annual report 
and accounts 201 4
ophir energy plc annual report and accounts 2014 ophir energy creates value by finding resources 
and then monetising them at the appropriate 
time the group has an extensive and diverse 
portfolio of assets in africa and asia and is listed 
on the london stock exchange ftse 250
read more at  
ophirenergycom
review of operations 
page 22
ophir diversifies funding 
model through acquisition  
of salamander energy
during 2014 ophir agreed to acquire salamander energy  
this acquisition provides ophir with an asian operating platform 
with a cash generative production base that is resilient at low oil 
prices and will part fund the resource finding business  strategy for growth 
page 12
business at a glance 
page 22
contents
financial statements 95
independent auditor’s report 95
consolidated income statement and  
statement of comprehensive income 98
consolidated statement of financial position 99
consolidated statement of changes in equity 100
consolidated statement of cash flows 101
notes to the financial statements 102
statement of directors’ responsibilities  
in relation to the company financial statements 132
company statement of financial position 133
company statement of changes in equity 134
company statement of cash flows 135
notes to the financial statements 136
supplementary information 155
shareholder information 155
glossary 158
strategic report 2
overview 
financial and operational highlights in 2014 2
market overview 4
business model 6
chairman’s statement 8
strategy 
chief executive’s review  10
strategy and key performance indicators 12
principal risks and uncertainties 18
performance
review of operations 22
financial review 34
corporate responsibility 38
 
governance report 46
corporate governance introduction 46
board of directors 48
corporate governance report 50
report of the audit committee 56
report of the corporate responsibility committee 61
report of the nomination committee 64
directors’ report 66
directors’ remuneration report 
 chairman’s annual statement on remuneration 69
 directors’ remuneration policy 71
 annual report on remuneration 80
responsibility statement of the directors  
in respect of the annual report and accounts 94
statement of directors’ responsibilities in relation to  
the group financial statements and annual report 94
1 annual report and accounts 2014  11
11 exploration and appraisal 
wells drilled in 2014 six of  
which were successful
180 mscfd
fortuna2 drill stem test 
exceeded expectations  
with gas flowing at an  
implied unconstrained  
rate of 180 mscfd
1288 billion
completed the sale of a 20 
interest in tanzania blocks 1 
3 and 4 to pavilion energy  
for 1288 billion
1031 mmboe
net contingent resource  
at year end 2014
 includes a 38 million amount that is payable at fid
ophir delivered another successful year operationally ending 2014 
with net contingent resources of 1031 mmboe the company 
demonstrated the value it has created to date with the partial 
monetisation of its interests in tanzania for 1288 billion  
the reported net profit for the year was 548 million reflecting 
asset impairments and exploration writeoffs 
 includes a 38 million amount that is payable at fid
ophir energy plc 2
financial and operational  
highlights in 2014 07
ltif rate of 07 per million  
man hours worked
134 per boe
threeyear average  
finding costs
548 million
posttax profit of 548 million
1 17 billion
cash and cash investments  
as at year end 2014
 includes 295 million of shortterm investments
strategic report
governance 
report
financial  
statements
supplementary 
information
overview
strategy
performance
3 annual report and accounts 2014 0
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service sector
upstream oil and gas companies have generally responded to the 
decline in the oil price by reducing capital expenditure especially on 
exploration and appraisal activity we have already seen this feed 
through to a reduction in service costs as rig utilisation and demand 
for seismic vessels contracts in west africa for example deepwater 
rig utilisation rates have fallen from 89 to 84 generally rig utilisation 
is expected to fall further in 2015 as 40 of floating rig fleets will come 
off contract between q4 201 5 and q2 2016 floating rig rates have fallen 
by around 30 already and are expected to come under further pressure 
seismic costs have already dropped dramatically ophir has experienced 
this in myanmar where we were able to contract a vessel for an offshore 
3d survey in 1q 2015 for 70 less than the rate we were quoted during 
our scoping work in early 2014 with a limited number of companies 
pursuing new offshore exploration acreage we estimate prices staying 
at this level for the immediate future
ma activity across the sector is expected to increase as more 
companies are forecast to have balance sheets that come under 
pressure we are seeing companies prioritise capex restraint and  
cost reduction over new business activities this has led to a marked 
fall in the competition for new licences
commodity prices
following a three year period where brent crude oil prices have been 
relatively stable the end of 2014 saw the brent price fall from 97  
per barrel at the end of september to 57 per barrel at the end of the 
year this trend continued into early 2015 with brent prices closing at 
a low of 49 per barrel on 13 january before recovering somewhat  
to 54 per barrel on 17 march
the forward futures curve highlights market expectations that the brent 
price will recover in the coming years with current expectations being 
for a brent price of 58 per bbl in 2015 rising to 68 per bbl in 2017  
lng contract pricing especially in asian markets is still predominantly 
linked to oil prices and this is expected to continue however with the 
increase in us shale gas other benchmarks such as henry hub are 
more frequently being used to determine lng pricing going forwards 
asian and european spot lng prices are now at similar levels
local markets
asia is an important demand centre for ophir as the most likely 
destination for sales of lngflng from africa and also post the 
acquisition of salamander energy the region where we will be selling 
our produced barrels south east asian gdp growth remains strong 
and is forecast to grow by 56
1
 in 2015 a global recovery is expected 
to boost exports from the region keeping interest rates low which will 
provide a further boost to demand this in turn will lead to asian 
energy demand continuing to grow strongly
in ophir’s more traditional areas of operation the main event of note 
is the tanzanian election which is expected to be held late in 2015 
whilst all parties are supportive of the nascent oil and gas industry  
it is possible that as we move nearer to the elections any decisions 
that require cabinet ratification may be delayed 
 
oil prices fell significantly towards the end of 2014 this has 
resulted in downward pressure on the service sector which is 
reducing ophir’s cost of doing business ophir is always focused  
on ensuring that any exploration success is commercial and  
can be monetised in the prevailing oil price environment 
deepwater rig rates
1 source imf regional economic outlook update october 2014 
4 ophir energy plc
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ma
as a consequence of the fall in commodity prices a number of 
independent upstream ep companies have seen their balance 
sheets come under pressure as one of the few companies with  
a strong balance sheet we are observing a marked increase in the 
number of ma opportunities if the current oil price environment 
extends throughout 2015 then we would expect the number of 
distressed sellers to increase further this will create opportunities  
for well capitalised ep companies to create value through  
selective acquisitions 
exploration 
there has been a marked reduction in the number of international 
ep companies looking to acquire new exploration acreage as the 
industry focuses on cost management in the middle of the last 
decade fuelled by a combination of rising commodity prices and  
the ease of access to capital markets exploration activity increased 
dramatically this resulted in increased competition in licensing rounds 
where signature bonuses would be high and work programmes would 
typically involve a commitment to drill a number of firm exploration 
wells the cost of acquiring exploration acreage is now realigning to 
reflect the reduced levels of competition whilst the risk profile of the 
rocks remains constant the cost of assessing those risks has fallen 
considerably signature bonuses have reduced commitments are 
generally for seismic only and there is an opportunity to abandon  
the licence before having to commit to drilling and service costs  
have reduced dramatically it is therefore an opportune time to be 
acquiring acreage to provide optionality in the portfolio for potential 
future exploration drilling 
lng
the fall in commodity prices has raised questions about the viability  
of reaching fid for many lng projects ophir’s lngflng projects  
are more resilient than many of the large greenfield lng projects due 
to relatively low cost breakeven economics asian demand for lng is 
still growing according to a 2014 report by the international energy 
agency iea titled “the asian quest for lng in a globalising market” 
between now and 2020 asian gas demand will increase by 250 billion 
brent and wti oil price
business model  
page 6
cubic metres bcm and new lng supply is only expected to total 
150 bcm the pricing model is evolving in response to the potential for 
us shale exports with henry hub pricing being used more frequently 
as a benchmark with henry hub prices currently around 35 per 
mbtu the cost of landed us lng into east asia is now around 10  
to 12 per mbtu the iea report goes on to state that the total cost 
through the lng chain is lowest for east africa asia is important as  
it is the most likely end user of east african gas and also as the report 
also highlights many asian companies are increasingly investing in  
the upstream part of african lng projects with east africa highlighted 
as potentially having the strongest relative investment 
in summary demand is strong as asian buyers seek diversity and 
security of supply and east african gas provides asian buyers with  
a cost competitive source of future supply 
5 annual report and accounts 2014
strategic report
overview
strategy
performance
governance 
report
financial  
statements
supplementary 
information return to
shareholders
cash
exploration
1
development
2
production
3
•  exploration is focus for
 creation of shareholder value
•  unique position to deliver 
 high graded portfolio due  
 to strong balance sheet and 
 minimal well commitments
• self funded 
 development activity 
• minimal existing capital 
 will be deployed to 
 development activity
• production is a  
 ﬁnancing stream 
 for ea activity
• reserves replacement 
 and production are 
 not a key metric
•  assets must break 
 even at low oil price
ophir is big exploration and little production
our operational focus is on the exploration and appraisal  
part of the industry cycle which typically drives the highest 
return on investment for shareholders we have added 
producing barrels as a means of generating cash flow  
to fund the resource finding part of our business
the asset life cycle and company’s model is summarised in 
the chart opposite and in more detail in the following pages 
as a prospect or play is matured through the process its 
potential value increases especially if a commercial discovery 
is made but this comes with associated costs which 
generally rise as we move from prospectlicence capture 
through analysis and eventually into the exploration phase 
it is management’s responsibility to manage the riskreward 
profile at each stage to ensure that shareholders’ capital is 
deployed efficiently to maximise returns
 1 0 3 1 mmboe
net 2c contingent resources  
at year end
150 million
carrying cost of lngflng  
projects to fid
 15
commitment spend as a percentage 
of 2015 capex
ophir does not think like a traditional full cycle ep
6 ophir energy plc
business model return to
shareholders
cash
exploration
1
development
2
production
3
•  exploration is focus for
 creation of shareholder value
•  unique position to deliver 
 high graded portfolio due  
 to strong balance sheet and 
 minimal well commitments
• self funded 
 development activity 
• minimal existing capital 
 will be deployed to 
 development activity
• production is a  
 ﬁnancing stream 
 for ea activity
• reserves replacement 
 and production are 
 not a key metric
•  assets must break 
 even at low oil price
ophir is big exploration and little production
ophir does not think like a traditional full cycle ep equatorial guinea our business model in action
1 exploration
ophir entered equatorial guinea in 2006  
it then utilised existing 3d seismic survey 
this seismic survey was used to mature a 
prospect inventory for drilling
in 2008 the first gas discovery fortuna  
was made ophir has made six discoveries  
in block r finding 34 tcf of prospective  
and contingent resource in 2014 the first  
drill stem test was conducted on the  
fortuna discovery which flowed at an  
implied unconstrained rate of 180 mscfd
in 2014 the commercial framework of the 
project was clarified revised fiscal terms were 
signed with the government and an mou was 
signed for the midstream part of the project
2 development 
the project is expected to enter the feed 
stage in 2015 with fid at some point in  
2016 at this point development activity  
will start to accelerate
3 production 
first production is currently envisaged in 2019
ophir’s activities in equatorial guinea demonstrate the 
success of the company’s strategy and business model  
and the value that it can potentially create for shareholders 
review of operations 
page 22
7 annual report and accounts 2014
strategic report
overview
strategy
performance
governance 
report
financial  
statements
supplementary 
information 2014 was challenging for the upstream oil and gas sector a 50  
reduction in the oil price to a low for brent of 57 33 meant the  
sector remained out of favour with generalist investors despite this  
ophir successfully delivered on a number of key objectives 
a major achievement in 2014 was the 
completion of the sale of a 20 interest in 
our lng assets in tanzania to pavilion energy 
of singapore for a price of 1288 billion 
following the pavilion energy transaction  
our financial position is the strongest it has 
ever been ophir is well placed to navigate 
this period of lower commodity prices and 
utilise its financial strength to emerge from 
the downturn as a larger stronger and  
better balanced company
the completion of the salamander energy 
acquisition is evidence of this this has moved 
ophir a step closer to our goal of a selfsustaining 
funding model it also brings into the group  
a wellbalanced asian portfolio of high quality 
assets with upside and a platform for future 
growth in the region on behalf of the board 
i would like to welcome our new employees  
in asia to ophir we look forward to working 
together to unlock significant value from the 
expanded portfolio
health and safety
ophir operated two deepwater drilling rigs in 
tandem for a large part of 201 4 testing our ability 
to complete parallel operations whilst adhering to 
the highest standards of health and safety i am 
delighted that we completed these operations 
with only one minor lost time incident this is a 
clear testament to ophir’s commitment to health 
safety and the environment ophir also places  
a strong emphasis on maintaining excellent 
relationships with local communities and 
amongst other activities continues to support 
sustainable corporate responsibility cr 
programmes in the countries in which it operates 
people
the ophir board conscious of the changing 
environment restructured the organisation  
in late 2014 both to reduce cost and to ensure 
it was appropriately resourced to deliver its key 
projects this process resulted in the decision to 
reconfigure the board which led to lisa mitchell 
stepping down as chief financial officer  
and dennis mcshane stepping down from 
the position of strategy director i would  
like to reiterate the board’s thanks to lisa 
and dennis for their contributions to ophir  
and wish them every success in the future 
as part of the review process we were 
delighted to appoint bill higgs to the role  
of chief operating officer bill has more  
than 25 years’ experience in the industry 
much of it spent with chevron corporation
following the completion of the salamander 
energy acquisition dr carol bell joined us  
as an independent nonexecutive director 
carol served on salamander’s board from 
2012 until 2015 and i am very pleased to 
welcome her to the board 
lastly i should like to thank john lander who 
retired from the board on 28 january 2014 
john joined the board in 2008 and latterly 
had been chairman of the remuneration 
committee from 2011 his contribution has 
been much appreciated
nicholas smith 
chairman
 includes a 38 million amount that is payable at fid
8 ophir energy plc
chairman’s statement nicholas smith
chairman
dr nicholas cooper
executive director and chief executive ocer
dr william bill higgs
executive director and chief operating ocer
ronald blakely
senior independent nonexecutive director
alan booth
independent nonexecutive director
vivien gibney
independent nonexecutive director
lyndon powell
independent nonexecutive director
william bill schrader
independent nonexecutive director
r n
n r a
dr carol bell
independent nonexecutive director
chandrika kher
company secretary and committees’ secretary
c r
indicates chairman of committee
audit committee
corporate responsibility committee
 appointed to the board on 2 march 2015
nominations committee
remuneration committee
technical advisory committee
governance
the board accords the highest importance  
to corporate governance matters and  
during 2014 we completed a review of our 
governance arrangements this resulted in 
updated terms of reference for the board 
committees and a number of key policies 
have been refreshed to ensure we uphold the 
highest ethical standards we also completed 
a review of our board evaluation process 
more details on these changes can be found 
in the corporate governance section of our 
annual report
nicholas smith
chairman
board of directors and officers
9 annual report and accounts 2014
strategic report
overview
strategy
performance
governance 
report
financial  
statements
supplementary 
information
board of directors 
page 48 our business model
ophir’s model for value creation is through 
the exploration and appraisal phases of the 
ep cycle and through monetising assets  
at the appropriate time to capture optimum 
value for shareholders simply put our job  
is to find resources for the minimal capital 
outlay and then to monetise them for the 
highest possible price 
in 2014 we took the decision in consultation 
with major shareholders to move towards 
sustainability a key part of this financing 
model is the addition of production assets 
which generate cash flow to fund exploration 
and appraisal activity the acquisition of 
salamander was the first step towards 
achieving this goal
strategy a point of 
differentiation
our strategy has three key components
• value creation through exploration
• active portfolio management
• disciplined approach to capital allocation 
and returns
the pavilion energy transaction is an example 
of the first two elements of this strategy  
it demonstrated the ability of the company  
both to find resource and monetise it in this 
case creating a return on investment of 45x 
a proportion of the funds generated by this 
transaction have enabled us to act counter
cyclically adding new exploration acreage to  
the portfolio with a low level of commitment 
spending that provide a series of options for 
future drilling we also exited a number of 
licences that did not have the potential to deliver 
material returns to shareholders in the near term
dr nick cooper 
chief executive 
officer
the acquisition of salamander energy 
completed in march 2015 this diversifies  
our source of funding through the addition  
of cash flow and also by adding a prudent 
level of debt to the balance sheet 
finally we maintain extreme discipline in 
capital allocation every dollar we spend must 
have the potential to deliver a significant return 
to shareholders in a low oil price environment 
alongside this we have reviewed our cost  
base and believe we can make savings of 
250 million over the next two years
operations
another major achievement in 2014 was 
the progress made with the flng project in 
equatorial guinea having hit all of the key 
project milestones for 2014 the project has 
now been significantly derisked and a clear 
commercial framework established we are 
confident of making further progress in 2015 
when we expect to commence the upstream 
and midstream feed projects 
drilling performance and  
new acreage 
in 2014 ophir undertook its busiest ever drilling 
campaign and participated in 1 1 deepwater 
wells of which eight we operated although 
the fivewell exploration programme in gabon 
and in blocks 7 and east pande tanzania 
was disappointing we were successful in our 
remaining six exploration and appraisal wells 
in equatorial guinea and tanzania ophir’s 
three year finding and drilling costs rose from 
089boe to 134boe and the company 
retains a healthy 66 success rate with 
exploration and appraisal drilling
despite a profoundly challenging period for the ep sector  
ophir delivered a number of milestones during 2014 foremost 
amongst these was the completion of the divestment of a  
20 interest in blocks 1 3 and 4 in tanzania for 1288 billion  
the pavilion transaction provided ophir with 
one of the strongest balance sheets in the 
international ep sector and positioned it to 
take advantage of the opportunities presented 
by the industry downturn in early 2015 we 
have taken steps to further strengthen our 
financial liquidity by significantly reducing 
capex from previous levels 2015 capex is 
now forecast at between 250 million and 
300 million 2014 580 million of which 
only approximately 35 million is committed 
exploration expenditure highlighting our 
financial flexibility ophir has the strength 
to emerge from the current period of low oil 
prices as a significantly larger stronger and 
better balanced company 
 includes a 38 million amount that is payable at fid
10 ophir energy plc
chief executive’s review ophir’s strategy for 
growth overview 
vision
ophir’s vision is to be the leading 
international oil and gas exploration 
and production company   
the key elements 
of the strategy are 
value creation 
through 
exploration
active 
portfolio
management 
focus on 
capital 
allocation 
and returns
a key focus of the past year has been to 
rebuild ophir’s exploration portfolio as we 
position the company for the next phase  
of drilling during 2014 ophir added a total 
of 47000 square kilometres in acreage 
across four countries there are no well 
commitments across this acreage meaning 
ophir will be able to offer shareholders access 
to a highgraded exploration portfolio of 
world class potential with only prospects  
we truly believe can deliver commercial 
returns being drilled
outlook
a dramatic fall in the oil price approaching 
50 from its high point in the past year has 
resulted in a significant scaling back of capex 
budgets overhead costs and activity levels 
across the ep sector ophir has similarly 
prioritised its capital expenditure to protect 
its balance sheet and reduce its cost 
structure as a consequence of the sector
wide reduction in activity service costs have 
fallen significantly and we expect this trend  
to continue ophir is selectively exploiting  
this shift in the market seismic costs have 
now dropped to a third of 2014 prices and  
we commenced 3d acquisition in myanmar 
in february 2015 where we have been able 
to triple the size of the survey for the same 
cost as originally budgeted 
201 5 will see ophir continue to progress its  
two lng projects in tanzania and equatorial 
guinea both of these are presently scheduled 
for fid in 201 7 and with drilling behind us  
and construction not commencing until  
after fid these projects have low capital 
requirements with only 1 50 million of capital 
expenditure through to fid we can continue  
to push both projects forward whilst also 
maintaining capital discipline 
the salamander business is now being 
integrated thereby building a stronger larger 
and better balanced company whilst 2015 
will not see the levels of exploration drilling 
that we undertook in 2014 we shall be 
investing and analysing our preexisting and 
new acreage at these low oil prices there is 
rightly a focus on capital discipline and cost 
management however whilst the risk profiles 
of the world’s reservoir rocks remain constant 
the cost of assessing that risk via exploration 
has fallen considerably in recent months 
with our strong balance sheet and with  
the salamander transaction delivering a 
more sustainable business model ophir is 
exceptionally placed to selectively explore 
when most others are unable it is our 
ambition to build the business further over 
the next 12 to 24 months exposing our 
shareholders to material value creation  
at a markedly lower cost
dr nick cooper
chief executive officer
11 annual report and accounts 2014
strategic report
governance 
report
financial  
statements
supplementary 
information
overview
strategy
performance vision 
ophir’s vision is to be  
the leading international  
oil and gas exploration  
and production company 
strategy 
ophir is focused on  
finding resource and 
monetising it to create 
value for shareholders  
value 
creation 
through 
exploration
active 
portfolio 
management
focus on 
capital 
allocation 
and returns
key elements of the strategy
• building a series of options for future 
drilling acquiring new acreage in the 
bottom of the cycle with no drilling 
commitments mature and high grade 
these plays drilling only those that 
offer shareholders material returns  
on investment
• transacting at the most appropriate 
time to create value for shareholders
• realising value from existing assets 
and adding new assets to the portfolio 
that have ability to generate material 
returns on capital employed
• target is to derisk the business model 
through funding core exploration 
activity from operating cash flow 
apply prudent levels of debt to 
development and production activity 
and preserve balance sheet strength 
and flexibility
• only allocate capital to highest return 
opportunities following rigorous risk 
reward analysis we are focused on 
cash balances and cost management 
and will seek to manage the risk profile 
through farmouts exits etc
strategy in action 
page 14 
12 ophir energy plc
a clear strategy to create  
explorationled growth 2012
2013
2014 112
119
86 2012
2013
2014 134boe
089boe
065boe
2012
2013
2014 1031
1256
1002
principal risks  
and uncertainties 
page 18
lost time incident frequency rate ltif incidentsmillion manhours work
07
ophir energy – ltif 2014 2013 2012
average number of employees and contractors 445 197 108
total manhours worked 1462332 522056 307161
ltis 1 1 0
ltif rate incidentsmillion manhours work 07 19 0
we continue to measure our success on the  
resource we add the ability to achieve this at  
economic rates and to do it as safely as possible 
2c contingent resources mmboe
1031 mmboe
2014 threeyear average finding cost
134boe
classification 
the basis of the finding cost calculation is 
straightforward expenditure on exploration and 
appraisal activity is divided by contingent resources 
added in the year this number increased in 2014 
relative to previous years as we were not successful  
with any of our play opening wells however this  
rate still compares favourably to our international  
peer group 
staff turnover
112
classification 
the rate of turnover relates to employees who  
have left the company voluntarily during the year  
the figure excludes employees who left as a direct 
result of redundancy or dismissal on the grounds  
of poor performance
business impact 
turnover rates were slightly lower than in the previous 
year turnover has remained within manageable levels 
and has not had a negative impact upon technical 
disciplines recruitment levels remained consistent 
across all areas of the business ophir continues to be 
able to attract high calibre staff
outlook 
the company aims to monitor and reduce turnover 
rates and will continue to provide highly competitive  
pay and benefits to attract and retain key personnel
the health safety and welfare of people working for  
and on behalf of ophir’s business underpins everything 
the company does ophir’s health and safety culture  
is based on individual responsibility and commitment  
from the very top of the organisation
accountability rests with every employee including 
management and senior executives who uphold their 
obligations through the active management of ophir’s 
health and safety agenda
performance 
we saw a substantial increase in manhours worked 
during 2014 as ophir operated two deepwater rigs 
despite this increase in manhours there was only one 
minor lost time incident lti staying safe requires 
vigilance effort and investment at all levels of the 
organisation and is testament to everyone’s quality  
and professionalism
the statistics include contractors as well as employees
ophir’s net 2c contingent resources reduced year  
on year due to the sale of a 20 interest in the  
group’s interest in blocks 1 3 and 4 in tanzania to 
pavilion energy this transaction saw 461 mmboe  
of contingent resource sold for 1288 billion 
the group added 97 mmboe of contingent resource 
through the drillbit in 2014 following successful 
appraisal drilling in equatorial guinea and tanzania 
the chart shows the company’s net resources at 
31 december 2012 2013 and 2014 assuming the 
governments exercise their backin rights in every case 
key performance  
indicators
13 annual report and accounts 2014
strategic report
governance 
report
financial  
statements
supplementary 
information
overview
strategy
performance value creation 
through exploration
• building a series of options for future 
drilling acquiring new acreage in  
the bottom of the cycle with no drilling 
commitments mature and high grade 
these plays drilling only those that  
offer shareholders material returns  
on investment
what we did in 2014
• we more than doubled the exploration 
acreage in the portfolio during 2014
• we captured the largest offshore 3d 
survey in africa shooting 8500km
2
 
offshore gabon during 2h 2014
• completed 3d seismic survey  
in the seychelles
• we drilled three wells in gabon which 
although they did not deliver a commercial 
success were farmed out meaning ophir 
reduced its financial exposure to the wells
what we will do in 201 5
• complete a 10000km
2
 3d seismic 
 survey in myanmar
• process and interpret 3d data from  
gabon and seychelles surveys
• complete a multiwell exploration 
programme in the g450 block  
gulf of thailand
• capture 2d seismic in bangkanai  
and west bangkanai pscs kerendan  
area indonesia
• complete a 3d seismic survey in eastern 
indonesia over a number of large prospects 
identified on 2d seismic 
14 ophir energy plc
strategy in action active portfolio 
management
• transacting at the most appropriate 
time to create value for shareholders
• realising value from existing assets 
and adding new assets to the portfolio 
that have ability to generate material 
returns on capital employed
what we did in 2014
• we completed the sale of a 20 interest in 
blocks 1 3 and 4 in tanzania where we have 
drilled six successful exploration wells and 
discovered 1 7  1 tcf of gas for 1288 billion 
this realised a 45 x return on investment
• we entered new licences which provide 
options for future drilling with no drilling 
commitments
• we exited licences in offshore senegal and 
guinea bissau joint development zone 
agc saharawi arab democratic republic 
sadr and somaliland where we did not 
believe we would be able to execute on our 
model of finding and monetising resource
what we will do in 201 5
• continue to pursue our policy of 
reducing balance sheet exposure  
to material development spending
• complete the acquisition of  
salamander energy providing an 
operating platform in south east asia
• complete the acquisition of seven 
deepwater exploration licences in 
indonesia from niko resources
strategy in action
tanzania having initially entered tanzania in 2005 ophir reduced its financial 
exposure to exploration drilling through a farm out to bg a drilling programme 
between 2010 and 2014 has seen 16 successful exploration wells drilled and over  
17 tcf of gas discovered in 2014 ophir then realised 1288 billion through the  
sale of a 20 interest to pavilion energy
strategic report
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report
financial  
statements
supplementary 
information
15 annual report and accounts 2014
overview
strategy
performance focus on capital 
allocation and returns
• target is to derisk the business model 
through funding core exploration 
activity from operating cash flow 
apply prudent levels of debt to 
development and production activity 
and preserve balance sheet strength 
and flexibility
• only allocate capital to highest return 
opportunities following rigorous risk 
reward analysis we are focused on 
cash balances and cost management 
and will seek to manage the risk profile 
through farmouts exits etc
what we did in 2014
• strengthened the balance sheet through 
the addition of 1288 billion from the sale 
of a 20 interest in blocks 1 3 and 4 in 
tanzania to pavilion energy
• agreed to acquire salamander energy plc 
which will add organic cash generation 
derisk the business model and add a 
production base
• we exited licences in offshore senegal 
and guinea bissau joint development 
zone agc saharawi arab democratic 
republic sadr and somaliland which  
we determined did not offer potential  
for sufficient returns to shareholders
• reviewed the organisational structure  
to reduce overheads
• ensured that commercial terms on new 
acreage additions reflected the changing 
landscape and involved minimal financial 
commitments with options to exit predrill
• initiated a share buyback to provide 
return for shareholders following the 
pavilion transaction
16 ophir energy plc
strategy in action  
continued • complete the acquisition of salamander 
energy and become revenue and cash 
flow generative for the first time
• further diversify the sources of funding 
and reduce the cost of capital
• preserve our balance sheet through only 
allocating capital to opportunities which 
we believe offer shareholders the best 
potential returns
• continue to review our cost structure  
and make sure it reflects the new oil  
price environment
• only allocate capital to finding resources 
that can be monetised in the current oil 
price environment
what we will do in 201 5
strategy in action
having generated 1288 billion through the pavilion transaction management  
in consultation with major shareholders pursued a strategy of acquiring flowing barrels  
that would provide a cash stream that will ultimately fund the group’s ea activity having 
screened multiple opportunities the group acquired salamander energy in a transaction 
that completed in march 2015 this added a growing low cost production portfolio that  
is resilient at current oil prices and diversifies the sources of funding furthermore having 
obtained production we are able to further diversify the sources of funding through 
leveraging a prudent amount of debt against the assets the salamander transaction  
has therefore considerably derisked the ophir business model
chief executive’s review 
page 10
strategic report
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report
financial  
statements
supplementary 
information
overview
strategy
performance
17 annual report and accounts 2014 identify
evaluate
respond
report
monitor
ophir works in a challenging environment that has risks that  
are characteristic to its activities operational sites and assets 
managing the risks associated with these challenges is explicit  
to addressing uncertainty to protect ophir and create value
the board of ophir has overall responsibility for maintaining sound 
risk management and internal control systems ophir’s risk process 
involves all levels of management and decision making and work  
to ensure clear reporting to committees and ultimately the board 
the executive directors report risk to the board on a monthly basis  
or more regularly as required the risk register is presented to them 
twice annually 
during 2015 ophir will review and look to further strengthen its risk 
processes and management 
the elementary summary of ophir’s  
risk management process is
risk management is fundamental to the group’s conduct  
and includes executing action plans around and within ophir 
activities in order to protect business interests from risks 
18 ophir energy plc
principal risks  
and uncertainties risk identification  
management
risk management performance in 2014
nicholas smith  
chairman
nick cooper 
executive director and chief executive officer
william bill higgs  
executive director and chief operating officer
ronald blakely  
senior independent nonexecutive director
alan booth 
independent nonexecutive director
vivien gibney 
independent nonexecutive director
lyndon powell  
independent nonexecutive director
william bill schrader  
independent nonexecutive director
carol bell  
independent nonexecutive director
 responsible for identifying evaluating and managing risks
executive directors 
on a monthly basis  
or more regularly  
as required 
 senior management asset managers
external risk achievements 
• continued community 
development with local 
communities in countries 
across the portfolio
• maintained strong  
dialogue with stakeholders 
including governments  
and shareholders 
strategic risk achievements 
• reinforced the process with 
introduction of a chief operating 
officer business unit directors 
and asset manager structure
• divested noncore assets and 
focused investment on assets 
with higher risk reward profile 
• continued to meet or exceed all 
minimum psc commitments 
across the portfolio 
operational risk achievements 
• drilled eight operated wells 
and two 3d seismic surveys 
safely and securely with no 
major hse incidents
• operated in high risk areas 
with no security incidents 
during the year
financial risk achievements 
• completed farmout in blocks 
1 3 and 4 in t anzania and 
ntsina mbeli gnondo and 
manga blocks in gabon
• all excess cash balances held in 
low risk and current or short term 
deposits internal audit review 
conducted of all t reasury and 
cash management procedures
• tight budget control on ga 
spend and the drilling of seven 
out of eight operated wells 
during 201 4 under budget
 board of directors
key performance 
indicators 
page 13
19 annual report and accounts 2014
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financial  
statements
supplementary 
information
overview
strategy
performance type risk mitigation
responsibility at 
functional level
change
external low commodity 
price and adverse 
market sentiment 
towards the  
ep sector
• maintenance of a strong balance sheet with discipline in capital allocation and cost management 
across the company
• manage capex and general and administrative expenses ga to navigate the company through 
the downturn
• continue to review the company’s cost structure and make sure it reflects the new oil price environment
director of 
finance
global economic 
volatility
•  act counter cyclically to take advantage of the opportunities developing from the industry downturn
• selectively exploit the low service costs that have resulted from the drop in the oil price 
• regularly review how external risks impact the company’s strategy and remain agile to change
director 
portfolio  
strategy
capital constraints • aim to internally fund core exploration and appraisal activities from the addition of production 
assets and monetise resources to generate cash flow 
• diversify the sources of funding and apply prudent levels of debt to development and production 
activity to preserve balance sheet strength and flexibility
• find resources for the minimal capital outlay and then monetise them for the highest possible price
• only allocate capital to highest return opportunities following rigorous risk reward analysis 
• ensure that commercial terms on new acreage reflect the changing landscape and involve minimal 
financial commitments with options to exit predrill
director of 
finance
legal compliance 
regulatory or  
litigation risk
• the company accords the highest importance to corporate governance matters and upholding  
the highest ethical standards 
• activities are subject to various different jurisdictional laws customs fiscal and administrative 
regulations the company employs suitably experienced and qualified staff and when required 
external advisors to ensure full compliance
• improved online due diligence system capturing third party risks analysis of those risks plus 
approval decisions
• legal risk assessment and due diligence where appropriate is undertaken for all counterparties 
the company deals with
general counsel
stakeholder 
sentiment
• ophir is committed to sustainable development the company’s approach to  
corporate responsibility underpins the way it does business 
• the company continually strives to conduct operations in an ethical responsible  
apolitical independent and transparent manner 
• ophir places a strong emphasis on maintaining excellent relationships with the local  
communities and host country governments in the jurisdictions in which it operates 
• ophir proactively interacts with stakeholders maintaining regular dialogue and provision  
of information
• all material information is released to the market on a timely basis and in accordance  
with all applicable regulations
• there is ongoing monitoring of public sentiment towards the company and its operations
• ophir places great importance on values they expect staff to demonstrate in order to be respected 
by its stakeholders
head of 
investor 
relations  
corporate 
communications 
director 
corporate 
services
political risk • ophir regularly monitors and seeks to understand changes taking place in political and regulatory 
environments and the potential for shocks to make recommendations to the board
• ophir maintains a balanced asset portfolio across different jurisdictions 
• the company strives to maintain positive relationships in host countries and work to the highest 
industry standards with regulators closely monitoring compliance with the company’s licence  
and psc obligations
director 
corporate 
services
strategic investment decisions • focus on growing a revenue generating business to fund exploration activities and minimise the 
overall cost of capital 
• only allocate capital to highest return opportunities following rigorous risk reward analysis
• the company and its advisors are experienced within the industry and complete a proper review  
of the company’s strategy and investment criteria 
• the current portfolio is closely monitored and new market opportunities continually reviewed 
• a robust risk assessment and due diligence process is undertaken on all potential new entries 
• ophir endeavours to transact at the most appropriate time to create value for shareholders
director 
portfolio  
strategy
the principal risks that have been identified  
within the company are summarised as follows
20 ophir energy plc
principal risks and uncertainties 
continued type risk mitigation
responsibility at 
functional level
change
inadequate resource 
and reliance on key 
personnel
• the company regularly reviews the organization to ensure it is appropriately resourced  
to deliver its objectives
• ophir relies on the excellence of a team of experienced oil and gas professionals for its operational 
success in order to retain motivate and recruit suitably qualified employees it ensures its 
remuneration packages are competitive 
• it has established a longterm incentive plan ltip for executives and a deferred share plan for staff
director human 
resources
operational health safety  
and environment 
hse and security 
incident risk
• ophir is committed to maintaining robust health safety security and environmental management 
and procedures in place in order to respond to unexpected events that have a direct impact on the 
company and the communities it works alongside
• thorough risk assessments to develop robust mitigation and response measures are designed  
and overseen by management and the corporate responsibility committee which meets regularly 
to review and monitor compliance
• comprehensive oil spill and emergency response plans are always in place with regular training  
in the procedures taking place with specialist service providers
• the company has clear in–country control measures
director 
corporate 
services
drilling operations • ophir maintains clearly defined operational procedures
• the contracting and procurement process ensures suitably qualified contractors are employed  
and trained in ophir’s best practices
• regular training and continued monitoring of staff adherence to hse procedures
• the company frequently reviews project management techniques
director  
of drilling
discovery risk and 
success rate
• to achieve value creation through exploration the company has technically and regionally 
experienced management and geoscience teams with a proven record of success 
• to reduce risk substantial technical analysis is undertaken to evaluate and manage opportunities
• during 2014 ophir has significantly rebuilt its exploration footprint in order to have access to a 
highgraded exploration portfolio of world class potential
• exit licences where the company do not believe the model of finding and then monetising resource exists 
head of 
exploration 
africa and  
head of 
exploration  
asia
it risk • regular monitoring and review of it security vulnerabilities that could lead to information  
security breaches
•  various standard industry systems and processes in place to manage security power outages and 
network disruptions thereby minimising downtime to operations and corporate offices
head of it
availability of rigs  
and services 
• regular market review of services and rig availability occurs engagement of experienced advisors 
to ensure a rapid response to opportunities and an ability to close binding agreements quickly
• a dedicated drilling project manager and contracts and procurement cp manager ensure a 
clear contracting strategy and project plan are produced early in the procurement planning stage
director drilling
financial inability to fund 
exploration work 
programmes
• regular review of cash flow working capital and funding options and prudent approach to 
budgeting and planning to ensure sufficient capital to meet commitments
director  
of finance
counterparty  
credit risk
• close monitoring of all trade debtors which are subject to internal credit review director  
of finance
cost and capital 
spending
• in the present oil price environment ophir is focused on preserving its balance sheet and during 
2014 and into 2015 there has been an increased focus on cost management and capital allocation 
whilst the company doubled the physical size of its exploration footprint in 2014 it has secured 
new acreage without any commitment wells which maintains balance sheet flexibility 
• optimise and protect ophir’s capital by capturing highest commercial returns on assets  
prioritised its capital expenditure to protect its balance sheet and reduce its cost structure 
• a formalised annual budget process and ongoing monthly reviews of actuals to budget analysis 
delegation of authority approval processes and cp procedures 
• board approval of annual work programme 
director  
of finance
interest rate  
and foreign  
exchange risk
• cash balances are primarily held in us dollars to provide a natural hedge to reflect that the 
majority of the company’s business is managed and conducted using us dollars small balances 
are retained in other currencies for operating and administrative needs
• cash balances are held in current or shortterm deposits
• further details on principal financial risks are addressed in note 20 on page 119 in the company’s 
consolidated financial statements
director  
of finance
 increased risk since 2013
  risk level remains the same since 2013
 decreased risk since 2013
21 annual report and accounts 2014
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report
financial  
statements
supplementary 
information
overview
strategy
performance 1
4
5
3
2
6
7
blocks
oil play
gas play
ophir has 35 blocks in nine countries across africa and asia  
in africa we have stakes in lng and flng projects in tanzania  
and equatorial guinea respectively in asia we have recently  
been awarded one deepwater block in myanmar and agreed  
to acquire seven deepwater blocks in indonesia 
during 2014 ophir achieved two significant 
operational milestones – the simultaneous 
operation of two deepwater drilling rigs  
and the first operated drill stem test dst 
which resulted in the testing of hydrocarbons 
at the surface in block r equatorial guinea 
these successes demonstrate our substantial 
and continually growing capabilities as  
an operator our exploration and appraisal 
activity saw the addition of 97 mmboe of 
contingent resource with six out of 11 wells 
being successful considerable progress was 
made in carrying forward the equatorial 
guinea flng project which delivered all  
key milestones for the year 
in addition during the year the company  
has taken decisive action acting counter
cyclically to rebuild its exploration footprint 
ophir was among the first to exploit a marked 
shift in the sector that allowed us to significantly 
expand our footprint in new untested plays 
at compelling costs thereby safeguarding  
our strong balance sheet 
bill higgs 
chief operating  
officer
africa
1
 equatorial guinea
80 operated interest block r
gross area 2051km
2
water depths up to 1950m
2
 gabon 
40 operated interest mbeli and ntinsa blocks
70 operated interest gnondo and manga blocks
100 operated interest nkawa and nkouere blocks
gross area 15470km
2
water depths up to 2500m
3
 tanzania
20 nonoperated interest blocks 1 3 and 4
80 operated interest block 7
70 operated interest east pande licence
gross area 24786km
2
 
water depths up to 3000m
4
 kenya
100 participating interest block l9
gross area 3833km
2
water depths up to 1400m
22 ophir energy plc
review of operations 1
4
5
3
2
6
7
business model 
page 6
africa asia
6
 myanmar
95 operated interest block ad03
gross area 9898km
2
 
water depths up to 2500m
7
 indonesia
50 operated interest west papua iv block
60 operated interest aru block
30 operated interest north makassar strait
42 operated interest obi block
100 operated interest kofiau block
80 operated interest halmaherakofiau block
185 nonoperated interest north ganal block
gross area 31512km
2
 water depths up to 3000m
health safety and  
the environment
over 14 million manhours were worked 
during 2014 with one lti this incident was 
relatively minor in terms of impact on the 
individual involved but demonstrates the 
need to be continually vigilant and diligent 
5
 seychelles
75 operated interest blocks pec 5b1 5b2 and 5b3
gross area 12855km
2
 
water depths less than 75m
23 annual report and accounts 2014
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overview
strategy
performance block 4
block 7
block 3
block 1
east 
pande
tanzania
mozambique
0 20
kilometers
40
exploration
1
3
production
2
development
tanzania
overview
ophir has interests in five offshore blocks with a gross  
area of 24786km
2
 the company has a 20 interest  
in blocks 1 3 and 4 operated by bg group an 80 
operated interest in block 7 and a 70 operated interest  
in east pande blocks 1 3 and 4 contain several large  
gas discoveries that will be commercialised by a  
multitrain lng export development
in march 2014 ophir completed the sale of a 20 interest in  
blocks 1 3 and 4 to pavilion energy for 1288 billion this transaction  
was in line with ophir’s strategy of monetising exploration success  
at the appropriate time to capture optimum returns for shareholders 
stages in  
business  
model
key highlights 
blocks 1 3 and 4
• kamba1 taachui1 and mzia3 exploration successes 
added a further 17 tcf to gross contingent resource
• total gross contingent resource sufficient to support  
a three train lng development
• partners in blocks 1 3 and 4 and partners in block 2 
statoil and exxon signed heads of agreement for 
terms of collaboration on joint lng project
• prefeed studies commenced ahead of anticipated 
entry into full feed in 2016
block 7 and east pande
• safely completed drilling of two wells tende1  
and mkuki1
outlook 
• conclude prefeed studies in 2015
• enter feed in 2016
24 ophir energy plc
review of operations continued
africa the sale to pavilion further enhanced what is already a strong  
joint venture partnership ophir is seeking to further reduce  
its balance sheet exposure to development spending head  
of final investment decision
there was further exploration success in tanzania during 2014  
three wells were drilled on blocks 1 and 4 kamba1 taachui1 and 
mzia3 which were successful and resulted in a further 17 tcf being 
added to the gross contingent resources total tanzania contingent 
resources in ophir’s licences now stand at 17 1 tcf which we believe  
is sufficient to support a three train lng development there remains 
considerable upside potential on the licences with over 50 tcf of 
prospective resources still to be targeted
the assets have now entered the predevelopment phase for  
the tanzania lng project in 2014 significant milestones were 
accomplished to deliver tanzania’s first onshore lng project and 
following the government of tanzania’s request in april 2014  
the jv partners in blocks 1 3 and 4 and the partners in block 2  
statoil and exxon signed a heads of agreement hoa setting out 
how the companies will collaborate on development of a potential 
joint lng project under the hoa bg group was designated as the 
lead developer during the prefeed phase and a contract for the  
gross mean recoverable  
resources
171 tcf 
drilling success rate  
on blocks 1 3 and 4
100
lng plant prefeed was awarded in august 2014 subsequently  
a memorandum of understanding mou between the government 
of tanzania the partners in blocks 1 3 and 4 and the partners in  
block 2 was signed in april 2014 the mou covers the site selected  
for the joint lng plant the process for acquiring the site the lease  
to be negotiated and how any resettlement will be managed 
as per the arrangements within the hoa the partners of blocks 1 3 
and 4 and the partners of block 2 formed an integrated project team  
in early 2014 to develop an integrated lng project the team is 
currently conducting prefeed studies leading to an expected 
selection of a preferred project concept in 2015 and entry into full 
feed in 2016 
a twowell exploration campaign was also undertaken in the ophir 
operated block 7 and east pande licences the tende1 well in east 
pande found traces of gas without delivering commercial success 
in block 7 the mkuki1 well did not find any trace of hydrocarbons  
we are reviewing the forward plan for both block 7 and east pande  
in 1q 2015 ophir gave notice that it does not intend to continue into 
the next phase on the block 3 licence 
 
