Final Results

ENEGI OIL PLC

AIM ticker: 'ENEG'

OTC ticker: 'EOLPF'

21 December 2012

Enegi Oil Plc

("Enegi" or "the Company")

Results for the year ended 30 June 2012

Enegi, the independent Oil and Gas Company, today announces its results for the year ended 30 June 2012.

Highlights:

·; The Company has continued to deliver on its strategy of minimising risk concentration by expanding its portfolio

·; Awarded two licences in the North Sea which the Company believe are suitable for development using buoy technology - both licences already contain either a discovery or a prospect

·; Successfully completed work programme over prospective Clare Basin Licensing Option, Ireland with resources independently attributed to the block by Fugro Robertson Limited

·; Entry into a project to develop the Dead Sea and Wadi Araba block in Jordan with KGEC that is highly prospective

·; The Group has identified short and longer term modifications to the Garden Hill well and upgrades that they believe will first establish and then deliver incremental increases in stable production rates.

·; The Company raised £3.1 million, net of expenses, during the year through the issue of shares

·; Loss before tax for the year increased to £2,375,000 as a result of increased expenditure as the Company has been able to increase its activities because its financial position and prospects have improved.

Outlook:

·; New corporate structure to be implemented

·; Applying for Exploration Licence over Clare Basin acreage

·; Partnership with ABT to investigate further opportunities in the UKCS

·; Further opportunities being evaluated to deliver strategy of building a balanced portfolio

·; Further production projects to be added to the portfolio within a year

Alan Minty, CEO of Enegi, commented:

"We are delighted with the progress that the Company has made over the last 18 months.

Enegi has continued to deliver its strategy of building a balanced portfolio of real options and have added some highly prospective opportunities which bring significant value into the Company. The Board believe that with the work programmes across all our assets, the team we have in place combined with the portfolio of assets and other potential opportunities that we are evaluating, that the Company has never been in a stronger position.

We are excited about the year ahead and look forward to updating our shareholders as we progress."

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Qualified Persons

The information in this release has been reviewed by Barath Rajgopaul MSc (Mech. Eng.) C. Eng, a member of the Advisory Panel of Enegi. Mr. Rajgopaul has over 30 years' experience in the petroleum industry.

Chairman's Statement

This has been one of the most exciting periods for Enegi Oil Plc. ('Enegi' or the 'Company' or with its subsidiaries the 'Group'). We have started to build a significant portfolio of real options that we believe will provide the building blocks from which future growth and value will accrue, whilst continuing to work on our existing asset base in Newfoundland.

In the last 18 months Enegi has transformed itself from a company focused on a regional play in a single area, to one delivering on a strategy of building a balanced portfolio across all aspects of the exploration and production ('E&P') cycle in a number of different geographic areas. This is exactly in line with the strategy previously outlined by the Board, which we continue to refine as new opportunities are identified by the Management Team.

The portfolio we have created has significant value. The Board believes that the lack of recognition of this value is due to perceived issues surrounding the Group and some of its assets that are not necessarily accurate or relevant. Nevertheless, the Board believes that the Group has never had such a strong foundation and exciting portfolio of opportunities from which to grow, plus the means and understanding to achieve this growth.

Operational highlights

The Group has greatly enhanced its portfolio over the period, putting in place building blocks and generating opportunities from which it can grow, with projects continuing to be added to the portfolio, most recently in the North Sea and Jordan.

The Group has also continued to make progress across its lease and licences in Newfoundland, despite the ongoing logistical and infrastructure issues that have slowed progress at Garden Hill South. Whilst we are delighted to have had the onshore Production Lease extended for a further period of five years, the area renewed is significantly smaller than that we believe should have been granted to the Group under the renewal. With the help of Fugro Robertson Limited, data and models were produced, and ratified independently by AJM Deloitte, that indicate that there is a continuous reservoir (which we have named the Garden Hill Field) across the original lease area, supporting the case for renewal of a larger area. The Group is currently in discussions with the Department of Natural Resources ("DNR") of the Provincial Government of Newfoundland and Labrador over this matter and will provide further updates on this in due course.

