Final Results

RNS Number : 4075J

San Leon Energy PLC

30 June 2011

 



Thursday 30 June 2011

San Leon Energy Plc

Final audited results for year ended 31 December 2010

San Leon Energy plc ("San Leon", "Group" or the "Company"), the AIM listed company focused on oil and gas exploration in Europe and North Africa today announces its audited final results for the year ended 31 December 2010.

2010 Highlights:

Financial:

· Raised US$93 million (GBP £59.6m) via an equity placing

· Loss for the year decreased to €3.98m (2009: €5.52m) with a resulting decrease in loss per share to 1.02 cent per share (2009: 1.92 cent per share).

· Administrative expenses decreased to €4.21m (2009: €5.08m)

· Group net assets increased by  €88.2m to €121.23m (2009: €33.03m)

· Cash balances of €67.17m at 31 December 2010 (2009: €1.98m)

Operational:

· Signed Farm-in Agreement with Talisman across Baltic Basin acreage

· Awarded 1,167 km² Nida Concession, Poland

· Awarded 603 km² Szczawno Concession, Baltic Basin, Poland

· Completed 300 km² 3D seismic acquisition programme, offshore Ireland

· Awarded expansion to the Gdansk W Concession, Baltic Basin, Poland

· Acquired Gora, Winsko and Rawicz Concessions totalling 1,314 km², Southern Permian Basin, Poland

· Commenced 480 km² Baltic Basin 2D seismic acquisition programme

· Signed Iraq Joint Venture Agreement with Al Meinaa Oil Services Company

Corporate:

· Completed acquisition of Island Oil & Gas Plc

· Appointed Macquarie Capital (Europe) Limited as corporate broker

Outlook:

· Drilling up to 13 wells in 2011

· Three well drilling programme commencing in Q3 2011 on Baltic Basin acerage

· First of a three well programme targeting conventional oil in Poland will be drilled in Q3 2011

· Drilling of two wells at Tarfaya Oil Shale project began in Q2 2011, a third well is currently being planned

· 1,200 km 2D seismic survey to be acquired over Tarfaya and Zag licences - expected to be completed by the end of 2011

· Acquiring 220 km²  of 3D seismic over Barryroe licensing option

· Seeking Farm-in partners to drill wells / acquire seismic data on Atlantic Margin licences

· Established seismic acquisition Company - Novaseis Sp.z o.o.

· Joint Participation Agreement signed in March 2011 with Governorate Council of Karbala in central Iraq

Oisin Fanning, Chairman of San Leon, commented:

"Throughout 2010, the board raised significant finance to fund our operations.  These financing efforts culminated in the successful US$93m (£59.6m) equity placing in December 2010. This placing marked a sea change in the financial position of the Group and provides sufficient resources to fund our comprehensive planned work programme, across our portfolio, over the next 18 months. We have delivered on our stated objectives to date and now have an extensive drilling campaign ahead of us which will continue to generate significant value for our shareholders."

Enquiries to:

San Leon Energy plc

Oisin Fanning, Executive Chairman

John Buggenhagen, Director of Exploration

Macquarie Capital (Europe) Limited

[phone]

John Dwyer

Paul Connolly

Ben Colegrave

Fox-Davies Capital Limited

[phone]

David Porter

Arbuthnot Securities Limited

Nominated Adviser

[phone]

Nick Tulloch

Henry Willcocks

College Hill

Investment Relations Adviser

[phone]

Nick Elwes

Qualified person

John Buggenhagen has over 15 years experience in the oil & gas industry. He has a Ph.D. and M.Sc. in Geophysics from the University of Wyoming and a B.Sc. in Geophysics from the University of Arizona. He is currently the Director of Exploration for the San Leon Energy Group and based in San Leon's Warsaw office in Poland.

Chairman's Statement

2010 was a pivotal year for San Leon. We have successfully built a diversified and high-impact portfolio of assets comprising acreage positions in Poland, Albania, Morocco, Ireland and Italy. We completed a US$93m (£59.6m) equity placing in December 2010 that added significant strength to our shareholder register. This placement was very well received and signalled our shift in strategic emphasis from acreage acquisition to putting the drill-bit to work in 2011 and beyond.

We have delivered on our stated objectives to date and now have an extensive drilling campaign ahead of us which   will continue to generate significant value for our shareholders.