25 annual report and accounts 2014
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financial  
statements
supplementary 
information
overview
strategy
performance cameroon
block r
bioko island
equatorial
guinea
0 10 20
kilometers
40 60 80
exploration
1
3
production
2
development
equatorial guinea
overview 
ophir has an 80 operated interest in block r to the  
west of bioko island in water depths of up to 1950m
stages in  
business  
model
the silenus east exploration well encountered an estimated 
400 bcf of gas substantiating the case for a new production 
hub and demonstrating that sufficient gas resources had 
been established to support a 3mtpa flng vessel gas 
was flowed to surface with the fortuna2 drill stem test 
which achieved a constrained flow rate of 60 mmscfd 
implied unconstrained rate of 180 mmscfd with a 
drawdown of less than 20 psi at the reservoir suggesting 
that fewer wells than previously anticipated will be needed 
to achieve first gas in addition fiscal terms were agreed 
with the government and a midstream partner was 
selected together these define the commercial framework 
for an economic development 
an mou with a midstream partner was signed in november 
2014 the vessel is likely to be capable of producing around 
30 mtpa for a basecase production profile with a plateau 
life of around 18 years the current schedule builds on the 
signature of gas fiscal terms and includes a substantial 
commercial workstream in 2015 with the intention of 
reaching fid in 2017  formal declaration of commerciality 
the submission of the development and production plan 
and the finalisation of the project agreement ahead of 
fid will in turn provide further assurance to potential 
buyers that the project has the appropriate validation 
from the government of equatorial guinea
in line with its strategy of reducing balance sheet exposure 
to flnglng development capex ophir will look to reduce 
its equity interest in block r over the coming year which 
will help to selffund ophir’s remaining equity
management estimates that there is 34 tcf of gross 
mean risked prospective resource on block r once the 
ongoing core and log analysis from the fortuna2 
appraisal well is incorporated into the reserves calculation 
the directors believe that an increase in these figures 
could be announced in 2015 in addition there is further 
upside potential in respect of other leads and prospects  
in the exploration area within block r these prospects 
provide an additional 7 tcf of gross mean unrisked 
prospective resources these distal low relief stratigraphic 
traps are however considered high risk and will be 
riskweighted accordingly
key highlights 
• fortuna2 dst flowed gas to surface at a constrained rate of 60 mmscfd 
exceeding expectations the implied unconstrained rate was 180 mmscfd  
which will reduce the number of development wells required
• gas fiscal terms agreed with the government of equatorial guinea
• mou signed with midstream provider 
• sufficient gas to support 3 mtpa flng capacity
outlook 
• sign contract with midstream provider
• progress various commercial and technical workstreams ahead of fid in 2017
during 2014 four major milestones were reached in  
equatorial guinea materially progressing the concept  
of a floating lng project toward delivery
review of operations continued 
africa
26 ophir energy plc nkouere
mbeli 
nkawa
manga 
ntsina
gnondo
equatorial 
guinea
gabon
0 50 125 25
kilometers
exploration
1
3
production
2
development
 gabon
overview 
ophir has a 40 operated interest in the mbeli and ntsina 
blocks a 70 operated interest in the gnondo and manga 
blocks and a 1 00 operated interest in the nkawa and nkouere 
blocks acquired in 201 4 all of the blocks are located offshore 
in the north gabon basin in water depths up to 2500m
stages in  
business  
model
the affanga deep1 well encountered thinner than 
expected sandstone sections with poor reservoir 
characteristics gas and indications of liquids were 
encountered during drilling but significant hydrocarbon 
shows were not encountered in the target formations 
the okala1 well encountered a thick section of aptian 
salt as prognosed and well developed sandstones in  
the gamba and dentale formations but there were  
no significant hydrocarbon shows in the target reservoirs
although the results were disappointing the costs to 
ophir of the padouck deep1 and okala wells were largely 
carried by petrobras and omv and the cost of the 
affanga deep1 well was partially carried by omv
ophir’s analysis of its 2014 north gabon drill campaign 
has enhanced our understanding of the deepwater distal 
margin of the north gabon basin and the company 
continues to be excited by the prospectivity of the region 
the company has subsequently acquired the olumi 
rouge survey an 8500 km
2
 3d seismic data programme 
on this play in the mbeli marin ntsina marin manga 
marin and gnondo marin blocks and a similar survey has 
also been completed in the nkouere and nkawa blocks 
which ophir was awarded in the second half of 2014 
management believe that this seismic data set will 
illuminate the deepwater prospects in this material 
acreage holding 
key highlights 
• farmed down interests in four blocks to omv
• shot greater than 10000km
2
 of seismic across six blocks in a single campaign 
over six months 
• acquired two new blocks  nkawa and nkouere in the deepwater area 
outboard of the mbeli and ntsina blocks
business model 
page 6
three exploration wells were drilled in the mbeli ntsina and gnondo blocks 
offshore gabon the padouck deep1 well encountered thicker than expected 
good quality reservoir sands but there were no significant hydrocarbon shows 
outlook 
• interpret extensive 3d seismic data and develop 
prospect inventory 
27 annual report and accounts 2014
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overview
strategy
performance seychelles
pec5b2
pec5b1
pec5b3
0 25 50 125
kilometers
exploration
1
3
production
2
development
seychelles
overview 
ophir has a 75 operated interest in blocks pec 5b1 5b2 
and 5b3 in water depths of less than 75m
stages in  
business  
model
in march 2014 the group announced that it had entered 
into an agreement with whl energy ltd whl to acquire 
a 75 operated interest in blocks pec 5b1 5b2 and 
5b3 located offshore to the south of the seychelles 
islands in the indian ocean in water depths of less than 
75 metres
these blocks are located within a frontier basin  
with a large number of potential structural oil targets 
four wells have previously been drilled in the area  
all of which encountered hydrocarbons a 3d seismic 
survey over 1500km
2
 was completed in july 2014  
the interpretation of the fasttrack 3d volume commenced 
in september 2014 final interpretation is expected  
to be completed during 2015 with a prospect inventory 
finalised ahead of the drilldrop decision deadline  
in 2015 with a view to potentially drilling in 2016
other african assets
in kenya block l9 is interpreted to contain multiple  
play systems in both carbonate and clastic reservoirs 
sunbird1 which was drilled by bg in block l10a 
immediately to the south of l9 reportedly encountered 
both gas and liquids in the miocene carbonate play and 
ophir is currently assessing the implications of this well  
to block l9 ophir holds 100 participating interest in the 
block and ophir commenced a farmin process in march 
2015 ahead of finalising the activity programme for the 
remainder of the current exploration period 
ophir exited a number of african licences in 2014 as  
they were considered not to be commercially attractive  
at the current oil price these included licences in sadr 
agc and somaliland 
key highlights 
• completed 3d seismic survey
outlook 
• interpret seismic data and build prospect inventory
• drilldrop decision to be made in 2015
the seychelles blocks are located within a frontier basin  
with a large number of potential structural oil targets 
28 ophir energy plc
review of operations continued 
africa ad03
thailand
myanmar
0 30 60
kilometers
120
exploration
1
3
production
2
development
myanmar
overview 
ophir has a 95 operated interest in block ad03 with a 
gross area of 9898km
2
 in water depths up to 2500m
stages in  
business  
model
in december 2014 a psc was signed with myanmar  
oil and gas enterprise parami energy development co 
ltd ‘parami’ and the myanmar ministry of energy 
block ad03 is located in the rakhine basin on trend  
with the 9 tcf shwe gas field which is in production and 
exporting volumes to china the preparation period and 
the study period of two years will see ophir acquire 3d 
seismic data the 3d survey is planned to be acquired 
during the first half of 2015 and will cover the entire 
10000km
2
 of the block for a similar price to that 
previously paid for 2500km
2
 reflecting the softening  
of service rates 
key highlights 
• block ad03 psc signed in december 2014
• contract awarded for the capture of greater than 10000km
2
 3d seismic
outlook 
• acquisition of greater than 10000km
2
 3d seismic survey from march 2015 to 
may 2015
• potential drilling in 2h 2016
ophir currently has a 95 operated participating  
interest in deepwater block ad03 offshore myanmar 
29 annual report and accounts 2014
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overview
strategy
performance
asia exploration
1
3
production
2
development
sulawesi
obi
north makassar 
strait
north ganal
aru
west 
papua 
iv
halmahera
koﬁau psc
koﬁau 
timorleste
0 25 50
kilometers
100 150 200
indonesia
papua
obi
north makassar 
strait
north ganal
aru
west 
papua 
iv
halmahera
koﬁau
koﬁau 
timorleste
0 25 50
kilometers
100 150 200
indonesia
overview 
ophir has interests in seven deepwater blocks in water 
depths of up to 3000m
stages in  
business  
model
six of the licences are operated positions with partners 
including statoil and eni in total the acreage covered  
by the pscs is approximately 31500km
2
 with significant 
2d and 3d seismic data already acquired over the blocks 
multiple leads and prospects have been identified across 
the portfolio with a mix of clastic and carbonate play 
types in both proven and frontier basins 
broadly the licences are split into three core areas –  
west papua western birds head and the makassar strait 
the west papua area is frontier and potentially high
impact primarily prospective for oil within a carbonate 
play where reservoir quality has been partially derisked 
by drilling to date the western birds head area 
prospective for both oil and gas in clastic and carbonate 
plays has been derisked by existing discoveries on the 
kofiau psc the makassar strait area is a proven world 
class hydrocarbon province in which several large fields 
feed the multitrain but currently underutilised bontang 
lng plant located onshore east kalimantan 
the acquired acreage has already seen some 3d seismic 
acquisition and the maturing of several leads and prospects 
that could be commercialised via bontang lng facility 
with the threshold for commercial volumes as low as 
c200 bcf
the initial focus of activity will be to reinterpret the 
existing 3d seismic data and to commission new 3d 
surveys on several blocks it is expected that the first 
drilling campaigns are likely to start early 2017  
key highlights 
• agreed to acquire seven deepwater exploration pscs 
from niko resources
outlook 
• complete acquisition of niko licences
• capture 3d seismic on several blocks
following on from previous acreage acquisitions ophir continued its  
expansion into asia during 2014 with the agreement to acquire seven  
pscs in indonesia with equity interests ranging from 185 to 100
30 ophir energy plc
review of operations continued 
asia outlook
successfully integrating salamander within the group will 
be among the key priorities in 2015 this will include the 
integration of the asset base within our portfolio as well 
as the teams and capabilities that salamander will bring 
to ophir 
further priorities for 2015 are twofold continue to 
achieve operational milestones on existing assets and  
in line with our longerterm strategic priorities continue  
to analyse and assess our new acreage with the aim  
to prepare ophir for its next drilling campaign
exploration drilling in 2015 is likely to centre round  
the low cost high value prospects in the g450 block  
gulf of thailand elsewhere in the portfolio exploration 
activity will be focused on acquisition and interpretation 
of seismic data in indonesia myanmar seychelles and 
gabon there is one commitment well across the entirety 
of this portfolio 
through the salamander acquisition we now have 
production from the sinphuhorm gas field and bualuang 
oil field in thailand this is expected to generate around 
150 million of cash in 2015 work is also ongoing to 
determine the most capital efficient means of bringing 
the bualuang contingent resource onstream the 
kerendan gas field in indonesia is likely to deliver first  
gas in h2 2016 once pln has finished work on the 
transmission network 
in the second half of 2015 we expect to be in a position  
to high grade our prospect inventory and determine which 
blocks contain prospects that merit drilling and then be  
in position to take advantage of the softening rig market  
to contract rigs for our 20162017 drilling programme
expanded asian 
portfolio 
page 32
31 annual report and accounts 2014
strategic report
governance 
report
financial  
statements
supplementary 
information
overview
strategy
performance exploration
1
3
production
2
development
 
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
singapore oce
kuala lumpur oce
bangkok oce
jakarta oce
energy group 
company
an
exploration
1
3
production
2
development
3
production
2
development
areas of focus
other assets
oil play
gas play
exploration
1
3
production
2
development
the ophir business model 
integrates equally well into  
the current salamander  
assets as detailed below
in march 2015 ophir completed the acquisition of 
salamander energy an introduction to the main  
assets that ophir acquired is provided on these pages 
key assets
greater bualuang
the bualuang oil field is located in the gulf of 
thailand it has been on stream since 2008 and  
has to date undergone two phases of development 
there is a further 28 mmbo of certified contingent 
resource ye 2013 which will be brought on  
stream at ophir’s discretion with a third stage  
of development drilling 
furthermore there are a number of stepout 
exploration opportunities in the g450 licence  
ophir intends to commence exploration drilling  
on this licence in 2h 2015 
licences 
b838 100 operator
g450 100 operator
key facts
278 mmbo contingent resource
g450 exploration drilling expected in 2014
block pm322
block pm322 represents salamander’s entry to 
malaysia the block contains an oil discovery from 
1991 and has stepout prospectivity a 3d seismic 
survey will be captured in 1h 2015
licence 
pm322 psc 100 operator
key facts
acquisition of 3d seismic in 20152016
sinphuhorm
the sinphuhorm gas field has been onstream since 
2006 and supplies gas to the nearby nam phong 
power plant 
licence 
eu1e5n 95
business model 
page 6
32 ophir energy plc
review of operations continued 
expanded asian portfolio  
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
singapore oce
kuala lumpur oce
bangkok oce
jakarta oce
exploration
1
2
development
key assets about salamander
greater kerendan
the kerendan gas field is expected on stream in  
the second half of 2016 negotiations are ongoing 
to improve the gas price for the existing gsa 
attention will then turn to commercialising a 
further tranche of gas from the contingent  
resource in the field 
the west kerendan discovery at the end of 2013  
is expected to give rise to significantly increased 
gas sales in the future 
licences 
bangkanai psc 70 operator ne
bangkanaiwest bangkanai pscs 100
key facts
17 mmboe 2p reserves kerendan field
22 mmboe contingent resource in  
kerendan field yet to be monetised 
43 mmboe of contingent resource added through 
west kerendan discovery in q4 2013
salamander’s core asset portfolio 
is made up of hub positions with 
discovered hydrocarbons stepout 
exploration potential and new acreage 
opportunities within the same basin
salamander has operational offices in bangkok jakarta 
kuala lumpur and a regional office in singapore it is 
principally known as a high quality operator of production 
and development assets and has a strong reputation  
with stakeholders throughout south east asia ophir  
will utilise this regional operating platform to support  
its own operations in myanmar and indonesia as well  
as to support new business initiatives in the region
salamander has a production base that is resilient at low 
oil prices with a break even oil price across the portfolio  
of around 15boe there is the potential to more than 
double the 2p reserves through converting the large bank 
of certified contingent resource this will be the source  
of production growth over the next five years 
there is stepout exploration around all of its producing 
fields this exploration benefits from fiscal efficiencies 
which reduce exploration costs furthermore due to  
the proximity to production infrastructure it would  
be relatively quick to cash flow in the success case 
33 annual report and accounts 2014
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statements
supplementary 
information
overview
strategy
performance 1  cash position includes shortterm investments comprising cash deposits of 
between three and 12 months totalling 2949 million 2013 1599 million
profit after taxation
55m  122
2013 246 million loss
cash position
1
 
1173m 76 
2013 667 million 
net asset position
1698m 1  
2013 1667 million
key numbers
ophir’s balance sheet was materially transformed during 2014 with 
the completion of the pavilion transaction bringing in 1250 billion 
of cash as a result ophir had 1173
1
 billion of cash on the balance 
sheet at year end 2014 this balance sheet strength means ophir is 
well positioned to navigate through a period of oil price uncertainty
in the current oil price environment ophir is focused 
on preserving its balance sheet and during 2014 
and into 2015 there has been an increased focus 
on cost management and capital allocation 
with only 100 million exploration and appraisal 
commitment capital expenditure outstanding 
over the next three years the company is well 
positioned and has the financial flexibility to 
manage its future capex and preserve balance 
sheet strength
ophir’s strategy remains to monetise discoveries  
at the appropriate time to maximise shareholder 
value and the company will seek to transact in  
line with this strategy to reduce its balance sheet 
exposure to material capex associated with its 
major projects furthermore in keeping with the 
strategy agreed with its major shareholders 
ophir has moved towards a selfsustaining 
financial model through the acquisition of 
salamander energy this adds a production base 
with significant growth potential that breaks even 
at around 1 5 per barrel and will generate free 
cash flow to fund ophir’s exploration activity 
34 ophir energy plc
financial review key performance 
indicators 
page 13
performance
results for the period
the company recorded an operating profit of 2944 million 
2013 3076 million loss for the year ended 31 december 2014 
the recording of a profit follows the successful farmout of a 20 
interest in tanzania blocks 1 3 and 4 which resulted in a gain of 
6717 million 2013 nil after finance expenses and taxation this 
resulted in a posttax profit of 548 million 2013 2458 million loss
exploration expenditure
t otal exploration expenditure associated with prelicence expenditure 
exploration expenditure written off and impairment charges for the year 
ended 31 december 2014 were 3337 million 201 3 229 1 million
prelicence expenditure consisted of 239 million 201 3 24 million 
and impairment charges totalled 3098 million 201 3 1 724 million 
this consisted of an amount of 594 million which was impaired 
against the kenya l9 block asset as a result of management’s 
revised assessment of the carrying value 628 million related to the 
unsuccessful drilling operations in the affanga deep 1 well in gabon 
a further 187 6 million was impaired against tanzania assets following 
the drilling of the t ende 1 well in the east pande block and the drilling 
of mlinzi mbali 1 in block 7 as a result of management’s assessment 
that no further expenditure on exploration was currently budgeted 
or planned within the current licence terms
general and administration expenses
general and administration expenses of 207 million 2013 
321 million include personnel costs sharebased payment 
charges office administration costs and professional and corporate 
costs audit legal other professional advisors’ fees in line with 
the company’s objective to manage its underlying cost base a 
36 decrease in general and administration expenses was reported 
compared to 2013 predominantly associated with an increase in 
cost recovery despite an overall increase in the company’s drilling 
activity and headcount to 133 2013 119 this is an area that has 
been targeted for further reduction during 2015
other operating expenses
other operating expenses were 228 million 2013 464 million 
this mainly consisted of an amount of 209 million which was 
goodwill expensed as a result of the impairment assessment relating 
to the kenya l9 block
finance costs and income
finance costs for the period were 59 million 2013 income 27 1 
million an amount of 34 million related to interest paid following 
the completion of the pavilion deal in march and 36 million of 
interest from shortterm investments the remainder is associated 
with foreign exchange losses and gains arising primarily on the 
fluctuation of the company’s functional currency the us dollar 
against other currencies the company holds 
taxation 
taxation for the period totalled 2337 million 2013 346 million  
of which 2224 million was paid as a result of the gain on farmout  
of the 20 interest in tanzania blocks 1 3 and 4
35 annual report and accounts 2014
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information
overview
strategy
performance exploration  evaluation assets 2014 – 7649m
 gabon 6
 equatorial guinea 69
 tanzania 14
 kenya 8
 seychelles 3
financial position
financing
during the year the company strengthened its balance sheet with 
the successful sale of a 20 interest in tanzania blocks 1 3 and 4 
which generated net proceeds after taxation of 4624 million
during the latter part of the year the company started a share 
buyback programme at the end of the financial year in accordance 
with the parameters of the programme the company had purchased 
15522066 ordinary shares for the consideration of 442 million
2

exploration and evaluation investing activities
the company’s investment in exploration and appraisal activities  
has continued during 2014 with expenditure of 5943 million  
2013 3891 million
the drilling of nine exploration and appraisal and two dst wells  
was completed during the year as well as an extensive 3d seismic 
acquisition programme an amount of 2024 million which 
represented 34 of the total exploration and appraisal expenditure 
was invested in block r equatorial guinea a further 36 2128 
million of exploration and appraisal expenditure was incurred during 
the year in tanzania this consisted of 1121 million in blocks 1 3 
and 4 297 million in block 7 and 710 million in east pande 
total expenditure in gabon was 1535 million which represented 
26  of the total spend in the ntsina mbeli gnondo and newly 
acquired nkawa and nkouere blocks however with the farmout 
of four of its gabon blocks to omv in mid2014 the company 
managed to reduce its net spend in gabon to 641 million
liquidity risk and going concern
the group’s business activities together with the factors likely to 
affect its future development performance and position are set out 
in the strategic review on pages 2 to 45 the financial position of the 
group consisting of cash resources of 1173 million its cash flows 
and its liquidity position are described in the financial statements on 
pages 95 to 154 in addition note 20 to the financial statements 
include the group’s objectives policies and processes for managing 
its capital its financial risk management objectives details of its 
financial instruments and hedging activities and its exposures to 
credit risk and liquidity risk
in making their going concern assessment the directors have  
considered group budgets and cash flow forecasts which include 
the impact of the completed acquisition of salamander energy plc 
subsequent to yearend for a period of at least 12 months as a result 
of this review the directors have a reasonable expectation that the 
group has adequate resources to continue in operational existence 
for the foreseeable future thus they continue to adopt the going 
concern basis of accounting in preparing the annual financial statements
2 amount includes associated broker fees and stamp duty
36 ophir energy plc
financial review continued events after the reporting period
on 3 march 2015 the group acquired 100 of the share capital 
of salamander energy plc a south east asian focused independent 
exploration and production company quoted on the lse
the group announced that the scheme of arrangement was 
approved by salamander energy shareholders on 6 february 2015 
and was sanctioned by the supreme court in london effective on 
2 march 2015 the transaction has therefore closed and the entire 
issued ordinary share capital of salamander energy is now owned 
by ophir the consideration of 3261 million was satisfied in full 
by equity by which salamander shareholders received 05719 ophir 
ordinary shares for each salamander energy plc ordinary share held
the enlarged group enhances ophir’s operating capabilities in 
both africa and south east asia and deepwater expertise across 
key technical and commercial functions the combined group 
provides shareholders with a diversified exposure to 21 production 
development and exploration blocks in africa and south east asia
the acquisition will be accounted for as a single business combination 
full details of which are set out in note 31 of the financial statements 
financial strategy and outlook for 2015
ophir’s financial strategy remains focused on cost management and 
capital discipline to preserve its balance sheet strength the company 
will also retain the flexibility to monetise proven resources in keeping 
with its strategy the company will continue to selffund its exploration 
activities where appropriate executing pre drilling farmouts and 
continue to pursue revenue generating business opportunities which 
together will minimise the overall costs of capital 
with the acquisition of salamander energy the company’s capital 
expenditure in 2015 is expected to be between 250 million and  
300 million this will be used to fund
• predevelopment expenditure in tanzania and equatorial guinea
• acquisition of further seismic data across the expanded  
exploration portfolio
• drilling of exploration wells on the g450 block gulf of thailand 
• develop bualuang and kerendan fields
looking further ahead to 2016 and 2017  given the company’s limited 
exposure to committed exploration and appraisal capital expenditure 
of only 100 million over the next three years and its balance sheet 
strength the company should be well positioned to manage and 
leverage to its advantage the changing market conditions
37 annual report and accounts 2014
strategic report
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financial  
statements
supplementary 
information
overview
strategy
performance ophir strives to achieve an appropriate balance between  
profitable operations and ethical practice by demonstrating  
a commitment to social and environmental responsibility 
ophir’s commitment to 
providing a sustainable 
contribution to both 
stakeholders and 
communities where  
we operate
ophir is committed to sustainable 
development our approach to corporate 
responsibility cr underpins the way we 
do business we strive to conduct our 
operations in an ethical responsible 
apolitical independent and transparent 
manner at all times 
we recognise that cr is key to how 
we support our employees and the 
communities in which we operate  
we have a genuine commitment to  
the management of health safety 
security environmental issues 
community development projects  
and conducting our business ethically 
corporate responsibility underscores  
the principle that exploring for oil  
and gas responsibly to the highest 
international standards is paramount
ophir is continually looking to  
evaluate and improve our cr policies  
and procedures both the un global 
compact the principles for responsible 
investment and international association  
of oil and gas producers ogp have  
been sources of guidance
corporate responsibility
38 ophir energy plc 1 
environment 
ophir has a responsibility to respect and to protect the environment in 
which it operates the company endeavours to meet all applicable legal 
and industry best standards in managing environmental risks ultimately 
our goal is to minimise the environmental impact of our operations
2
health safety and security
ophir strives to achieve the highest standards in health safety and 
security ensuring that everyone working for the company does so 
in a safe and healthy environment
3
community projects 
ophir is committed to responsible business practices and seeks 
to support local communities through sustainable projects aimed 
at empowerment capacity building and improving education 
4
business ethics
acting with honesty and integrity is crucial to the longterm  
success of our business the company requires all those working for 
us to uphold the highest professional standards and to abide by all 
applicable antibribery and corruption laws both international and 
local we encourage the empowerment of staff and do not tolerate 
discrimination bullying or harassment 
5
our people and our values
ophir rewards performance and offers a progressive working 
environment and development opportunities for its employees
this reviews the five areas of ophir’s 
corporate responsibility practices
39 annual report and accounts 2014
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information
overview
strategy
performance emission sources co
2
 tonnes
 oce electricity
 diesel onshore
 diesel oshore
 flaring
 flights
345
335
56404
5460
3503
environment
protecting and maintaining the environment is paramount at all of 
our operations and we are constantly seeking ways to minimise the 
environmental impact of operations reduce waste conserve resources 
and respect biodiversity ophir complies with all applicable legal 
standards in managing environmental risks 
environment highlights
in the planning stages prior to commencing operational activities 
ophir follows a conventional set of rigorous legal and industry best 
practice procedures to assess every potential environmental risk 
following the risk assessment effective mitigation measures are then 
designed and implemented for example prior to acquiring seismic 
offshore in gabon this year we conducted an extensive programme 
of local stakeholder meetings with neighbouring fishing communities 
informing and educating those potentially affected by the seismic 
planning and operational activities
these local environment engagement processes are part of ophir’s 
companywide hse policy whereby before initiating any exploration 
project in addition to engaging with local stakeholders we conduct 
comprehensive and integrated environmental impact assessments 
eias these eias are routinely scrutinised by local governmental 
agencies and ngos before finally gaining approvals all before work 
starts we repeat these assessments at each stage of the project using 
qualified consultants and professional services all aspects of our 
environmental performance are monitored during operations and  
then finally after the operations are completed the findings are 
reported back to local agencies to ensure transparency and compliance
marine mammal observers on board  
the seismic vessel in gabonese waters
emissions data
ophir seeks to encourage energy efficiency best practices in all 
its activities and to minimise greenhouse gas ghg emissions 
the emissions figures are provided as an absolute total figure of 
estimated co 2 production for the company’s worldwide activities
this is the second year emissions data are reported for the company 
t otal emissions during 2014 were estimated at 66046 tonnes of co 2 
this compares to 1 5 1 38 tonnes co 2 in 201 3 the increase in emissions 
in 2014 compared with that of 201 3 is due to the completion of our first 
ever flare testing and the drilling of eight wells in 2014 versus two in 201 3
as an oil and gas explorer most of the company’s emissions are 
produced by thirdparty contracted services with respect to our 
operated exploration activity primarily drill ships seismic vessels and 
service boats working offshore the majority of ghg emissions come 
from the fuel used in offshore operations and to a far lesser extent 
passenger air travel during the two drilling campaigns totalling eight 
operated wells across equatorial guinea tanzania and gabon in 
2014 office emissions are a minor contributor the emissions data 
is reported as an applicable intensity ratio by using the number 
of operated wells as the key metric and therefore on this basis the 
estimated emissions were 8255 tonnes per operated well drilled 
in 2014 2013 7 659 tonnes per operated well
emissions data is collected from every location where we operate 
where actual measured data is not available estimates are made 
the measuring system is defined in the ophir health and safety 
environmental management system hsems
reporting criteria
office energy calculated average annual electricity use from 
actual invoices for all office locations
ground transport for africa office locations collected data for 
actual fuel used for office vehicles
exploration for our offshore operations calculated diesel use 
rate which includes drilling rigs  helicopter 
support seismic vessels and various psvs 
service boats covering the operations period 
for each country with activities in 2014
air transport estimated total number of long haul passenger 
flights in 201 4 booked and paid for by ophir energy 
includes employees and contractors
40 ophir energy plc
corporate responsibility 
continued tanzanian military personnel working alongside  
ophir security for the 2014 drilling campaigns
health and safety 
health and safety is a priority for ophir all operations are carried 
out in accordance with applicable local and international health 
and safety best practices
strict health and safety procedures are applied to all aspects of our 
operations from simple everyday office activities to highly complex 
subsea technical drilling risk assessments vessel operations and 
emergency response planning all employees and contractors have 
a duty to ensure their activities are compliant with the rules and 
standards that apply it is part of our duty of care to ensure our 
subcontractors and suppliers provide a safe and healthy working 
environment for their employees and to provide appropriate training 
support and protective equipment to confirm compliance with the 
appropriate health and safety practices subcontractors and suppliers 
are subject to regular checks
ophir’s corporate responsibility committee meets regularly to 
reviews these standards and is responsible for monitoring health 
safety security and environmental hsse practices the committee 
is also responsible for planning appropriate independent hse audits 
across the range of our activities to assess our progress
corporate responsibility team developments
in 2014 the corporate responsibility management with respect to 
health and safety continued to evolve all employees and contractors 
are expected to abide by our corporate responsibility standards 
ophir continued to concentrate its health and safety focus on those 
areas with the highest risk in 2014 that meant targeting the drilling 
programmes in gabon equatorial guinea and tanzania each drilling 
project was provided with full time on and offshore hse professionals 
to ensure hse compliance
health and safety highlights
during 2014 ophir’s employees and contractors recorded only one 
lti resulting from a minor injury offshore there were no other 
significant recordable incidents during the year
in early 2014 prior to contracting the drilling company engaged to 
carry out the west africa drilling campaign in gabon and equatorial 
guinea ophir carried out extensive health and safety assessments 
audits and held integration sessions with the service company 
personnel to ensure health and safety alignment and compliance 
before and during the drilling campaign 
security
we have operated in several challenging environments in both east and 
west africa during 2014 and our assessments have evaluated the 
various possible physical risks our personnel and assets could be exposed 
to during our operations our security personnel have supported our 
activities during the past year and in tanzania we used local naval 
personnel to provide protection and response capability to our offshore 
drilling operation there were no security incidents during 2014 
report of the  
corporate responsibility 
committee 
page 61
41 annual report and accounts 2014
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overview
strategy
performance community projects
as an international oil and gas operator it is abundantly clear that 
ophir has a responsibility towards the communities where we operate 
these responsibilities include aiding the development of the economic 
and social conditions of local communities this year we have focused 
on improving access to education primary and vocational and on 
water and supporting health initiatives through donations 
when selecting projects ophir adopts a collaborative approach 
conducting varied stakeholder engagement and needs assessments 
in order to identify projects that most positively contribute to the 
requirements of the local communities 
community development highlights
in 2014 we set two corporate key performance indicators kpis 
in line with community development
1  at least one project to be started or ongoing in each of our key 
operational assets
2 the completion of two projects or phases in separate countries
our asset managers’ performance was judged against these kpis 
which reinforced our positive commitment to the initiation and 
completion of community projects in our operated countries of 
tanzania seychelles kenya equatorial guinea and gabon 
to continue this progression we conducted a gap analysis of our 
current approach to community development this highlighted a 
need for greater corporate governance and a more strategic approach 
to the selection and implementation of projects we have reviewed 
the international financial corporation ifc guidance to help us 
more closely align our strategy for community development with our 
core business and to concentrate our efforts on sustainable projects 
that have a greater and longer lasting benefit to the communities in 
which we operate 
school children from 
lilungu primary school 
just before their dance 
performance at the 
handover ceremony 
in october 2014
42 ophir energy plc
corporate responsibility 
continued invest in
process
long and
short term
planning
quality not 
quantity
communication 
and stakeholder 
engagement
measurable
strengthen 
strategy
the way forward for 2015 strategic community development
 
2014 community projects by location
upon commencing operations in the seychelles in april ophir began 
engaging with several local stakeholders to identify a project to support 
alongside our seismic campaign ophir has funded the provision of two 
minivans for one occupational hospital in the south of the country 
and one in the north
in tanzania we have completed the two phase redevelopment 
project of lilungu primary school in mtwara an opening ceremony 
was held to celebrate the completion of the project which is having 
an extremely positive impact on the school children and the local 
surrounding communities to which the company is closely affiliated 
ophir will continue to support both lilungu primary school and the 
wider mtwara region throughout 2015 
in equatorial guinea we have completed two community projects 
the redevelopment of de ovang okas primary school in the district  
of mongomo along with the construction of a water well which will 
service the school and the surrounding community additionally we 
have continued our support for the school redevelopment programme 
by providing the school with desks and furniture elsewhere in equatorial 
guinea we have provided funding for the national technical institute 
which provides valuable training and development for the 
local communities
43 annual report and accounts 2014
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performance
governance 
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supplementary 
information in kenya following a needs assessment in kilifi county ophir has 
completed the renovation work for rima ra primary school including 
school furniture and four toilets the construction work was carried 
out by local contractors
in gabon ophir sponsored the training of 10 gabonese students 
to become marine mammal observers mmo following the 
successful training course the mmos have gone on to complete 
their basic offshore survival training and their offshore oil and 
gas medical training in preparation for working offshore plans are 
underway to begin several community development projects in 
gabon in 2015 including working with ngos to provide further 
training for gabonese nationals
for the first time in 2014 ophir has provided two scholarships to 
tanzanian students on the fouryear undergraduate petroleum 
degree course at the university of dar es salaam we have also 
sponsored two petroleum geoscience masters students in london 
offered several internship opportunities throughout the year to 
students or early graduates and have implemented our first early 
career development programme recruiting one candidate into our 
geoscience team 
charitable giving
this year our london office has launched ophir’s first staff charity fund 
in support of the egmont trust the egmont trust has a number of 
projects helping families in t anzania affected by hiv and aids the fund 
has been set up to allow employees to make collaborative donations to 
the charity and the company has agreed to match the total
business ethics
ophir must comply with all applicable local national and international 
laws and regulations in all locations in which we operate this is crucial 
to both the commercial success and the reputation of the business 
everyone who works for us plays a key part in this all employees are 
accountable for the way they conduct themselves in the course of 
their work managers have additional responsibility to set the tone 
and foster best practices within their teams
we recognise our obligations under international and local anti 
corruption laws as well as the increased global scrutiny in this area
completing the redevelopment of 
lilungu school mtwara tanzania
phase 1 and 2 of the project came to completion in 
october 2014 
the school now has five new and 11 renovated classrooms 
and one new and three renovated offices water has been 
connected to existing toilet facilities and a new large toilet facility 
has been constructed the first of its kind in a school in mtwara 
access to water has been improved further by the drilling of 
a borehole and construction of a 50000 litre water storage 
tank we have supplied the classrooms with 240 and planted 
trees for the school grounds and improved the sports field 
to continue our support for the school and community ophir 
will be contributing towards the school’s operating costs for 
2015 covering utility costs and stationery 
vivien gibney meeting students at lilungu primary school during the handover 
ceremony in october 2014
44 ophir energy plc
corporate responsibility 
continued the prevention detection and reporting of bribery and corruption is 
the responsibility of all those working for ophir who are expected to
• understand their responsibilities and act with fairness  
honesty and integrity at all times
• comply with all anticorruption laws and regulations no matter 
where they are working this includes but is not limited to  
the uk bribery act 2010
• avoid doing anything which even gives the appearance of 
violating antibribery laws as this can damage our reputation
• report any suspicions of bribery including requests for 
bribes immediately
we have taken steps to implement a compliance programme to  
assist in preventing or detecting any corrupt practices the board of 
directors has overall responsibility for this and receives regular reports
an area of current focus is the development and rollout of an 
improved online system for internally conducting due diligence 
on third parties with whom we do business this not only assists  
us in identifying risks presented but also captures the analysis  
of those risks as well as approval decisions at management level
our people and our values
ophir continues to build an experienced resourceful international 
employee base and our talented individuals are at the heart of  
our success we provide exciting opportunities and challenges for  
our people to stretch and develop them in their roles this culture 
allows us to successfully attract and retain the best in our industry  
our annual performance review process is an opportunity for quality 
feedback conversations to take place and for individual performance 
to be aligned with corporate performance 
we are committed to encouraging local talent within the countries  
we have offices and operations and we work in partnership with 
recognised institutions to support their development 
in addition ophir expects all of our people including contractors 
consultants interns and students to demonstrate the values in their 
daily working lives the company has six key values which underpin 
our business and are present in all of our activities 
this strategic report was approved by  
the board and signed on its behalf
nick cooper
chief executive officer
18 march 2015
respect for human rights
ophir respects and supports the human rights of all people including all 
those who work for us as well as the communities throughout the world 
which may be affected by our operations we recognise that we have 
a responsibility to uphold these fundamental rights wherever we can
equality and diversity
ophir has a stated policy as part of its global code of conduct to 
deal fairly and equitably with all of its employees and business partners 
this is a commitment to extend equal employment opportunities  
to all irrespective of race colour sex sexual orientation gender 
reassignment religion or belief age nationality ethnic or national  
origin marital or civil partnership status pregnancy and maternity  
or disability this policy seeks to promote an environment of inclusiveness 
where everyone can prosper and grow and be recognised based on 
meritocracy supported by appropriate training and development
as at 31 december 2014 the organisation has one female director 
representing 125 of the board this figure has since risen to 22 of 
the board 23 of the senior executives are female and throughout 
the organisation the female proportion of our workforce is 37
ophir’s key values
integrity honest and ethical 
dynamism positive energised and innovative 
excellence for people and our partners
grounded downtoearth never arrogant
collaborative work in partnership
45 annual report and accounts 2014
strategic report
overview
strategy
performance
governance 
report
financial  
statements
supplementary 
information dear shareholder
it is with pleasure i present to you the corporate governance 
report the aim of which is to provide insight into the governance 
framework operated by the board and its committees as well as 
their activities throughout the year ensuring that we have robust 
and effective governance processes in place will play a key role in 
the future success of the company 
last year i reported that 2013 was a landmark year for the  
company as it completed its transition from a private company to  
a wellrespected public company 2014 turned out to be as important 
first we completed the monetisation of half our stake in blocks 1 3 
and 4 enabling the company to be cash strong in times of significant 
opportunity in our sector secondly we started to develop the 
exploration footprint of the company in asia with acquisitions of 
offshore licences in myanmar and indonesia thirdly the board also 
initiated the acquisition of salamander energy plc a ftse listed 
company with exploration and production interests in asia which 
completed on 2 march 2015 the company has now become an 
enlarged exploration company with maturing future cash flows 
from production 
board and committee composition
the composition of a board needs to be reviewed regularly 
particularly in periods of rapid growth this year in the context  
of the appointment of the chief operating officer the management 
of cost and the senior resource available below board level your 
board focused on the level of executive leadership that should  
be represented on the board going forward 
it concluded that there was both sufficient financial and strategic 
expertise amongst the members of the board for the respective 
board positions of chief financial officer and director of corporate 
strategy to no longer be necessary accordingly lisa mitchell and 
dennis mcshane stood down from the board on 17 october and  
4 november 2014 respectively and i would like to thank them  
on behalf of the board for their commitment and contribution to 
the success of the company bill higgs joined the board as chief 
operating officer on 10 september 2014 having previously worked 
for chevron corporation for 25 years in a number of senior roles 
and most recently as chief executive officer of mediterranean  
oil  gas plc
there are two further changes that will affect the board in 2015 
dr carol bell a nonexecutive director of salamander energy plc 
until its acquisition by the company joined the board on 2 march 
2015 lyn powell a member of the board since 2007  will step  
down at the forthcoming 2015 agm in may lyn powell has been 
involved in all elements of the company’s growth since his initial 
appointment and most importantly he has chaired the corporate 
responsibility committee previously named the hse committee 
most effectively since joining the board thanks him for his 
continued commitment and contribution and wishes him well 
  ensuring that we have robust and effective  
governance processes in place will play a key  
role in the future success of the company
chairman’s statement on governance 
46 ophir energy plc
corporate governance
introduction uk corporate governance code 
the uk corporate governance code 2012 the ‘code’ applies to the year under review a copy of the code can be found at wwwfrcorguk as part of the 2014 external  
board evaluation conducted by socia limited the results from the evaluation concluded that the company fully met the requirements of the code the board along with 
its own assessment of compliance with the code therefore concludes that during the year the company has fully complied with all provisions of the code the uk corporate 
governance code 2014 the ‘2014 code’ applies to all premium listed companies with accounting periods beginning on or after 1 october 2014 and will therefore apply  
to the company for the 2015 financial year the board expects the company to comply with all provisions of the 2014 code and will report on its compliance in 2016 for the 
financial year ending 31 december 2015 
corporate governance framework
the board has a coherent 
corporate governance framework 
with clearly defined responsibilities  
and accountabilities designed to 
safeguard and enhance longterm 
shareholder value and provide a 
robust platform to realise the 
company’s strategy
 including dr carol bell
board effectiveness
each year the board conducts a review of its effectiveness and 
after careful consideration of the findings from the second external 
board evaluation also undertaken during the year has agreed the 
priorities for next year ron blakely the senior independent director 
has also carried out a review of my performance with input from the 
other nonexecutive directors further details surrounding the 2014 
board evaluation process are set out on page 54 following this 
review i am satisfied that there is an appropriate balance of skills 
experience independence and knowledge amongst the board to 
discharge its duties and responsibilities effectively furthermore  
each board member has sufficient time to undertake their duties 
responsibly and effectively
board committees
the board delegates certain responsibilities to the board 
committees to enable it to carry out its functions effectively  
an overview of the board’s governance framework is set out  
above recommendations identified from the evaluation of our 
board committees in 2013 have improved each committee’s 
effectiveness in dispensing its respective duties on behalf of  
the board during the year under review t erms of reference for  
each of our board committees have been reviewed updated and  
approved by the board
reflecting the importance of corporate responsibility and how it 
underpins all the company’s activities and taking into account the 
recommendations from the board committee evaluation in 2013  
the board charged the corporate responsibility committee to 
become the key platform for mitigating against nonfinancial risks 
groupwide in addition to its key responsibility of monitoring the 
safe and ethical conduct of our operations as this affects our 
employees and the environment the committee’s mandate now 
includes engagement with local communities planning around the 
recent ebola crisis antibribery and corruption policies and external 
greenhouse gas reporting 
nicholas smith 
chairman
remuneration committee
4 independent nonexecutive directors and company chairman
main responsibilities are determining and agreeing with the board the remuneration 
framework for the chairman the executive directors and the company secretary and 
recommending and monitoring reward of the senior management team 
corporate responsibility committee
4 independent nonexecutive directors
main responsibilities are evaluating effectiveness of group’s corporate responsibility 
policies and systems as well as social charitable and educational community projects 
across the company’s operations
audit committee
3 independent nonexecutive directors
main responsibilities are monitoring the integrity of the financial statements of the 
company and reviewing effectiveness of internal control and risk management systems
technical advisory committee
2 independent nonexecutive directors and 1 executive director
main responsibilities are advising the board on technical aspects of operational business 
proposals and their potential risks and they are consistent with the company strategy 
nomination committee
2 independent nonexecutive directors 1 executive director and company chairman
main responsibilities are regularly reviewing structure size and composition  
of board and identifying and nominating candidates to fill board vacancies
board
chairman 2 executive  
directors and 6 independent  
nonexecutive directors
executive 
committee
47 annual report and accounts 2014
strategic report
governance 
report
financial  
statements
supplementary 
information the board brings a broad range of skills and experience  
to the company across the oil and gas industry  
commercial and financial sectors and capital markets
dr william bill higgs 
executive director   
chief operating officer
dr bill higgs was appointed as  
an executive director and chief 
operating officer on 10 september 
2014 bill higgs is a member of the 
technical advisory committee  
he has over 25 years of global 
exploration development and 
operations experience the majority 
with chevron corporation his roles 
at chevron included senior vice 
president of operations for saudi 
arabia chevron reservoir manager 
for tengizchevroil in kazakhstan 
asset manager for the bblt 
development in block 14 angola 
and general manager for strategy 
for chevron corporation in his time 
at chevron he was also a member 
of the corporate reserves audit 
committee and the decision  
review boards for the gorgon and 
wheatstone lng developments  
in australia before joining ophir  
he was chief executive officer  
of mediterranean oil  gas plc 
acquired by rockhopper 
exploration plc dr bill higgs has  
a bsc in geological sciences from 
the university of leeds and a phd  
in structural geology from the 
university of wales
ronald blakely 
senior independent  
nonexecutive director
ronald blakely was appointed as a 
nonexecutive director in july 2011 
and as senior independent director 
in february 2013 he is chairman  
of the audit committee and a 
member of the remuneration and 
nomination committees ronald 
blakely spent over 38 years working 
for royal dutch shell companies  
on his retirement in october 2008 
he held the role of executive vice 
president global downstream 
finance while previous roles 
included cfo of shell oil products  
in the usa and cfo of shell canada 
ronald blakely is a member of  
the society of management 
accountants of alberta canada
dr nick cooper 
executive director  
chief executive officer
dr nick cooper was appointed  
as an executive director and chief 
executive officer in june 2011  
nick cooper is a member of the 
nomination committee prior  
to joining ophir he was chief 
financial officer and cofounder  
of salamander energy plc  
he began his career as a 
geophysicist with bg and amoco 
before joining boozallen  
hamilton from 1999 to 2005  
he was a member of the oil and  
gas team at goldman sachs  
in september 2014 nick cooper 
was appointed as nonexecutive 
director of siccar point energy 
limited dr nick cooper has a bsc  
and phd in geophysical sciences 
and an mba from insead
nicholas smith 
chairman of the board 
nicholas smith was appointed  
as a nonexecutive director in 
october 2007 and as chairman  
in september 2009 he is a member 
of the remuneration committee 
and chairman of the nomination 
committee nicholas smith trained 
as a chartered accountant before 
joining the jardine fleming group 
becoming chief financial officer 
from 1993 to 1997  he is chairman 
of aberdeen new thai investment 
trust plc and senior independent 
director of schroder asiapacific 
fund plc
2007
nomination committee chairman 
remuneration committee
2014
technical advisory committee
2011
nomination committee
2011
audit committee chairman 
nomination committee  
remuneration committee
name  
and title
biography
year appointed
committee 
membership
48 ophir energy plc
board of directors alan booth 
independent  
nonexecutive director
alan booth was appointed as a 
nonexecutive director in april 
2013 he is the chairman of the 
technical advisory committee  
and member of the remuneration 
corporate responsibility and  
audit committees alan booth has 
30 years’ experience in oil and gas 
exploration at amerada hess oryx 
energy and encana most recently 
alan booth was founder and chief 
executive officer of encore oil plc 
and is now the founder and director 
of encounter oil ltd alan booth  
is a nonexecutive director of 
infrastrata plc alan booth holds a 
bsc in geology from the university 
of nottingham and mscdic  
in petroleum geology from the 
royal school mines imperial 
college he is a former president  
of the uk offshore operators 
association ukooa and currently  
a director of the oil and gas 
independents association ogia
vivien gibney 
independent  
nonexecutive director
vivien gibney was appointed  
as a nonexecutive director in 
august 2013 she is the chairman 
of the remuneration committee 
and member of the corporate 
responsibility committee vivien 
gibney has 25 years’ experience as 
counsel in the upstream oil and gas 
industry including roles with mobil 
oil and enterprise oil plc whilst at 
enterprise oil vivien gibney set up 
the legal department and held  
the positions of general counsel 
company secretary and head  
of hr vivien gibney has held a 
number of nonexecutive board 
positions in the voluntary sector and 
in listed companies more recently 
she was a member of the board  
of directors of encore oil plc where 
she chaired the remuneration 
committee vivien gibney is a 
barrister with an llb and received 
an honorary fellowship in petroleum 
law from the university of dundee
lyndon powell 
independent  
nonexecutive director
lyndon powell was appointed  
as a nonexecutive director in 
october 2007  lyndon powell  
spent the majority of his career in 
the armed services gaining a wide 
spectrum of experience in operational 
and strategic management this 
included providing protection to the 
foreign  commonwealth office 
and commanding several major 
units he is a director and owner  
of barbican global ltd specialising 
in providing independent security 
advice to the corporate sector 
lyndon powell was chairman of the 
corporate responsibility committee 
and a member of the remuneration 
and nomination committees until 
his retirement from the board at the 
agm on 20 may 2015
william bill schrader 
independent  
nonexecutive director
bill schrader was appointed  
as a nonexecutive director in 
february 2013 he is a member  
of the audit corporate responsibility 
and technical advisory committees 
bill schrader has over 30 years’ 
experience working at bp plc 
including as chief executive  
of several country operations  
as president of the azerbaijan 
international operating company 
and as chief operating officer  
of tnkbp  in december 2014  
bill schrader was appointed 
nonexecutive director of chc 
group ltd he is also nonexecutive 
chairman of bahamas petroleum 
company plc and nonexecutive 
director of the hess corporation  
bill schrader holds a bsc in chemical 
engineering from the university  
of cincinnati and an mba from  
the university of houston 
2013
technical advisory committee 
chairman audit committee 
remuneration committee 
corporate responsibility committee
2007
corporate responsibility committee 
chairman nomination 
committee remuneration 
committee
2013
remuneration committee 
chairman corporate 
responsibility committee
2013
corporate responsibility 
committee audit committee 
technical advisory committee
dr carol bell 
independent  
nonexecutive director
dr carol bell has over 30 years of 
experience in the energy industry 
having enjoyed a successful career 
in the city most recently as a 
managing director of chase 
manhattan bank’s global oil  
 gas group dr carol bell currently  
sits on the boards at petroleum 
geoservices asa bonheur asa 
and ganger rolf asa and until 
completion of the transaction  
was a nonexecutive director at 
salamander energy plc she is also  
a nonexecutive director of the 
blackrock commodities income 
investment trust plc and sits on  
the board of finance wales the 
venture capital arm of the welsh 
government dr bell holds an ma  
in natural sciences from the 
university of cambridge and a  
phd in archaeology from university 
college london dr carol bell is a 
trustee of the renewable energy 
foundation a uk think tank  
the national museum of wales  
the wales millennium centre  
the british school at athens and 
the institute for archaeometallurgical 
studies she is also a member of the 
s4c authority and the council of 
cardiff university
2015
other officers of the company
chandrika kher 
position company secretary and committees’ secretary
appointed march 2014
directors who retired or resigned during the reporting period
john lander 
position nonexecutive director
retired 28 february 2014
lisa mitchell 
position executive director and chief financial officer
stepped down 17 october 2014
dennis mcshane 
position executive director of corporate strategy
stepped down 4 november 2014
49 annual report and accounts 2014
strategic report
governance 
report
financial  
statements
supplementary 
information leadership
the board is collectively responsible to shareholders for the continuing 
success of the company to achieve this the board provides leadership 
to the business and either directly or through the operation of 
its committees and delegating authority brings an independent 
judgement on all matters of strategy performance risk management 
resources standards of conduct and accountability the board also 
leads in setting the values and the culture of the company
the board has adopted a formal schedule of matters reserved for  
its approval and has delegated other specific responsibilities to 
its committees
the board undertook a review of the schedule of matters specifically 
reserved for the board the ‘schedule’ in 2014 the board concluded 
that only minor amendments were required to those matters principally 
to formally note that the board was responsible for the antibribery 
policy that all country entries and exits were subject to prior board 
approval and revisions to the financial limits at which board approval 
is required to better reflect the size and operations of the company 
since the board first adopted the schedule in 2012 other specific 
responsibilities are delegated to the committees of the board  
each of which has clear written terms of reference the terms  
of reference for the audit remuneration corporate responsibility  
and nomination committees are available on the company’s  
website at wwwophirenergycomaboutusboardcommittees 
roles of the chairman and chief executive officer
the roles and responsibilities of the chairman and chief executive officer 
are clearly established separate and have been set out in writing
nicholas smith was appointed as chairman of the company in  
2009 having been a nonexecutive director since 2007  as chairman 
he is responsible for the leadership and effective running of the  
board as well as for ensuring that it plays a full and constructive part 
in the development and determination of the company’s strategy  
together with the chief executive officer and the company secretary 
the chairman sets the agenda for board meetings ensuring that  
the decisionmaking process adopted by the board allows for open  
and constructive debate the chairman works closely with the  
chief executive officer providing support and advice as well as 
ensuring that the strategies and actions agreed by the board are 
effectively implemented
the chairman was considered to be independent in character and 
judgement on his appointment
dr nick cooper was appointed as chief executive officer in june 2011 
he is responsible for managing the daytoday business of the company 
proposing and developing strategy and overall commercial objectives in 
consultation with the board and as leader of a strong and experienced 
executive team implementing the decisions of the board and its 
committees underpinning this the chief executive officer is supported 
by the executive committee consisting of the chief operating officer 
and the director of finance in addition to other members of the 
senior management team 
role of the chairman
the chairman is responsible for the leadership of the board  
in particular he will
• cultivate a boardroom culture of honesty and openness which 
encourages appropriate debate and challenges amongst the board
• ensure that the board and its committees operate in a way that 
conforms to expected high standards of corporate governance
• set the style and tone of board discussions promote constructive 
debate and ensure an accurate timely and clear flow of information 
to the directors
• lead the nomination committee in the appointment of an 
effective and complementary board review succession planning 
and evaluate the performance of the board its committees and 
individual directors
• foster effective board relationships between the executive and 
nonexecutive members support and advise the chief executive 
officer generally and in the implementation of agreed strategy
• ensure effective communication with the company’s stakeholders 
and that their views are understood by the board
50 ophir energy plc
the board is committed to maintaining high standards  
of corporate governance and fully recognises the benefits  
it brings to making the best decisions for the company’s future
corporate governance report nonexecutive directors’ length of service as at 31 december 2014
 0–3 years
 3–6 years 
 6 years
3
1
1
role of the chief executive officer
the chief executive officer is responsible for the daytoday 
management of the business within the authorities delegated  
by the board in particular he will
• propose develop and supervise the company’s strategy and  
overall commercial objectives and ensure that agreed strategies  
are implemented by the senior management team through  
the subcommittees of the executive committee
• build and develop an appropriate organisational structure for the 
company establish processes and systems and plan resourcing  
to ensure that the company has the capability to achieve its aims
• lead the executive and senior management team including 
undertaking appraisals reviewing development needs and making 
recommendations to the remuneration committee with regard  
to remuneration where appropriate
• promote and conduct the affairs of the company with the  
highest standards of integrity probity and corporate governance
• progress the company’s communication programme with shareholders 
and ensure that financial results business strategies and targets are 
appropriately communicated to the company’s investors
nonexecutive directors
the independent nonexecutive directors bring a wealth of knowledge 
from the oil and gas industry together with experience from other 
sectors to the board and its committees through their contributions 
they provide the company with independent views on matters of 
strategy performance risk and conduct nonexecutive directors are 
appointed for an initial threeyear term although subject to annual 
reelection at the annual general meeting agm with the expectation 
that a further threeyear term will follow subject to review by the 
board following a second term consideration as to whether a  
serving independent nonexecutive director should be recommended 
for reappointment for a third term is subject to the review of the 
chairman in consultation with the chief executive officer 
the terms and conditions of appointment of the nonexecutive 
directors are available for inspection at the registered office during 
normal business hours while the expected time commitment from 
nonexecutive directors is set out in their letter of appointment as 
approximately two days per month plus preparation time each is 
required to confirm that they are able to devote such time as is 
necessary for the satisfactory performance of their duties 
ronald blakely
date of appointment july 2011 
tenure from appointment to 2015 agm less than 4 years
considered to be independent yes
alan booth
date of appointment april 2013 
tenure from appointment to 2015 agm less than 3 years
considered to be independent yes
vivien gibney
date of appointment august 2013 
tenure from appointment to 2015 agm less than 2 years
considered to be independent yes
lyndon powell
date of appointment october 2007 
tenure from appointment to 2015 agm less than 8 years
considered to be independent yes
william bill schrader
date of appointment  february 2013 
tenure from appointment to 2015 agm less than 3 years
considered to be independent yes
the board considers that all its nonexecutive directors at year end 
namely ronald blakely alan booth vivien gibney lyndon powell 
and bill schrader were independent in character and judgement  
and free from relationships or circumstances that might affect their 
judgement carol bell joined the board as a nonexecutive director  
on 2 march 2015 and is also considered to be similarly independent 
throughout 2014 and up to the date of publication of this report  
a majority of the board members excluding the chairman  
were independent nonexecutive directors
51 annual report and accounts 2014
strategic report
governance 
report
financial  
statements
supplementary 
information board composition at 31 december 2014
 nonexecutive chairman 1
 executive directors  2
 independent nonexecutive 
 directors 5
senior independent director
ronald blakely is the senior independent director and was in place 
throughout the year the senior independent director is charged  
with maintaining a communication channel between the chairman 
and the nonexecutive directors and for leading the nonexecutive 
directors in the annual performance evaluation of the chairman  
in addition the senior independent director is available to shareholders 
who have concerns that have not or cannot be resolved through the 
normal channels of the chairman or the chief executive officer or 
where such contact is inappropriate the specific terms of the role  
of the senior independent director have been set out in writing  
and approved by the board
company secretary
as the group has grown significantly since it initially listed the board 
decided that it was appropriate to separate the roles of the general 
counsel and the company secretary as a result chandrika kher was 
appointed as company secretary in march 2014 having previously 
been the deputy company secretary
board activity
key areas of focus for the board in 2014 included
• strategy
• risk reviews
• acquisitions and new business development
• share buyback programme 
• board restructure
• drilling campaigns
• governance and board performance
• investor feedback and communication 
•  corporate responsibility including health and safety security 
environmental and community related projects
during 2015 the board expects these areas of focus to remain 
broadly similar with the exception of the need for board restructuring
effectiveness
board composition
at 31 december 2014 the board was composed of the chairman  
two executive directors and five independent nonexecutive 
directors the following changes to the board took place during  
the year ended 31 december 2014 and up to the date of this report
28 february 2014 
john lander retired as an independent nonexecutive director
10 september 2014
bill higgs was appointed chief operating officer
17 october 2014 
lisa mitchell stood down as chief financial officer
4 november 2014 
dennis mcshane stood down as director of corporate strategy
2 march 2015 
carol bell was appointed an independent nonexecutive director
as previously announced lyndon powell will be retiring from the 
board at the conclusion of the 2015 agm in may having served more 
than seven years
the board believes that this balance of executive and nonexecutive 
directors provides for high quality discussion and consideration of  
the key issues concerning the company
the composition of the board is regularly reviewed to ensure that the 
directors have the required skills knowledge and experience to meet 
the needs of the business further information on how this is achieved 
and consideration of this in the year is contained in the nomination 
committee report on pages 64 and 65 biographical details for each 
of the directors who served at the end of the year and at the date  
of this report are set out on pages 48 and 49
52 ophir energy plc
corporate governance report 
continued meeting attendance
the board held four formal meetings during 2014 as well as a  
meeting to consider the strategic direction of the business in addition 
six further meetings were called at short notice in order to consider 
specific items of business details of the attendance of all directors 
who served during the year ended 31 december 2014 at the formal 
and shortnotice board meetings are shown in the table below
scheduled
 board 
meetings
meetings 
held at 
short notice
nicholas smith chairman 44 66
nick cooper chief executive officer 44 66
bill higgs chief operating officer
1
11 55
ronald blakely nonexecutive director 44 66
alan booth nonexecutive director 44 66
vivien gibney nonexecutive director 44 66
lyndon powell nonexecutive director 44 66
bill schrader nonexecutive director 44 66
former directors
lisa mitchell executive director
2
33 11
dennis mcshane executive director
3
33 12
john lander nonexecutive director
4
00 00
 
