KUWAIT ENERGY plc GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2011
F-146
42.
PROFIT FOR THE YEAR
Profit for the year is stated after charging:
2011
2010
USD 000’s
USD 000’s
Staff costs
8,190
9,530
Depreciation, depletion and amortisation
49,452
60,417
Foreign exchange (gain)/ losses
(654)
463
Impairment losses recognised on trade receivables
-
1,329
Cost/(recovery) of inventories recognised as expense/(gain)
1,148
(1,128)
43.
INTANGIBLE EXPLORATION AND EVALUATION ASSETS
Exploration
and
evaluation assets
USD 000’s
Cost
As at 1 January 2010
230,554
Additions
41,614
Farm out of working interests (See note below)
(25,830)
Transfer to other receivables (See note 30 (a))
(2,374)
As at 31 December 2010
243,964
Additions
36,273
Transfer to Property, plant and equipment
(131,036)
As at 31 December 2011
149,201
As at 31 December 2011, exploration cost of USD 149,201 thousand (2010: USD 243,964 thousand) were not
amortised, pending further evaluation of whether or not the related oil and gas properties are commercially
viable. The transfer during the year to Property plant and equipment reflects assets for which commercial
reserves have been discovered during the year.
The additions to intangible exploration and evaluation assets include USD 143 thousand (2010: USD 272
thousand) of finance costs on qualifying assets capitalised during the year.
During the previous year, the Group farmed out of certain of its working interests for total proceeds of USD
28,159 thousand.
a.
The Group has farmed out 25 % of the working interest in JAA 429 for a consideration of USD 3,829
thousand. The terms of the transaction resulted in farm out of exploration and evaluation assets of USD
1,500 thousand, property, plant and equipment of USD 1,569 thousand (See note 15) and other working
capital items of USD 579 thousand and gain on farm out of USD 181 thousand.
b.
The Group has farmed out 22 % of the working interest in Abu Sennan for a consideration of USD
20,100 thousand which has been netted off against exploration and evaluation assets. The terms of the
transaction resulted in farm out of intangible exploration and evaluation assets of USD 9,305 thousand.
c.
The Group has farmed out 15 % of the working interest in Mesaha for a consideration of USD 4,230
thousand which has been netted off against exploration and evaluation assets. The terms of the
transaction resulted in farm out of intangible exploration and evaluation assets of USD 721 thousand.
The net cash inflow arising from the above in 2010 was USD 8,683 thousand , with consideration of USD 19, 464
thousand, received in 2011.
