Report and Accounts and AGM C

RNS Number : 0097R

Cairn Energy PLC

22 April 2009

 



For Immediate Release                                                                                                               22 April 2009 

Cairn Energy PLC (the 'Company')

Report and Accounts and AGM Circular

Two copies of the annual report and accounts for the year ended 31 December 2008 (the 'Report and Accounts') and of the circular convening the 2009 annual general meeting of the Company (the 'AGM Circular') have been submitted to the UK Listing Authority and will shortly be available for inspection at the UK Listing Authority's Document Viewing Facility, which is situated at:

The Financial Services Authority

25 North Colonnade

Canary Wharf

London E14 5HS

The Report and Accounts and the AGM Circular will also be available on the Company's website www.cairnenergy.com.

Duncan Wood

Company Secretary

Information required by Disclosure and Transparency Rule 6.3.5

The principal purpose of this announcement is to notify the submission by the Company to the UK Listing Authority of copies of the Report and Accounts and of the AGM Circular. However, the information set out below, which is extracted from the Report and Accounts, is also included in this announcement for the sole purpose of complying with Disclosure and Transparency Rule 6.3.5 and the requirements it imposes on issuers as to how to make annual financial reports public. It should be read in conjunction with the Company's preliminary results announcement, released on 31 March 2009 (the 'Preliminary Results Announcement'). This material is not a substitute for reading the full Report and Accounts. Page numbers and cross-references in the extracted information below refer to page numbers and cross-references in the Report and Accounts.

Responsibility statement

The following statement is extracted from page 52 of the Report and Accounts. This statement is repeated here solely for the purposes of complying with Disclosure and Transparency Rule 6.3.5. This statement relates to and is extracted from the Report and Accounts. It is not connected to the extracted information presented in this announcement or in the Preliminary Results Announcement.

'Directors' Responsibility Statement

The directors are responsible for preparing the annual report and the Group and Company financial statements in accordance with applicable United Kingdom law and those IFRSs as adopted by the EU. The directors are required to prepare the Group and Company financial statements for each financial year which present fairly the financial position of the Group and Company and the financial performance and cash flows of the Group and Company for that period. In preparing each of the Group and Company financial statements, the directors are required to:

• select suitable accounting policies in accordance with IAS 8: Accounting Policies, Changes in Accounting Estimates and Errors and then apply them consistently;

• present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information;

• provide additional disclosures when compliance with the specific requirement in IFRSs is insufficient to enable users to understand the impact of particular transactions, other events and conditions on the Group's and Company's financial position and financial performance; and

• state that the Group and Company have complied with IFRSs, subject to any material departures disclosed and explained in the financial statements.

The directors are responsible for keeping proper accounting records, which disclose with reasonable accuracy at any time the financial position of the Group and Company and enable them to ensure that the Group's and Company's financial statements comply with the Companies Act and Article 4 of the IAS Regulation. They are also responsible for safeguarding the assets of the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.' 

The names of the directors who have given this responsibility statement are:

Norman Murray (Non-Executive Chairman)

Hamish Grossart (Non-Executive Deputy Chairman) 

Todd Hunt (Non-Executive Director)

Mark Tyndall (Non-Executive Director)

Iain McLaren (Non-Executive Director)

Dr James Buckee (Non-Executive Director)

Sir Bill Gammell (Chief Executive)

Dr Mike Watts (Deputy Chief Executive)

Malcolm Thoms (Chief Operating Officer)

Phil Tracy (Engineering & Operations Director)

Jann Brown (Finance Director)

Simon Thomson (Legal & Commercial Director)

Principal risks and uncertainties

The following description of the principal risks and uncertainties is extracted from pages 41 to 44 (inclusive) of the Report and Accounts:

'The Company is subject to a variety of risks including those which derive from the nature of the oil and gas exploration and production business and relate to the countries in which it conducts its activities. Outlined below is a description of the principal risk factors that may affect performance. Such risk factors are not intended to be presented in any order of priority. Any of the risks, as well as the other risks and uncertainties referred to in this report, could have a material adverse effect on business performance. In addition, the risks set out below may not be exhaustive and additional risks and uncertainties, not presently known to the Company, or which the Company currently deems immaterial, may arise or become material in the future. The risk factors should be considered in conjunction with the cautionary note to shareholders in relation to forward-looking statements set out on page 136.

