offshore hydrocarbon mapping plc
annual report 2007
offshore hydrocarbon mapping plc
the t echnology centre
aberdeen science and energy park
claymore drive
bridge of don
aberdeen
ab23 8gd 
wwwohmsurveyscom
info

ohmsurveyscom
t elephone 44 0870 429 6581
fax 44 0870 429 6582
ohm ra cover 2007finalqxd  261107  0944  page 1 contents
1 highlights
2 chairman’s statement
3 chief executive’s review
6 continuing growth and expansion
8 setting industry standards
10 integration
12 board of directors
13 directors’ report
15 statement of directors’ responsibilities
16 remuneration report
19 corporate governance report
21 independent auditors’ report
22 consolidated group income statement
23 consolidated group balance sheet
24 company balance sheet
25 consolidated group cashflow statement 
26 group statement of changes in equity
27 company statement of changes in equity
28 notes forming part of the financial
statements
52 shareholder information
ohm will be the authority 
in integrating csem seismic
and well data to characterise
reservoir properties that 
are critical at all stages in 
the oilﬁeld life cycle
ohm’s divisions lead in the 
ﬁelds of rock physics and the
acquisition and interpretation 
of csem data
offshore hydrocarbon mapping plc
our vision
cover image
2d resistivity section corendered with coincident
seismic from north falklands basin survey collected
for rockhopper exploration plc 2007 1 offshore hydrocarbon mapping plc
annual report 2007
change 2007 2006
revenue up 70 £177m £104m
pretax loss down 37 £10m £16m
gross profit up 1 1 6 £29m £14m
ebitda – £03m £01m
employee numbers up 133 11 4 49
 as at end of year including rock solid images
offshore hydrocarbon mapping plc
highlights
number of csem surveys conducted
5 510 1015 1520 2025 30
global presence
offices locations and csem survey experience
houston
aberdeen
woking
kuala lumpur
oslo 2 offshore hydrocarbon mapping plc
annual report 2007
the year to 31 august 2007 will be seen in 
the future as a vintage year for your company
controlled source electromagnetic csem
imaging became a mainstream exploration tool
the group has emerged unscathed from patent
disputes with a competitor a strategic alliance
was formed with cggveritas the world’s
largest seismic contractor and ohm made 
its first significant acquisition of rock solid
images rsi all of these advances bode well
for the future
revenue for the year increased by 70 over last year to 
£177 millionand the pre tax loss reduced to £10 million
during the year we raised £244 million in three separate
placings of new ordinary sharesthe funds raisedincluding a
substantial subscription by cggv eritasallowed us to finance
the acquisition of rsi and provide working capital to invest in
building the business while continuing our important research
and development efforts following the acquisition of rsicash
balances at the year end amounted to £19 million
in june 2007 our first dedicated vesselohm expresscame 
into service in northern europe ohm expressspecifically
modified for csem operationshas already improved our
operational uptime andeven more pleasinglyoperated at 
the highest levels of hse performancethis was recognised 
by a major client awarding us an hse safety award
the performance of the ohm expressthe hard work of our
other crew in the south atlantic basinthe continuous high level
of data processingmodelling and interpretationas well as some
multiclient library salestogether made for strong revenue
growthespecially in the fourth quarter 
on the basis of that successthe board has approved the 
capital expenditure and the long term charter commitment 
of a second vesselthe ohm leader which will also be modified
specifically for csem operations ohm leader is expected 
to come into service during the second half of 2008
when ohm listed on aim in march 2004 we had two principal
medium term objectivesmarket adoption of the csem
technique and taking the science of csem further to add 
more commercial value to our offering to clients
i believe that csem is now considered a mainstream
exploration tool it is already being included in exploration
licence conditions and will in the next few years be included
as a matter of coursein corporate exploration budget cycles
this is ahead of the typical industry adoption curve
our newly formed alliance with cggv eritas will allow us 
to access their global marketing strengths and capitalise on
opportunities that we may have found difficult to access on 
our own cggv eritas has taken a 15 stake in the company
which i believe demonstrates a faith in the future value of
csem cggv eritas’s technical and technology expertise in
marine acquisitionseismic processing and equipment design
is likely to open interesting avenues of joint research
opportunitiesin particular in the field of seismic and
electromagnetic offerings to the industry
on the sciencewe have also achieved much of what we
originally set out to accomplishintegration of csem with
seismic and the application of csem in shallow water or
complex geological settings our researchers are now
developing our thinking in terms of the wider integration 
of csem with other geophysical data such as well log data
3 and 4d seismic giving quantitative measurement of rock 
and fluid properties which will have immense benefits for
reservoir characterisation and managementthe acquisition 
of rsi will contribute significantly to this effort
one of the greatest challenges facing the oil industry is to
increase recovery of hydrocarbons from their reservoirs
massive investment is being made in complex directional well
drilling and smart completionsthis infrastructure investment
will be much more effective if the reservoir is properly
monitored and characterised with enough precision and 
detail to enable these expensive completions to actually 
drain the hydrocarbons left behind by the initial development
we see this area as a future opportunity for ohm andin a
joint industry project with bp the department for business
enterprise and regulatory reform and the university of
southampton we have embarked on a study of life of field
csem monitoring solutions
looking forwardreflecting our recent and anticipated growth
we are strengthening our senior management team with the
appointments of david flett regional manager asia pacific 
and steve hunt chief operating officerwe intend to equip
and train additional crewscharter further survey ships fit for
ohm’s purposes and increase our research and development
spendingin particular in the domain of seismicem integration
which we see as the next area of growth for your business
the alliance with cggv eritas and the purchase of rsiadded 
to the progress of ohm’s own research and development
have transformed your group into an entity capable of offering
worldwide marketing reachsafe and efficient acquisition of
csem data and ground breaking technologies of the very
nature the oil and gas industry needs to exploredevelop 
and produce cost effectively
it is to the great credit of your management team that they
pursued that vision to transform ohm into the group that 
it is today
at the board level we benefited from the wise counsel of
jeffrey garner whilst he was a director and i thank him for his
contribution gary jones who has served as a nonexecutive
director for three years has due to his other business
commitments decided not to stand for reelection at the
forthcoming agm and accordingly will be resigning following
the announcement of these results i thank gary for his loyal
and valuable service to the company and wish him well for
the future
the various committees of the board were very busy during
the year to deliver corporate governance of the highest
standard whilst the group was shifting gearthe nomination
committee recognising the changes in the group’s future has
begun a review of the board composition strength and skill
matrix with the intention to support the group with the
appropriate oversight through its next generation of growth
on behalf of the board i thank the whole ohm team of
management staff strategic partners and suppliers for their
sterling efforts in taking the group forward during the last 
12 months
dr pierre jungels cbe
chairman
chairman’s statement
a vintage year
dr pierre jungels cbe
chairman 3 offshore hydrocarbon mapping plc
annual report 2007
chief executive’s review
greater adoption
introduction
offshore hydrocarbon mapping plc ohm plc uses specialist
remote sensing information to help our clients to understand
the subsurface of the earththe company was formed to
commercialise the controlled source electromagnetic
csem technique which focused on providing information 
on the nature of electrically resistive bodies in the subsurface
as an aid to oil and gas exploration and developmentthe
acquisition of rock solid images during fiscal year 2007  has
added key skills and capabilities to ohm which will allow the
group to lead the market in the integration of csem with 
the seismic and well logging information which oil companies
traditionally use to examine their subsurface formations
our research leads us to believe that there is immense value
to be created in this combination
the company was founded in 2002 and was floated on 
the aim market of the london stock exchange in 2004
science behind the image 
offshore hydrocarbon mapping’s unique capability is to use
the controlled source electromagnetic surveying technique
often in combination with other geophysical remote sensing
techniques to provide meaningful images of the structure of
the earth which can be used in the search for and production
of hydrocarbons
in its simplest embodiment csem can be used to detect
anomalous responses associated with resistive bodies in the
earth complex processing and analysis of these simple field
responses is required to provide detailed images of the
subsurface to discriminate between signals related to
commercial hydrocarbon deposits and those from other
geologic or topographic features of the subsurface by using
its unique techniques and software to identify resistive bodies
in the earth that correlate in depth and extent to suspected
hydrocarbon plays and having resistivity values consistent 
with hydrocarbon saturated sediments ohm are able to
reduce significantly the risk of their clients drilling non
commercial wells
operating activity in 2007 
since inception in 2002 ohm’s csem equipment packages
have been designed to be portable enabling us to mobilise
them cost effectively to remote locations using commercial
sea freight once they arrive in a port close to a client’s work
site they are mobilised onto locally sourced vessels for the
survey operations to be undertaken our skilled survey crews
fly out to join these vessels and execute the surveys as
industry adoption has progressed and our order visibility 
has become greater it made sense for us to move to securing
some dedicated tonnage to meet our offshore survey needs
accordingly we entered into a five year charter for ohm
express our new flagship
at 1 10 metres long the ohm express is a relatively large
vessel and has a hull designed for voyages in the rough sea
conditions prevalent in higher attitude seasthis affords her
excellent sea keeping capabilities and provided an excellent
foundation for a purpose designed conversion that has
resulted in a safe comfortable operating platform for our
csem surveysthe vessel entered service in june 2007
conducting surveys in the north sea northern norway and
the north atlantict o date the ohm express has exceeded
our expectations in terms of economy and efficiency
elsewhere our crews performed work in west africa and in
the falkland islands our work programme in the falkland
islands was hampered by extraordinarily bad weather during
the southern hemisphere summer seasonthis caused the
survey to be extended beyond the time for which we had the
original vessel charteredthe changeover of vessel that this
necessitated impacted on the profitability of that contract 
and without this our results for the year would have been
even better
workloads for our data processing groups in houston and
aberdeen have remained extremely high working on data
acquired by our own field crews as well as applying ohm’s
ever advancing processing and analysis techniques on a
contract basis to clients who wish to enhance data acquired
on earlier contracts or by other contractors
our recruitment and training programme has produced a 
good flow of qualified personnel to support both our offshore
operations and onshore processing groups and we are
particularly pleased with this achievement given the competition
for personnel created by an overheated oil and gas industry
rock solid images 
rock solid images rsi joined the group in the last weeks 
of our 2007 fiscal year and so made only the smallest of
contributions to our 2007 results
rsi is the industry leader in the application of rockphysics 
for integrating and calibrating seismic and borehole data to
provide geologic insight and reservoir understanding at all
stages of the oilfield lifecycle
rsi was founded in november 1998 though the merger of 
the discovery bay company seismic research corporation
and petrosoft inc rsi offers a range of products and services
including seismic and well data conditioning seismic inversion
for rock and fluid properties and software for rockphysics
seismic modelling and seismic attribute calculation and
classification
unique to rock solid images is our lfp lithology and 
fluid prediction consortiumthis consortium has been in
continuous existence under a variety of names since early
1991 2007 saw the launch of phase ii of our lfp project with
18 oilindustry sponsors supporting our research in rock
physics seismic modelling and wellseismic integration
in 2005 ohm and rsi commenced work together on the
integration of csem and seismic datawe found that ohm
and rsi have much in common a similar culture of high quality
science coupled with exceptional customer service initial
joint research gave intriguing insight into the potential for 
total rock and fluid property measurement from the
intelligent combination of csem and seismic data and led to
some early patent applications ohm’s management believe
that this combination will create new products with exciting
application in reservoir management and enhanced recovery
from our clients’ oil and gas reservoirsthis is the justification
for the strategic acquisition of rock solid images
we have announced to industry the launch of our wise
project welldriven integration of seismic and em data for
the development of technology products and services in this
important new area and this has met with a high level of
industry interest
safety and the environment 
the group conducts operations offshore often in hostile and
remote conditions in order to control the risks associated with
this activitythe group has developed a comprehensive safety
and environmental management systemthis system is
frequently reviewed and updated for new circumstances and 
to capture increasing experience and emerging best practice
ownership of the system lies not just with the group and its
management but with the personnel operating “at the coalface”
whose experience and knowledge are vitally important in the
development and maintenance of safe working regimes
dave pratt
chief executive officer 4 offshore hydrocarbon mapping plc
annual report 2007
it is a testament to the dedication of all that we have for 
the sixth successive year achieved our goal of conducting our
operations without significant injury lost time incidents or
accidental damage to our environment in 2007 we were also
grateful to have received awards from some of our clients for
our hse performance
research and development 
ohm’s industry leading capabilities are driven by the group’s
efforts in research and development in dr lucy macgregor
and her team we have assembled a group of the leading
researchers in our field
our research efforts over the past years have focused on
initiatives to improve the images of the earth that csem
provides and to widen the application of the method to a
wider set of geological environmentswe lead the market 
in our ability to conduct csem operations in a full range of
water depths and to produce images of complex resistive
structures in complex basins
this work goes on apace but the addition of rock solid
images heralds an extra layer of research that will focus on 
the derivation and quantitative measurement of rock and fluid
properties from surface geophysical measurements co
operations between the research groups of ohm and rsi
over the last two years has already revealed exciting benefits
from the intelligent combination of csem and seismic
measurements of the same piece of the subsurface our joint
industry research project with bp and the uk’s department
for business enterprise and regulatory reform is also
contributing vital knowledge and understanding in this area
and is a guiding force in assisting us to prioritise research for
the maximum commercial benefit
rock solid images have successfully attracted a number of
leading oil companies to their lithology and fluid prediction
consortiumthis client involvement is a valuable tool in
accelerating the adoption of new technology within oil
companies whilst making a valuable contribution to the costs
of researchwe are widening this concept with the launch 
of our wise consortium which will focus on the role that
integrated seismic and csem can play in developing
understanding of subsurface rock and fluid properties
all of this research has valuable impact on our ability to
provide enhanced subsurface understanding to our
exploration clientsthis will enable us to stay far ahead of
those that seek to enter the csem marketthe potentially
bigger prize though is the possibility of developing a significant
new market in applying csem integrated with seismic to
reservoir monitoring and managementthe oil industry
produces only about one third of the oil and gas that it
discovers studies to date have shown that reservoir
monitoring and management strategies can significantly
increase the recovery of reservesthe seismic technique 
has been used to provide time lapse images of reservoirs 
as they are produced but we believe the integration of 
csem data into these studies will enable a significantly more
complete understanding of the subsurface performance 
of the reservoir
intellectual property 
the work conducted by ohm’s researchers led to a number
of patent filings in the course of the year adding to ohm’s
growing portfolio of intellectual property rights in the csem
space ohm’s intellectual property strategy is to patent
instrumentation processes and applications that improve the
effectiveness of the csem technique a competitor has for a
number of years pursued a general method patenting strategy
in this area ohm has always contended that these general
method patent applications were flawed mainly due to the
amount of information relating to the technique that was
published by academics before the commercialisation phase
beganthe decision during the year by the european patent
office to reject one of these applications seems to support
ohm’s viewpoint
financial review 
the growth trend that we saw in our 2006 fiscal year has
continued through 2007 our revenues for the second half 
of the year were £101 million building on the £76 million 
of the first half yearthis total revenue for ohm’s traditional
businesses of £176 million represents a 69 growth over 
the £104 million achieved in fiscal 2006 in addition we had a
revenue contribution of £01 million resulting from nine days
of trading at rock solid images whose acquisition closed near
the end of the fiscal year
strong performance in our proprietary full service survey
activities and advanced data processing groups compensated
for a shortfall in data library sales driven by the postponement
by the norwegian authorities of the 20th offshore
exploration licensing roundwe anticipate that these sales
will flow through now in fiscal 2008
the gross profit contribution rose to £29 million for fiscal
2007 from £14 million a year earlier representing 17 of
revenue 2006 13 of revenue operating margins continued
to remain under pressure from rising costs of chartering
vessels on the spot market in a tight shipping market and were
further impacted by the cost of sending an additional vessel to
complete work in the falkland islands which overran due to
unusually high weather downtime experienced during the
southern hemisphere operating season however the
introduction of the ohm express on long term charter
improved operating margins in our offshore operations
considerably and contributed towards a second half gross
profit of £22 million 22 of revenue for the group
