Wag! Group Co
Annual Report 2013

301100 Petrel Cover  24/06/2014  12:56  Page 1

Petrel Resources Plc

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Corporate Office:
162 Clontarf Road, Dublin 3, Ireland.
Tel: +353 (0)1 833 2833
Fax: + 353 (0)1 833 3505
Company Registration Number: 92622

www.petrelresources.com

Annual Report and Accounts
Year ended 31 December 2013

 
 
 
 
 
 
 
 
 
301100 Petrel Cover  24/06/2014  12:56  Page 2

FFrroonntt  CCoovveerr
Licence Blocks awarded to Petrel Resources in the 2011 Licence Option Round.
Stratigraphic column identifying Petrel’s reservoir targets.

Directors and Other Information

CCUURRRREENNTT  DDIIRREECCTTOORRSS

SSEECCRREETTAARRYY

RREEGGIISSTTEERREEDD  OOFFFFIICCEE

AAUUDDIITTOORRSS

BBAANNKKEERRSS

SSOOLLIICCIITTOORRSS

NNOOMMIINNAATTEEDD  BBRROOKKEERR  &&  AADDVVIISSOORR

RREEGGIISSTTRRAATTIIOONN  NNUUMMBBEERR

AAUUTTHHOORRIISSEEDD  CCAAPPIITTAALL

J. Teeling (Chairman)
D. Horgan (Executive Director)
A. Kayablian (appointed 19 August 2013)

J. Finn

162 Clontarf Road
Dublin 3

Telephone: 
Fax:
E-Mail:
Website:

353-1-833 2833
353-1-833 3505
info@petrelresources.com
www.petrelresources.com

Deloitte & Touche
Chartered Accountants and Statutory Audit Firm
Deloitte & Touche House
Earlsfort Terrace
Dublin 2

Allied Irish Bank plc.
140 Lower Drumcondra Road
Dublin 9

Commerzbank AG
Gallusanlage
60329 Frankfurt

McEvoy Partners
27 Hatch Street Lower
Dublin 2

Northland Capital Partners Limited
131 Finsbury Pavement
London
EC2A 1NT

92622

200,000,000 €0.0125 Ordinary Shares

CCUURRRREENNTT  IISSSSUUEEDD  CCAAPPIITTAALL

99,681,992 Ordinary Shares

MMAARRKKEETT

NNUUMMBBEERR  OOFF  SSHHAARREEHHOOLLDDEERRSS

AIM

1,612

301100 Petrel Report  24/06/2014  12:14  Page 1

Contents

Chairman’s Statement

Review of Operations

Directors’ Report

Statement of Directors’ Responsibilities

Independent Auditors’ Report

Consolidated Statement of Comprehensive Income

Consolidated Balance Sheet

Company Balance Sheet

Consolidated and Company Statement of Changes in Equity

Consolidated Cash Flow Statement

Company Cash Flow Statement

Notes to the Financial Statements

Notice of Annual General Meeting

2

5

13

18

19

21

22

23

24

25

26

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48

Directors and Other Information

Inside back cover

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Chairman’s Statement

This is a tough time to be a junior oil explorer. Despite improvements in the world economy, a high oil

price and a rising stock market, junior explorers remain out of favour with investors. Your company was

very active in the period under review but failed to persuade investors of the value created.

Our flagship project, two hydrocarbon exploration blocks in the Atlantic Ocean’s Porcupine Basin offshore

Ireland, had a stellar year. A farm out agreement was concluded in March 2014 with Woodside

Petroleum, an Australian independent with a top class exploration record in hydrocarbon discoveries and

developments. The agreement provided for repayment of 85% of all costs incurred by Petrel and a

significant carry through exploration up to and including one well on each block. We estimate that

Woodside could spend up to $200 million on our two blocks before we incur any expenditure. The deal

was ratified by the Irish government and the frontier exploration licences held by Petrel became Frontier

Exploration Licences operated by Woodside, who have established an office in Dublin. They have

completed their review and analysis of available data and are expected to commission a seismic survey

for 2015. The plan is, subject to the results of the seismic, to drill in 2016/2017.

The importance of a successful oil discovery offshore Ireland cannot be exaggerated. One oil discovery in

the Porcupine is likely to be big enough to supply all of Ireland’s oil demand if not more. Ireland currently

imports all of its 132,000 barrels a day oil consumption and 95% of its gas needs. Apart from security of

supply, the fiscal implications are immense.

The wave of investor interest in the Irish offshore which occurred in 2013 has declined significantly in

recent times due to a number of factors, some of which are temporary. The Dunquin drilling by

ExxonMobil in the South Porcupine Basin in 2013, while finding traces of hydrocarbons was seen by the

market as a failure. The fact that this was a wildcat well in an area remote from most other offshore

Porcupine blocks was ignored by the market. Secondly it was expected that Cairn would drill the Spanish

Point block in the Porcupine Basin in 2014. Due to rig problems, this is not likely. Again, the market took

this in a very negative way. The Spanish Point well is an important milestone for explorers in the

Porcupine Basin as previous drilling in the early 1980s provided good oil flows. New technology and far

higher oil prices make this an attractive target. Petrel has interests close to Spanish Point so we are

disappointed by the delay.

The third factor has no relevance to the Porcupine Basin in the Atlantic but investors and analysts have

not understood this point. Failure by the relevant partners to farm out the Barryroe discovery in the Celtic

Sea off the South coast of Ireland has adversely affected attitudes toward offshore Irish exploration in

general. It is frustrating to make repeated protestations, which are not accepted, that there is no

relationship between Celtic Sea geology and that of the Porcupine Basin in the Atlantic. Drilling success

will change this but we will have to wait until 2015 before drilling commences.

Additionally, ongoing potential problems with the development of the Corrib field offshore Mayo

continue to reflect poorly on the attitudes of some Irish people toward hydrocarbon development. Due to

continued agitation from a small minority the development is delayed by a decade and has tripled in

capital cost. The Irish government has failed to take decisive action on the issue. Attitudes towards

investment are important factors in board room decisions. If investors are not welcome they will go

elsewhere.

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Chairman’s Statement (continued)

Finally, there is concern that the Irish Government is changing the fiscal regime for explorers. Given that

there has never been a commercial oil discovery in 44 years of exploration offshore Ireland this may be

counterproductive. Oil and gas explorers can invest their scarce funds in over 200 countries in the world.

Many countries have better geology than Ireland. Most of them have far lower exploration costs than

those in the wild Atlantic ocean (the Dunquin Well cost $200 million). Despite 158 wells Ireland has yet

to find any commercial oil discovery. Previous onerous fiscal terms, in the 1970s, and exploration failure,

resulted in little exploration in the Porcupine for a generation. It is unfortunate that the government has

decided to increase taxes and increase uncertainty before any drilling and before the next licencing

round. Royalties and higher taxes reduce the potential rate of return so will reduce the number of wells

to be drilled. Of more concern is the uncertainty introduced. There is now a question mark over all Irish

hydrocarbon exploration despite the statement of no retrospective changes to existing licences.

Successful explorers will need a Development Licence. Certainty is now gone. It is incumbent on the

State to offset the weak geology and difficult environment with attractive terms. The Porcupine needs

to be drilled. 

The second Petrel area of activity is Iraq. Petrel has been in Iraq since 1999 with some success in the

2000s. We have held an interest in Block 6 in the Anbar province since 2002 and in 2013 we acquired a

5% carried interest in certain assets of the Amira Group, in Wasit province. Amira, an Iraqi group, have

worked with the Iraqi provinces to obtain exploration rights. They have been successful particularly in

the Wasit province where they have a joint venture with Oryx, a listed Canadian group, to explore and

develop certain highly prospective areas. It was believed that the provincial government would

authorise Oryx to commence seismic activities in 2014 followed by drilling. Negotiations continue. Petrel

paid $500,000 cash for an effective 5% carry right through to production plus issuing new shares to

Amira equal to 20% of the Petrel equity. If they spud a well within 5 years they get an additional

10,526,316 shares. If a discovery is commercial they get a further 10,526,316 shares. The issued shares

are locked in and are cancelled in 2018 if milestones are not reached. We were pleased that Arman

Kayablian, a director and significant shareholder in the Amira group, joined the board of Petrel. His

experience and contacts will be very useful.

The situation in Iraq is now very uncertain. War has raged in Anbar province for months. Block 6 is in

Anbar. The country as a whole is now on a war footing. Little work is being done or can be done. At the

present time it is not possible to predict the results of these events but a fragmentation of the country

looks possible. This could mean Block 6 being part of a Sunni dominated area while Wasit is

predominantly Shia. We are not giving up on Iraq. Neither are Amira or Oryx. Iraq remains the best

source of oil in the world. The geology will not change, but the political situation will change.

The third interest held by Petrel is a 30% stake in a licence, Tano 2A, onshore/offshore Ghana. Petrel

has held the interest for some years and has undertaken a significant work programme. The expectation

was that the signed agreement with the Ghana National Petroleum Company (GNPC) would be

submitted to the Ghanaian cabinet for approval followed by parliamentary ratification. This did not

happen. Instead Petrel and partners were subjected to a continuous stream of queries and requests

culminating in a demand for a $25 million insurance bond on the agreed work programme. This was not

part of a signed agreement but we complied.

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Chairman’s Statement (continued)

Despite ongoing correspondence between the parties, in February/March 2014, the Ministry of Energy

awarded an offshore block to a US listed Nigerian controlled company. This block overlapped one third of

our licence agreement. We obtained an injunction stopping this in the Ghanaian High Court. Despite the

injunction, the parliament ratified the award of the block in early May 2014. Difficulties obtaining

exploration licences in Ghana are exacerbated by the rapid increase in activity due to the impressive

development of the Ghanaian oil industry. Problems with co-ordinates and overlapping licence awards

are part and parcel of international exploration. Often the bureaucrats lack the resources to implement

the actions of politicians. Offices are overburdened and mistakes are made. We have maintained lines of

communication with the relevant parties in Ghana. Some limited discussions have taken place. To assist

the discussions we have suspended the ongoing court case. With goodwill on both sides a satisfactory

solution can be found.

FFuuttuurree

Exploring the Atlantic offshore Ireland will occur in the near future at no cost to Petrel. The Ghanaian

situation is coming to a head while we continue to monitor developments in Iraq. We are actively

looking at ways to enhance shareholder value. An application for additional blocks offshore Ireland is

being prepared and we keep an active discussion ongoing with other parties holding interests in the Irish

offshore and elsewhere. With over $2 million in cash we are well funded for the foreseeable future.

John Teeling

Chairman

24 June 2014

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Review of Operations

A time of disruption and opportunity in the oil & gas industry

IInnttrroodduuccttiioonn  
Petrel Resources plc has explored for oil & gas since 1982 (since 1997 under current management) and
has been listed on the AIM market of the London Stock exchange since 2000. 

Petrel is active in the Irish offshore Atlantic Margin, Ghana’s Tano Basin and Iraq.

Petrel holds a 15% interest in 1,050km of prospective acreage in the Porcupine Basin of the Irish
offshore (FEL 3/14 and 4/14). Petrel is substantially carried by operator Woodside Energy through the
technical work programme.

Petrel has a 30% interest in a signed Petroleum Agreement in the Ghanaian Tano 2A Block, close to
circa 2 billion barrels of recent discoveries. We are in dispute with the Ghanaian authorities.

Petrel has an effective 5% carry with Oryx Petroleum on licences with the Wasit Governate in Iraq. Oryx
has applied for permits to conduct its seismic survey. Wasit is east of Baghdad in a Shia region and as of
June 2014 remains unaffected by disturbances west and north of Baghdad.

IIrreellaanndd  ––  tthhee  ooffffsshhoorree  ffrroonnttiieerr
•
•
•
•
•

Frontier Exploration Licences 3/14 and 4/14 issued on 1,050km2 of Irish Atlantic acreage
85% of historical expenditure recovered by Petrel
Petrel substantially carried through the technical work programme
Regional and additional Block data being loaded
Several Leads are being worked up

The Irish offshore is a play whose time has come: due to a combination of the high oil price, success of
frontier plays elsewhere, dramatically improving technology and competitive fiscal terms.

But the industry is not yet excited by Irish waters generally: the traditional fairway of the Celtic Sea,
with its shallow water and past production, still leaves most industry players cold. Locations beside
urban beauty spots excite controversy even where sub-sea completions are likely for any development.
The deeper Atlantic is mostly too remote, unknown and expensive. First must come commercial
discoveries, then frontiers will be pushed back.

Only 5% of Irish waters are licensed in any form. Only 10% has ever been studied. This despite Ireland
being now effectively part of the European gas market. 

Petrel focuses on the most prospective acreage of the Irish Atlantic Margin Porcupine Basin. This is not
really a ‘frontier play’, since 31 wells have been drilled – all of which yielded oil and/or gas shows.
Though there is as yet no commercial production, the play is tantalising:

There is established ssoouurrccee  rroocckk in the Jurassic, as well as secondary sources such as Lower Cretaceous.

There are established good to excellent rreesseerrvvooiirrss.
Past exploration failed on the issue of sseeaall – but many of the traps tested nearly worked. 

Most Porcupine Basin exploration wells were drilled in the early 1980s. At that time the effective
operating limit for 3rd generation semi-submersibles in Atlantic waters was 500 metres water depth.
Even 1,000 metres had not been pioneered. They were reliant on 2D seismic or early 3D. This meant
they were targeting relatively shallow plays on the northern and eastern fringe of the Porcupine. Taking
into account that little was then known about the geology, and that companies were adopting a North
Sea like ‘Brent Model’, it is encouraging they had as much success as they did.

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Review of Operations (continued)

As of 2014, the geological and commercial picture has been transformed. It is now understood that the
geology is quite different from the North Sea. More relevant are the west African type plays, in the
Cretaceous age sedimentary rocks, which have transformed the prospectivity of Ghana and other
formerly by-passed regions. 

Other plays that have worked in Australia and elsewhere have also possible application to the wide-open
Irish Atlantic play. It is a time for new thinking, new players and new ideas. Up to 1,000 metre water depth
(typical of much of our acreage) is now routine. Wells have been drilled in as much as 3,650 metre water
depth offshore Brazil. There have been developments in comparably harsh environments, such as eastern
Canadian ‘Hibernia’ and the Norwegian Barents Sea – albeit not yet at great depths (1,000 metres+).

Petrel Resources plc has worked intensively on potential oil and gas plays in the Irish Atlantic Margin
Porcupine Basin since 2011. We were awarded 1,400km2 of acreage under two Licence Options in 2011.
This work was successfully completed on schedule in 2013. We started with Tertiary type plays, which did
not work. But deeper Cretaceous and Jurassic plays were enhanced by our data reprocessing and
reinterpretation. This work was subjected to ‘a trial by fire’ in a farm-out process in 2013. Our work was
analysed by some of the world’s leading technical companies. We were greatly heartened by the clear
interest and believe that there will be increased participation in future Irish bid rounds. But we can only
choose one partner, so we picked the best. We did not want partners with the negative baggage of having
tried and failed in Irish waters for 44 years. We avoided companies who had had difficult experiences or
whose corporate structures might not work smoothly. We wanted an expert, environmentally sensitive
player who had delivered technically demanding projects safely, profitably and quickly.

We brought in Woodside Energy as operator and 85% partner, and jointly applied to convert the
maximum possible portion of this acreage to full Frontier Exploration Licences. This application was
successful, and Frontier Exploration Licences 3/14 and 4/14 were awarded in January 2014. Under
applicable rules, when converting Licence Options, the applicants can retain up to 75% of the original
acreage. Hence our Frontier Exploration Licences cover 1,050km2. We were able to retain most of the
early leads that Petrel had been working on. This acreage is quite densely populated with leads.

