TIDMJUB
RNS Number : 5827G
Jubilant Energy N.V.
02 July 2012
2 July 2012
Jubilant Energy N.V.
("Jubilant" or "the Company")
Audited results for the year ended 31 March 2012
Jubilant Energy N.V., the upstream oil and gas company with
assets in major proven and prolific hydrocarbon basins in India and
a recently acquired block in Myanmar, is pleased to announce its
audited consolidated results for the year ended 31 March 2012.
Financial/ Corporate Highlights
-- Revenues of USD 19.1 million, an increase of 40% over the previous financial year
-- Average oil price realised over the year was USD 115.6 per
barrel (premium to Brent), 36% higher compared to previous year
-- Loss for the year of USD 12.8 million, against a loss of USD
48.1 million in the previous financial year. This is mainly due to
higher revenues, lower personnel cost and nil impairment in the
current year
-- Capital expenditure of over USD 66 million during the year as
against USD 30 million in the previous financial year
-- Strong cash position of USD 81.2 million and a net debt of
USD 273 million on 31 March 2012. The Company is in the process of
raising an additional loan of USD 135 million for the KG
development
-- Appointed Jefferies International to advise on a range of
strategic options for the business and its medium to long term
funding
-- Strategic entry into Myanmar through the acquisition of block
PSC-I in May 2012, with a 77.5% PI
OPERATIONAL HIGHLIGHTS
Producing Asset- Kharsang
-- Average gross production of 1,771 bopd in FY 2011-12, equating to 443 bopd net to Jubilant
-- Phase-III drilling programme of seven development wells in
progress; six wells drilled of which five wells put on production;
sixth well under testing and seventh well currently drilling
-- Additional six development wells planned in the Phase III drilling extension programme
-- Exploration well for deep objectives drilled; testing in 2012
-- 3D seismic survey of 87 sq km commenced and expected to be
acquired by the end of the financial year 2012-13
-- Various production enhancement schemes being piloted for
increasing production and recovery factor
Deen Dayal Field in Krishna Godavari
-- Batch drilling of four development wells in Deen Dayal West
area (DDW) partly completed from the installed Well Head Platform
(WHP) with the Jack-up rig. Modular rig operational since March
2012 for balance drilling and testing
-- Facilities development progressing on schedule and the current status is as under:
o WHP installed and used for drilling; mechanical completion by
March 2013
o Onshore gas terminal (OGT) 67% complete; expected
commissioning by June 2013
o Production Living Quarter Platform (PLQP) 50% complete
o Submarine Pipeline 30% complete , expected commissioning by
April 2013
-- The Government has approved the extension to the existing DDW
development area by 20.5 square kms thereby increasing the total
development area to 37.5 square kms. This will further increase the
2C resources.
-- Second appraisal well drilled to appraise Deen Dayal East area, currently under testing
Tripura
-- Approval of Phase II exploration by the Government.
Exploration seismic of 125 lkm commenced and the first of the two
exploration wells currently under drilling
-- Completion of appraisal seismic acquisition of over 250 lkms
-- Srikantabari well in Tripura spudded in July 2011 and was
drilled with the primary objective of evaluating the Middle Bhuban
reservoir sands. Plan to test five zones in a sequential manner
with the work-over rig
-- Appraisal well Kathalchari NE spudded in Tripura in February
2012, drilling is completed. Testing is planned with the work-over
rig
Manipur
-- Airborne Full Tensor Gradiometry survey across two Manipur
blocks completed in November 2011 with acquisition of 5,273 lkm.
Processing and interpretation of data completed
-- 2D seismic acquisition of 540 lkm in the two Manipur blocks
awarded, seismic acquisition commenced
Myanmar
-- Entered Myanmar through acquisition of a new acreage; PSC
signed in May 2012 becoming the first LSE listed company to enter
Myanmar in the oil & gas space
-- Situated in the Central Burma basin, rich in oil and gas resources
-- Geologically and tectonically similar in setup to Tripura,
Manipur and Assam blocks where Jubilant is the operator
The Annual General Meeting has been convened on 31(st) August,
2012 in Amsterdam. The full version of the annual report for the
year ended 31 March 2012 and the notice of the AGM will be posted
to the shareholders and will be available on the Company's website
at www.jubilantenergy.com on 1 August 2012.
Shyam Bhartia, Chairman and Hari Bhartia, Co-Chairman of the
Company commented:
"This has been an exciting year for the Company from an
operational point of view with considerable progress being made on
the work programme we set out to achieve. Jubilant has a clear and
focussed strategy to maximise the opportunities that the Indian
macroeconomic environment offers. The diverse and balanced
portfolio of assets provides huge growth opportunities. 2012-13
promises to be a year where we consolidate and grow to achieve the
vision of Jubilant to be an independent E&P Company of Choice
focussing on India's Energy demand."
Enquiries:
Ajay Khandelwal, Vipul
Jubilant Energy Agarwal +91 120 4025700
Panmure Gordon Katherine Roe, Adam James +44 20 7459 3600
Deutsche Bank Rajat Katyal, Drew Price +44 20 7547 8000
Nick Elwes, Alexandra
College Hill Roper +44 20 7457 2020
Competent Person's - Consent for Release
Mr. Ramesh Bhatia - Vice President (Exploration), holds a
Master's of Science degree in Applied Petroleum Geology and has
over 20 years of experience in the Oil and Gas Exploration,
Development and Production industry. He has reviewed and approved
the technical information contained in this announcement pursuant
to the AIM guidance note for mining and oil and gas companies.
Chairman and Co-Chairman's Statement
Introduction
The last year has seen Jubilant Energy continue to make
significant progress maximising the opportunities that make India
an attractive region for oil and gas companies. Whilst many issues
have been inherent in international markets, the Indian
macroeconomics have provided us with opportunities and allowed
Jubilant's strategy to continue to flourish. Jubilant remains well
positioned to benefit from the growth potential of the Indian
market where energy demand is constantly increasing with indigenous
supplies falling well short of this demand.
The Company has an exciting and diverse portfolio of assets in
the main proven and prolific basins of India. Considerable progress
has been made in the last year across all aspects of our portfolio;
increasing production at Kharsang, further progressing our
development in the KG Basin, moving ahead on our high impact
exploration programmes in Tripura and Manipur. The Company has also
entered Myanmar through the acquisition of new acreage in the
Central Burma Basin. All of these demonstrate very significant
achievements across our entire portfolio.
These achievements are a testament to the exceptional team that
we have at Jubilant; a team that is dedicated to driving the
Company forward, playing to its strengths as we look to continue to
create and deliver sustainable shareholder value by maximizing the
opportunities.
India macro environment
India is among the world's largest and fastest growing economies
with an estimated GDP of 4.46 trillion in 2011(on a PPP basis),
which makes it the fourth largest economy in the world. Even in a
difficult year, the Indian economy grew at 6.9%. Coming on the
heels of a 7.4% year-on-year growth since the turn of the
millennium, exceeding 8% in most of this period, this may appear
low, but in the context of a slowdown in the world economy,
particularly the Eurozone crisis, the Indian growth numbers are
indeed impressive. While India, or for that matter the other major
emerging economies, will not be entirely immune to the
international financial crisis, the strong economic fundamentals
provide hope and optimism. There is a need, however, for more
proactive and investor friendly policy initiatives and prudent
fiscal management.
The primary energy consumption reached 559 mmtoe per year in
2011 and the long term prospects for energy consumption in India
are very positive. With India expected to have the world's second
highest rate of GDP CAGR from 2010-2016, just behind that of China,
India's primary energy consumption is expected to continue to
increase dramatically over the coming decades. A large population
of 1.2 billion and favourable demographics certainly point towards
a continuation of India's energy growth story.
