Monday 11 June 2007
Granby Oil and Gas plc
("Granby" or "the Company" or "the Group")
Preliminary results for the year to 31 March 2007
Granby, the oil and gas exploration and production company with interests in the UK North Sea and the
Philippines, announces its Preliminary results for the year to 31 March 2007.
Highlights
During the year, Granby has:
* booked its first reserves of 1.83 million barrels of oil equivalent, following receipt of
development approval for the Galoc oil field in the Philippines
* added contingent resources of 2.7 million barrels of oil equivalent
* significantly improved its North Sea portfolio by adding 15 new North Sea blocks in the 24th
Licensing Round
* increased UKCS unrisked prospective resources by 37 million barrels (9%) to 460 million barrels of
oil equivalent at 31 March 2007
* participated in two North Sea wells. Both were unsuccessful; the total cost to Granby was only
�0.1 million
* farmed in (jointly with Gas Plus) to the Burton Agnes-1 Prospect in Onshore Licence PEDL071,
operated by Egdon Resources
* earned a 54% interest in the Tristan North West gas development in block 49/29b in the UK Southern
North Sea
* acquired a 9% interest in the Monkwell gas discovery in block 42/29a in the UK Southern North Sea
* raised �9.0 million (before expenses of �0.4 million) in an institutional placing
Since 31 March 2007, Granby has:
* achieved initial drawdown of the �29.7 million loan facility for the Tristan North West
development
* achieved initial drawdown of the $65.1 million loan facility for the Galoc development
* commenced acquisition of three seismic surveys in Granby's first operated North Sea seismic
programme
* farmed out a 50% interest in UKCS blocks 14/9a and 14/14b
Financial highlights:
* Loss after tax �1.8 million (2006: loss �2.9 million)
* Net cash at 31 March 2007 �7.3 million (2006: �7.3 million)
Outlook:
* Galoc and Tristan North West developments due on stream early 2008
* Plans being prepared for a new well on the Monkwell field - which could potentially become
the Company's third development
* Burton Agnes-1 exploration well to be drilled this Summer
* A further six exploration wells aimed to be drilled in the next two years
* Development operator status applied for - expected to create further opportunities for
Granby
Granby now has interests in 32 blocks and part blocks held in 18 licences in the North Sea, one onshore
block in the UK, a 54% interest in the Tristan North West gas development, a 9% interest in the Monkwell
gas discovery, and a 9.14% indirect interest in Service Contract 14C offshore Philippines, which contains
the Galoc oil field.
In addition to the Burton Agnes-1 well expected to be drilled during summer 2007, Granby intends to
continue its active exploration programme with the aim of drilling a further six exploration prospects
identified on its current acreage.
David Grassick, Managing Director of Granby Oil and Gas, said:
"This year has seen Granby develop from an exploration promote company to exploration operator, with an
application to become a production operator. Granby has two developments underway, both scheduled to be on
stream before the end of the year to 31 March 2008. We have developed some strong business relationships
which enhance the potential and capabilities of the Company.
Granby is now poised to move forwards with the aim of an extensive exploration programme over the next two
years and with an increased emphasis on development and production."
Enquiries:
Granby Oil and Gas plc 020 7653 3660
David Grassick, Managing Director 07785 921080
Nigel Burton, Finance Director 077 8523 4447
College Hill 020 7457 2020
Nick Elwes / Paddy Blewer
KBC Peel Hunt 020 7418 8900
Jonathan Marren / Matt Goode
Chairman's statement
Granby made significant progress, despite two unsuccessful exploration wells, in the year to 31 March 2007,
with reserves booked for the Galoc project, the Tristan North West development project secured, and an
increase in exploration licences.
Financial results
The results for the financial year to 31 March 2007 are shown in the Group Income Statement. Granby made
a loss after tax of �1.8 million (2006: loss �2.9 million) after the impairment of exploration costs of
�0.1 million (2006: �1.4 million). This equates to a loss per share of 5.59p (2006: loss 13.14p). The
Board does not recommend a dividend.
In preparation for expenditure on the Galoc and Tristan North West development projects and to facilitate
contracting of drilling rigs, Granby raised �8.6 million after expenses from an institutional placing in
August 2006.