overheads rose from £28 million to £40 million as the group
increased its investment in staff and geared up for further growth
the progress made during fiscal 2007 has reduced the loss
before tax to slightly under £10 million from £16 million in
2006 and we were pleased to see a net profit of £02 million
in the second half of the year following the £12 million loss
reported in our interim accounts
the group has adopted international financial reporting
standards as approved for use by the european union in
preparing these accounts and a reconciliation to the figures
previously reported under uk gaap has been included in
note 32the financial impact of adopting ifrs on the group’s
income statement and balance sheet has not been significant
the main areas where adjustments have been made relate to
the accounting for intangible assets such as patent protection
costs and internally generated software and accounting for
share based payments such as share options and awards
made to the group’s employeesthe net impact of these
conversion adjustments was to increase total shareholders’
equity at 1 september 2006 by £02 million to £72 million
the group’s cash balance was a healthy £190 million
following successful fund raisings during the year some 
of this money is already committed to capital expenditure 
on equipment for our third data acquisition crew which is
currently under constructionwe anticipate that we will bring
this crew into service at the start of the north sea operating
season in may of 2008 and are preparing for a fourth crew to
follow closely behind if market demand continues to grow as
anticipatedthe group should move to sustained profitability
with the third crew in operation with profits growing as more
crews are added thereafter
chief executive’s review continued 5 offshore hydrocarbon mapping plc
annual report 2007
principal risks and uncertainties
the group operates in a competitive environment and many
of its technologies are at the leading edge of industry
capability accordingly the group’s growth is heavily driven by
the general state of demand for oil and gas exploration and
exploitation services by the rate of adoption of these
technologies by its oil industry clients and by competitive
pressures created by new entrants seeking to duplicate its
offeringthe group seeks to control these risks through its
marketing and sales strategies and by patenting key elements
of its technology it invests in research and development to
maintain its lead over its competitors a number of oil service
companies have indicated intent to enter the group’s core
offshore electromagnetic market and accordingly earnings
could be impacted if these companies succeeded in developing
a competitive offering which captured market share
a good portion of the group’s operations are carried out
offshore and internationally offshore operations increase
exposure to certain health safety and environmental risksthe
group has well developed operating procedures and a health
safety and environmental management system through which
it seeks to control these risks and these are regularly audited
by our clients and benchmarked against industry norms and
host government standards to ensure that we are operating at
acceptably high levels in this regardwhere necessary advice is
taken from security consultants before making decisions about
sending staff to countries where there may be a security risk
offshore operations can be impacted by conditions beyond
the group’s control including but not limited to the effects 
of weather tides currents and third party interferencewhere
possible our operating companies seek to pass as many of
these risks on through their contracts with clients
currently the supply chain in sectors of the oil and gas
industry is exhibiting significant tightness of supply for key
resources like skilled staff and offshore vesselsthe group has
developed training recruitment and retention programmes to
endeavour to ensure that it can meet its staffing requirements
going forwardthere is a retention scheme for key personnel
the group monitors other areas of its supply chain frequently
and seeks to establish strategic relationships with key
suppliers to ensure security of supply
international operations create an exposure to foreign
currency and foreign tax risks which are where possible
mitigated through hedging in the supply chain and in
contractual terms with clients
in the past there have been challenges to the group’s freedom
to operate resulting from a competitor attempting to enforce
intellectual property rightsthe group invests in the top
quality legal advice in this area and constantly monitors the
patent landscape around its technologiest o date the group
has prevailed in these actions and there are no current
proceedings against any of the group’s companies although if
proceedings emerged which lead to adverse rulings in this
area there could be severe restrictions on its operations
the group’s companies carry out extensive data processing
operations which rely on large computer assets and complex
proprietary processing software interruptions in operations
of these computing resources could impact the group’s
earningsthe group seeks to distribute and back up its
computing assets to mitigate these risks
trading outlook 
the progressive adoption of our core csem technology 
by the exploration industry is leading us to change some 
of our business practices in the early phases of technology
adoption our customer base was a small number of
technology focused oil companies and we were able to 
focus on them with a small sales group as industry adoption
increases the number of client companies that we have to
address is growing significantly and we are expanding our 
sales force to cope with thist o boost further our sales
efforts we have entered into an alliance with cggveritas
a global provider of seismic services under this alliance we
have access to cggveritas’ global sales and marketing reach
together with a truly global logistics support network more
importantly we will access their long term relationships with
key clients including the prestigious national oil companies
that we anticipate as being significant clients for the future
following our fund raising during the year we are well
advanced with building the equipment and training the
personnel necessary to launch our third marine csem 
crew which we plan to bring into service at the start of the
north sea “season” in may 2008work is also scheduled 
to commence on the equipment for our fourth crew which
will follow a few months behind by which time we hope to 
be seeing tangible benefits from our cggveritas relationship
a number of companies have indicated a desire to enter 
the offshore electromagnetic market and we monitor this
situation closelywe believe that the time and cost to 
develop industrial instrumentation together with the rarity 
of experienced em practitioners represent extremely high
barriers to entry in addition our research and development
efforts continue to improve the quality of our offering
constantly raising the bar in industry requirementswhere
appropriate ohm applies for patent protection for this
differentiation and our awarded patent portfolio continues 
to grow
rock solid images’ traditional business area is seeing strong
demand for its servicesespecially the inversion of seismic data
w e are recruiting and training more staff in this area to meet
this demand our research on the integration of em data with
seismic and well log data is creating exciting opportunities and
we hope to see commercial products coming to market in this
area within our 2008 fiscal year leading to further growth at rsi
we seek in 2008 to continue the growth in revenues and
improvements in profitablilty achieved over the last two years
we are fortunate in having a dedicated team of professional
staff whose efforts have delivered our growth to date and
who are eagerly anticipating the challenges ahead
dave pratt
chief executive officer
19 november 2007
chief executive’s review continued 6 offshore hydrocarbon mapping plc
annual report 2007
continuing growth and expansion – 2007
ohm has seen significant and sustained growth 
and development on many fronts throughout the
last financial year
on a strategic level ohm formed an alliance with
cggveritas and acquired houstonbased rock solid images
in operations ohm completed its first subbasalt 
survey proving the technology in that geology the ohm
express vessel came into service and our proprietary and
multiclient csem survey acquisition operations continued
around the world
our industry leading research and development 
team continued to develop and widen the applications 
of our technology and investment in recruitment and
training programmes continued producing a good flow 
of qualified personnel
summer 2007
record number of successfully completed
client surveys in north west europe season
august 2006
first subbasalt survey
january 2007
bpdepartment for businessenterprise and
regulatory reformuosohm research
consortium launched
march 2007
first complex geology case study published
the leading edge
berr 7 offshore hydrocarbon mapping plc
annual report 2007
june 2007
publication of landmark bathymetric 
inversion research
august 2007
cggv eritas strategic alliance
may 2007
dr  lucy macgregor awarded seg
distinguished achievement award for
contribution to commercialisation of csem
july 2007
world’s first purpose converted csem 
survey vessel launched
august 2007
acquisition of rock solid images 8 offshore hydrocarbon mapping plc
annual report 2007
setting industry standards – ohm express
receiver deployment
dasi deployment area astern 
t oppre deployment –t oolbox t alk
operations room and receiver 
preparation area
experienced csem crew  9 offshore hydrocarbon mapping plc
annual report 2007
the introduction of the ohm express the world’s
first purpose designed and converted csem survey
vessel has set industry standards and enables more
efficient economic and safe survey operations
entering service in june 2007  the vessel offers clients
unmatched levels of operating range survey ability safety 
and speed of delivery of results
the ability to conduct safe operations in rough sea
conditions was integral to the design of the vessel crew 
and client representatives enjoy firstclass standards of
accommodation facilities and communication capabilities
ohm express specification in brief
bridge
conference room
engineering preparation area
principal dimensions
length 1 10m
beam 175m 
draught 55m
registry and classification
flag bahamian
classification dnv1a1
ice ceo 
eo dk  pwdk
capabilities
t ransit speed 15 knots
dynamic positioning kongsberg
endurance 7075 days
accommodation
cabin space 39 berths
cabin facilities ensuite
wifi enabled
satcom communication
voice sat bvsatgsm
fax sat bvsatgsm
data vsatgsm 10 offshore hydrocarbon mapping plc
annual report 2007
integration – rock solid images
rock solid images is the industry leader in the
application of rockphysics for integrating and
calibrating seismic and borehole data to provide
geologic insight and reservoir understanding at 
all stages of the oilfield lifecycle
ohm’s acquisition of the company is driven by the belief
that highly valuable information can be gained from the
intelligent combination of csem and seismic data calibrated
where possible by well log information
ohm and rock solid images’ researchers consider that
these two remote sensing measurements are completely
complimentary and when properly combined can lead to
quantitative measurement of important rock and fluid
properties such as permeability and hydrocarbon saturation
people
dedicated and experienced in rock physics 
quantitative interpretation services
world class inversion and rock physics
integration 
bringing together emseismic and well data 11 offshore hydrocarbon mapping plc
annual report 2007
experience
delivering results to complex problems
data library 
integrated rock physicsem and seismic 
model deliverables from around the world
t echnology
innovative research and software
software
imoss
®
– seismic modelling and rock physics
attrib3d
®
and lithann
® 12 offshore hydrocarbon mapping plc
annual report 2007
1 dr pierre jean marie henri jungels cbe 63
nonexecutive chairman
pierre a certified engineer has a phd in geophysics and
hydraulics from the california institute of t echnology he has
over 30 years’ experience in the oil industry 13 of which
have been served at main board level including appointments
as chief executive of enterprise oil plc and managing
director roles at petrofina and british gas he currently
holds nonexecutive directorships at woodside petroleum
ltd baker hughes inc and imperial t obacco plc together
with executive chairmanship of rockhopper exploration plc
and oxford catalyst plc he was twice president of the
institute of petroleum
2 david charles newall pratt 48
chief executive officer
dave has more than 25 years’ experience in the oilfield
service industry and was formerly president of veritas
geophysical services a division of veritas dgc inc a nyse
quoted company based in houston at veritas dave
reshaped key product lines within that company increasing
turnover in these areas to over us100 million and making 
a major contribution to the corporation’s profitability prior
to this role dave was vp of marine operations and
technology for digicon geophysical corporation later
merged with veritas previously dave spent over ten years
at racal survey group working in a variety of onshore and
offshore roles in numerous countries dave is a geophysicist
by training and has an mba with distinction from the
graduate school of business university of strathclyde
3 dr lucy margaret macgregor 35
chief scientific officer
lucy has over twelve years’ experience as a leading
researcher in csem and its application to the detection 
and characterisation of fluids in the earth and leads the
company’s research and development group lucy has
extensive experience in the development and application 
of data processing modelling and inversion techniques and
has been responsible for survey design and data
interpretation on commercial surveys in a wide variety of
geological environments lucy has a phd from the university
of cambridge for research in the field of csem
4 robert ian auckland 47
chief financial officer
bob was previously financial director and company
secretary of j w holdings ltd where he was for 12 years
bob has extensive experience in financial and general
management with a proven track record of integrating
acquisitions balance sheet management and building value
for shareholders through a period of change bob is a
chartered accountant having qualified with deloitte haskins
 sells and has a bcom degree from edinburgh university
5 gary ernest jones 53
nonexecutive director
gary has a bsc in geological engineering from the 
university of arizona and an msc in geophysics also from
the university of arizona he has over 20 years’ experience
in the oil and gas industry including recent appointments 
as president of westerngeco president of western
geophysicalvice president of baker hughes president 
of baker atlas and vice president corporate business
developmentwaii he is currently the owner of
earthworks inc a consulting company and is non 
executive chairman of arkex ltd
6 keith lough 48
nonexecutive director
keith has an ma in economics from edinburgh university
a masters in finance from london business school and is 
a fellow of the association of chartered certified
accountants he has over 20 years’ experience in the oil 
and gas and energy industries including recent appointments
as finance director british energy plc chief financial
officer hurricane hydrocarbons now petrokazakhstan
inc and md europe  north africa for lasmo plc he is
currently chief executive of composite energy ltd
a privateequity funded energy company
board of directors
1 2 4 5
36 13 offshore hydrocarbon mapping plc
annual report 2007
the directors present their report together with the
audited financial statements for the year ended 31 august
2007the remuneration report and the corporate
governance report on pages 16 to 20 have not been
subject to audit as these have been prepared voluntarily
principal activities and business review
the company’s principal activity is that of the provision 
of electromagnetic remote sensing services to the oil and
gas exploration and production industry
rdsp acquisition inc was acquired in the year and the
principal activity of the subsidiary is to provide data
technologies and expertise to maximise existing investment
in oil and natural gas well electromagnetic and seismic 
data by transforming qualitative interpretations into
quantitative results
the company and its subsidiaries contract with oil
companies internationally to conduct feasibility studies
plan and execute surveys and process and interpret the
resultant data
the chairman’s statement and the chief executive’s review
describe the significant developments in the business of the
group during the financial year and its future prospects
research and development
the company places the highest priority on investing in
research and development and continues to have a number
of key projects under way
results and dividends
the group made a loss after taxation for the year ended 
31 august 2007 of £1057 000 2006 loss of £1666000the
directors do not recommend the payment of a dividend
2006 nil
directors
the names of the directors who held office during the year
ended 31 august 2007 are as follows
executive directors
david charles newall pratt
dr lucy margaret macgregor
robert ian auckland
nonexecutive directors
dr pierre jean marie henri jungels cbe
gary ernest jones
keith lough 
landon clay also served as a nonexecutive director during
the year but resigned on 17 october 2006 jeffery scott
garner was appointed as a nonexecutive director on 
17 october 2006 but resigned on 23 september 2007
details of the interests of directors in the share capital of
the company together with details of share options and
awards granted to them are set out in the remuneration
report on pages 16 to 18
substantial shareholders
in addition to the directors’ beneficial interests shown on
page 17  as at 31 august 2007 the company had been advised
of the following shareholders with interests of 3 per cent or
more in its ordinary share capital
mr  landon t clay 
and associates 7 892419 1851
compagnie générale 
de géophysique – veritas sa 6395571 1500
southampton asset 
management ltd 3891580 913
fidelity international ltd 3154965 740
lehman brothers 
international europe 2043000 479
dr lucy m macgregor 1552300 364
professor martin sinha 1307 300 307
share capital
during the year the company raised £24376000 of cash
net of issue costs by placing 12587 496 ordinary shares 
of 1 pence each
net amount 
raised after 
number of issue price issue costs
shares issued pence £’000
29 november 2006 1500000 1250 1799
17 august 2007 6395571 2400 15349
17 august 2007 2765573 2750 7 228
between 1722 1926352
august 2007
12587496 24376
the 1926352 ordinary shares of 1 pence each which 
were issued between 1722 august 2007 were used as part
of the consideration for the acquisition of rdsp acquisition
inc further details of this acquisition are set out in note 27 
to the financial statements
financial instruments
details of the use of financial instruments by the company
and its subsidiary undertakings are contained in note 21
to the financial statements
cash
it is the group’s current policy to place cash which is
surplus to working capital requirements with reputable
banks offering the most competitive rates of interest
for the year ended 31 august 2007
directors’ report 14 offshore hydrocarbon mapping plc
annual report 2007
supplier payment policy
it is the group’s current policy to establish payment terms
with suppliers when agreeing terms of supply to ensure that
suppliers are made aware of the terms of payment and to
adhere to those termsthe total amount of group trade
creditors falling due within one year at 31 august 2007
represents 49 days worth as a proportion of the total
amount invoiced by suppliers during the year ended on 
that datethe company has no trade creditors
charitable and political donations
the group made no charitable donations during the year
2006 £nil and no political donations during the year 
2006 £nil
qualifying third party indemnity provisions
article 154 of the company’s articles of association contain
‘qualifying third party indemnity provisions’ as defined in
section 309b of the companies act 1985 under these
provisions each director and officer is entitled to be
indemnified by the company so far as permitted by law in
respect of certain liabilities which may attach to him in the
