Share Name Share Symbol Market Type Share ISIN Share Description
Oilex Ld LSE:OEX London Ordinary Share AU000000OEX8 ORD NPV
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.005 2.86% 0.18 0.17 0.19 0.18 0.175 0.175 13,054,370 11:59:39
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Oil & Gas Producers 0.1 -2.4 -0.1 - 5

Oilex Ltd Annual Report 2019- Financial Report

01/10/2019 8:27am

UK Regulatory (RNS & others)


Oilex Ld (LSE:OEX)
Historical Stock Chart

3 Months : From Sep 2019 to Dec 2019

Click Here for more Oilex Ld Charts.

TIDMOEX

RNS Number : 2963O

Oilex Ltd

01 October 2019

For a printer friendly copy of this announcement, please click on the link below to open a PDF version

http://www.rns-pdf.londonstockexchange.com/rns/2963O_1-2019-10-1.pdf

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE YEARED 30 JUNE 2019

`

 
 
                                           Note          2019          2018 
                                                            $             $ 
                                                 ------------  ------------ 
 
 Revenue                                   4(a)       188,220       163,562 
 Cost of sales                             4(b)     (504,926)     (199,266) 
                                                 ------------  ------------ 
 Gross loss                                         (316,706)      (35,704) 
 
 Other income                              4(c)             -        13,139 
 Exploration expenditure                   4(d)     (491,675)     (651,993) 
 Administration expense                    4(e)   (1,957,850)   (2,101,485) 
 Share-based payments expense               22      (110,935)      (90,211) 
 Provision for doubtful debts expense       12      (108,206)   (1,233,898) 
 Other expenses                            4(f)      (40,990)     (110,395) 
                                                 ------------  ------------ 
 Results from operating activities                (3,026,362)   (4,210,547) 
                                                 ------------  ------------ 
 
 Finance income                            4(g)         4,403         6,358 
 Finance costs                             4(h)      (97,162)          (20) 
 Foreign exchange (loss)/gain              4(i)         1,000      (26,768) 
                                                 ------------  ------------ 
 Net finance costs                                   (91,759)      (20,430) 
                                                 ------------  ------------ 
 
 Loss before tax                                  (3,118,121)   (4,230,977) 
 
 Tax expense                                5               -             - 
                                                 ------------  ------------ 
 Loss                                             (3,118,121)   (4,230,977) 
                                                 ------------  ------------ 
 
 Other comprehensive income/(loss) 
 Items that may be reclassified to 
  profit or loss 
 Foreign operations - foreign currency 
  translation differences                              79,951     (213,981) 
                                                 ------------  ------------ 
 Other comprehensive income, net of 
  tax                                                  79,951     (213,981) 
                                                 ------------  ------------ 
 
 
 Total comprehensive loss                         (3,038,170)   (4,444,958) 
                                                 ------------  ------------ 
 
 Earnings per share 
 Basic loss per share (cents per share)     6          (0.13)        (0.24) 
 Diluted loss per share (cents per 
  share)                                    6          (0.13)        (0.24) 
 

The above Consolidated Statement of Profit or Loss and Other Comprehensive Income is to be read in conjunction with the accompanying notes.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2019

 
                                                   2019            2018 
                                  Note                $               $ 
                                         --------------  -------------- 
 
 Assets 
 Cash and cash equivalents         11           357,970         375,507 
 Trade and other receivables       12           497,974         738,784 
 Prepayments                                    156,464         115,271 
 Inventories                        9         1,141,309       1,303,245 
                                         --------------  -------------- 
 Total current assets                         2,153,717       2,532,807 
                                         --------------  -------------- 
 
 
 Exploration and evaluation         7           568,888         539,793 
 Development assets                 8         6,495,590       6,165,255 
 Property, plant and equipment     16           145,927         178,930 
 Total non-current assets                     7,210,405       6,883,978 
                                         --------------  -------------- 
 
 Total assets                                 9,364,122       9,416,785 
                                         --------------  -------------- 
 
 Liabilities 
 Trade and other payables          13           697,184         779,249 
 Employee benefits                 10           148,731         274,651 
 Borrowings                        14           563,955               - 
                                   10, 
 Provisions                         26          855,554         811,798 
 Total current liabilities                    2,265,424       1,865,698 
                                         --------------  -------------- 
 
 
 Provisions                        10         3,733,837       3,542,877 
 Total non-current liabilities                3,733,837       3,542,877 
                                         --------------  -------------- 
 
 Total liabilities                            5,999,261       5,408,575 
                                         --------------  -------------- 
 
 Net assets                                   3,364,861       4,008,210 
                                         --------------  -------------- 
 
 Equity 
 Issued capital                   17(a)     176,502,200     174,046,036 
 Reserves                         17(b)       7,501,388       7,628,101 
 Accumulated losses                       (180,638,727)   (177,665,927) 
                                         --------------  -------------- 
 
 Total equity                                 3,364,861       4,008,210 
                                         --------------  -------------- 
 
 

The above Consolidated Statement of Financial Position is to be read in conjunction with the accompanying notes.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEARED 30 JUNE 2019

 
                                                               Attributable to Owners of the Company 
                                                                             Foreign 
                                                                             Currency 
                                 Issued       Option       Loans Options    Translation    Accumulated 
                                 Capital      Reserve         Reserve         Reserve         Losses      Total Equity 
                                    $            $              $               $               $              $ 
                        Note      17(a)        17(b)          17(b)           17(b) 
                                                                                         --------------  ------------- 
 
 
 Balance at 30 June 2017       172,866,479     583,571                 -      7,510,193   (173,686,632)      7,273,611 
                              ------------  ----------  ----------------  -------------  --------------  ------------- 
 Total comprehensive 
 (loss)/income 
 Loss                                    -           -                 -              -     (4,230,977)    (4,230,977) 
                              ------------  ----------  ----------------  -------------  --------------  ------------- 
 Other comprehensive income 
 Foreign currency 
  translation 
  differences                            -           -                 -      (213,981)               -      (213,981) 
                              ------------  ----------  ----------------  -------------  --------------  ------------- 
 Total other comprehensive 
  loss                                   -           -                 -      (213,981)               -      (213,981) 
                              ------------  ----------  ----------------  -------------  --------------  ------------- 
 
 Total comprehensive 
  (loss)/income                          -           -                 -      (213,981)     (4,230,977)    (4,444,958) 
                              ------------  ----------  ----------------  -------------  --------------  ------------- 
 Transactions with owners 
  of the Company 
 Contributions and 
 distributions 
 Shares issued                   1,100,000           -                 -              -               -      1,100,000 
 Capital raising costs 
  (1)                             (53,800)           -                 -              -               -       (53,800) 
 Shares issued on exercise 
  of options                        43,146           -                 -              -               -         43,146 
 Transfers on forfeited 
  options                                -   (251,682)                 -              -         251,682              - 
 Share-based payment 
  transactions                      90,211           -                 -              -               -         90,211 
                              ------------  ----------  ----------------  -------------  --------------  ------------- 
 Total transactions with 
  owners of the Company          1,179,557   (251,682)                 -              -         251,682      1,179,557 
                              ------------  ----------  ----------------  -------------  --------------  ------------- 
 
 
 Balance at 30 June 2018       174,046,036     331,889                 -      7,296,212   (177,665,927)      4,008,210 
 Additional doubtful debts 
  provision recognised on 
  implementation of AASB 
  9                                      -           -                 -              -       (177,874)      (177,874) 
                              ------------  ----------  ----------------  -------------  --------------  ------------- 
 Balance at 30 June 2018 
  - adjusted                   174,046,036     331,889                 -      7,296,212   (177,843,801)      3,830,336 
 Total comprehensive 
 (loss)/income 
 Loss                                    -           -                 -                    (3,118,121)    (3,118,121) 
                              ------------  ----------  ----------------  -------------  --------------  ------------- 
 Other comprehensive income 
 Foreign currency 
  translation 
  differences                            -           -                 -         79,951               -         79,951 
 Total comprehensive 
  (loss)/income                          -                                       79,951               -         79,951 
                              ------------  ----------  ----------------  -------------  --------------  ------------- 
 
 Total comprehensive loss                -           -                 -         79,951     (3,118,121)    (3,038,170) 
                              ------------  ----------  ----------------  -------------  --------------  ------------- 
 Transactions with owners 
  of the Company 
 Contributions and 
 distributions 
 Shares issued                   2,126,049           -                 -              -               -      2,126,049 
 Capital raising costs           (176,187)      27,791                 -              -               -      (148,396) 
 Shares issued on exercise 
  of options                       395,367   (293,217)                 -              -         293,217        395,367 
 Transfers on forfeited 
  options                                -    (29,978)                 -              -          29,978              - 
 Recognition of equity 
  component of loans (Note 
  14)                                    -           -            98,685              -               -         98,685 
 Derecognition of equity 
  component of loan upon 
  repayment                                                      (9,945)                                       (9,945) 
 Share-based payment 
  transactions                     110,935           -                 -              -               -        110,935 
 Total transactions with 
  owners of the Company          2,456,164   (295,404)            88,740              -         323,195      2,572,695 
                              ------------  ----------  ----------------  -------------  --------------  ------------- 
 
 
 Balance at 30 June 2019       176,502,200      36,485            88,740      7,376,163   (180,638,727)      3,364,861 
                              ------------  ----------  ----------------  -------------  --------------  ------------- 
 
 

(1) Capital raising costs include cash payments and the fair value of options granted to the underwriter.

The above Consolidated Statement of Changes in Equity is to be read in conjunction with the accompanying notes.

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEARED 30 JUNE 2019

 
 
                                                                                    2019          2018 
                                                                     Note              $             $ 
                                                                            ------------  ------------ 
 
 Cash flows from operating activities 
 Cash receipts from customers                                                    260,501       101,733 
 Payments to suppliers and employees                                         (2,575,376)   (2,642,215) 
                                                                            ------------  ------------ 
 Cash outflow from operations                                                (2,314,875)   (2,540,482) 
 
 (Payments for)/proceeds from exploration and evaluation expenses              (629,639)   (1,419,516) 
 Interest received                                                                 6,417         6,247 
 Interest paid                                                                  (24,466)          (20) 
 Net cash used in operating activities                                11     (2,962,563)   (3,953,771) 
                                                                            ------------  ------------ 
 
 Cash flows from investing activities 
 Proceeds from disposals of assets and scrap materials                               572        13,139 
 Acquisition of property, plant and equipment                                    (2,149)             - 
                                                                            ------------  ------------ 
 Net cash from/(used in) investing activities                                    (1,577)        13,139 
                                                                            ------------  ------------ 
 
 Cash flows from financing activities 
 Proceeds from issue of share capital                                17(a)     2,126,049     1,100,000 
 Proceeds from exercise of share options                                         395,367        43,146 
 Payment for share issue costs                                                 (148,396)      (47,415) 
 Proceeds from borrowings                                                        645,000             - 
 Repayment of borrowings                                                        (65,000) 
 Net cash from financing activities                                            2,953,020     1,095,731 
                                                                            ------------  ------------ 
 
 Net decrease in cash and cash equivalents                                      (11,120)   (2,844,901) 
 Cash and cash equivalents at 1 July                                             375,507     3,215,565 
 Effect of exchange rate fluctuations on cash held                               (6,417)         4,843 
 Cash and cash equivalents at 30 June                                 11         357,970       375,507 
                                                                            ------------  ------------ 
 

The above Consolidated Statement of Cash Flows is to be read in conjunction with the accompanying notes.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARED 30 JUNE 2019

NOTE 1 - REPORTING ENTITY

Oilex Ltd (the Company) is a for-profit entity domiciled in Australia. These consolidated financial statements comprise the Company and its subsidiaries (collectively the Group and individually Group Entities). Oilex Ltd is a company limited by shares incorporated in Australia whose shares are publicly traded on the Australian Securities Exchange (ASX) and on the Alternative Investment Market (AIM) of the London Stock Exchange. The Group is primarily involved in the exploration, evaluation, development and production of hydrocarbons.

NOTE 2 - BASIS OF PREPARATION

   (a)   Statement of Compliance 

The consolidated financial statements are general purpose financial statements which have been prepared in accordance with Australian Accounting Standards (AASBs) adopted by the Australian Accounting Standards Board (AASB) and the Corporations Act 2001. The consolidated financial statements comply with International Financial Reporting Standards (IFRS) adopted by the International Accounting Standards Board (IASB).

The consolidated financial statements were authorised for issue by the Board of Directors on 30 September 2019.

   (b)   Basis of Measurement 

The consolidated financial statements have been prepared on the historical cost basis except for share-based payment arrangements measured at fair value and the foreign currency translation reserve.

A number of the Group's accounting policies and disclosures require the determination of fair value, for both financial and non-financial assets and liabilities. Fair values have been determined for some measurement and/or disclosure purposes and where applicable, further information about the assumptions made in determining fair values is disclosed in the notes specific to that asset or liability.

   (c)   Going Concern Basis 

The Directors believe it is appropriate to prepare the consolidated financial statements on a going concern basis, which contemplates continuity of normal business activities and the realisation of assets and settlement of liabilities in the ordinary course of business.

The Group has incurred a loss of $3,118,121 and had cash outflows from operating activities of $2,962,563. As at 30 June 2019, the Group's current liabilities exceeded current assets by $111,707 and the Group has cash and cash equivalents of $357,970.

On 31 July 2019, the Company announced that it had arranged an equity capital raising to secure funding of GBP0.34 million (A$0.6 million) through the placing of 257,329,999 new shares at 0.13 pence (A$0.0023) per share. All shares were subsequently issued on 13 August 2019.

On 26 July and 11 September 2018, the Group entered into loan agreements with existing investors to secure funding of $580,000. As part of the loan funding, options were issued to the subscribers, which if exercised, the proceeds would be applied to the outstanding loan balance which was due on 26 July 2019 of $330,000 and 1 October 2019 of $250,000.

On 23 July 2019, the Group entered into an amendment agreement to vary the terms of its loan funding facility of $330,000 entered into on 26 July 2018. Pursuant to the amendment, the loan repayment date was extended from 26 July 2019 to 1 October 2019. In addition, the Company will issue 124,060,150 new options to the lenders at an exercise price of $0.00266 and expiry date of 31 December 2019, which was approved at a General Meeting held on 19 September 2019. All other loan terms and conditions remain the same; and are extended to 1 October 2019.

The total 91,666,666 share options @ $0.0036 exercisable on or before 26 July 2019, attached to the above-mentioned loans, were not exercised and have lapsed.

On 30 September 2019, the Company entered into an amendment agreement to vary the terms of its loan funding facility of $300,000 entered into on 26 July 2018. Pursuant to the amendment, the loan repayment date has been extended to 15 October 2019.

Furthermore, the Company also entered into an amendment agreement to vary the terms of its loan funding facility of $250,000 entered into on 11 September 2018. Pursuant to the amendment, the loan repayment date has been extended from 1 October 2019 to 1 April 2020.

On 30 September 2019, the Company announced that it has arranged an equity capital raising to secure funding of GBP0.6 million (A$1.1 million) through the placing of 315,789,474 new shares at 0.19 pence (A$0.00348) per share. The shares will be issued to Novum Securities and existing shareholders upon settlement which is expected on or about mid-October 2019 which is necessary for the Group in the short-term to repay the $330,000 loan and cash payments for new business opportunities.

NOTE 2 - BASIS OF PREPARATION (CONTINUED)

   (c)   Going Concern Basis (Continued) 

The Group also requires further funding within the next twelve months in order to repay the $250,000 loan, meet planned expenditures for its projects and ongoing administrative expenses and to progress the Cambay drilling programme, and for the new business opportunities in the Cooper-Eromanga Basins and for any new business opportunities that the Group may pursue (refer to note 27). The Group may also require funds in relation to the matter set out in note 26.

The Directors believe that the Group will be able to secure sufficient funding to meet the requirements to continue as a going concern, due to its history of previous capital raisings, acknowledging that the structure and timing of any capital raising is dependent upon investor support, prevailing capital markets, shareholder participation, oil and gas prices and the outcome of planned exploration and evaluation activities, which creates uncertainty. In addition, the Group is working towards securing a new joint venture partner for the Cambay Production Sharing Contract (PSC).

