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Unaudited Financial Statements |
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for the Year Ended 31 December 2020 |
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for |
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Fishermen's Petroleum Company Limited |
REGISTERED NUMBER:
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Unaudited Financial Statements |
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for the Year Ended 31 December 2020 |
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for |
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Fishermen's Petroleum Company Limited |
Fishermen's Petroleum Company Limited (Registered number: SC070886) |
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Contents of the Financial Statements |
for the Year Ended 31 December 2020 |
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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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Fishermen's Petroleum Company Limited |
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Company Information |
for the Year Ended 31 December 2020 |
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DIRECTORS: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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ACCOUNTANTS: |
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Accountants |
2 Cross Street |
Fraserburgh |
Aberdeenshire |
AB43 9EQ |
Fishermen's Petroleum Company Limited (Registered number: SC070886) |
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Balance Sheet |
31 December 2020 |
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31.12.20 | 31.12.19 |
Notes | $ | $ | $ | $ |
FIXED ASSETS |
Tangible assets | 4 |
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Investments | 5 |
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CURRENT ASSETS |
Debtors | 6 |
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Cash at bank |
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CREDITORS |
Amounts falling due within one year | 7 |
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NET CURRENT ASSETS |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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CAPITAL AND RESERVES |
Called up share capital | 8 |
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Retained earnings | 9 |
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SHAREHOLDERS' FUNDS |
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The directors acknowledge their responsibilities for: |
(a) | ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and |
(b) | preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company. |
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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 Board of Directors and authorised for issue on
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Fishermen's Petroleum Company Limited (Registered number: SC070886) |
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Notes to the Financial Statements |
for the Year Ended 31 December 2020 |
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1. | STATUTORY INFORMATION |
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Fishermen's Petroleum Company Limited is a
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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The financial statements have been prepared in US Dollars ($). |
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Going concern |
The directors have considered the company forecasts and projections and have taken account of present and likely future trading performance and have taken the view that it is appropriate to continue to adopt the going concern basis in preparing the financial statements. |
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Turnover |
Turnover represents amounts receivable from the company's oil and gas interests in the United States of America, shown gross of relevant production taxes where applicable. Revenue is recognised to the extent that it is probable that economic benefit will flow to the company and when its value can be measured with a sufficient degree of certainty and reliability. All income is recognised in the accounting period to which it relates. |
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Tangible fixed assets |
The capitalised costs of wells in production are amortised field by field on a unit of production basis. Amortisation is calculated by reference to the proportion that production for the period bears to the total estimated commercial reserves remaining. Carrying values are assessed annually by reference to estimated remaining commercial reserves and adjusted accordingly. The net value reported is based on initial cost less annual amortisation and net accumulated impairment losses. |
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Capitalised costs of other assets are depreciated on a straight line basis over their estimated economic lives as follows: |
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Office equipment: 25% straight line |
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All office equipment was fully written down in previous years so there was no depreciation charge in the year under report. |
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Fixed asset investments |
Fixed asset investments are stated at estimated valuation based on engineering reports prepared by suitably qualified parties. This policy became effective from 1 January 2016. |
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Taxation |
Taxation for the year comprises current taxation on calculated taxable profits. 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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Fishermen's Petroleum Company Limited (Registered number: SC070886) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 December 2020 |
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2. | ACCOUNTING POLICIES - continued |
Taxation & deferred tax |
Deferred tax is calculated 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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The value of the deferred tax asset is noted in the financial statements but not recognised. |
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Foreign currencies |
The functional currency of the company is US Dollars. This reflects the fact that the US Dollar is the currency of the primary economic environment in which the company operates and generates net cash flows. |
