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REGISTERED NUMBER:
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VALHALLA OIL AND GAS (PORCUPINE) 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 (PORCUPINE) 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 (PORCUPINE) LIMITED (REGISTERED NUMBER: 07342946) |
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CONTENTS OF THE FINANCIAL STATEMENTS |
for the year ended 31 December 2017 |
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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 (PORCUPINE) 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 (PORCUPINE) LIMITED (REGISTERED NUMBER: 07342946) |
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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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CREDITORS |
Amounts falling due within one year | 5 |
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NET CURRENT LIABILITIES | ( |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
( |
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( |
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CAPITAL AND RESERVES |
Called up share capital |
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Retained earnings | ( |
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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 (PORCUPINE) LIMITED (REGISTERED NUMBER: 07342946) |
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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 (Porcupine) Limited is a
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Wales. The 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 £1,600 and reported net liabilities of |
£797,395 at that date. 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, Valhalla Oil and Gas AS, 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 31 July 2019 to enable the company to meet |
its liabilities as and when they fall due. In particular Valhalla Oil and Gas AS has indicated that it will release |
under deed the £794,195 due to it from the company prior to the completion of the transfer of its interest in the |
FEL 01/04 licence. Such transfer would also reduce the future requirement for funds from the parent company. |
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 (PORCUPINE) LIMITED (REGISTERED NUMBER: 07342946) |
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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. | AUDITORS' REMUNERATION |
2017 | 2016 |
£ | £ |
Fees payable to the company's auditors for the audit of the company's
financial statements |
800 |
800 |
Auditors' remuneration for non audit work |
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4. | INTANGIBLE FIXED ASSETS |
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The company has exploration and evaluation assets relating to the costs capitalised in respect of the share held in |
an Offshore Irish licence in the Porcupine Basin (FEL 1/04). No amortisation has been charged as the licence is |
in the exploration phase. |
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On 24th July 2017 it was agreed that the company would assign all of its 38.5% interest in FEL 01/04 to Island |
Assets Porcupine Limited subject to the approval of the Petroleum Affairs Division of the Department of |
Communications, Climate Action & Environment ('PAD'). The carrying value of the licence has therefore been |
treated as fully impaired reflecting an estimate of the fair value of consideration to be received but the disposal |
has not yet been recognised pending such PAD approval which is required to complete the transaction. |
Also on 24th July 2017, it was agreed that Valhalla Oil and Gas Limited (a fellow subsidiary undertaking) would |
assign all of its 20% interest in the Celtic Sea licence SEL 4/05 and all of its 25% interest in Celtic Sea licence |
SEL 5/05 to the company. These transactions are also subject to the approval of the PAD and have therefore not |
been recognised in the accounts for the year to 31 December 2017. |
VALHALLA OIL AND GAS (PORCUPINE) LIMITED (REGISTERED NUMBER: 07342946) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2017 |
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5. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2017 | 2016 |
£ | £ |
Amounts owed to group undertakings |
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Accruals and deferred income |
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6. | 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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7. | RELATED PARTY DISCLOSURES |
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At 31 December 2017 the company owed its parent company Valhalla Oil and Gas AS £794,195 |
(2016:£794,195) and fellow subsidiary Valhalla Oil and Gas Limited £1,600. |
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As detailed in note 4, the company has agreed to acquire the interests in licences held by fellow subsidiary |
Valhalla Oil and Gas Limited for a consideration of £1 representing the estimated fair value of the assets |
acquired. |
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8. | ULTIMATE CONTROLLING PARTY |
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The ultimate parent company is considered to be Valhalla Oil and Gas AS, a company incorporated in Norway. |
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On 24th July 2017 Valhalla Oil and Gas AS entered into an agreement to sell all of the shares in the company to |
St Stephen's Energy Limited, a company incorporated in Ireland. Completion of this transaction is subject to and |
conditional upon the company having procured and completed the transfer of the Celtic Sea licences referred to |
in note 4 from Valhalla Oil and Gas Limited, transactions which are awaiting the PAD approval. |