The Company's Performance is Dependent upon the Performance of Cairn India and the Capricorn Group

The Company's principal assets are its 65% shareholding in Cairn India, a company listed on the BSE and NSE in India, and its 90% shareholding in its unlisted subsidiary, Capricorn. Accordingly, the Company's performance and market price are dependent upon the performance of Cairn India and Capricorn. Any failure by Cairn India or by Capricorn to successfully develop their respective businesses could have a material adverse effect on the Company's business performance. The Company's material shareholding in Cairn India represents a significant proportion of the Company's value. Any fluctuations in the market price of Cairn India's share price may have a direct effect on the Company's share price. 

Relationship with Cairn India

The Company exercises its influence over Cairn India through certain provisions contained within the memorandum and articles of association of Cairn India and by the terms of a relationship agreement between Cairn India and the Company. Under the memorandum and articles of association, the Company has three nominee directors on the board of CIL, including the Chairman and, additionally, one nominee director on the audit committee and two nominee directors on the remuneration committee. The relationship agreement regulates the sharing and disclosure of information to enable the Company to comply with its legal and regulatory obligations and also specifically provides that CIL shall comply with such best practice principles, standards, policies and provisions which the Company reasonably requires it to comply with. The required information is covered in a definitive list of agreed information requirements. As a listed company on the LSE, the Company is subject to the rules of the FSA, the LSE, the Listing Rules and the Disclosure and Insider Trading Rules, whereas as a company listed on the BSE and NSE, Cairn India is subject to the rules, regulations and guidelines of SEBI and to its listing agreement with the BSE. The Company is therefore at risk of changes to the company regulations in these countries that may affect their operations and the risks of not fully meeting the requirements in both countries. The Company has adopted a suite of policies and procedures and through their application, aims to minimise the risk of inconsistent communications or not fully complying with market reporting requirements in the UK and India.

Project Assessment and Delivery

Prior to sanction of any development project it is necessary to determine with suitable accuracy the resource base, the optimal production profile of the field, the costs of development, the time it will take to complete the development as well as commencing or concluding commercial arrangements with buyers for the sale of the oil or gas produced. Risks during the pre-sanction period are typically technical, engineering, commercial or regulatory in nature. Specific risks include the possible over-estimation of crude oil and natural gas initially in place and recoverable, inadequate technical and geophysical assessment, inaccurate cost estimations, not securing appropriate long-term commercial agreements or, where required, applicable governmental or regulatory consents, permits, licences or approvals. This can cause delays to the commercialisation of reserves and this may have a material effect on medium to long-term cash flow and income. Post sanction, project delivery is particularly subject to technical, commercial, contractor, economic and corporate responsibility risks. Projects can be unsuccessful for many reasons, including availability, competence and capability of human resources and contractors, mechanical and technical difficulties and infrastructure constraints, resulting in cost increases, delays in completion and deferral of income from production from the field under development. In addition, some development projects may require the use of new and advanced technologies or produce hydrocarbons from challenging reservoirs, which can exacerbate such problems. The Company's principal project is the development by Cairn India of discovered oil fields in Rajasthan. The scope of this project includes the installation of the Mangala Processing Terminal (MPT), well pads, transportation infrastructure and export pipeline to enable the transport of produced and treated oil to designated end users in India. Availability of production from the largest oil field, Mangala, is currently scheduled for Q3 2009 with initial export by trucking. Thereafter Mangala production is expected to build up to 125,000 bopd with export via pipeline during the first half of 2010. The Bhagyam and Aishwariya Fields are then scheduled to commence production in 2011. Project risks include the potential for delays in the delivery of materials and equipment, construction, installation or commissioning activities, which may lead to delay in the start-up and build up in oil production levels from the MBA fields. The crude oil at the northern fields in Rajasthan is characterised by its viscous nature in the reservoir and its propensity to solidify at low temperatures, whether in the well-bore or at surface, than is commonly the case for most producing oil fields. This presents both extraction and transportation risks. The development, production and transportation plans for the northern fields are dependent upon availability of a reliable fuel supply for power generation and heating of the facilities. A parallel development of the Raageshwari gas field in Rajasthan is being undertaken to provide such fuel gas. Under the present schedule, fuel gas will be available to meet the power generation and heating requirements to support availability of production from the Mangala field and the availability of transportation infrastructure during the second half of 2009. Residual risks are essentially similar to those which pertain to the completion of the Mangala development. Efficient recovery of Mangala production requires the use of secondary recovery techniques, which requires the injection of water to maintain reservoir pressure and to sweep the oil to the production wells. The accessing, delivery and injection of this water into the reservoir has a number of associated risks including maintaining regulatory approval for the extraction of saline water from subterranean aquifers, maintaining the water infrastructure and injecting sufficient volumes of water into the reservoir to achieve the desired levels of secondary recovery. The inability to inject sufficient volumes of water could result in lower offtake volumes and lower ultimate recoverable reserves. The development plans for the northern fields are expected to assume the use of EOR techniques to extract an additional incremental percentage of the estimated oil in place in the reservoirs. There is a risk that Cairn India may not be able to use EOR techniques successfully. These risks include sourcing, purchasing and transportation of large quantities of the types of polymer chemicals that would be required for the EOR techniques, failure to maintain the properties of the polymer chemicals in the reservoir, leading to lower incremental recovery of oil and polymer fouling of the surface facilities leading to a deterioration of the operating efficiency of the processing plant. The economic viability of the EOR application will be determined by the prevailing crude oil price and the incremental operational expenditure which includes the cost of chemicals. A pilot EOR project is planned shortly after commencement of production from the Mangala field to test the validity of the EOR techniques.

