Preliminary Results

Ophir Energy plc

Preliminary Results for the year ended 31 December 2011

London, 21 March 2012: Ophir Energy plc ("Ophir" or the "Group") announces its Results for the year ended 31 December 2011.

Key Financial and Corporate Events:

·; In July 2011, Ophir completed a US$383.9 million listing on the Main Board of the London Stock Exchange

·; 2011 year end cash balance of US$396.6 million

·; Recommended offer to acquire AIM-listed Dominion Petroleum Ltd expanding the Group's East African portfolio, completed in February 2012

·; Nine well drilling campaign in 2012 ; preparations underway for a planned twelve well campaign in 2013

Key Operational events:

Tanzania:

·; Three-well operated drilling campaign in Tanzania completed in April 2011, resulting in three significant gas discoveries: Pweza-1 and Chewa-1 in Block 4 and Chaza-1 in Block 1

·; Tanzanian acreage position expanded from 3 to 5 blocks: Farm in for 70% operated interest in the coastal East Pande Block; acquisition of 80% operated interest in Block 7

·; Significant new seismic datasets acquired: 5,000km2 of 3D seismic was acquired on Blocks 1, 3 and 4; 2200 km2 3D seismic acquired in East Pande and additional 2D acquired on Block 7

·; Second multi-well drilling campaign commenced in December under the Operatorship of BG, with results from Jodari-1 well due in late March 2012

·; Currently acquiring a 3D seismic survey in Tanzania Block 1 to explore the possible extension of the Rovuma Delta Basin Floor Fan play across from Anadarko and ENI's discoveries in Mozambique into adjacent Block 1. Initial results anticipated mid-year

Kenya:

·; Acquisition of 60% operated stake in block L9 and 100% operated stake in block L15

·; 3D seismic acquisition currently underway in L9

Gabon:

·; Farm out to Petrobras of 50% stakes in the Mbeli and Ntsina Blocks for carried work program

·; Two 3D seismic programs completed to support both a pre-salt well with Petrobras in late 2012 on the Mbeli and Ntsina licences and a potential farmout of the Manga and Gnondo licences

Equatorial Guinea

·; Eirik Raude rig contracted for a three-well drilling program in Block R, Equatorial Guinea

·; Three firm and -one contingent well drilling program to commence in May targeting further gas discoveries to aggregate into an LNG development

AGC:

·; Farm out of 8.8% equity to FAR Limited and subsequent farm out of a further 17.5% equity to Noble Energy Inc ('Noble')

·; Kora-1 playfinder exploration well completed post balance sheet was plugged and abandoned as an unsuccessful exploration well

Nick Cooper, CEO, Ophir Energy said:

"2011 was a transformational year for Ophir. The Group successfully completed a $384mm IPO during a period of difficult market volatility. The Group has since joined the FTSE 250 and has commenced the busiest operational program in its history with a nine well program in 2012.

After the acquisition of Dominion Petroleum Ltd, Ophir's East African portfolio position has grown such that the Group is now the largest acreage holder in the fast evolving offshore East African play. This compliments the Group's extensive portfolio of interest in West Africa and enables Ophir to be an active driller on both sides of the continent in 2012 and beyond.

Looking into 2013, early stage preparations are already underway for a further twelve wells across our core countries.The Board looks to the future with confidence and excitement."

Enquiries

Further information

Ophir (OPHR.LN) is an Africa-focussed upstream company that listed on the London Main Board in July 2011.

For further information and for a copy of this announcement :: www.ophir-energy.com 

The financial information included in this report has been extracted from the Group Financial Statements for the year ended 31 December 2011. These are not approved statutory accounts and as yet unapproved.

The auditors have reported on the 2011 interim Financial Statements and they have previously issue issued a report for the 2010 satements which was not qualified but contained an emphasis of matter.

The statutory accounts for 2011 will be delivered to the Registrar of Companies following the Company's Annual

General Meeting.Chairman's and Chief Executive Officer's Joint Review

Corporate Overview

2011 saw Ophir successfully list on the main board of the London Stock Exchange. Ophir joined the FTSE 250 in November 2012. The IPO was set against a backdrop of turbulent capital markets and relatively low levels of new equity issuance and Ophir ended the year as the best performing IPO stock for 2011.

In October 2011 Ophir announced a proposal to acquire the share capital of AIM-listed Dominion Petroleum Ltd in an all-stock transaction. The acquisition closed in February 2012 and expanded the Group's portfolio in East Africa via the addition of five exploration licences, with three being complementary to Ophir's existing deepwater portfolio. As a result Ophir now has one of the largest portfolio's of operated and non-operated acreage in the exciting emerging offshore East African play.

Operationally, 2011 saw two wells completed. The Chewa-1 well in Tanzania was the third in a series of back-to-back gas discoveries in Tanzania. The Kora-1 well in the AGC joint development area was unsuccessful but costs were mitigated through a series of farmout agreements. In 2012 the Group is undertaking the busiest drilling program in its history, with drilling underway in Tanzania, a rig procured for an imminent program in Equatorial Guinea and nine wells expected to be spudded by the end of the year. Preparations are also underway for a twelve well program in 2013, contingent on additional financing . Ophir ended 2011 with net contingent (2C) resources of 210  mmbboe and netrisked prospective resources of 1,882 mmboe.

Portfolio Management

Ophir continues to actively manage its portfolio to best deploy its capital resources against the most prospective acreage and plays. In 2011 the Group farmed out interests in the Mbeli and Ntsina licenses in Gabon to Petrobras and an interest in the AGC Profond license to Noble Energy. The Group acquired interests in the East Pande license in Tanzania by way of a farm-in agreement with RAKGas and acquired five further exploration interests via the Dominion transaction in Block 7 (Tanzania), Blocks L9 and L15 (Kenya), Area 4B (Uganda) and Block 5 (DRC). Ophir currently has interests in 22 licences in 11 countries and jurisdictions, 14 of which are operated, 18 of which are offshore and 4 of which are onshore.

Financial

2011 was dominated by Ophir's IPO, which raised a total of $384mm inclusive of the greenshoe. The IPO provided the Group with a strong cash position of $396.6mm at year end.We will continue to source alternative funding options which have the potential to raise additional finance sufficient to fund forecast expenditure for at least the next 12 months.

