| Rocksource UK Limited |
| Balance Sheet |
| as at 31 December 2014 |
|
| Notes |
|
|
2014 |
|
|
2013 |
| £ |
£ |
| Current assets |
| Debtors |
5 |
|
400 |
|
|
400 |
| Cash at bank and in hand |
|
|
10,027 |
|
|
12,379 |
|
|
|
10,427 |
|
|
12,779 |
|
| Creditors: amounts falling due within one year |
6 |
|
(44,447) |
|
|
(23,450) |
|
| Net current liabilities |
|
|
|
(34,020) |
|
|
(10,671) |
|
| Total assets less current liabilities |
|
|
|
(34,020) |
|
|
(10,671) |
|
| Creditors: amounts falling due after more than one year |
7 |
|
|
(5,689,649) |
|
|
(6,023,686) |
|
|
|
| Net liabilities |
|
|
|
(5,723,669) |
|
|
(6,034,357) |
|
|
|
|
|
|
|
|
| Capital and reserves |
| Called up share capital |
8 |
|
|
99,999 |
|
|
99,999 |
| Profit and loss account |
9 |
|
|
(5,823,668) |
|
|
(6,134,356) |
|
| Shareholders' funds |
|
|
|
(5,723,669) |
|
|
(6,034,357) |
|
|
|
|
|
|
|
|
| The directors are satisfied that the company is entitled to exemption from the requirement to obtain an audit under section 477 of the Companies Act 2006. |
| The members have not required the company to obtain an audit in accordance with section 476 of the Act. |
| The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts. |
| The accounts have been prepared in accordance with the provisions in Part 15 of the Companies Act 2006 applicable to companies subject to the small companies regime. |
|
|
|
|
| Christopher T H Spencer |
| Director |
| Approved by the board on 25 September 2015 |
|
| Rocksource UK Limited |
| Notes to the Accounts |
| for the year ended 31 December 2014 |
|
| 1 |
Accounting policies |
|
|
Accounting convention |
|
These financial statements have been prepared in accordance with applicable UK Accounting Standards. |
|
|
In addition to the requirements of accounting standards, the accounting for exploration and production activities is governed by the Statement of Recommended Practice ('SORP') Accounting for Oil and Gas Exploration, Development, Production and Decommissioning Activities, issued by the UK Oil Industry Accounting Committee on 7 June 2001. |
|
|
Fundamental accounting concept |
|
The company is dependent upon continuing finance being made available by its parent company to enable it to continue operating and to meet its liabilities as they fall due. |
|
|
The parent company has agreed to provide the company with funds as required. The directors believe that it is therefore appropriate to prepare the financial statements on a going concern basis.
|
|
|
Fixed Assets |
|
Oil and natural gas exploration and development expenditure is accounted for using the successful efforts method of accounting.
|
|
|
Licences and property acquisition costs |
|
Exploration licence and property leasehold acquisition costs are initially capitalised within intangible fixed assets. Upon the determination of economically recoverable reserves ('proved reserves' or 'commercial reserves') the costs are aggregated with exploration expenditure and held on a field-by-field basis within intangible fixed assets. When development is sanctioned, the relevant expenditure is transferred to tangible production assets. |
|
|
Exploration expenditure |
|
Geological and geophysical exploration costs are charged against income as incurred. Costs directly associated with an exploration well are capitalised as an intangible asset until the drilling of the well is complete and the results have been evaluated. If hydrocarbons are not found, the exploration expenditure is written off as a dry hole. If hydrocarbons are found and, subject to further appraisal activity, are likely to be capable of commercial development, the costs continue to be carried as an asset. All such carried costs are subject to regular technical, commercial and management review to confirm the continued intent to develop or otherwise extract value from the discovery. When this is no longer the case, the costs are written off. When proved reserves of oil and natural gas are determined and development is sanctioned, the relevant expenditure is transferred to tangible production assets.
|
|
|
Deferred taxation |
|
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay more, or a right to pay less or to receive more, tax, with the following exception:
|
|
• Deferred tax assets are recognised only to the extent that the directors consider that it is more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.
Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date. |
|
Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date. |
|
|
Foreign currencies |
|
Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the balance sheet date. All differences are taken to the profit and loss account. |
|
| 2 |
Operating profit |
2014 |
|
2013 |
| £ |
£ |
|
This is stated after charging: |
|
|
Amortisation of intangible fixed assets |
9,825 |
|
19,809 |
|
Auditors' remuneration |
- |
|
10,000 |
|
Foreign exchange (gain)/loss |
(361,044) |
|
(323,205) |
|
|
|
|
|
|
|
|
|
|
| 3 |
Taxation |
2014 |
|
2013 |
| £ |
£ |
|
|
UK corporation tax |
37,108 |
|
- |
|
|
|
|
|
|
|
|
|
|
| 4 |
Intangible fixed assets |
£ |
|
|
|
Cost |
|
At 1 January 2014 |
5,730,435 |
|
Additions |
9,825 |
|
At 31 December 2014 |
5,740,260 |
|
|
|
|
|
|
|
|
|
|
Amortisation |
|
At 1 January 2014 |
5,730,435 |
|
Provided during the year |
9,825 |
|
At 31 December 2014 |
5,740,260 |
|
|
|
|
|
|
|
|
|
|
Net book value |
|
At 31 December 2014 |
- |
|
|
|
|
|
|
|
|
|
|
All intangible assets relate to exploration licences in the North Seas |
|
|
| 5 |
Debtors |
2014 |
|
2013 |
| £ |
£ |
|
|
Other debtors |
400 |
|
400 |
|
|
|
|
|
|
|
|
|
|
| 6 |
Creditors: amounts falling due within one year |
2014 |
|
2013 |
| £ |
£ |
|
|
Corporation tax |
37,108 |
|
- |
|
Other creditors |
7,339 |
|
23,450 |
|
|
|
|
|
|
44,447 |
|
23,450 |
|
|
|
|
|
|
|
|
|
|
| 7 |
Creditors: amounts falling due after one year |
2014 |
|
2013 |
| £ |
£ |
|
|
Amounts owed to group undertakings |
|
5,689,649 |
|
6,023,686 |
|
|
|
|
|
|
|
|
|
|
Rocksource ASA has an option to convert the intercompany debt to equity. If the option is |
|
exercised the company will make the conversion by issuing one new ordinary share. |
|
There is no expiry date on this option. |
|
| 8 |
Share capital |
Nominal |
|
2014 |
|
2014 |
|
2013 |
| value |
Number |
£ |
£ |
|
Allotted, called up and fully paid: |
|
Ordinary shares |
£1 each |
|
99,999 |
|
99,999 |
|
99,999 |
|
|
|
|
|
|
|
|
|
|
| 9 |
Profit and loss account |
2014 |
| £ |
|
|
At 1 January 2014 |
(6,134,356) |
|
Profit for the year |
310,688 |
|
|
At 31 December 2014 |
(5,823,668) |
|
|
|
|
|
|
|
|
| 10 |
Capital commitments |
2014 |
|
2013 |
| £ |
£ |
|
|
Net licence costs |
- |
|
13,000 |
|
|
|
|
|
|
|
|
|
|
| 11 |
Related party transactions |
|
|
Under Financial Reporting Statement No. 8 the company is exempt from the requirement to disclose related party transactions with 100% owned members of the Rocksource ASA group as it is a wholly owned subsidiary undertaking. There were no other related party transactions in the year. |
|
|
| 12 |
Ultimate parent company |
|
|
The company is a subsidiary undertaking of Rocksource ASA, registered in Norway and its results are consolidated within Rocksource ASA's financial statements. Copies of the Rocksource ASA financial statements can be obtained from Rocksource ASA, Thormohlensgate 53D, N5808 Bergen, Norway. |