Operations

The Company's revenues are dependent on the continued production from its operating facilities in India and Bangladesh. Operational risks include maintaining asset integrity, which can be affected by a number of factors including not following prescribed operating and maintenance procedures resulting in reduced plant availability, unplanned shutdowns and/or equipment failure. The performance by and sharing of risk between JV partners and the location of some of the Group's operations (which may expose them to natural hazards such as cyclones, flooding and earthquakes) can also affect operations. If these risks materialise, the Group may not be able to meet its corporate responsibility policies and standards, or planned output levels or unit operating costs. These factors may have an effect on cost control, or a potentially material impact on the Group's reputation and the results of the Group's operations. Future production of crude oil and natural gas from new fields is dependent on the Group finding, or acquiring and developing further reserves. The Group has exploration licences in a number of countries where environmental, geological and infrastructural conditions are challenging and as a consequence costs could be higher. The cost of drilling, completing and operating wells is often uncertain. As a result, the Group may incur cost overruns or may be required to curtail, delay or cancel drilling operations because of many factors, including unexpected drilling conditions, pressure or irregularities in geological formations, equipment failures or accidents, adverse weather conditions, the need for compliance with environmental regulations, governmental requirements and shortages or delays in the availability of drilling rigs and the delivery of equipment. If the Group fails to conduct successful exploration activities or to acquire assets holding oil and gas reserves and resources, the Group's reserves and resources will decline as it extracts and depletes existing reserves. The Group's future production depends significantly upon its success in finding or acquiring and developing additional reserves and resources. If the Group is unsuccessful, it may not meet its production targets, and its total proven reserves and production will decline, which could adversely affect the results of its operations and financial condition.

Commercial

Cairn India may not be able to sell all of the oil that it is able to produce from its fields in Rajasthan or obtain the crude oil price determined in accordance with the PSC. Under the PSC Cairn India is obliged to sell 100% of its crude oil production to the GoI, which nominates the buyer(s). The GoI may not be able to fulfil its obligation under the PSC in which case Cairn India's ability to sell all of the oil that it can produce and at the price set out in the PSC might be compromised. This could lead to reduced cash flow and future projects currently planned to be funded out of cash flows may be deferred. The purchase price calculation mechanism set out in the PSC is based upon a basket of crude oils to be decided between Cairn India and the nominee(s) based upon a mixture and weighting of crude oils that would produce a quality similar to the quality of crude oil expected to be produced by Cairn India. There can be no assurance that the basket of crude oils used to determine the price of Cairn India crude oil sales to the nominee(s) will result in a value approximating to the price used by Cairn India in its development and financial planning.

