Q2 2017 CONSOLIDATED FINANCIAL · PDF fileQ2 2017 CONSOLIDATED FINANCIAL STATEMENTS 1. ... No separate statement of comprehensive income has ... initially at their fair values at the

Ithaca Energy Inc. Q2 2017 Financial Statements

Q2 2017CONSOLIDATED FINANCIAL STATEMENTS

1


Consolidated Statement of IncomeFor the three and six months ended 30 June 2017 and 2016

(unaudited)

Three months ended 30 June Six months ended 30 June

Note

Revenue 5

- Operating costs

- Other

- Movement in oil and gas inventory

- Depletion, depreciation and amortisation

Cost of sales

Gross (Loss)/Profit

Exploration and evaluation expenses 10

Gain/(Loss) on financial instruments 25

Administrative expenses 6

Non-recurring Delek takeover costs 6

Foreign exchange

Finance costs 7

Interest income

Share of profit in associate

(Loss) Before Tax

Taxation 23

Profit/(Loss) After Tax

Earnings per share

Basic 22

Diluted 22

The accompanying notes on pages 6 to 19 are an integral part of the financial statements.

3,035 - 3,073 -

23,779

0.06

-

37,943

(7,397)

(56)

(974)

(38,334)

(481)

13,088

No separate statement of comprehensive income has been prepared as all such gains and losses have been incorporated in the

consolidated statement of income above.

(391)

1,338

(10,423)

20,485

4,913

66,848

0.02

6,246

27,002

(11,468)

0.02

(3,223)

6,938

(60,602)(44,082)

(819)(399)

(1,522)

201

(19,047)(9,334)

405

(3,291)(1,835)

(28,274)(33,453)

3,046

10,619

57,761

(68,427)

850

(42,033)

(18,507)

(10,666)

10,990

(801)

(37,384)

(596)

US$'000

24,511

(24,310)

75,182

(68,244)

17,314 20,878

-

US$'000

2017

US$'000

2016

US$'000

20172016

0.03

0.03

(0.03) 0.06

32,614

(0.03)

443

(28,190) (19,776) (42,663)

49

906

(27,746) (21,848) (45,863)

18,083

(5,282) - (6,066) -

20

2


(unaudited)

Note

Current assetsCash and cash equivalents CAS01Accounts receivable 8 CAS02Deposits, prepaid expenses and other CAS04Inventory 9 CAS06Derivative financial instruments 26 CAS10

Non current assets

Long-term receivable 28

Long-term inventory 9

Investment in associate 13 CAS07

Exploration and evaluation assets 10

Property, plant & equipment 11 CAS08

Deferred tax assets

Goodwill 12 CAS11

Total assets

LIABILITIES AND EQUITY

Current liabilities

Trade and other payables 15 CLB01

Contingent consideration 19 CLB06

Short term loan 14

Derivative financial instruments 26 CLB07

Non current liabilities

Borrowings 14 CLB02

Decommissioning liabilities 16 CLB04

Other long term liabilities 17 CLB03

Contingent consideration 19 CLB07

Net Assets

Shareholders' equity

Share capital 20 SEQ01

Share based payment reserve 21 SEQ02

Retained earnings SEQ03

Total equity

The financial statements were approved by the Board of Directors on 10 August 2017 and signed on its behalf by:


1,930,563

(4,329)

(245,257)

(236,928)

(4,000)

1,084,599

383,663

59,922

8,438

18,337

27,075

123,510

1,705,544

(618,566)

743,729

(206,933)

(941,577)

667

27,199

157,912

11,512

27,729

225,019

743,729

(8,650)

(107,428)

(925,695)

25,185

619,207

99,337

(255,108)

770,326

(8,650)

(209,749)

770,326

(108,625)

410,665

215,877

(229)

30 June 31 December

43,908

2017

5,322

US$'000

Consolidated Statement of Financial Position

141,898

ASSETS

Director

2,213

1,951,129

(239,879)

135,249

635,077

-

"Alec Carstairs"

"Les Thomas"

58,780

8,438

US$'000

(598,671)

21,410

1,735,252

Director

28,928

123,510

1,083,521

2016

22,536

-

(15,000) -

3


Consolidated Statement of Changes in Equity(unaudited)

Balance, 1 Jan 2016

Share based payment

Shares exercised

(Loss) for the period

Balance, 30 June 2016

Balance, 1 Jan 2017

Share based payment

Shares issued

Transfer to retained earnings

Profit for the period

Balance, 30 June 2017


-

(14,341)

12,133 - (12,133)

99,337

135,249 770,326 635,077

25,185

23,779

619,207

-

1,289

743,729

-

1,289

US$'000

-

1,529

23,779

24,312617,721

- -

Total

159,382

US$'000

15,870

Share Capital

617,375

-

801,415

-

US$'000 US$'000

1,634

6,246 -

Retained

Earnings

Share based

payment reserve

6,246

1,634

346

22,678 793,189 153,136

346 - -

During the quarter conditions of a cash takeover offer for all the common shares of the Company not owned by Delek Group Ltd.

(“Delek”) or any of its affiliates for C$1.95 per share (the “Offer”) have been satisfied and the Offer has been accepted by holders

of approximately 70.3% of the issued and outstanding common shares, not including the common shares already owned by Delek

prior to the announcement of the Offer. As a result of this transactions all stock option have immediately vested and therefore

there are no outstanding shares at 30 June 2017. As a result the remaining balance of the contributed surplus reserve has been

transferred to retained earnings.

- -

4


Consolidated Statement of Cash FlowFor the three and six months ended 30 June 2017 and 2016

(unaudited) Three months ended 30 June Six months ended 30 June

Operating activities

Loss Before Tax

Adjustments for:

Depletion, depreciation and amortisation 11

Exploration and evaluation expenses 10

Share based payment 20

Loan fee amortisation 7

Revaluation of financial instruments 25

Accretion 7

Bank interest & charges

Share of associate profits

Cashflow from operations

Petroleum Revenue Tax refunded /(paid)

Corporation Tax refunded

Net cash from operating activities

Investing activities

Capital expenditure

Contingent consideration

Loan to associate

Decommissioning 16

Net cash used in investing activities

Financing activities

Proceeds from issuance of shares

Loan (repayment)/ drawdown

Bank interest & charges

Net cash used in financing activities

Currency translation differences relating to cash

Increase / (decrease) in cash & cash equiv.

