Adjust spine accordingly
ANNUAL
REPORT
2015
SEA LION
DRILLING TO
COMMENCE
SHORTLY
CORPORATE
DIRECTORY
Directors
Campbell Horsfall
(Non-Executive Chairman)
Noel Newell
(Managing Director)
Melanie Leydin
(Non-Executive Director)
Leo De Maria
(Non-Executive Director)
Company secretary
Melanie Leydin
Registered offi ce
Level 5, 164 Flinders Lane
Melbourne, VIC 3000
Telephone: (03) 9650 9866
Principal place of business
Level 5, 164 Flinders Lane
Melbourne, VIC 3000
Share register
Computershare Investor
Services Pty Limited
452 Johnston Street
Abbotsford Victoria 3067
Telephone: (03) 9415 5000
Auditor
Grant Thornton Audit Pty Ltd
Chartered Accountants
The Rialto, Level 30, 525 Collins Street
Melbourne Victoria 3000
Solicitors
Baker & McKenzie
Level 19, 181 William Street
Melbourne
Victoria 3000
Stock exchange listing
3D Oil Limited shares are listed on
the Australian Securities Exchange
(ASX code: TDO)
Website
www.3doil.com.au
57
SEA LION
DRILLING TO
COMMENCE
SHORTLY
CORPORATE
DIRECTORY
Directors
Campbell Horsfall
(Non-Executive Chairman)
Noel Newell
(Managing Director)
Melanie Leydin
(Non-Executive Director)
Leo De Maria
CONTENTS
(Non-Executive Director)
Review of Operations
Company secretary
Directors’ report
Melanie Leydin
Auditor’s independence declaration
Registered offi ce
Auditor
Grant Thornton Audit Pty Ltd
Chartered Accountants
The Rialto, Level 30, 525 Collins Street
Melbourne Victoria 3000
Solicitors
Baker & McKenzie
Level 19, 181 William Street
Melbourne
Victoria 3000
6
Stock exchange listing
14
3D Oil Limited shares are listed on
the Australian Securities Exchange
(ASX code: TDO)
24
Level 5, 164 Flinders Lane
Statement of profi t or loss and other comprehensive income
Melbourne, VIC 3000
Telephone: (03) 9650 9866
Statement of fi nancial position
Website
26
www.3doil.com.au
Principal place of business
Statement of changes in equity
Level 5, 164 Flinders Lane
Statement of cash fl ows
Melbourne, VIC 3000
Notes to the fi nancial statements
Share register
Computershare Investor
Directors’ declaration
Services Pty Limited
Independent auditor’s report to the members of 3D Oil Limited
452 Johnston Street
Abbotsford Victoria 3067
Shareholder information
Telephone: (03) 9415 5000
Corporate directory
27
28
29
30
51
52
55
57
1
57
EAST COAST
GAS MARKET
IS ONE OF THE
FEW ENERGY
MARKETS IN THE
WORLD WITHOUT
SUBSTANTIAL
OVER CAPACITY
WELL FUNDED
WITH QUALITY
HIGH IMPACT
PROJECTS
2
MONETISED
WEST SEAHORSE
AT THE TOP OF
THE MARKET
T/49 P
POTENTIAL
WORLD
CLASS ASSET
3
MANAGING
DIRECTOR’S
REPORT
I would like to start with a recent quote
from Energy Quest, a leading energy
advisory organisation;
“The Australian east coast gas market
is one of the few energy markets
in the world without substantial
over-capacity. The next six months is
the moment of truth as the GLNG and
APLNG projects start up, at the end of
Q3 and in Q4 respectively.”
It is diffi cult to overstate how radically
the energy sector has changed in
12 months. In the history of oil and gas
exploration, and even today, many E&P
companies would not question whether
there would be a market for their product.
Many of us in the industry assumed
that the entire world’s known oil would
be produced before we swapped to an
alternative energy source. However, just
like coal, I now believe that some oil
accumulations will never be produced
due to cost factors and a changing world.
Having said that, I still believe that there
is plenty of life left in the oil and gas
exploration sector. We just have to be
smarter about where we look – and
3D Oil is attempting to do just that.
When 3D Oil was granted sole rights to
T/49P it was a large but calculated risk
predicated on a belief in the growth of
the east coast gas market. The risk lay
in the fact that the area was frontier and
our 100% equity position meant that
we had to back ourselves in our ability
to farm down the block. Our approach
at the time was ‘where can we fi nd big
gas on the east coast of Australia?’ Our
team identifi ed this area as potentially
having a rich new petroleum system.
The neighbouring Thylacine gas fi eld is
the largest and most southerly in the
Otway Basin. Nonetheless, there had
been minimal exploration undertaken
beyond the fi eld.
4
A relatively quick sell-down to Beach
Energy and then a further farm-down
prior to the acquisition of the Flanagan
3D seismic survey put 3D Oil on the
right track, with the company retaining
a 70% interest and operatorship
post-seismic. With the under-budget
Flanagan survey now acquired – a large
undertaking for a small cap – and the
seismic data interpretation nearing
completion, our next step is to attract
a large gas player to help progress the
permit towards discovery and production.
This next stage will bring 3D Oil that bit
closer to one of our major ambitions; to
be an east coast gas producer.
The Flanagan seismic data has been
very encouraging. Certainly nothing
we have seen to date on the new
seismic has changed our optimism,
in fact the opposite.
The acquisition and farm-down of T/49P
is a great illustration of the company
taking advantage of our strengths in
order to identify and exploit niche positions.
We will continue with this strategy.
As I wrote this letter last year we were
on the verge of drilling the exciting
Sea Lion Prospect in VIC/P57 in the
Gippsland Basin. For a variety of reasons
beyond the control of the VIC/P57
Joint Venture, the delivery of the West
Telesto jack up rig has been signifi cantly
delayed. Nonetheless, as I write, the
delivery of the rig to the Joint Venture
is anticipated in the fourth quarter, with
Sea Lion-1 programmed to spud shortly
after handover.
I am very excited about fi nally drilling
this prospect as it is arguably the last
undrilled ‘top Latrobe closure’ within the
Gippsland Basin. Top Latrobe closures
contain the vast majority of trapped
hydrocarbons in the Gippsland Basin.
The Rosedale Fault System, on which
Sea Lion is located, has a success rate for
discoveries in the order of 70%.
Certainly the Sea Lion prospect has
many positive attributes including
being on trend and adjacent to West
Seahorse and Seahorse oil fi elds,
delineated by reprocessed 3D seismic,
simple structural inversion feature and
interpreted to contain excellent shore
face reservoir sands. I believe it is one
of the best oil prospects currently in the
offshore of Australia, with an internal
risking of just under one in two.
An advantage for Sea Lion is that a
discovery could be tied into the nearby
planned West Seahorse development
thereby reducing the capital outlay for
production relative to a stand-alone
development. Following the monetisation
of our interest in the West Seahorse
Oil Field last year, 3D Oil would again
explore all avenues to also monetise any
discovery at Sea Lion.
The coming months are a critical period
in the short life of 3D Oil. A farm-down
in T/49P to a ‘major’ or a signifi cant
discovery in Sea Lion may well be
transformational to the company.
The uncertainty in the global energy
market together with our experience
at West Seahorse has focused the
company to continually re-evaluate its
strategy. So while we continue to pursue
our aim of being an eastern Australia
energy producer, the lessons learnt to
date remain clear in our minds.
On behalf of the company, I thank the
Board and the 3D Oil team for their
endeavours and commitment over the
last year. They are an integral part of
realising our ambition of becoming an
Australian oil and gas producer.
Australian oil and gas producer.
Noel Newell
Noel Newell
Managing Director
CHAIRMAN’S
LETTER
MANAGING WELL IN CHALLENGING TIMES
A CASE STUDY
Shareholders would not have missed
the contagion which has taken place in
commodity markets over the past eighteen
months as well as the persistent decline in
the ASX indices this year. The price of oil has
dropped dramatically and we are witnessing
a dismantling of the OPEC structure set
up in the 1970’s. Saudi Arabia can no
longer control the price of crude through
production regulation while America is now
producing more oil and there are several
other factors now in place which will make
oil substantially cheaper in the future
compared to recent years. The number of
exploration wells either drilled or planned
has fallen as companies slash exploration
budgets in the face of reduced cash fl ow
and declining revenue streams.
At the same we must remember that
with oil we are dealing with a diminishing
resource and people are not going to stop
driving cars or use plastic containers any
time soon. It is therefore important to focus
on the company’s core business mindful
of the fact that there is an underlying need
for oil which at the end of the day is a
fi nite resource. In these circumstances, a
slash and burn approach will result in lost
opportunities in what is an industry that
has generated enormous wealth for a high
number of its participants and will continue
to do so in the future.
A company such as 3D Oil has to be
assessed on how it manages its business
in the face of such challenges and I
am pleased to report that it has dealt
with the problems that the external
environment has forced on it in an
exemplary manner. The fi rst thing it has
done is reduced its exposure to volatile
commodity markets and ever escalating
production costs by transferring its
interest in Production Licence VIC/L31
while retaining a affordable interest in the
highly prospective Sea Lion well. We are all
looking forward to drilling taking place in
the last quarter of this year for very little
incremental cost due to the completion
of the Hibiscus Transaction.
The successful application for the gas
permit in the Otway basin shows the
advantages that can accrue to companies
that are prepared to diversify and develop
their portfolio organically. Gas is Australia’s
largest energy resource after coal and
uranium and the outlook for gas prices
in the Eastern States of Australia has
a very positive outlook. The successful
completion of the seismic survey and
the sale and further farm down to Beach
Energy are two early signs that this was
a very good move for 3D Oil. We are now
about to commence a farmout process,
targeting majors, to help fund the next
part of the exploration program.
The company has as a result of its
transaction with Beach and Hibiscus put
itself on a sound fi nancial footing and has
a strong balance sheet and cash reserves,
both of which are essential to its growth,
while many companies are struggling to
survive. This is critical because 3D Oil is now
well positioned to take advantage when the
oil price improves, as it inevitably will.
My thanks go to Noel and his management
team for their stable and thoughtful
management during the year. As stated
above I have been particularly impressed
with the level of care which has gone
into dealing with the company’s fi nancial
position which has, against the backdrop
of a diffi cult share market, set up 3D Oil
and its shareholders for the future very
nicely indeed.
Campbell Horsfall
Campbell Horsfall
Chairman
5
REVIEW
OF
OPERATIONS
6
VIC/P57,
GIPPSLAND BASIN
OFFSHORE VICTORIA
Exploration Permit VIC/P57 is located in
the northwest of the offshore Gippsland
Basin. The permit is close to shore, in
shallow water depths and approximately
450 sq km in size.
In July 2014 3D Oil (ASX: TDO) signed
binding agreements with companies
associated with Hibiscus Petroleum
Berhad, the parent company of
Carnarvon Hibiscus Pty Ltd (CHPL),
3D Oil’s joint venture partner and
operator in VIC/P57 and, at that
time, in VIC/L31. These agreements
were approved at a 3D Oil Limited
General Meeting on 11 August 2014.
The agreements were subsequently
completed and the associated options
were exercised. As a result, 3D Oil
received a total of US$16 million for the
sale of its 49.9% interest in the West
Seahorse Production Licence VIC/L31.
CHPL now holds 100% interest in
this Licence.
3D Oil has retained a 24.9% interest in
the VIC/P57 exploration permit with
3D Oil’s interest in the upcoming Sea
Lion-1 well being carried by CHPL
to the extent of US$7.5 million. By
arrangement with CHPL, 3D Oil Limited
continues to carry out subsurface
technical work in VIC/P57 on behalf
of the joint venture.
The Sea Lion-1 well will meet the
VIC/P57 Year 3 permit commitment.
A suspension and extension of Year 3
has been granted to accommodate the
scheduled drilling of Sea Lion-1 which is
now anticipated to commence in the last
quarter of 2015 utilising the West Telesto
jack-up rig. The West Telesto is currently
on contract with Origin Energy at the
Yolla gas fi eld offshore Tasmania and will
move to Sea Lion upon release from the
Yolla drilling programme.
Earlier work by 3D Oil in VIC/P57 has
identifi ed a strong inventory of leads and
prospects (Figure 1). During the year
3D Oil geoscience work has focused fi nal
mapping and preparation for drilling Sea
Lion-1 exploration well and on prospect
mapping in the permit with emphasis on
the Felix prospect.
The joint venture has completed its
operational and regulatory preparations
and stands ready to drill Sea Lion-1 upon
handover of the West Telesto. Drilling
had been anticipated earlier in the year
but adverse Bass Strait weather and sea
conditions continue to prevent the timely
release of the West Telesto from its current
assignment with another operator.
The Sea Lion prospect is on a proven
oil-producing trend and represents one of
the last undrilled 4-way dip closures at the
prolifi c ‘Top Latrobe’ level in the Gippsland
Basin. The combination of prominent
mapped depth structure and the likely
presence of thick high quality reservoir
sands overlain by the regional seal makes
Sea Lion uniquely prospective.
Figure 1: VIC/P57 Location
BACKGROUND
The Gippsland Basin, with initial reserves
estimated at 4 billion barrels of oil and
11.5 trillion cubic feet of gas, is Australia’s
most prolifi c oil-producing basin. Twenty
one oil and gas fi elds are on production
with most of the hydrocarbons
reservoired within the world-class
sandstones of the Latrobe Group.
Most of the historical success in the
basin was based on the interpretation
of 2D seismic data. The dominant
acreage position of the Esso-BHPB joint
venture, with a focus on large-scale
projects has to some extent hindered
the impact that 3D seismic-based
exploration has had on similar basins,
where smaller but lower risk targets
are pursued. Approximately 88% of
VIC/P57 is covered by 3D seismic data
while approximately 65% is covered
by seismic data reprocessed by the
company in 2010/11.
The lightly explored VIC/P57 permit is
located in the northwest of the basin
and extends across the oil-prone
exploration fairway that trends from
Moonfi sh to West Seahorse. This fairway
is on the western part of the Rosedale
Fault System which has an historical
success rate of approximately 70%
largely achieved with 2D data.
7
SEA LION PROSPECT
The Sea Lion well is scheduled to be
drilled with the West Telesto jack-up rig
upon completion of its drilling contract
at the Yolla Field.
Located six kilometres from the
shoreline, Sea Lion is a prominent
feature on seismic data and is one of the
last undrilled Top Latrobe closures in the
offshore Gippsland Basin. The structure,
like most Gippsland anticlines, is an
inversion feature on older normal fault.
The primary targets at Sea Lion are
the N asperus-aged fl uvial sands that
form the oil reservoirs in the West
Seahorse and Seahorse fi elds on trend.
West Seahorse contains oil in the N1
and N2.6 level sands with good oil
shows at the P1 level while Seahorse
contains oil in N1, N2.6 and the
deeper P1 levels sands.
In addition to established reservoirs in
the primary target section, Sea Lion is
also interpreted to intersect a sequence
of sands immediately below the marine
shales of the Lakes Entrance Formation.
While these sands were not present in
West Seahorse, oil recovered from a thin
sand in Wardie-1 indicates hydrocarbons
are able to migrate above the N1 level
sand. Potential for 30 to 40 meters of
these additional sands exists at Sea
Lion. (Figure 4).
Existing oil fi elds along the Rosedale
Fault system indicate that oil has been
generated and migrated into this part of
the Gippsland Basin. The West Seahorse
Field indicates this petroleum system is
working 6 km to the east. The Galloway-1
well, drilled from onshore and located
to the northeast of Sea Lion, contained
good oil shows indicating oil has
migrated beyond the discovered fi elds in
this region.
