Half Yearly Report

RNS Number : 9331S

Independent Resources PLC

30 September 2014

 

30 September 2014
Independent Resources PLC
Interim report
Six months ended 30 June 2014
Highlights
	•         Operatorship awarded in Tunisia
	•         Blackwatch CPR (Competent Persons Report) places risked value on Ksar Hadada interest of 133p per share (unrisked 424p per share)
	•         Equity fundraising successfully completed
	•         Reducing expenditure on Italian projects
	•         Net cash at 30 June 2014: £1.4m (2013: £1.3m)
Chairman's Statement
The first six months of this financial year have seen significant progress in the transformation of Independent Resources plc ("Independent Resources" or the "Company") into a Group primarily focused on conventional exploration and production opportunities in the Mediterranean and North African region.
We have now been awarded operatorship of the Ksar Hadada permit onshore Tunisia with a revised 86.345 per cent. working interest of considerable potential value.
Italy remains an area of uncertainty, where we are focused on optimal use of our resources and seeking ways to ensure we protect our chances of delivering a return on the historical investment in our Italian projects.
We are thankful to all shareholders for their continued support and in particular to everyone who participated in our recently completed fundraising.
Ksar Hadada
In February following an active period of discussions with the regulatory authorities in Tunisia an application was made for Independent Resources to be appointed as operator of the Ksar Hadada permit, with an increased interest and a two-year extension to April 2016 to undertake an expanded work programme.
Formal approval was obtained from the Consultative Committee on Hydrocarbons of Tunisia in August 2014. This is positive vindication of the skillset and experience that the new management team of Independent brings.  Our working interest was also increased to 86.345 per cent.  The Company and its partners have committed to a work programme in return for a two year licence extension.
Two previously drilled wells, Sidi Toui 3 and 4, were drilled based on 2D seismic in 2004 and 2010 but never adequately tested.  The use of 3D seismic has helped increase drilling success for other operators in Tunisia.  The completion of a 3D seismic programme is a requirement of our work programme commitment for Ksar Hadada.
The Company has commissioned further sophisticated well evaluation studies which are nearing completion and intends to open a small office in Tunis to oversee upcoming seismic and well operations.
In March 2014 we concluded an exercise to have the potential of the Ksar Hadada Permit re-evaluated by Blackwatch Petroleum Services Ltd acting as competent person.
The revised evaluation estimated gross recoverable resources of 108 million barrels of oil equivalent for the Ksar Hadada Permit.
It placed a risked value of US$227m (unrisked: US $723m) on Independent Resources' revised working interest in the permit. At current exchange rates, this is equivalent to a risked value of £1.33 (unrisked: £4.24) per ordinary share in issue at 30 June 2014.
Now that we have had confirmation of our revised working interest we have begun formal marketing of the opportunity to potential farm-in partners in order to minimise the potential dilution to shareholders from raising equity funds directly to execute the prescribed work programme.
Italy
While the new government under Prime Minister Matteo Renzi has taken important steps to try to increase the viability of the sector in Italy, the Board is conscious of the time it may take for the proposed changes to take effect.
In light of this we continue to evaluate strategies to capture value for shareholders and try to protect the opportunity for a future return on the historical investment in our Italian projects.
The commercial rationale for Rivara remains strong, particularly in light of the risk of interruption of supply of gas to Italy from Russia and certain parts of North Africa, which represent a significant element of Italy's supply.  Italy's obligation to support neighbouring countries in the event of supply interruption could exacerbate future problems and strengthens the case for new Italian gas storage capacity to be brought online.  On a positive note, there is also the opportunity for Italy to become a transit country for new gas coming from Azerbaijan and new storage capacity could leverage this additional gas supply.
Recently introduced legislation emphasises the Italian government's attitude to storage which is now considered strategically important. The proposed legislation is supportive of a range of activities relating to storage capacity, including initial assessment, research activities, development and management.
We remain within the timeframe for commencing our administrative claims in relation to Rivara. These claims have remained pending for a couple of years but we now expect the hearing regarding the merit of our case to be called in the next three months.  Clarification of our future plans remains on hold pending resolution of the court processes.
At Ribolla, our efforts to combine the Fiume Bruna and Casoni work programmes to recognise past investment appear unlikely to prove successful.
