Annual Financial Report FYE 31 December 2020

RNS Number : 2165A

Predator Oil & Gas Holdings PLC

28 May 2021

 

FOR IMMEDIATE RELEASE

28 May 2021

Predator Oil & Gas Holdings Plc / Index: LSE / Epic: PRD / Sector: Oil & Gas

LEI 213800L7QXFURBFLDS54

Predator Oil & Gas Holdings Plc

("Predator" or the "Company" and together with its subsidiaries "the Group")

Financial Statements for the Year Ended 31 December 2020

Predator Oil & Gas Holdings Plc (PRD), the Jersey-based Oil and Gas Company with operations in Trinidad, Morocco and Ireland is pleased to announce its audited financial statements for the year ended 31 December 2020, extracts of which are set out below.

The Company's Annual Report is being posted to shareholders over the coming weeks, allowing for production delays and restricted working practices caused by COVID-19. Copies of the Annual  Report will be available at the time of posting to download from the Company's website at www.predatoroilandgas.com .

In addition, a copy of the 2020 Annual Report will be uploaded to the National Storage Mechanism and will be available for viewing at  https://data.fca.org.uk/#/nsm/nationalstoragemechanism

The financial information set out below does not constitute the Company's statutory accounts for the year ending 31 December 2020.

Key Activities in 2020

Highlights include:

· Environmental Impact Assessment ratified by the Ministry of Energy and Mines and Environment valid for three wells for five years from the effective date of issue of 29 January 2020.

· Rig option agreement entered into, without incurring any financial liabilities, with Canadian drilling contractor Star Valley Drilling Ltd. for Rig No. 101, for one initial well and up to six contingent wells.

· Draft geological programme, well design and drilling programme for the MOU-1 well used to seek quotes for third party well services and logistical field support.

· MOU-1 well location and drilling budget approved by ONHYM.

· Well inventory required for drilling MOU-1 identified as being available within Morocco.

· Guebbas and Hoot equivalent reservoir targets (using Rharb Basin terminology) forecast to occur between 1,200 and 1,500 metres depth in MOU-1 and take up to 15 days to reach.

· Studies resulted in developing the MOU-4 Prospect covering 31.7km² and a 92% increase in Best Estimate prospective gross recoverable gas resources for the primary Tertiary reservoirs was reported in a new independent Competent Persons Report by SLR Consulting (Ireland) Ltd .

· Scoping criteria for the pilot CNG project using a delivery profile of 10 mm cfgpd for a minimum of 5 years gave scoping after tax net-back profit of at least US$ 5/mcf based on a sales price of US$ 10 - 12 /mcf. 

· Company-operated CO2 EOR delivery and injection system was successfully installed, commissioned and tested at its dedicated site in the AT-4 Block in the Inniss-Trinity oil field.

· 458.1 metric tonnes of anthropogenic CO2 injected equivalent to 458,100 kg.

· AT-12 showed enhanced oil production averaging 21.3 bopd - 69% higher than the pre-Pilot reservoir engineering forecast.

· 2,928 barrels of enhanced oil production achieved from the pilot C02 EOR operations during the year.

· The combined effect of CO2 injection and the amount of enhanced oil production for this period resulted in a net CO2 emissions reduction of 458,100 kg (equivalent to 799,795 kg of C02 emissions if the oil is burned when taking into account C02 sequestration) and  "greener" oil  closer to the C02 emissions level of natural gas.

· Submission to the Public Consultation on the expert advisory group report entitled "Expanding Ireland's Marine Protected Area Network", published by the Department of Housing, Local Government and Heritage in conjunction with applying for Marine Area Consent for the FSRU project.

· Restructured the Board with the appointment of Dr. Stephen Staley as permanent Non-executive Chairman, to replace the retiring Carl Kindinger, and Mr Louis Castro as Non-executive Director.

Highlights of Financial Results for 2020 

· Loss from operations of £1,689,521 (2019: Loss of £1,279,243).

· Cash balance at period end of 2020 £1,325,75 (2019: £109,716).

· Restricted cash of USD1,500,000 (USD1,500,000 for the period ended 31 December 2019).

· Placed 89,000,000 new ordinary shares of no par value in the Company at a placing price of 4 pence to raise £3.56 million (before expenses) and 22,438,842 new ordinary shares of no par value in the Company at a placing price of 2 pence to raise £0.448 million (before expenses).

· Issued to Brokers 4,875,000 new ordinary shares of no par value in settlement of placing fees.

· Issued warrants to subscribe for 4,450,000 new ordinary shares in the Company at an exercise price of 12p per share to brokers.

· Issued 15,192,506 shares to repay £269,000 of the outstanding principal balance on the Arato Convertible Loan Note inclusive of 5% conversion fee for the amount of the Loan Note being converted and used some Placing funds for redemption in full of the outstanding principal balance on the   Arato Convertible Loan Notes of £746,000 (£ nil for the period to 31 December 2020).

Post Period End:

· Pilot CO2 EOR results at Inniss-Trinity would potentially allow the Company to reach, by cumulative monthly growth over 12 months, target plateau production in the AT-4 Block in the range 243 to 547 bopd, in alignment with pre-Pilot CO2 EOR model forecasts.

· Guercif exploration well planning was targeting a well to be drilled in Q 2 2021.

· The Warrant Instrument with Novum Securities Ltd dated 15 February 2019 granting the right to subscribe in cash for 2,000,000 ordinary shares exercisable at a price per share equal to the subscription price (12p per share)  was being amended to allow the exercise date of the warrants to be extended by one year.

· The Warrant Instrument with Novum Securities Ltd and Optiva Securities Ltd dated 24 May 2018 granting the right to subscribe in cash for 2,231,248 and 160,714 ordinary shares  respectively exercisable at a price per share equal to the subscription price (2.8p per share)  was being amended to allow the exercise date of the warrants to be extended by one year.

· The Warrant Instrument with Arato Global Opportunities pursuant to the Convertible Loan Note dated 15 February 2019 granting the right to subscribe in cash for 2,000,000 ordinary shares exercisable at a price per share equal to the subscription price (12p per share) has expired without the warrants being exercised.

· P laced 17 million   new ordinary shares of no-par value in the Company at a placing price of 10.5 pence each to raise £1,785,000 (before expenses).

· As a result of insufficient headroom shares to enable the issue and admission of all of the 17,000,000 Placing Shares which are required to be issued pursuant to the Placing without the production of an FCA approved prospectus, 5,215,155 new ordinary shares were issued (up to its existing headroom) and a director, Paul Griffiths, made up the shortfall with a transfer of 11,784,845 existing shares held by him to Novum Securities.

When the Company has the ability to issue further shares it intends to issue 11,784,845 new Ordinary Shares to Paul Griffiths to restore the position that existed, in terms of his aggregate shareholding in the Company, had he not made the transfer of Ordinary Shares.

Paul Griffiths, Predator's CEO, said:

" During the period, despite the unique challenges presented by the  impact of the COVID-19 pandemic, we reached an important milestone in successfully executing and operating the Inniss-Trinity pilot C02 EOR project in Trinidad to demonstrate the potential for reducing C02 emissions by facilitating cost-effective C02 storage in producing reservoirs. The focus on gas onshore Morocco to reduce an over-reliance on more carbon intensive fuels and the planning of offshore LNG solutions for Ireland to address security of energy supply and to provide greater transparency on sources of gas relative to co-mingled imported gas is consistent with our emphasis now firmly on ESG and demonstrating energy sustainability. We are pleased to be able to demonstrate practical and pragmatic options for the Energy Transition which have a role in helping to ameliorate the effects of climate change but also in maintaining a fair, equitable and just social responsibility.

