Financial Risks

Financial security, cost management and funding options are critical to business success.

Risk Description of risk Control Responsibility Change
(2015 on 2014)
Inability to fund exploration work programmes
  • Liquidity and inability to deliver the business plan.
  • Gas discoveries may require the Group to invest in LNG development projects which require long lead times and material investment in receipt, processing and transportation infrastructure and the marketing of LNG.
  • The Group’s business will require significant capital expenditure and the future expansion and development of its business could require future debt and equity financing. The future availability of such funding is not certain.
  • Revenues, profitability and cash flows concentrated in a small number of producing assets.
  • The Group may face the possibility of future decommissioning costs that it cannot accurately predict.
  • Regular review of cash flow, working capital and funding options, and prudent approach to budgeting and planning, to ensure sufficient capital to meet commitments.
  • Effective portfolio management via farm outs /asset sales as appropriate.
  • Budget focused on high and medium ranked assets /projects to deliver value creation and to ensure the Group can live within its means.
  • A formalised annual budget process and ongoing monthly reviews and analysis of actuals.
  • Board approval of Annual Work Programme.
Chief Financial Officer