Cash and cash equivalents, beginning of period

Cash and cash equivalents, end of period


42,663

801

2,081

294

CASH PROVIDED BY (USED IN):

4,154

14,213

(3,073)

US$'000

61,710

2,080

(60,602)

-

331

11,861

81,593

2016

Changes in receivables and payables relating to

investing activities

-

1,040

6,000

3,993

(20,000)(1,925)

(19,547)

(7,397)

(770) (128)

1,378

10,621

819

(14,526)

14,309

25,852

920

16,668

(45,000)

22,536

399

(28,035)(21,055)

27,199

5,199

12,814

(4,000)

(760)

(1,401)

2017

25,852

63

(16,451) (46,055)

(23,331)

220

21,859

(9,987)

(4,662)

5,867

(30,776)

37,384

(44,082)

21,129

2,084

56

-

7,300

(3,223)

Changes in inventory, receivables and payables

relating to operating activities

229

2,294

3,007

19,776

US$'000

28,190

(3,035)

-

(1,604)

-

- 324

31,474

51,588

US$'000

(17,306)

37,235

US$'000

87,077

7,131

346

1,335

35,955

316

(1,338)

(26,124)

75,923

6,009

11,543

346

(52,735)

(6,842)

1,001

(25,953)

(44,238)

1,142

2,138

393

4,567

1,040

-

52,603

(1,401)

-

85,153

2017

22,536

(4,302)

185

- (916)

(2,165)

-

2016

5


1. NATURE OF OPERATIONS

2. BASIS OF PREPARATION

Basis of measurement

Basis of consolidation

Goodwill

Capitalisation

Impairment

The consolidated financial statements are presented in US dollars and all values are rounded to the nearest thousand (US$'000),

except when otherwise indicated.

These interim consolidated financial statements have been prepared in accordance with International Financial Reporting

Standards (IFRS) applicable to the preparation of interim financial statements, including IAS 34 Interim Financial Reporting. These

interim consolidated financial statements do not include all the necessary annual disclosures in accordance with IFRS.

Ithaca Energy Inc. (the “Corporation” or “Ithaca”), incorporated and domiciled in Alberta, Canada on 27 April 2004, is a company

involved in the development and production of oil and gas in the North Sea. The Corporation's registered office is 1600, 333 - 7th

Avenue S.W., Calgary, Alberta, Canada, T2P 2Z1. The Corporation's shares previously traded on the Toronto Stock Exchange in

Canada and the London Stock Exchange’s Alternative Investment Market in the United Kingdom under the symbol “IAE”.

The consolidated financial statements have been prepared on a going concern basis using the historical cost convention, except

for financial instruments which are measured at fair value.

The policies applied in these condensed interim consolidated financial statements are based on IFRS issued and outstanding as of

12 August 2017, the date the Board of Directors approved the statements. Any subsequent changes to IFRS that are given effect

in the Corporation’s annual consolidated financial statements for the year ending 31 December 2016 could result in restatement of

these interim consolidated financial statements.

The condensed interim consolidated financial statements should be read in conjunction with the Corporation’s annual financial

statements for the year ended 31 December 2016.

Business Combinations

Subsidiaries are all entities, including structured entities, over which the group has control. The group controls an entity when the

group is exposed to or has rights to variable returns from its investments with the entity and has the ability to affect those returns

through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the group.

They are deconsolidated on the date that control ceases.

Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the fair value of

the assets acquired, equity instruments issued and liabilities incurred or assumed at the date of completion of the acquisition.

Acquisition costs incurred are expensed and included in administrative expenses. Identifiable assets acquired and liabilities and

contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The

excess of the cost of acquisition over the fair value of the Corporation's share of the identifiable net assets acquired is recorded as

goodwill. If the cost of the acquisition is less than the Corporation's share of the net assets acquired, the difference is recognised

directly in the statement of income as negative goodwill.

The interim consolidated financial statements have been prepared under the historical cost convention, except for the revaluation

of certain financial assets and financial liabilities (under IFRS) to fair value, including derivative instruments.

The interim consolidated financial statements of the Corporation include the financial statements of Ithaca Energy Inc. and all

wholly-owned subsidiaries as listed per note 28. Ithaca has twenty wholly-owned subsidiaries. All inter-company transactions and

balances have been eliminated on consolidation.

Goodwill acquired through business combinations is initially measured at cost, being the excess of the aggregate of the

consideration transferred and the amount recognised as the fair value of the Corporation's share of the identifiable net assets

acquired and liabilities assumed. If this consideration is lower than the fair value of the identifiable assets acquired, the difference

is recognised in the statement of income.

Goodwill is tested annually for impairment and also when circumstances indicate that the carrying value may be at risk of being

impaired. Impairment is determined for goodwill by assessing the recoverable amount of each cash generating unit ("CGU") to

which the goodwill relates. Where the recoverable amount of the CGU is less than its carrying amount, an impairment loss is

recognised in the statement of income. Impairment losses relating to goodwill cannot be reversed in future periods.

6


Interest in joint operations

Revenue

Foreign currency translation

Share based payments

Cash and cash equivalents

Financial instruments

Held-for-trading financial instruments are subsequently measured at fair value with changes in fair value recognised in net

earnings. All other categories of financial instruments are measured at amortised cost using the effective interest method. Cash

and cash equivalents are classified as held-for-trading and are measured at fair value. Accounts receivable are classified as loans

and receivables. Accounts payable, accrued liabilities, certain other long-term liabilities, and long-term debt are classified as other

financial liabilities. Although the Corporation does not intend to trade its derivative financial instruments, they are classified as held-

for-trading for accounting purposes.

The Corporation's interest in joint operations (eg exploration and production arrangements) are accounted for by recognising its

assets (including its share of assets held jointly), its liabilities (including its share of liabilities incurred jointly), its revenue from the

sale of its share of the output arising from the joint operation, its share of revenue from the sale of output by the joint operation and

its expenses (including its share of any expenses incurred jointly).

Oil, gas and NGL revenues associated with the sale of the Corporation’s crude oil and natural gas are recognised when title

passes to the customer. This generally occurs when the product is physically transferred into a vessel, pipe or other delivery

mechanism. Revenues from the production of oil and natural gas properties in which the Corporation has an interest with joint

venture partners are recognised on the basis of the Corporation’s working interest in those properties (the entitlement method).

Differences between the production sold and the Corporation’s share of production are recognised within cost of sales at market

value.

Items included in the financial statements are measured using the currency of the primary economic environment in which the

Corporation and its subsidiaries operate (the ‘functional currency’). The consolidated financial statements are presented in United

States Dollars, which is the Corporation’s functional and presentation currency.