An independent resource assessment
conducted as part of the Hibiscus
farm-in process found that the
combined probabilistic estimate of the
most likely (P50) prospective resource
for the three main target levels at Sea
Lion was 11.0MMBBL of oil.
8
Figure 2: Top Latrobe Structure, Sea Lion to Seahorse
Figure 3: The Top Latrobe seal level at Sea Lion is also structurally closed with offset wells indicating
additional reservoir quality sands immediately below the Top Latrobe seal and above the N1 sands.
Figure 4: Well section from Galloway-1 to West Seahorse showing additional sand section below
Top Latrobe Seal
T/49P, OTWAY
BASIN, OFFSHORE
TASMANIA
Exploration permit T/49P was awarded to
3D Oil in May 2013. The permit is located
in the offshore Otway Basin of Tasmania
and covers an area of 4,960 sq km in water
depths generally no greater than 100m. It
is lightly explored and lies adjacent to the
Thylacine and Geographe gas fi elds which
are in production for Origin Energy and
others and have a combined gas in place
(“GIP”) of over 2 TCF.
During the year Beach Energy Limited
(ASX: BPT) acquired a 20% working
interest in T/49P for a price of $3 million
and subsequently also completed a
farmin for an additional 10% interest,
with the result that the T/49P joint
venture is now comprised of 3D Oil at
70% and operator, with Beach Energy
at 30%.
The major commitment in the primary
term of T/49P is for a 3D seismic survey.
During the year 3D Oil, as joint venture
operator, completed all environmental
and regulatory requirements and
awarded a contract for the acquisition
of the 974 sq km Flanagan 3D seismic
survey to the Polarcus Asima. The Asima
is a modern high-specifi cation vessel
which was mobilized to the area in a
cost-sharing arrangement with Origin
Energy which recorded a separate
survey with the vessel.
In December 2014, 3D Oil concluded the
acquisition of the 974 sq km Flanagan
3D seismic survey after just over one
month of operations west of King Island.
Operations were within budget and
without environmental or safety incident.
Processing of the Flanagan seismic
data, was undertaken for 3D Oil by
DownUnder GeoSolutions in Perth and
was concluded late June 2015. Seismic
interpretation and assessment of the
geology and prospectivity of the area
by geoscientists from 3D Oil and Beach
Energy is ongoing.
Figure 5: T/49P Location Map
3D Oil intends to leverage the results
of the Flanagan survey to attract the
best possible farmin terms for future
exploration in this highly prospective
gas exploration area. The partnership
established with Beach has allowed
3D Oil to retain a large pre-drilling
interest and operatorship in T/49P,
while reducing cash exposure to the
Flanagan survey. Farmout activities are
expected to commence in late 2015.
The continuing strength of Eastern
Australian gas markets is expected to
stimulate industry interest in 3D Oil’s
T/49P farmout.
9
Figure 6: Modelled Vitrinite refl ectance at the
Figure 7: Regional seismic time interpretation
Top of the Eumeralla Formation at present day
at Top of Flaxman Formation showing major
structural divisions of T/49P
BACKGROUND
The perceived geological prospectivity
of T/49P is underpinned by several
key factors. A thick ‘Tertiary wedge’
is located approximately coincident
with the shelf-break edge in a largely
north-south orientation. This is a
common feature of successful plays
further to the north and west along the
offshore Otway. It is also analogous
to productive areas on the Northwest
Shelf and many other examples around
the world. While seismic coverage is
sparse, this feature can clearly be seen
within the western sector of T/49P.
3D Oil considers that the rapid Tertiary
burial evidenced by this build-up of
sediment will have caused late stage
hydrocarbon generation from the
Eumeralla Formation and potentially
other formations along this margin.
A three dimensional maturation
modelling study has demonstrated
that source material in the Eumeralla
Formation is currently at optimal
temperature and depth for gas
generation. The present day maturity at
the top of the Eumeralla as derived from
the modelling is shown in Figure 6.
Historically, the major perceived risk
in T/49P has been the absence of the
regional seal in two early wells, Prawn-A1
(1967) and Whelk-1(1970), both of
which were dry holes located on the
Prawn Shelf. However, seismic facies
interpretation undertaken by 3D Oil in the
fi rst permit year indicated areas of good
seal based upon a low acoustic signature
correlated with the Belfast Mudstone in
the Thylacine Field. This unit overlies a
complexly faulted sequence of higher
amplitude seismic events interpreted to
include the Waarre Formation which is
the primary reservoir unit in the offshore
gas-fi elds to the north of T/49P. The
seal-reservoir combination interpreted in
T/49P is potentially analogous to that in
these fi elds.
Interpretation by 3D Oil of 2D seismic
data acquired since the drilling of
Prawn-A1, most of which data post-dates
the year 2000, indicates that this well
was drilled off structure. The 2D data,
however, is neither suffi ciently dense
nor of adequate quality to properly
resolve the complex geological structure
in the permit. In order to improve the
defi nition of the structure in the northern
part of the permit, and also to provide
clearer discrimination between potential
seals and reservoirs, the Flanagan 3D
survey was acquired in the second
permit year over an area including
both the Prawn structure and 3D Oil’s
highest ranked lead, Flanagan. The new
dataset has provided an unprecedented
degree of detail and resolution with
which to improve and refi ne 3D Oil’s
understanding of the permit’s structure,
stratigraphy and seismic facies.
One important development in 3D Oil’s
understanding of the geology in this
part of the Otway Basin has been the
recognition that what has generally been
called the Prawn Platform is not a stable
platform but rather, in the northern part
of the permit at least, a tectonically
active zone including a prominent SW to
NE-trending trough, termed the Treasure
Trough (Figure 7). Periodic subsidence
and uplift within this active zone appears
to have controlled the depositional
environment, and consequently the
distribution of reservoir and seal
facies, during subsequent periods of
sedimentation.
10
3D INTERPRETATION
PROGRESS
The 3D seismic interpretation is
proceeding on schedule and is revealing
a more complex subsurface than
indicated by the previous 2D data
interpretation. The most signifi cant
result is the clarity of the subsurface
image over the Flanagan lead. The
original 2D interpretation is shown in
Figure 8.
Figure 9 illustrates the currently
mapped top reservoir based upon the
newly acquired 3D Flanagan seismic
data. The mapping is at a preliminary
stage with the Flanagan Lead at a more
advanced stage of interpretation than
Whalebone Lead. It is immediately
evident that the Flanagan structure,
while quite complex, appears larger than
previously mapped. The lead has been
divided into West Flanagan and East
Flanagan separated by a distinct north
by northeast to south by southwest
trending fault.
Figure 9: Flanagan 3D seismic mapping on top reservoir (TWT)
Figure 8: Previous 2D seismic mapping on
top reservoir (TWT) with 3D seismic coverage
shown as a white polygon.
11
Figure 10 illustrates an arbitrary line
through West Flanagan (faults omitted)
and demonstrates the quality of the data
achieved by the Flanagan 3D seismic
survey. The new 3D data also confi rm
that the seismic character above the
top reservoir (shown as the red horizon
marker) is subdued which is indicative
of a good seal facies, compared to the
underlying reservoir package which
exhibits higher amplitude character.
This is typical of good seal/reservoir
combination and is very similar to what
is observed over the Thylacine fi eld
30 km to the northwest.
Figure 10: 3D arbitrary line through West Flanagan
12
T/49P FURTHER POTENTIAL
The prospectivity of T/49P is founded
upon three observations. Foremost,
is the ideal location of the permit with
respect to hydrocarbon charge from
the source Eumeralla Formation as it is
buried by later sediments and matured.
The permit also contains the requisite
reservoir section in the Sherbrook and
Shipwreck subgroups, and evidence
from seismic data of a suitable seal
sequence overlying the reservoirs rocks.
Finally, the block is well structured,
providing a number of leads for ongoing
evaluation. Tilted fault blocks provide
traps to capture the migration of
matured oil or gas from source areas
along the shelf margin to the west
and also from a central trough – the
‘Treasure Trough’.
While the recently acquired 3D seismic
will detail several large structures north
of the Treasure Trough, prospective
structures exist throughout the permit.
The following diagrams provide
examples which may in future years
become additional drilling targets
in T/49P. As the permit is relatively
unexplored and the density and
orientation of the old 2D seismic is
insuffi cient to clearly defi ne prospects,
it is expected that additional 3D seismic
acquisition will be required prior to
drilling in the southern area.
The Seal Rocks lead in the south of
T/49P remains inadequately defi ned by
seismic but 3D Oil views it as a highly
prospective feature. It shows clear
differentiation of seal and interpreted
reservoir facies in fault blocks at both
the Thylacine Sandstone member
equivalent (O porifera horizon) and the
Waarre Formation. Seal Rocks is well
positioned to receive charge from the
source rock section buried by tertiary
loading at the shelf margin.
The Whistler Point lead is more
structurally complex but the same
favourable geometry is interpretable.
Whistler Point can be charged from both
the north and the shelf margin to the
west. A large number of other structural
leads are identifi ed in T/49P and are
being further mapped as possible
additional targets.
Figure 11: Location of 3D arbitrary line through
West Flanagan
Figure 12: Seal Rocks lead showing tilted fault
block traps with high seismic amplitudes
below seismically bland Skull Creek Mudstone
Figure 14: Whistler Point lead showing structural development over
strong basement high. Structure and interpreted reservoir facies
are seen at Waarre Formation and O porifera horizons.
Figure 13: Geoseismic section through
Seal rocks lead. The thick wedge of Tertiary
sediment at the shelf edge provides critical
burial and maturation of the Eumeralla
Formation, with Seal Rocks trap well
positioned to receive hydrocarbon charge.
13
DIRECTORS’
REPORT
14
The directors present their report,
together with the financial statements,
on the consolidated entity (referred to
hereafter as the ‘consolidated entity’)
consisting of 3D Oil Limited (referred
to hereafter as the ‘company’ or ‘parent
entity’) and the entities it controlled at
the end of, or during, the year ended
30 June 2015.
DIRECTORS
The following persons were directors of
3D Oil Limited during the whole of the
financial year and up to the date of this
report, unless otherwise stated:
Mr Campbell Horsfall
Mr Noel Newell
Ms Melanie Leydin
Mr Leo De Maria
(appointed 1 October 2014)
Dr Kenneth Pereira
(resigned 3 July 2014)
PRINCIPAL ACTIVITIES
During the financial year the principal
continuing activities of the company
consisted of exploration and development
of upstream oil and gas assets.
DIVIDENDS
There were no dividends paid or
declared during the current or previous
financial year.
The consolidated entity does not have
franking credits available for subsequent
financial years.
REVIEW OF OPERATIONS
The profit for the consolidated entity
after providing for income tax amounted
to $2,314,986 (30 June 2014: loss of
$1,289,942).
Refer to the detailed Review of Operations
preceding this Directors’ Report.
FINANCIAL POSITION
The net assets increased by $2,329,887
to $23,277,613 at 30 June 2015
(30 June 2014: $20,947,726). During
the period the consolidated entity spent
a net amount after reimbursements
of $9,162,156 on exploration, mainly
in relation to VIC permit T49P during
the period. The consolidated entity’s
working capital position at 30 June
2015, being current assets less current
liabilities, was $9,394,372, an increase
of $12,844,083 since 30 June 2014.
Based on the above the Directors
believe the Company is in a stable
position to continue to pursue its
current operations.
SIGNIFICANT CHANGES IN
THE STATE OF AFFAIRS
On 7 July 2014 the consolidated entity
announced that it had executed binding
agreements with Carnarvon Hibiscus
Pty Ltd (CHPL), Althea Corporation
Limited, and HiRex Petroleum Sdn Bhd
(HIREX) in relation to the restructuring
of the funding and ownership of its
interest in offshore Gippsland Basin
tenements VIC/P57 and VIC/L31.
Key points of the binding agreements
were as follows:
Ǵ CHPL to pay TDO US$7.5 million for the
Company’s interest in the Britannia Rig
and a 5% interest in VIC/P57.
Ǵ The proceeds will be used to meet Year 3
funding commitments for VIC/P57.
Ǵ US$2 million will be paid in advance to
TDO to assist with short term funding.
Ǵ US$1.94 million of funding owing to the
Operator of the VIC/L31 JV will be offset
against a transfer to CHPL of a 6.07%
interest in VIC/L31.
Ǵ An option has been granted to CHPL to
purchase the remaining 43.83% interest
in VIC/L31 for $14.05 million.
Ǵ An option has been granted to HIREX to
earn a 20% interest in VIC/P57. Under
the HiRex Farmin Agreement, HIREX
has been granted the option to earn a
20% interest in VIC/P57 directly from
the Company in return for the provision
of data analysis for VIC/P57 using the
HIREX virtual drilling technology.
The option to farm-in is exercisable
within 1 month following receipt of all
conditions precedent to the agreements.
Ǵ As CHPL is a substantial holder of the
consolidated entity for the purposes
of ASX Listing Rule 10.1, Shareholder
approval was required to be obtained
to complete the matters set out in the
transaction documents.
The consolidated entity held a general
meeting of shareholders on 11 August
2014 and shareholders approved the
transaction. On 18 August 2014 the
consolidated entity announced that it
received notice from CHPL exercising its
option to acquire the VIC/L31 remaining
interest from the consolidated entity for
a consideration of US$14.05 million.
On 23 July 2014 the consolidated entity
granted 400,000 unlisted employee
options exercisable at $0.08 (8 cents)
per option expiring 30 November 2017.
On 21 August 2014 the consolidated
entity announced completion of the
sale of a 20% working interest in the
T/49P exploration permit to Beach
Energy Limited and the remaining
$2.5 million of the $3 million purchase
price was received.
On 29 October 2014 the consolidated
entity announced that the sale of 3D’s
49.9% interest in the West Seahorse
Production Licence VIC/L31 has been
completed and 3D had relieved a
settlement of US $14.05 million.
On 18 November 2014, HiRex (Australia)
Pty Ltd exercised its option to take up a
20% participating interest in the VIC/
P57 exploration permit. TDO now retains
24.9% interest in VIC/P57.
On 24 November 2014 the consolidated
entity announced that Beach Energy
Limited (Beach) increased its working
interest in the T/49P exploration permit
to 30%. Beach will earn an additional
10% interest in T/49P by paying an
increased share of the expanded
Flanagan survey costs. The final cash
contribution of the parties will be
determined by the final cost of the
acquisition and processing of the survey.
There were no other significant changes
in the state of affairs of the consolidated
entity during the financial year.
MATTERS SUBSEQUENT
TO THE END OF THE
FINANCIAL YEAR
No matter or circumstance has arisen
since 30 June 2015 that has significantly
affected, or may significantly affect
the consolidated entity’s operations,
the results of those operations, or the
consolidated entity’s state of affairs in
future financial years.
LIKELY DEVELOPMENTS
AND EXPECTED RESULTS
OF OPERATIONS
The consolidated entity will continue
to pursue its exploration interest in the
West Seahorse Oil Field (VIC/P57) in
Joint Venture partnership with Carnarvon
Hibiscus Pty Ltd following the sale of the
consolidated entity’s interest in VIC/L31
for a consideration of US$14.05 million
during the financial year.
3D Oil will continue to develop other
permits held and to this end has
successfully introduced new partners to
its new exploration permit (T/49P) in the
offshore Otway Basin of Tasmania during
the financial year. Over the course of the
next 3 years the Minimum Guaranteed
Work Programme sets out planned
expenditures of $13.15 million. 3D Oil
intend to seek a farm-in partner to assist
in financing the work programme.