The Group has continued to work over and test the Garden Hill Field with the aim of gaining stable production before assessing further development options. The Group has achieved revenue during the year since it commenced the testing programme. We have not yet achieved stable, continuous flow and this is largely due to a well completion, installed in 2009, that is not optimal for the workover results that we have received. The fundamentals of the reservoir that we announced in May 2012, with a connected oil and gas in place associated with Garden Hill South in excess of 61.5 million barrels STOIIP and 117 BCF GIIP, respectively remain strong. This means, though, that extra care has been required in developing the appropriate processes needed for stable production. This coupled with an operating environment in Western Newfoundland that can be difficult owing to lack of infrastructure and remoteness has caused problems. However, based on the results of the workover programme and ongoing testing, and with input from consultants who will assist in the implementation of these plans, the Group has identified short and longer term modifications and upgrades that the Company believes will build on current work to first establish and then deliver incremental increases in stable production rates. A key area of work at this stage is the evaluation of the feasibility of installing a downhole pump as part of the short term modifications, to provide artificial lift capacity that will facilitate sustained production with limited manual intervention, with a view to delivering such a solution in the next few months. In the meantime the Group continues to take actions and implement processes to restore regular production and are also commencing the environmental assessment work required to secure a licence for permanent production, with a target of Q1 2013 for approvals. The Company will look to provide further updates on progress and planning at site as appropriate.

The Group continues to believe in the potential of the Garden Hill project, a view that has been validated through the work of Fugro Robertson and AJM Deloitte as announced on 13 August 2012.

Furthermore, the Group retains the belief that the other assets in its Newfoundland portfolio are highly prospective. Enegi has continued to evaluate these assets and will produce compliant independent resource and reserve assessments on these licences; the Company is in discussions with independent consultants with a view to completing these assessments in the first Quarter of 2013 and believes that these reports will substantiate its opinion on the potential of these projects. We also continue to watch with interest the progress made by Shoal Point Energy ("SPE") on its work programme, which hopefully will lead to the award of a Significant Discovery Licence (SDL) over EL1070, of which the Group will own 100% of the deep zone containing the conventional Shoal Point lead.

Earlier this year, the Company applied for three licences in the 27th Seaward Licensing Round run by the UK Department of Energy and Climate Change ("DECC") and is delighted to have been awarded two blocks in October 2012. The applications that the Company made were based on the identification and evaluation of assets which we believe are suitable for development using buoy technology, with associated improved project economics. Each licence contains either a discovery or a prospect and both are identified as being in the optimum operating envelope for our partner ABTechnology's ("ABT") buoy technology. We believe that this technology is particularly appropriate for certain types of marginal field in the UKCS and look forward to taking these assets forward with ABT.

Our Clare Basin onshore block in Ireland is also proving to be an interesting and highly prospective asset. The Company has completed the required work programme and this has confirmed our initial belief that there is a viable development project, with a strong best case investment profile, and that given the maturity, thickness and buried depth of the shale, the whole area under the ON11/1 licensing option remains prospective for shale gas. The Company is delighted that this has been further substantiated by Fugro Robertson who have provided an independent preliminary resource estimate for the project highlighting the potential of the Clare Basin (further detail of which is provided in the Operational Review).

On 28 November 2012, the Company submitted a report to the Petroleum Affairs Division ("PAD") of the Department of Communications, Energy and Natural Resources in Ireland, as required under the terms of the licensing option, and we will be applying for a full exploration licence over our acreage prior to the expiry of the licensing option on 28 February 2013. The Company is pleased to be involved at such an early stage with this highly prospective project.

The opportunity in Jordan is also hugely exciting. Jordan is on trend with the oil and gas fairway that runs across Saudi Arabia and has predominantly been explored to date by the majors or larger oil and gas companies. We believe that the Dead Sea and Wadi Araba block is highly prospective and we look forward to working with our partner Korea Global Energy Corporation ('KGEC') to drill three exploration wells over the next four years across the block. The Enegi team will provide the technical and operational expertise for the partnership as we look to develop the licence area.

Developing a portfolio of real options

When Enegi listed, it was reliant on one operating region, Western Newfoundland, where the Company has continued to make progress albeit at a slower pace than we would have liked. The Company and Board, however, have continued to seek opportunities that fit Enegi's strategy and expertise whilst offering significant potential upside to the Company. The addition to the portfolio of our onshore asset in Ireland, the recent licence awards in the North Sea and the entry into the Dead Sea and Wadi Araba project in Jordan, with our partner KGEC, are exciting opportunities with inherent value. The Company has the ability, the technical team and funding methodology to deliver this value.

