TIDMJUB
RNS Number : 6265K
Jubilant Energy N.V.
26 June 2014
26June 2014
Jubilant Energy NV
("Jubilant" or "the Company")
Results for the year ended 31March 2014
Jubilant Energy N.V, an upstream oil and gas company with assets
in major proven and prolific hydrocarbon basins, primarily in India
and Myanmar, is pleased to announce its results for the year ended
31 March 2014.
HIGHLIGHTS
Significant Milestones
-- Significant progress has been made in the KG offshore block.
Development of the Deen Dayal West Field in KG Deen Dayal block is
now progressing towards delivering first commercial gas by Q2 FY
2014-15. All the offshore and onshore facilities along with sub-sea
pipeline are mechanically completed and offshore facilities (WHP
& PLQP) are pre-commissioned. Going forward, the Consortium has
also recognized the importance of production optimization and has
contracted an independent consultancy firm of international repute
to evaluate and project manage fraccing of development wells and
achieving well path optimization.
-- Commerciality of the six new discoveries for the areas (DDE,
DDN, DDWDT and DDNE-BRU) other than DDW & DDW-Extension in KG
Block declared in January 2014 backed by review of Management
Committee which accorded Best Estimate GIIP of 8.392 TCF.
Integrated Field Development Plan (FDP) to develop these areas is
under preparation and is targeted to be submitted by December 2014
to the Government for approval.
-- The Company has declared two gas discoveries in exploration
well North Atharamura-1 (NA-1) in northern part of the Tripura
block as of commercial interest in FY 2013-14, of which one is at a
significantly shallow depth of 600-700 meters and the other
relatively deeper in Bhuban reservoir.
-- Management Estimate of Best Case GIIP in North Atharamura
shallow Bhuban Reservoir is 341 BCF with 2C of 239 BCF while in
deeper Bhuban reservoir Best Case GIIP and 2C Resources are 363 BCF
and 145 BCF respectively.
-- Company to appraise discoveries in the next two years for
which the appraisal plan has been submitted to DGH for
approval.
-- Commerciality of the Kathalchari Middle Bhuban discovery in
the southern part of Tripura block was declared in January 2014
backed by review of Management Committee which accorded Best
Estimate GIIP of 1,212 BCF. It is targeted to submit Field
Development Plan for the Kathalchari discovery by end of year 2014
to the Government for approval.
-- In the Sanand Miroli block, intermittently test production
has started in Part-B (Miroli) since November 2013. The well SE-3
and SE-4 from SE-4 cluster in Part A (Sanand) tested oil from Kalol
formation at the rate of 180-200 BOPD in September 2013. Revised
Field Development Plan including the Kalol discovery will be
submitted shortly, approval of which will not only mature
significant amount of resources to reserves but regular production
will also start once the facilities are in place. Currently,
transient test production is being carried out from the two Kalol
discovery wells and post financial year 2013-14 more than 4,000
bopd of gross test production has been produced in one month from
the two wells.
-- The Company has successfully completed the 6 well Phase III
Extension development drilling campaign in Kharsang. The drilling
campaign initiated last fiscal year was completed this year with
successful testing of the wells and placing the wells on production
in FY 2013-14. These successful testing were announced over the
period under review. These wells have contributed significantly to
Kharsang production. The only well which did not produce crude oil,
tested natural gas and is kept closed for future development.
Production
-- 654,166 barrels gross oil (163,542 barrels net to Jubilant)
were produced from Kharsang field during the reporting period,
including incremental production from the new Phase III Extension
development drilling wells, as against 718,026 barrels gross oil
production (179,507 barrels net to Jubilant) in FY 2012-13.
-- Intermittently test Crude Oil production commenced in
November 2013 from the Miroli area (Part B) of Sanand-Miroli Block.
Total gross production during the reporting period stood at 969
barrels (194 barrels, net to Jubilant).
-- Extended transient testing from Sanand area (Part A) SE-3 and
SE-4 wells from Kalol reservoir discovery commenced in beginning of
FY 2014-15. Regular production is expected to commence by H2 FY
2014-15, post approval of Revised Field Development Plan (RFDP) and
facilities being in place by such time. As of now more than 4000
bopd of gross test production has been produced in one month from
the two wells.
-- First gas at the Deen Dayal West (DDW) field in the KG
offshore block is expected in Q2 FY 2014-15.
Operations
-- Seismic processing and interpretation of 125 LKM 2D data on
the Atharamura anticline in the northern part of Tripura block was
completed. Drilling of exploratory well North Atharamura-1 was also
completed in the block with testing carried out at two levels.
-- Appraisal plan to appraise the North Atharamura discovery submitted to DGH for approval.
-- High quality 3D seismic data was successfully acquired and
processed in the Kharsang field, depth processing and
interpretation of which is currently in progress through competent
third party consultants.
-- Phase III Extension drilling campaign was successfully
completed at Kharsang with all wells except one producing crude
oil. The only well which didn't produce crude oil tested natural
gas and is being kept closed for future development.
-- Successful mechanical completion of all the offshore (WHP
& PLQP) and onshore (OGT) development facilities at Deen Dayal
West (DDW) field in KG block was achieved. Commissioning of the
facilities is expected soon, followed by commencement of production
by Q2 FY 2014-15.
-- Successful testing achieved in two wells SE-3 and SE-4 at
Kalol level in the southern part of Part A of Sanand-Miroli block,
each producing more than 100 BOPD during testing.
Financial
-- Achieved a gross sales volume of 642,607 barrels of oil
during the year (Net to Jubilant 160,652 barrels of oil), lower by
8% from previous year.
-- Operating revenues at USD 15.8 million on net entitlement
interest basis, lower by 11% from previous year due to lower
production, sales and lower oil price.
-- Average oil price realised USD 109.24 per barrel (Previous Year USD 112.5 per barrel).
-- Capital expenditure of over USD 53 million during the year,
compared to USD 90 million in the previous financial year.
-- Profit from operating activities: USD 8.2 million as against
USD 6.9 million in previous year, higher by 19%.
-- During the year, the Company raised loan of USD 15 million
from Axis Bank, Singapore and raised additional USD 90 million
unsecured loan from Jubilant Bhartia Group companies for Company's
operations and debt repayments and servicing.
-- Outstanding debt of USD 487 million, including USD 123
million from Jubilant Bhartia Group companies, as on 31 March 2014.
Undrawn facilities of USD 32.6 million and cash balance of USD 25.7
million available to the Company. Company is exploring other
avenues to raise additional capital.
Outlook
-- Expected production from KG DD-West field will be Company's first commercial gas production.
-- Submit Field Development Plan for the six discoveries in KG
Block, which when approved will mature significant amount of
Contingent Resources to 2P Reserves.
-- Increase the productivity per well through hydrofraccing in
future DDW development wells through the integrated project
management firm.