15
ENVIRONMENTAL REGULATION
The consolidated entity holds
participating interests in a number of oil
and gas areas. The various authorities
granting such tenements require the
licence holder to comply with the
terms of the grant of the licence and
all directions given to it under those
terms of the licence. There have been
no known breaches of the tenement
conditions, and no such breaches
have been notified by any government
agencies during the year ended
30 June 2015.
INFORMATION ON DIRECTORS
Mr Campbell Horsfall
Non-executive Director
and Chairman
Qualifications:
B.Comm., LL.B (Melb)
Mr Noel Newell
Executive Director
Qualifications:
B App Sc (App Geol)
Ms Melanie Leydin
Non-executive Director
and Company Secretary
Qualifications:
B.Bus CA
Experience and expertise:
Experience and expertise:
Experience and expertise:
Campbell Horsfall is a lawyer with
extensive experience in the petroleum
industry and has held positions as
Company Solicitor for BP Australia
Ltd, BHP Petroleum, Japan Australia
LNG (MIMI) Pty Ltd and was General
Counsel of Vicpower Trading (formerly
the State Electricity Commission of
Victoria). Campbell holds Degrees in
Law and Commerce from the University
of Melbourne and a Diploma from the
Securities Institute and practices as a
barrister in Melbourne. Campbell has
commercial expertise in fund raisings,
mergers and acquisitions as well as
the day to day running of an ASX listed
public company. He has been a director
of two other public companies and was
a non-executive director of Orchard
Petroleum Limited. Orchard Petroleum
is an oil and gas exploration company
based in California, USA.
Other current directorships:
None
Former directorships (last 3 years):
None
Special responsibilities:
Member of Audit Committee
Interests in shares:
104,625 ordinary fully paid shares.
Interests in options:
None
16
Noel Newell holds a Bachelor of
Applied Science and has over 25 years’
experience in the oil and gas industry,
with 20 years of this time with
BHP Billiton and Petrofina. With these
companies he has been technically
involved in exploration of areas around
the globe, particularly South East Asia
and all major Australian offshore basins.
Prior to leaving BHP Billiton in 2002,
Noel was Principal Geologist working
within the Southern Margin Company
and primarily responsible for exploration
within the Gippsland Basin. Noel has
a number of technical publications
and has co-authored Best Paper and
runner up Best Paper at the Australian
Petroleum Production & Exploration
Association conference and Best
Paper at the Western Australian Basins
Symposium. Noel is the founder of
3D Oil. Immediately prior to starting
3D Oil, Noel was a technical advisor to
Nexus Energy Limited and was directly
involved in their move to explore in the
offshore of the Gippsland Basin.
Other current directorships:
None
Former directorships (last 3 years):
None
Special responsibilities:
None
Interests in shares:
39,087,789 ordinary fully paid shares.
Interests in options:
None
Melanie Leydin holds a Bachelor of
Business majoring in Accounting and
Corporate Law. She is a member of
the Institute of Chartered Accountants
and is a Registered Company Auditor.
She graduated from Swinburne
University in 1997, became a
Chartered Accountant in 1999 and
since February 2000 has been the
principal of chartered accounting firm,
Leydin Freyer. The practice provides
outsourced company secretarial and
accounting services to public and
private companies specialising in the
Resources, technology, bioscience
and biotechnology sector. Melanie
has over 23 years’ experience in the
accounting profession and has extensive
experience in relation to public company
responsibilities, including ASX and ASIC
compliance, control and implementation
of corporate governance, statutory
financial reporting, reorganisation of
Companies and shareholder relations.
Other current directorships:
None
Former directorships (last 3 years):
Celamin Holdings NL
(resigned: 9 October 2012)
Special responsibilities:
Member of Audit Committee
Interests in shares:
295,000 ordinary fully paid shares.
Interests in options:
None
‘Other current directorships’ quoted
above are current directorships for listed
entities only and excludes directorships
in all other types of entities, unless
otherwise stated.
‘Former directorships (in the last 3
years)’ quoted above are directorships
held in the last 3 years for listed entities
only and excludes directorships in all
other types of entities, unless otherwise
stated.
MEETINGS OF DIRECTORS
The number of meetings of the
company’s Board of Directors (‘the
Board’) and of each Board committee
held during the year ended 30 June
2015, and the number of meetings
attended by each director were:
Held: represents the number of
meetings held during the time the
director held office or was a member
of the relevant committee.
Full Board
Audit Committee
Attended
Held
Attended
Held
Mr C Horsfall
Mr N Newell
Ms M Leydin
Mr L De Maria
Mr K Pereira
7
7
7
5
1
7
7
7
5
1
2
–
2
1
–
2
–
2
1
–
REMUNERATION REPORT
(AUDITED)
The remuneration report, which has
been audited, outlines the director and
executive remuneration arrangements
for the company, in accordance with the
requirements of the Corporations Act
2001 and its Regulations.
Key management personnel are
those persons having authority and
responsibility for planning, directing and
controlling the activities of the entity,
directly or indirectly, including
all directors.
The remuneration report is set out
under the following main headings:
Ǵ Principles used to determine the nature
and amount of remuneration
Ǵ Details of remuneration
Ǵ Service agreements
Ǵ Share-based compensation
Ǵ Additional information
Ǵ Additional disclosures relating to
key management personnel
Mr Leo De Maria
Non-executive Director
(appointed 1 October 2014)
Experience and expertise:
Leo is a Chartered Accountant with
extensive experience in company
management, financial management,
mergers and acquisitions and risk
management.
Other current directorships:
None
Former directorships (last 3 years):
None
Special responsibilities:
Chairman of Audit Committee
Interests in shares:
650,070 ordinary fully paid shares.
Interests in options:
None
Dr Kenneth Pereira
Non-executive Director
(resigned 3 July 2014)
Qualifications:
BSc (Hons) Engineering, MBA, DBA.
Experience and expertise:
Kenneth Pereira has 22 years’
experience in the oil and gas industry
(both services and exploration and
production). He has worked for
Schlumberger (9 years as a Field
Engineer in North Africa and Europe)
and SapuraCrest Petroleum Berhad
(from founding of the company as
Sapura Energy in 1997 until 2008) as
Chief Operating Officer. In 2009, he
became Managing Director of Interlink
Petroleum Ltd, an oil and gas exploration
& production company listed on the
Mumbai Stock Exchange (2009 to 2011).
Other current directorships:
N/A
Former directorships (last 3 years):
N/A
Special responsibilities:
N/A
Interests in shares:
N/A
Interests in options:
N/A
17
PRINCIPLES USED TO DETERMINE THE
NATURE AND AMOUNT OF REMUNERATION
The objective of the consolidated
entity’s executive reward framework
is to ensure reward for performance
is competitive and appropriate for the
results delivered. The framework aligns
executive reward with the achievement
of strategic objectives and the creation
of value for shareholders, and conforms
with the market best practice for delivery
of reward. The Board of Directors (‘the
Board’) ensures that executive reward
satisfies the following key criteria for
good reward governance practices:
Ǵ competitiveness and reasonableness
Ǵ acceptability to shareholders
Ǵ alignment of executive compensation
Ǵ transparency
The Board is responsible for
determining and reviewing remuneration
arrangements for its directors and
executives. The performance of the
consolidated entity and company
depends on the quality of its directors
and executives. The remuneration
philosophy is to attract, motivate and
retain high performance and high
quality personnel.
The Board has structured an
executive remuneration framework
that is market competitive and
complementary to the reward strategy
of the consolidated entity.
Alignment to shareholders’ interests:
Non-executive directors
remuneration
Fees and payments to non-executive
directors reflect the demands which are
made on, and the responsibilities of, the
directors. Non-executive directors’ fees
and payments are reviewed annually
by the Board. The chairman’s fees
are determined independently to the
fees of other non-executive directors
based on comparative roles in the
external market. The chairman is not
present at any discussions relating to
determination of his own remuneration.
Non-executive directors do not receive
share options or other incentives.
ASX listing rules requires that the
aggregate non-executive directors
remuneration shall be determined
periodically by a general meeting.
The most recent determination was at
the Annual General Meeting held on
21 November 2012, where the
shareholders approved an aggregate
remuneration of $400,000.
Executive remuneration
The consolidated entity aims to reward
executives with a level and mix of
remuneration based on their position
and responsibility, which are both fixed.
The executive remuneration and reward
framework has three components:
Ǵ base pay and non-monetary benefits
Ǵ share-based payments
Ǵ focuses on sustained growth in
Ǵ other remuneration such as
shareholder wealth, consisting of
dividends and growth in share price,
and delivering constant or increasing
return on assets as well as focusing the
executive on key non-financial drivers
of value
Ǵ attracts and retains high calibre
executives
Alignment to program participants’
interests:
Ǵ rewards capability and experience
Ǵ reflects competitive reward for
contribution to growth in shareholder
wealth
Ǵ provides a clear structure for
earning rewards
In accordance with best practice
corporate governance, the structure of
non-executive directors and executive
remunerations are separate.
18
superannuation and long service leave
The combination of these comprises the
executive’s total remuneration.
Fixed remuneration, consisting
of base salary, superannuation
and non-monetary benefits, are
reviewed annually by the Board,
based on individual and business unit
performance, the overall performance
of the company and comparable
market remunerations.
Executives can receive their fixed
remuneration in the form of cash or
other fringe benefits (for example
motor vehicle benefits) where it does
not create any additional costs to the
company and adds additional value to
the executive.
All Executives are eligible to receive a
base salary (which is based on factors
such as experience and comparable
industry information) or consulting fee.
The Board reviews the Managing
Director’s remuneration package, and
the Managing Director reviews the
senior Executives’ remuneration
packages annually by reference to the
consolidated entity’s performance,
executive performance and comparable
information within the industry.
The performance of Executives is
measured against criteria agreed
annually with each executive and is
based predominantly on the overall
success of the consolidated entity in
achieving its broader corporate goals.
Bonuses and incentives are linked to
predetermined performance criteria.
The Board may, however, exercise its
discretion in relation to approving
incentives, bonuses, and options, and
can require changes to the Managing
Director’s recommendations. This policy
is designed to attract the highest calibre
of Executives and reward them for
performance that results in long-term
growth in shareholder wealth.
All remuneration paid to Directors and
Executives is valued at the cost to the
consolidated entity and expensed.
Options are valued using the Black-
Scholes or Binomial methodology.
The long-term incentives (‘LTI’) includes
long service leave and share-based
payments. Shares and or options are
awarded to executives on the discretion
of the Board based on long-term
incentive measures.
Consolidated entity performance and
link to remuneration
Remuneration packages do not include
performance-based components. An
individual member of staff’s performance
is assessed by reference to their
contribution to the Company’s overall
achievements. The intention of this
program is to facilitate goal congruence
between Executives with that of the
business and shareholders. Generally,
the executive’s remuneration is tied to
the consolidated entity’s successful
achievement of certain key milestones as
they relate to its operating activities.
Voting and comments made at the
company’s 17 November 2014 Annual
General Meeting (‘AGM’)
The company received 92.26% of ‘for’
votes in relation to its remuneration
report for the year ended 30 June
2014. The company did not receive any
specific feedback at the AGM regarding
its remuneration practices.
DETAILS OF REMUNERATION
Amounts of remuneration
Details of the remuneration of key management personnel of the consolidated entity
are set out in the following tables.
Details of the remuneration of the directors and other key management personnel
(defined as those who have the authority and responsibility for planning, directing
and controlling the major activities of the company) of the company are set out in the
following tables.
Short-term benefits
Post-
employment
benefits
Long-term
benefits
Share-based
payments
Cash salary
and fees
Bonus
Non-
monetary
Super-
annuation
Long service
leave
Equity-
settled
2015
Non-Executive Directors:
Mr C Horsfall
Ms M Leydin *
Mr Leo De Maria **
Executive Directors:
$
76,696
143,250
30,822
Mr N Newell
396,100
Other Key Management Personnel:
Mr A Adams
324,557
971,425
$
–
–
–
–
–
–
$
–
–
–
–
–
–
$
7,304
–
2,928
17,775
32,592
60,599
$
–
–
–
–
–
–
* This includes fees paid to Leydin Freyer Corp Pty Ltd in respect of Directors fees, Company Secretarial and Accounting services.
** Mr Leo De Maria was appointed on 1 October 2014.
Short-term benefits
Post-
employment
benefits
Long-term
benefits
Share-based
payments
Bonus
Non-
monetary
Super-
annuation
Long service
leave
Equity-
settled
2014
Non-Executive Directors:
Mr C Horsfall
Ms M Leydin *
Ms P Kelly **
Dr K Pereira ***
Cash salary
and fees
$
76,278
142,875
17,677
45,000
Executive Directors:
Mr N Newell
384,063
Other Key Management Personnel:
Mr A Adams ****
292,917
958,810
$
–
–
–
–
–
–
–
$
–
–
–
–
–
–
–
$
7,056
–
1,635
–
17,775
25,000
51,466
$
–
–
–
–
–
–
–
14,901
372,050
14,901
1,046,925
Total
$
84,000
143,250
33,750
413,875
Total
$
83,334
142,875
19,312
45,000
401,838
$
–
–
–
–
$
–
–
–
–
–
20,700
338,617
20,700
1,030,976
* This includes fees paid to Leydin Freyer Corp Pty Ltd in respect of Directors fees, Company Secretarial and Accounting services.
** Resigned on 25 November 2013
*** Resigned on 3 July 2014
**** Determined to be Key Management Personnel from 1 July 2013.
19
SERVICE AGREEMENTS
Remuneration and other terms of employment for key management personnel are
formalised in service agreements. Details of these agreements are as follows:
Mr N Newell
Managing Director
Ms M Leydin
Non-Executive Director
Agreement commenced:
Agreement commenced:
1 November 2006
23 January 2009
Details:
Details:
(i) Mr Newell may resign from his
(i) Ms Leydin may resign from her
position and thus terminate this
contract by giving 6 months
written notice.
position and thus terminate this
contract by giving 6 months written
notice.
(ii) The Company may terminate
(ii) The Company may terminate
this employment agreement by
providing 6 months written notice.
this employment agreement by
providing 6 months written notice.
(iii) The Company may terminate the
(iii) The Company may terminate the
contract at any time without notice
if serious misconduct has occurred.
Where termination with cause
occurs, Mr Newell is only entitled to
that portion of remuneration which
is fixed, and only up to the date of
termination.
contract at any time without notice
if serious misconduct has occurred.
Where termination with cause
occurs, Ms Leydin is only entitled to
that portion of remuneration which
is fixed, and only up the date of
termination.
(iv) On termination of the agreement,
(iv) On termination of the agreement,
Mr Newell will be entitled to be paid
those outstanding amount owing to
him up until the Termination date.
Ms Leydin will be entitled to be paid
those outstanding amounts owing to
her up until the Termination date.
Mr C Horsfall
Chairman
Mr A Adams
Commercial and Exploration Manager
Agreement commenced:
Agreement commenced:
23 January 2009
10 October 2012
Details:
Term of agreement:
(i) Mr Horsfall may resign from his
position and thus terminate this
contract by giving 6 months written
notice.
(i) Mr Adams may resign from his
position and thus terminate this
contract by giving 3 months written
notice.
(ii) The Company may terminate
(ii) The Company may terminate
this employment agreement by
providing 6 months written notice.
this employment agreement by
providing 6 months written notice.
