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## NOTES TO THE FINANCIAL STATEMENTS CONTINUED 

## FOR THE YEAR ENDED 31 DECEMBER 2014 

## 20 FINANCIAL INSTRUMENTS CONTINUED 

## C) CREDIT RISK 

Neither the Group nor the Company have customers so formal credit procedures are in the process of being established. During drilling operations, the Group incurred 100% of costs that were shared with other companies and these were invoiced to these companies with all amounts due for these shared costs paid to the Group during the year. Credit risk on cash balances is managed by only banking with reputable financial institutions with a high credit rating. The only significant concentration of credit risk on an ongoing basis is cash held at bank and the maximum credit risk exposure for the Group and Company is detailed in the table below: 

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## CAPITAL 

The objective of the Directors is to maximise shareholder return and minimise risk by keeping a reasonable balance between debt and equity. To date the Group has minimised risk by being purely equity financed. The Group considers its capital to comprise its ordinary share capital, share premium, accumulated retained deficit and other reserves. 

