Selan Exploration Technology Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Dec 2018
Auditor and Management Disclosures and Notes for the quarterly results dated 31 Dec 2018
1. The Statement has been prepared in accordance with the Companies (Indian Accounting Standard) Rules, 2015 (Ind AS) prescribed under Section 133 of Companies Act, 2013 and other recognised accounting practices and policies to the extent applicable.
2. Residual value of Property Plant and Equipment (PPE) is considered as Nil for the purpose of depreciation calculation.
3. The selling price of crude oil is determined at the prevailing international market rates in US Dollars. Fluctuations in the international price of crude oil and Dollar vs Rupee Exchange rates, affect the profitability of the Company. 4. The Company operates in a single segment of production of Oil and Natural Gas. Therefore, Ind AS-108 on Segment Reporting is not applicable to the Company.
5. Previous period figures have been reclassified / regrouped / restated, wherever necessary.
6. "Development of Hydrocarbon Properties"" includes the cost incurred on the collection of seismic data, drilling of wells, reservoir modeling costs and other related expenditures on development of oil and gas fields.
7. The Board of Directors of the Company at its meeting held on 27 December 2018, has approved the buy-back of it's fully paid-up equity shares of face value of Rs. 10/- (Rupees Ten Only) each, (“equity shares”) , from the shareholders / beneficial owners of the Company, at a price not exceeding Rs.300/- (Rupees Three Hundred Only) per equity share (“Maximum Buy-back Price”) excluding brokerage cost, fees, turnover charges, taxes such as security transaction tax and goods and service tax (if any), stamp duty etc. and any other incidental and related expenses ("Transaction Cost") for an aggregate amount not exceeding Rs. 25 Crores (Rupees Twenty Five Crores only), ("Maximum Buyback Size") from the open market through Stock Exchange mechanism in such manner as may be prescribed in the Companies Act 2013 ("Act") , the Companies (Share Capital and Debentures) Rules, 2014 (hereinafter referred to as the “Share Capital Rules”), the Securities and Exchange Board of India (Buy-Back of Securities) Regulations,2018 (“Buyback Regulations”) and the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“Listing Regulations”), as amended (including any statutory modification(s) or-re-enactment of the Act or Buyback Regulations for the time being in force).
The Maximum Buyback size represents 8.66% of the aggregate of the Company’s total paid up equity share capital and free reserves based on the audited financial statements of the Company as at 31 March 2018, which is within the maximum permissible limit of 10% of the total paid up equity share capital and free reserves in accordance with the Companies Act, 2013. Further, the company shall utilize at least 50% of the Maximum Buyback Size i.e. Rs. 12.50 Crores (Rupees Twelve Crores Fifty Lakhs Only) towards the Buyback and the Company will accordingly purchase an indicative minimum of 4,16,667 (Four Lakh Sixteen Thousand Six Hundred Sixty Seven only) Equity Shares, based on the Minimum Buyback Size and Maximum Buyback Price.
8. The Board of Directors at their meeting held on 27.12.2018 declared an interim dividend of 50% (i.e. Rs. 5 per equity share) for the Financial Year 2018-19.
9. The above results were reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on 31.01.2019. Management Perspective :
1 The Company's PSC extension applications have been reviewed by the Directorate General of Hydrocarbons (DGH) and forwarded to MoPNG for final approval (for 10 years) for the Bakrol and Lohar fields.
2 Accordingly, in anticipation of the above, the company has been conducting extensive activities for the past several months.
3 From a production standpoint, this has resulted in a brief shut down (for a few days at a time) of several of the Company's producing wells.
4 The maintenance activities are now largely completed and production volumes are expected to increase from Q4 2018-2019 onwards.