Our recent attempts to farm these assets out have also been unsuccessful and as a result, and in light of the uncertainty over the future renewal of the permit, we have decided to impair the carrying value of the historical investment in Fiume Bruna and Casoni and the goodwill associated with the historical acquisition of Independent Energy Solutions srl which together have resulted in a charge to the statement of comprehensive income for the six months to 30 June 2014 of £4.65m.
We need to remain pragmatic about the resources to be devoted to this project and the potential to realise commercial value in the future: in this respect, we are currently re-assessing the whole project and our chances of exploiting this opportunity successfully.
In light of the likely revision of our future plans for the Italian projects, we intend to take steps to reduce significantly our ongoing costs in Italy.
Results for the period
The loss for the period was £5.44m (2013: £0.57m).  This includes an impairment charge of £4.65m, in relation to historical investment at Fiume Bruna and Casoni and goodwill in relation to the historical acquisition of Independent Energy Solutions.  Excluding this charge, the loss for the period was £0.79m (2013: £0.57m).
This loss included professional costs incurred during the period of approximately £0.22m in relation to potential acquisitions and our successful application for operatorship of the Ksar Hadada permit.
The increased loss reflects the Group's increased UK presence following the opening of our commercial office in London and the strengthening of the management team to enable delivery of our revised strategy.  As mentioned previously we intend to reduce our ongoing Italian operating costs.
Business development
We believe that the strategy of many larger companies to divest producing assets that are sub-scale for them offers significant opportunity for Independent Resources.
Our team continues to progress a pipeline of opportunities focused on Tunisia and Egypt.   We are in discussions with a number of parties regarding potential transactions. We are devoting significant effort to two projects in Tunisia and three very substantial projects in Egypt.  We continue to progress these projects and hope to make further announcements in due course.
Fundraising
In June of this year, we completed a fundraising process which raised gross proceeds of approximately £1.78m from existing and new shareholders.  Total fees of approximately £0.17m were incurred in relation to the fundraising and have been debited to the share premium account in the results for this period.
We welcome the decision by Legal and General to increase their interest in the Company to just under 20 per cent. of our share capital through the fundraising and are pleased that both Axa Investment Managers and SVS Securities have chosen to become shareholders in the Company.
Going concern
Fundraising activities remain an ever present part of life for junior oil and gas companies and we are no different.
The Directors acknowledge that further funding will be required within the next 12 months in order for the Group to continue operating.
Our acquisition strategy remains focused on acquiring producing assets to create a group which is self-sustaining from production cash flows.
The Directors are confident that additional external funding should be available if and when required and we continue to actively work with a number of parties to expand our sources of capital.
The Directors have considered the Group's current trading activities, its current funding position and the projected funding requirements for a period at least twelve months from the date of approval of these interim financial statements. Taking all of that into account, they consider it appropriate to adopt the Going Concern basis in preparing results for the six months ended 30 June 2014.
Outlook
Our key objectives in the short-term will be completion of a farm out in Tunisia and delivering on our business development pipeline.  While the pace of progress cannot always be controlled, we continue to assemble the building blocks for an exciting future founded on a balanced combination of production and appraisal assets.
For further information, please visit www.ir-plc.com or contact:
Greg Coleman			Independent Resources plc											020 3367 1134
Phil Davies			Charles Stanley Securities											020 7149 6942
			(Nominated Adviser)
Simon Hudson			Tavistock Communications											020 7920 3150
Roberto Bencini, Technical Director of Independent Resources, has reviewed this announcement for the purposes of the current Guidance Note for Mining, Oil and Gas Companies issued by the London Stock Exchange in June 2009.  Mr. Bencini is a Chartered Petroleum Geologist. He is a member of the Society of Petroleum Engineers, the Geological Society of London and the American Association of Petroleum Geologists.
* The evaluation of the potential recoverable hydrocarbons mentioned in this announcement has been assessed in accordance with Petroleum Resources Management System prepared by the Oil and Gas Reserves Committee of the Society of Petroleum Engineers (SPE) 2007, and the Guidelines for Application of the Petroleum Resources Management System, November 2011. Both documents were reviewed and jointly sponsored by the World Petroleum Council (WPC), the American Association of Petroleum Geologists (AAPG) and the Society of Petroleum Evaluation Engineers (SPEE).