-- Submit Field Development Plan for Kathalchari discovery in
Tripura Block by end 2014, approval of which will move significant
Contingent Resources to 2P Reserves category. Objective is to fast
track production of first gas from the Kathalchari discovery.
-- Appraise the North Atharamura-1 well discovery over the next
two years with objective to submit the Declaration of Commerciality
in May, 2016.
-- New high quality 3D seismic data in Kharsang will open up new
in-fill, step-out development wells drilling to increase the
production and drilling of untested deeper prospects of different
stratigraphic levels like lower part of Girujan, Tipam and
Barail.
-- The recent commencement of oil production from the Miroli
area and expected regular production from Sanand area of block
CB-ONN-2002/3 will be incremental to the Company's net oil
production in the coming days.
-- Jubilant is funded to carry out its anticipated work
programme in the coming year with available cash, undrawn
facilities and funding support from the Promoters up to December
2015.
Mr. Shyam Bhartia, Chairman and Mr. Hari Bhartia, Co-Chairman of
Jubilant Group commented:
"Throughout the period under review we have continued to focus
on our key assets. In terms of production, the Company continues to
work closely with the Operator to enhance production at the
Kharsang field. Meanwhile, the KG basin continues to be our most
significant asset, with first gas expected in Q2 2014-15. The
upside development potential of the block has been further enhanced
by the recent approval by DGH of the Declaration of Commerciality,
covering all the other six discoveries in the block. In addition,
the new gas tariff due to be announced by the Government of India
is expected to contribute significantly to the value of the DDW
gas.
Our exploration programme is also continuing in parallel. We are
excited about the recent gas discoveries at the Tripura block and
we are currently developing a strategy to fast track first gas at
the Kathalchari discovery. In addition, an appraisal program at the
North Atharamura discovery was finalized and submitted to DGH. The
commencement of oil production from the Sanand-Miroli Block will
also have an incremental impact on the Company's net
production.
We look forward to further value creation and cost optimisation
initiatives in 2014-15, and we will update the market further over
the course of the year."
Enquiries:
Jubilant Energy Vipul Agarwal +91 120 7186000
Callum Stewart, Adam +44 20 7886
Panmure Gordon James 2500
Competent Person's - Consent for Release
Mr. Ramesh Bhatia -Chief Operating Officer, 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.
Notes and Glossary of abbreviations
The reserve and resource figures disclosed in this announcement
have been estimated using the Petroleum Resources Management System
published by the Society of Petroleum Engineers/ World Petroleum
Council American Association of Petroleum Geologists/ Society of
Petroleum Evaluation Engineers (SPE/WPC/AAPG/SPEE) in March 2007
("SPEPRMS").
2C Resources Contingent Resources are those quantities
of petroleum estimated, as of a given
date, to be potentially recoverable from
known accumulations by application of
development projects, but which are not
currently considered to be commercially
recoverable due to one or more contingencies.
2C Contingent Resource is the Best Estimate.
-------------- -----------------------------------------------
2P Reserves Proved plus Probable Reserves - those
additional reserves which analysis of
geoscience and engineering data indicate
are less likely to be recoverable than
probable reserves.
-------------- -----------------------------------------------
BCF Billion Cubic Feet
-------------- -----------------------------------------------
Best Estimate an estimate representing the best technical
assessment of projected volumes
-------------- -----------------------------------------------
BOPD Barrels oil per day
-------------- -----------------------------------------------
Contingent those quantities of petroleum estimated,
Recoverable as of a given date, to be potentially
Resources recoverable from known accumulations
by application of development projects,
but which are not currently considered
to be commercially recoverable due to
one or more contingencies. Low/Best/High
Estimates represent the reasonable range
of estimated potentially recoverable
volumes at varying degrees of uncertainty.
-------------- -----------------------------------------------
DDW Deen Dayal West
-------------- -----------------------------------------------
DGH Directorate General of Hydrocarbons
-------------- -----------------------------------------------
DOC Declaration of Commerciality
-------------- -----------------------------------------------
EUR Expected Ultimate Recovery
-------------- -----------------------------------------------
FDP Field Development Plan
-------------- -----------------------------------------------
GCA Gaffney Cline & Associates
-------------- -----------------------------------------------
GIIP Gas Initially in Place
-------------- -----------------------------------------------
GOR Gas Oil Ratio
-------------- -----------------------------------------------
KG Krishna Godavari
-------------- -----------------------------------------------
lkm Line Kilometres
-------------- -----------------------------------------------
OGT Onshore Gas Terminal
-------------- -----------------------------------------------
PEL Petroleum Exploration License
-------------- -----------------------------------------------
PLQP Process cum Living Quarter Platform
-------------- -----------------------------------------------
Those quantities of petroleum which are
estimated, as of a given date, to be
Prospective potentially recoverable from undiscovered
Resources accumulations.
-------------- -----------------------------------------------
PSC Production Sharing Contract
-------------- -----------------------------------------------
MC Management Committee
-------------- -----------------------------------------------
MMBOE Million Barrels of Oil Equivalent
-------------- -----------------------------------------------
MMSCFD Million Standard Cubic Feet
-------------- -----------------------------------------------
MOGE Myanmar Oil & Gas Enterprise
-------------- -----------------------------------------------
NER North-East Region
-------------- -----------------------------------------------
TCF Trillion Cubic Feet
-------------- -----------------------------------------------
WHP Well Head Platform
-------------- -----------------------------------------------
Background Information
Jubilant Energy N.V. (the "Company" or "Jubilant") is an AIM
listed, independent energy company incorporated under the laws of
Netherlands. The Company is engaged in upstream E&P activities
since 1995 and has a diversified and balanced portfolio of oil and
gas assets in proven petroliferous basins comprising of seven key
blocks in various stages of Exploration, Development and Production
of which six blocks are in India and one is in Myanmar.
Out of these seven key blocks, two blocks, the Kharsang Field
and the Sanand Miroli Block are producing oil fields. Kharsang
field has been on commercial production since 1995, while two wells
from Miroli area (Part B of block CB-ONN-2002/3) of the
Sanand-Miroli block were put on test production with intermittent
flow and sales realization accounted under cost instead of revenue
during the period under review. Apart from the above blocks
containing producing oil fields, the Company is currently
participating in development of gas fields in two blocks, Deen
Dayal West (DDW) gas field in Block KG-OSN-2001/3 in KG offshore
basin where the development activities are nearing completion and
expected to be on production by Q2 FY 2014-15 and two discoveries
in the block AA-ONN-2002/1 located in Tripura in the proven and
prolific Cachar-Tripura-Bangladesh (CTB) basin at pre-development
and appraisal stage.