Historically, gas has provided a relatively small proportion of
India's primary energy consumption though that is changing with
natural gas consumption as a percentage of total domestic energy
consumption increasing from 8.5% in 2005 to 9.8% in 2011, and this
is expected to be around 20% by 2025. Given the cleaner
characteristics of gas, its consumption is expected to grow due to
heightened environmental concerns and India's commitment to reduce
its carbon emissions per unit of GDP by 2020 through policy
interventions. Natural gas is therefore expected to take a higher
proportion of a markedly increasing demand for energy in India,
leading to a dramatic increase in the demand for gas. Despite
recent increases in production, the consumption of natural gas has
outstripped supply and the resultant demand-supply imbalance has
meant that India has been a net importer of natural gas and LNG
since 2004 and this imbalance is expected to worsen.
The increasing demand-supply imbalance means that over both the
short and long term, India's import requirements are expected to
increase. This will have profound implications on the structure of
the gas market and gas pricing and will create a very favourable
market for new uncontracted domestic sources of gas supply. With
Jubilant's substantial gas reserves and resources and notable
prospect and lead inventory in gas prone areas, the company is well
placed to benefit from these favourable macroeconomic trends which
look set to continue for many years to come.
Year under review
From an operational point of view, the period under review was
extremely significant for Jubilant. Good progress was made across
all the key assets where our operations are focused on, viz., KG
Deen Dayal structural complex, Kharsang, Tripura and the two
Manipur blocks. The major development from a portfolio perspective
was the strategic entry into the Republic of The Union of Myanmar
through the acquisition of block no. PSC-I awarded under the
Myanmar Onshore Blocks Bidding Round in 2011. The Company's entry
into Myanmar fulfils its strategic objectives of further expanding
its portfolio in proven and prolific hydrocarbon basins especially
given its expertise as operator of its four existing exploration
blocks located in the North Eastern part of India, in close
proximity to the Myanmar border.
Jubilant's only producing block in Kharsang witnessed a marginal
decline from 1,809 bopd in the previous financial year to 1,771
bopd in the year under review, equating to 443 bopd net to
Jubilant. This was mainly due to workover activities designed to
increase production as well as faster depletion of producing wells
than was earlier anticipated. The production increased to 1,837
bopd in March 2012 and is currently producing in excess of 1,900
bopd. The seven well phase III development drilling campaign has
had a successful run with five of the wells already being put on
production in 2011-12. The sixth well has been drilled and is under
testing and the seventh well is currently drilling. An exploratory
well was also drilled under the phase III programme to explore
deeper prospectivity. The testing of this well is scheduled in
2012. Various projects for enhanced oil recovery were piloted
during the year and more are planned in 2012-13.
The development of the Deen Dayal West Field in KG is also
progressing on schedule to deliver first gas in H2 2013. The
setting up of onshore and offshore facilities is on target. The
Well Head Platform has already been set up and four development
wells are under batch drilling from this platform. In a significant
development, the Government approved the extension to the existing
development area by 20.5 square kms increasing the total
development area to 37.5 square kms. This extended area will
increase the existing 2C resources for the KG block. The assessment
of increment reserves and resources post DDW Extension approval
remains ongoing.
On the exploration and appraisal side, Jubilant has made
considerable progress in its major prospects in the North East. In
Tripura, two wells were drilled as an appraisal well to
Katalchari-1 well, with the primary objective of evaluating the
Middle Bhuban reservoir sands. The Srikantabari well was spudded in
July 2011, while Kathalchari NE was spudded in February 2012 and
the testing of these two wells are planned in 2012-13. The
Government approved the Phase II exploration programme in Tripura
in January 2012. Two large anticlines with multi tcf resources and
high possibility of success are planned to be drilled during Phase
II, the first of which was spudded in May 2012. An exploration
seismic of 125 lkm, already underway, is also part of the Phase II
programme.
An Airborne Full Tensor Gradiometry survey was completed across
the two Manipur blocks in November 2011, a first such survey to be
done in India, with acquisition of 5,273 lkm. Processing and
interpretation of the data has also been completed. The acquisition
of 2D seismic of approximately 400 lkm in the two Manipur blocks
for the second season has commenced.
Finance overview
In the year under review, the Company's revenue grew
approximately 40% over the previous year to USD 19.1 million mainly
on the back of higher international oil prices.
Jubilant is well funded to carry out its immediate work
programme in the coming year with available cash and other funding
options which are currently under discussion. The Company is also
in the process of raising an additional debt of USD 135 million for
KG. However, given the ambitious work programme over the next few
years, Jubilant has appointed Jefferies International for advising
it on a range of strategic options for the business and its medium
to long term funding.
Further, the Company appointed Deutsche Bank as its Joint Broker
in October 2011 and Panmure Gordon as its Nominated Advisor and
Joint Broker in April 2012.
Corporate
We would like to take this opportunity to thank our exceptional
Board who have continued to work with the Company's executive team
providing invaluable support and guidance throughout the last
year.
Mr Maxwell Birley, COO, decided to move on in his career from
Jubilant at the completion of the primary term of his employment
contract and accordingly was released on 6 June, 2012. We want to
place on record our appreciation of his contributions to the
Company.
We would again like to take the opportunity to thank all the
people involved in making 2011-12 a memorable year for Jubilant -
their time, energy, patience and hard work has been greatly
appreciated and we cannot thank them enough.
Outlook
Jubilant has a clear and focussed strategy; we have a strong
portfolio of assets, the expertise and also the funding to deliver
this. India has exceptional opportunities for oil and gas companies
and Jubilant is uniquely and ideally positioned to take advantage
of these opportunities. The next year promises to be an exciting
one for the Company as we look to further explore our Manipur and
Tripura assets as well as commencing work in our Myanmar block,
after entering the country post year end.
CEO's Statement
Jubilant has continued to make excellent progress in the last
year. The Company remains committed to deliver its strategy of
exploring opportunities across the E&P value chain; moving our
2C resources up to 2P reserves and adding new resources. Our focus
continues to be the development of the KG block and the North East
region of India, and post year end, now also includes the adjoining
Myanmar, where the Company is looking to maximising
opportunities.
The development of the KG block remains on track with the first
gas expected next year and Kharsang has continued to move forward
increasing the daily production. Our exploration programmes at
Manipur and Tripura have further advanced during the year and the
Company is also particularly excited about commencing our work on
our newly awarded block, PSC-I, in Myanmar.
This is a very exciting time for the Company with considerable
opportunities ahead. The Company have an extensive programme across
its assets for 2012-13 as Jubilant look to maximise the
opportunities of its portfolio.
India Energy Story
Jubilant is emerging as an important player in the oil & gas
space in India and through the recently acquired block in Myanmar.
It has presence in proven and prolific hydrocarbon basins with a
portfolio of assets at various stages of high impact exploration,
appraisal, development and production. The Company is well
positioned to realise its vision to be an independent E&P
Company of Choice with focus on India's Energy demand and to
enhance value by leveraging opportunities for replacing high cost
alternate fuels.
India's growth story remains largely intact, particularly on the
energy growth front. India's large population of 1.2 billion and
with an estimated GDP of USD 4.46 trillion in 2011-12 makes it the
fourth largest economy in the world after the United States, China
and Japan, in purchasing power parity ("PPP") terms. India is also
one of the fastest growing economies in the world with its GDP
expected to grow at 9.3% per annum on a PPP basis from 2010-2016.
The correlation between energy consumption and GDP growth has meant
that India's long term economic growth has led to increasing
primary energy consumption with recent growth of 8.3% CAGR from
2006 to 2010. In 2009, India surpassed Japan to become the world's
fourth largest consumer of energy, behind the United States, China
and Russia with a consumption of 3,518 mmboe per year. Primary
energy consumption reached 4,098 mmboe per year in 2011. However,
India's per capita energy consumption of 3.4 boe per year is still
considerably less than the world's per capita energy consumption of
12.9 boe per year. To put it into perspective, China's energy
consumption per capita is four times that of India's.