We have eliminated debt, strengthened our balance sheet and further developed our in-country relationships to execute our business strategies and create materiality by aligning with key stakeholders in the energy sectors. With this solid platform we are well-positioned to move forward in 2021 to increase operational activity beginning with the MOU-1 well in northern Morocco, which potentially could lead to the establishment of a new potential gas basin straddling the Maghreb gas pipeline to Europe."

This announcement contains inside information for the purposes of Article 7 of the Regulation (EU) No 596/2014 on market abuse (as in force in the United Kingdom pursuant to the European Union (Withdrawal) Act 2018).

For more information, please visit the Company's website at  www.predatoroilandgas.com : 

Enquiries:

Predator Oil & Gas Holdings Plc Dr. Stephen Staley Non-executive Chairman Paul Griffiths  Chief Executive Officer	Tel: [phone] [e-mail]
Novum Securities Limited Jon Belliss Optiva Securities Limited Christian Dennis	Tel: [phone] Tel: [phone]
Flagstaff Strategic and Investor Communications Tim Thompson  Mark Edwards Fergus Mellon	Tel: [phone] [e-mail]

Notes to Editors:

Predator is an oil and gas exploration company with the objective of participating with FRAM Exploration Trinidad Ltd. in further developing the remaining oil reserves and sequestrating anthropogenic carbon dioxide in the producing Inniss Trinity oil field onshore Trinidad, primarily through the application of C02 EOR technology. Potential for cash flow exists by executing a successful Pilot Enhanced Oil Recovery project using locally sourced liquid carbon dioxide for injection into and storage within the oil reservoirs ("C02 EOR"). Near-term expansion and production growth potential is focussed on upscaling the C02 EOR operations in the Inniss-Trinity oil field, subject to all necessary approvals. 

Predator is operator of the Guercif Petroleum Agreement onshore Morocco which is prospective for Tertiary gas in prospects less than 10 kilometres from the Maghreb gas pipeline.  A drilling programme, subject to the lifting of COVID-19 restrictions, targeting material prospective gas resources is scheduled for Q2 2021.

In addition, Predator also owns and operates exploration and appraisal assets in licensing options offshore Ireland, for which Successor Authorisations have been applied for, adjoining Vermilion's Corrib gas field in the Slyne Basin on the Atlantic Margin and east of the Kinsale gas field and Barryroe oil field in the Celtic Sea.

The Company has a highly experienced management team with a proven track record in the oil and gas industry.

Consolidated statement of comprehensive income
For the year ended 31 December 2020
		01.01.2020 to 31.12.2020		01.01.2019 to 31.12.2019
	Notes	£		£
Administrative expenses	4	(1,464,162)		(1,204,464)
Operating loss		(1,464,162)		(1,204,464)
Finance income		-		12
Finance expense	5	(225,359)		(74,791)
Loss for the year before taxation		(1,689,521)		(1,279,243)
Taxation	6	-		-
Loss for the year after taxation		(1,689,521)		(1,279,243)
Comprehensive income		-		-
Total comprehensive loss for the year attributable to the owner of the parent		(1,689,521)		(1,279,243)
Earnings per share basic and diluted (pence)	8	(0.8)		(1.2)
The accompanying accounting policies and notes form an integral part of these financial statements.
All items in the above statement derive from continuing operations.

Consolidated statement of financial position
As at 31 December 2020
		31.12.2020		31.12.2019
	Notes	£		£
Non-current assets
Tangible fixed assets	10	5,592		7,158
		5,592		7,158
Current assets
Trade and other receivables	12	1,577,858		1,381,175
Cash and cash equivalents	13	1,325,751		109,716
		2,903,609		1,490,891
Total assets		2,909,201		1,498,049
Equity attributable to the owner of the parent
Share capital	16	6,832,564		2,346,336
Reconstruction reserve		2,797,421		3,270,648
Other reserves	18	458,840		256,416
Retained deficit		(7,263,116)		(5,573,595)
Total equity		2,825,709		299,805
Non-current liabilities
Trade and other payables	17	-		918,406
Current liabilities
Trade and other payables	14	83,492		279,838
Total liabilities		83,492		1,198,244
Total liabilities and equity		2,909,201		1,498,049
The accompanying accounting policies and notes form an integral part of these financial statements.
The Company has adopted the exemption under Companies (Jersey) Law 1991 Article 105 (11) not to prepare separate accounts. The Group reported a loss after taxation for the year of £1.69million (2019: £1.28 million loss). The financial statements were approved and authorised for issue by the Board of Directors on 27 May 2021 and were signed on its behalf by:
Paul Griffiths
Director 27 May 2021

Consolidated statement of changes in equity
For the year ended 31 December 2020
	Attributable to owner of the parent
	Share Capital	Share premium	Share based payments	Retained deficit	Total
	£	£	£	£	£
Balance at 31 December 2018	1,837,086	3,294,898	81,570	(4,294,352)	919,202
Issue of ordinary share capital	509,250	-	-	-	509,250
Issue of warrants	-	-	81,385	-	81,385
Fair value of share options	-	-	93,461	-	93,461
Loan note conversion premium	-	(24,250)	-	-	(24,250)
Total contributions by and distributions to owners of the parent recognised directly in equity	2,346,336	3,270,648	256,416	(4,294,352)	1,579,048
Loss for the year	-	-	-	(1,279,243)	(1,279,243)
Total comprehensive income for the year	-	-	-	(1,279,243)	(1,279,243)
Balance at 31 December 2019	2,346,336	3,270,648	256,416	(5,573,595)	299,805
Issue of ordinary share capital	4,486,228	-	-	-	4,486,228
Issue of warrants	-	-	100,451	-	100,451
Fair value of share options	-	-	101,973	-	101,973
Transaction costs		(473,227)			(473,227)
Total contributions by and distributions to owners of the parent recognised directly in equity	6,832,564	2,797,421	458,840	(5,573,595)	4,515,230
Loss for the year	-	-	-	(1,689,521)	(1,689,521)
Total comprehensive income for the year	-	-	-	(1,689,521)	(1,689,521)
Balance at 31 December 2020	6,832,564	2,797,421	458,840	(7,263,116)	2,825,709
The accompanying accounting policies and notes form an integral part of these financial statements.

Consolidated statement of cash flows
For the year ended 31 December 2020
			01.01.2020 to 31.12.2020		01.01.2019 to 31.12.2019
		Notes	£		£
Cash flows from operating activities
Loss for the period before taxation			(1,689,521)		(1,279,243)
Adjustments for:
Issue of share options		19	101,973		93,461
Fair value of warrants		19	100,451		-
Finance income			-		(12)
Finance expense		5	128,765		-
Share issue costs			195,000		-
Amortisation of transaction costs			96,594		74,791
Depreciation			1,642		1,158
Foreign exchange			252,867		-
Decrease/(increase) in trade and other receivables			25,919		(1,167,848)
(Decrease)/increase in trade and other payables			(196,346)		209,568
Net cash used in operating activities			(982,656)		(2,068,125)
Cash flow from investing activities
Loan advances			(290,419)		(201,077)
Purchase of computer equipment		10	(842)		(4,694)
Disposal of computer equipment		10	767		-
Net cash generated from investing activities			(290,494)		(205,771)
Cash flows from financing activities
Proceeds from issuance of shares, net of issue costs			3,535,550		-
Proceeds from issue of convertible loan notes, net of issue costs			-		1,410,000
Redemption of convertible loan notes			(746,000)		-
Finance expense paid			(115,315)		-
Finance income received			-		12
Net cash generated from financing activities			2,674,235		1,410,012
Effect of exchange rates on cash			(185,049)		-
Net increase/(decrease) in cash and cash equivalents			1,216,035		(863,884)
Cash and cash equivalents at the beginning of the year			109,716		973,600
Cash and cash equivalents at the end of the year			1,325,751		109,716
Non-cash transaction During the year 15,192,506 ordinary shares with a nominal value £282,450 were issued as part of the loan note conversion.  Further details are disclosed in Note 16. The accompanying accounting policies and notes form an integral part of these financial statements.