An aggressive work programme has been agreed and is proceeding on schedule. All available Block and
relevant regional data has or is being acquired and reprocessing is underway. Required or appropriate
environmental work is underway, in cooperation with the Marine Institute and other official bodies. We
expect a high specification 3D seismic programme to commence as soon as all permits are in order.
Several leads have already been worked up showing structures and stratigraphic traps of commercial
potential. If high quality 3D seismic confirms and de-risks one or more such leads, we expect that drilling
will be recommended to the licence holders. The most likely initial targets are probably in up to 800
metres water depth, which should be reasonable in terms of logistics, technical challenges and cost.
Petrel will be substantially carried on this work.

FFrroonnttiieerr  EExxpplloorraattiioonn  LLiicceenncceess  
In January 2014 the Department of Communications, Energy and Natural Resources, awarded Frontier
Exploration Licences 3/14 and 4/14 in the Irish Atlantic's Porcupine Basin. The acreage licensed
collectively covers approximately 1,050km2 or 75% of the 1,400km2 previously held under Licensing
Options 11/4 and 11/6. In August 2013, Petrel farmed out 85% of its interest in, and operatorship of,
the Licensing Options to Woodside Energy (Ireland) Pty Ltd (Woodside).

The recent (2014) Irish review of fiscal terms has no bearing on our current Frontier Exploration Licences.

Applicable tax rules on our FELs are those established under the 2007 Regulations. 

Proposed changes in fiscal terms will, however, impact any future Licence Options or Frontier Exploration
Licences we apply for. The main changes are an “effective 5% royalty”, which will operate as effectively
a Petroleum Profits Tax-prepayment. Accordingly it will be set against Petroleum Profits Taxes due, if any,
and is of course only payable on production. The 25% corporate tax rate remains unchanged, but is now

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Review of Operations (continued)

levied after – rather than before – the extra tax. The additional Petroleum Profits Tax (PPT) rates
increase from previous practice, with a maximum overall rate increasing from 40% of the profits to a
total, effective 55% on a high ‘R factor’ of 4.5x. 

The ‘R factor’ is an industry standard that divides total revenues by total allowable capital and operating
costs. The ‘R factor’ will be calculated on the basis of the licence in which the field is situation (and not
the company’s entire expenditure). The proposed changes do not formally alter the ‘R factor’ bands, but
they are now calculated pre-corporate tax, rather than post-corporate tax, which effectively means that
they kick in 25% earlier.

The maximum state take will shortly be 55% in the event of a bonanza – which is not onerous by
international standards. There is a danger that the manner of these changes, for largely political rather
than economic reasons, might confuse the industry and reduce likely participation in future bid rounds.
Twice before, in the 1970s and 1980s, Ireland was considered a ‘hot’ exploration province. On each
occasion the opportunity was squandered before major oil discoveries: in the 1970s the culprit was
misconceived government policy based on a flawed grasp of risk. The evaporation of interest after 1985
was mainly due to a collapsed oil price. Wise policy-makers will learn from these mistakes. 

The Frontier Exploration Licences are split into logical phases under best international practice,
facilitating orderly permitting and progress. The Frontier Exploration Licences are valid for 15 years, with
an initial 3 year phase, followed by three phases of 4 years each.

The main elements of the first phase are reprocessing of historic 3D seismic, environmental studies and,
subject to regulatory rules and permits, may include the acquisition of new, state-of-the-art 3D seismic.
Preparatory technical and environmental work is underway.

Petrel is 100% carried through phase one of the work programme, which covers the next three years. 

The main element of the second phase, should the parties elect to enter it, would be the drilling of a
well on each Frontier Exploration Licence, for which Petrel would be substantially carried. 

Petrel’s strategy in the Irish offshore was to identify, acquire and work up acreage with high potential
albeit geologically risky plays. Individual wells may be $50 to $200 million, depending on water depth,
rock depth and drilling conditions. As oil and gas prices have risen so have operating costs – though not
as dramatically. Rig and boat availability can also be an issue.

Accordingly it was part of Petrel’s strategy to launch a farm-out process with the objective of finding the
best partner with the vision as well as technical and financial resources and strategic intent to pioneer
new hydrocarbon plays in an under-explored, deep-water frontier basin. It quickly became apparent that
many of the traditional players seem jaded by past failures to find big oil early. We concluded that both
Petrel and Irish exploration generally needed new players with new approaches and new sources of risk
capital. The Woodside transaction and Licence awards represent the successful conclusion of this process.

We expect that there will be more intense interest, involving larger companies, in the next (September
2015) bid round compared to the 2011 bid round. Some of the industry enthusiasm might be
dampened by confusing recent fiscal terms changes as well as the failure so far to discover new in
broadly comparable Moroccan plays. Nonetheless, there is little doubt that the Porcupine plays,
particularly the Cretaceous ‘west African’ play, is very alive in the minds of many explorers.

The main reason for renewed interest in the Irish Atlantic Margin is that it has demonstrated
hydrocarbons but is lightly explored. It includes one of the largest continental shelves with source rock
and reservoir that remain unexplored worldwide. Of course, not all Ireland’s 700,008 km2 of territorial
waters are sedimentary basins with hydrocarbon potential. But there are very extensive, unexplored
areas – particularly in Rockall, which combines promise with uncertainty.

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Review of Operations (continued)

Ironically much of the logic for this renewed interest is based on what has been learnt from similar plays
elsewhere, particularly offshore West Africa.

One of the most successful players in the African offshore Cretaceous age plays is the Texan company
Kosmos Energy. Following the success of its Ghanaian plays, Kosmos sought similar geology elsewhere,
and now operates 3 FELs, on which it has shot extensive 3D seismic during 2013. From public comments
from companies involved we understand that the quality of this recent seismic is good, that initial
models appear to have been confirmed and that new plays are being worked up as a consequence. The
expected date for wells is 2016.

Only 31 wells have ever been drilled in the Porcupine Basin, of which 22 were drilled between 1977 and
1982. Historically, exploration in the Porcupine Basin was in pursuit of tilted Jurassic fault block targets,
similar to those in the northern North Sea. Failure to locate Jurassic reservoirs to match those of the
North Sea province, combined with a prolonged period of low oil prices, meant that, despite evidence of
proven working petroleum systems, exploration activity declined. As a result, only 3 wells have been
drilled since 1989, of which two were appraisal of a past discovery. Because most historic wells targeted
large Jurassic structures - easily visible on the seismic - they necessarily missed the more interesting
Cretaceous-age reservoirs which tend to infill the hollows between the Jurassic humps. Oil explorers often
speak of “closeology”, but a shallow well that does not penetrate a deeper reservoir cannot tell us much
about the latter’s prospectivity. Likewise it is rarely possible to investigate subtle Cretaceous stratigraphy
by drilling “North Sea” type Jurassic targets.

While not a commercial discovery, the 2013 Exxon-Mobil operated wildcat well on the Dunquin structure
in Quadrant 44, which neighbours and is about 30km from Petrel’s Quadrant 45 acreage (FEL 4/14),
confirmed that the south-west part of the Porcupine is also oil-bearing. Petrel’s geologists suspect that
the primary source might be Jurassic with perhaps Lower Cretaceous oil as a secondary source.

The rest of the Irish Atlantic Margin is even more neglected than the Porcupine Basin: only 21 wells have
been drilled outside the Porcupine in a vast area (greater than 250,000 km2).

Past exploration elsewhere in Irish Atlantic Margin was also generally based on assumed “North Sea
type” geology. 

The Atlantic has the potential for subtle structures and giant stratigraphic traps. Ghanaian success shows
how a by-passed region can be transformed by new thinking and modern technology.

A consortium operated by Cairn Energy had planned to drill an exploration well on the Spanish Point
condensate discovery, originally found in 1981. This well was originally planned to be drilled in mid-2014,
but which appears to have been delayed, mainly we believe for mechanical reasons associated with the
rig. Given the early stage of Irish Atlantic oil development it is probably wise to be especially cautious
with safety. We expect this well to be drilled in 2015, with an outside chance of a 2014 well with a
different rig than originally planned.

Petrel Resources was formed in 1982 to explore offshore Ireland. The then stringent fiscal terms,
challenging waters and unfamiliar geology were barriers to exploration success. At that time major oil
companies were seeking large, simple, clear structures similar to the bonanza Jurassic plays in the North
Sea. It was then impossible to convince major oil company management to drill the type of stratigraphic
trap play which is most interesting in those waters.

Technical work over the past two years by Petrel has identified significant prospects at three levels within
the Lower Cretaceous and Lower Tertiary of the Petrel Quad 45 option blocks (Option 11/6). The prospect
at the lowermost Cretaceous level may hold several hundred million barrels of in-place oil, with the
possibility of stacked targets at Aptian-Albian and other levels. 

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Review of Operations (continued)

On the Quad 35 blocks (FEL 3/14) high potential prospects have also been mapped in mounded Lower
Cretaceous fan sandstones, with internal closures up to 15 km2, and in Eocene shelf clinoform sheet
sands. The Eocene sands are anticipated to have excellent reservoir properties and are seen as having
the potential to host large volumes of oil.

GGhhaannaa
Petrel Resources holds a 30% interest in Pan Andean Resources Limited (60% Clontarf Energy) which
holds a 90% interest in the Tano 2A onshore/offshore block in Ghana.

The company has already conducted extensive work and spent, with its partners, a total of circa $2
million on exploring this prospective acreage. We intend to continue this work as soon as the legal
situation is confirmed and parliamentary ratification completed. We are also open to an equitable
alternative that properly recognises the rights under our signed Petroleum Agreement.

Pan Andean Resources Limited signed a Petroleum Agreement on the 1,532km2 onshore / shallow
offshore Tano 2A Block in 2008. To facilitate clarifications requested by GNPC and an optimal work
programme, Pan Andean Resources Limited then signed a revised Petroleum Agreement on the Tano 2A
Block in 2010. Since then, Pan Andean Resources Limited has in good faith invested $2 million in
purchasing seismic and other data from GNPC, and working up leads and prospects. 

A serious issue has arisen threatening the Petroleum Agreement signed on Tano 2A Block by Pan
Andean Resources Limited.

It was with surprise that we learnt that the Ghanaian authorities had submitted a conflicting licence
proposal from Camac Energy Ghana Limited, Base Energy and GNPC Explore Co. to Parliament on or
about 27th February 2014. On 26th March 2014 Camac Energy Inc. announced that “Camac Energy
Ghana Limited holds 60% of the interest” in a new Ghanaian Block which overlaps our block. On 22nd
April 2014 Camac Energy Inc., an NYSE listed company, announced that they hold 30% of the Block, as
technical operator. This is held by “an indirect 50%-owned subsidiary of the company”. The
shareholding of the remaining shareholding of its subsidiary Camac Energy Ghana Limited is unclear.

BBaacckkggrroouunndd::
International investors are a major contributor to the exploration and development of Ghana’s oil
industry. An important foundation for this investment is a transparent licensing system, under which
Petroleum Agreements are signed by GNPC and ratified in good faith by Parliament. Without sanctity of
contracts and protection of property rights the international investment community would not be
positive on Ghana. We are keen that this investment and technology transfer is maintained and
expanded.

We understand from the leading Non-Governmental Organisation, the Africa Centre for Energy Policy
(ACEP), as well as press reports that this conflicting licence proposal was rushed through Parliament on
or about 21st March 2014. From these press reports and a Stock Exchange statement of 26th March
2014, the conflicting licence proposal ingresses 529km2 into the 1,532km2 onshore / shallow offshore
Tano 2A Block, by purporting to take a section of the shallow water acreage already assigned to Tano
2A Block. This purported action is clearly in breach of an existing Petroleum Agreement which remains
valid, as confirmed by correspondence from the Ministry of Energy dated 4th March 2014, and
despatched by the Ministry of Energy to Pan Andean Resources Limited on 27th March 2014.

As a result of these actions by GNPC and the Ministry Of Energy we submitted a High Court writ on the
27th March 2014, and an interlocutory injunction was put in place as of the 7th April 2014 against GNPC
(and, following the 30 day notice period, the Government of Ghana). In accordance with Ghanaian law,
no further lawful action can take place by any of the parties put on notice until the issue is resolved. We
are concerned for our shareholders’ rights but also for Ghana, as this process has breached the stated
Ghanaian standards of transparency, accountability, and rule of law. 

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Review of Operations (continued)

EExxhhiibbiitt  11  ––  PPaann  AAnnddeeaann  RReessoouurrcceess  TTaannoo  22AA  BBlloocckk  wwiitthh  CCaammaacc  AAwwaarrdd  oovveerrllaaiidd..

This Ghanaian company negotiated and signed first a Memorandum of Understanding and then a
Petroleum Agreement with the Ghanaian authorities in 2008. The Ghanaian authorities conducted normal
due diligence on our group prior to this signature. 

Following a Ghanaian election, and major discoveries in the Tano Basin by Tullow Oil and Kosmos Energy,
the Ghanaian State wished to clarify and enhance state rights, including Pre-Emption Rights and also
requirements for more comprehensive state approvals of future corporate transactions involving the Block. 

At the same time, our technical team wished to clarify and improve the work programme that had
originally been agreed in 2008. This was necessary because initial studies and surveys showed that some
of the most interesting acreage was under a shallow water surf zone, mangrove swamp or close to
human habitation. Accordingly, the agreed work programme was optimised so as to make it more
appropriate and technically feasible.

Accordingly, we negotiated a revised Petroleum Agreement with the Ghanaian authorities in 2010. The
Ghanaian authorities conducted additional due diligence on our group prior to this signature of the revised
Petroleum Agreement. As part of this process, we first met the full GNPC Board, then Acting for both itself
and the Ghanaian Ministry of Energy, and subsequently met a GNPC Sub-Committee during which we were
subjected to vigorous “technical and financial examination” which we passed with distinction.

The Petroleum Agreement creates rights and obligations even before full ratification, including in Articles
26.2 and 26.3, where the Ghanaian Ministry of Energy and GNPC warranted that:

“26.2 The State, its departments and agencies, shall support this Agreement and shall
take no action which prevents or impedes the due exercise and performance of
rights and obligations of the Parties hereunder.

26.3 This Agreement and the rights and obligations specified herein may not be

modified, amended, altered or supplemented except upon the execution and
delivery of a written agreement executed by the Parties.”

By contrast, Petrel Resources plc and its partners have fulfilled all our obligations under these
agreements. We bought and collected all available data on the block. We incurred further expense in
consolidating and integrating the GNPC data with our regional database in order to expedite and
effectively focus the exploration work programme.

Included in our work was preparation of digital base maps for both the onshore and offshore areas by
incorporating seismic lines and well data, together with all available topographic data. All the available
data was consolidated within a multi-level GIS System, with satellite images covering both the Licence

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Review of Operations (continued)

Area and surrounding region – all of which have been duly processed. In turn, these images have been
interpreted for elements of structural Geology and have also been used to Geo-rectify the Base Maps.
Arising out of this technical work, initial leads have been worked up. We have had initial discussions
with prospective partners which encourage our belief that this acreage is prospective. We await only full
ratification in order to organise funding partners and conduct field work.

In addition, we have, without prejudice, given very extensive comfort on financial and technical
capability to perform its initial 3 year work programme. The comfort provided goes well beyond what is
industry norms or the extensive experience of our group over 30 years. Nonetheless, the Ghanaian
authorities have yet to ratify our contract. Instead, since 2010 there have been a series of arbitrarily
changing and inconsistent requests. When these were fulfilled there were new requests.

As of June 2014 we are in discussions which hopefully will resolve these issues on an equitable basis.

IIrraaqq
Highlights:

•

•

•

The Iraqi oil industry has experienced an extended period of insecurity and legal uncertainty
since 2003. Production has increased slightly to c. 3.3 million barrels daily.

Given the delays and difficulties of dealing with the Federal authorities, Petrel Resources plc
broadened its Iraqi investment through acquiring a 20 per cent shareholding in Amira
Hydrocarbons Wasit B.V. This deal gives Petrel an immediate effective 5 per cent carried interest
through to production in exploration and production licences operated by Oryx Petroleum in
Wasit. Oryx had allocated $27 million to seismic acquisition and other work on this Wasit project
during 2014. Due to administrative delays with permitting, the acquisition programme and
related budget was rolled forward. As of June 2014, these required permits had not yet been
granted. Accordingly, our partner has reduced its estimated Wasit project expenditure for 2014 to
$5 million, and rolled the planned seismic campaign forward.