All financial instruments are initially recognised at fair value on the statement of financial position. The Corporation’s financial

instruments consist of cash, restricted cash, accounts receivable, deposits, derivatives, accounts payable, accrued liabilities,

contingent consideration and the liability acquired as part of the Beatrice field acquisition. The Corporation classifies its financial

instruments into one of the following categories: held-for-trading financial assets and financial liabilities; held-to-maturity

investments; loans and receivables; and other financial liabilities. All financial instruments are required to be measured at fair value

on initial recognition. Measurement in subsequent periods is dependent on the classification of the respective financial instrument.

The Corporation has a share based payment plan as described in note 20 (c). The expense is recorded in the consolidated

statement of income or capitalised for all options granted in the year, with the gross increase recorded in the share based payment

reserve. Compensation costs are based on the estimated fair values at the time of the grant and the expense or capitalised

amount is recognised over the vesting period of the options. Upon the exercise of the stock options, consideration paid together

with the amount previously recognised in share based compensation reserve is recorded as an increase in share capital. In the

event that vested options expire unexercised, previously recognised compensation expense associated with such stock options is

not reversed. In the event that unvested options are forfeited or expired, previously recognised compensation expense associated

with the unvested portion of such stock options is reversed.

Under the equity method, investments are carried at cost plus post-acquisition changes in the Corporation's share of net assets,

less any impairment in value in individual investments. The consolidated income statement reflects the Corporation's share of the

results and operations after tax and interest.

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the

transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year

end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the statement of income.

For the purpose of the statement of cash flow, cash and cash equivalents include investments with an original maturity of three

months or less.

Interest income is recognised on an accruals basis and is separately recorded on the face of the statement of income.

Under IFRS 11, joint arrangements are those that convey joint control which exists only when decisions about the relevant

activities require the unanimous consent of the parties sharing control. Investments in joint arrangements are classified as either

joint operations or joint ventures depending on the contractual rights and obligations of each investor. Associates are investments

over which the Corporation has significant influence but not control or joint control, and generally holds between 20% and 50% of

the voting rights.

7


Inventory

Trade receivables

Trade payables

Property, plant and equipment

Oil and gas expenditure – exploration and evaluation assets

Capitalisation

Oil and gas expenditure – development and production assets

Capitalisation

Depreciation

Impairment

Non oil and natural gas operations

Analyses of the fair values of financial instruments and further details as to how they are measured are provided in notes 25 to 27.

Pre-acquisition costs on oil and gas assets are recognised in the consolidated statement of income when incurred. Costs incurred

after rights to explore have been obtained, such as geological and geophysical surveys, drilling and commercial appraisal costs

and other directly attributable costs of exploration and evaluation including technical, administrative and share based payment

expenses are capitalised as intangible exploration and evaluation (“E&E”) assets.

Trade payables are measured at cost.

E&E costs are not amortised prior to the conclusion of evaluation activities. At completion of evaluation activities, if technical

feasibility is demonstrated and commercial reserves are discovered then, following development sanction, the carrying value of the

E&E asset is reclassified as a development and production (“D&P”) asset, but only after the carrying value is assessed for

impairment and where appropriate its carrying value adjusted. If after completion of evaluation activities in an area, it is not

possible to determine technical feasibility and commercial viability or if the legal right to explore expires or if the Corporation

decides not to continue exploration and evaluation activity, then the costs of such unsuccessful exploration and evaluation are

written off to the statement of income in the period the relevant events occur.

Costs of bringing a field into production, including the cost of facilities, wells and subsea equipment, direct costs including staff

costs and share based payment expense together with E&E assets reclassified in accordance with the above policy, are capitalised

as a D&P asset. Normally each individual field development will form an individual D&P asset but there may be cases, such as

phased developments, or multiple fields around a single production facility when fields are grouped together to form a single D&P

asset.

Trade receivables are recognised and carried at the original invoiced amount, less any provision for estimated irrecoverable

amounts.

Inventories of materials and product inventory supplies are stated at the lower of cost and net realisable value. Cost is determined

on the first-in, first-out method. Current oil and gas inventories are stated at fair value less cost to sell. Non-current oil and gas

inventories are stated at historic cost.

For impairment review purposes the Corporation’s oil and gas assets are analysed into cash-generating units ("CGUs") as

identified in accordance with IAS 36. A review is carried out each reporting date for any indicators that the carrying value of the

Corporation’s assets may be impaired. For assets where there are such indicators, an impairment test is carried out on the CGU.

The impairment test involves comparing the carrying value with the recoverable value of an asset. The recoverable amount of an

asset is determined as the higher of its fair value less costs to sell and value in use, where the value in use is determined from

estimated future net cash flows. If the recoverable amount of an asset is estimated to be less that its carrying amount, the carrying

amount of the asset is reduced to the recoverable amount. The resulting impairment losses are written off to the statement of

income.

Computer and office equipment is recorded at cost and depreciated over its estimated useful life on a straight-line basis over three

years. Furniture and fixtures are recorded at cost and depreciated over their estimated useful lives on a straight-line basis over five

years.

All costs relating to a development are accumulated and not depreciated until the commencement of production. Depreciation is

calculated on a unit of production basis based on the proved and probable reserves of the asset. Any re-assessment of reserves

affects the depreciation rate prospectively. Significant items of plant and equipment will normally be fully depreciated over the life

of the field. However, these items are assessed to consider if their useful lives differ from the expected life of the D&P asset and

should this occur a different depreciation rate would be charged.

Transaction costs that are directly attributable to the acquisition or issue of a financial asset or liability and original issue discounts

on long-term debt have been included in the carrying value of the related financial asset or liability and are amortised to

consolidated net earnings over the life of the financial instrument using the effective interest method.

8


Borrowings

Decommissioning liabilities


Taxation

Operating leases

Finance leases

Loan origination fees are capitalised and amortised over the term of the loan. Borrowing costs directly attributable to the

acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get

ready for their intended use or sale, are added to the cost of those assets until such time as the assets are substantially ready for

their intended use of sale. All other borrowing costs are expensed as incurred.