The long term prospects for energy consumption in India are very
positive. With India expected to have the world's second highest
rate of GDP CAGR of 5.5% during 2008-2035, just behind that of
China, India's primary energy consumption is expected to continue
to increase dramatically over the coming decades.
Coal currently forms the major source of India's primary energy
mix, followed by oil and then gas. Although, coal constitutes 53%
of India's primary energy consumption, India has made little recent
investment in coal. Oil and gas contributed a little under 39% of
India's total energy consumption in 2010 which is relatively low
compared to global standards; oil and gas contributed approximately
57% of the total global energy consumption.
In particular, whilst globally natural gas plays a major role as
a primary energy fuel, it has historically provided a relatively
small proportion of India's primary energy consumption. On the back
of India's recent economic development, India's natural gas
consumption as a percentage of total domestic energy consumption
increased from 8.5% in 2005 to 9.8% in 2011, however this
proportion still remains well below the world average of 23.7% in
2011.
Natural gas is therefore expected to take a higher proportion of
a dramatically increasing demand for energy in India, leading to a
significant increase in the demand for gas. The demand supply gap
is currently estimated to be in the range of 113 mmscmd. As per the
estimates of MoPNG, India's gas demand would grow to around 606
mmscmd while the supply from domestic sources would be in the range
of 243 mmscmd by 2021-22. The size of imported LNG is expected to
rise five folds to around 280 mmscmd in 2021-22, demonstrating
India's continued reliance on imports to meet its energy demand,
particularly with respect to gas.
Currently, gas is sold in India at different prices and there is
a wide gap between the price of administered gas supplies and the
prevailing market rate.
Based on the source of gas and end-consumer, the gas price
varies accordingly.
-- APM gas for fertilizer, power, transportation and small
industrial units, currently fixed at US$4.2 / mmBtu (APM is only
applicable to specific nominated blocks of ONGC and OIL, and are
not applicable for any block of Jubilant)
-- Panna - Mukta and Tapti ("PMT") gas, currently sold at USD 5.7 / mmbtu
-- KG basin, currently at USD 4.2 / mmbtu (up for revision every
five years with next due in 2014)
-- Spot imported Regassified-LNG, traded at spot prices
prevailing in the international market - USD 16-18/ mmBtu
-- Ras Gas PLL Contract will get directly indexed to JCC at
12.67% from 2013 onwards resulting in a landed price of
$14/mmbtu
-- Gorgon LNG contract at FOB 14% JCC indexation resulting in landed price of $16/mmbtu
-- India will pay close to $13/mmbtu for natural gas it will buy
from Turkmenistan through a pipeline passing through Afghanistan
and Pakistan
The existing and projected demand-supply imbalance for gas is
expected to provide an upward pressure on both LNG and the domestic
gas prices. With the LNG share of India's total natural gas
consumption increasing, it is expected that domestic gas prices
would increase to market determined pricing with an increased
pegging to imported LNG prices, which are referenced to rising
crude petroleum prices.
Operational Overview of Key Assets
The Company's portfolio consists of eight oil and gas assets at
various stages of exploration, appraisal, development and
production in India and one newly acquired block in Myanmar post
the year end. During the last year, Jubilant has continued to focus
on the key five blocks in its portfolio. These are the assets that
the Company believes offer the most upside and most immediate
growth prospects for the group as well as delivering future
shareholder value.
Production and near term production upside - Kharsang Field (WI
25%)
Jubilant holds a 25% working interest in the Kharsang Field, its
oldest and only producing asset. The block is operated by Geo Enpro
Petroleum Ltd. Located in the prolific Upper Assam basin in the
north-eastern region of India, the Kharsang Field is surrounded by
some of the oldest oil fields in the country. The field has 62
wells, of which 35 wells were in production as at 31st March 2012.
Production for the period averaged 1,771 bopd, with net production
of 443 bopd to Jubilant, compared with the previous year which
stood at 1,809 bopd and 453 bopd respectively. This decline is
partly on account of workover activities carried out in order to
achieve an increased production and recovery factor in the future,
and also on account of the faster than anticipated depletion of
producing wells. The workover activities and drilling of new
development wells have already started showing results with the
current levels of production consistently well over 1,900 bopd,
even crossing 2,000 bopd on some days.
Among the major initiatives in Kharsang, the consortium
undertook a Phase III drilling programme consisting of seven
development wells and an exploratory well to explore deeper
prospects. The development drilling programme has been highly
successful with five of the seven wells already being put on
production, yielding between 30 and 120 bopd. The sixth well has
been drilled and is currently being tested, while the seventh was
spudded in May 2012 and is currently drilling. The next initiative
on this front is a six well Phase-III extension development
drilling programme planned in 2012-13.
Jubilant spudded an exploratory well targeting the hydrocarbon
potential of the lower Girujan and deeper reservoirs. The lower
Girujan formation underlies the producing upper Girujan reservoirs
and the deeper reservoirs have proven to be prolific producers in
nearby acreages. The well encountered 16 sand intervals with gross
thickness ranging from 5 to 25 metres, which have been identified
as potential hydrocarbon bearing zones. The well observed down-hole
complications during drilling and at 1,609 metres MD, an extremely
high pressured gas (or water) sand was encountered. Various options
around re-entry or re-testing are being considered and a proposal
will be submitted to Directorate General of Hydrocarbons (DGH) in
2012-13.
Work on 3D seismic survey of 87 sq km commenced in November 2011
and is expected to be completed by the end of financial year
2012-13.
Various production enhancement schemes are being piloted in the
Kharsang field for increasing production and recovery factor. The
pilot project for sand control, using a combination of sand screens
&SandAid, is scheduled for commissioning by December 2012. This
production enhancement scheme would also be used for heavy oil
development in A & B sands. The pilot project planned for wax
control through down-hole tubing heater arrangement is expected to
be commissioned in October 2012 while that for Multi-Zone Single
String and Dual String Completion, together with down-hole chemical
injection for wax inhibition is expected to be commissioned by
August 2012.
An updated reserve estimates and new production profile of the
Kharsang field are expected to be announced in 2012.
Development Programme - Deen Dayal Field in the KG Basin (WI
10%)
The development of KG Deen Dayal West is on track to produce
first gas in 2013. Batch drilling of four development wells
commenced in September 2011 from the newly installed Well Head
Platform (WHP). The wells were drilled partly by a Deep Sea Jack-up
driller which was replaced by a lower cost modular rig in March
2012 to complete the development drilling and testing. In addition,
three more re-completions of the old wells are planned during
2012-13. The setting up of both onshore and offshore gathering and
production facilities are progressing as planned. As already
mentioned earlier, the WHP is already installed and operational. By
the middle of May 2012, the Onshore Gas Terminal (OGT) was 67%
complete and is expected to be commissioned by June 2013 well in
time for the first gas. The Production Living Quarter Platform
(PLQP) was 50% completed in mid- May 2012, while the Submarine
Pipeline was 30% complete with expected commissioning in April
2013.
Jubilant is extremely happy to report that the Government has
approved the extension to the existing development area by 20.5
square kms increasing total development area to 37.5 square kms.
This extended area is expected to increase the existing 2C
resources for the KG block. Assessment of increment reserves and
resources post DDW Extension is underway.
The Deen Dayal East appraisal well DDE-A-2, was spudded in
February 2012 and is currently being tested.