With the aim being to build a balanced portfolio of real options, the Company's current assets fall into the following categories:

1. Ireland: early stage exploration

2. North Sea: appraisal and development

3. Newfoundland: near term stable production, appraisal, development and exploration

4. Jordan: exploration, appraisal and development

The Board believes that it is imperative for small oil and gas companies to spread their risk across a portfolio of assets, both in terms of type of asset and to avoid over-reliance on one project/region. Enegi's current portfolio is a starting point from which the Company can deliver its portfolio-based strategy.

At this time, one fundamental part of the balanced portfolio across the whole E&P cycle is missing: continuous production. Whilst some limited production has been achieved, and we believe that in the short term more sustained production can be realised from Garden Hill, the delays in bringing the well into continuous production have meant that the Company cannot yet demonstrate self-sufficiency. The Board believes that the lack of production has created a "drag" effect on the Company's share price. The problem is compounded by the fact that the value of the opportunities that the Company is bringing into its portfolio is not being recognised due to the perception that the Company does not have the ability to bring them to fruition; this is not the case. The Company is, however, continuing to seek opportunities to further balance its portfolio by bringing in some additional production which will more than finance both the Company's ongoing requirements and work required to exploit opportunities that are currently in its portfolio or are actively under consideration. The Board has already identified potential projects and the Management Team is working on bringing them into the Company's portfolio. The Board expects that success will lead to a shift in market perception.

A key part of the strategy has been to deliver a portfolio that requires minimum capital outlay. This has continued to be at the forefront of the Company's thinking. Today the Company has an improved financial base from which to deliver its strategy and has continued to look at, deliver and implement innovative financing options to fund its current operations, recent additions to the Company's portfolio and future opportunities.

This type of strategy is not uncommon in larger E&P companies, and we believe that focusing on building a portfolio of real options, across the E&P lifecycle, with a balanced risk/reward profile will deliver growth and, ultimately, value for our shareholders.

Group Structure

In light of the portfolio of real options that the Company has created and continues to create, the Board has decided to review the current structure of the Company and its operations with a view to ensuring that the structure in place going forward is that most appropriate to the Company and its future strategy.

The Board plan to create a structure whereby the Company's projects will be placed in individual subsidiaries. Each of the subsidiaries would have an appropriately sized, dedicated, experienced management team responsible for bringing projects within that subsidiary to fruition. Initially it is envisaged that subsidiaries pertaining to Ireland, the UK North Sea and the Middle East and North Africa would be created, similar to that that already holds the Company's assets in Canada.

Enegi Oil Plc would remain as an existing "TopCo" over the subsidiaries and would continue to source new opportunities, in line with its strategy. These opportunities would then be assigned to existing or, where required, new subsidiaries. The TopCo would retain its experienced management team and would also be responsible for recruiting the dedicated teams for each of the subsidiaries.

This structure is planned to be implemented in the coming months and we will update the market as this progresses.

Board and Advisory Panel

During the period we have continued to build on the expertise that is available to the Company, both from an industry as well as a corporate perspective, through strengthening our Board and creating the Advisory Panel. I would like to thank them for their input over the last year and look forward to continuing to work with them with a view of delivering our strategy in the future.

In addition, we have added to the Management Team, with the appointment of a Director of Communications, a role that we believe will be critical in implementing the communications strategy that must accompany the expansion of the Group's portfolio.

Outlook

This has been a tremendous period for the Company as we have added some very significant real options to our portfolio of assets. We now have a portfolio that provides the Company with a solid base from which to build and, with the production we expect to gain, to substantially grow. Whilst adding to our portfolio we have also continued to progress our Newfoundland assets and are pushing ahead with Garden Hill to rectify the historic issues and look to deliver the full potential of this project.

Achieving a balanced portfolio of opportunities is the Company's goal. Whilst what we have completed in the last year goes some way towards achieving this objective, the Company continues to review other exciting opportunities that the Board believe could provide further significant growth opportunities in the future with minimum risk exposure. The Company will also continue to review its existing operations with a view to maximising returns whilst minimising the Company's risk profile.

This is a very exciting time for Enegi. We have built a highly prospective portfolio of real options with significant potential which the Company, with its new structure in place, is looking to realise over the next year to ensure that the inherent value we believe exists across our portfolio is appropriately reflected for our shareholders in our share price.