So far, the Wasit Governate has not been materially impacted by June 2014 disturbances west
and north of Baghdad.

This strategic partnership seeks to strengthen Petrel's position in Iraq, where it has had a presence since
1999, and allows Petrel to benefit from Amira Industries' reputation and local capability. Amira
Industries has been at the forefront of licence acquisitions in the Iraqi provinces and was the first oil
company to sign oil and gas exploration and production contracts with the provincial governments of
Salah ad Din and Wasit. 

Arman Kayablian, COO of Amira Industries N.V., joined the board of Petrel as a non-executive director.
Arman has over 10 years' experience in project finance and development operations in the energy,
utilities and telecommunications industries.

The acquisition is in line with Petrel's strategy of reinforcing its interests in Iraq. The shareholding in
Amira's assets expands Petrel's programme scheduled for the next 18 months, with the potential to drill
one or two additional wells.

The investment in Amira is essentially a US$500,000 option price. The initial consideration comprised an
up-front cash payment of US$500,000 and the issue of locked in 18,947,368 shares in Petrel. 

A further 10,526,316 shares in Petrel will be issued when the first conventional oil well spuds. When a
well is spudded these initial shares become tradeable. A second tranche of 10,526,316 shares will be
issued when there is a commercial discovery. If no drilling takes place within 5 years the deal expires
and all share agreements cease.

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Review of Operations (continued)

Petrel is also given a right of first refusal to participate or acquire an operated interest in any future
exploration and production licences that Amira Industries secures in the Iraqi provinces of Muthanna,
Karbala, Babil and Najaf. The terms of Petrel's participation in such licences are likely to be similar to
Amira Industries' arrangement with Oryx Petroleum in respect of the Wasit licences.

WWaassiitt  OOvveerrvviieeww
Wasit is a large, relatively underexplored province in east central Iraq close to the giant East Baghdad
field. Amira holds a 25 per cent carried interest in three contracts with the Wasit Provincial Government
to explore and develop hydrocarbons in the Wasit province: an Asphalt Exploration Contract, Seismic
Option Agreement and Risk Exploration Contract. The Wasit Government has a back-in right in respect of
the licences which, if exercised in full, will reduce Amira's interest to 20 per cent (equivalent to a 4 per
cent carried interest for Petrel). 

The operator of the Wasit Licence is Oryx Petroleum Corporation Ltd, a Canadian E&P independent listed
on the TSX with a market capitalisation of US$1.4 billion. To date, Oryx has identified five principal leads
in the province containing 1,010 million barrels of unrisked prospective oil resources. Amira's interest in
the Wasit Licence is carried to production by Oryx.

Oryx plans to commence a seismic data acquisition programme as soon as permits are in place and to
drill an exploration well early in the following year, as soon as the seismic data has been processed and
evaluated. 

Accordingly, Petrel has been in initial discussions that may lead to the negotiation of local authority
licences in Iraq. We have always been careful to conduct discussions in accordance with applicable laws
and will continue to do so.

There remains considerable legal uncertainty in Iraq but there has been some movement in recent years:
we believe that some smaller and medium-sized prospects and fields may now become available outside
the Ministry of Oil’s preferred Technical Service Agreements system.

If so, Petrel should be well placed to negotiate such agreements: we will undertake work commitments
after confirmation that adequate institutional funding is available. Past fundings and valuations suggest
that there is international institutional interest in such projects.

Iraqi production increases have been slow to come through: for much of the past year, production
fluctuated between 3 and 4 million barrels daily of which about 2.5 million barrels were exported. This
falls well short of long-standing plans, which were to export at 8.5 million barrels daily by now, with
longer-term plans to rival Saudi Arabia with over 12 million barrels daily.

In is increasingly clear that while limited progress is being made, a great leap forward in Iraqi oil
development requires restructuring of the fiscal terms available. The experience of slow oil field
development in Iraq and neighbouring Iran over recent decades shows that investors require a
reasonable, risk-adjusted rate of return in order to invest the required capital, effort and technology to
make major projects work.

Petrel retains its interest in the Western Desert Block 6 exploration & development contract, as well as the
Technical Cooperation Agreement on the Merjan oil-field. Petrel has shown that it can operate under
prevailing circumstances. As of June 2014, Anbar Governate is effectively under the control of Sunni militia.

The political and security situation in Iraq has again been challenging over the past year, with events in
neighbouring countries further complicating Iraqi business.

Internal Iraqi political differences have so far impeded consensus on Hydrocarbon Laws and Revenue-
Sharing Agreements.

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Directors’ Report

The directors present their annual report and the audited financial statements for the year ended 31

December 2013.

PPRRIINNCCIIPPAALL  AACCTTIIVVIITTIIEESS  AANNDD  FFUUTTUURREE  DDEEVVEELLOOPPMMEENNTTSS

The main activity of Petrel Resources plc and its subsidiaries (the Group) is oil and gas exploration. The

Group has exploration interests in Iraq, Ghana and Ireland.

Further information concerning the activities of the Group during the year and its future prospects is

contained in the Chairman’s Statement and Review of Operations.

RREESSUULLTTSS  FFOORR  TTHHEE  YYEEAARR

The consolidated loss after taxation for the year, transferred to reserves, amounted to €526,783 (2012:
loss of €469,767). The total exchange difference transferred to reserves is €218,452 (2012: €107,378)

The directors do not recommend that a dividend be declared for the year ended 31 December 2013
(2012: €Nil).

PPEERRFFOORRMMAANNCCEE  RREEVVIIEEWW

The performance review is set out in the Chairman’s Statement and Review of Operations.

RRIISSKKSS  AANNDD  UUNNCCEERRTTAAIINNTTIIEESS

The Group is subject to a number of potential risks and uncertainties, which could have a material

impact on the long-term performance of the Group and could cause actual results to differ materially

from expectation. The management of risk is the collective responsibility of the Board of Directors and

the Group has developed a range of internal controls and procedures in order to manage risk. The

following risk factors, which are not exhaustive, are the principal risks relevant to the Group’s activities:

RRiisskk

NNaattuurree  ooff  rriisskk  aanndd  mmiittiiggaattiioonn

Licence obligations

Operations must be carried out in accordance with the terms of

each licence agreed with the relevant ministry for natural

resources in the host country. Typically, the law provides that

operations may be suspended, amended or terminated if a

contractor fails to comply with its obligations under such licences

or fails to make timely payments of relevant levies and taxes.

The Group has regular communication and meetings with relevant

government bodies to discuss future work plans and receive

feedback from those bodies. Country Managers in each jurisdiction

monitor compliance with licence obligations and changes to

legislation applicable to the company and reports as necessary to

the Board.

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Directors’ Report (continued)

Requirement for further funding

The Group may require additional funding to implement its

exploration and development plans as well as finance its

operational and administrative expenses. There is no guarantee that

future market conditions will permit the raising of the necessary

funds by way of issue of new equity, debt financing or farming out

of interests. If unsuccessful, this may significantly affect the Group’s

ability to execute its long-term growth strategy.

The Board regularly reviews Group cash flow projections and

considers different sources of funds. The Group regularly meets with

shareholders and the investor community and communicates

through their website and regulatory reporting.

Geological and development risks

Exploration activities are speculative and capital intensive and there

is no guarantee of identifying commercially recoverable reserves.

The Group activities in Ghana, Iraq and Ireland are in proven

resource basins. The Group uses a range of techniques to minimise

risk prior to drilling and utilises independent experts to assess the

results of exploration activity.

Title to assets

Title to oil and gas assets in Ghana and Iraq can be complex.

The Directors monitor any threats to the Group’s interest in its

licences and employ the services of experienced and competent

lawyers in relevant jurisdictions to defend those interests, where

appropriate.

Exchange rate risk

The Group’s expenses, which are primarily to contractors on

exploration and development, are incurred primarily in US Dollars

but also in Sterling and Euros. The Group’s policy is to conduct and

manage its operations in US Dollars and therefore it is exposed to

fluctuations in the relative values of the Euro and Sterling.

The Group seeks to minimise its exposure to currency risk by closely

monitoring exchange rates and maintaining a level of cash in

foreign denominated currencies sufficient to meet planned

expenditure in that currency.

Political risk

The Group holds assets in Ghana, Iraq and Ireland and therefore the

Group is exposed to country specific risks such as the political, social

and economic stability of these countries.

The countries in which the Group operates are encouraging foreign

investment.

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Directors’ Report (continued)

Political risk (continued)

The Group’s projects are longstanding and we have established

strong relationships with local and national government which

enable the Group to monitor the political and regulatory

environment.

Financial risk management

Details of the Group’s financial risk management policies are set

out in Note 19.

In addition to the above there can be no assurance that current exploration programmes will result in

profitable operations. The recoverability of the carrying value of exploration and evaluation assets is

dependent upon the successful discovery of economically recoverable reserves, the achievement of

profitable operations, and the ability of the Group to raise additional financing, if necessary, or

alternatively upon the Group’s and company’s ability to dispose of its interests on an advantageous

basis. Changes in future conditions could require material write down of the carrying values of the

Group’s assets.

KKEEYY  PPEERRFFOORRMMAANNCCEE  IINNDDIICCAATTOORRSS

The Group reviews expenditure incurred on exploration projects and successes thereon, ongoing

operating costs and availability of finance.

DDIIRREECCTTOORRSS

The current directors are listed on the inside back cover. Guy Delbes resigned as director on 3 January

2013. Arman Kayablian was appointed director on 19 August 2013.

DDIIRREECCTTOORRSS’’  AANNDD  SSEECCRREETTAARRYY’’SS  IINNTTEERREESSTTSS  IINN  SSHHAARREESS

The directors and secretary holding office at 31 December 2013 held the following beneficial interests in

the shares of the company:

3311//1122//22001133
OOrrddiinnaarryy
SShhaarreess  ooff
€00..00112255

NNuummbbeerr

55,,441155,,000000

44,,221155,,338844

11,,778855,,338844

3311//1122//22001133
OOppttiioonnss  --
OOrrddiinnaarryy
SShhaarreess  ooff
€00..00112255
NNuummbbeerr

110000,,000000

115500,,000000

110000,,000000

1/1/2013
Ordinary
Shares of
€0.0125

Number

3,615,000

2,715,384

1,015,384

1/1/2013
Options -
Ordinary
Shares of
€0.0125
Number

1,900,000

1,650,000

870,000

J. Teeling

D. Horgan

J. Finn (Secretary)

A. Kayablian***

***(A. Kayablian is a director of Amira International Holdings Limited)

There have been no changes to the directors’ interests between the year end and the date of this

report.

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Directors’ Report (continued)

SSUUBBSSTTAANNTTIIAALL  SSHHAARREEHHOOLLDDIINNGGSS

The share register records that, in addition to the directors, the following shareholders held 3% or more

of the issued share capital as at 31 December 2013 and 31 May 2014:

3311  DDeecceemmbbeerr  22001133
NNuummbbeerr  ooff
OOrrddiinnaarryy
SShhaarreess

1166,,114477,,336688
88,,996699,,227799
55,,445555,,661100
44,,445544,,775522
33,,883388,,998899
33,,553377,,880044

3311  MMaayy  22001144
NNuummbbeerr  ooff
OOrrddiinnaarryy
SShhaarreess

16,147,368
9,864,568
5,492,927
4,332,119
3,585,731
3,782,241

%%

16.20
9.00
5.47
4.47
3.85
3.55

%%

16.20%
9.90%
5.51%
4.35%
3.60%
3.79%

Amira International Holdings Limited***
Citibank Nominees (Ireland) Limited (CLRLUX)
TD Direct Investing Nominee (Europe) Limited
L. R. Nominees Limited
HSDL Nominees Limited
Barclayshare Nominees Limited

***(A. Kayablian is a director of Amira International Holdings Limited)

FFIINNAANNCCIIAALL  RRIISSKK  MMAANNAAGGEEMMEENNTT

Details of the Group’s financial risk management policies are set out in Note 19 to the financial

statements.

GGOOIINNGG  CCOONNCCEERRNN

Information in relation to going concern is outlined in Note 3.

CCOORRPPOORRAATTEE  GGOOVVEERRNNAANNCCEE  AANNDD  SSOOCCIIAALL  RREESSPPOONNSSIIBBIILLIITTYY

The Board is committed to maintaining high standards of corporate governance and to managing the

company in an honest and ethical manner.

The Board approves the Group’s strategy, investment plans and regularly reviews operational and

financial performance, risk management, and Health, Safety, Environment and Community (HSEC)

matters.

The Chairman is responsible for the leadership of the Board, whilst the Executive Directors are

responsible for formulating strategy and delivery once agreed by the Board.

The Group aims to maximise use of natural resources, such as energy and water, and is committed to full

investment as part of its environmental obligations where applicable.

The Group works toward positive and constructive relationships with government, neighbours and the

public, ensuring fair treatment of those affected by the Group’s operations. In particular, the Group aims

to provide employees with a healthy and safe working environment whilst receiving payment, that

enables them to maintain a reasonable lifestyle for themselves and their families.

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Directors’ Report (continued)

SSUUBBSSIIDDIIAARRIIEESS

Details of the company’s significant subsidiaries are set out in Note 14 to the financial statements.

CCHHAARRIITTAABBLLEE  AANNDD  PPOOLLIITTIICCAALL  DDOONNAATTIIOONNSS

The company made no political or charitable contributions during the year.

BBOOOOKKSS  OOFF  AACCCCOOUUNNTT

To ensure that proper books and accounting records are kept in accordance with Section 202 of the

Companies Act, 1990, the directors have involved appropriately qualified accounting personnel and have

maintained appropriate computerised accounting systems. The books of account are located at the

company’s office at 162 Clontarf Road, Dublin 3.

SSUUBBSSEEQQUUEENNTT  EEVVEENNTTSS

Details of significant subsequent events are outlined in Note 25.

AAUUDDIITTOORRSS

Deloitte & Touche, Chartered Accountants and Statutory Audit Firm, continue in office as auditors in

accordance with Section 160(2) of the Companies Act 1963.

Signed on behalf of the Board:

John Teeling

Director

24 June 2014

David Horgan

Director

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Statement of Directors’ Responsibilities

Irish company law requires the directors to prepare financial statements for each financial year which

give a true and fair view of the state of affairs of the company and the group and of the profit or loss of

the group for that period. In preparing those financial statements, the directors are required to:

•

•

•

select suitable accounting policies for the group and the parent company financial statements and

then apply them consistently;

make judgments and estimates that are reasonable and prudent; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume

that the company will continue in business.

The directors are responsible for keeping proper books of account which disclose with reasonable

accuracy at any time the financial position of the company and to enable them to ensure that the

financial statements are prepared in accordance with International Financial Reporting Standards (IFRSs)

as adopted by the European Union and comply with Irish statute comprising the Companies Acts, 1963 to

2013. They are also responsible for safeguarding the assets of the company and hence for taking

reasonable steps for the prevention and detection of fraud and other irregularities. The directors are

responsible for the maintenance and integrity of the corporate and financial information included on the

company’s website. Legislation in Ireland governing the preparation and dissemination of financial

statements may differ from legislation in other jurisdictions.

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Independent Auditors’ Report
To the Members of Petrel Resources Plc

We have audited the financial statements of Petrel Resources Plc for the year ended 31 December 2013

which comprise the Group Financial Statements: the Consolidated Statement of Comprehensive Income,

the Consolidated Balance Sheet, the Group Statement of Changes in Equity and the Consolidated Cash Flow

Statement and the Company Financial Statements: the Company Balance Sheet, the Company Statement

of Changes in Equity, the Company Cash Flow Statement and the related notes 1 to 26. The financial

reporting framework that has been applied in the preparation of the financial statements is Irish law and

International Financial Reporting Standards (IFRSs) as adopted by the European Union and in the case of

the parent company as applied in accordance with the provision of the Companies Acts 1963 to 2013.