Independent Resources PLC
Consolidated statement of comprehensive income
Six months ended 30 June 2014
										Unaudited		Unaudited				Audited
										1 January 2014		1 January 2013				1 October 2012
										to 30 June		to 30 June				to 31 December
										2014		2013				2013
										£		£				£
							Notes
Continuing operations
Revenue							2			-		-				-
Cost of sales										-		-				-
Gross profit										-		-				-
Administrative expenses										(791,049)		(571,763)				(1,831,949)
Operating loss before impairment and reorganisation										(791,049)		(571,763)				(1,831,949)
Reorganisation of Rivara Gas Storage srl										-		-				(1,511,722)
Impairment of Ribolla Basin CBM assets							3			(4,650,862)		-				-
Operating loss										(5,441,911)		(571,763)				(3,343,671)
Financial income										124		3,613				2,455
Financial expense										(1)		(132)				(122)
Loss on ordinary activities before taxation										(5,441,788)		(568,282)				(3,341,338)
Taxation							4			-		-				-
Loss for the period										(5,441,788)		(568,282)				(3,341,338)
Other comprehensive income:
Exchange difference on translating foreign operations										(396,219)		566,084				704,123
Total comprehensive loss for the period										(5,838,007)		(2,198)				(2,637,215)
Loss attributable to:
Owners of the parent										(5,441,788)		(568,282)				(3,350,702)
Non-controlling interests										-		-				9,364
										(5,441,788)		(568,282)				(3,341,338)
Total comprehensive loss attributable to:
Owners of the parent										(5,838,007)		(2,198)				(2,664,623)
Non-controlling interests										-		-				27,408
										(5,838,007)		(2,198)				(2,637,215)
Loss per share (pence)							5
From continuing operations:
Basic										(11.8)		(1.2)				(7.3)
Diluted										(11.8)		(1.2)				(7.3)
Independent Resources PLC
Consolidated statement of financial position
As at 30 June 2014
										Unaudited		Unaudited				Audited
										30 June		30 June				31 December
										2014		2013				2013
										£		£				£
							Notes
Non-current assets
Property, plant and equipment										21,490		17,039				19,883
Goodwill							6			-		450,766				450,766
Other intangible assets							7			5,619,413		10,301,517				10,128,364
										5,640,903		10,769,322				10,599,013
Current assets
Other receivables										569,704		656,509				464,850
Cash and cash equivalents										1,388,835		1,257,831				663,117
										1,958,539		1,914,340				1,127,967
Current liabilities
Trade and other payables										(904,599)		(700,313)				(807,505)
										(904,599)		(700,313)				(807,505)
Net current assets										1,053,940		1,214,027				320,462
Net assets										6,694,843		11,983,349				10,919,475
Equity attributable to equity holders of the parent
Share capital										1,051,434		458,369				458,369
Share premium										16,302,050		15,287,351				15,287,351
Share option reserve										20,574		362,768				418,919
Foreign currency translation reserve										215,016		878,081				611,235
Retained earnings										(10,894,231)		(5,003,220)				(5,856,399)
Total equity										6,694,843		11,983,349				10,919,475
Independent Resources PLC
Consolidated statement of changes in equity
Six months ended 30 June 2014
											Foreign
									Share		currency				Non-
		Retained		Share		Share			option		translation				controlling		Total
		earnings		capital		premium			reserve		reserve	Total			interests		equity
		£		£		£			£		£	£			£		£
Six months to 30 June 2014
1 January 2014		(5,856,399)		458,369		15,287,351			418,919		611,235	10,919,475
Loss for the period		(5,441,788)		-		-			-		-	(5,441,788)
Exchange differences		-		-		-			-		(396,219)	(396,219)
Total comprehensive loss
for the period		(5,441,788)		-		-			-		(396,219)	(5,838,007)
New shares issued in the
Period net of issue costs		-		593,065		1,014,699			-		-	1,607,764
Share options lapsed
in the period		403,956		-		-			(403,956)		-	-
Share-based payments		-		-		-			5,611		-	5,611
30 June 2014		(10,894,231)		1,051,434		16,302,050			20,574		215,016	6,694,843
Six months to 30 June 2013
