Final Results

RNS Number : 7214C

Independent Resources PLC

30 June 2016

 

Independent Resources plc
("Independent Resources" or the "Company" or the "Group")
Audited results for the year ended 31 December 2015
Highlights
• First investment made in Egypt through the acquisition of a 25% effective working interest in East Ghazalat
• Completion of rationalisation of Italian cost base
• Farm-in discussions continue for Ksar Hadada and a one year licence extension was awarded post year end
• Equity fundraising of £1.51 million of new capital was completed during the year with further capital of £0.30 million
raised since year end
• Continued business development activities focused on producing assets in Egypt
• Continued uncertainty over Rivara gas storage project and timing and impact of legal proceedings
• Conservative accounting approach adopted in relation to joint venture investment in East Ghazalat pending resolution of disputes with licence operator
Key financials
• Adjusted loss for the year of £1.24 million (2014: £1.57 million)
• Operating loss on continuing activities of £1.81 million (2014: £1.57 million)
• Loss from discontinued Italian operations of £0.10 million (2014: £ 4.91 million)
• Loss for the year of £1.91 million (2014: £6.48 million)
• Cash at year end of £0.10 million (2014: £0.43 million)
• Cash at 28 June 2016 of £0.06 million  (unaudited)
Chairman's statement
Introduction
Against the backdrop of widespread industry turmoil caused by the precipitous decline in oil prices during 2015 and
2016 we continued our efforts to refocus Independent Resources as an E&P company focused on North Africa.  The
crude oil and natural gas markets are in a state of flux and elevated 2014 price expectations are now being
lowered to what is likely to be a more modest level settling somewhere near today's prices.  Low cost assets with
opportunities to increase reserves and production levels are still to be found, mainly onshore in areas where there
is existing infrastructure and markets. We remain clear that Egypt and Tunisia meet those requirements.
Last October we made our first investment in Egypt through the acquisition of a 25 per cent working interest in
East Ghazalat as part of a joint venture transaction executed in conjunction with Nostra Terra Oil and Gas
Company plc.  We recognise that this is a relatively small acquisition and it was and is intended to be the first of
several more significant acquisitions.
After the year end, we have now received approval from the Egyptian General Petroleum Company (EGPC) as a
new entrant in Egypt.  This was a precondition to allow us to follow through on our commercial registration and
receive the revenues due to us since completion. It also facilitates our making further investments in a well-
established hydrocarbon province where interests in producing and near production assets remain available for
acquisition and where our management team has extensive experience.
In January of this year we updated the market on the difficulties with North Petroleum International Company SA
(North), the Chinese Government owned operator of East Ghazalat as we strive to restructure the cost base of the
licence.  We continue to work to resolve these differences while protecting the interests of our shareholders.
In Tunisia we continue to seek a farm-in partner for our licence interest in Ksar Hadada.  We have carried out
significant additional technical analysis of the prospectivity of the licence during the year and since year-end we
applied for and have obtained an additional one-year extension until August 2017 from the Tunisian Government to
complete the work programme.
At the time of our last full year results announcement, we explained that we were in the process of fundamentally
restructuring our Italian cost base in the light of the end of our coal bed methane related projects (Ribolla and
Casoni) and uncertainty over the timing of legal appeals in relation to the Rivara Gas Storage project.  During 2015
we exited lease arrangements on our office in Rome and reached agreement with our Italian employees to bring an
end to their contract of employment.  We appreciate their professional approach to these difficult decisions and
wish them well for the future.  We continue to maintain a very modest administrative presence in Italy but one
which is appropriate given the status of our Italian operations.
We are still trying to ensure that the administrative tribunal hears our court case in relation to Rivara as soon as possible.
Since year-end we have taken extensive steps to reduce our creditor balances and reduce our ongoing cash burn
rates.  This has only been possible with the support of key suppliers and board members and I wish to thank them
for their unfaltering support.
East Ghazalat
In October 2015 in conjunction with Nostra Terra we acquired Trans Globe Energy Corporation's 50% interest in the
East Ghazalat licence located in the Western Desert of Egypt. This is intended to be an initial entry vehicle in
Egypt which will then allow the Company to follow with further more material and interesting acquisitions to build a
cash flow generative business based on solid revenues with compelling investment opportunities.
At the time of acquisition, East Ghazalat was generating approximately 880 barrels per day of gross production in
which we have a 25 per cent interest.  The transaction was structured as a corporate acquisition of a single asset
subsidiary of TransGlobe Energy Corporation Inc. for a total consideration of $3.5 million of which $2.5 million was
deferred as a vendor loan note, payable in September 2017. The transaction was executed through a joint venture
company in conjunction with Nostra Terra Oil and Gas.
Our comprehensive diligence on this asset made us aware that significant restructuring of the licence cost base
was necessary to ensure that East Ghazalat would contribute to group cash flows in a low oil price environment
but that holding a combined 50 per cent interest in the licence through the joint-venture with Nostra Terra would
ensure that we are in a position to ensure that the management of the licences is in accordance with our best
interests and plans.  We therefore envisaged that there would be difficult discussions with the operator to ensure
that activities on East Ghazalat would be prudently managed and ensure costs are appropriate for the scale of
activity on the licence.
Post year end as disclosed in our regulatory announcements of 25th January 2016 we received notice of default in
relation to cash calls raised by the operator. We believe those cash calls to be fundamentally erroneous and
unjustifiable in the context of the licence, in comparison with other interests North has in Egypt and the business
environment and we have therefore declined to pay them.
We have formally rebutted the claims from North for payment and in relation to the alleged default and continue to
engage with EGPC to promote our case in relation to East Ghazalat.
North's continuing and consistent refusal to furnish financial information to allow a proper understanding of past
costs has contributed substantially to the current breakdown in relations. The patchwork of billing estimates
provided to date have been issued outwith the procedures in the Joint Operating Agreement, and in our view are
unjustifiable and fundamentally unreasonable given the level of production, drilling and exploration activity on East
Ghazalat. We have been unable to agree a budget with North for 2016 which has constrained activity, although
given low oil prices we believe this is actually an appropriate posture.
In light of the lack of any access to robust financial information we have agreed with our auditors that for the 2015
year end it is prudent that we account for our investment in the East Ghazalat licence at historical cost and we will
not consolidate any share of profits or losses for the period since 1 July 2015, the effective date of the transaction
in respect of that investment.