We accumulated two major shale gas positions in Poland, one of which was farmed out to a leading North American shale operator, Talisman Energy, in February 2010. We expanded our acreage in Morocco; secured new licence interests in Albania and Ireland; and underpinned our future growth.

We are extremely grateful for the support of all our shareholders. San Leon has truly established itself as a strong niche player in the oil and gas industry and we are continuing to build on that success through 2011.

San Leon delivered high growth and a strong financial performance in 2010. Two key contributing factors have been the ability of the Board to generate funds to finance its activities through successful equity placings and prudent use of equity to finance acquisitions which have expanded our asset base.

Throughout 2010, the board raised significant finance to fund operations and the group also issued approximately €14.9m in non-cash share consideration to complete the Island Oil & Gas Plc ("IOG") and Gora Energy Resources Sp. z o.o. acquisitions. The Board's financing efforts culminated in the hugely successful US$93m (£59.6m) equity placing in December 2010. This placing marked a sea change in the financial position of the Group and will provide the resources to fund an extensive planned work programme over the next 18 months. This placing also added strong institutional shareholders to the existing base.

The net loss for the year attributable to equity shareholders decreased to €3.98m in 2010 (2009: €5.52m) with a resulting decrease in loss per share to 1.02 cent per share (2009: 1.92 cent per share). Administrative expenses decreased to €4.21m (2009: €5.08m). The group also received €1.5m under the terms of its Polish Baltic Basin farm out agreement with Talisman Energy. We also received £3m post year end from OMV when they relinquished their interest in the Rockall Licence, offshore Ireland. Finance expenses increased to €1.41m (2009: €0.45m) primarily due to the interest charge on debt acquired on the IOG acquisition.

Group net assets increased by €88.2m to €121.23m (2009: €33.03m). The Group had cash balances of €67.17m at 31 December 2010 (2009: €1.98m).

2010 Highlights

•   January - announced award of 1,167 km² Nida Concession, Poland

•   January - signed Joint Venture Agreement in Iraq

•   February - signed Talisman Farm-in Agreement in the Baltic Basin Poland

•   April - awarded 603 km² Szczawno Concession, Baltic Basin, Poland

•   May - completed acquisition of IOG

•   August - completed 300 km² 3D seismic acquisition programme, offshore Ireland

•   September - appointed Macquarie Capital (Europe) Limited as corporate broker

•   September - awarded expansion to the Gdansk W Concession, Baltic Basin, Poland

•   November - agreed to acquire Gora, Winsko and Rawicz Concessions totalling 1,314 km², Southern Permian Basin, Poland

•   December - raised US$93 million (GBP £59.6 m)

•   December - started 480 km² Baltic Basin 2D seismic acquisition programme

Poland

Throughout 2010, we continued to secure and develop a diverse portfolio of exploration opportunities consisting of both large-scale company game-changers such as our Baltic Basin and Carboniferous Basin shale gas plays in Poland and several low-cost, onshore oil targets focused on producing short-term cash flow that will continue to fuel our long-term growth.

Our Polish Baltic Basin farm out agreement with Talisman is a significant milestone for the company. The deal offers our shareholders huge upside potential in the most active shale gas exploration play in Europe with minimal cash outlay. Talisman has agreed to fully fund the drilling and operations of up to six wells where we will retain a 40% interest going forward.

Recent drilling results on licences adjacent to our Gdansk W Concession have been very encouraging. San Leon completed the acquisition of 480 km of 2D seismic data over its Baltic Basin concessions in June 2011 and we now look forward to Q3 2011 when Talisman is scheduled to start a three well drilling programme.

Our decision to invest heavily in our Polish based technical team continues to pay dividends. In addition to adding conventional targets to our Polish portfolio, we have identified a new shale gas play in the Carboniferous area of the Southern Permian Basin where we have now amassed over 880,000 acres through licence applications and corporate acquisitions.

We are also pushing forward on our Polish conventional acreage where low cost oil and gas exploration wells could see production in late 2011. While 2010 was marked primarily by expansion, 2011 will be defined by a significant seismic acquisition campaign which will be followed by the drilling of up to 13 wells.

The acquisition of 60 km² of 3D seismic data over the Szczecinek Block in the Northern Permian Basin was completed in late 2010 and a conventional oil exploration well is now planned for 2012.