Board, Management and Staff

The evolution of Ophir's Board during 2011 reflects the transition to being a public company. During 2011 Dr Nick Cooper, Mr Ron Blakely and Mr Patrick Spink joined the board while Mr Michael Cohen, Mr Mikki Xayiya, Ms Yvonne Holm and Mr John Morgan departed. On behalf of the Board and shareholders the Chairman has thanked those that served on the Board for their contributions and has welcomed those that join the Board as we embark upon the next stage in Ophir's growth.

Ophir's senior management team was expanded in June 2011 with the appointment of Dr Nick Cooper as Chief Executive Officer, replacing Dr Alan Stein who held that position since formation of the Group in 2004. Alan remains an active member of the Executive team but has signalled his intention to step down from the Board after the AGM in June 2012. In November 2011, Yvonne Holm resigned from her position of Chief Financial Officer and in January 2012, Lisa Mitchell, previously Ophir's Group Financial Controller, was appointed to the role.

At the heart of our Group is a small yet dedicated and extremely professional group of staff and associates who have consistently delivered outstanding performance. This last year has seen the team raise the bar once again. Their tireless efforts might sometimes pass without comment but they are always appreciated. On behalf of the Board and shareholders we would like to offer them our thanks and admiration for another outstanding year for the Group.

This year of performance has been delivered without compromising on safety and we are pleased to report no lost time accidents or reported incidents across the diverse range of operations undertaken across the African continent in often challenging conditions

Corporate Responsibility

Corporate Responsibility forms a key part of Ophir's operating culture. The Group strives to make a positive impact in the development of the countries in which it operates. Ophir's goal is to establish a sustainable, balanced approach to its business which includes assisting local communities wherever possible through such initiatives as education, protection of the environment and the creation of broad, lasting economic development. We understand that by taking a pragmatic, long term, positive approach to corporate responsibility it will provide lasting dividends to the Group and the countries in which we operate.

In Tanzania, Ophir has continued to be actively involved in the development of Mtwara port (and its attendant services). Ophir was responsible for the initial development of this facility in partnership with the Tanzanian authorities. In 2011 the port development scheme expanded rapidly as more oil and gas operating companies joined Ophir, resulting in the transformation of a previously underutilised port into a thriving operations base which has subsequently received 'Duty Free' status to underscore its importance to the development of the Mtwara region. There has been a large positive impact in the local economy as the community shares in this development through training, employment and improved infrastructure. In December 2011, parts of the main city of Dar es Salaam suffered severe flooding, making many citizens homeless. Ophir assisted relocation efforts by swiftly donating 30 large water storage tanks to the victim's resettlement site. This initiative secured adequate sanitation and was vital to reduce disease risk for the flood victims whilst in in their temporary accommodation.

In Equatorial Guinea, Ophir continued its support of a nursery school in the village of Ebein Yenkeng. The Group also donated funding for a training seminar on social content which was provided to members of the Ministry (MMIE) in Malabo. In addition, Ophir contributes to the Equatorial Guinean Hydrocarbon Technological Institute Educational Programme ("ITNHGE"), a collaborative educational initiative run for the benefit of adult students in Equatorial Guinea.

Outlook

The oil and gas industry's focus on African exploration has risen dramatically in 2011 and early 2012. The pace of activity on both the East African offshore gas play and the West African pre-salt play have increased as major oil companies have entered the region and made significant discoveries. This has had important implications for Ophir's portfolio.

In the East African gas play Anadarko, and ENI are reported to have discovered more than 40 TCF of gas in Mozambique with the majority being found in extensive basin floor fans. This play has not yet been tested in Ophir's Tanzanian acreage but it is thought to potentially extend into Block 1 and possibly Block 3. A new 3D seismic survey is currently being acquired in Block 1 to test this concept and initial results are anticipated mid-year.

In the adjacent Tanzania Block 2 Statoil's recent Zafarani-1 discovery appears to have de-risked elements of the deeper Cretaceous play potential within Ophir's acreage. Some of the wells in Ophir's 2012 drilling program will also test these deeper plays.

The industry's appetite for the East African offshore gas play has been clearly demonstrated by the competitive bidding to acquire AIM-listed Cove Energy which has an 8.5% stake in the Anadarko operated block in Mozambique, to the south of BG / Ophir's Block 1. If this appetite is sustained then it affords Ophir a degree of flexibility both in the way that it finances its exploration and appraisal activities in the play, and in the way that it secures value for shareholders.

The Group now has one of the largest acreage footprints in East Africa. In addition to the wells currently being drilled by the Ophir/BG joint venture in Blocks 1,3 and 4, offset wells with relevance to Ophir acreage will be drilled in the next few months by Petrobras and Statoil in Tanzania, Anadarko and ENI in Mozambique and Apache in Kenya.

In West Africa, considerable recent success has occurred in the deepwater pre-salt play with notable successes by both Cobalt and Maersk in Angola. Ophir has a strong acreage position in this deepwater play, with four licenses in Gabon and one in Congo-Brazzavile. In Gabon, the Group has recently completed two seismic programs that will support both a pre-salt well with Petrobras in late 2012 on the Mbeli and Ntsina licences and also potential farmouts of the Manga and Gnondo licences.

In 2012 Q2, the Group will commence a three well program in Equatorial Guinea targeting further gas discoveries to aggregate into an LNG development. Already the Group is planning for a further twelve well program in 2013 contingent on additional financing.

The outlook for Ophir in 2012 is promising. The Group enters 2012 with an extensive portfolio of interests across some of the most interesting exploration plays in Africa. The Group will continue to fund its activities through a combination of portfolio management and the capital markets.

Review of Operations

2011 was another strong year for Ophir's Operations team with the completion of a successful, operated drilling campaign in Tanzania and the completion of a well drilled in the AGC. To date Ophir has now operated nine deepwater wells in four countries with five of them resulting in commercial discoveries.

The process of replenishing the portfolio of drilling targets continues through the acquisition of a series of 3D seismic programs. At year end acquisition had commenced in both Tanzania (East Pande) and Gabon (Mbeli and Ntsina) with preparations under way for further seismic acquisition in Gabon (Manga and Gnondo). These programs will allow additional prospects to be matured for future drilling campaigns during 2012 and 2013.

In addition, planning and contracting had commenced for the second Equatorial Guinea drilling campaign which is currently due to commence in Q2 2012. This program, which will include a well in the expanded Block R area, will be designed to prove sufficient gas volumes to underpin an LNG development.