The Directors consider the going concern basis of preparation to be appropriate based on its forecast cash flows for the next twelve months and that the Group will be in a position to continue to meet its minimum administrative, evaluation and development expenditures and commitments for at least twelve months from the date of this report.

If further funds are not able to be raised or realised, then it may be necessary for the Group to sell or farmout its exploration and development assets and to reduce discretionary administrative expenditure.

The ability of the Group to achieve its forecast cash flows, particularly the raising of additional funds, represents a material uncertainty that may cast significant doubt about whether the Group can continue as a going concern, in which case it may not be able to realise its assets and extinguish its liabilities in the normal course of business and at the stated amounts in the financial statements.

   (d)   Currency and Foreign Currency Transactions 

These consolidated financial statements are presented in Australian dollars, which is the Company's functional currency. The functional currency of the Company's subsidiaries is United States or Australian dollars.

Transactions in foreign currencies are translated into the respective functional currencies of Group entities at exchange rates at the dates of the transactions.

Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the foreign exchange rate at the reporting date.

Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are translated into the functional currency at the exchange rate at the date that the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction. Foreign currency differences are generally recognised in profit or loss.

   (e)   Basis of Consideration 

These consolidated financial statements comprise the Company and its subsidiaries (collectively the Group and individually Group Entities).

   i)              Subsidiaries 

Subsidiaries are entities controlled by the Group. The list of controlled entities is contained in note 18. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases.

   ii)             Joint Arrangements - Joint Operations 

The interests of the Group in unincorporated joint operations and jointly controlled assets are recorded in note 18.

   iii)            Transactions Eliminated on Consolidation 

Intragroup balances and transactions, and any unrealised gains and losses or income and expenses arising from intragroup transactions, are eliminated in preparing the consolidated financial statements.

NOTE 2 - BASIS OF PREPARATION (CONTINUED)

   (f)    Key Estimates, Judgements and Assumptions 

In preparing these consolidated financial statements, management continually evaluate judgements, estimates and assumptions that affect the application of the Group's accounting policies and the reported amounts of assets, liabilities, income and expenses. All judgements, estimates and assumptions made are believed to be reasonable based on the most current set of circumstances. Actual results may differ from these judgements, estimates and assumptions. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised prospectively.

A key assumption underlying the preparation of the financial statements is that the entity will continue as a going concern. An entity is a going concern when it is considered to be able to pay its debts as and when they fall due, and to continue in operation, without any intention or necessity to liquidate or otherwise wind up its operations.

Judgement has been required in assessing whether the entity is a going concern as set out in note 2(c).

In the process of applying the Group's accounting policies, management have made judgements, assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment within the next financial year as follows:

Income Tax - refer note 5

Exploration and Evaluation Assets - refer note 7

Development Assets - refer note 8

Provisions - refer note 10

Trade and other receivables - refer note 12

   (g)   Rounding of Amounts 

The Company is a company of the kind referred to in ASIC Corporations (Rounding in Financial/Directors' Reports) Instrument 2016/191 and therefore the amounts contained in this report and in the financial report have been rounded to the nearest dollar, unless otherwise stated.

   (h)   Accounting Policies 

Significant accounting policies that are relevant to the understanding of the consolidated financial statements have been provided throughout the notes to the financial statements. Accounting policies that are determined to be non-significant have not been included in the consolidated financial statements.

The accounting policies disclosed have been applied consistently to all periods presented in these consolidated financial statements and have been applied consistently by Group entities, except for the following changes in accounting policies.

Changes in significant accounting policies

The Group has initially applied AASB 15 and AASB 9 from 1 July 2018.

Due to the transition methods chosen by the Group in applying these standards, comparative information throughout these financial statements has not been restated to reflect the requirements of the new standards, except for separately presenting impairment loss on trade and other receivables (refer B. below).

   A.    AASB 15 Revenue from Contracts with Customers 

AASB 15 establishes a comprehensive framework for determining whether, how much and when revenue is recognised. It replaced AASB 18 Revenue and related interpretations.

Under AASB 18, the Group recognised revenue when the significant risks and rewards of ownership transferred to the customer, which was considered to be at the time of delivery of the product to the customer.

Under AASB 15, revenue is recognised when the Group transfers control of products to a customer at the amount to which the Group expects to be entitled. Revenue from the sale of oil and gas is recognised at a point in time when control of the product is transferred to the customer, which is typically on delivery.

The Group has adopted AASB 15 using the cumulative effect method (without practical expedients), with the effect of initially applying this standard recognised at the date of the initial application (i.e. 1 July 2018). Accordingly, the information presented for 2018 has not been restated - i.e. it is presented, as previously reported, under AASB 18 and related interpretations. Additionally, the disclosure requirements in AASB 15 have not generally been applied to comparative information.

The adoption of the new standard had no impact on the financial position or the consolidated financial statements.

NOTE 2 - BASIS OF PREPARATION (CONTINUED)

   (h)   Accounting Policies (Continued) 
   A.    AASB 9 Financial Instruments 

AASB 9 sets out requirements for recognising and measuring financial assets, financial liabilities and some contracts to buy or sell non-financial items. This standard replaces AASB 139 Financial Instruments: Recognition and Measurement.

As a result of the adoption of AASB 9, the Group has adopted consequential amendments to AASB 101 Presentation of Financial Statements, which require impairment of financial assets to be presented in a separate line item in the statement of profit or loss and OCI. Previously, the Group's approach was to include the impairment of trade and other receivables in other expenses. Consequently, the Group reclassified impairment losses amounting to $1,233,898, recognised under AASB 139, from 'other expenses' to 'provision for doubtful debts expense' in the statement of profit or loss and OCI for the year ended 30 June 2018.

   (i)             Classification and measurement of financial assets and liabilities 

AASB 9 contains three principal classification for financial assets: measured at amortised cost, fair value through other comprehensive income (FVOCI) and fair value through profit or loss (FVTPL). The classification of financial assets under AASB 9 is generally based on the business model in which a financial asset is managed and its contractual cash flow characteristics. AASB eliminates the previous AASB 139 categories of held to maturity, loans and receivables and available for sale.

AASB 9 largely retains the existing requirements in AASB 139 for the classification and measurement of financial liabilities.

The adoption of AASB 9 has not had a significant effect on the Group's accounting policies related to financial liabilities.

The following table and the accompanying notes below explain the original measurement categories under AASB 139 and the new measurement categories under AASB 9 for each class of the Group's financial assets and financial liabilities as at 1 July 2018.

The effect of adopting AASB 9 on the carrying amounts of financial assets at 1 July 2018 relates solely to the new impairment requirements.

 
                                                                        Original 
                                     Original                           carrying   New carrying 
                               classification   New classification        amount         amount 
                                   under AASB           under AASB    under AASB     under AASB 
                       Note                39                   39            39             39 
--------------------  -----  ----------------  -------------------  ------------  ------------- 
 Financial 
  assets                                                                       $              $ 
 Cash and cash                      Loans and            Amortised 
  equivalents                     receivables                 cost       375,507        375,507 
 Trade and                          Loans and            Amortised 
  other receivables     (1)       receivables                 cost       738,784        738,784 
--------------------  -----  ----------------  -------------------  ------------  ------------- 
 Total financial 
  assets                                                               1,114,291      1,114,291 
--------------------  -----  ----------------  -------------------  ------------  ------------- 
 Financial 
  liabilities 
 Trade and                    Other financial      Other financial 
  other payables                  liabilities          liabilities     (779,249)      (779,249) 
--------------------  -----  ----------------  -------------------  ------------  ------------- 
 Total financial 
  liabilities                                                          (779,249)      (779,249) 
--------------------  -----  ----------------  -------------------  ------------  ------------- 
 

(1) Trade and other receivables that were classified as loans and receivables under AASB 139 are now classified at amortised cost. An increase of $177,874 in the provision for doubtful debts was recognised in opening retained earnings at 1 July 2018 on transition to AASB 9.

NOTE 2 - BASIS OF PREPARATION (CONTINUED)

   (h)   Accounting Policies (Continued) 

The following table reconciles the carrying amounts of financial assets under AASB 139 to the carrying amounts under AASB 9 on transition to AASB 9 on 1 July 2018.

 
                                 AASB carrying 
                                     amount 
                                       at 
                                                                   AASB 9 
                                                                  carrying 
                                                                   amount 
                                    30 June                       at 1 July 
                                      2018       Remeasurement      2018 
                                       $               $              $ 
------------------------------  --------------  --------------  ----------- 
 Financial assets 
 Amortised cost 
 Trade and other receivables 
  (from loans and receivables 
  classification)                      738,784               -      738,784 
 Total amortised cost                  738,784               -      738,784 
------------------------------  --------------  --------------  ----------- 
 
    (ii)           Impairment of financial assets 

AASB 9 replaces the 'incurred loss' model in AASB 139 with an 'expected credit loss' (ECL) model. The new impairment model applies to financial assets measured at amortised cost. Under AASB 9, credit losses are recognised earlier than under AASB 139.

For assets in the scope of the AASB impairment model, impairment losses are generally expected to increase and become more volatile. The Group has determined that the application of AASB 9's impairment requirements at 1 July 2018 results in an additional allowance for impairment as follows:

 
 Loss allowance at 30 June 2018 
  under AASB 139                     5,497,703 
 Additional impairment recognised 
  at 1 July 2018 on: 
 Trade and other receivables as 
  at 30 June 2018                      177,874 
----------------------------------  ---------- 
 Loss allowance at 1 July 2018 
  under AASB 9                       5,675,577 
----------------------------------  ---------- 
 

The Group has not elected to early adopt any other new or amended AASB's that are issued but not yet effective (refer note 28).

This section focuses on the results and performance of the Group.

NOTE 3 - OPERATING SEGMENTS

An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Group's other components. The Group has identified its operating segments based upon the internal management reports that are reviewed and used by the executive management team in assessing performance and that are used to allocate the Group's resources. The operating segments identified by management are based on the geographical location of the business. Each segment has responsible officers that are accountable to the Managing Director (the Group's chief operating decision maker). The operating results of all operating segments are regularly reviewed by the Group's Managing Director to make decisions about resources to be allocated to the segment and assess its performance and for which discrete financial information is available. Segment results that are reported to the Managing Director include items directly attributable to a segment as well as those that can be allocated on a reasonable basis.

The Group's executive management team evaluates the financial performance of the Group and its segments principally with reference to revenues, production costs, expenditure on exploration evaluation and development costs.

The Group undertakes the exploration, development and production of hydrocarbons and its revenue is from the sale of oil and gas. Information reported to the Group's chief operating decision maker is on a geographical basis.

Financing requirements, finance income and expenses are managed at a Group level.

Corporate items include administration costs comprising personnel costs, head office occupancy costs and investor and registry costs. It may also include expenses incurred by non-operating segments, such as new ventures and those undergoing relinquishment. Assets and liabilities not allocated to operating segments and disclosed are corporate, and mostly comprise cash, plant and equipment, receivables as well as accruals for head office liabilities.

Major Customer

The Group's most significant customers are Enertech Fuel Solutions Pvt Limited with gas sales representing 39% of the Group's total revenues (2018: 61%) and Indian Oil Corporation Limited, in its capacity as nominee of the Government of India, with oil sales representing 61% of the Group's total revenues (2018: 39%).

Revenue

Revenue is recognised when the Group transfers control of products to a customer at the amount to which the Group expects to be entitled. Revenue from the sale of oil and gas is recognised at a point in time when control of the product is transferred to the customer, which is typically on delivery.

Expenses

Impairment - refer notes 7 and 8

Doubtful debts - refer note 12

Depreciation - refer note 16

Amortisation - refer note 8

Employee benefits - refer note 10

Leases - refer note 25

NOTE 3 - OPERATING SEGMENTS (Continued)

 
                           India             Australia         JPDA (1)             Indonesia             Corporate (2)               Consolidated 
---------------  ------------------------  ------------  --------------------  ------------------  --------------------------  -------------------------- 
                    2019         2018       2019   2018     2019       2018      2019      2018        2019          2018          2019          2018 
                      $            $         $      $        $          $          $         $           $             $             $             $ 
---------------  ----------  ------------  -----  -----  ---------  ---------  --------  --------  ------------  ------------  ------------  ------------ 
 Revenue 
 External 
  revenue           188,220       163,562      -      -          -          -         -         -             -             -       188,220       163,562 
---------------  ----------  ------------  -----  -----  ---------  ---------  --------  --------  ------------  ------------  ------------  ------------ 
 Cost of sales 
 Production 
  costs           (275,455)     (259,799)      -      -          -          -         -         -             -             -     (275,455)     (259,799) 
 Amortisation 
  of 
  development 
  assets            (1,931)       (3,263)      -      -          -          -         -         -             -             -       (1,931)       (3,263) 
 Movement in 
  oil stocks 
  inventory        (66,186)        63,796      -      -          -          -         -         -             -             -      (66,186)        63,796 
 Write-down of 
  inventories 
  to net 
  realisable 
  values          (161,354)             -      -      -          -          -         -         -             -             -     (161,354)             - 
---------------  ----------  ------------  -----  -----  ---------  ---------  --------  --------  ------------  ------------  ------------  ------------ 
 Total cost of 
  sales           (504,926)     (199,266)      -      -          -          -         -         -             -             -     (504,926)     (199,266) 
---------------  ----------  ------------  -----  -----  ---------  ---------  --------  --------  ------------  ------------  ------------  ------------ 
 Gross loss       (316,706)      (35,704)      -      -          -          -         -         -             -             -     (316,706)      (35,704) 
---------------  ----------  ------------  -----  -----  ---------  ---------  --------  --------  ------------  ------------  ------------  ------------ 
 Exploration 
  expenditure 
  expensed        (456,892)     (553,369)      -      -          -          -         -         -      (34,783)      (98,624)     (491,675)     (651,993) 
 Depreciation      (21,680)      (24,514)      -      -          -          -         -         -      (11,084)      (18,488)      (32,763)      (43,002) 
 Share-based 
  payments                -             -      -      -          -          -         -         -     (110,935)      (90,211)     (110,935)      (90,211) 
 Other income             -        13,139      -      -          -          -         -         -             -             -             -        13,139 
 Provision for 
  doubtful 
  debts expense           -             -      -      -          -          -         -         -     (108,206)   (1,233,898)     (108,206)   (1,233,898) 
 Other expenses    (10,459)   (1,341,374)      -      -   (85,050)   (23,557)   233,653   (6,737)   (2,104,219)     (792,210)   (1,966,075)   (2,163,878) 
---------------  ----------  ------------  -----  -----  ---------  ---------  --------  --------  ------------  ------------  ------------  ------------ 
 Reportable 
  segment 
  profit/(loss) 
  before income 
  tax             (805,737)   (1,941,822)      -      -   (85,050)   (23,557)   233,653   (6,737)   (2,369,226)   (2,238,431)   (3,026,360)   (4,210,547) 
---------------  ----------  ------------  -----  -----  ---------  ---------  --------  --------  ------------  ------------  ------------  ------------ 
 
 Net finance 
  income                                                                                                                           (92,759)         6,338 
 Foreign 
  exchange 
  (loss)/gain                                                                                                                           998      (26,768) 
 Income tax 
 expense                                                                                                                                  -             - 
                                                                                                                               ------------  ------------ 
 Net loss for 
  the year                                                                                                                      (3,118,121)   (4,230,977) 
                                                                                                                               ------------  ------------ 
 
 Segment assets   8,721,862     8,653,049      7      7     14,238     16,809         -         -       628,015       746,920     9,364,122     9,416,785 
---------------  ----------  ------------  -----  -----  ---------  ---------  --------  --------  ------------  ------------  ------------  ------------ 
 Segment 
  liabilities     4,104,158     3,917,537      -      -    861,776    815,900    78,454   297,022       954,873       378,116     5,999,261     5,408,575 
---------------  ----------  ------------  -----  -----  ---------  ---------  --------  --------  ------------  ------------  ------------  ------------ 
 
 
 

There were no significant inter-segment transactions during the year.

(1) Joint Petroleum Development Area.