Alan Minty

Chairman

Operational and Financial Review

Newfoundland

Garden Hill South

Operationally, the Group has continued to workover and test the PAP#1 ST#3 well with a view to progressing the Garden Hill development and gaining stable production. A great deal of work has been carried out in the last 18 months and we will continue to seek the best results from this well as well as assessing how to get the best overall return from the field.

The workover programme and testing have continued throughout the year and infrastructure and logistical issues, especially in the last six months, have frustrated the team. However, the Company remains positive about the potential of the project - during testing earlier this year we were pleased to see that there had been no pressure depletion and McCaffrey Consulting Services Ltd's view was that the connected oil and gas in place associated with Garden Hill South is in excess of 61.5 million barrels STOIIP and 117 BCF GIIP, respectively.

The operating environment in Western Newfoundland can be difficult owing to lack of infrastructure and remoteness and at times this has caused problems. However, based on the results of the workover and the ongoing testing programme and with input from consultants who will assist in the implementation of the Group's plans, the Group has identified short and longer term modifications and upgrades that they believe will build on current work to first establish and then deliver incremental increases in stable production rates. A key area of work at this stage is the evaluation of the feasibility of installing a downhole pump as part of the short term modifications, to provide artificial lift capacity that will facilitate sustained production with limited manual intervention, with a view to delivering such a solution in the next few months. In the meantime the Group continues to take actions and implement processes to restore regular production and are also commencing environment assessment work required to secure a licence for permanent production, with a target of Q1 2013 for approvals. The Group will look to provide further updates on progress and planning at site as appropriate.

Whilst we are delighted to have had the onshore Production Lease extended for a further period of five years, the area renewed is significantly smaller than that that we believe should have been granted to the Group under the renewal. With the help of Fugro Robertson Limited, data and models were produced, and ratified independently by AJM Deloitte, which indicate that there is a continuous reservoir (which we have named the Garden Hill Field) across the original lease area, supporting the case for renewal of the larger area. The Group is currently in discussions with the Department of Natural Resources ("DNR") of the Provincial Government of Newfoundland and Labrador over this matter and will provide further updates on this in due course.

The Group continues to believe in the potential of the Garden Hill project, a view that has been validated through the work of Fugro Robertson and AJM Deloitte as announced on 13 August 2012.

EL1070

The Group has continued to monitor the work programme currently being undertaken by Shoal Point Energy ("SPE") which, it is hoped, will result in an application for an SDL over EL1070. If the SDL is awarded, the Group will undertake the assessment and possible development of the conventional Shoal Point lead.

EL1070 was due to expire in January 2011, but has remained in force due to the fact that SPE commenced the drilling of the 3K-39 well prior to the expiry date. SPE confirmed, in their announcement on 16 August 2012, that it is proceeding with its plans to drill a sidetrack well on the licence to test the hydrocarbon reservoir potential of the Green Point Shale (following issues experienced during drilling of the original 3K-39 well). SPE is also planning to drill two wells in 2013 on its adjoining lands. The Company has been in contact with SPE with a view to clarifying the timetable for this process.

The Group also continues to update its internal model on the reservoir in order to assess the resources that should be attributed to it. Once completed the Group will be engaging the appropriate independent body to review this model with a view to producing a NI 51-101 compliant reserves and resources report.

EL1116

During the period, the Group has continued work on the development of the exploration plan for this licence. Focus is currently on the re-evaluation of existing seismic lines over the St. George's Bay lead, originally identified by Hunt Oil, which is an extension of the Garden Hill trend. This is expected to be completed in the first quarter of 2013 and will allow the Group to further define the exploration plan (including, potentially and if required and justified, the acquisition of new seismic data over the area) and/or appraisal programme. The Group is highly encouraged by initial results of the evaluation of the area.

Ireland

Enegi was awarded the Clare Basin Licensing Option, covering some 495 sq km, on 14 February 2011. Excellent progress has been made across this option area and the Company was pleased to announce that it has successfully completed the required work programme.

The key objectives of the work programme were to procure and evaluate existing technical data and obtain and analyse new samples to develop a provisional assessment of the potential of the option area.

