JKX Oil & Gas plc Annual Report 2011131At a glance01-17Board statements18-23Operational review24-36Financial review37-47CSR review48-61Directors' reports62-83Financial statements84-136At 31 December 2011, the principal subsidiary undertakings of JKX Oil & Gas plc were: % held Country of (ordinary incorporation andName Business shares) area of operationAdygea Gas B.V. Holding 100.00 NetherlandsBaltic Catering Services Oil & gas services 100.00 UkraineBaltic Energy Trading Limited* Oil & gas exploration and production 100.00 UKEastern Ukrainian Pipeline Ltd Oil & gas services 100.00 UkraineEuroDril Limited Oil & gas exploration, production and services 100.00 UKJKX Bulgaria Ltd* Oil & gas exploration and production 100.00 UKJKX Bulkan BG EAD Oil & gas exploration and production 100.00 BulgariaJKX Carpathian BV Oil & gas exploration and production 100.00 NetherlandsJKX Hungary BV Oil & gas exploration and production 100.00 NetherlandsJKX (Navtobi) Limited Oil & gas exploration and production 100.00 CyprusJKX (Nederland) B.V. Finance and Holding 100.00 NetherlandsJKX Ondava BV Oil & gas exploration and production 100.00 NetherlandsJKX Rusland BV Finance 100.00 NetherlandsJKX Services Limited* Services 100.00 UKJKX Slovakia BV Oil & gas exploration and production 100.00 NetherlandsJKX Ukraine BV Finance and Holding 100.00 NetherlandsJP Kenny Exploration & Production Limited* Finance and Holding 100.00 UK Kharkiv Investment Company Holding 100.00 UkrainePAGE Gas Ltd* Oil & gas exploration and production 100.00 UKPoltava Gas B.V. Holding 100.00 NetherlandsPoltava Petroleum Company Oil & gas exploration and production 100.00 UkraineShevchenko Farm Land lease 62.00 UkraineSouthern Russia Gas B.V. Finance 100.00 NetherlandsSouthern Russia Gas Coöperatief W.A Finance and Holding 100.00 NetherlandsTrans-European Energy Services Limited* Oil & gas exploration, production and services 100.00 UKYuzhgazenergie LLC Oil & gas exploration, production and services 100.00 Russia* Held directly by JKX Oil & Gas plc. All other companies are held through subsidiary undertakings.In the opinion of the Directors the carrying value of the investments is supported by their underlying net assets.
132C. Debtors 2011 2010 $000 $000Amounts falling due within one year Amounts owed by group undertakings 23,096 5,157Other debtors 129366Prepayments 52 36 23,277 5,559Amounts falling due after more than one year Amounts owed by group undertakings 450,059 350,249$462.8m (2010: $351.0m) owed by subsidiary undertakings bears interest based on LIBOR plus a mark up and is not secured. Amounts owed by group undertakings falling due within one year include a provision for impairment is nil (2010: $7.4m). The amounts determined as individually impaired were balances due from group subsidiary undertakings where the future cash flows from these companies were determined to be unlikely to be sufficient to repay the amounts owed. D. Deferred tax 2011 2010 $000 $000At 1 January 5,737 -Profit and loss account transfers (4,609) 5,737At 31 December 1,128 5,737Deferred tax asset comprises: Losses carried forward to future periods 1,128 5,737 1,128 5,737 Unprovided deferred tax 2011 2010 $000 $000Tax losses - -Fixed asset differences (9) (7)Other timing differences (82) (130) (91)(137)Neither the deductible timing differences nor the tax losses expire under current tax legislation. Deferred tax assets have not been recognised in respect of the unprovided deferred taxation items because it is not probable that future taxable profit will be available to utilise these deductible timing differences.The main rate of UK corporation tax effective from 1 April 2011 was reduced from 27% to 26%. The 2012 Budget announced a reduction to the main rate of UK corporation tax from 26% to 24% from 1 April 2012 and proposes to make further reductions to the main rate of 1% per annum to 22% by 1 April 2014. The impact of the rate reduction is not expected to have a material impact on provided and unprovided UK deferred taxation. Company financial statementsNotes to the Company financial statements continued