(2) Corporate represents a reconciliation of reportable segment revenues, profit or loss, assets and liabilities to the consolidated figure.

note 4 - revenue and expenses

Loss from ordinary activities before tax has been determined after the following revenues and expenses:

 
                                                  Note          2019          2018 
                                                                   $             $ 
                                                        ------------  ------------ 
 (a) Revenue 
     Oil sales                                               115,673        63,337 
     Gas sales                                                72,547       100,225 
                                                        ------------  ------------ 
                                                             188,220       163,562 
                                                        ------------  ------------ 
 
 (b) Cost of Sales 
     Production costs                                      (275,455)     (259,799) 
     Amortisation of development assets                      (1,931)       (3,263) 
     Movement in oil stocks inventory                       (66,186)        63,796 
     Write-down of inventory to net realisable 
      values                                               (161,354)             - 
                                                        ------------  ------------ 
                                                           (504,926)     (199,266) 
                                                        ------------  ------------ 
 
 (c) Other Income 
     Profit on disposal of other assets                            -        13,139 
                                                        ------------  ------------ 
                                                                   -        13,139 
                                                        ------------  ------------ 
 
 (d) Exploration Expense                           3       (491,675)     (651,993) 
                                                        ------------  ------------ 
 
 (e) Administration Expenses 
     Employee benefits expense                             (819,627)     (925,660) 
     Redundancy benefits                                    (31,928)      (20,320) 
     Administration expense                              (1,106,295)   (1,155,505) 
                                                         (1,957,850)   (2,101,485) 
                                                        ------------  ------------ 
 
 (f) Other Expenses 
     Depreciation expense                          16       (32,763)      (43,002) 
     Oil sales written off                                         -      (63,590) 
     Loss on disposal of plant and equipment                 (8,227)       (3,803) 
                                                            (40,990)     (110,395) 
                                                        ------------  ------------ 
 
 (g) Finance income 
        Interest income                                        4,403         6,358 
                                                        ------------  ------------ 
 
 (h) Finance costs 
        Interest expense - borrowings                       (97,162)             - 
        Interest expense - other                                   -          (20) 
                                                        ------------  ------------ 
                                                            (97,162)          (20) 
                                                        ------------  ------------ 
 
 (i) Foreign Exchange (Loss)/Gain 
  - net 
     Foreign exchange (loss)/gain- realised                    5,580      (19,858) 
     Foreign exchange (loss)/gain - unrealised               (4,582)       (6,910) 
                                                        ------------  ------------ 
                                                                 998      (26,768) 
                                                        ------------  ------------ 
 

Accounting Policy - Revenue

Under AASB 18, the Group recognised revenue when the significant risks and rewards of ownership transferred to the customer, which was considered to be at the time of delivery of the product to the customer.

Under AASB 15, revenue is recognised when the Group transfers control of products to a customer at the amount to which the Group expects to be entitled. Revenue from the sale of oil and gas is recognised at a point in time when control of the product is transferred to the customer, which is typically on delivery.

NOTE 5 - INCOME TAX EXPENSE

Numerical reconciliation between tax expense and pre-tax accounting loss:

 
                                                       2019          2018 
                                                          $             $ 
                                               ------------  ------------ 
 
 Loss before tax                                (3,118,121)   (4,230,977) 
                                               ------------  ------------ 
 Tax using the domestic corporation tax 
  rate of 27.5% (2018: 27.5%)                     (857,483)   (1,163,519) 
 Effect of tax rate in foreign jurisdictions      (497,254)     (401,298) 
 Non-deductible expenses 
     Share-based payments                            30,507        24,808 
     Foreign expenditure non-deductible           1,609,412     1,404,174 
     Other non-deductible expenses                  208,577       200,478 
                                                    493,759        64,643 
                                               ------------  ------------ 
 
 Unrecognised deferred tax assets generated 
  during the year and not 
  brought to account at reporting date as 
  realisation is not regarded as probable                 -             - 
                                               ------------  ------------ 
 Tax expense                                        493,759        64,643 
 Tax losses utilised not previously brought 
  to account                                      (493,759)      (64,643) 
                                               ------------  ------------ 
 Tax expense for the year                                 -             - 
                                               ------------  ------------ 
 

Tax Assets and Liabilities

During the year ended 30 June 2019, $360,493 of tax losses were recognised and were offset against the current tax liability resulting in nil tax assets and liabilities.

 
                                                       2019         2018 
                                                          $            $ 
                                                -----------  ----------- 
 Unrecognised deferred tax assets not brought 
  to account at reporting date as realisation 
  is not regarded as probable - temporary 
  differences 
 Other                                           27,482,151   26,397,805 
 Losses available for offset against future 
  taxable income                                 17,018,120   16,204,468 
                                                -----------  ----------- 
 Deferred tax asset not brought to account       44,500,271   42,602,273 
                                                -----------  ----------- 
 

The deductible temporary differences and tax losses do not expire under current tax legislation.

The deferred tax asset not brought to account for the 2019 financial year will only be realised if:

-- It is probable that future assessable income will be derived of a nature and of an amount sufficient to enable the benefit to be realised;

-- The conditions for deductibility imposed by the tax legislation continue to be complied with; and

-- The companies are able to meet the continuity of ownership and/or continuity of business tests.

The foreign component of the deferred tax asset not brought to account for the 2019 financial year will only be realised if the Group derives future assessable income of a nature and of an amount sufficient to enable the benefit to be realised and the Group continues to comply with the deductibility conditions imposed by the Income Tax Act 1961 (India) and there is no change in income tax legislation adversely affecting the utilisation of the benefits.

NOTE 5 - INCOME TAX EXPENSE (continued)

Tax Consolidation

In accordance with tax consolidation legislation the Company, as the head entity of the Australian tax-consolidated group, has assumed the deferred tax assets initially recognised by wholly owned members of the tax-consolidated group with effect from 1 July 2004. Total tax losses of the Australian tax-consolidated group, available for offset against future taxable income are $5,480,637 (2018: $6,003,749).

Accounting Policy

Income tax expense comprises current and deferred tax. Income tax is recognised in profit or loss except to the extent that it relates to a business combination, or items recognised directly in equity, or in other comprehensive income.

Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years.

Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realised simultaneously.

Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised for differences relating to investments in subsidiaries to the extent that they probably will not reverse in the foreseeable future. Deferred tax is measured at the tax rates that are expected to be applied to the temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date.

A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available against which the temporary difference can be utilised. Deferred tax assets are reviewed at each reporting date and reduced to the extent that it is no longer probable that the related tax benefit will be realised.

Key Estimates and Assumptions

The application of the Group's accounting policy for recognition of tax losses requires management to make certain estimates and assumptions as to future events and circumstances, including the assessment of whether economic quantities of resources have been found, or alternatively, that the sale of the respective areas of interest will be achieved. Any such estimates and assumptions may change as new information becomes available. A deferred tax asset is only recognised for unused losses if it is probable that future taxable profits will be available to utilise those losses.

In determining the amount of current and deferred tax the Group considers the impact of uncertain tax positions and whether additional taxes and interest may be due. The Group believes that its accruals for tax liabilities are adequate for all open tax years based on its assessment of many factors, including interpretations of tax law and prior experience. This assessment relies on estimates and assumptions and may involve a series of judgements about future events. New information may become available that causes the Group to change its judgement regarding the adequacy of existing tax liabilities, such changes to tax liabilities will impact tax expense in the period that such a determination is made.

NOTE 6 - LOSS PER SHARE

   (a)   Basic Loss Per Share 
 
                                                                              2019            2018 
                                                                                 $               $ 
                                                                    --------------  -------------- 
 Loss used in calculating earnings per share 
 
 Loss for the period attributable to ordinary shareholders               3,380,391       4,230,977 
                                                                    --------------  -------------- 
 
 
                                                                              2019            2018 
                                                              Note          Number          Number 
                                                                    --------------  -------------- 
 Weighted average number of ordinary shares 
 
 Issued ordinary shares at 1 July                               17   2,001,968,379   1,684,302,899 
 Effect of shares issued                                               312,684,194      93,452,655 
 Effect of share options exercised                                      61,790,019       9,634,703 
                                                                    --------------  -------------- 
 Weighted average number of ordinary shares at 30 June               2,376,442,592   1,787,390,257 
                                                                    --------------  -------------- 
 
 
   (b)   Diluted Loss Per Share 

The Company's potential ordinary shares, being its options granted, are not considered dilutive as the conversion of these instruments would result in a decrease in the net loss per share.

Accounting Policy

Basic earnings per share is calculated by dividing net profit or loss attributable to ordinary shareholders of the parent entity by the weighted average number of ordinary shares outstanding during the year, adjusted for any bonus element.

Diluted earnings per share is determined by adjusting the profit attributable to ordinary shareholders and weighted average number of shares outstanding for the dilutive effect of potential ordinary shares, which may comprise outstanding options, warrants and their equivalents.

This section provides information on the assets employed to develop value for shareholders and the liabilities incurred as a result.

NOTE 7 - EXPLORATION AND EVALUATION

 
                                               2019      2018 
                                                  $         $ 
                                           --------  -------- 
 
 Balance at 1 July                          539,793   518,670 
 Effect of movements in foreign exchange 
  rates                                      29,095    21,123 
                                           --------  -------- 
 Balance at 30 June                         568,888   539,793 
                                           --------  -------- 
 

As at 30 June 2019, the balance of exploration and evaluation assets relates to the Cambay Field, which is currently at evaluation stage, and there was no impairment of this asset (2018: Nil).

The Cambay Field has minimal production that is sold to a third party.

Accounting Policy

Accounting for exploration and evaluation expenditure is assessed separately for each area of interest. Exploration and evaluation expenditure in respect of each area of interest is accounted for under the successful efforts method. An area of interest is an individual geological area which is considered to constitute a favourable environment for the presence of hydrocarbon resources or has been proven to contain such resources.

Expenditure incurred prior to securing legal rights to explore an area is expensed. Exploration licence acquisition costs relating to established oil and gas exploration areas are capitalised.

The costs of drilling exploration wells are initially capitalised pending the results of the well. Costs are expensed where the well does not result in a successful discovery.

All other exploration and evaluation expenditure, including general administration costs, geological and geophysical costs and new venture expenditure is expensed as incurred, except where:

-- The expenditure relates to an exploration discovery for which, at reporting date, an assessment of the existence or otherwise of economically recoverable reserves is not yet complete; or

-- The expenditure relates to an area of interest under which it is expected that the expenditure will be recouped through successful development and exploitation, or by sale.

When an oil or gas field has been approved for commercial development, the accumulated exploration and evaluation costs are first tested for impairment and then reclassified as development assets.

Impairment of Exploration and Evaluation Expenditure

The carrying value of exploration and evaluation assets are assessed at each reporting date if any of the following indicators of impairment exist:

-- The exploration licence term in the specific area of interest has expired during the reporting period or will expire in the near future and it is not anticipated that this will be renewed;

-- Expenditure on further exploration and evaluation of specific areas is not budgeted or planned;

-- Exploration for and evaluation of oil and gas assets in the specific area has not lead to the discovery of potentially commercial reserves; or

-- Sufficient data exists to indicate that the carrying amount of the asset is unlikely to be recovered in full, either by development or sale.

Key Estimates and Assumptions

The application of the Group's accounting policy for exploration and evaluation expenditure necessarily requires management to make certain estimates and assumptions as to future events and circumstances, particularly the assessment of whether economic quantities of resources have been found, or alternatively, that the sale of the respective areas of interest will be achieved. Critical to this assessment are estimates and assumptions as to contingent and prospective resources, the timing of expected cash flows, exchange rates, commodity prices and future capital requirements. These estimates and assumptions may change as new information becomes available. If, after having capitalised expenditure under this policy, it is determined that the expenditure is unlikely to be recovered by future exploitation or sale, then the relevant capitalised amount will be written off to the consolidated statement of profit or loss and other comprehensive income.

NOTE 8 - DEVELOPMENT ASSETS

 
                                               2019         2018 
                                                 $            $ 
                                           -----------  ----------- 
 Cost 
 Balance at 1 July                          16,235,257   15,631,750 
 Effect of movements in foreign exchange 
  rates                                        831,271      603,507 
                                           -----------  ----------- 
 Balance at 30 June                         17,066,528   16,235,257 
                                           -----------  ----------- 
 
 
 Amortisation and Impairment Losses 
 Balance at 1 July                          10,070,002    9,704,462 
 Amortisation charge for the year                1,931        3,263 
 Effect of movements in foreign exchange 
  rates                                        499,005      362,277 
                                           -----------  ----------- 
 Balance at 30 June                         10,570,938   10,070,002 
                                           -----------  ----------- 
 
 
 Carrying Amounts 
 At 1 July           6,165,255   5,927,288 
                    ----------  ---------- 
 
 At 30 June          6,495,590   6,165,255 
                    ----------  ---------- 
 

Cambay Field Development Assets

Development assets are reviewed at each reporting date to determine whether there is any indication of impairment or reversal of impairment. Indicators of impairment can include changes in: market conditions, future oil and gas prices and future costs, extension of the Cambay Production Sharing Contract and the status of the disputes arising from the issue of the event of default notice to GSPC. No indicators of impairment were identified in the 2019 or 2018 financial years.

There was no impairment on the Cambay Field development assets during the year ended 30 June 2019 (2018: Nil).

Accounting Policy

Development expenditure includes past exploration and evaluation costs, pre-production development costs, development drilling, development studies and other subsurface expenditure pertaining to that area of interest. Costs related to surface plant and equipment and any associated land and buildings are accounted for as property, plant and equipment.

The definition of an area of interest for development expenditure is narrowed from the exploration permit for exploration and evaluation expenditure to the individual geological area where the presence of an oil or natural gas field exists, and in most cases will comprise an individual oil or gas field.

Amortisation is not charged on costs carried forward in respect of areas of interest in the development phase until production commences. When production commences, carried forward development costs are amortised on a units of production basis over the life of economically recoverable reserves.

Impairment of Development Assets

The carrying value of development assets are assessed on a cash generating unit (CGU) basis at each reporting date to determine whether there is any indication of impairment or reversal of impairment. Indicators of impairment can include changes in market conditions, future oil and gas prices and future costs. Where an indicator of impairment exists, the assets recoverable amount is estimated.

An impairment loss is recognised if the carrying amount of an asset or its CGU exceeds its estimated recoverable amount. A CGU is the smallest identifiable asset group that generates cash flows that are largely independent from other assets and groups. The CGU is the Cambay Field, India. Impairment losses are recognised in profit or loss.

The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell (FVLCS). As a market price is not available, FVLCS is determined by using a discounted cash flow approach. In assessing FVLCS, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Valuation principals that apply when determining FVLCS are that future events that would affect expected cash flows are included in the calculation of FVLCS.

Impairment losses are reversed when there is an indication that the loss has decreased or no longer exists and there has been a change in the estimate used to determine the recoverable amount. Such estimates include beneficial changes in reserves and future costs, or material increases in selling prices. An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, net of amortisation, if no impairment loss had been recognised.

NOTE 8 - development assets (continued)

Key Estimates and Assumptions

Significant judgements and assumptions are required by management in estimating the present value of future cash flows particularly in the assessment of long life development assets. It should be noted that discounted cash flow calculations are subject to variability in key assumptions including, but not limited to, the expected life of the relevant area of interest, long-term oil and gas prices, currency exchange rates, pre-tax discount rates, number of future wells, production profiles and operating costs.

An adverse change in one or more of the assumptions used to estimate FVLCS could result in an adjustment to the development asset's recoverable amount.

Development costs are amortised on a units of production basis over the life of economically recoverable reserves, so as to write off costs in proportion to the depletion of the estimated reserves. The estimation of reserves requires interpretation of geological and geophysical data. The geological and economic factors which form the basis of reserve estimates may change over reporting periods. There are a number of uncertainties in estimating resources and reserves, and these estimates and assumptions may change as new information becomes available.

NOTE 9 - INVENTORIES

 
                                                   2019        2018 
                                                      $           $ 
                                             ----------  ---------- 
 
 Oil on hand - net realisable value              31,632      94,096 
 Drilling inventory - net realisable value    1,109,678   1,209,149 
                                             ----------  ---------- 
                                              1,141,310   1,303,245 
                                             ----------  ---------- 
 

Inventories have been reduced by $161,354 (2018: $nil) as a result of write-down to net realisable value.