Exploration and Appraisal Upside-Tripura (WI 20%)
Jubilant is the operator on this block with a 20% participating
interest. The Director General of Hydrocarbons approved the
appraisal programme of Kathalchari-1 (K-1) on 28 February 2011. The
plan included the re-testing of the K-1 well and the acquisition of
130 lkms of 2D seismic data, subsequently increased to 180 lkms by
the consortium. Jubilant has completed the seismic acquisition of
188.5 lkms against the planned 180 lkms and an additional 64 lkm of
2D seismic subsequently. The Srikantabari-1 ("SK-1") well was
drilled as the first appraisal well to the K-1 discovery well with
the primary objective of evaluating the Middle Bhuban reservoir
sands tested in K-1. The well was drilled to a depth of 2,973
metres Measured Depth ("MD"). A gas kick was witnessed at 2,972
metres MD, while drilling which recorded a maximum gas of 48.9%, at
2,781 metres MD. Based on the interpretation of the sub-surface
data including mudlogs, Dipole Shear Sonic Imager (DSI) log,
Logging While Drilling (LWD) logs and Wireline logs, five zones of
interest have been identified for testing within the Middle Bhuban
formation. Gross thickness of the five identified zones for testing
is approximately 92.5 metres, with testing scheduled in 2012-13. A
second well to appraise K-1, KL-NE was spudded in February 2012 and
the drilling was completed in May 2012. The testing of KL-NE, is
also scheduled in 2012-13.
The consortium received the approval of the Phase II exploration
in Tripura in February 2012 and the first exploratory well,
Matabari-1, was spudded in May 2012. Matabari-1 is proposed to
explore the hydrocarbon potential of the Lower Miocene Lower Bhuban
and Late Oligocene Renji sands as primary objectives and the Middle
Bhuban sands as a secondary objective. This will be the first
exploratory well in the Block targeting deeper objectives beyond
the Middle Bhuban. One more exploratory well is planned to drilled
in 2012-13 under Phase-II, while the acquisition of exploration
seismic of 125 lkm has already commenced.
Manipur (WI 100%)
The two Manipur Blocks, AA-ONN-2009/1 & 2, are located in
the eastern extension of the Burma-Assam-Abakan fold thrust belt
which covers almost 4,000 sqkms. Best estimate prospective
resources have been assessed at 4.77 tcf on an unrisked basis. With
Jubilant holding 100% Participating Interest, the blocks provide a
significant long term upside potential. Jubilant contracted Bell
Industries to undertake an airborne gradiometer survey, the first
such survey in India. The survey was completed in November 2011 and
5,273 lkms of data was acquired. Processing and interpretation of
the resultant data was completed in April 2012. Jubilant has
contracted Asian Oilfields and Alpha Geo respectively for seismic
acquisition of 300 lkms in the Southern Block and 240 lkms in the
Northern Block. The work on the seismic acquisition has already
commenced with a target to complete 180-200 lkms before the onset
of the rainy season. A detailed assessment of the drilling plan is
currently underway and Jubilant is aiming to drill the first well
in the first half of 2013.
Myanmar (WI 77.5%)
Jubilant acquired block PSC-I awarded under the Myanmar Onshore
Blocks Bidding Round in 2011, complementing its already existing
portfolio in the nearby North Eastern India. The Central Burma
basin of Myanmar is rich in oil and gas resources with discoveries
and production dating back to 1887 and the early 1990's. Jubilant
will utilise its in-house expertise as operator of Tripura, Manipur
and Assam blocks, which are geological and tectonically similar in
setup to this newly awarded block.
The Production Sharing Contract (PSC) for the block was executed
at Nay Pyi Taw in May, 2012 between Jubilant, Parami Energy
Development Company Limited (Parami) and Myanma Oil & Gas
Enterprise (MOGE), an enterprise formed by the Government of the
Republic of the Union of Myanmar. Jubilant holds a 77.5%
participating interest in this block and will be the Operator,
while Parami holds the remaining 22.5% participating interest in
this block.
The block covers an area of approximately 3,600 sq km and is
located about 125 kms North West of Yangon City. The block falls in
the Irrawaddy Delta Sub-basin and partly in the Pyay Embayment
Sub-basin of the Central Burma Basin, which is believed to be the
most prolific sedimentary basin in Myanmar, where giant fields such
as Chauk-Lanywa and Yenangyaung are located. The awarded block is
also located adjacent to the Myanaung and Shwepyitha producing
fields.
The Company's discretionary work programme is expected to
include the reprocessing of historical 2D seismic data, the
acquisition of 2D / 3D seismic data and drilling operations. Any
such expenditure will be attributed directly to the two partners'
interests in the block.
Health & Safety
Jubilant's commitment to ensure the health and safety of all who
work with Jubilant resulted in zero Loss Time Injury (LTI) for the
year under review, a remarkable achievement considering a 3.46
million man-hours during the period. Jubilant is committed to
achieve excellent health, safety and environment standards, to
reduce accidents and ill health within the workplace and to
minimise the impact of the Company's operations on the environment.
A major HSE initiative taken during the previous year was
establishing the best in class medical evacuation (Medevac) system,
both by air and road.
The Company insists that all contractors should maintain the
same high standards. Jubilant liaises closely with government
departments, partners and other interest groups to comply with
local laws and regulations and to minimise any disruption to the
environment.
Jubilant seek to continuously improve the ways in which the
Company contribute directly or indirectly to the economy and the
well-being of the communities where Jubilant operates.
Understanding and respecting local communities is essential to
ensure the Company's continued presence in the locations where it
works. The Company maintains a continual dialogue with local
communities and authorities through its local staff and senior
management when visiting the operational locations.
Transfer of Assets
The transfer of a 35% interest in the Golaghat block and a 20%
interest in the Ankleshwar block from the wider Jubilant Bhartia
Group is pending subject to obtaining the Government's
approval.
The decision on the transfer of an additional 5% effective
interest in the Kharsang field and the interest in the Yemen block
has, for the time being, been deferred by the Board.
Outlook
Jubilant is well positioned and the year ahead promises to be
another exciting one as the Company looks to build on what has been
achieved during this period. The Phase III drilling on Kharsang is
now nearing completion and the Company are now entering a six well
Phase III-extension drilling programme as well as commencing the
next very exciting stages of the Tripura and Manipur programmes
which the Company look forward to updating further on as we
progress over the year.
Our focus remains on North East India and our entry into Myanmar
is a further extension of this strategy as the Company looks to
build upon its core strengths and in-house expertise that are
already in place for this region. Myanmar is a prolific hydrocarbon
region and is an exciting move for us. The Company look forward to
working with our partners in exploring these assets further.
The Company has an excellent portfolio of potentially company
making assets, a team with the expertise to exploit them fully and
an extensive work programme across them all. This is an exciting
time for the Company as it embarks upon the next stages of its work
programmes with a view to proving up the inherent value that the
Company believe is across its portfolio.
CFO's Statement
Overview
2011-12 has proved to be a year where Jubilant has continued to
maximise opportunities in an exciting energy market. Following a
successful listing on AIM in November 2010, the Company has moved
ahead on its journey as an independent and well funded
organisation.
Production and Revenues
The average gross production during the year was 1,771 bopd and
net production was 443 bopd. In the previous year, gross production
was 1,809 bopd and net production was 452 bopd. The marginal
decline in the current period is owing to work over activities and
faster depletion of producing wells. Revenues totaled USD 19.1
million during the year, which was approximately 40% higher than
the previous year. This includes operating revenues of USD 17.4
million on an entitlement interest basis, representing an increase
of 41% against the previous year.
The average oil price realised was USD 115.6/Bbl (premium to
Brent) and for the previous year it was USD 84.9/Bbl, an increase
of 36.2%.