(iii) The Company may terminate the
(iii) The Company may terminate the
contract at any time without notice
if serious misconduct has occurred.
Where termination with cause
occurs, Mr Horsfall is only entitled to
that portion of remuneration which
is fixed, and only up to the date of
termination.
contract at any time without notice
if serious misconduct has occurred.
Where termination with cause
occurs, Mr Adams is only entitled to
that portion of remuneration which
is fixed, and only up the the date of
termination.
(iv) On termination of the agreement,
(iv) On termination of the agreement,
Mr Horsfall will be entitled to be paid
those outstanding amounts owing to
him up until the Termination date.
Mr Adams will be entitled to be paid
those outstanding amounts owing to
her up until the Termination date.
Key management personnel have no
entitlement to termination payments in
the event of removal for misconduct.
20
SHARE-BASED COMPENSATION
Issue of shares
Options
There were no shares issued to directors
and other key management personnel
as part of compensation during the year
ended 30 June 2015.
The terms and conditions of each grant of options over ordinary shares affecting
remuneration of directors and other key management personnel in this financial
year or future reporting years are as follows:
Grant date
Vesting date and
exercisable date
Expiry date
Exercise price
Fair value per
option at grant date
23 July 2014
23 July 2014
30 November 2017
$0.08
$0.037
Number of
options granted
during the year
Number of
options granted
during the year
Number of
options vested
during the year
Number of
options vested
during the year
Name
2015
2014
2015
2014
Mr A Adams
400,000
–
400,000
–
Options granted carry no dividend
or voting rights.
The number of options over ordinary
shares granted to and vested by
directors and other key management
personnel as part of compensation
during the year ended 30 June 2015
are set out below:
ADDITIONAL
INFORMATION
The earnings of the consolidated entity
for the five years to 30 June 2015 are
summarised below:
2015
$
2014
$
2013
$
2012
$
2011
$
Revenue
192,286
47,652
101,500
140,072
336,290
Net profit/(loss) before tax
2,356,252
(1,289,142)
(2,033,105)
(7,672,697)
(1,003,568)
Net profit/(loss) after tax
2,314,986
(1,289,142)
(2,033,105)
(6,976,803)
(1,003,568)
The factors that are considered to affect total shareholders return ('TSR') are summarised below:
Share price at financial year start ($)
Share price at financial year end ($)
Basic earnings per share
(cents per share)
2015
0.07
0.06
0.97
2014
0.09
0.07
2013
0.07
0.09
2012
0.14
0.07
2011
0.20
0.14
(0.54)
(0.92)
(3.38)
(0.49)
21
ADDITIONAL
DISCLOSURES
RELATING TO KEY
MANAGEMENT
PERSONNEL
Shareholding
The number of shares in the company
held during the financial year by
each director and other members of
key management personnel of the
consolidated entity, including their
personally related parties, is set
out below:
Balance
at the
start of
the year
Received
as part of
remuneration
Additions
Disposals/
other
Balance
at the
end of
the year
Ordinary shares
Mr C Horsfall
84,625
Mr N Newell
38,344,150
Ms M Leydin
150,000
Mr L De Maria*
–
Mr K Pereira**
30,963,000
Mr A Adams
–
69,541,775
–
–
–
–
–
–
–
20,000
549,639
145,000
–
–
–
104,625
38,893,789
295,000
375,000
275,070
650,070
– (30,963,000)
–
292,000
–
292,000
1,381,639 (30,687,930)
40,235,484
* Appointed on 1 October 2014. Mr L De Maria held 275,070 ordinary fully paid shares on
appointment.
** Resigned on 3 July 2014
Option holding
The number of options over ordinary shares in the company held during the financial year
by each director and other members of key management personnel of the consolidated
entity, including their personally related parties, is set out below:
Balance at
the start of
the year
Granted
Exercised
Expired/
forfeited/
other
Balance at the
end of
the year
Options over ordinary shares
Mr A Adams
600,000
400,000
600,000
400,000
Options over ordinary shares
Mr A Adams
–
–
–
–
1,000,000
1,000,000
Vested and
exercisable
Vested and
unexercisable
Balance at the
end of
the year
1,000,000
1,000,000
–
–
1,000,000
1,000,000
This concludes the remuneration report, which has been audited.
SHARES UNDER
OPTION
Unissued ordinary shares of 3D Oil
Limited under option at the date of this
report are as follows:
Exercise
price
Number
under option
$0.18
$0.16
$0.11
$0.12
$0.08
78,000
495,000
300,000
250,000
400,000
1,523,000
Grant date
Expiry date
7 October 2011
7 October 2015
15 December 2012
30 November 2015
2 September 2013
30 November 2016
6 December 2013
29 November 2016
25 July 2014
30 November 2017
No person entitled to exercise the options
had or has any right by virtue of the option
to participate in any share issue of the
company or of any other body corporate.
22
Auditor
Grant Thornton Audit Pty Ltd continues
in office in accordance with section 327
of the Corporations Act 2001.
This report is made in accordance with
a resolution of directors, pursuant to
section 298(2)(a) of the Corporations
Act 2001.
On behalf of the directors
Noel Newell
Managing Director
30 September 2015
Melbourne
Shares issued on the exercise
of options
Proceedings on behalf of
the company
There were no ordinary shares of 3D
Oil Limited issued on the exercise of
options during the year ended 30 June
2015 and up to the date of this report.
Indemnity and insurance of officers
The consolidated entity has indemnified
the directors of the company for costs
incurred, in their capacity as a director,
for which they may be held personally
liable, except where there is a lack of
good faith.
During the financial year, the company
paid a premium in respect of a contract
to insure the directors of the company
against a liability to the extent permitted
by the Corporations Act 2001. The
contract of insurance prohibits
disclosure of the nature of liability and
the amount of the premium.
No person has applied to the Court
under section 237 of the Corporations
Act 2001 for leave to bring proceedings
on behalf of the company, or to
intervene in any proceedings to which
the company is a party for the purpose
of taking responsibility on behalf of
the company for all or part of those
proceedings.
Non-audit services
There were no non-audit services
provided during the financial year by
the auditor.
Officers of the company who are
former partners of Grant Thornton
Audit Pty Ltd
There are no officers of the company
who are former partners of Grant
Thornton Audit Pty Ltd.
Indemnity and insurance of auditor
Auditor’s independence declaration
A copy of the auditor’s independence
declaration as required under section
307C of the Corporations Act 2001 is
set out on the following page.
The company has not otherwise, during
or since the financial year, indemnified
or agreed to indemnify the auditor of the
company or any related entity against a
liability incurred by the auditor.
During the financial year, the company
has not paid a premium in respect of
a contract to insure the auditor of the
company or any related entity.
23
The Rialto, Level 30
525 Collins St
Melbourne Victoria 3000
Correspondence to:
GPO Box 4736
Melbourne Victoria 3001
T +61 3 8320 2222
F +61 3 8320 2200
E info.vic@au.gt.com
W www.grantthornton.com.au
Auditor’s Independence Declaration
To the Directors of 3D Oil Limited
In accordance with the requirements of section 307C of the Corporations Act 2001, as lead
auditor for the audit of 3D Oil Limited for the year ended 30 June 2015, I declare that, to
the best of my knowledge and belief, there have been:
a
b
no contraventions of the auditor independence requirements of the Corporations Act
2001 in relation to the audit; and
no contraventions of any applicable code of professional conduct in relation to the
audit.
GRANT THORNTON AUDIT PTY LTD
Chartered Accountants
B.A. Mackenzie
Partner - Audit & Assurance
Melbourne, 30 September 2015
Grant Thornton Audit Pty Ltd ACN 130 913 594
a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the
context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm
is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and
are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its
Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited.
Liability limited by a scheme approved under Professional Standards Legislation. Liability is limited in those States where a current
scheme applies.
24
24
FINANCIAL
REPORTS
25
STATEMENT OF PROFIT
OR LOSS AND OTHER
COMPREHENSIVE INCOME
For the year ended 30 June 2014
Revenue
Other income
Expenses
Corporate expenses
Administrative expenses
Employment expenses
Occupancy expenses
Depreciation and amortisation expense
Exploration costs written off
Loss on sale of assets
Unrealised exchange gains/loss
Writeback of well abandonment provision
Share based payments
R&D tax refund payable
Profit/(loss) before income tax expense
Consolidated
2015
$
2014
$
192,286
47,652
3,866,768
–
Note
5
6
(174,330)
(366,358)
(113,997)
(85,058)
(1,044,659)
(674,264)
(120,022)
(86,815)
7
(38,999)
(33,703)
–
–
–
(81,216)
23,556
5,714
500,000
–
(14,901)
(39,450)
(695,894)
–
2,356,252
(1,289,942)
Income tax expense
8
(41,266)
–
Profit/(loss) after income tax expense for the year attributable to the owners of 3D Oil
Limited
Other comprehensive income for the year, net of tax
2,314,986
(1,289,942)
–
–
Total comprehensive income for the year attributable to the owners of 3D Oil Limited
2,314,986
(1,289,942)
Basic earnings per share
Diluted earnings per share
Cents
0.97
0.97
Cents
(0.54)
(0.54)
35
35
26
STATEMENT
OF FINANCIAL
POSITION
As at 30 June 2015
Assets
Current assets
Cash and cash equivalents
Trade and other receivables
Other
Total current assets
Non-current assets
Property, plant and equipment
Intangibles
Exploration and evaluation
Total non-current assets
Total assets
Liabilities
Current liabilities
Trade and other payables
Borrowings
Income tax
Employee benefits
Provisions
Other
Total current liabilities
Non-current liabilities
Employee benefits
Provisions
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Accumulated losses
Total equity
Note
Consolidated
2015
$
2014
$
9
10
11
12
13
14
15
16
17
18
19
20
21
22
10,494,399
827,864
236,529
337,545
34,144
57,994
10,765,072
1,223,403
8,106
25,162
202,101
–
13,709,188
24,902,640
13,919,395
24,927,802
24,684,467
26,151,205
1,187,158
3,422,971
–
639,591
41,266
–
133,700
101,012
8,576
9,540
–
500,000
1,370,700
4,673,114
30,426
24,637
5,728
505,728
36,154
530,365
1,406,854
5,203,479
23,277,613
20,947,726
23
24
52,657,366
52,657,366
102,063
98,562
(29,481,816)
(31,808,202)
23,277,613
20,947,726
27
STATEMENT OF
CHANGES IN EQUITY
For the year ended 30 June 2015
Consolidated
Balance at 1 July 2013
Loss after income tax expense for the year
Other comprehensive income for the year, net of tax
Total comprehensive income for the year
Transactions with owners in their capacity as owners:
Share-based payments (note 36)
Expiry of Options
Contributed
equity
Accumulated
losses
Reserves Total equity
$
$
$
$
52,657,366
(30,525,543)
66,395
22,198,218
–
–
–
–
–
(1,289,942)
–
(1,289,942)
–
–
–
(1,289,942)
–
(1,289,942)
–
7,283
39,450
(7,283)
39,450
–
Balance at 30 June 2014
52,657,366 (31,808,202)
98,562
20,947,726
Consolidated
Balance at 1 July 2014
Profit after income tax expense for the year
Other comprehensive income for the year, net of tax
Total comprehensive income for the year
Transactions with owners in their capacity as owners:
Share-based payments
Expiry of Options
Contributed
equity
Accumulated
losses
Reserves Total equity
$
$
$
$
52,657,366
(31,808,202)
98,562
20,947,726
–
–
–
–
–
2,314,986
–
2,314,986
–
–
–
2,314,986
–
2,314,986
–
14,901
14,901
11,400
(11,400)
–
Balance at 30 June 2015
52,657,366 (29,481,816)
102,063
23,277,613
28
STATEMENT OF
CASH FLOWS
For the year ended 30 June 2015
Cash flows from operating activities
Receipts from customers (inclusive of GST)
Payments to suppliers and employees (inclusive of GST)
Interest received
Interest paid
Note
Consolidated
2015
$
2014
$
7,977
15,945
(4,239,052)
(455,598)
108,388
32,834
(43,348)
–
Net cash used in operating activities
34
(4,166,035)
(406,819)
Cash flows from investing activities
Payments for property, plant and equipment
Payments for intangibles
Payments for exploration and evaluation
Reimbursement from Joint Venture
Proceeds from sale of assets
Proceeds from foreign exchange investment
Net cash from/(used in) investing activities
Cash flows from financing activities
Loans received from joint venture
Net cash from financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
Effects of exchange rate changes on cash and cash equivalents
(2,400)
(17,739)
(221,644)
–
(7,047,066)
(3,079,063)
–
1,071,900
19,929,024
500,000
–
(5,714)
12,657,914
(1,530,616)
–
–
639,591
639,591
8,491,879
(1,297,844)
827,864
2,125,708
1,174,656
–
Cash and cash equivalents at the end of the financial year
9
10,494,399
827,864
29
NOTES TO THE
FINANCIAL STATEMENTS
30 June 2015
Any new, revised or amending
Accounting Standards or Interpretations
that are not yet mandatory have not
been early adopted.
3D Oil Limited and its subsidiaries
together are referred to in these
financial statements as the
‘consolidated entity’.
Basis of preparation
These general purpose financial
statements have been prepared in
accordance with Australian Accounting
Standards and Interpretations
issued by the Australian Accounting
Standards Board (‘AASB’) and the
Corporations Act 2001, as appropriate
for for-profit oriented entities. These
financial statements also comply
with International Financial Reporting
Standards as issued by the International
Accounting Standards Board (‘IASB’).
Historical cost convention
The financial statements have been
prepared under the historical cost
convention, except for, where applicable,
the revaluation of available-for-sale
financial assets, financial assets and
liabilities at fair value through profit
or loss, investment properties, certain
classes of property, plant and equipment
and derivative financial instruments.
Critical accounting estimates
The preparation of the financial
statements requires the use of certain
critical accounting estimates. It also
requires management to exercise its
judgement in the process of applying
the consolidated entity’s accounting
policies. The areas involving a higher
degree of judgement or complexity,
or areas where assumptions and
estimates are significant to the financial
statements, are disclosed in note 3.
Parent entity information
In accordance with the Corporations
Act 2001, these financial statements
present the results of the consolidated
entity only. Supplementary information
about the parent entity is disclosed in
note 31.
Principles of consolidation
The consolidated financial statements
incorporate the assets and liabilities
of all subsidiaries of 3D Oil Limited
(‘company’ or ‘parent entity’) as at
30 June 2015 and the results of all
subsidiaries for the year then ended.
Subsidiaries are all those entities over
which the consolidated entity has
control. The consolidated entity controls
an entity when the consolidated entity
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 to direct the
activities of the entity. Subsidiaries are
fully consolidated from the date on
which control is transferred to
the consolidated entity. They are
de-consolidated from the date that
control ceases.
Intercompany transactions, balances
and unrealised gains on transactions
between entities in the consolidated
entity are eliminated. Unrealised
losses are also eliminated unless the
transaction provides evidence of the
impairment of the asset transferred.
Accounting policies of subsidiaries
have been changed where necessary
to ensure consistency with the policies
adopted by the consolidated entity.
The acquisition of subsidiaries is
accounted for using the acquisition
method of accounting. A change in
ownership interest, without the loss of
control, is accounted for as an equity
transaction, where the difference
between the consideration transferred
and the book value of the share of the
non-controlling interest acquired is
recognised directly in equity attributable
to the parent.