Exchange Rates, Interest Rates, Currency Controls and Fiscal Regulation

The Group's cash flow, income statement and balance sheet are reported in US Dollars and may be significantly affected by fluctuations in exchange rates. Shares in Cairn India are, and any dividends which may become payable in respect of them will be denominated in Rupees. The material holding in Cairn India by the Group, whose principal currency is not Rupees, exposes the Group to foreign currency exchange rate risk. Cairn India has been funded largely in US Dollars through its cash generation from operations, the conversion of the IPO proceeds and its loan facilities, and has significant US Dollar cash holdings. Cairn India will nonetheless incur significant expenses in Rupees in connection with the development of the oil fields in Rajasthan. Accordingly, Cairn India has adopted and implemented a foreign exchange hedging policy to limit exposure to movement in the exchange rate between the US Dollar and the Rupee. The Group's financing costs may be significantly affected by interest rate volatility. Furthermore, the GoI currently operates certain controls on currency exports which restrict the transfer from India of Rupees. While the policy and practice of the GoI has been to relax many of these controls and no restrictions are in place at present that would prevent free remittance of dividends from Cairn India to the Company, there is a risk that controls may be re-imposed in future. Indian law further restricts the ability of the Company to dispose of certain of its shares in Cairn India until three years after the IPO.

Environmental Regulation

The Group may incur material costs in complying with, or as a result of, health, safety and environmental laws and regulations. The Group is subject to a broad range of health, safety and environmental laws and regulations that impose controls on, among other things, the storage, handling and transportation of petroleum products, employee exposure to hazardous substances and other aspects of its operations. The Group may also incur liabilities for environmental damage caused by acts or omissions of any third party contractors. Further, the adoption of new health, safety and environmental laws and regulations, new interpretations of existing laws, increased governmental enforcement of environmental laws or other developments in the future may require additional capital expenditures or result in the Group incurring additional operating expenses in order to maintain current or future operations. These laws and regulations are increasingly stringent and may in the future create substantial environmental compliance or remediation liabilities and costs. If the Group fails to meet environmental requirements or has a major accident or disaster, it may also be subject to administrative, civil and criminal proceedings by governmental authorities, as well as civil proceedings by environmental groups and other individuals, which could result in fines, penalties and damages against it as well as orders that could limit, halt or even cause closure of its operations, any of which could have a material adverse effect on its business, results of operations and financial condition.

Market Place

The Group's results from its operations and financial condition are subject to fluctuations in oil and gas prices. The oil and natural gas industry is highly competitive. Due to, amongst other things, the significant increase and subsequent decline in international oil prices in 2008, the Group is subject to highly competitive market conditions for the resources required to conduct its ongoing business, in particular with regard to the engagement of leading third party service providers and the purchase of capital equipment. Coupled with relatively limited resources and expertise in India, in particular in the area surrounding Rajasthan, this has resulted in a strain on the specialist engineering and other services that Cairn India needs to develop its fields in Rajasthan. The remaining development costs, as well as the current target of the second half of 2009 for first commercial production from the Mangala field, are subject to these risks of raw material and equipment shortages, or price increases above those anticipated and an inability to procure or design the engineering services required. The current capital constraints may also impact the ability of the contractors and their sub-contractors working on the Rajasthan project, to deliver equipment, materials and personnel on schedule. The Company has sought to liaise closely with the primary contractors to ensure appropriate timing of payments.

Insurance

Consistent with good industry practice, an insurance programme is in place to mitigate significant losses. There is a risk, however, that the Group's insurance policies may not be sufficient in covering all losses which it or any third parties may suffer. If the Group suffers an event for which it is not adequately insured, there is a risk that this could have a material adverse effect on its business, results of operations and financial condition. The insurance programme is also subject to certain limits, deductibles and other terms and conditions.

Human Resources

The Group's performance and its ability to mitigate those risk factors within its control depend on the skills and efforts of its employees and management teams across the Group. Future success will depend to a large extent on the Group's continued ability to attract, retain and motivate highly skilled and qualified personnel. Attracting and retaining top quality managerial talent is a challenge facing companies in the oil and gas exploration and production sector. Failure to have or retain key positions and functions in place could have a material adverse effect on the Group's business, results of operations and financial condition.

Corporate Responsibility (CR)

The Group recognises that applying its CR Policies and 'Guiding Principles' in all activities is essential in maintaining its 'licence to operate' and business reputation. CR risks occur when any part of the business fails to implement these Policies and 'Guiding Principles'. CR risks that could affect the Group's ability to deliver projects on time and within budget include inadequate stakeholder engagement, failure to put in place appropriate controls to mitigate environmental and social impacts, not having adequate processes in place to protect human rights in activities in our 'sphere of influence' and the ineffective implementation of health and safety policies, which could also lead to health problems and injuries at the Group's worksites. The Group's producing fields and construction projects carry significant health, safety and environmental risks. The Group seeks to minimise these risks though the application of the CR Management System (CRMS). The CRMS provides the basis for managers and supervisors to conduct risk assessments and to identify and implement appropriate steps to minimise the risks to people, facilities and the environment. Road transportation has been identified as a key safety risk in our activities and appropriate measures are in place aimed at minimising the potential for accidents or environmental impacts.