1 bill higgs was appointed to the board as an executive director on 10 september 2014
2 lisa mitchell stood down from the board on 17 october 2014
3 dennis mcshane stood down from the board on 4 november 2014
4 john lander retired from the board on 28 february 2014
the nonexecutive directors met with the chairman four times during 
the year without any executives present to discuss the performance 
of the executive directors in 2014 the chairman introduced a 
postboard meeting review process whereby the performance of  
the chairman is discussed led by the senior independent director 
formal quarterly meetings also take place between the chairman  
the senior independent director and the chief executive officer 
these meetings focus on governance and operating activities in  
order to enhance the ability of the senior independent director to 
fulfil the independence mandate of that role and aid communication
board process
directors are provided with full and timely information before 
meetings including detailed financial information where applicable 
the chairman agrees the agenda for board meetings in consultation 
with the chief executive officer and the company secretary and 
formal minutes are prepared to record all decisions made minutes  
of board and committee meetings are formally approved at the 
following meetings in the meantime draft minutes are circulated  
to each director or committee member as appropriate and as soon 
as practicable after the conclusion of the meeting
minutes of committee meetings may be made available to other 
board members on request and as appropriate if a director objects 
to a particular proposal this will be recorded in the minutes of the 
relevant meeting 
in august 2013 the board approved the establishment of the 
technical advisory committee which would amongst many other 
matters consider the technical aspects of any operational business 
proposals requiring board approval and advise the board if there are 
any significant technical risks or concerns that should be taken into 
consideration when considering any such proposals the committee 
also ensures the technical activities of the company are consistent 
with the overall strategy of the company the board recognises that 
while the committee is not a requirement of the code nonetheless  
it enhances the board’s ability to approve appropriate business 
proposals of a technical nature pertaining to the oil and gas industry 
during the course of 2014 the committee undertook the following  
a review of the company’s operating assets evaluated new business 
developments acted as technical advisers to the board and reviewed 
and recommended changes to members of the committee the 
committee is comprised of three members and meets at least four 
times a year and as otherwise required the chair of the committee  
is alan booth and other members are the chief operating officer 
replacing the chief executive officer as a member on 17 november 
2014 and bill schrader the committee’s terms of reference are 
available on the company’s website at wwwophirenergycom
aboutusboardcommitteestechnicaladvisory 
53 annual report and accounts 2014
strategic report
governance 
report
financial  
statements
supplementary 
information risk management
the board believes that effective risk management is crucial to the 
company’s strategic objectives and longterm success the board  
has overall responsibility for ensuring risk is effectively managed  
the company’s approach to risk and the company’s principal risks  
are detailed further on pages 18 to 21 the audit committee reviews 
the effectiveness of the risk management process on the board’s 
behalf and its approach to this can be found in the audit committee 
report on pages 56 to 60 
board evaluation
a full external board evaluation was carried out in october 2014  
and socia limited was once again appointed to undertake the review 
this follows a full board appraisal in 2012 and a comprehensive 
appraisal of the board committees in 2013 the aim of the 2014 
evaluation was to ensure that the board remains fully compliant with 
the code to assess how the board currently operates and provide an 
opportunity to improve how it operates in the future the objective  
of the 2014 evaluation was to address three key areas
• ensure that the board is fit to meet the demands of a fast 
developing business
• ensure that the board continues to have the appropriate balance  
of skills and experience built into its respective succession plans and
• to continue developing the dynamics of the board so that it 
remains an effective decisionmaking body
the external facilitator conducted interviews with each member of 
the board and the company secretary attended board meetings  
and was furnished with board minutes and terms of reference for 
each board committee and other documentation to facilitate the 
evaluation the resulting report including recommendations for 
action was then presented to the board
the principal conclusion from the 2014 board evaluation was that  
the board operated effectively and complied fully with the provisions 
of the code 
insurance and indemnification
the company provides its directors and officers with the benefit  
of appropriate insurance which is reviewed annually in addition 
directors and officers have received an indemnity from the company 
against a any liability incurred by or attaching to the director or 
officer in connection with any negligence default breach of duty or 
breach of trust by them in relation to the company or any associated 
company and b any other liability incurred by or attaching to  
the director or officer in the actual or purported execution andor 
discharge of their duties andor the exercise or purported exercise of 
their powers andor otherwise in relation toor in connection with their 
duties powers or office other than certain excluded liabilities including 
to the extent that such an indemnity is not permitted by law
appointment induction and training
the chairman is responsible for ensuring that an appropriate induction 
is given to new board members the induction programme is specifically 
tailored to the needs of the incoming director and will include training 
on the business and strategy of the company copies of board policies 
and procedures meetings with senior management and site visits 
where appropriate further details of bill higgs’ induction programme 
is set out in the nomination committee report on pages 64 and 65
ongoing development and training is provided to directors at board and 
committee meetings during 2014 the directors received training on 
• regulatory developments on the uk listing rules
• regulatory developments on corporate governance pertaining to 
risk management audit committee reporting board effectiveness 
and succession planning and
• cyber risk and prevention
the board and committees expect to receive regular updates and 
briefings on new legislation and changes to best practice on corporate 
governance from inter alia the company secretary the group’s 
general counsel on antibribery and corruption matters the company’s 
auditor and in terms of directors’ remuneration related matters  
from the company’s remuneration consultants 
independent advice
all directors have access to the advice and services of the company 
secretary and the board has established a procedure whereby any 
director may take independent professional advice at the company’s 
expense on any matter in the furtherance of their duties
54 ophir energy plc
corporate governance report 
continued reelection
in accordance with the provisions of the code all continuing directors 
of the company offer themselves for annual reelection at the agm
external directorships
the company has adopted a policy which allows the executive 
directors to accept directorship of other quoted companies provided 
that they have obtained the prior permission of the chairman  
as set out in the code no executive director would be permitted  
to take on more than one nonexecutive directorship in a ftse 100 
company or the chairmanship of such a company
during the year ended 31 december 2014 none of the company’s 
executive directors held directorships in any other quoted company
conflicts of interest
every director has a duty to avoid a conflict between their personal 
interests and those of the company the provisions of section 1 75 of 
the companies act 2006 and the company’s articles of association 
permit the board to authorise situations identified by a director in 
which he or she has or may have a direct or indirect interest that 
conflicts or may conflict with the interests of the company
the board continues to undertake regular reviews of the outside 
positions and interests or arrangements with third parties held by 
each director and where appropriate to authorise those situational 
conflicts following consideration notwithstanding the above each 
director is aware of their duty to notify the board should there be  
any material change to their positions or interests during the year 
directors do not participate in board discussion or decisions which 
relate to any matter in which they have or may have a conflict 
of interest
relations with shareholders
dialogue with shareholders
the board recognises the importance of establishing and maintaining 
good relations with all the company’s shareholders nick cooper  
the chief executive officer is primarily responsible for investor  
relations supported by executive directors senior management  
and the investor relations function over 300 investor meetings  
and calls were hosted during the year additionally nicholas smith  
the chairman and ronald blakely the senior independent director 
and audit committee chairman met with major institutional 
shareholders during the first quarter of 2015 to listen to their views  
on the company’s strategic direction developments since listing  
and the executive management team this process which was well 
received by investors and produced positive responses on the 
company and its management team is ongoing 
all financial and regulatory announcements as well as other important 
business announcements are published on the investors section  
of the company’s website and stakeholders can subscribe to receive 
news updates by email by registering online on the website at  
wwwophirenergycominvestorsregisterforemailalertsaspx
annual general meeting
all shareholders are invited to attend the company’s annual general 
meeting when they are given the opportunity to ask questions on  
the financial report and accounts and on the general business of 
the company
the 2015 agm will be held on 20 may 2015 at the offices of  
linklaters llp  1 silk street london ec2y 8hq full details of the 
business of the agm are set out in the notice of meeting and sent  
to those shareholders who have elected to receive hard copy 
notifications together with any related documentation at least  
20 clear business days before the date of the meeting in accordance 
with the requirement of the code the notice of meeting together 
with a copy of the 2014 annual report will also be made available  
at wwwophirenergycom
55 annual report and accounts 2014
strategic report
governance 
report
financial  
statements
supplementary 
information ronald blakely  
audit committee 
chairman
membership and attendance
the members of the committee all of whom are independent 
nonexecutive directors together with details of their individual 
attendance at meetings held during the year ended 31 december 
2014 are set out below
committee members
meeting 
attendance
ronald blakely committee chairman 33
alan booth 33
bill schrader 33
john lander resigned from the committee on leaving the board on 28 february 2014  
no committee meetings were held in the year before his retirement from the board
the board considers all members of the committee to be independent 
and that as chairman ronald blakely has recent and relevant 
financial experience and competence in accounting as required  
by section c31 of the code and section 711 of the disclosure  
and transparency rules respectively the chief executive officer 
director of finance and representatives of the external auditor  
and internal auditor attend committee meetings on a regular basis 
in addition the group financial controller and company secretary 
may be invited to attend all or part of committee meetings as required 
the external auditor also met with the committee on several occasions 
throughout the year without executive management being present 
role and responsibilities of the audit committee
during 2014 the committee reviewed its objectives and terms of 
reference to ensure that they remained appropriate the committee’s 
full terms of reference are available on the company’s website at 
wwwophirenergycomaboutusboardcommitteesaudit and  
are fully compliant with section c32 of the code
report of the audit committee chairman 
dear shareholder
i’m very pleased to report to shareholders on the focus and 
deliberations of the audit committee for the past year
the membership of the committee during 2014 has remained 
constant after a number of changes witnessed in prior years  
bill schrader and alan booth have now served since their respective 
appointments in 2013 bringing a strong commercial and operational 
acumen to the committee
last year i outlined areas of the committee’s focus which was 
directed at strengthening the internal control framework within  
the company that focus continued throughout 2014 an internal 
audit function was appointed via a third party service provider 
mazars llp  and has now been in operation for a full year the audit 
committee receives regular internal audit updates and mazars 
attend all committee meetings another milestone achieved by  
the company was the implementation of a new financial system  
in 2014 which will serve to provide many benefits such as the use  
of automated controls thereby eliminating a high dependency  
on manual procedures as the company grows in size and 
complexity the new system will allow more efficient data flows 
better management of information and reporting across the  
group and a much improved control environment
in addition to the foregoing the committee in support of the board 
conducted two reviews of it infrastructure security given the growing 
risks associated with cyber attacks and the geographical spread of the 
company’s infrastructure several improvements were implemented 
to strengthen it systems security both internally and to the external 
world in the coming year it is planned to further test the company’s 
ability to withstand security breaches through the use of third parties 
that specialise in simulating cyber attacks this area of activity will 
continue to remain of focus to the board
through the two external reporting periods related to the 2014 
accounts the committee’s focus in consultation with management 
and the external auditors was essentially on the same accounting 
matters as in prior years namely asset impairments and going 
concern the outcomes of these deliberations are described in detail 
in the full report that follows this letter i would only highlight the 
56 ophir energy plc
report of the  
audit committee areas of focus in 2014
 financial reporting
 including going concern 43
 external audit 18
 risk and internal control 16
 internal audit 18
 other 5
additional steps taken as part of the final review of the financial 
statements which involved testing the nearterm liquidity of the 
company incorporating salamander energy plc into the going 
concern assessment given the recent acquisition of salamander  
in early 2015 this will provide the company with a revenue stream 
for the first time since inception however longterm solvency of  
the company will remain dependant on one of monetising assets 
from exploration success securing further capital from financial 
markets or acquiring more revenue producing assets 
during the course of the year steps have been taken to assess the 
effectiveness of the external auditor which are detailed later as part 
of this report i have personally maintained regular communication 
with ey llp throughout the year both in london and from the group’s 
other operating locations to discuss their various audit activities 
proactive measures have been taken in the past year to reduce  
the use of nonaudit services from ey however one area with prior 
approval by the committee was the use of ey services beyond the 
defined audit role of the reporting accountant concerning certain 
matters relating to the prospectus and shareholder circular for  
the salamander acquisition here the committee concluded that  
it would be considerably more expensive and take much longer to  
use an alternate firm not previously familiar with the preparation  
of the company’s financial statements 
looking ahead to 2015 a major focus of the audit committee will  
be on the integration of salamander’s operations with those of ophir  
it is well understood and our plans recognise that the integration 
activities particularly financial reporting integration introduce 
elevated risk to the company which will be closely followed
my last comment is directed at the transition of finance staff during 
the year lisa mitchell formerly chief financial officer stood down 
from the board as part of the restructuring in october on behalf  
of the committee i wish to acknowledge and thank lisa for her 
contribution in progressing the professional standards of the  
group’s finance function during her tenure 
ronald blakely
audit committee chairman
18 march 2015
financial reporting
the committee has the responsibility of assessing the integrity of  
the financial statements of the company on behalf of the board  
the committee’s approach to achieving this includes ensuring 
appropriate accounting standards are applied reviewing in depth  
any material areas where accounting judgements have been used 
andor new accounting policies or procedures have been applied  
in addition the committee reviews and assesses the annual report  
to determine whether it can advise the board that taken as a whole 
the annual report is fair balanced and understandable and provides 
shareholders with the information they need to assess the company’s 
performance business model and strategy as required by provision 
c11 of the code the committee considers the external auditor’s 
proposed approach to their review of the interim results and their audit 
of the fullyear financial statements to ensure that the scope of relevant 
review or audit was appropriate the committee also reviewed and 
discussed the external auditor’s report on the full and halfyear financial 
results with ey llp  prior to agreeing to recommend each set of financial 
statements and associated reports to the board for approval 
one of the more significant areas of accounting judgement is the 
carrying value of capitalised exploration and evaluation expenditure  
to ensure that expenditure is appropriately expensed to the pl should 
impairments arise impairment reviews are undertaken by the company 
in accordance with ifrs 6 and assessed by the committee if necessary 
the committee can receive advice from the t echnical advisory committee 
and in 2014 did so regarding the most appropriate level of impairment 
charge for t anzania block 7  the external auditor also reports on this 
most prominent area of accounting risk to the audit committee and  
the committee has been satisfied that exploration has been treated  
in the correct and consistent way in the financial statements
impairment review
a significant area recognised by the committee as subject to 
management judgement is the determination of impairments  
of the group’s exploration and evaluation assets the committee 
received a report from management on the status of each asset  
and along with their technical as well as commercial knowledge and 
expertise on the assets challenged management on their proposed 
impairment recommendations accordingly the committee reviewed 
each of the group’s assets for impairment in accordance with ifsr6 
and concluded that full impairment of certain of the group’s tanzania 
assets was appropriate given the outcome of group’s 2014 drilling 
programme and the group’s future plans for those assets 
57 annual report and accounts 2014
strategic report
governance 
report
financial  
statements
supplementary 
information additionally the committee reviewed the carrying value of the  
group’s remaining assets and either ascertained that given the 
group’s future plans the carrying values of those assets were more 
than supported by the underlying fair value of the assets or that 
impairment was appropriate
going concern assessment
an important element of review by the committee is the 
appropriateness of preparing the accounts on a going concern  
basis the committee receives a report setting out the going concern 
review undertaken by management which forms the basis of the 
board’s going concern conclusions the going concern review includes 
consideration of forecast plans and supporting assumptions as well 
as the options available to the company for obtaining additional 
funding such as portfolio management and equity as portfolio 
management is a key strategic activity of the company there is  
a regular review of the financial impacts and flexibility available to  
the company at both full and halfyear the committee agreed that 
the company’s financial position was such that it continued to be 
appropriate for the accounts to be prepared on a going concern basis 
the company adds value through its ability to find develop and 
eventually monetise early stage oil and gas assets which invariably  
are nonrevenue generating it follows from this that the principal 
focus of the committee when considering the financial reporting  
of the company is to ensure that the exploration expenditure 
commitments of the company are appropriately funded  
this results in major focus being placed on forward spending plans 
and working capital models as much as retrospective scrutiny of 
financial reporting prior to approving both the fullyear financial 
statements for 2013 and the interim financial statements for  
2014 the committee considered the company’s forward plans  
for fundraising and drilling commitments being the most significant 
forward financial commitments that the company makes as part  
of its assessment of the going concern basis of preparation of  
the accounts further detail on the going concern statement is  
set out on page 68 additionally this year with the completion  
of the acquisition of salamander energy plc on 2 march 2015 the 
committee took additional steps in assessing going concern for  
the 2014 accounts 
external auditor
in 2013 the committee decided in accordance with best practice 
that the company’s external audit services should be put out to 
tender as ey had been the company’s auditor since ophir’s inception 
in 2004 as reported in last year’s annual report having carried out a 
thorough tender process the committee concluded that on balance 
there was not a compelling case to engage a new auditor 
the committee has approved the company’s policy governing the 
provision of audit and nonaudit services provided by the auditor and 
their associates the policy clearly identifies permitted and prohibited 
services and sets out the procedure to be followed for the approval of 
all audit and nonaudit services all engagements with an expected  
fee in excess of 100000 require the prior approval of the committee 
the committee reviews statements on the independence and objectivity 
of the external auditor at least twice a year in order to satisfy itself  
that independence and objectivity have been met the committee  
is satisfied that there are no relationships between the company  
and the auditor its employees or its affiliates that may reasonably  
be thought to impair the auditor’s objectivity and independence 
during the year ended 31 december 2014 the company committed 
expenditure of 411000 on audit services 2013 435000 and 
601000 on nonaudit work 2013 722000 the nonaudit work 
undertaken by ey related to auditrelated assurance services and 
corporate finance services and these fees were reviewed and approved 
by the committee under the terms of the policy further details  
as to the nature of the services provided are set out in note 6 to the 
consolidated financial statements there is no limitation of liability  
in the terms of appointment of ey as auditor to the company
effectiveness of external auditor
to assess the effectiveness of the external audit process the external 
auditor provides information on the steps they have taken to ensure 
objectivity and independence including in relation to the provision  
of any nonaudit services the committee monitors the external 
auditor’s performance behaviour and effectiveness during the 
exercise of their duties and this informs the committee’s decision  
on whether or not they should recommend reappointment on an 
annual basis the chairman of the audit committee meets with  
the company’s audit partner at ey apart from formal scheduled 
meetings between three to four times during the year to discuss 
matters of process relationships between the country audit teams  
58 ophir energy plc
 
report of the  
audit committee  
continued as well as review of plans and completion progress further comfort 
was provided by the 2013 external audit tender process which 
provided considerable opportunity to compare points of auditor 
effectiveness between firms
reappointment of external auditor
the committee has reviewed the independence and effectiveness  
of ey and is satisfied they have remained independent throughout 
the year the committee has recommended to the board that the 
reappointment of ey as the company’s auditor is proposed to 
shareholders at the agm in may 2015 
internal audit
as reported last year in 2013 the committee agreed that the 
company had reached the stage of its development where it was 
appropriate to appoint an internal auditor it was agreed that initially 
the role of internal auditor could be on an outsourced basis and 
following a detailed tender process the company appointed mazars 
llp  an internal audit needs assessment was conducted in the first 
quarter of 2014 which focused on the company’s objectives and 
operational risks to the business over a threeyear period to ensure 
the effectiveness of the function the committee reviewed and 
approved the 2014 internal audit plan key actions undertaken  
by mazars llp during the period under review included 
• review and control testing of a new accounting system 
implemented during the year
• review of the payroll system function and
• review of processes and control surrounding the treasury function
additionally in december 2014 internal audit undertook its first asset 
review in libreville gabon the purpose of this review was to assess 
the management of key operational activities and to establish 
whether these were in accordance with the group’s policies and 
procedures and were effective both in terms of design and operation 
the scope of this review included financial controls governance 
frameworks compliance information systems including disaster 
recovery and business continuity plans and human resources  
the findings from the review will be followed up during 2015 and 
reported to the audit committee 
key actions to be undertaken as part of the internal audit plan in  
2015 include reviewing risk management controls and processes  
an assessment of production sharing contract psc compliance  
and to undertake further asset visits to some of the company’s  
main operational offices 
risk management and internal controls
the board has delegated its responsibility for monitoring the 
company’s system of internal control and for reviewing its 
effectiveness on a continual basis to the committee 
the company’s system of internal control is designed to safeguard 
the company’s assets and to ensure the reliability of financial 
information for internal and external use any system of control  
can provide only reasonable not absolute assurance that assets  
are safeguarded transactions are correctly authorised and recorded 
and that any material errors and irregularities are detected within a 
reasonable timeframe the company’s internal controls are therefore 
designed to manage rather than to eliminate risk recognising that 
not all risks can be eliminated and the cost of control procedures 
should not exceed the expected benefits
the committee regularly reviews the effectiveness of the company’s 
system of internal controls which covers financial operational and  
risk management processes lines of responsibility have been  
clearly defined and a delegated authority schedule approved and 
implemented the committee considers the draft papers prepared  
for the annual review of effectiveness of the risk management 
procedures adopted by the company prior to being submitted  
to the board for approval
the company operates a risk management process under which 
significant risks are identified their likelihood and impact considered 
and actions taken to manage those risks the committee also 
receives regular updates on operational risks from the corporate 
responsibility committee the committee reviews the company’s 
risks every six months prior to a board review from which particular 
risks may be identified for further detailed presentation and discussion 
at the board meetings in particular during 2014 the committee met 
with the executives responsible for evaluating country risks and it 
risks and cyber security and reviewed the respectively policies on 
them the principal risks identified by the company are set out on 
pages 18 to 21
the board has reviewed the effectiveness of the internal control 
systems in operation during the financial year and where necessary 
and appropriate action has been taken to remedy any identified 
59 annual report and accounts 2014
strategic report
governance 
report
financial  
statements
supplementary 
information failings or weaknesses the following illustrates how the risk management 
process and the system of internal control operated during 2014 
matter action
establishment  
of a single 
fullyintegrated 
accounting  
system
during the year management implemented the 
introduction of an improved financial accounting 
system so that there was an integrated and 
auditable authorisation process for procurement 
the committee closely monitored the process and 
any risks in the transition to the new system and  
any undue delays in implementation 
schedule of 
delegated  
authority
management had undertaken its annual  
review of the group’s delegation of authority 
appropriate modifications and improvements  
to the authority levels were made to reflect  
the group’s current operations
yearend  
compliance
a formal process exists for yearend risk 
management compliance reporting requiring  
the executive directors together with the  
senior management team to confirm their 
responsibilities for risk management and  
internal control ultimate compliance reporting  
is required from each board member
internal audit 
function
the internal audit function has been formalised 
during the year a partner of mazars llp attends  
all meetings of the committee and reports to  
the director of finance and has direct access  
to the executive directors and the chairman  
of the committee
antibribery and whistleblowing
the main emphasis during the year has been the development and 
rollout of an improved online system for conducting due diligence  
on third parties with whom we do business this online programme 
enhances our ability to identify risks and captures the analysis of those 
risks as well as approval decisions at the management level another 
area of focus has been on the development of an enhanced due 
diligence process for highrisk new business partners and opportunities 
the company is committed to the highest standards of business conduct 
and has adopted a whistleblowing hotline to support the achievement 
of this goal all company staff are encouraged to raise concerns with 
their line manager initially or alternatively the compliance officer 
who is the general counsel lyndon powell independent nonexecutive 
director or the director of hr concerns are carefully considered in 
order to decide what action if any should be taken for those who  
do not wish to raise a concern within the company they may report it 
through safecall an independent company which provides an alternative 
method of reporting concerns using specially trained call operators 
the service is available 247 for all staff as well as business partners  
it also allows for anonymous reporting the company will not tolerate 
any retaliation or victimisation against anyone who has raised a 
concern in good faith
during the year ended 31 december 2014 no whistleblowing issues 
were raised
60 ophir energy plc
report of the  
audit committee  
continued lyndon powell 
corporate responsibility 
committee chairman
membership and attendance
the members of the committee all of whom are independent 
nonexecutive directors together with details of their individual 
attendance at meetings held during the year ended 31 december 
2014 are set out below
committee members
meeting 
attendance
lyndon powell committee chairman 33
bill schrader 33
alan booth 33
vivien gibney 33
john lander resigned from the committee on leaving the board on 28 february 2014  
no committee meetings were held in the year before his retirement from the board
report of the corporate responsibility 
committee chairman
dear shareholder
corporate responsibility cr is a fundamental principle of how  
we do business and whilst the board clearly recognises that its 
main mission is to maximise shareholder value it is very much 
aware that cr underpins all its activities it has tasked the cr 
committee to oversee the development and implementation of 
cr systems and procedures that are of the highest international 
safety environmental and ethical standards and complement 
the company’s strategic vision and business objectives 
2014 has seen the cr committee continue to evolve to fulfil  
this task our aim is to be the key platform to avoid or mitigate 
operational risks last year i reported that an external  
evaluation of the cr committee recommended an increase  
in the committee’s responsibilities and that the merits of 
establishing an operational risk committee should be  
examined a thorough review concluded that the newly adopted 
responsibilities of the cr committee negated the requirement  
for a separate operational risk committee and these risks  
would be best managed within the cr committee to assist  
this function a number of policies were subsequently revised  
to reinforce our risk mitigation procedures and an enhanced  
risk matrix created the matrix is considered at each cr meeting 
and operational risks are highlighted as appropriate to the  
audit committee and the board the cr committee’s terms  
of reference have been revised accordingly
this year has been ophir’s most operationally demanding with two 
simultaneous offshore drilling campaigns and a number of seismic 
surveys completed great care has been taken in establishing and 
maintaining robust health safety and environment hse systems 
in all areas of operations and prior to any activity risk assessments 
and environmental impact assessments eia were completed 
the safe management of hse is a fundamental core value and is 
nonnegotiable we continue to place the safety of our employees 
and the protection of the environment at the forefront of our 
planning i am pleased to report that 2014 has been another 
the company chairman chief executive officer and chief operating 
officer have an open invitation to attend all committee meetings  
as guests in addition the company’s director of hr corporate 
responsibility manager and the director of corporate services are 
invited to attend each meeting to present their reports to the 
committee other senior members of staff and external advisors  
may be invited to attend as necessary
61 annual report and accounts 2014
strategic report
governance 
report
financial  
statements
supplementary 
information
report of the corporate 
responsibility committee successful year with no significant hse or security incidents  
and the committee remains fully committed to achieving an  
equally good result going forward 
a key focus this year has been monitoring changes to policies to 
make them oil  gas producers ogp compliant and ensuring  
the ongoing hse training continues apace which has included  
a number of specific crisis management training periods 
as part of our corporate responsibility ophir gives particular 
emphasis to community development projects we see proactive 
engagement with the local communities not only as a priority in 
mitigating any potential impact of our activities but very much  
a key constituent for future success we endeavour to ensure that  
the required community development projects match the needs of 
the local communities as well as providing them with opportunities 
this year particular emphasis has been paid in maintaining the 
tempo of projects which has resulted in the successful completion 
of renovations to a school in tanzania the provision of a water well  
and reconstruction of a primary school in equatorial guinea and  
a school building project in kenya these projects not only make 
substantial improvements to the educational prospects of the  
local community but when coupled with our wider activities of cr 
such as the sponsoring of undergraduates on petroleum courses in 
tanzania have the potential to make ophir the partner of choice 
this year ophir has initiated its first staff charity fund in support  
of the egmont trust charity which is in addition to making several 
donations to charities and not for profit organisations across our 
operational areas in recognition of cr value an additional kpi  
has been included for 2015 which is to carry out at least one  
community project over and above the psc obligations 
last year i reported the implementation of a global travel tracking 
system which continually tracks the flights and locations of employees 
worldwide it has been especially useful this year in west africa where 
careful route selection assisted in minimising the potential exposure  
of transiting staff to ebola management are complimented for their 
proactive and diligent approach to the ebola crisis with their sound 
avoidance planning and the provision of medical advice to employees 
201 4 also saw ophir reinforce its uncompromising approach to bribery 
and corruption by the introduction of two new policies the committee 
sponsored antibribery and anticorruption policies to the board which 
were subsequently approved and distributed i can also confirm that  
the company is compliant with its reporting on ghg greenhouse 
gas emissions 
during the year the committee decreased by one following the 
retirement of john lander from the board on 28 february 2014 
following the appointment of bill higgs as chief operating officer to 
the board in september 201 4 he has been invited to attend all future 
meetings of the cr committee we welcome bill and are extremely 
pleased that he will be attending the committee’s meetings in future 
bill’s broad experience of the oil  gas industry will further strengthen 
the role and responsibilities of the cr committee 
looking forward a key focus for the committee in 2015 will be 
around hse implications for the company following the acquisition 
of salamander energy plc
lyndon powell
corporate responsibility committee chairman
18 march 2015
role and responsibilities of the corporate 
responsibility committee
the committee is responsible for evaluating the effectiveness  
of the group’s policies and systems for managing health and 
safety the environment security community projects and 
business ethics including human rights and matters relating  
to equality and diversity and nonfinancial risks across the 
group’s operations following recommendations from  
the 2013 committee evaluation the committee in 2014 
adopted increased levels of responsibilities and has revised 
its respective terms of reference to take account of these  
additional responsibilities
it was previously reported that consideration would be given to the 
merits of creating an operational risk committee in 2014 the 
decision was taken to not set up a separate committee and instead 
the monitoring of operational risk is to be overseen by the committee
the committee’s revised full terms of reference are available on the 
company’s website at wwwophirenergycomaboutusboard
committeescorporateresponsibility
62 ophir energy plc
report of the corporate  
responsibility committee 
continued • community projects a revised corporate responsibility policy 
statement has been approved and implemented during 201 4 at each 
meeting of the committee it reviews the status and future direction  
of community project work the committee recognises the significant 
benefits which can result in having a successful community project 
strategy however it is also careful to consider the risks associated  
with these projects all projects are reviewed to check they are suitable 
effective and safely managed this is to ensure that the hse  
standards expected of the company’s operations equally apply to  
the management of its community projects the pace of community 
projects is increasing the company had four community projects 
underway during 201 4 one of which is complete t anzania with two 
nearing completion equatorial guinea and kenya the committee 
also endorsed the company’s sponsorship of two t anzanian students 
to enrol in the four year undergraduate petroleum engineering  
degree at the university of dar es salaam and sponsorship for two  
uk students in the petroleum geoscience msc at royal holloway  
in 201 5 the committee will continue to monitor improvements to the 
community project strategy for further information relating to these 
successful projects please refer to pages 42 to 44 of the corporate 
responsibility report
further reviews carried out by the committee in 2014 included 
• hse key performance indicators
• routine hse training for the board all employees and contractors
• auditing of contractors’ hse systems prior to engagement
• reports on hse incidents within the company including a particular 
focus on lost time injuries and the results of any investigations and
• hse and cr external communications
in 201 5 the committee will analyse the results of an hse gap analysis 
carried out by the company in late 201 4 one objective of this analysis is 
to ensure ophir’s corporate responsibility objectives are optimally set up 
to address any potential new mergers or acquisitions 
further information on the company’s approach to corporate 
responsibility and hse matters can be found in the corporate 
responsibility report on pages 38 to 45
greenhouse gas emissions
reducing energy consumption and associated emissions of 
greenhouse gases remains a priority of the company a breakdown  
of the group’s energy consumption and associated greenhouse gas 
emissions during 2014 is set out on page 40 
corporate responsibility committee activities
during 2014 significant progress was made by the cr committee 
covering many areas the main activities of the committee included 
the following
• health and safety 2014 was an extremely busy year for the 
company with two simultaneous offshore drilling operations in  
west and east africa the committee validated the initiative to 
increase hse resources on the ground in the project areas 
particularly in relation to drilling projects the health and safety 
statistics from those operations were very positive with only one  
lti recorded resulting from a hand injury the committee is pleased 
with these positive results and views them as a sound indication 
that the safety systems in place are working effectively however  
the committee proposed that the company should place greater 
emphasis in the future on measuring ‘leading’ in addition to ‘lagging’ 
hse indicators this will add valuable data in accident prevention 
initiatives during 2014 the committee endorsed an increased 
training rollout with focus on hazard identification processes oil 
spill response and crisis and emergency management procedures 
from on scene training right up to corporate response training the 
committee also reviewed and approved changes to the company’s 
hse policy previously the policy addressed mainly hse matters 
following its revision it has been expanded to include two parts 
part 1 health safety and security policy and part 2 environment 
and climate change finally with regards to health and safety the 
committee carefully considered the ebola crisis in west africa and 
how it may affect the company’s operations particularly in 
equatorial guinea contingency plans were reviewed in case the 
crisis directly impacted the company’s operational activities 
• environment the committee can report that during the execution 
of the company’s operations in 2014 there were no significant 
reportable environmental incidents during the year we received 
regular status reports and confirmed that prior to the commencement 
of any operational phase all necessary environmental permits and 
impact assessments were complete and compliant
• security  risk the security risks and plans for each operation are 
examined to ensure suitable risk mitigation is in place this year  
we reviewed and incorporated an updated risk assessment and risk 
matrix format further to its terms of reference the committee has 
reviewed the company’s risk register pertaining to operational risk 
at every meeting during the reporting period there have been no 
reported security incidents in 2014
63 annual report and accounts 2014
strategic report
governance 
report
financial  
statements
supplementary 
information nicholas smith 
nomination committee 
chairman
report of the nomination 
committee chairman
dear shareholder
elsewhere in the annual report we have set out the company’s 
strategic objectives and discussed the changing commercial 
environment in which we operate and the associated risks  
with these contexts in mind the principal role of the nomination 
committee is to ensure the board has the right balance of skills 
experience independence and knowledge of the company to 
ensure the future success of the company this involves more 
than just filling vacancies as they arise the composition is 
continually considered by the committee to ensure it is fit for 
purpose now and in the future 
in view of this there were three areas of focus for the committee 
during 2014 restructuring the executive management team at 
board level undertaking a search process for the newlycreated 
role of chief operating officer and recommending to the board 
on its composition 
nicholas smith
nomination committee chairman
18 march 2015
membership and attendance
the members of the nomination committee together with details  
of their individual attendance at meetings held during the year ended  
31 december 2014 are set out below
committee members
meeting 
attendance
nicholas smith committee chairman 44
nick cooper 34
ronald blakely 44
lyndon powell 44
the board considers a majority of the members of the committee who 
served during the year to be independent including the chairman of the 
board who was independent on appointment there were no changes 
to the committee’s membership during the year lyndon powell will step 
down from the committee on retiring from the board at the conclusion 
of the 201 5 agm 
role and responsibilities of the nomination committee
during 201 4 the committee reviewed its t erms of reference to ensure 
they remained appropriate the t erms of reference of the committee  
are available on the company’s website at wwwophirenergycom
aboutusboardcommitteesnomination and are fully compliant  
with section b21 of the code
appointment of chief operating officer
during the period under review the committee together with the 
chief executive officer worked with preng  associates an executive 
search agency in its search for suitable candidates for the role of 
chief operating officer preng  associates has no other connection 
with the company
an appropriate job description and requisite skills for the role were  
first agreed with the committee and the chief executive officer  
which led to a short list of suitable candidates being recommended 
the candidates identified from the search were interviewed and met 
with each member of the board owing to his extensive experience  
in global exploration and having recently served as a chief executive 
officer of mediterranean oil  gas plc the committee recommended 
to the board that bill higgs be appointed as chief operating officer 
with effect from 10 september 2014 on appointment to the board 
bill higgs was provided with a formal induction programme tailored  
to his role as chief operating officer of the company this included 
visits to the tanzania and perth offices to understand the drilling 
64 ophir energy plc
report of the  
nomination committee operations attending investor roadshows board strategy meetings 
and also attendance at offsite leadership events in addition  
bill higgs was provided with background information concerning  
the group to assist his understanding of the nature of the company 
its business and the markets in which it operates details of board 
procedures and other governancerelated matters were also provided 
as part of his induction process
board composition 
this year in the context of the appointment of the chief operating 
officer the management of costs and the senior resource available 
below board level the board focused on the level of executive leadership 
that should be represented on the board going forward it concluded 
that there was sufficient financial and strategic experience on the 
board to make it no longer necessary for the roles of chief financial 
officer and director of corporate strategy to remain as board positions 
the chief executive officer was seen as highly competent in his 
knowledge of the company’s finances he had also previously served 
as a chief financial officer of a ftse 250 listed company in the same 
sector and it was further felt that the skills and experience of some  
of the nonexecutive directors complemented this as part of the 
streamlining of the board the committee also evaluated the 
appropriateness of the role of the director of corporate strategy 
given the evolution of the company since inception the committee 
in its recommendation to the board agreed that the board would  
be more effective in appointing a chief operating officer thereby 
resulting in the stepping down of the director of corporate strategy 
from the board in november 2014
nonexecutive directors 
with the appointment of vivien gibney alan booth and bill schrader in 
2013 together with the skills and experience they bring to the board 
the committee did not consider it necessary to recommend any 
further nonexecutive directors to be appointed to the board during 
the period under review 
however as part of the completion of the acquisition of salamander 
energy plc the committee considered the effectiveness and value of 
appointing dr carol bell to the board her relevant skills and experience 
in the oil  gas sector and continuity of knowledge surrounding the 
business of and the assets held by salamander energy plc were regarded 
as highly desirable following due consideration the committee 
recommended and the board in turn approved the appointment  
of carol bell as a nonexecutive director of the company on  
2 march 2015 she will stand for election to the board at the 2015 
agm an external search firm was not used as the appointment  
was recommended to preserve the knowledge and understanding  
of salamander and its operations amongst the board 
succession planning
the committee assessed succession planning of the executive 
directors during 2014 the committee agrees that the company  
has good internal candidates to succeed in more senior roles as the 
company continues to grow the formal board evaluation undertaken 
in 2014 highlighted the increasing importance of succession planning 
at board level to ensure the company’s future success and continuity 
of talent this will be an area of focus and a matter for the committee 
to evaluate again in 2015 in 2016 nicholas smith will have served nine 
years on the board and therefore in line with the code ron blakely 
the senior independent director will be leading a succession planning 
process during 2015
diversity policy
the board and committee are committed to equal opportunities  
in recruitment and succession planning policies and continue to 
welcome the current emphasis on diversity in general the company 
remains dedicated to encouraging diversity at all levels of the 
business acknowledging that a more diverse workforce with the  
right mix of skills experience culture ethnicity nationality gender  
and knowledge can make a valuable contribution to the company  
a statement of the company’s policy on diversity is set out in the 
strategic report on page 45
the committee also has due regard to the benefits of diversity on the 
board including gender but also takes into account other aspects of 
diversity to achieve a proper balance when searching for candidates 
for board positions the committee will only use the services of those 
executive search firms who have signed up to the voluntary code of 
conduct for executive search firms as recommended by lord davies’ 
report the overriding criterion is always however merit 
the committee stresses that board appointments are majorly based 
on the contribution each member brings to the board and not to 
merely satisfy any prescribed quota requirements as at the date  
of this report women constitute 22 of the board the board hopes 
to retain or improve this level in the future
65 annual report and accounts 2014
strategic report
governance 
report
financial  
statements
supplementary 
information the report complies with the provisions of the companies act 2006 
and schedule 8 of the large and mediumsized companies and 
groups accounts and reports amendment regulations 2013
the report has been prepared in line with the recommendations  
of the uk corporate governance code 2012 and the requirements  
of the ukla listing rules details of the company’s financial 
instruments and hedging activities and its exposures to credit risk  
and liquidity risk are set out in full in note 20 on pages 119 to 123  
of the financial statements
results for the year ended 31 december 2014
the company’s results for the financial year are shown in the 
consolidated financial statements on pages 98 to 154
directors
biographical details for the directors of the company who held office 
during the year ended 31 december 2014 and at the date of this 
report are set out on pages 48 and 49 details of directors’ service 
contracts or letters of appointment their interests in the ordinary shares 
of the company and in any of the company’s longterm incentive and 
other share schemes are set out in the directors’ remuneration report 
which can be found on pages 69 to 93 the directors’ insurance and 
indemnity provisions are set out on page 54
substantial shareholders
as at 31 december 2014 and 18 march 2015 being the date of this 
report the company had been notified of the following substantial 
holdings of voting rights in the issued share capital of the company  
in accordance with the disclosure and transparency rules and other 
regulatory requirements as set out in the table below
share capital
the calledup share capital of the company together with details  
of shares allotted during the year is shown in note 21 to the group 
financial statements
purchase of own shares
the directors on behalf of the company after assessing the nearterm 
capital needs of the business and the discount the company’s shares 
were trading at in relation to the underlying core value of the asset 
base approved a share buyback programme of up to 100m worth  
of ordinary shares in august 2014 following prior shareholder approval 
at the 2014 agm
 at 31 december 2014 a total of 15522066 shares with an aggregate 
nominal value of £38805 at a cost of £27 7m 442m representing 
2614 of the share capital had been repurchased at an average 
price per share including transaction costs of 178 pence 
shares repurchased under this authority are currently held as treasury 
shares the shares held in treasury may be used to satisfy options 
under the company’s various employee share schemes or cancelled 
during the year no shares were cancelled and 611952 shares were 
used to satisfy option exercises under employee share schemes 
accordingly as at 31 december 2014 14910114 shares were held  
in treasury 
name
number of
 shares held as 
at 31 december
 2014
 