In addition to the above producing and development blocks, the
Company also has two exploration blocks, AA-ONN-2009/1 and
AA-ONN-2009/2, in the state of Manipur, located in unexplored part
of the proven Assam-Arakan Basin, wherein progress post initial
seismic is impeded on account of poor infra-structure and logistic
issues. In the Golaghat block in Assam, Forest Diversion approvals
are awaited. Apart from these blocks in India, the Company entered
into a Production Sharing Contract with MOGE (Myanmar Oil & Gas
Enterprise) and acquired PEL in PSC-I block of Myanmar in August
2012. The block is presently under exploration.
Currently, the Company has on a working interest basis 2P
Reserves, of 33.61 MMboe, and 2C Contingent Resources, of 162.9
MMboe supported by significant Best Estimate Unrisked Prospective
Resources. The Company's 2P reserves are set to increase
substantially in the future, once 2C resources are backed by
necessary FDP submissions and approvals.
Through focused and efficient appraisal and development, the
Company seeks to monetize its reserves and convert its resources to
reserves. The Company's current focus is aimed at monetization of
the reserves by actively pursuing all production enhancement,
development and pre-development activities.
Business Review
A summary on progress in key assets is as below:
Production and near term production upside - Kharsang Field (WI
- 25%)
Jubilant holds a 25% working interest in the block operated by
GeoEnpro Petroleum Ltd. The block is located in the prolific Upper
Assam basin in North East Region of India. As of date, 37 wells are
on production including 5 wells which formed part of the 6 well
Phase-III Extension drilling campaign executed during the period
under review. Total crude oil production for the year stood at
654,166 barrels (163542 barrels net to Jubilant) which is 9% lower
compared to production in FY 2012-13.
The production from the field increased significantly in the
first half of the year following successful execution of Phase-III
Extension drilling program, but, there was decline in production in
the second half of the year because of complexities including wax
inhibition, sand ingression, high water cut and high Gas Oil Ratio
in some of the wells. The Operator has initiated well servicing in
these wells and has also chalked out definitive plan to overcome
these complexities in near future through new technologies and
pilot projects.
In line with the Company's strategy to maximize the potential of
its producing assets, Phase IV drilling campaign along with work
over activities, gas lift project and other enhanced oil recovery
activities will be committed in this fiscal year to arrest decline
in production and increase production from the field.
A high quality 3D seismic survey and its processing over the
field has been completed with a view to understanding full
potential of the Block. Depth processing and interpretation of the
new 3D data is in progress through a competent independent
consultant. Results of the interpretation will be useful in
identifying new infill and step-out drilling locations in existing
producing reservoirs and will add to understanding of deeper
prospects within the block such as the Lower Girujan, Tipam &
Barail formations. Apart from the producing reservoirs, the JV
Consortium in Kharsang estimates a significant resource potential
in Lower Girujan & Tipam reservoirs.
Reserves and Resource estimation as at September 2013 is being
prepared by Gaffney, Cline & Associates ("GCA") and the final
report is in the process of finalization. The Company is hopeful of
increase in estimates of contingent resources.
Development, Production and Near Term Production
Upside-Sanand-Miroli Block (WI - 20%)
Jubilant holds a 20% working interest in the block operated by
Gujarat State Petroleum Corporation Ltd. The Block is located in
the prolific Cambay basin in western India. The year under review
was a milestone year for this block as the test production of crude
oil started from this block.
Intermittent test production from two wells in Part-B of the
block (Miroli area) commenced in November 2013. Cumulative gross
test production for the year under review from this block stood at
969 barrels (194 barrels, net to Jubilant) due to inconsistent
crude lifting. But, this is a temporary issue and will be resolved
once production from Part-A of the block (Sanand area) will
start.
Two wells in the southern part of Part-A of the block, SE-3
& SE-4, have each flown at a rate of 180-200 bopd on testing
within the Kalol formation, where previously only the underlying
Intra-Cambay had tested oil. Revised Field Development Plan (RFDP)
has been submitted to Management Committee, including the Kalol
discovery for approval. The additional information/analysis
requested by DGH on the subject matter is being carried out
currently.
Extended transient testing from Sanand area (Part A) SE-3 and
SE-4 Wells from Kalol reservoir discovery commenced in the
beginning of FY 2014-15; regular production is expected to commence
by H2 FY 2014-15 post approval of Revised Field Development Plan
(RFDP) and the facilities being in place by that time. Post
financial year 2013-14, more than 4000 bopd of gross test
production has been produced in one month from the two wells.
The Company has also carried out in-house detail study to
understand full hydrocarbon potential of this block and is
confident that there are enough resources for production in this
block which will boost Company's top line in near term.
Development & Appraisal - KG Deen Dayal Block (WI - 10%)
The Deen Dayal block in Krishna Godavari basin lies in the
south-east coast of India where the Company has a 10% non-operating
working interest.
Along with the Operator namely Gujarat State Petroleum
Corporation Ltd. (GSPC), the Company actively participates in
technical evaluation and project analysis in the block. Much
awaited first gas production from the near completion development
activities in the Deen Dayal West (DDW) field of the block is
expected by Q2 FY 2014-15. Though there were slight delays and
shifts in first gas target dates, there has been significant
progress in the drilling and facility installation activities in
the field during the period under review. All facilities, both
onshore and offshore, are mechanically completed and offshore
facilities PLQP & WHP are pre-commissioned. Wells D1 and D3 are
completed and ready for production.
Given the tight gas reservoir and high pressure high temperature
(HPHT) properties of the reservoir, the JV Consortium in the Block
has now inducted an international independent consultant of high
reputation to supervise integrated project management, plan and
execute future drilling, testing and completion. Hydraulic
fracturing or hydrofrac, a method globally recognized as a powerful
tool for obtaining optimum production from tight reservoirs, will
be implemented in some of the future development wells. The
Consortium is optimistic of enhancing the well productivity by
efficient execution of drilling and hydrofraccing of future
wells.
Along with development of DDW field, other areas in the block
are in appraisal stage. A significant milestone was achieved in the
year under review. Proposal to declare 6 new discoveries as
commercial in the areas (DDE, DDN, DDWDT and DDNE-BRU) other than
DDW & DDW-Extension was reviewed by Management Committee in
January 2014 with an estimated GIIP of 8.392 TCF and EUR of 1.015
TCF as a Phase I recoverable resources with 25 development wells.
The Operator has prepared a long term phased resource maturation
plan for the development of total available resources in the
discovery area. As part of this phased development, the approved
DOC considers recoverable gas of 1.015 TCF for initial development
out of 2C recoverable gas resources of 4.708 TCF on gross basis.
Integrated Field Development Plan (FDP) to develop these areas is
under preparation and is expected to be submitted by December 2014.
The development of these areas will be in phases and will be
targeted towards exploiting 4.8 TCF of 2C resources as certified by
GCA. Approval of FDP for these areas will take us closer to
converting significant amount of 2C resources into 2P reserves.
The block also has significant prospective resources as
previously certified by GCA vide its Report issued in August, 2012.
