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REGISTERED NUMBER:
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VALHALLA OIL AND GAS LIMITED |
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FINANCIAL STATEMENTS |
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FOR THE YEAR ENDED 31 DECEMBER 2017 |
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REGISTERED NUMBER:
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VALHALLA OIL AND GAS LIMITED |
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FINANCIAL STATEMENTS |
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FOR THE YEAR ENDED 31 DECEMBER 2017 |
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VALHALLA OIL AND GAS LIMITED (REGISTERED NUMBER: 05498467) |
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CONTENTS OF THE FINANCIAL STATEMENTS |
for the year ended 31 December 2017 |
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Page |
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Company Information | 1 |
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Balance Sheet | 2 |
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Notes to the Financial Statements | 3 |
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VALHALLA OIL AND GAS LIMITED |
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COMPANY INFORMATION |
for the year ended 31 December 2017 |
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DIRECTOR: |
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SECRETARY: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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AUDITORS: |
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Chartered Accountants |
and Statutory Auditors |
Station House |
Connaught Road |
Brookwood |
Woking |
Surrey |
GU24 0ER |
VALHALLA OIL AND GAS LIMITED (REGISTERED NUMBER: 05498467) |
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BALANCE SHEET |
31 December 2017 |
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2017 | 2016 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 4 |
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CURRENT ASSETS |
Debtors | 5 |
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Cash at bank |
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CREDITORS |
Amounts falling due within one year | 6 |
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NET CURRENT LIABILITIES | ( |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
( |
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( |
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PROVISIONS FOR LIABILITIES | 7 |
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NET LIABILITIES | ( |
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CAPITAL AND RESERVES |
Called up share capital |
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Retained earnings |
( |
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( |
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SHAREHOLDERS' FUNDS | ( |
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In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered. |
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The financial statements were approved by the director on
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VALHALLA OIL AND GAS LIMITED (REGISTERED NUMBER: 05498467) |
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NOTES TO THE FINANCIAL STATEMENTS |
for the year ended 31 December 2017 |
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1. | STATUTORY INFORMATION |
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Valhalla Oil and Gas Limited is a
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company's registered number and registered office address can be found on the Company Information page. |
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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The director has prepared the financial statements on the going concern basis which assumes that the company |
will continue in operational existence for the foreseeable future and be able to meet its liabilities as they fall due. |
There are uncertainties that the director has had to consider which may cast doubt on the company's ability to |
continue as a going concern. |
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For the year ended 31 December 2017, the company incurred a loss of £69,087, and reported net current |
liabilities of £1,417,214 at that date although this includes £1,404,392 due to its parent company, Valhalla Oil |
and Gas AS. The director has prepared cash flow forecasts to the end of 2018 which show that the company is |
dependent on the support of its parent company in order to be able to meet its obligations for the foreseeable |
future. The director has received assurances from the parent company that it aims to provide the necessary |
financial support for the period until 31st July 2019 to enable the company to meet its liabilities as and when they |
fall due. Accordingly the director has concluded that it is appropriate that the financial statements continue to be |
prepared on the going concern basis. |
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Oil and gas assets |
The company uses the successful efforts method of accounting for oil and gas operations, under which all license |
acquisitions, exploration and evaluation costs are capitalised within intangible assets and classified as |
exploration and evaluation costs. Directly attributable administration costs are capitalised where they relate to |
specific exploration activities. Costs incurred prior to obtaining the legal rights to explore an area are expensed |
to the Income Statement. |
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If commercial reserves are not discovered or licenses are relinquished, these exploration and evaluation assets |
are written off to the income statement. Amounts carried on the balance sheet are at each balance sheet date |
assessed for impairment. |
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If a project is sanctioned for development, the carrying values of the exploration and evaluation costs are |
transferred to tangible assets after assessment for impairment. These costs are amortised from the |
commencement of production on a unit of production basis. |
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Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to |
the extent that it relates to items recognised in other comprehensive income or directly in equity. |
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Current or deferred taxation assets and liabilities are not discounted. |
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Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or |
substantively enacted by the balance sheet date. |
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VALHALLA OIL AND GAS LIMITED (REGISTERED NUMBER: 05498467) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2017 |
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2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance |
sheet date. |
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Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from |
those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that |
have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the |
timing difference. |
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Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they |
will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