holding as at
 31 december
 2014 1
number of
 shares held as
 at 18 march
 2015
 
holding as 
at 18 march
 2015 2
capital group of companies 75863412 1310 58981129 826
kulczyk investments sa 56607366 978 56607366 793
blackrock group 54503941 942 54246395 760
sailingstone capital partners 49659917 858 51726774 725
prudential plc group of companies 37860440 654 42521812 596
hotchkis  wiley capital management 37392348 646 47355071 663
janus capital 30627569 529 32613584 457
wellington management group llp 29226406 505 19877297 278
mittal investments sàrl 25314653 437 25314653 355
the vanguard group 19661391 340 20009304 280
1 calculated by reference to the issued share capital of the company as at 31 december 2014 
2 calculated by reference to the issued share capital of the company as at 18 march 2015
66 ophir energy plc
directors’ report the general authority to repurchase shares will expire at the company’s 
2015 agm the directors presently intend that a resolution to renew 
this authority will be proposed at the 2015 agm 
shareholders’ rights
the rights and obligations in the company’s articles of association 
relating to the ordinary shares of the company are set out in the 
shareholder information on pages 156 and 157  the articles can  
be found on the company’s website
dividend policy
the directors have not recommended a final dividend for the year 
ended 31 december 2014 and did not declare any interim dividends 
during the year the directors do not anticipate that the company will 
pay dividends in the near future the directors envisage that as the 
company advances the development of its operations a dividend 
policy will be determined based on and dependent on the results  
of the company’s operations financial condition cash requirements 
prospects profits available for distribution and other factors deemed 
to be relevant at the time
report on greenhouse gas emissions
a breakdown of the company’s energy consumption and associated 
greenhouse gas emissions during 2014 is set out in the strategic report 
on page 40 these figures have been calculated in accordance with  
the guidance provided by the department for environment food  
and rural affairs defra and the department of energy and climate 
change decc and have been classified under the ‘scopes’ set out in 
the world resources instituteworld business council for sustainable 
development’s greenhouse gas protocol
diversity
a statement of the company’s policy on diversity is set out in the 
strategic report on page 45 and the board policy on diversity is 
summarised on page 65 of the nomination committee report
human rights
a statement of the company’s position on human rights is set out  
in the strategic report on page 45
employees
the company is committed to actively communicating with employees 
in many ways including regular briefings on financial performance 
and training on health and safety matters the company continues 
to have a diverse workforce comprising local employees contractors 
and expatriates at most sites the company is an equal opportunities 
employer and where existing employees become unable to perform 
their existing role due to a disability it is the company’s policy to 
provide continuing employment under similar terms and conditions 
wherever practicable and to provide training and career development 
as at 31 december 2014 the company employed 133 people  
2013 119 people
corporate responsibility business conduct and ethics and 
political donations
the company is committed to sound business conduct in its  
relationships with stakeholders shareholders employees customers 
business partners and suppliers governments and regulators 
communities and the environment the company seeks to conduct  
its operations with honesty integrity and openness and with respect 
for the human rights and interests of our employees and as such 
ensures that its antibribery policy is fully understood and implemented 
by all employees and other key stakeholders the board is also fully 
committed to ensuring that high standards of health safety and 
environmental practices are implemented and maintained by the 
company further details are set out in the corporate responsibility 
review on pages 38 to 45
the company has not made any political donations during the year 
the company’s policy is not to make political donations however certain 
socially responsible activities which may include actions undertaken 
through the company’s social and community related programmes 
attendance at conferences and receptions where communicating  
the company’s views might be vital to its business interests may 
be inferred by some as making political donations as defined in the 
companies act 2006 the company does not consider such activities 
as being political donations but nevertheless ensures that all such 
activities described in this report have been conducted in compliance 
with the company’s code of conduct and anticorruption policy
directors’ responsibility statement
the directors’ responsibility statement is set out on pages 94 and 132 
the company’s financial statements are included on pages 98 to 154
change of control
the company has entered into a number of commercial contracts 
which might take effect alter or terminate on a change of control of 
the company however none of these is considered to be significant 
in terms of their likely impact on the business of the company as a 
whole details of change of control clauses contained in the service 
agreements of the executive directors are set out on pages 78 and 79 
67 annual report and accounts 2014
strategic report
governance 
report
financial  
statements
supplementary 
information of the directors’ remuneration report certain company employees 
have agreements providing for compensation for loss of office or 
employment that occurs because of a change of control
all the company’s share incentive plans contain provisions relating  
to a change of control and full details of these plans are provided  
in the directors’ remuneration report on pages 69 to 93 generally 
outstanding awards under the foundation incentive plan the  
2006 plan and the deferred share plan will vest in full and become 
exercisable on or before a change of control the remuneration 
committee may allow outstanding awards under the longterm 
incentive plan ltip to vest to the extent that any performance 
condition is satisfied at the date of that event and unless the 
remuneration committee decides otherwise such level of vesting  
will be reduced to take account of the fact that the award is vesting 
early ltip awards may instead be exchanged for equivalent  
awards over shares in the acquiring company
corporate governance statement
the corporate governance statement on pages 46 to 55 in accordance 
with rule 7 2 of the disclosure and transparency rules and rule 986 
5 and 6 of the listing rules forms part of this directors’ report
directors’ statement as to disclosure of information to auditors
the directors who were members of the board at the time of approving 
the directors’ report are listed on pages 48 and 49 having made 
enquiries of fellow directors and of the company’s auditor each of 
these directors confirms that
• to the best of each director’s knowledge and belief there is no 
information that is information that is needed by the company’s 
auditors in connection with preparing their report of which the 
company’s auditors are unaware
• each director has taken all the steps a director might reasonably  
be expected to have taken to be aware of relevant audit 
information and to establish that the company’s auditors are 
aware of that information
auditor
details of the company’s policy on external auditor rotation are  
set out on page 58 of the corporate governance report further to 
provision c37 of the code listed companies are expected to put their 
external audit contract out to tender at least every 10 years in 2013 
the audit committee undertook a review of audit services including  
a tender by suppliers in advance of the 2014 audit which concluded 
ey llp should continue as the company’s auditor for 2014
the audit committee have also proposed that resolutions to reappoint 
ey as the company’s auditor and to authorise the directors to set the 
auditor’s remuneration be proposed at the 2015 agm
going concern
the group’s business activities together with the factors likely to 
affect its future development performance and position are set out  
in the strategic review on pages 2 to 45 the financial position of  
the group consisting of cash resources of 1173 million its cash  
flows and its liquidity position which are described in the financial 
statements on pages 98 to 154 in addition note 20 to the financial 
statements include the group’s objectives policies and processes  
for managing its capital its financial risk management objectives 
details of its financial instruments and hedging activities and its 
exposures to credit risk and liquidity risk
in making their going concern assessment the directors have 
considered group budgets and cash flow forecasts which include  
the impact of the completed acquisition of salamander energy plc 
subsequent to yearend for a period of at least 12 months as a result 
of this review the directors have a reasonable expectation that the 
group has adequate resources to continue in operational existence for 
the foreseeable future thus they continue to adopt the going concern 
basis of accounting in preparing the annual financial statements
post balance sheet events
a summary of the key post balance sheet events is set out in note 31 
to the group financial statements
by order of the board
nick cooper
chief executive officer 
18 march 2015
registered office
level 4 123 victoria street london sw1e 6de
company registered in england and wales no 5047425
68 ophir energy plc
directors’ report 
continued vivien gibney 
remuneration committee  
chairman
remuneration committee key activities in 2014
performance and reward
at the same time as successfully changing the future scale of our 
business 2014 was also a year in which substantial operational 
progress was achieved 
in what has been a challenging environment for ep companies 
the executive leadership team has delivered strong operational 
performance we successfully derisked our exposure in targeted 
areas eg tanzania as well as discovering additional resources 
achieved a three year historic finding costs of 134boe and  
had exploration success in seven out of twelve wells finally and 
importantly we achieved our successes safely as a result annual 
bonuses payable prorata for the part year where relevant were  
in the region of 52 to 58 of the maximum amount payable
taking a longerterm view and reflecting our strong relative 
performance during the three year period from our move  
to the official list through to may 2014 the company was  
ranked in the top quartile for each of the awards granted in 201 1  
full details are included on page 86 and so these awards vested  
in full the awards granted in the following financial year are 
anticipated to vest in april 2015 with performance ranking our 
relative total shareholder return just below the top quartile 
against a basket of our sector peers
the committee is comfortable that the incentive outcomes over the 
relevant performance periods reflect the level of performance achieved 
in what has been a challenging and difficult external environment
changes to the executive board
as noted above and detailed in the report of the nomination 
committee a restructuring of the board was undertaken during 
august 2014 to ensure the board included the appropriate balance 
of skills to lead ophir through the next phase of its development  
as a result of this exercise in light of the level of financial and 
strategy expertise on the board bill higgs was appointed as chief 
operating officer and dennis mcshane and lisa mitchell left the 
board in line with our shareholder approved remuneration policy 
both dennis and lisa were treated as ‘good leavers’ under the terms 
of the 201 1 long term incentive plan which included performance 
conditions to be tested at the normal vesting date and rewards 
being time prorated with payments in lieu of notice restricted  
dear shareholder
i am delighted to have the opportunity to provide you our 
shareholders with an overview of the key activities of the 
committee during the year
2014 has been a transformational year for ophir which has  
seen both a successful restructuring of the board and more 
recently the acquisition of salamander energy plc which  
changes our footprint mix of activities and scale we have  
also monetised half of our stake in our lng project in tanzania 
from a remuneration perspective in what has been a busy  
year the committee has worked to ensure that the policy 
overwhelmingly approved by shareholders at our 2014 agm  
has been implemented effectively 
remuneration and strategy
as detailed in the reviews by the chairman and the chief executive 
our company as enlarged by the combination with salamander 
remains an exploration focused upstream company our strategy is to 
create shareholder value through the exploration and appraisal phase 
of the ep cycle which will now be supported by selectively reinvesting 
cash flow from salamander’s existing production during the ep 
cycle we will continue to seek to monetise value at the appropriate 
time to maximise shareholder returns and exercise capital discipline 
with our strategy continuing to focus on longterm shareholder 
value creation and our activities impacting over more than a  
single year it therefore remains appropriate for our remuneration 
policy for our two executive directors to be weighted towards 
longterm variable pay with fixed pay set at or below comparable 
market benchmarks albeit at levels that are not considered likely  
to inadvertently create retention issues 
69 annual report and accounts 2014
strategic report
governance 
report
financial  
statements
supplementary 
information
remuneration 
report
chairman’s annual  
statement on  
remuneration to the balance of their notice period from the date that they 
ceased employment these payments were phased and subject to 
mitigation full details of the payment relating to each executive’s 
cessation of employment are set out on pages 88 and 89
the remuneration of bill higgs who was appointed on 10 september 
2014 was structured wholly in line with our shareholder approved 
remuneration policy and there was no compensation provided for 
awards forfeited on joining the company
application of remuneration policy for 2015
the committee considered the overall structure of remuneration  
in 2014 and in particular whether there should be any revisions  
to the performance metrics targeted for improvement in 2015 
in conclusion as the committee utilises a broad range of performance 
metrics in the annual bonus plan which are directly linked to our 
key performance indicators and our longterm incentive measures 
how well we perform in creating longterm shareholder value 
relative to our peers the committee is comfortable that there 
should be no substantive change in our general approach to 
applying policy in 2015 however to better reflect the enlarged 
group’s strategy we have broadened the number of key 
performance indicators targeted for improvement in our 2015 
annual bonus plan to better support our 2015 corporate strategy
as detailed in last year’s policy and remuneration report the 
second stage of a two stage increase in salary for the chief 
executive officer nick cooper which was the subject of a 
comprehensive shareholder consultation in late 2013 and early 
2014 has been implemented as planned the committee  
strongly supports this increase shareholders have agreed it  
the operational performance and achievements of the company 
during the year as detailed above support it and we are cognisant 
of the importance of retaining and motivating the chief executive 
officer through this critical and challenging phase of our 
company’s development 
to further improve the alignment between executives and  
shareholders the committee has decided that any future  
executive director appointments should be subject to a minimum 
shareholding guideline of 200 of salary up from 100 the 
current chief executive’s guideline remains at 300 of salary
full details of the application of remuneration policy for 2015  
are set out on pages 81 and 82
relationship between remuneration and risk 
as an upstream oil and gas business ophir continues to be exposed 
to many different risks and therefore effective risk management  
is an integral part of the company’s activities from a remuneration 
perspective the committee undertakes a careful review of its 
remuneration policy annually as noted above to ensure that  
it is consistent with the business strategy and does not as an 
unintended consequence encourage or reward inappropriate 
risktaking by the executives the committee believes that the 
current structure weighted towards longterm variable pay and 
including operating with share ownership guidelines and claw back 
provisions does not inadvertently encourage undue risk taking
shareholder feedback
the board and the committee are committed to maintaining  
an open and constructive dialogue with our shareholders on 
remuneration matters we continue to engage in appropriate 
dialogue with our major investors on any significant changes to  
the remuneration policy and we and i welcome any feedback  
you may have
vivien gibney
remuneration committee chairman 
18 march 2015
70 ophir energy plc
chairman’s annual  
statement on remuneration  
continued for the purposes of completeness and transparency this part  
of the directors’ remuneration report includes a summary of the 
remuneration policy that was approved by shareholders at last  
year’s agm on 21 may 2014 and is currently intended to operate  
until the agm in 2017 
where references were made in the policy report last year to i 
specific levels of pay in 2014 eg the base salaries set with effect 
from 1 january 2014 and the scenarios chart which was based on 
these salary levels or ii where explanations were provided as to 
changes in remuneration practices between 2013 and 2014 these 
have been removed with the relevant information relating to 2015 
included in the annual report on remuneration disclosures relating 
to specific directors have been updated where required for example 
where there have been changes to board membership the full policy 
report approved by the company’s shareholders at last year’s agm 
can be accessed in the 2013 annual report on the company’s website 
at wwwophirenergycom 
a key element of the company’s remuneration policy is to achieve a level 
of remuneration which will attract motivate and retain executives of high 
calibre the company operates in a sector where investment decisions 
have multiyear impacts for this reason the committee has elected to 
adopt an executive remuneration policy which is structured so that a 
significant proportion is made up of longterm sharebased incentives
remuneration policy the committee’s policy is to adequately reward the executive directors  
if they meet or exceed the targets set under the variable components  
of their remuneration packages
the remuneration structure for executive directors is made up of  
two elements fixed remuneration consisting of base salary benefits 
including noncontributory health insurance and life assurance and 
pension contributions and variable remuneration annual bonus  
scheme and longterm share incentives
policy table
the table below sets out the key elements of executive director pay
element
purpose and  
link to strategy operation maximum opportunity 
framework used to 
assess performance 
base salary to provide the core 
reward for the role
sufficient level to 
help recruit and 
retain employees
reflects role and 
experience of 
individual
reviewed annually and effective 
from 1 january
decision influenced by
• role experience and  
personal performance
• average change in total  
workforce salary in the  
location where they  
are based
• total organisational 
salary budgets
• company performance and  
other economic conditions
salaries are benchmarked 
periodically and are set by  
reference to companies of  
a similar size and complexity
salaries will be eligible for increases during the threeyear period that the 
remuneration policy operates from the effective date 21 may 2014 
during this time for the chief executive officer once the increases detailed in  
last year’s report have been implemented salaries may be increased each year  
in percentage of salary terms in line with increases granted to the wider workforce 
where they are based
increases beyond those granted to the wider workforce in percentage of salary 
terms may be awarded in certain circumstances such as where there is a change  
in responsibility experience or a significant increase in the scale of the role andor  
size value andor complexity of the group 
where new joiners or recent promotions have been placed on a below market rate  
of pay initially a series of increases above those granted to the wider workforce  
in percentage of salary terms may be given over the following few years subject  
to individual performance and development in the role
the committee considers 
individual salaries at the 
appropriate committee 
meeting each year after 
having due regard to the 
factors noted in operating 
the salary policy
71 annual report and accounts 2014
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report
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statements
supplementary 
information
remuneration 
report
directors’  
remuneration policy element
purpose and  
link to strategy operation
maximum 
opportunity framework used to assess performance 
benefits to recruit and retain 
employees
directors are entitled to health insurance life assurance 
medical evacuation insurance travel insurance holiday  
pay sick leave and other groupwide benefits offered  
by the company 
other ancillary benefits including relocation expenses  
may be offered as required
the value of benefits 
may vary from year to 
year depending on the 
cost to the company 
from thirdparty 
providers
na
pension to provide long
term savings via 
pension provision 
the company operates a defined contribution pension 
scheme or may contribute directly into an executive 
director’s personal pension or pay a salary supplement  
in lieu of pension 
the executive directors 
receive a company 
contribution into  
the group or their 
personal pension  
plan or a salary 
supplement in lieu  
of pension to the 
greater of the statutory 
minimum and  
11 of salary
na
annual bonus to incentivise  
the execution of 
business strategy 
rewards the 
achievement of 
annual financial 
and strategic 
business targets 
and delivery of 
personal objectives
targets are renewed annually and relate to the business  
as a whole 
bonus level payable in cash is determined by the committee 
following the end of the financial year and is based on 
performance against targets set at the start of the year
clawback provisions apply that enable the committee  
to claw back value overpaid in the event of a material 
misstatement of the company’s results within a 
twoyear period
the maximum award 
under the annual  
bonus scheme is  
150 of salary
details of the performance measures used for the 
current year and targets set for the year under review 
and performance against them is provided in the  
annual report on remuneration 
the company’s bonus is based on the achievement 
against a range of business objectives and key 
performance indicators 
given the constantlyevolving nature of our business 
measures and their weightings may change each year 
reflecting the changing business priorities the key 
performance measures may include and are not 
limited to the following
• hsecr performance
• portfolio managementnew business
• reserves and resources
• financial objectives
• personal objectives
the committee retains discretion to reduce the bonus 
payment in the event of a serious hse incident or series 
of incidents 
for the bonus measures which operate using a sliding 
scale of targets the proportion of maximum bonus 
earned for achieving threshold performance is typically 
25 of that part of the bonus with 100 of the maximum 
opportunity payable for superior performance bonuses 
for performance between threshold and maximum are 
determined on a pro rata basis 
some elements of the current bonus structure include  
a subjective assessment of performance as opposed  
to operating on a sliding scale eg bonus earned  
in relation to hsecr performance and some  
personal objectives
72 ophir energy plc
directors’ 
remuneration policy 
continued element
purpose and  
link to strategy operation
maximum 
opportunity framework used to assess performance 
longterm  
incentive plan
to incentivise the 
achievement of 
business strategy 
over the longer term
the company’s longterm incentive plan ltip was 
approved by shareholders in 2011 and amended in 2012 
annual awards of free shares in the form of conditional 
awards or nilnominal cost options are granted which vest 
after three years subject to challenging performance targets 
and continued service
awards will be determined using the weighted average share 
price for the period for the threemonth period up to the time 
that the committee normally approves the individual ltip 
allocations ie normally around february this is considered 
to result in the number of shares comprising individual 
awards to better reflect the information presented to the 
committee at the time of approving the awards in principle
awards are granted as soon as the preliminary results are 
announced or later if a close period continues to apply as  
of that date
the normal ltip performance period is three calendar years 
beginning on 1 january of the year of grant and ending on 
31 december of the third year
to the extent that dividends were to be paid a provision 
would operate which would enable dividends to accrue  
on shares at the time of vesting 
a clawback provision exists that enables the committee  
to claw back value overpaid in the event of a material 
misstatement of the company’s results within a twoyear 
period in relation to the award
the maximum  
annual award is 200 
of salary although the 
committee is able to 
grant an award of up  
to 300 in exceptional 
circumstances
awards vest based on the company’s total shareholder 
return tsr performance over a threeyear 
performance period compared to a comparator  
group set on grant 
25 of the award vests at median rising on a straight 
line basis to 100 for upper quartile performance  
no vesting occurs for below median performance 
an underpin applies that enables the tsr vesting result 
to be scaled back if the vesting result is not consistent 
with underlying financial performance andor key 
operational financial metrics have not been achieved 
as the company continues to develop and grow over 
time the committee may introduce other measures  
in conjunction with tsr which support the longterm 
business strategy these may for example include 
strategic imperatives such as exploration and 
production targets or major project delivery as a 
minimum the committee would seek to consult with 
major shareholders before applying any changes to 
measures with any substantive change of policy 
potentially giving rise to the company seeking  
approval for a revised policy report
chief executive 
officer’s exceptional 
longterm incentive 
award as approved 
by shareholders  
in 2012
award structured to 
align the individual 
with the founders  
of ophir and reflect 
additional 
responsibilities 
applying to the 
chief executive 
officer following  
the 2012 board 
restructuring
an exceptional oneoff award of 1017568 shares was  
made to the chief executive officer on 19 june 2012 
the performance period for each tranche is three years 
clawback provisions apply that will enable the committee  
to claw back value overpaid in the event of a material 
misstatement of the company’s results within a  
twoyear period 
to the extent that dividends were to be paid a provision 
would operate which would enable dividends to accrue  
on shares during the vesting period which would be payable 
at the time of vesting
the award has three 
separate tranches 
tranche 1  
277518 shares 
tranche 2  
370025 shares and 
tranche 3  
370025 shares 
the three tranches 
comprising the award 
vest independently in 
2015 2016 and 2017
tranche 1 is subject to an absolute tsr performance 
condition which will require compound tsr growth of  
at least 20 pa from a share price of £428† for 25 
to vest through to 35 pa tsr growth for full vesting 
performance is measured from 19 june 2012 to 
18 june 2015
tranche 2 is subject to an equal split of relative tsr 
based on the same structure to the ltip targets noted 
above and absolute tsr performance with the same 
growth rates that apply for tranche 1 using a base share 
price of £409 performance is measured from 19 june 
2013 to 18 june 2016 for both the relative and absolute 
tsr performance targets 25 of the relative and 
absolute tsr performance conditions vest at the 
threshold performance levels 
tranche 3 will also operate based on an equal split of 
relative tsr based on the same structure to the ltip 
targets noted above and absolute tsr performance 
based on the same growth rates that apply for tranche 1 
performance will be measured from 19 june 2014 to 18 
june 2017 for both relative and absolute tsr performance 
targets 25 of the relative and absolute tsr performance 
conditions vest at the threshold performance levels
an underpin applies to all three tranches that enables the 
tsr vesting result to be scaled back if the vesting result is 
not consistent with underlying financial performance andor 
key operational financial metrics have not been achieved
dennis mcshane’s 
recruitment award 
2006 share  
option plan
to compensate for 
value forfeit on 
joining ophir in a 
full time executive 
capacity
to facilitate his recruitment as an executive director dennis 
mcshane received a buyout award which was calculated  
to compensate him for his lost profit and revenue growth 
expectations relating to his consultancy business which  
he was required to exit on joining the company 
the remuneration committee was provided with an 
overview of prospective revenue generation of his business 
and its forecast revenues and these were discounted by 95 
to determine a present value of the business this value was 
then converted into an equivalent value in ophir shares 
however rather than offering free shares through a 
conditional award or a nil cost option the compensation  
was structured as a market value option ie the free share 
amount was converted to a market value option grant with 
the same expected value so that the individual would only 
benefit from the growth in value of ophir shares
since the value to the individual of his business relied on 
delivering future revenues this structure of performance 
related compensation was considered to be the form most 
analogous to the value he had forfeited ie the committee 
bought out on a ‘like for like’ basis as far as practicable
furthermore recognising official list expectations the market 
value options are also subject to a relative tsr condition
the maximum number 
of shares eligible to 
vest under his award  
is 360127 which had  
a face value of £17m  
at grant this was 
considered to have  
a broadly similar 
expected value to  
the consultancy 
business he exited  
on joining ophir
the award vests in full based on achieving a  
minimum of median tsr performance against  
a group of sector peers 
while this feature was not part of the potential value 
forfeit on becoming an executive director the committee 
wished to ensure the recruitment package took  
due account of official list expectations in that the 
recruitment award should be subject to satisfying  
a company specific performance target 
the exercise price of the option is £471
  the number of shares comprising the award originally 880000 awards in total was adjusted to reflect the rights issue that became effective in march 2013 there was no adjustment applied  
in respect of the march 2013 placing
†  the share price targets were adjusted on the same basis as described above with a view to ensuring that the targets remained no more or less challenging in light of the rights issue that became 
effective in march 2013 the adjustment resulted in the share price targets being reduced by a factor of 1156329
73 annual report and accounts 2014
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governance 
report
financial  
statements
supplementary 
information element
purpose and  
link to strategy operation maximum opportunity 
framework used to 
assess performance 
share ownership to align the 
interests of 
directors with  
those of the 
company’s 
shareholders
the chief executive officer has a 300 of salary holding 
requirement and other executive directors are required  
to build up a holding of 100 of salary
the chief executive officer is required to retain 100 of the 
vested or exercised shares net of tax until the shareholding 
guideline is met any other executive director is required  
to retain 50 of the vested or exercised shares net of tax  
until the shareholding guideline is met
during the year ending 31 december 2014 the committee 
increased the share ownership requirement for the executive 
directors so that any appointment from 12 november 2014 
will be required to build and maintain a shareholding of 
equal value to 200 of their annual salary through the 
retention of 50 of the after tax number of shares vesting 
under the company’s ltips 
na na
nonexecutive 
directors
to provide a 
competitive fee 
which will attract 
high calibre 
individuals with  
the relevant skills 
and experience to 
enhance the board
the fees for the company’s chairman and independent 
nonexecutive directors are determined by the board as a 
whole with the relevant individuals absenting themselves 
from discussions relating directly to their own remuneration
the board’s policy in relation to the fee payable to the 
chairman of the board is that it should be comparable to the 
median fee payable for nonexecutive chairmen of 
companies of a comparable size and complexity 
remuneration levels are agreed based on external advice 
and give consideration to the time commitment and 
responsibilities of the role 
the chairman and nonexecutive directors are not  
entitled to participate in the company’s executive 
remuneration programmes or pension arrangements 
during the year the company did not issue options to any  
of the nonexecutive directors nor to any entity in which 
they are deemed to be interested
the fee levels are reviewed on a periodic basis with 
reference to the time commitment of the role and 
market levels in companies of comparable size 
and complexity 
fee levels will be eligible for increases during the three
year period that the remuneration policy operates 
from the effective date to ensure they appropriately 
recognise the time commitment of the role increases 
to fee levels for nonexecutive directors in general  
and fee levels in companies of a similar size and 
complexity
flexibility is retained to go above the fee levels set  
at the start of the year if it is necessary to do so to 
appoint a new chairman or nonexecutive director  
of an appropriate calibre 
no benefits or other remuneration are provided to 
nonexecutive directors
74 ophir energy plc
directors’ 
remuneration policy 
continued annual bonus plan  longterm incentive plan ltip policy
the committee will operate the annual bonus plan and the ltip 
according to their respective rules and in accordance with the listing 
rules and hmrc rules where relevant the committee consistent 
with market practice retains discretion over a number of areas 
relating to the operation and administration of these plans these 
include the following albeit with quantum and performance targets 
restricted to the descriptions detailed in the policy table above
• who participates in the plans
• the timing of grant of award andor payment
• the size of an award andor a payment
• the determination of vesting which may include making 
appropriative adjustments within the terms of performance 
conditions eg determining the treatment of a delisted comparator 
in a tsr peer group
• discretion required when dealing with a change of control  
eg the timing of testing performance targets or restructuring  
of the group
• determination of a good leaver for incentive plan purposes based 
on the rules of each plan and the appropriate treatment chosen
• adjustments required in certain circumstances eg rights issues 
corporate restructuring events and special dividends and
• the annual review of performance measures weighting and 
targets for the annual bonus plan and ltip from year to year
the committee also retains the ability to adjust the targets andor  
set different measures and alter weightings for the annual bonus  
plan and to adjust targets for the ltip if events occur eg material 
divestment of a group business which cause it to determine that the 
conditions are no longer appropriate and the amendment is required 
so that the conditions achieve their original purpose and are not 
materially less difficult to satisfy
all historic awards that were granted under any current or previous 
share schemes operated by the company but remain outstanding 
remain eligible to vest based on their original award terms
choice of performance measures and approach to target setting 
the performance metrics that are used for annual bonus and 
longterm incentive plans are a subset of the company’s key 
performance indicators kpis 
in terms of annual performance targets a balanced scorecard  
of financial operational strategic personal and health and safety 
metrics is used as an upstream oil and gas exploration company 
reserves and resources targets are measures of our success 
commercialisation through portfolio management is important 
in crystallising value at the right time executives’ strategic choices  
and delivery are appraised and a good health and safety record 
underpins the activities we undertake
these metrics which form part of the company’s kpis are aligned  
with the company’s underlying objective of creating value by 
exploring and appraising oil and gas assets the precise metrics 
chosen and weighting ascribed to each may vary as detailed in 
the policy above in line with the company’s strategy 
with regard to longterm performance targets awards vest  
as a minimum subject to a relative tsr condition which measures  
our performance against a group of other oil and gas companies  
the committee believes this measure creates alignment between 
shareholders and executives and that executives are only rewarded 
for outperforming their peers
targets are set based on sliding scales that take account of internal 
planning and external market expectations for the company only 
modest rewards are available for delivering threshold performance 
levels with maximum rewards requiring substantial outperformance 
of our challenging plans approved at the start of each year
the targets for awards to be granted under the ltip are consistent 
with the policy set out above and are set out in the annual report 
on remuneration 
appropriately challenging performance targets would be set in 
relation to incentives each year as described above
75 annual report and accounts 2014
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report consideration of employment conditions elsewhere in the group
the company in line with current market practice does not actively 
consult with employees on executive remuneration the group has  
a diverse workforce operating in several different countries with 
various local pay practices which would make any costeffective 
consultation impractical however when setting the remuneration 
policy for executive directors the committee takes into account  
the pay and employment conditions for other employees within  
the group this process ensures that any increase to the basic pay  
of executive directors is not out of proportion with that proposed  
for other employees
differences in remuneration policy for executive directors 
compared to other employees
as noted above the committee is made aware of pay structures 
across the wider group when setting the remuneration policy for 
executive directors the committee considers the general basic salary 
increase for the broader group with specific reference to the location 
where an individual executive director is located when determining 
the annual salary review for the executive directors
overall the remuneration policy for the executive directors is more 
heavily weighted towards variable pay than for other employees  
this ensures that there is a clear link between the value created  
for shareholders and the remuneration received by the executive 
directors given it is the executive directors who are considered  
to have the greatest potential to influence group value creation
the level of variable pay varies within the group by level of employee 
and is informed by the specific responsibilities of each role and local 
market practice as appropriate
76 ophir energy plc
directors’ 
remuneration policy 
continued recruitment and promotion policy
for executive director recruitment andor promotion situations the committee will follow the guidelines outlined below
element policy element policy
base  
salary
base salary levels will be set in accordance with the 
company’s remuneration policy taking into account the 
experience and calibre of the individual eg typically around 
market rates prevalent in companies of comparable size and 
complexity or salary levels may be set below this level eg 
if the individual was a promotion to the board where it  
is appropriate to offer a below market rate of pay initially  
a series of increases to the desired salary positioning may  
be given over the next few years subject to individual 
performance and development in the role
benefits directors are entitled to health insurance life assurance 
medical evacuation insurance travel insurance holiday  
pay sick leave and other groupwide benefits offered  
by the company where necessary the committee  
may approve the payment of relocation expenses to 
facilitate recruitment
pension a defined contribution or cash supplement at the level 
provided to current executive directors as set in the 
policy table
annual  
bonus
the annual bonus would operate as outlined for current 
executive directors ie to a maximum of 150 of base 
salary albeit prorated for the period of employment  
during the financial year depending on the timing and 
responsibilities of the appointment it may be necessary  
to set different performance measures and targets initially 
any increases in ongoing annual bonus opportunity  
above the limit detailed in the policy table above would  
be contingent on the company receiving shareholder 
approval for an amendment to its approved policy at  
its next agm
longterm 
incentives
awards under the ltip will be granted in line with the  
policy outlined for the current executive directors in the 
table set out on page 73 an award may be made shortly 
after an appointment subject to the company not being in 
a prohibited period for an internal hire existing awards 
would continue over their original vesting period and remain 
subject to their terms as at the date of grant in addition  
if the grant of awards for that individual precedes his or  
her appointment as a board director for that financial year 
the committee’s policy would include flexibility to top up 
awards for that year in line with the policy detailed in the table 
above based on the executive’s new salary any increases  
in annual ltip awards above the ongoing normal 200 of 
salary limit and 300 of salary in exceptional circumstances 
would be contingent on the company receiving shareholder 
approval for an amendment to its approved policy at its next 
general meeting
buy out  
awards
in the case of an external hire if it is necessary to buyout 
incentive pay or benefit arrangements which would be 
forfeited on leaving the previous employer this would be 
provided for taking into account the form cash or shares 
and timing and expected value ie likelihood of meeting  
any existing performance criteria of the remuneration  
being forfeited
replacement share awards if used will be granted using  
the company’s ltip up to the exceptional limit of 300  
of salary replacement awards may also be granted outside 
of these schemes if necessary and as permitted under the 
listing rules
77 annual report and accounts 2014
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financial  
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supplementary 
information
remuneration 
report service agreements and loss of office payments
the executive directors have rolling term service agreements with  
the company the notice period for current executive directors is  
12 months if notice is given by either the executive or the company 
for new hires the company’s policy to set notice periods of up to 
12 months
the executive directors’ service agreements each include the ability 
for the company at its discretion to pay basic salary only in lieu of 
any unexpired period of notice
payments may be made as either a lump sum or in equal monthly 
instalments until the end of the notice period at the discretion of the 
remuneration committee in the case of the executive directors the 
executive will be required to seek alternative income during the period 
which monthly instalments are paid and notify the company after 
securing alternative income should alternative employment be 
found the instalment payments shall then be reduced by the amount 
of alternative income or cease if the alternative income exceeds the 
monthly instalment payment
the service agreements contain a provision enabling the relevant 
employer to put the executive director on garden leave for up to six 
months at any time after notice to terminate the service agreement 
has been given by the executive director or the relevant employer or 
the executive director has resigned without giving due notice and  
the relevant employer has not accepted the resignation during the 
garden leave period the executive will be entitled to receive salary 
and contractual benefits excluding bonuses at the end of the 
garden leave period the company may at its sole discretion pay the 
executive director basic salary alone in respect of the balance of  
any period of notice given by the company or executive director 
these payments will be reduced to the extent alternative income  
is received for new hires the same broad policy would apply
the service agreement of nick cooper only provides that if there is  
a change of control and within three months following the change of 
control the relevant employer or the executive director serve notice to 
terminate employment nick cooper’s employment will be terminated 
with immediate effect and the company shall pay 12 months’ salary 
nick cooper will not be entitled to any other payment or notice or 
payment in lieu of notice in addition to this payment
the inclusion of the change of control provisions in nick cooper and 
previously jonathan taylor’s service agreements is now considered  
a legacy issue by the committee with executives in post prior to the  
ipo having consistent provisions in this regard such provisions did not 
form part of dennis mcshane or lisa mitchell’s service agreements 
and do not form part of bill higgs’ service agreement following his 
appointment as an executive director and will not form part of any 
future service agreements for executive directors
a summary of the terms of the service agreements is set out below 
this disclosure has been updated from last year to reflect board 
changes during the period under review
name
continuous 
employment
service 
agreement 
date
notice by
company
notice by
executive
nicholas cooper 1 june  
2011
26 may  
2011
12 months 12 months
dennis mcshane 18 february
2013
18 february
2013
12 months 12 months
lisa mitchell 5 september
2011
26 april 
2013 
12 months 12 months
bill higgs 10 september
2014 
10 september
2014 
12 months 12 months
  lisa mitchell and dennis mcshane stood down as executive directors on 17 october 2014  
and 4 november 2014 respectively and left the company on 19 november 2014
   bill higgs was appointed as an executive director and chief operating officer on  
10 september 2014
copies of the service agreements for current executive directors 
together with the letters of appointment for the nonexecutive 
directors detailed above are available for inspection during normal 
business hours at the company’s registered office 
treatment of incentives
if an individual is i under notice at the bonus payment date or  
ii not in employment the default position is that no bonus will  
be payable however in certain good leaver circumstances death 
retirement illhealth injury or disability redundancy employment 
ceasing as a result of a sale of a group company or for any other 
reason at the committee’s discretion after taking into account the 
circumstances prevailing at the time a prorata bonus will become 
payable for the period of employment the committee acting fairly 
and reasonably may decide not to reduce the bonus prorata if in the 
circumstances it considers it appropriate to do so for example in the 
case of but not limited to death
78 ophir energy plc
directors’ 
remuneration policy 
continued the treatment for sharebased incentives previously granted to an 
executive director will be determined based on the relevant plan rules 
the default treatment will be for outstanding awards to lapse on 
cessation of employment
in relation to awards granted under the ltip  awards will lapse on  
the date of cessation of employment unless an executive leaves  
under certain ‘good leaver’ circumstances such as illhealth injury 
disability redundancy transfer or sale of the employing company  
or any other circumstances at the discretion of the committee 
reflecting the circumstances that prevail at the time if treated as a 
good leaver the default is for the award to vest at the normal vesting 
date however the committee may decide that awards will vest 
instead on the date of cessation in making a vesting determination 
the committee will assess the extent to which performance 
conditions have been achieved and the number of awards that  
would vest will be reduced prorata to reflect the proportion of  
the performance period actually served unless the committee 
determined otherwise if treated as a good leaver as a result of  
a death then the award will vest in full on the date of death
with regards to awards granted under the 2006 share option plan 
the plan under which dennis mcshane’s recruitment award was 
granted if the award holder is dismissed for cause or resigns in 
circumstances in which he could have been dismissed for cause had 
those circumstances been known at the time the award shall lapse 
for other leaver reasons other than death awards shall lapse on  
the date of cessation to the extent it has not otherwise become 
exercisable if awards are exercisable then they will remain exercisable 
until the tenth anniversary of the grant date upon death awards 
may be exercised to the extent they have vested within 12 months  
of the date of death with regards to the recruitment award granted 
to dennis mcshane detailed on page 73 this lapsed in full on his 
cessation of employment with the company on 19 november 2014
external appointments
with the prior permission of the board executive directors are 
permitted to accept external directorships and to retain any fees 
payable in respect of those roles
nonexecutive directors letters of appointment and fees 
each nonexecutive director has a letter of appointment from  
the company the letters of appointment do not specifically 
provide for terms of appointment termination notification periods  
or entitlement to payment on termination however there is an 
expectation that all independent nonexecutive directors will serve 
for an initial threeyear term the company may terminate the 
appointment under each letter of appointment if the nonexecutive 
director has committed a serious or repeated breach or nonobservance 
of their obligations to the company
consideration of shareholder views
the committee remains committed to shareholder dialogue and 
takes an active interest in voting outcomes the committee consults 
extensively with our major shareholders when setting the remuneration 
policy if there are any particular shareholders opposed to our policy 
members of the committee would endeavour to meet with them  
as appropriate to understand any issues they may have
79 annual report and accounts 2014
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report
financial  
statements
supplementary 
information
remuneration 
report unaudited information 
this part of the report has been prepared in accordance with the large 
and mediumsized companies and groups accounts and reports 
amendment regulations 2013 and the listing rules the annual 
statement and annual report on remuneration combined will be put  
to an advisory shareholder vote at the 201 5 agm the information  
on pages 83 to 91 inclusive has been audited
consideration of remuneration matters
membership and attendance
the members of the committee during the year ended 31 december 
2014 together with details of their individual attendance at committee 
meetings held during the year are set out below
committee members
meeting 
attendance
vivien gibney committee chairman 88
ronald blakely 88
alan booth 88
lyndon powell
 1
88
nicholas smith 88
john lander
 2
01
1  lyndon powell is not standing for annual reelection and will step down from the board at the 
conclusion of the 2015 agm 
2  john lander stepped down as a nonexecutive director and a member of the committee with 
effect on 28 february 2014
members of the committee are appointed by the board and all of  
its members are considered to be independent the chairman of the 
company nicholas smith who is a member of the committee was 
independent on appointment
the chief executive officer and advisors to the committee may also 
be invited to attend meetings as necessary during the year the chief 
executive officer the chief operating officer the company secretary 
director of human resources and representatives from new bridge 
street nbs part of aon plc and eversheds llp attended meetings 
and provided guidance and advice as necessary
executive directors and other attendees are not entitled to vote  
on any matter put before the committee and do not participate  
in any discussion relating to their own remuneration or remit
role and responsibilities of the committee
the role of the committee is to determine the remuneration policy  
of the company in order to facilitate the recruitment retention and 
motivation of the executive directors and key senior management 
the policy is reviewed at least annually in order to ensure that it  
is consistent with business strategy the committee also monitors  
the overall remuneration structure across the group to ensure  
that a balanced approach is adopted in relation to all employees  
the committee’s full terms of reference which are reviewed  
annually are available on the company’s website
advisor to the committee
nbs is appointed as independent consultants to the committee in 
relation to advice on remuneration and share incentives nbs provides 
services to the company on a ‘called on’ rather than retained basis 
nbs is a member of the remuneration consultants group and complies 
with its code of conduct details of the terms of engagement for nbs 
are available on request from the company secretary neither nbs 
nor any other aon plc company provide other services to the company 
the committee regularly reviews the external advisor relationship and 
is comfortable that nbs’ advice remains objective and independent 
for the year under review nbs’ total fees charged were £113971 as  
at 31 december 2014 excluding vat
other advice provided to the committee was received from eversheds 
llp who provided technical advice in relation to the operation of the 
company’s share plans and employment law advice in relation to 
directors’ service agreements
80 ophir energy plc
annual report on remuneration implementation of remuneration policy 
for 2015
base salaries
as disclosed in last year’s report the committee reviewed executive 
director remuneration during the final quarter of 2013 and found  
that the chief executive officer’s base salary was significantly below 
market levels accordingly following prior consultation at the time 
with the company’s major shareholders and leading shareholder 
advisory bodies it was decided to increase his base salary from 
£407 530 to £481950 with effect from 1 january 2014 and to 
£550000 with effect from 1 january 2015 subject to continued 
appropriate levels of performance the committee is satisfied that 
the chief executive’s performance during the year warrants the 
implementation of the second increase to £550000 and in arriving  
at its decision considered both his performance and the performance 
of the company during the year at a difficult time for ep companies 
the company is well placed to move forward and exploit the 
opportunities available 
as bill higgs appointment commenced on 10 september 2014  
the committee considered whether to award him the standard 2 
cost of living increase that had been given to employees in the group 
the committee agreed they were satisfied his performance to date 
merited such an increase 
role
salary as at
1 january
 2015
salary as at
1 january
 2014 or on
 appointment
 to the board increase
chief executive £550000 £481950 141
chief operating officer
 1
  £382500 £375000 20
1  the chief operating officer was appointed to the board as an executive director on 
10 september 2014 and his salary has been prorated from this date
 
