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KUWAIT ENERGY PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the six months ended 30 June 2016
32
11.
LOSS PER SHARE
a)
Loss per share
The loss and weighted average number of shares used in the calculation of basic loss per share are as follows:
Six months ended 30 June
Year ended
31 December
2016
2015
2015
Audited Unaudited
Audited
Loss for the period attributable to owners of the Company (US$ in
thousand)
(11,211)
(9,863)
(62,220)
Weighted average number of shares, net of treasury shares,
(thousands)
326,594
326,137
326,060
Basic loss per share (cents) attributable to owners of the Company
(3.4)
(3.0)
(19.1)
b)
Diluted loss per share
There was no difference between basic and diluted loss per share for any of the periods shown.
The only potential dilutive instruments were the outstanding Employee Incentive Scheme (EIS) share awards, which have
no material dilution impact on earnings per share, together with shares to be issued on conversion of convertible loans
(note 22) which are not included in the calculation for either period as the number of shares that could be exercised is
dependent on certain future events.
12.
INTANGIBLE EXPLORATION AND EVALUATION (‘E&E’) ASSETS
E&E assets
Cost
US$ 000’s
As at 1 January 2015
46,488
Additions
10,742
Exploration expenditure written off
(14,218)
Transfer to Property, plant and equipment
(10,349)
As at 31 December 2015
32,663
Additions
2,163
Transfer to Property, plant and equipment
(2,533)
As at 30 June 2016
32,293
As at 30 June 2016, exploration costs of US$ 32.3 million (31 December 2015: US$ 32.7 million) were capitalised pending
further evaluation of whether or not the related oil and gas properties are commercially viable.
As at 30 June 2016, the Group held exploration costs of US$ 21.6 million (31 December 2015: US$ 20.9 million) related
to Block 49 in Yemen where in 2015 the political and security situation become unstable. The work of operations on site
has been put on hold and force majeure has been declared on Block 49 in 2015. There has been no incursion at the site
and control of assets has been maintained. Management have made a significant judgement to continue capitalising
the costs associated with Block 49. In making this judgement, management have considered the existence of significant
contingent resources certified by the Group’s third party reservoir engineer, Gaffney Cline & Associates, and believes
that the situation will be resolved so that the Group can continue its exploration and appraisal programme on the
resources discovered to date.
During the period ended 30 June 2016, US$ 2.5 million exploration cost associated with proven commercial reserves of
Abu Sennan in Egypt (31 December 2015: US$ 10.3 million) were transferred to property, plant and equipment.
During 2015 unsuccessful exploration expenditure written off amounted to US$ 14.2 million. This includes write-off of
unsuccessful exploration expenditure of US$ 2.6 million related to Area A in Egypt and US$ 11.6 million relating to Block
82 in Yemen, where the licence has been relinquished due to unsuccessful exploration activities.