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Revenue recognition |
Oil and gas revenue is recognised to the extent that it is probable that the economic benefits will flow to the |
company and the revenues can be reliably measured. To date, the company has no revenue from oil and gas |
sales. |
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Joint ventures |
The company contracts with others through unincorporated joint ventures to pursue its operations. All such |
arrangements are jointly controlled operations and the company accounts for its share of income, expenditure, |
assets and liabilities relating to that arrangement. |
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Impairment |
The company's oil and gas assets are analysed into cash generating units 'CGU' for impairment review purposes, |
with exploration and evaluation ('E&E') asset impairment being performed at a grouped CGU level. The current |
CGU consists of the company's whole E&E portfolio. E&E assets are reviewed for impairment when |
circumstances arise which indicate that the carrying value of an E&E asset exceeds the recoverable amount. |
When reviewing E&E assets for impairment, the combined carrying value of the grouped CGU is compared with |
the grouped CGU's recoverable amount. The recoverable amount of a grouped CGU is determined at the higher |
of its fair value less costs to sell and value in use. Impairment losses resulting from an impairment review are |
written off to the income statement. |
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3. | EMPLOYEES AND DIRECTORS |
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The average number of employees during the year was NIL (2016 - NIL). |
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4. | INTANGIBLE FIXED ASSETS |
Exploration |
and |
Evaluation |
£ |
COST |
At 1 January 2017 |
and 31 December 2017 |
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NET BOOK VALUE |
At 31 December 2017 |
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At 31 December 2016 |
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VALHALLA OIL AND GAS LIMITED (REGISTERED NUMBER: 05498467) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2017 |
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4. | INTANGIBLE FIXED ASSETS - continued |
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The net book value at 31 December 2017 relates to licences for which applications for lease undertakings have |
been made by the operator to the Petroleum Affairs Division of the Department of Communications, |
Climate Action and Environment ('PAD'). |
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Prior to 2016 the level of impairment provision included in the valuation of the assets was based on the |
management of the Company's judgment of the estimated 'value in use' of the licences. Due to ongoing |
negotiations as to the future prospects of these licences, at the 2016 year end this was no longer considered to be |
an appropriate basis for the valuation of the licences as it now seems unlikely that the licences will be taken |
forward to the development stage within this company. The licences were written down to their estimated |
'recoverable amount' reflecting the estimated level of consideration which could be received on transfer of these |
licences to a third party. |
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On 24th July 2017 the company entered into an agreement to transfer these licences to a fellow subsidiary |
undertaking. The transfer is not yet complete as approval has not been given by the PAD. |
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5. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2017 | 2016 |
£ | £ |
Amounts owed by group undertakings |
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VAT |
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6. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2017 | 2016 |
£ | £ |
Trade creditors |
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Amounts owed to group undertakings |
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VAT | 2 | - |
Accrued expenses |
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7. | PROVISIONS FOR LIABILITIES |
2017 | 2016 |
£ | £ |
Other provisions |
Provisions | 348,870 | 348,870 |
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Other |
provisions |
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Balance at 1 January 2017 |
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Balance at 31 December 2017 |
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VALHALLA OIL AND GAS LIMITED (REGISTERED NUMBER: 05498467) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2017 |
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7. | PROVISIONS FOR LIABILITIES - continued |
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The provision relates to the company's obligation for the decommissioning costs associated with the |
abandonment of the Schull and Old Head of Kinsale wells. |
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The fair value of the provision has been calculated each year end based on an independent third party report |
which was prepared for the operator in 2011. |
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On completion of the transaction agreed on 24th July 2017 to transfer the licences to a fellow subsidiary |
undertaking, the associated decommissioning obligations will also be transferred as part of the agreement. The |
value attributed to the licences to be transferred is therefore linked to the associated level of decommissioning |
provision which has been set for the purposes of these accounts at the 24th July 2017 figure. Accordingly no |
fair value adjustments have been made in the current year. |
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Should the agreed transaction not receive the required approval of the PAD for completion then the value of the |
decommissioning provision would need to be reassessed. |
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8. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
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The Report of the Auditors was unqualified. |
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for and on behalf of
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9. | RELATED PARTY DISCLOSURES |
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At the year end, the company owed its parent company Valhalla Oil and Gas AS £1,404,392 (2016: £1,337,419) |
in respect of funding for the company's operations. A sister company, Valhalla Oil and Gas (Porcupine) Ltd. |
owed the company £1,600 (2016; £1,600). |
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As detailed in note 4, the company has agreed to transfer the interests in the licences held to fellow subsidiary |
Valhalla Oil and Gas (Porcupine) Limited for consideration of £1 representing the estimated fair value of the |
assets acquired. |
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Legal fees of £47,465 (2016: £23,605) were paid during the period to Peachey & Co. LLP, including £2,300 |
(2016: £6,550) for Mr Ashton's services as a director. Mr Ashton is a member of Peachey & Co. LLP. |
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10. | ULTIMATE CONTROLLING PARTY |
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The immediate and ultimate parent company is considered to be Valhalla Oil and Gas AS, a company |
incorporated in Norway. |