Income statement
During the year ended 31 March 2012, the Group incurred a loss
of USD 12.8 million as compared to a loss of USD 48.1 million
during the year ended 31 March 2011. The decrease in loss is mainly
attributable to
a) an increase in operating revenues from USD 12.3 million in
the previous year to USD 17.4 million in the current year
b) a decrease in personnel costs mainly due to a lower stock
option expense
c) nil impairment in the current year
Cash flow
Closing cash (including short term investments) was USD 81.2
million (March 2011: USD 34.8 million). During the year, the
Company had cash inflows of USD 6.5 million (2011: outflows of USD
3.9 million) from operating activities and outflows of USD 82.1
million (2011: USD 24.2 million) from investing activities, which
were mainly funded by additional loans. The inflows from operating
activities were primarily on account of an increase in revenues
(USD 5.1 million). The outflows on investing activities encompass
the investment in exploration and tangible assets to the tune of
USD 56.1 million and investment of surplus funds in liquid, AAA
rated securities.
The Group has aggressive plans for investment in exploration and
development activities for next financial year with a budgeted
spend around USD 120 million. The investment will be funded by
available cash and debt facilities.
Financing
The documentation and disbursement of USD 50 million loan from
EXIM Bank was completed during the year. This loan was availed to
fund capital expenditure across the blocks. The Company is also in
the process of raising an additional loan of approximately USD 135
million for the KG development.
Jubilant had a net debt of USD 273 million as on 31 March 2012.
A strong cash position of USD 81.2 million, coupled with the
additional proposed debt facility as mentioned above, will
adequately fund the Company's capital expenditure in the coming
year. The Company has further appointed Jefferies for advising it
on a range of strategic options for the business and its medium to
long term funding.
Financial Strategy & Outlook
Jubilant is looking at a multi pronged strategy of improving
cash flows through increased revenues from Kharsang and forthcoming
revenues from KG, reducing finance costs and achieving operational
efficiencies. With its immediate cash requirements tied up, the
Company is focussed on its medium to long term funding needs. The
other focus of the Group this year is to rationalise and simplify
the corporate structure to achieve overall operational,
administrative and tax efficiencies.
Consolidated Statement of Comprehensive Income for the year
ended 31 March 2012
(in thousands of US Dollars) For the year ended For the year
ended
31 March 2012 31 March 2011
------------------------------------------- ------------------- --------------
Oil and natural gas revenue 17,372 12,320
Other income 1,691 1,277
19,063 13,597
------------------------------------------- ------------------- --------------
Production and operating expenses 2,370 2,840
Personnel costs 7,739 9,054
Depletion, depreciation and amortisation 3,286 3,270
Impairment loss on intangible exploration
assets - 26,535
Other expenses 4,848 6,036
18,243 47,735
------------------------------------------- ------------------- --------------
Results from operating activities 820 (34,138)
Finance income 2,400 4,473
Finance expenses 9,662 12,313
Net finance expense (7,262) (7,840)
------------------------------------------- ------------------- --------------
Loss before income taxes (6,442) (41,978)
Income tax expense (6,354) (6,124)
Loss for the period (12,796) (48,102)
------------------------------------------- ------------------- --------------
Other comprehensive income
Foreign currency translation difference
for foreign operations (6,672) (840)
------------------------------------------- ------------------- --------------
Other comprehensive income for the
period,
net of income tax (6,672) (840)
Total comprehensive income for the
period (19,468) (48,942)
------------------------------------------- ------------------- --------------
Loss attributable to:
Owners of the Company (12,796) (48,102)
Total comprehensive income attributable
to:
Owners of the Company (19,468) (48,942)
Basic and diluted earnings (loss)
per share (USD) (0.031) (0.135)
------------------------------------------- ------------------- --------------
Consolidated Statement of Financial Position as at 31 March
2012
(in thousands of US Dollars) As at As at
31 March 2012 31 March 2011
-------------------------------------- -------------- --------------
Current Assets
Inventories 898 696
Short Term investments 24,857 -
Current tax assets 1,834 1,423
Trade and other receivables 26,852 28,633
Other current assets 847 1,617
Cash and cash equivalents 56,287 32,175
Total Current Assets 111,575 64,544
-------------------------------------- -------------- --------------
Non Current Assets
Property, plant and equipment 117,694 84,276
Intangible exploration and other
intangible assets 193,153 170,600
Trade and other receivables 970 1,024
Other non-current assets 1,889 546
Total non-current assets 313,706 256,446
-------------------------------------- -------------- --------------
Total Assets 425,281 320,990
-------------------------------------- -------------- --------------
Equity
Issued and paid-up share capital 5,581 5,581
Share premium 105,047 105,047
Retained earnings (105,909) (93,113)
Stock options outstanding reserve 12,358 8,196
Foreign currency translation reserve (14,879) (8,207)
2,198 17,504
-------------------------------------- -------------- --------------
Current Liabilities
Loans and borrowings 16,051 2,150
Trade and other payables 23,058 16,530
Current tax liabilities 536 -
Other current liabilities 1,094 945
40,739 19,625
-------------------------------------- -------------- --------------
Non Current Liabilities
Loans and borrowings 360,695 264,739
Trade and other payables 254 725
Employee benefits 604 284
Provisions 1,332 939
Deferred tax liabilities 19,321 17,018
Other non-current liabilities 138 156
382,344 283,861
-------------------------------------- -------------- --------------
Total liabilities 423,083 303,486
-------------------------------------- -------------- --------------
Total equity and liabilities 425,281 320,990
-------------------------------------- -------------- --------------
Consolidated Statement of Cash Flows for the year ended 31 March
2012
(in thousands of US Dollars) For the year
For the year ended ended
31 March 2012 31 March 2011
--------------------------------------------- ------------------- --------------
Cash flows from operating activities
(12,796) (48,102)
Adjustments for:
Depletion and depreciation 3,150 3,076
Amortisation of other intangible assets 136 194
Impairment losses on intangible exploration
assets - 26,535
Net finance expenses 6,890 7,627
Equity-settled share-based payment
expense 4,162 6,383
Income tax expense 1,139 2,815
Deferred tax expense 5,215 3,309
Loss on sale of property, plant and
equipment 7 18
Change in working capital (610) (2,148)
--------------------------------------------- ------------------- --------------
Cash generated from / (used in) operating
activities 7,293 (293)
Income tax paid (820) (3,597)
Net cash generated from / (used in)
operating activities 6,473 (3,890)
--------------------------------------------- ------------------- --------------
Cash flows from investing activities
Interest received 1,241 923
Dividend received - 16
Acquisition of property, plant and
equipment, intangible exploration
assets and other intangible assets (56,066) (37,141)
Proceeds from disposal of property,
plant and equipment 1 21
Loans given (580) (6,747)
Loans received back - 17,818
Change in advances to co-venturers (3,058) (1,770)
Investment in non-trade investments (87,526) (3,486)
Proceeds from disposal of non-trade
investments 62,665 5,389
Investment in term deposits and restricted
cash (766) (1,440)
Proceeds from disposal of term deposits
and restricted cash 2,342 2,423
Tax paid on interest income (389) (196)
Net cash (used in) investing activities (82,136) (24,190)
--------------------------------------------- ------------------- --------------
Consolidated Statement of Cash Flows for the year ended 31 March
2012 (contd.)