Tanzania (Blocks 1, 3 and 4)

The Ophir-operated three well program which commenced in 2010 and was completed in 2011 has confirmed the prospectivity of the Ruvuma and Mafia Deep basins and has proven the presence of potential reservoir facies in both the Tertiary and Cretaceous stratigraphic sequences. The success in Blocks 1, 3 and 4 has, together with the discoveries by other Operators in adjacent acreage, opened up the East African play system and focussed industry attention on the area. Ophir has a significant acreage position in the play and a significant inventory of prospects which will underpin future exploration and appraisal campaigns. At the end of 2011, these are believed to contain more than 30 TCF(1) in gross un-risked prospective resources.

Each of the three Tanzanian deepwater wells have demonstrated the presence of multiple play systems, all with significant follow-up potential. Although each has encountered gas, the Group believes that, based upon detailed technical studies, liquids are also possible in the future. These studies have characterised a number of potential hydrocarbon source rocks, ranging in age from Permo-Triassic to Eocene. The three wells drilled to date have targeted the centre of the basin, where the main source intervals have been buried to a sufficient depth to generate gas (the "gas window"). To the east and west of this, the Group believes that the source intervals are less deeply buried and thus cooler. In these areas (the so-called "oil window") the organic rich material ("kerogens") in the rock may have generated liquids.

The Ophir-operated "Deepsea Stavanger" drilling campaign, which had commenced in 2010, continued into 2011 with further success at Chaza-1 in Block 1. The well was drilled in 982m of water, reached a TD at a depth of 4,933m and was completed as the third consecutive successful gas discovery in the program. Chaza-1 encountered a gross 27m gas column in a Miocene channel system and, together with the discoveries at Pweza-1 and Chaza-1, takes the total contingent resources discovered in Blocks 1, 3 and 4 to 2.4TCF with a further 1.6TCF of low risk prospective resources.

(1) management estimate

Each of the three discoveries had an associated amplitude seismic anomaly which was interpreted to be a Direct Hydrocarbon indicator ("DHI"). Data from the wells has now been used to further calibrate the seismic attributes. This analysis will be used to further de-risk the exploration portfolio and focus the future drilling program.

Blocks 1, 3 and 4 are large, with a combined area of more than 20,000 km2 after the statutory relinquishments. The original 3D Kusini and Mafia 3D seismic program covered 3,500 km2 and delineate only a small portion of the possible play types. As a consequence a further seismic acquisition program was planned outboard of the Mafia survey in Blocks 3 and 4 across the "Seagap Ridge", a long-lived feature within the basin which it is believed could be the focus of both oil and gas generation and migration. A further survey was also planned northwest of the Kusini survey in Block 1 to test the extension of the play system proven by Chaza-1. The second seismic program operated by Ophir, which utilised the Fugro "GeoCaspian" vessel, commenced during January 2011 with acquisition of the Mafia East seismic survey in Blocks 3 and 4 where 3,250 km2 of data were acquired in 44 days. The vessel subsequently moved to Block 1 where it acquired 1,900km2 of data in 35 days on the Kusini extension survey. The program was completed on 8th April 2011 and the GeoCaspian released with no LTI's or security-related incidents. Pre-stack Depth Migration processing of these surveys was completed during the year and the data has been used to mature additional exploration prospects for inclusion in future drilling campaigns. Even after these new surveys, less than half the area of the 3 PSAs has been covered with 3D data and further seismic acquisition is anticipated during 2012.

The Group was originally awarded a 100% interest in Block 1 on 29th October 2005. Blocks 3 and 4 were subsequently awarded on 19th June 2006, again on 100% basis. TPDC has back-in rights of 12% in Block 1 and 15% in Blocks 3 and 4.

In April 2010 the Group entered into a farm-out agreement with BG Group for 60% interest in each Block, with Ophir retaining the remaining 40%. Under the terms of the farm-out agreement BG had the right to take over Operatorship after the completion of the first three wells and the Mafia East/Kusini Extension 3D seismic acquisition program and consequently on July 1st 2011 operatorship of all three Blocks was formally transferred to BG. As part of this arrangement BG also took over operatorship of the Mtwara port facility on behalf of the other participating operators (Ophir, Petrobras and Statoil). During 2011 the base has been upgraded to accommodate multiple operators working simultaneously.

Ophir shares BG's optimism about the commerciality of the discoveries and the Joint Venture has commenced development planning for a two train onshore LNG facility In Tanzania. Screening work has begun to identify a potential site for an onshore LNG export facility and environmental assessments will commence during 2012.

Further drilling is required to quantify the scale of the hydrocarbon resource and the dynamically positioned dual derrick semisubmersible rig "Metro-1", which is owned and operated by Odfjell Drilling, was consequently secured for an extendable 12 month contract for a second drilling campaign. The rig was mobilised from Singapore on 8th December 2011 to commence the 2012 drilling program. The initial program is designed to test new play systems in the basin. The initial program consists of three wells; Jodari-1 (formerly named 1V), Mzia-1(formerly 1W), and Papa-1 (formerly 3A). A further two wells are expected to be spud during 2012 and the program will continue into 2013.

Tanzania (East Pande)

Ophir completed its farm-in to the 7,500 km2 East Pande Block on 29th March 2011. The Group now holds 70% equity, with Rakgas holding the remaining 30%, and Ophir has assumed operatorship of the Block. East Pande lies to the west of Blocks 1, 3 and 4 and is believed to contain the up-dip extension of the currently identified Tertiary and Cretaceous intraslope play systems, some of which have been proven in the deep water. Regional geoseismic studies suggest that the East Pande Block's location towards the rim of the basin may to be mature for liquids and gas generation.

The 2D seismic data coverage in the Block is sparse at present although a number of potentially attractive leads have been identified at different stratigraphic levels. These leads are potentially large with volume estimates in excess of 500mmbbls but are currently high risk due to the limited data coverage. A 12-month extension to the permit term was granted to allow Ophir sufficient time to acquire, process and interpret a 3D seismic survey with a view to entering the next PSA term and a future drilling program.

At year end the contracting process was completed and Fugro were mobilising the MV "Geo Caribbean" to acquire a 2,100km2 3D survey. Data from this survey should be available in the first half of 2012 to facilitate a drilling campaign late in 2012 or early in 2013. Any discoveries in East Pande are likely to be close to the export pipeline which will be used to transport gas to any future onshore LNG plant supplied from Blocks 1, 3 and 4.