In Q2 2011 Geofizyka Krakow acquired 120 km of 2D seismic data over our 100% owned Nida Concession, which is on trend with significant oil production in Poland. The first of up to three wells targeting conventional oil will be drilled in Q3 2011.

San Leon has also awarded Hungary-based Acoustic Geophysical the contract to acquire 165 km² of 3D seismic data over its Nowa Sol Concession in Q3 2011. A drilling campaign is planned to commence shortly afterwards.

We have found an appropriate solution to the high costs quoted for carrying out our planned seismic acquisition programmes. Through our wholly-owned subsidiary, Novaseis Sp. z o.o., we have established a seismic acquisition company using state-of-the-art wireless technology from OyoGeospace (USA) and vibrators from Sercel (France).

Novaseis will carry out its first operations in Morocco before returning to Poland, where we expect increased countrywide exploration activity to tighten availability of acquisition services and increase costs. Novaseis is expected to become a standalone profit-making subsidiary that will primarily offer services to the San Leon Group as we develop our Polish assets quickly and provide services to third parties when there is spare capacity.

Morocco

In Morocco, we increased our acreage position in our onshore Tarfaya and Zag Licences through the takeover of IOG in 2010. Novaseis is currently preparing for an upcoming 1,200 km 2D seismic acquisition programme over both licences which is expected to be completed by the end of 2011.

Interests in the Foum Draa and Sidi Moussa licences, offshore Morocco, were also acquired in the 2010 IOG takeover. Reprocessing and a full re-interpretation of the seismic data are nearly complete and we plan to seek farm-in partners for drilling in the near future.

Drilling of two wells at our Moroccan Tarfaya Oil Shale pilot project began in Q2 2011 and a third well is currently being planned. Pilot operations are ongoing as we continue to refine our understanding of the geological parameters and technical requirements to extract oil using our in-situ process.

Albania

We have made huge strides in Albania since the acquisition of IOG. Much groundwork in 2010 paved the way for Council of Ministers' approval for the offshore Durresi Block agreement signed in January 2011. No time was wasted in acquiring an 840 km² 3D seismic survey by mid-April 2011. The 3D seismic programme will evaluate a number of highly prospective structures in the Block, including the existing A4-1X discovery, which has an estimated 60 million barrels of oil equivalents ("MMBOE"), in preparation for a planned 2012 appraisal drilling programme.

This under-explored area is situated on the proven Apulian Margin which extends from Italy into Albania, where one of the largest onshore oil accumulations in Europe, the Patos-Marinza field, is estimated to contain up to 5.7 billion barrels of original-oil-in-place ("OOIP").

While we see Albania as being under-explored and offering huge potential, we believe the same to be true of the Atlantic Margin, offshore Ireland.

Ireland

The Atlantic Margin offers giant structures in an area as under-explored as the North Sea was circa 40 years ago.  Recent onerous tax hikes on UK production should lead to more companies evaluating Ireland, where the fiscal terms are favourable and there is a potentially very large upside. Through the use of our US$50m PGS seismic acquisition facility, we have participated in two Atlantic Margin 3D seismic acquisition programmes in the twelve months since the takeover of IOG. 300 km² of seismic data was acquired over the Slyne Licence in August 2010, which is currently being interpreted.

A further 250 km² of 3D data was acquired over the 300 million barrel potential C1 Lead in the North Porcupine Licence in May 2011. The Porcupine Connemara Oil field already offers a future development opportunity within the licence and the C1 Lead could anchor regional development.

OMV assigned its 50% interest in the Rockall Licence to San Leon in March 2011. We now have a 100% working interest in the licence, which has two multi-TCF gas targets.

We are seeking farm-in partners to drill wells and/or acquire further seismic data on the Atlantic Margin licences, including the South Porcupine Basin. Work carried out by our team of geophysicists suggests our South Porcupine Licence area contains features similar to the recent Mizzen discovery in the Flemish Pass Basin, offshore Newfoundland.

We also have a position in the Celtic Sea where a seismic vessel has been contracted to acquire 220 km² of 3D data over the Barryroe Licensing Option in June 2011. The survey is being acquired to further delineate the Barryroe oil discovery which was last drilled in 1990 and flowed at over 1,600 barrels of oil per day ("BOPD").