The Company was pleased to announce that results of the work programme indicate that, given the maturity, thickness and buried depth of the shale, the Clare Basin remains prospective for shale gas. The studies undertaken also showed an area in the centre of an existing seismic grid, consisting of 130 line kilometres of 2D seismic, as being particularly high grade, based on the thickness of the shale and lack of faulting present.

As required under the terms of the Option, Enegi submitted on the 28 November 2012 a report summarising the studies and analysis that the Company carried out to the Petroleum Affairs Division of the Department of Communications, Energy and Natural Resources ("PAD"). In order to gain a fuller understanding of the potential of the region the Company also engaged Fugro Robertson ("Fugro") to prepare an independent estimate of in place resources within the acreage covered by the Option. A number of shale gas plays were evaluated and reviewed by Fugro during this process, with the Marcellus and Woodford gas shales identified as potential analogues due to similarities in properties and recent data indicating successful production from them. Based on detailed analysis of the area within the seismic grid and comparison with the Marcellus and Woodford analogues, Fugro provided the following preliminary resource estimates:

·; 3.62 trillion cubic feet ("TCF") of free gas initially in place ("GIIP") within the seismic grid coverage, based on a most likely porosity of 7%, with 1.23 TCF of that being in the area identified as high grade.

·; 1.55 TCF GIIP within the seismic grid coverage for a minimum porosity case of 3%, of which 526.4 billion cubic feet falls within the high grade area.

·; Corresponding estimates for the entire Option area of 13.05 TCF GIIP (most likely) and 5.59 TCF (minimum case).

·; Total recoverable resource estimates for the Option area of between 1.49 TCF and 3.86 TCF.

On the basis of these resource estimates Enegi has also undertaken some preliminary economic analysis which has confirmed the viability of the proposed development project with a strong best case investment profile.

The Licensing Option expires on 28 February 2013, and based on the findings of the Company's analysis and studies as well as Fugro's report, Enegi intends to apply to the Minister before that time for an Exploration Licence for the areas covered by the Option.

Jordan

The Company is delighted to be involved in a project aimed at developing the Dead Sea and Wadi Araba block in Jordan with KGEC, which provides the Company with an excellent opportunity from which to build in the future.

The Dead Sea and Wadi Araba block is approximately 6,800 sq km in size and is on trend with the oil and gas fairway that runs across Saudi Arabia and has predominantly been explored to date by the majors or larger oil and gas companies.

An initial work programme for the area is being developed, which will involve the evaluation of technical data and the acquisition of new geophysical data. It is also expected that at least three exploration wells will be drilled within four years on the block. Enegi, as Duty Holder, will provide all the technical and operational expertise into the development of the area. KGEC has also secured access to US$100 million and will provide the funding required to explore, appraise and develop this block.

The licence for the block is expected to be fully approved by the Council of Ministers and ratified by Parliament in the early months of next year.

North Sea

The Company was delighted to be awarded two licences in the 27th Seaward Licensing Round for the UKCS by the UK Department of Energy and Climate Change. Applications for the two licences that Enegi has been offered were made based on a thorough identification and evaluation of assets that, in the Company's opinion, were suitable for development using buoy technology. The Company believes that both licences are in the optimum operating envelope for ABT's buoy technology and that this technology offers the best chance of commercialising these assets. Whilst conventional development solutions may not be economically feasible on these licences, appropriate technology such as that offered by ABT changes the economics significantly.

Block 3/23 is located in the south-west margin of the East Shetland basin and contains the Malvolio prospect. This is a Paleocene appraisal opportunity within the upper Montrose Group sand. The Malvolio prospect is in water depth of 397 ft and is some 48 km from the nearest existing infrastructure and as such is considered to be isolated; however the STOIIP, as supplied by DECC, is between 153 and 326 MMBBL with a minimum and maximum unrisked recoverable range between 44 and 97 MMBBL.

Block 22/12b is located in the Forties-Montrose High area of the Central North Sea and contains the Phoenix discovery. A discovery well was originally drilled by Shell and showed a 30 ft oil column in the Forties Sandstone Member, a proven producer in nearby fields such as Forties, Nelson and Montrose. The discovery is a low relief dip closed structure in water depths of 295 ft. Internal estimates of unrisked STOIIP range between 15 and 99 MMBBL, with unrisked recoverable resources of between 9 and 51 MMBBL. DECC have classified the Phoenix field as a Significant Discovery, meaning that the field could have achieved flow rates in excess of 1,000 BOPD.