This report is made solely to the company's members, as a body, in accordance with Section 193 of the

Companies Act, 1990. Our audit work has been undertaken so that we might state to the company’s

members those matters we are required to state to them in an auditors’ report and for no other purpose.

To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than

the company and the company’s members as a body, for our audit work, for this report, or for the

opinions we have formed.

RReessppeeccttiivvee  rreessppoonnssiibbiilliittiieess  ooff  ddiirreeccttoorrss  aanndd  aauuddiittoorrss

As explained more fully in the Statement of Directors’ Responsibilities, the directors are responsible for

the preparation of the financial statements giving a true and fair view. Our responsibility is to audit and

express an opinion on the financial statements in accordance with Irish law and International Standards

on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s

Ethical Standards for Auditors.

SSccooppee  ooff  tthhee  aauuddiitt  ooff  tthhee  ffiinnaanncciiaall  ssttaatteemmeennttss

An audit involves obtaining evidence about the amounts and disclosures in the financial statements

sufficient to give reasonable assurance that the financial statements are free from material misstatement,

whether caused by fraud or error. This includes an assessment of: whether the accounting policies are

appropriate to the group’s and the parent company’s circumstances and have been consistently applied

and adequately disclosed; the reasonableness of significant accounting estimates made by the directors;

and the overall presentation of the financial statements. In addition, we read all the financial and non-

financial information in the Reports and Consolidated Financial Statements for the year ended 31

December 2013 to identify material inconsistencies with the audited financial statements and to identify

any information that is apparently materially incorrect based on, or materially inconsistent with, the

knowledge acquired by us in the course of performing the audit. If we become aware of any apparent

material misstatements or inconsistencies we consider the implications for our report.

OOppiinniioonn  oonn  ffiinnaanncciiaall  ssttaatteemmeennttss

In our opinion:

•

•

•

the group’s financial statements give a true and fair view, in accordance with IFRSs as adopted

by the European Union, of the state of the group’s affairs as at 31 December 2013 and of its loss

for the year then ended;

the parent company balance sheet gives a true and fair view, in accordance with IFRSs, as

adopted by the European Union as applied in accordance with the provisions of the Companies

Acts, 1963 to 2013, of the state of the parent company’s affairs as at 31 December 2013; and

the financial statements have been properly prepared in accordance with the requirements of

the Companies Acts, 1963 to 2013.

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Independent Auditors’ Report (continued)
To the Members of Petrel Resources Plc

Emphasis of matter – Realisation of assets

In forming our opinion on the financial statements, which is not modified, we draw your attention to

Notes 12, 13, 14 and 15 to the financial statements concerning the realisation of intangible assets,

financial assets, investments in subsidiaries and amounts due from subsidiaries. The realisation of
intangible assets of €4,017,982 and financial assets of €4,211,123 included in the consolidated balance
sheet and intangible assets of €4,006,745, investments in subsidiaries of €15,019 and amounts due
from subsidiaries of €4,207,341 included in the company balance sheet is dependent on the discovery
and successful development of economic mineral reserves including the ability of the Group to raise

sufficient finance to develop these projects. The ultimate outcome of these uncertainties cannot, at

present, be determined.

MMaatttteerrss  oonn  wwhhiicchh  wwee  aarree  rreeqquuiirreedd  ttoo  rreeppoorrtt  bbyy  tthhee  CCoommppaanniieess  AAccttss,,  11996633  ttoo  22001133

•

•

•

•

•

We have obtained all the information and explanations which we consider necessary for the

purposes of our audit.

In our opinion proper books of accounts have been kept by the parent company.

The parent company balance sheet is in agreement with the books of account.

In our opinion the information given in the directors’ report is consistent with the financial

statements.

The net assets of the parent company, as stated in the parent company balance sheet are more

than half of the amount of its called up share capital and, in our opinion, on that basis there did

not exist at 31 December 2013 a financial situation which under Section 40 (1) of the Companies

(Amendment) Act, 1983 would require the convening of an extraordinary general meeting of the

parent company.

MMaatttteerrss  oonn  wwhhiicchh  wwee  aarree  rreeqquuiirreedd  ttoo  rreeppoorrtt  bbyy  eexxcceeppttiioonn

We have nothing to report in respect of the provisions in the Companies Acts, 1963 to 2013 which

require us to report to you if, in our opinion the disclosures of directors’ remuneration and transactions

specified by law are not made.

Ciarán O’Brien

For and on behalf of Deloitte & Touche

Chartered Accountants and Statutory Audit Firm

Dublin

24 June 2014

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301100 Petrel Accounts  23/06/2014  16:21  Page 21

Consolidated Statement of Comprehensive Income
For the Year Ended 31 December 2013

CCOONNTTIINNUUIINNGG  OOPPEERRAATTIIOONNSS

Administrative expenses

OOPPEERRAATTIINNGG  LLOOSSSS

Investment revenue

LLOOSSSS  BBEEFFOORREE  TTAAXXAATTIIOONN

Income tax expense

LLOOSSSS  FFOORR  TTHHEE  YYEEAARR:: all attributable to equity holders of the parent

OOtthheerr  ccoommpprreehheennssiivvee  ((eexxppeennssee))  IInnccoommee

IItteemmss  tthhaatt  aarree  oorr  mmaayy  bbee  rreeccllaassssiiffiieedd  ssuubbsseeqquueennttllyy  ttoo  pprrooffiitt  oorr  lloossss

Exchange differences

TTOOTTAALL  CCOOMMPPRREEHHEENNSSIIVVEE  LLOOSSSS  FFOORR  TTHHEE  YYEEAARR

Loss per share – basic and diluted

Notes

22001133
€

2012
€

5

4

5

10

((552288,,559977))
––––––––––––––
((552288,,559977))

(481,427)
––––––––––––––
(481,427)

11,,881144
––––––––––––––
((552266,,778833))

11,660
––––––––––––––
(469,767)

-
––––––––––––––
((552266,,778833))

-
––––––––––––––
(469,767)

((221188,,445522))
––––––––––––––
((774455,,223355))
––––––––––––––
––––––––––––––

(107,378)
––––––––––––––
(577,145)
––––––––––––––
––––––––––––––

11

((00..6633cc))
––––––––––––––
––––––––––––––

(0.61c)
––––––––––––––
––––––––––––––

The financial statements were approved by the Board of Directors on 24 June 2014 and signed on its behalf by:

John Teeling
Director

David Horgan
Director

Petrel
Resources
Plc
Annual
Report and
Accounts
2013

2211

301100 Petrel Accounts  23/06/2014  16:21  Page 22

Consolidated Balance Sheet
As at 31 December 2013

AASSSSEETTSS

NNOONN--CCUURRRREENNTT  AASSSSEETTSS

Financial asset
Intangible assets

CCUURRRREENNTT  AASSSSEETTSS

Trade and other receivables
Cash and cash equivalents

TTOOTTAALL  AASSSSEETTSS

CCUURRRREENNTT  LLIIAABBIILLIITTIIEESS

Trade and other payables

NNEETT  CCUURRRREENNTT  AASSSSEETTSS

NNEETT  AASSSSEETTSS

EEQQUUIITTYY

Called-up share capital
Capital conversion reserve fund
Share premium
Share based payment reserve
Translation reserve
Retained deficit

TTOOTTAALL  EEQQUUIITTYY

Notes

22001133
€

2012
€

12
13

15
16

17

20

21

44,,221111,,112233
44,,001177,,998822
––––––––––––––
88,,222299,,110055
––––––––––––––

-
3,424,049
––––––––––––––
3,424,049
––––––––––––––

3344,,004444
11,,442255,,002255
––––––––––––––
11,,445599,,006699
––––––––––––––
99,,668888,,117744
––––––––––––––

43,466
3,015,858
––––––––––––––
3,059,324
––––––––––––––
6,483,373
––––––––––––––

((441100,,882266))
––––––––––––––
11,,004488,,224433
––––––––––––––
99,,227777,,334488
––––––––––––––
––––––––––––––

(407,195)
––––––––––––––
2,652,129
––––––––––––––
6,076,178
––––––––––––––
––––––––––––––

11,,224466,,002255
77,,669944
2211,,441166,,008855
2266,,887711
((115522,,115500))
((1133,,226677,,117777))
––––––––––––––
99,,227777,,334488
––––––––––––––
––––––––––––––

958,308
7,694
17,784,268
-
66,302
(12,740,394)
––––––––––––––
6,076,178
––––––––––––––
––––––––––––––

The financial statements were approved by the Board of Directors on 24 June 2014 and signed on its behalf by:

John Teeling
Director

David Horgan
Director

Petrel
Resources
Plc
Annual
Report and
Accounts
2013

2222

301100 Petrel Accounts  23/06/2014  16:21  Page 23

Company Balance Sheet
As at 31 December 2013

AASSSSEETTSS

NNOONN--CCUURRRREENNTT  AASSSSEETTSS

Intangible assets
Investment in subsidiaries

CCUURRRREENNTT  AASSSSEETTSS

Trade and other receivables
Cash and cash equivalents

TTOOTTAALL  AASSSSEETTSS

CCUURRRREENNTT  LLIIAABBIILLIITTIIEESS

Trade and other payables

NNEETT  CCUURRRREENNTT  AASSSSEETTSS

NNEETT  AASSSSEETTSS

EEQQUUIITTYY

Called-up share capital
Capital conversion reserve fund
Share premium
Share based payment reserve
Translation reserve
Retained deficit

TTOOTTAALL  EEQQUUIITTYY

Notes

22001133
€

2012
€

13
14

15
16

17

20

21

44,,000066,,774455
1155,,001199
––––––––––––––
44,,002211,,776644
––––––––––––––

3,412,812
11,237
––––––––––––––
3,424,049
––––––––––––––

44,,224411,,338855
11,,442255,,002255
––––––––––––––
55,,666666,,441100
––––––––––––––
99,,668888,,117744
––––––––––––––

43,466
3,015,858
––––––––––––––
3,059,324
––––––––––––––
6,483,373
––––––––––––––

((441100,,882266))
––––––––––––––
11,,004488,,224433
––––––––––––––
99,,227777,,334488
––––––––––––––
––––––––––––––

(407,195)
––––––––––––––
2,652,129
––––––––––––––
6,076,178
––––––––––––––
––––––––––––––

11,,224466,,002255
77,,669944
2211,,441166,,008855
2266,,887711
((115522,,115500))
((1133,,226677,,117777))
––––––––––––––
99,,227777,,334488
––––––––––––––
––––––––––––––

958,308
7,694
17,784,268
-
66,302
(12,740,394)
––––––––––––––
6,076,178
––––––––––––––
––––––––––––––

The financial statements were approved by the Board of Directors on 24 June 2014 and signed on its behalf by:

John Teeling
Director

David Horgan
Director

Petrel
Resources
Plc
Annual
Report and
Accounts
2013

2233

301100 Petrel Accounts  23/06/2014  16:21  Page 24

Consolidated and Company Statements of Changes in Equity
For the Year Ended 31 December 2013

GGrroouupp  aanndd  ccoommppaannyy

At 1 January 2012
Share options forfeited
Total comprehensive
income for the year

At 31 December 2012

Shares issued
Share options granted
Total comprehensive
income for the year

AAtt  3311  DDeecceemmbbeerr  22001133

SShhaarree  pprreemmiiuumm

SShhaarree
CCaappiittaall
€

SShhaarree
PPrreemmiiuumm
€

958,308
-

17,784,268
-

CCaappiittaall
CCoonnvveerrssiioonn
RReesseerrvvee
FFuunndd
€

7,694
-

SShhaarree
BBaasseedd
PPaayymmeenntt
RReesseerrvvee
€

205,971
(205,971)

TTrraannssllaattiioonn
RReesseerrvvee
€

RReettaaiinneedd
DDeeffiicciitt
€

TToottaall
€

173,680
-

(12,476,598)
205,971

6,653,323
-

-
––––––––––
958,308

-
––––––––––
17,784,268

-
––––––––––
7,694

-
––––––––––
-

(107,378)
––––––––––
66,302

(469,767)
––––––––––
(12,740,394)

(577,145)
––––––––––
6,076,178

287,717
-

3,631,817
-

-
-

-
26,871

-
-

-
-

3,919,534
26,871

-
––––––––––
11,,224466,,002255
––––––––––
––––––––––

-
––––––––––
2211,,441166,,008855
––––––––––
––––––––––

-
––––––––––
77,,669944
––––––––––
––––––––––

-
––––––––––
2266,,887711
––––––––––
––––––––––

(218,452)
––––––––––
((115522,,115500))
––––––––––
––––––––––

(526,783)
––––––––––
((1133,,226677,,117777))
––––––––––
––––––––––

(745,235)
––––––––––
99,,227777,,334488
––––––––––
––––––––––

Share premium comprises of the excess of monies received in respect of the issue of share capital over the nominal value of shares
issued.

CCaappiittaall  ccoonnvveerrssiioonn  rreesseerrvvee  ffuunndd

The ordinary shares of the company were renominalised from €0.0126774 each to €0.0125 each in 2001 and the amount by
which the issued share capital of the company was reduced was transferred to the capital conversion reserve fund.

SShhaarree  bbaasseedd  ppaayymmeenntt  rreesseerrvvee

The share based payment reserve represents share options granted which are not yet exercised and issued as shares.

TTrraannssllaattiioonn  RReesseerrvvee

The translation reserve comprises of foreign exchange movement on translation from US Dollars (functional currency) to Euro
(presentation currency).

RReettaaiinneedd  ddeeffiicciitt

Retained deficit comprises accumulated losses in the current year and prior years.

