KUWAIT ENERGY PLC
NOTES TO THE CONDENSED SET OF FINANCIAL STATEMENTS
For the nine month period ended 30 September 2017
INCORPORATION AND ACTIVITIES
Kuwait Energy plc (“the Company”) is a company incorporated on 12 September 2011 in Jersey in accordance with the
Commercial Companies Law in the Bailiwick of Jersey.
The Company and its subsidiaries (together referred to as “the Group”) have been established with the objective of
exploration, production and commercialisation of crude oil and natural gas. The Company’s registered address is
Queensway House, Hilgrove Street, St Helier, Jersey, JE1 1ES.
These condensed set of financial statements do not include all of the information required for a full annual financial
report and are to be read in conjunction with the Group’s financial statements for the year ended 31 December 2016,
which were prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European
Union (EU). The financial information for the year ended 31 December 2016 in this report does not constitute statutory
accounts. This information has been derived from the statutory accounts for the year ended 31 December 2016, a copy
of which is available on the Company’s website and is filed with the Jersey Registrar of Companies. The auditor’s report
on these accounts was unqualified and did not draw attention to any matters by way of emphasis.
Basis of preparation
The annual financial statements of the Group are prepared in accordance with IFRS as adopted by the European Union.
The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance
with International Accounting Standard 34 ‘Interim Financial Reporting’, as adopted by the European Union (EU).
The accounting policies used in the preparation of this condensed set of financial statements are consistent with those
used in the preparation of the annual consolidated financial statement for the year ended 31 December 2016. No new
and revised standards became effective in the EU during the period.
As at 30 September 2017, the Group was funded principally by a combination of its cash balances, equity, borrowings,
convertible loans and cash generated from operating activities. The Group has significant levels of planned capital
expenditure during the next 12 months including field development expenditures in Iraq, although much of this is
discretionary. The Group has completed the farm-out of both of the Group’s oil and gas assets held for sale (see note
10), and has signed an agreement with one of the convertible loan lenders for mandatory conversion of its loan into
ordinary equity shares of the Company (see note 11). These actions have materially improved the Group’s liquidity
position and reduced the Group’s contractual payment commitments. The Group performs a cash flow scenario
analysis at each balance sheet date including modelling various downside scenarios and available mitigating factors.
From this analysis at 30 September 2017 the directors believe that whilst some uncertainties exist over future events,
the Group has various options available to mitigate such events should they occur and maintain liquidity.
Therefore, after making enquiries the Directors have a reasonable expectation that the Group will have adequate
resources to continue in operational existence for the foreseeable future, being at least the next 12 months from the
date of approval of this condensed set of financial statements. Accordingly, the Directors continue to adopt the going
concern basis of accounting in preparing this condensed set of financial statements.