Statement of accounting policies

For the year ended 31 December 2020

Predator Oil & Gas Holdings Plc ("the Company") and its subsidiaries (together "the Group") are engaged principally in a CO2 EOR operations and C02 sequestration business in the Republic of Trinidad and Tobago and maintaining an exploration and appraisal portfolio in Ireland and Morocco. The Company's ordinary shares are on the Official List of the UK Listing Authority in the Standard Listing section of the London Stock Exchange.

Predator Oil & Gas Holdings plc was incorporated in 2017 as a public limited company under Companies (Jersey) Law 1991 with registered number 125419. It is domiciled and registered at 3rd Floor, Standard Bank House, 47-49 La Motte Street, St Helier, Jersey, JE2 4SZ, Channel Islands.

Basis of preparation and going concern assessment

The principal accounting policies adopted in the preparation of the financial information are set out below. The policies have been consistently applied throughout the current year and prior year, unless otherwise stated. These financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs and IFRIC interpretations) issued by the International Accounting Standards Board (IASB) as adopted by the European Union and with those parts of the Companies (Jersey) Law, 1991 applicable to companies preparing their accounts under IFRS. The Company has adopted the exemption under Companies (Jersey) Law 1991 Article 105 (11) not to prepare separate accounts.

The consolidated financial statements incorporate the results of Predator Oil & Gas Holdings Plc and its subsidiary undertakings as at 31 December 2020.

The financial statements are prepared under the historical cost convention on a going concern basis. The financial statements of the subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies. All intra-group balances, transactions, income and expenses and profits and losses resulting from intra-group transactions that are recognised in assets, are eliminated in full. Subsidiaries are fully consolidated from the date of acquisition, being the date on which the Group obtains control, and continue to be consolidated until the date that such control ceases.

The preparation of financial statements requires an assessment on the validity of the going concern assumption. At the date of these financial statements the Directors expect that the Group will not require further funding for the Group's corporate overheads; Irish licence interests, Moroccan licence or for the further development of the CO2 EOR pilot project. Post the year end the Group raised £1.785 million gross through a Placing, to supplement funds required for drilling the MOU-1 well in Morocco in the event costs escalated due to COVID-related impositions and to provide additional working capital. The Directors are confident that the Group will be able to raise further funds as and when it considers appropriate to meet requirements over the course of the next 24 months, in cash, from the Group's share of production profits from Trinidad , through the return of US$1 million of the Guercif Bank Guarantee, as debt finance, joint venture or farminee partner equity, share issues or otherwise. Failing the success of these fund-raising activities the Directors will be prepared to accept appropriate reductions in their remuneration to conserve cash resources. 

Change in Accounting Policies

At the date of approval of these financial statements, certain new standards, amendments and interpretations have been published by the International Accounting Standards Board but are not as yet effective and have not been adopted early by the Group.  All relevant standards, amendments and interpretations will be adopted in the Group's accounting policies in the first period beginning on or after the effective date of the relevant pronouncement.

The Directors do not anticipate that the adoption of these standards and interpretations, or any of the amendments made to existing standards as a result of the annual improvements cycle, will have a material effect on the financial statements in the year of initial application.

Standards and amendments to existing standards effective 1 January 2020

- Amendments to References to the Conceptual Framework in IFRS Standards - effective 1 January 2020.

- Amendments to IAS 1 and IAS 8: Definition of Material - effective 1 January 2020.

These amendments do not have a material effect on the financial statements of the Group.

New Standards, amendments and interpretations effective after 1 January 2020 and have not been early adopted

The standards and interpretations that are issued, but not yet effective, up to the date of issuance of the financial statements are listed below. The Group and Company intend to adopt these standards, if applicable, when they become effective. These are summarised below:

Amendments to IAS 1: Classification of Liabilities as Current or Non-current: t he amendments clarify that the classification of liabilities as current or non-current should be based on rights that are in existence at the end of the reporting period, and refer to the "right" to defer settlement by at least twelve months. They make explicit that only rights in place "at the end of the reporting period" should affect the classification of a liability. The amendments clarify that classification is unaffected by expectations about whether an entity will exercise its right to defer settlement of a liability, and clarify that settlement refers to the transfer to the counterparty of cash, equity instruments, other assets or services. Issued 23 January 2020, applies to accounting periods beginning on or after 1 January 2022, subject to EU endorsement.

Amendment to IAS 1: Classification of Liabilities as Current or Non-current - Deferral of Effective Date: the amendment defers the effective date of the January 2020 amendments to IAS 1 by one year to annual reporting periods beginning on or after 1 January 2023. Issued 15 July 2020, applies to accounting periods beginning on or after 1 January 2023 with early application of the January 2020 amendments permitted, subject to EU endorsement.

Amendments to IFRS 3: Business Combinations - reference to the Conceptual Framework: The changes in Reference to the Conceptual Framework (Amendments to IFRS 3) update IFRS 3 so that it refers to the 2018 Conceptual Framework instead of the 1989 Framework. They also add to IFRS 3 a requirement that, for transactions and other events within the scope of IAS 37 or IFRIC 21, an acquirer applies IAS 37 or IFRIC 21 (instead of the Conceptual Framework) to identify the liabilities it has assumed in a business combination. Lastly, they add to IFRS 3 an explicit statement that an acquirer does not recognise contingent assets acquired in a business combination. Issued 14 May 2020, applies for annual periods beginning on or after 1 January 2020, with early application permitted if an entity also applies all other updated references at the same time or earlier, subject to EU endorsement.

Annual Improvements to IFRS Standards 2018-2020: The pronouncement contains amendments to four International Financial Reporting Standards (IFRSs) as result of the IASB's annual improvements project:

· IFRS 1 First-time Adoption of International Financial Reporting Standards: subsidiary as a first-time adopter - The amendment permits a subsidiary that applies paragraph D16(a) of IFRS 1 to measure cumulative translation differences using the amounts reported by its parent, based on the parent's date of transition to IFRSs.

· IFRS 9 Financial Instruments - fees in the '10 per cent' test for derecognition of financial liabilities - The amendment clarifies which fees an entity includes when it applies the '10 per cent' test in IFRS 9 in assessing whether to derecognise a financial liability. An entity includes only fees paid or received between the entity (the borrower) and the lender, including fees paid or received by either the entity or the lender on the other's behalf.

· IFRS 16 Leases - Lease incentives - the amendment to Illustrative Example 13 accompanying IFRS 16 removes from the example the illustration of the reimbursement of leasehold improvements by the lessor in order to resolve any potential confusion regarding the treatment of lease incentives that might arise because of how lease incentives are illustrated in that example. Issued 14 May 2020, applicable for annual periods beginning on or after 1 January 2022 with early application permitted in respect of IFRS 1, IFRS 9, and IAS 41. The amendment to IFRS 16 only regards an illustrative example, so no effective date is stated. All subject to EU endorsement.

The Group has not early adopted any of the above standards and the directors are assessing the impact on future financial statements. There are no other IFRS or IFRIC interpretations that are not yet effective that would be expected to have a material impact on the Group.