Equatorial Guinea (Block R)

Block R is located in the south eastern part of the Niger Delta, close to numerous oil and gas discoveries in the Nigerian sector. The licence, which covered an area of 1,674 km2 at the start of 2011, was originally awarded in April 2006. Ophir drilled three wells on the Block in 2008, two of which (Fortuna-1 and Lykos-1) were commercial gas discoveries. The discoveries at Fortuna (269bcf of contingent resources, 572bcf of risked prospective resources) and Lykos (91bcf of contingent resources, 60bcf of risked prospective resources) have substantially de-risked a new play fairway at the front of the Niger Delta thrust belt. These discoveries, together with the additional 10 TCF of unrisked prospective resources which had been identified prior to the addition of the former Block C, will, it is believed, be sufficient for a commercial export gas development. The gas is dry, with no CO2 or H2S, making it ideal for liquefaction.

Equatorial Guinea has an established 3.4mmtpa LNG plant at Punta Europa (EGLNG 1) that is operated by Marathon with Sonagas, Mitsui and Marubeni as JV partners. Gas is transported from the Alba Field (Operated by Marathon with Gepetrol as a JV partner) by pipeline to the Punta Europa plant and the resulting LNG is sold to BG through a sale and purchase agreement where it is marketed to the far-east. The Government of Equatorial Guinea believe that sufficient gas has been discovered in the country to warrant a second LNG train and have publically expressed their support for a second onshore plant, to be built adjacent to Train 1. The feedstock gas for this is likely to come principally from Block R, although the recent discoveries which have been made by Noble Energy in Block I may provide additional gas to the project over time.

Significant progress was made during 2011 on the commercialisation of the Fortuna and Lykos gas discoveries. The Government of Equatorial Guinea ("GEG") has established a project delivery team ("PDT") who will be accountable for ensuring that the gas resources in the country are developed effectively. This team consists of representatives from the Ministry of Mines, Minerals and Energy (MMIE), the National Oil Company (GePetrol) and the national gas company (Sonagas). A Memorandum of Understanding (MoU) was signed on 31 March 2011 by the relevant stakeholders, including Ophir, committing to support the favoured development plan, which would see gas from Block R transported by a sub-sea pipeline to a newly constructed second LNG train at Punta Europa on Bioko Island. Subsurface and engineering studies have commenced on this.

To increase commercial optionality, Ophir has also explored the possibility of an alternative development utilising floating LNG ("FLNG") technology. The dry nature of the gas, together with the benign metocean conditions in the Gulf of Guinea, makes this an ideal location for such a development. Ophir believes that FLNG technology is now sufficiently advanced to provide a viable alternative to a conventional onshore LNG scheme. It will continue to be carried as an alternate option until the project Final Investment Decision ("FID") which is currently planned for 2013. The current exploration term was extended by 12 months and now expires on 18th April 2013. This provides additional time for Ophir to carry out further exploration and appraisal drilling prior to the end of the exploration period. A further step in the commercialisation process occurred in November 2011 when Block C (located ;to the northwest of Block R) was appended to Block R. The additional new acreage, which covers an area of 773 km2, increases the area of Block R to 2447km2. The acreage had previously been relinquished by Repsol and Exxon and includes two gas discoveries (Oreja Marina and Estrela del Mar which together contain c. 250bcf of dry gas) as well as the Tonel prospect with prospective resources of 510bcf. Ophir has committed to drill a three well program, including the Tonel prospect. The additional acreage increases the portfolio of drilling options available to Ophir as well as providing additional proven gas resources. These will provide greater flexibility in reaching the 2.5TCF threshold volume which is believed to be necessary to commit to a Train 2 development.

At year end preparations were under way for a second drilling campaign which is expected to commence in late May 2012. The 6th generation deepwater drill rig the "Eirik Raude" and ancillary services have been secured. The programme is likely to consist of three firm and one contingent well covering a mix of both exploration and appraisal targets.

Ophir has been able to retain a high equity in the project and now believe that 2012 will be the appropriate time to bring in a suitably qualified joint venture partner. Preliminary approaches have been received from a number of companies and it is hoped that a farmout will be concluded after the 2012 drilling programme.

Gabon (Ntsina, Mbeli)

The focus of exploration in Ntsina and Mbeli has switched to the pre-salt play which has recently come to prominence through a series of world-class discoveries in Brazil, and early in 2012 on the conjugate margin in Angola. Across the conjugate margin from Gabon, is Petrobras' Carmopolis Field, with an estimated 1.7Bbbls in place. Until now, exploration of the pre-salt play in the North Gabon basin has been restricted by poor seismic imaging. Recent advances in seismic imaging technology now allow pre-salt traps to be effectively mapped.

Seismic and gravity gradiometry surveys have delineated a potentially significant pre-salt play system in the Blocks. The main focus of the seismic acquisition has been the Padouck Deep prospect which has the potential to contain ca. 1.3 Bbbls. Based upon the relative immaturity of the play, Ophir elected to bring a JV partner with significant pre-salt experience and consequently concluded a farm-out to Petrobras for 50% equity in each Block. Under the terms of the agreement Petrobras is funding the cost of a new 2,200 km2 seismic survey designed to image the pre-salt play system. The survey has been acquired by PGS early in 2012 and a key component of this programme will be detailed "pre-stack depth migration" (PSDM) processing of the data which will take much of 2012 to complete. The terms of the Ntsina and Mbeli PSC's will end in February 2014, allowing sufficient time to fully explore the pre-salt play.

Gabon (Manga, Gnondo)

The pre-salt play has more limited extent southward into Manga and Gnondo where the focus is instead on the post-salt stratigraphic section. Recent discoveries in Brazilian waters, in particular Petrobras' 2010/11 Barra discovery, suggest that this play could have analogues in the North Gabon basin. The 3D seismic data is currently limited, particularly in the potentially attractive area to the west of the Loiret Dome where a series of stratigraphic onlap plays have been identified and leads identified. One of these, the Afo structure, has the potential to be volumetrically significant. Ophir has consequently undertaken a 3D seismic program in Manga in early 2012 to mature these into drillable prospects. The play system also extends into the southern part of the Ntsina Block and the 3D survey has extended into this Block.