(in thousands of US Dollars) For the year For the year ended
ended
March 31 2012 March 31 2011
----------------------------- -------------- -------------------
Cash flows from financing activities
Proceeds from issue of ordinary shares - 83,465
Proceeds from loans and borrowings 140,760 58,910
Payment of debt transaction and share
issuance cost (300) (5,263)
Repayment of loans and borrowings (571) (50,671)
Interest and dividend paid (34,564) (45,598)
Net cash generated from financing activities 105,325 40,843
---------------------------------------------- --------- ---------
Net increase in cash and cash equivalents 29,662 12,763
CASH AND CASH EQUIVALENTS -
Opening cash and cash equivalents 32,175 19,434
Effect of exchange rate fluctuations (5,550) (22)
Closing cash and cash equivalents 56,287 32,175
---------------------------------------------- --------- ---------
Consolidated Statement of Changes in Equity for the year ended
31 March 2012
(in thousands Share Share Retained Stock options Foreign Total
of US Dollars) capital premium earnings outstanding currency equity
reserve translation
reserve
--------------------------- --------- --------- ---------- -------------- ------------- ---------
Balance as at
1 April 2010 4,298 - (45,112) 1,813 (7,367) (46,368)
Total comprehensive
income for the
year
Loss for the year - - (48,102) - - (48,102)
Other comprehensive
income:
Foreign currency
translation reserve - - - - (840) (840)
Total other comprehensive
income - - - - (840) (840)
--------------------------- --------- --------- ---------- -------------- ------------- ---------
Total comprehensive
income for the
year - - (48,102) - (840) (48,942)
--------------------------- --------- --------- ---------- -------------- ------------- ---------
Transactions with
owners recorded
directly in equity:
Distribution to
shareholder on
issue of preference
shares to Jubilant
Enpro - - (636) - - (636)
Issuance of ordinary
shares by JENV 1,283 110,217 - - - 111,500
Deduction of share
issue expenses - (5,170) - - - (5,170)
Share-based payment
transactions - - - 6,383 - 6,383
Deferred tax impact
on group financing/other
financial liabilities
recognized directly
in retained earnings - - 737 - - 737
1,283 105,047 101 6,383 - 112,814
--------------------------- --------- --------- ---------- -------------- ------------- ---------
Balance as at
31 March 2011 5,581 105,047 (93,113) 8,196 (8,207) 17,504
--------------------------- --------- --------- ---------- -------------- ------------- ---------
Consolidated Statement of Changes in Equity for the year ended
31 March 2012 (contd.)
(in thousands of Share Share Retained Stock options Foreign Total
US Dollars) capital premium earnings outstanding currency equity
reserve translation
reserve
--------------------------- --------- --------- ---------- -------------- ------------- ---------
Balance as at 1
April 2011 5,581 105,047 (93,113) 8,196 (8,207) 17,504
Total comprehensive
income for the year
Loss for the year - - (12,796) - - (12,796)
Other comprehensive
income:
Foreign currency
translation reserve - - - - (6,672) (6,672)
Total other comprehensive
income - - - (6,672) (6,672)
--------------------------- --------- --------- ---------- -------------- ------------- ---------
Total comprehensive
income for the year - - (12,796) - (6,672) (19,468)
--------------------------- --------- --------- ---------- -------------- ------------- ---------
Transactions with
owners recorded
directly in equity:
Share-based payment
transactions - - - 4,162 - 4,162
- - - 4,162 - 4,162
--------------------------- --------- --------- ---------- -------------- ------------- ---------
Balance as at 31
March 2012 5,581 105,047 (105,909) 12,358 (14,879) 2,198
--------------------------- --------- --------- ---------- -------------- ------------- ---------
Notes to the accounts
1. General and principal activities
Jubilant Energy NV ('the Company' or 'JENV') was incorporated on
12 June 2007, in Amsterdam, the Netherlands, as a company with
limited liability. The registered office of the Company is
Orlyplein 10, Floor 24, 1043 DP Amsterdam, the Netherlands. The
Company is a subsidiary of Jubilant Energy (Holdings) B.V. (JEHBV),
a Netherlands company, which in turn is a wholly-owned subsidiary
of Jubilant Enpro Private Limited ('Jubilant Enpro'), a company
incorporated under the laws of India. On 24 November 2010, the
Company commenced trading on Alternative Investment Market (AIM),
London.
The abbreviated consolidated financial information as at and for
the year ended 31 March 2012 comprises the Company and its
subsidiaries (together referred to as the 'Group' and individually
as 'Group entity') and the Group's proportionate interest in
jointly controlled assets in unincorporated joint ventures.
The Group is engaged in the exploration for and development and
production of oil and natural gas. It conducts many of its
activities jointly with others. The abbreviated consolidated
financial information reflects only the Group's proportionate
interest in such activities.
2. Summary of significant accounting policies
The abbreviated consolidated financial information has been
derived from the Company's Consolidated Financial Statements for
the year ended 31 March 2012 and the Company's Consolidated
Financial Statements for the year ended 31 March 2011 which has
been prepared in accordance with International Financial Reporting
Standards (IFRS) as adopted by the EU. These standards have been
consistently applied throughout the Group and in previous year. The
Company's Consolidated Financial Statements for the year ended 31
March 2012 and the Company's Consolidated Financial Statements for
the year ended 31 March 2011 were authorised for issue by the Board
of Directors on 29 June 2012 and on 29 June 2011 respectively.
Basis of preparation
The abbreviated consolidated financial information, which
comprise the abbreviated statement of financial position as at 31
March 2012, the abbreviated statement of comprehensive income,
statement of changes in equity and cash flow statement for the year
then ended, and related notes, have been derived from the Company's
Consolidated Financial Statements for the year ended 31 March 2012,
and the Company's Consolidated Financial Statements for the year
ended 31 March 2011, on which the Company's audit firm KPMG
Accountants N.V. ("KPMG") provided an unqualified audit opinion
dated 29 June 2012 and on 29 June 2011 respectively.
For a better understanding of the Company's financial position
and results, we emphasize that the abbreviated consolidated
financial information should be read in conjunction with the
Company's Consolidated Financial Statements as of 31 March 2012 and
for the year then ended and the Company's Consolidated Financial
Statements as of and for the year ended 31 March 2011, from which
the abbreviated consolidated financial information was derived.
3. Trade and other receivables - current
(in thousands of US Dollars) As at As at
31 March 2012 31 March 2011
--------------------------------------- -------------- --------------
Trade receivables 1,744 1,401
Due from related parties 12,584 13,492
Recoverable from co-venturers (refer
to Footnote a) 8,352 7,024
Term deposits 97 2,631
Interest accrued but not due on
deposits 77 202
Security deposit 62 234
Restricted cash - margin money (refer
to Footnote b) 3,936 3,649
26,852 28,633
--------------------------------------- -------------- --------------
Footnotes:
a) Represents amounts due from co-venturers on account of
non-payment of cash calls raised by the Group in respect of
operated blocks and /or advance payments made by the Group in
respect of non-operated blocks.
b) Restricted cash - margin money represents margin money
against guarantees and letters of credit. Restrictions on margin
money deposits are released on the expiry of the terms of
guarantees and letters of credit.
4. Loans and borrowings (including accrued interest)
(in thousands of US Dollars) As at 31 March 2012
Current Non-current Total
------------------------------ -------- ------------ --------
Financial liabilities
at amortised cost
Secured foreign currency
term loans 1,531 85,292 86,823
Secured term loans from
banks 14,495 249,018 263,513
12% Redeemable preference
shares - 26,374 26,374
Other 25 11 36
16,051 360,695 376,746
------------------------------ -------- ------------ --------
(in thousands of US Dollars) As at 31 March 2011
Current Non-current Total
------------------------------ -------- ------------ --------
Financial liabilities
at amortised cost
Secured foreign currency
term loans 1,135 33,014 34,149
Secured term loans from
banks 988 204,950 205,938
12% Redeemable preference
shares - 26,754 26,754
Other 27 21 48
2,150 264,739 266,889
------------------------------ -------- ------------ --------
5. Share capital
Issued and paid-up share capital
(in thousands of US Dollars) As at As at
31 March 2012 31 March 2011
--------------------------------- -------------- --------------
Opening balance as at 1 April 5,581 4,298
Issuance of 69,379,430 ordinary
shares of EUR 0.01 each - 978
Issuance of 8,162,285 ordinary
shares of EUR 0.01 each - 115
Issuance of 13,467,772 ordinary
shares of EUR 0.01 each - 190
Closing balance as at 31 March 5,581 5,581
--------------------------------- -------------- --------------
Share premium
(in thousands of US Dollars) As at As at
31 March 2012 31 March 2011
------------------------------------ -------------- --------------
Opening balance as at 1 April 105,047 -
Issuance of 69,379,430 ordinary
shares of EUR 0.01 each (Refer
note 2(i)) - 84,022
Issuance of 8,162,285 ordinary
shares of EUR 0.01 each (Refer
note 2(ii)) - 9,885
Issuance of 13,467,772 ordinary
shares of EUR 0.01 each (Refer
note 2(iii)) - 16,310
Deduction for share issue expenses - (5,170)
Closing balance as at 31 March 105,047 105,047
------------------------------------ -------------- --------------
Footnotes:
1) The authorised share capital of JENV as at 31 March 2012 is
USD 12,145 thousand equivalent to EUR 8,742 thousand (31 March
2011: USD 12,145 thousand equivalent to EUR 8,742 thousand).