Areas of estimates and judgement

The preparation of the Group's financial statements in conformity with generally accepted accounting principles requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Although these estimates are based on management's best knowledge of current events and actions, actual results may ultimately differ from those estimates. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities in the next financial year are discussed below:

a) Going concern

The Group's going concern is detailed above.

b) Recoverability of loan

The Group entered into an agreement with FRAM Exploration Trinidad Limited ("FRAM"), a wholly-owned subsidiary of Bahamas Petroleum Plc, who are listed on AIM.

The FRAM Loan is recovered from a share of revenues generated by FRAM from oil sales based on the production profile and oil price. At lower oil prices and  lower production rates the loan will take longer to be recovered as their share of revenues will be lower. Under the legally binding WPA, Predator is entitled to its share of revenue earned from all oil sales made by FRAM until cost recovery of all Predator's costs, inclusive of the FRAM Loan, expended on the Project. Share of revenue is defined as sales from all oil barrels made by FRAM less agreed costs defined in the WPA.

Management have concluded that the loan remains recoverable and that there is no impairment required at the reporting date as the project is still in the early stages of production.  

c) Useful lives of property, plant & equipment

Property, plant and equipment are depreciated over their useful economic lives. Useful economic lives are based on management's estimates of the period that the assets will be in operational use, which are periodically reviewed for continued appropriateness. More details, including carrying values, are included in note 10 to the financial statements.

d) Share based payments

The Group has applied the requirements of IFRS 2 Share-based Payment for all grants of equity instruments.

The Group operates an equity settled share option scheme for directors. The increase in equity is measured by reference to the fair value of equity instruments at the date of grant. The liabilities assumed under these arrangements convert into shares in the parent company, under an option arrangement. The fair value of the service received in exchange for the grant of options and warrants is recognised as an expense. Equity-settled share-based payments are measured at fair value (excluding the effect of non-market based vesting conditions) at the date of grant. The fair value determined at the grant date of equity-settled share-based payment is expensed on a graded vesting basis over the vesting period, based on the Group's estimate of shares that will eventually vest, and adjusted for the effect of non-market based vesting conditions.

During the year the Company issued warrants in lieu of fees to stockbrokers.  The warrant agreements do not contain vesting conditions and therefore the full share-based payment charge, being the fair value of the warrants using the Black-Scholes model, has been recorded immediately. A charge was recorded against share premium as a transaction cost. The valuation of these warrants involves making a number of estimates relating to price volatility, future dividend yields and continuous growth rates (see Note 19).

The fair value of these share options is estimated by using the Black Scholes model on the date of grant based on certain assumptions. Those assumptions are described in note 19 and include, among others, the expected volatility and expected life of the options. 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 market price used in the model is the issue price of the Company's shares at the last placement of shares immediately preceding the calculation date.  Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period.

Where equity instruments are granted to persons or entities other than staff, the fair value of goods and services received is charged to profit or loss, except where it is in respect to costs associated with the issue of shares, in which case, it is charged to the share premium account.

The fair values calculated are inherently subjective and uncertain due to the assumptions made and the limitation of the calculations used. Further details of the specific amounts concerned are given in note 19.

Basis of consolidation

Where the Group has control over an investee, it is classified as a subsidiary. The Group controls an investee if all three of the following elements are present: power over the investee, exposure to variable returns from the investee, and the ability of the investor to use its power to affect those variable returns. Control is reassessed whenever facts and circumstances indicate that there may be a change in any of these elements of control.

The consolidated financial statements present the results of the Company and its subsidiaries ("the Group") as if they formed a single entity. Inter-company transactions and balances between Group companies are therefore eliminated in full. Uniform accounting policies are applied across the Group.

The consolidated financial statements incorporate the results of business combinations using the acquisition method. In the statement of financial position, the acquirer's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date on which control ceases.

Financial assets

The Financial assets currently held by the Group and Company are classified as loans and receivables and cash and cash equivalents. These assets are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are initially recognised at fair value plus transaction costs that are directly attributable to their acquisition or issue and are subsequently carried at amortised cost using the effective interest rate method less provision for impairment. The loans receivable from FRAM disclosed in note 12 are dependent on future oil production and are therefore outside of the scope of IFRS 9 Expected Credit Losses.

Impairment provisions are recognised when there is objective evidence (such as significant financial difficulties on the part of the counterparty or default or significant delay in payment) that the Group will be unable to collect all of the amounts due under the terms receivable, the amount of such a provision being the difference between the net carrying amount and the present value of the future expected cash flows associated with the impaired receivable. For receivables, which are reported net, such provisions are recorded in a separate allowance account with the loss being recognised within administrative expenses in the statement of comprehensive income. On confirmation that the receivable will not be collectable, the gross carrying value of the asset is written off against the associated provision.

Cash and cash equivalents

These amounts comprise cash on hand and balances with banks. Cash equivalents are short term, highly liquid accounts that are readily converted to known amounts of cash. They include short-term bank deposits and short-term investments.

Any cash or bank balances that are subject to any restrictive conditions, such as cash held in escrow pending the conclusion of conditions precedent to completion of a contract, are disclosed separately as "Restricted cash". The security deposit is recognised within trade and other receivables in note 12.

There is no significant difference between the carrying value and fair value of receivables.

Derecognition

The Group derecognises a financial asset when the contractual rights to the cash flow from the asset expire, or it transfers the asset and substantially all the risk and rewards of ownership of the asset to another entity.

Financial liabilities

The Group's financial liabilities consist of trade and other payables (including short terms loans) and long term secured borrowings. These are initially recognised at fair value and subsequently carried at amortised cost, using the effective interest method.  All interest and other borrowing costs incurred in connection with the above are expensed as incurred and reported as part of financing costs in profit or loss. Where any liability carries a right to convertibility into shares in the Group, the fair value of the equity and liability portions of the liability is determined at the date that the convertible instrument is issued, by use of appropriate discount factors.

Derecognition

The Group derecognises a financial liability when the obligations are discharged, cancelled or they expire.

Foreign currency

The functional currency of the Group and all of its subsidiaries is the British Pound Sterling.

Transactions entered into by the Group entities in a currency other than the currency of the primary economic environment in which it operates (the "functional currency") are recorded at the rates ruling when the transactions occur. Foreign currency monetary assets and liabilities are translated at the rates ruling at the date of the statement of financial position.  Exchange differences arising on the retranslation of unsettled monetary assets and liabilities are similarly recognised immediately in profit or loss, except for foreign currency borrowings qualifying as a hedge of a net investment in a foreign operation.

The exchange rates applied at each reporting date were as follows:

31 December 2020	£1: US$1.3642 and £1: Euro1.1089
31 December 2019	£1: US$1.3111 and £1: Euro1.1701

Investments in subsidiaries

The Group's investment in its subsidiaries are recorded at cost.

Plant and equipment

The only assets the Group currently has are personal computers.

Depreciation is provided on equipment so as to write off the carrying value of items over their expected useful economic lives. It is applied at the following rates:

Computer equipment

20% per annum, straight line

Share options and Equity Instruments

Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period.  Where equity instruments are granted to persons other than consultants, the fair value of goods and services received is charged to profit or loss, except where it is in respect to costs associated with the issue of shares, in which case, it is charged to the share capital or share premium account.

Taxation

The Company and all subsidiaries ('the Group') are registered in Jersey, Channel Islands and are taxed at the Jersey company standard rate of 0%. However, the Group's projects are situated in jurisdictions where taxation may become applicable to local operations.

The major components of income tax on the profit or loss include current and deferred tax.

Current tax

Current tax is based on the profit or loss adjusted for items that are non-assessable or disallowed and is calculated using tax rates that have been enacted or substantively enacted by the reporting date.