Finance leases that transfer substantially all the risks and benefits incidental to ownership of the leased item to the Corporation,

are capitalised at the commencement of the lease at the fair value of the leased property or, if lower, at the present value of the

minimum lease payments. Lease payments are apportioned between finance charges and reduction of the lease liability so as to

achieve a constant rate of interest on the remaining balance of the liability. Finance charges are recognised in finance costs in the

income statement. A leased asset is depreciated over the useful life of the asset. However, if there is no reasonable certainty that

the Corporation will obtain ownership by the end of the lease term, the asset is depreciated over the shorter of the estimated useful

life of the asset and the lease term.

PRT is accounted for under IAS 12 since it has the characteristics of an income tax as it is imposed under Government authority

and the amount payable is based on taxable profits of the relevant field. Deferred PRT is accounted for on a temporary difference

basis.

The Corporation records the present value of legal obligations associated with the retirement of long-term tangible assets, such as

producing well sites and processing plants, in the period in which they are incurred with a corresponding increase in the carrying

amount of the related long-term asset. The obligation generally arises when the asset is installed or the ground/environment is

disturbed at the field location. In subsequent periods, the asset is adjusted for any changes in the estimated amount or timing of

the settlement of the obligations. The carrying amounts of the associated assets are depleted using the unit of production method,

in accordance with the depreciation policy for development and production assets. Actual costs to retire tangible assets are

deducted from the liability as incurred.

Current income tax

All interest-bearing loans and other borrowings with banks are initially recognised at fair value net of directly attributable transaction

costs. After initial recognition, interest-bearing loans and other borrowings are subsequently measured at amortised cost using the

effective interest method. Amortised cost is calculated by taking into account any issue costs, discount or premium.

Contingent consideration is accounted for as a financial liability and measured at fair value at the date of acquisition with any

subsequent remeasurements recognised either in profit or loss or in other comprehensive income in accordance with IAS 39.

Petroleum Revenue Tax

Deferred tax assets and liabilities are offset only when a legally enforceable right of offset exists and the deferred tax assets and

liabilities arose in the same tax jurisdiction.

Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation

authorities. The tax rates and tax laws used to compute the amounts are those that are enacted or substantively enacted by the

reporting date.

In addition to corporate income taxes, the Group's financial statements also include and disclose Petroleum Revenue Tax (PRT)

on net income determined from oil and gas production.

Deferred income tax

Senior notes are measured at amortised cost.

Deferred tax is recognised for all deductible temporary differences and the carry-forward of unused tax losses. Deferred tax assets

and liabilities are measured using enacted or substantively enacted income tax rates expected to apply to taxable income in the

years in which temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a

change in rates is included in earnings in the period of the enactment date. Deferred tax assets are recorded in the consolidated

financial statements if realisation is considered more likely than not.

Rentals under operating leases are charged to the statement of income on a straight line basis over the period of the lease.

9


Maintenance expenditure

Recent accounting pronouncements

4. SEGMENTAL REPORTING

5. REVENUE


Oil sales REV01

Gas sales REV02

NGL sales REV03

Other income REV04

6. ADMINISTRATIVE EXPENSES


General & administrative EXP01

Non-recurring Delek takeover costs EXP01

Share based payment EXP16

7. FINANCE COSTS


Bank interest and charges

Senior notes interest

Finance lease interest

Non-operated asset finance fees

Prepayment interest

Loan fee amortisation

Accretion

8. ACCOUNTS RECEIVABLE

Trade debtors

Accrued income

9. INVENTORY

Current

Crude oil inventory - current

Materials inventory

Non-current

Crude oil inventory

The non-current portion of inventory relates to long term stocks at the Sullom Voe Terminal.

11,722

146,190

(1,380)

(2,081)

(4,567)

6,172

157,912

2016

27,729

31 Dec

1,861

(745)

67,534

(2,294) (4,154)

2017

157

1,319

US$'000

(702) (782)

(10,423) (19,047)

(1,040)

2017

US$'000

25,868

31 Dec

30 June

43,908

(1,404)

(2,079)

US$'000

8,438

141,898

30 June

2016

(2,084)

(9,334)

(8,414)

23,504

US$'000

US$'000

(45)

(476)

(1,040)

(229)

(11)

US$'0002017 2016

(3,830)

(237)

(7,659)

(2,283)

US$'000

(250)

(6,256)

(4,584)

(1,731)

2017 2016

2016

(18,507)

42,047

24,511 57,761

US$'000

66,214

30 June

US$'000

(504)

(7)

75,684

31 Dec

1,202

(1,131)

US$'000

278

106

(3,291)

33

(1,541)

US$'000

1,861

2017

The Company operates a single class of business being oil and gas exploration, development and production and related activities

in a single geographical area presently being the North Sea.

1,895

54

(1,302)

(1,522)

(294)

US$'000

2017

37,943

5,042

US$'000

75,182

55,534

US$'000

2017

(2,486)

2016

(7,901)

824

31,593

2016

US$'000

2017US$'000

(220)

US$'000

2016

150

US$'000

(5,282) - (6,066) -

(56)

2017 2016

Expenditure on major maintenance refits or repairs is capitalised where it enhances the life or performance of an asset above its

originally assessed standard of performance; replaces an asset or part of an asset which was separately depreciated and which is

then written off, or restores the economic benefits of an asset which has been fully depreciated. All other maintenance expenditure

is charged to the statement of income as incurred.

(331)

New and amended standards and interpretations need to be adopted in the first interim financial statements issued after their

effective date (or date of early adoption). There are no new IFRSs or IFRICs that are effective for the first time for this interim

period that would be expected to have a material impact on the Corporation.

8,438

(2,960)

10


10. EXPLORATION AND EVALUATION ASSETS

At 1 January 2016

Additions

Write offs/relinquishments

Impairment

At 31 December 2016

Additions

Write offs/relinquishments

At 30 June 2016

11. PROPERTY, PLANT AND EQUIPMENT

Development & Production Other fixed

Cost

At 1 January 2016

Additions

At 31 December 2016 and 1 January 2017

Additions

At 30 June 2017

DD&A and Impairment

At 1 January 2016

DD&A charge for the period

Impairment charge for the year

At 31 December 2016 and 1 January 2017

DD&A charge for the period

At 30 June 2017

NBV at 1 January 2016

NBV at 1 January 2017

NBV at 30 June 2017

12. GOODWILL 30 June 31 Dec

Closing balance

13. INVESTMENT IN ASSOCIATES

Investment in FPF-1 and FPU Services

2,541,881

5 59,876 59,871

2,485,416

Oil and Gas assets

(70,521)(271)

3,406 2,482,010

3,411 2,545,292

(1,380,826)

(70,250)

(1,383,370)

2,586,877

27,075

1,259

15,363

Following completion of geotechnical evaluation activity, certain North Sea licences were declared unsuccessful and certain

prospects were declared non-commercial. This resulted in the carrying value of these licences being fully written off to nil with $0.8

million being expensed in the period to 31 June 2017.