A successful development of DDW will lead to a definitive roadmap
to monetize rest of the contingent and prospective resources in the
blocks leading to significant value creation.
Appraisal & Near Term Development - Tripura block
(AA-ONN-2002/1) (WI - 20%)
The Company is an Operator in this block with GAIL (India)
Limited as a consortium partner. A total of four discoveries have
been made in the block till date, of which, the JV Consortium in
the block is planning to develop a discovery in Kathalchari area in
the southern part of the block and appraise a discovery in North
Atharamura area in the northern part of the block.
Two significant milestones were achieved in this year under
review. First, proposal to declare the Kathalchari discovery as
commercial was reviewed by Management Committee with an estimated
GIIP of 1.212 Tcf, as opposed to 1.078 Tcf proposed in the DOC by
the Consortium, following which Commerciality of the Kathalchari
discovery was declared. The JV consortium in the block is now in
process of preparing and submitting a Field Development Plan by end
2014, targeting development of 129 BCF in phases.
Second, the Company notified new discoveries of commercial
interest in Middle Bhuban and Lower Bhuban reservoirs in 2013 in
the North Atharamura-1 well drilled in the Atharamura anticline.
Gas discovery has been made in the North Atharamura-1 (NA-1) well
within the intervals 610-635 meters within Middle Bhuban and
2175-2195 meters within Lower Bhuban.
The gross Middle Bhuban sand package in the 610-635 metres MD
interval ("Object-II", perforated zone 610-625 metres) was
perforated on 31 May 2013. Object-II flowed gas at a measured rate
of 1.7 million standard cubic feet per day at 24/64" choke size.
Details of the Discovery have been notified to MOP&NG/DGH and
Management Committee on 31 May, 2013 by the submission of Format A.
Format B to declare that the Discovery is of potential commercial
interest was submitted on 4 July 2013.
The gross Lower Bhuban sand in the 2,175-2,195 metres interval
("Object-I", perforated zone 2185-2191 meters) was perforated on 25
May 2013. The gas rate was measured as 3,240-3,777 standard cubic
feet per day and water rate as 445-918 barrels per day at 32/64"
choke size. The details of the Discovery have been notified to
MOP&NG/DGH and MC on 27 May, 2013 by the submission of Format
A. Format B for Discovery in Lower Bhuban has been submitted on 29
July, 2013.
As at end FY 2013-14, Best Case Management estimate of GIIP for
the North Atharamura Middle Bhuban Reservoir is 341 BCF with a 2C
recoverable resources of 239 BCF. Best Case Management estimate of
GIIP and 2C resources for the Lower Bhuban discovery are 363 BCF
and 145 BCF respectively. Jubilant holds a 20% working interest in
the licences.
The OC approved Appraisal Plan to appraise the North Atharamura
discovery in next two years has been submitted to DGH for
approval.
These developments further establish hydrocarbon potential of
the block, thereby giving the confidence that significant gas
reserves could support a gas monetisation strategy for the
region.
Exploration Block - Manipur I (AA-ONN-2009/1, WI - 100%),
Manipur II (AA-ONN-2009/2, WI -100%)
The Company pursued exploration activities in these exploration
blocks with an objective of establishing leads and prospects.
The Company undertook Geological survey, sedimentological
studies, Airborne Full Tensor Gradiometer survey and 2D seismic
survey in both the blocks in Manipur. Five exploration well
locations proposals were released and reviewed by DGH over both the
blocks in Manipur. The Company is however unable to progress work
beyond initial seismic on account of poor infrastructure, logistic
and other environmental issues. The Company continues to believe
that there is a long term gas play evidenced by GCA estimation of
unrisked prospective resources of 7.09 TCF in Best Case in Manipur
blocks reference its 2012 reserve-resource assessment of the
block.
Exploration Block - Myanmar PSC-I block
The Company in the year 2012 acquired a block in Myanmar under
the Myanmar Onshore Blocks Bidding Round in 2011. The Company is
currently pursuing exploration activities in the block and has
appointed a seismic contractor to undertake seismic acquisition in
the block. In May 2014, Company has requested to Myanma Oil &
Gas Enterprise (MOGE) for extension of 645 days to the Initial
Exploration Period under the PSC in lieu of delays in approvals to
start the seismic operations.
Financial Review
The gross sales volume during the year was 642,607 barrels and
net to Jubilant 160,652 barrels from Kharsang field. In the
previous year, gross sales volume was 699,310 and net to Jubilant
was 174,828. There was a decline of 8% in the current year. The
production from the field increased significantly in the first half
of the year following successful execution of Phase-III Extension
drilling program, but there was decline in production in the second
half of the year because of complexities including wax inhibition,
sand ingression, high water cut and high Gas Oil Ratio in some of
the wells. The Operator has initiated well servicing in these wells
and has also introduced pilot projects to overcome these
complexities in future.
The net operating revenue was at USD 15.8 million, lower by 11%
compared to previous year due to lower production, sales and oil
realization. The average oil price realized was USD 109.24/Bbl and
for the previous year it was USD 112.5/Bbl, a decrease of 2.9%.
During the year ended 31 March 2014, the Group incurred a loss
of USD 8.5 million as compared to a loss of USD 9.7 million in the
previous year. Loss before tax was USD 3.4 million, which was
almost at the same level as in the previous year due to
compensatory impact in revenues and cost.
Closing cash (including short term investments) was USD 25.7
million (March 2013: USD 22.6 million). During the year, the
Company had cash inflows of USD 7.3 million (2013: inflows of USD
7.7 million) from operating activities and outflows of USD 36.1
million (2013: USD 65.5 million) from investing activities, which
were mainly funded by additional loans, available cash and internal
accruals. The inflows from operating activities were primarily on
account of revenues from the producing Kharsang block. The outflows
on investing activities encompass the investment in exploration and
tangible assets totaling to USD 33 million.
During the year, the Company raised loan of USD 15 million from
Axis Bank, Singapore and additional USD 90 million unsecured loan
from Jubilant Bhartia Group companies for Company's operations and
debt repayments and servicing.
Total outstanding debt of USD 487 million, including debt of USD
123 million from Jubilant Bhartia Group companies, as on 31 March
2014. Undrawn facilities of USD 32.6 million and cash balance of
USD 25.7 million available to the Company. Jubilant is fully funded
to carry out its anticipated work programme with available cash,
undrawn facilities and funding support from the Promoters up to
December 2015. The Company is working on other options for raising
further capital.