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Transactions in other currencies are recorded using the average rate of exchange over the course of the financial year. Monetary assets and liabilities denominated in other currencies are translated using the rate of exchange ruling at the balance sheet date and the gains or losses on translation are included in the profit and loss account. The rate prevailing as at 31 December 2020 in relation to UK sterling was 1.2767 (2019: 1.2912). |
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Exploration and development expenditure |
Oil and gas activities are accounted for in accordance with the Statement of Recommended Practice 'Accounting for Oil and Gas Exploration, Development, Production and Decommissioning Activities' issued by the Oil Industry Accounting Committee dated 7 June 2001. |
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The company adopts the successful efforts basis of accounting in respect of the costs of exploration and development of oil and gas reserves. |
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Under this method the costs of successful exploration drilling including development costs and costs to purchase, lease or otherwise acquire an oil and gas property are capitalised and amortised by a depletion charge to revenue, based on the unit of production method whereby the amortisation is related to the depletion of the reserves occurring in the accounting period. Changes in estimates of reserves effecting unit of production calculations for amortisation are accounted for prospectively over the estimated remaining commercial reserves. |
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The costs of geological and geophysical work, of contributions to the operator's overheads where the company is not the operator, and of successful exploration wells, are generally written off to revenue. |
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Significant estimation techniques |
Production forecasts and reserves are estimated using standard techniques of petroleum engineering. These techniques combine geophysical and geological knowledge with detailed information concerning reservoir porosity and permeability distributions and fluid characteristics with estimates of recovery efficiencies from studies or field analogues. There is uncertainty in the measurement and interpretation of the basic data. |
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Changes in estimates affecting unit of production calculations for depreciation are accounted for prospectively over the estimated remaining commercial reserves of each field. |
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Decommissioning costs |
Provision is made for decommissioning costs to the extent that the company is required to carry out such activities under its contractual commitments. |
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3. | EMPLOYEES AND DIRECTORS |
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The average number of employees during the year was
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Fishermen's Petroleum Company Limited (Registered number: SC070886) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 December 2020 |
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4. | TANGIBLE FIXED ASSETS |
Wells in | Office |
production | equipment | Totals |
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COST |
At 1 January 2020 |
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Reclassification/transfer |
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At 31 December 2020 |
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DEPRECIATION |
At 1 January 2020 |
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Charge for year |
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Impairments |
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Reclassification/transfer |
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At 31 December 2020 |
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NET BOOK VALUE |
At 31 December 2020 |
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At 31 December 2019 |
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Fishermen's Petroleum Company Limited (Registered number: SC070886) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 December 2020 |
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4. | TANGIBLE FIXED ASSETS - continued |
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Impairment charges |
Impairment charges are calculated based on the estimated remaining commercial value of the wells and as such the valuations can vary from year to year dependent upon the level of estimated remaining oil and gas reserves and the prevailing market price of these resources. |
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Wells in production consist of the following interests in the USA: |
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Justin (US$Nil) |
Following due consideration of all relevant factors, the directors took the view in the previous financial year to reduce the value of the interest in the Justin wells to nil). There was insufficient evidence during the 2020 financial year to suggest that this view should be amended and the asset remained fully written down. |
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CMO ($24,166) |
The Company holds a 2.5% working interest within a block in Logan County, Oklahoma. Based on an Engineering Report prepared by the company's US agent and overviewed by the Board, the value of the wells, using a discount rate of 9%, was estimated at US$24,166 as at 31 December 2020 (2019: $21,875). |
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Dickason 1-7H ($46,873) |
This well was drilled in 2014 with first revenue dispersed in 2015. The well was sold on 1st January 2021 and the valuation as at 31st December 2020 has been based on the actual sales value (net of costs) of US$46,873 (2019: $52,995). |
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Blevins 1-H ($191,791) |
The well was sold on 1st January 2021 and the valuation as at 31st December 2020 has been based on the actual sales value (net of costs) of US$191,791 (2019: $216,838). |
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Cimarron (US$288,425) |
The Company holds working interests of between 2.8% and 10.7% in four producing wells in Logan County, Oklahoma. Based on an Engineering Report prepared by the company's US agent and overviewed by the Board, the value of the operational wells was estimated using a 9% discount factor to be US$288,425 as at 31 December 2020 (2019: $283,695). |