War, Terrorist Attack and Natural Disasters

The Group's business may be adversely affected by a war, terrorist attack, natural disaster or other catastrophe, particularly given the location of some of the Group's assets in South Asia where terrorist attacks have become more prevalent in recent times. Regular security assessments, audits and ongoing engagement with Government officials are the main ways through which the Group mitigates the risks to staff and assets from terrorist actions. The Group's assets are also exposed to risks from adverse weather conditions. In India the projects in Rajasthan and production operations in Cambay can be impacted by heavy rains during the monsoon season. Capricorn's assets in Bangladesh are also exposed to risks from extreme weather conditions, such as cyclones, which can occur in South Asia. The low-lying nature of much of Bangladesh puts it at risk from any rise in sea levels as a result of global warming. Any damage to the Cairn India and Capricorn infrastructure in India or Bangladesh or disruption or suspension of production could have a material adverse affect on the financial condition and/or operating results of the Group. Capricorn's ability to conduct its operations in its Greenland acreage may be adversely affected by sea ice and icebergs even within the operating windows during which activities can normally proceed.

Political Climate

The Group is active in a number of overseas markets and may be affected by a change in fiscal policy in respect of, or which impacts upon, these markets. The Group cannot predict the impact of future changes in fiscal policy in the countries and markets in which it operates. Amendments to existing legislation (particularly increases in tax rates or withdrawals of tax relief), the introduction of new tax laws (such as the imposition of import and/or export quotas or import and/or export tariffs) and changes from time to time in the interpretation of existing tax laws could materially adversely affect the Group's reputation, financial condition and/or operating results. Cairn India may be liable to pay cess under the Indian Oil Industry (Development) Act 1974 ('OIDA cess') in relation to the production of crude oil from Rajasthan under the terms of the RJ-ON-90/1 PSC. Any requirement to pay OIDA cess on commercial production of crude oil, whether or not recoverable pursuant to the terms of the PSC, may have a material adverse effect on Cairn India's financial condition and results of operations. In respect of the political climate in Nepal, with the declaration of a Republic on 28 May 2008 and the entry of the Maoist party into Government the security and political situation in that country has improved but remains sensitive. For this reason Capricorn has not lifted the force majeure notices served earlier in respect of its exploration interests and will await further progress before doing so. There is a risk that the situation in Nepal may never improve sufficiently to enable the Group to recommence its activities in that country. 

Cash Flow and Funding

Cairn has always maintained a capital structure appropriate for its operations in exploration, appraisal and development. Due to the concentration on exploration, appraisal and development activities, both Cairn India and Capricorn are expected to remain cash flow negative for some time. Given the current global market conditions, the Company strengthened its equity capital base in March 2009 through placing approximately 5 per cent of the existing issued ordinary share capital with both new and existing institutional investors, in order to maintain operational and financial flexibility across Cairn's operations, particularly in relation to the Rajasthan development and to its exploration position in Greenland. Cairn India finances its operations from cash generated from its producing fields, from the cash proceeds received and retained in respect of the IPO and from the private placement of shares to Petronas and Orient Global in 2008 and committed and available loan facilities. If production from any of the producing fields is interrupted or suspended, this would have a negative impact on the Group's cash flow. The directors consider that the existing banking facilities, together with the Group's cash resources, currently provide sufficient funding to complete the core Mangala development and the export pipeline, and that the additional equity raised in March 2009 will enable the Group to retain significantly greater optionality in the delivery of its Rajasthan project.

Global Economic Slowdown and Associated Risk

The Group is exposed to liquidity risks, including risks associated with refinancing borrowings as they mature, the risk that borrowing facilities are not available to draw down and the risk that assets cannot readily be converted to cash without loss of value. This risk has been increased by the volatility of the current economic environment. The Group may be unable to obtain sufficient credit or may only be able to obtain credit on unfavourable terms due to banking and capital market conditions. If this happens, the Group may not be able to develop new projects or meet existing financial commitments and, as a result, operating results, revenues and cash-flows may be adversely affected. The Group is exposed to counterparty risk that could result in financial losses and credit risks should those counterparties, including JV partners and suppliers, become unable to meet their obligations to the Group. The current economic climate has increased this counterparty risk.'

