The Directors recognise the importance of sound corporate governance. The Remuneration Committee comprising non-executive Directors, is chaired by Ken Ambrecht. This Committee determines the terms and conditions of service - including remuneration and grants of options - of the executive and non-executive Directors. The Audit Committee, comprising non-executive Directors and chaired by Roland Wessel, has primary responsibility for monitoring the quality of internal controls and ensuring that the financial performance of the Company is properly measured and reported on.

 

The company is establishing procedures and policies to ensure compliance with the Combined Code on Corporate Governance issued by the Financial Reporting Council in July 2003. The Combined Code sets out standards of good practice in relation to issues such as board composition and development, remuneration, accountability and audit and relations with shareholders.

 

The Combined Code contains broad principles and more specific provisions. Listed companies are required to report on how they have applied the principles of the Code and either to confirm that they have complied with the Code’s provisions or where they have not to provide an explanation. Although this requirement does not apply to AIM companies Dominion expects to be complying with the Combined Code in all respects.

 

Accounting standards

The group’s financial statements will be prepared in accordance with International Financial Reporting Standards. IFRS currently contains no specific guidance on accounting for oil and gas exploration companies. The group’s accounts will be prepared under the historical cost convention and in accordance with the Oil Industry Accounting Committee Statement of Recommended Practice “Accounting for oil and gas exploration, development, production and de-commissioning activities” and applicable accounting standards. The group’s financial statements will be prepared in US$.