As Barryroe oil is situated below the existing Seven Heads gas field, this 3D survey will also provide San Leon with valuable information on any remaining gas that could be produced from the Seven Heads gas field.

Iraq

Further afield, we have been carefully building relationships in Iraq that we hope will bear fruit for shareholders in the future. San Leon signed a joint venture agreement with Al Meinaa Oil Services Company in early 2010. The partners succeeded in signing a Joint Participation Agreement in March 2011 with the Governorate Council of Karbala in Central Iraq.

Under this agreement, the consortium (San Leon, Al-Meinaa and the Governorate Council of Karbala) plan to submit a joint proposal to the Ministry of Oil in Iraq for the development of the fields of Kifil, West Kifil and Merjan.

Iraq is another slow-burning interest in the growing portfolio of high impact assets that could catapult us to another level.

Conclusion

While we continue to grow, I can assure shareholders we have not lost sight of our primary goal to deliver value from our Polish assets. Within the next twelve months, and subject to timing on interpretation and permitting, we expect to have drilled up to 13 wells in Poland, including three to six shale gas wells committed to by Talisman Energy in the Baltic Basin.

We know real success in this industry is only achieved by producing oil and gas. 2010 positioned San Leon to drill wells. 2011 will see us executing that part of our development, and by this time next year, I sincerely expect that I will be reporting on discoveries and strong first revenues to our shareholders.

Oisín Fanning

Chairman

Consolidated Income Statement
For the year ended 31 December 2010
	2010	2009
	€	€
Continuing operations
Revenue	592,047	-
Cost of sales	(447,750)	-
	_________	_________
Gross profit	144,297	-
Other income	1,501,100	-
Administrative expenses	(4,215,347)	(5,077,322)
	_________	_________
Operating loss	(2,569,950)	(5,077,322)
Finance expenses	(1,414,193)	(450,574)
Finance income	8,825	11,618
	_________	_________
Loss before income tax	(3,975,318)	(5,516,278)
Income tax expense	(1,057)	(4,448)
	_________	_________
Loss for the year	(3,976,375)	(5,520,726)
	_________	_________
Consolidated Statement of Comprehensive Income
For the year ended 31 December 2010
Loss for the year	(3,976,375)	(5,520,726)
Foreign currency translation differences	382,768	-
	_________	_________
Total comprehensive loss for the year	(3,593,607)	(5,520,726)
	_________	_________
Earnings per share:
Basic loss per ordinary share	(1.02 cent)	(1.92 cent)
	_________	_________
Diluted loss per ordinary share	(1.02 cent)	(1.92 cent)
	_________	_________

Consolidated Statement of Changes in Equity
For the year ended 31 December 2010
	Shares		Share based
	Share		Share	to be	Payment	Retained	Total
	Capital		Premium	Issued	Reserve	Earnings	Equity
	€		€	€	€	€	€
2009
Balance at 1 January 2009	13,566,469		18,312,892	114,653	1,512,721	(3,802,639)	29,704,096
	_________		_________	_________	_________	_________	_________
Total comprehensive income for year
Loss for the year	-		-	-	-	(5,520,726)	(5,520,726)
	_________		_________	_________	_________	_________	_________
Total comprehensive income for year	-		-	-	-	(5,520,726)	(5,520,726)
	_________		_________	_________	_________	_________	_________
Transactions with owners recognised
directly in equity
Contributions by and distributions to owners
Share based payment	-		-	-	808,314	-	808,314
Issue of shares	2,492,727		5,663,631	(114,653)	-	-	8,041,705
	_________		_________	_________	_________	_________	_________
Total transactions with owners	2,492,727		5,663,631	(114,653)	808,314	-	8,850,019
	_________		_________	_________	_________	_________	_________
Balance at 31 December 2009	16,059,196		23,976,523	-	2,321,035	(9,323,365)	33,033,389
	_________		_________	_________	_________	_________	_________
	Currency		Share based
	Share		Share	Translation	Payment	Retained	Total
	Capital		Premium	Reserve	Reserve	Earnings	Equity
2010	€		€	€	€	€	€
Balance at 1 January 2010	16,059,196		23,976,523	-	2,321,035	(9,323,365)	33,033,389
	_________		_________	_________	_________	_________	_________
Total comprehensive income for year
Loss for the year	-		-	-	-	(3,976,375)	(3,976,375)
Other comprehensive income
Foreign currency translation differences	-		-	382,768	-	-	382,768
	_________		_________	_________	_________	_________	_________
Total comprehensive income for year	-		-	382,768	-	(3,976,375)	(3,593,607)
	_________		_________	_________	_________	_________	_________
Transactions with owners recognised
directly in equity
Contributions by and distributions to owners
Issue of shares	23,040,584		67,612,692	-	-	-	90,653,276
Share based payment	-		-	-	1,133,534	-	1,133,534
Effect of share options exercised	-		-	-	(37,424)	37,424	-
	_________		_________	_________	_________	_________	_________
Total transactions with owners	23,040,584		67,612,692	-	1,096,110	37,424	91,786,810
	_________		_________	_________	_________	_________	_________
Balance at 31 December 2010	39,099,780		91,589,215	382,768	3,417,145	-(13,262,316)	121,226,592
	_________		_________	_________	_________	_________	_________

