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KUWAIT ENERGY PLC
NOTES TO THE CONDENSED SET OF FINANCIAL STATEMENTS
For the three month period ended 31 March 2017
14
12.
CONTINGENT LIABILITIES AND CAPITAL COMMITMENTS
31 March
31 December
2017
2016
Unreviewed
Audited
US$ 000’s
US$ 000’s
a)
Contingent liabilities - letters of guarantee
4,000
4,000
b)
Capital commitments
38,687
43,106
c)
Agreement to purchase shares
6,200
6,176
Capital commitments includes committed seismic expenditures, exploration and development well drilling as specified
in the exploration and development licences.
13.
FAIR VALUE OF FINANCIAL INSTRUMENTS
As at 31 March 2017 and 31 December 2016 the convertible loans were carried at fair value and were classified as
level 3. There were no other financial instruments classified as level 1, level 2 or level 3.
The following table shows a reconciliation of movements in the fair value of convertible loans categorised within
Level 3 between the beginning and the end of the reporting period.
31 March
31 December
2017
2016
Unreviewed
Audited
US$ 000’s
US$ 000’s
At 1 January
136,273
119,400
Change in fair value
3,728
27,211
Payment
(2,100)
(10,338)
At end of the period
137,901
136,273
14.
SUBSEQUENT EVENTS
a)
In May 2017, the Group has completed the farm-out transaction to assign a 20% paying and 15% revenue interest in
the Iraq Siba area gas development and production service contract, which were classified as assets held for sale as
on 31 March 2017 (see note 10).
b)
In May 2017, Board of the Company has approved cancellation of 32.5 million own shares which were held as treasury
shares as on 31 March 2017. Following this cancellation, the Company has 326.7 million shares in issue.