The loan note principal payable to Trans Globe is determined only on formal agreement of the final working capital
adjustment as provided in the sale and purchase agreement. The loan note principal is varied with that working
capital adjustment.  We continue to work with Trans Globe to determine the final working capital amount and thus
the loan note principal.  At 31 December 2015 we have provided for the loan note principal based on Trans Globe's
initial assessment of working capital at completion and provided for accrued interest on this estimate although we
have not yet made the interest payment that could have been due at March 31, 2016 since the loan note amount is
not finalised.
There are also unrecovered amounts due to our joint venture with Nostra Terra Oil and Gas plc from North in
relation to outstanding historical joint operating agreement audit claims and we have served notice on them of our
intention to conduct an audit of the East Ghazalat licence costs for 2013 and 2014.  We also reserve the right to
conduct an audit in relation to 2015. We have not reflected any estimate of the amounts that could be recovered
by the joint venture in respect of audits at this year-end.
The directors remain confident that our joint venture interest in East Ghazalat will create value for shareholders and
therefore that no impairment is necessary in respect of the carrying value of the group's joint-venture investment in
East Ghazalat at 31 December 2015.
We appreciate in light of the matter above our auditors have qualified their opinion on the financial statements due to the limitation of scope.
Ksar Hadada
During 2015, we continued to seek a farm-in partner - there can be no doubt that the difficulty of achieving this
was increased by the drop in oil prices and increased concerns over the security situation in Tunisia after terrorist
events in 2015.
We remain in discussions with a number of parties regarding investment.
The potential economic returns from the licence remain highly attractive even at lower oil prices.  In August 2015
we commissioned a Remote Sensing Direct Detection of Hydrocarbon Survey by Scotforth Ltd. which provided
additional confirmation of the prospectivity of the licence and substantiated our belief in the merits of targeting
Acacus prospects for future exploration activities.
Since year-end we have increased our contractor interest to 100 percent by facilitating the withdrawal of our
minority licence partners and successfully applied to the Consultative Committee on Hydrocarbons in Tunisia for a
further one-year extension to the Ksar Hadada permit until 7 August 2017.
Italy
We have continued to rationalise our Italian operations and exited our office lease arrangements during the year
and settled redundancy arrangements for all of our Italian employees.
After the year end we have now successfully relinquished our coal bed methane assets in Ribolla and Casoni with
no further obligations.
We continue to maintain a minimal administrative presence pending clarity on the outcome of the Rivara
proceedings. 2015 represented another year of frustration as we continued to await the commencement of the
Administrative court proceedings as we contest the positions taken in 2012 by the Emilia-Romagna region and the
Ministry of Economic Development.  Through our Italian legal counsel, we continue to actively seek a date for
commencement of the court proceedings in order to bring clarity regarding the future of the project.
The future economic value of Rivara remains dependent upon a successful outcome to the court case but as in
previous years no impairment provision has been taken until the outcome of such a process becomes known.
Financial review
The Group reported a consolidated loss of £1.91 million for the year to 31 December 2015 (2014: £6.48 million).
The reported loss for the period includes the group's share of losses of its joint venture with Nostra Terra Oil and
Gas Company plc of £0.16 million (2014: £nil), where due to limitations on financial information available from the
licence operator it was not possible to consolidate the group's share of revenues and costs attributable to its
licence interest in East Ghazalat.
The reported loss for the year included:
• charges of £0.30 million (2014: £nil) in respect of warrants issued over ordinary shares in relation to equity
fundraisings completed during the year;
• charges of £0.05 million (2014: £0.01 million) in relation to the IFRS 2 charge for share options;
• fundraising costs of £0.07 million (2014: £nil) charged to the profit and loss account during the period. All prior
period fundraising costs were charged to the share premium account; and
• loss and impairment charge in respect of discontinued Ribolla coal bed methane operations of £0.10 million
(2014: £4.55 million).
After the effect of these items are excluded, the adjusted loss for the period was £1.24 million (2014: £1.56 million),
a reduction of 20.7 per cent. in 2015.
The loss for the year ended 31 December 2015 also included accrued directors' remuneration charges of £0.20 million
(2014: £0.06 million) and accrued fees to other key management personnel of £0.08 million (2014: £0.01 million). It
is the stated intention that these accrued charges will be settled through the issue of new ordinary shares at a
significant premium to the share price in recent months rather than in cash.
Of the remuneration actually paid to directors and key management personnel during 2015, £0.14 million was
reinvested in new ordinary shares during the year.
Consolidated net assets at 31 December 2015 were £4.98 million (2014: £5.41 million).
At 31 December 2015 the consolidated balance sheet included approximately £3.64 million (2014: £5.24 million) of
past investment in relation to group's Italian gas storage project at Rivara.  Pending resolution of the legal
proceedings the carrying value of Rivara has not been impaired.
Cash used in continuing operations totalled £1.32 million (2014: £1.63 million) after adjustments for non-cash items
with capital expenditures incurred during the year of £0.37 million (2014: £0.23 million), predominantly related to
the joint-venture investment in East Ghazalat.
There was £0.1 million of available cash at 31 December 2015 (2014: £0.42 million).  Gross equity capital of £0.3 million
was raised since year end through a placing of ordinary shares and the issue of a convertible loan note.
Group cash balances at 28 June 2016 were £0.06 million (unaudited).
Going concern
The financial information for the year to 31 December 2015 has been prepared assuming the group will continue as
a going concern.
Under the going concern assumption, an entity is ordinarily viewed as continuing in business for the foreseeable
future with neither the intention nor the necessity of liquidation, ceasing trading or seeking protection from creditors
pursuant to laws or regulations.
The assessment has been made based on the group's anticipated activities which have been included in the financial forecast for
the years 2016 and 2017. We also carefully manage operating and administrative costs. Since January 2015 the board as a
demonstration of commitment to the future success of the Company have foregone receipt of salaries and fees in cash in favour
of share based remuneration until such time as resumption of cash salaries is appropriate. Since the year end we have taken
steps to significantly reduce our creditors from the year-end position through the issue of new ordinary shares and through
agreement of plans with the directors to forego cash salaries for equity-based compensation.
Whilst the directors remain acutely cost conscious and value focused the group will still need to attract additional funding to
continue in operation to fund additional investments and to work programme costs in relation to Ksar Hadada.  In relation to Ksar
Hadada, management's intention remains to secure a farm-in or investment partner to cover programme costs.
We continue to await our share of licence revenues from East Ghazalat to which we have been entitled since 1 July 2015, the
effective date for the transaction with TransGlobe Energy Corporation estimated. Management are actively working towards
securing collection of these revenues.
The group will still need to attract additional funding in forthcoming months to continue in operation and to fund acquisitions of
new licence interests.
Based on the above, the directors have formed a judgment that the going concern basis should be adopted in
preparing the financial statements.