(6,802)(6,802) -

US$'000

3,443

(770)

(2,544)

(2,815) (1,460,693)(1,457,878)

32

US$'000

assets

US$'000

28,928

11,223

(801)

1,084,599

1,101,184

596

862 1,102,046

(117)

(1,503,356)

2017

123,510 123,510

There has been an increase of $3.1m in value during the period with the above investment reflecting the Company's share of the

associates' results.

2016

1,083,010

1,084,003

The net book amount of property, plant and equipment includes $27.7 million (31 December 2016: $28.5 million) in respect of the

Pierce FPSO lease held under finance lease.

US$'000

Investment in associates comprises shares, acquired by Ithaca Energy (Holdings) Limited, in FPF-1 Limited and FPU Services

Limited as part of the completion of the Greater Stella Area transactions in 2012.

US$'000

US$'000

30 June

511

$123.5 million goodwill represents $136.1 million recognised on the acquisition of Summit Petroleum Limited ("Summit") in July

2014 as a result of recognising a $136.9 million deferred tax liability as required under IFRS 3 fair value accounting for business

combinations. Absent the deferred tax liability the price paid for the Summit assets equated to the fair value of the assets. $1.0

million represented goodwill recognised on the acquisition of gas assets from GDF in December 2010. As at 31 December 2015 a

non-taxable impairment of $13.6 million was recorded relating to goodwill.

41,553

2,583,434

(42,663)

31 Dec

(42,546)

2017

(2,932)

1,083,521

US$'000

2016

18,337

41,585

Total

(1,500,424)

2,654

US$'000

21,410

11


14. BORROWINGS

31 Dec

Current US$'000 US$'000

Short term loan

Non-current

RBL facility 38004

Senior notes 38002

Long term bank fees

Long term senior notes fees

Bank debt facilities

Senior Reserves Based Lending Facility

Junior Reserves Based Lending Facility

Senior Notes

Delek loan

Covenants

The key covenants in both the Senior and Junior RBLs are:

15. TRADE AND OTHER PAYABLES 30 June 31 Dec

Trade payables

Accruals and deferred income

US$'000

2016

(116,298)

US$'000

(123,581)

(324,918)

(300,000)

30 June 31 Dec

(618,566)

2,282

The Corporation had a Junior Reserved Based Lending ("Junior RBL") Facility of $60 million. As at 30 June 2017, $35 million (31

December 2016: nil) was drawn down under the Junior RBL.

US$'000

(303,075)

2016

(15,000) -

3,666

2,122 2,686

(598,671)

2017

(300,000)

30 June

2017

(96,762)

US$'000

(140,166)

There are no financial maintenance covenants tests under the senior notes.

The Corporation is subject to financial and operating covenants related to the facilities. Failure to meet the terms of one or more of

these covenants may constitute an event of default as defined in the facility agreements, potentially resulting in accelerated

repayment of the debt obligations.

- A corporate cashflow projection showing total sources of funds must exceed total forecast uses of funds for the later of the

following 12 months or until forecast first oil from the Stella field.

- The ratio of the net present value of cashflows secured under the RBL for the economic life of the fields to the amount drawn

under the facility must not fall below 1.15:1

- The ratio of the net present value of cashflows secured under the RBL for the life of the debt facility to the amount drawn under

the facility must not fall below 1.05:1.

2017

The Corporation had $300 million 8.125% senior unsecured notes due July 2019, with interest payable semi-annually. $2.1 million

of loan fees (31 December 2016: $2.7 million) have been capitalised and remain to be amortised.

The Corporation was in compliance with all its relevant financial and operating covenants during the period.

The Company's bank debt facilities are sized at $535 million: a $475 million senior RBL and a $60 million junior RBL. Both RBL

facilities are based on conventional oil and gas industry borrowing base financing terms, with loan maturities in September 2018,

and are available to fund on-going development activities and general corporate purposes. The combined interest rate of the two

bank debt facilities, fully drawn, is LIBOR plus 3.4% prior to Stella coming on-stream, stepping down to LIBOR plus 2.9% after

Stella production has been established.

Security provided against the facilities

The Corporation has a Senior Reserved Based Lending ("Senior RBL") Facility of $475 million. As at 30 June 2017, $268 million

(31 December 2016: $325 million) was drawn down under the Senior RBL. $2.3 million (31 December 2016: $3.7 million) of loan

fees relating to the RBL have been capitalised and remain to be amortised.

The RBL facilities are secured by the assets of the guarantor members of the Ithaca Group, such security including share pledges,

floating charges and/or debentures.

The Senior notes are unsecured senior debt of Ithaca Energy Inc., guaranteed by certain members of the Ithaca Group and

subordinated to existing and future secured obligations.

The term loan from Delek is also unsecured.

As at the 30 June 2017 the Corporation has drawn $15 million of its loan agreement with Delek with interest payable at 3% on

repayment of drawn amounts.

2016

12


(239,879) (236,928)

13


16. DECOMMISSIONING LIABILITIES

Balance, beginning of period

Additions

Accretion

Revision to estimates

Decommissioning provision utilised

Balance, end of period

17. OTHER LONG TERM LIABILITIES

Shell prepayment

BP gas prepayment

Finance lease acquired


18. FINANCE LEASE LIABILITIES

30 June 31 Dec

US$'000 US$'000

Total minimum lease payments

Less than 1 year

Between 1 and 5 years

5 years and later

Interest

Less than 1 year


5 years and later

Present value of minimum lease payments

Less than 1 year


5 years and later

19. CONTINGENT CONSIDERATION

31 Dec

Current US$'000 US$'000

Balance outstanding

Non-current

Balance outstanding

(209,749)

1,338

US$'000

(206,933)

2016

30 June

(4,154)

30 June

2017

2017

(13,212)

(108,625)

US$'000

31 Dec

31 Dec

(14,391)

(12,366)

2016

(3,687)

2017

The contingent consideration related to the acquisition of the Stella field and was paid after first oil.

2016

(911)

(17,206)

The finance lease relates to the Pierce FPSO acquired as part of the Summit acquisition.