Accounting Policy

Inventories comprising materials and consumables and petroleum products are measured at the lower of cost and net realisable value. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses.

NOTE 10 - PROVISIONS

 
                                                2019        2018 
                                                   $           $ 
                                          ----------  ---------- 
 Site Restoration, Well Abandonment and 
  Other Provisions 
 Balance at 1 July                         4,354,675   4,184,269 
 Provision adjustments during the year             -           - 
  - Termination (refer note 26) 
 Effect of movements in exchange rates       234,716     170,406 
                                          ----------  ---------- 
 Balance at 30 June                        4,589,391   4,354,675 
                                          ----------  ---------- 
 
 Current - Termination (refer Note 26)       855,554     811,798 
 Non-current - Restoration                 3,733,837   3,542,877 
                                          ----------  ---------- 
                                           4,589,391   4,354,675 
                                          ----------  ---------- 
 
 
 Current - Employee benefits                 148,731     274,651 
                                          ----------  ---------- 
 

Accounting Policy

Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, and it is probable that an outflow of economic benefits will be required to settle the obligation and when a reliable estimate can be made of the amount of the obligation.

Provisions are made for site rehabilitation of an oil and gas field on an incremental basis during the life of the field (which includes the field plant closure phase). Provisions include reclamation, plant closure, waste site closure and monitoring activities. These costs have been determined on the basis of current costs, current legal requirements and current technology. At each reporting date the rehabilitation provision is re-measured to reflect any changes in the timing or amounts of the costs to be incurred. Any such changes are dealt with on a prospective basis.

Short-term employee benefits for wages, salaries and fringe benefits are measured on an undiscounted basis and expensed as the related service is provided. A liability is recognised based on remuneration wage and salary rates that the Group expects to pay as at the reporting date as a result of past service provided by the employee, if the obligation can be measured reliably.

NOTE 10 - PROVISIONS (continued)

The Group's net obligation in respect of long-term service benefits is the amount of future benefit that employees have earned in return for their service up to the reporting date. The obligation is calculated using expected future increases in wage and salary rates including related on-costs and expected settlement dates; and is discounted using the high quality corporate bond rate at reporting date which have maturity dates approximating to the terms of the Group's obligations.

Key Estimates and Assumptions

In relation to rehabilitation provisions the Group estimates the future removal costs of onshore oil and gas production facilities, wells and pipeline at the time of installation of the assets. In most instances, removal of assets occurs many years into the future. This requires judgemental assumptions regarding removal date, future environmental legislation, the extent of reclamation activities required, the engineering methodology for estimating cost, future removal technologies in determining the removal cost, and discount rates to determine the present value of these cash flows.

NOTE 11 - CASH AND CASH EQUIVALENTS

 
                                2019      2018 
                                   $         $ 
                            --------  -------- 
 
 Cash at bank and on hand    357,970   375,507 
                            --------  -------- 
 

The Group's exposure to interest rate risk and a sensitivity analysis for financial assets and liabilities are disclosed in note 21.

Accounting Policy

Cash and cash equivalents comprise bank balances, call deposits, cash in transit and short-term deposits with an original maturity of three months or less from the acquisition date that are subject to an insignificant risk of changes in their fair value, and are used by the Group in the management of its short-term commitments.

Reconciliation of Cash Flows from Operating Activities

 
                                                    2019          2018 
                                                       $             $ 
                                            ------------  ------------ 
 
 Net loss                                    (3,118,121)   (4,230,977) 
 Amortisation of development assets                1,931         3,263 
 Depreciation                                     32,763        43,002 
 Interest expense                                 72,695             - 
 Provision for doubtful debts expense            108,206     1,297,488 
 Loss on disposal of assets                        8,227         3,803 
 Profit on disposal of scrap                           -      (13,139) 
 Equity settled share-based payments             110,935        90,211 
 Unrealised foreign exchange (gain)/loss        (46,688)      (39,134) 
 
 Operating Loss Before Changes in Working 
  Capital and Provisions                     (2,830,052)   (2,845,483) 
 
 Movement in trade and other payables           (82,065)     (480,924) 
 Movement in prepayments                        (41,193)        13,278 
 Movement in trade and other receivables        (45,269)     (570,406) 
 Movement in provisions                                -       (1,034) 
 Movement in inventories                         161,936     (115,135) 
 Movement in employee benefits                 (125,920)        45,933 
 Net Cash Used in Operating Activities       (2,962,563)   (3,953,771) 
                                            ------------  ------------ 
 
 

NOTE 12 - TRADE AND OTHER RECEIVABLES

 
                                        2019          2018 
                                           $             $ 
                                ------------  ------------ 
 Current 
 Allocation of receivables 
 Joint venture receivables           353,492       446,600 
 Other receivables                   144,482       292,184 
                                ------------  ------------ 
                                     497,974       738,784 
                                ------------  ------------ 
 
 Joint venture receivables 
 Joint venture receivables         6,272,808     5,835,042 
 Provision for doubtful debts    (5,919,316)   (5,388,442) 
                                     353,492       446,600 
                                ------------  ------------ 
 
 Other receivables 
 Corporate receivables               288,040       401,445 
 Provision for doubtful debts      (143,558)     (109,261) 
                                     144,482       292,184 
                                ------------  ------------ 
 

Joint venture receivables include the Group's share of outstanding cash calls and recharges owing from the joint venture partners, as well as other minor receivables.

The Group considers that there is evidence of impairment if any of the following indicators are present; financial difficulties of the debtor, probability that the debtor will dispute amounts owing and default or delinquency in payment (more than one year old). Whilst the Group has been in ongoing discussions with its joint venture partner Gujarat State Petroleum Corporation (GSPC), for repayment of disputed and other amounts owing, in line with identified impairment indicators, an assessment has been made of the recoverable balance as at 30 June 2019. Each receivable has been assessed individually for recovery, and those deemed to have a low chance of recovery have been fully provided for in the current year. Accordingly, the Indian cash calls receivable have been fully provided for.

The Group is in continuing discussions with GSPC in order to resolve the outstanding issues and recover the outstanding amounts.

The carrying value of trade and other receivables approximates its fair value due to the assessment of recoverability.

Details of the Group's credit risk are disclosed in note 21(b).

 
                                                      2019          2018 
                                                         $             $ 
                                              ------------  ------------ 
 Movement in provision for doubtful debts 
 Balance at 1 July                             (5,497,703)   (4,055,327) 
 Provisions (made)/reversed during the year      (108,206)   (1,233,898) 
 Provision adjustment, as at 1 July 2018,        (177,874)             - 
  on adoption of AASB 9 
 Effect of movements in exchange rates           (279,091)     (208,478) 
                                              ------------  ------------ 
 Balance at 30 June                            (6,062,874)   (5,497,703) 
                                              ------------  ------------ 
 
 Allocation of impairment loss 
 Joint venture receivables                     (5,919,316)   (5,388,442) 
 Other receivables                               (143,558)     (109,261) 
                                              ------------  ------------ 
                                               (6,062,874)   (5,497,703) 
                                              ------------  ------------ 
 

NOTE 12 - TRADE AND OTHER RECEIVABLES (CONTINUED)

Accounting Policy from 1 July 2018

Trade and other receivables, which includes receivables, loans and deposits, are initially recognised when they are originated. All other financial assets are initially recognised when the Group becomes a party to the contractual provisions of the instrument.

All trade and other receivables do not include a significant financing component and are therefore initially measured at the transaction price.

On initial recognition, trade and other receivables are classified as measured as at amortised cost. Financial assets are not reclassified subsequent to their initial recognition unless the Group changes its business model for managing financial assets.

A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as at FVTPL:

- It is held within a business model whose objective is to hold assets to collect contractual cash flows; and

- Its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

For the purpose of this assessment, 'principal' is defined as the fair value of the financial asset on initial recognition. 'Interest' is defined as consideration for the time value of money and for the credit risk associated with the principal amount outstanding during a particular amount of time and for other basic lending risks and costs (e.g. liquidity risk and administrative costs).

The Group derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire , or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Group neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset.

Financial assets and liabilities are offset and the net amount presented in the statement of financial position when, and only when, the Group has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously.

Impairment of Receivables

The Group recognises loss allowances for 'expected credit loss' (ECL's) on financial assets measured at amortised cost. Loss allowances for trade and other receivables are always measured at an amount equal to lifetime ECL's.

When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating ECL's, the Group considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis, based on the Group's historical experience and informed credit assessment and including forward-looking information.

The Group assumes that the credit risk on a financial asset has increased significantly if it is more than 30 days past due.

The Group considers a financial asset to be in default when the financial asset is more than 90 days due past.

Lifetime ECL's are the ECL's that result from all possible default events over the expected life of a financial instrument.

Measurement of ECL's

ECL's are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls (i.e. the difference between the cash flows due to the entity in accordance with the contract and the cash flows that the Group expects to receive. ECL's are discounted at the effective interest rate of the financial asset.

Expected credit loss assessment for corporate customers as at 1 July 2018 and 30 June 2019

The Group uses its allowance schedule to measure the ECLs of trade and other receivables. The allowance schedule is based on actual credit loss experience over the past years. The ECL computed is purely derived from historical data which management is of the view that the historical conditions are representative of the conditions prevailing at the reporting date.

Write-off

The gross carrying amount of a financial asset is written off when the Group has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof.

NOTE 12 - TRADE AND OTHER RECEIVABLES (CONTINUED)

Accounting Policy prior to 1 July 2018

The Group initially recognises loans, receivables and deposits on the date that they are originated. All other financial assets (including assets designated at fair value through profit or loss) are recognised initially on the trade date at which the Group becomes a party to the contractual provisions of the instrument.

Financial assets and liabilities are offset and the net amount presented in the statement of financial position when, and only when, the Group has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously.

Loans and receivables are financial assets with fixed or determinable payments that are not quoted in an active market. Such assets are recognised initially at fair value and subsequently measured at amortised cost, less any impairment losses.

A provision for doubtful debts is recognised in profit or loss when there is objective evidence of non-recovery or an impairment indicator exists. If receivables are subsequently recovered, or an event causes the amount of impairment loss to decrease, the amounts are reversed through profit or loss.

Impairment of Receivables

In assessing collective impairment, the Group uses historical trends of the probability of default, timing of recoveries and the amount of loss incurred, adjusted for management's judgement as to whether current economic and credit conditions are such that the actual losses are likely to be greater or less than suggested by historical trends. The Group considers that there is evidence of impairment if any of the following indicators are present; financial difficulties of the debtor, probability that the debtor will dispute amounts owing and default or delinquency in payment (more than one year old).

Key Estimates and Assumptions

The Group considers evidence of impairment for receivables at both a specific asset and collective level. All individually significant receivables are assessed for specific impairment. All individually significant receivables found not to be specifically impaired are then collectively assessed for any impairment that has been incurred but not yet identified. Receivables that are not individually significant are collectively assessed for impairment by grouping together receivables with similar risk characteristics. This requires judgemental assumptions regarding recoverability. Changes in these assumptions impact the recoverable amount of the asset.

NOTE 13 - TRADE AND OTHER PAYABLES

 
                       2019      2018 
                          $         $ 
                   --------  -------- 
 
 Trade creditors    302,338   297,640 
 Accruals           394,846   481,609 
                   --------  -------- 
                    697,184   779,249 
                   --------  -------- 
 

The Company's assessment in note 12, of the recoverability of outstanding cash call amounts owing from its joint venture partner (GSPC) has resulted in an additional impairment and consequently the Company is of the opinion that the Cambay Joint Venture will be unable to meet its third party liabilities, without financial support from the Company as Operator, due to non-payment of outstanding cash calls by the Joint Venture partner. As a result, the Group has accrued an additional $76,116 at 30 June 2019 (2018: $107,267) to cover Cambay and Bhandut Joint Venture third party liabilities.

The carrying value of trade and other payables is considered to approximate its fair value due to the short nature of these financial liabilities.

Accounting Policy

Trade and other payables are recorded at the value of the invoices received and subsequently measured at amortised cost and are non-interest bearing. The liabilities are for goods and services provided before year end, that are unpaid and arise when the Group has an obligation to make future payments in respect of these goods and services. The amounts are unsecured. Financial assets and liabilities are offset and the net amount presented in the statement of financial position when and only when, the Group has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously.

NOTE 14 - BORROWINGS

 
                      2019   2018 
                         $      $ 
                  --------  ----- 
 
 Unsecured Loans   563,955      - 
                   563,955      - 
                  --------  ----- 
 

Terms and repayment schedule

At 30 June 2019, the terms and conditions of outstanding loans are as follows:

 
                                                                               2019                2018 
                                                                                 $                   $ 
                                                                       -------------------  ------------------ 
                                              Nominal 
                                              interest       Year        Face     Carrying    Face    Carrying 
                                 Currency       rate      of maturity    value     amount     value    amount 
                                ----------  ----------  -------------  --------  ---------  -------  --------- 
 Unsecured loans - from 
  shareholders and financiers          AUD        5.0%           2019   580,000    563,955       --          - 
                                                                       --------  ---------  -------  --------- 
 

At balance date, options had been issued to the lenders in connection to the above loans, as follows:

a) 91,666,666 share options @ $0.0036 exercisable on or before the applicable loan maturity date of 26 July 2019; and

b) 60,664,887 share options @ $0.004121 exercisable on or before the applicable loan maturity date of 1 October 2019.

In determining the fair value of the liability component of these borrowing arrangements, it has been estimated that the effective interest rate of similar borrowings without a share option component is 18%. The fair value of the share options equity component of these borrowing arrangements has been recognised in the Loans Options Reserve as the loans have been treated as a convertible note. That is, the borrowing arrangement falls within the definition of a compound financial instrument and as such as been classified as both a financial liability and equity.

On 23 July 2019, the Group entered into an amendment agreement to vary the terms of its loan funding facility of $330,000 entered into on 26 July 2018. Pursuant to the amendment, the loan repayment date has been extended from 26 July 2019 to 1 October 2019. In addition, the Company will issue 124,060,150 new options to the lenders at an exercise price of $0.00266 and expiry date of 31 December 2019, which were subject to shareholder approval at a General Meeting to be held on 12 September 2019, which was duly forthcoming. All other loan terms and conditions remain the same; and are extended to 1 October 2019.

The total 91,666,666 share options @ $0.0036 exercisable on or before 26 July 2019, attached to the above-mentioned loans, were not exercised and have lapsed.

The above-mentioned 124,060,150 options were subsequently issued on 27 September 2019.

On 30 September 2019, the Company entered into an amendment agreement to vary the terns of its loan funding facility of $300,000 entered into on 26 July 2018; and the subsequent amendment noted in a) above. Pursuant to the amendment, the loan repayment date has been extended to 15 October 2019.

Furthermore, the Company also entered into an amendment agreement to vary the terms of its loan funding facility of $250,000 entered into on 11 September 2018. Pursuant to the amendment, the loan repayment date has been extended from 1 October 2019 to 1 April 2020. Pursuant to the extension, the Company will issue 60,664,887 options at $0.004121 on or before 1 April 2020.

The loans are subject to the following key undertakings without prior approval by the lenders:

   --      Not to dispose of assets having an aggregate value of more than $1 million; 
   --      Not to incur any financial indebtedness more than $50,000; and 

-- Not to incur any aggregate payment or outgoing exceeding $1m (except for employee benefit expenses).

NOTE 14 - BORROWINGS (CONTINUED)

Accounting Policy

General

All borrowings are initially recognised when the Group becomes a party to the contractual provisions of the lending instrument. All borrowings are initially recognised at fair value less transaction costs. Borrowings are subsequently carried at amortised cost.

The Group derecognises a financial liability when its contractual obligations are discharged, cancelled or expire. The Group also derecognises a financial liability when its terms are modified and the cash flows of the modified liability are substantially different, in which case a new financial liability based on the modified terms is recognised at fair value.

On derecognition of a financial liability, the difference between the carrying amount extinguished and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognised in profit or loss.