Where the consolidated entity
loses control over a subsidiary, it
derecognises the assets including
goodwill, liabilities and non-controlling
interest in the subsidiary together with
any cumulative translation differences
recognised in equity. The consolidated
entity recognises the fair value of the
consideration received and the fair value
of any investment retained together with
any gain or loss in profit or loss.
NOTE 1. GENERAL
INFORMATION
The financial statements cover
3D Oil Limited as a consolidated
entity consisting of 3D Oil Limited and
the entities it controlled at the end
of, or during, the year. The financial
statements are presented in Australian
dollars, which is 3D Oil Limited’s
functional and presentation currency.
3D Oil Limited is a listed public company
limited by shares, incorporated and
domiciled in Australia. Its registered
office and principal place of business is:
Level 5, 164 Flinders Lane
Melbourne Victoria 3000
A description of the nature of the
consolidated entity’s operations and its
principal activities are included in the
directors’ report, which is not part of the
financial statements.
The financial statements were
authorised for issue, in accordance
with a resolution of directors, on
30 September 2015. The directors have
the power to amend and reissue the
financial statements.
NOTE 2.
SIGNIFICANT
ACCOUNTING
POLICIES
The principal accounting policies
adopted in the preparation of the
financial statements are set out below.
These policies have been consistently
applied to all the years presented,
unless otherwise stated.
New, revised or amending
Accounting Standards and
Interpretations adopted
The consolidated entity has
adopted all of the new, revised or
amending Accounting Standards and
Interpretations issued by the Australian
Accounting Standards Board (‘AASB’)
that are mandatory for the current
reporting period.
30
Operating segments
Interest
Operating segments are presented
using the ‘management approach’,
where the information presented is
on the same basis as the internal
reports provided to the Chief Operating
Decision Makers (‘CODM’). The CODM
is responsible for the allocation of
resources to operating segments and
assessing their performance.
Foreign currency translation
The financial statements are
presented in Australian dollars, which
is 3D Oil Limited’s functional and
presentation currency.
Foreign currency transactions
Foreign currency transactions are
translated into Australian dollars
using the exchange rates prevailing
at the dates of the transactions.
Foreign exchange gains and losses
resulting from the settlement of such
transactions and from the translation
at financial year-end exchange rates
of monetary assets and liabilities
denominated in foreign currencies are
recognised in profit or loss.
Foreign operations
The assets and liabilities of foreign
operations are translated into Australian
dollars using the exchange rates at
the reporting date. The revenues and
expenses of foreign operations are
translated into Australian dollars using
the average exchange rates, which
approximate the rates at the dates of
the transactions, for the period. All
resulting foreign exchange differences
are recognised in other comprehensive
income through the foreign currency
reserve in equity.
The foreign currency reserve is
recognised in profit or loss when the
foreign operation or net investment is
disposed of.
Revenue recognition
Revenue is recognised when it is
probable that the economic benefit
will flow to the consolidated entity and
the revenue can be reliably measured.
Revenue is measured at the fair value of
the consideration received or receivable.
Interest revenue is recognised as
interest accrues using the effective
interest method. This is a method
of calculating the amortised cost of
a financial asset and allocating the
interest income over the relevant
period using the effective interest rate,
which is the rate that exactly discounts
estimated future cash receipts through
the expected life of the financial asset
to the net carrying amount of the
financial asset.
Other revenue
Other revenue is recognised when it is
received or when the right to receive
payment is established.
Income tax
The income tax expense or benefit for the
period is the tax payable on that period’s
taxable income based on the applicable
income tax rate for each jurisdiction,
adjusted by the changes in deferred
tax assets and liabilities attributable to
temporary differences, unused tax losses
and the adjustment recognised for prior
periods, where applicable.
Deferred tax assets and liabilities are
recognised for temporary differences
at the tax rates expected to be applied
when the assets are recovered or
liabilities are settled, based on those tax
rates that are enacted or substantively
enacted, except for:
Ǵ When the deferred income tax asset or
liability arises from the initial recognition
of goodwill or an asset or liability in
a transaction that is not a business
combination and that, at the time of
the transaction, affects neither the
accounting nor taxable profits; or
Ǵ When the taxable temporary
difference is associated with interests
in subsidiaries, associates or joint
ventures, and the timing of the reversal
can be controlled and it is probable that
the temporary difference will not reverse
in the foreseeable future.
Deferred tax assets are recognised for
deductible temporary differences and
unused tax losses only if it is probable
that future taxable amounts will be
available to utilise those temporary
differences and losses.
The carrying amount of recognised
and unrecognised deferred tax assets
are reviewed at each reporting date.
Deferred tax assets recognised are
reduced to the extent that it is no longer
probable that future taxable profits will
be available for the carrying amount to
be recovered. Previously unrecognised
deferred tax assets are recognised to
the extent that it is probable that there
are future taxable profits available to
recover the asset.
Deferred tax assets and liabilities are
offset only where there is a legally
enforceable right to offset current tax
assets against current tax liabilities
and deferred tax assets against
deferred tax liabilities; and they relate
to the same taxable authority on either
the same taxable entity or different
taxable entities which intend to settle
simultaneously.
3D Oil Limited (the ‘head entity’) and its
wholly-owned Australian subsidiaries
have formed an income tax consolidated
group under the tax consolidation
regime. The head entity and each
subsidiary in the tax consolidated
group continue to account for their
own current and deferred tax amounts.
The tax consolidated group has applied
the ‘separate taxpayer within group’
approach in determining the appropriate
amount of taxes to allocate to members
of the tax consolidated group.
Current and non-current
classification
Assets and liabilities are presented
in the statement of financial position
based on current and non-current
classification.
An asset is classified as current when:
it is either expected to be realised
or intended to be sold or consumed
in normal operating cycle; it is held
primarily for the purpose of trading;
it is expected to be realised within
12 months after the reporting period;
or the asset is cash or cash equivalent
unless restricted from being exchanged
or used to settle a liability for at least
12 months after the reporting period.
All other assets are classified as
non-current.
A liability is classified as current when:
it is either expected to be settled
in normal operating cycle; it is held
primarily for the purpose of trading;
it is due to be settled within 12 months
after the reporting period; or there
is no unconditional right to defer the
settlement of the liability for at least
12 months after the reporting period.
All other liabilities are classified as
non-current.
Deferred tax assets and liabilities are
always classified as non-current.
31
Cash and cash equivalents
Intangible assets
Cash and cash equivalents includes
cash on hand, deposits held at call with
financial institutions, other short-term,
highly liquid investments with original
maturities of three months or less that
are readily convertible to known amounts
of cash and which are subject to an
insignificant risk of changes in value.
Trade and other receivables
Trade receivables are initially recognised
at fair value and subsequently measured
at amortised cost using the effective
interest method, less any provision
for impairment. Trade receivables are
generally due for settlement within
30 days.
Other receivables are recognised at
amortised cost, less any provision for
impairment.
Property, plant and equipment
Plant and equipment is stated at
historical cost less accumulated
depreciation and impairment.
Historical cost includes expenditure
that is directly attributable to the
acquisition of the items.
Depreciation is calculated on a straight-
line basis to write off the net cost
of each item of property, plant and
equipment (excluding land) over their
expected useful lives as follows:
Plant and equipment
3–7 years
The residual values, useful lives and
depreciation methods are reviewed,
and adjusted if appropriate, at each
reporting date.
Farm-outs
The Group does not record any
expenditure made by the farmee on
its account. It also does not recognise
any gain or loss on its exploration and
evaluation farm out arrangements
but redesignates any costs previously
capitalised in relation to the whole
interest as relating to the partial interest
retained and any consideration received
directly from the farmee is credited
against costs previously capitalised.
Intangible assets acquired as part of
a business combination, other than
goodwill, are initially measured at their
fair value at the date of the acquisition.
Intangible assets acquired separately
are initially recognised at cost. Indefinite
life intangible assets are not amortised
and are subsequently measured at
cost less any impairment. Finite life
intangible assets are subsequently
measured at cost less amortisation and
any impairment. The gains or losses
recognised in profit or loss arising
from the derecognition of intangible
assets are measured as the difference
between net disposal proceeds and
the carrying amount of the intangible
asset. The method and useful lives of
finite life intangible assets are reviewed
annually. Changes in the expected
pattern of consumption or useful life are
accounted for prospectively by changing
the amortisation method or period.
Software
Significant costs associated with
software are deferred and amortised on
a straight-line basis over the period of
their expected benefit, being their finite
life of 5 years.
Exploration and evaluation assets
Exploration and evaluation expenditure
in relation to separate areas of interest
for which rights of tenure are current
is carried forward as an asset in the
statement of financial position where
it is expected that the expenditure will
be recovered through the successful
development and exploitation of
an area of interest, or by its sale; or
exploration activities are continuing in
an area and activities have not reached
a stage which permits a reasonable
estimate of the existence or otherwise
of economically recoverable reserves.
Where a project or an area of interest
has been abandoned, the expenditure
incurred thereon is written off in the
year in which the decision is made.
Petroleum and Exploration
Development Expenditure
Petroleum and exploration development
expenditure incurred is accumulated
in respect of each identifiable area of
interest. These costs are only carried
forward in relation to each area of
interest to the extent the following
conditions are satisfied:
(a) the rights to tenure of the area of
interest are current; and
(b) at least one of the following
conditions is also met:
(i) the exploration and evaluation
expenditures are expected to
be recouped through successful
development and exploitation
of the area of interest, or
alternatively, by its sale; and
(ii) exploration and evaluation
activities in the area of interest
have not at the reporting date
reached a stage which permits
a reasonable assessment of
the existence or otherwise
of economically recoverable
reserves, and active and
significant operations in, or in
relation to, the area of interest
are continuing.
Accumulated costs in relation to an
abandoned area are written off in full
against profit in the year in which the
decision to abandon the area is made.
When production commences, the
accumulated costs for the relevant
area of interest are amortised over
the life of the area according to the
rate of depletion of the economically
recoverable reserves.
A regular review is undertaken of
each area of interest to determine
the appropriateness of continuing to
carry forward cost in relation to that
area of interest.
Costs of site restoration are provided
over the life of the facility from when
exploration commences and are
included in the cost of that stage.
Site restoration costs include the
dismantling and removal of mining plant,
equipment and building structures,
waste removal, and rehabilitation of the
site in accordance with clauses of the
mining permits. Such costs have been
determined using estimates of future
costs, current legal requirements and
technology on an undiscounted basis.
32
Any changes in the estimates for the
costs are accounted on a prospective
basis. In determining the costs of
site restoration, there is uncertainty
regarding the nature and extent of
the restoration due to community
expectations and future legislation.
Accordingly the costs have been
determined on the basis that the
restoration will be completed within
one year of abandoning the site.
Impairment of non-financial assets
Goodwill and other intangible assets
that have an indefinite useful life are
not subject to amortisation and are
tested annually for impairment, or
more frequently if events or changes in
circumstances indicate that they might
be impaired. Other non-financial assets
are reviewed for impairment whenever
events or changes in circumstances
indicate that the carrying amount may
not be recoverable. An impairment loss
is recognised for the amount by which
the asset’s carrying amount exceeds its
recoverable amount.
Recoverable amount is the higher of an
asset’s fair value less costs of disposal
and value-in-use. The value-in-use is
the present value of the estimated
future cash flows relating to the asset
using a pre-tax discount rate specific
to the asset or cash-generating unit to
which the asset belongs. Assets that
do not have independent cash flows
are grouped together to form a cash-
generating unit.
Trade and other payables
These amounts represent liabilities
for goods and services provided to the
consolidated entity prior to the end of
the financial year and which are unpaid.
Due to their short-term nature they
are measured at amortised cost and
are not discounted. The amounts are
unsecured and are usually paid within
30 days of recognition.
Finance costs
Finance costs attributable to qualifying
assets are capitalised as part of the
asset. All other finance costs are
expensed in the period in which they are
incurred.
Provisions
Provisions are recognised when the
consolidated entity has a present
(legal or constructive) obligation as
a result of a past event, it is probable
the consolidated entity will be required
to settle the obligation, and a reliable
estimate can be made of the amount of
the obligation. The amount recognised
as a provision is the best estimate of
the consideration required to settle
the present obligation at the reporting
date, taking into account the risks
and uncertainties surrounding the
obligation. If the time value of money
is material, provisions are discounted
using a current pre-tax rate specific to
the liability. The increase in the provision
resulting from the passage of time is
recognised as a finance cost.
Employee benefits
Short-term employee benefits
Liabilities for wages and salaries,
including non-monetary benefits, annual
leave and long service leave expected
to be settled within 12 months of the
reporting date are measured at the
amounts expected to be paid when the
liabilities are settled.
Other long-term employee benefits
The liability for annual leave and long
service leave not expected to be settled
within 12 months of the reporting date
are measured as the present value
of expected future payments to be
made in respect of services provided
by employees up to the reporting
date using the projected unit credit
method. Consideration is given to
expected future wage and salary levels,
experience of employee departures
and periods of service. Expected future
payments are discounted using market
yields at the reporting date on high
quality corporate bond rates with terms
to maturity and currency that match, as
closely as possible, the estimated future
cash outflows.
Share-based payments
Equity-settled and cash-settled share-
based compensation benefits are
provided to employees.
Equity-settled transactions are awards
of shares, or options over shares, that
are provided to employees in exchange
for the rendering of services. Cash-
settled transactions are awards of cash
for the exchange of services, where
the amount of cash is determined by
reference to the share price.
The cost of equity-settled transactions
are measured at fair value on grant date.
Fair value is independently determined
using either the Binomial or Black-
Scholes option pricing model that takes
into account the exercise price, the term
of the option, the impact of dilution, the
share price at grant date and expected
price volatility of the underlying share,
the expected dividend yield and the
risk free interest rate for the term of
the option, together with non-vesting
conditions that do not determine
whether the consolidated entity receives
the services that entitle the employees
to receive payment. No account is taken
of any other vesting conditions.
The cost of equity-settled transactions
are recognised as an expense with a
corresponding increase in equity over
the vesting period. The cumulative
charge to profit or loss is calculated
based on the grant date fair value of
the award, the best estimate of the
number of awards that are likely to
vest and the expired portion of the
vesting period. The amount recognised
in profit or loss for the period is the
cumulative amount calculated at each
reporting date less amounts already
recognised in previous periods.
The cost of cash-settled transactions is
initially, and at each reporting date until
vested, determined by applying either
the Binomial or Black-Scholes option
pricing model, taking into consideration
the terms and conditions on which the
award was granted. The cumulative
charge to profit or loss until settlement
of the liability is calculated as follows:
Ǵ during the vesting period, the liability at
each reporting date is the fair value of
the award at that date multiplied by the
expired portion of the vesting period.
Ǵ from the end of the vesting period until
settlement of the award, the liability is
the full fair value of the liability at the
reporting date.
All changes in the liability are recognised
in profit or loss. The ultimate cost of
cash-settled transactions is the cash
paid to settle the liability.
Market conditions are taken into
consideration in determining fair
value. Therefore any awards subject to
market conditions are considered to
vest irrespective of whether or not that
market condition has been met, provided
all other conditions are satisfied.
33
If equity-settled awards are modified, as
a minimum an expense is recognised as
if the modification has not been made.
An additional expense is recognised, over
the remaining vesting period, for any
modification that increases the total fair
value of the share-based compensation
benefit as at the date of modification.
If the non-vesting condition is within
the control of the consolidated entity
or employee, the failure to satisfy the
condition is treated as a cancellation. If
the condition is not within the control of
the consolidated entity or employee and
is not satisfied during the vesting period,
any remaining expense for the award is
recognised over the remaining vesting
period, unless the award is forfeited.