exercise of hisor her duties
the company maintains insurance to cover its directors and
officers including nonexecutive directors in the discharge 
of their duties against the loss and legal expenses incurred
by each insured person due to a wrongful actthis cover
provides for company reimbursement if the company pays
the loss and legal expenses arising from any wrongful act of
an insured personthe policy does not provide payment
where the director or officer has acted fraudulently
maliciously or dishonestly
post balance sheet event
on 17 september 2007  mr david pratt chief executive
officer exercised 457 267 share options
there were no other events between the balance sheet date
and the date the financial statements were authorised for
issue that require disclosure
going concern
after making enquiries the directors have formed a
judgement at the time of approving the financial statements
that there is a reasonable expectation that the group has
adequate resources to continue in operational existence 
for the foreseeable future for this reason the directors
continue to adopt a going concern basis in preparing the
financial statements
auditors
in the case of each of the persons who are directors of the
company at the date when the report was approved
• so far as each of the directors is aware there is no relevant
audit information as defined in the companies act 1985
of which the company’s auditors are unaware and
• each of the directors has taken all the steps that heshe
ought to have taken as a director to make himselfherself
aware of any relevant audit information to establish that
the company’s auditors are aware of that information
bdo stoy hayward llp have expressed its willingness to
continue in office as auditors and a resolution to reappoint
them will be proposed at the forthcoming annual general
meeting
by order of the board
bob auckland
company secretary
19 november 2007
directors’ report continued 15 offshore hydrocarbon mapping plc
annual report 2007
statement of directors’ responsibilities
the directors are responsible for keeping proper accounting
records which disclose with reasonable accuracy at any time
the financial position of the company for safeguarding the
assets of the company for taking reasonable steps for the
prevention and detection of fraud and other irregularities
and for the preparation of a directors’ report which
complies with the requirements of the companies act 1985
the directors are responsible for preparing the annual
report and the financial statements in accordance with the
companies act 1985the directors have chosen to prepare
financial statements for the group and the company in
accordance with international financial reporting standards
as adopted by the european union ifrss
international accounting standard 1 requires that financial
statements present fairly for each financial year the
company’s financial position financial performance and cash
flowsthis requires the faithful representation of the effects
of transactions other events and conditions in accordance
with the definitions and recognition criteria for assets
liabilities income and expenses set out in the international
accounting standards board’s ‘framework for the
preparation and presentation of financial statements’ in
virtually all circumstances a fair presentation will be achieved
by compliance with all applicable ifrss
a fair presentation also requires the directors to
• consistently select and apply appropriate accounting
policies
• present information including accounting policies
in a manner that provides relevant reliable comparable
and understandable information and
• provide additional disclosures when compliance with
the specific requirements in ifrss is insufficient to
enable users to understand the impact of particular
transactions other events and conditions on the entity’s
financial position and financial performance
financial statements are published on the group’s website in
accordance with legislation in the united kingdom governing
the preparation and dissemination of financial statements
which may vary from legislation in other jurisdictionsthe
maintenance and integrity of the group’s website is the
responsibility of the directorsthe directors’ responsibility
also extends to the ongoing integrity of the financial
statements contained therein 16 offshore hydrocarbon mapping plc
annual report 2007
for the year ended 31 august 2007
remuneration report
this report which has not been audited has been voluntarily
prepared so as to comply so far as the board considers
appropriate for a group of this size with the listing rules
the combined code and the companies act 1985 as
amended by the directors remuneration report
regulations 2002the company’s remuneration policy 
is the responsibility of the remuneration committee
the committee is chaired by gary jones and also comprises
keith loughthe committee is authorised to obtain
information and advice on remuneration at the company’s
expense
the committee has specific responsibility for determining
the remuneration and other benefits of executive directors
for overall policy in respect of remuneration of other
employees of the group and for establishing the group’s
policy with respect to employee share schemes in
determining executive remuneration packages of individual
directors the remuneration committee takes account of
the levels of experience performance and responsibility of
each director and the remuneration packages for similar
executive positions in companies it considers are
comparable it also considers the remuneration packages
offered within the group as a whole
remuneration policy
a executive remuneration
the committee aims to ensure that the remuneration 
of executive directors is competitive takes into account
individual performance and provides a package which is
sufficiently dependent on achievement to motivate and
incentivise the individual executive directors executive
remuneration currently comprises a base salary which is 
not performance related and a performance related bonus
scheme certain directors also have an entitlement to
private medical insurance and pension contributions to
individual personal pension schemesthe board believes 
that the interests of directors and shareholders are best
aligned with a remuneration policy that provides a modest
base salary that is not dependent on performance together
with a performance related bonus arrangement further
details relating to bonus arrangements and pension
contributions are detailed below
bonuses
executive directors are eligible to receive specific bonuses 
at the discretion of the remuneration committee such
payments do not form part of pensionable earnings
pensions
david pratt dr lucy macgregor and bob auckland are
entitled to an agreed proportion of annual salary which is
paid directly into personal money purchase pension plans
this contribution is £10720 for david pratt £5916 for 
dr lucy macgregor and £9067 for bob auckland
share options
the directors believe that the success of the company
depends to a high degree on the future performance of the
management team accordingly the company has entered
into option agreements with its executive directors and
certain key employees through the company’s approved
management incentive scheme and unapproved share option
scheme executive options are granted at the middle market
price of the company’s shares on the date of grant or in
respect of options granted before the company’s shares
were publicly traded at the directors’ best estimate of fair
value at the date of grant
share awards
the company has entered into share award agreements
with its executive directors and certain key employees
through the company’s share award planthe number of
share awards to be granted is calculated by taking an agreed
percentage of the employee’s salary and dividing this by the
average closing price of the company’s shares in the five
business days immediately before the date of grantthe
number of share awards that vest will be determined by 
the achievement of performance targets set by the
remuneration committee
b nonexecutive remuneration
dr pierre jungels keith lough and gary jones each receive
a fixed fee for services which covers preparation for and
attendance at meetings for the full board and all committees
thereof landon clay and jeffery garner who also served as
nonexecutive directors during the year received a fixed fee
for their servicesthe nonexecutive directors are also
reimbursed for all reasonable expenses incurred in the
performance of their duties nonexecutive directors are
not entitled to participate in any of the group’s incentive
schemes including the share option schemes share award
plans and bonus schemesthe executive directors are
responsible for setting the level of nonexecutive
remuneration
c service contracts
dave pratt has a service contract which commenced on 
8 july 2002 and contains a contractual notice period of one
year by either party dr lucy macgregor has a service
contract which commenced on 1 february 2003 and
contains a contractual notice period of one year by either
party bob auckland has a service contract which
commenced on 1 february 2006 and contains a contractual
notice period of six months by either partythe contracts
for executive directors do not provide any predetermined
amounts of compensation in the event of early termination
in the event of early termination payments for loss of office
would be determined by the remuneration committee who
would take account of the particular circumstances of each
case including the unexpired term of the service contract
executive directors may accept limited outside non
executive appointments directors’ emoluments unaudited
the following information has not been subject to audit
the aggregate remuneration received by directors who have served during the year was as follows
total t otal t otal
total incl excl incl
base excl pension pension pension pension
salary bonuses fees benefits pension pension 2007 2006 2006 2006
£ ££££££ £££
executive
david pratt 
1
170000 30000 – 1271 20 1271 10720 211991151084 9600 160684 
dr lucy macgregor 90667 10000 – 352 101019 5916 106935 80302 5220 85522 
bob auckland 90667 20000 – 1213 111880 9067 120947 45515 4523 50038 
non executive
dr pierre jungels 50000 – – –50000 –50000 50000 –50000 
landon clay
2
– – 644 – 644 – 644 5000 – 5000 
david norwood – –––––– 2217 – 2217 
jeffery garner
3
– – 5000 – 5000 – 5000 –––
keith lough 20000 – – –20000 –20000 20000 –20000 
gary jones 20000 – – –20000 –20000 20000 –20000 
t otal 441334 60000 5644 2836 509814 25703 535517 374118 19343 393461
1
david pratt was the highest paid director during the year ended 31 august 2007
2
landon clay resigned from the board on 17 october 2006
3
jeffery garner was appointed to the board on 17 october 2006 and resigned on 23 september 2007
directors’ interests in ordinary shares
the directors who held office at 31 august 2007 had the following interests in the ordinary shares of the company
2007 2006
number number 
of shares of shares
david pratt 255347 255347
dr lucy macgregor 1552300 1552300
bob auckland 17500 –
dr pierre jungels 167504 167504
jeffery garner 43953 –
keith lough 50000 50000
gary jones 44330 44330
on 17 september 2007 david pratt exercised 457 267 share options and on 19 september 2007 sold these along with the
255347 shares he already held to landon clay and his affiliated interests together the ‘clay affiliates’ on the same day 
dr lucy macgregor sold 712614 shares to the clay affiliates
there has been no other change in the interests set out above between 31 august 2007 and 19 november 2007
17 offshore hydrocarbon mapping plc
annual report 2007
remuneration report continued 18 offshore hydrocarbon mapping plc
annual report 2007
directors’ options and share awards unaudited
the following information has not been subject to audit
the executive directors have the following interests in options over the shares of the company under the group’s share
option scheme and share award plan
lapsed 
at granted exercised at exercise earliest
1 september during the during the 31 august price exercise expiry
2006 year year 2007 p date date
david pratt
281 102 457267 – – 457267 710 281 103 271 112
010304 940008 – – 940008 17000 010305 280214
010206 1 10016 – – 110016 100 010209 010216
011206 – 76252 – 76252 100 011209 011216
dr lucy macgregor
011203 21 1546 – 70515 141031 2981 011204 301 113
010206 58675 – – 58675 100 010209 010216
011206 – 40668 – 40668 100 011209 011216
bob auckland
010206 58675 – – 58675 100 010209 010216
011206 – 40668 – 40668 100 011209 011216
these options have been granted under
1 the company’s enterprise management incentive option scheme emi
2 unapproved share option scheme and 
3 share award plan
the option granted to david pratt on 28 november 2002 vested in three equal tranches on the first second and third
anniversaries of the date of grant as mentioned above david pratt exercised these 457 267 options on 17 september 2007
the options granted to david pratt on 1 march 2004 representing 3 per cent of the fully diluted issued share capital at
admission have vested in three tranches following the satisfaction of performance criteria agreed between david pratt 
and the remuneration committee
the options granted to dr lucy macgregor vest in three equal tranches upon the satisfaction of performance criteria
agreed between dr lucy macgregor and the remuneration committee
the share awards granted to david pratt dr lucy macgregor and bob auckland on 1 february 2006 under the company’s
share award plan vest on 1 february 2009 upon the satisfaction of performance criteria agreed with the remuneration
committee
options will lapse after ten years from the date of grant and option holders who cease to be employed by the group 
are required to exercise the vested part of their option within six months of cessation
the middle market price of the ordinary shares on 31 august 2007 was 27000 pencethe high and low market prices
during the year were 30000 pence and 8562 pence respectively
apart from the interests disclosed above none of the directors had any interest at any time during the year ended 
31 august 2007 in the share capital of the company or its subsidiaries
by order of the board
gary jones
chairman of the remuneration committee
19 november 2007
remuneration report continued 19 offshore hydrocarbon mapping plc
annual report 2007
for the year ended 31 august 2007
corporate governance report
the board supports the principles of corporate governance
contained in the combined code on corporate
governance issued in june 2006 by the financial reporting
councilthe company is moving towards voluntarily
applying the principles of the combined code as indicated
below
the board
the group’s business is managed by the board of directors
the full board meets regularly and met a total of six times
during the year ended 31 august 2007 meetings include
discussion of current and future performance and strategy
in addition terms of reference for full board approval are in
place which includes inter alia the approval of annual and
interim results significant transactions major capital
expenditures the yearly business plan and budget the
group’s long term commercial strategy establishing financial
authority limits litigation conflict of interest and share
dealing policies and executive remuneration and
appointments
each board member receives regular management accounts
including a review and analysis of performance against
budget and other forecasts directors are sent an agenda
and a full set of board papers for each agenda item to be
discussed at the meeting additional information is provided
as appropriate
the board currently consists of six directors three of whom
are nonexecutivetheir names are set out on page 12
the company has a separate chief executive officer and
chairman dr pierre jungels gary jones and keith lough
are considered by the board to be free from any business 
or other relationship that could materially impact their
independent judgementthe nonexecutive directors receive
a fixed fee for their services and all nonexecutive directors
receive reimbursement of reasonable expenses incurred in
attending meetings
there is an agreed procedure for directors to take
independent professional advice at the company’s expense
the company secretary is responsible for ensuring that
board procedures and applicable rules and regulations 
are followed
the chairman ensures that new directors receive a full
formal and tailored induction on joining the board as 
part of this induction the company would offer major
shareholders the opportunity to meet a new nonexecutive
director
whilst the board retains overall responsibility for the
company the day to day management of the business 
is conducted by the executive directors in addition in
accordance with best practice the board has established
audit nomination and remuneration committees with
written terms of reference for each that set out their 
duties and authority
committees of the board
audit committee
the audit committee meets as and when required
the members of the committee comprise keith lough
chairman gary jones and dr pierre jungels as noted
above all three directors are considered to be independent
nonexecutive directorsthe committee’s terms of
reference are principally concerned with accounting matters
financial reporting and internal controlsthe committee
meets to review all significant judgments made in the
preparation of the halfyearly and annual accounts before
they are submitted to the board it agrees with the auditors
the nature and scope of their work and discusses with them
the result thereofthe committee has the power to seek
external advice as and when required in addition the audit
committee makes recommendations to the board regarding
the appointment of the external auditors reviews their
independence and objectivity and is also responsible for
agreeing the level of audit fees and monitoring the provision
of non audit services provided by the group’s auditors
members of the audit committee make themselves
available so that staff of the company may in confidence
raise concerns about possible financial improprieties or
other matters of concernthe audit committee has
arrangements in place for the proportionate and
independent investigation of such matters and for
appropriate follow up action
remuneration committee
the remuneration committee meets as and when required
it comprises gary jones chairman keith lough and 
dr pierre jungels as noted above all three directors are
considered to be independent nonexecutive directorsthe
committee’s objective is to develop remuneration packages
for executive directors that enable the group to attract
retain and motivate executives of the appropriate calibre
without paying more than necessary no director is involved
in deciding his or her remunerationthe board’s policy 
on executive remuneration and the details of executive
director’s individual remuneration packages are fixed by 
the committee or the board full details of the directors’
remuneration are set out in the remuneration report 
on pages 16 to 18
nomination committee
the nomination committee meets as and when required
it considers the appointment of both executive and non
executive directors and makes recommendations to the
board it comprises dr pierre jungels chairman keith
lough and gary jones and as noted above all three
directors are considered to be independent nonexecutive
directors all directors are required to submit themselves
for reelection by the shareholders at the company’s annual
general meeting following their first appointment and
thereafter at least every three years notwithstanding this
at least one third of all directors must submit themselves 
for reelection each year at the forthcoming annual
general meeting dr lucy macgregor and david pratt will
submit themselves for reelection having either retired by
rotation or having been appointed since the last annual
general meeting
the terms of reference of the committees of the board
explaining their respective roles and the authority 
delegated to them by the board are available on the
company’s website
board balance and independence 
during the year and up to the date of this report the board
continued to be of the opinion that dr pierre jungels keith
lough and gary jones were independent within the meaning
of the code on 28 march 2007  dr pierre jungels was
appointed as the senior independent director and carried
out this role up to the date of this report 20 offshore hydrocarbon mapping plc
annual report 2007
the independent nonexecutive directors review and
monitor strategy the performance of management the