At 31 March 2007 net cash was �7.3 million (2006: �7.3 million). There have been significant movements
since the year end, with a cash inflow of �2.3 million following partial drawdown of the loan facility for
the Tristan North West project, and a cash outflow of �1.9 million to Banca Intesa as security for the
recourse element of the Galoc project financing. A further �1.2 million will be placed in escrow as sponsor
completion support for the Galoc project prior to commencement of drilling. After excluding the �3.1
million committed to the Galoc project, net cash was �6.4 million on 31 May 2007.
Operational Performance
During the year to 31 March, Granby gained 15 new blocks and part blocks in seven new exploration licences
in the North Sea 24th licensing Round. Granby was carried in two North Sea exploration wells; neither
found commercial hydrocarbons, but, subject to DTI approval and completion, we successfully swapped an
interest in one of these wells for a 9% interest in the Monkwell gas discovery, which could become Granby's
third development. The Company also acquired an interest, recently increased from 35% to 54%, in the
Tristan North West gas field, where Granby will become operator of the development with production targeted
for the end of Calendar 2007. Production is also expected from the Galoc field offshore Philippines in
early Calendar 2008.
Resources & Reserves
Granby booked its first reserves during the year for the Galoc field, with independently certified proven
and probable reserves of 1.83 million barrels of oil equivalent ('mmboe'), has added contingent resources
of 2.7 mmboe from the Tristan North West field and Monkwell, and increased net prospective resources to 460
mmboe unrisked (31 March 2006: 423 mmboe, up 9%), although risked net resources reduced by 9% to 76 mmboe
(31 March 2006: 82 mmboe) risked.
People
After a year of significant development for Granby, on behalf of the Board, I thank my fellow Directors and
all the management and staff at Granby who have contributed so much during the year.
Strategy
Granby's strategy is to build a successful oil and gas exploration and production business with a
significant portfolio of assets in the North Sea and selected areas overseas through the discovery and
development of oil and gas reserves.
Outlook
The Board expects that the next 12 months will be very active for Granby. The Company expects to
participate in the fully funded Burton Agnes-1 exploration well in Summer 2007 (for which Granby's costs
are fully carried) and currently intends to continue its active exploration programme with the aim of
drilling a further six exploration prospects identified on its current acreage over the next two years.
Furthermore, Granby will participate in drilling three production wells, one on Tristan North West which
will be the Company's first operated well, and two on Galoc before the end of 2007. Both Galoc and Tristan
North West are planned to be on stream soon after the wells are completed.
High oil prices have had a major impact on industry costs. Despite this, Granby is maintaining a high level
of business activity to provide investors with exposure to good quality exploration opportunities and to
create valuable oil and gas developments to sustain and grow the business. We will continue to evaluate
the potential of the Company's licences and will actively manage the portfolio and review opportunities to
add value. Where possible, we will continue to enhance the business with innovative developments and
financing.
The Board looks forward to the coming year with considerable confidence, a year during which Granby expects
to achieve positive cash flow from its first two developments.
Ric Piper, Chairman
REVIEW OF OPERATIONS
A BUSINESS MOVING FORWARDS
In the last year Granby has continued to expand its exploration portfolio, has drilled two exploration
prospects and has increased its focus and effort on developments, targeting initial production and revenue
generation by early 2008.
In addition to the Galoc oil development offshore the Philippines, where good progress is being made, we
have added a second development, Tristan North West, which is due on stream by early 2008. This has been
achieved through the support and project financing provided by the Mitsubishi Corporation, with the
participation of its wholly owned subsidiary MCX Exploration (UK) Limited. Furthermore, through a swap for
an option (which has now expired) to participate in the Watling exploration well, we have acquired, for no
cash outlay and, subject to DTI approval and completion, a 9% interest in the Monkwell gas discovery, which
could become the third development in Granby's portfolio.
Both the Galoc and Tristan North West developments are now financed and scheduled to reach production
within the current financial year. As a consequence of further technical work on Galoc and independent
certification, we have increased our booked reserves by 103% to 1.83 million stock tank barrels of oil. We
have added contingent resources for Tristan North West of 2.4 mmboe and expect to book these as reserves in
the near future. We have also added contingent resources of 0.3 mmboe for Monkwell. Net prospective
resources stood at 460 mmboe at 31 March 2007.