Consolidated Statement of Financial Position
As at 31 December 2010
	2010	2009
Assets	€	€
Non-Current Assets
Intangible assets	76,064,855	36,478,500
Property, plant and equipment	2,398,186	118,650
	_________	_________
	78,463,041	36,597,150
	_________	_________
Current Assets
Trade and other receivables	1,593,592	558,234
Other financial assets	1,491,802	155,569
Cash and cash equivalents	67,168,659	1,982,519
	_________	_________
	70,254,053	2,696,322
	_________	_________
Total Assets	148,717,094	39,293,472
	_________	_________
Equity and Liabilities
Equity
Called up share capital	39,099,780	16,059,196
Share premium account	91,589,215	23,976,523
Share based payments reserve	3,417,145	2,321,035
Currency translation reserve	382,768	-
Retained loss	(13,262,316)	(9,323,365)
	_________	_________
Attributable to equity holders of the Parent	121,226,592	33,033,389
	_________	_________
Non-Current Liabilities
Provisions	5,345,211	-
Loans and borrowings	7,886,287	2,750,000
	_________	_________
	13,231,498	2,750,000
	_________	_________
Current Liabilities
Trade and other payables	5,759,517	2,791,537
Loans and borrowings	8,499,487	718,546
	_________	_________
	14,259,004	3,510,083
	_________	_________
Total Liabilities	27,490,502	6,260,083
	_________	_________
Total Equity and Liabilities	148,717,094	39,293,472
	_________	_________

Consolidated Statement of Cash Flows
For the year ended 31 December 2010
	2010	2009
	€	€
Cash flows from operating activities
Loss before tax	(3,975,318)	(5,516,278)
Adjustments for:
Depletion and depreciation	55,316	99,157
Loss on disposal of property, plant and equipment	5,089	-
Finance expenses	1,414,193	450,574
Finance income	(8,825)	(11,618)
Share based payments charge	428,438	808,314
Foreign exchange	(6,624)	5,466
(Increase) / decrease in trade and other receivables	(760,769)	3,250,236
Increase in trade and other payables	891,230	858,067
Tax paid	(2,870)	-
	_________	_________
Net cash (used) in operating activities	(1,960,140)	(56,082)
	_________	_________
Cash flows from investing activities
Expenditure on exploration and evaluation assets	(7,310,595)	(4,465,672)
Purchases of property, plant and equipment	(2,225,931)	(201,394)
Interest received	8,825	11,618
Cash acquired with subsidiary		244,092
	_________	_________
Net cash (used) in investing activities	(9,283,609)	(4,655,448)
	_________	_________
Cash flows from financing activities
Proceeds of issue of share capital, net of costs	75,140,429	7,137,056
Repayment of convertible loan	(600,000)	-
Proceeds from drawdown of other loans	2,343,321	-
Interest paid	(520,566)	(450,574)
	_________	_________
Net cash generated from financing activities	76,363,184	6,686,482
	_________	_________
Net increase in cash and cash equivalents	65,119,435	1,974,952
Effect of foreign exchange fluctuation on cash and cash equivalents	66,705	(5,466)
Cash and cash equivalents at start of year	1,982,519	13,033
	_________	_________
Cash and cash equivalents at end of year	67,168,659	1,982,519
	_________	_________

Notes to the Financial Statements

General

San Leon Energy Plc ("the Company") is a company incorporated in Ireland. The Group financial statements consolidate those of the Company with those of its subsidiaries (together referred to as "the Group"). These consolidated financial statements were authorised for issue by the Board of Directors on 27 June 2011. These results are extracted from the full annual report and audited accounts. The annual report and audited accounts are being distributed to shareholders, and the full annual report and audited accounts including all the notes to the accounts are available at the Company's website www.sanleonenergy.com. The notice of AGM is also being distributed to shareholders and is also available on the Company's website.