Tax is charged or credited to the statement of comprehensive income, except when the tax relates to items credited or charged directly to equity, in which case the tax is also dealt with in equity.

Deferred tax

Deferred tax assets and liabilities are recognised where the carrying amount of an asset or liability in the statement of financial position differs to its tax base, except for differences arising on:

• The initial recognition of an asset or liability in a transaction which is not a business combination and at the

  time of the transaction affects neither accounting or taxable profit; and

• Investments in subsidiaries and jointly controlled entities where the Group is able to control the timing of the

  reversal of the difference and it is probable that the differences will not reverse in the foreseeable future.

Recognition of deferred tax assets is restricted to those instances where it is probable that taxable profit will be available against which the difference can be utilised.

The amount of the asset or liability is determined using tax rates that have been enacted or substantively enacted by the reporting date and are expected to apply when deferred tax liabilities/ (assets) are settled/ (recovered). Deferred tax balances are not discounted.

The Group currently does not hold any deferred tax asset or liability.

Notes to the financial statements

For the year ended 31 December 2020

1	Segmental analysis
	The Group operates in one business segment, the exploration, appraisal and development of oil and gas assets. The Group has interests in three geographical segments being Africa (Morocco), Europe (Ireland) and the Caribbean (Trinidad and Tobago)
	The Group's operations are reviewed by the Board (which is considered to be the Chief Operating Decision Maker ('CODM')) and split between oil and gas exploration and development and administration and corporate costs.
	Exploration and development is reported to the CODM only on the basis of those costs incurred directly on projects.
	Administration and corporate costs are further reviewed on the basis of spend across the Group.
	Decisions are made about where to allocate cash resources based on the status of each project and according to the Group's strategy to develop the projects.  Each project, if taken into commercial development, has the potential to be a separate operating segment.  Operating segments are disclosed below on the basis of the split between exploration and development and administration and corporate.
	Year ended 31 December 2020	Europe		Caribbean		Africa		Corporate
		£'000		£'000		£'000		£'000
	Gross loss
	Administrative and overhead expenses	(128)		(187)		(235)		(914)
	Share options and warrant expense	-		-		-		-
	Finance expense	-		-		-		(225)
	(Loss) for the year from continuing operations	(128)		(187)		(235)		(1,139)
	Non-current assets	-		-		-		6
	Current assets	2		512		1,108		1,282
	Total assets	2		512		1,108		1,288
	Total liabilities	(1)		(14)		(3)		(65)
	Year ended 31 December 2019	Europe		Caribbean		Africa		Corporate
		£'000		£'000		£'000		£'000
	Gross Loss
	Administrative and overhead expenses	(46)		(159)		(163)		(742)
	Share options and warrant expense	-		-		-		(93)
	Finance expense	-		-		-		(75)
	(Loss) for the year from continuing operations	(46)		(159)		(163)		(910)
	Total assets	33		239		1,150		76
	Total liabilities	(1)		(4)		(7)		(1,187)

						2020		2019
						Group		Group
2	Group loss from operations					£'000		£'000
	Operating  loss is stated after charging/(crediting):
	Auditors remuneration (note 3)					23		53
	Depreciation					2		1
	Share option expense					102		93
	Foreign exchange loss					105		27

						2020		2019
						Group		Group
3	Auditors remuneration					£'000		£'000
	Audit of the accounts of the Group					23		23
	Other services					-		30
						-		53

						2020		2019
						Group		Group
4	Administration expenses					£'000		£'000
	Administration fees					81		84
	Design, publishing, presentation and printing fees					15		10
	Audit fee					23		23
	Annual return fee					1		1
	Non-executive director fees					74		70
	Share based payments - options					102		93
	Share based payments - warrants					100		-
	Insurance					11		8
	Legal and professional fees					86		81
	Listing costs					155		251
	Website costs					3		13
	Licencing options					-		8
	Directors fees					161		144
	Technical Consultancy fees					286		262
	Project costs					150		-
	Travel expenses					37		94
	Computer/system costs/IT support					23		3
	Conferences and exhibitions					-		2
	Bank charges					42		26
	Depreciation					2		1
	Sundry expenses					1		3
	Foreign exchange					105		27
	Formation costs					3		-
	Accountancy fees					3		-
						1,464		1,204

							2020			2019
							Group			Group
5	Finance costs						£'000			£'000
	Loan interest paid						17			-
	Loan redemption fees						112			-
	Amortisation of transaction costs						96			75
							225			75
								2020			2019
								Group			Group
6	Taxation							£'000			£'000
	Loss on ordinary activities before tax							(1,690)			(1,279)
	Loss on ordinary activities at Jersey standard 0% tax (2019 : 0%)							-			-
	Tax charge for the year							-			-
	No deferred tax asset or liability has been recognised as the Standard Jersey corporate tax rate is 0%.

						2020		2019
						Group		Group
7	Personnel					£'000		£'000
	Consultancy fees					521		477
	Share based payments					102		93
						623		570
	The average number of personnel (including directors) during the year was:
	Management					4		5
						4		5
	Four Directors at the end of the period have share options receivable under long term incentive schemes. The highest paid Director received an amount of £178,200 (2019: £150,310). The Group does not have employees. All personnel are engaged as service providers

						2020		2019
8	Earnings per share					Group		Group
	Weighted average number of shares					209,959,715		104,261,956
	Loss for the year (£'000)					(1,690)		(1,279)
	Earnings per share basic and diluted (pence)					(0.8)		(1.2)
	Dilutive loss per Ordinary Share equals basic loss per Ordinary Share as, due to the losses incurred in 2020 and 2019, there is no dilutive effect from the subsisting share options

9	Loss for the financial year
	The Group has adopted the exemption in terms of Companies (Jersey) law 1991 and has not presented its own income statement in these financial statements.

10	Property, plant and equipment							£
	Cost
	At 31 December 2019							8,708
	Additions							842
	Disposals							(999)
	At 31 December 2020							8,551
	Amortisation
	At 31 December 2019							1,550
	Disposals							(233)
	Charge for the year							1,642
	At 31 December 2019							2,959
	Carrying amount
	At 31 December 2019							7,158
	At 31 December 2020							5,592

11	Investment in subsidiaries					2020		2019
						Group		Group
						£'000		£'000
	Cost at the beginning of the year					537		537
	Additions during the year					-		-
						537		537
	The principal subsidiaries of Predator Oil and Gas Holdings Plc, all of which are included in these consolidated Annual Financial Statements, are as follows:
		Country of registration		Class		Proportion held by Group		Nature of business
	Predator Oil and Gas Ventures Limited	Jersey		Ordinary		100%		Licence option offshore Ireland
	Predator Oil & Gas Trinidad Limited	Jersey		Ordinary		100%		Profit rights for production revenues from a CO2 enhanced oil recovery project
	Predator Gas Ventures Limited	Jersey		Ordinary		100%		Exploration licence onshore Morocco
	Predator LNG Ireland Limited	Jersey		Ordinary		100%		Licence application to import liquified natural gas
	The registered address of all of the Group's companies is at 3rd Floor, Standard Bank House, 47-49 La Motte Street, St. Helier, Jersey, JE2 4SZ, Channel Islands

12	Trade and other receivables					2020		2019
						Group		Group
						£'000		£'000
	Current
	Loans receivable					468		201
	Security deposit (US$1,500,000)					1,100		1,144
	Prepayments and other debtors					10		36
						1,578		1,381
	Loans receivable relates to a loan of £468,211 effected to FRAM Exploration Trinidad Limited ('FRAM') in respect of the CO2 EOR project comprising USD338,796 advanced as cash and USD299,936 advanced as equipment. The loans are denominated in US Dollars, unsecured, interest free and repayable at the discretion of Predator Oil & Gas Trinidad Limited provided not less than one week's notice is given. The CO2 EOR project is expected to progress to the next stage of development in 2021 and ultimately to full production status at which time the aforesaid loan is likely to be recovered in terms of a Well Participation Agreement with FRAM dated 17 November 2017.
	A security deposit of $1,500,000 is held by Barclays Bank in respect of a guarantee provided to Office National des Hydrocarbures et des Mines (ONHYM) as a condition of being granted the Guercif exploration licence. These funds are refundable in two tranches on the completion of the Minimum Work Programme set out in the terms of the Guercif Petroleum Agreement and Association Contract.
	Prepayments are in respect of amounts paid in advance to the Financial Conduct Authority, media service providers and an insurance premium. These amounts are expensed between 60 and 120 days and are denominated in Pounds Sterling.
	There are no material differences between the fair value of trade and other receivables and their carrying value at the year end.