integrity of financial information and control and risk
managementthrough the remuneration and nomination
committee they are also responsible for setting the
remuneration of the executive directors and of senior
executives below board level and for planning board 
and senior management succession
the following table sets out the number of board and
committee meetings held during the year and the directors’
attendance at each
audit remuneration nomination
board committee committee committee
executive
david pratt
chief executive officer 6 2 2 1
dr lucy macgregor
chief scientific officer 5 – – –
bob auckland
chief financial officer 6 2 2 1
nonexecutive
dr pierre jungels
nonexecutive chairman 6 2 2 1
keith lough 5 2 2 1
gary jones 6 2 2 1
former directors
landon clay 1 – – –
jeffery garner 5 – – –
t otal number 
of meetings 6 2 2 1
internal control
the board is responsible for establishing and monitoring
internal control systems and for reviewing the effectiveness
of these systemsthe board views effective operation of a
rigorous system of internal control as critical to the success
of the group however it recognises that such systems can
provide only reasonable and not absolute assurance against
material misstatement or lossthe key elements of the
group’s internal control systems are as follows
control environment
the group has a clear organisational structure with defined
responsibilities and accountabilities it adopts the highest
values surrounding quality integrity and ethics and these
values are documented and communicated clearly
throughout the whole organisation
identification and evaluation of risks
the board actively identifies and evaluates the risks inherent
in the business and ensures that appropriate controls and
procedures are in place to manage these risks
health safety and the environment
the board receives reports from david pratt who is
chairman of the company’s hse committeet wo other
executive directors dr lucy macgregor and bob auckland
also sit on this committeethe company believes that it
best serves its stakeholders by ensuring that its activities are
carried out in a safe and environmentally sensitive manner
control procedures 
detailed written policies and procedures have been
established covering key financial operating and compliance
risk areasthese will be reviewed and updated at least
annually by the board due to the nature of the group’s
operations and its size the board considers that there is no
current requirement for an internal audit function although
it will continue to review the requirement for such a
function on a periodic basis
auditor independence
the audit committee reviews the nature and extent of the
services provided to the group by bdo stoy hayward llp
and are satisfied with the independence of the group’s
auditors
performance evaluation
the performance of the chairman and each director will be
formally evaluated on an annual basisthe nonexecutive
directors will meet annually and whenever deemed
necessary to appraise the chairman’s performance in the
absence of the chairmanthe performance of nonexecutive
directors other than the chairman will be reviewed by the
chairman and the executive directorsthe performance of
the executive directors will be reviewed by the board as
deemed necessary in the absence of the executive director
under review
relations with shareholders
the company is committed to constructive dialogue with 
its shareholdersthe company uses the annual general
meeting as an opportunity to communicate with its
shareholders notice of the annual general meeting which
will be held at 1200noon on 19 december 2007 at the office
of kbc peel hunt ltd 1 1 1 old broad street london ec2n
1ph is enclosed with this report details of the resolutions
and explanatory notes thereon are included with the notice
along with a proxy form for members of the company
unable to attend
the chairman who is also the senior independent
company director meets with major shareholders during
the year to develop an understanding of their views about
the company
the group’s website wwwohmsurveyscom is the primary
source of information on the groupthis includes an
overview of the activities of the group and details of all
recent group announcements
statement of compliance
the directors are satisfied that the company is now
voluntarily complying so far as the board considers
appropriate for a group of this size with the code
provisions set out in section 1 of the combined code 
on corporate governance issued in june 2006 by the
financial reporting council
by order of the board
bob auckland
company secretary
19 november 2007
corporate governance report continued 21 offshore hydrocarbon mapping plc
annual report 2007
to the shareholders of offshore hydrocarbon
mapping plc
we have audited the group and parent company financial
statements the “financial statements” of offshore
hydrocarbon mapping plc for the year ended 31 august
2007 which comprise the consolidated income statement
the consolidated and company balance sheets the
consolidated cashflow statement the consolidated and
company statements of changes in shareholders’ equity
and the related notesthese financial statements have been
prepared under the accounting policies set out therein
respective responsibilities of directors and
auditors
the directors responsibilities for preparing the annual
report and the financial statements in accordance with
applicable law and international financial reporting
standards ifrss as adopted by the european union are 
set out in the statement of directors responsibilities
our responsibility is to audit the financial statements in
accordance with relevant legal and regulatory requirements
and international standards on auditing uk and ireland
we report to you our opinion as to whether the financial
statements give a true and fair view and have been properly
prepared in accordance with the companies act 1985 and
whether the information given in the directors’ report is
consistent with those financial statementswe also report 
to you if in our opinion the company has not kept proper
accounting records if we have not received all the
information and explanations we require for our audit
or if information specified by law regarding directors’
remuneration and other transactions is not disclosed
we read other information contained in the annual report
and consider whether it is consistent with the audited
financial statementsthe other information comprises 
only the directors’ report chairman’s statement
chief executive’s review remuneration report and the
corporate governance reportwe consider the
implications for our report if we become aware of any
apparent misstatements or material inconsistencies with 
the financial statements our responsibilities do not extend
to any other information
our report has been prepared pursuant to the
requirements of the companies act 1985 and for no other
purpose no person is entitled to rely on this report unless
such a person is a person entitled to rely upon this report
by virtue of and for the purpose of the companies act 1985
or has been expressly authorised to do so by our prior
written consent save as above we do not accept
responsibility for this report to any other person or for any
other purpose and we hereby expressly disclaim any and all
such liability
basis of audit opinion
we conducted our audit in accordance with international
standards on auditing uk and ireland issued by the
auditing practices board an audit includes examination
on a test basis of evidence relevant to the amounts and
disclosures in the financial statements it also includes an
assessment of the significant estimates and judgments 
made by the directors in the preparation of the financial
statements and of whether the accounting policies are
appropriate to the group’s and company’s circumstances
consistently applied and adequately disclosed
we planned and performed our audit so as to obtain all 
the information and explanations which we considered
necessary in order to provide us with sufficient evidence 
to give reasonable assurance that the financial statements
are free from material misstatement whether caused by
fraud or other irregularity or error in forming our opinion
we also evaluated the overall adequacy of the presentation
of information in the financial statements
opinion
in our opinion
• the group financial statements give a true and fair view
in accordance with ifrss as adopted by the european
union of the state of the group’s affairs as at 31 august
2007 and of its loss for the year then ended
• the parent company financial statements give a true 
and fair view in accordance with ifrss as adopted by
the european union as applied in accordance with the
provisions of the companies act 1985 of the state of
the parent company’s affairs as at 31 august 2007
• the financial statements have been properly prepared 
in accordance with the companies act 1985 and
• the information given in the directors’ report is
consistent with the financial statements
bdo stoy hayward llp
chartered accountants and registered auditors
glasgow
19 november 2007
independent auditors’ report 2007 2006
note £’000 £’000
revenue 17731 10422 
cost of sales 14790 9059 
gross profit 2941 1363 
administrative expenses 4037 2808 
other expenses – loss on disposal of fixed assets 47 301
group operating loss 5 1143 1746
finance income 8 154 168 
finance costs 9 9 –
loss before taxation 998 1578
income tax expense 10 59 88
loss for the period 1057 1666
lossearnings per ordinary share 11
basic 335p 554p
diluted 335p 554p
all amounts relate to continuing activities
22 offshore hydrocarbon mapping plc
annual report 2007
for the year ended 3 1 august 2007
consolidated group income statement  23 offshore hydrocarbon mapping plc
annual report 2007
2007 2006
note £’000 £’000
assets
noncurrent assets
goodwill 13 10229 –
intangible assets – multiclient data library 14 2241 798 
– software 14 2089 147 
– patent costs 14 746 176 
– consortium fees 14 152 – 
5228 1121
plant and equipment 15 2435 2791
17892 3912 
current assets
inventories 17 634 152 
t rade and other receivables 18 4682 2216 
cash and cash equivalents 19 18968 3439 
24284 5807 
total assets 42176 971 9 
liabilities
current liabilities
t rade and other payables 20 5196 2498 
current tax liabilities 102 60 
finance leases 24 73 – 
5371 2558 
non current liabilities
deferred tax liabilities 23 717 – 
finance leases 24 42 – 
other liabilities 22 89 – 
848 – 
total liabilities 6219 2558 
net assets 35957 7 1 61
equity
share capital 26 426 300 
share premium 36447 12178 
share based payments reserve 848 496 
merger reserve 5355 – 
retained earnings 6905 5813
cumulative translation reserve 214 – 
total shareholders’ equity 35957 7 1 61
the financial statements were approved by the board of directors and authorised for issue on 19 november 2007 
and are signed on its behalf by
d c n pratt r i auckland
director director
at 3 1 august 2007
consolidated group balance sheet  24 offshore hydrocarbon mapping plc
annual report 2007
2007 2006
note £’000 £’000
assets
noncurrent assets
fixed assets investments 16 5780 1
5780 1
current assets
t rade and other receivables 18 36443 12577 
36443 12577 
total assets 42223 12578 
liabilities
current liabilities
t rade and other payables 20 41 – 
net assets 42182 12578 
equity
share capital 26 426 300 
share premium 36447 12178 
merger reserve 5355 –
retained earnings 46 100
total shareholders’ equity 42182 12578 
the financial statements were approved by the board of directors and authorised for issue on 19 november 2007 
and are signed on its behalf by
d c n pratt r i auckland
director director
at 3 1 august 2007
company balance sheet  25 offshore hydrocarbon mapping plc
annual report 2007
2007 2006
note £’000 £’000
cash flows from operating activities
loss before taxation 998 1578
adjustments for
depreciation of plant and equipment 5 1437 1624 
amortisation of intangible fixed assets 14 45 6 
share based payments charge 29 352 246 
multiclient data library transfer from balance sheet 14 812 – 
loss on disposal of plant and equipment 47 301
financial income 8 154 168
operating profit before changes in working capital and provisions 1541 431
increasedecrease in inventories 482 42 
increase in trade and other receivables 1587 1100
increase in trade and other payables 509 865 
cash generated from operations 19 238
foreign taxes paid 10 59 88
net cash flows from operating activities 78 150 
cash flows from investing activities
payments to acquire multiclient data library 14 1528 406
payments to acquire software 14 125 152
payments to acquire patents 14 150 70
purchase of plant and equipment 15 753 709
proceeds from sale of plant and equipment 3 81
net cash outflow on acquisition of subsidiary 27 6402 –
interest received 154 188 
net cash used in investing activities 8801 1068
cash flows from financing activities
proceeds from issue of ordinary share capital 26 24830 – 
share issue expenses 454 – 
purchase of own shares 35 – 
net cash from financing activities 24341 – 
net increasedecrease in cash and cash equivalents 15462 918
opening cash and cash equivalents 3439 4357 
effect of foreign exchange rate changes 67 – 
closing cash and cash equivalents 19 18968 3439 
the company had no cash flows during the year or in 2006 and consequently no cashflow statement for the company has
been presentedthere are no cash movments relating to share issues investments and inter company loans
for year ended 3 1 august 2007
consolidated group cashflow statement attributable to equity holders of the parent company
share based
share share payments merger retained t ranslation t otal 
capital premium reserve reserve earnings reserve equity
group £’000 £’000 £’000 £’000 £’000 £’000 £’000
at 1 september 2005 300 12178 250 – 4147 – 8581
loss for the year – – – – 1666 – 1666
share based payments – – 246 – – – 246
at 31 august 2006 300 12178 496 – 5813 – 7 161
foreign currency translation – – – – – 214 214
difference arising on 
consolidation of subsidiaries
loss for the year – – – – 1057 – 1057
t otal recognised income –––– 1057 214 1271
and expense for the year
share based payments charge – – 352 – – – 352 
other adjustments – – – – 35 – 35
share placing 126 24723 – 5355 – – 30204 
share issue costs – 454 – – – – 454
at 31 august 2007 426 36447 848 5355 6905 214 35957
the charge to the share based payments reserve represents the fair value of the shares to be awarded under the group’s
share option plans and share award and annual bonus plans corresponding amounts are included in the loss for the
relevant periods with the consequence that the company’s accounting for share based payments has no net impact on 
total equity
the share based payments reserve comprises the credit entry relating to share based charges included in the income
statement and calculated in accordance with ifrs 2
the merger reserve represents the excess of the fair value of the shares issued over their nominal value which is recorded
when shares are issued in exchange for shares to effect an investment in an undertaking
retained earnings comprise net gains and losses recognised in the income statement
the t ranslation reserve comprises gains and losses rising on the translation of net assets of overseas operations
26 offshore hydrocarbon mapping plc
annual report 2007
for year ended 3 1 august 2007
group statement of changes in equity  27 offshore hydrocarbon mapping plc
annual report 2007
for year ended 3 1 august 2007
company statement of changes in equity 
attributable to equity holders of the parent company
share share merger retained t otal 
capital premium reserve earnings equity
company £’000 £’000 £’000 £’000 £’000
at 31 august 2005 and 2006 300 12178 – 100 12578
loss for the year – – – 146 146 
t otal recognised income and expense – – – 146 146
for the year
share placing 126 24723 5355 – 30204 
share issue costs – 454 – – 454
at 31 august 2007 426 36447 5355 46 42182
refer to the previous page for a description of the reserves 1 general information
offshore hydrocarbon mapping plc is a company incorporated in england and wales under the companies act 1985
the nature of the group’s operations and its principal activities are set out in the directors’ report
these financial statements are prepared in pounds sterling because that is the currency of the primary economic
environment in which the group operates foreign operations are included in accordance with the policies set out in note 2
on transition to international financial reporting standards ifrs an entity is generally required to apply ifrs
retrospectively except where exemption is available under ifrs 1the group has elected to apply ifrs 2 “share based
payments” to all share option and share awards grants made after 7 november 2002 but not vested at 1 september 2005
future accounting developments
certain new standards amendments to new standards and interpretations have been published that are mandatory to the
group’s future accounting period but have not been adopted early in these financial statementsthese are set out below
standards amendments to standards and interpretations endorsed for use by the european union and available for adoption
title implementation anticipated effect on the group
ifrs 7 financial instruments annual periods beginning on additional disclosures only
disclosures or after 1 january 2007
amendment to ias 1 – annual periods beginning on additional disclosures only
capital disclosures or after 1 january 2007
ifric 10 interim financial reporting annual periods beginning on none
and impairment or after 1 november 2006
ifric 1 1 ifrs 2 – group and t reasury annual periods beginning on where the company grants equity settled
share t ransactions or after 1 march 2007 share options and awards to employees 
of subsidiaries then the share based 
payment is treated as an additional 
investment in the subsidiary undertakings
standards amendments to standards and interpretations not currently endorsed for use by the european union and not yet available
for adoption
title implementation anticipated effect on the group
amendment to ias1 presentation annual periods beginning on changes to the presentation 
of financial statements – or after 1 january 2009 of the primary statements
a revised presentation
amendment to ias 23 annual periods beginning on none
borrowing costs or after 1 january 2009
ifrs 8 operating segments annual periods beginning on additional disclosures only
or after 1 january 2009
ifric 12 service concession annual periods beginning on unlikely to have a material effect
arrangements or after 1 january 2008
ifric 13 customer loyalty annual periods beginning on none
programmes or after 1 july 2008
ifric 14 ias 19 – the limit on a annual periods beginning on none
defined benefit asset minimum funding or after 1 january 2008
requirements and their interaction
the directors anticipate that the adoption of these standards and interpretations in future periods will have no material impact
on the financial statements of the group except for additional disclosures when the relevant standards come into effect
2 significant accounting policies
basis of accounting
the financial statements have been prepared under the historical cost convention in accordance with ifrs for the first time
the disclosures required by ifrs 1 concerning the transition from uk gaap to ifrss are given in note 33the financial
statements have also been prepared in accordance with ifrs adopted for use in the european union
28 offshore hydrocarbon mapping plc
annual report 2007
for the year to 3 1 august 2007
notes forming part of the financial statements 29 offshore hydrocarbon mapping plc
annual report 2007
notes forming part of the financial statements continued
2 significant accounting policies – continued
basis of consolidation
the consolidated financial statements incorporate the financial statements of the company and entities controlled by the
company its subsidiaries made up to 31 august 2007 each year control is achieved where the company has the power 
to govern the financial and operating policies of an investee entity so as to obtain benefits from its activities
the results of subsidiaries acquired in the year are included in the consolidated income statement from the effective date
of acquisition
where necessary adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into
line with those used by the group
all intragroup transactions balances income and expenses are eliminated on consolidation
business combinations
the acquisition of subsidiaries is accounted for using the purchase methodthe cost of the acquisition is measured at the
aggregate of the fair values at the date of exchange of assets given liabilities incurred or assumed and equity instruments