Should the group be unable to continue trading, adjustments would have to be made to reduce the value of the assets to their
recoverable amounts, to provide for further liabilities which might arise and to classify fixed assets as current
Business development
On an ongoing basis the company continues to examine possible transactions to increase our production portfolio.
Egypt remains our primary country of focus now that we have received approval from EGPC as a new entrant.
We thank shareholders for their patience and look forward to providing positive updates in forthcoming months.
For more information, please visit www.ir-plc.com or contact:
Greg Coleman												Independent Resources plc																			020 3367 1134
Adam James												Panmure Gordon (UK) Limited																			020 7886 2500
												(Nominated Adviser & Joint Broker)
Oliver Stansfield												Brandon Hill Capital																			020 3463 5000
Jonathan Evans												(Joint Broker)
Simon Hudson												Tavistock Communications																			020 7920 3150
Independent Resources plc
Consolidated statement of comprehensive income
Year ended 31 December 2015
														Notes														Year to 31 December 2015														Year to 31 December 2014
Continuing operations																												£														£
Revenue														2														-														-
Cost of sales																												-														-
Gross profit																												-														-
Administrative expenses																												(1,652,631)														(1,613,026)
Other operating income																												-														42,509
Operating loss																												(1,652,631)														(1,570,517)
Financial income																												351														2,183
Financial expense																												(3,533)														(4,394)
Share of post-tax losses of equity
accounted joint ventures														8														(156,985)														-
Loss before tax																												(1,812,798)														(1,572,728)
Taxation														4														-														-
Loss from continuing operations																												(1,812,798)														(1,572,728)
Discontinued operations
Loss after taxation for the year from
discontinued operations														3														(96,269)														(4,907,737)
Loss for the year																												(1,909,067)														(6,480,465)
Other comprehensive income:
Other comprehensive income to be reclassified to profit
or loss in subsequent periods (net of tax)
Exchange difference on translating foreign operations																												(296,126)														(650,799)
Total comprehensive loss for the year																												(2,205,193)														(7,131,264)
Loss attributable to:
Owners of the parent																												(1,909,067)														(6,480,465)
Total comprehensive loss attributable to:
Owners of the parent																												(2,205,193)														(7,131,264)
Loss per share (pence)														5
Basic																												(1.1)														(8.3)
Diluted																												(1.1)														(8.3)
Loss per share (pence) for continuing operations
Basic																												(1.0)														(2.0)
Diluted																												(1.0)														(2.0)
Independent Resources plc
Consolidated statement of financial position
As at 31 December 2015
														Notes												31 December 2015																31 December 2014
																										£																£
Non-current assets
Property, plant and equipment																												11,127														13,016
Goodwill														6														-														-
Other intangible assets														7														5,387,018														5,603,152
Investments in equity-accounted
joint ventures														8														137,906														-
																												5,536,051														5,616,168
Current assets
Other receivables																				488,877																		206,027
Cash and cash equivalents																				101,300																		425,909
																				590,177																		631,936
Assets held for distribution														3						43,179																		47,683
																				633,356																		679,619
Current liabilities
Trade and other payables																				(1,164,063)																		(609,010)
Liabilities directly associated with the
assets held for distribution														3						(20,968)																		(279,989)
																				(1,185,031)																		(888,999)
Net current assets																												(551,675)														(209,380)
Net assets																												4,984,376														5,406,788
Equity attributable to equity holders of the parent
Share capital														9													2,159,247															1,051,434
Share premium														10													16,628,623															16,302,050
Warrant reserve																											302,453															-
Share option reserve																											71,718															25,776
Foreign currency translation reserve																											(335,690)															(39,564)
Retained earnings																											(13,841,975)															(11,932,908)
Total equity																												4,984,376														5,406,788
Independent Resources plc
Statement of changes in equity
Year ended 31 December 2015
											Retained				Share		Share				Warrant									Share								Foreign				Total
											earnings				capital		premium				reserve									option								currency				equity
																														reserve								translation
																																						reserve
											£				£		£				£									£								£				£
Consolidated
1 January 2014											(5,856,399)				458,369		15,287,351				-									418,919								611,235				10,919,475
Loss for the year											(6,480,465)				-		-				-									-								-				(6,480,465)
Exchange differences											-				-		-				-									-								(650,799)				(650,799)
Total comprehensive loss for
the year											(6,480,465)				-		-				-									-								(650,799)				(7,131,264)
New shares issued											-				593,065		1,186,129				-									-								-				1,779,194
Share issue costs											-				-		(171,430)				-									-								-				(171,430)
Share options lapsed											403,956				-		-				-									(403,956)								-				-
Share-based payments											-				-		-				-									10,813								-				10,813
31 December 2014											(11,932,908)				1,051,434		16,302,050				-									25,776								(39,564)				5,406,788
1 January 2015											(11,932,908)				1,051,434		16,302,050				-									25,776								(39,564)				5,406,788
Loss for the year											(1,909,067)				-		-				-									-								-				(1,909,067)
Exchange differences											-				-		-				-									-								(296,126)				(296,126)
Total comprehensive loss for
the year											(1,909,067)				-		-				-									-								(296,126)				(2,205,193)
New shares issued											-				1,107,813		405,334				-									-								-				1,513,147
New share warrants issued											-				-		-				302,453									-								-				302,453
Share issue costs											-				-		(78,761)				-									-								-				(78,761)
Share options lapsed											-				-		-				-									-								-				-
Share-based payments											-				-		-				-									45,942								-				45,942
31 December 2015											(13,841,975)				2,159,247		16,628,623				302,453									71,718								(335,690)				4,984,376
Independent Resources plc
Consolidated statement of cash flows
Year ended 31 December 2015
																													Year to 31 December 2015													Year to 31 December 2014
																													£													£
Cash flows from operating activities
Loss from continuing operations																													(1,812,798)													(1,572,728)
Loss from discontinued operations																													(96,269)													(4,907,737)
																													(1,909,067)													(6,480,465)
Adjustments for:
					Depreciation of property, plant and equipment																								5,372													10,724
					Impairment of intangible assets and goodwill																								-													4,547,705
					Share of post-tax loss of equity accounted joint ventures																								156,985													-
					Placing costs expensed																								69,244													-
					Share-based payments																								45,942													10,813
					Warrants issued																								302,453													-
					Financial income																								(351)													(2,183)
					Financial expense																								3,533													4,394
																													(1,325,889)													(1,909,012)
(Increase)/decrease in other receivables																													(289,826)													218,331
Decrease in net amounts held for disposal																													(254,517)													-
Increase in trade and other payables																													555,053													81,494
Cash used in operations																													(1,315,179)													(1,609,187)
Income taxes received																													-													-
Net cash used in operating activities																													(1,315,179)													(1,609,187)
Cash flows from investing activities
Interest received																													351													2,183
Interest paid																													(3,533)													(4,394)
Acquisition of equity accounted joint venture																													(294,891)													-
Purchase of intangible assets																													(73,013)													(219,512)
Purchases of property, plant and equipment																													(3,486)													(14,062)
Net cash used in investing activities																													(374,572)													(235,785)
Cash flows from financing activities
Issue of share capital																													1,513,147													1,779,194
Share issue costs																													(148,005)													(171,430)
Net cash from financing activities																													1,365,142													1,607,764
Net decrease in cash and cash equivalents																													(324,609)													(237,208)
Cash and cash equivalents at 1 January 2015																													425,909													663,117
Cash and cash equivalents at 31 December 2015																													101,300													425,909
1			Basis of preparation
			The company's functional currency is the Euro, and presentational currency is Great British Pounds Sterling.