Granby is now a licensed exploration operator, and will be acquiring three new seismic surveys during
Summer 2007. We have recently applied to be the production operator of the Tristan North West field and
plan to drill our first development well in the field before the end of 2007. Operator status will enable
the Company to have more control of its own destiny, enhances its reputation and credibility and will help
to create additional business opportunities.
Exploration
Moving from Promote
During the year to 31 March 2007, Granby increased its UK exploration and development portfolio to 18
licences. In a very successful 24th Licensing Round, we gained 15 new blocks and part blocks in seven
licences. Granby was offered the highest number of operated blocks and part blocks in the Round.
Significantly, of our 18 UK licences, nine are now Traditional licences which have a four year initial term
as opposed to the commitment to drill a well required to continue Promote licences beyond two years.
Importantly, this has been achieved with only very modest work commitments.
Granby participated in two North Sea exploration wells, following successful farm-outs. The first well was
drilled by Centrica on the Watling prospect in block 42/28c. It encountered good gas shows, but was
interpreted as water bearing. Granby's contribution to costs was only �0.1 million, with the remainder
carried by other participants. The second well was drilled on block 15/13b and operated by Nexen, but did
not find hydrocarbons, although the geological prognosis was proved accurate. Granby did not contribute to
the cost of the well.
Looking forward, Granby will participate in the Burton Agnes-1 well (previously named Fraisthorpe) in
Yorkshire, which is now expected to commence drilling in Summer 2007 and will be operated by Egdon
Resources. The target is a Rotliegendes gas prospect which, if successful, is estimated to contain 43
billion cubic feet (bcf) of gas in the P50 case. Granby has a 10% interest in the well, for which its
costs are fully carried.
Granby has observed that it has become more difficult to farm-out exploration licences, largely because of
high drilling costs. Granby has responded by increasing the emphasis on prospect risk reduction, including
the acquisition of high resolution seismic on some blocks, to improve the attractiveness of our prospects
to farminees, and by diversifying the acreage between areas which utilise different rig markets.
We continue to develop our prospects for farming-out, seeking to benefit from the greater emphasis on risk
reduction prior to farm-out and drilling. Granby's enlarged portfolio now provides a strong cross section
of drillable prospects, including some opportunities for low cost wells.
Development
The past year has seen Granby make excellent progress in this area, including successfully acquiring its
second development project, Tristan North West, where we now have a 54% interest. The development is
financed by Mitsubishi Corporation, and we welcome their wholly owned subsidiary, MCX Exploration (UK)
Limited, which joins us as a co-venturer in Mitsubishi's first North Sea project.
As described above, we have also acquired a 9% interest in the Monkwell gas discovery, where three
exploration and appraisal wells have produced gas on test.
Both the Tristan North West and Galoc developments have also been successfully financed, and initial
drawdown of the respective loan facilities has been achieved since the year end.
Galoc
We are pleased to report that good progress continues to be made on the Galoc oil development offshore
Philippines. As previously announced in March 2007, the Galoc Production Company ('GPC') successfully
completed the project financing for its share of the US$100 million development project. Granby has a
9.14% indirect interest in the Galoc field through its 15.69% shareholding in GPC.
The first phase of development is now well underway, with all regulatory approvals obtained and the major
contracts awarded. The two subsea horizontal production wells will be drilled by the drill ship Energy
Searcher, the arrival of which controls the critical path to first oil, now expected in the first quarter
of 2008. Once completed, the wells will be tied back to the Floating Production Storage and Offtake Vessel
('FPSO'), Rubicon Intrepid which is being converted in Johor, Malaysia prior to installation of the
helideck, process equipment and other associated items in Singapore. A truly international project, the
subsea tree refurbishment & controls fabrication is underway in Perth, Western Australia, and the process
equipment prefabrication has commenced in Batam, Indonesia.