issued by the group in exchange for control of the acquiree plus any costs directly attributable to the business
combinationthe acquiree’s identifiable assets liabilities and contingent liabilities that meet the conditions for recognition
under ifrs 3 are recognised at their fair value at the acquisition date except for noncurrent assets or disposal groups
that are classified as held for resale in accordance with ifrs 5 non current assets held for sale and discontinued
operations which are recognised and measured at fair value less costs to sell
goodwill arising on acquisition is recognised as an asset and initially measured at cost being the excess of the cost of the
business combination over the groups’ interest in the net fair value of the identifiable assets liabilities and contingent
liabilities recognised if after reassessment the group’s interest exceeds the cost of the business combination the excess is
recognised immediately in the income statement
goodwill
goodwill arising on consolidation represents the excess of the cost of acquisition over the group’s interest in the fair value
of the identifiable assets and liabilities of a subsidiary associate or jointly controlled entity at the date of acquisition
goodwill is initially recognised as an asset at cost and is subsequently measured at cost less any accumulated impairment
losses goodwill which is recognised as an asset is reviewed for impairment at least annually any impairment is recognised
immediately in the income statement and is not subsequently reversed
for the purpose of impairment testing goodwill is allocated to each of the group’s cashgenerating units expected to benefit
from the synergies of the combination cash generating units to which goodwill has been allocated are tested for impairment
annually or more frequently when there is an indication that the unit may be impaired if the recoverable amount of the cash
generating unit is less that the carrying amount of the unit the impairment loss is allocated first to reduce the carrying
amount bf of any goodwill allocated to the unit and then to the other assets of the unit prorata on the basis of the carrying
amount of each asset in the unit an impairment loss recognised for goodwill is not reversed in a subsequent period
on disposal of a subsidiary associate or jointly controlled entity the attributable amount of goodwill is included in the
determination of the profit or loss on disposal
revenue recognition
revenue represents sales in respect of the provision of oil exploration services to external customers at invoiced amounts 
less value added tax or local taxes on sales revenue is recognised in line with the performance of these servicesto the extent
that the performance entitles the group to receive consideration in line with the terms of the service contracts under which
the group operates included within revenue are amounts in respect of data acquisition offshoredata modelling and data
interpretation services provided to external customers reimbursable expenses billed to customers are included in revenue
research and development
expenditure on pure and applied research is charged as an expense in the year in which it is incurred development costs
which are expected to generate probable future economic benefits are capitalised in accordance with ias 38 “intangible
assets” and amortised on a straight line basis over their useful economic lives all other development expenditure is
charged to the income statement
under ias 38 an internallygenerated intangible asset arising from the groups’ product development is recognised only 
if all of the following conditions are met
• the technical feasibility of completing the intangible asset so that it will be available for sale
• its intention to complete the intangible asset
• its ability to use or sell the intangible asset
• it is probable that the asset created will generate future economic benefits
• the availability of adequate technical financial and other resources to complete the development and to use or sell the
intangible asset and
• the development cost of the asset can be measured reliably 2 significant accounting policies – continued
financial instruments
financial assets and financial liabilities are recognised in the group’s balance sheet when the group becomes a party to 
the contractual provisions of the instrument
t rade receivables 
t rade receivables are measured at fair value with appropriate allowances for estimated irrecoverable amounts
recognised in the income statement all amounts are subsequently valued at amortised cost using the effective interest
method
cash and cash equivalents 
cash and cash equivalents comprise cash in hand and demand deposits and other shortterm highly liquid investments
that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value
bank borrowings 
interestbearing loans and overdrafts are initially recognised at fair value and subsequently at amortised cost finance
charges including premiums payable on settlement or redemption and direct issue costs are accounted for on an
accruals basis in the income statement using the effective interest method and are added to the carrying amount of the
instrument to the extent that they are not settled in the period in which they arisethe group does not capitalise any
interest with respect to borrowings
loans and receivables
loans made from the parent company to its subsidiaries are initially recognised at fair value and are subsequently stated 
at amortised cost using the effective interest methodwhere the fair value of such loans is less than the loan amount the
difference is treated as an increase in the investment in that subsidiary
t rade payables 
t rade payables are initially measured at fair value all amounts are subsequently valued at amortised cost using the
effective interest method
equity instruments 
equity instruments issued by the group are recorded at the proceeds received net of direct issue costs
leasing
leases are classified as finance leases whenever the terms of the lease transfer substantially all the risk and rewards 
of ownership to the lessee all the other leases are classified as operating leases
assets held under finance leases are recognised as assets of the group at their fair value or if lower at the present value 
of the minimum lease payments each determined at the inception of the leasethe corresponding liability to the lessor is
included in the balance sheet as a finance lease obligation lease payments are apportioned between finance charges and
reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability finance
charges are charged directly against income
rentals payable under operating leases are charged to income on a straightline basis over the term of the relevant lease
foreign currencies
in preparing the financial statements of the individual companies that comprise the group transactions in currencies other
than the entity’s functional currency are recorded at the rates of exchange prevailing on the date of the transactions at
each balance sheet date monetary assets and liabilities that are denominated in foreign currencies are retranslated at the
rates prevailing on the balance sheet date nonmonetary items carried at fair value that are denominated in foreign
currencies are translated at the rates prevailing at the date when the fair value is determined nonmonetary items that 
are measured in terms of historical cost in a foreign currency are not retranslated
on consolidation income statements of foreign operations are translated into sterling at monthly average rates which
approximate to the actual rate for the relevant accounting periods assets and liabilities are translated at exchange rates
ruling at the balance sheet date exchange differences on all balances except foreign currency loans accounted for as net
investment hedges are taken to the income statement exchange differences arising on consolidation of the net investments
in overseas subsidiaries and joint ventures together with those on foreign currency loans accounted for as net investment
hedges are taken to equity an intragroup monetary item for which settlement is neither planned nor likely in the
foreseeable future is in substance a part of the group’s net investment in the foreign operation exchange differences arising
on a monetary item that forms part of the group’s net investment in a foreign operation recognised in a separate
component of equity
investments
the parent company’s investments in subsidiary undertakings are stated at cost
30 offshore hydrocarbon mapping plc
annual report 2007
notes forming part of the financial statements continued 31 offshore hydrocarbon mapping plc
annual report 2007
notes forming part of the financial statements continued
2 significant accounting policies – continued
depreciation
depreciation is provided to write off the cost less estimated residual values of all tangible fixed assets except for assets 
in the course of construction over their expected useful lives it is calculated at the following rates
plant and machinery – one to eight years straight line
computer equipment – 20 to 50 straight line
office equipment – 143 to 100 straight line
impairment of fixed assets
the need for any fixed asset impairment writedown is assessed by comparison of the carrying value of the asset against the
higher of realisable value and value in use
intangible assets
patent costs 
costs of obtaining patents are capitalised and amortised on a straight line basis over their useful life from the date they
are awarded which ranges from ten to seventeen years
software developed internally 
software developed internally is capitalised and amortised on a straight line basis over its useful life which ranges from
two to ten years
multiclient data library
the cost of collecting and processing electromagnetic and seismic data for onward licensing to clients on a nonexclusive
basis is capitalised and held in the balance sheet as an intangible assetthe carrying cost of the electromagnetic data is
held on an identified prospect basis with the costs being reduced as sales occur or if insufficient sales are realised
amortised on a straight line basis over a period of three years starting in the first month of the next half year following
completion of the data library productthe carrying cost of seismic data is amortised on a straight line basis over a
period of five years all sales of information from the library attract a cost based on regular review of operating margins
stocks and long term contracts
stocks of spare parts and consumables are carried at the lower of cost or net realisable value
longterm contracts are assessed on a contract by contract basis and are reflected in the income statement by recording
revenue and related costs as contract activity progresseswhere the outcome of each longterm contract can be assessed
with reasonable certainty before its conclusion the attributable profit is recognised in the income statement as the
difference between the reported revenue and related costs for that contract as soon as a contract is expected to be 
loss making overall all future contract losses are provided for in the period
t axation
the tax expense represents the sum of the tax currently payable and deferred tax
the tax currently payable is based on taxable profit for the yearthe group’s liability for current tax is calculated using 
rates that have been enacted or substantively enacted by the balance sheet date
deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets 
and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profits and 
is accounted for using the balance sheet liability method deferred tax liabilities are generally recognised for all taxable
temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be
available against which deductible temporary differences can be utilised such assets and liabilities are not recognised if the
temporary difference arises from the initial recognition of goodwill or from the initial recognition other than in a business
combination of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit
deferred tax liabilities are recognised for taxable temporary differences arising on investment in subsidiaries except where
the group is able to control the reversal of the temporary difference and it is probable that the temporary difference will
not reverse in the foreseeable future
the carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is 
no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered
deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is
realised deferred tax is charged or credited in the income statement except when it relates to items charged or credited
directly to equity in which case the deferred tax is also dealt with in equity
deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against
current tax liabilities and when they relate to income taxes levied by the same taxation authority and the group intends 
to settle its current tax assets and liabilities on a net basis 2 significant accounting policies – continued
retirement benefit costs
payments to defined contribution retirement benefit schemes are charged as an expense as they fall duethe group has no
defined benefit retirement schemes
sharebased payments
the group has applied the requirements of ifrs 2 “share based payments” in accordance with the transitional provisions
ifrs 2 has been applied to all grants of equity instruments after 7 november 2002 that were vested at 1 september 2005
the group operates a number of equitysettled sharebased payment schemes under which shares are issued to certain
employeesthe fair value determined at the grant date of the equitysettled sharebased payment is expensed on a straight
line basis over the vesting period for schemes with only market based performance conditions those conditions are taken
into account in arriving at the fair value at grant date accordingly no subsequent adjustment to the amortised fair value is
made for achievement or otherwise of those conditions for schemes that include nonmarket based conditions or no
conditions a “trueup” model is applied to the expense at each reporting date based on the expected number of shares that
will eventually vest
3 critical accounting judgements and key sources of estimation uncertainty
the group issues equitysettled sharebased payments to certain employeesthe payments are measured at fair value
excluding the effect of non marketbased vesting conditions at the date of grantthe fair value is calculated using the
option pricing models and is expensed on a straightline basis over the vesting period of the options and awards
the preparation of the financial statements requires the use of estimates and assumptions that affect the reported amounts
of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the
year although these estimates are based on management’s best knowledge of the amount event or actions actual results
ultimately may differ from those estimateswhere significant estimates or assumptions have been applied in estimating
balances in the financial statements these have been disclosed in the relevant notes to those balances significant judgements
and estimates in these financial statements have been made with regard to taxation note 10 the fair value valuation of 
the acquisition of a subsidiary note 27 share based payments note 29 and the useful life of intangible and tangible assets
notes 14 and 15 an explanation of key uncertainties or assumptions used by management in accounting for these items 
is explained where material in the respective notes
impairment of goodwill
the group is required to test on an annual basis whether goodwill has suffered any impairmentthe recoverable amount is
determined based on value use calculationsthe use of this method requires the estimation of future cash flows and the
choice of a discount rate in order to calculate the present value of the cash flows actual outcomes may vary more
information including carrying value is included in note 27
useful lives of intangible assets and property plant and equipment
intangible assets and property plant and equipment are amortised or depreciated over their useful lives useful lives are
based on the management’s estimates of the period that the assets will generate revenue which are periodically reviewed
for continued appropriateness changes to estimates can result in significant variations in the carrying value and amounts
charged to the consolidated income statement in specific periods more details including carrying values is included in notes
14 15 and 27
fair value of financial instruments
the group determines the fair value of financial instruments that are not quoted based on estimates using present values
or other valuation techniquesthose techniques are significantly affected by the assumptions used including discount rates
and estimates of future cash flowswhere market prices are not readily available fair value is either based on estimates
obtained from independent experts or quoted market prices of compariable instruments in that regard the derived fair
value estimates cannot be substantiated by comparison with independent markets and in many cases may not be capable 
of being realised immediately
share based payments
the group has two types of equitysettled sharebased remuneration schemes for employees employee services received
and corresponding increase in equity are measured by reference to the fair value of the equity instruments at the date of
grant excluding the impact of any nonmarket vesting conditionsthe fair value of share options is share options is
estimated by using valuation models such as blackscholes and binominal lattice on the date of grant based on certain
assumptionsthose assumptions are described in note 29 and include among others the dividend growth rate expected
volatility expected life of the options and number expected to vest more details including carrying value is disclosed in 
note 29
determination of fair values of intangible assets acquired in business combinations
the fair value of multiclient data library patents and consortium fees acquired in a business combination is based on the
discounted estimated cash flows expected to be derived from the use an eventual andor eventual sale of the asset
32 offshore hydrocarbon mapping plc
annual report 2007
notes forming part of the financial statements continued 33 offshore hydrocarbon mapping plc
annual report 2007
notes forming part of the financial statements continued
4 business and geographical segments
a business segment is a group of assets and operations engaged in providing products or services that are subject to risks
and returns which are different from those of other business segments at 31 august 2007 the group is organised into two
reportable business segments – controlled source electromagnetic csem business and well and surface seismic business
controlled source electromagnetic csem 
the group adds value by providing interpretations of data which lowers the client’s risk of unsuccessful offshore
exploration controlled source electromagnetic csem surveying detects the presence and extent of hydrocarbon
accumulations before drillingthe group has not divided financial information for its csem activities into further different
segments as it offers only one csem product range to its clients who are international and state owned oil companies
the risk and profitability of the group’s operations is similar in different geographical regions of the world most of 
the group’s plant and equipment is deployed on survey vessels and as the csem surveys are executed worldwide with
equipment often being relocated to meet capacity requirements the group is not able to allocate assets specifically 
to any geographical region
well and surface seismic wss
rdsp acquisition inc is the parent company of rock solid images rsi the industry leader in the integration 
of fundamental rock physics with well data and surface seismic in order to interpret geophysical signatures in terms 
of reservoir properties
the acquisition which took place shortly before the year end will allow highly valuable information to be gained from 
the intelligent combination of csem and seismic data calibrated by well log informationthe group considers that these
two remote sensing measurements are completely complimentary and when properly combined can lead to quantitative
measurement of important rock and fluid properties such as permeability and hydrocarbon saturation
as the acquisition took place nine days before the year end the segment information relating to the well and surface
seismic business is not considered material however additional information relating to the trading and assets of the 
well and surface seismic business is detailed in note 27