			The financial information has been prepared in accordance with International Financial Reporting Standards
			("IFRS"), IFRIC interpretations and with those parts of the Companies Act 2006 applicable to companies preparing
			their accounts under IFRS, as adopted by the European Union, and the Companies Act 2006. The financial
			information has been prepared under the historical cost convention, as modified by revaluations of financial assets
			and financial liabilities at fair value through the statement of comprehensive income. Details of the accounting
			policies applied are set out in the financial statements for the year ended 31 December 2014 and have not
			changed for the year ended 31 December 2015.
			The financial information set out in this announcement does not constitute audited financial statements for the year
			ended 31 December 2015. The financial information for the year ended 31 December 2014 is derived from the
			statutory accounts for that year which have been delivered to the Registrar of Companies. The auditors reported on
			those accounts: their report was unqualified but did include emphases of matter regarding the ongoing status of
			the Rivara project and the ability of the company to continue as a going concern.
			The financial information for the year ended 31 December 2015 is derived from the financial statements, but does not
			constitute the group's financial statements. The company's auditors have reported on the statutory financial
			statements for the year ended 31 December 2015 and their report is qualified, and also include emphases of matter, as follows:
			Basis for qualified opinion on financial statements
			The scope of our work was limited as a result of the following matter.  As disclosed in the financial statements a dispute has arisen
			in relation to the operation of the joint venture arrangements relating to the group's 25 per cent. working interest in the East
			Ghazalat production licence, held through Independent Resources (Egypt) Limited, in which the group holds a 50 per cent
			interest (the 'Joint Venture'). After the reporting period the Joint Venture was served with notice of default in relation to cash
			calls raised by North Petroleum International S.A. ("North Petroleum") the operator of East Ghazalat. The Joint Venture has
			rebutted the claims from North Petroleum but the breakdown in relations has meant that operator North Petroleum has
			continued to refuse to furnish financial information to allow a proper determination of licence costs and an audit of licence
			revenues to be completed.  In addition, the quantum of a vendor loan note initally of $2.5 million issued by the Joint Venture
			as partial consideration for the transaction remains subject to final determination in accordance with the sale and purchase
			agreement. The group has been unable to engage the vendor in discussions about this issue yet. As a consequence of the
			lack of access to primary accounting records we have been unable to obtain sufficient appropriate audit evidence in relation
			to the group and company financial statements concerning:
			• the carrying value of £137,906 of the group's investments in equity-accounted joint ventures as at 31 December 2015;
			• the carrying value of £294,891 of the company's investments in equity accounted joint ventures as at 31 December 2015;
			• the actual quantum of the loan note principal and interest accrued thereon by the Joint Venture at 31 December 2015; and
			• the group's share of any profit or loss attributable to the group's underlying interests in the East Ghazalat licence for the
			period from 1 July 2015 to 31 December 2015.
			Emphasis of matter - development and exploration intangible asset
			In forming our opinion on the financial statements which is not qualified in this respect, we have considered the adequacy of the
			disclosures made in to the financial statements concerning the ongoing process of the appeal before the
			Emilia Romagna Bologna Administrative Court in respect of the approval of the development of the Rivara project. In the event
			that the group is not successful in its appeal, the expenditure capitalised in respect of this project will be subject to
			impairment testing. No adjustment has been made in relation to the carrying value of this capitalised expenditure in the
			financial statements of the group or the carrying value of the company's investment in and amounts recoverable from
			subsidiary undertakings.
			Emphasis of matter - going concern
			In forming our opinion on the financial statements, which is not qualified in this respect, we have considered the adequacy of the
			disclosure made in the financial statements concerning the company's ability to continue as a going concern. The
			financial statements have been prepared on the going concern basis, which depends on the ability of the company to raise
			funds, generate investment and/or the collection of revenues. These conditions, along with the other matters explained in
			the financial statements, indicate the existence of a material uncertainty which may cast significant doubt about the company's ability
			to continue as a going concern. The financial statements do not include the adjustments that would result if the company was unable.
			to continue as a going concern
			The financial information set out in this announcement was approved by the board on ……..
			The directors do not recommend the payment of a final dividend (2014: £Nil).
2		Business segments
		The group has adopted IFRS 8 Operating segments. Per IFRS 8, operating segments are based on internal reports
		about components of the group, which are regularly reviewed and used by the Board of Directors being the Chief
		Operating Decision Maker ("CODM") for strategic decision making and resource allocation, in order to allocate
		resources to the segment and to assess its performance. The group's reportable operating segments are as follows:
		a.						Parent company
		b.						Rivara
		c.						Ksar Hadada
		The previously reported segment of Ribolla Basin CBM assets has been classified as a discontinued operation and has been
		excluded from the analysis below.
		The CODM monitors the operating results of each segment for the purpose of performance assessments and
		making decisions on resource allocation. Performance is based on assessing progress made on projects and
		the management of resources used. Segment assets and liabilities are presented inclusive of inter-segment
		balances.
		The group did not generate any revenue during the year to 31 December 2015 nor in the year to 31 December 2014.
		Information regarding each of the operations of each reportable segment within continuing operations is included in
		the following table.
														Parent			Rivara						Ksar Hadada													Consolidation						Total
														company
														£			£						£													£						£
		Year to 31 December 2015
		Interest revenue												92,800			7,107						-													(99,556)						351
		Interest expense												(5,142)			(59,780)						-													61,389						(3,533)
		Depreciation												5,335			37						-													-						5,372
		Impairment of
		intangible assets												-			-						-													-						-
		Income tax												-			-						-													-						-
		Loss before tax												(1,938,281)			(96,672)						(95,412)													317,567						(1,812,798)
		Assets												4,763,050			6,352,843						442,739													(5,432,404)						6,126,228
		Liabilities												(1,084,119)			(2,717,707)						(1,054,449)													3,692,212						(1,164,063)
		Consolidation adjustments in respect of the loss before tax includes the loss of £156,985 in relation to equity accounted
		joint ventures.