pension and benefits
the executive directors receive company contributions towards 
personal pension plans or salary in lieu of pension at a rate of 11  
of base salary or on a prorated salary for those executives who were 
not in post for the full year
in addition to pension benefits the executive directors also receive 
health insurance life assurance holiday pay and sick leave cover
annual bonus
the annual bonus plan has been designed to provide reward for 
aboveaverage performance the performance targets for the bonus 
plan linked to agreed key performance indicators kpis are reviewed 
by the committee annually
for the year ending 31 december 2015 the maximum annual bonus 
opportunity for executive directors is 150 of basic salary no bonus 
is payable for belowtarget performance with bonuses earned on  
a sliding scale where appropriate based on the committee’s 
assessment of achievement against the targets set
for 201 5 the committee has set the following kpi targets for all executive 
directors these have been refreshed for 2015 visàvis the targets set in 
2014 to better reflect the revised business and strategy of an enlarged 
ophir following the successful acquisition of salamander energy plc
measure
percentage 
of total bonus
 opportunity
 1
exploration
metrics include the capture of high quality  
exploration acreage and drillable prospects 15
operations
metrics include exploration success protection  
of intellectual property and health and safety 13
financial strength  returns 
metrics include optimisation of ophir’s capital  
and commercial returns generated 15
business model
metrics include level of revenue generation  
and operating cash flow 11
stakeholder engagement
metrics include cr targets employee engagement 
retention and succession planning and diversity 13
leadership
metrics include delivery of agreed group strategy  
and high levels of governance across the group 33
1  figures have been rounded down to the nearest whole number the committee retains 
discretion to reduce the total bonus payment to executive directors in the event of a serious 
hse incident or series of incidents
the committee considers that the targets themselves are 
commercially sensitive and therefore plans to disclose them only on a 
retrospective basis details of the targets and actual out turn will be 
disclosed in next year’s annual report on remuneration save where 
they remain commercially sensitive
81 annual report and accounts 2014
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report
financial  
statements
supplementary 
information
remuneration 
report clawback provisions will enable the committee to correct the bonus  
in the event of a material misstatement of the company’s results so 
that it reflects the value that should have been paid had it not been 
for the misstatement clawback can be achieved through withholding 
of future incentive payments or through the recovery of the value 
overpaid on a net of tax basis from the individual
longterm incentive plan ltip
the maximum normal annual award limit under the ltip is 200  
of salary and it is intended that awards will be granted in 2015 at this 
level to nick cooper and bill higgs when granting awards under the 
ltip  the committee generally takes into consideration i the need  
to motivate and retain the executive directors and other participants 
and ii the number of shares comprising individual awards when  
they are expressed as a multiple of salary given the share price
in relation to the awards to be granted in 2015 a 200 of salary 
award was agreed at the time of recruitment with the chief operating 
officer with regards to both the chief operating officer and the  
chief executive officer given the importance of maximising the 
opportunities available to the enlarged group following the 
acquisition of salamander granting awards at our policy level is 
considered important to assist in their retention and motivation 
during the next critical three year period in the company’s 
development as per the remuneration policy to smooth fluctuations in 
the company’s share price the number of shares awarded will be 
based on 13975p being the three month average share price over  
the period from 14 november 2014 to 13 february 2015
the committee believes relative tsr performance against other oil 
and gas companies remains the most appropriate metric for use by 
the company in relation to ltip awards 
awards will vest on a straight line basis relative to the company’s  
tsr performance over a threeyear period compared to a comparator 
group set on grant no vesting occurs for belowmedian performance 
at median 25 of the award vests with full vesting at the upper 
quartile in addition the committee may reduce the number of 
shares in respect of which an award would otherwise vest based  
upon tsr performance if it considers that he tsr achieved over  
the threeyear period does not reflect the underlying financial 
performance of the company or that key operational metrics  
have not been met
the constituents of the comparator group were reviewed during the 
year and for the 2015 award the constituents of the ltip comparator 
group for 2015 award are
africa oil corp bowleven plc
cairn energy plc chariot oil  gas limited
circle oil plc cobalt international energy inc
dragon oil plc enquest plc
faroe petroleum plc genel energy plc
gulf keystone petroleum limited jkx oil  gas plc
kosmos energy ltd maurel  prom
noble energy inc petroceltic international plc
premier oil plc rockhopper exploration plc
soco international plc tullow oil plc
clawback provisions will apply that will enable the committee to  
claw back value overpaid in the event of a material misstatement  
of the company’s results within a twoyear period in relation to 
the award clawback can be achieved through withholding of future 
incentive payments or through the recovery of the value overpaid  
on a net of tax basis from the individual
nonexecutive directors’ remuneration
nonexecutive directors are not eligible to participate in short or 
longterm incentive plans or to receive any pension from the group 
the fees payable to the chairman and nonexecutive directors are 
as follows
2015 2014
chairman £140000 £140000
nonexecutive director basic fee £70000 £70000
committee chairmanship fee £5000 £5000
82 ophir energy plc
annual report on remuneration 
continued audited information
single total figure of remuneration
the detailed emoluments for the executive and nonexecutive directors for the year ended 31 december 2014 are detailed below
£000
base 
salaryfees benefits
 1
pension
 2
bonus
 3
longterm
 incentives 
4
payment 
for loss 
of office
total 
2014
executive directors
nick cooper 482 9 53 419 2007 – 2970
dennis mcshane
5
 344 9 38 279 – 316 986
lisa mitchell
 56
 353 8 35 247 125 286 1054
bill higgs 
7
 115 3 13 100 – – 231
chairman and nonexecutive directors
nicholas smith 140 – – – – – 140
ronald blakely 75 – – – – – 75
alan booth 75 – – – – – 75
vivien gibney 75 – – – – – 75
john lander
 8
 12 – – – – – 12
lyndon powell 75 – – – – – 75
bill schrader 70 – – – – – 70
1816 29 139 1045 2132 602 5763
1 benefits in kind include health insurance life assurance holiday pay and sick leave cover
2 pension comprises an 11 contribution to personal pension plans or cash provided in lieu of pension at a rate of 11
3 annual bonus to be paid in march 2015 further details set out below on pages 84 to 86
4   the value provided for nick cooper was based on the awards which were granted to him in 2011 and 2012 under the company’s ltip the total shareholder return measures attached to these awards  
was achieved resulting in full vesting for the 2011 awards and is expected to be 95 vesting for the 2012 award the value attributed to lisa mitchell is the anticipated value of the 2012 ltip award 
vesting at 95 further details of the vesting values are given on page 86 
5  dennis mcshane and lisa mitchell stood down as executive directors on 4 november 2014 and 17 october 2014 respectively and left the company on 19 november 2014 their above 
payments reflect
 i  salaries paid on a prorata basis from 1 january 2014 until the date of cessation of employment 19 november 2014 for lisa mitchell salary includes £35859 paid in lieu of holiday entitlement  
to which she was contractually entitled 
 ii a prorata bonus of 54 of the maximum bonus payable for dennis mcshane and 52 of the maximum bonus payable for lisa mitchell for the period from 1 january 2014 to 19 november 2014
 iii  dennis mcshane and lisa mitchell commenced their respective notice periods on 5 september 2014 and were paid salaries and benefits up to the 19 november 2014 departure date following their 
departures the company will be making monthly payments of salary for the balance of the 12 month notice periods up to 5 september 2015 which is subject to mitigation if alternative income is 
secured this figure has been included in the above table under payment for loss of office to provide more relevant and reliable information to our shareholders when reviewing and approving the 
directors’ remuneration for 2014 additional disclosure including the treatment of share awards held is provided in the payments for loss of office section on pages 88 and 89
6  before becoming an executive director lisa mitchell was granted nonperformance based options in 2012 under the 2006 share option plan this award vested on 19 june 2014 prior to cessation  
of employment for completeness there was no notional gain on vesting as the option exercise price £5504 per share was above the market price on the day of vesting £2367p
7  bill higgs joined the company and was appointed to the board on 10 september 2014 and his emoluments are for the period from this date to the year end he was appointed on an annual salary  
of £375000
8 john lander retired from the board on 28 february 2014
83 annual report and accounts 2014
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supplementary 
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remuneration 
report the detailed emoluments for the executive and nonexecutive directors for the year ended 31 december 2013 are detailed below
£000
base 
salaryfees benefits pension bonus
longterm
 incentives
payment 
for loss 
of office
total 
2013
executive directors
nick cooper 408 12 45 562 – – 1027
dennis mcshane
1
 389 6 36 456 – – 887
lisa mitchell
 2
 240 9 26 309 – – 584
jonathan taylor
3
256 3 18 190 – 190 657
chairman and nonexecutive directors
nicholas smith 140 – – – – – 140
ronald blakely 75 – – – – – 75
alan booth
4
50 – – – – – 50
vivien gibney
5
27 – – – – – 27
john lander 75 – – – – – 75
lyndon powell 75 – – – – – 75
bill schrader
6
61 – – – – – 61
1796 30 125 1517 – 190 3658
1   dennis mcshane was a nonexecutive director of the company from 1 january 2013 until 17 february 2013 and was appointed director of corporate strategy on 18 february 2013 his base salary  
on appointment as director of corporate strategy was £380363 pa full details of his fees for 2013 are contained on page 83 of the 2013 annual report  accounts 
2 lisa mitchell was promoted  to the board on 26 april 2013 her remuneration relates to the period of the year under review when she was an executive director
3  jonathan taylor retired as an executive director on 6 june 2013 full details of his remuneration for 2013 are contained on pages 88 and 89 of the 2013 annual report  accounts 
4  from 26 april 2013 date of appointed to the board
5  from 14 august 2013 date of appointed to the board
6  from 18 february 2013 date of appointment to the board
additional information in respect of the single figure table 
annual bonus plan outturn
for 2014 the committee set kpi targets for the executive directors in respect of hse performance reserves and resources finance portfolio 
managementnew business and personal objectives
84 ophir energy plc
annual report on remuneration 
continued whilst the precise targets are considered to remain price sensitive an overview of the extent of achievement for each executive director against 
their performance objectives is detailed below
metric
extent of achievement percentage of overall target met
targets applicable to all executive directors prorata for the relevant proportion of the financial year served
hse
no significant incidents reported fully achieved no significant incidents reported 20 out of a maximum 30 of salary
upgrading hse policy in line with ophir  
specific requirements
partially met with strong progress achieved against 
the relevant requirements
achieving total recordable injury rate of less  
than two 
not met rate recorded 41
initiatecomplete cr projects in key  
operational countries
fully achieved cr projects initiated in key 
operational countries with two project phases 
completed in separate counties
portfolio management
monetise agreed proportion of targeted assets partially achieved
1
20 out of a maximum 30 of salary
partner in line with 2014 planning partially achieved
1
rework existing exploration footprint and secure 
additional footprints in line with planning
majority achieved through the exit from ghana 
somaliland sadr agc and acquisition of basin 
footprints in myanmar indonesia and seychelles
finance
compliance within approved budgeted spend  
cash flow and working capital 
partially achieved 16 out of a maximum 30 of salary
three year average finding costs based on  
targets set at the start of 2014 financial year
150 25 125 50 115 100 
32 achieved 132
reserves and resources
net 2p reserves and 2c resources  
independent verified where practical
100mmboe addition 25
140mmboe addition 50
180mmboe addition 75
210mmboe addition 100 
threshold achieved 97mmboe being within  
5 tolerance of the target
2
7 out of a maximum 30 of salary
2
personal targets chief executive officer  
 chief operating officer
deliver on agreed group strategy
build an effective leadership team
continued development of external relationships  
and set appropriate leadership tone within the 
company ensure best practice execution in the 
company’s key business areas eg exploration  
capital raising and ma 
majority achieved
key outcomes considered by the committee included 
group footprint transformed with the acquisition of 
salamander completed a board restructuring 
including rebalancing of the skills required to lead the 
organisation through its next phase of development
24 out of a maximum of 30 of salary
1 the specific details of progress in the above areas remains commercially sensitive and the board will consider further disclosure in next year’s directors’ remuneration report 
2  estimation of reserves and resources by the committee has and will continue to be undertaken typically within a 5 tolerance of the reported result this is considered relevant by the committee 
to reinforce the company’s open and honest reporting culture and working effectively with independent verification experts in an area that relies on a combination of scientific and informed 
estimation in light of this discretion and the 97mmboe achieved the committee awarded 7 as opposed to 75 out of 30 performance
85 annual report and accounts 2014
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financial  
statements
supplementary 
information
remuneration 
report with regards to dennis mcshane and lisa mitchell they in part shared common objectives as detailed above eg delivering on group strategy 
but also were subject to role specific targets dennis mcshane’s targets included improving specific functions within the group eg corporate 
services and providing support and mentoring as appropriate the committee’s overall assessment of his performance was 18 out of 30 
lisa mitchell’s role specific targets included restructuring the group’s finance function managing in tandem with the chief executive relations 
with institutional investors and banks her targets were assessed to have been partially achieved at 15 out of 30
overall this resulted in bonuses becoming payable at 87 of basic salary in the case of the nick cooper and bill higgs being 58 of the 
maximum bonus payable time prorated from date of appointment in the case of the bill higgs and 81 of basic salary in the case of dennis 
mcshane being 54 of the maximum bonus payable and 78 of basic salary in the case of lisa mitchell being 52 of the maximum bonus 
payable figures prorated for the relevant part of the year employed 
longt erm incentive awards vesting
nick cooper was granted ltip awards in 2011 which were subject to a relative tsr performance condition based on a three year performance 
to 1 june 2014 the company was ranked in the upper quartile third out of the group of 18 and therefore this award vested in full the committee 
also considered the company’s safety record financial and operating performance over the performance period and approved the vesting result 
nick cooper and lisa mitchell were granted ltip awards in 2012 which were subject to a relative tsr performance condition based on a  
three year performance to 31 december 2014 the company was ranked approximately fifth out of the group of 17 the full peer group is as 
previously disclosed in the 2012 directors’ remuneration report based on tsr performance over the performance period this ranking placed 
the company marginally below the upper quartile of the comparator group and it is anticipated that 95 of the shares originally awarded to 
nick cooper and lisa mitchell will vest on 13 april 2015 being the third anniversary of the date of grant as the performance period finished  
in 2014 an estimated value for this vesting is included in nick cooper and lisa mitchell’s emoluments for 2014 on page 83 
date of grant vesting date lapse date
number of 
awards granted
number of 
awards vested
value of 
vested awards
nick cooper
ltip 01062011 01062014 31052015 173449 173449 £465364
1
ltip 01062011 01062014 31052015 247785 247785 £664807
1
ltip 22112011 01062014 31052015 99113 99113 £265920
1
ltip 13042012 13042015 12042016 373190 354530 £611321
2
lisa mitchell
ltip 13042012 13042015 12042016 87669 72256 £125591
2
1  the value of awards vested is based on a share price of £2683 at the date of vesting 1 june 2014 the awards vested at 100 following full satisfaction of the performance condition  
nick cooper exercised all the options resulting from this vesting on 27 june 2014 when the share price was £21619 resulting in an actual gain of £1124938 he retained 274804 shares post exercise
2  the value of awards vested is based on a share price of £17243 the average of the share price in the three months to 31 december 2014 as the share price at 13 april 2015 the expected  
day of vesting is not yet known and the awards vesting at 95 which is the extent to which it is expected the performance condition will have been met for lisa mitchell’s 2012 ltip award  
11610 shares lapsed on 19 november 2014 when she left the company as the committee applied a time prorating to the award for the proportion of the performance period she served as  
an employee of the company
 the number of awards in the above table was adjusted for the march 2013 rights issue as disclosed in last year’s remuneration report
before becoming an executive director lisa mitchell was granted nonperformance based options in 2012 under the 2006 share option plan 
these awards vested on 19 june 2014 prior to cessation of employment further details are provided in the payments for loss of office section
86 ophir energy plc
annual report on remuneration 
continued longt erm incentive awards granted in the year
as part of the terms of nick cooper’s exceptional ltip award granted on 19 june 2012 nick cooper did not receive an award under the ltip in 
2014 tranche 3 of the exceptional ltip has a threeyear performance period which commenced on 19 june 2014 bill higgs did not receive a 
ltip award during the year 
the ltip award levels granted to the other executive directors in the year under review calculated based on the threemonth average share 
price for the period from 15 november 2013 to 14 february 2014 were
• chief financial officer lisa mitchell 200 of salary and 
• director of corporate strategy dennis mcshane 200 of salary 
these awards were in line with the company’s policy as detailed in the policy report
the awards to the executive directors during the year were as follows
type of award basis of award granted
share price
at date
of grant
exercise
price
number
of shares
awarded
face value
of award
£’000
 of award
that vests at
the threshold
performance
 level
performance
is measured to
31 december
2016
lisa mitchell ltip – nominimal cost option 200 of salary £254 – 228526 718
1
25
dennis mcshane ltip – nominimal cost option 200 of salary £254 – 248351 778
1
25
1  in line with the company’s policy set out on page 73 the share price used to determine the number of awards was £313968 being the average share price during the period from 15 november 2013 
to 14 february 2014
the performance targets applying to the 2014 ltip awards are based on relative tsr against other oil and gas companies 
awards vest on a straight line basis relative to the company’s total shareholder return tsr performance over a threeyear period compared  
to a comparator group set on grant no vesting occurs for below median performance at median 25 of the award vests with full vesting at 
the upper quartile in addition the committee may reduce the number of shares in respect of which an award would otherwise vest based 
upon tsr performance if it considers that the tsr achieved over the threeyear period does not reflect the underlying financial performance  
of the company or that key operational metrics have not been met
the constituents of the 2014 ltip comparator group are as set out on page 82 save that for the 2014 award afren plc essar energy plc 
heritage oil plc and salamander energy plc were included in the 2014 ltip comparator group whilst africa oil corp circle oil plc dragon oil plc 
and noble energy inc were not then included
clawback provisions will apply in the event of a material misstatement of the company’s results within a twoyear period in relation to the award
87 annual report and accounts 2014
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remuneration 
report payments for loss of office
the group undertook a reorganisation of the business during the year under review that covered all levels of the company this exercise was 
designed to reduce costs and adjust to the future needs of the business part of this process included a restructuring and streamlining of the 
senior management team the restructuring resulted in a smaller board with the number of executive directors reducing from three to two  
and nonexecutive directors reducing from six to five as detailed in the corporate governance report the revisions to the executive board’s 
individual responsibilities resulted in the roles of chief financial officer and director of corporate strategy no longer being board positions and 
as a result these roles were made redundant the payments in connection with the subsequent cessation of employment of each individual 
which were in line with their contractual provisions and their treatment as ‘good leavers’ under the terms of the ltip  are detailed below 
lisa mitchell
payment in lieu of notice
lisa mitchell has a 12 month notice period and the company commenced her notice on 5 september 2014 lisa mitchell was paid her normal 
salary and benefits up to her departure date of 19 november 2014
the company is making monthly payments of salary for the balance of her unexpired notice period up to 5 september 2015 subject to 
mitigation if lisa mitchell secures alternative income in the period up to 5 september 2015 lisa mitchell’s annual salary is £358750 and 
therefore the maximum payment will be £284010
redundancy payment
as lisa mitchell’s role has been made redundant she received a statutory redundancy payment of £2088
2014 annual bonus payment
lisa mitchell received an annual bonus payment for 2014 as disclosed on pages 84 to 86 the payment was reduced on a time worked basis to 
reflect her departure date of 19 november 2014
longterm incentive awards
the outstanding ltip awards previously granted to lisa mitchell over an aggregate of 474121 shares detailed on page 90 were retained  
by her in accordance with the good leaver provisions under the rules of the ltip which include redundancy and shall vest on the normal 
vesting date for each of the respective awards the number of shares over which the awards shall be capable of exercise subject to 
performance conditions being met will be reduced on a time worked basis to reflect the period between the date of grant of the award and  
the 19 november 2014 as compared to the period from the date of grant of that award to the normal vesting date for each award made to  
lisa mitchell 
the 2012 2013 and 2014 ltip awards information will be further updated in the 2015 2016 and 2017 directors’ remuneration reports  
as appropriate
employee share options
lisa mitchell retained the options previously granted to her pursuant to the company’s 2006 share option plan over an aggregate of 173448 
shares in the company detailed on page 90 as they have vested in full and such options will remain exercisable until the 10th anniversary 
from the respective date of grant
pension – related benefits
lisa mitchell received a contribution to her pension medical cover and life insurance until 19 november 2014 at which point these 
benefits ceased
88 ophir energy plc
annual report on remuneration 
continued dennis mcshane
payment in lieu of notice
dennis mcshane has a 12 month notice period and the company commenced his notice on 5 september 2014 dennis mcshane was paid his  
normal salary and benefits up to his departure date of 19 november 2014
the company is making monthly payments of salary for the balance of his unexpired notice period up to 5 september 2015 subject to 
mitigation if dennis mcshane secures alternative income in the period up to 5 september 2015 dennis mcshane’s annual salary is £389872 
and therefore the maximum payment will be £316170
redundancy payment
while dennis mcshane’s role has been made redundant he does not qualify for statutory redundancy payment due to a lack of 
continuous employment
2014 annual bonus payment
dennis mcshane received an annual bonus payment for 2014 as disclosed on pages 84 to 86 the payment was reduced on a time worked 
basis to reflect his departure date of 19 november 2014
longterm incentive awards
the outstanding ltip awards previously granted to dennis mcshane over an aggregate of 419979 shares detailed on page 90 will be  
retained by him in accordance with the good leaver provisions under the rules of the ltip which include redundancy and shall vest on the 
normal vesting date for each of the respective awards the number of shares over which the awards shall be capable of exercise subject to 
performance conditions being met will be reduced on a time worked basis to reflect the period between the date of grant of the award and  
19 november 2014 as compared to the period from the date of grant of that award to the normal vesting date for each award made to  
dennis mcshane 
the 2013 and 2014 ltip awards information will be updated in the 2016 and 2017 directors’ remuneration reports as appropriate
employee share options
pursuant to the rules of the company’s 2006 share option plan the option which dennis mcshane holds under the plan over an aggregate  
of 360127 shares detailed on page 90 automatically lapsed on 19 november 2014 
pension – related benefits
dennis mcshane received contributions to his pension medical cover and life insurance until 19 november 2014 at which point these 
benefits ceased
89 annual report and accounts 2014
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report directors’ interests in shares
directors’ options and sharebased awards as at 31 december 2014 
director and scheme
date 
of grant
exercise
 price 
pence
market 
price at 
release
 pence
vesting
date
shares 
under 
award at 
1 january
 2014
shares
 awarded
shares 
vested in 
year
shares
exercised
shares
 lapsed
cancelled 
or 
forfeited
shares 
under
 award 
at 31
 december
 2014
lapse 
date
nick cooper
share option plan 2006 01062011
1
21620 – 01062013 578164 – – – – 578164
4
31052021
long t erm incentive plan 01062011
1
000 26830 01062014 173449 – 173449 173449 – – 3105201 5
long t erm incentive plan 01062011 000 26830 01062014 247785 – 247785 247785 – – 3105201 5
long t erm incentive plan 22112011 000 26830 01062014 99113 – 99113 99113 – – 3105201 5
long t erm incentive plan 13042012 000 – 13042015 373190 – – – – 373190 1 2042016
long t erm incentive plan 19062012 000 – 19062015 277518 – – – – 277518 18062016
long t erm incentive plan 19062012 000 – 19062016 370025 – – – – 370025 1806201 7
long t erm incentive plan 19062012 000 – 19062017 370025 – – – – 370025 18062018
dennis mcshane
2
share option plan 2006 26032013 47200 – 26032016 360127 – – – 360127 – 25032023
long t erm incentive plan 26032013 000 – 26032016 171628 – – – 77202 94426 2503201 7
long t erm incentive plan 24032014 000 – 24032017 – 248351 – – 193968 54383 23032018
lisa mitchell
3
share option plan 2006 15122011 21620 – 15122013 86724 – – – – 86724
4
141 22021
share option plan 2006 19062012 55040 23670 19062014 86724 – 86724 – – 86724
4
18062022
long t erm incentive plan 13042012 000 – 13042015 87669 – – – 11610 76059 1 2042016
long t erm incentive plan 26032013 000 – 26032016 77834 – – – 35012 42822 2503201 7
long t erm incentive plan 30082013 000 – 30082016 80092 – – – 47500 32592 2908201 7
long t erm incentive plan 24032014 000 – 24032017 – 228526 – – 178484 50042 23032018
save as noted below further details of the share awards can be found on page 73 of the directors’ remuneration policy pages 86 and 87 relating to longterm incentives awards vested and granted in 
the year and on pages 88 and 89 relating to payments for loss of office
1 nick cooper was granted market value options under the 2006 share option scheme and an award under the longterm incentive plan as part of the terms of his recruitment
2  dennis mcshane stepped down from the board on 4 november 2014 and left the company on 19 november 2014 
3 lisa mitchell stepped down from the board on 17 october 2014 and left the company on 19 november 2014
4 these options have vested and are currently exercisable 
90 ophir energy plc
annual report on remuneration 
continued share ownership
to align the interests of the executive directors with shareholders directors are required to build up significant shareholdings in the company
nick cooper has a guideline equivalent to 300 of salary to be achieved through retaining 100 of his vested or exercised awards net of 
taxes under the longterm incentive share plans until the guideline is met other executive directors are required to build up shareholdings of  
at least 100 of salary increased to 200 of salary for executive director appointments after 14 november 2014 and are required to retain 
50 of their vested or exercised awards net of taxes under share incentive schemes until the guideline is met
nick cooper has met his share ownership requirements as at 31 december 2014 bill higgs who only joined in september 2014 has yet to meet 
his requirement
lower shareholding requirements apply for other members of the management team the chairman and nonexecutive directors are 
encouraged to hold shares in the company but are not subject to a formal shareholding guideline details of the directors’ interests in shares 
are shown in the table below
target level
beneficially
 owned as at
 31 december
2014
beneficially
 owned as at
 31 december
2013
share
 ownership
 guideline
 met as at 
31 december
2014
outstanding
 longterm
 incentive
 awards
outstanding
options
 vested but
 unexercised
outstanding
options
 unvested
nicholas smith na 128000
1
128000 na na na na
nick cooper 300 770001
2
495197 100 1390758 578164 0
bill higgs 100 0 0
3
0 0 0 0
dennis mcshane 100 145600
4
145600 79
4
148809 0 0
lisa mitchell 100 0
5
0 0
5
201515 173448 0
ronald blakely na 47000
6
35000 na na na na
alan booth na 125000
7
125000 na na na na
vivien gibney na 10000
9
 10000 na na na na
john lander na 313544
8
313544 na na na na
l yndon powell na 33600
9
33600 na na na na
bill schrader na 10200
9
10200 na na na na
1 nicholas smith holds a beneficial interest in 128000 shares the legal interest is held by vestra nominees limited
2   nick cooper holds a beneficial interest in 669201 shares the legal interest is held by goldman sachs international the remaining beneficial interest in 800 shares is held by nick cooper’s spouse 
alison nightingale the legal interest of these shares are held in the name of james capel nominees limited
3  at 10 september 2014 date of appointment to the board
4 as at 4 november 2014 date of stepping down from the board the beneficial interest was in 145600 shares the legal interest was held by frank nominees limited
5 as at 17 october 2014 date of stepping down from the board 
6   ronald blakely and members of his family hold a beneficial interest in 47000 shares the legal interest is held by rbc dominion securities 
7   alan booth holds a beneficial interest in 125000 shares the legal interest is held by td direct investing nominees europe ltd
8   as at 28 february 2014 date of departure from the board john lander and his family held a beneficial interest in 313544 shares the legal interest was held by wb nominees limited
9 vivien gibney lyndon powell and bill schrader hold the legal and beneficial interest in the shares registered in their respective names
91 annual report and accounts 2014
strategic report
governance 
report
financial  
statements
supplementary 
information
remuneration 
report 0
50
100
150
200
250
value £
13 jul 11 13 dec 11 31 dec 12 31 dec 13 31 dec 14
ophir ftse 250 ftse all share oil and gas producers index
performance graph not subject to audit
the following graph shows the company’s tsr performance since 
trading of the company’s shares began on the london stock 
exchange on 13 july 2011 against the ftse all share oil and  
gas producers index
the graph also shows the company’s tsr performance since trading 
of the company’s shares began on the london stock exchange on  
13 july 2011 against the ftse 250 ophir is a constituent of the index 
and therefore the committee considers this equity index to be 
appropriate as a comparator
total shareholder returns tsr
chief executive officer’s remuneration table 
not subject to audit
the table below details the single total remuneration figure earned by 
the chief executive officer since the company moved to the official 
list total remuneration has been calculated to be consistent with the 
figures disclosed on pages 83 and 84 and the table also details the 
proportion of annual bonus and ltip awards payable andor vesting 
in the relevant year
year ending executive
total
 remuneration
£000
annual
 bonus
 of max
ltip
vesting 
 of max
31122014 nick cooper 2970 58 95  100
1
31122013 nick cooper 1027 92 na
2
31122012 nick cooper 970 89 na
31122011 nick cooper 910
3
83 na
1  in the year ending 31 december 2014 performance was established for the ltips awarded  
in 2011 which vested at 100 on 1 june 2014 and for the award made on 13 april 2012  
which is currently expected to vest at 95 on 13 april 2015 
2  the ltip award and 2006 share option plan awards that vested in 2013 related to 
compensation agreed on joining the company for awards forfeited at a previous employer 
neither award was subject to performance targets and as a result is not included in the  
single total remuneration figure
3 reflects the fact that nick cooper was appointed as chief executive officer on 1 june 2011
 