The Pachg Liba prospect, in the Gnondo block, is covered by a limited amount of 2D seismic data which, to this point, has precluded it from being matured to a drilling target. Acquisition of a prospect-specific 3D seismic survey would be very cost inefficient unless it can be included as part of a wider survey. The activity in the other Ophir-Operated Gabon blocks has allowed this survey to be included as part of the larger program recorded in early 2012.

Acquisition of the two 3D surveys was completed in January 2012. Processed data will be available in early 2013. Once this has been interpreted a farminee will be sought for the next stage, to include potential drilling in 1H 2013.

AGC Profond

Two farmouts were completed in 2011, the first of these was for 8.8% equity to FAR Limited in March 2011 with a further 17.5% being divested to Noble Energy in June 2011. The terms of these farm-outs included promoted contributions to the costs of the first well on the Block, Kora-1. (up to a gross first well cost of $40 million, and should they elect to participate in petroleum operations, a promoted amount of the costs of any second well (uncapped) and $35 million of appraisal expenditure on Ophir's behalf).

The Kora-1 well was drilled to a total depth of 4,447.5mSS on 27 July 2011 and the rig was subsequently released on 31st July 2011 with no LTIs. The primary (Albian) and secondary (Coniacian and Barremian) reservoir intervals were penetrated close to their anticipated depths, but the well encountered a predominantly claystone and thinly‑bedded limestone sequence, rather than the prognosed sandstone reservoir facies. The well was plugged and abandoned and the technical assessment will continue through the first half of 2012 to characterise the remaining potential of the Block ahead of a drill or drop decision in mid-2012.

Congo-Brazzaville (Marine IX)

Ophir assumed the role of Operator from 1 May 2011. Three play systems have been identified in the Block. These are; a Tertiary play system, as proven by the nearby Moho Bilondo discoveries, an Albian "raft" play, which was tested by Frida-1 and a pre salt "Gamba" play. Of these, the first two have been fully explored within the Block and the Group is confident that no potential remains. The pre-salt play, however, has not been explored to date and the JV has gained a 12 month extension to the current PSC term in order to carry out a full prospectivity assessment of the block. As part of this assessment a gradiometry survey has been acquired in early and once integrated with the existing seismic data a decision will be made regarding possible future drilling.

JDZ

Ophir elected to withdraw from the JDZ PSC in March 2011. All the commitments had been fulfilled and the permit was exited in good standing.

Madagascar (Marovoay Block)

2011 has seen the interpretation of the airborne gradiometry survey in order to better define the subsurface structure. The data has been integrated with existing seismic data and at year end the final interpretation was under way. The JV faces a drill or drop decision in Q2 2012 and at that point will elect whether to drill a well on the Block or to farm-out. On the 17th November 2011, the Group and Octant Energy Madagascar Ltd entered into an Option agreement where Ophir Madagascar grants Octant Energy the right to farmin to the Marovay PSC for a 50% participating interest subject to the satisfaction of certain conditions precedent and the payment of certain exploration costs and expenses.

Somaliland (Berbera) - Block SL9

During 2011 Ophir's geotechnical team continued its interpretation of the existing legacy data on Block SL9 and to fully integrate surface geological information with the seismic data which covers the Block. This will be used to determine possible future drill locations.

Ophir has continued to work closely with the Government of Somaliland in to adapt the Petroleum Sharing Contract to reflect the expected work program prior to the Group taking on a drilling commitment on the Block. The agreed amendments include the extension of the block via the addition of a vacant Block to the west of the Ophir acreage.

SADR (Daora, Haouza, Mahbes, Mijek)

Ophir continues to monitor activities and opportunities in SADR.

DOMINION PETROLEUM ASSETS

The Group's acquisition of Dominion Petroleum Ltd closed in February 2012 and added the following assets to the Group's portfolio.

Tanzania (Block 7)

Block 7 is a 8,475 km2 block located on the continental slope of the Indian Ocean immediately east of Dar es Salaam. Water depths in Block 7 range from less than 400m to more than 2,500m.

During June 2010, a competent persons report was prepared by Energy Resource Consultants Ltd. ("ERC") on Block 7, which included the Alpha prospect. The report concluded that the Alpha prospect has a mean prospective unrisked resource of 1.104 Bbbl of oil or 7.069TCF of gas. ERC have risked the prospect with a CoS of 12% as a whole. Net risked mean resource: 134MMboe or 848Bcf. Ophir is now operator and with an 80% participating interest in the block. Further potential identified outside of 3D has led to infill 2D acquisition in early 2012 with potential drilling planned for 1H 2013.

Kenya (L-9)

Block L-9 covers 5,110 km2 offshore Kenya on the Davy-Walu structural trend. Ophir currently has 100% operatorship and working interest in the L-9, but is in the process of transferring 30% to Flow Energy Limited and 10% to Avana Petroleum Limited. The JOA is being finalised. The L-9 PSC was signed by Dominion with the Kenyan government on the 17th May 2011. During the first two year exploration period, Ophir has a commitment to shoot 500 km2 of 3D seismic data, reprocess 2,500km of 2D seismic and carry out geological and geophysical field studies. The Lamu basin has the potential to contain both gas and liquids as demonstrated by previous wells in the area. Synthetic aperture radar has also identified possible oil seeps locally. Adjacent to L-9 are blocks being operated by Apache and Anadarko. The Mbawa prospect in the Apache-operated block L-8 is along trend from similar features in L-9. Mbawa is to be drilled by Apache in Q3, 2012. Ophir has signed an agreement to work with Apache in a 3D seismic program over the L-8 / L-9 Mbawa south area in Q1 2012. It is planned this will lead to potential drilling in L9 during 1H 2013.

Kenya (L-15)

Block L-15 of the Lamu Basin, offshore Kenya covers an area of 2,331 km2 and lies to the north of L-9 and is also on the Davy-Walu structural trend. The only well in Block L-15 is Kofia-1, which was drilled by the Union Oil in 1985 and encountered oil and gas shows in the Palaeogene and Upper Cretaceous intervals. The L-15 PSC was signed on October 5, 2011 and Ophir now holds 100% working interest and operatorship in the block. Ophir is planning a 3D seismic program in Q3 2012, with potential drilling in 2013.