Petrel
Resources
Plc
Annual
Report and
Accounts
2013

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301100 Petrel Accounts  23/06/2014  16:21  Page 25

Consolidated Cash Flow Statement
For the Year Ended 31 December 2013

Notes

22001133
€

2012
€

CCAASSHH  FFLLOOWW  FFRROOMM  OOPPEERRAATTIINNGG  AACCTTIIVVIITTIIEESS

Loss for the year
Impairment charge
Share based payments
Investment revenue recognised in loss

OOPPEERRAATTIINNGG  CCAASSHHFFLLOOWW  BBEEFFOORREE  MMOOVVEEMMEENNTTSS  IINN  WWOORRKKIINNGG  CCAAPPIITTAALL

Movements in working capital:
Increase in trade and other payables
(Increase)/decrease in trade and other receivables

CCAASSHH  UUSSEEDD  IINN  OOPPEERRAATTIIOONNSS

Investment revenue

NNEETT  CCAASSHH  UUSSEEDD  IINN  OOPPEERRAATTIINNGG  AACCTTIIVVIITTIIEESS

IINNVVEESSTTIINNGG  AACCTTIIVVIITTIIEESS

Payments for exploration and evaluation assets
Payments for investments

NNEETT  CCAASSHH  UUSSEEDD  IINN  IINNVVEESSTTIINNGG  AACCTTIIVVIITTIIEESS

FFIINNAANNCCIINNGG  AACCTTIIVVIITTIIEESS

Proceeds from share issue

NNEETT  CCAASSHH  GGEENNEERRAATTEEDD  FFRROOMM  FFIINNAANNCCIINNGG  AACCTTIIVVIITTIIEESS

NNEETT  DDEECCRREEAASSEE  IINN  CCAASSHH  AANNDD  CCAASSHH  EEQQUUIIVVAALLEENNTTSS

((552266,,778833))
1199,,665588
1133,,443355
((11,,881144))
––––––––––––––
((449955,,550044))

(469,767)
20,066
-
(11,660)
––––––––––––––
(461,361)

33,,663311
99,,442222
––––––––––––––
((448822,,445511))

176,435
(10,992)
––––––––––––––
(295,918)

11,,881144
––––––––––––––
((448800,,663377))
––––––––––––––

11,660
––––––––––––––
(284,258)
––––––––––––––

((774477,,117722))
((442211,,664499))
––––––––––––––
((11,,116688,,882211))
––––––––––––––

(793,475)
-
––––––––––––––
(793,475)
––––––––––––––

113300,,006600
––––––––––––––
113300,,006600
––––––––––––––
((11,,551199,,339988))

-
––––––––––––––
-
––––––––––––––
(1,077,733)

Cash and cash equivalents at beginning of financial year

33,,001155,,885588

4,150,649

Effect of exchange rate changes on cash held in
foreign currencies

Cash and cash equivalents at end of financial year

((7711,,443355))
––––––––––––––
11,,442255,,002255
––––––––––––––
––––––––––––––

(57,058)
––––––––––––––
3,015,858
––––––––––––––
––––––––––––––

16

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Resources
Plc
Annual
Report and
Accounts
2013

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301100 Petrel Accounts  23/06/2014  16:21  Page 26

Company Cash Flow Statement
For the Year Ended 31 December 2013

Notes

22001133
€

2012
€

CCAASSHH  FFLLOOWW  FFRROOMM  OOPPEERRAATTIINNGG  AACCTTIIVVIITTIIEESS

Loss for the year
Impairment charge
Share based payment
Investment revenue recognised in loss

OOPPEERRAATTIINNGG  CCAASSHHFFLLOOWW  BBEEFFOORREE  MMOOVVEEMMEENNTTSS  IINN  WWOORRKKIINNGG  CCAAPPIITTAALL

Movements in working capital:
Increase in trade and other payables
Decrease in trade and other receivables

CCAASSHH  UUSSEEDD  IINN  OOPPEERRAATTIIOONNSS

Investment revenue

NNEETT  CCAASSHH  UUSSEEDD  IINN  OOPPEERRAATTIINNGG  AACCTTIIVVIITTIIEESS

IINNVVEESSTTIINNGG  AACCTTIIVVIITTIIEESS

Payments for exploration and evaluation assets
Payments for investments

NNEETT  CCAASSHH  UUSSEEDD  IINN  IINNVVEESSTTIINNGG  AACCTTIIVVIITTIIEESS

FFIINNAANNCCIINNGG  AACCTTIIVVIITTIIEESS

Proceeds from share issue

NNEETT  CCAASSHH  GGEENNEERRAATTEEDD  FFRROOMM  FFIINNAANNCCIINNGG  AACCTTIIVVIITTIIEESS

NNEETT  DDEECCRREEAASSEE  IINN  CCAASSHH  AANNDD  CCAASSHH  EEQQUUIIVVAALLEENNTTSS

((552266,,778833))
1199,,665588
1133,,443355
((11,,881144))
––––––––––––––
((449955,,550044))

(469,767)
20,066
-
(11,660)
––––––––––––––
(461,361)

33,,663311
((440088,,444466))
––––––––––––––
((990000,,331199))

176,435
(10,992)
––––––––––––––
(295,918)

11,,881144
––––––––––––––
((889988,,550055))
––––––––––––––

11,660
––––––––––––––
(284,258)
––––––––––––––

((774477,,117722))
((33,,778822))
––––––––––––––
((775500,,995533))
––––––––––––––

(793,475)
-
––––––––––––––
(793,475)
––––––––––––––

113300,,006600
––––––––––––––
113300,,006600
––––––––––––––
((11,,551199,,339988))

-
––––––––––––––
-
––––––––––––––
(1,077,733)

Cash and cash equivalents at beginning of financial year

33,,001155,,88558

4,150,649

Effect of exchange rate changes on cash held in foreign currencies

Cash and cash equivalents at end of financial year

((7711,,443355))
––––––––––––––
11,,442255,,002255
––––––––––––––
––––––––––––––

(57,058)
––––––––––––––
3,015,858
––––––––––––––
––––––––––––––

16

Petrel
Resources
Plc
Annual
Report and
Accounts
2013

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301100 Petrel Accounts  23/06/2014  16:21  Page 27

Notes To The Financial Statements
For the Year Ended 31 December 2013

11..

PPRRIINNCCIIPPAALL  AACCCCOOUUNNTTIINNGG  PPOOLLIICCIIEESS

TThhee  ssiiggnniiffiiccaanntt  aaccccoouunnttiinngg  ppoolliicciieess  aaddoopptteedd  bbyy  tthhee  GGrroouupp  aanndd  ccoommppaannyy  aarree  aass  ffoolllloowwss::

((ii))

BBaassiiss  ooff  pprreeppaarraattiioonn

The financial statements are prepared under the historical cost convention. The consolidated
financial statements are presented in Euro.

((iiii))

SSttaatteemmeenntt  ooff  ccoommpplliiaannccee

The financial statements have been prepared in accordance with International Financial Reporting
Standards (IFRSs) issued by the International Accounting Standards Board (IASB) and International
Financial Reporting Interpretations Committee (IFRIC) as adopted by the European Union.

The financial statements are prepared under the Companies Acts, 1963 to 2013.

((iiiiii))

BBaassiiss  ooff  ccoonnssoolliiddaattiioonn

The consolidated financial statements incorporate the financial statements of the Company and
entities controlled by the Company (its subsidiaries) made up to 31 December each year. Control
is achieved where the Company has the power to govern the financial and operating policies of
an investee entity so as to obtain benefits from its activities or is exposed, or has any right to,
variable return from its involvement with the investee.

All intra-Group transactions, balances, income and expenses are eliminated on consolidation.

((iivv))

IInnvveessttmmeenntt  iinn  ssuubbssiiddiiaarriieess

Investments in subsidiaries are stated at cost less any allowance for impairment.

((vv))

IInnttaannggiibbllee  aasssseettss

EExxpplloorraattiioonn  aanndd  eevvaalluuaattiioonn  aasssseettss
Exploration expenditure relates to the initial search for mineral deposits with economic potential
in Iraq, Ireland and Ghana. Evaluation expenditure arises from a detailed assessment of deposits
that have been identified as having economic potential.

The costs of exploration assets, which include the cost of acquiring prospective properties and
exploration rights and costs incurred in exploration and evaluation activities, are capitalised as
intangible assets as part of exploration and evaluation assets.

Exploration costs are capitalised as an intangible asset until technical feasibility and commercial
viability of extraction of reserves are demonstrable, when the capitalised exploration costs are
re-classed to property, plant and equipment. Exploration costs include an allocation of
administration and salary costs (including share based payments) as determined by
management, where they relate to specific projects.

Prior to reclassification to property, plant and equipment exploration and evaluation assets are
assessed for impairment and any impairment loss is recognised immediately in the statement of
comprehensive income.

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Plc
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2013

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Notes To The Financial Statements (continued)
For the Year Ended 31 December 2013

11..

PPRRIINNCCIIPPAALL  AACCCCOOUUNNTTIINNGG  PPOOLLIICCIIEESS  ((ccoonnttiinnuueedd))

((vv))

IInnttaannggiibbllee  aasssseettss  ((ccoonnttiinnuueedd))

IImmppaaiirrmmeenntt  ooff  iinnttaannggiibbllee  aasssseettss
Exploration and evaluation assets are assessed for impairment when facts and circumstances
suggest that the carrying amount may exceed its recoverable amount. The Company reviews and
tests for impairment on an ongoing basis and specifically if any of the following occurs:

a)

b)

c)

d)

the period for which the group has a right to explore in the specific area has expired
during the period or will expire in the near future, and is not expected to be renewed;
substantive expenditure on further exploration for and evaluation of oil or gas resources in
the specific area is neither budgeted nor planned;
exploration for an evaluation of resources in the specific area have not led to the discovery
of commercially viable quantities of oil or gas resources and the group has decided to
discontinue such activities in the specific area; and
sufficient data exists to indicate that although a development in the specific area is likely
to proceed the carrying amount of the exploration and evaluation asset is unlikely to be
recovered in full from successful development or by sale.

((vvii))

FFoorreeiiggnn  ccuurrrreenncciieess

The financial statements of the Company are maintained in the currency of the primary economic
environment in which it operates (its functional currency). The functional currency of the company
is US Dollars. However, for the purpose of the consolidated financial statements, the results and
financial position of the Company and Group are expressed in Euro (the presentation currency).
This is for the benefit of the Company and Group’s shareholders, the majority of whom reside in
the Eurozone.

In preparing the financial statements of the individual companies, transactions in currencies other
than the entity’s functional currency (foreign currencies) are recorded at the rates of exchange
prevailing on the dates of the transactions. At each balance sheet date, monetary assets and
liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on
the balance sheet date. Non-monetary items carried at fair value that are denominated in foreign
currencies are retranslated at the rates prevailing at the date when the fair value was re-
determined. Non-monetary items that are measured in terms of historical cost in a foreign
currency are not retranslated.

Exchange differences arising on the settlement of monetary items, and on the retranslation of
monetary items, are included in the statement of comprehensive income for the period. Exchange
differences arising on the retranslation of non-monetary items carried at fair value are included in the
statement of comprehensive income for the period except for differences arising on the retranslation
of non-monetary items in respect of which gains and losses are recognised directly in equity.

For the purpose of presenting consolidated financial statements, the assets and liabilities of the
Company and Group’s foreign operations are translated at exchange rates prevailing on the
balance sheet date. Income and expense items are translated at the average exchange rates for
the period, unless exchange rates fluctuate significantly during that period, in which case the
exchange rates at the date of transactions are used. All resulting exchange differences are
recognised in other comprehensive income.

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Plc
Annual
Report and
Accounts
2013

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Notes To The Financial Statements (continued)
For the Year Ended 31 December 2013

11..

PPRRIINNCCIIPPAALL  AACCCCOOUUNNTTIINNGG  PPOOLLIICCIIEESS  ((ccoonnttiinnuueedd))

((vviiii))

TTaaxxaattiioonn

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax is based on the taxable result for the year. Taxable result differs from net loss as
reported in the statement of comprehensive income because it excludes items of income or
expense that are taxable or deductible in other years and it further excludes items that are
never taxable or deductible. The Group’s liability for current tax is calculated using tax rates that
have been enacted or substantively enacted by the balance sheet date.

Deferred tax is the tax expected to be payable or recoverable on differences between the
carrying amounts of assets and liabilities in the financial statements and the corresponding tax
bases used in the computation of taxable result, and is accounted for using the balance sheet
liability method. Deferred tax liabilities are generally recognised for all taxable temporary
differences and deferred tax assets are recognised for all deductible temporary differences, carry
forward of unused tax assets and unused tax losses to the extent that it is probable that taxable
profits will be available against which deductible temporary differences and the carry forward of
unused tax credits and unused tax losses can be utilised.

Deferred tax is calculated at the tax rates that are expected to apply in the period when the
liability is settled or the asset is realised, based on tax rates (and tax laws) that have been
enacted or substantively enacted at the balance sheet date. Deferred tax is charged or credited
in the statement of comprehensive income, except when it relates to items charged or credited
directly to equity, in which case the deferred tax is also dealt with in equity.

Unrecognised deferral tax assets are reassessed at each balance sheet date and are recognised
to the event that it has become probable that future taxable projects will allow the deferred tax
asset to be recovered.

((vviiiiii))

SShhaarree--bbaasseedd  ppaayymmeennttss

The Group and Company have applied the requirements of IFRS 2 “Share-Based Payments”. In
accordance with the transitional provisions, IFRS 2 has been applied to all equity instruments
vesting after 1 January 2006.

Equity settled share-based payments are measured at fair value at the date of grant. The fair
value excludes the effect of non-market based vesting conditions. The fair value determined at
the grant date of the equity-settled share-based payments is expensed on a straight-line basis
over the vesting period based on the Group and Company’s estimate of shares that will
eventually vest. At the balance sheet date the Group reviews its estimate of the nature of equity
instruments expected to vest as a result of the effect of non-market based vesting conditions.

Where the value of the goods or services received in exchange for the share-based payment
cannot be reliably estimated the fair value is measured by use of a Black-Scholes model.

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Plc
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2013

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Notes To The Financial Statements (continued)
For the Year Ended 31 December 2013

11..

PPRRIINNCCIIPPAALL  AACCCCOOUUNNTTIINNGG  PPOOLLIICCIIEESS  ((ccoonnttiinnuueedd))

((iixx))

OOppeerraattiinngg  lloossss

Operating loss comprises general administrative costs incurred by the Company. Operating loss is
stated before finance income, finance costs and other gains and losses.

((xx))

FFiinnaanncciiaall  iinnssttrruummeennttss

Financial assets and financial liabilities are recognised in the Group and Company balance sheet
when the Group and Company becomes a party to the contractual provisions of the instrument.

FFiinnaanncciiaall  AAsssseettss
Financial assets are initially recognised at fair value. Subsequent measurement is at cost for
equity instruments for which no quoted price exists on an active market and for which fair value
cannot be reliably measured. If the recoverable amount falls below the carrying amount an
impairment loss is recognised. Such losses are not reversed.

TTrraaddee  aanndd  ootthheerr  rreecceeiivvaabblleess
Trade and other receivables are measured at initial recognition at invoice value, which
approximates to fair value. Appropriate allowances for estimated irrecoverable amounts are
recognised in the statement of comprehensive income when there is objective evidence that the
carrying value of the asset exceeds the recoverable amount. Subsequently, trade and other
receivables are classified as loans and receivables which are measured at amortised cost, using
the effective interest method.

CCaasshh  aanndd  ccaasshh  eeqquuiivvaalleennttss
Cash and cash equivalents comprise cash held by the Group and Company and short-term bank
deposits with a maturity of three months or less from the date of placement.

FFiinnaanncciiaall  lliiaabbiilliittiieess
Financial liabilities are classified according to the substance of the contractual arrangements
entered into.

TTrraaddee  ppaayyaabblleess
Trade payables are classified as financial liabilities, are initially measured at fair value, and are
subsequently measured at amortised cost using the effective interest rate method.

EEqquuiittyy  iinnssttrruummeennttss
Equity instruments issued by the Company are recorded at the proceeds received, net of direct
issue costs.

((xxii))

CCrriittiiccaall  aaccccoouunnttiinngg  jjuuddggmmeennttss  aanndd  kkeeyy  ssoouurrcceess  ooff  eessttiimmaattiioonn  uunncceerrttaaiinnttyy

CCrriittiiccaall  jjuuddggmmeennttss  iinn  aappppllyyiinngg  tthhee  GGrroouupp  aanndd  CCoommppaannyy  aaccccoouunnttiinngg  ppoolliicciieess
In the process of applying the Group and Company accounting policies above, management has
identified the judgmental areas as those that have the most significant effect on the amounts
recognised in the financial statements (apart from those involving estimations, which are dealt
with below):

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Plc
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2013

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301100 Petrel Accounts  23/06/2014  16:21  Page 31

Notes To The Financial Statements (continued)
For the Year Ended 31 December 2013

11..

PPRRIINNCCIIPPAALL  AACCCCOOUUNNTTIINNGG  PPOOLLIICCIIEESS  ((ccoonnttiinnuueedd))

((xxii))

CCrriittiiccaall  aaccccoouunnttiinngg  jjuuddggmmeennttss  aanndd  kkeeyy  ssoouurrcceess  ooff  eessttiimmaattiioonn  uunncceerrttaaiinnttyy  ((ccoonnttiinnuueedd))

EExxpplloorraattiioonn  aanndd  eevvaalluuaattiioonn
The assessment of whether general administration costs and salary costs are capitalised or
expensed involves judgement. Management considers the nature of each cost incurred and
whether it is deemed appropriate to capitalise it within intangible assets.

Costs which can be demonstrated as project related are included within exploration and
evaluation assets. Exploration and evaluation assets relate to exploration and related expenditure
in Ireland, Iraq and Ghana.

