Risk Management

In order for the Group to deliver its strategic and operational objectives effective risk management is an essential process for the Group, given the inherently risky upstream oil and gas sector.

Effective risk management is an integral part of the Group's activities. It involves identifying risks relating to the Group's activities and implementing appropriate measures in order to manage or reduce them.

The Oil and Gas business environment is complex. Ophir has an established framework to review the various potential external and internal risks to which it is exposed. Risk management is a fundamental part of all Company activities.

Identified risks are recorded and the risk register is reviewed by the Audit Committee and by the Board of Directors, who are ultimately responsible for Ophir's risk management and supporting internal control systems.

The key elements of Ophir's risk management process are:

• Identification
• Evaluation
• Response
• Reporting
• Monitoring

The principal risks that have been identified within the Company are summarised as follows:

Strategic

Operational

Financial

External