With these words, we would like to acknowledge efforts of the
entire Jubilant Energy Team under guidance of our Board to enable
us focus on near term value creation and risk mitigation
objectives. We would also like to express our gratitude for the
continuous support extended by all the partners, DGH and Ministry
of Petroleum & Natural Gas
_____________________ _____________________ _____________________
RAKESH JAIN VIPUL AGARWAL RAMESH BHATIA
Chief Executive Chief Financial Chief Operating
Officer Officer Officer
Consolidated Statement of Comprehensive Income
(in thousands of US Dollars) For the For the
year ended year ended
31 March 31 March
2014 2013
------------------------------------ ------------ ------------
Oil and natural gas revenue 15,845 17,764
Other income 1,162 1,044
17,007 18,808
------------------------------------ ------------ ------------
Production and operating
expenses 2,086 3,171
Personnel costs 2,199 2,663
Share-based payment reversal (586) (2,486)
Depletion, depreciation and
amortisation 2,503 2,291
Impairment loss on intangible
exploration assets 39 1,647
Other expenses 2,565 4,636
8,806 11,922
------------------------------------ ------------ ------------
Results from operating activities 8,201 6,886
Finance income 1,478 3,023
Finance expenses 13,070 13,301
Net finance expense (11,592) (10,278)
------------------------------------ ------------ ------------
(Loss)/Profit before income
taxes (3,391) (3,392)
Income tax expense (5,112) (6,312)
(Loss)/Profit for the year (8,503) (9,704)
------------------------------------ ------------ ------------
Other comprehensive income
Re-measurement of defined 20 -
benefit liability
Foreign currency translation
difference for foreign operations (5,215) (2,444)
Income tax on comprehensive
income - -
------------------------------------ ------------ ------------
Other comprehensive income
for the year,
net of income tax (5,195) (2,444)
Total comprehensive income
for the year attributable
to the Owners of the company (13,698) (12,148)
------------------------------------ ------------ ------------
Basic and diluted loss per
share (USD) (0.020) (0.023)
Consolidated Statement of Financial Position
(in thousands of US Dollars) As at As at
31 March 31 March
2014 2013
------------------------------- ---------- ----------
Current Assets
Inventories 824 969
Current tax assets 2,060 1,719
Trade and other receivables 33,256 30,380
Other current assets 1,208 922
Cash and cash equivalents 25,657 22,607
Total Current Assets 63,005 56,597
------------------------------- ---------- ----------
Non Current Assets
Property, plant and equipment 243,475 195,971
Intangible exploration and
other intangible assets 235,604 224,064
Trade and other receivables 924 1,057
Other non-current assets 689 1,683
Total non-current assets 480,692 422,775
------------------------------- ---------- ----------
Total Assets 543,697 479,372
------------------------------- ---------- ----------
Equity
Issued and paid-up share
capital 5,581 5,581
Share premium 105,047 105,047
Retained earnings (118,385) (111,807)
Stock options outstanding
reserve 3,575 6,066
Foreign currency translation
reserve (22,538) (17,323)
Total Equity (26,720) (12,436)
------------------------------- ---------- ----------
Current Liabilities
Loans and borrowings 14,391 48,440
Trade and other payables 38,119 21,557
Current tax liabilities 487 513
Other current liabilities 880 809
Total Current Liabilities 53,877 71,319
------------------------------- ---------- ----------
Non Current Liabilities
Loans and borrowings 488,455 393,945
Employee benefits 298 673
Provisions 3,183 2,972
Deferred tax liabilities 24,604 22,765
Other non-current liabilities - 134
Total Non Current Liabilities 516,540 420,489
------------------------------- ---------- ----------
Total liabilities 570,417 491,808
------------------------------- ---------- ----------
Total equity and liabilities 543,697 479,372
------------------------------- ---------- ----------
Consolidated Statement of Cash
Flows
(in thousands of US Dollars) For the For the
year ended year ended
31 March 31 March
2014 2013
---------------------------------------- ------------ ------------
Cash flows from operating activities
Loss after tax for the year (8,503) (9,704)
Adjustments for:
Depletion and depreciation 2,317 2,095
Amortisation of other intangible
assets 186 196
Impairment losses on intangible
exploration and other intangible
assets (net) 39 1,647
Net finance expenses 10,861 9,640
Equity-settled share-based payment
expense (586) (2,486)
Current tax expense 840 1,771
Deferred tax expense 4,272 4,541
Loss on sale/disposal of property,
plant and equipment 20 90
Change in working capital (2,061) 174
---------------------------------------- ------------ ------------
Cash generated from operating
activities 7,385 7,964
Income tax paid (net) (72) (244)
Net cash generated from operating
activities 7,313 7,720
---------------------------------------- ------------ ------------
Cash flows from investing activities
Interest received 1,412 1,880
Acquisition of property, plant
and equipment, intangible exploration
assets and other intangible assets (33,043) (85,568)
Proceeds from disposal of property,
plant and equipment 39 11
Change in advances to co-ventures 581 (4,411)
Investment in non-trade investments
(mutual funds) - (50,451)
Proceeds from disposal of non-trade
investments (mutual funds) - 75,515
Investment in term deposits and
restricted cash (20,077) (3,840)
Proceeds from disposal of term
deposits and restricted cash 16,194 2,881
Tax paid on interest income (1,235) (1,480)
Net cash used in investing activities (36,129) (65,463)
---------------------------------------- ------------ ------------
Cash flows from financing activities
Proceeds from loans and borrowings 131,676 199,431
Payment of debt transaction cost (1,313) (2,353)
Repayment of loans and borrowings (47,574) (125,965)
Interest paid (49,603) (45,309)
Net cash generated from financing
activities 33,186 25,804
---------------------------------------- ------------ ------------
Net increase / (decrease) in
cash and cash equivalents 4,370 (31,939)
CASH AND CASH EQUIVALENTS
Opening cash and cash equivalents 22,607 56,287
Effect of exchange rate fluctuations (1,320) (1,741)
Closing cash and cash equivalents 25,657 22,607
---------------------------------------- ------------ ------------
Consolidated Statement of Changes in Equity for the year ended
31 March 2014
(in thousands Share capital Share premium Retained Stock Foreign Total equity
of US Dollars) earnings options currency
outstanding translation
reserve reserve
--------------- -------------- -------------- -------------- ------------- ------------- -----------------------
Balance as at
1 April 2012 5,581 105,047 (105,909) 12,358 (14,879) 2,198
Total
comprehensive
income for the
year
(Loss)/ Profit
for the year - - (9,704) - - (9,704)
Other
comprehensive
Income - - - - (2,444) (2,444)
--------------- -------------- -------------- -------------- ------------- ------------- -----------------------
Total
comprehensive
Income for
the year - - (9,704) - (2,444) (12,148)
--------------- -------------- -------------- -------------- ------------- ------------- -----------------------
Transactions
with owners
recorded
directly in
equity:
- Transfer to
retained
earnings for
vested share
options
forfeited
during the
year - - 3,806 (3,806) - -
- Share-based
payment
transactions
(net) - - - (2,486) - (2,486)
- - 3,806 (6,292) - (2,486)
--------------- -------------- -------------- -------------- ------------- ------------- -----------------------
Balance as at
31 March 2013 5,581 105,047 (111,807) 6,066 (17,323) (12,436)
--------------- -------------- -------------- -------------- ------------- ------------- -----------------------
Consolidated Statement of Changes in Equity for the year ended
31 March 2014
(in thousands Share capital Share premium Retained Stock Foreign Total equity
of US Dollars) earnings options currency
outstanding translation
reserve reserve
--------------- -------------- -------------- -------------- ------------- ------------- -----------------------
Balance as at
1 April 2013 5,581 105,047 (111,807) 6,066 (17,323) (12,436)
Total
comprehensive
profit for the
year
(Loss)/ Profit
for the year - - (8,503) - - (8,503)
Other
comprehensive
income - - 20 - (5,215) (5,195)
--------------- -------------- -------------- -------------- ------------- ------------- -----------------------
Total
comprehensive
income for
the year - - (8,483) - (5,215) (13,698)
--------------- -------------- -------------- -------------- ------------- ------------- -----------------------
Transactions
with owners
recorded
directly in
equity
- Transfer to
retained
earnings for
vested share
options
forefeited
during the
year - - 1,905 (1,905) - -
- Share-based
payment
reversal for
the year
(net) - - - (586) - (586)
- - 1,905 (2,491) - (586)
--------------- -------------- -------------- -------------- ------------- ------------- -----------------------
Balance as at
31 March 2014 5,581 105,047 (118,385) 3,575 (22,538) (26,720)
--------------- -------------- -------------- -------------- ------------- ------------- -----------------------
Notes to the accounts
1. General and principal activities
Jubilant Energy N.V. ('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 (Holding) 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 2014 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 2014 and the Company's Consolidated
Financial Statements for the year ended 31 March 2013 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 2014 and the Company's Consolidated Financial Statements for
the year ended 31 March 2013 were authorised for issue by the Board
of Directors on 25 June 2014 and on 26 June 2013 respectively.
