Gower Oil & Gas Limited - Limited company accounts 11.7

REGISTERED NUMBER: 05701930 (England and Wales)

Report of the Directors and

Unaudited Financial Statements For The Year Ended 31 December 2014

for

Gower Oil & Gas Limited

Page

Company Information

1

Report of the Directors

2

Profit and Loss Account

3

Balance Sheet

4

Notes to the Financial Statements

6

DIRECTORS:

M N Patel

G R Andrews

SECRETARY:

Gower Secretaries Limited

REGISTERED OFFICE:

80 Woodrush Way

Chadwell Heath

Romford

Essex

RM6 5BL

REGISTERED NUMBER:

05701930 (England and Wales)

ACCOUNTANTS:

Gower Accountancy

Chartered Certified Accountants

Second Floor

4-5 Gough Square

London

EC4A 3DE

The directors present their report with the financial statements of the company for the year ended 31 December 2014.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2014 to the date of this

report.

M N Patel

G R Andrews

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating

to small companies.

ON BEHALF OF THE BOARD:

M N Patel - Director

20 July 2015

TURNOVER

11,744

14,267

Cost of sales

(6,002

)

(7,925

)

GROSS PROFIT

5,742

6,342

Administrative expenses

(3,956

)

(9,507

)

1,786

(3,165

)

Other operating income

349

-

OPERATING PROFIT/(LOSS)

2

2,135

(3,165

)

Interest payable and similar charges

(2,819

)

(2,819

)

LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION

(684

)

(5,984

)

Tax on loss on ordinary activities

3

-

-

LOSS FOR THE FINANCIAL YEAR

(684

)

(5,984

)

FIXED ASSETS

Intangible assets

4

141,314

141,314

Tangible assets

5

577

445

141,891

141,759

CURRENT ASSETS

Debtors

6

4,114

4,127

Cash at bank

1,552

3,557

5,666

7,684

CREDITORS

Amounts falling due within one year

7

(764

)

(47,330

)

NET CURRENT ASSETS/(LIABILITIES)

4,902

(39,646

)

TOTAL ASSETS LESS CURRENT LIABILITIES

146,793

102,113

CREDITORS

Amounts falling due after more than one year

8

(45,364

)

-

NET ASSETS

101,429

102,113

CAPITAL AND RESERVES

Called up share capital

9

4,601

4,601

Share premium

10

135,775

135,775

Profit and loss account

10

(38,947

)

(38,263

)

SHAREHOLDERS' FUNDS

101,429

102,113

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2014.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2014 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies and with the Financial Reporting Standard for Smaller Entities (effective April 2008).

The financial statements were approved by the Board of Directors on 20 July 2015 and were signed on its behalf by:

M N Patel - Director

1.	ACCOUNTING POLICIES

Accounting convention

The financial statements have been prepared under the historical cost convention and in accordance with the

Financial Reporting Standard for Smaller Entities (effective January 2007) and the Statement of Recommended

Practice (SORP) "Accounting for Oil and Gas Exploration, Development, Production and Decommissioning

Activities" issued by the Oil Industry Accounting Committee. The financial statements, including disclosures

have been prepared in accordance with the provisions of the SORP currently in effect.

Oil and gas projects

The Group has adopted the full cost accounting policy for expenditure on oil and gas projects. Under this method

all expenditure in connection with the acquisition, exploration, appraisal and development of oil and gas assets,

including direct overheads are capitalised and accumulated in full cost pools on a geographic and cost centre

basis.

Non-production oil and gas projects

Expenditure in this category of oil and gas projects has been included on the balance sheet under intangible

assets. Expenditure incurred on non-production assets is transferred to tangible assets once a decision has been

made as to the commercial development of a field or property. Costs are accumulated in cost pools and are then

written off either on withdrawal from a project or to the extent that they are not supported by underlying oil and

gas reserves.