the following tables present revenue and gross profit and certain asset and liability information regarding the group’s two
business segments for the years ended 31 august 2007 and 2006
wss
csem 9 days only total csem wss t otal
2007 2007 2007 2006 2006 2006
£’000 £’000 £’000 £’000 £’000 £’000
continuing operations revenue
external revenue 17645 86 17731 10422 – 10422
segment gross profit 2898 43 2941 1363 – 1363
expenses 4084 3109
group operating loss 1143 1746
net capital investment
capital additions
– goodwill – 10422 10422 –––
– multiclient data library 1528 740 2268 472 – 472
– software 125 1887 2012 152 – 152
– patent costs 150 435 585 70 – 70
– consortium fee – 155 155 –––
– tangible fixed assets 753 458 1211 707 – 707
2556 14097 16653 1401 – 1401
depreciation and amortisation charges 1545 9 1554 1694 – 1694
1011 14088 15099 293 – 293
balance sheet
segment assets 28680 13496 42176 971 9 – 971 9
segment liabilities 4552 1667 6219 2558 – 2558
total net assets 24128 11829 35957 7 1 61 – 7 1 61 4 business and geographical segments – continued
secondary reporting format – geographical segments
the group’s operations are analysed between europe africa the americas and asia pacificthe following table provides
analysis of the group’s revenue by location of client which is not always the same as the location of the contracted activity
revenue revenue
2007 2006
£’000 £’000
europe 13861 4671
africa – 4185 
americas 1540 82 
asia pacific 2330 1484 
17731 10422 
the following table is an analysis of the carrying amount of total assets and additions to property plant and equipment and
intangible assets analysed by the location in which the assets are located
t otal assets capital expenditure
2007 2006 2007 2006
£’000 £’000 £’000 £’000
europe 25115 6741 1780 822 
africa 397 420 – – 
americas 14646 – 14106 1
asia pacific 181 – 93 –
unallocated – including plant and machinery on vessels 1837 2558 674 578 
42176 971 9 16653 1401
the total assets located in europe include £18905000 of cash and cash equivalents 2006 £3428000
5 group operating loss
2007 2006
£’000 £’000
the group operating loss is arrived at after chargingcrediting
net foreign exchange losses 92 96 
research and development expenses 694 401
depreciation of tangible fixed assets 1437 1624 
amortisation of intangible fixed assets 45 6 
operating lease rentals – property 86 53 
– vessels plant and equipment 6470 2733
cost of inventories recognised as expense 888 364 
staff costs note 6 3477 2185 
auditors’ remuneration for audit services see below 67 21
amounts payable to the auditors and their associates by the parent company and its uk subsidiary undertakings in respect
of nonaudit services were £8000 2006 £17 000
a more detailed analysis of auditors’ remuneration on a worldwide basis is provided below
2007 2006
£ £
recurring remuneration
fees payable to the company’s auditors for the audit of the company’s annual accounts 20 6
fees payable to the company’s auditors and their associates for other services to the group 47 15
including the audit of the company’s subsidiaries pursuant to legislation
67 21
further assurance services
t ax services – 3
other services 8 14
8 17
34 offshore hydrocarbon mapping plc
annual report 2007
notes forming part of the financial statements continued 35 offshore hydrocarbon mapping plc
annual report 2007
notes forming part of the financial statements continued
6 employees
the average number of employees including executive directors during the year was as follows
group 2007 2006
management sales and administration 25 10
scientists 23 14
operations 50 14
98 38 
staff costs including directors consist of
2007 2006
£’000 £’000
wages and salaries 2790 1741
social security costs 298 174 
other pension costs 37 24 
share based payments charge see note 29 352 246 
3477 2185
the company has no employees and has incurred no staff costs in the year 2006 £nil
7 directors’ remuneration
2007 2006
£’000 £’000
directors’ emoluments 504 367 
company contributions to directors’ personal pension schemes 26 19 
amounts paid to third parties in respect of directors’ services 6 7 
share based payments charge see note 29 67 163
603 556
the total amount payable to the highest paid director in respect of emoluments was £201271 2006 £151084
group pension contributions of £10720 2006 £9600 were made to his personal pension plan during the year
more detail of directors’ emoluments can be found in the remuneration report which has been presented voluntarily 
by the directors and is accordingly unaudited
8 finance income
2007 2006
£’000 £’000
interest on bank deposits 154 168 
154 168 
9 finance costs
2007 2006
£’000 £’000
interest on bank deposits and loans 1 – 
other interest payable 8 – 
9 –  36 offshore hydrocarbon mapping plc
annual report 2007
notes forming part of the financial statements continued
10 income tax expense
2007 2006
£’000 £’000
uk corporation tax
corporation tax – – 
foreign tax
current tax on foreign income for the year 59 88 
t otal current tax 59 88 
the tax assessed for the period is higher than the standard rate of corporation tax in the ukthe differences are explained
below
2007 2006
£’000 £’000
loss on ordinary activities before tax 998 1578
loss on ordinary activities at the standard rate of corporation tax in the uk of 30 200630 299 473
t ax effect of
expenses not deductible for tax purposes 22 4 
research  development enhancement 93 57
share based payments charge 96 74 
t ransfers to unrecognised assets 321 477 
foreign tax expense deduction – 25
foreign tax paid 56 84 
under provision in respect of previous years – 4 
income tax expense as reported in the income statement 59 88
11 loss per share
loss per ordinary share has been calculated using the weighted average number of shares in issue during the relevant
financial periods
the weighted average number of ordinary shares in issue for 2007 is 31523761 2006 30049652
earnings being the loss after tax are £1057 000 2006 loss of £1666000
2007 2006
number number
reconciliation of denominator for diluted eps calculation
number of shares used in calculation of basic eps 31 523761 30049652
dilutive potential ordinary shares held under share option and share award schemes – – 
number of shares used in calculation of diluted eps 31 523761 30049652
in both 2007 and 2006 the loss for the periods has resulted in any potential ordinary shares held under share option plans
and share award and annual bonus plans being antidilutive and in accordance with ias 33 “earnings per share” these
shares have therefore been excluded from the calculation of diluted eps at 31 august 2007 there were 2752233 ordinary
shares held under the company’s share option plans and share award and annual bonus plans which could potentially
dilute the basic eps in the future
refer to note 31 regarding post balance sheet events 37 offshore hydrocarbon mapping plc
annual report 2007
notes forming part of the financial statements continued
12 loss for the financial year
the company has taken advantage of the exemption allowed under section 230 of the companies act 1985 and has not
presented its own income statement in these financial statementsthe group loss for the year includes a loss after tax and
before dividends of £146000 2006 £nil which is dealt with in the financial statements of the parent company
13 goodwill
£’000
cost or valuation
at 1 september 2006 – 
acquisition of subsidiary note 27 10422 
exchange differences 193 
at 31 august 2007 10229 
accumulated impairment losses
at 1 september 2006 and 31 august 2007 – 
net book value
at 31 august 2007 10229 
goodwill acquired in a business combination is allocated at acquisition to the cash generating units cgus that are
expected to benefit from that business combination before recognition of impairment losses the carrying amount of
goodwill which is comprised of several cgus had been allocated as follows
2007
£’000 
controlled source electromagnetic csem business –
well and surface seismic wss business 10229 
10229 
the recoverable amounts of the cgus are determined from value in use calculations
the key assumptions for the value in use calculations are those regarding the discount rates growth rates and expected
changes to selling prices and direct costs during the year management estimates discount rates using pretax rates that
reflect current market assessments of the time value of money and the risks specific to the cgusthe growth rates are
based on industry forecasts changes in selling prices and direct costs are based on past practices and expectations of
future changes in the market
the group prepares cash flow forecasts derived from the most recent financial forecasts for the next year and extrapolates
cash flows for the following fifteen years based on estimated growth rates a pretax discount rate of 140 is used in the
cash flow projections 38 offshore hydrocarbon mapping plc
annual report 2007
notes forming part of the financial statements continued
14 intangible assets
multiclient patent consortium
data library software costs fees t otal
group £’000 £’000 £’000 £’000 £’000
cost or valuation
at 1 september 2005 326 – 108 – 434
additions 472 152 70 – 694
at 31 august 2006 798 152 178 – 1128
additions 1528 125 150 – 1803
acquisition of subsidiary 740 1887 435 155 3217
t ransfers on disposals 810 – 2 – 812
exchange differences 15 34 8 3 60
at 31 august 2007 2241 2130 753 152 5276
amortisation
at 1september 2005 – – 1 – 1
provided for the year – 5 1 – 6
at 31august 2006 – 5 2 – 7
provided for the year – 40 5 – 45
exchange differences – 4 – – 4
at 31 august 2007 – 41 7 – 48
net book value
at 31 august 2007 2241 2089 746 152 5228
at 31 august 2006 798 147 176 – 1121
the remaining amortisation life of the group’s multiclient data library varies from two to five years
as explained further in note 27  the group acquired rock solid images on 22 august 2007 in line with ias 38 “intangible
assets” the fair value of the purchased intangible assets was determined and is shown in note 27
amortisation is charged within administrative expenses so as to write of the cost of the purchased intangible assets over
their estimated useful livesthe assets initial values and periods used are as follows
cost at acquisition useful 
purchased intangibles £’000 economic life
multiclient data library 740 5 years
software 1887 10 years
patent costs 435 15 years
consortium fees 155 10 years
3217 
as rock solid images was purchased nine days before the group’s year end the remaining period of amortisation for
acquired intangible assets is close to the useful economic life at the date of acquisition which was 22 august 2007
the cost of acquisition shown above is similar to the carrying amount at 31 august 2007 39 offshore hydrocarbon mapping plc
annual report 2007
notes forming part of the financial statements continued
15 tangible fixed assets
assets in the
plant and computer office course of
machinery equipment equipment construction t otal
group £’000 £’000 £’000 £’000 £’000 
cost or valuation
at 1 september 2005 4288 407 132 934 5761
additions 11 119 10 567 707 
disposals 874 1 – – 875
transfers 1501 – – 1501 – 
at 31 august 2006 4926 525 142 – 5593 
additions 657 63 16 17 753 
acquisition of subsidiary 4 435 19 – 458 
disposals 179 3 16 – 198
transfers 17 – – 17 –
exchange differences – 20 1 – 21 
at 31 august 2007 5425 1000 160 – 6585 
depreciation
at 1 september 2005 1327 189 68 – 1584 
provided for the year 1510 135 43 – 1688 
disposals 469 1 – – 470 
at 31 august 2006 2368 323 1 1 1 – 2802 
provided for the year 1351 132 26 – 1509 
disposals 131 4 13 – 148 
exchange differences – 12 1 – 13 
at 31 august 2007 3588 439 123 – 4150 
net book value
at 31 august 2007 1837 561 37 – 2435 
at 31 august 2006 2558 202 31 – 2791
16 subsidiaries
group
undertakings
company £’000 
cost and net book value
at 1 september 2005 and 2006 1
acquisition of subsidiaries 5779
at 31 august 2007 5780
the company’s investments represents a holding of 100 of the ordinary share capital of the following principal
subsidiaries
country of 
registration
name nature of business incorporation
ohm limited provision of services to the oil exploration and production industry england  wales
ohm inc marketing the group’s activities usa
ohm us group inc north american holding company for rock solid images usa
rdsp i lp rock solid images trading company usa 17 inventories
group group
2007 2006 
£’000 £’000 
fuel at cost 390 – 
stock of spares  consumables 244 152
634 152
18 trade and other receivables
group group company company
2007 2006 2007 2006 
£’000 £’000 £’000 £’000 
t rade receivables 3562 1666 – – 
less provision for impairment of trade receivables – – – – 
3562 1666 – – 
amounts owed by group undertakings – – 36443 12577
other receivables 482 241 – – 
prepayments and accrued income 638 309 – – 
4682 2216 36443 12577
all amounts shown under group receivables fall due for payment within one yearthe company’s receivables includes loans
to subsidiary undertakings and falls due for payment outwith one year
19 cash and cash equivalents
group group
2007 2006 
£’000 £’000 
cash at bank and on hand 1968 3439
shortterm bank deposits 17000 – 
cash and cash equivalents 18968 3439
bank overdraft repayable on demand – – 
18968 3439
maturity of shortterm bank deposits have original maturity of three months or less
all bank deposits are fully liquid with the exception of the restricted cash amounting to £23000 which is held as security 
by the bank in an interest bearing account to secure a bank guarantee issued by the bank on our behalf to one of our
customersthe guarantee term is from 14 june 2007 until 90 days after submission of last invoice but in no event later 
than 13 august 2008
40 offshore hydrocarbon mapping plc
annual report 2007
notes forming part of the financial statements continued 41 offshore hydrocarbon mapping plc
annual report 2007
notes forming part of the financial statements continued
20 trade and other payables
group group company company
2007 2006 2007 2006
£’000 £’000 £’000 £’000 
t rade creditors 2004 1749 – – 
other payables 3 – – – 
accruals and deferred income 3189 749 41 – 
5196 2498 41 – 
t rade creditors and accruals principally comprise amounts outstanding for trade purchases and ongoing coststhe average
credit period taken for trade purchases is 49 days 2006 58 days
the directors consider that the carrying amount of trade payables approximates to their fair value
21 financial instruments
the group had no material financial instruments other than short term debtors and creditors during both this and the prior year 
credit risk
the group’s credit risk primarily relates to its trade receivablesthe group performs ongoing credit evaluations of its
clients and generally does not require collateral from its clients
financial assets
the group financial assets comprise cash at bank fixed rate financial assets for 2007 are pounds sterling and us dollar
deposits held in a fixed term moneymarket account with notice periods varying from four days to 63 days in 2006 fixed
rate financial assets are dollar deposits
as the financial assets disclosed below are cash the fair value is the same as the book value
it isand has been throughout the year under reviewthe group’ s policy that no trading in financial instruments shall be undertaken
floating rate fixed rate
financial financial
total assets assets
currency as at 31 august 2007 £’000 £’000 £’000
sterling 17722 722 17000 
norwegian kroner 8 8 –
malaysia ringgits 30 30 –
us dollars 1208 465 743 
18968 1225 17743
floating rate fixed rate
financial financial
t otal assets assets
currency as at 31 august 2006 £’000 £’000 £’000
sterling 2156 2156 – 
us dollars 1283 1283 –
3439 3439 –
financial liabilities
the group’s financial liabilities include short term creditors noncurrent finance lease obligations and line of credit facility
for which the fair value is the same as the book value
currency exposure
as at 31 august 2007  the group had net foreign currency monetary assets denominated in currency other than the
functional currency of the group as noted above 42 offshore hydrocarbon mapping plc
annual report 2007
notes forming part of the financial statements continued
21 financial instruments – continued
foreign currency risk
the group is exposed to foreign exchange risk arising from various currencies primarily us dollars and pounds sterling
the group also has overseas subsidiaries which operate in north america europe and asia and whose revenues and
expenses are denominated predominantly in us dollars in order to protect the group’s us dollar balance sheet from
movements in exchange rates the group finances its net investment in non pounds sterling overseas subsidiaries primarily
but not exclusively by means of borrowings denominated in their functional currencythe group is therefore exposed to
exchange movements in reserves on the retranslation of these companies at the closing rate
some of the sales of the group’s businesses are to clients in foreign locationsthese sales are priced in local currency but
invoiced in the currencies of the clients involvedwhere possible the group’s policy is to eliminate all significant currency
exposures on sales at the time of sale through forward currency contracts
22 borrowings
2007 2006
£’000 £’000 
noncurrent
line of credit 89 – 
89 – 
2007 2007 2006 2006
analysis of borrowings by currency and average interest rates paid £’000  £’000  
sterling – – – – 
us dollars 89 775 – – 
89 – 
the us dollar borrowings are secured over all the assets of one of the company’s subsidiariesthe interest rate is the us
prime rate and the borrowings mature on 31 august 2009
23 deferred tax
group group company company
2007 2006 2007 2006
£’000 £’000 £’000 £’000 
deferred tax liability
capital allowances in advance of depreciation 29 71 – –
goodwill on business combination note 27 717 – – –
t rading losses 29 71 – –
717 – – –
unrecognised deferred tax asset
carry forward losses 10531 6781 – –
unrecognised deferred tax asset 3157 2034 – –
at 31 august 2007  the group had corporation tax losses carried forward subject to agreement with tax authorities in 
the united kingdom the united states and norway amounting to £10531000 2006 £6781000
the unrecognised deferred tax asset has been calculated using prospective income tax rates in the united kingdom the
united states and norway in line with the group’s accounting policy on deferred taxation the potential deferred tax asset
has not been recognised in these financial statements as the full utilisation of these losses in the foreseeable future is
uncertain
t emporary differences associated with investments made by the group
at 31 august 2007 there was no recognised deferred tax liability for taxes that would be payable on the unremitted
earnings of certain group’s subsidiaries as the directors have determined that undistributed profits of subsidiaries 
will not be distributed in the foreseeable future
there are no income tax consequences attaching to the payment of dividends by the company to its shareholders 43 offshore hydrocarbon mapping plc
annual report 2007
notes forming part of the financial statements continued
24 finance leases 
finance leases which expire
present present 
minimum future value of minimum future value of 
lease finance lease lease finance lease
payments charges payments payments charges payments
2007 2007 2007 2006 2006 2006
£’000 £’000 £’000 £’000 £’000 £’000 
within one year 17 2 15 – – – 
in the second to fifth years inclusive 118 18 100 – – – 
after five years – – – – – – 
135 20 115 – – – 
included in current liabilities 73
included in noncurrent liabilities 42 
115 
the typical terms of leases are 36 months with 1 buyout at the end of the term for the year ended 31 august 2007 
the average effective borrowing rate was 1 17
the obligations under finance leases are secured by the lessors’ rights over the leased assets
25 operating lease arrangements
2007 2006
£’000 £’000 
minimum lease payments under operating leases recognised as an expense in the period 6556 2786
at the balance sheet date the group had outstanding commitments for future minimum lease payments under non
cancellable operating leases which fall due as follows
2007 2006
£’000 £’000 
within one year 4385 236 
in the second to fifth years inclusive 14241 3 
after five years – – 
18626 239
operating lease payments represent rentals payable by the group for certain of its office properties office equipment and
charter costs payable on vessels used by the group for gathering csem survey data
the increase in operating lease commitments relates to the five year vessel charter of the ohm express which was entered
into in june 2007 26 share capital
at 31 august at 31 august
2007 2006
£’000 £’000 
authorised