The Company plans to access additional data on both areas, confirming the feasibility for developing the blocks using buoy technology. Enegi is operator of both licences with a 100% interest in each.

The Company is also continuing to evaluate with its partners other suitable assets in the North Sea that may become available through future licensing rounds or are existing assets currently under licence to other operators.

ABT

The focus of the partnership during the period was predominantly the 27th Seaward Licensing Round and subsequent successful awards. The partnership has also continued to review the market for the application of buoy technology including discussing with other North Sea operators the feasibility of adopting this technology on currently licensed assets. The Company believes the buoy technology is particularly appropriate for certain types of marginal field, providing significant capital reductions, and looks forward to continuing its close relationship with the ABT team to both develop our own North Sea assets and seek new opportunities for application of the technology.

Commercialisation opportunities

As outlined in the Chairman's Statement the Company is continuing to seek ways of delivering on its strategy of creating a balanced portfolio of assets across the E&P value chain. The Company continues to appraise a number of interesting opportunities, aligned to its portfolio and expertise, which could add to its portfolio and that can be enhanced, delivering growth to the Company and value to its shareholders. This is not limited to bringing in new ventures, but also applies to the review of assets currently held by the Company. As outlined in the Company's announcement dated 13 June 2012, and as a way of ensuring that all avenues to deliver value are considered, Enegi is continuing to take actions to determine the external interest in the Company's western Newfoundland assets. Whilst no decisions have been taken as yet the Management continues to believe that this is a highly prospective region that could appeal to other operators.

The Company is currently particularly focused on bringing continuous production into the portfolio, which will provide a further conduit by which the Company can deliver value from other projects in the Company's current portfolio of opportunities. The Company expects to have achieved this before the end of 2013.

Financial review

Revenue

Revenue of £204,000 was generated during the year ended 30 June 2012 as part of the testing of the PAP#1 well at Garden Hill South (2011: £nil).

Loss before tax

Loss before tax for the year was £2,375,000 (2011: £1,454,000). The reason for the increased expenditure during the year is that the Company has been able to increase its activities as its financial position and prospects have improved. The Company has taken on additional personnel at Board level and at Garden Hill South to manage increased activity and in addition to new personnel, we have also expended an additional £236,000 in conducting operations at site.

Statement of Financial Position

The consolidated statement of financial position for the group is shown on page 29. Group net assets at 30 June 2012 were £7,514,000 (2011: £6,118,000). The raising of funds and conversion of related party balances totalling £3,753,000 is mainly responsible for this movement offsetting the loss for the year.

At 30 June 2012, the Group had cash balances of £2,116,000, compared to £175,000 at 30 June 2011. The Group had trade and other payables of £1,777,000 at 30 June 2012 (2011: £1,760,000). These cash balances when considered with the additional information provided in Note 1 to the financial statements allow the Directors to conclude that the Group and Company should be treated as a going concern.

Cash flows

Cash inflows for the year were £1,968,000 compared to a net inflow of £118,000 in 2011. This is mainly as a result of the Company raising £3.1m, net of expenses, during the year.

Future funding and capital requirements

The Directors' believe that the financing secured from fundraising activities provides sufficient investment to bring the PAP#1 well at Garden Hill South onto commercial production providing comfort to the Directors' around going concern.

CONSOLIDATED INCOME STATEMENT

For the year ended 30 June 2012

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME / (EXPENSE)

For the year ended 30 June 2012

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 30 June 2012

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the year ended 30 June 2012

CONSOLIDATED STATEMENT OF CASH FLOW

For the year ended 30 June 2012

Basis of presentation

The consolidated financial statements of the Group have been prepared in accordance with International Financial Reporting Standards as adopted by the European Union (IFRSs as adopted by the EU), the Companies Act 2006 that applies to companies reporting under IFRS, and IFRIC interpretations. The consolidated financial statements have been prepared under the historical cost convention.

Basis of consolidation

The Group applies the acquisition method to account for business combinations. The consideration transferred for the acquisition of a subsidiary is the fair value of the assets transferred, the liabilities incurred to the former owners of the acquiree and the equity interests issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The Group recognises any non-controlling interest in the acquiree on an acquisition-by-acquisition basis, either at fair value or at the non-controlling interest's proportionate share of the recognised amounts of acquiree's identifiable net assets.