The following new accounting standards, amendments to existing standards and interpretations are effective on 1 January 2021. Amendments to IFRS 4 Insurance Contracts - deferral of IFRS19, Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 Interest Rate Benchmark Reform - Phase 2, Amendments to IFRS 16 Leases: Covid-19-Related Rent Concessions beyond 30 June 2021. Nothing has been early adopted, and these standards are not expected to have a material impact on the Company's results or financials statement disclosures in the current or future reporting periods.

The following new accounting standards, amendments to existing standards and interpretations have been issued but are not yet effective and have not yet been endorsed by the EU: IFRS 17 Insurance contracts (effective 1 Jan 2023), Amendments to IAS 1 Presentation of Financial Statements: Classification of Liabilities as Current or Non-current (1 Jan 2023), Amendments to IFRS 3 Business Combinations; IAS 16 Property, Plant and Equipment; IAS 37 Provisions, Contingent Liabilities and Contingent Assets; Annual Improvements 2018-2020 (1 Jan 2022), Amendments to IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2: Disclosure of Accounting policies (1 Jan 2023), Amendments to IAS 8 Accounting policies, Changes in Accounting Estimates and Errors: Definition of Accounting Estimates (1 Jan 2023), Amendments to IAS 12 Income Taxes: Deferred Tax related to Assets and Liabilities arising from a Single Transaction (1 Jan 2023). 3. Segmental information

The Company has two reportable business segments: Production (which includes development assets) and Pre-production. Capital allocation decisions for the production segment are considered in the context of the cash flows expected from the production and sale of crude oil. The production segment is comprised of the producing fields on the Tawke PSC (Tawke and Peshkabir), the Taq Taq PSC (Taq Taq) and the Sarta PSC (Sarta) which are located in the KRI and make sales predominantly to the KRG. The pre-production segment is comprised of discovered resource held under the Qara Dagh PSC, the Bina Bawi PSC and the Miran PSC (all in the KRI) and exploration activity, principally located in Somaliland and Morocco. Sarta asset was transferred from pre-production to production following the production commencement close to 31 December 2020, whereas capital expenditure incurred for the development of the field until production commenced is reported under pre-production segment. 'Other' includes corporate assets, liabilities and costs, elimination of intercompany receivables and intercompany payables, which are non-segment items.

For the 6-month period ended 30 June 2021 


 
                                                     Pre-production         Total 
                                          Production                Other 
                                          USDm         USDm             USDm      USDm 
Revenue from contracts with customers     147.4      -              -       147.4 
Revenue from other sources                4.1        -              -       4.1 
Cost of sales                             (103.4)    -              -       (103.4) 
Gross profit                              48.1       -              -       48.1 
 
General and administrative costs          -          -              (6.8)   (6.8) 
Operating profit / (loss)                 48.1       -              (6.8)   41.3 
 
Operating profit / (loss) is comprised of 
EBITDAX                                   129.8      -              (6.7)   123.1 
Depreciation and amortisation             (81.7)     -              (0.1)   (81.8) 
 
Bond interest expense                     -          -              (13.2)  (13.2) 
Other finance expense                     (0.8)      (0.4)          (1.3)   (2.5) 
Profit / (Loss) before income tax         47.3       (0.4)          (21.3)  25.6 
 
 
Capital expenditure                       34.6       23.6           -       58.2 
Total assets                              687.8      575.3          203.1   1,466.2 
Total liabilities                         (137.1)    (109.8)        (290.2) (537.1)

Revenue from contracts with customers includes USD46.5 million (30 June 2020: USD14.7 million, 31 December 2020: USD14.7 million) arising from the 4.5% royalty interest on gross Tawke PSC revenue ending at the end of July 2022 ("the ORRI"). As explained in note 2, no revenue has been recognised regarding to the ORRI from March 2020 to December 2020.

Total assets and liabilities in the other segment are predominantly cash and debt balances.

For the 6-month period ended 30 June 2020 


 
                                                       Pre-production         Total 
                                            Production                Other 
                                            USDm         USDm             USDm      USDm 
Revenue from contracts with customers       86.3       -              -       86.3 
Revenue from other sources                  2.1        -              -       2.1 
Cost of sales                               (99.3)     -              -       (99.3) 
Gross loss                                  (10.9)     -              -       (10.9) 
 
Exploration expense                         -          (1.3)          -       (1.3) 
Impairment of intangible assets             (44.3)     -              -       (44.3) 
Impairment of property, plant and equipment (242.0)    -              -       (242.0) 
Impairment of trade receivables             (34.9)     -              -       (34.9) 
General and administrative costs            -          -              (6.6)   (6.6) 
Operating loss                              (332.1)    (1.3)          (6.6)   (340.0) 
 
Operating loss is comprised of 
EBITDAX                                     71.6       -              (6.5)   65.1 
Depreciation and amortisation               (82.5)     -              (0.1)   (82.6) 
Exploration expense                         -          (1.3)          -       (1.3) 
Impairment of intangible assets             (44.3)     -              -       (44.3) 
Impairment of property, plant and equipment (242.0)    -              -       (242.0) 
Impairment of trade receivables             (34.9)     -              -       (34.9) 
 
Finance income                              -          -              1.6     1.6 
Bond interest expense                       -          -              (15.0)  (15.0) 
Other finance expense                       (0.9)      (0.1)          (0.3)   (1.3) 
Loss before income tax                      (333.0)    (1.4)          (20.3)  (354.7) 
 
 
Capital expenditure                         35.7       22.8           -       58.5 
Total assets                                617.9      618.6          327.7   1,564.2 
Total liabilities                           (95.2)     (150.8)        (312.5) (558.5)

Total assets and liabilities in the other segment are predominantly cash and debt balances.

For the 12-month period ended 31 December 2020 


 
                                                                               Total 
                                            Production Pre-production Other 
                                            USDm         USDm             USDm       USDm 
Revenue from contracts with customers       155.0       -              -        155.0 
Revenue from other sources                   4.7        -              -        4.7 
Cost of sales                                (186.0)    -              -        (186.0) 
Gross loss                                   (26.3)     -              -        (26.3) 
 
Exploration expense                          -          (2.2)          -        (2.2) 
Impairment of intangible asset               (44.3)     -              -        (44.3) 
Impairment of property, plant and equipment  (242.0)    -              -        (242.0) 
Impairment of receivables                    (34.9)     -             (2.0)     (36.9) 
General and administrative costs             -          -              (12.8)   (12.8) 
Operating loss                               (347.5)    (2.2)          (14.8)   (364.5) 
 
Operating loss is comprised of 
EBITDAX                                      127.0      -              (12.4)   114.6 
Depreciation and amortisation                (153.3)    -              (0.4)    (153.7) 
Exploration expense                          -          (2.2)          -        (2.2) 
Impairment of intangible assets              (44.3)     -              -        (44.3) 
Impairment of property, plant and equipment  (242.0)    -              -        (242.0) 
Impairment of receivables                    (34.9)    -              (2.0)     (36.9) 
 
Finance income                               -          -              2.0     2.0 
Bond interest expense                        -          -              (31.5)   (31.5) 
Other finance expense                        (1.6)      (0.3)          (20.8)   (22.7) 
Loss before income tax                       (349.1)    (2.5)          (65.1)   (416.7) 
 
 
Capital expenditure                          56.5       53.2           -        109.7 
Total assets                                 672.5      539.0          339.1    1,550.6 
Total liabilities                            (146.3)    (98.2)         (376.3)  (620.8)

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