Gaffney, Cline & Associates have independently certified the proved and probable Galoc oil reserves
associated with the first phase of the development as 23.6 million stock tank barrels. This results in an
increase of 103% in the booked proven and probable reserves to 1.83 million stock tank barrels of oil net
to Granby.
Tristan North West
Following completion by Granby and Mosaic Natural Resources of the Sales and Purchase Agreement with
ExxonMobil in November 2006, Granby became the exploration operator for the Tristan North West area of
block 49/29a. Since then, we have increased our participating interest in the field from 35% to 54% as a
result of providing short term financing for Mosaic Natural Resources. Granby introduced Mitsubishi
Corporation to the group as financier and its wholly owned subsidiary MCX Exploration (UK) Ltd participates
as a co-venturer in the �44 million development.
Granby has published the Environmental Statement, submitted the field development plan to the DTI for
approval and has applied to be the production operator. On approval, this will be a significant step for
Granby, becoming a production operator for the first time. The development will consist of a single
subsea well tied back to the Davy Field Platform via a 15km long 6" diameter flowline and the existing
subsea manifold at Davy.
Contingent resources net to Granby are 14.0 bcf (2.4 mmboe) and we expect these to be re-classified as
reserves shortly.
The project has a target of first gas by early Calendar 2008.
Monkwell
In January 2007 Granby acquired, subject to DTI approval and completion, a 9% interest in the Monkwell gas
discovery in the Southern North Sea from Dana Petroleum. Granby's interest was acquired through a swap of
an option, which has since expired without being exercised by Dana Petroleum, through which Dana Petroleum
would have acquired an interest in Granby's Watling prospect. Three wells drilled in the Monkwell field
have produced gas on test. Plans are being prepared for a new well to be drilled on the field within the
next 12 months, with Monkwell possibly becoming Granby's third development.
Reserves and Prospective Resources
Granby booked its first reserves during the year for the Galoc oil field. As noted above, there was a 103%
increase in proven and probable reserves to 1.83 million stock tank barrels of oil as a consequence of
additional technical studies. These reserves have been independently certified by Gaffney Cline &
Associates.
We have also recorded contingent (proven and probable) resources of 14.0 bcf of gas (2.4 mmboe) for the
Tristan North West field and 1.8 bcf of gas (0.3 mmboe) for Monkwell. We anticipate booking reserves for
Tristan North West in the near future.
Prospective resources in Granby's enlarged North Sea exploration portfolio lie in some 27 prospects, which
have been independently evaluated by TRACS International, and are summarised in the table below.
Classification Unrisked Net Volume Risked Net Volume
Millions of Low Estimate Best High Low Estimate Best High
Barrels of Oil Estimate Estimate Estimate Estimate
Equivalent
(mmboe)
Prospective 272 423 610 53 82 117
Resources at 31
March 2006
Prospective 263 460 778 45 76 124
Resources at 31
March 2007
Source: TRACS International
The resource and reserves information in this announcement have been prepared in accordance with the
guidance in AIM notice 16 (AIM rules - guidance for Mining and Oil & Gas Companies) issued in March 2006.
This resource update is prepared in accordance with the definitions used by the Society of Petroleum
Engineers (SPE). The Directors can confirm that these figures have been reviewed by Richard Moreton,
Executive Director, who has over 23 years experience as a geophysicist within the oil industry.
Conclusion
This year has seen Granby develop from an exploration promote company to an exploration operator, with an
application made to become a production operator. We have two developments underway and scheduled to be on
stream before the end of the year to 31 March 2008. We have developed some strong business relationships
which enhance the potential and capabilities of the Company.
Granby is now poised to move forwards with an extensive exploration programme planned for the next two
years and with an increased emphasis on development and production.