percentage change in the remuneration of the 
chief executive officer not subject to audit
the table below shows the percentage change in remuneration 
salary benefits and annual incentive from 2013 to 2014 for  
the chief executive officer compared with the average uk head 
office employee
chief executive officer average uk employee
1
salary 183 138
benefits 250 82
annual bonus 254 67
1  the comparator group chosen comprises 15 employees who are the company’s uk based 
employees excluding the executive directors who were employed continuously from 1 january 
2013 to 31 december 2014 the committee believes that this group is the most appropriate 
comparator group as these employees are based in the same geographical location as the 
chief executive officer and allows for a likeforlike comparison
source thomson reuters
92 ophir energy plc
annual report on remuneration 
continued relative importance of the spend on pay  
not subject to audit
2014 2013  change
staff costs £m 281 222 266
distributions to shareholders £m 277
1
0 na
1  via the share buyback programme
statement of shareholder voting  
not subject to audit
at last year’s agm the directors’ remuneration report received the 
following votes from shareholders
votes in favour votes against
remuneration policy 989 11
annual statement and  
annual report on remuneration 742 258
in relation to the votes cast against the annual statement and 
annual report on remuneration the committee understood the 
primary reasons to relate to legacy issues specifically the treatment 
of a founder’s share incentive awards on his cessation of employment 
with the company along with the recruitment terms of dennis 
mcshane and the salary increase awarded to the chief executive 
during the final year of his effective participation in an exceptional 
longterm incentive award introduced shortly after ophir’s move  
to the official list ‘tranche 3’ as detailed on page 73 as a result  
of a comprehensive shareholder consultation during late 2013  
these legacy issues were understood to be shareholder issues prior to 
the 2014 agm and addressed as appropriate in the drafting of the 
company’s future remuneration policy which was overwhelmingly 
supported by shareholders at our 2014 agm as detailed above
by order of the board
vivien gibney
chairman of the remuneration committee 
18 march 2015
93 annual report and accounts 2014
strategic report
governance 
report
financial  
statements
supplementary 
information
remuneration 
report i confirm on behalf of the board that to the best of their knowledge
•  the financial statements prepared in accordance with 
international financial reporting standards as adopted by  
the european union give a true and fair view of the assets 
liabilities financial position and profit and loss of the company 
and the undertakings included in the consolidation taken  
as a whole and
•  the strategic report and directors’ report include a fair review 
of the development and performance of the business and the 
position of the company and the undertakings included in the 
consolidation taken as a whole together with a description  
of the principal risks and uncertainties that they face
directors’ statement under the uk corporate governance code
the board considers that the annual report and accounts taken  
as a whole is fair balanced and understandable and that it  
provides the information necessary for shareholders to assess  
the company’s performance business model and strategy
approved by the board on 18 march 2015
nick cooper 
chief executive officer 
18 march 2015
the directors are responsible for preparing the annual report  
and the group financial statements in accordance with applicable 
united kingdom law and regulations company law requires the 
directors to prepare group financial statements for each financial 
year under that law the directors are required to prepare group 
financial statements under international financial reporting 
standards ifrss as adopted by the european union under 
company law the directors must not approve the group financial 
statements unless they are satisfied that they give a true and fair 
view of the state of affairs of the group and of the profit or loss  
of the group for that period in preparing the group financial 
statements the directors are required to
• present fairly the financial position financial performance  
and cash flows of the group
•  select suitable accounting policies in accordance with ias 8 
accounting policies changes in accounting estimates and  
errors and then apply them consistently
•  present information including accounting policies in a  
manner that provides relevant reliable comparable and 
understandable information
•  make judgements that are reasonable
•  provide additional disclosures when compliance with the  
specific requirements in ifrss as adopted by the european 
union is insufficient to enable users to understand the impact  
of particular transactions other events and conditions on the 
group’s financial position and financial performance and
•  state whether the group financial statements have been 
prepared in accordance with ifrss as adopted by the european 
union subject to any material departures disclosed and 
explained in the financial statements 
the directors are responsible for keeping adequate accounting 
records that are sufficient to show and explain the group’s transactions 
and disclose with reasonable accuracy at any time the financial position 
of the group and enable them to ensure that the group financial 
statements comply with the companies act 2006 and article 4  
of the ias regulation they are also responsible for safeguarding  
the assets of the group and hence for taking reasonable steps for  
the prevention and detection of fraud and other irregularities 
the directors are also responsible for preparing the strategic report 
directors’ report the directors’ remuneration report and the corporate 
governance statement in accordance with the companies act 2006 
and applicable regulations including the requirements of the listing 
rules and the disclosure and transparency rules
approved by the board on 18 march 2015
nick cooper 
chief executive officer 
18 march 2015
94 ophir energy plc
responsibility statement of  
the directors in respect of the  
annual report and accounts
statement of directors’ responsibilities 
in relation to the group financial 
statements and annual report we have audited the financial statements of ophir energy plc for the year ended 31 december 2014 which comprise the group income 
statement and statement of comprehensive income the group and parent company statements of financial position the group and 
parent company statements of changes in equity the group and parent company statements of cash flows and the related notes  
1 to 31 the financial reporting framework that has been applied in their preparation is applicable law and international financial reporting 
standards ifrss as adopted by the european union and as regards the parent company financial statements as applied in accordance 
with the provisions of the companies act 2006
this report is made solely to the company’s members as a body in accordance with chapter 3 of part 16 of the companies act 2006  
our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them  
in an auditor’s report and for no other purpose to the fullest extent permitted by law we do not accept or assume responsibility to anyone 
other than the company and the company’s members as a body for our audit work for this report or for the opinions we have formed
in our opinion
• the financial statements give a true and fair view of the state of the group’s and of the parent company’s affairs as at 31 december 2014 
and of its profit for the year then ended
• the group and parent company financial statements have been properly prepared in accordance with ifrss as adopted by the 
european union and for the parent company as applied in accordance with the provisions of the companies act 2006 and 
• the financial statements have been prepared in accordance with the requirements of the companies act 2006 and as regards  
the group financial statements article 4 of the ias regulation
our audit of the financial statements
an audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance 
that the financial statements are free from material misstatement whether caused by fraud or error this includes an assessment of 
whether the accounting policies are appropriate to the group’s and the parent company’s circumstances and have been consistently 
applied and adequately disclosed the reasonableness of significant accounting estimates made by the directors and the overall 
presentation of the financial statements in addition we read all the financial and nonfinancial information in the annual report and 
accounts to identify material inconsistencies with the audited financial statements and to identify any information that is apparently 
materially incorrect based on or materially inconsistent with the knowledge acquired by us in the course of performing the audit if we 
become aware of any apparent material misstatements or inconsistencies we consider the implications for our report
our application of materiality 
materiality overall group materiality of 34 million which represents 2 of total equity
we have used total equity of the group as the basis for our materiality calculation as we concluded that total equity is the most closely 
monitored financial measure for the stakeholders of ophir energy plc typically we would expect to focus on an income statement based 
measure such as profit before tax when calculating materiality however for an exploration company such as ophir energy plc where 
minimal or no revenues are generated we concluded that income statement based measures are less relevant where stakeholder value  
is primarily generated through discovering commercial hydrocarbons hence we have concluded that total equity provides the most 
appropriate financial measure that is responsive to the main value driver for the shareholders of ophir energy plc
having identified a relevant basis for materiality we calculated the planning materiality for the group to be 34 million 2013 35 million 
which is 2 2013 2 of total equity this provided a basis for determining the nature timing and extent of risk assessment procedures 
identifying and assessing the risk of material misstatement and determining the nature timing and extent of further audit procedures 
on the basis of our risk assessment together with our assessment of the group’s overall control environment our judgment was that overall 
performance materiality ie our tolerance for misstatement in an individual account or balance for the group should be 50 2013 50 
of materiality namely 17 million 2013 18 million our objective in adopting this approach was to ensure that total uncorrected and 
undetected audit differences in all accounts did not exceed our materiality level 
we agreed with the audit committee that we would report to the audit committee all audit differences in excess of 17 million 2013 18 million
we evaluate any uncorrected misstatements against both the quantitative measures of materiality discussed above and in the light of other 
relevant qualitative considerations
95 annual report and accounts 2014
strategic report
governance 
report
financial  
statements
supplementary 
information
consolidated 
financial statements
company financial 
statements
independent auditor’s report to the members  
of ophir energy plc the scope of our audit 
our audit is risk based and is designed to focus our efforts on the areas at greatest risk of material misstatement aspects subject to 
significant management judgement as well as greatest complexity risk and size in scoping the audit and with reference to the management 
and control structure employed by ophir energy plc we concluded that the there is one full scope audit component located in london  
which represents the entire group and has been audited from london 
our assessment of risks of material misstatement 
we consider that the following areas present the greatest risk of material misstatement in the financial statements and consequently have 
had the greatest impact on our audit strategy the allocation of resources and the efforts of the engagement team including the more 
senior members of the team 
principal risk area and rationale audit response
the carrying value of exploration and evaluation assets
the carrying value of exploration and evaluation assets can  
be subjective based on the group’s ability and intention  
to continue to explore the asset the carrying value may also  
be impacted by the results of exploration work indicating that  
the exploration and evaluation asset may not hold hydrocarbons  
that are commercially viable for extraction this creates a risk  
that the amount may be overstated in the financial statements
refer to note 10 – exploration and evaluation assets in the notes  
to the financial statements for the amounts held on the sheet by  
the group as at 31 december 2014
•  we have challenged management’s assessment of the carrying value  
of exploration and evaluation assets in particular we challenged  
ophir energy plc’s
•  right to explore in the relevant exploration licence which included obtaining  
and reviewing supporting documentation such as licence agreements and  
or correspondence with relevant government agencies
•  intention to carry out exploration and evaluation activity in the relevant 
exploration area which included the review of management’s cashflow  
forecast models discussions with senior management and directors as  
to the intentions and strategy of the group
•  carrying value of intangible assets where recent exploration activity in  
a given exploration licence provides negative indicators as to the recoverability  
of other intangible costs that remain capitalised 
•  commercial viability of results of exploration and evaluation activities carried  
out in the relevant licence area and
•  ability to finance any planned future exploration and evaluation activity  
this also links to the audit procedures performed related to going concern  
see below
•  we have also assessed the capabilities of management’s experts and or use  
of third party experts engaged for the purposes of assessing the potential 
resources associated with those exploration and evaluation assets
going concern
due to ophir being an exploration company and having no ongoing 
revenue stream it may not be able to continue as a going concern if  
it is unable to raise additional funds from other sources such as selling 
assets or raising funds from capital markets 
we have therefore considered that the conclusion on whether the  
group represents a going concern continues to be a significant risk  
of material misstatement
refer to note 2 in the notes to the financial statements for the basis  
of preparation and the directors’ report for their assessment of  
going concern
•  we have challenged management’s going concern model including the  
liquidity position at the year end and the projected cash flows we assessed  
and challenged the accuracy of exploration and evaluation expenditure 
commitments the anticipated uses of funding including any actual or planned 
reduction of debt with particular reference to the acquisition of salamander 
energy plc on 3 march 2015 and projected administration overhead costs 
disclosed in management’s model we have challenged the consistency of the 
assumptions included within the going concern model with the statements 
related to future plans and commitments contained within the annual report 
and accounts
management override of controls
due to the number of significant accounting estimates and judgements 
that are relevant to the financial statements with reference to the 
carrying value of the company’s exploration and evaluation assets  
we have concluded that there is a risk that management may 
manipulate accounting records 
we have therefore concluded that there is a risk that  
management may override controls that otherwise appear  
to be operating effectively
•  we assessed whether there was evidence of bias by the directors and senior 
management in the significant accounting estimates and judgements relevant 
to the financial statements 
•  we tested manual and automated journal entries and included a selection  
of journals with a focus on those journal entries that may impact the  
carrying value of the exploration and evaluation assets related to other 
significant risks identified as part of our audit engagement
•  in addition as part of our audit procedures to address this fraud risk we assessed 
the overall control environment including the arrangements for staff to ‘whistleblow’ 
and interviewed senior management and ophir’s internal audit function to 
understand whether there had been any reported actual or alleged instances  
of fraudulent activity during the year
96 ophir energy plc
independent auditor’s report to the members  
of ophir energy plc continued opinion on other matters prescribed by the companies act 2006
in our opinion the information given in the strategic report and the directors’ report for the financial year for which the group financial 
statements are prepared is consistent with the group financial statements 
respective responsibilities of directors and auditor
as explained more fully in the directors’ responsibilities statement set out on page 94 the directors are responsible for the preparation  
of the financial statements and for being satisfied that they give a true and fair view our responsibility is to audit and express an  
opinion on the group financial statements in accordance with applicable law and international standards on auditing uk and ireland  
those standards require us to comply with the auditing practices board’s ethical standards for auditors
opinion on other matter prescribed by the companies act 2006 is unmodified
in our opinion
• the part of the director’s remuneration report to be audited has been properly prepared in accordance with the companies act 2006 and
• the information given in the strategic report and the directors’ report for the financial year for which the financial statements are 
prepared is consistent with the financial statements 
matters on which we are required to report by exception
we have nothing to report in respect of the following 
under the isas uk and ireland we are required to report to you if in our opinion information in the annual report is 
• materially inconsistent with the information in the audited financial statements or 
• apparently materially incorrect based on or materially inconsistent with our knowledge of the group acquired in the course  
of performing our audit or 
• is otherwise misleading 
in particular we are required to consider whether we have identified any inconsistencies between our knowledge acquired during the audit 
and the directors’ statement that they consider the annual report is fair balanced and understandable and whether the annual report 
appropriately discloses those matters that we communicated to the audit committee which we consider should have been disclosed 
under the companies act 2006 we are required to report to you if in our opinion 
• adequate accounting records have not been kept by the parent company or
• the parent company financial statements and the part of the directors’ remuneration report to be audited are not in agreement with 
the accounting records or
• certain disclosures of directors’ remuneration specified by law are not made or 
• we have not received all the information and explanations we require for our audit 
under the listing rules we are required to review 
• the directors’ statement set out on page 68 in relation to going concern and 
• the part of the corporate governance statement relating to the company’s compliance with the nine provisions of the uk corporate 
governance code specified for our review
paul wallek  
senior statutory auditor
for and on behalf of ernst  young llp
statutory auditor
london
18 march 2015
notes
1  the maintenance and integrity of the ophir energy plc web site is the responsibility of the directors the work carried out by the auditors does not involve consideration of these matters and 
accordingly the auditors accept no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the web site
2 legislation in the united kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions 
97 annual report and accounts 2014
strategic report
governance 
report
financial  
statements
supplementary 
information
consolidated 
financial statements
company financial 
statements consolidated income statement notes
year ended
31 dec 2014
 ’000
year ended 
31 dec 2013
’000
continuing operations
gain on farmout 3 a 671677 –
other income 26 12
exploration expenses 3 b 333782 229103
general  administration expenses 3 c 20746 32098
other operating expenses 3 d 22821 46357
operating profitloss 3 294354 307546
net finance expenseincome 4 5861 27079
profitloss from continuing operations before taxation 288493 280467
taxation 8 233651 34660
profitloss from continuing operations for the year attributable to 54842 245807
equity holders of the company 54846 245777
noncontrolling interest 4 30
54842 245807
earnings per share pence
basic – profitloss for the period attributable to equity holders of the company 9 60 pence
1
290 pence
3
diluted – profitloss for the period attributable to equity holders of the company 9 60 pence
2
–
consolidated statement of comprehensive income
profitloss from continuing operations for the year 54842 245807
other comprehensive incomeloss
other comprehensive incomeloss to be classified to profit or loss in subsequent periods
exchange differences on retranslation of foreign operations net of tax 1784 1396
other comprehensive incomeloss for the year net of tax 1784 1396
total comprehensive incomeloss for the year net of tax attributable to
equity holders of the company 56630 247173
noncontrolling interest 4 30
56626 247203
1 94 cents per share
2 94 cents per share
3 450 cents per share
98 ophir energy plc
consolidated income statement and statement of comprehensive income 
for the year ended 31 december 2014 notes
as at
31 dec 2014 
 ’000
as at 
31 dec 2013
 ’000
noncurrent assets 
exploration and evaluation assets 10 764933 1124423
goodwill 11 – 20868
property plant and equipment 12 6307 3237
financial assets 13 17104 4773
788344 1153301
current assets
inventory 14 23902 25890
trade and other receivables 15 12839 8236
taxation receivable 13424 –
cash and cash equivalents 16 877872 506762
investments 17 294904 159921
1222941 700809
total assets 2011285 1854110
current liabilities
trade and other payables 18 242148 120787
provisions 19 26787 35371
268935 156158
noncurrent liabilities
deferred income tax 8 44048 20806
provisions 19 263 237
44311 21043
total liabilities 313246 177201
net assets 1698039 1676909
capital and reserves
called up share capital 21 2474 2466
reserves 23 1695845 1674719
equity attributable to equity shareholders of the company 1698319 1677185
noncontrolling interest 23 280 276
total equity 1698039 1676909
the financial statements of ophir energy plc registered number 05047425 on pages 98 – 131 were approved by the board of directors on 
18 march 2015 
on behalf of the board
nicholas smith     nick cooper
chairman      chief executive officer
99 annual report and accounts 2014
strategic report
governance 
report
financial  
statements
supplementary 
information
consolidated 
financial statements
company financial 
statements
consolidated statement of financial position
as at 31 december 2014 called up 
share capital 
’000
treasury 
shares
’000
 other
1
reserves
’000
non
controlling 
interest
’000
total equity
’000
as at 1 january 2013 1739 – 1102957 246 1104450
loss for the period net of tax – – 245777 30 245807
other comprehensive loss net of tax – – 1396 – 1396 
total comprehensive loss net of tax – – 247173 30 247203
new ordinary shares issued to third parties 711 – 802517 – 803228
exercise of options 16 – 7324 – 7340
sharebased payment – – 9094 – 9094
as at 31 december 2013 2466 – 1674719 276 1676909
profitloss for the period net of tax – – 54846 4 54842
other comprehensive income net of tax – – 1784 – 1784
total comprehensive income net of tax – – 56630 4 56626
purchase of own shares – 59 44168 – 44227
exercise of options 8 – 1847 – 1855
sharebased payment – – 6876 – 6876
as at 31 december 2014 2474 59 1695904 280 1698039
1  refer to note 24 
100 ophir energy plc
consolidated statement of changes in equity
for the year ended 31 december 2014 notes
year ended
31 dec 2014
 ’000
year ended 
31 dec 2013
’000
operating activities
profitloss before taxation 288493 280467
adjustments to reconcile profitloss before tax to net cash flows
gain on farmout 3 a 671677 –
interest income 4 7049 2410
foreign exchange lossesgains 4 12910 16977
depreciation of property plant and equipment 3 d 1955 1049
impairment of goodwill 3 d 20868 36297
profitloss on disposal of assets 3 d 2 11
provision for employee entitlements 207 203
allowance for provision 3 d – 9000
sharebased payment expense 3 c 6876 9094
exploration expenditure – pre licence costs 3 b 23947 2351
exploration expenditure – written off 3 b – 54006
exploration expenditure – provision for impairment 3 b 309835 172360
inventory write off – 386
working capital adjustments
decreaseincrease in trade and other payables 4409 393
decreaseincrease in trade and other receivables 2066 584
cash utilised in operations 16394 15694
income taxes paid 3226 –
interest income 8307 793
net cash flows used in operating activities 11313 14901
investing activities
proceeds from farmout 1329672 –
tax paid on gain on farmout 222411 –
purchases of property plant and equipment 12 4770 2016
exploration expenditure 521302 363207
proceeds on disposals of assets 2 3
disposalpurchase of inventory 1988 13625
cash placed on deposit 17 134983 159921
security depositsrefunds 13 12331 5820
net cash flows fromused in investing activities 435865 532946
financing activities
share issue costs – 34399
proceeds from issue of ordinary shares – 837627
proceeds from exercise of share options 1914 7340
purchase of own shares 44230 –
net cash flows used infrom financing activities 42316 810568
increase in cash and cash equivalents for the year 382236 262721
net effect of foreign exchange rates on cash and cash equivalents 11126 16298
cash and cash equivalents at the beginning of the year 506762 227743
cash and cash equivalents at the end of the year 16 877872 506762
101 annual report and accounts 2014
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governance 
report
financial  
statements
supplementary 
information
consolidated 
financial statements
company financial 
statements
consolidated statement of cash flows
for the year ended 31 december 2014 1 corporate information
ophir energy plc the ‘company’ and ultimate parent of the group is a public limited company incorporated domiciled and listed in england 
its registered offices are located at 123 victoria street london sw1e 6de 
ophir energy’s business is the development of offshore and deepwater oil and gas exploration assets the company has an extensive and 
diverse portfolio of exploration interests across africa and asia
the group’s financial statements for the year ended 31 december 2014 were authorised for issue by the board of directors on 18 march 2015 
and the statement of financial position was signed on the board’s behalf by nicholas smith and nick cooper
2 basis of preparation and significant accounting policies
21 basis of preparation
the consolidated financial statements of the group have been prepared in accordance with ifrs as issued by the international accounting 
standards board and adopted by the european union eu ifric interpretations and the companies act 2006 applicable to companies 
reporting under ifrs 
the consolidated financial statements are prepared on a going concern basis
the consolidated financial statements have been prepared on a historical cost basis except for revaluation of certain derivative instruments 
measured at fair value the consolidated financial statements are presented in us dollars rounded to the nearest thousand dollars ’000 
except as otherwise indicated
comparative figures for the period to 31 december 2013 are for the year ended on that date
new and amended accounting standards and interpretations
the group has adopted the following relevant new and amended ifrs and ifric interpretations as of 1 january 2014
• ias 27 separate financial statements 
• ias 28 investments in associates and joint ventures 
• ias 32 financial instruments presentation 
• ias 36 impairment of assets 
• ias 39 novation of derivatives and continuation of hedge accounting
• ifrs 10 consolidated financial statements 
• ifrs 11 joint arrangements
• ifrs 12 disclosure of interests in other entities 
• ifric 21 levies 
these new and amended standards and interpretations have not materially affected amounts reported or disclosed in the group’s financial 
statements for the year ended 31 december 2014
standards and interpretations issued but not yet effective 
the following interpretation to existing standards relevant to the group is not yet effective and had not been early adopted by the group 
the group expects to adopt this interpretation in accordance with the effective date
disclosure initiative amendments to ias 1 the narrowfocus amendments to ias 1 presentation of financial statements clarify rather 
than significantly change existing ias 1 requirements in most cases the proposed amendments respond to overly prescriptive 
interpretations of the wording in ias 1 
the following standards and interpretations relevant to the group have been issued by the iasb but have not yet been endorsed by the  
eu for their application to become mandatory
ifrs 9 ‘financial instruments’ effective for annual accounting periods beginning on or after 1 january 2015 ifrs 9 amends the 
classification and measurement of financial instruments and
ifrs 14 ‘regulatory deferral accounts’ effective for annual accounting periods beginning on or after 1 january 2016 ifrs 14 allows an 
entity whose activities are subject to rateregulation to continue applying most of its existing accounting policies for regulatory deferral 
account balances upon its firsttime adoption of ifrs 
ifrs 15 ‘revenue from contracts with customers’ effective for annual accounting periods beginning on or after 1 january 2017 ifrs 15 
replaces all existing revenue requirements ias 11 construction contracts ias 18 revenue ifric 13 customer loyalty programmes ifric 
15 agreements for the construction of real estate ifric 18 transfers of assets from customers and sic 31 revenue – barter transactions 
102 ophir energy plc
notes to the financial statements involving advertising services in ifrs and applies to all revenue arising from contracts with customers 
amendments to ias 19 and improvements to ifrss 2010–2012 and 2011–2013 cycles with an effective date for the annual accounting 
periods beginning on or after 1 july 2014
amendments to ifrs 10 and ias 28 sale or contribution of assets between an investor and its associate or joint venture amendments to 
ias 27 equity method in separate financial statements amendments to ias 16 and ias 41 bearer plants amendments to ias 16 and  
ias 38 clarification of acceptable methods of depreciation and amortisation amendments to ifrs 11 accounting for acquisitions of interests 
in joint operations and annual improvements to ifrss 2012–2014 cycle with effective date for annual accounting periods beginning on or 
after 1 january 2016 
the group has reviewed the impact to financial reporting for the changes arising from these standards and interpretations and they are not 
expected to materially affect amounts reported or disclosed in the group’s financial statements the impact of the adoption of other standards 
noted above has not been assessed by the group 
22  basis consolidation
the group financial statements incorporate the financial statements of the company subsidiaries controlled by the company and joint 
operations that are subject to joint control drawn up to 31 december each year
subsidiaries 
subsidiaries are consolidated from the date of their acquisition being the date on which the group obtains control and continue to be 
consolidated until the date that such control ceases control comprises the power to govern the financial and operating policies of the 
investee so as to obtain benefit from its activities and is achieved through direct or indirect ownership of voting rights currently exercisable 
or convertible potential voting rights or by way of contractual agreement the financial statements of subsidiaries are prepared for the 
same reporting year as the parent company using consistent accounting policies all intercompany balances and transactions including 
unrealised profits arising therefrom are eliminated
a change in the ownership interest of a subsidiary without loss of control is accounted for as an equity transaction if the group loses 
control over a subsidiary it i derecognises the assets including goodwill and liabilities of the subsidiary ii derecognises the carrying 
amount of any noncontrolling interest iii derecognises the cumulative translation differences recorded in equity iv recognises the fair 
value of the consideration received v recognises the fair value of any investment retained and vi recognises any surplus or deficit in  
profit and loss vii reclassifies the parent’s share of components previously recognised in other comprehensive income to profit and loss  
or retained earnings as appropriate
noncontrolling interests
noncontrolling interests represent the equity in a subsidiary not attributable directly and indirectly to the parent company and is 
presented separately within the consolidated statement of financial position separately from equity attributable to owners of the  
parent losses within a subsidiary are attributed to the noncontrolling interest even if that results in a deficit balance 
23 summary of significant accounting policies
a exploration and evaluation expenditure
exploration and evaluation ‘ee’ expenditure relates to costs incurred on the exploration for and evaluation of potential mineral reserves 
and resources the group applies the successful efforts method of accounting for ee costs as permitted by ifrs 6 ‘exploration for and 
evaluation of mineral resources’
under the successful efforts method of accounting all licence acquisition exploration and appraisal costs such as geological geochemical 
and geophysical costs exploratory drilling and other direct costs associated with finding mineral resources are initially capitalised in well 
field or specific exploration cost centres as appropriate pending determination 
costs other than payments for the acquisition of rights to explore incurred prior to acquiring legal rights to explore an area and general 
exploration costs not specific to any particular licence or prospect are charged directly to the income statement
ee assets are not amortised prior to the determination of the results of exploration activity at completion of evaluation activities  
if technical and commercial feasibility is demonstrated then following recognition of commercial reserves the carrying value of the 
relevant ee asset will be reclassified as a development and production asset subject to an impairment assessment before reclassification
if on completion of evaluation activities it is not possible to determine technical feasibility and commercial viability or if the legal right to 
explore expires or if the group decides not to continue ee activity then the costs of such unsuccessful ee are written off to the income 
statement in the period of that determination
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impairment
ee assets are assessed for impairment when facts and circumstances suggest that the carrying amount of an ee asset may exceed its 
recoverable amount the cash generating unit ‘cgu’ applied for impairment test purposes is generally the block except that a number  
of block interests may be grouped as a single cash generating unit where the cash flows of each block are interdependent
where an indicator of impairment exists management will assess the recoverability of the carrying value of the asset or cgu this review 
includes a status report confirming that ee drilling is still under way or firmly planned or that it has been determined or work is under way 
to determine that the discovery is economically viable this assessment is based on a range of technical and commercial considerations and 
confirming that sufficient progress is being made to establish development plans and timing if no future activity is planned or the value of 
the asset cannot be recovered via successful development or sale the balance of the ee costs are written off in the income statement and 
statement of comprehensive income
farminfarmout arrangements
the group may enter into farmin or farmout arrangements where it may introduce partners to share in the development of an asset  
for transactions involving assets at the exploration and evaluation phase the group adopts an accounting policy as permitted by ifrs 6  
such that the group does not record any expenditure made on its behalf under a ‘carried interest’ by a farmin partner the ‘farmee’  
where applicable past costs are reimbursed any cash consideration received directly from the farmee is credited against costs previously 
capitalised in relation to the whole interest with any excess accounted for by the farmor as a gain on disposal farmedout oil and gas 
properties are accounted for in accordance with ias 16 ‘property plant and equipment’
b intangibles
intangible assets are initially measured at cost following initial recognition intangible assets are carried at cost less any accumulated 
amortisation and any accumulated impairment losses
intangible assets with finite lives are amortised over the useful life and tested for impairment whenever there is an indication that the 
intangible asset may be impaired
where this is indicated management will assess the recoverability of the carrying value of the asset the review is based upon a status 
report detailing the group’s intention for development of the asset where it cannot be recovered via successful development or sale  
all costs are written off
when an oil or gas field has been approved for development the accumulated exploration and appraisal costs are transferred to oil and 
gas properties
c business combinations 
business combinations are accounted for using the acquisition method the cost of an acquisition is measured as the aggregate of the 
consideration transferred measured at acquisition date fair value and the amount of any noncontrolling interest ‘nci’ in the acquiree  
for each business combination the acquirer elects to measure the components of nci that are present ownership interests that entitle  
their holders to a proportionate share of the entity’s net assets in the event of liquidation either at fair value or at the proportionate share  
of the acquiree’s identifiable net assets acquisitionrelated costs incurred are expensed and included in general  administrative expenses 
when the group acquires a business it assesses the assets and liabilities assumed for appropriate classification and designation in accordance 
with the contractual terms economic circumstances and pertinent conditions as at the acquisition date this includes the separation of 
embedded derivatives in host contracts by the acquiree those oil and gas reserves that are able to be reliably measured are recognised  
in the assessment of fair values on acquisition other potential reserves resources and rights for which fair values cannot be reliably 
measured are not recognised 
if the business combination is achieved in stages the acquisition date fair value of the acquirer’s previously held equity interest in the 
acquiree is remeasured to fair value as at the acquisition date being the date the acquirer gains control in profit or loss
any contingent consideration to be transferred by the acquirer will be recognised at fair value at the acquisition date subsequent changes 
to the fair value of the contingent consideration which is deemed to be an asset or liability will be recognised in accordance with ias 39 
either in profit or loss or as change to other comprehensive income if the contingent consideration is not within the scope of ias39  
it is measured in accordance with the appropriate ifrs if the contingent consideration is classified as equity it is not remeasured and 
subsequent settlement is accounted for within equity
104 ophir energy plc
notes to the financial statements continued d goodwill
goodwill is initially measured at cost being the excess of the aggregate of the consideration transferred and the amount recognised for 
noncontrolling interest ‘nci’ over the fair value of the identifiable net assets acquired and liabilities assumed if this consideration is lower 
than the fair value of the identifiable net assets of the subsidiary acquired the gain is recognised in profit or loss
after initial recognition goodwill is measured at cost less any accumulated impairment losses for the purpose of impairment testing 
goodwill acquired in a business combination is from the acquisition date allocated to each of the group’s cash generating units ‘cgus’ 
that are expected to benefit from the synergies of the combination irrespective of whether other assets or liabilities of the acquiree are 
assigned to those units
where goodwill forms part of a cgu and part of the operation within that unit is disposed of the goodwill associated with the operation 
disposed of is included in the carrying amount of the operation when determining the gain or loss on disposal of the operation goodwill 
disposed of in this circumstance is measured based on the relative values of the operation disposed of and the portion of the cashgenerating 
unit retained
goodwill is tested for impairment annually as at 31 december and when circumstances indicate that the carrying value may be impaired
in assessing whether goodwill has been impaired the carrying amount of the cgu or reportable segment is compared with its recoverable 
amount in determining whether goodwill is impaired the group reviews the status of projects including recent farmout transactions and 
whether the group’s intention is to further develop the groups various assets
e property plant and equipment
property plant and equipment which comprises furniture and fittings and computer equipment is stated at cost less accumulated 
depreciation and accumulated impairment losses such cost includes costs directly attributable to making the asset capable of operating 
as intended
depreciation is provided on property plant and equipment calculated using the straight line method at rates to write off the cost  
less estimated residual value based on prices prevailing at the statement of financial position date of each asset over expected useful  
lives ranging from three to 10 years
f investments in subsidiaries
the company holds monetary balances with its subsidiaries of which settlement is neither planned nor likely to occur in the foreseeable 
future such balances are considered to be part of the company’s net investment in its subsidiaries 
the carrying values of investments in subsidiaries are reviewed for impairment when events or changes in circumstances indicate the 
carrying value may not be recoverable
g financial instruments
i cash and shortterm deposits
cash and cash equivalents in the statement of financial position comprise cash at banks and in hand and shortterm deposits with a 
maturity of three months or less but excludes any restricted cash restricted cash is not available for use by the group and therefore  
is not considered highly liquid – for example cash set aside to cover rehabilitation obligations 
for the purpose of the consolidated statement of cash flows cash and cash equivalents consist of cash and cash equivalents as defined 
above net of outstanding bank overdrafts
ii shortterm investments
shortterm investments in the statement of financial position comprise cash deposits that are made for varying periods of between three 
months and twelve months depending on the immediate cash requirements of the group and earn interest at the respective shortterm 
investment rate
iii trade and other receivables 
trade receivables which generally have 30 to 90 day terms are recognised and carried at the lower of their original invoiced value and 
recoverable amount where the time value of money is material receivables are carried at amortised cost allowance is made when there  
is objective evidence that the group will not be able to recover balances in full evidence on nonrecoverability may include indications that 
the debtor or group of debtors is experiencing significant financial difficulty the probability that they will enter bankruptcy or default or 
delinquency in repayments balances are written off when the probability of recovery is assessed as being remote the amount of the 
impairment loss is the receivable carrying amount compared to the present value of estimated future cash flows discounted at the  
original effective interest rate
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iv trade and other payables
trade and other payables are carried at amortised cost they represent liabilities for goods and services provided to the group prior  
to the end of the financial year that are unpaid and arise when the group becomes obligated to make future payments in respect  
of the purchase of those goods and services the amounts are unsecured and are usually paid within 30 days of recognition
v interest bearing loans and borrowings
all loans and borrowings are initially recognised at fair value less directly attributable transaction costs after initial recognition  
interestbearing loans and borrowings are subsequently measured at amortised cost using the effective interest rate method
gains and losses are recognised in the income statement when liabilities are derecognised as well as through the amortisation process  
a financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires
when an existing financial liability is replaced by another from the same lender on substantially different terms or the terms of an existing 
liability are substantially modified such an exchange or modification is treated as the derecognition of the original liability and the recognition 
of a new liability the difference in the respective carrying amounts is recognised in the income statement
h inventories
inventories which comprise drilling consumables are stated at the lower of cost and net realisable value cost is determined by using 
weighted average cost method and comprises direct purchase costs cost of transportation and other related expenses
i provisions
a provision is recognised when the group has a legal or constructive obligation as a result of a past event and it is probable that an outflow 
of economic benefits will be required to settle the obligation and a reliable estimate can be made of the obligation if the effect of the time 
value of money is material expected future cash flows are discounted using a current pretax rate that reflects where appropriate the risks 
specific to the liability where discounting is used the increase in the provision due to unwinding the discount is recognised as a finance cost
j pensions and other postretirement benefits
the group does not operate its own pension plan but makes pension or superannuation contributions to private funds of its employees 
which are defined contribution plans the cost of providing such benefits are expensed in the income statement as incurred
k employee benefits 
salaries wages annual leave and sick leave
liabilities for salaries and wages including nonmonetary benefits annual leave and accumulating sick leave expected to be settled within 
12 months of the reporting date are recognised in respect of employees’ services up to the reporting date they are measured at the amounts 
expected to be paid when the liabilities are settled liabilities for nonaccumulating sick leave are recognised when the leave is taken and 
are measured at the rates paid or payable
long service leave
the liability for long service leave is recognised and measured at the present value of expected future payments to be made in respect of 
services provided by employees up to the reporting date using the projected unit credit method
consideration is given to expected future wage and salary levels experience of employee departures and periods of service expected future 
payments are discounted using market yields at the reporting date on national government bonds with terms to maturity and currencies 
that match as closely as possible the estimated future cash outflows
l equity instruments
equity instruments issued by the group are recorded at the proceeds received net of direct issue costs
m leases
the determination of whether an arrangement is or contains a lease is based on the substance of the arrangement and requires an 
assessment of whether the fulfilment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys  
a right to use the asset
the group has leases where the lessor retains substantially all the risks and benefits of ownership of the asset such leases are classified  
as operating leases and rentals payable are charged to the income statement on a straight line basis over the lease term
106 ophir energy plc
notes to the financial statements continued n interests in joint arrangements
a joint arrangement is an arrangement over which two or more parties have joint control joint control is the contractually agreed sharing  
of control of an arrangement which exists only when decisions about the relevant activities being those that significantly affect the returns 
of the arrangement require unanimous consent of the parties sharing control
i  joint operations
a joint operation is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets  
and obligations for the liabilities relating to the arrangement in relation to its interests in joint operations the group recognises its
• assets including its share of any assets held jointly 
• liabilities including its share of any liabilities incurred jointly 
• revenue from the sale of its share of the output arising from the joint operation 
• share of the revenue from the sale of the output by the joint operation 
• expenses including its share of any expenses incurred jointly
ii  joint ventures 
a joint venture is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets  
of the joint arrangement the group’s investment in its joint venture is accounted for using the equity method
under the equity method the investment in the joint venture is initially recognised at cost the carrying amount of the investment is 
adjusted to recognise changes in the group’s share of net assets of the joint venture since the acquisition date goodwill relating to the  
joint venture is included in the carrying amount of the investment and is not individually tested for impairment
the statement of profit or loss reflects the group’s share of the results of operations of the joint venture unrealised gains and losses 
resulting from transactions between the group and the joint venture are eliminated to the extent of the interest in the joint venture
the aggregate of the group’s share of profit or loss of the joint venture is shown on the face of the statement of profit or loss and other 
comprehensive income as part of operating profit and represents profit or loss after tax and nci in the subsidiaries of joint venture  
the financial statements of the joint venture are prepared for the same reporting period as the group when necessary adjustments  
are made to bring the accounting policies in line with those of the group
at each reporting date the group determines whether there is objective evidence that the investment in the joint venture is impaired  
if there is such evidence the group calculates the amount of impairment as the difference between the recoverable amount of the joint 
venture and its carrying value and then recognises the loss as ‘share of profit of a joint venture’ in the statement of profit or loss and other 
comprehensive income
on loss of joint control over the joint venture the group measures and recognises any retained investment at its fair value any difference 
between the carrying amount of the joint venture upon loss of joint control and the fair value of the retained investment and proceeds  
from disposal is recognised in the statement of profit or loss and other comprehensive income
o revenue recognition
revenue is recognised to the extent that it is probable that the economic benefits will flow to the group and the revenue can be reliably 
measured revenue is measured at the fair value of the consideration received and receivable excluding discounts rebates vat and other 
sales taxes or duty
p interest income
interest income is recognised as it accrues using the effective interest rate method that is the rate that exactly discounts estimated future 
cash receipts through the expected life of the financial instrument to the net carrying amount of the financial asset interest income is 
included in finance income in the consolidated income statement and statement of comprehensive income
q borrowing costs
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 be prepared for their intended use are added to the cost of those assets until such time as the assets  
are substantially ready for their intended use
all other borrowing costs are expensed in the income statement in the period in which they are incurred
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r sharebased payments
the cost of equitysettled transactions with employees is measured by reference to the fair value at the date at which they are granted 
 and is recognised as an expense over the vesting period which ends on the date on which the relevant employees become fully entitled  
to the award fair value is determined with reference to the market value of the underlying shares using a pricing model appropriate to the 
circumstances which requires judgements as to the selection of both the valuation model and inputs in valuing equitysettled transactions 
no account is taken of any vesting conditions other than conditions linked to the price of the shares of the company market conditions
no expense is recognised for awards that do not ultimately vest except for awards where vesting is conditional upon a market condition or  
a nonvesting condition which are treated as vesting irrespective of whether or not the market condition or nonvesting condition is satisfied 
provided that all other vesting conditions are satisfied
at each statement of financial position date before vesting the cumulative expense is calculated on the basis of the extent to which the 
vesting period has expired and management’s best estimate of the number of equity instruments that will ultimately vest the movement 
in cumulative expense since the previous statement of financial position date is recognised in the income statement with a corresponding 
entry in equity
where the terms of an equitysettled award are modified or a new award is designated as replacing a cancelled or settled award the cost 
based on the original award terms continues to be recognised over the original vesting period in addition an expense is recognised over  
the remainder of the new vesting period for the incremental fair value of any modification based on the difference between the fair value 
of the original award and the fair value of the modified award both as measured on the date of the modification no reduction is recognised 
if this difference is negative
where an equitysettled award is cancelled it is treated as if it had vested on the date of cancellation and any cost not yet recognised in  
the income statement for the award is expensed immediately any compensation paid up to the fair value of the award at the cancellation 
or settlement date is deducted from equity with any excess over fair value being treated as an expense in the income statement
for equitysettled sharebased payment transactions with third parties the goods or services received are measured at the date of receipt 
by reference to their fair value with a corresponding entry in equity if the group cannot reliably estimate the fair value of the goods or 
services received their value is measured by reference to the fair value of the equity instruments granted
s foreign currency translation
the group’s consolidated financial statements are presented in us dollars which is also the parent company’s functional currency  
the functional currency for each entity in the group is determined on an individual basis according to the primary economic environment  
in which it operates 
transactions in foreign currencies are initially recorded in the functional currency by applying the spot exchange rate ruling at the date  
of the transaction monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at  
the statement of financial position date all exchange differences are taken to the income statement nonmonetary items that are 
measured at historical cost in a foreign currency are translated using the spot exchange rate ruling as at the date of the initial transaction 
nonmonetary items measured at a revalued amount in a foreign currency are translated using the spot exchange rate ruling at the date 
when the fair value was determined
the assets and liabilities of foreign operations whose functional currency is other than that of the presentation currency of the group are 
translated into the presentation currency at the rate of exchange ruling at the statement of financial position date income and expenses 
are translated at the weighted average exchange rates for the period the resulting exchange differences are taken directly to a separate 
component of equity on disposal of a foreign entity the deferred cumulative amount recognised in equity relating to that particular foreign 
operation is recognised in the income statement
t income taxes
current tax
current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities based on 
tax rates and laws that are enacted or substantively enacted by the statement of financial position date
current income tax is charged or credited directly to equity if it relates to items that are credited or charged to equity otherwise income tax 
is recognised in the income statement
108 ophir energy plc
notes to the financial statements continued deferred tax
deferred income tax is recognised on all temporary differences arising between the tax bases of assets and liabilities and their carrying 
amounts in the financial statements with the following exceptions
• where the temporary difference arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not  
a business combination and at the time of the transaction affects neither accounting nor taxable profit or loss
• in respect of taxable temporary differences associated with investments in subsidiaries associates and joint ventures where the timing 
of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the 
foreseeable future and
• deferred income tax assets are recognised only to the extent that it is probable that taxable profit will be available against which the 
deductible temporary differences carried forward tax credits or tax losses can be utilised
the carrying amount of deferred income tax assets is reviewed at the end of each reporting period and reduced to the extent that  
it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised 
unrecognised deferred tax assets are reassessed at the end of each reporting period and are recognised to the extent that it has become 
probable that future taxable profit will be available to allow the deferred tax asset to be recovered
deferred income tax assets and liabilities are measured on an undiscounted basis at the tax rates that are expected to apply when the 
related asset is realised or liability is settled based on tax rates and laws enacted or substantively enacted at the statement of financial 
position date
deferred income tax is charged or credited directly to equity if it relates to items that are credited or charged to equity otherwise deferred 
income tax is recognised in the income statement
u impairment 
the accounting policy for the impairment of exploration and evaluation assets is described in more detail in 23a and 24 
the group assesses at each reporting date whether there is an indication that an intangible asset or item of property plant  equipment 
may be impaired if any indication exists the group estimates the asset’s recoverable amount the recoverable amount is the higher of  
an asset or cashgenerating unit’s ‘cgu’ fair value less costs of disposal and its value in use the recoverable amount is determined for an 
individual asset unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets 
when the carrying amount of an asset or cgu exceeds its recoverable amount the asset is considered impaired and is written down to its 
recoverable amount in assessing value in use the estimated future cash flows are discounted to their present value using a pretax discount 
rate that reflects current market assessments of the time value of money and the risks specific to the asset in determining fair value less 
costs of disposal recent market transactions are taken into account if available if no such transactions can be identified an appropriate 
valuation model is used 
these calculations are corroborated by valuation multiples quoted share prices for publicly traded subsidiaries or other available fair 
value indicators
the group bases its impairment calculation on detailed budgets and forecast calculations which are prepared separately for each of the 
group’s cgu’s to which the individual assets are allocated these budgets and forecast calculations generally cover a period of five years 
for longer periods a longterm growth rate is calculated and applied to project future cash flows after the fifth year
impairment losses of continuing operations including impairment on inventories are recognised in the income statement in expense 
categories consistent with the function of the impaired asset except for a property previously revalued where the revaluation was taken  
to other comprehensive income in this case the impairment is also recognised in other comprehensive income up to the amount of any 
previous revaluation where conditions giving rise to the impairment subsequently reverse the effect of the impairment charge is also 
reversed net of any depreciation that would have been charged since the impairment
24 significant accounting judgements estimates and assumptions
the preparation of the group’s consolidated financial statements requires management to make judgements estimates and assumptions 
that affect the reported amounts of revenues expenses assets and liabilities and the accompanying disclosures and the disclosure of 
contingent liabilities at the date of the consolidated financial statements estimates and assumptions are continuously evaluated and are 
based on management’s experience and other factors including expectations of future events that are believed to be reasonable under  
the circumstances uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the 
carrying amount of assets or liabilities affected in future periods
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the group has identified the following areas where significant judgements estimates and assumptions are required further information  
on each of these areas and how they impact the various accounting policies are described below and also in the relevant notes to the 
financial statements
exploration and evaluation assets 23a
the application of the group’s accounting policy for exploration and evaluation expenditure requires judgement to determine whether 
future economic benefits are likely from either future exploration development or asset sale or whether activities have not reached a stage 
which permits a reasonable assessment of the existence of reserves 
management is also required to assess impairment in respect of exploration and evaluation assets the exploration and evaluation assets 
note discloses the carrying value of such assets the triggering events for impairment are defined in ifrs 6 in making the assessment 
management is required to make judgements on the status of each project and assumptions about future events and circumstances  
in particular whether an economically viable extraction operation can be established any such estimates and assumptions may change  
as new information becomes available 
where an indicator of impairment exists a formal estimate of the recoverable amount is made the assessments require the use of 
estimates and assumptions such as longterm oil prices discount rates operating costs future capital requirements decommissioning costs 
exploration potential and reserves these estimates and assumptions are subject to risk and uncertainty therefore there is a possibility 
that changes in circumstances will impact these projections which may impact the recoverable amount of assets andor cgus
sharebased payments 23r
management is required to make assumptions and use their judgement when determining the inputs used to value sharebased payment 
arrangements made during the year details of the inputs adopted when valuing sharebased payment arrangements can be found in the 
sharebased compensation note management bases these assumptions on observable market data such as the group’s share price history 
and risk free interest rates offered on government bonds
recovery of deferred tax assets 23t
judgement is required to determine whether deferred tax assets are recognised in the statement of financial position deferred tax assets 
including those arising from unutilised tax losses require management to assess the likelihood that the group will generate sufficient 
taxable profits in future periods in order to utilise recognised deferred tax assets assumptions about the generation of future taxable  
profits depend on management’s estimates of future cash flows these estimates are based on forecast cash flows from operations and 
judgement about the application of existing tax laws in each jurisdiction to the extent that future cash flows and taxable income differ 
significantly from estimates the ability of the group to realise deferred tax assets could be impacted
the group establishes tax provisions based on reasonable estimates for possible consequences of audits by the tax authorities of the 
respective countries in which it operates the amount of such provisions is based on various factors such as experience with previous tax 
audits and differing interpretations of tax regulations by the taxable entity and the responsible tax authority 
3 operating profitloss     
the group operating profitloss from continuing operations is stated after chargingcrediting
year ended
31 dec 2014
 ’000
year ended 
31 dec 2013
’000
a gain on farmout
– gain on farmout note 10 671677 –
b exploration expenses
– pre licence exploration costs 23947 2351
– inventory write down – 386
– exploration expenditure written off – 54006
23947 56743
– provision for impairment note 10 309835 172360
333782 229103
110 ophir energy plc
notes to the financial statements continued year ended
31 dec 2014
 ’000
year ended 
31 dec 2013
’000
c general  administration expenses include
– operating lease payments – minimum lease payments 4865 2376
– sharebased payment expense 6876 9094
11741 11470
d other expenses
– profitloss on disposal of assets 2 11
– depreciation of property plant  equipment 1955 1049
– impairment of goodwill note 11 20868 36297
– allowance for provision – 9000
22821 46357
4 net finance expenseincome
year ended
31 dec 2014
 ’000
year ended 
31 dec 2013
’000
– interest income on shortterm bank deposits 3630 2410
– other interest income note 10 3419 –
– net foreign currency exchange lossesgains 12910 24669
5861 27079
5 segment information
the group operates in two geographical segments located in africa and asia the group’s only reportable segment under ifrs 8 is the 
exploration and evaluation of oil  gas related projects in africa
6 auditors’ remuneration    
the group paid the following amounts to its auditors in respect of the audit of the financial statements and for other services provided  
to the group
year ended
31 dec 2014
 ’000
year ended 
31 dec 2013
’000
a paidpayable to ernst  young llp
audit of the financial statements 372 350
local statutory audits of subsidiaries 39 85
total audit services 411 435
audit related assurance services 57 189
corporate finance services 544 533
1012 1157
b paidpayable to auditor if not ernst  young llp
local statutory audits of subsidiaries 5 8
taxation services 810 4
corporate finance services 804 –
other services – 3
1619 15
2631 1172
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supplementary 
information
consolidated 
financial statements
company financial 
statements 7 staff costs and directors’ emoluments 
a staff costs 
employee costs including payments to directors during the year comprised
year ended
31 dec 2014
 ’000
year ended 
31 dec 2013
’000
salaries and wages 33574 21834
social security costs 3722 2759
contributions to pension planssuperannuation funds 2095 1127
share based payment expense note 25 6876 9094
46267 34814
b key management
the table below sets out the details of the emoluments of the group’s key management including directors
year ended
31 dec 2014
 ’000
year ended 
31 dec 2013
’000
aggregate compensation
salaries and wages 10531 8832
social security costs 1602 1492
contributions to pensionssuperannuation funds 574 367
compensation for loss of office
1
1780 298
sharebased payment expense note 25 5391 7386
19878 18375
1  compensation for loss of office includes payments in lieu of notice of 943366 in respect of two directors that commenced their respective notice periods on 5 september 2014 and left the company on 19 
november 2014 the amount represents the monthly salary payments that the company will make in respect of the balance of the directors’ unexpired notice period up to 5 september 2015 the payments  
are subject to mitigation if alternative income is secured the amount above includes 842376 which is unpaid at year end
key management emoluments above excludes aggregate gains made by directors on the exercise of share options of 1019827 201 3 3 1 58426
c directors’ emoluments
year ended
31 dec 2014
 ’000
year ended 
31 dec 2013
’000
i aggregate compensation
salaries and wages 3103 2744
bonuses 2251 2244
social security costs 981 1149
contributions to pensionssuperannuation funds 228 203
compensation for loss of office
1
  943 298
other benefits 44 39
7550 6677
1  compensation for loss of office includes payments in lieu of notice of 943366 in respect of two directors that commenced their respective notice periods on 5 september 2014 and left the company 
on 19 november 2014 the amount represents the monthly salary payments that the company will make in respect of the balance of the directors’ unexpired notice period up to 5 september 2015 
the payments are subject to mitigation if alternative income is secured the amount above includes 842376 which is unpaid at year end
directors’ emoluments above excludes aggregate gains made by directors on the exercise of share options of 1019827 2013 3158426
year ended
31 dec 2014
 ’000
year ended 
31 dec 2013
’000
ii sharebased payment expense note 25 3444 5495
iii amounts paid to directorrelated entities not included in i above note 30 – 10
number of directors to whom superannuation or pension benefits accrued during the year 4 4
112 ophir energy plc
notes to the financial statements continued d average number of persons employed full time equivalents
year ended
31 dec 2014
year ended 
31 dec 2013
ceo 1 1
exploration and technical 35 33
commercial and support 91 58
127 92
8 taxation
a taxation chargecredit
year ended
31 dec 2014
 ’000
year ended 
31 dec 2013
’000
current income tax
uk corporation tax – 1530
uk corporation tax – adjustment in respect of prior periods 341 –
foreign tax 209259 –
foreign tax – adjustments in respect of prior periods 809 –
total current income tax charge 210409 1530
deferred tax
origination and reversal of temporary differences 23242 36190
tax chargecredit in the income statement 233651 34660
b reconciliation of the total tax chargecredit
the tax benefit not recognised in the income statement is reconciled to the standard rate of corporation tax in the uk of 2150 2013 2325 
the differences are reconciled below 
year ended
31 dec 2014
 ’000
year ended 
31 dec 2013
’000
profitloss on operations before taxation 288493 280467
profitloss on operations before taxation multiplied by the uk standard rate of corporation tax of 2150  
2013 2325 62026 65209
nondeductible expenditure 6132 14517
sharebased payments 634 953
expenditure in tax exempt jurisdictions – 2662
effect of overseas tax rates 92492 –
unrecognised deferred tax assets 71389 12417
other adjustments 172 –
adjustment in respect of prior periods 1150 –
total tax chargecredit in the income statement 233651 34660
113 annual report and accounts 2014
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consolidated 
financial statements
company financial 
statements 8 taxation continued
c deferred income tax   
deferred income tax balances at 31 december relate to the following   
year ended
31 dec 2014
 ’000
year ended 
31 dec 2013
’000
deferred tax liabilities
exploration and evaluation assets 38048 –
fair value adjustment in respect of exploration assets 6000 20806
44048 20806
d unrecognised tax losses   
the group has gross tax losses arising in the uk of 135921762 2013 68623000 and australia 7331000 2013 3400365 that  
are available to carry forward indefinitely to offset against future taxable profits of the companies in which the losses arose deferred tax assets 
have not been recognised in respect of these losses as there is not sufficient certainty that taxable income will be realised in the future due to the 
nature of the group’s international exploration activities and the long lead times in either developing or otherwise realising exploration assets 
e other unrecognised temporary differences
the group has other net unrecognised temporary differences in the various african countries where we are active totalling 164441000 
2013 244620000 in respect of provisions and exploration expenditure for which deferred tax assets have not been recognised
f change in corporation tax rate
deferred tax has been calculated at the rates substantively enacted at the statement of financial position date
the standard rate of uk corporation tax in the year changed from 23 to 21 with effect from 1 april 2014 and a further rate change to 20 
from 1 april 2015 was substantively enacted as part of the finance bill 2013 on 2 july 2013 any uk deferred tax that is recognised is therefore 
recognised at the reduced rate of 20 deferred tax in kenya and tanzania is provided for at the statutory rates of 30 2013 30 
9 earnings per share   
basic earnings per share amounts are calculated by dividing profit for the year attributable to ordinary equity holders of the parent by the 
weighted average number of ordinary shares outstanding during the year
the following reflects the income and share data used in the basic earnings per share computations
year ended
31 dec 2014
 ’000
year ended 
31 dec 2013
’000
earnings
earnings for the purposes of basic and diluted earnings per share 
profitloss for the year 54842 245807
less noncontrolling interest 4 30
profitloss attributable to equity holders of the parent 54846 245777
year ended
31 dec 2014
year ended 
31 dec 2013
number of shares
basic weighted average number of shares 577799351 546885741
there were 6469484 2013 10111578 outstanding share options and warrants at 31 december 2014 which were dilutive 2013 antidilutive 
no ordinary shares of 025p each on exercise of options and warrants have been issued between the year end 31 december 2014 and the 
date of approval of these financial statements
114 ophir energy plc
notes to the financial statements continued 10 exploration and evaluation assets
year ended
31 dec 2014
 ’000
year ended 
31 dec 2013
’000
cost
balance at the beginning of the year 1296783 961713
additions
1
594340 389076
expenditure written off
2
– 54006
recovery of costs incurred on farm out of exploration interests
3
643995 –
balance at the end of the year 1247128 1296783
provision for impairment
balance at the beginning of the year 172360 –
additional allowance
4
309835 172360
balance at the end of the year 482195 172360
net book value
balance at the beginning of the year 1124423 961713
balance at the end of the year 764933 1124423
1  additions in the year include exploration activities in equatorial guinea – block r 2008 million tanzania – blocks 1 3  4 1121 million gabon – gnondo block 971 million  
tanzania – east pande 710 million and tanzania – block 7 297 million
  additions in the prior year include exploration activities in tanzania – blocks 1 3  4 2662 million tanzania – block 7 618 million and equatorial guinea – block r 163 million 
2  expenditure written off in the prior year comprise madagascar – marovoay block 190 million kenya – block l15 174 million ghana – accra block 143 million and congo  
– marine ix block 33 million
3  recovery of costs incurred on farmout of exploration interest relates to  
•   the group’s disposal of a 20 interest 5662 million in tanzania blocks 1 3  4 to pavilion energy pte ltd the transaction completed on 22 march 2014 the group received cash consideration 
of 1250 million plus a completion adjustment of 53 million to reflect interest 34 million – refer to note 4 and working capital movements 19 million from the effective date of the 
transaction of 1 january 2014 a further 380 million is payable following the final investment decision in respect of the development of blocks 1 3  4 currently expected in 2016 the total  
gain on disposal after taking into account working capital adjustments and direct costs of the transaction 139 million recognised for the year ended 31 december 2014 was 6717 million
 •  the group also received 778 million relating to back costs 133 million and interim costs 645 million relating to the farmout of the gabonese exploration blocks refer to note 26
4  allowance for impairment of 3098 million comprise
 •  impairment loss of 1073 million in respect of tanzania – east pande block the trigger for the impairment test was the conclusion of the tendei1 drilling operations      
which did not encounter live hydrocarbons and indicated that the carrying value of the block was not recoverable the cash generating unit ‘cgu’ applied for the     
purpose of the impairment assessment is the block and the recoverable amount of nil was based on management’s estimate of value in use
  •  impairment loss of 628 million in respect of gabon – gnondo block the trigger for the impairment test was the conclusion of the affanga deep1 drilling operations    
which did not encounter live hydrocarbons and indicated that the carrying value of the block was not recoverable the cash generating unit ‘cgu’ applied for the    
purpose of the impairment assessment is the block and the recoverable amount of nil was based on management’s estimate of value in use 
 •  impairment loss of 803 million in respect of tanzania – block 7 the trigger for the impairment test was the conclusion of the mkuki1 drilling operations which did not    
encounter live hydrocarbons and indicated that the carrying value of the block was not recoverable the cash generating unit ‘cgu’ applied for the purpose of the     
impairment assessment is the block and the recoverable amount of nil was based on management’s estimate of value in use and
 •  impairment loss of 594 million in respect of kenya – block l9 the trigger for impairment was management’s assessment that no further expenditure on exploration     
and evaluation of hydrocarbons in the block was budgeted or planned within the current licence term the cash generating unit ‘cgu’ applied for the purpose of the     
impairment assessment is the block and the recoverable amount was based on management’s estimate of value in use 
 