		Consolidation adjustments in respect of assets includes the loss of £156,985 in relation to equity accounted joint ventures.
		Year to 31 December 2014
		Interest revenue												139,184			12,633						-													(149,634)						2,183
		Interest expense												-			(68,168)						-													63,774						(4,394)
		Depreciation												2,816			40						-													-						2,856
		Impairment of
		intangible assets												-			-						-													-						-
		Income tax												-			-						-													-						-
		Loss before tax												(9,398,072)			(198,236)						(129,676)													8,153,256						(1,572,728)
		Assets												4,378,459			6,955,152						374,451													(5,459,958)						6,248,104
		Liabilities												(544,028)			(3,003,712)						(890,749)													3,829,479						(609,010)
		The geographical split of non-current assets arises as follows:
																							United													Overseas						Total
																							Kingdom
																							£													£						£
		31 December 2015
		Intangible assets																					-													5,387,018						5,387,018
		Goodwill																					-													-						-
		Property, plant and equipment																					11,119													8						11,127
		31 December 2014
		Intangible assets																					-													5,603,152						5,603,152
		Goodwill																					-													-						-
		Property, plant and equipment																					12,968													48						13,016
3		Discontinued operations
		The group was unable to find an investment partner for the coal bed methane opportunities at Fiume Bruna and Casoni,
		in Italy, therefore, these opportunities will no longer be pursued. As a result the directors decided, prior to 31 December 2014,
		to significantly reduce its activities in Italy and to discontinue the activities within Independent Energy Solutions srl which
		dealt solely with these opportunities. With Independent Energy Solutions srl classified as discontinued operations, the
		Ribolla Basin CBM assets segment is no longer presented in the segment note. The results of Independent Energy
		Solutions srl, incorporating consolidation adjustments, are presented below:
																								Year to 31 December 2015																		Year to 31 December 2014
																								£																		£
		Revenue																						-																		-
		Administrative expenses																						(96,272)																		(360,916)
		Operating loss before impairment																						(96,272)																		(360,916)
		Impairment of the historic cost and carrying value of intangible
		assets																						-																		(4,096,939)
		Impairment of goodwill arising on acquisition of Independent Energy
		Solutions srl - consolidation adjustment																						-																		(450,766)
		Operating loss after impairment																						(96,272)																		(4,908,621)
		Financial income																						3																		884
		Financial expense																						-																		-
		Loss on ordinary activities before taxation																						(96,269)																		(4,907,737)
		Taxation																						-																		-
		Loss for the year from discontinued operations																						(96,269)																		(4,907,737)
		The major classes of assets and liabilities of  Independent Energy Solutions srl classified as held for distribution to equity
		holders of the parent as at 31 December 2015 are as follows:
																								31 December 2015																31 December 2014
																								£																£
		Assets
		Intangible assets - fully impaired																						-																		-
		Property, plant and equipment																						-																		9,026
		Other receivables																						35,107																		22,008
		Cash and cash equivalents																						8,072																		16,649
		Assets held for distribution																						43,179																		47,683
		Liabilities
		Trade and other payables																						(20,968)																		(279,989)
		Liabilities directly associated with the  assets held for distribution																						(20,968)																		(279,989)
		Net assets directly associated with disposal group																						22,211																		(232,306)
		The net cash flows incurred by Independent Energy Solutions srl are as follows:
																								Year to 31 December 2015																		Year to 31 December 2014
																								£																		£
		Operating																						(53,092)																		25,297
		Investing																						3																		(61,737)
		Financing																						-																		-
		Net cash (outflow)/inflow																						(53,089)																		(36,440)
		Loss per share (pence)
																								Year to 31 December 2015																		Year to 31 December 2014
		Liabilities directly associated with the assets held for distribution																						(0.1)																		(6.3)
		Liabilities directly associated with the assets held for distribution																						(0.1)																		(6.3)
		Immediately before the classification of Independent Energy Solutions srl as discontinued operations, the recoverable
		amount was estimated for certain items of property, plant and equipment and no impairment was identified. No adjustment
		has been made to reduce the carrying amount of the assets in the disposal group to their fair value less costs to distribute.
		Immediately before the classification of Independent Energy Solutions srl as discontinued operations, the recoverable
		amount was estimated for the company's intangible assets and these were impaired in full.
4	Taxation
																									Year to 31 December 2015																	Year to 31 December 2014
																									£																	£
	Tax on profit on ordinary activities
	Taxation charged based on profits for the period
	UK corporation tax based on the results for the period																								-																	-
	Total tax expense in income statement																								-																	-
	Reconciliation of the tax expense
	The tax assessed for the year is different from the standard rate of corporation tax in the UK (20.25%).  The differences are
	explained below:
																									Year to 31 December 2015																	Year to 31 December 2014
																									£																	£
	Loss on ordinary activities before taxation																								(1,812,798)																	(1,572,728)
	Loss on ordinary activities multiplied by standard rate
	of corporation tax in the UK of 20.25% (2014: 21.5%)																								(367,092)																	(338,136)
	Effects of:
	Expenses disallowed for tax purposes																								29,283																	2,540
	Deferred tax not provided - tax losses carried forward																								352,985																	335,596
	Total current tax																								15,176																	-
	The group has tax losses available to be carried forward in certain subsidiaries and the parent. With anticipated
	substantial lead times for the group's projects, and the possibility that these may therefore expire before their use, it is
	not considered appropriate to anticipate an asset value for them.
	No amounts have been recognised within tax on the results of the equity accounted joint ventures.
5	Loss per share
	The calculation of basic and diluted loss per share at 31 December 2015 was based on the loss attributable to ordinary
	shareholders of £1,909,067. The weighted average number of ordinary shares outstanding during the year ending
	31 December 2015 and the effect of the potentially dilutive ordinary shares to be issued are shown below.
																									Year to 31 December 2015																	Year to 31 December 2014
																									£																	£
	Net loss for the year																								(1,909,067)																	(6,480,465)
	Basic weighted average ordinary shares
	in issue during the year																								178,744,458																	77,683,625
	Diluted weighted average ordinary shares
	in issue during the year																								178,744,458																	77,683,625
	Loss per share (pence)
	Basic																								(1.1)																	(8.3)
	Diluted																								(1.1)																	(8.3)
	In accordance with IAS 33 and as the average share price in the year is lower than the exercise price, the share options
	do not have a dilutive impact on earnings per share for the year ending 31 December 2015.