50000000 31 august 2006 43000000 ordinary shares of 1p each 500 430 
allotted called up and fully paid
42637 148 31 august 2006 30049652 ordinary shares of 1p each 426 300 
ordinary shares of 1p each
number £’000 
in issue at 1 september 2006 30049652 300 
issued on 29 november 2006 1500000 15 
issued between 1722 august 2007 1 1087 496 1 1 1
in issue at 31 august 2007 42637 148 426 
share option scheme
at 31 august 2007 the following share options were outstanding in respect of the ordinary shares
date of grant number of shares period of option exercise price per share
2 september 2002 137 180 september 2002 – september 2012 710p
28 november 2002 457 267 november 2002 – november 2012 710p
1 december 2003 141031 december 2003 – december 2013 2981p
1 december 2003 109744 december 2003 – december 2013 2981p
1 march 2004 940008 march 2004 – march 2014 17000p
1785230
the 457 267 share options granted on 28 november 2002 were exercised at a price of 710p on 17 september 2007
share award plan
at 31 august 2007 the following share awards were outstanding in respect of the ordinary shares
date of grant number of shares period of exercise exercise price per share
1 february 2006 581622 february 2009 – february 2016 100p
1 december 2006 250607 december 2009 – december 2016 100p
1 december 2006 134774 december 2009 – december 2016 100p
967003
overall 2752233 share options and share awards were outstanding at 31 august 2007
refer to the statement of changes in equity on pages 26 to 27 for more details on movements in reserves
44 offshore hydrocarbon mapping plc
annual report 2007
notes forming part of the financial statements continued 45 offshore hydrocarbon mapping plc
annual report 2007
notes forming part of the financial statements continued
27 acquisition of subsidiary
on 22 august 2007  the group acquired rock solid images by purchasing 100 of the share capital of rdsp acquisition
inc for £1 1957 million rdsp acquisition inc is the holding company of a group of companies involved in providing data
technologies and expertise to maximise existing investment in oil and natural gas well and seismic data by transforming
qualitative interpretations into quantitative resultsthis transaction has been accounted for by the purchase method of
accounting
fair value fair
book adjustments value
value provisional provisional
note £’000 £’000 £’000
net assets acquired
property plant and equipment 15 458 – 458
goodwill 20202020–
multiclient data library 14 – 740 740
software 14 831 1056 1887
patents 1437398435
consortium fees 14 – 155 155
t rade and other receivables 879 – 879
cash and cash equivalents 142 – 142
t rade and other payables 879 – 879
finance leases 1 19 – 1 19
inter company loans 1446 – 1446
deferred tax liability 23 – 717 717
1923 388 1535
goodwill 13 10422
total consideration 1 1957
satisfied by
cash 6266
directly attributable costs 278
fair value of shares issued in offshore hydrocarbon mapping plc see below 5413
1 1957
net cash outflow arising on acquisition
purchase consideration 6266
directly attributable costs 278
cash and cash equivalents acquired 142
6402
the goodwill is attributable to the anticipated profitablility and the significant synergies expected to arise after the group’s
acquisition of rdsp acquisition incthere is considerable potential for total rock and fluid property measurement from 
the intelligent combination of csem and seismic datathis combination should create new products with exciting
application in reservoir management and enhanced recovery from client’s oil and gas reserves
the fair value of the shares issued was based on the closing market price of the 1926352 ordinary shares of 1p each on 
22 august 2007 which was 281 pence
the acquired business contributed revenues of £86000 and a net loss of £4000 to the group for the period from 
22 august 2007 to 31 august 2007 if the acquisition had occurred on 1 september 2006 group revenue would have been
£4342000 higher and group loss attributable to equity holders of the parent would have been £2069000 higher although
this loss includes £2687 000 of charges directly related to the acquisitionthese amounts have been calculated using the
group’s accounting policies and by adjusting the results of the subsidiary to reflect the additional depreciation and
amortisation that would have been charged assuming the fair value adjustments to property plant and equipment 
and intangible assets had applied from 1 september 2006 together with the consequential tax effect 28 capital commitments
group capital commitments approved and committed as at 31 august 2007 were £305000 2006 £62000
the company had no capital commitments as at 31 august 2007 2006 £nil
29 sharebased payments
details of each of the employee share plans in place are given below and where applicable in the remuneration report
share option plans
the group has entered into share option agreements with its executive directors and certain key employees through the
group’s share option plans which are equity settled most of these agreements were entered into before the company’s
initial public offering on 1 1 march 2004 no grants under these plans have been made since june 2005these plans consist
of an approved management incentive scheme and an unapproved share option scheme share options are granted at the
middle market price of the company’s shares on the date of grant or in respect of options granted before the company’s
shares were publically traded at the director’s best estimate of fair value at the date of grantthe number of share options
that vest will be determined by the achievement of performance targets set by the remuneration committee and the
vesting period varies between one and three years
the performance targets to be achieved are a mixture of individual performance goals and market based targets which
compare the total shareholder return of the company’s shares with the london ftse aim index and the philadelphia oil
services index if the share options remain unexercised after a period of 10 years from the date of grant they will expire
share options are normally forfeited if the employee leaves the group before the share options vestthe price that the
employee must pay the company when exercising each share option varies
share award and annual bonus plans
the group has entered into share award agreements with its executive directors certain key employees and all permanent
employees through the group’s share award and annual bonus plans which are equity settledthe number of share awards
to be granted is calculated by taking an agreed percentage of the employee’s salary and dividing this by the average closing
price of the company’s shares in the five business days immediately before the date of grantthe number of share awards
that vest will be determined by the achievement of performance targets set by the remuneration committee and the
vesting period varies between one to three years
the performance targets to be achieved for these plans are a mixture of company related financial performance targets and
market based targets and compare the total shareholder return of the company’s shares with the london ftse aim index
and the philadelphia oil services index if the share awards remain unexercised after a period of 10 years from the date of
grant they will expire share awards are normally forfeited if the employee leaves the group before the share awards vest
the employee must pay the company an amount of 1 pence when exercising each share award
details of share options and share awards outstanding during the year were as follows
2007 2006
weighted weighted 
average average
2007 exercise price 2006 exercise price
number in pence number in pence
at 1 september 2645868 7493 21 10617 10080
granted 385381 100 656790 100
forfeited 279016 9382 121539 1 1219
expired – 000 – 000
exercised – 000 – 000
at 31 august 2752233 6207 2645868 7493
exercisable at 31 august 1730358 1604970
of the share options and awards outstanding at 31 august 2007 and 31 august 2006 the exercise prices are as follows
share award plan 967 003 1 00 pence 656790 1 00 pence
share option plan 594447 710 pence 594447 710 pence
share option plan 250775 298 1 pence 321 289 298 1 pence
share option plan 940008 17000 pence 940008 17000 pence
share option plan – 18000 pence 133334 18000 pence
2752233 2645868
no share options or awards were exercised during 2007 or during 2006 however on 17 september 2007 457 267 share
options were exercised by mr david pratt at a price of 710 pencethe closing mid market share price on 17 september
2007 was 24912 pence
46 offshore hydrocarbon mapping plc
annual report 2007
notes forming part of the financial statements continued 47 offshore hydrocarbon mapping plc
annual report 2007
notes forming part of the financial statements continued
29 sharebased payments – continued
the weighted average exercise price of the share options outstanding under the share option plans was at 31 august 2007
9610 pence 2006 9930 pence and under the share award and annual bonus plans it was 100 pence 2006 100 pence
in total the share options and awards outstanding at 31 august 2007 had a weighted average exercise price of 6266 pence
2006 7493 pence and a weighted average remaining contractual life of 704 years 2006 682 years in 2007 share awards
were granted on 1 december and 21 december 2006 and the aggregate of the estimated fair values of the share awards
granted on these dates is £418000 in 2006 share awards were granted on 1 february 2006 and the aggregate of the
estimated fair values of the share awards granted on that date is £494000the weighted average fair value of the share
awards granted during the year was 10838 pence 2006 7522 pence
included in staff costs note 6 is an expense arising from share based payment transactions of £352000 2006 £246000 
all of which relate to the fair value of equity settled share based payments of this total £36000 2006 £166000 relates 
to the share option plans and £316000 2006 £80000 relates to the share award and annual bonus plansthe fair value
of these equity settled share based payments has been obtained by using two option pricing models
the monte carlo simulation model was used to obtain the fair value of share options and awards which have market
related performance conditionsthe cox ross  rubinstein binomial model was used to obtain the fair value of all 
other share options and awards
the main input assumptions into the various models are as follows
cox ross 
monte carlo rubinstein 
model binomial model
expected volatility 55 66
expected life 10 years 10 years
risk free rate 493 475
dividend yield nil  nil 
expected volatility was determined by calculating the historical volatility of the company’s share price over the three years
prior to grant for each new grant the historical volatility is considered for a period in line with the expected life of the
share awards and options grantedthe expected life used in the models has been adjusted based on management’s best
estimate for the effects of nontransferability exercise restrictions and behavioural considerations
30 related party disclosures
loans and transactions concerning directors and officers of the company
during the year the group paid £1000 2006 £5000 to east hill management company llc in which mr landon clay 
is a director in respect of director’s services
during the year the group also paid £5000 2006 £nil to east hill management company llc in which mr jeffery scott
garner is a president and investment and managing member of the general partner of east hill university spinout funds
lp  in respect of director’s services
related party transactions with subsidiaries
t ransactions between the company and its subsidiaries which are related parties are as follows
amounts owing from related party amounts owing to related party
2007 2006 2007 2006
£’000 £’000 £’000 £’000
ohm limited 28906 12577 – –
ohm us group inc 7 537 – – –
36443 12577 – –
during the year no goods and services were provided toby subsidiary undertakings
remuneration of key management personnel
key management personnel comprise the executive directors and certain additional senior management who joined the
group towards the end of the yearthe directors’ remuneration is detailed in note 7 and in the remuneration reportthe
senior management salaries and short term employee benefits for the year amounted to £31000 and the post employment
benefits amounted to £4000 31 post balance sheet events
on 17 september 2007  mr david pratt chief executive officer exercised 457 267 share options
there were no other events between the balance sheet date and the date the financial statements were authorised for issue
that require disclosure
32 explanation of transition to ifrs
this is the first year that the group has presented its financial statements under ifrsthe following disclosures are required
in the year of transitionthe last financial statements under uk gaap were for the year ended 31 august 2006 and the
date of transition to ifrs is therefore 1 september 2005
firsttime adoption exemptions applied
the requirements for the firsttime adoption of ifrs are set out in ifrs 1“first time adoption of international financial
reporting standards” in general ifrs 1 requires that accounting policies be adopted that are compliant with ifrs and that
these policies are applied retrospectively to all periods presented however under ifrs 1 a number of exemptions are
permitted to be taken in preparing the balance sheet as at the date of transitionthese exemptions are explained below
– the group has elected to apply the provisions of ifrs 2 “share based payments” to all share options and share award
grants made after 7 november 2002 but not vested at 1 september 2005
explanation of reconciling items between uk gaap and ifrs
a t ransition date and first time adoption of ifrs
the group’s transition date to ifrs is 1 september 2005 all adjustments on first time adoption which related to
periods prior to this date were recorded in shareholders equity on the date of transition
there was no adjustment on first time adoption by the company
b intangible assets
the costs of obtaining patents were capitalised by the group under uk gaap and amortised over their useful life from
the date they were awarded however under ias 38 “intangible assets” the recognition criteria for intangibles has
resulted in the recognition of more intangible assets and lower amortisation charges than under uk gaap the patents
are amortised over their useful life which ranges from 10 to 15 years
costs in relation to those intangible assets and software that had not been recognised under uk gaap  but now qualify
for recognition in accordance with ias 38 were previously written off to the income statement
software developed internally which was previously expensed has been capitalised under intangible assets as required
under ifrsthis software is amortised over its useful life which ranges from two to ten years
c employee benefits share based payments
under uk gaap charges were based on the intrinsic value of awarded shares at grant date under ifrs 2 “share based
payments” the charge to the income statement is based on the fair value of all share based awards at grant datethe
cost is calculated using option pricing models and for equity settled awards applies to all share options and share awards
granted after 7 november 2002 and not vested at 1 september 2005the cost is amortised through the income
statement over the vesting period of the options and awards
the accounting for share based payments has no net impact on total shareholders’ equity for the periods under review
d cashflow statement
the cashflow statement has been prepared in conformity with ias 7 “cashflow statements”there are no material
differences between the cashflow statement presented under ifrs and the cashflow statement presented under uk
gaap the only difference from uk gaap is presentational
e income tax
the group does not currently recognise its deferred tax asset and accordingly there are no recorded tax effects
resulting from reconciling items
48 offshore hydrocarbon mapping plc
annual report 2007
notes forming part of the financial statements continued 49 offshore hydrocarbon mapping plc
annual report 2007
notes forming part of the financial statements continued
32 explanation of transition to ifrs – continued
group income statement for the year ended 31 august 2006
effect of
uk gaap transition as reported
in ifrs format reclassification to ifrs under ifrs
note £’000 £’000 £’000 £’000
revenue 10422 – – 10422 
cost of sales 7 549 1510 – 9059 
gross profit 2873 1510 – 1363 
administrative expenses a 4436 1510 1 18 2808 
loss on disposal of fixed assets 301 – – 301
group operating loss 1864 – 118 1746
finance income 168 – – 168 
loss before taxation 1696 – 118 1578
income tax expense 88 – – 88
loss for the period 1784 – 118 1666
the order and description of items presented as ‘uk gaap in ifrs format’ have been adjusted to ease the direct
comparison with ifrs presentation in particular the depreciation charge on plant and equipment deployed on survey
operations has been reclassified from administrative expenses to cost of sales
standard £’000
note a
patents additions capitalised ias 38 101
patents amortisation ias 38 1
software additions capitalised ias 38 152
software amortisation ias 38 5
share based payments charge ifrs2 129
total ifrs adjustments to administrative expenses 1 18 32 explanation of transition to ifrs – continued
group balance sheet for the year ended 31 august 2006
effect of transition to ifrs on 1 september 2005
ias 38 ifrs 2
uk gaap ‘intangible ‘share based as reported
in ifrs format assets’ payments’ under ifrs
£’000 £’000 £’000 £’000
assets
noncurrent assets
intangible assets – multiclient data library 798 – – 798 
– software – 147 – 147 
– patent costs 102 74 – 176 
plant and equipment 2791 – – 2791
3691 221 – 3912 
current assets
inventories 152 – – 152 
t rade and other receivables 2216 – – 2216 
cash and cash equivalents 3439 – – 3439 
5807 – – 5807 
total assets 9498 221 – 9719 
liabilities
current liabilities
t rade and other payables 2558 – – 2558 
net assets 6940 221 – 7161
shareholders’ equity
share capital 300 – – 300 
share premium 12178 – – 12178 
share based payments reserve 1 17 – 379 496 
retained earnings 5655 221 379 5813
total shareholders’ equity 6940 221 – 7161
50 offshore hydrocarbon mapping plc
annual report 2007
notes forming part of the financial statements continued notes forming part of the financial statements continued
51 offshore hydrocarbon mapping plc
annual report 2007
32 explanation of transition to ifrs – continued
group balance sheet for the year ended 31 august 2005
effect of
transition 
to ifrs on
1 september 2005
ias 38 as reported
uk gaap in “intangible  under
ifrs format assets” ifrs
£’000 £’000 £’000
assets
noncurrent assets
intangible assets – multiclient data library 326 – 326 
– software – 
– patent costs 131 25 106 
plant and equipment 4177 – 4177 
4634 25 4609 
current assets
inventories 194 – 194
t rade and other receivables 11 12 – 11 12 
cash and cash equivalents 4357 – 4357 
5663 – 5663 
total assets 10297 25 10272 
liabilities
current liabilities
t rade and other payables 1692 – 1692 
net assets 8605 25 8580 
shareholders’ equity
share capital 300 – 300
share premium 12178 – 12178 
share based payments reserve – 250 250
retained earnings 3873 275 4148
t otal shareholders’ equity 8605 25 8580 52 offshore hydrocarbon mapping plc
annual report 2007
company registration number
04329960
registered office
co pinsent masons
30 aylesbury street
london
ecir oer
directors
dr pierre jean marie henri jungels cbe
nonexecutive chairman
david charles newall pratt chief executive officer
dr lucy margaret macgregor chief scientific officer
robert ian auckland chief financial officer
gary ernest jones nonexecutive director
keith lough nonexecutive director
secretary
robert ian auckland
nominated advisor and broker
kbc peel hunt ltd
1 1 1 old broad street
london
ec2n iph
registrars
capita registrars 
northern house
woodsome park
fenay bridge
huddersfield
w est y orkshire
hd8 0la
bankers
royal bank of scotland plc
aberdeen bridge of don branch
18 ellon road
bridge of don
aberdeen
ab23 8ea
solicitors
pinsent masons
30 aylesbury street
london
ec1r oer
public relations
aquila financial limited
181 union street
london
se1 0ln
auditors
bdo stoy hayward llp
ballantine house
168 west george street
glasgow
g2 2pt
offshore hydrocarbon mapping plc
shareholder information designed and produced by jacksonbone
printed in england by pureprint group using energy from sustainable sources and vegetablebased inks offshore hydrocarbon mapping plc
annual report 2007
offshore hydrocarbon mapping plc
the t echnology centre
aberdeen science and energy park