2) Share capital
Year ended 31 March 2011
The issued share capital as at 31 March 2011 is the issued share
capital of JENV amounting to USD 5,581 thousand (416,306,787
ordinary shares of EUR 0.01 each amounting to EUR 4,163
thousand).
(i) On 24 November 2010 the Company commenced trading on
Alternative Investment Market (AIM), London, having raised GBP
53,422 thousand (USD 85,000 thousand) by way of placing 69,379,430
new ordinary shares in the capital of the Company at a placing
price of GBP 0.77 (equivalent USD 1.23) per share.
(ii) As per the modification agreement dated 22 July 2010 with
EXIM, as on 24 November 2010, USD 10,000 thousand of loan from EXIM
to JENV, was converted to equity shares by issuance of 8,162,285
new ordinary shares at the placing price of GBP 0.77 (equivalent
USD 1.23) per share.
(iii) As per the terms of deed of modification dated 21 June
2010 with the Dynamic Funds, the outstanding loan amount of USD
16,500 thousand as on 24 November 2010, given to JEL Canada by
Dynamic Funds, was converted to equity shares by issuance of
13,467,772 number of new ordinary shares at a price of GBP 0.77
(equivalent USD 1.23) per share of JENV.
Year ended 31 March 2012
There is no change in the issued share capital of JENV during
the year ended 31 March 2012.
All issued shares are fully paid up. The holders of ordinary
shares are entitled to receive dividend as declared from time to
time and are entitled to one vote per share at the meetings of the
Group.
3) Share premium
During the year ended 31 March 2011, the Group has issued a
total of 91,009,487 ordinary shares (refer sub note 2 above) at a
premium amounting to USD 110,217 thousand. Further during the year
ended 31 March 2011, the Group has adjusted share issue expenses
amounting to USD 5,170 thousand (including USD 2,482 thousand paid
to underwriters and balance paid to various consultants) against
the share premium.
6. Impairment
During previous years, Group has recognised impairment loss for
carrying value of exploration and evaluation assets for Mehsana,
Cauvery and Australia blocks. There is no impairment during the
current year.
7. Earnings per share
The following is the reconciliation of the loss attributable to
ordinary shareholders and weighted average number of ordinary
shares used in the computation of basic and diluted earnings per
share:
For the year For the year ended
ended
31 March 2012 31 March 2011
--------------------------------------- -------------- -------------------
Loss
Loss attributable to ordinary
shareholders
(in thousands of US Dollars) (12,796) (48,102)
Ordinary shares
Weighted average number of ordinary
shares outstanding used in computing
EPS (Nos.) 416,306,787 357,212,956
Basic and diluted EPS (USD per
share) (0.031) (0.135)
--------------------------------------- -------------- -------------------
The Group has issued options to its employees during the year
ended 31 March 2012 and 31 March 2011. Since the Group does not
have profits during the current and in the previous year, the
options issued are considered to have an anti-dilutive effect.
Therefore, the basic and diluted EPS are the same.
8. Related Parties
(a) Related parties and nature of relationships where control exists
Relationship Name of related parties
Ultimate holding company Jubilant Enpro Private
Limited
Holding company Jubilant Energy Holding
BV
(b) Related parties and nature of relationships where
transactions have taken place during the year
Relationship Name of related parties
Fellow subsidiary Western Drilling Contractors Private
Limited
Enterprises that are directly 1) Jubilant Securities Private
or indirectly under the control Limited
or significant influence of 2) Jubilant Capital Private Limited
key management personnel 3) Jubilant Life Sciences Limited
(formerly Jubilant Organosys Limited)
Joint Venture of Ultimate holding Geo Enpro Petroleum Limited
company
Key Management Personnel 1) Shyam S Bhartia (Promoter
and Director)
2) Hari S Bhartia (Promoter and
Director)
3) Sir Robert Paul Reid
4) Arun Kumar Duggal
5) Dr. Andrew William Wood
6) Shahzaad S Dalal
7) Ajay Khandelwal
8) Vipul Agarwal
9) Ramakrishnan Ramaswamy (resigned
w.e.f. 30 April 2010)
10) T.K. Basu (resigned w.e.f.
30 September 2010)
11) Ramesh Bhatia
12) Apoorva Ranjan
13) Tojo Jose (resigned w.e.f.
26 November 2010)
(c) Related party transactions
(in thousands of US Ultimate Holding Holding Company Joint Venture
Dollars) Company of the Ultimate
Holding company
For the year For the year For the year
ended ended ended
31 March 31 March 31 March 31 March 31 March 31 March
2012 2011 2012 2011 2012 2011
------ ----------------------------- --------- --------- --------- --------- --------- ---------
(i) Transactions:
Loans /advances given - 3,050 - - - -
Repayment of loans/advances - 13,963 - - - -
Share of Joint operative
expenditure paid - - - - 11,941 5,166
Expenses incurred - - - - 1,205 -
by the Group on their
behalf
Bank charges and 241 - - - - -
guarantee commission
Interest income on - 343 - - - -
inter corporate deposits
Expenses incurred
on behalf of the
Group - - - 134 12,028 5,163
Interest on redeemable
preference shares 3,233 2,601 - - - -
Repayment to creditors 26 - - - - -
Issue of 12% Redeemable - 4,556 - - - -
preference shares
Distribution on issue - 636 - - - -
of preference shares
recognised directly
in retained earnings
------ ----------------------------- --------- --------- --------- --------- --------- ---------
(in thousands of US Ultimate Holding Holding Company Joint Venture
Dollars) Company of the Ultimate
Holding company
As at As at As at
-------------------- -------------------- --------------------
31 March 31 March 31 March 31 March 31 March 31 March
2012 2011 2012 2011 2012 2011
------ ----------------------------- --------- --------- --------- --------- --------- ---------
(ii) Balances outstanding
Trade and other receivables
(loans and advances
recoverable) 705 808 - - 266 9
Trade and other payables 241 26 432 465 - -
Redeemable preference
shares 26,374 26,754 - - - -
------------------------------------ --------- --------- --------- --------- --------- ---------
(in thousands of US Dollars) Fellow Subsidiary Enterprises that are directly
or indirectly under the
control or significant
influence of key management
personnel
For the year ended For the year ended
------------------------- --------------------------------
31 March 31 March 2011 31 March 31 March 2011
2012 2012
------ ----------------------------- --------- -------------- ------------ ------------------
(i) Transactions:
Loans and advances
given - - 580 3,505
Loan and advances - 3,555 - -
recovered
Expenses incurred
on behalf of the
Group - - 24 241
Interest on redeemable
preference shares - - - 17
Interest paid - - - 31
Preference shares
redeemed - - - 645
------------------------------------ --------- -------------- ------------ ------------------
(in thousands of US Dollars) Fellow Subsidiary Enterprises that are directly
or indirectly under the
control or significant
influence of key management
personnel
------------------------- --------------------------------
As at As at
------------------------- --------------------------------
31 March 31 March 2011 31 March 31 March 2011
2012 2012
------ ----------------------------- --------- -------------- ------------ ------------------
(ii) Balances outstanding
Trade and other receivables
(loans and advances
recoverable) 2 2 11,611 12,673
------------------------------------ --------- -------------- ------------ ------------------
(d) Guarantees given by ultimate holding company
i. Secured foreign currency term loans taken by JENV from EXIM:
Corporate guarantees in respect of these loans have been given by
Jubilant Enpro.
ii. Secured term loans taken by JEKPL from banks: These loans
are secured by primary charge on all present and future receivables
of Jubilant Enpro relating to Kharsang field.
iii. Non-fund based limit taken by JOGPL, JODPL and JEKPL to
furnish bank guarantee:Corporate guarantee in respect of this
non-fund based facility has been given by Jubilant Enpro.