Basis of preparation
The abbreviated consolidated financial information, which
comprise the abbreviated statement of financial position as at 31
March 2014, 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 2014,
and the Company's Consolidated Financial Statements for the year
ended 31 March 2013, on which the Company's audit firm KPMG
Accountants N.V. ("KPMG") provided an unqualified audit opinion
dated 25 June 2014 and 26 June 2013 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 and for the year
ended 31 March 2014 and the Company's Consolidated Financial
Statements as of and for the year ended 31 March 2013, from which
the abbreviated consolidated financial information was derived.
Preparation of Consolidated Financial Statements on a
going-concern basis
The Group has incurred losses during the year ended 31 March
2014 and has negative equity as at 31 March 2014. The ultimate
parent company - Jubilant Enpro Private Ltd - has given assurance
for financial support for continued operations of JENV up to
September 2015, should this be required. Considering the financial
support from parent company and other additional factors such as
internal accruals from producing block, expected cash flows from KG
block in near future and other funding options, the Group has
assessed that going concern assumption is appropriate and has thus
prepared the financial statements on a going concern basis.
3. Trade and other receivables - current
(in thousands of US Dollars) As at As at
31 March 2014 31 March 2013
------------------------------ -------------- --------------
Trade receivables 2,780 1,893
Due from related parties 10,317 11,415
Recoverable from co-ventures
(refer to Footnote a
and b) 10,732 12,075
Term deposits 147 152
Interest accrued but not
due on term deposits 141 148
Security deposit 488 30
Restricted cash - margin
money
(refer to Footnote c) 8,651 4,667
Total 33,256 30,380
------------------------------ -------------- --------------
Footnotes:
a) Represents amounts due from co-ventures 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) The recoverable from co-ventures includes USD 6,426 thousand
(31 March 2013: USD 8,383 thousand) from a joint venture partner,
on which partner has raised certain issues, management is in active
discussion with partner and believes that amount is fully
recoverable and no provision is required in this respect.
c) 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 2014
Current Non-current Total
--------------------------------------------------------- --------------- ---------------------- --------------
Financial liabilities at amortised cost
Secured foreign currency term loan 359 58,965 59,324
Secured term loans from banks 10,638 292,639 303,277
Unsecured inter corporate deposits from related parties 3,391 108,082 111,473
12% Redeemable preference shares - 28,769 28,769
Other 3 - 3
Total 14,391 488,455 502,846
--------------------------------------------------------- --------------- ---------------------- --------------
(in thousands of US Dollars) As at 31 March 2013
Current Non-current Total
--------------------------------------------------------- --------------- ---------------------- --------------
Financial liabilities at amortised cost
Secured foreign currency term loan 39,973 49,838 89,811
Secured term loans from banks 8,209 296,609 304,818
Unsecured inter corporate deposits from related parties 251 19,255 19,506
12% Redeemable preference shares - 28,240 28,240
Other 7 3 10
Total 48,440 393,945 442,385
--------------------------------------------------------- --------------- ---------------------- --------------
5. Share capital
Issued and paid-up share capital
(in thousands of US Dollars) As at As at
31 March 2014 31 March 2013
------------------------------ -------------- --------------
Opening balance as at
1 April 5,581 5,581
Closing balance as at
31 March 5,581 5,581
------------------------------ -------------- --------------
Share premium
(in thousands of US As at As at
Dollars)
31 March 2014 31 March 2013
--------------------- -------------- --------------
Opening balance as
at 1 April 105,047 105,047
Closing balance as
at 31 March 105,047 105,047
--------------------- -------------- --------------
Footnotes:
1) Authorised share capital
The authorised share capital of JENV as at 31 March 2014 is
874,200,000 shares of USD 12,145 thousand equivalent to EUR 8,742
thousand (31 March 2013: USD 12,145 thousand equivalent to EUR
8,742 thousand), having the par value of EUR 0.01 (31 March 2013:
EUR 0.01) per share.
2) Issued share capital
The issued share capital of JENV as at 31 March 2014 is
416,306,787 shares (31 March 2013: 416,306,787 shares).
There is no change in the issued share capital of JENV during
the year ended 31 March 2014 and 31 March 2013.
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
Company.
3) Share premium
There has been no change in the share premium of JENV during the
year ended 31 March 2014 and 31 March 2013
4) Foreign currency translation reserve
The foreign currency translation reserve comprises all foreign
currency differences arising from the translation of the financial
statements of foreign operations.
5) Stock options outstanding reserve
The stock options outstanding reserve comprises the amounts
recognised in respect of the equity-settled share-based payments to
certain employees and others providing similar services.
6. Impairment
During previous years, Group has recognised impairment loss for
carrying value of exploration and evaluation assets for Mehsana,
Cauvery, Golaghat and Australia blocks. Impairment loss in respect
of expenditure at Golaghat Block has been recognised due to the
uncertain future exploration program on account of non approval of
forest diversion.