David Grassick
Managing Director
Granby Oil and Gas plc
Group Income Statement
For the year ended 31 March 2007 2006
Unaudited Notes �'000 �'000
Revenue 157 126
Impairment of intangible assets (131) (1,445)
Other administrative expenses (2,115) (1,894)
Total administrative expenses (2,246) (3,339)
Operating loss (2,089) (3,213)
Finance income 3 466 304
Finance costs 3 (16) -
Profit on sale of listed investments 104 -
Loss before tax (1,535) (2,909)
Taxation (250) -
Loss for the year (1,785) (2,909)
Loss per share
Basic and diluted 4 (5.59)p (13.14)p
All operations were continuing throughout both periods
Group Balance Sheet
As at 31 March Notes 2007 2006
Unaudited
�'000 �'000
ASSETS
Non-current assets
Intangible assets 5 4,043 151
Property, plant and equipment 34 66
Financial assets 6 1,376 369
5,453 586
Current assets
Trade and other receivables 2,127 148
Cash and cash equivalents 7 8,512 7,254
10,639 7,402
LIABILITIES
Current liabilities
Financial liabilities - borrowings 8 (1,246) -
Trade and other payables (278) (386)
Current tax liabilities (250) -
Net current assets/(liabilities) 8,865 7,016
Net assets 14,318 7,602
SHAREHOLDERS' EQUITY
Share capital 182 128
Share premium 18,938 10,363
Other reserves (59) 91
Retained earnings (4,743) (2,980)
Total shareholders' equity 14,318 7,602
Group Cash Flow Statement
For the period ended 31 March 2007 2006
Unaudited
�'000 �'000
Loss for the year (1,785) (2,909)
Adjustments for:
Share-based payments to employees 22 -
Finance costs (466) (304)
Finance income (16) -
Taxation 250 -
Depreciation of property, plant and equipment 33 19
Amortisation of intangible assets 19 11
Impairment of intangible assets 131 1,445
Realisation of revaluation reserve (104) -
Operating cash flows before movements in working capital (1,884) (1,738)
Increase in trade and other operating receivables (1,979) (75)
Increase/(decrease)in trade and other operating payables (108) (212)
Net cash flows used in operating activities (3,971) (2,025)
Loan to Galoc Production Company (1,352) (24)
Proceeds on sale of listed investments 299 -
Purchases of property, plant and equipment (1) (78)
Purchase of intangible assets - (58)
Exploration expenditure (4,042) (1,353)
Interest received 450 304
Net cash flows used in investing activities (4,646) (1,209)
Short term borrowings 1,246 -
Issue of ordinary shares 9,000 11,500
Costs of share issues (371) (1,069)
Net cash flows provided by financing activities 9,875 10,431
Net increase in cash and cash equivalents 1,258 7,197
Cash and cash equivalents at 1 April 7,254 57
Cash and cash equivalents at 31 March 8,512 7,254
Group Statement of Changes in
Equity
Unaudited Share Share Retained Other Total
capital premium earnings reserves equity
�'000 �'000 �'000 �'000 �'000
At 1 April 2005 60 - (71) 493 482
Loss for the year - - (2,909) - (2,909)
Issue of share capital 68 11,432 - - 11,500
Cost of share issue - (1,069) - - (1,069)
Revaluation of investments - - - (402) (402)
Balance at 31 March 2006 128 10,363 (2,980) 91 7,602
At 1 April 2006 128 10,363 (2,980) 91 7,602
Loss for the year - - (1,785) - (1,785)
Issue of share capital 54 8,946 - - 9,000
Cost of share issue - (371) - - (371)
Release of revaluation - - - (150) (150)
reserve
Share-based payments - - 22 - 22
Balance at 31 March 2007 182 18,938 (4,743) (59) 14,318
Granby Oil and Gas plc
Notes to the preliminary financial information for the year ended 31 March 2007
1 Basis of preparation
The Group financial information contained in this document contains preliminary financial information for
the year ended 31 March 2007 together with comparatives. It has been prepared on the basis of the
policies that will be applied in the consolidated statutory accounts for the year ended 31 March 2007.
These policies remain unchanged from those applied in the consolidated statutory accounts for the year
ended 31 March 2006.
The financial information in this statement, which was approved by the Board on 8 June 2007, is not audited
and does not constitute statutory accounts for the years ended 31 March 2007 or 31 March 2006 within the
meaning of Section 240 of the Companies Act 1985 (as amended).
Financial statements for Granby Oil & Gas plc for the year ended 31 March 2006 presented under IFRS as
adopted by the European Union have been delivered to the Registrar of Companies. The auditors reported on
those accounts: their report was unqualified and did not contain a statement under either Section 237 (2)
or Section 237 (3) of the Companies Act 1985. As at the date of this announcement the auditors have not
reported on the Group's financial statements for the year ended 31 March 2007, nor have such financial
statements been delivered to the Registrar of Companies.