1 January 2013		(4,434,938)		458,369		15,287,351			264,717		311,997	11,887,496
Loss for the period		(568,282)		-		-			-		-	(568,282)
Exchange differences		-		-		-			-		566,084	566,084
Total comprehensive loss
for the period		(568,282)		-		-			-		566,084	(2,198)
Share-based payments		-		-		-			98,051		-	98,051
30 June 2013		(5,003,220)		458,369		15,287,351			362,768		878,081	11,983,349
15 months to 31 December 2013
1 October 2012		(3,766,319)		458,369		15,287,351			264,717		(74,844)	12,169,274			1,172,302		13,341,576
Loss for the period		(3,350,702)		-		-			-		-	(3,350,702)			9,364		(3,341,338)
Exchange differences		-		-		-			-		686,079	686,079			18,044		704,123
Total comprehensive loss
for the period		(3,350,702)		-		-			-		686,079	(2,664,623)			27,408		(2,637,215)
Share options lapsed
in the period		60,912		-		-			(60,912)		-	-			-		-
Share-based payments		-		-		-			215,114		-	215,114			-		215,114
Non-controlling interest
acquired by group		1,199,710		-		-			-		-	1,199,710			(1,199,710)		-
31 December 2013		(5,856,399)		458,369		15,287,351			418,919		611,235	10,919,475			-		10,919,475
Independent Resources PLC
Consolidated statement of cash flows
Six months ended 30 June 2014
										Unaudited		Unaudited				Audited
										1 January 2014		1 January 2013				1 October 2012
										to 30 June		to 30 June				to 31 December
										2014		2013				2013
										£		£				£
Cash flows from operating activities
Loss before taxation										(5,441,788)		(568,282)				(3,341,338)
Adjustments for:
	Depreciation of property, plant and equipment									3,250		4,665				10,818
	Impairment of goodwill									450,766		-				-
	Impairment of intangible assets									4,200,096		-				-
	Loss on disposal of property, plant and equipment									-		840				-
	Financial income									(124)		(3,613)				(2,455)
	Financial expense									1		132				122
										(787,799)		(566,258)				(3,332,853)
(Increase)/decrease in other receivables										(111,900)		42,802				3,433,381
Increase/(decrease) in trade and other payables										97,093		(66,990)				(153,166)
Share-based payments										5,611		98,051				215,114
Cash used in operations										(796,995)		(492,395)				162,476
Income taxes received										-		-				-
Net cash used in operating activities										(796,995)		(492,395)				162,476
Cash flows used in investing activities
Interest received										124		3,613				2,455
Interest paid										(1)		(132)				(122)
Proceeds on disposal of property, plant and equipment										-		-				1,495
Purchase of intangible assets										(79,609)		(129,889)				(222,913)
Purchase of property, plant and equipment										(5,565)		-				(10,060)
Net cash used in investing activities										(85,051)		(126,408)				(229,145)
Cash flows from financing activities
Issue of share capital - net of share issue costs										1,607,764		-				-
Net cash from financing activities										1,607,764		-				-
Net increase/(decrease) in cash and cash equivalents										725,718		(618,803)				(66,669)
Cash and cash equivalents at beginning of the period										663,117		1,876,634				729,786
Cash and cash equivalents at end of the period										1,388,835		1,257,831				663,117
Independent Resources PLC
Notes to the interim financial information
Six months ended 30 June 2014
1.	Accounting policies
	General information
	The interim financial information is for Independent Resources plc ("the Company") and subsidiary undertakings (together, the "Group"). The Company is registered in England and Wales and incorporated under the Companies Act 2006. The consolidated financial information is presented in GBP ("£") unless otherwise stated.
	Basis of preparation
	The interim financial information, for the period from 1 January 2014 to 30 June 2014, has been prepared under the historical cost convention and in accordance with International Financial Reporting Standards and International Accounting Standards as adopted by the European Union, and on the going concern basis.  They are in accordance with the accounting policies set out in the statutory accounts for the period ended 31 December 2013.