the group generally estimates value in use using a discounted cash flow model future cash flows are discounted to their present values using a pretax discount rate of 10 adjustments to cash flows  
are made to reflect the risks specific to the cgu
 allowance for impairment of 1724 million for the year ended 31 december 2013 comprise
 •  impairment loss of 1673 million in respect of tanzania – block 7 the trigger for the impairment test was the conclusion of the mlinzi mbali1 drilling operations which did not encounter live 
hydrocarbons and indicated that the carrying value of the block was not recoverable the cash generating unit ‘cgu’ applied for the purpose of the impairment assessment is the block and the 
recoverable amount of 50 million was based on management’s estimate of value in use and
 •  impairment loss of 51 million in respect of agc – profond block the trigger for impairment was management’s assessment that no further expenditure on exploration and evaluation of 
hydrocarbons in the block was budgeted or planned within the current licence term the cgu applied for the purpose of the impairment assessment is the block and the recoverable amount  
of nil was based on management’s estimate of value in use
the group generally estimates value in use using a discounted cash flow model future cash flows are discounted to their present values using a pretax discount rate of 10 adjustments to cash flows  
are made to reflect the risks specific to the cgu
115 annual report and accounts 2014
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supplementary 
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consolidated 
financial statements
company financial 
statements 11 goodwill
year ended
31 dec 2014
 ’000
year ended 
31 dec 2013
’000
balance at the beginning of the year 20868 57165
impairment of goodwill
1
20868 36297
balance at the end of the year – 20868
1  a goodwill impairment loss of 209 million 2013 363 million was recognised in respect of kenya – block l9 2013 tanzania – block 7 the impairment loss was primarily driven by the impairment 
review of the blocks’ cgus which resulted in impairment losses in the current and prior years reducing the carrying values of the blocks refer to note 10
the goodwill balance was largely the result of recognising a deferred tax liability on the fair value uplifts of assets acquired through the 
dominion acquisition 
allocation of goodwill
goodwill has been allocated to a cgu or groups of cgu’s no larger than the reportable segment which are expected to benefit from the 
related acquisition a cgu is the smallest identifiable group off assets that generates cash inflows that are largely independent of the cash 
inflows from other assets or groups of assets this is usually considered a single operation or in some cases a number of operations that are 
in close geographic proximity or share operational efficiencies the carrying values of goodwill by cgu are as follows
year ended
31 dec 2014
 ’000
year ended 
31 dec 2013
’000
kenya block l9 – 62
– 62
the following goodwill balances result from the requirement on acquisition to recognise a deferred tax liability calculated as the difference 
between the tax effect of the fair value of the acquisition assets and liabilities and their tax bases for the purposes of testing this goodwill 
for impairment any of the related deferred tax liabilities recognised on acquisition that remain at balance date are treated as part of the 
relevant cgu or group of cgu’s
year ended
31 dec 2014
 ’000
year ended 
31 dec 2013
’000
kenya block l9 – 20806
deferred tax liability – 20806
balance at the end of the year – 20868
impairment test for goodwill
the group performs goodwill impairment testing on an annual basis at reporting date the most recent test was carried out at 1 december 2014 
in assessing whether goodwill has been impaired the carrying amount of the cgu or reportable segment is compared with its recoverable 
amount in determining whether goodwill is impaired the group reviewed the status of projects including recent farmout transactions and 
whether the group’s intention is to further develop the groups various assets
the group recognised an impairment expense of 209 million 2013 363 million for the year ended 31 december 2014 refer to  
note 3d and note 10
116 ophir energy plc
notes to the financial statements continued 12 property plant and equipment
year ended
31 dec 2014
 ’000
year ended 
31 dec 2013
’000
office furniture and equipment
cost
balance at the beginning of the year 5786 6497
foreign currency translation 766 772
additions 4770 2016
disposals 44 1955
balance at the end of the year 11278 5786
depreciation
balance at the beginning of the year 2549 4050
foreign currency translation 511 609
depreciation charge for the year 1955 1049
disposals 44 1941
balance at the end of the year 4971 2549
net book value
balance at the beginning of the year 3237 2447
balance at the end of the year 6307 3237
13 financial assets
year ended
31 dec 2014
 ’000
year ended 
31 dec 2013
’000
noncurrent
security deposits – rental properties 3646 3347
security deposits – exploration commitments
1
 13458 1426
17104 4773
1 floating interest deposits pledged to third parties or banks as security in relation to the group’s exploration commitments 
there are no receivables that are past due or impaired
14 inventory
year 
31 dec 2014
 ’000
year ended 
31 dec 2013
’000
drilling consumables 23902 25890
117 annual report and accounts 2014
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financial statements
company financial 
statements 15 trade and other receivables
year ended
31 dec 2014
 ’000
year ended 
31 dec 2013
’000
trade and other debtors 10056 6544
prepayments 2783 1692
12839 8236
all debtors are current there are no receivables that are past due or impaired trade and other debtors primarily relate to receivables from 
joint operations
due to the shortterm nature of these receivables their carrying value is assumed to approximate their fair value
16 cash and cash equivalents
year ended
31 dec 2014
 ’000
year ended 
31 dec 2013
’000
cash 138603 326764
shortterm deposits 739269 179998
877872 506762
cash at banks earn interest at floating rates based on daily bank deposit rates shortterm deposits are made for varying periods of between 
one day and three months depending on the immediate cash requirements of the group and earn interest at the respective shortterm 
deposit rates the fair value of cash and cash equivalents is 8779 million 2013 5068 million
17 investments   
year ended
31 dec 2014
 ’000
year ended 
31 dec 2013
’000
shortterm investments 294904 159921
shortterm investments consist of cash deposit accounts that are made for varying periods of between three months and twelve months 
depending on the immediate cash requirements of the group and earn interest at the respective shortterm investment rates the fair value 
of shortterm investments is 2949 million 2013 1599 million
18 trade and other payables
year ended
31 dec 2014
 ’000
year ended 
31 dec 2013
’000
trade payables 3004 3784
accruals 221681 8711
payables in relation to joint operation partners 17463 108292
242148 120787
trade payables are unsecured and are usually paid within 30 days of recognition
118
notes to the financial statements continued
ophir energy plc 19 provisions
employee
 annual leave
’000
litigation and
other claims
’000
other 
provision
’000
employee long
 service leave
 ’000
total
’000
at 1 january 2014
 current 671 24700 10000 – 35371
 noncurrent – – – 237 237
arising during the year 29 1650 – 47 1726
utilisedpaid – – 10000 – 10000
foreign exchange revaluation 36 – – 21 57
amounts released 227 – – – 227
at 31 december 2014
 current 437 26350 – – 26787
 noncurrent – – – 263 263
employee annual leave and employee long service leave
these provisions are made for statutory or contractual employee entitlements it is anticipated that these costs will be incurred when 
employees choose to take their benefits and as such there is an inherent uncertainty as to the timing of the relevant outflows required  
by the provisions
litigation and other claims
litigation and other claims consist of separate legal matters including claims arising from trading activities in various group companies 
and at various stages of negotiation the majority of any cash outflow from these matters is expected to occur within the next 12 months 
although this is dependent on the development of the various legal claims in the directors’ opinion after taking appropriate legal advice 
the amounts provided at 31 december 2014 represent the best estimate of the expected loss 
other provision
other provision consisted of an amount representing the unavoidable least net cost of exiting a contract the provision was settled in full 
during the year
20 financial instruments
capital management
capital consists of equity attributable to the equity holders of the parent the group met its primary capital management objective of 
ensuring that it has sufficient funds to carry out its exploration activities and safeguard the group’s ability to continue as a going concern 
the group is not subject to any externally imposed capital requirements 
to maintain or adjust the capital structure the group may issue new shares for cash engage in active portfolio management or other such 
restructuring activities as appropriate
no significant changes were made in the objectives policies or processes during the year ended 31 december 2014 
financial risk management
the group’s principal financial assets and liabilities comprise trade and other receivables note 15 cash and cash equivalents note 16 
shortterm investments note 17 and trade and other payables note 18 which arise directly from its operations the main purpose of  
these financial instruments is to manage shortterm cash flow and provide finance for the group’s operations
details of significant accounting policies and methods adopted in respect of each class of financial asset financial liability and equity 
instrument are disclosed in note 2 to these financial statements
the group’s senior management oversees the management of financial risk and the board of directors has established an audit committee 
to assist in the identification and evaluation of significant financial risks where appropriate consultation is sought with an external advisor 
to determine the appropriate response to identified risks the group does not trade in derivatives for speculative purposes
the main risks that could adversely affect the group’s financial assets liabilities or future cash flows are credit interest rate foreign currency 
and liquidity risks
119 annual report and accounts 2014
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financial statements
company financial 
statements 20 financial instruments continued
a credit risk 
credit risk refers to the risk that a third party will default on its contractual obligations resulting in financial loss to the group the group’s 
maximum exposure to credit risk of third parties is the aggregate of the carrying value of its security deposits cash and cash equivalents 
shortterm investments and trade and other receivables 
the group trades only with recognised creditworthy third parties and as such collateral is not requested nor is it the group’s policy to 
securitise its trade and other receivables
in addition receivable balances are monitored on an ongoing basis with the result that the group’s experience of bad debts has not been 
significant no impairment loss has been recognised at the year ended 31 december 2014 2013 nil
credit quality of financial assets
equivalent sp rating
1
 internally rated
a1
and above
’000
a2 
and above
’000
a2 
and below
’000
no default
 customers
’000
total
’000
year ended 31 december 2014
current financial assets
cash and cash equivalents 877776 – 47 49 877872
investments 294904 – – – 294904
trade and other receivables – – – 23626 23626
1172680 – 47 23675 1196402
noncurrent financial assets
security deposits 13458 3288 – 358 17104
13458 3288 – 358 17104
1  the equivalent sp rating of the financial assets represents that rating of the counterparty with whom the financial asset is held rather than the rating of the financial asset itself
equivalent sp rating
1
 internally rated
a1
and above
’000
a2 
and above
’000
a2 
and below
’000
no default
 customers
’000
total
’000
year ended 31 december 2013
current financial assets
cash and cash equivalents 506618 – – 144 506762
investments 159921 – – – 159921
trade and other receivables – – – 8236 8236
666539 – – 8380 674919
noncurrent financial assets
security deposits 3342 – 1426 5 4773
3342 – 1426 5 4773
1  the equivalent sp rating of the financial assets represents that rating of the counterparty with whom the financial asset is held rather than the rating of the financial asset itself
credit risk on cash and cash equivalents and shortterm investments is managed by limiting the term of deposits to periods of less  
than twelve months and selecting counterparty financial institutions with reference to long and shortterm credit ratings published by 
standard  poor’s
120 ophir energy plc
notes to the financial statements continued fair values
the maximum exposure to credit risk is the fair value of security deposits and receivables collateral is not held as security
the fair values and carrying values of noncurrent receivables of the group are as follows
31 dec 2014 31 dec 2013
carrying 
amount
’000
fair value 
’000
carrying 
amount
’000
fair value 
’000
security deposits 17104 16899 4773 4550
17104 16899 4773 4550
the fair values are based on cash flows discounted at a rate reflecting current market rates adjusted for counter party credit risk  
the fair values of all other financial assets and liabilities approximate their carrying values
b interest rate risk
as of 31 december 2014 the group has no borrowings 2013 nil so interest rate risk is limited to interest receivable on deposits and 
bank balances 
the group’s exposure to the risk of changes in market interest rate relates primarily to the group’s cash assets held in shortterm cash 
deposits the board monitors its cash balance on an ongoing basis and liaises with its financiers regularly to mitigate the risk of a  
fluctuating interest rate the benchmark rate used for shortterm deposits is us libor 
year ended
31 dec 2014
 ’000
year ended 
31 dec 2013
’000
financial assets
security deposits 17104 4773
cash and cash equivalents 877872 506762
investments 294904 159921
net exposure 1189880 671456
the following table demonstrates the sensitivity to a reasonable possible change in interest rates with all other variables held constant  
of the group’s profitloss before tax through the impact on floating rate deposits and cash equivalent
the analysis below reflects a reasonably possible change in interest rates compared to 2013
increasedecrease in interest rate
effect on profit 
31 dec 2014
’000
effect on loss 
31 dec 2013
’000
05 5949 3357
05 5949 3357
the sensitivity in 2014 was maintained at 05 as interest rate volatilities remain similar to those in the prior period 
c foreign currency risk
the group has currency exposures arising from assets and liabilities denominated in foreign currencies and transactions executed in 
currencies other than the respective functional currencies
the group with the exception of ophir services pty ltd have adopted us dollars as their functional and reporting currencies as this 
represents the currency of their primary economic environment as the majority of the group’s funding and expenditure is us dollars  
ophir services pty ltd has adopted the australian dollar as its functional currency
the group’s exposure to foreign currency risk is managed by holding the majority of its funds in us dollars as a natural hedge with 
remaining funds being held in pounds sterling ‘gbp’ australian dollars ‘aud’ euros ‘eur’ tanzanian shillings ‘tzs’ and cfa franc 
beac ‘xaf’ to meet commitments in those currencies 
121 annual report and accounts 2014
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financial statements
company financial 
statements 20 financial instruments continued
as at 31 december 2014 the group’s predominant exposure to foreign exchange rates related to cash and cash equivalents held in pounds 
sterling by companies with us dollar functional currencies 
at the statement of financial position date the group had the following exposure to gbp xaf tzs eur and aud foreign currency that  
is not designated in cash flow hedges
year ended
31 dec 2014
 ’000
year ended 
31 dec 2013
’000
financial assets
cash and cash equivalents 
aud 3858 412
eur 82 293
gbp 73839 138719
tzs 308 96
xaf 626 780
78713 140300
investments
gbp 69904 109921
security deposits
gbp 3642 3095
152259 253316
financial liabilities
trade and other payables
aud 663 661
eur 277 –
gbp 6210 5207
7150 5868
net exposure 145109 247448
the below table demonstrates the sensitivity to reasonable possible changes in gbp xaf tzs eur and aud against the us dollar 
exchange rates with all other variables held constant of the group’s loss before tax and equity due to the foreign exchange translation  
of monetary assets and liabilities 
loss before tax
higherlower
equity
 higherlower
2014
’000
2013
’000
2014
’000
2013
’000
us dollar to gbp 5 2013 5 7059 12172 – –
us dollar to gbp 5 2013 5 7059 12172 – –
us dollar to aud 5 2013 5 160 12 89 70
us dollar to aud 5 2013 5 160 12 89 70
us dollar to eur 5 2013 5 10 15 – –
us dollar to eur 5 2013 5 10 15 – –
us dollar to xaf 5 2013 5 31 39 – –
us dollar to xaf 5 2013 5 31 39 – –
us dollar to tzs 5 2013 5 15 5 – –
us dollar to tzs 5 2013 5 15 5 – –
122 ophir energy plc
notes to the financial statements continued significant assumptions used in the foreign currency exposure sensitivity analysis include
• reasonably possible movements in foreign exchange rates were determined based on a review of the last two years’ historical 
movements and economic forecaster’s expectations
• the reasonably possible movement was calculated by taking the us dollar spot rate as at balance date moving this spot rate by the 
reasonably possible movements and then reconverting the us dollar into the respective foreign currency with the ‘new spot rate’  
this methodology reflects the translation methodology undertaken by the group
d liquidity risk
the group has a liquidity risk arising from its ability to fund its liabilities and exploration commitments this risk is managed by ensuring  
that the group has sufficient funds to meet those commitments by monitoring the expected total cash inflows and outflows on a continuous 
basis the group uses its cash and cash equivalents and shortterm investments to manage liquidity risk
all of the group’s trade creditors and other payables note 19 are payable in less than six months
the group did not make use of derivative instruments during the year or during the prior year
e disclosure of fair values
the carrying value of security deposits and financial liabilities disclosed in the financial statements as at 31 december 2014 approximate 
their fair value 
fair value hierarchy 
the group uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique
level 1   quoted unadjusted prices in active markets for identical assets or liabilities
level 2    other techniques for which all inputs which have a significant effect on the recorded fair value are observable either directly  
or indirectly and
level 3    techniques which use inputs which have a significant effect on the recorded fair value that are not based on observable  
market data
year ended
31 dec 2014
 ’000
year ended 
31 dec 2013
’000
level 1 – –
level 2 – –
level 3 16899 4550
16899 4550
there were no transfers between fair value levels during the year
123 annual report and accounts 2014
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financial statements
company financial 
statements 21 share capital
year ended
31 dec 2014
 ’000
year ended 
31 dec 2013
’000
a authorised  
2000000000 ordinary shares of 025p each 7963 7963
b called up allotted and fully paid
591961422 ordinary shares of 025p each in issue at the beginning of the year 2013 400004189 2466 1739
1849373 ordinary shares of 025p each issued on exercise of share options during the year 2013 4081558 8 16
nil ordinary shares of 025p each issued during the year 2013 187875675
1
 – 711
593810795 ordinary shares of 025p each in issue at the end of the year 2013 591961422 2474 2466
1  19850000 ordinary shares issued in relation to the placement announced by the company on 4 march 2014 and subsequently issued on 5 march 2014 the market value of the companies shares  
on these dates were £462 694 and £513 772 respectively
  168025675 ordinary shares issued in relation to the 2 for 5 rights issue announced by the company on 4 march 2014 and subsequently issued on 26 march 2014 the market value of the companies 
shares on these dates were £462 694 and £471 717 respectively
the balances classified as called up allotted and fully paid share capital represents the nominal value of the total number of issued shares 
of the company of 025p each 
fully paid shares carry one vote per share and carry the right to dividends
22 treasury shares
year ended
31 dec 2014 
 ’000
year ended 
31 dec 2013
 ’000
nil ordinary shares of 025p each held by the group as treasury shares at the beginning of the year2013 nil – –
15522066 ordinary shares of 025p each acquired during the year 2013 nil 62 –
611952 ordinary shares of 025p each disposed of on exercise of share options during the year 2013 nil 3 –
14910114 ordinary shares of 025p each held by the group as treasury shares at the end of the year 2013 nil 59 –
treasury shares represents the cost of shares in the group purchased in the market and held by the group to satisfy options under the 
group’s employee incentive share option plans refer to note 25 on 14 august 2014 the company announced that the board had 
approved a share buyback programme of up to 100 million of ordinary shares the ‘programme’ during the year the group repurchased 
shares under the programme for a total consideration of 442 million including costs of 03 million the remaining facility as at 31 
december 2014 was 561 million
23 reserves
year ended
31 dec 2014
 ’000
year ended 
31 dec 2013
’000
treasury shares note 22 59 –
other reserves note 24 1695904 1674719
1695845 1674719
noncontrolling interest
1
280 276
1695565 1674443
1 the noncontrolling interest relates to dominion uganda ltd where the group acquired a 95 shareholding during 2012
124 ophir energy plc
notes to the financial statements continued 24  other reserves
share
premium
 1
’000
capital
 redemption
 2
 reserve
’000
options
 premium
 3
 
reserve 
’000
special
 4
 reserve
’000
consolid
ation
 5
reserve
’000
merger
 6
reserve
’000
equity
component
on
convertible
bond
 7
’000
foreign
currency
translation
 8
reserve
’000
accum
ulated
 profits
losses
’000
total other
 reserves
’000
as at 1 january 2013 798256 – 34244 156435 500 415722 669 5852 307721 1102957
loss for the period  
net of tax – – – – – – – – 245777 245777
other comprehensive 
loss net of tax – – – – – – – 1396 – 1396
total comprehensive loss 
net of tax – – – – – – – 1396 245777 247173
new ordinary shares 
issued to third parties – – – – – 802517 – – – 802517
exercise of options 7324 – – – – – – – – 7324
sharebased payment – – 9094 – – – – – – 9094
transfers within reserves
 6
– – – 156435 – – – – 156435 –
as at 1 january 2014 805580 – 43338 – 500 1218239 669 4456 397063 1674719
profit for the period  
net of tax – – – – – – – – 54846 54846
other comprehensive 
income net of tax – – – – – – – 1784 – 1784
total comprehensive 
income net of tax – – – – – – – 1784 54846 56630
purchase of own shares – 62 – – – – – – 44230 44168
exercise of options 1847 – – – – – – – – 1847
sharebased payment – – 6876 – – – – – – 6876
transfers within reserves
 6
– – – – – 876447 – – 876447 –
as at 31 december 2014 807427 62 50214 – 500 341792 669 6240 490000 1695904
1  the share premium account represents the total net proceeds on issue of the company’s shares in excess of their nominal value of 025p per share less amounts transferred to any other reserves
2 the capital redemption reserve represents the nominal value of shares transferred following the company’s purchase of them
3 the option premium reserve represents the cost of sharebased payments to directors employees and third parties 
4  the special reserve was created on reduction of the company’s share capital on 26 july 2007 following the company’s subsequent recording of increase in paid up share capital the special reserve has 
been realised and transferred to accumulated losses
5  the consolidation reserve represents a premium on acquisition of a minority interest in a controlled entity
6  in the prior year the provisions of the companies act 2006 relating to merger relief s612 and s613 were applied to the march 2013 share placement and rights issue raising performed through a cash 
box structure the ‘cash box’ method of affecting an issue of shares for cash is commonplace and enabled the company to issue shares without giving rise to a share premium the premium on shares 
issued net of applicable transaction costs of 345 million as part of the ‘cash box’ arrangement is instead recognised in the merger reserve following on from the completion of the group’s farm out 
of 20 of its interest in tanzania blocks 1 3  4 in march 2014 ophir ventures jersey limited and ophir ventures jersey no2 limited which are wholly owned subsidiaries of the company 
redeemed the preference shares that had been acquired by the company as part of the ‘cash box’ arrangement this has allowed the company to realise 8764 million of the merger reserve to 
accumulated profitslosses as the redemption of the preference shares was considered to be performed with qualifying consideration in the form of free cash and a readily recoverable receivable 
from ophir holdings limited a 100 owned subsidiary of the company and beneficial holder of the group’s interest in tanzania blocks 1 3  4 
7  this balance represents the equity component of the convertible bond net of costs and tax as a result of the separation of the instrument into its debt and equity components the bond was 
converted into 21661476 ordinary shares of 025p each on 21 may 2008
8  the foreign currency translation reserve is used to record unrealised exchange differences arising from the translation of the financial statements of entities within the group that have a functional 
currency other than us dollars
125 annual report and accounts 2014
strategic report
governance 
report
financial  
statements
supplementary 
information
consolidated 
financial statements
company financial 
statements 25 sharebased compensation
a employee incentive share option plans 
ophir energy company foundation incentive scheme
ophir energy company foundation incentive scheme was established on 12 may 2004 shortly after the formation of the company to attract 
new employees on start up the plan provided for a total of 1450000 options to acquire ordinary shares at 1p per share to be issued to 
eligible employees the scheme was terminated on 24 november 2005 and all options issued under the scheme have fully vested
ophir energy company 2006 share option plan 
on 5 april 2006 the board resolved to establish the ophir energy company limited 2006 share option plan 
any employee of the company or any subsidiary or any director of the company or any subsidiary who is required to devote substantially 
the whole of his working time to his duties is eligible to participate under the plan at the grant date the board of directors determine the 
vesting terms if any subject to the proviso that no more than one half of the options become exercisable on the first and second anniversaries 
of the date of grant and any performance conditions are satisfied options have an exercise period of 10 years from the date of grant
ophir energy long term incentive share option plan 
on 26 may 2011 the board resolved to establish the ophir energy long term incentive share option plan this was introduced to  
give awards to directors and senior management subject to outperforming a comparator group of similarly focused oil and gas  
exploration companies in terms of shareholder return over a three year period the plan awards a number of shares to directors and  
senior management based on a multiple of salary however these shares only vest after a three year period and the full award is made  
only if ophir has performed in the top quartile when compared against a selected peer group of upstream oil and gas companies 
ophir energy plc 2012 deferred share plan 
on 19 june 2012 the board resolved to establish the ophir energy plc deferred share plan 2012 ‘dsp’ the plan was introduced to provide 
executive management with a means of retaining and incentivising employees the structure of the dsp will enable a portion of 
participants’ annual bonuses to be deferred into options to acquire ordinary shares in the capital of the company all options issued to date 
vest after a three year period options have an exercise period of 10 years from the date of grant 
the dsp operates in conjunction with the ophir energy plc employee benefit trust the trust will hold ordinary shares in the company for 
the benefit of its employees and former employees which may then be used on a discretionary basis to settle the dsp awards as and when 
they are exercised no shares have been acquired by the trust
the following table illustrates the number and weighted average exercise prices ‘waep’ of and movements in share options during the 
period for the above schemes these are denominated in pounds sterling and have been translated to us dollars using the closing 
exchange rate for presentation purposes
2014
number
2014
waep
2013
number
2013
waep
outstanding options beginning of year 10111578 150£096 11131204 221£140
granted during the year 2052911 030£019 3453199
1
202£129
exercised during the year 2461325 071£046 4081558 178£114
expired during the year 1501851 306£197 391267 000£000
outstanding options at end of year 8201313 139£090 10111578 150£096
exercisable at end of year 3885282 328£211 4002826 363£232
1  awards granted under employee incentive share option plans before 25 march 2014 were increased by a factor of 1156329 and the exercise price reduced by the same factor to ensure that award 
holders would not be disadvantaged visàvis shareholders as a result of the rights issue in march 2013 options granted during the year include additional long term incentive awards and 2006 share 
option awards of 1725972 in respect of this adjustment
126 ophir energy plc
notes to the financial statements continued the weighted average exercise price of options granted during the year was 030 2013 202 the range of exercise prices for options 
outstanding at the end of the year was 000 to 855 2013 000 to 861 with a remaining exercise period in the range of 3 to 9 years
the fair value of equitysettled share options granted is estimated as at the date of grant using a binomial model taking into account  
the terms and conditions upon which the options were granted the table below lists the inputs to the model used for the year ended 
31 december 2014 
  2006 share option plan   long term incentive plan  2012 deferred share plan
2014 2013 2014 2013 2014 2013
dividend yield  – – – – – –
exercise price 429£260 718£472 nil nil nil nil
share volatility  50 50 41 45 50 50
riskfree interest rate  1 1 094 040 1 1
expected life of option years 2–10 2–10 0–5 0–5 1–3 1–3
weighted average share price 406£246 717£471 406£246 608£397 406£246 717£471
the expected life of the options is based on historical data and is not necessarily indicative of exercise patterns that may occur the expected 
volatility reflects the assumption that the historical volatility is indicative of future trends which may also not be the actual outcome
b sharebased payments to directors 
during the year a total of 552522 2013 501182 nil cost options to acquire ordinary shares were granted to directors under the ophir energy 
long term incentive plan in addition options granted under the plan before 25 march 2013 were increased by a factor of 1156329 and 
the exercise price reduced by the same factor to ensure that award holders would not be disadvantaged visàvis shareholders as a result  
of the rights issue in march 2013 435344 additional options were granted under the ophir energy long term incentive plan in respect of 
this adjustment
during the year no options were granted to directors under the ophir energy company 2006 share option plan in the prior year 360127 
options at a weighted average price of £472 738 to acquire ordinary shares were granted to directors under the ophir energy company 
2006 share option plan in addition options granted under the plan before 25 march 2013 were increased by a factor of 1156329 and the 
exercise price reduced by the same factor to ensure that award holders would not be disadvantaged visàvis shareholders as a result of the 
rights issue in march 2013 101612 additional options were granted under the ophir energy company 2006 share option plan in respect of 
this adjustment
127 annual report and accounts 2014
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financial  
statements
supplementary 
information
consolidated 
financial statements
company financial 
statements 26 joint operations 
the group has the following interests in joint operations
asset
beneficial
 interest
2014

beneficial
 interest
2013

agc profond – 
1
 792
equatorial guinea operator block r 80 80
gabon operator mbeli 40 
2
 50
gabon operator ntsina 40 
2
 50
gabon operator manga 70 
2
 100
gabon operator gnondo 70 
2
 100
gabon operator nkouere 100 
2
– 
gabon operator nkawa 100 
2
 –
ghana accra – 
3
 20
kenya operator block l9 90 
4
 90
kenya block l15 – 
4
 90
myanmar operator block ad03 95 
5
 –
sadr daora – 
6
50
sadr haouza – 
6
50
sadr mahbes – 
6
50
sadr mijek – 
6
50
seychelles operator block 5b1 75 
7
 –
seychelles operator block 5b2 75 
7
 –
seychelles operator block 5b3 75 
7
 –
somaliland berbera 25 
8
 25
tanzania block 1 20 
9
 40
tanzania block 3 20 
9
 40
tanzania block 4 20 
9
 40
tanzania operator block 7 80 
10
 80
tanzania operator east pande 70 
11
 70
uganda ea4b – 
12
 95
1  l’entreprise agc sa ‘entreprise’ has a 12 carried participating interest with an option to increase such participating interest by a maximum of 5 in return for the reimbursement of 5 of the 
costs expended on petroleum operations prior to such date and is carried through the exploration and appraisal phases such interest would be acquired from the other parties on a pro rata basis 
noble energy and rocksource assigned their respective participating interests to ophir profond on 31 december 2012 the assignment was approved by the agc on 22 may 2013 following the 
approval ophir’s participating interest increased from 442 to 792
  the final exploration period for the block the second renewal period which carried one commitment well expired on 18 september 2014 and the psc terminated no viable explorations targets had 
been identified within the block and the partners paid a financial penalty as required under the psc 
2  the government of gabon has the option to participate in the petroleum operations through a 10 participating interest in mbeli marin ntsina marin and gnondo marin and a 15 participating 
interest in manga marin such interest would be acquired from the joint venture parties on a pro rata basis 
 farm out arrangement
  on 18 december 2013 the group announced that it had entered into a comprehensive farm out agreement with omv exploration  production gmbh ‘omv’ covering its deepwater offshore blocks 
in gabon
  under the terms of the agreement omv acquired 30 nonoperated interests in the manga and gnondo blocks and 10 nonoperated interests in the mbeli and ntsina blocks the transaction 
completed on 16 july 2014 
 acquisition
  on 24 october 2014 the group announced the signing of exploration and production sharing contracts for two additional blocks the new blocks a3 and a4 are located outboard of the group’s 
existing acreage in the north gabon basin block a3 will be called the nkouere psc and block a4 the nkawa psc
  the gabonese state has the right to acquire a 20 interest in the newly awarded nkouere and nkawa pscs on commencement of production the gabon national oil company also has the right  
to acquire up to an additional 15 interest at market rates
3  on 19 march 2014 the jv partners entered into an assignment deed the ‘assignment deed’ to transfer i the entire participating interests of ophir ghana accra limited tap oil ghana limited 
and vitol upstream accra limited under the petroleum agreement and the operating agreement to afex oil ghana limited and azonto petroleum ghana limited in the proportions set out in  
the assignment deed and ii operatorship under the petroleum agreement and the operating agreement from ophir ghana accra limited to azonto petroleum ghana limited the transfers  
of participating interests and operatorship were effective from 13 november 2014
4  the group currently has a 90 participating interest with the government of kenya having a 10 carried interest on 19 december 2013 the group formally notified the ministry of energy  
petroleum that it had elected not to enter the next exploration phase of the block l15 psc the minimum obligations for the initial exploration period had been fulfilled and the group withdrew  
from the block on 3 january 2014
5  on 5 december 2014 the group announced that it had signed a production sharing contract with the myanmar ministry of energy for a 95 operated interest in block ad03 offshore myanmar
6 on 25 november 2014 the group sold its interests in the sadr blocks daora haouza mahbes and mijek to calima energy limited
7  on 4 march 2014 the group announced that it had entered into an agreement with whl energy ‘whl’ an australian listed ep company to acquire a 75 operated interest in blocks 5b1 5b2  
and 5b3 located offshore to the south of the seychelles islands in the indian ocean
128 ophir energy plc
notes to the financial statements continued 8  the government of somaliland has a 10 back in right exercisable within 60 days of a commercial discovery such interest would be acquired from the other parties on a pro rata basis
 farmout arrangement
  in the prior year the group reduced its participating interest from 75 to 25 by entering into a farmout arrangement with rak gas llc for a 50 participating interest and operatorship  
in the berbera blocks sl9 and sl12 in return for a carry of ophir’s remaining 25 share in a planned seismic programme
 sale of interest in berbera psc
 on 13 january 2015 the group sold its remaining 25 interest in the berbera blocks sl9 and sl12 to independent energy capital corp
9  the tanzanian petroleum development corporation ‘tpdc’ has a 12 back in right in each of blocks 1 3 and 4 and a further 3  back in right in each of blocks 3 and 4 following a declaration  
of commerciality such interest would be acquired from the other parties on a pro rata basis 
 farmout arrangement
  on 14 november 2013 the group announced that it had entered into an agreement to sell a 20 percent interest in tanzanian blocks 1 3  4 to pavilion energy the sale was approved by  
ophir’s shareholders on 16 december 2013 and the transaction completed on 22 march 2014 
  the first extension period for block 3 and 4 expired in october 2014 in august 2014 bg elected not to continue into the second extension period of block 3 under the terms of the licence and the 
joint operating agreement ophir and pavilion energy have made an application to enter the final term ophir will operate the block with a 80 interest application is subject to government approval 
10 the tpdc has a 15 back in right in block 7 such interest would be acquired from the other parties on a pro rata basis
11  the tpdc has a 20 back in right the east pande block exercisable any time after approval of a development licence such interest would be acquired from the other parties on a pro rata basis
12   during 2012 the group formally applied to the ugandan government to withdraw from block e4ab and the psa was terminated on 23 august 2012 the process of withdrawing from uganda is 
ongoing and subject to the group meeting certain commitments which are near completion ophir has no office or employees in country
capital commitments relating to these projects are included in note 28 there are no contingent liabilities associated with these projects 
refer to note 23n for the group’s accounting policy for jointly controlled assets and liabilities
27 operating lease commitments
at 31 december 2014 the group was committed to making the following future minimum lease payments in respect of operating leases 
over land and buildings with the following lease termination dates
year ended
2014
 ’000
year ended 
2013
 ’000
due within one 1 year 1877 2029
due later than one 1 year but within five 5 years 8982 9956
due later than two 2 years but within five 5 years 4792 6810
15651 18795
28 capital commitments – exploration
in acquiring its oil and gas interests the group has pledged that various work programmes will be undertaken on each permitinterest  
the exploration commitments below are an estimate of the net cost to the group of performing these work programmes
year ended
2014
 ’000
year ended 
2013
 ’000
due within one 1 year 63328 516134
due later than one 1 year but within two 2 years 28600 40877
due later than two 2 years but within five 5 years 6630 47837
98558 604848
129 annual report and accounts 2014
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statements
supplementary 
information
consolidated 
financial statements
company financial 
statements 29 contingent liabilities 
an individual has commenced action against the group relating to a number of terminated consultancy agreements interim hearings in 
relation to security for costs applications were scheduled to be heard on 12 february and 23 february 2015 but were deferred to another 
date to be determined a trial date has not been set and therefore it is not practicable to state the timing of any payment the group has 
taken the view that the action is without merit and accordingly has estimated that no liability will arise as a result of proceedings and no 
provision for any liability has been made in these financial statements
30 related party disclosures
a identity of related parties
the group has related party relationships with its subsidiaries refer to note 6 of the company financial statements joint ventures  
refer to note 18 and note 26 and its directors and companies associated with its directors identified in the paragraph b below 
recharges from the company to subsidiaries in the year were 25872984 2013 7537080 transactions between the company  
and its subsidiaries have been eliminated on consolidation
b other transactions with key management personnel
the company made payments of nil 2013 10311 to vectis petroleum limited a company associated with john lander for the provision 
of his service as a nonexecutive director
compensation of key management personnel including directors is disclosed in note 7b
31 events after the reporting period 
on 3 march 2015 the acquisition date the group acquired 100 of the share capital of salamander energy plc ‘salamander’ a south 
east asian focused independent exploration and production company quoted on the lse
the group announced that the scheme of arrangement was approved by salamander’s shareholders on 6 february 2015 and was sanctioned 
by the supreme court in london effective on 2 march 2015 the transaction has therefore closed and the entire issued ordinary share 
capital of salamander is now owned by ophir the consideration of 3261 million was satisfied in full by equity by which salamander 
shareholders received 05719 ophir ordinary share for each salamander ordinary share held
the enlarged group enhances ophir’s operating capabilities in both africa and south east asia and deepwater expertise across key 
technical and commercial functions the combined group provides shareholders with a diversified exposure to 21 production development 
and exploration blocks in africa and south east asia
the acquisition will be accounted for as a single business combination the fair value assessment of the salamander identifiable assets and 
liabilities acquired as at the date of acquisition have been reviewed in accordance with the provisions of ifrs 3 – business combinations 
details of the group accounting policies in relation to business combinations are contained in note 23c
the fair values of the assets acquired have been calculated using valuation techniques based on discounted cash flows using forward curve 
commodity prices a discount rate based on market observable data and cost and production profiles
130 ophir energy plc
notes to the financial statements continued assets acquired and liabilities assumed
fair value
recognised
 3 march 2015
’000
assets
 exploration  evaluation assets 150000
 property plant  equipment 877000
 financial assets 58054
 investments accounted for using the equity method 228000
 inventory 51228
 trade and other receivables 25033
 cash and cash equivalents 113133
1502448
liabilities
 trade and other payables 95857
 current tax liability 75436
 bank borrowings 303858
 convertible bonds 91897
 bonds payable 145596
 provisions 52614
 deferred tax liability 530559
1295817
total identifiable net assets at fair value 206631
 goodwill arising on acquisition 119500
326131
consideration
equity instruments 152208612 ordinary shares of parent company 326131
total consideration transferred 326131
the group issued 152208612 new shares in consideration for the entire share capital of salamander
the fair value of the shares is the published price of the shares of the group at the acquisition date therefore the fair value of the share 
consideration given is 3261 million
the goodwill balance is the result of the requirement to recognise deferred tax assets and liabilities as specified in ifrs 3 and ias 12 and  
is calculated as the difference between the tax effect of the fair value of the assets and liabilities acquired and their tax bases none of the 
goodwill is expected to be deductible for income tax purposes
the fair value of the trade receivables amounts to 250 million the gross amount of trade receivables is 250 million however none of 
the trade receivables have been impaired and it is expected that the full amounts can be collected
the fair values disclosed are provisional due to the timing and complexity of the acquisition the group is continuing to refine the fair value 
of assets and liabilities identified as part of the acquisition the review of the fair value of the assets and the liabilities acquired will continue 
for 12 months from the acquisition date at the latest
131 annual report and accounts 2014
strategic report
governance 
report
financial  
statements
supplementary 
information
consolidated 
financial statements
company financial 
statements the directors are responsible for preparing the annual report and the company financial statements in accordance with applicable  
united kingdom law and regulations company law requires the directors to prepare company financial statements for each financial year 
under that law the directors are required to prepare company financial statements under international financial reporting standards 
ifrss as adopted by the european union 
under company law the directors must not approve the company financial statements unless they are satisfied that they give a true and 
fair view of the state of affairs of the company and of the profit or loss of the company for that period in preparing the company financial 
statements the directors are required to 
• present fairly the financial position financial performance and cash flows of the company 
• select suitable accounting policies in accordance with ias 8 accounting policies changes in accounting estimates and errors and then 
apply them consistently 
• present information including accounting policies in a manner that provides relevant reliable comparable and understandable 
information 
• make judgements that are reasonable 
• provide additional disclosures when compliance with the specific requirements in ifrss as adopted by the european union is insufficient 
to enable users to understand the impact of particular transactions other events and conditions on the company’s financial position 
and financial performance and 
• state whether the company financial statements have been prepared in accordance with ifrss as adopted by the european union 
subject to any material departures disclosed and explained in the financial statements 
the directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions 
and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the company 
financial statements comply with the companies act 2006 and article 4 of the ias regulation they are also responsible for safeguarding 
the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities 
the directors are also responsible for preparing the strategic report directors’ report the directors’ remuneration report and the 
corporate governance statement in accordance with the companies act 2006 and applicable regulations including the requirements  
of the listing rules and the disclosure and transparency rules
approved by the board on 18 march 2015
nick cooper
chief executive officer
132 ophir energy plc
statement of directors’ responsibilities in relation  
to the company financial statements  notes
as at
31 dec 2014 
 ’000
as at 
31 dec 2013
 ’000
non current assets
property plant and equipment 5 4538 1314
investment in subsidiaries 6 542445 2300049
financial assets 7 6942 3095
553925 2304458
current assets
inventory 8 6067 1843
trade and other receivables 9 4330 39745
cash and cash equivalents 10 769939 69189
investments 11 294904 –
1075240 110777
total assets 1629165 2415235
current liabilities
trade and other payables 12 14499 5207
taxation payable 25 –
provisions 13 – 227
14524 5434
noncurrent liabilities
interestbearing loans and borrowings 14 – 540630
– 540630
total liabilities 14524 546064
net assets 1614641 1869171
capital and reserves
called up share capital 16 2474 2466
treasury shares 17 59 –
reserves 18 1612226 1866705
total equity 1614641 1869171
the financial statements of ophir energy plc registered number 05047425 on pages 133 – 154 were approved by the board of directors on 
18 march 2015
on behalf of the board
nicholas smith     nick cooper
chairman       chief executive officer
133 annual report and accounts 2014
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financial  
statements
supplementary 
information
company statement of financial position
as at 31 december 2014
consolidated 
financial statements
company financial 
statements called up 
share capital 
’000
treasury 
shares
’000
other
1
reserves
’000
total equity
’000
as at 1 january 2013 1739 – 1180443 1182182
loss for the period net of tax – – 132673 132673
other comprehensive income net of tax – – – – 
total comprehensive income net of tax – – 132673 132673
new ordinary shares issued to third parties 711 – 802517 803228
exercise of options 16 – 7324 7340
sharebased payment – – 9094 9094
as at 31 december 2013 2466 – 1866705 1869171
loss for the period net of tax – – 219034 219034
other comprehensive income net of tax – – – – 
total comprehensive income net of tax – – 219034 219034
purchase of own shares – 59 44168 44227
exercise of options 8 – 1847 1855
sharebased payment – – 6876 6876
as at 31 december 2014 2474 59 1612226 1614641
1 refer to note 18
134 ophir energy plc
company statement of changes in equity
for the year ended 31 december 2014 notes
year ended
31 dec 2014 
 ’000
year ended
31 dec 2013
 ’000
operating activities
loss before taxation 219009 132673
adjustments to reconcile loss before tax to net cash flows
interest income 27915 37296
interest expense 7291 –
foreign exchange gains 14840 –
depreciation of property plant and equipment 5 1167 312
provision for employee entitlements 227 145
sharebased payment expense 6876 9094
allowance for impairment of investment in subsidiaries 6 215912 133004
working capital adjustments
increase in trade and other payables 9292 949
increase in trade and other receivables 1918 821
cash flows used in operating activities 23371 27576
income taxes paid – –
interest expense 65190 17
interest expense 7291 –
net cash flows fromused in operating activities 34528 27559
investing activities
purchases of property plant and equipment 5 4391 909
purchase of inventory 4224 1843
investment in subsidiaries 6 20000 837557
proceeds from the redemption of preference shares 6 1079450 –
loans repaid byto subsidiaries 6 508869 462193
cash placed on deposit 11 294904 –
security depositsrefunded 3847 2679
net cash flows fromused in investing activities 1260953 1299823
financing activities
share issue costs – 34399
proceeds from issue of ordinary shares – 837627
proceeds from exercise of share options 1914 7340
purchase of own shares 44230 –
repaymentproceeds from loans and borrowings 14 540630 540630
net cash flows used infrom financing activities 582946 1351198
increase in cash and cash equivalents for the year 712535 23816
net effect of foreign exchange rates on cash and cash equivalents 11785 7
cash and cash equivalents at the beginning of the year 69189 45380
cash and cash equivalents at the end of the year 10 769939 69189
135 annual report and accounts 2014
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governance 
report
financial  
statements
supplementary 
information
company statement of cash flows
for the year ended 31 december 2014
consolidated 
financial statements
company financial 
statements 1 corporate information
ophir energy plc the ‘company’ is a public limited company incorporated domiciled and listed in england its registered offices are located 
at 123 victoria street london sw1e 6de 
ophir energy’s business is the development of offshore and deepwater oil and gas exploration assets the company has an extensive and 
diverse portfolio of exploration interests across africa and asia
the company’s financial statements for the year ended 31 december 2014 were authorised for issue by the board of directors on 18 march 2015 
and the statement of financial position was signed on the board’s behalf by nicholas smith and nick cooper
the company has taken advantage of the exemption provided under s408 of the companies act 2006 not to publish its individual income 
statement and related notes
2 basis of preparation and significant accounting policies
21 basis of preparation and statement of compliance
the company’s financial statements have been prepared in accordance with ifrs as issued by the international accounting standards 
board and adopted by the european union eu ifric interpretations and the companies act 2006 applicable to companies reporting 
under ifrs 
the financial statements are prepared on a going concern basis
the financial statements have been prepared on a historical cost basis except for revaluation of certain derivative instruments measured at 
fair value the financial statements are presented in us dollars rounded to the nearest thousand dollars ’000 except as otherwise indicated
comparative figures for the period to 31 december 2013 are for the year ended on that date
new and amended accounting standards and interpretations
the company has adopted relevant new and amended ifrs and ifric interpretations as of 1 january 2014 these are detailed in note 2  
of the group financial statements
22 significant accounting policies
a investment in subsidiaries
the company holds monetary balances with its subsidiaries of which settlement is neither planned nor likely to occur in the foreseeable 
future such balances are considered to be part of the company’s net investment in its subsidiaries 
the carrying values of investments in subsidiaries are reviewed for impairment when events or changes in circumstances indicate the 
carrying value may not be recoverable
b financial instruments
i cash and shortterm deposits
cash and cash equivalents in the statement of financial position comprise cash at banks and in hand and shortterm deposits with a maturity 
of three months or less but excludes any restricted cash restricted cash is not available for use by the company and therefore is not 
considered highly liquid – for example cash set aside to cover rehabilitation obligations for the purpose of the statement of cash flows  
cash and cash equivalents consist of cash and cash equivalents as defined above net of outstanding bank overdrafts
ii trade and other receivables 
trade receivables which generally have 30 to 90 day terms are recognised and carried at the lower of their original invoiced value and 
recoverable amount where the time value of money is material receivables are carried at amortised cost allowance is made when there  
is objective evidence that the company will not be able to recover balances in full evidence on nonrecoverability may include indications 
that the debtor or group of debtors is experiencing significant financial difficulty the probability that they will enter bankruptcy or default  
or delinquency in repayments balances are written off when the probability of recovery is assessed as being remote the amount of the 
impairment loss is the receivable carrying amount compared to the present value of estimated future cash flows discounted at the original 
effective interest rate
iii trade and other payables
trade and other payables are carried at amortised cost they represent liabilities for goods and services provided to the company prior to 
the end of the financial year that are unpaid and arise when the company becomes obligated to make future payments in respect of the 
purchase of those goods and services the amounts are unsecured and are usually paid within 30 days of recognition
136 ophir energy plc
notes to the financial statements iv interestbearing loans and borrowings
all loans and borrowings are initially recognised at fair value less directly attributable transaction costs 
after initial recognition interestbearing loans and borrowings are subsequently measured at amortised cost using the effective interest 
rate method
gains and losses are recognised in the income statement when liabilities are derecognised as well as through the amortisation process 
a financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires
c inventories
inventories which comprise drilling consumables are stated at the lower of cost and net realisable value cost is determined by using 
weighted average cost method and comprises direct purchase costs cost of transportation and other related expenses
d property plant and equipment
property plant and equipment which comprises furniture and fittings and computer equipment is stated at cost less accumulated 
depreciation and accumulated impairment losses such cost includes costs directly attributable to making the asset capable of operating 
as intended
depreciation
depreciation is provided on property plant and equipment calculated using the straight line method at rates to write off the cost less 
estimated residual value based on prices prevailing at the statement of financial position date of each asset over expected useful lives 
ranging from 3 to 10 years
e provisions
a provision is recognised when the company has a legal or constructive obligation as a result of a past event and it is probable that an 
outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made of the obligation if the effect  
of the time value of money is material expected future cash flows are discounted using a current pretax rate that reflects where appropriate 
the risks specific to the liability where discounting is used the increase in the provision due to unwinding the discount is recognised as a 
finance cost
f pensions and other postretirement benefits
the company does not operate its own pension plan but makes pension or superannuation contributions to private funds of its employees 
which are defined contribution plans the cost of providing such benefits are expensed in the income statement as incurred
g employee benefits 
salaries wages annual leave and sick leave
liabilities for salaries and wages including nonmonetary benefits annual leave and accumulating sick leave expected to be settled within 
12 months of the reporting date are recognised in respect of employees’ services up to the reporting date they are measured at the amounts 
expected to be paid when the liabilities are settled liabilities for nonaccumulating sick leave are recognised when the leave is taken and 
are measured at the rates paid or payable
h equity instruments
equity instruments issued by the company are recorded at the proceeds received net of direct issue costs
i leases
the determination of whether an arrangement is or contains a lease is based on the substance of the arrangement and requires an 
assessment of whether the fulfilment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys  
a right to use the asset
the company has leases where the lessor retains substantially all the risks and benefits of ownership of the asset such leases are classified 
as operating leases and rentals payable are charged to the income statement on a straight line basis over the lease term
j revenue recognition
revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably 
measured revenue is measured at the fair value of the consideration received and receivable excluding discounts rebates vat and other 
sales taxes or duty
137 annual report and accounts 2014
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financial  
statements
supplementary 
information
consolidated 
financial statements
company financial 
statements 2 basis of preparation and significant accounting policies continued
k interest income
interest income is recognised as it accrues using the effective interest rate method that is the rate that exactly discounts estimated future 
cash receipts through the expected life of the financial instrument to the net carrying amount of the financial asset
l sharebased payments
the cost of equitysettled transactions with employees is measured by reference to the fair value at the date at which they are granted  
and is recognised as an expense over the vesting period which ends on the date on which the relevant employees become fully entitled  
to the award fair value is determined with reference to the market value of the underlying shares using a pricing model appropriate to the 
circumstances which requires judgements as to the selection of both the valuation model and inputs in valuing equitysettled transactions 
no account is taken of any vesting conditions other than conditions linked to the price of the shares of the company market conditions
no expense is recognised for awards that do not ultimately vest except for awards where vesting is conditional upon a market condition or  
a nonvesting condition which are treated as vesting irrespective of whether or not the market condition or nonvesting condition is satisfied 
provided that all other vesting conditions are satisfied
at each statement of financial position date before vesting the cumulative expense is calculated on the basis of the extent to which the 
vesting period has expired and management’s best estimate of the number of equity instruments that will ultimately vest the movement 
in cumulative expense since the previous statement of financial position date is recognised in the income statement with a corresponding 
entry in equity
where the terms of an equitysettled award are modified or a new award is designated as replacing a cancelled or settled award the cost 
based on the original award terms continues to be recognised over the original vesting period in addition an expense is recognised over  
the remainder of the new vesting period for the incremental fair value of any modification based on the difference between the fair value 
of the original award and the fair value of the modified award both as measured on the date of the modification no reduction is recognised 
if this difference is negative
where an equitysettled award is cancelled it is treated as if it had vested on the date of cancellation and any cost not yet recognised in  
the income statement for the award is expensed immediately any compensation paid up to the fair value of the award at the cancellation 
or settlement date is deducted from equity with any excess over fair value being treated as an expense in the income statement
for equitysettled sharebased payment transactions with third parties the goods or services received are measured at the date of receipt 
by reference to their fair value with a corresponding entry in equity if the company cannot reliably estimate the fair value of the goods or 
services received their value is measured by reference to the fair value of the equity instruments granted
m foreign currency translation
the functional currency of the company is determined on an individual basis according to the primary economic environment in which 
it operates 
transactions in foreign currencies are initially recorded in the functional currency by applying the spot exchange rate ruling at the date  
of the transaction monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the 
statement of financial position date all exchange differences are taken to the income statement nonmonetary items that are measured 
at historical cost in a foreign currency are translated using the spot exchange rate ruling as at the date of the initial transaction nonmonetary 
items measured at a revalued amount in a foreign currency are translated using the spot exchange rate ruling at the date when the fair 
value was determined
138 ophir energy plc
notes to the financial statements continued n income taxes
current tax
current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities based on 
tax rates and laws that are enacted or substantively enacted by the statement of financial position date 
current income tax is charged or credited directly to equity if it relates to items that are credited or charged to equity otherwise income tax 
is recognised in the income statement
deferred tax
deferred income tax is recognised on all temporary differences arising between the tax bases of assets and liabilities and their carrying 
amounts in the financial statements with the following exceptions
• where the temporary difference arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a 
business combination and at the time of the transaction affects neither accounting nor taxable profit or loss
• in respect of taxable temporary differences associated with investments in subsidiaries associates and joint ventures where the timing 
of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the 
foreseeable future and
• deferred income tax assets are recognised only to the extent that it is probable that taxable profit will be available against which the 
deductible temporary differences carried forward tax credits or tax losses can be utilised
the carrying amount of deferred income tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no 
longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised 
unrecognised deferred tax assets are reassessed at the end of each reporting period and are recognised to the extent that it has become 
probable that future taxable profit will be available to allow the deferred tax asset to be recovered 
deferred income tax assets and liabilities are measured on an undiscounted basis at the tax rates that are expected to apply when the 
related asset is realised or liability is settled based on tax rates and laws enacted or substantively enacted at the statement of financial 
position date
deferred income tax is charged or credited directly to equity if it relates to items that are credited or charged to equity otherwise deferred 
income tax is recognised in the income statement
o impairment 
the company assesses at each reporting date whether there is an indication that an intangible asset or item of property plant  equipment 
may be impaired if any indication exists or when annual impairment testing for is required the company estimates the asset’s recoverable 
amount an asset’s recoverable amount is the higher of an asset’s or cashgenerating unit’s ‘cgu’ fair value less costs to sell and its value  
in use and is determined for an individual asset unless the asset does not generate cash inflows that are largely independent of those from 
other assets or groups of assets when the carrying amount of an asset or cgu exceeds its recoverable amount the asset is considered 
impaired and is written down to its recoverable amount in assessing value in use the estimated future cash flows are discounted to their 
present value using a pretax discount rate that reflects current market assessments of the time value of money and the risks specific to the 
asset in determining fair value less costs to sell recent market transactions are taken into account if available if no such transactions can 
be identified an appropriate valuation model is used these calculations are corroborated by valuation multiples quoted share prices for 
publicly traded subsidiaries or other available fair value indicators
the company bases its impairment calculation on detailed budgets and forecast calculations which are prepared separately for each  
of the company’s cgu’s to which the individual assets are allocated these budgets and forecast calculations generally cover a period  
of five years for longer periods a longterm growth rate is calculated and applied to project future cash flows after the fifth year
impairment losses of continuing operations including impairment on inventories are recognised in the income statement in expense 
categories consistent with the function of the impaired asset except for a property previously revalued and the revaluation was taken  
to other comprehensive income in this case the impairment is also recognised in other comprehensive income up to the amount of any 
previous revaluation
139 annual report and accounts 2014
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report
financial  
statements
supplementary 
information
consolidated 
financial statements
company financial 
statements 2 basis of preparation and significant accounting policies continued
23 significant accounting judgements estimates and assumptions
the preparation of the company financial statements requires management to make judgements estimates and assumptions that  
affect the reported amounts of assets liabilities and contingent liabilities at the date of the company financial statements and reported 
amounts of revenues and expenses during the reporting period estimates and assumptions are continuously evaluated and are based  
on management’s experience and other factors including expectations of future events that are believed to be reasonable under the 
circumstances however actual outcomes can differ from these estimates
the company has used estimates and assumptions in deriving certain figures within the financial statements such accounting estimates 
may not equate with the actual results which will only be known in time the key areas of estimation are detailed in note 24 of the group 
financial statements
3 loss attributable to members of the parent company 
the loss attributable to the members of the company for the year ended 31 december 2014 is 2190 million 2013 1327 million
4 sharebased compensation
a employee incentive share option plans 
ophir energy company foundation incentive scheme
on 12 may 2004 the ophir energy company foundation incentive scheme was established shortly after the formation of the company to 
attract new employees on start up the plan provided for a total of 1450000 options to acquire ordinary shares at 1p per share to be issued 
to eligible employees the scheme was terminated on 24 november 2005 and all options issued under the scheme have fully vested
ophir energy company 2006 share option plan 
on 5 april 2006 the board resolved to establish the ophir energy company limited 2006 share option plan any employee of the company 
or any subsidiary or any director of the company or any subsidiary who is required to devote substantially the whole of his working time to 
his duties is eligible to participate under the plan at the grant date the board of directors determine the vesting terms if any subject to the 
proviso that no more than one half of the options become exercisable on the first and second anniversaries of the date of grant and any 
performance conditions are satisfied options have an exercise period of 10 years from the date of grant
ophir energy long term incentive share option plan 
on 26 may 2011 the board resolved to establish the ophir energy long term incentive share option plan this was introduced to give 
awards to directors and senior management subject to outperforming a comparator group of similarly focused oil and gas exploration 
companies in terms of shareholder return over a three year period the plan awards a number of shares to directors and senior management 
based on a multiple of salary however these shares only vest after a three year period and the full award is made only if ophir has performed 
in the top quartile when compared against a selected peer group of upstream oil and gas companies 
ophir energy plc 2012 deferred share plan 
on 19th june 2012 the board resolved to establish the ophir energy plc deferred share plan 2012 ‘dsp’ the plan was introduced to provide 
executive management with a means of retaining and incentivising employees the structure of the dsp will enable a portion of participants’ 
annual bonuses to be deferred into options to acquire ordinary shares in the capital of the company all options issued to date vest after  
a three year period options have an exercise period of 10 years from the date of grant 
the dsp operates in conjunction with the ophir energy plc employee benefit trust the trust will hold ordinary shares in the company for 
the benefit of its employees and former employees which may then be used on a discretionary basis to settle the dsp awards as and when 
they are exercised no shares have been acquired by the trust
140 ophir energy plc
notes to the financial statements continued the following table illustrates the number and weighted average exercise prices ‘waep’ of and movements in share options during  
the period for the above schemes these are denominated in pounds sterling and have been translated to us dollars using the closing 
exchange rate for presentation purposes
2014
number
2014
waep
2013
number
2013
waep
outstanding options beginning of year 10111578 150£096 11131204 221£140
granted during the year 2052911 030£019 3453199
1
202£129
exercised during the year 2461325 071£046 4081558 178£114
expired during the year 1501851 306£197 391267 000£000
outstanding options at end of year 8201313 139£090 10111578 150£096
exercisable at end of year 3885282 328£211 4002826 363£232
1  awards granted under employee incentive share option plans before 25 march 2013 were increased by a factor of 1156329 and the exercise price reduced by the same factor to ensure that award 
holders would not be disadvantaged visàvis shareholders as a result of the rights issue in march 2013 options granted during the year include additional long term incentive awards and 2006 share 
option awards of 1725972 in respect of this adjustment
the weighted average exercise price of options granted during the year was 030 2013 202 the range of exercise prices for options 
outstanding at the end of the year was 000 to 855 2013 000 to 861 with a remaining exercise period in the range of 3 to 9 years
the fair value of equitysettled share options granted is estimated as at the date of grant using a binomial model taking into account  
the terms and conditions upon which the options were granted the table below lists the inputs to the model used for the year ended 
31 december 2014 
2006 share option plan long term incentive plan 2012 deferred share plan
2014 2013 2014 2013 2014 2013
dividend yield  – – – – – –
exercise price 429£260 718£472 nil nil nil nil
share volatility  50 50 41 45 50 50
riskfree interest rate  1 1 094 04 1 1
expected life of option years 2–10 2–10 0–5 0–5 1–3 1–3
weighted average share price 406£246 717£471 406£246 608£397 406£246 717£471
the expected life of the options is based on historical data and is not necessarily indicative of exercise patterns that may occur  
the expected volatility reflects the assumption that the historical volatility is indicative of future trends which may also not be the 
actual outcome
b sharebased payments to directors
during the year a total of 552522 2013 501182 nil cost options to acquire ordinary shares were granted to directors under the ophir energy 
long term incentive plan in addition options granted under the plan before 25 march 2013 were increased by a factor of 1156329  
and the exercise price reduced by the same factor to ensure that award holders would not be disadvantaged visàvis shareholders as  
a result of the rights issue in march 2013 435344 additional options were granted under the ophir energy long term incentive plan in 
respect of this adjustment
during the year no options were granted to directors under the ophir energy company 2006 share option plan in the prior year 360127 
options at a weighted average price of £472 738 to acquire ordinary shares were granted to directors under the ophir energy company 
2006 share option plan in addition options granted under the plan before 25 march 2013 were increased by a factor of 1156329 and the 
exercise price reduced by the same factor to ensure that award holders would not be disadvantaged visàvis shareholders as a result of the 
rights issue in march 2013 101612 additional options were granted under the ophir energy company 2006 share option plan in respect  
of this adjustment
141 annual report and accounts 2014
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financial  
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supplementary 
information
consolidated 
financial statements
company financial 
statements 5 property plant and equipment
year ended
31 dec 2014 
 ’000
year ended 
31 dec 2013
 ’000
office furniture and equipment
cost
balance at the beginning of the year 2023 1187
additions 4391 909
disposals – 73
balance at the end of the year 6414 2023
depreciation
balance at the beginning of the year 709 470
disposals – 73
depreciation charge for the year 1167 312
balance at the end of the year 1876 709
net book value
balance at the beginning of the year 1314 717
balance at the end of the year 4538 1314
6 investments in subsidiaries
year ended
31 dec 2014 
 ’000
year ended 
31 dec 2013
 ’000
balance at the beginning of the year 2546692 1240493
additions during the year
ophir holdings limited 174699 413791
ophir services pty limited 18659 –
ophir asia limited 341 –
ophir ventures jersey no 2 limited 20000 837558
dominion petroleum limited 81917 77223
ophir gabon manga limited 502 –
ophir gabon gnondo limited 2981 –
ophir gabon ntsina limited 2254 –
ophir gabon mbeli limited 2119 –
ophir gabon nkawa limited 131 –
ophir gabon nkouere limited 92 –
ophir agc profond limited 11 –
ophir seychelles area 12 and 3 limited 951 –
ophir myanmar block ad3 limited 20 –
ophir equatorial guinea block r limited 7122 –
ophir east africa ventures limited 1792 –
ophir tanzania block 1 limited 2405 –
dominion tanzania limited – 6268
dominion petroleum kenya limited 505 –
dominion petroleum congo sprl – 6496
142 ophir energy plc
notes to the financial statements continued year ended
31 dec 2014 
 ’000
year ended 
31 dec 2013
 ’000
repayments during the year
ophir holdings limited 800000 –
ophir ventures jersey limited – preference share redemption
 1
241893 –
ophir ventures jersey no 2 limited – preference share redemption
 2
837557 –
ophir services pty limited – 3671
dominion petroleum acquisitions limited – 17103
dominion oil  gas tanzania limited – 80
dominion tanzania limited 5368 758
dominion uganda limited – 1021
dominion petroleum administrative services limited – 4162
dominion petroleum kenya l15 kenya limited – 283
dominion petroleum kenya limited – 8059
balance at the end of the year 978375 2546692
foreign exchange translation gains and losses 26625 –
allowance for impairment
balance at the beginning of the year 246643 107143
additional allowance 215912 139500
balance at the end of the year 462555 246643
net book value
at the beginning of the year 2300049 1133350
at the end of the year 542445 2300049
1  on 2 april 2012 the company acquired 100 of the redeemable preference shares in ophir ventures jersey limited for 241892975 the preference shares are redeemable by ophir ventures 
jersey no 2 limited or the company at any time up until the redemption date 31 december 2017 and pay a cumulative preferential dividend the ‘preferential dividend’ at a rate of 1 per cent per 
annum the preferential dividend is payable halfyearly in arrears on 31 december and 30 june each year
  on 27 may 2014 ophir ventures jersey limited provided the company with a notice of redemption of the redeemable preference shares these were redeemed on 28 may 2014 for 241892975 
the cumulative outstanding preferential dividend was also settled on 28 may 2014
2  on 8 march 2014 the company acquired 100 of the a preference shares in ophir ventures jersey no 2 limited for 136965000 the preference shares are redeemable by ophir ventures jersey 
no 2 limited or the company at any time up until the redemption date 31 december 2017 and pay a cumulative preferential dividend the ‘preferential a dividend’ at a rate of 5 per cent per annum 
the preferential a dividend is payable halfyearly in arrears on 31 december and 30 june each year
  on 27 may 2014 ophir ventures jersey no2 limited provided the company with a notice of redemption of the redeemable preference shares these were redeemed on 28 may 2014 for 
136965000 the cumulative outstanding preferential a dividend was also settled on 28 may 2014
  on 26 march 2014 the company acquired 100 of the b preference shares in ophir ventures jersey no 2 limited for 700592324 the preference shares are redeemable by ophir ventures jersey 
no 2 limited or the company at any time up until the redemption date 31 december 2017 and pay a cumulative preferential dividend the ‘preferential b dividend’ at a rate of 5 per cent per annum 
the preferential b dividend is payable halfyearly in arrears on 31 december and 30 june each year
  on 27 may 2014 ophir ventures jersey no2 limited provided the company with a notice of redemption of the redeemable preference shares these were redeemed on 28 may 2014 for 
700592324 the cumulative outstanding preferential b dividend was also settled on 28 may 2014
loans to subsidiaries are unsecured interest free and form part of the company’s investments in subsidiaries the loans are denominated  
in us dollars and have no particular repayment terms loan repayments during the year were subsequently refinanced through the entities 
parent company dominion petroleum limited the company has indicated that it does not intend to demand repayment in the foreseeable 
future the allowance for impairment charge primarily relates to a reduction in value of the subsidiaries associated with the write off of 
exploration expenditure
143 annual report and accounts 2014
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consolidated 
financial statements
company financial 
statements 6 investments in subsidiaries continued
significant subsidiaries at 31 december 2014 and ophir’s percentage of share capital to the nearest whole number are set out below  
all of these subsidiaries have been included in the consolidated financial statements on pages 98 – 131 those held directly by the 
company are marked with an asterisk  
country of
 incorporation
principal
activity
class 
of shares
holding
31 dec 2014
holding
31 dec 2013
ophir services pty limited  australia group services ordinary 100 100
ophir holdings limited  jersey ci holding ordinary 100 100
ophir asia limited  jersey ci holding ordinary 100 100
ophir ventures jersey limited  jersey ci holding ordinary 100 100
ophir ventures jersey limited  jersey ci holding preference – 100
ophir ventures jersey no2 limited  jersey ci holding ordinary 100 100
ophir ventures jersey no2 limited  jersey ci holding preference – 100
dominion petroleum limited  bermuda holding ordinary 100 100
ophir gabon gnondo limited jersey ci exploration ordinary 100 100
ophir gabon manga limited jersey ci exploration ordinary 100 100
ophir gabon mbeli limited jersey ci exploration ordinary 100 100
ophir gabon ntsina limited jersey ci exploration ordinary 100 100
ophir gabon nkouere limited jersey ci exploration ordinary 100 –
ophir gabon nkawa limited jersey ci exploration ordinary 100 –
ophir equatorial guinea block r limited jersey ci exploration ordinary 100 100
ophir seychelles area 12 and 3 limited jersey ci exploration ordinary 100 100
ophir myanmar block ad3 limited jersey ci exploration ordinary 100 –
ophir east africa holdings limited jersey ci holding ordinary 100 100
ophir tanzania block 1 limited jersey ci exploration ordinary 100 100
ophir east africa ventures limited jersey ci exploration ordinary 100 100
dominion petroleum administrative services limited united kingdom holding ordinary 100 100
dominion tanzania limited tanzania exploration ordinary 100 100
dominion petroleum kenya limited kenya exploration ordinary 100 100
all subsidiaries have a functional currency of us dollars with the exception of ophir services pty ltd and dominion kenya holdings limited 
which have australian dollar and pounds sterling functional currencies respectively
7 financial assets
year ended
31 dec 2014 
 ’000
year ended 
31 dec 2013
 ’000
noncurrent
security deposits – rental properties 3642 3095
security deposits – exploration commitments
1
 3300 –
6942 3095
1    floating interest deposits pledged to third parties or banks as security in relation to the group’s exploration commitments 
 