13	Cash and cash equivalents					2020		2019
						Group		Group
						£'000		£'000
	Royal Bank of Scotland International Limited					1,317		110
	Barclays Bank Plc					9		-
						1,326		110

14	Trade and other payables					2020		2019
						Group		Group
						£'000		£'000
	Current
	Loans payable					-		37
	Trade payables					83		54
	Accrued expenses					-		188
						83		279
	All payables are required to be settled within 30 days.

15	Financial instruments - risk management
	Details of the significant accounting policies in respect of financial instruments are disclosed on above. The Group's financial instruments comprise cash and items arising directly from its operations such as other receivables, trade payables and loans.
	Financial risk management
	The Board seeks to minimise its exposure to financial risk by reviewing and agreeing policies for managing each financial risk and monitoring them on a regular basis. No formal policies have been put in place in order to hedge the Group's activities to the exposure to currency risk or interest risk; however, the Board will consider this periodically.
	The Group is exposed through its operations to the following financial risks:
	•Credit risk
	• Market risk (includes cash flow interest rate risk and foreign currency risk)
	• Liquidity risk
	The policy for each of the above risks is described in more detail below.
	The principal financial instruments used by the Group, from which financial instruments risk arises are as follows:
	•Receivables
	•Cash and cash equivalents
	•Trade and other payables (excluding other taxes and social security)
	•Loans: payable within one year and payable in more than one year
	The table below sets out the carrying value of all financial instruments by category and where applicable shows the valuation level used to determine the fair value at each reporting date.  The fair value of all financial assets and financial liabilities is not materially different to the book value.
						2020		2019
						£'000		£'000
	Loans and receivables
	Cash and cash equivalents					1,326		110
	Trade and other receivables					1,578		1,381
	Other liabilities
	Trade and other payables (excluding short term loans)					83		266
	Loans payable within one year					-		38
						-		918
	Credit risk
	Financial assets, which potentially subject the Group to concentrations of credit risk, consist principally of cash, short-term deposits and other receivables. Cash balances are all held at recognised financial institutions. Other receivables are presented net of allowances for doubtful receivables.  Other receivables currently form an insignificant part of the Group's business and therefore the credit risks associated with them are also insignificant to the Group as a whole.
	The Group has a credit risk in respect of inter-company loans to subsidiaries. The Company is owed £2,507,110 by its subsidiaries. The recoverability of these balances is dependent on the commercial viability of the exploration activities undertaken by the respective subsidiary companies. The credit risk of these loans is managed as the Directors constantly monitor and assess the viability and quality of the respective subsidiary's investments in intangible oil and gas assets.
	Maximum exposure to credit risk
	The Group's maximum exposure to credit risk by category of financial instrument is shown in the table below:
		2020		2020		2019		2019
		carrying		maximum		carrying		maximum
		value		exposure		value		exposure
		£'000		£'000		£'000		£'000
	Cash and cash equivalents	1,326		3,327		110		1,160
	Receivables	1,578		1,578		1,381		1,381
	Loans and borrowings	-		-		956		956
	The holding company's maximum exposure to credit risk by class of financial instrument is shown in the table below:
		2020		2020		2019		2019
		carrying		maximum		carrying		maximum
		value		exposure		value		exposure
		£'000		£'000		£'000		£'000
	Cash and cash equivalents	1,271		3,272		110		110
	Receivables	1,578		1,578		1,381		1,381
	Loans to Group Companies	2,507		2,507		1,958		1,958
	Market risk
	Cash flow interest rate risk
	The Group has adopted a non-speculative policy on managing interest rate risk.  Only approved financial institutions with sound capital bases are used to borrow funds and for the investments of surplus funds.
	The Group seeks to obtain a favourable interest rate on its cash balances through the use of bank deposits. The Group's bank did not pay interest on cash balances during the year, therefore the Group is not currently affected by interest rate changes. At 31 December 2020, the Group had a cash balance of £1.326 million (2019: £0.110 million) which was made up as follows:
						2020		2019
						£'000		£'000
	Sterling					165		85
	United States Dollar					1,161		25
						1,326		110
	The Group had no interest bearing debts at the year end (2019: £37,500).
	Foreign currency risk
	Foreign exchange risk is inherent in the Group's activities and is accepted as such. The majority of the Group's expenses are denominated in Sterling and therefore foreign currency exchange risk arises where any balance is held, or costs incurred, in currencies other than Sterling. At 31 December 2020 and 31 December 2019, the currency exposure of the Group was as follows:
				Sterling		US Dollar		Total
				£'000		£'000		£'000
	at 31 December 2020
	Cash and cash equivalents			165		1,161		1,326
	Trade and other receivables			13		1,565		1,578
	Trade and other payables			83		-		83
	at 31 December 2019
	Cash and cash equivalents			85		25		110
	Trade and other receivables			36		1,345		1,381
	Trade and other payables			304		-		304
	Loans re-payable after one year			918		-		918
	Liquidity risk
	Any borrowing facilities are negotiated with approved financial institutions at acceptable interest rates. All assets and liabilities are at fixed and floating interest rate. The Group seeks to manage its financial risk to ensure that sufficient liquidity is available to meet the foreseeable needs both in the short and long term. See also references to Going Concern disclosures in the Strategic Report.
	Capital
	The objective of the Directors is to maximise shareholder returns and minimise risks by keeping a reasonable balance between debt and equity. At 31 December 2020 the Group had no debt (2019: £955,906).

						Number of shares		Nominal value
16	Share capital
	Issued and fully paid
	Opening Balance					108,172,169		2,346,336
	28 February 2020
	Share issue					89,000,000		3,560,000
	7 April 2020
	Share issue					4,875,000		195,000
	8 April 2020
	Loan note conversion					5,267,118		73,500
	13 May 2020
	Loan note conversion					5,217,462		104,475
	20 May 2020
	Loan note conversion					4,707,926		104,475
	29 May 2020
	Share issue					22,438,842		448,778
						239,678,517		6,832,564

17	Non-Current liability					2020		2019
						Group		Group
						£'000		£'000
	Arato Global Opportunities LLC
	Brought forward					918		-
	Drawdowns					-		1,500
	Redemptions					(1,015)		(485)
	Transaction costs					-		(97)
	Amortisation of transaction costs					97		-
						-		918
	The Company entered into a Convertible Loan Note Instrument with Arato Global Opportunities LLC on 15 February 2019 for £1,500,000, the nominal amount of each note was £1.00 and could be increased to £1,750,000.  The notes were converted at 105% in multiples of £50,000 at a conversion price per ordinary share being 90% of the VWAC for the 2 trading days preceding the conversion, and to the extent not already redeemed or converted  were to be redeemed in full the earlier of 15 February 2021 or in the event of default.
	The loan notes carried no coupon and were repayable at a premium of 5%. A fee of 10% of the principal amount applied if the loan notes were not converted into equity prior to 15 February 2021. The lender was issued with 2,083,333 warrants at an exercise price of 12p with a vesting period of two years. Novum Securities Limited, the arranger of the convertible loan notes, was issued with 2,000,000 in warrants on the same terms.
	The fair value of the 4,083,333 warrants was determined at £81,384.
	Novum Securities Limited was paid a £90,000 placement fee for the Convertible Loan Note Instrument. The total transaction cost of £171,384 was accounted for in terms of IFRS9 was offset against the carrying value of the Convertible Loan Note and amortised according to the effective interest rate method giving rise to a £96,594 charge to the income statement during the year.
	During the year loan notes with a value of £269,000 were converted to shares. The remaining balance of the loan of £746,000 was repaid in cash on 15 May 2020.