	The Interim Report is unaudited and does not constitute statutory financial statements.  The financial information for the period ended 30 June 2013 does not constitute statutory accounts, as defined in section 435 of the Companies Act 2006 but is based on the statutory financial statements for the period ended 31 December 2013.  Those accounts, upon which the auditors issued an unqualified opinion, have been delivered to the Registrar of Companies.
	The interim consolidated financial statements for the six months ended 30 June 2014 have been prepared in accordance with IAS 34, Interim Financial Reporting.
	The operations of Independent Resources Plc are not affected by seasonal variations.
	The directors do not propose a dividend for the period (2013: nil).
	The Interim Report for the six months ended 30 June 2014 was approved by the Directors on 29 September 2014.
	Copies of the Interim Report are available from the Company's website www.ir-plc.com.
	Going concern
	The financial information has been prepared assuming the Group will continue as a going concern. Under the going concern assumption, an entity is ordinarily viewed as continuing in business for the foreseeable future with neither the intention nor the necessity of liquidation, ceasing trading or seeking protection from creditors pursuant to laws or regulations.
	The Directors acknowledge that further funding will be required within the next 12 months in order for the Group to continue operating. The Directors are confident that additional external funding should be available if and when required and they have considered the Group's current trading activities, its current funding position and the projected funding requirements for a period at least twelve months from the date of approval of these interim financial statements.
	Taking all of that into account, they consider it appropriate to adopt the Going Concern basis in preparing results for the six months ended 30 June 2014.  However, the need to raise new funds represents a material uncertainty that may cast significant doubt on the Group's ability to continue as a going concern. The assessment has been made based on the Group's anticipated activities which have been included in the financial forecast for the years 2014-2015 which have been updated following the successful placing and open offer which generated approximately £1.78m.
	Based on the above, the directors have formed a judgment that the going concern basis should be adopted in preparing the interim financial information. The interim financial information does not include any adjustments that may be required should the Group be unable to continue as a going concern.  If the Group were unable to continue as a going concern, then adjustments would be necessary to write assets down to their recoverable amounts, non-current assets and liabilities would be reclassified as current assets and liabilities and provisions would be required for any costs associated with closure.
2.	Business segments
	The Group has adopted IFRS 8 Operating segments from 1 October 2009. Per IFRS 8, operating segments are based on internal reports about components of the Group, which are regularly reviewed and used by the Board of Directors being the Chief Operating Decision Maker ("CODM") for strategic decision making and resource allocation, in order to allocate resources to the segment and to assess its performance. The Group's reportable operating segments are as follows:
	a.	Parent company
	b.	Rivara
	c.	Ribolla Basin CBM Assets
	d.	Ksar Hadada
	The CODM monitors the operating results of each segment for the purpose of performance assessments and making decisions on resource allocation. Performance is based on assessing progress made on projects and the management of resources used. Segment assets and liabilities are presented inclusive of inter-segment balances.
	The Group did not generate any revenue during the six month period to 30 June 2014, or in the six month period to 30 June 2013, or the 15 month period to 31 December 2013.
			Parent					Ribolla Basin
			company		Rivara			CBM Assets			Ksar Hadada		Consolidation			Total
			£		£			£			£		£			£
	Six months to 30 June 2014
	Interest revenue		56,072		7,127			8			-		(63,083)			124
	Interest expense		-		(29,830)			(33,254)			-		63,083			(1)
	Depreciation		-		-			3,250			-		-			3,250
	Impairment of
	intangible assets		-		-			4,200,096			-		-			4,200,096
	Income tax		-		-			-			-		-			-
	Loss for the period
	before taxation		(8,455,090)		(78,270)			(4,329,592)			(65,805)		7,486,969			(5,441,788)
	Assets		5,346,366		5,722,985			137,728			276,194		(3,883,831)			7,599,442