(8,679)

(19,824)

(2,595)

(29,304)

2017

US$'000

-

(1,684)

(2,618)

2017

-

The total future decommissioning liability was calculated by management based on its net ownership interest in all wells and

facilities, estimated costs to reclaim and abandon wells and facilities and the estimated timing of the costs to be incurred in future

periods. The Corporation uses a risk free rate of 4.0 percent (31 December 2016: 4.0 percent) and an inflation rate of 2.0 percent

(31 December 2016: 2.0 percent) over the varying lives of the assets to calculate the present value of the decommissioning

liabilities. These costs are expected to be incurred at various intervals over the next 24 years.

The economic life and the timing of the obligations are dependent on Government legislation, commodity price and the future

production profiles of the respective production and development facilities.

2016

30 June

(2,595)

(18,124)

(4,000)

The non-current contingent consideration balance relates to the acquisition of the Vorlich and Austen fields, with an amount

payable upon FDP submission of $5.9 million and subsequent payment of $2.75 million payable due upon defined production

criteria being met.

(8,650) -

US$'000 US$'000

(8,600)

(12,434)

(21,043)

(1,656)

31 Dec30 June

2016

(3,834)

4,228

-

(107,428)

(2,919)

The prepayment balances relate to cash advances under the Shell oil sales agreement and BP gas sales agreement which have

been classified as long-term liabilities as short-term repayment is not due in the current oil price environment. The finance lease

related to the Pierce FPSO acquired as part of the Summit acquisition.

US$'000

(30,199)

(939)

(64,017)(64,930)

27,248

(226,915)

(2,279)

(9,215)

(206,933)

14


20. SHARE CAPITAL

Amount Authorised share capital common shares US$'000

At 30 June 2017 and 31 December 2016 Unlimited -

(a) Issued

The issued share capital is as follows:

Issue Amount common shares US$'000

Balance 1 January 2017

Issued for cash - options exercised

Balance 1 January 2017 and 30 June 2017

(b) Stock options

The following is a summary of stock options as at 31 December 2016.

Wt. Avg. Wt. Avg. Wt. Avg. Wt. Avg.

Life Exercise Life Exercise

(Years) Price * (Years) Price *

1.0 $2.47 0.9 $2.47

1.9 $0.93 1.9 $0.94

$0.40 (C$0.55) 3.0 $0.40 $0.40 (C$0.55) 0.5 $0.40

2.2 $1.10 1.1 $1.72

(c) Share based payment

Risk free interest rate

Expected stock volatility

Expected life of options

Weighted Average Fair Value

21. SHARE BASED PAYMENT RESERVE

30 June 31 Dec

Balance, beginning of period

Share based payment cost

Transfer to share capital on exercise of options

Transfer to retained earnings on closure of scheme


12,239,526 15,870

619,207

425,338,568

Number of

-

413,099,042

635,077

Options granted are accounted for using the fair value method. The cost during the three months and six months ended 30 June

2017 for total stock options granted was $1.0 million and $1.3 million respectively (Q2 2016: $1.0 million, Q2 YTD: $1.7 million).

$0.2 million and $0.3 million were charged through the statement of income for stock based compensation for the three months

and six months ended 30 June 2017 (Q2 2016: $0.2 million, Q2 YTD: $0.3 million), being the Corporation’s share of stock based

compensation chargeable through the statement of income. The fair value of each stock option granted was estimated at the date

of grant, using the Black-Scholes option pricing model with the following assumptions:

For the six months ended 30

June 2017

Number of

For the year ended 31

December 2016

N/A

During the quarter conditions of a cash takeover offer for all the common shares of the Company not owned by Delek Group Ltd.

(“Delek”) or any of its affiliates for C$1.95 per share (the “Offer”) have been satisfied and the Offer has been accepted by holders

of approximately 70.3% of the issued and outstanding common shares, not including the common shares already owned by Delek

prior to the announcement of the Offer. As a result of this transaction all stock option have immediately vested.

$2.46-$2.51

(C$2.53-C$2.71)

N/A

8,358,336

$0.84-$1.01

(C$1.04-C$1.97)

US$’000

22,678

3,058

(551)

25,185

(12,133)

25,185

(14,341)

$0.22

2016

-

1,289

2017

US$’000

N/A

N/A

0.53%

3 years

60%

No. of Options

6,373,136

Options Outstanding

Range of

Exercise Price No. of Options

200,000

4,323,333

$2.46-$2.51

(C$2.53-C$2.71)

6,590,003 3,835,003

Range of

Exercise Price

Therefore as at 30 June 2017 there are no outstanding stock options remaining.

$0.84-$1.01

(C$1.04-C$1.97)

24,413,139

11,450,000

Options Exercisable

15


22. EARNINGS PER SHARE


Wtd av. number of common shares (basic)

Wtd av. number of common shares (diluted)

23. TAXATION


Taxation

24. COMMITMENTS

30 June 31 Dec

Operating lease commitments

Within one year

Two to five years

Capital commitments 30 June 31 Dec

Capital commitments

Capital commitments incurred jointly with other venturers (Ithaca's share)

25. FINANCIAL INSTRUMENTS

2016

30

US$000

424,249,435

2017

32,614

US$000

423,157,137

2016

2016

411,388,441

The calculation of basic earnings per share is based on the profit after tax and the weighted average number of common shares in

issue during the period. The calculation of diluted earnings per share is based on the profit after tax and the weighted average

number of potential common shares in issue during the period.

2017

66,848

411,386,805

The tax benefit of these capital allowances is received by Ithaca as the expenditure is incurred. In recognition of the benefit Ithaca

receives from the additional capital allowances a payment is expected to be made to Petrofac 5 years after legal completion of the

SPA, in accordance with its terms, of a sum calculated at the prevailing tax rate applied to the relevant capital allowances. The

relevant capital allowances are expected to be around $250 million and implies, assuming current tax rates, a payment of

approximately $100 million. The taxation credit above includes a deferred tax credit in the quarter of $2.8 million resulting in a total

related deferred tax asset at 30 June 2017 of $96.3 million.

20162017

27,002

25,280

216 162

-

In accordance with the Stella Sale and Purchase Agreement ("SPA"), Ithaca receives the right to claim a tax benefit for additional

capital allowances on certain capital expenditures incurred by Ithaca and paid for by Petrofac on the Stella project.