The Group and Company’s exploration activities are subject to a number of significant and
potential risks including:

•
•
•
•

Licence obligations;
Funding requirements;
Political and legal risks, including title to licence, profit sharing and taxation; and
Geological and development risks:

The recoverability of these exploration and evaluation assets is dependent on the discovery and
successful development of economic reserves, including the ability to raise finance to develop
future projects. Should this prove unsuccessful, the value included in the balance sheet would be
written off as an impairment to the statement of comprehensive income.

IImmppaaiirrmmeenntt  ooff  iinnttaannggiibbllee  aasssseettss
The assessment of intangible assets for any indications of impairment involves judgement. If an
indication of impairment exists, a formal estimate of recoverable amount is performed and an
impairment loss recognised to the extent that the carrying amount exceeds the recoverable amount.
Recoverable amount is determined as the higher of fair value less costs to sell and value in use.

The assessment requires judgements as to the likely future commerciality of the assets and
when such commerciality should be determined, future revenue and operating costs and the
discount rate to be applied to such revenues and costs.

DDeeffeerrrreedd  ttaaxx  aasssseettss
The assessment of availability of future taxable profits involves judgement. A deferred tax asset
is recognised to the extent that it is probable that taxable profits will be available against which
deductible temporary differences and the carry forward of unused tax credits and unused tax
losses can be utilised.

GGooiinngg  CCoonncceerrnn
The preparation of financial statements requires an assessment on the validity of the going
concern assumption. The validity of the going concern assumption is dependent on finance being
available for the continuing working capital requirements of the Group and Company and finance
for the development of the Group’s projects.

Petrel
Resources
Plc
Annual
Report and
Accounts
2013

3311

301100 Petrel Accounts  23/06/2014  16:21  Page 32

Notes To The Financial Statements (continued)
For the Year Ended 31 December 2013

11..

PPRRIINNCCIIPPAALL  AACCCCOOUUNNTTIINNGG  PPOOLLIICCIIEESS  ((ccoonnttiinnuueedd))

((xxii))

CCrriittiiccaall  aaccccoouunnttiinngg  jjuuddggmmeennttss  aanndd  kkeeyy  ssoouurrcceess  ooff  eessttiimmaattiioonn  uunncceerrttaaiinnttyy  ((ccoonnttiinnuueedd))

KKeeyy  ssoouurrcceess  ooff  eessttiimmaattiioonn  uunncceerrttaaiinnttyy
The preparation of financial statements requires management to make estimates and
assumptions that affect the amounts reported for assets and liabilities at the balance sheet date
and the amounts reported in the statement of comprehensive income for the year. The nature of
estimation means that actual outcomes could differ from those estimates. The key sources of
estimation uncertainty that have a significant risk of causing material adjustment to the carrying
amounts of assets and liabilities within the next financial year are discussed below.

The assessment of intangible assets for any indication of impairment involves uncertainty. There is
uncertainty as to whether the exploration activity will yield any economically viable discovery.
Aspects of uncertainty surrounding the group’s intangible assets include the amount of potential
reserves, ability to be awarded exploration licences, and the ability to raise sufficient finance to
develop the group’s projects.

22..

IINNTTEERRNNAATTIIOONNAALL  FFIINNAANNCCIIAALL  RREEPPOORRTTIINNGG  SSTTAANNDDAARRDDSS

The Group did not adopt any new International Financial Reporting Standards (IFRS) or
Interpretations in the year that had a material impact on the Group’s Financial Statements. The
following IFRS became effective since the last Annual Report but had no material impact on the
Financial Statements:

IFRS 1 (amendment)

IFRS 7 (amendment)

IAS 32 (amendment)
IFRS 7 (amendment)

IAS 1 (amendment)

IFRS 13
IFRIC 20

IAS 16 (amendment)
IAS 34 (amendment)
IAS 19 (amendment)

First-time adoption of International Financial
Reporting Standards
Financial Instruments: Disclosures – Improving
Disclosures about Financial Instruments
Financial Instruments: Presentation

Disclosures about Financial Instruments
Presentation of Financial Statements

Fair Value Measurement
Stripping Costs in the Production Phase
of a Surface Mine
Property, Plant and Equipment
Interim Financial Reporting
Employee Benefits

EEffffeeccttiivvee  ddaattee

1 January 2013

1 January 2013
1 January 2013

1 January 2013
1 July 2012 and
1 January 2013
1 January 2013

1 January 2013
1 January 2013
1 January 2013
1 January 2013

Petrel
Resources
Plc
Annual
Report and
Accounts
2013

3322

301100 Petrel Accounts  23/06/2014  16:21  Page 33

Notes To The Financial Statements (continued)
For the Year Ended 31 December 2013

22..

IINNTTEERRNNAATTIIOONNAALL  FFIINNAANNCCIIAALL  RREEPPOORRTTIINNGG  SSTTAANNDDAARRDDSS  ((ccoonnttiinnuueedd))

At  the  date  of  authorisation  of  these  financial  statements,  the  following  Standards  and
Interpretations which have not been applied in these financial statements were in issue but not
yet effective:

EEffffeeccttiivvee  ddaattee

IFRS 7 (amendment)

IFRS 12 (amendment)
IFRS 11 (amendment)
IFRS 10 (amendment)
IAS 28 (amendment)
IAS 27 (amendment)
IFRS 7 (amendment)
IFRS 9
Annual improvements to IFRS 2009-2011 cycle
IFRS 14
IAS 32 (amendment)
IAS 36
IAS 39

Disclosures Offsetting Financial Assets
and Financial Liabilities
Disclosure of Interests in Other Entities
Joint Arrangements
Consolidated Financial Statements
Investments in Associates and Joint Ventures
Consolidated and Separate Financial Statements
Disclosures – Initial Application of IFRS 9
Financial Instruments

1 January 2015
1 January 2014
1 January 2014 & 1 January 2016
1 January 2014
1 January 2014
1 January 2014
1 January 2018
1 January 2017
1 January 2014
1 January 2016
1 January 2014
1 January 2014

Regulatory Deferral Accounts
Financial instruments presentation
Impairment of Assets
Financial Instruments Recognition
and Measurement
Defined Benefit Plans: Employment Contributions
Levies
Revenue from Contracts with Customers

1 January 2014 & 2015
1 July 2014
1 January 2014
1 January 2017

IAS 19
IFRIC21
IFRS15

The Directors are currently assessing the impact in relation to the adoption of these Standards
and Interpretations for future periods of the Group, however, at this point they do not believe
they will have a significant impact on the financial statements of the Group in the period of
initial application.

33..

GGOOIINNGG  CCOONNCCEERRNN

The Group and Company incurred a loss for the year of €526,783 (2012: loss of €469,767) and
had a retained earnings deficit of €13,267,177 (2012: deficit of €12,740,394), at the balance
sheet date leading to doubt about the Group and Company’s ability to continue as a going concern.

The Group and Company had a cash balance of €1,425,025 at the balance sheet date. Cash flow
projections prepared by the directors indicate that the funds available are sufficient to meet the
obligations of the Group and Company for a period of at least twelve months from the date of
approval of these financial statements. Accordingly the directors are satisfied that it is
appropriate to continue to prepare the financial statements of the Group and Company on a
going concern basis. The financial statements do not include any adjustment to the carrying
amount, or classification of assets and liabilities, which would be required if the Group or
Company was unable to continue as a going concern.

Petrel
Resources
Plc
Annual
Report and
Accounts
2013

3333

301100 Petrel Accounts  23/06/2014  16:21  Page 34

Notes To The Financial Statements (continued)
For the Year Ended 31 December 2013

44..

IINNVVEESSTTMMEENNTT  RREEVVEENNUUEE

Interest on bank deposits

55..

LLOOSSSS  BBEEFFOORREE  TTAAXXAATTIIOONN

The loss before taxation is stated after charging the following items:

Administrative expenses:
Professional fees
Staff costs - salaries

- payroll taxes

Other administration expenses
Impairment of exploration and evaluation expenditure
Share based payments

22001133
€

2012
€

11,,881144
––––––––––––––
––––––––––––––

11,660
––––––––––––––
––––––––––––––

22001133
€

2012
€

228844,,338833
9988,,660066
1166,,661188
9955,,889966
1199,,665588
1133,,443355
––––––––––––––
552288,,559966
––––––––––––––
––––––––––––––

204,519
177,930
12,792
66,120
20,066
-
––––––––––––––
481,427
––––––––––––––
––––––––––––––

Details of auditors’ and directors’ remuneration are set out in Notes 6 and 7 respectively

66..

AAUUDDIITTOORRSS’’  RREEMMUUNNEERRAATTIIOONN

Auditors’ remuneration for work carried out for the Group and Company in respect of the financial
year is as follows:

GGrroouupp

Audit of Group accounts
Other assurance services
Tax advisory services
Other non-audit services

Total

22001133
€

2012
€

1199,,000000
11,,000000
11,,000000
-
––––––––––––––
2211,,000000
––––––––––––––
––––––––––––––

19,000
1,000
1,000
-
––––––––––––––
21,000
––––––––––––––
––––––––––––––

Petrel
Resources
Plc
Annual
Report and
Accounts
2013

3344

301100 Petrel Accounts  23/06/2014  16:21  Page 35

Notes To The Financial Statements (continued)
For the Year Ended 31 December 2013

66..

AAUUDDIITTOORRSS’’  RREEMMUUNNEERRAATTIIOONN ((ccoonnttiinnuueedd))

22001133
€

2012
€

99,,550000
99,,550000
11,,000000
-
––––––––––––––
2200,,000000
––––––––––––––
––––––––––––––

9,500
9,500
1,000
-
––––––––––––––
20,000
––––––––––––––
––––––––––––––

CCoommppaannyy

Audit of individual company accounts
Other assurance services
Tax advisory services
Other non-audit services

Total

77..

RREELLAATTEEDD  PPAARRTTYY  AANNDD  OOTTHHEERR  TTRRAANNSSAACCTTIIOONNSS

GGrroouupp  aanndd  CCoommppaannyy

DDiirreeccttoorrss’’  rreemmuunneerraattiioonn
The remuneration of the directors is as follows:

22001133
FFeeeess  ––
sseerrvviicceess  aass
ddiirreeccttoorrss
€

22001133
FFeeeess  ––
ootthheerr
sseerrvviicceess
€

22001133

TToottaall
€

2012
Fees –
services as
directors
€

2012
Fees –
other
services
€

2012

Total
€

55,,000000
55,,000000
––––––––––––
1100,,000000
––––––––––––
––––––––––––

9955,,000000
114455,,000000
––––––––––––
224400,,000000
––––––––––––
––––––––––––

110000,,000000
115500,,000000
––––––––––––
225500,,000000
––––––––––––
––––––––––––

5,000
5,000
––––––––––––
10,000
––––––––––––
––––––––––––

95,000
145,000
––––––––––––
240,000
––––––––––––
––––––––––––

100,000
150,000
––––––––––––
250,000
––––––––––––
––––––––––––

John Teeling
David Horgan

The number of directors to whom retirement benefits are accruing is nil. There were no
entitlements to pension schemes or retirement benefits. The aggregate amount of the gains
made by directors on the exercise of share options during the year was €354,968. Details of
directors’ interests in the shares of the company are set out in the Directors’ Report.

Directors’ remuneration of €175,000 (2012: €150,000) was capitalised as exploration and
evaluation expenditure as set out in Note 13

KKeeyy  mmaannaaggeemmeenntt  ccoommppeennssaattiioonn
Key management personnel are deemed to be John Teeling (Chairman), David Horgan (Director),
and James Finn (Chief Financial Officer). The total compensation expense comprising solely of
short-term benefits in respect of key management personnel was as follows:

Short-term employee benefits

22001133
€

2012
€

335500,,000000
––––––––––––––
––––––––––––––

350,000
––––––––––––––
––––––––––––––

Petrel
Resources
Plc
Annual
Report and
Accounts
2013

3355

301100 Petrel Accounts  23/06/2014  16:21  Page 36

Notes To The Financial Statements (continued)
For the Year Ended 31 December 2013

77..

RREELLAATTEEDD  PPAARRTTYY  AANNDD  OOTTHHEERR  TTRRAANNSSAACCTTIIOONNSS ((ccoonnttiinnuueedd))

OOtthheerr
Petrel Resources plc shares offices and overheads with a number of companies also based at 162
Clontarf Road. These companies have some common directors.

Transactions with these companies during the year are set out below:

BBoottsswwaannaa
DDiiaammoonnddss  ppllcc
€

CClloonnttaarrff
EEnneerrggyy  ppllcc
€

CCoonnnneemmaarraa
MMiinniinngg  ppllcc
€

HHyyddrrooccaarrbboonn
EExxpplloorraattiioonn
LLiimmiitteedd
€

TToottaall
€

Balance at 1 January 2012

5,009

6,577

3,739

(4,012)

11,313

Office and overhead costs recharged
Exploration and evaluation expenditure
recharged by Petrel
Exploration and evaluation expenditure
recharged to Petrel
Repayments

Balance at 31 December 2012

Balance at 1 January 2013
Office and overhead costs recharged
Repayments

BBaallaannccee  aatt  3311  DDeecceemmbbeerr  22001133

(33,770)

10,663

60,297

-

12,079

-

-

-

37,190

12,079

-
28,761
––––––––––––
-
––––––––––––
––––––––––––

(82,988)
54,643
––––––––––––
974
––––––––––––
––––––––––––

-
(64,036)
––––––––––––
-
––––––––––––
––––––––––––

-
4,012
––––––––––––
-
––––––––––––
––––––––––––

(82,988)
23,380
––––––––––––
974
––––––––––––
––––––––––––

-
4,042
(4,042)
––––––––––––
-
––––––––––––
––––––––––––

974
-
(974)
––––––––––––
-
––––––––––––
––––––––––––

-
66,947
(66,947)
––––––––––––
-
––––––––––––
––––––––––––

-
-

––––––––––––
-
––––––––––––
––––––––––––

974
70,989
(71,963)
––––––––––––
-
––––––––––––
––––––––––––

CCoommppaannyy
At 31 December the following amount was due to the company by its subsidiary:

Amounts due from Petrel Resources (TCI Limited)

22001133
€

2012
€

44,,220077,,334411
––––––––––––––
––––––––––––––

-
––––––––––––––
––––––––––––––

The amount due is non-interest bearing, unsecured and repayable on demand. The recoverability
of the amount due is dependent on the discovery and successful development of economic
mineral reserves which is subject to a number of risks as set out in Note 1(xi).

88..

SSTTAAFFFF  NNUUMMBBEERRSS

The average number of persons employed by the group (including directors and secretary) during
the year was:

Management and administration

22001133
NNuummbbeerr

2012
Number

5
––––––––––––––
––––––––––––––

5
––––––––––––––
––––––––––––––

Petrel
Resources
Plc
Annual
Report and
Accounts
2013

3366

301100 Petrel Accounts  23/06/2014  16:21  Page 37

Notes To The Financial Statements (continued)
For the Year Ended 31 December 2013

88..

SSTTAAFFFF  NNUUMMBBEERRSS ((ccoonnttiinnuueedd))

Staff costs for the above persons were:

Wages and salaries
Social welfare costs
Pension costs

99..

SSEEGGMMEENNTTAALL  AANNAALLYYSSIISS

22001133
€

2012
€

443333,,660066
1166,,661188
-
––––––––––––––
445500,,222244
––––––––––––––
––––––––––––––

437,930
12,792
-
––––––––––––––
450,722
––––––––––––––
––––––––––––––

The Group adopted IFRS 8 Operating Segments with effect from 1 January 2009. IFRS 8 requires
operating segments to be identified on the basis of internal reports about the Group that are
regularly reviewed by the chief operating decision maker. The Board is deemed the chief
operating decision maker within the Group. For management purposes, the Group has one class
of business: oil exploration and development. This is analysed on a geographical basis.