The financial statements for the year ended 31 March 2007 will be distributed to shareholders prior to, and
filed with the Registrar of Companies following, the Annual General Meeting.
2 Segmental Reporting
Geographical segments
The Group currently operates in two geographical markets: UK and The Rest of The World. This is the basis
on which the Group records its primary segment information. Unallocated operating expenses, assets and
liabilities relate to general management, financing and administration of the Group.
UK Rest of the Unallocated Consolidated
World
Year ended 31 March 2007 �'000 �'000 �'000 �'000
Segment revenue 157 - - 157
Segment result (402) (393) (1,190) (1,985)
Profit on sale of listed investment - - 104 104
Net interest income - - 450 450
Loss before tax attributable to equity (402) (393) (740) (1,535)
shareholders
Taxation - - (250) (250)
Loss after tax attributable to equity (402) (393) (990) (1,785)
shareholders
Segment assets 4,015 1,376 10,701 16,092
Segment liabilities (905) - (869) (1,774)
Capital additions 4,042 - 1 4,043
Depreciation and amortisation - - (52) (52)
Impairment of intangible assets (131) - - (131)
UK Rest of the Unallocated Consolidated
World
Year ended 31 March 2006 �'000 �'000 �'000 �'000
Segment revenue 126 - - 126
Segment result (1,868) (135) (1,210) (3,213)
Finance income - - 304 304
Loss before and after tax attributable (1,868) (135) (906) (2,909)
to equity shareholders
Segment assets 208 369 7,411 7,988
Segment liabilities (170) - (216) (386)
Capital additions 1,523 - 136 1,659
Depreciation and amortisation - - (30) (30)
Impairment of intangible assets (1,445) - - (1,445)
The segment assets attributable to the UK segment consist mainly of capital additions related to the
Tristan North West project as well as the costs of exploration pending determination, whilst those
attributable to the Rest of the World segment consist of the shares held in Galoc Production Company. The
Unallocated segment assets consist mainly of cash and cash equivalents.
Business segments
The operations of the Group comprise Oil and Gas Exploration, and Oil and Gas Development and Production.
Geographically these business segments are split such that the UK operations include both Oil and Gas
Exploration and Oil and Gas Development and Production in the year to 31 March 2007 (2006: only Oil and Gas
Exploration), and the operations of the Rest of the World comprise Oil and Gas Development and Production.
Explorati Development Unallocated Consolidated
on and
Production
Year ended 31 March 2007 �'000 �'000 �'000 �'000
Segment revenue 157 - - 157
Segment result (402) (393) (1,294) (2,089)
Profit on sale of listed investment 104 104
Net finance income - - 450 450
Loss before tax attributable to equity (402) (393) (740) (1,535)
shareholders
Taxation - - (250) (250)
Loss after tax attributable to equity (402) (393) (990) (1,785)
shareholders
Segment assets 404 4,987 10,701 16,092
Segment liabilities (100) (805) (869) (1,774)
Capital additions 431 3611 1 4,043
Depreciation and amortisation - - (52) (52)
Impairment of intangible assets (131) - - (131)
Explorati Development Unallocated Consolidated
on and
Production
Year ended 31 March 2006 �'000 �'000 �'000 �'000
Segment revenue 126 - - 126
Segment result (1,868) (135) (1,210) (3,213)
Finance income - - 304 304
Loss before and after tax attributable (1,868) (135) (906) (2,909)
to equity shareholders
Segment assets 208 369 7,411 7,988
Segment liabilities (170) - (216) (386)
Capital additions 1,523 - 136 1,659
Depreciation and amortisation - - (30) (30)
Impairment of intangible assets (1,445) - - (1,445)
3 Finance income and costs
2006 2005
�000 �00
Interest receivable on bank deposits 466 304
Interest payable on bank deposits (16) -
450 304
4 Loss per Ordinary Share
Basic and diluted earnings per share
Loss for the Weighted average Per share amount
year (�000) number of shares (pence)
(Thousands)
Year ended 31 March 2007
Loss attributable to ordinary shareholders (1,785) 31,940 (5.59)p
Year ended 31 March 2006
Loss attributable to ordinary shareholders (2,909) 22,137 (13.14)p
Basic earnings per share are calculated by dividing the profit attributable to equity holders of the
Company by the weighted average number of ordinary shares in issue during the year. Due to the loss making
position of the Group, there is no difference basic and diluted earnings per share.