Independent Auditors’ Report

 

We have audited the Group and Company financial statements (the "financial statements") of San Leon Energy Plc for the year ended 31 December 2010 which comprise the Consolidated Income Statement, the Consolidated Statement of Comprehensive Income, the Group and Company Statement of Changes in Equity, the Group and Company Statement of Financial Position, the Group and Company Statement of Cash Flows and the related notes. These financial statements have been prepared under the accounting policies set out on therein.

 

This report is made solely to the Company's members as a body in accordance with Section 193 of the Companies Act, 1990. Our audit work has been undertaken so that we might state to the Company's members those matters that we are required to state to them in the auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company or the Company's members as a body for our audit work, for this report, or for the opinions we have formed.

 

Respective Responsibilities of Directors and Auditors

The Directors' responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and International Financial Reporting Standards as adopted by the European Union ("IFRSs") are set out in the Directors' Responsibility Statement on page 20.

 

Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and International Standards on Auditing (UK and Ireland).

 

We report to you our opinion as to whether the financial statements give a true and fair view in accordance with IFRSs as adopted by the European Union and in the case of the Company in accordance with the Companies Acts 1963 to 2009. We also report to you to whether, in our opinion; proper books of account have been kept by the Company; whether at the Statement of Financial Position date, there exists a financial situation requiring the convening of an extraordinary general meeting of the Company; and whether the information given in the Directors' Report is consistent with the financial statements. In addition, we state whether we have obtained all the information and explanations necessary for the purposes of our audit and whether the Company's Statement of Financial Position is in agreement with the books of account.

 

We report to the shareholders if, in our opinion, any information specified by law or the listing rules of AIM regarding Directors' remuneration and Directors' transactions is not disclosed and, where practicable, include such information in our report.

 

We read the other information contained in the Annual Report and consider whether it is consistent with the audited financial statements. This other information comprises only the Directors' Report and the Chairman's Statement and Operating Review. We consider the implications for our audit report if we become aware of any apparent misstatements or material inconsistencies with the financial statements. Our responsibilities do not extend to any other information.

 

Basis of audit opinion

We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the significant estimates and judgements made by the directors in the preparation of the financial statements, and whether the accounting policies are appropriate to the Group's and Company's circumstances, consistently applied and adequately disclosed. 

We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements.

Opinion

In our opinion

-    the Group financial statements give a true and fair view, in accordance with IFRSs as adopted by the EU, of the state of the Group's affairs as at 31 December 2010 and of its loss for the year then ended;

-    the Company financial statements give a true and fair view, in accordance with IFRSs as adopted by the EU and as applied in accordance with the provisions of the Companies Acts, 1963 to 2009, of the state of the Company's affairs as at 31 December 2010; and

-    the financial statements have been properly prepared in accordance with the Companies Acts, 1963 to 2009.

  

Emphasis of matter

In forming our opinion, we have considered the adequacy of disclosures made in Note 9 to the financial statements in relation to the Directors' assessment of the carrying value of the Group's exploration and evaluation assets amounting to €76,064,855 at 31 December 2010. In view of this we consider that it should be drawn to your attention but our opinion is not qualified in this respect.

 

Other matters

We have obtained all the information and explanations we consider necessary for the purposes of our audit. In our opinion, proper books of account have been kept by the Company. The Company Statement of Financial Position is in agreement with the books of account.

 

In our opinion, the information given in the Directors' Report is consistent with the financial statements.

 

The net assets of the Company, as at the financial position date, are more than half of the amount of its called up share capital and, in our opinion, on that basis there did not exist at 31 December 2010 a financial situation which under Section 40(1) of the Companies (Amendment) Act 1983 may require the convening of an extraordinary general meeting of the Company.

 

______________________

KPMG

Chartered Accountants

and Registered Auditor

1 Stokes Place

St Stephens Green

Dublin 2

 

 

 

 

END

 

 

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