Uganda (Exploration Area 4B)

Exploration Area 4B (EA4B) is a 993 km2 license located in south-west Uganda and is inclusive of the majority of the Ugandan section of Lake Edward. Ophir now holds 100% participating interest and operatorship in EA4B. In early 2008, an airborne gravity and magnetic survey was acquired which proved a presence of substantial thickness of sedimentary rocks capable of generating oil. A satellite radar-imaging survey has suggested the presence of oil seeps on Lake Edward. During the second half of 2008, around 540 km of 2D seismic was acquired on land and lake areas. Interpretation of the seismic has shown the presence of a deep sedimentary basin broken into fault blocks by numerous extensional faults.

In 2010, Dominion drilled the Ngaji-1 well to a total depth of 1765m. The well did not identify hydrocarbons but did confirm the presence of high quality reservoir sands On April 27, 2011, Dominion applied for the renewal of the exploration licence for EA4B for the third two-year period, which expires in July 2013. This continues to be discussed with the Government of Uganda.

DRC (Block V)

Block V in the Democratic Republic of Congo ("DRC") incorporates 7,447 km2 of land and lake areas. It lies to the west of and includes part of Lake Edward and adjoins EA4B in Uganda. Both blocks are part of the Albertine rift system of sedimentary basins where significant oil discoveries have been made since 2006. Ophir now holds a 46.75% participating interest in Block V with SOCO. The PSAC was signed on 5 December 2007. During the first 5 year phase of the Block V PSC, Ophir and its partners are committed to an exploration program which includes at least 300km of seismic data and two exploration wells.

Financial Review

Overview

2011 was a year of success for the Ophir Group, with an IPO and listing to the main Board of the London Stock Exchange. ("LSE") on 13 July 2011. The Group issued 94,135,334 new shares and raised a total US$375 million (£235million). An over-allotment (greenshoe) of 2,216,546 shares followed on 8 August 2011 raising a further US$8.9 million (£5.5 million). As the majority of the Group's expenditure is incurred in US Dollars, the bulk of the proceeds of the capital raising were immediately converted to US Dollars.

The Group is currently conducting exploration and appraisal activities using existing funds from capital raised during the IPO.  It will fund its planned activities for the 2012 financial year from existing cash reserves  but will need additional funding for forecast expenditure beyond this period. The funding options currently being considered include a farm out or sale of assets or an additional equity raise.

RESULT FOR THE PERIOD

The Group recorded a loss of US$19.1 million for the year ended 31 December 2011 (31 December 2010: US$19.3 million loss). No dividends were paid or declared by the Group during the period.

The loss for the period includes exploration expenditure expensed of US$15.7 million (31 December 2010: US$11.3 million), administrative costs of US$16.2 million (31 December 2010: US$7.3 million), finance costs of US$1.0 million (31 December 2010: US$0.5 million) and other costs of US$0.9 million (31 December 2010: US$0.8 million). The year end result was further impacted by a farm out gain of US$13.8 million (31 December 2010: nil).

Farm Out Gain

The gain on farm out relates to the partial farm out of the Group's AGC Profond interests to Noble prior to spudding of the Kora-1 well in late June 2011. Cash proceeds of US$20 million received from Noble were applied against the Group's carrying value of the AGC project, reducing its book value to nil at 31 December 2011, with surplus proceeds being booked to profit. The Kora-1 well, completed in early August, was subsequently an unsuccessful well. In accordance with the Group's accounting policy, the Group's share of well costs which were incurred of approximately US$12.7 million, were then written off to the profit and loss during the 2011 year.

Exploration Expenditure

Exploration expenditure of US$15.7 million (31 December 2010: US$11.3 million) resulted from the Groups exploration and appraisal activities in AGC profound, Tanzania, Equatorial Guinea, Somaliland, Gabon, Congo and Madagascar. It comprises pre-licence exploration costs of US$2.3 million (31 December 2010: US$2.0 million) charged directly to the Income Statement. Unsuccessful exploration expenditure of US$13.4 million (31 December 2010: US$13.3 million) was written off in accordance with the Group's accounting policy

Administrative Expenses

Administrative expenses including personnel costs including share-based payments charges, administration costs, professional and corporate costs (audit, legal, other professional advisors' costs and Directors' fees) totalled US$16.2 million (31 December 2010: US$7.3 million). The result was impacted by 2010 bonuses payable in 2011, increased option incentive costs, additional personnel and administration costs associated with expansion of the Groups operations and listing on the main Board of the LSE and increased corporate related activity.

Finance Costs

Finance costs for the period of US$1.0 million (31December 2010: US$0.4 million loss) relate to foreign exchange losses arising on the fluctuation of the Group's functional currency, the US Dollar, against other currencies.

Cashflow

Overall, the Group cash inflow was US$306.7 million (31 December 2010: outflow of US$45.4 million).

Operating Cash Flow

The Group's net cash used in operating activities was US$22.5 million (31 December 2010: US$13.3 million). Of this, US$15.7 million related to exploration expenditure that was written off, predominantly attributed to AGC Kora-1 well costs (US$12.7 million) and pre-licence costs of US$2.3 million.

Investing Activities

Cashflow used in investing was US$43.9 million (31 December 2010: US$32.0 million). Investment of US$65.6 million on exploration (31 December 2010: US$44.6 million) was offset by a cash inflow on farm out of the Group's AGC interests to Noble of US$20.0 million (31 December 2010: US$11.3 million inflow net of farm out proceeds). The incurred exploration expenditure related to:

·; Planning and long lead items for the BG joint venture and drilling program in Blocks 1, 3 and 4 in Tanzania;

·; Acquisition of Block C in Equatorial Guinea during November 2011, to the northwest of Block R, which was then appended to Block R; and

·; Associated costs of the transfer and completed farm-in to the East Pande block in Tanzania on 29th March 2011.

Financing Activities

The net cash inflow for financing activities was US$373.1 million (31 December 2010: US$0.1 million) which was as a result of the funds raised at IPO. Gross funds received were US$394.8 million with associated costs of the raise being US$21.7 million.

At year end the Group's cash and cash equivalents were US$396.6 million (31 December 2010: US$90.0 million)

Exploration and evaluation assets

As at 31 December 2011, exploration and evaluation assets totalled US$327.1 million (31 December 2010: US$ 270.0 million). The movement was due to expenditure incurred during the year of US$70.4 million (31 December 2010: $45.1 million) and written off expenses of US$13.4 million (31 December 2010: US$13.3 million).

The main areas of exploration were:

·; Tanzania Blocks 1, 3 and 4 US$40.5 million due to the costs of drilling Chaza-1 in Block 1, and the seismic programs operated by Ophir in Blocks 1, 3 and 4.