claymore drive
bridge of don
aberdeen
ab23 8gd 
wwwohmsurveyscom
info

ohmsurveyscom
t elephone 44 0870 429 6581
fax 44 0870 429 6582
ohm ra cover 2007finalqxd  261107  0944  page 1


Summary:
 3 offshore hydrocarbon mapping plc
annual report 2007
chief executive’s review
greater adoption
introduction
offshore hydrocarbon mapping plc ohm plc uses specialist
remote sensing information to help our clients to understand
the subsurface of the earththe company was formed to
commercialise the controlled source electromagnetic
csem technique which focused on providing information 
on the nature of electrically resistive bodies in the subsurface
as an aid to oil and gas exploration and developmentthe
acquisition of rock solid images during fiscal year 2007  has
added key skills and capabilities to ohm which will allow the
group to lead the market in the integration of csem with 
the seismic and well logging information which oil companies
traditionally use to examine their subsurface formations
our research leads us to believe that there is immense value
to be created in this combination
the company was founded in 2002 and was floated on 
the aim market of the london stock exchange in 2004
science behind the image 
offshore hydrocarbon mapping’s unique capability is to use
the controlled source electromagnetic surveying technique
often in combination with other geophysical remote sensing
techniques to provide meaningful images of the structure of
the earth which can be used in the search for and production
of hydrocarbons
in its simplest embodiment csem can be used to detect
anomalous responses associated with resistive bodies in the
earth complex processing and analysis of these simple field
responses is required to provide detailed images of the
subsurface to discriminate between signals related to
commercial hydrocarbon deposits and those from other
geologic or topographic features of the subsurface by using
its unique techniques and software to identify resistive bodies
in the earth that correlate in depth and extent to suspected
hydrocarbon plays and having resistivity values consistent 
with hydrocarbon saturated sediments ohm are able to
reduce significantly the risk of their clients drilling non
commercial wells
operating activity in 2007 
since inception in 2002 ohm’s csem equipment packages
have been designed to be portable enabling us to mobilise
them cost effectively to remote locations using commercial
sea freight once they arrive in a port close to a client’s work
site they are mobilised onto locally sourced vessels for the
survey operations to be undertaken our skilled survey crews
fly out to join these vessels and execute the surveys as
industry adoption has progressed and our order visibility 
has become greater it made sense for us to move to securing
some dedicated tonnage to meet our offshore survey needs
accordingly we entered into a five year charter for ohm
express our new flagship
at 1 10 metres long the ohm express is a relatively large
vessel and has a hull designed for voyages in the rough sea
conditions prevalent in higher attitude seasthis affords her
excellent sea keeping capabilities and provided an excellent
foundation for a purpose designed conversion that has
resulted in a safe comfortable operating platform for our
csem surveysthe vessel entered service in june 2007
conducting surveys in the north sea northern norway and
the north atlantict o date the ohm express has exceeded
our expectations in terms of economy and efficiency
elsewhere our crews performed work in west africa and in
the falkland islands our work programme in the falkland
islands was hampered by extraordinarily bad weather during
the southern hemisphere summer seasonthis caused the
survey to be extended beyond the time for which we had the
original vessel charteredthe changeover of vessel that this
necessitated impacted on the profitability of that contract 
and without this our results for the year would have been
even better
workloads for our data processing groups in houston and
aberdeen have remained extremely high working on data
acquired by our own field crews as well as applying ohm’s
ever advancing processing and analysis techniques on a
contract basis to clients who wish to enhance data acquired
on earlier contracts or by other contractors
our recruitment and training programme has produced a 
good flow of qualified personnel to support both our offshore
operations and onshore processing groups and we are
particularly pleased with this achievement given the competition
for personnel created by an overheated oil and gas industry
rock solid images 
rock solid images rsi joined the group in the last weeks 
of our 2007 fiscal year and so made only the smallest of
contributions to our 2007 results
rsi is the industry leader in the application of rockphysics 
for integrating and calibrating seismic and borehole data to
provide geologic insight and reservoir understanding at all
stages of the oilfield lifecycle
rsi was founded in november 1998 though the merger of 
the discovery bay company seismic research corporation
and petrosoft inc rsi offers a range of products and services
including seismic and well data conditioning seismic inversion
for rock and fluid properties and software for rockphysics
seismic modelling and seismic attribute calculation and
classification
unique to rock solid images is our lfp lithology and 
fluid prediction consortiumthis consortium has been in
continuous existence under a variety of names since early
1991 2007 saw the launch of phase ii of our lfp project with
18 oilindustry sponsors supporting our research in rock
physics seismic modelling and wellseismic integration
in 2005 ohm and rsi commenced work together on the
integration of csem and seismic datawe found that ohm
and rsi have much in common a similar culture of high quality
science coupled with exceptional customer service initial
joint research gave intriguing insight into the potential for 
total rock and fluid property measurement from the
intelligent combination of csem and seismic data and led to
some early patent applications ohm’s management believe
that this combination will create new products with exciting
application in reservoir management and enhanced recovery
from our clients’ oil and gas reservoirsthis is the justification
for the strategic acquisition of rock solid images
we have announced to industry the launch of our wise
project welldriven integration of seismic and em data for
the development of technology products and services in this
important new area and this has met with a high level of
industry interest
safety and the environment 
the group conducts operations offshore often in hostile and
remote conditions in order to control the risks associated with
this activitythe group has developed a comprehensive safety
and environmental management systemthis system is
frequently reviewed and updated for new circumstances and 
to capture increasing experience and emerging best practice
ownership of the system lies not just with the group and its
management but with the personnel operating “at the coalface”
whose experience and knowledge are vitally important in the
development and maintenance of safe working regimes
dave pratt
chief executive officer 4 offshore hydrocarbon mapping plc
annual report 2007
it is a testament to the dedication of all that we have for 
the sixth successive year achieved our goal of conducting our
operations without significant injury lost time incidents or
accidental damage to our environment in 2007 we were also
grateful to have received awards from some of our clients for
our hse performance
research and development 
ohm’s industry leading capabilities are driven by the group’s
efforts in research and development in dr lucy macgregor
and her team we have assembled a group of the leading
researchers in our field
our research efforts over the past years have focused on
initiatives to improve the images of the earth that csem
provides and to widen the application of the method to a
wider set of geological environmentswe lead the market 
in our ability to conduct csem operations in a full range of
water depths and to produce images of complex resistive
structures in complex basins
this work goes on apace but the addition of rock solid
images heralds an extra layer of research that will focus on 
the derivation and quantitative measurement of rock and fluid
properties from surface geophysical measurements co
operations between the research groups of ohm and rsi
over the last two years has already revealed exciting benefits
from the intelligent combination of csem and seismic
measurements of the same piece of the subsurface our joint
industry research project with bp and the uk’s department
for business enterprise and regulatory reform is also
contributing vital knowledge and understanding in this area
and is a guiding force in assisting us to prioritise research for
the maximum commercial benefit
rock solid images have successfully attracted a number of
leading oil companies to their lithology and fluid prediction
consortiumthis client involvement is a valuable tool in
accelerating the adoption of new technology within oil
companies whilst making a valuable contribution to the costs
of researchwe are widening this concept with the launch 
of our wise consortium which will focus on the role that
integrated seismic and csem can play in developing
understanding of subsurface rock and fluid properties
all of this research has valuable impact on our ability to
provide enhanced subsurface understanding to our
exploration clientsthis will enable us to stay far ahead of
those that seek to enter the csem marketthe potentially
bigger prize though is the possibility of developing a significant
new market in applying csem integrated with seismic to
reservoir monitoring and managementthe oil industry
produces only about one third of the oil and gas that it
discovers studies to date have shown that reservoir
monitoring and management strategies can significantly
increase the recovery of reservesthe seismic technique 
has been used to provide time lapse images of reservoirs 
as they are produced but we believe the integration of 
csem data into these studies will enable a significantly more
complete understanding of the subsurface performance 
of the reservoir
intellectual property 
the work conducted by ohm’s researchers led to a number
of patent filings in the course of the year adding to ohm’s
growing portfolio of intellectual property rights in the csem
space ohm’s intellectual property strategy is to patent
instrumentation processes and applications that improve the
effectiveness of the csem technique a competitor has for a
number of years pursued a general method patenting strategy
in this area ohm has always contended that these general
method patent applications were flawed mainly due to the
amount of information relating to the technique that was
published by academics before the commercialisation phase
beganthe decision during the year by the european patent
office to reject one of these applications seems to support
ohm’s viewpoint
financial review 
the growth trend that we saw in our 2006 fiscal year has
continued through 2007 our revenues for the second half 
of the year were £101 million building on the £76 million 
of the first half yearthis total revenue for ohm’s traditional
businesses of £176 million represents a 69 growth over 
the £104 million achieved in fiscal 2006 in addition we had a
revenue contribution of £01 million resulting from nine days
of trading at rock solid images whose acquisition closed near
the end of the fiscal year
strong performance in our proprietary full service survey
activities and advanced data processing groups compensated
for a shortfall in data library sales driven by the postponement
by the norwegian authorities of the 20th offshore
exploration licensing roundwe anticipate that these sales
will flow through now in fiscal 2008
the gross profit contribution rose to £29 million for fiscal
2007 from £14 million a year earlier representing 17 of
revenue 2006 13 of revenue operating margins continued
to remain under pressure from rising costs of chartering
vessels on the spot market in a tight shipping market and were
further impacted by the cost of sending an additional vessel to
complete work in the falkland islands which overran due to
unusually high weather downtime experienced during the
southern hemisphere operating season however the
introduction of the ohm express on long term charter
improved operating margins in our offshore operations
considerably and contributed towards a second half gross
profit of £22 million 22 of revenue for the group
overheads rose from £28 million to £40 million as the group
increased its investment in staff and geared up for further growth
the progress made during fiscal 2007 has reduced the loss
before tax to slightly under £10 million from £16 million in
2006 and we were pleased to see a net profit of £02 million
in the second half of the year following the £12 million loss
reported in our interim accounts
the group has adopted international financial reporting
standards as approved for use by the european union in
preparing these accounts and a reconciliation to the figures
previously reported under uk gaap has been included in
note 32the financial impact of adopting ifrs on the group’s
income statement and balance sheet has not been significant
the main areas where adjustments have been made relate to
the accounting for intangible assets such as patent protection
costs and internally generated software and accounting for
share based payments such as share options and awards
made to the group’s employeesthe net impact of these
conversion adjustments was to increase total shareholders’
equity at 1 september 2006 by £02 million to £72 million
the group’s cash balance was a healthy £190 million
following successful fund raisings during the year some 
of this money is already committed to capital expenditure 
on equipment for our third data acquisition crew which is
currently under constructionwe anticipate that we will bring
this crew into service at the start of the north sea operating
season in may of 2008 and are preparing for a fourth crew to
follow closely behind if market demand continues to grow as
anticipatedthe group should move to sustained profitability
with the third crew in operation with profits growing as more
crews are added thereafter
chief executive’s review continued 5 offshore hydrocarbon mapping plc
annual report 2007
principal risks and uncertainties
the group operates in a competitive environment and many
of its technologies are at the leading edge of industry
capability accordingly the group’s growth is heavily driven by
the general state of demand for oil and gas exploration and
exploitation services by the rate of adoption of these
technologies by its oil industry clients and by competitive
pressures created by new entrants seeking to duplicate its
offeringthe group seeks to control these risks through its
marketing and sales strategies and by patenting key elements
of its technology it invests in research and development to
maintain its lead over its competitors a number of oil service
companies have indicated intent to enter the group’s core
offshore electromagnetic market and accordingly earnings
could be impacted if these companies succeeded in developing
a competitive offering which captured market share
a good portion of the group’s operations are carried out
offshore and internationally offshore operations increase
exposure to certain health safety and environmental risksthe
group has well developed operating procedures and a health
safety and environmental management system through which
it seeks to control these risks and these are regularly audited
by our clients and benchmarked against industry norms and
host government standards to ensure that we are operating at
acceptably high levels in this regardwhere necessary advice is
taken from security consultants before making decisions about
sending staff to countries where there may be a security risk
offshore operations can be impacted by conditions beyond
the group’s control including but not limited to the effects 
of weather tides currents and third party interferencewhere
possible our operating companies seek to pass as many of
these risks on through their contracts with clients
currently the supply chain in sectors of the oil and gas
industry is exhibiting significant tightness of supply for key
resources like skilled staff and offshore vesselsthe group has
developed training recruitment and retention programmes to
endeavour to ensure that it can meet its staffing requirements
going forwardthere is a retention scheme for key personnel
the group monitors other areas of its supply chain frequently
and seeks to establish strategic relationships with key
suppliers to ensure security of supply
international operations create an exposure to foreign
currency and foreign tax risks which are where possible
mitigated through hedging in the supply chain and in
contractual terms with clients
in the past there have been challenges to the group’s freedom
to operate resulting from a competitor attempting to enforce
intellectual property rightsthe group invests in the top
quality legal advice in this area and constantly monitors the
patent landscape around its technologiest o date the group
has prevailed in these actions and there are no current
proceedings against any of the group’s companies although if
proceedings emerged which lead to adverse rulings in this
area there could be severe restrictions on its operations
the group’s companies carry out extensive data processing
operations which rely on large computer assets and complex
proprietary processing software interruptions in operations
of these computing resources could impact the group’s
earningsthe group seeks to distribute and back up its
computing assets to mitigate these risks
trading outlook 
the progressive adoption of our core csem technology 
by the exploration industry is leading us to change some 
of our business practices in the early phases of technology
adoption our customer base was a small number of
technology focused oil companies and we were able to 
focus on them with a small sales group as industry adoption
increases the number of client companies that we have to
address is growing significantly and we are expanding our 
sales force to cope with thist o boost further our sales
efforts we have entered into an alliance with cggveritas
a global provider of seismic services under this alliance we
have access to cggveritas’ global sales and marketing reach
together with a truly global logistics support network more
importantly we will access their long term relationships with
key clients including the prestigious national oil companies
that we anticipate as being significant clients for the future
following our fund raising during the year we are well
advanced with building the equipment and training the
personnel necessary to launch our third marine csem 
crew which we plan to bring into service at the start of the
north sea “season” in may 2008work is also scheduled 
to commence on the equipment for our fourth crew which
will follow a few months behind by which time we hope to 
be seeing tangible benefits from our cggveritas relationship
a number of companies have indicated a desire to enter 
the offshore electromagnetic market and we monitor this
situation closelywe believe that the time and cost to 
develop industrial instrumentation together with the rarity 
of experienced em practitioners represent extremely high
barriers to entry in addition our research and development
efforts continue to improve the quality of our offering
constantly raising the bar in industry requirementswhere
appropriate ohm applies for patent protection for this
differentiation and our awarded patent portfolio continues 
to grow
rock solid images’ traditional business area is seeing strong
demand for its servicesespecially the inversion of seismic data
w e are recruiting and training more staff in this area to meet
this demand our research on the integration of em data with
seismic and well log data is creating exciting opportunities and
we hope to see commercial products coming to market in this
area within our 2008 fiscal year leading to further growth at rsi
we seek in 2008 to continue the growth in revenues and
improvements in profitablilty achieved over the last two years
we are fortunate in having a dedicated team of professional
staff whose efforts have delivered our growth to date and
who are eagerly anticipating the challenges ahead
dave pratt
chief executive officer
19 november 2007
chief executive’s review continued