2017

US$'000

2016

In addition to the amounts above, in 2015 Ithaca entered into an agreement with Petrofac in respect of the FPF-1 Floating

Production facility whereby Ithaca will pay Petrofac $13.7 million in respect of final payment on variations to the contract, with

payment deferred until three and a half years after fully ramped production is achieved from the Stella field. A further payment to

Petrofac of up to $34 million was initially to be made by Ithaca dependent on the timing of sail-away of the FPF-1. This further

payment was revised to $17 million in Q3 2016. This payment will also be deferred until three and a half years after fully ramped

up production is achieved from the Stella field.

• Level 3 – inputs that are less observable, unavailable or where the observable data does not support the majority of the

instrument’s fair value.

2016

418,906,019

411,389,565 423,937,749

US$'0002017

411,386,243

To estimate fair value of financial instruments, the Corporation uses quoted market prices when available, or industry accepted

third-party models and valuation methodologies that utilise observable market data. In addition to market information, the

Corporation incorporates transaction specific details that market participants would utilise in a fair value measurement, including

the impact of non-performance risk. The Corporation characterises inputs used in determining fair value using a hierarchy that

prioritises inputs depending on the degree to which they are observable. However, these fair value estimates may not necessarily

be indicative of the amounts that could be realised or settled in a current market transaction. The three levels of the fair value

20,485

2017

• Level 2 – inputs other than quoted prices included within Level 1 that are observable, either directly or indirectly, as of the

reporting date. Level 2 valuations are based on inputs, including quoted forward prices for commodities, market interest rates, and

volatility factors, which can be observed or corroborated in the marketplace. The Corporation obtains information from sources

such as the New York Mercantile Exchange and independent price publications.

• Level 1 – inputs represent quoted prices in active markets for identical assets or liabilities (for example, exchange-traded

commodity derivatives). Active markets are those in which transactions occur in sufficient frequency and volume to provide pricing

information on an ongoing basis.

US$'000

18,912

US$000US$000

US$'000

16



Derivative financial instrument asset

Derivative financial instrument liability


Revaluation of forex forward contracts

Revaluation of commodity hedges

Revaluation of interest rate swaps

Realised (loss) on forex contracts

Realised gain on commodity hedges

Realised (loss) on interest rate swaps

Total gain/(loss) on financial instruments

The Corporation has identified that it is exposed principally to these areas of market risk.

i) Commodity Risk


Revaluation of commodity hedges

Realised gain on commodity hedges

Total gain/(loss) on commodity hedges

Derivative Term Volume

July 17 - June 18 bbls $54/bbl

July 17 - June 18 bbls

ii) Interest Risk


Revaluation of interest contracts

Realised (loss) on interest contracts

575,004

1,325,500

(5,278)

Oil collars

Oil puts

(51,588)

2016

Level 2

57,987

(157)

Average price

10,619

US$'000

-

43

2017 2016

-

(21,931)

-

(5,199)

(951)

2016

(229) (229)

(8,650)

-

-

(79,919)

US$'000

2017

10,636

18,824

(157)

-

- - (8,650)

US$'000

Level 3

The following table presents the Corporation’s material financial instruments measured at fair value for each hierarchy level as of

30 June 2017:

Level 1

US$'000

In forming estimates, the Corporation utilises the most observable inputs available for valuation purposes. If a fair value

measurement reflects inputs of different levels within the hierarchy, the measurement is categorised based upon the lowest level of

input that is significant to the fair value measurement. The valuation of over-the-counter financial swaps and collars is based on

similar transactions observable in active markets or industry standard models that primarily rely on market observable inputs.

Substantially all of the assumptions for industry standard models are observable in active markets throughout the full term of the

instrument. These are categorised as Level 2.

2017

15,818

(28,274)

18,135

(33,453)

(3,007)

57,987

15,818

2017

US$'000

Commodity price risk related to crude oil prices is the Corporation’s most significant market risk exposure. Crude oil prices and

quality differentials are influenced by worldwide factors such as OPEC actions, political events and supply and demand

fundamentals. The Corporation is also exposed to natural gas price movements on uncontracted gas sales. Natural gas prices, in

addition to the worldwide factors noted above, can also be influenced by local market conditions. The Corporation’s expenditures

are subject to the effects of inflation, and prices received for the product sold are not readily adjustable to cover any increase in

expenses from inflation. The Corporation may periodically use different types of derivative instruments to manage its exposure to

price volatility, thus mitigating fluctuations in commodity-related cash flows.

56,879

4,913

43

2016

US$'000

7,920

US$'000

(3,007)

(5,182)

-

(157)

52

US$'000

(28,758)

15,818

The below represents commodity hedges in place at the quarter end:

The table below presents the total (loss)/gain on financial instruments that has been disclosed through the statement of

$46.85 - $60.0/bbl*

US$'000

The table below presents the total (loss) on interest financial instruments that has been disclosed statement of income at the

quarter end:

2016

-

US$'000

2017

The table below presents the total gain/(loss) on commodity hedges that has been disclosed through the statement of income at

the quarter end:

US$'000

(79,919)

18,824

(85,153)

(47,582)

-

(5,182)

(17)(4,058)

(47,582)

-

2,213

-

(532)

52

4,913

7,920

7,920

2017 2016

-

-

(3,007)

Total Fair Value

US$'000

-

US$'000 US$'000

2,213

US$'000

* hedged with an average floor price of $46.85/bbl and a celling price of $60/bbl.

-

US$'000

(157)

17


Total (loss) on interest contracts - (105) - (114)

18



Revaluation of foreign exchange forward contracts

Realised (loss) on foreign exchange forward contracts

Total (loss) on forex forward contracts

Accounts payable and accrued liabilities

Other long term liabilities

Borrowings

2016

-

US$'000

(722,297)

(6,228)

-

(17)

Within 1 year

(613,671)

v) Liquidity Risk

1 to 5 years

(17)

The table below presents the total (loss) on foreign exchange financial instruments that has been disclosed through the statement

of income at the quarter end:

US$'000

(239,879)

(239,879)

2017

iv) Credit Risk

The Corporation is exposed to foreign exchange risks to the extent it transacts in various currencies, while measuring and

reporting its results in US Dollars. Since time passes between the recording of a receivable or payable transaction and its collection

or payment, the Corporation is exposed to gains or losses on non USD amounts and on balance sheet translation of monetary

accounts denominated in non USD amounts upon spot rate fluctuations from quarter to quarter.

The following table shows the timing of cash outflows relating to trade and other payables.

The Corporation may be exposed to certain losses in the event that counterparties to derivative financial instruments are unable to

meet the terms of the contracts. The Corporation’s exposure is limited to those counterparties holding derivative contracts with

positive fair values at the reporting date. As at 30 June 2017, exposure is $2.2 million (31 December 2016: $11.5 million).