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 2014 31 March 2013
--------------------------------- -------------- --------------
Loss
Loss attributable to ordinary
shareholders
(in thousands of US Dollars) (8,503) (9,704)
Ordinary shares
Weighted average number
of ordinary shares outstanding
used in computing EPS
(Nos.) 416,306,787 416,306,787
Basic and diluted EPS
(USD per share) (0.020) (0.023)
--------------------------------- -------------- --------------
The Group has issued options to its employees during the year
ended 31 March 2014 and 31 March 2013. Since the Group does not
have profits during the current year 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)
B.V.
(b) Related parties and nature of relationships where
transactions have taken place during the year
Relationship Name of related parties
Fellow subsidiary 1) Western Drilling Contractors Private Limited
2) Enpro Oil Private Limited
Enterprises that are directly or indirectly under the 1) Jubilant Securities Private Limited
control or significant influence of 2) Jubilant Capital Private Limited
key management personnel 3) Jubilant Life Science Limited
4) Tower Promoters Private Limited
Joint venture of the ultimate holding company Geo Enpro Petroleum Limited
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) Radhey Shyam Sharma (appointed w.e.f. 21 March 2013)
8) Ajay Khandelwal (resigned w.e.f. 7 February 2013)
9) Rakesh Jain (appointed w.e.f. 12 August 2013)
10) Vipul Agarwal
11) Ramesh Bhatia
12) Apoorva Ranjan (resigned w.e.f. 12 October 2012)
13) Premanand Mishra (resigned w.e.f. 28 February 2014)
14) Anil Mathur (resigned w.e.f. 4 October 2013)
15) Sandeep Budhiraja (resigned w.e.f. 30 September 2013)
(c) Related party transactions
Ultimate Holding Holding Company Joint Venture of the Ultimate Holding
(in thousands of US Dollars) Company company
For the year For the year For the year ended
ended ended
31 31 March 31 31 31 31 March 2013
March 2013 March March March
2014 2014 2013 2014
------ ---------------------------- ------- --------- ------- -------- ------ -----------------------------------
(i) Transactions:
Loans taken 2,820 5,148 78,180 13,000 - -
Share of Joint operative
expenditure paid - - - - 8,222 8,183
Expenses incurred by the Group on
their behalf - - - - 645 650
Bank charges and guarantee
commission 501 500 78 - - -
Interest expense on inter
corporate deposits 1,053 175 1,615 71 - -
Expenses incurred on behalf of the
Group 3 18 - - 8,206 8,186
Interest on redeemable preference
shares 3,056 3,023 - - - -
Ultimate Holding Joint Venture of the Ultimate Holding
(in thousands of US Dollars) Company Holding Company company
As at As at As at
------------------ ----------------- -------------------------------------------
31 31 March 31 31 31 31 March 2013
March 2013 March March March
2014 2014 2013 2014
------ ---------------------------- ------- --------- ------- -------- ------ -----------------------------------
(ii) Balances outstanding
Trade and other receivables
(loans and advances recoverable) - - - - 89 313
Loans and borrowings (unsecured
inter-corporate deposits) 8,629 5,309 92,742 13,071 - -
Trade and other payables 501 511 876 332 - -
Redeemable preference shares 28,769 28,240 - - - -
----------------------------------- ------- --------- ------- -------- ------ -----------------------------------
(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 2014 31 March 2013 31 March 2014 31 March 2013
------ ---------------------------- -------------- -------------- ----------------------- -----------------------
(i) Transactions:
Loans taken - 1,103 8,295 -
Loans and advances given - - - -
Expenses incurred by the Group on
their behalf 129 - - 5
Sale of other intangible - - 64 -
asset
Expenses incurred on behalf of the
Group - - 88 81
Interest expense on inter
corporate deposits 149 24 633 -
(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 2014 31 March 2013 31 March 2014 31 March 2013
------ ---------------------------- -------------- -------------- ----------------------- -----------------------
(ii) Balances outstanding
Trade and other receivables
(loans and advances recoverable) 131 2 10,097 11,100
Trade and other payables - - 15 -
Loans and borrowings (unsecured
inter-corporate deposits) 1,160 1,126 8,942 -
----------------------------------- -------------- -------------- ----------------------- -----------------------
(d) Guarantees given by ultimate holding company
a) Secured foreign currency term loans taken by JENV from EXIM:
Corporate guarantees in respect of these loans have been given by
Jubilant Enpro
b) Secured foreign currency term loan taken by JENV from Axis
Bank: Corporate guarantee in respect of this loan has been given by
Jubilant Enpro.
c)
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.
d) 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) Secured term loans taken by JODPL from banks: JEHBV has
entered into an arrangement of Right of Sale of paid-up shares of
JENV (by way of Project Support Undertaking/non-disposal
undertaking and Power of Attorney on the DMAT account), as held by
JEHBV, having market value equivalent to INR 2,000,000 thousand as
on the date of the arrangement.
(f) During the year, JEHBV has availed a foreign currency loan
of USD 45,000 thousand from EXIM for utilisation of the loan
proceeds towards investments in/on-lending to the subsidiaries of
the Borrower mainly for exploration, development and related
activities in various operating companies owning oil and gas
assets. This loan is secured by the following:
- Negative lien on the present and future PI and receivables
pertaining to all other oil and gas assets held by the Company
and/or subsidiaries and any other company which holds/shall hold
(PI) in any oil and/or gas block; provided that in case of fund
raising for a particular oil and gas asset/block against security
of the first charge on the PI and related cash flows or escrow of
receivables in the said asset/block with prior approval of Exim
Bank, the negative lien stands converted into a second charge over
the PI and residual cash flows/receivables after meeting the debt
service obligations of the first charge-holder(s).
- An Undertaking from JENV and its subsidiaries for non-disposal
of their shareholding in their respective subsidiaries.
- An irrevocable and unconditional Corporate Counter-Guarantee
by JEKPL for guaranteeing the due performance and discharge by
Jubilant Enpro of its obligations and liabilities in terms of the
counter-guarantee backed by first pari passu mortgage of its
Participating Interest (PI) held in Kharsang oil field and first
pari passu charge by way of hypothecation over the receivables in
respect of the said PI held in the Kharsang oil field.
- An irrevocable and unconditional Corporate Counter-Guarantee
by JODPL for guaranteeing the due performance and discharge by
Jubilant Enpro of its obligations and liabilities in terms of the
counter-guarantee backed by second pari passu mortgage of its
Participating Interest (PI) held in KG block and second pari passu
charge by way of hypothecation over the residual cash flows in
respect of the said PI held in the KG block. The charge shall rank
subservient to the first charge in favour senior lenders to
JODPL.
(g) As at 31 March 2014, performance guarantee amounting to USD
2,624 thousand (31 March 2013: USD 2,885 thousand) given on behalf
of Jubilant Securities Private Limited against a lien on the term
deposits of JENVPL in respect of Golaghat block.