	Deferred shares have been excluded from the calculation of loss per share due to their nature. Please see note 9 for details
	of their rights.
6	Goodwill (group)
																																										Goodwill
																																										£
	31 December 2015
	Cost
	1 January 2015 and 31 December 2015																																									450,766
	Impairment
	1 January 2015																																									450,766
	Impairment charge for the year																																									-
	31 December 2015																																									450,766
	Carrying amount
	31 December 2015																																									-
	31 December 2014																																									-
	31 December 2014
	Cost
	1 January 2014 and 31 December 2014																																									450,766
	Impairment
	1 January 2014																																									-
	Impairment charge for the year																																									450,766
	31 December 2014																																									450,766
	Carrying amount
	31 December 2014																																									-
	31 December 2013																																									450,766
	The goodwill arises as a result of the acquisition of Independent Energy Solutions srl which contains the Ribolla project.
	The group was unable to find an investment partner for the coal bed methane opportunities at Fiume Bruna and Casoni,
	in Italy, therefore, these opportunities will no longer be pursued. As a result the directors have decided that the carrying
	value of the goodwill is not recoverable and have fully provided against this.
7	Other intangible assets (group)
	Development and exploration
																			Rivara gas							Ribolla Basin											Ksar Hadada					Total
																			storage							CBM assets											exploration
																			facility																		acreage
																			£							£											£					£
	31 December 2015
	Cost
	1 January 2015																		5,239,353							4,096,939											1,444,628					10,780,920
	Exchange differences																		(289,147)							(226,100)											-					(515,247)
	Additions																		-							-											73,013					73,013
	31 December 2015																		4,950,206							3,870,839											1,517,641					10,338,686
	Impairment
	1 January 2015																		-							4,096,939											1,080,829					5,177,768
	Exchange differences																		-							(226,100)											-					(226,100)
	Impairment charge for the year																		-							-											-					-
	31 December 2015																		-							3,870,839											1,080,829					4,951,668
	Carrying amount
	31 December 2015																		4,950,206							-											436,812					5,387,018
	31 December 2014																		5,239,353							-											363,799					5,603,152
	31 December 2014
	Cost
	1 January 2014																		5,584,997							4,316,859											1,307,337					11,209,193
	Exchange differences																		(365,374)							(282,411)											-					(647,785)
	Additions																		19,730							62,491											137,291					219,512
	31 December 2014																		5,239,353							4,096,939											1,444,628					10,780,920
	Impairment
	1 January 2014																		-							-											1,080,829					1,080,829
	Impairment charge for the period																		-							4,096,939											-					4,096,939
	31 December 2014																		-							4,096,939											1,080,829					5,177,768
	Carrying amount
	31 December 2014																		5,239,353							-											363,799					5,603,152
	31 December 2013																		5,584,997							4,316,859											226,508					10,128,364
	The primary intangible assets are all internally generated.
	For the purpose of impairment testing of intangible assets, recoverable amounts have been determined based
	upon the value in use of the group's three projects.
	Ribolla Basin CBM assets
	The group was unable to find an investment partner for the coal bed methane opportunities at Fiume Bruna and Casoni,
	in Italy, therefore, these opportunities will no longer be pursued. As a result the directors have decided that the carrying
	value of the intangible asset is not recoverable and have fully provided against this.
	Rivara gas storage facility
	Despite the expected delay, a review of the latest management information and projections shows a net present value
	significantly in excess of assets and liabilities relating to the project. The main assumptions indicate that no significant
	change has arisen on these calculations which would materially impact on the group.
	The continuing analysis and testing of technical data continues to indicate that the project is feasible.
	The group continues to work towards, and is confident of, obtaining all the necessary approvals from regulatory
	authorities. The group anticipates being able to raise the necessary finance to continue to develop the project.
	Value in use
	Value in use has been calculated separately for the group's Rivara gas storage facility. Cash flows are projected for
	the periods up to the date that the project is expected to become commercially operational and from then until
	operations are expected to cease, based upon management's expectations. These dates depend on a number of variables,
	including the project's technical feasibility, regulatory approval, forecast revenue prices and the associated development
	and operational costs.
	The project is expected to generate revenue after five to nine years and to continue doing so for a further 35
	years. The directors consider that projections calculated for a period greater than five years are justified as the
	project is still in a development stage.
	Key assumptions used in value in use calculations
	The key assumptions used in the value in use calculations for the intangible assets are the expected storage and
	useable capacity of the Rivara project, costs of plant and infrastructure, expected revenue prices (specifically gas
	prices), expected operational costs, appropriate discount rates and foreign exchange rates.
	Management's assessment of the technical and commercial viability of the project is supported by the evaluation work
	undertaken by appropriately qualified persons.
	Management has assessed the project's individual net present values and thereby impairment on a variety of
	bases and assumptions using, where appropriate, a number of discount rates.  The impairment tests are
	particularly sensitive to changes in the key assumptions, and changes to these assumptions could result in
	impairment; however, all of the varying bases indicate a net present value significantly in excess of the value of
	the intangible assets.
	Foreign exchange rates have been based on external market forecasts, after considering long-term market
	expectations and the countries in which the group operates.
	The key assumptions used in the value in use calculations are as follows:
																										Assumption																Sensitivity
																																										factor *
	Rivara gas storage facility:
									Growth rate																	2.0%																+568.29%
									Discount rate																	7.0%																+103.69%
									Capital expenditure																	-																185.89%
	The growth rates are considered to cover increases resulting from inflation and regulatory changes.
	* The sensitivity factor is the percentage change in each specific assumption which would, on its own, result in the net present
	value equal to the carrying value of the intangible asset in the accounts.
	The discount rates used vary depending on the nature of the projects and the anticipated stability and longevity of expected
	cash flows.
	Potential impairment of the Rivara project
	The Group holds a 100% interest in Rivara Gas Storage srl. Intangible assets include an amount of £4,950,000 with
	respect to project expenditure. The regional council, Regione Emilia Romagna, where the project is located is currently
	denying authorisation for project development. However authorisation has been granted by the national government. As a
	result Rivara Gas Storage srl has appealed against this decision to the Emilia Romogna Bologna Administrative Court
	and this appeal is due to be heard in the second half of 2015.
	In the event that Rivara Gas Storage srl's appeal was to be unsuccessful, there may be an indication of impairment of the
	capitalised expenditure which could significantly reduce the carrying value of this asset.