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Other interests (US$106,121) |
Various other working, over-riding royalty and mineral interests and development prospect leasehold positions were valued at $106,121 (2019: $87,919). |
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Net commercial oil & gas reserve quantities: |
Net commercial oil and gas reserve quantities for the year ended 31 December 2020 in respect of Cimarron, CMO, Dickason, Justin, Kleckner and O'Neall. |
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Oil -Bbl | Gas - McF |
Net Commercial Reserves | 2020 | 2019 | 2020 | 2019 |
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Beginning of year - commercial developed | 14,572 | 20,092 | 226,833 | 1,842,254 |
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Revision of previous estimates | 3,287 | -6,559 | -6,033 | -1,458,713 |
Production | -3,001 | -1,754 | -47,610 | -222,080 |
New wells/extensions | - | 2,793 | - | 65,372 |
Disposals | -5,510 | - | -74,940 | - |
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Net commercial reserves at end of year | 9,348 | 14,572 | 98,250 | 226,833 |
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Fishermen's Petroleum Company Limited (Registered number: SC070886) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 December 2020 |
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4. | TANGIBLE FIXED ASSETS - continued |
Net Commercial Reserves |
The disposals from reserves relate to the Dickason/Blevins wells which were sold on 1st January 2021 and therefore not included as part of future reserves. The figures do not include any reserves pertaining to the Justin wells as these wells have been written down to a zero valuation in these financial statements. Whilst reserves remain within the Justin wells, production is currently uneconomical and will only be considered should there be a significant favourable change in the US gas price. |
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5. | FIXED ASSET INVESTMENTS |
Other |
investments |
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COST OR VALUATION |
At 1 January 2020 |
and 31 December 2020 |
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PROVISIONS |
At 1 January 2020 | 612,589 |
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Revaluation adjustments | (38,951 | ) |
At 31 December 2020 | 573,638 |
NET BOOK VALUE |
At 31 December 2020 |
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At 31 December 2019 |
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31.12.18 |
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Net value of investment brought forward at 1st January 2016 | 30,842 |
Revaluation 2016 | 418,869 |
Revaluation 2017 | -102,934 |
Revaluation 2018 | 75,781 |
Revaluation 2019 | 29,135 |
Revaluation 2020 | 38,951 |
Closing value as at 31st December 2020 | 490,644 |
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The value of Fixed Asset Investments comprises an over-riding royalty interest in producing oil and gas wells at Green Canyon and Ewing Bank in the Gulf of Mexico, offshore Louisiana. The valuation of the investment was adversely affected in 2019 due to the temporary closure of wells but during the 2020 financial year, new wells were added and overall production increased. Following due consideration by the directors, based on information provided by the operator, the valuation was increased to $490,644 as at 31st December 2020. This value was primarily based on the income level generated from the investment during the latter part of 2020 and which is expected to continue throughout 2021. |
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6. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.20 | 31.12.19 |
$ | $ |
Trade debtors |
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Other debtors |
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The balance of 'Other debtors' in the previous financial year included the sum of $24,879 of advance paid US Federal Tax which was refunded during the 2020 financial year. |
Fishermen's Petroleum Company Limited (Registered number: SC070886) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 December 2020 |
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7. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.20 | 31.12.19 |
$ | $ |
Other creditors |
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8. | CALLED UP SHARE CAPITAL |
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Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.12.20 | 31.12.19 |
value: | $ | $ |
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Ordinary | £1 | 1,071,465 | 1,071,465 |
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9. | RESERVES |
Retained |
earnings |
$ |
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At 1 January 2020 |
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Profit for the year |
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At 31 December 2020 |
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Included within the retained earnings is the sum of $459,802 (2019: $420,851) being the unrealised accumulated revaluation gain in respect of the Green Canyon ORI Fixed Asset Investment. |
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10. | RELATED PARTY DISCLOSURES |
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Mr McColl is a director of McColl and Associates Limited, which provides company secretarial services on a fee basis to the Company. In 2020 these fees amounted to US$15,320 (2019: US$15,320). |
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11. | POST BALANCE SHEET EVENTS |
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The Dickason 1-7H and the Blevins 1-H wells were sold on 1st January 2021 for $46,873 and $191,791 respectively (a combined value of $250,000 less costs). These selling prices have been used as the basis of the valuation of these wells in these financial statements. |
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12. | PROVISIONS FOR LIABILITIES |
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Deferred tax |
A deferred tax asset of US$652k (2019: $406K) in relation to differences between accumulated depreciation and amortisation and capital allowances has not been recognised. |
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Decommissioning costs |
The directors have reviewed the company's obligations in respect of decommissioning and have concluded that no provision is necessary as the directors estimate that there is no liability in respect of the Company's interests. |