If equity-settled awards are cancelled,
it is treated as if it has vested on the
date of cancellation, and any remaining
expense is recognised immediately. If a
new replacement award is substituted
for the cancelled award, the cancelled
and new award is treated as if they were
a modification.
Fair value measurement
When an asset or liability, financial or
non-financial, is measured at fair value
for recognition or disclosure purposes,
the fair value is based on the price that
would be received to sell an asset or
paid to transfer a liability in an orderly
transaction between market participants
at the measurement date; and assumes
that the transaction will take place
either: in the principal market; or in the
absence of a principal market, in the
most advantageous market.
Fair value is measured using the
assumptions that market participants
would use when pricing the asset
or liability, assuming they act in
their economic best interests. For
non-financial assets, the fair value
measurement is based on its highest
and best use. Valuation techniques that
are appropriate in the circumstances
and for which sufficient data are
available to measure fair value, are
used, maximising the use of relevant
observable inputs and minimising the
use of unobservable inputs.
Issued capital
Ordinary shares are classified as equity.
Incremental costs directly attributable
to the issue of new shares or options are
shown in equity as a deduction, net of
tax, from the proceeds.
34
Dividends
Dividends are recognised when declared
during the financial year and no longer
at the discretion of the company.
of GST recoverable from, or payable to,
the tax authority is included in other
receivables or other payables in the
statement of financial position.
Earnings per share
Basic earnings per share
Basic earnings per share is calculated
by dividing the profit attributable to
the owners of 3D Oil Limited, excluding
any costs of servicing equity other
than ordinary shares, by the weighted
average number of ordinary shares
outstanding during the financial year,
adjusted for bonus elements in ordinary
shares issued during the financial year.
Diluted earnings per share
Diluted earnings per share adjusts the
figures used in the determination of basic
earnings per share to take into account
the after income tax effect of interest
and other financing costs associated
with dilutive potential ordinary shares
and the weighted average number of
shares assumed to have been issued for
no consideration in relation to dilutive
potential ordinary shares.
Leases
The determination of whether
an arrangement is or contains a
lease is based on the substance of
the arrangement and requires an
assessment of whether the fulfilment
of the arrangement is dependent on the
use of a specific asset or assets and the
arrangement conveys a right to use the
asset. A distinction is made between
finance leases, which effectively
transfer from the lessor to the lessee
substantially all the risks and benefits
incidental to ownership of leased assets,
and operating leases, under which the
lessor effectively retains substantially all
such risks and benefits.
Operating lease payments, net of any
incentives received from the lessor, are
charged to profit or loss on a straight-
line basis over the term of the lease.
The consolidated entity has not entered
into any finance leases.
Goods and Services Tax (‘GST’) and
other similar taxes
Revenues, expenses and assets are
recognised net of the amount of
associated GST, unless the GST incurred
is not recoverable from the tax authority.
In this case it is recognised as part of the
cost of the acquisition of the asset or as
part of the expense.
Receivables and payables are stated
inclusive of the amount of GST
receivable or payable. The net amount
Cash flows are presented on a gross
basis. The GST components of cash
flows arising from investing or financing
activities which are recoverable from,
or payable to the tax authority, are
presented as operating cash flows.
Commitments and contingencies are
disclosed net of the amount of GST
recoverable from, or payable to, the tax
authority.
New Accounting Standards and
Interpretations not yet mandatory or
early adopted
Australian Accounting Standards and
Interpretations that have recently
been issued or amended but are not
yet mandatory, have not been early
adopted by the consolidated entity for
the annual reporting period ended 30
June 2015. The consolidated entity’s
assessment of the impact of these new
or amended Accounting Standards and
Interpretations, most relevant to the
consolidated entity, are set out below.
AASB 9 Financial Instruments
This standard and its consequential
amendments are applicable to annual
reporting periods beginning on or
after 1 January 2018 and completes
phases I and III of the IASB’s project
to replace IAS 39 (AASB 139)
‘Financial Instruments: Recognition
and Measurement’. This standard
introduces new classification and
measurement models for financial
assets, using a single approach to
determine whether a financial asset
is measured at amortised cost or fair
value. The accounting for financial
liabilities continues to be classified and
measured in accordance with AASB
139, with one exception, being that the
portion of a change of fair value relating
to the entity’s own credit risk is to be
presented in other comprehensive
income unless it would create an
accounting mismatch. Chapter 6 ‘Hedge
Accounting’ supersedes the general
hedge accounting requirements in
AASB 139 and provides a new simpler
approach to hedge accounting that is
intended to more closely align with risk
management activities undertaken by
entities when hedging financial and
non-financial risks. The consolidated
entity will adopt this standard and the
amendments from 1 January 2018 but
the impact of its adoption is yet to be
assessed by the consolidated entity.
AASB 15 Revenue from Contracts
with Customers
This standard is applicable to annual
reporting periods beginning on or after
1 January 2017. The standard provides a
single standard for revenue recognition.
The core principle of the standard is
that an entity will recognise revenue to
depict the transfer of promised goods
or services to customers in an amount
that reflects the consideration to which
the entity expects to be entitled in
exchange for those goods or services.
The standard will require: contracts
(either written, verbal or implied) to be
identified, together with the separate
performance obligations within the
contract; determine the transaction
price, adjusted for the time value of
money excluding credit risk; allocation
of the transaction price to the separate
performance obligations on a basis of
relative stand-alone selling price of each
distinct good or service, or estimation
approach if no distinct observable
prices exist; and recognition of revenue
when each performance obligation is
satisfied. Credit risk will be presented
separately as an expense rather than
adjusted to revenue. For goods, the
performance obligation would be
satisfied when the customer obtains
control of the goods. For services, the
performance obligation is satisfied
when the service has been provided,
typically for promises to transfer
services to customers. For performance
obligations satisfied over time, an entity
would select an appropriate measure
of progress to determine how much
revenue should be recognised as the
performance obligation is satisfied.
Contracts with customers will be
presented in an entity’s statement of
financial position as a contract liability,
a contract asset, or a receivable,
depending on the relationship between
the entity’s performance and the
customer’s payment. Sufficient
quantitative and qualitative disclosure is
required to enable users to understand
the contracts with customers; the
significant judgments made in applying
the guidance to those contracts; and
any assets recognised from the costs
to obtain or fulfil a contract with a
customer. The consolidated entity will
adopt this standard from 1 January 2017
but the impact of its adoption is yet to
be assessed by the consolidated entity.
NOTE 3. CRITICAL
ACCOUNTING
JUDGEMENTS,
ESTIMATES AND
ASSUMPTIONS
The preparation of the financial
statements requires management
to make judgements, estimates and
assumptions that affect the reported
amounts in the financial statements.
Management continually evaluates its
judgements and estimates in relation to
assets, liabilities, contingent liabilities,
revenue and expenses. Management
bases its judgements, estimates and
assumptions on historical experience
and on other various factors, including
expectations of future events,
management believes to be reasonable
under the circumstances. The resulting
accounting judgements and estimates
will seldom equal the related actual
results. The judgements, estimates and
assumptions that have a significant
risk of causing a material adjustment
to the carrying amounts of assets
and liabilities (refer to the respective
notes) within the next financial year are
discussed below.
Share-based payment transactions
The consolidated entity measures the
cost of equity-settled transactions
with employees by reference to the fair
value of the equity instruments at the
date at which they are granted. The fair
value is determined by using either the
Binomial or Black-Scholes model taking
into account the terms and conditions
upon which the instruments were
granted. The accounting estimates and
assumptions relating to equity-settled
share-based payments would have
no impact on the carrying amounts of
assets and liabilities within the next
annual reporting period but may impact
profit or loss and equity.
Estimation of useful lives of assets
The consolidated entity determines
the estimated useful lives and related
depreciation and amortisation charges
for its property, plant and equipment
and finite life intangible assets. The
useful lives could change significantly
as a result of technical innovations or
some other event. The depreciation and
amortisation charge will increase where
the useful lives are less than previously
estimated lives, or technically obsolete
or non-strategic assets that have been
abandoned or sold will be written off or
written down.
Exploration and evaluation costs
Exploration and evaluation costs
have been capitalised on the basis
that the consolidated entity will
commence commercial production in
the future, from which time the costs
will be amortised in proportion to the
depletion of the mineral resources. Key
judgements are applied in considering
costs to be capitalised which includes
determining expenditures directly
related to these activities and allocating
overheads between those that are
expensed and capitalised. In addition,
costs are only capitalised that are
expected to be recovered either through
successful development or sale of the
relevant mining interest. Factors that
could impact the future commercial
production at the mine include the
level of reserves and resources, future
technology changes, which could
impact the cost of mining, future legal
changes and changes in commodity
prices. To the extent that capitalised
costs are determined not to be
recoverable in the future, they will be
written off in the period in which this
determination is made.
NOTE 4. OPERATING
SEGMENTS
AASB 8 requires operating segments
to be identified on the basis of internal
reports about the components of the
consolidated entity that are regularly
reviewed by the chief decision maker
in order to allocate resources to the
segment and to assess its performance.
3D Oil Limited operates in the
development of oil and gas within
Australia. The consolidated entity’s
activities are therefore classified as
one operating segment. The chief
decision makers, being the Board of
Directors, assess the performance of
the consolidated entity as a whole and
as such through one segment.
35
NOTE 5. REVENUE
Interest
Rent
Joint Venture operator fees
Consolidated
2015
$
106,613
7,252
78,421
2014
$
31,707
15,945
–
Revenue
192,286
47,652
NOTE 6. OTHER INCOME
Net foreign exchange gain
Net gain on disposal of assets
Other income
NOTE 7. EXPENSES
2015
$
1,174,656
2,692,112
3,866,768
Consolidated
2014
$
–
–
–
Consolidated
2015
$
2014
$
Profit/(loss) before income tax includes the following specific expenses:
Depreciation
Plant and equipment
Amortisation
Software
Total depreciation and amortisation
Post employment benefit plans – Superannuation
contributions
Equity settled share based payments
Operating lease payments
Office lease
R&D tax refund payable
(19,456)
(19,142)
(19,543)
(14,561)
(38,999)
(33,703)
(45,126)
(86,749)
(14,901)
(39,450)
(60,027)
(126,199)
(113,802)
(64,221)
(695,894)
–
36
In the financial year ended 30 June 2012
the consolidated entity received a tax
refund in relation to R&D Tax Incentive
of $695,894. The Company has received
notification that AusIndustry has
reversed this claim following their audit
process. The Company has therefore
recognised this expense during the
current financial year.
NOTE 8. INCOME TAX EXPENSE
Consolidated
Petroleum Resource Rent Tax
2015
$
2014
$
Numerical reconciliation of income tax expense and tax at the statutory rate
Profit/(loss) before income tax expense
2,356,252
(1,289,942)
Tax at the statutory tax rate of 30%
706,876
(386,983)
Tax effect amounts which are not deductible/(taxable)
in calculating taxable income:
Entertainment expenses
Share-based payments
Share of Joint venture losses
Other non-deductible expenses
1,785
4,470
952
11,385
(942,266)
(810,935)
208,774
–
Previously unrecognised DTA now brought to account
61,627
1,185,581
Income tax expense
41,266
–
Consolidated
2015
$
2014
$
Deferred tax assets not recognised
Deferred tax assets not recognised comprises temporary differences attributable to:
Tax Losses
8,502,984
2,582,792
Total deferred tax assets not recognised
8,502,984
2,582,792
Petroleum Resource Rent Tax (PRRT)
applies to petroleum projects in
Australian onshore and offshore areas
under the Petroleum Resource Rent Tax
Assessment Act 1987. PRRT is assessed
on a project basis or production licence
area and is levied on the taxable profits
of a petroleum project at a rate of 40%.
Production license VIC/L31 has been
registered at a project for PRRT
purposes. Eligible expenditure incurred in
relation to the production license
VIC/L31 and permits VIC/P57 and T49P,
attach to the permit and can be carried
forward. Certain specified undeducted
expenditure is eligible for annual
compounding at set rates. The compound
amount can be deducted against
assessable receipts in future years.
The consolidated entity has undeducted
expenditure across its license/permits
of $10M at 30 June 2015 (2014: $59M).
As compounding occurs annually on
1 July, the compounded amount at
1 July 2015 is estimated at $11M
(1 July 2014: $61M).
The Company has not recognised a
deferred tax asset with respect to the
carried forward undeducted expenditure.
The above potential tax benefit, which
excludes tax losses, for deductible
temporary differences has not been
recognised in the statement of financial
position as the recovery of this benefit is
uncertain.
The taxation benefits of tax losses and
temporary difference not brought to
account will only be obtained if:
(i) the consolidated entity derives future
assessable income of a nature and of an
amount sufficient to enable the benefit
from the deductions for the losses to
be realised; (ii) the consolidated entity
continues to comply with the conditions
for deductibility imposed by law; and (iii)
no change in tax legislation adversely
affects the company in realising the
benefits from deducting the losses.
37
NOTE 9. CURRENT ASSETS –
CASH AND CASH EQUIVALENTS
Cash at bank
Cash on deposit
Consolidated
2015
$
2014
$
10,333,604
669,344
160,795
158,520
10,494,399
827,864
NOTE 10. CURRENT ASSETS –
TRADE AND OTHER RECEIVABLES
Trade receivables
Interest receivable
GST receivable
Consolidated
2015
$
2014
$
Trade receivables represent
reimbursement of labour costs and
third party invoices by Carnarvon
Hibiscus Pty Ltd.
205,890
319,556
225
30,414
2,000
15,989
236,529
337,545
The average credit period on trade
and other receivables is 30 days. No
interest is charged on the receivables.
The consolidated entity has financial
risk management policies in place to
ensure that all receivables are received
within the credit timeframe. Due to the
short term nature of these receivables,
their carrying value is assumed to be
approximate to their fair value.
NOTE 11. CURRENT ASSETS – OTHER
Consolidated
2015
$
2014
$
Prepayments
34,144
57,994
38
NOTE 12. NON-CURRENT ASSETS –
PROPERTY, PLANT AND EQUIPMENT
Plant and equipment – at cost
Less: Accumulated depreciation
Consolidated
2015
$
2014
$
125,569
123,169
(117,463)
(98,007)
8,106
25,162
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and
previous financial year are set out below:
Consolidated
Balance at 1 July 2013
Additions
Depreciation expense
Balance at 30 June 2014
Additions
Depreciation expense
Plant &
Equipment
$
26,565
17,739
Total
$
26,565
17,739
(19,142)
(19,142)
25,162
2,400
25,162
2,400
(19,456)
(19,456)
Balance at 30 June 2015
8,106
8,106
NOTE 13. NON-CURRENT ASSETS –
INTANGIBLES
Software – at cost
Less: Accumulated amortisation
Consolidated
2015
$
2014
$
375,230
153,586
(173,129)
(153,586)
202,101
–
Reconciliations
Reconciliations of the written down values at the beginning and end of the current
and previous financial year are set out below:
Consolidated
Balance at 1 July 2013
Amortisation expense
Balance at 30 June 2014
Additions
Amortisation expense
Software
$
Total
$
14,561
14,561
(14,561)
(14,561)
–
–
221,644
221,644
(19,543)
(19,543)
Balance at 30 June 2015
202,101
202,101
39
The recoverability of the carrying
amount of the exploration and
evaluation assets is dependent
on successful development and
commercial exploitation, or alternatively,
sale of the respective areas of interest.