(h) As at 31 March 2014, performance guarantee amounting to USD
1,658 thousand (31 March 2013: USD 1,823 thousand) given on behalf
of Jubilant Capital Private Limited against a lien on the term
deposits of JEKPL in respect of Ankleshwar block.
(i) As at 31 March 2014, performance guarantee amounting to USD
779 thousand (31 March 2013: USD 856 thousand) given on behalf of
Jubilant Capital Private Limited against a lien on the term
deposits of JENVPL in respect of Ankleshwar block.
(j) Pledge of 51% of the promoters' shareholding in JEKPL in
respect of a term loan facility from banks.
(k) 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.
(l) BG limit of USD 3,347 thousand (31 March 2013: USD 3,680
thousand) is available for JCPL and JSPL within the overall limit
of USD 12,718 thousand (31 March 2013: USD 13,982 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 No Entity Dispute With Description Status
----- ------------- ------------- ----------------------------------------------------------------- --------------
1 Jubilant Oil Service tax Alleged for non-payment of service tax on advisory and assisting Appeal
and Gas authorities services provided to various pending with
Private foreign entities for their operations in India. The amount Customs,
Limited involved is USD 155 thousand. Excise and
(JOGPL) Service Tax
Appellate
Tribunal
----- ------------- ------------- ----------------------------------------------------------------- --------------
2 Jubilant Oil Asian Oil JOGPL entered into a Seismic Contract with AOSL. Due to Notice has
and Gas Field non-performance, JOGPL put on hold been sent to
Private Services the invoices amounting to USD 373 thousand. JOGPL has claimed AOSL.
Limited Limited an amount USD 1,106 thousand
(JOGPL) ("AOSL") as Liquidated Damages and damages to JOGPL attributable to the
wanton, flagrant breach by
the AOSL. JOGPL has retained aforesaid invoices in its 'Right
to set-off'.
----- ------------- ------------- ----------------------------------------------------------------- --------------
3 Jubilant Oil Directorate JOGPL has
and Gas General of * DGH claimed USD 4,767 thousand (JOGPL's share USD 954 sought from
Private Hydrocarbons thousand) being the difference in the Liquidated DGH the
Limited ("DGH") Damages amount between provisionally paid on details of
(JOGPL) pre-estimated cost basis and actual cost of for 2nd calculation
and 3rd extension of Phase -I of Tripura Block. and copy of
relevant
policy under
which
differential
LD has been
claimed. DGH
response on
the same is
awaited.
----- ------------- ------------- ----------------------------------------------------------------- --------------
4 Jubilant Excise Interest and penalty on short payment of oil cess, the amount Custom Excise
Energy department involved is USD 12 thousand. & Service Tax
Kharsang (JEKPL's share) Appellate
Private Tribunal,
Limited Kolkata and
(JEKPL) the
Commissioner,
Central
Excise
(Appeals)
Guwahati
----- ------------- ------------- ----------------------------------------------------------------- --------------
5 Jubilant Geophysical Non-performance of 3D seismic project by GII in accordance with Appeal
Energy Institute of Contract provisions. The amount pending with
Kharsang Israel (GII) involved is USD 354 thousand, against which Operator has filed a Delhi High
Private counter claim of USD 463 Court
Limited thousand. (JEKPL's share)
(JEKPL)
----- ------------- ------------- ----------------------------------------------------------------- --------------
6 Jubilant C.A.T. Non-performance of 3D seismic project by CAT in accordance with Matter is
Energy Geodata GmbH Contract provisions. The amount pending in
Kharsang (CAT) involved is USD 762 thousand, against which Operator has filed a arbitration
Private counter claim of USD 227
Limited thousand. (JEKPL's share)
(JEKPL)
----- ------------- ------------- ----------------------------------------------------------------- --------------
7 Jubilant Income Tax JEKPL has received an assessment order for FY 2010-11, whereby Appeal is
Energy the income was assessed at pending
Kharsang USD 6,746 thousand. Interest expenses of USD 293 thousand were before
Private disallowed. CIT(A), Delhi
Limited
s(JEKPL)
----- ------------- ------------- ----------------------------------------------------------------- --------------
8 Jubilant Service tax Service tax on the off-shore services received by the Block, the Matter
Offshore authorities amount involved is USD 312 pending with
Drilling thousand. (JODPL's share) Commissioner
Private Central
Limited Excise,
(JODPL) Ahmedabad
----- ------------- ------------- ----------------------------------------------------------------- --------------
9 Jubilant Tuff Claim due to the loss caused by illegal termination of contract. Matter is
Offshore Drilling The amount involved is USD pending in
Drilling Private 12,037 thousand, against which operator has filed a counter arbitration
Private Limited claim of USD 8,629 thousand. (JODPL's
Limited share)
(JODPL)
----- ------------- ------------- ----------------------------------------------------------------- --------------
10 Jubilant Saipem USD 14,343 thousand claim related to billing of higher contract Matter is
Offshore (Portugal) day rate and USD 818 thousand pending in
Drilling Comercio claimed towards service tax for forwarding the service to the arbitration
Private Maritimo Su operator. Operator has filed
Limited Lda a counter claim of USD 3,691 thousand. (JODPL's share)
(JODPL)
----- ------------- ------------- ----------------------------------------------------------------- --------------
11 Jubilant Atwood Service tax on drilling, completing or abandoning the wells Intervention
Offshore Oceanics identified by GSPC drilling program application
Drilling Pacific Ltd from July 2007 to July 2009. of the
Private ("AOPL") Operator was
Limited disallowed by
(JODPL) Interest on delayed payment of invoices is USD 152 thousand. CESTAT and
(JODPL's share) hence unaware
of the
assessment
order.
Matter is
pending with
arbitration
----- ------------- ------------- ----------------------------------------------------------------- --------------
12
Jubilant Deep In view of no other alternate location being available, GSPC Matter is
Offshore Drilling 1 terminated the Contract with pending
Drilling Pte. Ltd. DD1 with immediate effect. DD1 claimed an amount to USD 172 before
Private ("DD1") thousand on account of termination arbitration
Limited of contract and interest. GSPC has also made a counter-claim
(JODPL) amount to USD 821 thousand on
account of refund of mobilization charges, damages and interest.
(JODPL share)
----- ------------- ------------- ----------------------------------------------------------------- --------------
13 Jubilant Income Tax In connection of income tax assessment, for FY 2010-11, Income Appeal is
Energy Authorities Tax Authorities disallowed pending
(NELP-V) interest expense of USD 317 thousand. before
Private CIT(A), Delhi
Limited
("NELP-V")
----- ------------- ------------- ----------------------------------------------------------------- --------------
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 and therefore no
provision has been made in the books.
10. Events occurring after the balance sheet date
Subsequent to year end, the Company entered into another loan
agreement with Jubilant Energy (Holding) B.V., immediate holding
company of the Company, for an unsecured loan of USD 5 million for
funding the operations of the Group.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR SEFFSMFLSEFM
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