
holder to a share of net assets in the event of liquidation; and
* to extend the scope of the guidance on how to apportion the market-based
measure of an acquirer's share-based payment awards that are issued in
exchange for acquiree awards between consideration
transferred and post-combination cost when an acquirer is obliged to replacethe acquiree's existing awards. IFRS 3 is amended so that the guidance for suchawards also applies to voluntarily replaced acquiree awards, and introducesattribution guidance for acquiree awards that are not replaced.
ii. Standards affecting presentation and disclosure
IFRS 7 - Financial Instruments: Disclosures
This standard was amended to:
* include a statement detailing that the interaction between qualitative and
quantitative disclosures, better enables users to evaluate an entity's
exposure to risks arising from financial statements; and
* require additional disclosures about the transfer of financial assets to
enable users to understand the possible effects of any risks that may
remain with the transferor.
These amendments were effective for annual periods beginning on or after 1 January 2011 and 1 July 2011 respectively.
IAS 1 - Presentation of Financial StatementsIn May 2010 an amendment was made to IAS 1 "Presentation of FinancialStatements" which stated that for each component of equity a reconciliationfrom opening to closing balances is required to be presented in the statementof changes in equity. That reconciliation is required to show separatelychanges arising from items recognised in profit or loss, in other comprehensiveincome, and from transactions with owners acting in their capacity as owners.This amendment was effective for annual periods beginning on or after 1 January2011.
IAS 24 - Related Party Disclosures
In July 2010 the IASB introduced changes to IAS 24, making an amendment to thedefinition of a related party. The amendments stated that two parties wererelated to each other whenever a person or a third party had joint control overone entity and that person (or a close member of that person's family) or athird party had joint control or significant influence over the other entity.This amendment was effective for annual periods beginning on or after 1 January2011.
3. BASIC EARNINGS / (LOSS) PER SHARE
Basic earnings or losses per share amounts are calculated by dividing theprofit or loss for the period attributable to ordinary equity holders of theparent by the weighted average number of ordinary shares outstanding during theyear.Diluted earnings per share amounts are calculated by dividing profit for theperiod attributable to ordinary equity holders of the parent by the weightedaverage number of ordinary shares outstanding during the year, plus theweighted average number of shares that would be issued on the conversion ofdilutive potential ordinary shares into ordinary shares. The calculation of thedilutive potential ordinary shares related to employee and director shareoption plans includes only those warrants with exercise prices below theaverage share trading price for each period. 2011 2010 €'000 €'000 Net profit / (loss) attributable to equity 6,231
(1,155)
holders used in basic calculation Net profit / (loss) attributable to equity 6,231
(1,155)
holders used in dilutive calculation
Number Number `000 `000 Basic weighted average number 93,013 86,094of shares Dilutive potential of ordinary shares: Warrants exercisable under 2,227 -Company schemes Diluted weighted average 95,240 86,094number of shares
The calculation of the diluted EPS assumes all criteria giving rise to the dilution of the EPS are achieved.
4. INTANGIBLE ASSETS
a. Exploration and Evaluation Assets
Intangible assets consist of the Group's exploration projects which are pendingdetermination of technical feasibility and commercial viability of extracting amineral resource. United Italy Netherlands Other EU Total Kingdom €'000 €'000 €'000 €'000 €'000 Cost: At 1 January 2011 5,335 10,218 15,236 191 30,980 Additions 214 1,012 750 5 1,981 Transfers (419) - - - (419) Exchange movement 140 - - (1) 139 At 31 December 2011 5,270 11,230 15,986 195 32,681 Exploration expenditure written off: At 1 January 2011 42 - 99 28 169 Exchange movement 1 - - - 1 At 31 December 2011 43 - 99 28 170 Net book value: At 31 December 2011 5,227 11,230 15,887 167 32,511 b. IT systems Computer software €'000 Cost: At 1 January 2011 999 Additions 1,184 At 31 December 2011 2,183 Depreciation: At 1 January 2011 - Charge for the year - At 31 December 2011 - Net book value: At 31 December 2011 2,183
5. PROPERTY, PLANT AND EQUIPMENT
a. Oil and Gas Assets Netherlands Netherlands UK - UK - Italy Total -Developed -Undeveloped -Undeveloped Developed Undeveloped €'000 €'000 €'000 €'000 €'000 €'000 Cost: At 1 January 41,583 7,421 781 1,839 16,610 68,2342011 Additions 909 773 49 995 696 3,422 Transfers - - - 419 - 419 Adjustments (7,362) - - - - (7,362) Exchange - - 19 66 - 85movement At 31 December 2011 35,130 8,194 849 3,319 17,306 64,798 Depletion and amortisation: At 1 January 9,931 - 526 - - 10,4572011 Charge for 7,039 - 77 - - 7,116the year Exchange movement - - 19 - - 19 At 31 December 16,970 - 622 - - 17,5922011 Net book value: At 31 December 2011 18,160 8,194 227 3,319 17,306 47,206 b. Non-Oil and Gas Assets Leasehold Computer and Motor Total improvements office equipment vehicles €'000 €'000 €'000 €'000 Cost: At 1 January 2011 303 748 36 1,087 Additions - 157 - 157 Disposals - (7) - (7) At 31 December 2011 303 898 36 1,237 Depreciation: At 1 January 2011 254 484 3 741 Charge for the year 48 137 9 194 Disposals - (5) - (5) At 31 December 2011 302 616 12 930 Net book value: At 31 December 2011 1 282 24 307
6. TRADE AND OTHER RECEIVABLES
2011 2010 €'000 €'000 Non-current assets Loans - 129 - 129 Current assets Trade receivables 3,711 1,833 Other receivables 1,157 95 Loans 154 - Corporation tax 628 2,540 VAT recoverable 189 347 Prepayments and accrued income 4,769 3,853 Total trade and other 10,608 8,797receivables 7. SHARE CAPITAL 2011 2010 €'000 €'000 Authorised: 311,316,404 (2010:311,316,404) ordinary shares of 5p 19,648 19,648each
Allotted, issued, called up and fully paid: 93,518,160(2010 :91,987,445) ordinary shares of 5p 5,855 5,768each
The ordinary shares above all hold the same voting rights and there are no restrictions on the distribution of dividends.
8. APPROVAL BY DIRECTORS
The results for the year ended 31 December 2011 were approved by the Directors on 7 June 2012.
9. ANNUAL REPORT AND ACCOUNTS
The Annual Report and Accounts will be made available on 8 June 2012 inelectronic format on the Company's website, www.northpet.com, and will shortlybe posted to shareholders. Following posting, the Annual Report will also beavailable free of charge for a period of not less than one month by applicationto the Company Secretary at the Company's registered office being Martin House,5 Martin Lane, London, EC4R 0DP.
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