Farm-outs — in the exploration and
evaluation phase
The consolidated entity does not record
any expenditure made by the farmee on
its account. It also does not recognise
any gain or loss on its exploration and
evaluation farm-out arrangements,
but redesignates any costs previously
capitalised in relation to the whole
interest as relating to the partial interest
retained. Any cash consideration
received directly from the farmee
is credited against costs previously
capitalised in relation to the whole
interest with any excess accounted for
by the farmor as a gain on disposal.
NOTE 14. NON-CURRENT ASSETS –
EXPLORATION AND EVALUATION
Consolidated
2015
$
2014
$
Exploration and evaluation expenditure
13,709,188 24,902,640
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and
previous financial year are set out below:
Consolidated
Balance at 1 July 2013
Expenditure during the year
Write off of assets
Exploration &
Development Expenditure
$
Total
$
20,632,631
20,632,631
5,849,870
5,849,870
(81,216)
(81,216)
Reimbursement from Joint Venture
(1,498,645)
(1,498,645)
Balance at 30 June 2014
Expenditure during the year
Sale of interest in T49P
Sale of interest in VIC P57
24,902,640
24,902,640
9,162,156
9,162,156
(307,888)
(307,888)
(20,047,720)
(20,047,720)
Balance at 30 June 2015
13,709,188
13,709,188
NOTE 15. CURRENT LIABILITIES –
TRADE AND OTHER PAYABLES
Trade payables
Sundry payables and accrued expenses
Consolidated
2015
$
2014
$
309,007
3,089,592
878,151
333,379
1,187,158
3,422,971
Refer to note 26 for further information on financial instruments.
NOTE 16. CURRENT LIABILITIES –
BORROWINGS
Loan – Carnarvon Hibiscus
Refer to note 26 for further information on financial instruments.
40
Consolidated
2015
$
–
2014
$
639,591
On 13 May 2014 the consolidated entity
announced that it had entered into a
non-binding heads of agreement with
Carnarvon Hibiscus Pty Ltd (CHPL),
Athlea Corporation Limited and HiRex
Petroleum Sdn Bhd (HIREX). Within one
day of executing the heads of agreement,
CHPL was required to transfer USD
$600,000 to the consolidated entity for
working capital purposes. These funds
were repayable to the joint venture
without interest within 8 months of
signing the final agreements.
NOTE 17. CURRENT LIABILITIES –
INCOME TAX
Provision for income tax
Consolidated
2015
$
41,266
2014
$
–
NOTE 18. CURRENT LIABILITIES –
EMPLOYEE BENEFITS
Annual leave
Long service leave
Consolidated
2015
$
52,978
80,722
2014
$
49,118
51,894
133,700
101,012
NOTE 19. CURRENT LIABILITIES –
PROVISIONS
Deferred lease incentives
8,576
9,540
2015
$
2014
$
The provision represents operating lease
incentives received. The incentives are
allocated to profit or loss in such a manner
that the rent expense is recognised on a
straight-line basis over the lease term.
Consolidated
Deferred lease incentives
NOTE 20. CURRENT LIABILITIES – OTHER
Deposits received
Consolidated
2015
$
–
2014
$
500,000
On 16 June 2014 the consolidated entity
announced that it had entered into an
agreement with Beach Energy Limited for
the purchase of a 20% working interest
of the consolidated entity’s T/49P permit
for a consideration of $3 million and a
deposit of $500,000 was received during
the previous financial year. The sale was
completed in October 2014.
NOTE 21. NON-CURRENT LIABILITIES –
EMPLOYEE BENEFITS
Consolidated
2015
$
2014
$
Long service leave
30,426
24,637
41
NOTE 22. NON-CURRENT LIABILITIES –
PROVISIONS
Deferred lease incentives
Provision for well abandonment
Consolidated
Provision for Well Abandonment
2015
$
5,728
2014
$
5,728
–
500,000
5,728
505,728
The provision for well abandonment
represents the present value of
director’s best estimate for the costs
to abandon the Wardie-1 Well. There
is no current estimate of when any
abandonment may take place in
light of the recently agreed farm-in
arrangement with Hibiscus
Petroleum Berhad.
NOTE 23. EQUITY – ISSUED CAPITAL
2015
2014
Shares
Shares
Consolidated
2015
$
2014
$
Ordinary shares – fully paid
237,523,000 237,523,000
52,657,366
52,657,366
Ordinary shares
Capital risk management
Options
Ordinary shares entitle the holder to
participate in dividends and the proceeds
on the winding up of the company
in proportion to the number of and
amounts paid on the shares held. The
fully paid ordinary shares have no par
value and the company does not have a
limited amount of authorised capital.
The company’s objectives when
managing capital are to safeguard its
ability to continue as a going concern,
so that it can provide returns for
shareholders and benefits for other
stakeholders and to maintain an
optimum capital structure to reduce the
cost of capital.
For further information in relation to
unissued ordinary shares of 3D Oil
Limited under option, refer to the
Directors’ report and Note 30.
On a show of hands every member
present at a meeting in person or by
proxy shall have one vote and upon a
poll each share shall have one vote.
In order to maintain or adjust the
capital structure, the company may
adjust the amount of dividends paid
to shareholders, return capital to
shareholders, issue new shares or sell
assets to reduce debt.
The consolidated entity would look
to raise capital when an opportunity
to invest in a business or company
was seen as value adding relative
to the current parent entity’s share
price at the time of the investment.
The company is not actively pursuing
additional investments in the short
term as it continues to integrate and
grow its existing businesses in order to
maximise synergies.
The capital risk management policy
remains unchanged from the 30 June
2014 Annual Report.
42
NOTE 24. EQUITY – RESERVES
Consolidated
2015
$
2014
$
Share-based payments reserve
102,063
98,562
Movements in reserves
Movements in each class of reserve during the current and previous financial year
are set out below:
Consolidated
Balance at 1 July 2013
Share based payments
Expiry of options
Balance at 30 June 2014
Share based payments
Expiry of options
Options
Reserve
$
66,395
39,450
(7,283)
98,562
14,901
Total
$
66,395
39,450
(7,283)
98,562
14,901
(11,400)
(11,400)
Balance at 30 June 2015
102,063
102,063
NOTE 25. EQUITY – DIVIDENDS
There were no dividends paid or
declared during the current or previous
financial year.
The consolidated entity does not have
franking credits available for subsequent
financial years.
43
NOTE 26. FINANCIAL INSTRUMENTS
Financial risk management objectives
The consolidated entity’s activities
expose it to a variety of financial
risks: market risk (including foreign
currency risk, price risk and interest
rate risk), credit risk and liquidity risk.
The consolidated entity’s overall risk
management program focuses on the
unpredictability of financial markets
and seeks to minimise potential adverse
effects on the financial performance
of the consolidated entity. The
consolidated entity uses derivative
financial instruments such as forward
foreign exchange contracts to hedge
certain risk exposures. Derivatives are
exclusively used for hedging purposes,
i.e. not as trading or other speculative
instruments. The consolidated entity
uses different methods to measure
different types of risk to which it
is exposed.
These methods include sensitivity
analysis in the case of interest rate,
foreign exchange and other price risks,
ageing analysis for credit risk and
beta analysis in respect of investment
portfolios to determine market risk.
Risk management is carried out by
senior finance executives (‘finance’)
under policies approved by the Board of
Directors (‘the Board’). These policies
include identification and analysis of the
risk exposure of the consolidated entity
and appropriate procedures, controls
and risk limits. Finance identifies,
evaluates and hedges financial risks
within the consolidated entity’s
operating units. Finance reports to the
Board on a monthly basis.
Consolidated
2015
$
US dollars
5,278,265
Assets
2014
$
–
Liabilities
2015
2014
$
–
$
–
Market risk
Foreign currency risk
The consolidated entity undertakes
certain transactions denominated in
foreign currency and is exposed to
foreign currency risk through foreign
exchange rate fluctuations. The
consolidated entity operates a US
dollar bank account for the purpose of
transacting in US dollars.
Foreign exchange risk arises from
future commercial transactions and
recognised financial assets and financial
liabilities denominated in a currency that
is not the entity’s functional currency.
The risk is measured using sensitivity
analysis and cash flow forecasting.
The carrying amount of the consolidated
entity’s foreign currency denominated
financial assets and financial liabilities at
the reporting date were as follows:
The consolidated entity operated a
US dollar bank account. There were no
other assets or liabilities denominated
in foreign currencies at the year end.
The US balance on the account was
US$4,053,707 and the exchange rate
used to translate the balance at
30 June 2015 was $1.3021.
Consolidated – 2015
% change
Effect on
profit
before tax
Effect on
equity
% change
Effect on
profit
before tax
Effect on
equity
AUD strengthened
AUD weakened
US dollar
Price risk
The consolidated entity is not exposed
to any significant price risk.
4%
(209,863)
(209,863)
9%
497,070
497,070
Interest rate risk
The consolidated entity’s only exposure
to interest rate risk is in relation to
deposits held. Deposits are held with
reputable banking financial institutions.
The tables below illustrate the impact on
profit before tax based upon expected
volatility of interest rates using market
data and analysis forecasts.
Consolidated – 2015
Basis points increase
Basis points decrease
Basis points
change
Effect on
profit
before tax
Effect on
equity
Basis points
change
Effect on
profit
before tax
Effect on
equity
Cash at bank
50
5,331
5,331
50
(5,331)
(5,331)
44
Consolidated – 2014
Basis points
change
Effect on profit
before tax
Effect on
equity
Basis points
change
Effect on profit
before tax
Effect on
equity
Basis points increase
Basis points decrease
Cash at bank
50
4,139
4,139
50
(4,139)
(4,139)
Credit risk
Liquidity risk
Credit risk refers to the risk that
a counterparty will default on its
contractual obligations resulting in
financial loss to the consolidated entity.
The consolidated entity has a strict
code of credit, including obtaining
agency credit information, confirming
references and setting appropriate
credit limits. The consolidated entity
obtains guarantees where appropriate
to mitigate credit risk. The maximum
exposure to credit risk at the reporting
date to recognised financial assets is the
carrying amount, net of any provisions
for impairment of those assets, as
disclosed in the statement of financial
position and notes to the financial
statements. The consolidated entity
does not hold any collateral.
Vigilant liquidity risk management
requires the consolidated entity to
maintain sufficient liquid assets
(mainly cash and cash equivalents) and
available borrowing facilities to be able
to pay debts as and when they become
due and payable.
The consolidated entity manages
liquidity risk by maintaining adequate
cash reserves and available borrowing
facilities by continuously monitoring
actual and forecast cash flows and
matching the maturity profiles of
financial assets and liabilities.
Remaining contractual maturities
The following tables detail the
consolidated entity’s remaining
contractual maturity for its financial
instrument liabilities. The tables
have been drawn up based on the
undiscounted cash flows of financial
liabilities based on the earliest date
on which the financial liabilities are
required to be paid. The tables include
both interest and principal cash flows
disclosed as remaining contractual
maturities and therefore these totals
may differ from their carrying amount in
the statement of financial position.
Consolidated – 2015
Non-derivatives
Non-interest bearing
Trade and other payables
Total non-derivatives
Consolidated – 2014
Non-derivatives
Non-interest bearing
Trade and other payables
Other loans
Total non-derivatives
Weighted
average
interest rate
%
1 year
or less
$
-%
1,187,157
1,187,157
Weighted
average
interest rate
%
-%
-%
1 year
or less
$
3,422,971
639,591
4,062,562
Between
1 and
2 years
Between
2 and
5 years
Over 5
years
$
–
–
$
–
–
$
–
–
Between
1 and
2 years
Between
2 and
5 years
Over 5
years
$
–
–
–
$
–
–
–
$
–
–
–
Remaining
contractual
maturities
$
1,187,157
1,187,157
Remaining
contractual
maturities
$
3,422,971
639,591
4,062,562
The cash flows in the maturity analysis above are not expected to occur significantly earlier than contractually disclosed above.
Fair value of financial instruments
Unless otherwise stated, the carrying
amounts of financial instruments reflect
their fair value. The carrying amounts
of trade receivables and trade payables
are assumed to approximate their fair
values due to their short-term nature.
The fair value of financial liabilities is
estimated by discounting the remaining
contractual maturities at the current
market interest rate that is available for
similar financial instruments.
45
NOTE 27. KEY MANAGEMENT
PERSONNEL DISCLOSURES
Directors
The following persons were directors of 3D Oil Limited during the financial year:
Mr Campbell Horsfall
Non-executive Chairman
Mr Noel Newell
Managing Director
Ms Melanie Leydin
Non-executive Director and Company Secretary
Mr Leo De Maria
Non-executive Director (appointed 1 October 2014)
Mr Kenneth Pereira
Non-executive Director (resigned 3 July 2014)
Other key management personnel
The following person also had the authority and responsibility for planning, directing
and controlling the major activities of the consolidated entity, directly or indirectly,
during the financial year:
Mr Andrew Adams
Commercial and Exploration Manager
Compensation
The aggregate compensation made to directors and other members of key management
personnel of the consolidated entity is set out below:
Short-term employee benefits
Post-employment benefits
Long-term benefits
Consolidated
2015
$
2014
$
971,425
958,810
60,599
14,901
51,466
20,700
1,046,925
1,030,976
NOTE 28. REMUNERATION OF AUDITORS
During the financial year the following fees were paid or payable for services provided
by Grant Thornton Audit Pty Ltd, the auditor of the company:
Consolidated
2015
$
2014
$
Audit services – Grant Thornton Audit Pty Ltd
Audit or review of the financial statements
45,000
47,400
46
NOTE 29. COMMITMENTS
Consolidated
2015
$
2014
$
Operating Lease Commitments
Committed at the reporting date but not recognised as liabilities, payable:
Within one year
One to four years
49,801
49,801
88,146
44,073
99,602
132,219
Exploration Licenses – Commitments for Expenditure
Committed at the reporting date but not recognised as liabilities, payable:
Within one year
One to five years
250,000
12,000,000
500,000
750,000
750,000
12,750,000
In order to maintain current rights of
tenure to exploration tenements, the
consolidated entity is required to outlay
rentals and to meet the minimum work
requirements and associated indicative
expenditure of the National Offshore
Petroleum Titles Administration.
Minimum commitments may be
subject to renegotiation and with
approval may otherwise be avoided by
sale, farm out or relinquishment. These
obligations are not provided in the
accounts and are payable.
The company has included its
commitments for indicative expenditure
in the above note relating to Exploration
Permit T/49P up to year 3 as outlined
in the permit documentation.
Commitments from year 4 onwards
are confirmed on a year-by-year basis
dependent on the Company agreeing to
proceed. If the Company was to proceed
beyond year 3, the current indicative
expenditure commitment for Years
4–6 is gross $41mill and this would be
occurring in years 2017–2019.
NOTE 30. RELATED PARTY TRANSACTIONS
Parent entity
3D Oil Limited is the parent entity.
Subsidiaries
Interests in subsidiaries are set out in
note 32.
Key management personnel
Disclosures relating to key
management personnel are set out in
note 27 and the remuneration report in
the directors’ report.
Transactions with related parties
There were no transactions with related
parties during the current and previous
financial year.
Receivable from and payable to
related parties
There were no trade receivables from or
trade payables to related parties at the
current and previous reporting date.
Loans to/from related parties
There were no loans to or from related
parties at the current and previous
reporting date.
47
NOTE 31. PARENT ENTITY INFORMATION
Set out below is the supplementary information about the parent entity.