	Liabilities		(574,155)		(2,656,288)			(4,299,939)			(728,621)		7,354,404			(904,599)
	Six months to 30 June 2013
	Interest revenue		583		149			2,881			-		-			3,613
	Interest expense		(132)		-			-			-		-			(132)
	Depreciation		-		633			4,032			-		-			4,665
	Impairment of
	intangible assets		-		-			-			-		-			-
	Income tax		-		-			-			-		-			-
	Loss for the period
	before taxation		(20,840)		(34,575)			(119,751)			(2,500)		(390,616)			(568,282)
	Assets		12,496,255		7,015,835			4,505,615			227,468		(11,561,511)			12,683,662
	Liabilities		(265,263)		(3,539,382)			(4,147,284)			(559,144)		7,810,760			(700,313)
	15 months to 31 December 2013
	Interest revenue		155,807		40,133			2,876			-		(196,361)			2,455
	Interest expense		(121)		(111,370)			(84,992)			-		196,361			(122)
	Depreciation		-		1,241			9,577			-		-			10,818
	Impairment of
	intangible assets		-		-			-			-		-			-
	Income tax		-		-			-			-		-			-
	Loss for the period
	before taxation		(789,605)		(1,744,075)			(382,330)			(61,511)		(363,817)			(3,341,338)
	Assets		12,128,214		8,242,367			4,456,656			235,604		(13,335,861)			11,726,980
	Liabilities		(514,288)		(3,810,637)			(4,285,358)			(622,226)		8,425,004			(807,505)
	The geographical split of non-current assets arises as follows:
										United
										Kingdom		Overseas				Total
										£		£				£
	30 June 2014
	Intangible assets									-		5,619,413				5,619,413
	Goodwill									-		-				-
	Property, plant and equipment									7,417		14,073				21,490
	30 June 2013
	Intangible assets									-		10,301,517				10,301,517
	Goodwill									-		450,766				450,766
	Property, plant and equipment									-		17,039				17,039
	31 December 2013
	Intangible assets									-		10,128,364				10,128,364
	Goodwill									-		450,766				450,766
	Property, plant and equipment									1,852		18,031				19,883
3.	Exceptional item - Impairment of intangible assets & goodwill - Ribolla Basin CBM assets
										30 June 2014		30 June 2013				31 December 2013
										£		£				£
	Impairment of goodwill									450,766		-				-
	Impairment of intangible assets									4,200,096		-				-
										4,650,862		-				-
4.	Taxation
	The Group has tax losses available to be carried forward in certain subsidiaries and the parent. With anticipated substantial lead times for the Group's projects, and the possibility that these may therefore expire before their use, it is not considered appropriate to anticipate an asset value for them.
	No tax charge has arisen during the six month period to 30 June 2014, or in the six month period to 30 June 2013, or the 15 month period to 31 December 2013.
5.	Loss per share
	The calculation of basic and diluted loss per share at 30 June 2014 was based on the loss attributable to ordinary shareholders of £5,441,788 (six month period to 30 June 2013: £568,282, 15 month period to 31 December 2013: £3,350,702). The weighted average number of ordinary shares outstanding during the period ending 30 June 2014 and the effect of dilutive ordinary shares to be issued are shown below.
	Contingently issuable shares such as included within the share option scheme have not been treated as dilutive as either the market conditions have not been met at 30 June 2014 or the affect on loss per share would be to reduce the amount due per share.
										30 June 2014		30 June 2013				31 December 2013
										£						£
	Net loss for the period									(5,441,788)		(568,282)				(3,350,702)
	Basic weighted average ordinary shares
	in issue during the period									46,164,527		45,836,867				45,836,867
	Diluted weighted average ordinary shares
	in issue during the period									46,164,527		45,836,867				45,836,867
6.	Goodwill
																Goodwill
																£
	Six month period to 30 June 2014
	Cost
	1 January 2014 and 30 June 2014															450,766
	Amortisation
	1 January 2014															-
	Impairment charge for period															450,766
	30 June 2014															450,766
	Carrying value
	30 June 2014															-
	31 December 2013															450,766
	Six month period to 30 June 2013
	Cost
	1 January 2013 and 30 June 2013															450,766
	Amortisation
	1 January 2013															-
	Impairment charge for period															-
	30 June 2013															-
	Carrying value
	30 June 2013															450,766
	15 month period to 31 December 2013
	Cost
	1 October 2012 and 31 December 2013															450,766
	Amortisation
	1 October 2012															-
	Impairment charge for period															-
	31 December 2013															-
	Carrying value
	31 December 2013															450,766
	The goodwill arises as a result of the acquisition of Independent Energy Solutions srl which contains the Ribolla project.