Related party transactions

The following description of related party transactions is extracted from pages 129 and 130 of the Report and Accounts:

'36. Related Party Transactions

The Company's principal subsidiaries are listed in note 18. The following table provides the balances which are outstanding with subsidiary companies at the Balance Sheet date:

At 31 December     At 31 December

2008                      2007

$m                        $m

Amounts owed from subsidiary undertakings         37.4                      50.5

Amounts owed to subsidiary undertakings           (10.0)                     (5.3)

-----------                  -----------

27.4                       45.2

-----------                  -----------

The amounts outstanding are unsecured, repayable on demand and will be settled in cash. Interest, where charged, is at market rates. No guarantees have been given.

The following table provides the transactions with subsidiary companies recorded in the profit (2007: profit) for the year, all of which were carried out on an arms length basis:

2008             2007

$m                $m

Amounts invoiced                                                          14.5              36.9

Cost sharing arrangement                                              4.6                 -

Management fees                                                           -                   1.6

Intercompany interest receivable                                      -                   0.8

Intercompany interest payable                                         -                   0.9

a) 2007 Group transactions

During 2007, Capricorn Energy Limited issued new share capital to Cairn Energy PLC for a total consideration of $273.9m. On 31 December 2007, Cairn Energy UK Holdings Limited repurchased share capital from Cairn Energy PLC reducing the company's investment. Proceeds of $128.9m were received for the repurchase.

b) Remuneration of key management personnel

The remuneration of directors, who are the key management personnel of the Group, is set out below in aggregate. Further information about the remuneration of individual directors is provided in the audited part of the Directors' Remuneration Report on pages 60 to 72.

2008             2007

Group and Company                                          $m                $m

Short-term employee benefits                             9.0                7.0

Pension contributions                                        0.6                0.6

Share based payments                                      3.5                3.2

                                                                        -----------         -----------

13.1             10.8

-----------         -----------

c) Other transactions

During the year the Group did not make any purchases in the ordinary course of business from an entity under common control (2007: $nil). There were no amounts owed to the party at the year end (2007: $nil). During the year the Company disposed of its intangible assets to Capricorn Oil Limited, a direct subsidiary, at arm's length values (refer to Note 16).'

Forward-looking statements

This announcement contains (or may contain) certain forward-looking statements with respect to certain of the Company's plans and its current goals and expectations relating to its future financial condition and performance and which involve a number of risks and uncertainties. The Company cautions readers that no forward-looking statement is a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking statements. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements sometimes use words such as 'aim', 'anticipate', 'target', 'expect', 'estimate', 'intend', 'plan', 'goal', 'believe', or other words of similar meaning. Examples of forward-looking statements include, amongst others, statements regarding or which make assumptions in respect of the future performance of the Company's principal subsidiary undertakings (Cairn India Limited and Capricorn Oil Limited), the on-going development of the discovered oil fields in Rajasthan, India, the future continued operation of the Cairn group's producing assets, the timing of the commencement of future production and the sustainability of that production, the ability of the Cairn group to discover new reserves, the prices achievable by the Cairn group in respect of its production, the costs of exploration, development or production, future foreign exchange rates, interest rates and currency controls, the future political and fiscal regimes in the overseas markets in which the Cairn group operates, the Cairn group's future financial position, plans and objectives for future operations and any other statements that are not historical fact. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances, including, but not limited to, economic and business conditions, the effects of continued volatility in credit markets, market-related risks such as changes in the price of oil or changes in interest rates and foreign exchange rates, the policies and actions of governmental and regulatory authorities, changes in legislation, the further development of standards and interpretations under International Financial Reporting Standards ('IFRS') applicable to past, current and future periods, evolving practices with regard to the interpretation and application of standards under IFRS, the outcome of pending and future litigation or regulatory investigations, the success of future explorations, acquisitions and other strategic transactions and the impact of competition. A number of these factors are beyond the Company's control. As a result, the Company's actual future results may differ materially from the plans, goals, and expectations set forth in the Company's forward-looking statements. Any forward-looking statements made in this announcement by or on behalf of the Company speak only as of the date they are made. Except as required by the Financial Services Authority (the 'FSA'), the London Stock Exchange or applicable law, the Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained in this announcement to reflect any changes in the Company's expectations with regard thereto or any changes in events, conditions or circumstances on which any such statement is based.  

 

END

 

 

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