Series A and Series B Loan

The liability component of loans are initially recognised at the fair value of a similar liability that does not have an equity conversion option. The equity component is initially recognised at the difference between the fair value of the loan as a whole and the fair value of the liability component. Subsequent to initial recognition, the liability component of the loan is measured at amortised cost using the effective interest method. The equity component of a loan is not remeasured. Interest related to the financial liability is recognised in profit or loss.

NOTE 15 - EXPITURE COMMITMENTS

Exploration Expenditure Commitments

In order to maintain rights of tenure to exploration permits, the Group is required to perform exploration work to meet the minimum expenditure requirements specified by various state and national governments. These obligations are subject to renegotiation when application for an exploration permit is made and at other times. These obligations are not provided for in the financial report. The expenditure commitments are currently estimated to be $nil (2018: $nil).

There are no minimum exploration work commitments in the Cambay and Bhandut Production Sharing Contracts.

When obligations expire, are re-negotiated or cease to be contractually or practically enforceable, they are no longer considered to be a commitment.

Further expenditure commitments for subsequent permit periods are contingent upon future exploration results. These cannot be estimated and are subject to renegotiation upon expiry of the existing exploration leases.

Capital Expenditure Commitments

The Group had no capital commitments as at 30 June 2019 (2018: Nil).

NOTE 16 - PROPERTY, PLANT AND EQUIPMENT

 
                                    Motor    Plant and       Office 
                                 Vehicles    Equipment    Furniture       Total 
                                        $            $            $           $ 
                               ----------  -----------  -----------  ---------- 
 Cost 
 Balance at 1 July 
  2017                              9,398      893,309      145,932   1,048,639 
 Disposals                              -     (23,339)      (4,565)    (27,904) 
 Currency translation 
  differences                         383       18,151        3,009      21,543 
                               ----------  -----------  -----------  ---------- 
 Balance at 30 June 
  2018                              9,781      888,121      144,376   1,042,278 
                               ----------  -----------  -----------  ---------- 
 
 Additions                              -            -        2,149       2,149 
 Disposals                              -        (681)     (13,841)    (14,522) 
 Currency translation 
  differences                         527       24,998        4,146      29,671 
                               ----------  -----------  -----------  ---------- 
 Balance at 30 June 
  2019                             10,308      912,438      136,830   1,059,576 
                               ----------  -----------  -----------  ---------- 
 
 Depreciation and Impairment 
  Losses 
 Balance at 1 July 
  2017                              8,896      712,811      105,978     827,685 
 Depreciation charge 
  for the year                        132       38,244        4,626      43,002 
 Disposals                              -     (21,025)      (3,076)    (24,101) 
 Currency translation 
  differences                         369       13,749        2,644      16,762 
                               ----------  -----------  -----------  ---------- 
 Balance at 30 June 
  2018                              9,397      743,779      110,172     863,348 
                               ----------  -----------  -----------  ---------- 
 
 Depreciation charge 
  for the year                        108       28,682        3,973      32,763 
 Disposals                              -        (655)      (5,068)     (5,723) 
 Currency translation 
  differences                         508       19,095        3,658      23,261 
                               ----------  -----------  -----------  ---------- 
 Balance at 30 June 
  2019                             10,013      790,901      112,735     913,649 
                               ----------  -----------  -----------  ---------- 
 
 Carrying amounts 
 At 1 July 2018                       384      144,342       34,204     178,930 
                               ----------  -----------  -----------  ---------- 
 At 30 June 2019                      295      121,537       24,095     145,927 
                               ----------  -----------  -----------  ---------- 
 
 

Accounting Policy

Property, plant and equipment is measured at cost less accumulated depreciation and any accumulated impairment losses. The cost of self-constructed assets includes the cost of materials, direct labour, the initial estimate, where relevant, of the costs of dismantling and removing the items and restoring the site on which they are located and an appropriate proportion of overheads.

Gains and losses on disposal are determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment and are recognised net in the consolidated statement of profit or loss and other comprehensive income.

Depreciation is calculated using the reducing balance or straight line method over the estimated useful life of the assets, with the exception of software which is depreciated at prime cost. The estimated useful lives in the current and comparative periods are as follows:

   --     Motor vehicles                   4 to 7 years 
   --     Plant and equipment         2 to 7 years 
   --     Office furniture                 2 to 10 years 

Depreciation methods, useful lives and residual values are reviewed and adjusted if appropriate, at each financial year end.

Impairment of Property, Plant and Equipment

The carrying value of assets are assessed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the assets recoverable amount is estimated.

This section addresses the Group's capital structure, the Group structure and related party transactions, as well as including information on how the Group manages various financial risks.

NOTE 17 - ISSUED CAPITAL AND RESERVES

The reconciliation of the movement in capital and reserves for the consolidated entity can be found in the consolidated statement of changes in equity.

   (a)   Issued Capital 
 
                                                2019                2019                2018                2018 
                                                Number                $                 Number                $ 
  Ordinary Shares                         of Ordinary Shares    Issued Capital    of Ordinary Shares    Issued Capital 
                                        --------------------  ----------------  --------------------  ---------------- 
 
 On issue at 1 July - fully paid               2,001,968,379       174,046,036         1,684,302,899       172,866,479 
 Issue of share capital 
     Shares issued for cash (1) (6)              458,793,303         2,126,049           282,894,737         1,100,000 
     Shares issued for non-cash (2) 
      (4) (7) (8)                                 26,365,320           110,936            23,048,521            90,211 
     Exercise of unlisted options (3) 
      (5)                                        100,190,999           395,367            11,722,222            43,146 
     Capital raising costs                                 -         (176,188)                     -          (53,800) 
 Balance at 30 June - fully paid               2,587,318,001       176,502,200         2,001,968,379       174,046,036 
                                        --------------------  ----------------  --------------------  ---------------- 
 

Refer notes following for additional information and note 22 for details of unlisted options.

The shares issued in lieu of non-executive director income were approved by shareholders at the Annual General Meeting (AGM) held on 29 November 2017 for the period from 1 November 2017 to 31 October 2018; and the AGM held on 29 November 2018 for the period from 1 November 2018 to 1 October 2019. The shares were issued at a price based upon the Volume Weighted Average Price (VWAP) for the 10 trading days prior to the date of issue for the period from 1 July 2018 to 31 October 2018; and the 10-Day VWAP up to the applicable quarter end for the period from 1 November to 30 June 2019.

In accordance with the ASX waiver granted on 17 October 2018, the Company advised that the number of remuneration shares that were issued to directors totalled to 11,437,407 for the year ended 30 June 2019, which was equivalent to 0.44% of the Company's issued capital as at 30 June 2019.

Additional information of the issue of ordinary shares and unlisted options:

(1) Pursuant to a debt and equity capital raise announcement dated 11 September 2018 and 17 September 2018, relating to the placement of 278,237,748 new ordinary shares at an issue price of GBP0.0019 (A$0.0034):

   -       157,894,737 shares were issued on 17 September 2018; 
   -       91,222,452 shares were issued on 26 September 2018; and 
   -       29,120,559 shares were issued on 14 December 2018. 

(2) On 26 September 2018, the Company issued:

- 317,029 and 10,526,315 shares as consideration for consulting services at an issue price of $A0.004 and

GBP0.0019 (A$0.0034) respectively per ordinary share; and

- 3,467,070 shares in lieu of non-executive director remuneration at an issue price of $0.004 per ordinary share.

(3) On 16 November 2018, the Company issued 90,190,999 shares upon the exercise of the following unlisted options:

   -       64,944,444 options @ GBP0.00225 per share; 
   -       9,473,684 options @ GBP0.0019 per share; and 
   -       15,772,871 options @ A$0.004121 per share. 

(4) On 29 November 2018, the Company issued 1,724,904 shares in lieu of non-executive director remuneration at an issue price of $0.008 per ordinary share.

(5) On 5 December 2018, the Company issued 10,0000 shares upon the exercise of 10,000,000 options @ GBP0.00225 per ordinary share (expiry 22 May 2020).

(6) Pursuant to an equity raise announcement on 18 December 2018 relating to the placement of 180,555,555 new ordinary shares at an issue price of GBP0.0036 (A$0.006314) per ordinary share:

   -       55,555,555 shares were issued on 21 December 2018; 
   -       39,583,333 shares were issued on 2 January 2019; 
   -       71,527,778 shares were issued on 4 January 2019; and 
   -       13,888,889 shares were issued on 16 January 2019. 

NOTE 17 - ISSUED CAPITAL AND RESERVES (CONTINUED)

(7) On 1 April 2019:

- the Company issued 1,760,000 shares as consideration for consulting services at an issue price of $A0.005 per

ordinary share; and

- the Company issued 2,772,864 shares in lieu of non-executive director income at an issue price of $0.005 per ordinary share.

(8) On 18 June 2019:

- the Company issued 2,324,569 shares as consideration for consulting services at an issue price of $A0.004 per

ordinary share; and

- the Company issued 3,472,569 shares in lieu of non-executive director income at an issue price of $0.004 per ordinary share.

The Company does not have authorised capital or par value in respect of its issued shares. The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Company.

Accounting Policy

Ordinary shares are classified as equity. Transaction costs directly attributable to the issue of ordinary shares and share options are recognised as a deduction from equity, net of any tax effects.

   (b)   Reserves 
 
                                           2019           2018 
                                             $           $ 
                                        ----------  ---------- 
 
 Foreign Currency Translation Reserve    7,376,163   7,296,212 
 Option Reserve                             36,485     331,889 
 Loans Option Reserve                       88,740           - 
                                        ----------  ---------- 
                                         7,501,388   7,628,101 
                                        ----------  ---------- 
 

Foreign Currency Translation Reserve (FCTR)

The foreign currency translation reserve is comprised of all foreign currency differences arising from the translation of the financial statements of foreign operations from their functional currency to Australian dollars.

The assets and liabilities of foreign operations are translated to Australian dollars at exchange rates at the reporting date. The income and expenses of foreign operations are translated to Australian dollars at exchange rates at the dates of the transactions.

Foreign currency differences are recognised in other comprehensive income and accumulated in the FCTR. When the settlement of a monetary item receivable from or payable to a foreign operation is neither planned nor likely in the foreseeable future, foreign exchange gains and losses arising from such a monetary item are considered to form part of a net investment in a foreign operation and are recognised in other comprehensive income and are presented within equity in the FCTR.

Option Reserve

The option reserve recognises the fair value of options issued but not exercised. Upon the exercise, lapsing or expiry of options, the balance of the option reserve relating to those options is transferred to accumulated losses.

NOTE 18 - CONSOLIDATED ENTITIES

 
                                               Country of       Ownership Interest % 
                                              Incorporation 
                                            ---------------- 
                                                                  2019        2018 
------------------------------------------  ----------------  -----------  ---------- 
 Parent Entity 
 Oilex Ltd                                      Australia 
 
 Subsidiaries 
 Independence Oil and Gas Limited               Australia         100          100 
 Admiral Oil and Gas Holdings Pty Ltd           Australia         100          100 
 Admiral Oil and Gas (106) Pty Ltd              Australia         100          100 
 Admiral Oil and Gas (107) Pty Ltd              Australia         100          100 
 Admiral Oil Pty Ltd                            Australia         100          100 
 Oilex (JPDA 06-103) Ltd                        Australia         100          100 
 Merlion Energy Resources Private Limited         India           100          100 
 Oilex N.L. Holdings (India) Limited             Cyprus           100          100 
 Oilex (West Kampar) Limited (1)                 Cyprus           100          100 
------------------------------------------  ----------------  -----------  ---------- 
 

(1) The Group is currently engaging with the Indonesian regulators with a view to returning its interest in West Kampar. It is intended to liquidate the Company as soon as arrangements can be made.

Accounting Policy

The Group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.

NOTE 19 - JOINT ARRANGEMENTS

The Group's interests in joint arrangements as at 30 June 2019 are detailed below. Principal activities are oil and gas exploration, evaluation, development and production.

(a) Joint Operations Interest

 
                                                              2019   2018 
 Permit                                                         %      % 
-----------------------  ----------------------------------  -----  ----- 
 OFFSHORE 
 JPDA 06-103 (1)          Timor Leste and Australia (JPDA)    10.0   10.0 
 
 ONSHORE 
 Cambay Field             India (Cambay Basin)                45.0   45.0 
 Bhandut Field            India (Cambay Basin)                40.0   40.0 
 Sabarmati Field (2)      India (Cambay Basin)                40.0   40.0 
 West Kampar Block (3)    Indonesia (Central Sumatra)         67.5   67.5 
 

(1) The JPDA 06-103 Production Sharing Contract was terminated on 15 July 2015. The Joint Operating Agreement between the Joint Venture participants is still in effect.

(2) The Sabarmati Production Sharing Contract was cancelled on 10 August 2016. The Joint Operating Agreement between the Joint Venture participants is still in effect.

(3) Oilex (West Kampar) Limited is entitled to have assigned an additional 22.5% to its holding of 45% through exercise of its rights under a Power of Attorney granted by PT Sumatera Persada Energi (SPE), following the failure by SPE to repay funds due. The assignment request had been provided to BPMigas (now SKK Migas), the Indonesian Government regulator, and had not been approved or rejected. The West Kampar Contract Area Production Sharing Contract was terminated on 15 August 2018. The Group is currently engaging with the Indonesian regulators with a view to returning its interest in West Kampar. It is intended to liquidate the Company as soon as arrangements can be made.

NOTE 19 - JOINT ARRANGEMENTS (CONTINUED)

(b) Joint Operations

The aggregate of the Group's interests in all joint operations is as follows:

 
                                          2019     2018 
                                             $       $ 
 Current assets 
 Cash and cash equivalents              81,872      12,510 
 Trade and other receivables (1)     1,907,808   1,846,349 
 Inventories                         1,054,795   1,209,149 
 Prepayments                            36,286      36,699 
                                   -----------  ---------- 
 Total current assets                3,080,761   3,104,707 
                                   -----------  ---------- 
 
 Non-current assets 
 Exploration and evaluation            568,887     539,792 
 Development assets                  6,495,591   6,165,255 
 Property, plant and equipment         111,877     127,145 
                                   -----------  ---------- 
 Total non-current assets            7,176,355   6,832,192 
                                   -----------  ---------- 
 
 Total assets                       10,257,116   9,936,899 
                                   -----------  ---------- 
 
 Current liabilities 
 Trade and other payables            (137,094)   (193,534) 
                                   -----------  ---------- 
 Total liabilities                   (137,094)   (193,534) 
                                   -----------  ---------- 
 
 Net assets                         10,120,022   9,743,365 
                                   -----------  ---------- 
 

(1) Trade and other receivables of the joint operations is before any impairment and provisions.

(c) Joint Operations Commitments

In order to maintain the rights of tenure to exploration permits, the Group is required to perform exploration work to meet the minimum expenditure requirements specified by various state and national governments. These obligations are subject to renegotiation when application for an exploration permit is made and at other times. These obligations are not provided for in the financial report.

The Group's has no exploration expenditure commitments attributable to joint operations during the year (2018: $nil).

There are no minimum exploration work commitments in the Cambay and Bhandut Production Sharing Contracts.

Accounting Policy

Joint arrangements are arrangements of which two or more parties have joint control. Joint control is the contractual agreed sharing of control of the arrangements which exists only when decisions about the relevant activities required unanimous consent of the parties sharing control. Joint arrangements are classified as either a joint operation or joint venture, based on the rights and obligations arising from the contractual obligations between the parties to the arrangement.

To the extent the joint arrangement provides the Group with rights to the individual assets and obligations arising from the joint arrangement, the arrangement is classified as a joint operation and as such, the Group recognises its:

   --    Assets, including its share of any assets held jointly; 
   --    Liabilities, including its share of any liabilities incurred jointly; 
   --    Revenue from the sale of its share of the output arising from the joint operation; 
   --    Share of revenue from the sale of the output by the joint operation; and 
   --    Expenses, including its share of any expenses incurred jointly. 

The Group's interest in unincorporated entities are classified as joint operations.

Joint Ventures provides the Group a right to the net assets of the venture and are accounted for using the equity method. The Group currently has no joint venture arrangements.

NOTE 20 - RELATED PARTIES

Identity of Related Parties

The Group has a related party relationship with its subsidiaries (refer note 18), joint operations (refer note 19) and with its key management personnel.