Impairment policy

An impairment test is carried out by the directors if events or changes in circumstances indicate that the net book

amount of expenditure within each cost pool, less any provisions for decommissioning costs and deferred

production or revenue-related taxes, may not be recoverable from the anticipated future net revenue from the oil

and gas reserves attributable to the Group's interest in that pool. To the extent that the carrying amount exceeds

the recoverable amount, that is the higher of net realisable value and value in use, the fixed asset will be written

down to its recoverable amount. The value in use is determined from estimated discounted future net cash flows.

Such tests are carried out on a pool-by-pool basis.

Decommissioning costs

Provisions for decommissioning costs are recognised in full at the commencement of oil and gas production. The

amount recognised is the present value of the estimated future expenditure. A corresponding tangible fixed asset

is also created at an amount equal to the provision. This is subsequently amortised as part of the capital costs of

the production facilities. Any change in the present value of the estimated expenditure is reflected as an

adjustment to the fixed asset. The company's current exposure to decommissioning costs are minimal and

therefore no current provision for decommissioning costs are made to the tangible fixed assets

Turnover

Turnover represents net revenue generated from company's participating interests in oil and gas production in the

USA, excluding value added tax.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant and machinery etc

-

20% on cost

Deferred tax

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by

the balance sheet date except that the recognition of deferred tax assets is limited to the extent that the company

anticipates making sufficient taxable profits in the future to absorb the reversal of the underlying timing

differences. Deferred tax balances are not discounted.

Share based payments for non employee services

Where share based payments are made to non employees in respect of services, a charge is made to the Profit

and Loss Account, or share premium account, in respect of the fair value of the services received, in accordance

with FRS 4 'Capital instruments'.

Operating leases

Amounts payable under operating leases are charged on a straight line basis over the lease term.

Foreign currencies

Transactions in foreign currencies are translated at the exchange rate ruling at the date of transaction. Monetary

assets and liabilities in foreign currencies are translated at the rates of exchange ruling at the Balance Sheet date.

Any differences are taken to the Profit and Loss Account.

Financial instruments

" short term debtors and creditors are not treated for disclosure purposes as financial assets or financial liabilities

except for the currency disclosures; and

" the Company does not hold or issue derivative financial instruments for trading purposes.

2.	OPERATING PROFIT/(LOSS)

The operating profit (2013 - operating loss) is stated after charging/(crediting):

2014

2013

£

£

Depreciation - owned assets

274

961

Foreign exchange differences

(349

)

65

Directors' remuneration and other benefits etc

-

4,000

3.

TAXATION

Analysis of the tax charge

No liability to UK corporation tax arose on ordinary activities for the year ended 31 December 2014 nor for the

year ended 31 December 2013.

4.	INTANGIBLE FIXED ASSETS

Other

intangible

assets

£

COST

At 1 January 2014

and 31 December 2014

141,314

NET BOOK VALUE

At 31 December 2014

141,314

At 31 December 2013

141,314

5.	TANGIBLE FIXED ASSETS

Plant and

machinery

etc

£

COST

At 1 January 2014

14,642

Exchange differences

295

At 31 December 2014

14,937

DEPRECIATION

At 1 January 2014

14,197

Charge for year

274

Exchange differences

(111

)

At 31 December 2014

14,360

NET BOOK VALUE

At 31 December 2014

577

At 31 December 2013

445

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2014

2013

£

£

Other debtors

4,114

4,127

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2014

2013

£

£

Trade creditors

1

-

Other creditors

763

47,330

764

47,330

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2014

2013

£

£

Other creditors

45,364

-

9.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2014

2013

value:

£

£

4,601,000

Ordinary

0.001

4,601

4,601

10.

RESERVES

Profit

and loss

Share

account

premium

Totals

£

£

£

At 1 January 2014

(38,263

)

135,775

97,512

Deficit for the year

(684

)

(684

)

At 31 December 2014

(38,947

)

135,775

96,828

11.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 31 December 2014 and

31 December 2013:

2014

2013

£

£

M N Patel

Balance outstanding at start of year

-

-

Amounts repaid

(63

)

-

Balance outstanding at end of year

(63

)

-