99AA..  SSeeggmmeenntt  RReessuullttss

CCoonnttiinnuuiinngg  OOppeerraattiioonnss
Iraq
Africa
Ireland

Total for continuing operations
Unallocated head office

22001133
€

2012
€

-
((1199,,665588))
-
––––––––––––––
((1199,,665588))
((550077,,112255))
––––––––––––––
((552266,,778833))
––––––––––––––
––––––––––––––

-
(20,066)
-
––––––––––––––
(20,066)
(449,701)
––––––––––––––
(469,767)
––––––––––––––
––––––––––––––

There was no revenue earned during the year (2012: €Nil).

99BB..  SSeeggmmeenntt  AAsssseettss  aanndd  LLiiaabbiilliittiieess  

Iraq
Africa
Ireland

Total for continuing operations
Unallocated Head Office

AAsssseettss

22001133
€

2012
€

LLiiaabbiilliittiieess

22001133
€

2012
€

66,,559977,,00990
666622,,994433
997722,,885544
––––––––––––
88,,223322,,888877
11,,445555,,228877
––––––––––––
99,,668888,,117744
––––––––––––
––––––––––––

2,292,050
607,134
524,865
––––––––––––
3,424,049
3,059,324
––––––––––––
6,483,373
––––––––––––
––––––––––––

-
((88,,116644))
((44,,884422))
––––––––––––
((1133,,000066))
((339977,,882200))
––––––––––––
((441100,,882266))
––––––––––––
––––––––––––

-
-
(41,729)
––––––––––––
(41,729)
(365,466)
––––––––––––
(407,195)
––––––––––––
––––––––––––

Petrel
Resources
Plc
Annual
Report and
Accounts
2013

3377

301100 Petrel Accounts  23/06/2014  16:21  Page 38

Notes To The Financial Statements (continued)
For the Year Ended 31 December 2013

99..

SSEEGGMMEENNTTAALL  AANNAALLYYSSIISS ((ccoonnttiinnuueedd))

99BB..  SSeeggmmeenntt  AAsssseettss  aanndd  LLiiaabbiilliittiieess  ((ccoonnttiinnuueedd))

AAddddiittiioonnss  ttoo  nnoonn--ccuurrrreenntt  aasssseettss  ((GGrroouupp  aanndd  CCoommppaannyy))

Iraq
Africa
Ireland

Total for continuing operations
Unallocated head office

1100..

IINNCCOOMMEE  TTAAXX  EEXXPPEENNSSEE

FFaaccttoorrss  aaffffeeccttiinngg  tthhee  ttaaxx  eexxppeennssee::

Loss on ordinary activities before tax

Income tax calculated @ 12.5%

EEffffeeccttss  ooff::
Expenses not allowable
Tax losses carried forward
Income taxed at higher rate

Tax charge

22001133
€

2012
€

44,,330011,,225588
7755,,446677
444477,,998899
––––––––––––––
44,,880055,,005566
-
––––––––––––––
44,,880055,,005566
––––––––––––––
––––––––––––––

266,736
215,675
311,064
––––––––––––––
793,475
-
––––––––––––––
793,475
––––––––––––––
––––––––––––––

22001133
€

2012
€

((552288,,559977))
––––––––––––––
((6666,,007755))

(481,427)
––––––––––––––
(60,178)

1122,,330000
5533,,555544
222211
––––––––––––––
-
––––––––––––––
––––––––––––––

3,487
55,234
1,457
––––––––––––––
-
––––––––––––––
––––––––––––––

No corporation tax charge arises in the current year or the prior year due to losses brought
forward.

At the balance sheet date, the Group had unused tax losses of €5,090,900 (2012: €4,662,472)
which equates to a deferred tax asset of €636,363 (2012: €582,809). No deferred tax asset has
been recognised due to the unpredictability of the future profit streams. Losses may be carried
forward indefinitely.

1111..

LLOOSSSS  PPEERR  SSHHAARREE

Loss per share - basic and diluted

22001133
€

2012
€

((00..6633cc))
––––––––––––––
––––––––––––––

(0.61c)
––––––––––––––
––––––––––––––

Petrel
Resources
Plc
Annual
Report and
Accounts
2013

3388

301100 Petrel Accounts  23/06/2014  16:21  Page 39

Notes To The Financial Statements (continued)
For the Year Ended 31 December 2013

1111..

LLOOSSSS  PPEERR  SSHHAARREE ((ccoonnttiinnuueedd))

BBaassiicc  lloossss  ppeerr  sshhaarree
The earnings and weighted average number of ordinary shares used in the calculation of basic
loss per share are as follows:

Loss for the year attributable to equity holders

Weighted average number of ordinary shares for the
purpose of basic earnings per share

22001133
€

2012
€

((552266,,778833))
––––––––––––––
––––––––––––––

(469,767)
––––––––––––––
––––––––––––––

22001133
NNuummbbeerr

2012
Number

8844,,008888,,221177
––––––––––––––
––––––––––––––

76,664,624
––––––––––––––
––––––––––––––

Basic and diluted loss per share are the same as the effect of the outstanding share options is
anti-dilutive.

1122..

FFIINNAANNCCIIAALL  AASSSSEETT

IInnvveessttmmeenntt

GGrroouupp

At the beginning of the year
Additions

At the end of the year

22001133
€

2012
€

-
44,,221111,,112233
––––––––––––––

-
-
––––––––––––––

44,,221111,,112233
––––––––––––––

-
––––––––––––––

On 14 August 2013 the company announced that through its wholly owned subsidiary, Petrel
Resources (TCI) Limited, it had acquired a 20 per cent shareholding in Amira Hydrocarbons Wasit
B.V.(“Amira”) from Amira Petroleum N.V. Amira is a special purpose vehicle which holds a 25 per
cent carried to production interest in an early stage oil opportunity in the large, underexplored
and underdeveloped province of Wasit.

Although the company owns 20 per cent of Amira, it does not have significant influence over
Amira. Petrel does not have any representation on the Board of Amira. It does not have the right
to participate in any financial or operating policy decisions. As a result Amira does not meet the
definition of an associate and is treated as an investment.

The consideration for the Acquisition comprised an up-front cash payment of US$500,000 and
the issue of 18,947,368 shares in Petrel (“Initial Consideration Shares”), representing 19.82 per
cent of the enlarged issued share capital of Petrel. The Initial Consideration Shares are locked-in
until the spudding of the first conventional oil well in respect of Amira’s interest in the Wasit
province. If the Spudding Date has not occurred by 19 August 2018, Petrel may, amongst other
things, elect to re-acquire the Initial Consideration Shares for a nominal amount.

Petrel
Resources
Plc
Annual
Report and
Accounts
2013

3399

301100 Petrel Accounts  23/06/2014  16:21  Page 40

Notes To The Financial Statements (continued)
For the Year Ended 31 December 2013

1122..

FFIINNAANNCCIIAALL  AASSSSEETT ((ccoonnttiinnuueedd))

Following completion of the Acquisition, a further 21,052,632 shares in Petrel may be issued in
two tranches upon the occurrence of certain events (“Deferred Consideration Shares”). The first
tranche of 10,526,316 Deferred Consideration Shares is to be issued upon the Spudding of the
first conventional oil well. The second tranche of 10,526,316 Deferred Consideration Shares is to
be issued upon notification of a discovery in respect of Amira’s interest in the Wasit Province.

As part of the Acquisition, Arman Kayablian, COO of Amira Industries, joined the board of Petrel as
a non-executive director with effect from 19 August 2013.

Under the terms of the Acquisition agreement, Petrel is also given a right of first refusal to
participate or acquire an operated interest in any future exploration and production licences that
Amira Industries secures in the Iraqi provinces of Muthanna, Karbala, Babil and Najaf, which are
currently being pursued by Amira Industries. The terms of Petrel’s participation in such licence are
subject to agreement between the parties but are likely to be similar to Amira Industries’
arrangement with Oryx Petroleum (“Oryx”) in respect of the Wasit licences.

Fair value information for the investment in Amira has not been disclosed as its fair value cannot
be reliably measured. As a result the investment is carried at amortised cost. Fair value cannot be
reliably measured as the investment is held in a private company. The company’s equity
instruments do not have a quoted price in an active market.

The recoverability of the group’s financial asset is dependent on the discovery and successful
development of the economic reserves which is subject to a number of risks as outlined in 
Note 1 (xi).

1133..

IINNTTAANNGGIIBBLLEE  AASSSSEETTSS

EExxpplloorraattiioonn  aanndd  eevvaalluuaattiioonn  aasssseettss::

CCoosstt::

Opening balance
Additions
Impairment charge
Exchange translation adjustment

Closing balance

SSeeggmmeennttaall  AAnnaallyyssiiss

Iraq
Ghana
Ireland

Petrel
Resources
Plc
Annual
Report and
Accounts
2013

4400

GGrroouupp

22001133
€

2012
€

CCoommppaannyy

22001133
€

2012
€

33,,442244,,004499
776600,,660088
((1199,,665588))
((114477,,001177))
––––––––––––
44,,001177,,998822
––––––––––––
––––––––––––

2,700,960
793,475
(20,066)
(50,320)
––––––––––––
3,424,049
––––––––––––
––––––––––––

33,,441122,,881122
776600,,660088
((1199,,665588))
((114477,,001177))
––––––––––––
44,,000066,,774455
––––––––––––
––––––––––––

2,689,723
793,475
(20,066)
(50,320)
––––––––––––
3,412,812
––––––––––––
––––––––––––

GGrroouupp
22001133
€

22,,338822,,118855
666622,,994433
997722,,885544
––––––––––––
44,,001177,,998822
––––––––––––
––––––––––––

Group
2012
€

2,292,050
607,134
524,865
––––––––––––
3,424,049
––––––––––––
––––––––––––

301100 Petrel Accounts  23/06/2014  16:21  Page 41

Notes To The Financial Statements (continued)
For the Year Ended 31 December 2013

1133..

IINNTTAANNGGIIBBLLEE  AASSSSEETTSS ((ccoonnttiinnuueedd))

Exploration and evaluation assets at 31 December 2013 represent exploration and related
expenditure in respect of projects in Ireland, Iraq and Ghana. The directors are aware that by its
nature there is an inherent uncertainty in relation to the recoverability of amounts capitalised on
the exploration projects. In addition, the current economic and political situation in Iraq is
uncertain.

During the year the group incurred expenditure of €19,658 on minor projects in Africa. These
projects were terminated during 2013 and the assets were impaired to nil.

In 2012, the directors decided to impair in full the Morocco and Guinea exploration and
evaluation assets to nil, amounting to a total impairment charge of €20,066. The decision was
taken as the projects were terminated during the year and the assets were impaired to nil.

Relating to the remaining exploration and evaluation assets at the year end, the directors
believe there were no facts or circumstances indicating that the carrying value of the intangible
assets may exceed their recoverable amount and thus no impairment review was deemed
necessary by the directors. The realisation of these intangible assets is dependent on the
successful discovery and development of economic reserves and is subject to a number of
significant potential risks, as set out in Note 1 (xi).

The Group is currently seeking clarification from the Ghanaian authorities that a petroleum
agreement in the Tano Basin block ratified by the Ghanaian parliarment in March 2014 does not
relate to an area covered by the licence held by Petrel Resources plc. The Group has been
granted an interlocutory injunction and interim order protecting the Group’s rights in the Tano
Basin block. Further details are set out in Note 25.

Directors’ remuneration of €175,000 (2012: €150,000), salaries of €110,000 (2012: €110,000)
and share based payments of €13,436 (2012: €Nil) were capitalised as exploration and
evaluation expenditure during the year.

1144..

IINNVVEESSTTMMEENNTT  IINN  SSUUBBSSIIDDIIAARRIIEESS

CCoommppaannyy

At beginning of the year
Additions

At end of the year

22001133
€

2012
€

1111,,223377
33,,778822
––––––––––––––
1155,,001199
––––––––––––––
––––––––––––––

11,237
-
––––––––––––––
11,237
––––––––––––––
––––––––––––––

On 6 August 2013 the company acquired 5,000 shares of US$1 each in Petrel Resources (TCI)
Limited, being 100% of that company’s issued share capital. Petrel Resources (TCI) Limited was
formed to acquire the 20% shareholding in Amira Hydrocarbons Wasit B.V. Details of the
acquisition are provided in Note 12 above.

The directors are satisfied that the carrying value of the investment is not impaired. The
realisation of the investment in subsidiaries is dependent on the discovery and successful
development of economic reserves and is subject to a number of significant potential risks, as
set out in Note 1 (xi).

Petrel
Resources
Plc
Annual
Report and
Accounts
2013

4411

301100 Petrel Accounts  23/06/2014  16:21  Page 42

Notes To The Financial Statements (continued)
For the Year Ended 31 December 2013

1144..

IINNVVEESSTTMMEENNTT  IINN  SSUUBBSSIIDDIIAARRIIEESS ((ccoonnttiinnuueedd))

The Group consisted of the parent company and the following wholly owned subsidiaries as at 31
December 2013:

NNaammee

NNaattuurree  ooff
BBuussiinneessss

RReeggiisstteerreedd
OOffffiiccee

Petrel Industries Limited

Dormant

162 Clontarf Road,
Dublin 3, Ireland

Petrel Resources of the
Middle East Offshore S.A.L.

Dormant

Damascus Street
Beirut, Lebanon

Petrel Resources (TCI) Limited

Holding

Duke Street, Grand
Turk, Turks & Caicos
Island

SShhaarree

100%

100%

100%

The company also holds a 30% interest in Pan Andean Resources Limited, an early stage
exploration company incorporated in Ghana. Pan Andean Resources Limited has not traded since
incorporation.

1155..

TTRRAADDEE  AANNDD  OOTTHHEERR  RREECCEEIIVVAABBLLEESS

VAT refund due
Other receivables
Due by subsidiaries (Note 7)

GGrroouupp
22001133
€

Group
2012
€

CCoommppaannyy
22001133
€

Company
2012
€

2299,,991199
44,,112255
-
––––––––––––
3344,,004444
––––––––––––
––––––––––––

24,634
18,832
-
––––––––––––
43,466
––––––––––––
––––––––––––

2299,,991199
44,,112255
44,,220077,,334411
––––––––––––
44,,224411,,338855
––––––––––––
––––––––––––

24,634
18,832
-
––––––––––––
43,466
––––––––––––
––––––––––––

The carrying value of trade and other receivables approximates to their fair value. The realisation of
amounts due by subsidiaries is dependent on the discovery and successful development of economic
reserves and is subject to a number of significant potential risks, as set out in Note 1 (xi).

1166..

CCAASSHH  AANNDD  CCAASSHH  EEQQUUIIVVAALLEENNTTSS

GGrroouupp
22001133
€

Group
2012
€

CCoommppaannyy
22001133
€

Company
2012
€

Cash and cash equivalents

11,,442255,,002255
––––––––––––
––––––––––––

3,015,858
––––––––––––
––––––––––––

11,,442255,,002255
––––––––––––
––––––––––––

3,015,858
––––––––––––
––––––––––––

Cash at bank earns interest at floating rates on daily bank rates. The fair value for cash and cash
equivalents is €1,425,025 (2012: €3,015,858) for Group and €1,425,025 (2012: €3,015,858) for
Company. The Group and Company only deposits cash surpluses with major banks.

Petrel
Resources
Plc
Annual
Report and
Accounts
2013

4422

301100 Petrel Accounts  23/06/2014  16:21  Page 43

Notes To The Financial Statements (continued)
For the Year Ended 31 December 2013

1177..

TTRRAADDEE  AANNDD  OOTTHHEERR  PPAAYYAABBLLEESS

Accruals
Other payables

GGrroouupp
22001133
€

Group
2012
€

CCoommppaannyy
22001133
€

Company
2012
€

291,518
119,308
––––––––––––
410,826
––––––––––––
––––––––––––

269,959
137,236
––––––––––––
407,195
––––––––––––
––––––––––––

291,518
119,308
––––––––––––
410,826
––––––––––––
––––––––––––

269,959
137,236
––––––––––––
407,195
––––––––––––
––––––––––––

It is the Group’s normal practice to agree terms of transactions, including payment terms, with
suppliers. It is the Group’s policy that payments are made between 30 - 45 days and suppliers
are required to perform in accordance with the agreed terms. The Group has financial risk
management policies in place to ensure that all payables are paid within the credit timeframe.
The carrying value of trade and other payables approximates to their fair value.