Key Management Personnel

The following were key management personnel of the Group at any time during the financial year and unless otherwise indicated were key management personnel for the entire period:

 
 
   Non-Executive Directors   Position 
--------------------------  ---------------------------------------------- 
 Brad Lingo                  Non-Executive Chairman 
 Paul Haywood                Non-Executive Director 
 
 Executive Director          Position 
--------------------------  ---------------------------------------------- 
 Joe Salomon                 Managing Director 
 
 Executives                  Position 
--------------------------  ---------------------------------------------- 
 Mark Bolton                 Chief Financial Officer and Company Secretary 
 Ashish Khare                Head - India Assets 
 

Key Management Personnel Compensation

Key management personnel compensation comprised the following:

 
                                                    2019    2018 
                                                       $      $ 
                                                --------  -------- 
 
 Short-term employee benefits                    615,475   677,224 
 Other long-term benefits                         40,542    36,805 
 Non-monetary benefits                            21,252    15,192 
 Post-employment benefits                         59,668    63,920 
 Equity compensation benefits - shares issued 
  in lieu of salary                               55,454    40,228 
                                                --------  -------- 
                                                 792,391   833,369 
                                                --------  -------- 
 

Individual Directors' and Executives' Compensation Disclosures

Information regarding individual Directors' and Executives' compensation is provided in the Remuneration Report section of the Directors' Report. Apart from the details disclosed in this note, or in the Remuneration Report, no Director has entered into a material contract with the Company since the end of the previous financial year and there were no material contracts involving Directors' interests existing at year end.

Key Management Personnel Transactions with the Company or its Controlled Entities

There were no transactions in the current year between the Group and entities controlled by key management personnel.

NOTE 21 - FINANCIAL INSTRUMENTS

The effect of initially applying AASB 9 on the group's financial instruments is described in Note 2(h).

   (a)   Financial Risk Management 

The Group has exposure to the following risks arising from financial instruments.

   i)    Credit Risk 
   ii)    Liquidity Risk 
   iii)   Market Risk 

This note presents qualitative and quantitative information in relation to the Group's exposure to each of the above risks and the management of capital.

The Board of Directors has overall responsibility for the establishment and oversight of the risk management framework and the development and monitoring of risk management policies. Risk management policies are established to identify and analyse the risks faced by the Group, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Group's activities.

   (b)   Credit Risk 

Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations; and arises principally from the Group's receivables from customers and joint ventures.

The Group's exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the Group's customer base, including the default risk of the industry and country in which customers operate, has less of an influence on credit risk.

The maximum exposure to credit risk is represented by the carrying amount of each financial asset. The maximum exposure to credit risk at the reporting date was:

 
                                             2019        2018 
                                                $           $ 
                                         --------  ---------- 
 
 Cash and cash equivalents                357,970     375,507 
 Trade and other receivables - current    497,974     738,784 
                                          855,944   1,114,291 
                                         --------  ---------- 
 

The Group's cash and cash equivalents are held with major banks and financial institutions.

The Group's gross share of outstanding cash calls and recharges owing from joint venture partners and joint operations is $6,129,333 (2018: $5,768,614).

The Group's most significant customers are Enertech Fuel Solutions Pvt Limited (Enertech) with gas sales representing 39% of the Group's total revenues (2018: 61%) and Indian Oil Corporation Limited, in its capacity as nominee of the Government of India, with oil sales representing 61% of the Group's total revenues (2018: 39%). Enertech accounts for $nil of trade receivables as at June 2019 (2018: $5,841), whilst the Indian Oil Corporation Limited accounts for $nil of trade receivables (2018: $66,439).

Impairment Losses

The aging of the trade and other receivables at the reporting date was:

 
                                                        2019          2018 
                                                           $             $ 
                                                ------------  ------------ 
 Consolidated Gross 
 Not past due                                        189,941       294,709 
 Past due 0-30 days                                  111,566        73,246 
 Past due 31-120 days                                202,591       278,346 
 Past due 121 days to one year                       524,518       449,771 
 More than one year                                5,532,232     5,140,415 
                                                ------------  ------------ 
                                                   6,560,848     6,236,487 
 Provision for doubtful debts                    (6,062,874)   (5,497,703) 
                                                ------------  ------------ 
 Trade and other receivables net of provision        497,974       738,784 
                                                ------------  ------------ 
 
 

NOTE 21 - FINANCIAL INSTRUMENTS (CONTINUED)

   (b)   Credit Risk (continued) 

Receivable balances are monitored on an ongoing basis. The Group may at times have a high credit risk exposure to its joint venture partners arising from outstanding cash calls.

The Group considers an allowance for expected credit losses (ECL's) for all debt instruments. The Group applies a simplified approach in calculating ECL's. The Group bases its ECL assessment on its historical credit loss experience, adjusted for factors specific to the debtors and the economic environment including, but not limited to, financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial reorganisation and delinquency in payments.

The Group has been in discussions with its joint venture partner for repayment of disputed and other amounts owing. The Group is continuing discussions in order to resolve the outstanding issues and recover payment of the outstanding amounts, however due to the age of the receivables amounts, is uncertain of the timing or of full recovery.

   (c)   Liquidity Risk 

Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group's approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due without incurring unacceptable losses or risking damage to the Group's reputation.

The Group manages liquidity by monitoring present cash flows and ensuring that adequate cash reserves, financing facilities and equity raisings are undertaken to ensure that the Group can meet its obligations.

The table below analyses the Group's financial liabilities by relevant maturity groupings based on the remaining period at the reporting date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows.

 
                                                                             Contractual Cash Flows 
                                                          ------------------------------------------------------------ 
                            Carrying Amount   Face Value     Total     2 months or less   2 - 12 months   Greater than 
                                                                                                             1 year 
                                   $                                           $                $               $ 
                                                   $           $ 
                           ----------------  -----------  ----------  -----------------  --------------  ------------- 
 2019 
 Trade and other payables           697,184      697,184     697,184            697,184               -              - 
 Borrowings                         563,955      580,000     580,000                  -         580,000              - 
 Total financial 
  liabilities                     1,261,139    1,277,184   1,277,184            697,184         580,000              - 
                           ----------------  -----------  ----------  -----------------  --------------  ------------- 
 
 2018 
 Trade and other payables           779,249      779,249     779,249            779,249               -              - 
 Total financial 
  liabilities                       779,249      779,249     779,249            779,249               -              - 
                           ----------------  -----------  ----------  -----------------  --------------  ------------- 
 

Subsequent Events

On 23 July 2019, the Group entered into an amendment agreement to vary the terms of its loan funding facility of $330,000 entered into on 26 July 2018. Pursuant to the amendment, the loan repayment date has been extended from 26 July 2019 to 1 October 2019.

On 30 September 2019, the Company entered into an amendment agreement to vary the terms of its loan funding facility of $300,000 entered into on 26 July 2018; and the subsequent amendment noted in a) above. Pursuant to the amendment, the loan repayment date has been extended to 15 October 2019.

Furthermore, the Company also entered into an amendment agreement to vary the terms of its loan funding facility of $250,000 entered into on 11 September 2018. Pursuant to the amendment, the loan repayment date has been extended from 1 October 2019 to 1 April 2020. Pursuant to the extension, the Company will issue 60,664,887 options at $0.004121 on or before 1 April 2020.

NOTE 21 - FINANCIAL INSTRUMENTS (CONTINUED)

   (d)   Market Risk 

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the Group's income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

Currency risk

An entity is exposed to currency risk on sales and purchases that are denominated in a currency other than the functional currency of the entity. The currencies giving rise to this risk are the United States dollar (USD), Indian rupee (INR) and British pound (GBP).

The amounts in the table below represent the Australian dollar equivalent of balances in the Oilex Group Entities that are held in a currency other than the functional currency in which they are measured in that Group Entity. The exposure to currency risk at balance date was as follows:

 
                                                       2019                2018 
--------------------------- 
                                  USD         INR       GBP       USD         INR        GBP 
 In equivalents                                           $                                $ 
  of Australian dollar              $           $                   $           $ 
---------------------------  --------  ----------  --------  --------  ----------  --------- 
 
 Cash and cash equivalents     20,095     139,811    24,467   136,584      30,392     15,928 
 Trade and other 
  receivables (1)             229,196   3,219,109         -   110,799   3,053,753          - 
 Trade and other 
  payables                    (3,978)   (312,161)   (4,665)   (3,958)   (188,863)   (13,176) 
                             --------  ----------  --------  --------  ----------  --------- 
 Net balance sheet 
  exposure                    245,313   3,046,759    19,802   243,425   2,895,282      2,752 
                             --------  ----------  --------  --------  ----------  --------- 
 
 

(1) Trade and other receivables of the joint operation is before any impairment and provisions.

The following significant exchange rates applied during the year:

 
           Average Rate        Reporting Date Spot Rate 
 AUD      2019       2018         2019           2018 
-----  ---------  ---------  --------------  ----------- 
 USD     0.7156     0.7753       0.7013         0.7391 
 INR     50.5060    50.4574      48.4100       50.7392 
 GBP     0.5527     0.5762       0.5535         0.5634 
-----  ---------  ---------  --------------  ----------- 
 

Foreign Currency Sensitivity

A 10% strengthening/weakening of the Australian dollar against the following currencies at 30 June would have (increased)/ decreased the loss by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant. The analysis is performed on the same basis for 2018.

 
                                     2019        2018 
                                        $           $ 
                               ----------  ---------- 
 10% Strengthening 
 United States dollars (USD)       24,351      27,047 
 Indian rupees (INR)              304,676     321,698 
 British pounds (GBP)               1,980         306 
 
 10% Weakening 
 United States dollars (USD)     (24,351)    (22,129) 
 Indian rupees (INR)            (304,676)   (263,207) 
 British pounds (GBP)             (1,980)       (250) 
 
 

NOTE 21 - FINANCIAL INSTRUMENTS (CONTINUED)

   (d)   Market Risk (continued) 
   ii)       Interest rate risk 

At the reporting date the interest rate profile of the Group's interest-bearing financial instruments was:

 
                                                   Carrying Amount 
                                                      2019      2018 
                                                         $         $ 
                                                ----------  -------- 
 Fixed Rate Instruments 
 Financial assets (short-term deposits 
  included in trade receivables)                   100,000   149,004 
 Financial liabilities (borrowings)              (563,955)         - 
 
 Variable Rate Instruments 
 Financial assets (cash and cash equivalents)      357,970   375,507 
                                                ----------  -------- 
 

Cash Flow Sensitivity Analysis for Variable Rate Instruments

An increase of 100 basis points in interest rates at the reporting date would have decreased the loss by the amounts shown below. A decrease of 100 basis points in interest rates at the reporting date would have had the opposite impact by the same amount. This analysis assumes that all other variables, in particular foreign currency rates, remain constant. The analysis is performed on the same basis for 2018.

 
                              2019    2018 
                                 $       $ 
                            ------  ------ 
 
 Impact on profit or loss    3,580   3,755 
                            ------  ------ 
 
   iii)      Other market price risks 

At 30 June 2019, the Group had no financial instruments with exposure to other price risks (2018: $nil).

Equity Price Sensitivity

At 30 June 2019, the Group had no exposure to equity price sensitivity (2018: $nil).

   (e)   Capital Risk Management 

The Board's policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. The capital structure of the Group consists of equity attributable to equity holders of the Company, comprising issued capital, reserves and accumulated losses as disclosed in the consolidated statement of changes in equity.

   (f)    Fair Values of Financial Assets and Liabilities 

The net fair values of financial assets and liabilities of the Group approximate their carrying values. The Group has no off-balance sheet financial instruments and no amounts are offset.

This section provides information on items which are required to be disclosed to comply with Australian Accounting Standards, other regulatory pronouncements and the Corporations Act 2001.

NOTE 22 - SHARE-BASED PAYMENTS

Share-based Payments Expense Shares

The following equity settled share-based payment transactions have been recognised in the Consolidated Statement of Profit or Loss and Other Comprehensive Income:

 
                                                       2019      2018 
                                                         $        $ 
                                                     --------  ------- 
 Shares and rights - equity settled 
 Non-Executive Directors - remuneration shares (1)     55,422   27,653 
 Technical and administrative contractors              55,513   62,558 
 Total share-based payments expense                   110,935   90,211 
                                                     --------  ------- 
 

(1) At the Annual General Meeting held on 29 November 2017, the shareholders of the Company approved the issue of shares in lieu of cash for part of the remuneration for the Non-Executive Directors. The Directors have also agreed to receive part of their Directors fees in the form of the Company's shares in lieu of cash payments for the period from 1 November 2017 to 31 October 2018, in order to conserve the cash reserves of the Company. Similar shareholder approval was also received at the Annual General Meeting held on 29 November 2018 for the period from 1 November 2018 to 31 October 2019.

In accordance with the ASX waiver granted 17 October 2018, the Company advised that the number of remuneration shares that were issued to directors for the year ended 30 June 2019 totalled 11,437,407 (2018 5,530,644) and the percentage of the Company's issued capital represented by these remuneration shares was 0.44% (2018 0.28%).

As at 30 June 2019, the accrued non-executive director fees, being remuneration shares not yet issued totalled $12,607 (2018: $12,575).

Unlisted Options

At 30 June 2019, the terms and conditions of unlisted options granted by the Company to directors, employees, financiers and advisors are as follows, whereby all options are settled by physical delivery of shares:

 
                                                                 Contractual Life 
 Grant Date         Number of Instruments   Vesting Conditions      of Options 
-----------------  ----------------------  -------------------  ----------------- 
 
 Key Management Personnel 
 Nil 
 
 Other Employees 
 Nil 
 
 Financiers and Advisors 
 22 May 2017                    2,222,222     Upon granting          3 years 
 17 September 
  2018                         91,666,666     Upon granting          45 weeks 
 29 November 
  2018                         60,664,887     Upon granting          44 weeks 
 19 December 
  2018                          6,666,667     Upon granting          2 years 
 
 Total Options                161,220,442 
                   ---------------------- 
 

Subsequent to reporting date, no options have been exercised; however the 91,666,666 options have lapsed - for further information refer to Note 27 a).

Accounting Policy

Options allow directors, employees and advisors to acquire shares of the Company. The fair value of options granted to employees is recognised as an employee expense with a corresponding increase in equity. The fair value is measured at grant date and spread over the period during which the employees become unconditionally entitled to the options. The fair value of the options granted is measured using the Black-Scholes Model, taking into account the terms and conditions upon which the options were granted. The amount recognised as an expense is adjusted to reflect the actual number of share options that vest except where forfeiture is only due to share prices not achieving the threshold for vesting.

Options may also be provided as part of consideration for services by brokers and underwriters. Any unlisted options issued to the Company's AIM broker are treated as a capital raising cost.

When the Group grants options over its shares to employees of subsidiaries, the fair value at grant date is recognised as an increase in the investments in subsidiaries, with a corresponding increase in equity over the vesting period of the grant.

NOTE 22 - SHARE-BASED PAYMENTS (CONTINUED)

The number and weighted average exercise prices (WAEP) of unlisted share options are as follows:

 
                                                               WAEP       Number        WAEP       Number 
                                                               2019        2019         2018        2018 
                                                                                      -------  -------------- 
 Outstanding at 1 July                                        $0.005      77,441,666   $0.009     286,974,273 
 Lapsed during the year                                       $0.35        (275,000)   $0.011   (197,810,385) 
 Exercised during the year                                    $0.004   (100,190,999)   $0.004    (11,722,222) 
 Granted during the year 
 
        *    Granted to Brokers and Financial Advisers (1)    $0.005      16,140,351     -                  - 
 
        *    Series A Loan Options(3)                         $0.004      91,666,666     -                  - 
 
        *    Series B Loan Options(2) (3)                     $0.004      76,437,758     -                  - 
 Outstanding at 30 June                                       $0.004     161,220,442   $0.005      77,441,666 
                                                             -------  --------------  -------  -------------- 
 
 Exercisable at 30 June                                       $0.004     161,220,442   $0.005      77,441,666 
                                                             -------  --------------  -------  -------------- 
 

The unlisted options outstanding at 30 June 2019 have an exercise price in the range of $0.004 to $0.006 (2018: $0.004 to $0.35) and a weighted average remaining contractual life of 0.2 years (2018: 1.90 years).