there are no receivables that are past due or impaired
8 inventory
year ended
31 dec 2014 
 ’000
year ended 
31 dec 2013
 ’000
drilling consumables 6067 1843
144 ophir energy plc
notes to the financial statements continued 9 trade and other receivables
year ended
31 dec 2014 
 ’000
year ended 
31 dec 2013
 ’000
other debtors 1707 680
prepayments 2623 1374
amounts due from subsidiary undertakings
1
– 37691
4330 39745
1 amounts due from subsidiary undertakings in the prior year comprise accrued preferential dividends refer to note 6
all debtors are current there are no receivables that are past due or impaired 
due to the shortterm nature of these receivables their carrying value is assumed to approximate their fair value
10 cash and cash equivalents
year ended
31 dec 2014 
 ’000
year ended 
31 dec 2013
 ’000
cash 30687 69189
shortterm deposits 739252 –
769939 69189
cash at banks earn interest at floating rates based on daily bank deposit rates shortterm deposits are made for varying periods of between 
one day and three months depending on the immediate cash requirements of the group and earn interest at the respective shortterm 
deposit rates the fair value of cash and cash equivalents is 7699 million 31 december 2013 692 million
11 investments
year ended
31 dec 2014 
 ’000
year ended 
31 dec 2013
 ’000
shortterm investments 294904 –
shortterm investments consists of cash deposits that are made for varying periods of between three months and twelve months depending 
on the immediate cash requirements of the group and earn interest at the respective shortterm investment rates the fair value of shortterm 
investments is 2949 million 31 december 2013 nil
12 trade and other payables
year ended
31 dec 2014 
 ’000
year ended 
31 dec 2013
 ’000
trade creditors 893 955
accruals 13606 4252
14499 5207
trade payables are unsecured and are usually paid within 30 days of recognition
145 annual report and accounts 2014
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financial statements
company financial 
statements 13 provisions
year ended
31 dec 2014 
 ’000
year ended 
31 dec 2013
 ’000
employee annual leave
balance at the beginning of the year 227 372
arising during the year – 551
utilised – 461
amounts released 227 235
balance at the end of the year – 227
the provisions are made for statutory or contractual employee entitlements it is anticipated that these costs will be incurred when employees 
choose to take their benefits and as such there is an inherent uncertainty as to the timing of the relevant outflows required by the provisions
14 interestbearing loans and borrowings
year ended
31 dec 2014 
 ’000
year ended 
31 dec 2013
 ’000
loans from subsidiary undertakings – 540630
loan from ophir ventures jersey limited – 2421 million
this loan is unsecured and has no particular repayment terms interest is payable quarterly being 31 march 30 june 30 september and 
31 december in arrears at a three 3 month libor rate plus a margin of two and a half per cent 25 the total facility is 300 million 
the company settled the outstanding loan balance including accrued interest on 28 may 2014
loan from ophir ventures jersey no 2 limited – 2985 million
this loan is unsecured and has no particular repayment terms interest is payable quarterly being 31 march 30 june 30 september and 
31 december in arrears at a three 3 month libor rate plus a margin of two and a half per cent 25 the total facility is 600 million 
the company settled the outstanding loan balance including accrued interest on 28 may 2014
15 financial instruments
the company utilises the same financial risk and capital management as the group refer to note 20 of the group financial statements for 
further details
a credit risk
credit risk refers to the risk that a third party will default on its contractual obligations resulting in financial loss to the company the company’s 
maximum exposure to credit risk of third parties is the aggregate of the carrying value of its security deposits cash and cash equivalents 
shortterm investments and trade and other receivables 
the company trades only with recognised creditworthy third parties and as such collateral is not requested nor is it the company’s policy  
to securitise its trade and other receivables
in addition receivable balances are monitored on an ongoing basis with the result that the company’s experience of bad debts has not 
been significant no impairment loss has been recognised at the year ended 31 december 2014 2013 nil
146 ophir energy plc
notes to the financial statements continued credit quality of financial assets
equivalent sp rating
1
 internally rated
a1
and above
’000
a2 
and above
’000
a2 
and below
’000
no default
 customers
’000
total
’000
year ended 31 december 2014
current financial assets
cash and cash equivalents 769927 – – 12 769939
investments 294904 – – – 294904
trade and other receivables – – – 4330 4330
1064831 – – 4342 1069173
noncurrent financial assets
security deposits 3300 3288 – 354 6942
3300 3288 – 354 6942
1  the equivalent sp rating of the financial assets represents that rating of the counterparty with whom the financial asset is held rather than the rating of the financial asset itself
equivalent sp rating
1
 internally rated
a1
and above
’000
a2 
and above
’000
a2 
and below
’000
no default
 customers
’000
total
’000
year ended 31 december 2013
current financial assets
cash and cash equivalents 69184 – – 5 69189
trade and other receivables – – – 680 680
69184 – – 685 69869
noncurrent financial assets
security deposits 3095 – – – 3095
3095 – – – 3095
credit risk on cash and cash equivalents and shortterm investments is managed by limiting the term of deposits to periods of less than twelve 
months and selecting counterparty financial institutions with reference to long and shortterm credit ratings published by standard  poor’s
fair values
the maximum exposure to credit risk is the fair value of security deposits and receivables collateral is not held as security
the fair values and carrying values of noncurrent receivables of the company are as follows
31 dec 2014 31 dec 2013
carrying
 amount
’000
fair value 
’000
carrying 
amount
’000
fair value 
’000
year ended 31 december
security deposits 6942 6837 3095 3095
6942 6837 3095 3095
the fair values are based on cash flows discounted at a rate reflecting current market rates adjusted for counter party credit risk the fair 
values of all other financial assets and liabilities approximate their carrying values
147 annual report and accounts 2014
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governance 
report
financial  
statements
supplementary 
information
consolidated 
financial statements
company financial 
statements 15 financial instruments continued
b interest rate risk
as of 31 december 2014 the company has no external borrowings 2013 nil so interest rate risk is limited to interest receivable on deposits 
and bank balances 
the company’s exposure to the risk of changes in market interest rate relates primarily to the company’s cash assets held in shortterm cash 
deposits the board monitors its cash balance on an ongoing basis and liaises with its financiers regularly to mitigate the risk of a fluctuating 
interest rate the benchmark rate used for shortterm deposits is us libor 
year ended
31 dec 2014 
 ’000
year ended 
31 dec 2013
 ’000
financial assets
security deposits 6942 3095
cash and cash equivalents 769939 69189
investments 294904 –
1071785 72284
financial liabilities
loans from subsidiary undertakings – 540630
net exposure 1071785 468346
the following table demonstrates the sensitivity to a reasonable possible change in interest rates with all other variables held constant  
of the company’s loss before tax through the impact on floating rate deposits and cash equivalent
the analysis below reflects a reasonably possible change in interest rates compared to 2013
increasedecrease in interest rate
effect on loss 
31 dec 2014
’000
effect on loss 
31 dec 2013
’000
05 5359 2342
05 5359 2342
the sensitivity in 2014 was maintained at 05 as interest rate volatilities remained similar to those in the prior period
148 ophir energy plc
notes to the financial statements continued c foreign currency risk
the company adopts the same policies to manage foreign currency risk as the group refer to note 20c of the group financial statements 
for further details
as at 31 december 2014 the company’s predominant exposure to foreign exchange rates related to cash and cash equivalents held in 
pounds sterling 
at the statement of financial position date the company had the following exposure to gbp and eur foreign currency that is not 
designated in cash flow hedges
year ended
31 dec 2014 
 ’000
year ended 
31 dec 2013
 ’000
financial assets
cash and cash equivalents 
eur 1 28
gbp 73580 2656
73581 2684
investments
gbp 69904 –
security deposits
gbp 3642 3095
147127 5779
financial liabilities
trade and other payables
aud 18 –
eur 86 –
gbp 4949 5207
5053 5207
net exposure 142074 572
149 annual report and accounts 2014
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report
financial  
statements
supplementary 
information
consolidated 
financial statements
company financial 
statements 15 financial instruments continued
the below table demonstrates the sensitivity to reasonable possible changes in gbp and eur against the us dollar exchange rates with  
all other variables held constant of the company’s loss before tax and equity due to the foreign exchange translation of monetary assets 
and liabilities
loss before tax higherlower
2014
’000
2013
’000
us dollar to aud 5 2013 5 1 –
us dollar to aud 5 2013 5 1 –
us dollar to eur 5 2013 5 4 1
us dollar to eur 5 2013 5 4 1
us dollar to gbp sterling 5 2013 5 7109 27
us dollar to gbp sterling 5 2013 5 7109 27
significant assumptions used in the foreign currency exposure sensitivity analysis include
• reasonably possible movements in foreign exchange rates were determined based on a review of the last two years’ historical 
movements and economic forecaster’s expectations
• the reasonably possible movement was calculated by taking the us dollar spot rate as at balance date moving this spot rate by the 
reasonably possible movements and then reconverting the us dollar into the respective foreign currency with the ‘new spot rate’  
this methodology reflects the translation methodology undertaken by the company
d liquidity risk
the company has a liquidity risk arising from its ability to fund its liabilities this company utilises the same policies to mitigate liquidity risk 
as the rest of the group refer to note 20d of the group financial statements for further details
all of the company’s trade creditors and other payables note 12 are payable in less than six months 
the company did not make use of derivative instruments during the year or during the prior year
e disclosure of fair values
the carrying value of security deposits and financial liabilities disclosed in the financial statements as at 31 december 2014 approximate 
their fair value 
fair value hierarchy 
the company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique
level 1 quoted unadjusted prices in active markets for identical assets or liabilities
level 2 other techniques for which all inputs which have a significant effect on the recorded fair value are observable  
either directly or indirectly and
level 3 techniques which use inputs which have a significant effect on the recorded fair value that are not based on  
observable market data
year ended
31 dec 2014 
 ’000
year ended 
31 dec 2013
 ’000
level 1 – –
level 2 – –
level 3 6942 3095
6942 3095
there were no transfers between fair value levels during the year
150 ophir energy plc
notes to the financial statements continued 16 share capital
year ended
31 dec 2014 
 ’000
year ended 
31 dec 2013
 ’000
a authorised
2000000000 ordinary shares of 025p each 7963 7963
b called up allotted and fully paid
591961422 ordinary shares of 025p each in issue at the beginning of the year 2013 400004189 2466 1739
1849373 ordinary shares of 025p each issued on exercise of share options during the year 2013 4081558 8 16
nil ordinary shares of 025p each issued during the year 2013 187875675
1
 – 711
593810795 ordinary shares of 025p each in issue at the end of the year 2013 591961422 2474 2466
1  19850000 ordinary shares in relation to the placement announced by the company on 4 march 2014 and subsequently issued on 5 march 2014 the market value of the companies shares on these 
dates were £462 694 and £513 772 respectively
  168025675 ordinary shares in relation to the 2 for 5 rights issue announced by the company on 4 march 2014 and subsequently issued on 26 march 2014 the market value of the companies shares 
on these dates were £462 694 and £471 717 respectively
the balances classified as called up allotted and fully paid share capital represents the nominal value of the total number of issued shares 
of the company of 025p each 
fully paid shares carry one vote per share and carry the right to dividends
17 treasury shares
year ended
31 dec 2014 
 ’000
year ended 
31 dec 2013
 ’000
nil ordinary shares of 025p each held by the group as treasury shares at the beginning of the year2013 nil – –
15522066 ordinary shares of 025p each acquired during the year 2013 nil 62 –
611952 ordinary shares of 025p each disposed of on exercise of share options during the year 2013 nil 3 –
14910114 ordinary shares of 025p each held by the group as treasury shares at the end of the year 2013 nil 59 –
treasury shares represents the cost of shares in the company purchased in the market and held by the company to satisfy options  
under the group’s employee incentive share option plans refer to note 4 on 14 august 2014 the company announced that the board  
had approved a share buyback programme of up to 100 million of ordinary shares the ‘programme’ during the year the company 
repurchased shares under the programme for a total consideration of 442 million including costs of 03 million the remaining facility  
as at 31 december 2014 was 561 million
151 annual report and accounts 2014
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report
financial  
statements
supplementary 
information
consolidated 
financial statements
company financial 
statements 18 other reserves
share
 premium
1
’000
capital
redemption
2
 reserve
’000
options
premium
3
reserve
’000
special
4
 
reserve
’000
merger
5
 reserve
’000
equity
6
component
 on
 convertible
 bond
’000
foreign
7
currency
translation
reserve
’000
accum
ulated
 profits
losses
’000
total 
other
 reserves
’000
as at 1 january 2013 798256 – 34244 156435 415722 669 11839 236722 1180443
loss for the period net of tax – – – – – – – 132673 132673
other comprehensive income  
net of tax – – – – – – – – –
total comprehensive income  
net of tax – – – – – – – 132673 132673
new ordinary shares issued to 
third parties – – – – 802517 – – – 802517
exercise of options 7324 – – – – – – – 7324
sharebased payment – – 9094 – – – – – 9094
transfers within reserves
5
 – – – 156435 – – – 156435 –
as at 1 january 2014 805580 – 43338 – 1218239 669 11839 212960 1866705
loss for the period net of tax – – – – – – – 219034 219034
other comprehensive income  
net of tax – – – – – – – – –
total comprehensive income  
net of tax – – – – – – – 219034 219034
purchase of own shares – 62 – – – – – 44230 44168
exercise of options 1847 – – – – – – – 1847
sharebased payment – – 6876 – – – – – 6876
transfers within reserves
5
 – – – – 876447 – – 876447 –
as at 31 december 2014 807427 62 50214 – 341792 669 11839 400223 1612226
1  the share premium account represents the total net proceeds on issue of the company’s shares in excess of their nominal value of 025p per share less amounts transferred to any other reserves
2 the capital redemption reserve was established in connection with the purchase of own shares
3 the option premium reserve represents the cost of sharebased payments to directors employees and third parties 
4  the special reserve was created on reduction of the company’s share capital on 26 july 2007 following the company’s subsequent recording of increase in paid up share capital the special reserve has 
been realised and transferred to accumulated losses
5  in the prior year the provisions of the companies act 2006 relating to merger relief s612 and s613 were applied to the march 2013 share placement and rights issue raising performed through a cash 
box structure the ‘cash box’ method of affecting an issue of shares for cash is commonplace and enabled the company to issue shares without giving rise to a share premium the premium on shares 
issued net of applicable transaction costs of 345 million as part of the ‘cash box’ arrangement is instead recognised in the merger reserve following on from the completion of the group’s farm out 
of 20 of its interest in tanzania blocks 1 3  4 in march 2014 ophir ventures jersey limited and ophir ventures jersey no2 limited which are wholly owned subsidiaries of the company 
redeemed the preference shares that had been acquired by the company as part of the ‘cash box’ arrangement this has allowed the company to realise 8764 million of the merger reserve to 
accumulated profitslosses as the redemption of the preference shares was considered to be performed with qualifying consideration in the form of free cash and a readily recoverable receivable 
from ophir holdings limited a 100 owned subsidiary of the company and beneficial holder of the group’s interest in tanzania blocks 1 3  4 
6  this balance represents the equity component of the convertible bond net of costs and tax as a result of the separation of the instrument into its debt and equity components the bond was 
converted into 21661476 ordinary shares of 025p each on 21 may 2008
7  the foreign currency translation reserve arose as a result of the change in functional currency of the company from pound sterling to us dollars on 21 may 2008
152 ophir energy plc
notes to the financial statements continued 19 operating lease commitments
at 31 december 2014 the company was committed to making the following future minimum lease payments in respect of operating leases 
over land and buildings with the following lease termination dates
year ended
31 dec 2014 
 ’000
year ended 
31 dec 2013
 ’000
due within one 1 year 855 237
due later than one 1 year but within five 5 years 7885 7490
due later than two 2 years but within five 5 years 4792 6810
13532 14537
20 borrowing facilities
the company had no external borrowing facilities as at 31 december 2014 2013 nil
21 related party transactions
a identity of related parties
the company has related party relationships with its subsidiaries refer to note 6 note 9 and note 14 its directors and companies 
associated with its directors identified in the following paragraph 
b other transactions with key management personnel
the company made payments of nil 2013 10311 to vectis petroleum limited a company associated with john lander for the 
provision of his service as a nonexecutive director
compensation of key management personnel including directors is disclosed in note 7 of the group financial statements
22 contingent liabilities
an individual has commenced action against the group relating to a number of terminated consultancy agreements interim hearings in 
relation to security for costs applications were scheduled to be heard on 12 february and 23 february 2015 but were deferred to another 
date to be determined a trial date has not been set and therefore it is not practicable to state the timing of any payment the group has 
taken the view that the action is without merit and accordingly has estimated that no liability will arise as a result of proceedings and no 
provision for any liability has been made in these financial statements
23 events after reporting period
on 3 march 2015 the acquisition date the group acquired 100 of the share capital of salamander energy plc ‘salamander’ a south east 
asian focused independent exploration and production company quoted on the lse
the group announced that the scheme of arrangement was approved by salamander’s shareholders on 6 february 2015 and was sanctioned 
by the supreme court in london effective on 2 march 2015 the transaction has therefore closed and the entire issued ordinary share capital 
of salamander is now owned by ophir the consideration of 3261 million was satisfied in full by equity by which salamander shareholders 
received 05719 ophir ordinary shares for each salamander ordinary share held
the enlarged group enhances ophir’s operating capabilities in both africa and south east asia and deepwater expertise across key 
technical and commercial functions the combined group provides shareholders with a diversified exposure to 21 production development 
and exploration blocks in africa and south east asia
the acquisition will be accounted for as a single business combination the fair value assessment of the salamander identifiable assets and 
liabilities acquired as at the date of acquisition have been reviewed in accordance with the provisions of ifrs 3 – business combinations 
details of the group accounting policies in relation to business combinations are contained in note 23c
the fair values of the assets acquired have been calculated using valuation techniques based on discounted cash flows using forward curve 
commodity prices a discount rate based on market observable data and cost and production profiles
153 annual report and accounts 2014
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report
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statements
supplementary 
information
consolidated 
financial statements
company financial 
statements assets acquired and liabilities assumed
fair value
recognised
 3 march 2015
’000
assets
 exploration  evaluation assets 150000
 property plant  equipment 877000
 financial assets 58054
 investments accounted for using the equity method 228000
 inventory 51228
 trade and other receivables 25033
 cash and cash equivalents 113133
1502448
liabilities
 trade and other payables 95857
 current tax liability 75436
 bank borrowings 303858
 convertible bonds 91897
 bonds payable 145596
 provisions 52614
 deferred tax liability 530559
1295817
total identifiable net assets at fair value 206631
 goodwill arising on acquisition 119500
326131
consideration
equity instruments 152208612 ordinary shares of parent company 326131
total consideration transferred 326131
the group issued 152208612 new shares in consideration for the entire share capital of salamander
the fair value of the shares is the published price of the shares of the group at the acquisition date therefore the fair value of the share 
consideration given is 3261 million
the goodwill balance is the result of the requirement to recognise deferred tax assets and liabilities as specified in ifrs 3 and ias 12 and  
is calculated as the difference between the tax effect of the fair value of the assets and liabilities acquired and their tax bases none of the 
goodwill is expected to be deductible for income tax purposes
the fair value of the trade receivables amounts to 250 million the gross amount of trade receivables is 250 million however none of the 
trade receivables have been impaired and it is expected that the full amounts can be collected
the fair values disclosed are provisional due to the timing and complexity of the acquisition the group is continuing to refine the fair value 
of assets and liabilities identified as part of the acquisition the review of the fair value of the assets and the liabilities acquired will continue 
for 12 months from the acquisition date at the latest
154 ophir energy plc
notes to the financial statements continued registered and other offices
the company’s registered office and head office is
level 4
123 victoria street
london sw1e 6de
telephone 44 020 7811 2400
fax 44 020 7811 2421
website wwwophirenergycom 
other offices are located in
australia
level 3
38 station street
subiaco wa 6008
postal address po box 463  
west perth wa 6872 
australia
telephone 61 08 9212 9600
fax 61 08 9212 9699 
singapore
80 raffles place
3402 uob plaza 1
singapore 048624
telephone 65 6309 3300
fax 65 6536 5390
jakarta 
15th floor indonesian stock exchange building
1502 tower ii
jl jenderal sudirman kav 5253
jakarta 12190
indonesia
telephone 62 21 5291 2900
fax 62 21 3000 4020
bangkok
28th floor unit 2802
q house lumpini building
1 south sathorn road
tungmahamek
sathorn district
bangkok 10120
thailand
telephone 66 2620 0800
fax 66 2620 0820
we also have smaller offices in equatorial guinea gabon  
kenya malaysia myanmar and tanzania
registrars
the company has appointed equiniti limited to maintain its register 
of members shareholders should contact equiniti using the details 
below in relation to all general enquiries concerning their shareholding
equiniti limited 
aspect house 
spencer road
lancing west sussex bn99 6da
telephone 0871 384 2030
international callers 44 121 415 7047
  equiniti limited and equiniti financial services limited are part of the equiniti group of companies 
company share registration employee scheme and pension administration services are provided 
through equiniti limited which is registered in england  wales with no 6226088 investment 
and general insurance services are provided through equiniti financial services limited which is 
registered in england  wales with no 6208699 and is authorised and regulated by the uk 
financial conduct authority
    lines are open monday – friday from 830am – 530pm excluding bank holidays  
calls to 0871 numbers are charged at 8p plus network extras
2015 financial calendar
annual general meeting   20 may 2015
half year results announcement august 2015
full year results announcement march 2016
trading market and shareholder profiles
ophir energy plc’s shares are traded on the london stock exchange 
with ticker ophr the company’s sedol number is b24ct19 and 
isin number is gb00b24ct194
unsolicited mail
the company is required by law to make its share register available 
on request to unconnected organisations as a consequence 
shareholders may receive unsolicited mail including mail from 
unauthorised investment firms if you wish to limit the amount  
of unsolicited mail received please contact the mailing preference 
service an independent organisation whose services are free 
for consumers
further details can be obtained from 
mailing preference service
mps freepost lon 20771
london w1e 0zt
website wwwmpsonlineorguk
further information on share fraud and unauthorised investment 
firms targeting uk investors “boiler room scams” may be obtained 
from the website of the financial conduct authority 
httpwwwfcaorgukconsumersscamsinvestmentscams
sharefraudandboilerroomscams
 
155 annual report and accounts 2014
shareholder 
information
glossary
strategic report
governance 
report
financial  
statements
supplementary 
information
shareholder information shareholder profile by size of holding as at 31 december 2014
range no of holders  of total
shares held
 31122014  of total
1 – 1000 371 3292 153006 003 
1001 – 10000 355 3150 1215181 021 
10001 – 100000 210 1863 7841904 135 
100001 – 1000000 133 1180 50310927 869 
1000001 – 10000000 44 390 167296681 2890 
10000000 14 124 352082982 6082 
1127 10000 578900681 100 
shareholder profile by category as at 31 december 2014
category no of holders  of total
shares held
 31122012  of total
private shareholders 325 2884 896891 015
nominees and other institutional investors 802 7116 578003790 9985
1127 10000 578900681 10000
it should be noted that many private investors hold their shares through nominee companies and therefore the percentage of shares held by private shareholders may be higher than that shown
shareholders’ rights
the following section summarises the rights and obligations in the company’s articles of association the articles relating to the ordinary 
shares of the company the articles can be found on the company’s website
voting at a general meeting subject to any special rights or restrictions attached to any class of shares a on a show of hands every 
member present in person and every duly appointed proxy present shall have one vote b on a show of hands a proxy has one vote for  
and one vote against the resolution if the proxy has been duly appointed by more than one member entitled to vote on the resolution  
and the proxy has been so instructed and c on a poll every member present in person or by proxy has one vote for every share held by 
him unless the directors resolve otherwise no member shall be entitled to vote either personally or by proxy or to exercise any other right  
in relation to general meetings if any call or other sum due from him to the company in respect of that share remains unpaid
transfer of shares transfers of certificated shares must be effected in writing and signed by or on behalf of the transferor and except in  
the case of fully paid shares by or on behalf of the transferee the transferor shall remain the holder of the shares concerned until the name 
of the transferee is entered in the register of members in respect of those shares the directors may decline to register any transfer of a 
certificated share unless a the instrument of transfer is in respect of only one class of share b the instrument of transfer is lodged at  
the transfer office duly stamped if required accompanied by the relevant share certificates or other evidence reasonably required by  
the directors to show the transferor’s right to make the transfer or if the instrument of transfer is executed by some other person on the 
transferor’s behalf the authority of that person to do so and c the certificated share is fully paid up the directors may refuse to register  
an allotment or transfer of shares in favour of more than four persons jointly
directors’ powers the directors shall manage the business and affairs of the company and may exercise all powers of the company  
other than those that are required by the companies act 2006 the 2006 act or by the articles to be exercised by the company at the 
general meeting the directors may delegate any of their powers or discretions including those involving the payment of remuneration or  
the conferring of any other benefit to the directors to such person or committee and in such manner as they think fit any such person or 
committee shall unless the directors otherwise resolve have the power to subdelegate any of the powers or discretions delegated to them
dividends the company may by ordinary resolution declare final dividends to be paid to its shareholders however no dividend shall be 
declared unless it has been recommended by the directors and does not exceed the amount recommended by the directors if the directors 
believe that the profits of the company justify such payment they may pay dividends on any class of share where the dividend is payable 
on fixed dates
156 ophir energy plc
shareholder information continued advisors
auditors
ernst  young llp
one more london place
london se1 2af
united kingdom
solicitors
linklaters
one silk street
london ec2y 8hq
united kingdom
bankers
hsbc bank plc
70 pall mall
london sw1 5ey
united kingdom
hsbc bank australia limited
188190 st george’s terrace
perth wa 6000
australia
financial pr advisors
brunswick group llp
16 lincoln’s inn fields
london wc2a 3ed
united kingdom
corporate brokers
jefferies hoare govett
vintners place
68 upper thames street
london ec4v 3bj
morgan stanley
20 bank street
canary wharf
london e14 4ad
rbc capital markets
thames court
one queenhithe
london ec4v 3dq
they may also pay interim dividends on shares of any class in amounts and on dates and periods as they think fit unless the share rights 
otherwise provide all dividends shall be declared and paid according to the amounts paid up on the shares on which the dividend is paid 
and apportioned and paid pro rata according to the amounts paid on the shares during any portion or portions of the period in respect  
of which the dividend is paid any unclaimed dividends may be invested or otherwise applied for the benefit of the company until they  
are claimed any dividend unclaimed for 12 years from the date on which it was declared or became due for payment shall be forfeited  
and shall revert to the company the directors may if authorised by ordinary resolution offer to ordinary shareholders the right to elect  
to receive in lieu of a dividend an allotment of new ordinary shares credited as fully paid
borrowing powers the board may exercise all the powers of the company to borrow money to guarantee to indemnify to mortgage or 
charge its undertaking property assets present and future and uncalled capital and to issue debentures and other securities whether 
outright or as collateral security for any debt liability or obligation of the company or of any third party
157 annual report and accounts 2014
shareholder 
information
glossary
strategic report
governance 
report
financial  
statements
supplementary 
information 
throughout the report figures are stated in 
us dollars
appraisal well
a well drilled to follow up a discovery and 
evaluate its commercial potential
bbbbl 
billion barrels
bbl
barrels of oil or condensate
bcf
billion cubic feet
bcm
billion cubic metres
boe
barrel of oil equivalent
capex
capital expenditure
cp
contracts and procurement
contingent resource
quantities of resources estimated at a given 
date to be potentially recoverable from 
known accumulations by the application of 
development projects but not currently 
considered to be commercially recoverable 
due to one or more contingencies
cr
corporate responsibility
dst
drill stem test
ep
exploration and production
eg
equatorial guinea
eia
environmental impact assessment
exploration well
a well drilled to explore a potential discovery
farmin
to acquire an interest in a licence from 
another party
farmout
to assign an interest in a licence to 
another party
feed
front end engineering and design
fid
final investment decision
flng
floating lng technology
ga
general  administrative expenses
hoa
head of agreement
hse
health safety and environment
hsse
health safety security and environment
ias regulation
international accounting standards
ifrs
international financial reporting standards
ifric
international financial reporting 
interpretation
ipo
initial public offering
jv
joint venture
lng
liquefied natural gas
loi
letter of intent
lti
lost time incident
ltif
lost time incident frequency
ltip
longterm investment plan
mbtu
million british thermal units
mmbbl
million barrels
mmtpa
millions of tonnes per annum
mmcfd
million cubic feet of gas per day
mou
memorandum of understanding
ngo
nongovernmental organisation
noc
national oil company
ogp
oil and gas producers
psa
pooling and sharing agreement
psc
production sharing contract
rft
request for tender
spud
to commence drilling a well
tcf
trillion cubic feet
tcfe
trillion cubic feet equivalent
tpdc
tanzania petroleum development 
corporation
wti
west texas intermediate
2c
best estimate of contingent resources
158 ophir energy plc
glossary 159 annual report and accounts 2014
notes 160 ophir energy plc
notes printed by spm print iso14001 accredited carbon neutral and fsc certified  
the material used in this report is fsc certified and the inks used are vegetable based  
wwwspmprintcom
designed and produced by sampsonmay 
telephone 020 7403 4099 wwwsampsonmaycom ophir energy plc
registered office
level 4
123 victoria street
london
sw1e 6de
united kingdom
t 44020 7811 2400
f 44020 7811 2421
wwwophirenergycom


Summary:
 our business model
ophir’s model for value creation is through 
the exploration and appraisal phases of the 
ep cycle and through monetising assets  
at the appropriate time to capture optimum 
value for shareholders simply put our job  
is to find resources for the minimal capital 
outlay and then to monetise them for the 
highest possible price 
in 2014 we took the decision in consultation 
with major shareholders to move towards 
sustainability a key part of this financing 
model is the addition of production assets 
which generate cash flow to fund exploration 
and appraisal activity the acquisition of 
salamander was the first step towards 
achieving this goal
strategy a point of 
differentiation
our strategy has three key components
• value creation through exploration
• active portfolio management
• disciplined approach to capital allocation 
and returns
the pavilion energy transaction is an example 
of the first two elements of this strategy  
it demonstrated the ability of the company  
both to find resource and monetise it in this 
case creating a return on investment of 45x 
a proportion of the funds generated by this 
transaction have enabled us to act counter
cyclically adding new exploration acreage to  
the portfolio with a low level of commitment 
spending that provide a series of options for 
future drilling we also exited a number of 
licences that did not have the potential to deliver 
material returns to shareholders in the near term
dr nick cooper 
chief executive 
officer
the acquisition of salamander energy 
completed in march 2015 this diversifies  
our source of funding through the addition  
of cash flow and also by adding a prudent 
level of debt to the balance sheet 
finally we maintain extreme discipline in 
capital allocation every dollar we spend must 
have the potential to deliver a significant return 
to shareholders in a low oil price environment 
alongside this we have reviewed our cost  
base and believe we can make savings of 
250 million over the next two years
operations
another major achievement in 2014 was 
the progress made with the flng project in 
equatorial guinea having hit all of the key 
project milestones for 2014 the project has 
now been significantly derisked and a clear 
commercial framework established we are 
confident of making further progress in 2015 
when we expect to commence the upstream 
and midstream feed projects 
drilling performance and  
new acreage 
in 2014 ophir undertook its busiest ever drilling 
campaign and participated in 1 1 deepwater 
wells of which eight we operated although 
the fivewell exploration programme in gabon 
and in blocks 7 and east pande tanzania 
was disappointing we were successful in our 
remaining six exploration and appraisal wells 
in equatorial guinea and tanzania ophir’s 
three year finding and drilling costs rose from 
089boe to 134boe and the company 
retains a healthy 66 success rate with 
exploration and appraisal drilling
despite a profoundly challenging period for the ep sector  
ophir delivered a number of milestones during 2014 foremost 
amongst these was the completion of the divestment of a  
20 interest in blocks 1 3 and 4 in tanzania for 1288 billion  
the pavilion transaction provided ophir with 
one of the strongest balance sheets in the 
international ep sector and positioned it to 
take advantage of the opportunities presented 
by the industry downturn in early 2015 we 
have taken steps to further strengthen our 
financial liquidity by significantly reducing 
capex from previous levels 2015 capex is 
now forecast at between 250 million and 
300 million 2014 580 million of which 
only approximately 35 million is committed 
exploration expenditure highlighting our 
financial flexibility ophir has the strength 
to emerge from the current period of low oil 
prices as a significantly larger stronger and 
better balanced company 
 includes a 38 million amount that is payable at fid
10 ophir energy plc
chief executive’s review ophir’s strategy for 
growth overview 
vision
ophir’s vision is to be the leading 
international oil and gas exploration 
and production company   
the key elements 
of the strategy are 
value creation 
through 
exploration
active 
portfolio
management 
focus on 
capital 
allocation 
and returns
a key focus of the past year has been to 
rebuild ophir’s exploration portfolio as we 
position the company for the next phase  
of drilling during 2014 ophir added a total 
of 47000 square kilometres in acreage 
across four countries there are no well 
commitments across this acreage meaning 
ophir will be able to offer shareholders access 
to a highgraded exploration portfolio of 
world class potential with only prospects  
we truly believe can deliver commercial 
returns being drilled
outlook
a dramatic fall in the oil price approaching 
50 from its high point in the past year has 
resulted in a significant scaling back of capex 
budgets overhead costs and activity levels 
across the ep sector ophir has similarly 
prioritised its capital expenditure to protect 
its balance sheet and reduce its cost 
structure as a consequence of the sector
wide reduction in activity service costs have 
fallen significantly and we expect this trend  
to continue ophir is selectively exploiting  
this shift in the market seismic costs have 
now dropped to a third of 2014 prices and  
we commenced 3d acquisition in myanmar 
in february 2015 where we have been able 
to triple the size of the survey for the same 
cost as originally budgeted 
201 5 will see ophir continue to progress its  
two lng projects in tanzania and equatorial 
guinea both of these are presently scheduled 
for fid in 201 7 and with drilling behind us  
and construction not commencing until  
after fid these projects have low capital 
requirements with only 1 50 million of capital 
expenditure through to fid we can continue  
to push both projects forward whilst also 
maintaining capital discipline 
the salamander business is now being 
integrated thereby building a stronger larger 
and better balanced company whilst 2015 
will not see the levels of exploration drilling 
that we undertook in 2014 we shall be 
investing and analysing our preexisting and 
new acreage at these low oil prices there is 
rightly a focus on capital discipline and cost 
management however whilst the risk profiles 
of the world’s reservoir rocks remain constant 
the cost of assessing that risk via exploration 
has fallen considerably in recent months 
with our strong balance sheet and with  
the salamander transaction delivering a 
more sustainable business model ophir is 
exceptionally placed to selectively explore 
when most others are unable it is our 
ambition to build the business further over 
the next 12 to 24 months exposing our 
shareholders to material value creation  
at a markedly lower cost
dr nick cooper
chief executive officer
11 annual report and accounts 2014
strategic report
governance 
report
financial  
statements
supplementary 
information
overview
strategy
performance