Proved oil and gas reserves are the estimated quantities of
crude oil and natural gas which geological and engineering data
demonstrate with reasonable certainty to be recoverable in future
years from known reservoirs under existing economic and operating
conditions, i.e. prices and costs as of the date the estimate is
made. Probable reserves are those additional Reserves which
analysis of geoscience and engineering data indicate are less
likely to be recovered than Proved Reserves but more certain to be
recovered than Possible Reserves. Estimates of oil and gas reserves
are inherently imprecise, require the application of judgement and
are subject to future revision. Accordingly, financial and
accounting measures (such as depletion charges and provision for
decommissioning) that are based on Proved and Probable reserves are
also subject to change.
Proved reserves are estimated by reference to available
reservoir and well information. All proved reserves estimates are
subject to revision, either upward or downward, based on new
information, such as from development drilling and production
activities or from changes in economic factors, including product
prices, contract terms or development plans. In general, changes in
the technical maturity of hydrocarbon reserves resulting from new
information becoming available from development and production
activities have tended to be the most significant cause of annual
revisions.
In general, estimates of reserves for undeveloped or partially
developed fields are subject to greater uncertainty over their
future life than estimates of reserves for fields that are
substantially developed and being depleted. As a field goes into
production, the amount of proved reserves will be subject to future
revision once additional information becomes available through, for
example, the drilling of additional wells or the observation of
long-term reservoir performance under producing conditions. As
those fields are further developed, new information may lead to
revisions.
Changes to the Group's estimates of Proved and Probable reserves
also affect the amount of depreciation and amortisation recorded in
the Group's consolidated financial statements for property, plant
and equipment related to oil and gas production activities. A
reduction in Proved and Probable reserves will increase
depreciation and amortisation charges (assuming constant
production) and reduce income.
Proved and Probable reserve estimates of the Group as of 1
November 2011were based on the reports prepared by Miller and Lents
Ltd, independent engineering consultants.
As at 31 December 2012, the net carrying amount of oil and gas
properties and related cost of production licence was
$496,606thousand (2011: $421,388thousand).
Taxation
The Group is subject to income tax and other taxes. Significant
judgment is required in determining the provision for income tax
and other taxes due to the complexity of the tax legislation
incorporated in the Russian Federation. There are many transactions
and calculations for which the ultimate tax determination is
uncertain. The Group recognises liabilities for anticipated tax
audit matters based on estimates on whether additional tax will be
due. Where the final tax outcome is different from the amounts that
were initially recorded, such differences will impact the amount of
tax and tax provisions in the period in which such determination is
made. Deferred tax assets are recognised for all unused tax losses
to the extent that it is probable that taxable profit will be
available against which the losses can be utilised. Significant
management judgment is required to determine the amount of deferred
tax assets that can be recognised, based upon the likely timing and
the level of future taxable profits together with future tax
planning strategies (Note 28).
6. segmental analysis
Management has determined the operating segments based on the
reports reviewed by the Directors that make the strategic decisions
for the Company, who are deemed to be the chief operating decision
maker (CODM).
Exillon Energy plc manages its business as three operating
segments, Exillon WS, Exillon TP and
Regional Resources.
-- Exillon TP: upstream business based in the Timan-Pechora
basin in the Komi Republic in the Russian Federation. The revenue
is derived from extraction and sale of crude oil.
-- Exillon WS: upstream business based in Western Siberia in the
Russian Federation. The revenue is derived from extraction and sale
of crude oil.
-- Regional Resources: oil trading company based in Moscow in the Russian Federation.
Segmental information for the Group for the year ended 31
December 2012 is presented below:
Exillon Exillon Regional Unallocated Intersegment Total
TP WS Resources eliminations
-------- -------- ---------- ----------- ------------- --------
$'000 $'000 $'000 $'000 $'000 $'000
Gross segment
revenue 51,886 250,042 1,922 - - 303,850
-------- -------- ---------- ----------- ------------- --------
Inter-segment
revenues - - (1,922) - - (1,922)
Revenue 51,886 250,042 - - - 301,928
Minerals extraction
tax (25,312) (74,496) - - - (99,808)
Export duties - (83,804) - - - (83,804)
Transportation
services - Transneft - (14,778) - - - (14,778)
-------- -------- ---------- ----------- ------------- --------
Net back 26,574 76,964 - - - 103,538
-------- -------- ---------- ----------- ------------- --------
EBITDA 11,268 45,899 (120) (10,955) - 46,092
-------- -------- ---------- ----------- ------------- --------
Depreciation and
depletion 6,786 13,371 100 211 - 20,468
Finance income (25) (187) (237) (2,446) - (2,895)
Finance cost 95 392 - 3,674 - 4,161
Operating profit/(loss) 4,467 30,756 (227) (16,205) - 18,791
-------- -------- ---------- ----------- ------------- --------
Capital Expenditure 40,597 45,822 75 - - 86,494
-------- -------- ---------- ----------- ------------- --------
Segmental information for the Group for the year ended 31
December 2011 is presented below:
Exillon Exillon Regional Unallocated Intersegment Total
TP WS Resources eliminations
-------- -------- ---------- ----------- ------------- --------
$'000 $'000 $'000 $'000 $'000 $'000
Gross segment
revenue 63,282 139,689 1,088 - - 204,059
-------- -------- ---------- ----------- ------------- --------
Inter-segment
revenues - - (1,088) - - (1,088)
Revenue 63,282 139,689 - - - 202,971
Minerals extraction
tax (23,660) (40,847) - - - (64,507)
Export duties (14,806) (50,811) - - - (65,617)
Transportation
services - Transneft (1,804) (7,424) - - - (9,228)
-------- -------- ---------- ----------- ------------- --------
Net back 23,012 40,607 - - - 63,619
-------- -------- ---------- ----------- ------------- --------
EBITDA 8,308 18,976 (12) (7,786) - 19,486
-------- -------- ---------- ----------- ------------- --------
Depreciation and
depletion 6,269 7,254 114 158 - 13,795
Finance income (43) (86) (96) (1,103) - (1,328)
Finance cost 78 312 - 563 - 953
Operating profit/(loss) 316 11,562 (106) (19,704) - (7,932)
-------- -------- ---------- ----------- ------------- --------
Capital Expenditure 20,534 75,919 351 462 - 97,266
-------- -------- ---------- ----------- ------------- --------
The transfer prices between operating segments are on an arm's
length basis in a manner similar to transactions with third
parties.
Unallocated category represents costs of corporate companies
that are managed at the Group level.
Exillon Energy (LSE:EXI)
Historical Stock Chart
From Jun 2024 to Jul 2024
Exillon Energy (LSE:EXI)
Historical Stock Chart
From Jul 2023 to Jul 2024