The fair value of unlisted options is calculated at the date of grant using the Black-Scholes Model. Expected volatility is estimated by considering historical volatility of the Company's share price over the period commensurate with the expected term.

(1) The following factors and assumptions were used to determine the fair value of 16,140,351 options issued to brokers and financial advisors during the year.

 
                                                                      Price of                 Risk Free 
 2019            Vesting                   Fair Value    Exercise    Shares on     Expected     Interest     Dividend 
  Grant Date      Date       Expiry Date   Per Option     Price      Grant Date   Volatility      Rate        Yield 
 
     19 Sept       19 Sept       17 Sept 
        2018          2018          2020     $0.003       $0.004       $0.004      104.78%       1.50% 
 19 Dec 2018   19 Dec 2018   24 Dec 2020     $0.004       $0.006       $0.006      142.57%       1.50%          - 
 
 

(2) 15,772,871 Series B loan options were exercised during the period

(3) The fair value equity component of the 91,666,666 Series A Loan options and 76,437,758 Series B Loan options has been determined using an implied effective interest rate of 18% pa (effective interest rate on a similar borrowing without an equity component); and is $50,490 and $48,195, respectively. At loan drawdown, this amount has been recognised in the Loan Option Reserve as the loans have been treated as convertible notes.

For further information refer to Note 14: Borrowings.

NOTE 23 - PARENT ENTITY DISCLOSURE

As at, and throughout, the financial year ended 30 June 2019 the parent entity of the Group was Oilex Ltd.

 
                                                        2019            2018 
                                                           $               $ 
 Result of the parent entity 
 Loss for the year                               (3,382,300)     (4,758,767) 
 Other comprehensive income/(loss)                   143,085       (110,414) 
                                              --------------  -------------- 
 Total comprehensive loss for the 
  year                                           (3,239,215)     (4,869,181) 
                                              --------------  -------------- 
 
 Financial position of the parent 
  entity at year end 
 Current assets                                    1,164,081       1,545,758 
 Total assets                                      5,995,034       6,162,360 
 
 Current liabilities                               1,160,603         596,118 
 Total liabilities                                 3,361,943       2,684,874 
 
 Net assets                                        2,633,091       3,477,486 
                                              --------------  -------------- 
 
 Total equity of the parent entity 
  comprising of: 
 Issued capital                                  176,502,200     174,046,036 
 Option reserve                                       36,485         331,889 
 Loans Options Reserve                                88,740               - 
 Foreign currency translation reserve              5,052,168       4,909,084 
 Accumulated losses                            (179,046,502)   (175,809,523) 
                                              --------------  -------------- 
 Total equity                                      2,633,091       3,477,486 
                                              --------------  -------------- 
 
 

Parent Entity Contingencies

The Directors are of the opinion that provisions are not required in respect of the following matters, as it is not probable that a future sacrifice of economic benefits will be required or the amount is not capable of reliable measurement.

Oilex Ltd has issued a guarantee in relation to corporate credit cards. The bank guarantee amounts to $100,000. An equal amount is held in cash and cash equivalents as security by the bank. (2018: $149,004 in relation to the lease of corporate offices and the corporate credit cards).

Parent entity capital commitments for acquisition of property plant and equipment

Oilex Ltd had no capital commitments as at 30 June 2019 (2018: Nil).

Parent entity guarantee (in respect of debts of its subsidiaries)

On 7 November 2006, Oilex Ltd issued a Deed of Parent Company Performance Guarantee in relation to the Production Sharing Contract entered into with the Timor Sea Designated Authority dated 15 November 2006. Refer note 26.

Oilex Ltd has issued no other guarantees in respect of debts of its subsidiaries.

NOTE 24 - AUDITORS' REMUNERATION

 
                                                                      2019      2018 
                                                                         $         $ 
 Audit and review services 
 Auditors of the Company - KPMG 
 Audit and review of financial reports (KPMG Australia)             81,400    82,000 
 Audit of Joint Operations operated by Oilex Ltd 
  Operator proportion only (KPMG Australia)                            414       419 
 Audit and review of financial reports (KPMG related practices)     20,656    16,252 
                                                                  --------  -------- 
                                                                   102,470    98,671 
 Other Auditors 
 Audit and review of financial reports (India Statutory)             5,972     5,543 
                                                                  --------  -------- 
                                                                   108,442   104,214 
 
 Other services 
 Auditors of the Company - KPMG 
 Taxation compliance services (KPMG Australia)                      13,213    11,723 
 Taxation compliance services (KPMG related practices)               6,987     6,449 
                                                                  --------  -------- 
                                                                    20,200    18,172 
 Other Auditors 
 Taxation compliance services (India Statutory)                      5,255     7,094 
                                                                  --------  -------- 
                                                                    25,455    25,266 
                                                                  --------  -------- 
 

NOTE 25 - OPERATING LEASES

Leases as Lessee

 
                                               2019     2018 
                                                  $        $ 
                                            -------  ------- 
 
 Within one year                             27,211   86,738 
 One year or later and no later than five 
  years                                           -    4,711 
                                            -------  ------- 
                                             27,211   91,449 
                                            -------  ------- 
 

Non-cancellable operating lease rentals are payable as follows:

The Group leases its head office premises at Level 2, 11 Lucknow Place West Perth, Australia. The lease commenced on 1 June 2019 for a six-month period; with expiry on 30 November 2019. Thereafter, the Group has the option of a month by month lease extension subject to lessor approval.

 
                                                                  2019      2018 
                                                                     $         $ 
                                                              --------  -------- 
 
 Operating lease rentals expensed during the financial year    102,788   130,981 
                                                              --------  -------- 
 

The Group leases office premises in Gandhinagar (India) under an operating lease. The current lease has a three year term, commencing 16 October 2016.

Accounting Policy

Operating leases payments are recognised in profit or loss on a straight-line basis over the term of the lease. Lease incentives received are recognised as an integral part of the total lease expense and are allocated over the lease term.

NOTE 26 - PROVISIONS and CONTINGENT LIABILITIES

Contingent Liabilities at Reporting Date

The Directors are of the opinion that provisions (except as noted below) are not required in respect of these matters, as it is not probable that a future sacrifice of economic benefits will be required or the amount is not capable of reliable measurement.

Guarantees

Oilex Ltd has issued guarantees in relation to the corporate credit cards. The bank guarantees amount to $100,000.

Termination Penalty

In November 2006 Oilex (JPDA 06-103) Ltd (Operator) and the Joint Venture parties entered into a Production Sharing Contract (PSC) with the Designated Authority for JPDA 06-103 and the PSC was signed in January 2007 (effective date 15 January 2007).

On 12 July 2013, the Operator, on behalf of the Joint Venture participants, submitted to the Autoridade Nacional do Petroleo e Minerais (ANPM), the body responsible for managing and regulating petroleum and mining activities in the Timor-Leste area, a request to terminate the PSC by mutual agreement in accordance with its terms and without penalty or claim. The request was issued as a result of ongoing uncertainty as to the security of PSC tenure which arose as a result of a maritime dispute between the governments of Timor Leste and Australia. This request required the consent of the Timor Sea Designated Authority.

On 15 May 2015, the ANPM issued a Notice of Intention to Terminate the PSC and subsequently, on 15 July 2015, issued a Notice of Termination and Demand for Payment. The demand for payment (100%) of the penalty claim of US$17.0 million (plus interest) reflected the ANPM's estimate of the cost of exploration activities not undertaken in 2013, as well as certain local content obligations set out in the PSC. More recently, ANPM has sought to amend its claim to US$22.26 million.

On 17 October 2018, the Company announced that it had received correspondence from ANPM advising that it had submitted a Request for Arbitration (RFA) to the International Chamber of Commerce (ICC) in Singapore. The RFA relates to matters associated with the termination of the PSC by the ANPM.

In addition to other matters, the Joint Venture considers it has made significant over expenditure in executing the PSC work programme and further, the ANPM failed to properly assess and award credit for such additional expenditure when terminating the PSC. Notwithstanding the Joint Venture considers no penalty payment is applicable, the parties made a number of unsuccessful attempts to settle the matter in dispute prior to the arbitration proceedings issuing. The Group has maintained a USD$600,000 provision for this matter.

On 16 August 2019, the Company announced that it had submitted the Respondents First Memorial to the International Chamber of Commerce (ICC) in Singapore. In this regard, following a substantive legal and independent expert review, the joint venture has lodged a counterclaim against the ANPM for the amount US$23.3 million (plus interest) as damages arising from the wrongful termination of the PSC. Oilex holds a 10% participating interest in the JPDA joint venture.

The arbitration hearing is scheduled to commence on 10 February 2020.

The obligations and liabilities of the Joint Venture participants under the PSC are joint and several and all participants have provided parent company guarantees. The equity interest of the Joint Venture participants are:

 
 Oilex (JPDA 06-103) Ltd (Operator)     10% 
 Pan Pacific Petroleum (JPDA 
  06-103) Pty Ltd                       15% 
 Japan Energy E&P JPDA Pty Ltd          15% 
 GSPC (JPDA) Limited (#)                20% 
 Videocon JPDA 06-103 Limited 
  *(#)                                  20% 
 Bharat PetroResources JPDA Ltd         20% 
 Total                                 100% 
                                      ----- 
 

* The Company understands that the parent company Videocon Industries Ltd is subject to corporate insolvency proceedings and continues to trade under the supervision of an insolvency professional.

(#) A notice of default has been issued against both Videocon JPDA 06-103 Limited and GSPC (JPDA) Limited for their failure to pay the joint venture cash calls.

NOTE 27 - SUBSEQUENT EVENTS

a) On 23 July 2019, the Group entered into an amendment agreement to vary the terms of its loan funding facility of $330,000 entered into on 26 July 2018. Pursuant to the amendment, the loan repayment date has been extended from 26 July 2019 to 1 October 2019. In addition, the Company will issue 124,060,150 new options to the lenders at an exercise price of $0.00266, and an expiry date of 31 December 2019, which were subject to shareholder approval at a General Meeting to be held on 19 September 2019, which was duly forthcoming. All other loan terms and conditions remain the same; and are extended to 1 October 2019.

The total 91,666,666 share options @ $0.0036 exercisable on or before 26 July 2019, attached to the original loans, were not exercised and have lapsed.

The above-mentioned 124,060,150 options were subsequently issued on 27 September 2019.

b) On 30 September 2019, the Company entered into an amendment agreement to vary the terms of its loan funding facility of $300,000 entered into on 26 July 2018; and the subsequent amendment noted in a) above. Pursuant to the amendment, the loan repayment date has been extended to 15 October 2019.

Furthermore, the Company also entered into an amendment agreement to vary the terms of its loan funding facility of $250,000 entered into on 11 September 2018. Pursuant to the amendment, the loan repayment date has been extended from 1 October 2019 to 1 April 2020. Pursuant to the extension, the Company will issue 60,664,887 options at $0.004121 on or before 1 April 2020.

c) On 31 July 2019, the Company announced that it has arranged an equity capital raising to secure funding of GBP0.34 million (A$0.6 million) through the placing of 257,329,999 new shares at 0.13 pence (A$0.2330) per share. All shares were subsequently issued on 13 August 2019.

d) On 7 August 2019, the Company announced that it has entered into an agreement with Holloman Energy Corporation (HEC) to acquire its 48.5003% interest in the Petroleum Exploration Licence (PEL) 112 and 444 license (the Licenses) in the world class Cooper-Eromanga Basins in South Australia.

Pursuant to the share purchase agreement entered into with HEC, the Company will acquire 100% of its wholly owned subsidiary, Holloman Petroleum Pty Ltd ("HPPL") for gross consideration of 40,416,917 ordinary shares in the Company (Shares) at a deemed price of 0.3 cents and A$24,250 for a total consideration of A$145,500.

e) On 14 August 2019, the Company announced that it has entered into an agreement with Perseville Investing Inc and Terra Nova Energy (Australia) Pty Ltd (TNA) (collectively, TNP) to acquire up to a further 51.4997% interest in the PEL's 112 and 444 licenses.

Pursuant to the share purchase agreement entered into with TNP, the Company will acquire a further participating interest of 30.833% in the Licenses for consideration of 9,166,333 ordinary shares in the Company at a deemed price of 0.3 cents and A$65,000 in cash for a total consideration of A$92,499.

In addition, the Company has been granted an Option by TNP for up to 15 months to acquire a further 20.6667% participating interest in the Licenses (Option). The Option can be exercised for consideration of 20,666,700 ordinary shares in the Company at a deemed price of 0.3 cents for a total consideration of A$62,000 (Option Exercise Shares).

f) In October 2018, the Company announced that the Autoridade Nacional Do Petroleo E Minerais (ANPM) had commenced arbitration proceedings against Oilex and its joint venture partners (Respondents), in regard to the JPDA production sharing contract (PSC).

On 16 August 2019, The Company announced it had submitted the Respondents First Memorial to the International Chamber of Commerce (ICC) in Singapore. In this regard, following a substantive legal and independent expert review, the joint venture has lodged a counterclaim against the ANPM for the amount US$23.3 million (plus interest) as damages arising from the wrongful termination of the PSC.

The arbitration hearing is scheduled to commence on 10 February 2020.

Refer Note 26 for the full background information on this matter.

NOTE 27 - SUBSEQUENT EVENTS (CONTINUED)

g) On 9 September 2019, the Company announced it has reached an agreement with Gujarat State Petroleum Corporation (GSPC) which, upon completion, will resolve the ongoing Cambay PSC dispute (the Agreement). Significantly, the Indian Directorate General of Hydrocarbons is a signatory to the Agreement.

As previously announced in March 2019, the State Government of Gujarat and the GSPC Board of Directors' have approved a sales process for many of GSPC's Indian E&P assets. Oilex and GSPC have now agreed to include GSPC's 55% Participating Interest (PI) in the Cambay PSC in this sale process. GSPC has also undertaken to use its best endeavours to complete the sale process within 90 days from commencement.

Pursuant to the Agreement, the Event of Default (EoD) and Event of Withdrawal (EoW) declared by Oilex pursuant to the Cambay Field Joint Operating Agreement (JOA) has been withdrawn and the arbitration tribunal of the Singapore International Arbitration Centre (SIAC) issued an order on 24 September 2019 terminating the arbitration proceedings instituted by GSPC. GSPC has also undertaken to remove the stay order granted in the High Court of Gujarat.

h) On 16 September 2019, the Company announced it has entered into an exclusivity agreement with Koru Energy (KLW) Ltd ("Koru"), a subsidiary of Koru Energy Limited, for a potential acquisition of up to a 50% relevant interest in the Knox and Lowry, and Whitbeck gas discoveries (the "KLW Gas Discoveries") in the East Irish Sea (EIS), offshore the United Kingdom ("Exclusivity Agreement").

The KLW Gas Discoveries are a series of shallow water gas accumulations that were discovered between 1992 and 2009 by the then operators and successfully drill-stem tested confirming discovered volumes that the Company and Koru would seek to bring into production, should the acquisition complete. The KLW Gas Discoveries are ideally located very close to a subsea tie-back pipeline which delivers gas to the nearby and recently refurbished North Morecambe Gas Production Platform and Terminal.

The EIS is a prolific basin which has produced more than 6TCF of gas to date with considerable existing gas production, gathering, processing and transportation infrastructure. The KLW Gas Discoveries are located in known conventional shallow reservoirs in shallow water near existing EIS gathering and production infrastructure reducing the complexity, risk and cost of development.

i) On 27 September, the Company announced that it has entered into a binding term sheet with Senex Energy Limited and certain of its related entities (together referred to as "Senex") to acquire all of Senex's interest as operator in 27 Petroleum Retention Licenses in the Northern Oil and West Gas Fairway in the world class Cooper-Eromanga Basins in South Australia (the "Northern Fairway PRLs"), subject to satisfaction of conditions (including government approvals).

The Company will acquire 100% of Senex's interest in the Northern Fairway PRLs for nominal consideration and assumption of existing abandonment liabilities, PRL fees and PRL expenditure targets.