18	Other reserves
						2020		2019
	Share based payments reserve					Group		Group
						£'000		£'000
	Balance brought forward					256		82
	Issue of warrants					101		81
	Fair value movement of share options					102		93
	Balance carried forward					459		256
19	Share based payments
	Warrant and share option expense					2020		2019
						£		£
	Warrant and share option expense:
	- in respect of remuneration contracts					102		93
	- in respect of financing arrangements					100		81
						202		174

Share Options
The Group operates a share option plan for directors.  Details of share options granted are noted below.
On 24 May 2018 both Paul Griffiths and Ron Pilbeam were granted share options each of 4,005,486 exercisable at £0.028 each and Steve Staley and Sarah Cope were granted share options each of 1,001,370 exercisable at £0.028 each.  The options are subject to the following vesting conditions:
1/3 of the option shares 3,337,904 on gross production from the wells drilled under the Well Participation Agreement Predator Oil and Gas Ventures Limited and FRAM Exploration Trinidad Limited of 50 BOPD (measured over a consecutive 30 day period)
1/3 of the option shares 3,337,904 on incremental gross production from a Pilot C02 test of 300 BOPD (measured over a consecutive 30 day period)
1/3 of the option shares 3,337,904 on incremental total gross production from wells for which the Company receives revenues of 1,000 BOPD (measured over a consecutive 30 day period)
Each option shall lapse 5 years after the date on which it vests, assuming it is not exercised before then and no event occurs to cause it to lapse early.
On 27 October 2020 both Paul Griffiths and Ron Pilbeam were granted share options each of 3,850,000 exercisable at £0.05 each and Steve Staley and Louis Castro were granted share options each of 1,650,000 exercisable at £0.05 each.
In February 2021 vesting requirements for all options held by Executive Directors Paul Griffiths and Ronald Pilbeam became subject to any one of certain targets   being reached as follows:
Injection/sequestration of 600MT Liquid CO2 has been achieved for the CO2 EOR Pilot Project under the Well Participation Agreement between Predator Oil & Gas Trinidad Ltd and FRAM Exploration Trinidad Ltd dated 17 November 2017 and as amended from time to time; OR
A production test at AT-5X has flowed first oil; OR
An average daily increase of 75% in oil production at AT-12 has been achieved over a consecutive period of 30 days  when measured against historical  AT-12 production over the period 1 January to 30 April 2020 immediately prior to the commencement of CO2 injection in the AT-4 Block on 18 May 2020.
Vesting requirements for Non-executive Directors Steve Staley and Louis Castro are subject to the expiration of six months from the date of grant.
The Board is not planning to consider any other components of director remuneration during the year under review.
The Black Scholes model has been used to fair value the options, the inputs into the model were as follows :
Grant date					2018		2020
Share price					£0.028		£0.0325
Exercise price					£0.028		£0.050
Term					5 years		7 years
Expected volatility					400%		400%
Expected dividend yield					0%		0%
Risk free rate					0.80%		-0.09%
Fair value per option					£0.028		£0.0325
Total fair value of the options					£280,382		£357,500
The total share option expense in respect of 2020 is £101,973 (2019: £93,461).

Warrants

On 24 May 2018 the Company granted 2,231,248 warrants to Novum Securities Limited and 160,714 warrants to Optiva Securities Limited in consideration of services provided to the Company pursuant to the terms of the Placing Agreement and conditional upon admission becoming effective.  The warrants may be exercised at £0.028 each in whole or in part at any time and from time to time from the date of their grant until the third anniversary of admission. The total fair value of these warrants was determined as £0.0113 per warrant and a £27,051 reserve was created for the year ended 31 December 2018.

On 15 February 2019 the Company granted 2,083,333 and 2,000,000 warrants respectively to Arato Global Opportunities LLC and Novum Securities Limited pursuant to the Convertible Loan Note ('CLN') agreement. The warrants are exercisable at any time between the date of issue and 15 February 2021 at a subscription price of 12p per share. Expected volatility was determined by reference to the Company's share price since admission to the Standard List of the London Stock Exchange and the year end. The risk-free rate is based on the UK three-year bond yield. The warrant agreements for the aforesaid 4,083,333 do not contain vesting conditions and therefore the full share-based payment charge, being the fair value of the warrants using the Black-Scholes model, has been recorded immediately. A fair value of £81,384 was deemed as a transaction cost in terms of IFRS9 and was offset against the Convertible Loan Note Principal of £1,500,000. In addition, Novum Securities Limited was paid a £90,000 placement fee for the Convertible loan note instrument taking the total CLN transaction cost to £171,384.

On 17 February 2020 the Company granted 1,875,000 and 2,575,000 warrants respectively to Optiva Securities Limited and Novum Securities Limited. The warrants are exercisable at any time between the date of issue and 27 February 2023 at an exercise price of 4p per share.

The warrant agreements for the aforesaid 4,450,000 warrants issued on 17 February 2020 do not contain vesting conditions and therefore the full share-based payment charge, being the fair value of the warrants using the Black-Scholes model, has been recorded immediately.

The valuation of these warrants involves making a number of estimates relating to price volatility, future dividend yields and continuous growth rates.

The Black Scholes model has been used to fair value the options, the inputs into the model were as follows:

	Grant date							17 February 2020
	Share price							£0.043
	Exercise price							£0.040
	Term							3 years
	Expected volatility							80%
	Expected dividend yield							0%
	Risk free rate							0.37%
	Fair value per warrants							£0.023
	Total fair value of the warrants							£100,451

20	Reserves
	Details of the nature and purpose of each reserve within owners' equity are provided below:
	• Share capital represents the nominal value each of the shares in issue.
	• The Other Reserves are included in the Consolidated Statement of Changes in Equity and in the     Consolidated Statement of Financial Position and represent the accumulated balance of share benefit     charges recognised in respect of share options and warrants granted by the Company, less transfers to   retained losses in respect of options exercised or lapsed.
	• The Retained Deficit Reserve represents the cumulative net gains and losses recognised in the Group's   statement of comprehensive income.
	• The Reconstruction Reserve arose through the acquisition of Predator Oil and Gas Ventures Limited.     This entity was under common control and therefore merger accounting was adopted.

21	Related party transactions
	Directors and key management emoluments are disclosed in note 7 and in the Remuneration report.
22	Contingent liabilities and capital commitments
	The Group had at the reporting date no capital commitments or contingent liabilities.
23	Litigation
	The Group is not involved in any litigation.

