Annual Report & Accounts 2013



Act: The UK bribery Act 2010

AIM: London Stock Exchange’s Alternative Investment Market

AFE: Approval for Expenditure

Appraisal Well: a well drilled after a discovery of oil or gas has been made, to help determine the size of a hydrocarbon deposit

Bcf: Billion Cubic Feet

Bcfe: Billion Cubic Feet Equivalent

bpd: Barrels per day

Barrel of oil (“bbl”): 42 US gallons of oil at 60° Fahrenheit

Barrel of oil equivalent (“boe”): a unit of energy based on the approximate energy released by burning one barrel of crude oil

Binomial lattice model: An option pricing model that involves the construction of a binomial tree to show the different paths that the underlying asset may take over the option’s life and thereby arrive at a suitable valuation of the relevant asset or instrument

bopd: Barrels of Oil per Day (1 barrel = 159 litres)

boepd: Barrels of Oil Equivalent per Day

CGU: Cash generating unit

Code: UK Corporate Governance Code

Company: Petroceltic International plc, the parent company

Companies Acts: The Irish Companies Acts 1963 to 2013

Completion: Completion of the merger with Melrose resources plc on 10 October 2012

CPR: Competent Person’s Report

Cretaceous: A geological time period and system, covering the time between 145 to 65 million years ago

DBP: Deferred Bonus Plan

DOA: Delegation of Authority

EBITDAX: Earnings Before Interest, Taxes, Depreciation, Amortisation and Exploration costs written off

EGAS: Egyptian Natural Gas Holding Company

EGPC: Egyptian General Petroleum Corporation

EPC: Engineering, Procurement and Construction

EPS: Earnings per share

ESM: Irish Stock Exchange’s Enterprise Securities Market

Exploration Well: A well drilled to look for oil and gas in an area where no known oil or gas exists

Farm-in: An arrangement whereby one oil operator acquires an interest in a concession owned by another operator

Farm-out: An assignment or partial assignment of an oil and gas interest from one party to another party

FCA: Financial Conduct Authority

FEED Study: Front End Engineering & Design Study

FSA: Financial Services Authority

Gas initially in place (“GIIP”): the total gas content of a reservoir before the commencement of production

Group: Petroceltic International plc and its subsidiaries

HSE: Health, Safety and Environmental

HSES: Health, Safety, Environmental and Social Policy

IAS: International Accounting Standards

IFRS: International Financial Reporting Standards

IFC: International Finance Corporation, a member of the World Bank Group

IFRIC: International Financial Reporting Interpretations Committee

IASB: International Accounting Standards Board

ISGR: Integrated Stage Gate Review

ISO & OHSAS: British standard for occupational health and safety management systems

Jurassic: a geological time period and system, covering the time between 200 to 145 million years ago

KPI: Key performance indicator

KRG: Kurdistan Regional Government of Iraq

LPG: Liquid Petroleum Gas

LTIs: Lost Time Incidents

LTIF: Lost time injury frequency

Mboe: Thousand barrels of oil equivalent

Mboepd: Thousand barrels of oil equivalent per day

Mbbl: Thousand barrels of oil

Mcf: Thousand Cubic Feet

Melrose: Melrose Resources plc

MENA: Middle East and North Africa

MMbbl: Millions of barrels

MMboe: Million barrels of oil equivalent

MMcfpd: Million standard cubic feet per day

MMcfe: Million standard cubic feet equivalent

Ordovician: a geological time period and system, covering the time between 488 to 444 million years ago

Permeability: a measure of the ability of a porous material (such as a reservoir rock) to transmit fluids

Petroceltic: Petroceltic International plc and/or its subsidiaries

Petrophysics: the study of the physical and chemical properties that describe the occurrence and behaviour of rocks mainly focused on the study of reservoir rocks holding oil or natural gas reservoirs

PMS: Project Management System

Porosity: a measure of the void spaces in a reservoir rock, and is expressed as a fraction of the volume of voids over the total volume, generally expressed as a percentage measure. When conducting exploration or production activities it is vital to understand the permeability and porosity of the rock formations encountered. These twin properties are key indicators of the likely potential for commercial flow rates, numbers and costs of wells required and ultimate economic outcomes

Proved Reserves: generally taken to be those quantities of oil and gas that geological and engineering information indicates with reasonable certainty can be recovered in the future from known reservoirs under existing economic and operating conditions. Proven reserves may also be called 1P or P90 reserves

Probable Reserves: oil and gas reasonably probable to be produced using current or likely technology at current prices, with current commercial terms and government consents. Probable reserves are also known as P50 or 2P reserves

Possible Reserves: oil and gas which may possibly be developed under favourable circumstances. Some industry specialists refer to this as P10 or 3P reserves

PSP: Performance Share Plan

Production Sharing Contract (“PSC”): a contract signed between a host government and an oil and gas exploitation company, regulating how much of the oil and gas produced from a production concession each will receive

Recovery Factor: that proportion of the oil or gas volume in a reservoir which can be technically and economically recovered

Regulations: The large and medium-sized Companies and Groups (accounts and reports) (amendment) regulations 2013

SOP: Share Option Plan

Skye: Skye Investments Limited

Spud: The commencement of drilling for any well

STOIIP: Stock tank oil initially in place

TD: Total Depth

Tcf: Trillion cubic feet

Tcfe: Trillion Cubic Feet Equivalent

Triassic: a geological time period and system, covering the time between 251 to 200 million years ago

TROS: Total Received Ordinary Shares

TSR: Total Shareholder Return