1188..

FFIINNAANNCCIIAALL  IINNSSTTRRUUMMEENNTTSS

The Group and Company undertakes certain transactions denominated in foreign currencies.
Hence, exposures to exchange rate fluctuations arise.

The Group and Company holds cash as a liquid resource to fund the obligations of the Group. The
Group’s cash balances are held in Euro, Sterling and in US dollar. The Group’s strategy for
managing cash is to maximise interest income whilst ensuring its availability to match the
profile of the Group’s expenditure. This is achieved by regular monitoring of interest rates and
monthly review of expenditure.

The Group and Company has a policy of not hedging due to no significant dealings in currencies
other than euro and dollar denominated transactions and therefore takes market rates in respect
of foreign exchange risk; however, it does review its currency exposures on an ad hoc basis.

The Group and Company has relied upon equity funding to finance operations. The directors are
confident that adequate cash resources exist to finance operations for future exploration but
expenditure is carefully managed and controlled.

The carrying amounts of the Group and Company's foreign currency denominated monetary
assets and monetary liabilities at the reporting dates are as follows:

GGRROOUUPP  AANNDD  CCOOMMPPAANNYY

Sterling
US Dollar

1199..

FFIINNAANNCCIIAALL  RRIISSKK  MMAANNAAGGEEMMEENNTT

AAsssseettss
22001133
€

Assets
2012
€

LLiiaabbiilliittiieess
22001133
€

Liabilities
2012
€

199,163
1,221,141
––––––––––––
––––––––––––

3,325
3,012,289
––––––––––––
––––––––––––

8,275
1,969
––––––––––––
––––––––––––

50,297
32,159
––––––––––––
––––––––––––

The Group’s financial instruments comprise cash balances and various items such as trade
receivables and trade payables which arise directly from exploration and evaluation activities.
The main purpose of these financial instruments is to provide working capital to finance Group
operations.

Petrel
Resources
Plc
Annual
Report and
Accounts
2013

4433

301100 Petrel Accounts  23/06/2014  16:21  Page 44

Notes To The Financial Statements (continued)
For the Year Ended 31 December 2013

1199..

FFIINNAANNCCIIAALL  RRIISSKK  MMAANNAAGGEEMMEENNTT ((ccoonnttiinnuueedd))

The Group and Company do not enter into any derivative transactions, and it is the Group's policy
that no trading in financial instruments shall be undertaken. The main financial risk arising from
the Group’s financial instruments is currency risk. The board reviews and agrees policies for
managing financial risks and they are summarised below.

Interest rate risk profile of financial assets and financial liabilities The Group finances its
operations through the issue of equity shares, and had no exposure to interest rate agreements at
the year end date.

LLiiqquuiiddiittyy  RRiisskk
As regards liquidity, the Group’s policy is to ensure continuity of funding primarily through fresh
issues of shares. Short-term funding is achieved through utilizing and optimising the management
of working capital. All financial liabilities are due within 1 year from the year end. The directors
are confident that adequate cash resources exist to finance operations in the short term, including
exploration and development expenditure.

FFoorreeiiggnn  CCuurrrreennccyy  RRiisskk
The Group has transactional currency exposures. Such exposures arise from expenses incurred by
the Group in currencies other than the functional currency. The Group seeks to minimise its
exposure to currency risk by closely monitoring exchange rates, and maintaining a level of cash in
foreign denominated currencies sufficient to meet planned expenditure in that currency. Foreign
currency denominated assets and liabilities are set out in Note 18.

CCrreeddiitt  rriisskk
The maximum credit exposure of the group and company at 31 December 2013 amounted to
€1,459,069 and €5,666,411 respectively relating to cash and cash equivalents and receivables.
The directors believe there is limited exposure to credit risk on the group and company’s cash and
cash equivalents as they are held with major financial institutions. The credit risk on receivables is
significant and their recoverability is dependent on the discovery and successful development of
economic reserves by those subsidiary undertakings. Given the nature of the group’s business
significant amounts are required to be invested in exploration and evaluation activities at various
locations. The directors manage this risk by reviewing expenditure plans in relation to projects
before any monies are advanced.

CCaappiittaall  MMaannaaggeemmeenntt
The Group manages its capital structure and makes adjustments to it, in light of changes in
economic conditions. The Group does not hold any external debt and is not subject to any
externally imposed capital requirements. No changes were made in the objectives, policies or
processes during the years ended 31 December 2013 and 31 December 2012.

2200..

SSHHAARREE  CCAAPPIITTAALL

AAuutthhoorriisseedd::
200,000,000 ordinary shares of €0.0125

Petrel
Resources
Plc
Annual
Report and
Accounts
2013

4444

GGrroouupp  aanndd  CCoommppaannyy
22001133
€

2012
€

22,,550000,,000000
––––––––––––––
––––––––––––––

2,500,000
––––––––––––––
––––––––––––––

301100 Petrel Accounts  23/06/2014  16:21  Page 45

Notes To The Financial Statements (continued)
For the Year Ended 31 December 2013

2200..

SSHHAARREE  CCAAPPIITTAALL ((ccoonnttiinnuueedd))

AAllllootttteedd,,  ccaalllleedd--uupp  aanndd  ffuullllyy  ppaaiidd::

At 31 December 2012 and 1 January 2013
Issued during the year

At 31 December 2013

NNuummbbeerr

SShhaarree
CCaappiittaall
€

SShhaarree
PPrreemmiiuumm
€

958,308
287,717

76,664,624
23,017,368

17,784,268
3,631,817
–––––––––––––– –––––––––––––– ––––––––––––––
2211,,441166,,008855
–––––––––––––– –––––––––––––– ––––––––––––––
–––––––––––––– –––––––––––––– ––––––––––––––

9999,,668811,,999922

11,,224466,,002255

MMoovveemmeennttss  iinn  sshhaarree  ccaappiittaall
On 13 August 2013 the company issued 18,947,368 new ordinary shares to Amira Petroleum
N.V. at a price of 20c per share as part consideration for the acquisition of a 20 per cent
shareholding in Amira Hydrocarbons Wasit B.V. Details of this acquisition are provided in Note 12.

On 17 December 2013 the directors of the company exercised 4,070,000 options at exercise
prices ranging from 2.5p to 5p.

2211..

SSHHAARREE  BBAASSEEDD  PPAAYYMMEENNTT

The Group issues equity-settled share-based payments to certain directors and individuals who
have performed services for the Group. Equity-settled share-based payments are measured at
fair value at the date of grant. Fair value is measured by the use of a Black-Scholes model.

OOppttiioonnss
The Group plan provides for a grant price equal to the average quoted market price of the
ordinary shares on the date of grant. The options vest immediately.

OOppttiioonnss

Year ended

YYeeaarr  eennddeedd

YYeeaarr  eennddeedd
Year ended
3311//1122//22001133 3311//1122//22001133 31/12/2012 31/12/2012
Weighted
average
exercise
price in cent

WWeeiigghhtteedd
aavveerraaggee
eexxeerrcciissee
pprriiccee  iinn  ppeennccee

Options

Outstanding at beginning of year
Granted during the year
Forfeited during the year

Outstanding and exercisable at the end of year

-
550000,,000000
-
––––––––––––
550000,,000000
––––––––––––
––––––––––––

-
1100..5500
-
––––––––––––
1100..5500
––––––––––––
––––––––––––

200,000
-
(200,000)
––––––––––––
-
––––––––––––
––––––––––––

178
-
(178)
––––––––––––
-
––––––––––––
––––––––––––

The options outstanding at 31 December 2013 had a weighted average exercise price of 10.50p,
and a weighted average remaining contractual life of 6.97 years.

During the year ended 31 December 2013, 500,000 options were granted with a fair value of
€26,870. These fair values were calculated using the Black-Scholes valuation model.

Petrel
Resources
Plc
Annual
Report and
Accounts
2013

4455

301100 Petrel Accounts  23/06/2014  16:21  Page 46

Notes To The Financial Statements (continued)
For the Year Ended 31 December 2013

2211..

SSHHAARREE  BBAASSEEDD  PPAAYYMMEENNTT ((ccoonnttiinnuueedd))

The inputs into the Black-Scholes valuation model were as follows:

GGrraanntt  2211  DDeecceemmbbeerr  22001133
Weighted average share price at date of grant (in pence)
Weighted average exercise price (in pence)
Expected volatility
Expected life
Risk free rate
Expected dividends

10.50p
10.50p
41.5%
7 years
0.5%
none

Expected volatility was determined by management based on their cumulative experience of the
movement in share prices over the year.

The terms of the options granted do not contain any market conditions within the meaning of
IFRS 2.

The group capitalised expenses of €13,436 relating to equity-settled share-based payment
transactions during the year.

At 31 December 2013, there were 350,000 (2012: 4,420,000) options in existence which are not
accounted for under IFRS2 as the options were granted after 7 November 2002 and had vested by
1 January 2006 (date of transition to IFRS).

2222..

PPRROOFFIITT  AATTTTRRIIBBUUTTAABBLLEE  TTOO  PPEETTRREELL  RREESSOOUURRCCEESS  PPLLCC

In accordance with Section 148 (8) of the Companies Act, 1963 and Section 7 (1A) of the Companies
(Amendment) Act, 1986, the company is availing of the exemption from presenting its individual
profit and loss account to the Annual General Meeting and from filing it with the Registrar of
Companies. The total comprehensive loss for the year in the parent company was €745,235 (2012:
€577,145) which includes exchange loss on translation of €218,452 (2012: loss of €107,378).

2233..

NNOONN--CCAASSHH  TTRRAANNSSAACCTTIIOONNSS

On 13 August 2013 the company issued 18,947,368 new ordinary shares to Amira Petroleum N.V.
at a price of 20c per share as part consideration for the acquisition of a 20 per cent shareholding
in Amira Hydrocarbons Wasit B.V. Details of this acquisition are provided in Note 12.

2244..

CCAAPPIITTAALL  CCOOMMMMIITTMMEENNTTSS

There were no capital commitments at the balance sheet date.

Petrel
Resources
Plc
Annual
Report and
Accounts
2013

46

301100 Petrel Accounts  23/06/2014  16:21  Page 47

Notes To The Financial Statements (continued)
For the Year Ended 31 December 2013

2255..

PPOOSSTT  BBAALLAANNCCEE  SSHHEEEETT  EEVVEENNTTSS

On 4 March 2014 the company announced that it had finalised an 85% farm-out agreement
with Woodside, Australia on its offshore Ireland acreage. The agreement covers all of Petrel’s
participating interest in Licensing Option 11/6 (comprising offshore blocks 45/6, 45/11 and
45/16) and Licensing Option 11/4 (comprising offshore blocks 35/23, 35/24 and the western
half of 35/25). Woodside will be operator of the licensing options. Petrel had a carrying value of
€972,854 in relation to its Irish licenses at the balance sheet date.

On 25 March 2014 the Group noted press reports and speculation regarding the ratification by
the Ghanaian Parliament of a petroleum agreement in the Tano Basin block. The Group holds a
30 per cent interest in the Tano 2A Block. As a precautionary measure the Group applied for
injunctive relief to prevent the award of any part of the Tano 2A Block to a third party, while
they seek clarification that the ratification does not relate to an area covered by the Tano 2A
Block.

On 8 April 2014 the High Court of Ghana granted an interlocutory injunction and also an interim
order for the protection of the Group’s rights in the Tano 2A Block.

On 4 June 2014 the legal proceedings being pursured by the Group were temporarily adjourned
while dicussions take place with the Ghanaian authorities.

2266..

CCOONNTTIINNGGEENNTT  LLIIAABBIILLIITTIIEESS

There are no contingent liabilities (2012:€Nil) other than those disclosed in Note 12.

Petrel
Resources
Plc
Annual
Report and
Accounts
2013

47

301100 Petrel Accounts  23/06/2014  16:21  Page 48

Notice of Annual General Meeting

Notice is hereby given that an Annual General Meeting of Petrel Resources plc will be held on 31 July 2014
in the Westbury Hotel, Grafton Street, at 11 am for the following purposes:

OOrrddiinnaarryy  BBuussiinneessss
1.

To  receive  and  consider  the  Directors  Report,  Audited  Accounts  and  Auditors  Report  for  the  year
ended December 31, 2013.

2.

3.

4.

5.

To re-appoint director: David Horgan retires in accordance with Article 95 and seeks re-election.

To elect director: Arman Kayablian retires in accordance with Article 101 and seeks election.

To re-appoint Deloitte & Touche as auditors and to authorise the directors to fix their remuneration.

To transact any other ordinary business of an annual general meeting.

By order of the Board:

James Finn
Secretary

24 June 2014

Registered Office: 162 Clontarf Road, Dublin 3.

Note: A member of the company who is unable to attend and vote at the above Annual General Meeting
is entitled to appoint a proxy to attend, speak and vote in his stead. A proxy need not be a member
of the Company.

To be effective, the Form of Proxy duly signed, together with the power of attorney (if any) under
which it is signed, must be deposited at the Company’s Registrars, Computershare Investor Services
(Ireland) Ltd., Heron House, Corrig Road, Sandyford Industrial Estate, Dublin 18, not less than forty-
eight hours before the time appointed for the Meeting or any adjournment thereof at which the
person named in the Form of Proxy is to vote.

Petrel
Resources
Plc
Annual
Report and
Accounts
2013

48

301100 Petrel Cover  24/06/2014  12:56  Page 2

FFrroonntt  CCoovveerr
Licence Blocks awarded to Petrel Resources in the 2011 Licence Option Round.
Stratigraphic column identifying Petrel’s reservoir targets.

Directors and Other Information

CCUURRRREENNTT  DDIIRREECCTTOORRSS

SSEECCRREETTAARRYY

RREEGGIISSTTEERREEDD  OOFFFFIICCEE

AAUUDDIITTOORRSS

BBAANNKKEERRSS

SSOOLLIICCIITTOORRSS

NNOOMMIINNAATTEEDD  BBRROOKKEERR  &&  AADDVVIISSOORR

RREEGGIISSTTRRAATTIIOONN  NNUUMMBBEERR

AAUUTTHHOORRIISSEEDD  CCAAPPIITTAALL

J. Teeling (Chairman)
D. Horgan (Executive Director)
A. Kayablian (appointed 19 August 2013)

J. Finn

162 Clontarf Road
Dublin 3

Telephone: 
Fax:
E-Mail:
Website:

353-1-833 2833
353-1-833 3505
info@petrelresources.com
www.petrelresources.com

Deloitte & Touche
Chartered Accountants and Statutory Audit Firm
Deloitte & Touche House
Earlsfort Terrace
Dublin 2

Allied Irish Bank plc.
140 Lower Drumcondra Road
Dublin 9

Commerzbank AG
Gallusanlage
60329 Frankfurt

McEvoy Partners
27 Hatch Street Lower
Dublin 2

Northland Capital Partners Limited
131 Finsbury Pavement
London
EC2A 1NT

92622

200,000,000 €0.0125 Ordinary Shares

CCUURRRREENNTT  IISSSSUUEEDD  CCAAPPIITTAALL

99,681,992 Ordinary Shares

MMAARRKKEETT

NNUUMMBBEERR  OOFF  SSHHAARREEHHOOLLDDEERRSS

AIM

1,612

301100 Petrel Cover  24/06/2014  12:56  Page 1

Petrel Resources Plc

P
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Corporate Office:
162 Clontarf Road, Dublin 3, Ireland.
Tel: +353 (0)1 833 2833
Fax: + 353 (0)1 833 3505
Company Registration Number: 92622

www.petrelresources.com

Annual Report and Accounts
Year ended 31 December 2013