5 Intangible Assets
Computer Costs of development Total
software and of exploration
pending
determination
�'000 �'000 �'000
Cost
At 1 April 2006 58 1,549 1,607
Additions - 4,042 4,042
At 31 March 2007 58 5,591 5,649
Accumulated amortisation
At 1 April 2006 11 1,445 1,456
Charge for the year 19 - 19
Impairment - 131 131
At 31 March 2007 30 1,576 1,606
Net book value
At 1 April 2006 47 104 151
At 31 March 2007 28 4,015 4,043
Cost
At 1 April 2005 - 26 26
Additions 58 1,523 1,581
Disposals - - -
At 31 March 2006 58 1,549 1,607
Accumulated amortisation
At 1 April 2005 - - -
Charge for the year 11 - 11
Impairment - 1,445 1,445
At 1 April 2006 11 1,445 1,456
Net book value
At 1 April 2005 - 26 26
At 31 March 2006 47 104 151
Intangible assets represent computer software and capitalised expenditure directly related to the
acquisition and development of North Sea exploration licences, granted to the Group during the 22nd and
23rd UK offshore licensing round, together with an amount of �3,611,000 in respect of the Tristan North
West development acquired during the year. The impairment charge is related to amounts expensed to ensure
capitalised amounts do not exceed their useful economic values. The amounts expensed during the year
mainly relate to the Watling and Guinea licences.
6 Financial assets
2007 2006 2007 Company 2006 Company
Group Group
As at 31 March �'000 �'000 �'000 �'000
Shares at cost in subsidiary - - 60 60
undertakings
Shares in unlisted investments 24 24 - -
Shares in listed investments - 345 - -
Loans and advances 1,352 - - -
1,376 369 60 60
A loan to Galoc Production Company of �1,352,203 (2006: �nil) has been made which repayable within five
years.
7 Cash and cash equivalents
2007 2006 2007 Company 2006 Company
Group Group
As at 31 March �'000 �'000 �'000 �'000
Cash 16 11 - -
Short term deposits 8,496 7,243 - -
8,512 7,254 - -
8 Financial liabilities - borrowings
2007 2006 2007 Company 2006 Company
Group Group
As at 31 March �'000 �'000 �'000 �'000
Bank loans and overdrafts due within
one year or on demand:
Unsecured 1,246 - - -
1,246 - - -
9 Post Balance Sheet Events
Tristan North West project financing
On 30 April 2007 Granby completed a financing arrangement with MC Energy Solutions Limited, a subsidiary of
Mitsubishi Corporation, and achieved initial drawdown of funds on the same date. Granby secured a �29.7m
non-recourse loan facility which it will utilise to fund up to 95% of its share of the Tristan North West
development project, as well as the related financing costs. In addition to drawing down sufficient funds
to cover its expected share of May and June 2007 joint venture costs, Granby also recovered a further �2.3m
in cash of its previous capital contributions to the project and loans made to other joint venture
partners. Immediately subsequent to this initial drawdown of the loan Granby's total investment in the
Tristan North West development, net of non-recourse borrowing, amounted to �2.3m.
Galoc project financing
On 6 June 2007 Galoc Production Company completed a financing arrangement with Intesa Sanpaulo S.p.A. The
total facility consists of US$40.8m of non-recourse debt and US$24.2m of recourse debt. On 29 May 2007
Granby placed �1.9m in escrow as security for Granby's share of the security for the recourse element of
the project financing. Granby will be liable to make a further cash deposit of �1.2m for sponsor completion
support prior to commencement of drilling. These amounts will be returned to Granby once the Galoc project
finance has been repaid by the Galoc Production Company.
Granby Oil & Gas plc
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