24

Events after the reporting date

18 January 2021

The Company announced an Operations Update indicating that very encouraging Pilot CO2 EOR results at Inniss-Trinity supported commencing CO2 injection at new rates determined by the results of the Pilot CO2 EOR Project and maintaining these for up to twelve months to reach, by cumulative monthly growth, target plateau production for the Herrera #2 Sand in the AT-4 Block in the range 243 to 547 bopd, in alignment with pre-Pilot CO2 EOR desktop forecasts. The pre-Pilot CO2 EOR success de-risked CO2 EOR in Trinidad and provided the commercial, environmental and technical model for the further expansion of operations.

The Company also indicated that Guercif exploration well planning was targeting a well to be drilled in Q 2 2021.

3 February 2021

The Company noted, in the context of its long-standing applications for successor authorisations to its Corrib South and Ram Head licensing options offshore Ireland, the renewed commitment by the Irish Government to honour existing licences issued by the State for oil and gas.

15  February 2021

The Company announced that the Warrant Instrument with Novum Securities Ltd dated 15 February 2019 granting the right to subscribe in cash for 2,000,000 ordinary shares exercisable at a price per share equal to the subscription price (12p per share)  was being amended to allow the exercise date of the warrants to be extended by one year to the third anniversary of the date of the Warrant Instrument.

Similarly, the Warrant Instruments with Novum Securities Ltd and Optiva Securities Ltd dated 24 May 2018 granting the right to subscribe in cash for 2,231,248 and 160,714 ordinary shares  respectively exercisable at a price per share equal to the subscription price (2.8p per share)  was being amended to allow the exercise date of the warrants to be extended by one year to the third anniversary of the date of the Warrant Instruments.

This is in recognition of the fact that COVID-19 has played a part in extending the Company's original timelines for executing some of its projects.

These existing warrants have previously been factored into the fully diluted share capital of the Company.

The Warrant Instrument with Arato Global Opportunities pursuant to the Convertible Loan Note dated 15 February 2019 granting the right to subscribe in cash for 2,000,000 ordinary shares exercisable at a price per share equal to the subscription price (12p per share) has expired without the warrants being exercised resulting in a reduction of the Company's fully diluted share capital. 

Well swab tests and investigations in the AT-4 Block at Inniss-Trinity confirmed the potential for realising pre-injection desktop production plateau forecasts in the range 243 -547 bopd from Herrera #2 Sand.

The Company also announced that the MOU-1 well pad construction was scheduled to be prepared for April 2021.

12 March 2021

The Company announced that it had conditionally placed 17 million new ordinary shares of no par value in the Company at a placing price of 10.5 pence each to raise £1,785,000 (before expenses).

Timing of the MOU-1 Moroccan exploration well was reconfirmed as being scheduled for Q2 2021 and that some of the placing funds were to provide a contingency for the increase in certain MOU-1 well costs occasioned by the 12-month long COVID-19 pandemic leading to the additional expense burden to re-mobilise services and equipment previously immediately available in Morocco.

Further expansion of the Inniss-Trinity C02 EOR project was being considered and new business development opportunities were progressing.

Potential for developing an integrated project plan designed to help meet security of energy supply concerns; options for CO2 sequestration; and options for back-up power for data centres using greener energy was outlined.

The potential for utilising the Ram Head gas discovery in the Celtic Sea, still the subject of the Company's application for a successor authorisation, for gas storage and security of supply and in the longer term for C02 sequestration was outlined in the context of a coordinated infrastructure project with green energy options.

17 March 2021

The Company announced that it had received an exercise notice in respect of warrants issued pursuant to a warrant agreement with the Company dated 24 May 2018 (in connection with the Placing carried out by the Company in May 2018 on admission of the Company to the Official List (standard listing segment) of the London Stock Exchange's main market for listed securities ) to subscribe for 267,750 new shares of no par value each in the Company at 2.8p per share following receipt of the aggregate £7,497 subscription price. 

18 March 2021

The Company announced scoping development and operating costs for a pilot Compressed Natural Gas ("CNG") Project at Guercif in Morocco based on a 10 mm cfgpd profile for 10 years, net capital costs to the Company of £8.2 to 8.6 million and estimated operating costs of US$2.79 to 4.24/mcf with an example net-back of US$7.21/mcf after taxes based on a sales price to the Moroccan industrial market of US$ 10 to 12/mcf.

In the context of the Company's Floating Storage and Regasification  Unit  ("FSRU") and LNG project offshore Ireland, the Company announced that it is making a submission to the Public Consultation on the expert advisory group report entitled "Expanding Ireland's Marine Protected Area Network", published by the Department of Housing, Local Government and Heritage. Deadline for submissions is 30 July 2021. This will be in conjunction with the Company applying for Marine Area Consent for the FSRU project.

25  March 2021

The Company announced that further to its announcement of 12 March 2021, that it did not have sufficient headroom to enable the issue and admission of all of the 17,000,000 Placing Shares which are required to be issued pursuant to the Placing without the production of an FCA approved prospectus. The Company is therefore issuing 5,215,155 new ordinary shares (up to its existing headroom) and for a director, Paul Griffiths, to make up the shortfall with a transfer of 11,784,845 existing shares held by him to Novum Securities.

When the Company has the ability to issue further shares it intends to issue Paul Griffiths 11,784,845 new Ordinary Shares and will take all necessary steps required in order to make the necessary listing and admission hearing applications.  This will put Paul Griffiths back into the position that existed, in terms of his aggregate shareholding in the Company, had he not made the transfer of Ordinary Shares. For the avoidance of doubt the transfer of shares to Novum Securities Ltd from Paul Griffiths involves no consideration being paid to Paul Griffiths.

Corporate information

Directors  Paul   Stanard   Griffiths (Executive Director - CEO)
Ronald Pilbeam (Executive Director)

   Carl Kindinger  (resigned 29 June 2020)

   Louis Castro (appointed 13 July 2020)

Dr George Henry Stephen Staley (Non-Executive Chairman)  

  Company Secretary Oak Secretaries (Jersey) Limited 

  3rd   Floor,   Standard   Bank   House  

  47   - 49 La Motte Street

                                                                                                   St. Helier

Jersey JE2 4SZ

Registered   Office                                                                   3rd Floor, Standard Bank House 

  47   - 49 La Motte Street

                                                                                                   St. Helier

Jersey JE2 4SZ

  Telephone [phone]

Joint   Broker and Placing Agent Novum Securities Limited 

  Lansdowne House

 57 Berkeley Square  

  London   W1J 6ER

Joint   Broker and Placing Agent                                            Optiva Securities Limited

                                                                                                   49   Berkeley Square London W1J 5AZ

Auditors                                                                                    PKF   Littlejohn   LLP

15 Westferry Circus Canary Wharf

London   E14 4HD

Legal   advisers   to  the   Group as to English law        Charles   Russell Speechlys LLP
                                                                                                  5 Fleet Place
                                                                                                 London   EC4M 7RD

Legal   advisers   to   the   Group as to Jersey law                  Pinel   Advocates
                                                                                                7 Castle Street St. St. Helier
                                                                                                Jersey JE2 3B  

Competent   Person                                                                 SLR Consulting (Ireland) Ltd 

                                                              7 Dundrum Business Park 

                                                                Windy   Arbour

Dublin   14,   D14   N2Y7  

Republic   of   Ireland

Registrar  Computershare   Investor   Services   (Jersey)   Limited

                                                                                                   Queensway House

Hilgrove Street

St. Helier

Jersey JE1 1ES

 Financial PR                                                                               Flagstaff Strategic and Investor Communications

1   King Street 

London   EC2V 8AU

Principal Bankers  The Royal Bank of Scotland International Limited

P.O.   Box 64

Royal   Bank House 71 Bath Street

St.   Helier 

Jersey JE4 8PJ

Barclays Bank Plc
13 Library Place

St. Helier
Jersey JE4 8NE

 

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