·; Ophir completed the farm-in to the 7,500 km2 East Pande Block on 29th March 2011. The Group holds 70% equity, with Rakgas holding the remaining 30%. Ophir has assumed operatorship of the Block. Costs for 2011 amounted to US$6.6 million.

·; In Equatorial Guinea the acquisition of Block C (US$2.2 million) and preparation for the 2012 drilling program of three firm plus one contingent well (US$7.3 million).

Current Assets

The Group held cash and short term deposits of US$396.6 million (31 December 2010: US$89.9 million) plus inventories of US$6.2 million (31 December 2010: US$9.1 million) which comprise of drilling materials for future drilling campaigns. Trade and other receivables were US$8.7 million (31 December 2010: US$45.3 million).

Liabilities

The Group had no debt as at December 31 2011 (31 December 2010: nil).

Trade and Other payable including accruals were US$27.7 million (31 December 2010: US$59.7 million).

Group Accounts

Group Income Statement and Statement of Comprehensive Income

(2) (7) cents per share

(3)(9) cents per share

Group Statement of Changes in Equity

Group Statement of Financial Position

Group Statement of Cash Flows

Notes to the financial statements

1. Authorisation of preliminary announcement

Ophir Energy plc (the "Company" and the ultimate parent of the Group) is a public limited company incorporated, domiciled and listed in England. Its registered offices are situated at 55 Grosvenor Street, London W1K 3HY.

Ophir Energy's business is oil and gas exploration with an extensive portfolio of exploration interests in Africa.

The Preliminary Announcement for the year ended 31 December 2011 were authorised for issue by the board of the directors on 20 March 2012.

2. Basis of preparation and significant accounting policies

2.1 Going Concern and basis of accounting

The Group is currently conducting exploration and appraisal activities using existing funds, including capital raised during the IPO. In making their going concern assessment, the Directors have considered Group budgets and cash flow forecasts and have recognised that in order to finance planned exploration and evaluation activities beyond the 2012 financial year it will be necessary to review options for funding 2013.

The Directors are in the process of evaluating a number of funding options including a series of potential farm outs of interests across the portfolio, a sale of one or more assets and access to the capital markets, each of which have the potential to raise additional finance sufficient to fund forecast expenditure for at least the next 12 months. The Company considers that it retains the strong support of its major shareholders and the Directors believe that they have options to raise funds from any one of the sources. Accordingly, the financial statements have been prepared on a going concern basis as the Directors are of the opinion that the Company will have sufficient funds to meet its ongoing working capital and committed capital expenditure requirements over the next twelve months. As such the financial statements do not include the adjustments that would result if the Company were unable to continue as a going concern.

However, the need for additional funding indicates the existence of a material uncertainty which may cast significant doubt over the Company's ability to continue as a going concern. The Company's auditors have indicated that in the event that sufficient funds are not secured or mitigating actions taken by the time the annual report is issued, that their audit report, whilst unmodified would include an emphasis of matter referring to this material uncertainty.

2.2 Basis of preparation and statement of compliance

The Group's and Company's Financial Statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union and those parts of the Companies Act 2006 applicable to companies reporting under IFRS. The accounting policies adopted, as detailed below, during the preparation of this preliminary announcement are consistent with those adopted in the 31 December 2010 financial statements.

The consolidated Financial Statements have been prepared on a historical cost basis except for revaluation of certain derivative instruments measured at fair value. The consolidated Financial Statements are presented in US Dollars rounded to the nearest thousand dollars (US$'000) except as otherwise indicated.

Comparative figures for the period to 31 December 2010 are for the year ended on that date.

2.3 Significant accounting policies

New and Amended Accounting Standards and Interpretations

The Group has adopted the following new and amended IFRS and IFRIC interpretations as of 1 January 2011:

·; IAS 24 Related Party Transactions (Amendment)

·; IAS 32 Financial Instruments: Presentation (Amendment)

·; IFRIC 14 Prepayments of a Minimum Funding Requirement (Amendment)

·; IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments

·; Improvements to International Financial Reporting Standards (issued 2010)

When the adoption of the Standard or Interpretation is deemed to have an impact on the Financial Statements or the financial position and performance of the Group, its impact is described below:

Impact from changes to accounting policies as a result of amendments to IAS 24 Related Party Transactions, IAS 32 Financial Instruments: Presentation and Improvement to IFRSs.

IAS 24 Related Party Transactions (Amendment) alters the definition of a related party to emphasise a symmetrical view of related party relationships and clarifies the circumstances in which persons and key management personnel affect related party relationships of an entity. In addition, the amendment introduces an exemption from the general related party disclosure requirements for transactions with government and entities that are controlled, jointly controlled or significantly influenced by the same government as the reporting entity. The adoption of the amendment has altered the identification of related parties by the Group.

IAS 32 Financial Instruments: Presentation alters the definition of a financial liability to enable entities to classify rights issues and certain options or warrants as equity instruments. The amendment is applicable if the rights are given pro rata to all of the existing owners of the same class of an entity's non-derivative equity instruments, to acquire a fixed number of the entity's own equity instruments for a fixed amount in any currency. The amendment has had no effect on the financial position or performance of the Group but will alter the Groups future accounting if any such instruments are issued.

Improvements to International Financial Reporting Standards issued in May 2010 are the third omnibus of amendments to the IAB's standards and issued primarily with a view to removing inconsistencies and clarifying wording. There are separate transitional provisions for each standard. The adoption of the following amendments resulted in changes to accounting policies but no impact on the financial position or performance of the Group.

·; IFRS 3 Business Combinations: The measurement options available for non-controlling interest (NCI) were amended. Only components of NCI that constitute a present ownership interest that entitles their holder to a proportionate share of the entity's net assets in the event of liquidation shall be measured at either fair value or at the present ownership instruments' proportionate share of the acquiree's identifiable net assets. All other components are to be measured at their acquisition date fair value.

The amendments to IFRS 3 are effective for annual periods beginning on or after 1 July 2011. The Group however adopted these as of 1 January 2011 and changed its accounting policy accordingly as the amendment was issued to eliminate unintended consequences that may arise from the adoption of IFRS 3.

·; IAS 1 Presentation of Financial Statements: The amendment clarifies that an entity may present an analysis of each component of other comprehensive income maybe either in the statement of changes in equity or in the notes to the financial statements.