Statement of profit or loss and other comprehensive income
2015
$
Parent
2014
$
Loss after income tax
(456,564)
(1,271,574)
Total comprehensive income
(456,564)
(1,271,574)
Statement of financial position
2015
$
Parent
2014
$
Total current assets
10,691,121
1,223,391
Guarantees entered into by the
parent entity in relation to the debts
of its subsidiaries
The parent entity had no guarantees in
relation to the debts of its subsidiaries
as at 30 June 2015 and 30 June 2014.
Contingent liabilities
The parent entity had no contingent
liabilities as at 30 June 2015 and 30
June 2014.
Capital commitments – Property,
plant and equipment
The parent entity had no capital
commitments for property, plant and
equipment at as 30 June 2015 and 30
June 2014.
Total assets
21,825,164
25,669,573
Significant accounting policies
Total current liabilities
1,183,857
4,121,220
Total liabilities
Equity
Issued capital
Share-based payments reserve
Accumulated losses
1,300,733
4,703,479
52,657,366
52,657,366
102,063
98,562
(32,234,998)
(31,789,834)
The accounting policies of the parent
entity are consistent with those of the
consolidated entity, as disclosed in note
2, except for the following:
Ǵ Investments in subsidiaries are
accounted for at cost, less any
impairment, in the parent entity.
Ǵ Investments in associates are accounted
for at cost, less any impairment, in the
parent entity.
Total equity
20,524,431 20,966,094
Ǵ Dividends received from subsidiaries
are recognised as other income by the
parent entity and its receipt may be
an indicator of an impairment of the
investment.
NOTE 32. INTERESTS IN SUBSIDIARIES
The consolidated financial statements incorporate the assets, liabilities and results of
the following subsidiary in accordance with the accounting policy described in note 2:
Name
Principal place of business/
Country of incorporation
2015
%
2014
%
3D Oil T49P Pty Ltd
Australia
100.00%
100.00%
Ownership interest
48
NOTE 33. EVENTS AFTER
THE REPORTING PERIOD
No matter or circumstance has arisen
since 30 June 2015 that has significantly
affected, or may significantly affect
the consolidated entity’s operations,
the results of those operations, or the
consolidated entity’s state of affairs in
future financial years.
NOTE 34. RECONCILIATION OF PROFIT/
(LOSS) AFTER INCOME TAX TO NET CASH
USED IN OPERATING ACTIVITIES
Profit/(loss) after income tax expense for the year
Adjustments for:
Depreciation and amortisation
Share-based payments
Foreign exchange differences
Exploration costs written off
Gain on disposal of assets
Reversal of provision for exploration remedial costs
Non-cash fees from operating joint venture
Change in operating assets and liabilities:
Decrease/(increase) in trade and other receivables
Decrease/(increase) in prepayments
Increase/(decrease) in trade and other payables
Increase in provision for income tax
Increase/(decrease) in other provisions
Net cash used in operating activities
NOTE 35. EARNINGS PER SHARE
Consolidated
2015
$
2014
$
2,314,986
(1,289,942)
38,999
14,901
(1,174,656)
–
(2,692,112)
(500,000)
(78,421)
33,703
39,450
5,714
81,216
–
–
–
(48,349)
156,370
23,850
(4,320)
(2,144,012)
647,841
41,266
–
37,513
(76,851)
(4,166,035)
(406,819)
Consolidated
2015
$
2014
$
Profit/(loss) after income tax attributable to the owners of 3D Oil Limited
2,314,986
(1,289,942)
Weighted average number of ordinary shares used in calculating basic earnings per share
237,523,000 237,523,000
Adjustments for calculation of diluted earnings per share:
Options
1,909,603
–
Number
Number
Weighted average number of ordinary shares used in calculating diluted earnings per share
239,432,603 237,523,000
Basic earnings per share
Diluted earnings per share
Cents
0.97
0.97
Cents
(0.54)
(0.54)
49
NOTE 36. SHARE-BASED PAYMENTS
Set out below are summaries of options granted under the plan:
2015
Grant date
Expiry date
02/06/2010
30/11/2014
24/01/2011
31/01/2015
07/10/2011
07/10/2015
15/12/2012
30/11/2015
02/09/2013
30/11/2016
06/12/2013
29/11/2016
23/07/2014
30/11/2017
Exercise
price
Balance at
the start of
the year
Granted
Exercised
$0.40
$0.40
$0.18
$0.16
$0.11
$0.12
$0.08
150,000
200,000
78,000
495,000
300,000
250,000
–
–
–
–
–
–
–
400,000
1,473,000
400,000
–
–
–
–
–
–
–
–
Expired/
forfeited/
other
(150,000)
(200,000)
–
–
–
–
–
Balance at
the end of
the year
–
–
78,000
495,000
300,000
250,000
400,000
(350,000)
1,523,000
Shares are awarded to executives from time to time based on long-term incentive
measures. These include the increase in shareholders value relative to the entire market
and the increase compared to the consolidated entity’s direct competitors.
2014
Grant date
Expiry date
27/08/2009
30/06/2014
02/06/2010
30/11/2014
24/01/2011
31/01/2015
07/10/2011
07/10/2015
15/12/2012
30/11/2015
02/09/2013
30/11/2016
06/12/2013
29/11/2016
Exercise
price
$0.25
$0.40
$0.40
$0.18
$0.16
$0.11
$0.12
Balance at
the start of
the year
64,000
150,000
200,000
78,000
595,000
Granted
Exercised
–
–
–
–
–
Expired/
forfeited/
other
(64,000)
–
–
–
Balance at
the end of
the year
–
150,000
200,000
78,000
(100,000)
495,000
–
–
300,000
250,000
(164,000)
1,473,000
–
–
–
–
–
–
–
–
–
–
300,000
250,000
1,087,000
550,000
For the options on issue during the previous and current financial year, the valuation
model inputs used to determine the fair value at the grant date, are as follows:
Grant date
Expiry date
27/08/2009
30/06/2014
27/08/2009
30/06/2014
02/06/2010
30/11/2014
02/06/2010
30/11/2014
02/06/2010
30/11/2014
24/01/2011
31/01/2015
07/10/2011
07/10/2015
15/12/2012
30/11/2015
02/09/2013
30/11/2016
06/12/2013
29/11/2016
23/07/2014
30/11/2017
Share price
at grant date
Exercise
price
Expected
volatility
Dividend
yield
Risk-free
interest rate
Fair value at
grant date
$0.19
$0.19
$0.19
$0.19
$0.19
$0.25
$0.14
$0.14
$0.09
$0.09
$0.06
$0.25
$0.25
$0.40
$0.40
$0.40
$0.40
$0.18
$0.16
$0.11
$0.12
0.80%
0.80%
0.80%
0.80%
0.80%
0.80%
1.00%
1.00%
1.00%
1.00%
$0.08
103.16%
-%
-%
-%
-%
-%
-%
-%
-%
-%
-%
-%
0.05%
0.05%
0.05%
0.05%
0.05%
0.05%
0.04%
0.04%
0.40%
0.40%
2.70%
$0.049
$0.440
$0.083
$0.076
$0.083
$0.931
$0.090
$0.045
$0.069
$0.075
$0.037
50
DIRECTORS’
DECLARATION
In the directors’ opinion:
Ǵ the attached financial statements and
notes comply with the Corporations
Act 2001, the Accounting Standards,
the Corporations Regulations 2001 and
other mandatory professional reporting
requirements;
Ǵ the attached financial statements
and notes comply with International
Financial Reporting Standards as
issued by the International Accounting
Standards Board as described in note 2
to the financial statements;
Ǵ the attached financial statements
and notes give a true and fair view
of the consolidated entity’s financial
position as at 30 June 2015 and of
its performance for the financial year
ended on that date; and
Ǵ there are reasonable grounds to believe
that the company will be able to pay its
debts as and when they become due
and payable.
The directors have been given the
declarations required by section 295A
of the Corporations Act 2001.
Signed in accordance with a resolution
of directors made pursuant to section
295(5)(a) of the Corporations Act 2001.
On behalf of the directors
Noel Newell
Managing Director
30 September 2015
Melbourne
51
The Rialto, Level 30
525 Collins St
Melbourne Victoria 3000
Correspondence to:
GPO Box 4736
Melbourne Victoria 3001
T +61 3 8320 2222
F +61 3 8320 2200
E info.vic@au.gt.com
W www.grantthornton.com.au
Independent Auditor’s Report
To the Members of 3D Oil Limited
Report on the financial report
We have audited the accompanying financial report of 3D Oil Limited (the “Company”),
which comprises the consolidated statement of financial position as at 30 June 2015, the
consolidated statement of profit or loss and other comprehensive income, consolidated
statement of changes in equity and consolidated statement of cash flows for the year then
ended, notes comprising a summary of significant accounting policies and other explanatory
information and the directors’ declaration of the consolidated entity comprising the
Company and the entities it controlled at the year’s end or from time to time during the
financial year.
Directors’ responsibility for the financial report
The Directors of the Company are responsible for the preparation of the financial report
that gives a true and fair view in accordance with Australian Accounting Standards and the
Corporations Act 2001. The Directors’ responsibility also includes such internal control as
the Directors determine is necessary to enable the preparation of the financial report that
gives a true and fair view and is free from material misstatement, whether due to fraud or
error. The Directors also state, in the notes to the financial report, in accordance with
Accounting Standard AASB 101 Presentation of Financial Statements, the financial
statements comply with International Financial Reporting Standards.
Auditor’s responsibility
Our responsibility is to express an opinion on the financial report based on our audit. We
conducted our audit in accordance with Australian Auditing Standards. Those standards
require us to comply with relevant ethical requirements relating to audit engagements and
plan and perform the audit to obtain reasonable assurance whether the financial report is
free from material misstatement.
Grant Thornton Audit Pty Ltd ACN 130 913 594
a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the
context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm
is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and
are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its
Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited.
Liability limited by a scheme approved under Professional Standards Legislation. Liability is limited in those States where a current
scheme applies.
54
52
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial report. The procedures selected depend on the auditor’s
judgement, including the assessment of the risks of material misstatement of the financial
report, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the
Company’s preparation of the financial report that gives a true and fair view in order to
design audit procedures that are appropriate in the circumstances, but not for the purpose
of expressing an opinion on the effectiveness of the Company’s internal control. An audit
also includes evaluating the appropriateness of accounting policies used and the
reasonableness of accounting estimates made by the Directors, as well as evaluating the
overall presentation of the financial report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our audit opinion.
Independence
In conducting our audit, we have complied with the independence requirements of the
Corporations Act 2001.
Auditor’s opinion
In our opinion:
a
b
the financial report of 3D Oil Limited is in accordance with the Corporations Act
2001, including:
i
ii
giving a true and fair view of the consolidated entity’s financial position as at 30
June 2015 and of its performance for the year ended on that date; and
complying with Australian Accounting Standards and the Corporations
Regulations 2001; and
the financial report also complies with International Financial Reporting Standards as
disclosed in the notes to the financial statements.
Report on the remuneration report
We have audited the remuneration report included in pages 16 to 22 of the directors’ report
for the year ended 30 June 2015. The Directors of the Company are responsible for the
preparation and presentation of the remuneration report in accordance with section 300A of
the Corporations Act 2001. Our responsibility is to express an opinion on the remuneration
report, based on our audit conducted in accordance with Australian Auditing Standards.
17 to 22
55
53
Auditor’s opinion on the remuneration report
In our opinion, the remuneration report of 3D Oil Limited for the year ended 30 June 2015,
complies with section 300A of the Corporations Act 2001.
GRANT THORNTON AUDIT PTY LTD
Chartered Accountants
B. A. Mackenzie
Partner - Audit & Assurance
Melbourne, 30 September 2015
56
54
SHAREHOLDER
INFORMATION
30 June 2015
The shareholder information set out below was applicable as at 28 September 2015.
Distribution of equitable securities
Analysis of number of equitable security holders by size of holding:
1 to 1,000
1,001 to 5,000
5,001 to 10,000
10,001 to 100,000
100,001 and over
Holding less than a marketable parcel
Equity security holders
Twenty largest quoted equity security holders
Number of holders
of ordinary shares
34
131
141
432
214
952
235
The names of the twenty largest security holders of quoted equity securities are listed below:
Ordinary shares
Noel Newell (Newell Family A/C)
Oceania Hibiscus SDN BHD
H Louey Pang & Co Pty Ltd (Demaria Family A/C)
Citicorp Nominees Pty Limited
Fugro Exploration Pty Ltd
Bill Hopper
Sanlirra Pty Ltd (Sanlirra S/F A/C)
Pand JR Pty Ltd (John Demaria Family A/C)
J K Demaria Pty Ltd
RHB Securities Pte Ltd (Clients A/C)
Pengold Pty Ltd (Pengold Super Fund A/C)
Vobe Resources Pty Ltd (Superannuation A/C)
Andrew Paterson
Noel Mainwaring
Mr Giovanni Monteleone + Mrs Frances Monteleone
Vin Naidu + Wendy Naidu
Mr Joseph Hannah
Mr Russell Barwick
Eilie Sunshine Pty Ltd (Eilie Sunshine Superfund A/C)
Mr John Mcnamara and Miss Suzanne Maree Bond
Number held
36,661,450
30,963,000
8,550,000
7,799,787
7,511,000
6,475,000
5,307,763
4,865,201
4,366,576
4,320,178
3,714,000
3,694,099
3,237,500
3,050,000
3,050,000
2,837,500
2,643,200
2,500,000
2,500,000
2,398,931
% of total
shares issued
15.43
13.04
3.60
3.28
3.16
2.73
2.23
2.05
1.84
1.82
1.56
1.56
1.36
1.28
1.28
1.19
1.11
1.05
1.05
1.01
146,445,185
61.66
55
Number
on issue
1,623,000
Number
of holders
7
Ordinary shares
Number held
% of total
shares issued
36,661,450
30,963,000
15.43
13.04
SHAREHOLDER
INFORMATION
30 June 2015
Unquoted equity securities
Options over ordinary shares issued
Unquoted equity securities
Substantial holders in the company are set out below:
Noel Newell (Newell Family A/C)
Oceania Hibiscus SDN BHD
Voting rights
The voting rights attached to ordinary
shares are set out below:
Ordinary shares
On a show of hands every member
present at a meeting in person or by
proxy shall have one vote and upon a
poll each share shall have one vote.
There are no other classes of
equity securities.
56
SEA LION
DRILLING TO
COMMENCE
SHORTLY
CORPORATE
DIRECTORY
Directors
Campbell Horsfall
(Non-Executive Chairman)
Noel Newell
(Managing Director)
Melanie Leydin
(Non-Executive Director)
Leo De Maria
(Non-Executive Director)
Company secretary
Melanie Leydin
Registered offi ce
Level 5, 164 Flinders Lane
Melbourne, VIC 3000
Telephone: (03) 9650 9866
Principal place of business
Level 5, 164 Flinders Lane
Melbourne, VIC 3000
Share register
Computershare Investor
Services Pty Limited
452 Johnston Street
Abbotsford Victoria 3067
Telephone: (03) 9415 5000
Auditor
Grant Thornton Audit Pty Ltd
Chartered Accountants
The Rialto, Level 30, 525 Collins Street
Melbourne Victoria 3000
Solicitors
Baker & McKenzie
Level 19, 181 William Street
Melbourne
Victoria 3000
Stock exchange listing
3D Oil Limited shares are listed on
the Australian Securities Exchange
(ASX code: TDO)
Website
www.3doil.com.au
57
Adjust spine accordingly
ANNUAL
REPORT
2015