	The Group's attempts to farm the Ribolla assets out have been unsuccessful, and in light of the uncertainty over the future renewal of the permit, it has been decided to impair the carrying value of the historical investment in Fiume Bruna and Casoni and the goodwill associated with the historical acquisition of Independent Energy Solutions srl.
7.	Other intangible assets
	Development and exploration
						Rivara gas						Ksar Hadada
						storage				Ribolla Basin		exploration
						facility				CBM assets		acreage				Total
						£				£		£				£
	Six month period to 30 June 2014
	Cost
	1 January 2014					5,584,997				4,316,859		1,307,337				11,209,193
	Exchange differences					(219,107)				(169,357)		-				(388,464)
	Additions (net of credits received)					(13,735)				52,594		40,750				79,609
	30 June 2014					5,352,155				4,200,096		1,348,087				10,900,338
	Amortisation
	1 January 2014					-				-		1,080,829				1,080,829
	Impairment charge for period					-				4,200,096		-				4,200,096
	30 June 2014					-				4,200,096		1,080,829				5,280,925
	Carrying value
	30 June 2014					5,352,155				-		267,258				5,619,413
	31 December 2013					5,584,997				4,316,859		226,508				10,128,364
	Six month period to 30 June 2013
	Cost
	1 January 2013					5,356,253				4,105,405		1,298,495				10,760,153
	Exchange differences					278,694				213,610		-				492,304
	Additions					60,934				60,113		8,842				129,889
	30 June 2013					5,695,881				4,379,128		1,307,337				11,382,346
	Amortisation
	1 January 2013					-				-		1,080,829				1,080,829
	Impairment charge for period					-				-		-				-
	30 June 2013					-				-		1,080,829				1,080,829
	Carrying value
	30 June 2013					5,695,881				4,379,128		226,508				10,301,517
	15 month period to 31 December 2013
	Cost
	1 October 2012					5,236,000				4,013,233		1,297,709				10,546,942
	Exchange differences					248,709				190,629		-				439,338
	Additions					100,288				112,997		9,628				222,913
	31 December 2013					5,584,997				4,316,859		1,307,337				11,209,193
	Amortisation
	1 October 2012					-				-		1,080,829				1,080,829
	Impairment charge for period					-				-		-				-
	31 December 2013					-				-		1,080,829				1,080,829
	Carrying value
	31 December 2013					5,584,997				4,316,859		226,508				10,128,364
	The primary intangible assets are all internally generated.
	For the purpose of impairment testing of intangible assets, recoverable amounts have been determined based upon the value in use of the Group's three projects.
	Ribolla Basin CBM assets
	The Group's attempts to farm the Ribolla assets out have been unsuccessful, and in light of the uncertainty over the future renewal of the permit, it has been decided to impair the carrying value of the historical investment in Fiume Bruna and Casoni and the goodwill associated with the historical acquisition of Independent Energy Solutions srl.
	Rivara gas storage facility
	Despite the expected delay, a review of the latest management information and projections shows a net present value significantly in excess of assets and liabilities relating to the project. The main assumptions, which the Directors have assessed as unchanged from the previous period end, indicate that no significant change has arisen on these calculations which would materially impact on the Group.
	The continuing analysis and testing of technical data continues to indicate that the project is feasible.
	The Group continues to work towards, and is confident of, obtaining all the necessary approvals from regulatory authorities. The Group anticipates being able to raise the necessary finance to continue to develop the project.
	Value in use
	Value in use has been calculated separately for the Group's projects. Cash flows are projected for the periods up to the date that the projects are expected to become commercially operational and from then until operations are expected to cease, based upon management's expectations. These dates depend on a number of variables, including the project's technical feasibility, regulatory approval, forecast revenue prices and the associated development and operational costs.
	The projects are expected to generate revenue after five to nine years and to continue doing so for a further 35 years. The Directors consider that projections calculated for a period greater than five years are justified as the projects are still in a development stage.
Registered office
Independent Resources plc
Tower Bridge House, St. Katharine's Way, London E1W 1DD
Email: [e-mail]
Commercial office
1st Floor, 12 Melcombe Place London NW1 6JJ, United Kingdom
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Fax: [phone]
Email: [e-mail]
Technical office
Viale Liegi 41,  00198 Rome, Italy
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Fax: [phone]
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