8	Investments in equity-accounted joint ventures
																																										Year to 31 December 2015
																																										£
	Cost
	1 January 2015																																									-
	Additions in year																																									294,891
	Impairment																																									-
	Cost at 31 December 2015																																									294,891
	Share of post-tax losses of equity accounted joint ventures																																									(156,985)
	Carrying value at 31 December 2015																																									137,906
	The group has a 50 per cent. interest in Independent Resources (Egypt) Limited a company incorporated in England &
	Wales, whose purpose is to invest in the oil and gas exploration and production activities in the Arab Republic of Egypt.
	The other shareholder in Independent Resources (Egypt) Limited (the "Joint Venture") is Nostra Terra Oil and Gas
	Company plc ("Nostra Terra") a UK resident company whose shares are traded on the AIM market of the London Stock
	Exchange.
	In determining the group and company's investment in the equity accounted joint venture, the directors have considered the
	following relevant circumstances:
	• In October 2015 the Joint Venture acquired a 50 per cent. working interest in the East Ghazalat production licence located
	in the Western Desert, Egypt from TransGlobe Energy Corporation through the acquisition of the entire share capital of
	Trans Globe (GOS) Inc. a wholly-owned subsidiary of TransGlobe Energy Corporation ("TransGlobe).  In December 2015,
	the name of the acquired company was changed to Sahara Resources (GOS) Inc.
	• The total consideration for the transaction was $3.5 million of which $2.5 million has been deferred as a vendor loan
	repayable by the Joint Venture on 30 September 2017. The loan note accrues interest at 10 per cent annum on the
	principal sum, payable semi-annually. Nostra Terra and Independent Resources plc are joint and severally liable for the
	repayment of the loan note.
	• The final loan note principal and semi-annual interest payable to Trans Globe thereon remain subject to final determination
	in accordance with completion working capital adjustment provisions in the sale and purchase agreement. The principal of
	the loan note is to be adjusted by the net working capital of Sahara Resources (GOS) Inc. at legal completion.
	• At 31 December 2015 the loan note principal has been recorded based on Trans Globe's initial assessment of working
	capital at completion and interest on this estimated loan note principal has been accrued up to 31 December 2015.
	• The loan note principal and interest payable thereon may therefore change during 2016 when the working capital
	adjustment is finalised.
	• The US dollar denominated loan liability all to TransGlobe has been retranslated at prevailing year-end exchange rates.
	• As a non-monetary long-term asset, the consideration for acquiring the share capital of Trans Globe GOS Inc. has been
	recorded at the prevailing exchange rate at the time of completion of the acquisition but has not been retranslated at the
	prevailing year-end exchange rate.
	• In January 2016 the Joint Venture was served with notice of default in relation to cash calls raised by North Petroleum
	International S.A. ("North Petroleum") the operator of East Ghazalat.
	• The Joint Venture has rebutted the claims from North Petroleum but the current breakdown in relations has meant that
	operator North Petroleum has been unwilling to furnish financial information to allow a proper determination of licence costs
	and an audit of licence revenues to be completed.
	• In light of this lack of access to primary accounting records the results of the Joint Venture for the year ended 31
	December 2015 reflect the investment in Sahara Resources GOS Inc. at historical cost and the loan note consideration
	payable to Trans Globe and the accrued costs of completing the related acquisition but do not consolidate any share of
	profits or losses attributable to Sahara Resources GOS Inc. underlying interests in the East Ghazalat licence for the period
	since 1 July 2015, the effective date of the transaction.
	• The current liabilities of the Joint Venture at 31 December 2015 primarily reflects amounts due to Independent Resources
	plc in respect of costs incurred by it to third parties in relation to the acquisition by the Joint Venture of Sahara Resources
	GOS Inc.
	Summarised financial information in relation to the joint venture is presented below:
																							31 December 2015																		31 December 2014
																							£																			£
	As at 31 December
	Current assets																						1																			1
	Non-current assets																						2,303,201																			-
	Current liabilities																						(266,124)																			-
	Non-current liabilities																						(2,286,990)																			-
	Included in the above amounts are:
							Cash and cash equivalents																-																			-
							Current financial liabilities (excluding trade payables)																(266,124)																			-
							Non-current financial liabilities (excluding trade payables)																(2,286,990)																			-
	Net assets (100%)																						(249,912)																			1
	Group share of net assets (50%)																						(124,956)																			1
	Year ended 31 December
	Revenues																						-																			-
	Loss from continuing operations																						(313,969)																			-
	Total comprehensive loss (100%)																						(313,969)																			-
	Group share of total comprehensive loss (50%)																						(156,985)																			-
	Included in the above amounts are:
							Depreciation and amortisation																-																			-
							Interest income																-																			-
							Interest expense																36,277																			-
							Income tax expense																-																			-
9				Share capital
																						31 December 2015																				31 December 2014
																						£																				£
	Issued, called up and fully paid
	335,924,701 0.1p (2014: 105,143,330 1p)
	ordinary shares
	1 January 2015																					1,051,434																				458,369
	Equity shares issued																					2,931,135																				593,065
	Sub-division of capital																					(1,823,322)																				-
	31 December 2015																					2,159,247																				1,051,434
	The holders of 0.01p ordinary shares are entitled to receive dividends from time to time and are entitled to one vote per
	share at meetings of the company.
	In addition to the 0.01p ordinary shares detailed above on 16 November 2015 as part of a capital reorganisation 202,591,368
	deferred shares with a nominal value of 0.9p were created. The deferred shares have no value or voting rights and the
	shareholders were not issued with a share certificate, nor are they listed on AIM. These shares remain issued, called up and
	fully paid at the year end.
	Further shares issued and the sub-division of capital during the year was as follows:
																						Date										Shares										Price
	Shares issued																					08/05/2015										18,400,000										1p
	Shares issued																					27/05/2015										61,600,000										1p
	Shares issued																					28/07/2015										17,448,038										1p
	Sub-division of capital																					16/11/2015										202,591,368										1p to 0.1p
	Shares issued																					16/11/2015										133,333,333										0.6p
10	Share premium account
																						31 December 2015																			31 December 2014
																						£																			£
	1 January 2015																					16,302,050																				15,287,351
	Premium arising on issue of equity shares																					405,334																				1,186,129
	Transaction costs																					(78,761)																				(171,430)
	31 December 2015																					16,628,623																				16,302,050
11	Share-based payments
	(a) Share Options
	The share option scheme, which was adopted by the company on 25 November 2005, was established to reward and incentivise
	the executive management team for delivering share price growth. The share option scheme is administered by the Remuneration
	Committee.