-

2017 2016

Calculation of interest payments for the RBL Facilities agreement incorporates LIBOR. The Corporation is therefore exposed to

interest rate risk to the extent that LIBOR may fluctuate.

iii) Foreign Exchange Rate Risk

US$'000

(4,590)

US$'000

The Corporation regularly monitors all customer receivable balances outstanding in excess of 90 days. As at 30 June 2017,

substantially all accounts receivables are current, being defined as less than 90 days. The Corporation has no allowance for

doubtful accounts as at 30 June 2017 (31 December 2016: $Nil).

(4,058)

- (532)

US$'000

There were no foreign exchange financial instruments in place at the quarter end.

US$'000

(5,278)

(951)

-

-

There were no interest rate financial instruments in place at the quarter end.

The Corporation’s accounts receivable with customers in the oil and gas industry are subject to normal industry credit risks and are

unsecured. Oil production from Stella, Cook, Broom, Dons, Pierce and Fionn is sold to Shell Trading International Ltd. Wytch Farm

oil production is sold on the spot market. Cook gas is sold to Shell UK Ltd and Esso Exploration & Production UK Ltd. Stella gas is

sold to BP Gas Martketing and Stella NGL's are sold to Teeside Gas & Liquids Procesing Ltd. Prior to cessation of production,

Causeway oil was sold to Shell Trading International Ltd and Topaz gas production was sold to Hartree Partners Oil and Gas.

(108,625)

-

Liquidity risk includes the risk that as a result of its operational liquidity requirements the Corporation will not have sufficient funds

to settle a transaction on the due date. The Corporation manages liquidity risk by maintaining adequate cash reserves, banking

facilities, and by considering medium and future requirements by continuously monitoring forecast and actual cash flows. The

Corporation considers the maturity profiles of its financial assets and liabilities. As at 30 June 2017, substantially all accounts

payable are current.

The Corporation assesses partners’ credit worthiness before entering into farm-in or joint venture agreements. In the past, the

Corporation has not experienced credit loss in the collection of accounts receivable. As the Corporation’s exploration, drilling and

development activities expand with existing and new joint venture partners, the Corporation will assess and continuously update its

management of associated credit risk and related procedures.

The Corporation also has credit risk arising from cash and cash equivalents held with banks and financial institutions. The

maximum credit exposure associated with financial assets is the carrying values.

19


26. DERIVATIVE FINANCIAL INSTRUMENTS

30 June 31 December

US$'000 US$'000

Oil swaps

Oil puts

Oil collars

Gas swaps

Gas puts

Other

27. FAIR VALUES OF FINANCIAL ASSETS AND LIABILITIES

Classification

Cash and cash equivalents (Held for trading)

Derivative financial instruments (Held for trading)

Accounts receivable (Loans and Receivables)

Deposits

Long-term receivable (Loans and Receivables)

Bank debt (Loans and Receivables)


Derivative financial instruments (Held for trading)

Other long term liabilities

Accounts payable (Other financial liabilities)

28. RELATED PARTY TRANSACTIONS

Country of incorporation % equity interest at 30 June

Ithaca Energy (UK) Limited Scotland 100% 100%

Ithaca Minerals (North Sea) Limited Scotland 100% 100%

Ithaca Energy (Holdings) Limited Bermuda 100% 100%

Ithaca Energy Holdings (UK) Limited Scotland 100% 100%

Ithaca Petroleum Ltd England and Wales 100% 100%

Ithaca Causeway Limited England and Wales 100% 100%

Ithaca Gamma Limited England and Wales 100% 100%

Ithaca Alpha (NI) Limited Northern Ireland 100% 100%

Ithaca Epsilon Limited England and Wales 100% 100%

Ithaca Delta Limited England and Wales 100% 100%

Ithaca Petroleum Holdings AS Norway 100% 100%

Ithaca Technology AS Norway 100% 100%

Ithaca AS Norway 100% 100%

Ithaca Petroleum EHF Iceland 100% 100%

Ithaca SPL Limited England and Wales 100% 100%

Ithaca Dorset Limited England and Wales 100% 100%

Ithaca SP UK Limited England and Wales 100% 100%

Ithaca Pipeline Limited England and Wales 100% 100%

Burstall Winger Zammit LLP 2017 - 240

2016 - -

Delek Group Limited 2017 - -

2016 - -

- (15,000)

-

Transactions between subsidiaries are eliminated on consolidation.

Carrying

(108,625)

(239,879)

US$'000

(108,625)

Purchases

The following table provides the total amount of transactions that have been entered into with related parties during the quarter

ending 30 June 2017 and 30 June 2016, as well as balances with related parties as of 30 June 2017 and 31 December 2016:

(229)

5,322

Carrying Amount

2017

58,780

141,898

Fair Value

(8,650)

22,536

US$'000

31 December 2016

US$'000

2017

(107,428)

141,898

5,322

(239,879)

(8,650)

(613,671)(613,671)

(229)

58,780

Sales

US$'000US$'000 US$'000

Accounts

Payable

Accounts

Receivable

(38)

-

1,984

1,146

The consolidated financial statements include the financial statements of Ithaca Energy Inc and the subsidiaries listed in the

following table:

2016

17

7,786

(1,797)

22,536

Fair Value

30 June 2017

-

Financial instruments of the Corporation consist mainly of cash and cash equivalents, receivables, payables, loans and financial

derivative contracts, all of which are included in these financial statements. At 30 June 2017, the classification of financial

instruments and the carrying amounts reported on the balance sheet and their estimated fair values are as follows:

2,213 2,213

-

13 -

157,912

27,199

157,912

(2,422)

(12,650)(12,650)

59,922

(618,566)

(4,329)(4,329)

(236,928)

667

27,199

(236,928)

11,512 11,512

667

59,922

(618,566)

(107,428)

(110)

3,709

24

7,183

838

-

2016

-

20


Loans to related parties Amounts owed from related parties

FPF-1 Limited

FPU Services Limited

29. SEASONALITY

The effect of seasonality on the Corporation's financial results for any individual quarter is not material.

2016

US$'000

30 June 31 Dec

58,731

2017

US$'000

49 46

59,876

21

Documents

Q2 2017 CONSOLIDATED FINANCIAL · PDF fileQ2 2017 CONSOLIDATED FINANCIAL STATEMENTS 1. ... No separate statement of comprehensive income has ... initially at their fair values at the