2
Changes to Group’s financial statements
The Group has published on its website financial statements for the years ended 31 December 2011, 2012 and 2013
which differ from, and are therefore not comparable to, the corresponding financial information presented in this
Offering Memorandum. These differences are due to:
•
Discontinued Operations in Russia and Ukraine
. The financial information presented in this Offering Memorandum
for the years ended 31 December 2011, 2012 and 2013 includes the results of operations of the Group for a period in
which the Group received revenues and production, and/or incurred expenses and incurred capital expenditures in,
its Russian and Ukrainian operations. In April 2014 the Group completed the sale of its assets in Ukraine and the
Group is currently engaged in negotiations in respect of the sale of its assets in Russia and expects to complete the
sale during the third quarter of 2014. As a result, the Group has classified its operations in Ukraine and Russia as
discontinued operations in its financial statements included in this Offering Memorandum for the years ended 31
December 2011, 2012 and 2013 and for the three months ended 31 March 2013 and 2014. The financial statements
published on the Group’s website for the years ended 31 December 2011 and 2012 do not classify the results of the
Group’s operations in Ukraine and Russia as discontinued operations.
•
Adoption of IFRS 11
. As a result of adopting IFRS 11 as at 1 January 2014, the Group changed its accounting policy
for its interests in joint ventures. Entities over which the Group exercises joint control are now accounted for using
the equity method, whereas they were previously proportionately consolidated. The Group has applied IFRS 11
retrospectively, in accordance with the transitional provisions and therefore the Group’s consolidated financial
statements included in this Offering Memorandum for the years ended 31 December 2011, 2012 and 2013 have been
restated accordingly.
Summary of Group reserves, resources and production
Set out below is a table summarising, as at 31 May 2014, estimates of the Group’s net entitlement oil and gas reserves
and working interest contingent reserves. These estimates are derived from the “
Competent Person’s Report
.” For
explanations of the terms, see “
Presentation of financial and other information—Reserves and Resources Reporting—
Basis of Preparation
.”