	On 4 March 2013 the company issued 200,000 share options to W G Coleman upon his appointment to the board
	as chief executive officer.
	On 10 October 2014 the company issued 4,205,734 share options in total to the directors, key management
	personnel and their service companies as follows:
	Individual																					Number of options granted
	W G Coleman (director)																					2,628,583
	O P T Franks (director)																					525,717
	F P McCole (key management personnel)																					525,717
	Rocky Mountain Limited (company controlled
	by B Hepp, key management personnel)																					525,717
																						4,205,734
	On 27 February 2015, the company issued 1,050,000 share options to non-director and non-key management personnel.
	Details of the tranches of share options outstanding at the year end are as follows:
	Date of grant								01/01/2015					Issued/				31/12/2015				Date from which																Lapse				Exercise
									Number of					lapsed in				Number of				options may be																date				Price per
									options					the year				options				first exercised																				option
	04/03/2013								200,000					-				200,000				04/03/2013																03/03/2023				1p
	10/10/2014								4,205,734					-				4,205,734				10/10/2015																10/10/2024				3p
	27/02/2015								-					1,050,000				1,050,000				27/02/2016																27/02/2025				3p
	The options outstanding at the end of the year have a weighted average remaining contractual life of 1 year for the options
	issued on 4 March 2013, 1.75 years for the options issued on 10 October 2014, and 2.17 years for the options issued on
	27 February 2015.
	The fair values of the options granted on 4 March 2013 were calculated using the Black-Scholes option pricing model. The
	inputs into the model were as follows:
	Weighted average share price																					10.62p
	Weighted average exercise price																					1p
	Expected volatility																					92.00%
	Expected life																					10 years
	Risk free rate																					2.10%
	Expected dividend yield																					Nil
	The fair values of the options granted on 10 October 2014 were calculated using the Black-Scholes option pricing model.
	The inputs into the model were as follows:
	Weighted average share price																					2.12p
	Weighted average exercise price																					3p
	Expected volatility																					85.00%
	Expected life																					10 years
	Risk free rate																					2.22%
	Expected dividend yield																					Nil
	The average fair value of share options granted in the year was 1.716p each.
	The outstanding share options are not subject to any share-performance related vesting conditions but vesting is conditional
	upon continuity of service.
	The expected volatility was determined with reference to the company's share price since it was admitted for trading on AIM
	in December 2005. The expected life used in the model has been adjusted, based on management's best estimate, for the
	effects of non-transferability, exercise restrictions and behavioural considerations.
	The fair values of the options granted on 27 February 2015 were calculated using the Black-Scholes option pricing model.
	The inputs into the model were as follows:
	Weighted average share price																					1.62p
	Weighted average exercise price																					3p
	Expected volatility																					87.00%
	Expected life																					10 years
	Risk free rate																					1.73%
	Expected dividend yield																					Nil
	The average fair value of share options granted in the year was 1.28p each.
	The outstanding share options are not subject to any share-performance related vesting conditions but vesting is conditional
	upon continuity of service.
	The expected volatility was determined with reference to the company's share price since it was admitted for trading on AIM
	in December 2005. The expected life used in the model has been adjusted, based on management's best estimate, for the
	effects of non-transferability, exercise restrictions and behavioural considerations.
	The group recognised total expenses of £45,942 (2014: £10,813) related to equity-settled, share-based payment transactions
	relating to share options during the year.
	A deferred taxation asset has not been recognised in relation to the charge for share-based payments due to the availability
	of tax losses available to be carried forward.
	(b) Warrants over ordinary shares
	The company issued warrants over ordinary shares to the company to subscribers of new ordinary shares and as fundraising
	commission in respect of equity fundraisings completed during the year to 31 December 2015.
	On 8 May 2015 the company issued warrants to subscribe for 9,200,000 ordinary shares at an exercise price of 1.50p.
	On 8 May 2015 the company issued warrants to subscribe for 4,000,000 ordinary shares at an exercise price of 1.20p.
	On 28 May 2015 the company issued warrants to subscribe for 30,800,000 ordinary shares at an exercise price of 1.50p.
	On 21 July 2015 the company issued warrants to subscribe for 8,724,019 ordinary shares at an exercise price of 1.50p.
	On 18 November 2015 the company issued warrants to subscribe for 133,333.333 ordinary shares at an exercise price of 1.00p.
	On 18 November 2015 the company issued warrants to subscribe for 6,000,000 ordinary shares at an exercise price of 0.72p.
	Details of the tranches of warrants outstanding at the year-end are as follows:
	Date of issue								01/01/2015				Issued/					31/12/2015				Date from which																Lapse				Exercise
									Number of				lapsed in					Number of				warrants may be																date				price of
									warrants				the year					warrants				first exercised																				warrants
	08/05/2015								-				-					9,200,000				08/05/2015																28/05/2017				1.50p
	08/05/2015								-				-					4,000,000				08/05/2015																28/05/2018				1.20p
	28/05/2015								-				-					30,800,000				28/05/2015																28/05/2017				1.50p
	21/07/2015								-				-					8,724,019				21/07/2015																28/05/2017				1.50p
	16/11/2015								-				-					133,333,333				16/11/2015																18/11/2017				1.00p
	16/11/2015								-				-					6,000,000				16/11/2015																18/11/2018				0.72p
	A charge to the profit and loss account has been taken in compliance with IFRS2 in respect of the fair value of warrants
	issued to brokers in relation to fundraising services provided as set out below:
	The fair value of the 1.20p warrants issued on 8 May 2015 was calculated using the Black-Scholes option pricing model.
	The inputs into the model were as follows:
	Weighted average share price																					1.05p
	Weighted average exercise price																					1.20p
	Expected volatility																					88.00%
	Expected life																					3 years
	Risk free rate																					1.93%
	Expected dividend yield																					Nil
	The average fair value of warrants granted was 0.57p each.
	The fair value of the 0.72p warrants issued on 18 November 2015 was calculated using the Black-Scholes option pricing
	model. The inputs into the model were as follows:
	Weighted average share price																					0.60p
	Weighted average exercise price																					0.72p
	Expected volatility																					85.00%
	Expected life																					3 years
	Risk free rate																					1.95%
	Expected dividend yield																					Nil
	The average fair value of warrants granted was 0.31p each.
	The group recognised total expenses of £5,686 (2014: £Nil) related to equity-settled, share-based payment transactions
	relating to warrants over ordinary shares during the year.
	A deferred taxation asset has not been recognised in relation to the charge for share-based payments due to the availability
	of tax losses available to be carried forward.

 

END

 

 

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