Other amendments resulting from Improvements to IFRSs to the following standards did not have any impacton the accounting policies, financial position or performance of the Group:

·; IFRS 3 Business Combinations (Contingent consideration arising from business combination prior to adoption of IFRS 3 (as revised in 2008))

·; IFRS 3 Business Combinations (Un-replaced and voluntarily replaced share-based payment awards)

·; IFRS 7 Financial Instruments - Disclosures

·; IAS 27 Consolidated and Separate Financial Statements

·; IAS 34 Interim Financial Statements

·; IFRIC 13 Customer Loyalty Programmes (determining the fair value of award credits)

·; IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments

Standards and Interpretations issued but not yet effective

Standards issued but not yet effective at the date of these Financial Statements are listed below.

The impact of the adoption of the above standards has not been assessed by the Group.

2.4 Basis of consolidation

The Group Financial Statements consolidate the Financial Statements of the Company and the entities it controls (its subsidiaries) drawn up to 31 December each year.

Basis of consolidation from 1 January 2010

Subsidiaries

Subsidiaries are consolidated from the date of their acquisition, being the date on which the Group obtains control, and continue to be consolidated until the date that such control ceases. Control comprises the power to govern the financial and operating policies of the investee so as to obtain benefit from its activities and is achieved through direct or indirect ownership of voting rights; currently exercisable or convertible potential voting rights; or by way of contractual agreement. The Financial Statements of subsidiaries are prepared for the same reporting year as the Parent Company, using consistent accounting policies. All intercompany balances and transactions, including unrealised profits arising there from, are eliminated.

A change in the ownership interest of a subsidiary, without loss of control, is accounted for as an equity transaction. If the Group loses control over a subsidiary, it (i) derecognises the assets (including goodwill) and liabilities of the subsidiary; (ii) derecognises the carrying amount of any non-controlling interest; (iii) derecognises the cumulative translation differences, recorded in equity; (iv) recognises the fair value of the consideration received; (v) recognises the fair value of any investment retained; (vi) recognises any surplus or deficit in profit and loss; (vii) reclassifies the parent's share of components previously recognised in other comprehensive income to profit and loss or retained earnings, as appropriate.

Non-controlling interests

Non-controlling interests represent the equity in a subsidiary not attributable, directly and indirectly, to the parent company and is presented separately within the Consolidated Balance Sheet, separately from equity attributable to owners of the parent. Losses within a subsidiary are attributed to the non-controlling interest even if that results in a deficit balance.

Basis of consolidation prior to 1 January 2010

Certain of the above-mentioned requirements were applied on a prospective basis. The following differences, however, are carried forward in certain instances from the previous basis of consolidation:

Non-controlling interest represents the portion of profit or loss and net assets in subsidiaries that is not held by the Group and is presented separately within equity in the Consolidated Balance Sheet, separately from parent shareholder's equity.

Acquisitions of non-controlling interests, prior to 1 January 2010, were accounted for using the equity concept method.

Losses incurred by the Group were attributed to the minority interest until the balance was reduced to nil. Any further excess losses were attributed to the parent, unless the non-controlling interest had a binding obligation to cover these.

(a) Net of recovery of costs incurred in prior year on farm out of AGC assets (US$8,116,000) (2010: Net of recovery of costs incurred in prior year on farm out of Tanzania assets (US$4,008,739)).

The Group recognised the impairment loss on the exploration expenditure noted above in accordance with the Group policy .

(b) Exploration written off relates to:

(i) Licences in Gabon (US$103,402) (2010: US$438,696) and Somaliland (US$68,603) (2010: US$5,276,476) where the Group is negotiating with authorities to extend current exploration licence terms and where such negotiations were incomplete at 31 December 2011.

(ii) Costs relating to an exploration licence in Congo (Brazzaville) (US$453,999) (2010: US$1,031,106) were written off pre-IPO. However since then, Ophir has assumed as operator and continues to investigate the pre-salt play 'Gamba' play. As part of this assessment a gradiometry survey will be acquired during 2012.

(iii) JDZ: US$167,834 were written off for the period where the Group elected to withdraw from the PSC during March 2011.

(iv) Costs of US$12,738,447 (2010: nil) relating to the write off of the Kora-1 dry well costs in the AGC exploration block.

The balances classified as called up; allotted and fully paid share capital represents the nominal value of the total number of issued shares of the Company of 0.25p each.

Fully paid shares carry one vote per share and carry the right to dividends.

Notes on reserves

aThe share premium account represents the total net proceeds on issue of the Company's shares in excess of their nominal value of 0.25p per share less amounts transferred to the Special Reserve.

bThe option premium reserve represents the cost of share-based payments to Directors, employees and third parties.

cThis balance represents the equity component of the convertible bond, net of costs and tax as a result of the separation of the instrument into its debt and equity components. The bond was converted into 21,661,476 ordinary shares of 0.25p each on 21 May 2008.

dThe consolidation reserve represents a premium on acquisition of a minority interest in a controlled entity.

eThe Special Reserve was created on reduction of the Company's share capital on 26 July 2007. The Special Reserve will be available to offset accumulated losses once all creditors who were in existence at the date of the transfer from share premium have been settled.

fThe foreign currency translation reserve is used to record unrealised exchange differences arising from the translation of the Financial Statements of entities within the Group that have a functional currency other than US dollars.

8 Related party transactions

(a) Identity of related parties

The Company has related party relationships with its subsidiaries its Directors and companies associated with its directors identified in the following paragraph.

Recharges from the Company to subsidiaries in the year were US$4,457,140 (2010: US$3,523,210). Transactions between the Company and its subsidiaries have been eliminated on consolidation.

(b) Transactions with key management personnel

The Company made payments of US$47,868 (year ended 31 December 2010: US$93,956) to Vectis Petroleum Limited, a company associated with Mr J Lander, for the provision of Mr Lander's service as a Director and US$32,204 (year ended 31 December 2010: US$107,128) to Barbican Global Limited, a company associated with Mr L Powell, for the provision of Mr Powell's service as a Director.

Disclaimer

This results announcement contains certain forward‐looking statements that are subject to the risk factors and uncertainties associated with the oil and gas exploration and production business. Whilst the Ophir Energy plc and its group of companies believes the expectations reflected herein to be reasonable in light of the information available to them at this time, the actual outcome may be materially different owing to a variety of factors including specific factors identified in this statement and other factors outlined in the Group's 2011 Annual Report.