The existing abandonment liabilities relate to previous exploration drilling activities (including the cased and suspended Paning-2 tight gas discovery well) and associated with the Cordillo 3D seismic acquisition operating camp. The existing rehabilitation liabilities are estimated at approximately $1.1m. However, the rehabilitation does not require immediate rectification.

The total annual amount of the Northern Fairway PRL renewal fees is approximately $1 million. The Company also assumes the expenditure targets under the PRLs. Failure to achieve the expenditure target will result in pro-rata relinquishment of the permits. The Company notes that the Northern Fairway PRLs are currently suspended by the South Australian Government, suspending the annual license fees and work obligations. Oilex intends to continue this suspension for a period.

The agreement with Senex is subject to various conditions including the approval of Oilex as operator of the Northern Fairway PRLs by the South Australian Government. Hartleys Limited, a leading Australian corporate advisory and stockbroking financial services firm, has been appointed to lead the arrangement of funding for the acquisition. Subject to the receipt of regulatory approvals, Oilex anticipates completion of the acquisition by the end of Calendar Year 2019.

NOTE 27 - SUBSEQUENT EVENTS (CONTINUED)

j) On 30 September 2019, the Company announced that it has arranged an equity capital raising to secure funding of GBP0.6 million (A$1.1 million) through the placing of 315,789,474 new shares at 0.19 pence (A$0.00348) per share. The shares will be issued to Novum Securities and existing shareholders

Other than the above disclosure, there has not arisen in the interval between the end of the financial year and the date of this report an item, transaction or event of a material and unusual nature likely, in the opinion of the Directors of the Company, to affect significantly the operations of the Group, the results of those operations, or the state of affairs of the Group, in future financial years.

NOTE 28 - oTHER ACCOUNTING POLICES

New Standards and Interpretations Not Yet Adopted

The following standards, amendments to standards and interpretations have been identified as those which may impact the entity in the period of initial application. They are not yet effective and have not been applied in preparing this financial report.

-- AASB 16 Leases provides a new lessee accounting model requiring the recognition of assets and liabilities for all leases with a term greater than twelve months, unless the underlying asset is of low value. It requires the lessee to recognise a right-of-use asset, representing the rights to use the underlying lease asset and a lease liability representing the obligation of lease payments. AASB 16 is effective for annual periods beginning on or after 1 July 2019. The Group has undertaken a review of all its existing leases. The impact on the Group's financial assets and financial liabilities of the adoption of AASB 16 is being assessed and is dependent upon the adoption approach and application of transitional provisions, as well as assessing new leases anticipated to be entered into. The impact of the adoption of this standard is unlikely to have a material future impact on the Group's balance sheet once the liability for future leases are recognised. Further information is disclosed in Note 25.

-- IFRIC 23 Uncertainty over Tax Treatments clarifies how the recognition and measurement requirements of IAS 12 Income Taxes are applied when there is uncertainty over income tax treatments. IFRIC 23 is effective for annual periods beginning on or after 1 July 2019. The impact of the adoption of this interpretation is not expected to have a significant on the Group's Consolidated financial statements.

 
 
 
   (1)    In the opinion of the Directors of Oilex Ltd (the Company): 

(a) the consolidated financial statements and notes thereto, and the Remuneration Report in the Directors' Report, set out on pages 13 to 29, are in accordance with the Corporations Act 2001, including:

i) giving a true and fair view of the Group's financial position as at 30 June 2019 and of its performance for the financial year ended on that date; and

   ii)    complying with Australian Accounting Standards and the Corporations Regulations 2001; and 

(a) there are reasonable grounds to believe that the Company and Group will be able to pay its debts as and when they become due and payable.

(2) The Directors have been given the declarations required by Section 295A of the Corporations Act 2001 from the Managing Director and Chief Financial Officer for the financial year ended 30 June 2019.

(3) The Directors draw attention to note 2(a) to the consolidated financial statements, which includes a statement of compliance with International Financial Reporting Standards.

Signed in accordance with a resolution of the Directors.

 
 
 
                     Mr Jonathan Salomon 
   Mr Brad Lingo     Managing Director 
   Chairman 
 

West Perth

Western Australia

30 September 2019

Shareholder information as at 1 September 2019

Additional information required by the ASX Limited Listing Rules and not disclosed elsewhere in this report is set out below.

The address of the principal registered office is Level 2, 11 Lucknow Place, West Perth, Western Australia 6005, Australia, Telephone +61 8 9485 3200.

The name of the Company Secretary is Mr Mark Bolton.

Detailed schedules of exploration and production permits held are included in the Business Review.

Directors' interest in share capital options are disclosed in the Directors' Report.

There is currently no on-market buy-back in place.

Shareholding

   (a)           Distribution of share and option holdings: 
 
 Size of holding      Number of        Number of 
                     shareholders    unlisted option 
                                         holders 
-----------------  --------------  ----------------- 
 1 - 1,000                    296                  - 
 1,001 - 5,000                474                  - 
 5,001 - 10,000               314                  - 
 10,001 - 100,000             752                  - 
 100,001 and over             495                  4 
                   --------------  ----------------- 
 Total                      2,331                  4 
                   --------------  ----------------- 
 
 
   (b)           Of the above total 1,900 ordinary shareholders hold less than a marketable parcel. 
   (c)            Voting Rights: 

The voting rights attached to the ordinary shares are governed by the Constitution.

On a show of hands every person present who is a Member or representative of a Member shall have one vote and on a poll, every Member present in person or by proxy or by attorney or duly authorised representative shall have one vote for each share held. None of the options give an entitlement to voting rights.

Register of Securities

The register of securities listed on the Australian Securities Exchange is held by Link Market Services Limited, Level 12, 250 St Georges Terrace, Perth, Western Australia 6000, Australia, Telephone +61 8 9211 6670.

The register of securities listed on the Alternative Investment Market of the London Stock Exchange is held by Computershare Investor Services PLC, PO Box 82, The Pavilions, Bridgwater Road, Bristol BS13 8AE, United Kingdom, Telephone +44 870 702 003.

Stock Exchange Listing

Quotation has been granted for all the ordinary shares of the Company on all Member Exchanges of the Australian Securities Exchange and the Alternative Investment Market of the London Stock Exchange (AIM) and trades under the symbol OEX.

Unquoted Securities - Options

Total unlisted options on issue are 69,553,776.

The Managing Director, Mr Jonathan Salomon holds 14,987,013 shares as at 1 September 2019 which represents 0.52% of shares.

Twenty Largest Shareholders

 
                                                                        % of issued 
 Shareholders                                         Shares Held           capital 
----------------------------------------  -----------------------      ------------ 
 HSBC Custody Nominees (Australia) 
  Limited                                             437,509,516             15.20 
 Rock (Nominees) Limited <CSHNET>                     154,989,568   #          5.39 
 Roy Nominees Limited <127735>                        150,581,264   #          5.23 
 Hargreaves Lansdown (Nominees) Limited 
  <15942>                                             145,235,304   #          5.05 
 Interactive Investor Services Nominees 
  Limited <SMKTNOMS>                                  128,346,155   #          4.46 
 Barclays Direct Investing Nominees 
  Limited <CLIENT1>                                   123,908,406   #          4.31 
 Interactive Investor Services Nominees 
  Limited <SMKTISAS>                                  111,901,410   #          3.89 
 HSDL Nominees Limited                                 96,114,523   #          3.34 
 Hargreaves Lansdown (Nominees) Limited 
  <HLNOM>                                              90,399,725   #          3.14 
 Hargreaves Lansdown (Nominees) Limited 
  <VRA>                                                87,471,954   #          3.04 
 Magna Energy Limited                                  73,505,090              2.55 
 Zeta Resources Limited                                71,323,567              2.48 
 Lawshare Nominees Limited <DEALING>                   52,121,495   #          1.81 
 Chase Nominees Limited                                50,000,000   #          1.74 
 HSBC Client Holdings Nominee (UK) 
  Limited <731504>                                     49,283,646   #          1.71 
 HSDL Nominees Limited <MAXI>                          43,294,727   #          1.50 
 Jim Nominees Limited <JARVIS>                         39,985,606   #          1.39 
 Vidacos Nominees Limited <LGUKCLT>                    39,275,896   #          1.36 
 HSDL Nominees Limited <LWMAXI>                        37,755,945   #          1.31 
 UBS Private Banking Nominees Ltd 
  <MAINPOOL>                                           32,266,549   #          1.12 
 
 
 Total                                              1,351,606,658             46.96 
 Total issued shares as at 1 September 
  2019                                              2,878,064,483            100.00 
----------------------------------------  -----------------------      ------------ 
 

Substantial shareholders as disclosed in the most recent substantial shareholder notices given to the company are as follows:

 
                                                      % of issued 
 Substantial Shareholders               Shares Held       capital 
------------------------------------  -------------  ------------ 
 Republic Investment Management Pte 
  Ltd                                   422,744,768         14.74 
 

Republic Investment Management Pte Ltd has subsequently transferred 1005 of its shares to the AIM register.

(#) Included within the total issued capital are 1,814,417,003 shares held on the AIM register. Included within the top 20 shareholders are certain AIM registered holders as marked.

 
 Associated    Natural gas found in contact with or dissolved in crude 
  Gas           oil in the reservoir. It can be further categorised 
                as Gas-Cap Gas or Solution Gas. 
------------  --------------------------------------------------------------- 
 Bbls          Barrels of oil or condensate. 
------------  --------------------------------------------------------------- 
 BCF           Billion cubic feet of gas at standard temperature and 
                pressure conditions. 
------------  --------------------------------------------------------------- 
 BCFE          Billion cubic feet equivalent of gas at standard temperature 
                and pressure conditions. 
------------  --------------------------------------------------------------- 
 BOE           Barrels of Oil Equivalent. Converting gas volumes to 
                the oil equivalent is customarily done on the basis 
                of the nominal heating content or calorific value of 
                the fuel. Common industry gas conversion factors usually 
                range between 1 barrel of oil equivalent (BOE) = 5,600 
                standard cubic feet (scf) of gas to 1 BOE = 6,000 scf. 
                (Many operators use 1 BOE = 5,620 scf derived from 
                the metric unit equivalent 1 m(3) crude oil = 1,000 
                m(3) natural gas). 
------------  --------------------------------------------------------------- 
 BOPD          Barrels of oil per day. 
------------  --------------------------------------------------------------- 
 GOR           Gas to oil ratio in an oil field, calculated using 
                measured natural gas and crude oil volumes at stated 
                conditions. The gas/oil ratio may be the solution gas/oil, 
                symbol Rs; produced gas/oil ratio, symbol Rp; or another 
                suitably defined ratio of gas production to oil production. 
                Volumes measured in scf/bbl. 
------------  --------------------------------------------------------------- 
 MMscfd        Million standard cubic feet of gas per day. 
------------  --------------------------------------------------------------- 
 MMbbls        Million barrels of oil or condensate. 
------------  --------------------------------------------------------------- 
 PSC           Production Sharing Contract. 
------------  --------------------------------------------------------------- 
 mD            Millidarcy - unit of permeability. 
------------  --------------------------------------------------------------- 
 MD            Measured Depth. 
------------  --------------------------------------------------------------- 
 Contingent    Those quantities of petroleum estimated, as of a given 
  Resources     date, to be potentially recoverable from known accumulations 
                by application of development projects, but which are 
                not currently considered to be commercially recoverable 
                due to one or more contingencies. 
                Contingent Resources may include, for example, projects 
                for which there are currently no viable markets, or 
                where commercial recovery is dependent on technology 
                under development, or where evaluation of the accumulation 
                is insufficient to clearly assess commerciality. Contingent 
                Resources are further categorised in accordance with 
                the level of certainty associated with the estimates 
                and may be sub-classified based on project maturity 
                and/or characterised by their economic status. 
------------  --------------------------------------------------------------- 
 Prospective   Those quantities of petroleum which are estimated, 
  Resources     as of a given date, to be potentially recoverable from 
                undiscovered accumulations. 
------------  --------------------------------------------------------------- 
 Reserves      Reserves are those quantities of petroleum anticipated 
                to be commercially recoverable by application of development 
                projects to known accumulations from a given date forward 
                under defined conditions. 
                Proved Reserves are those quantities of petroleum, 
                which by analysis of geoscience and engineering data, 
                can be estimated with reasonable certainty to be commercially 
                recoverable, from a given date forward, from known 
                reservoirs and under defined economic conditions, operating 
                methods and government regulations. 
                Probable Reserves are those additional Reserves which 
                analysis of geoscience and engineering data indicate 
                are less likely to be recovered than Proved Reserves 
                but more certain to be recovered than Possible Reserves. 
                Possible Reserves are those additional reserves which 
                analysis of geoscience and engineering data indicate 
                are less likely to be recoverable than Probable Reserves.3P 
                Probabilistic methods 
                P90 refers to the quantity for which it is estimated 
                there is at least a 90% probability the actual quantity 
                recovered will equal or exceed. 
                P50 refers to the quantity for which it is estimated 
                there is at least a 50% probability the actual quantity 
                recovered will equal or exceed. 
                P10 refers to the quantity for which it is estimated 
                there is at least a 10% probability the actual quantity 
                recovered will equal or exceed. 
------------  --------------------------------------------------------------- 
 SCF/BBL       Standard cubic feet (of gas) per barrel (of oil). 
------------  --------------------------------------------------------------- 
 TCF           Trillion cubic feet. 
------------  --------------------------------------------------------------- 
 Tight Gas     The reservoir cannot be produced at economic flow rates 
  Reservoir     or recover economic volumes of natural gas unless the 
                well is stimulated by a large hydraulic fracture treatment, 
                a horizontal wellbore, or by using multilateral wellbores. 
------------  --------------------------------------------------------------- 
 
 
 
 Directors                            Stock Exchange Listings 
  Brad Lingo Bachelor of Arts          Oilex Ltd's shares are listed 
  with Honours,                        under the code OEX on the 
  Juris Doctorate, MAICD               Australian Securities Exchange 
  Non-Executive Chairman               and on the Alternative Investment 
                                       Market of the London Stock 
  Joe Salomon B APP SC (Geology),      Exchange (AIM) 
  GAICD 
  Managing Director                    AIM Nominated Adviser 
                                       Strand Hanson Limited 
  P Haywood                            26 Mount Row 
  Non-Executive Director               London W1K 3SQ 
                                       United Kingdom 
 
 Company Secretary                    AIM Broker 
  Mark Bolton B Business               Novum Securities Limited 
  CFO and Company Secretary            10 Grosvenor Gardens 
                                       Belgravia 
                                       London SW1W 0DH 
                                       United Kingdom 
 
 Registered and Principal 
  Office                              Share Registries 
  Level Two                            Link Market Services Limited 
  11 Lucknow Place                     (for ASX) 
  West Perth Western Australia         Level 12 
  6005                                 250 St Georges Terrace 
  Australia                            Perth Western Australia 6000 
  Ph. +61 8 9485 3200                  Australia 
  Fax +61 8 9485 3290 
                                       Computershare Investor Services 
  Postal Address                       PLC (for AIM) 
  PO Box 254                           The Pavilions 
  West Perth Western Australia         Bridgwater Road 
  6872                                 Bristol BS13 8AE 
  Australia                            United Kingdom 
 
 India Operations - Gandhinagar       Auditors 
  Project Office                       KPMG 
  3rd Floor Radhe Arcade 'Block        235 St Georges Terrace 
  C'                                   Perth Western Australia 6000 
  Nr. Swagat Rainforest 1,             Australia 
  Kudasan 
  Gandhinagar Koba Road 
  Gandhinagar 382421 
  Gujarat, India 
 
 Website www.oilex.com.au 
 
  Email 
  oilex@oilex.com.au 
 
 
   Oilex Ltd 
   ACN 078 652 632 
   ABN 50 078 652 632 
 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

FR GRBDGBGGBGCB

(END) Dow Jones Newswires

October 01, 2019 03:27 ET (07:27 GMT)

1 Year Oilex Ld Chart

1 Year Oilex Ld Chart

1 Month Oilex Ld Chart

1 Month Oilex Ld Chart
Your Recent History
LSE
OEX
Oilex Ld
Register now to watch these stocks streaming on the ADVFN Monitor.

Monitor lets you view up to 110 of your favourite stocks at once and is completely free to use.

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V:gb D:20191207 04:57:55