(e) As at 31 March 2012, performance guarantee amounting to USD
904 thousand (31 March 2011: USD 1,035 thousand) given on behalf of
Jubilant Securities Private Limited against a lien on the term
deposits of JENVPL in respect of Golaghat block.
(f) As at 31 March 2012, performance guarantee amounting to USD
1,907 thousand (31 March 2011: USD 2,183 thousand) given on behalf
of Jubilant Capital Private Limited against a lien on the term
deposits of JEKPL in respect of Ankleshwar block.
(g) As at 31 March 2012, performance guarantee amounting to USD
895 thousand (31 March 2011: USD 1,024 thousand) given on behalf of
Jubilant Capital Private Limited against a lien on the term
deposits of JENVPL in respect of Ankleshwar block.
(h) Pledge of 51% of promoters' shareholding in JEKPL in respect
of term loan facility from banks.
(i) Non-disposal undertaking along with power of attorney in
respect of 51% of the total issued and paid-up shares of JODPL held
by JOGIL.
(j) BG limit of USD 3,849 thousand (31 March 2011: USD 4,405
thousand) is available for JCPL and JSPL within the overall limit
of USD 14,625 thousand (31 March 2011: USD 16,741 thousand) of
JOGPL and negative lien on participating interest of JCPL and JSPL
in the blocks.
9. Contingencies
Contingent liabilities in respect of matters currently in
dispute comprise:
S Entity Dispute With Description Status
No
---- ----------------- ------------------ --------------------------------- ----------------------
1 Jubilant Service tax Alleged for non-payment Appeal pending
Oil and Gas authorities of service tax on advisory with Customs,
Private Limited and assisting services Excise and Service
(JOGPL) provided to various foreign Tax Appellate
entities for their operations Tribunal
in India. The amount involved
is USD 179 thousand.
---- ----------------- ------------------ --------------------------------- ----------------------
2 Jubilant Dewanchand JOGPL alleged DRIPL for Appeal pending
Oil and Gas Ramsaran delays in mobilising a with High Court
Private Limited Industries rig. JOGPL has invoked of Gauhati,
(JOGPL) Private Limited the performance bank guarantee. Agartala Bench
('DRIPL') DRIPL has claimed the amount
of bank guarantee encashed
by JOGPL along with interest.
The amount involved is
USD 72 thousand.
---- ----------------- ------------------ --------------------------------- ----------------------
3 Jubilant Excise department Short payment of oil cess, Appeal pending
Energy Kharsang the amount involved is with Appellate
Private Limited USD 17 thousand. Tribunal and
(JEKPL) Commissioner
(Appeal)
---- ----------------- ------------------ --------------------------------- ----------------------
4 Jubilant Geophysical Non-performance of entire Appeal pending
Energy Kharsang Institute 3D seismic project by GII with Arbitration
Private Limited of Israel in accordance with Contract Tribunal
(JEKPL) (GII) provisions. The amount
involved is USD 788 thousand,
against which Operator
has filed a counter claim
of USD 533 thousand. (JEKPL's
share)
---- ----------------- ------------------ --------------------------------- ----------------------
5 Jubilant Service tax Service tax on the off-shore Appeal pending
Offshore authorities services received by the with Custom
Drilling Block, The amount involved Excise and Appellate
Private Limited is USD 430 thousand. Tribunal (CESTAT)
(JODPL)
---- ----------------- ------------------ --------------------------------- ----------------------
6 Jubilant Tuff Drilling Claim due to the loss caused Matter is pending
Offshore Private Limited by illegal termination in arbitration
Drilling of contract. The amount
Private Limited involved is USD 13,842
(JODPL) thousand, against which
operator has filed a counter
claim of USD 9,923 thousand.
(JODPL's share)
---- ----------------- ------------------ --------------------------------- ----------------------
7 Jubilant Saipem (Portugal) Claim related to billing Matter is pending
Offshore Comercio of higher contract day in arbitration
Drilling Maritimo rate. The amount involved
Private Limited Su Lda is USD 15,428 thousand,
(JODPL) against which operator
has filed a counter claim
of USD 2,857 thousand.
(JODPL's share)
---- ----------------- ------------------ --------------------------------- ----------------------
8 Jubilant Atwood Oceanics Service tax on drilling, Appeal pending
Offshore Pacific Ltd completing or abandoning with Gujarat
Drilling ("AOPL") the wells identified by High Court
Private Limited GSPC drilling program from
(JODPL) July 2007 to July 2009.
The amount involved is
USD 131 thousand.
---- ----------------- ------------------ --------------------------------- ----------------------
9 Jubilant Operator Default notices to Jubilant Group has settled
Energy Limited of T-47/P for failing to pay its the liability
(JEL) share of joint account with the Operator
expenses at USD 1,740
thousand
---- ----------------- ------------------ --------------------------------- ----------------------
Considering the facts and current status of the cases listed
above, management is confident that there shall not be any
liability devolving on the Group in this matter.
10. Events occurring after the balance sheet date
Subsequent to the balance sheet date, the Group was awarded the
block number PSC-I under the Myanmar Onshore Blocks Bidding Round
in 2011. The Production Sharing Contract (PSC) for the block was
executed at Nay Pyi Taw on 28 May 2012 between the Group, Parami
Energy Development Company Limited (Parami) and Myanmar Oil &
Gas Enterprise (MOGE) (an enterprise formed by the Government of
the Republic of the Union of Myanmar). The Group holds a 77.5%
participating interest in this block through its subsidiary
Jubilant Oil & Gas Private Limited (JOGPL), India and will be
the Operator of the block. The block covers an area of
approximately 3600 sq km and is located about 125 kms North West of
Yangon City.
Glossary
APM Administered Price Mechanism
Bbl Barrel
Bcf Billion cubic feet
Bopd Barrels oil per day
CAGR Compound Annual Growth Rate
CGU Cash Generating Unit
CNG Compressed Natural Gas
CPR Competent Person' Report
DDE Deen Dayal East
DDW Deen Dayal West
DGH Directorate General of Hydrocarbons
DOC Declaration of Commerciality
FDP Field Development Plan
GCA Gaffney, Cline & Associates (Consultants)
Pte Ltd
GCoS Geological Chance of Success
Lkms Line kilometres
LNG Liquefied Natural Gas
MC Management Committee
MMBbl Millions of barrels
Mmboe Million barrels of oil equivalent
Mmbtu Millions of British Thermal Units
MPD Managed Pressure Drilling
Mscf Metric standard cubic feet
MWP Minimum Work Programme
NELP New Exploration Licensing Policy
OALP Open Acreage Licensing Policy
OGT Onshore Gas Terminal
PLQP Pipeline Living Quarters Platform
PML Petroleum Mining Licence
PSC Production Sharing Contract
TVD True Vertical Depth
TVDss True Vertical Depth Subsea
WHP Well Head Platform
WI Working Interest
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR SSAFIFFESEIW
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