AnnuAl
RepoRt
2019
tARgetted
exploRAtion
thRough stAte
of the ARt
imAging.
exploRe
3D Oil has built a portfolio of
high potential, frontier offshore
exploration permits in Australia
including offshore Western
Australia (Bedout Sub-basin) and
offshore Tasmania (Otway Basin)
The 100%-owned WA-527-P permit
covers a large underexplored
area that is situated next to the
significant Dorado-1 hydrocarbon
discovery in the Bedout Sub-basin
The 100%-owned T/49-P permit
is a large frontier permit in the
offshore Otway Basin, containing
1 prospect and 5 leads for a total
prospective gas resource of 10TCF
(Best Estimate)
Recently awarded in the 2018
Offshore Exploration Release,
VIC-P74 (50%) will utilise state
of art reprocessing to evaluate a
proven area located proximal to the
largest oil discovery in Australia.
"Perfectly positioned to take
advantage of strong east
coast gas demand."
2
Review of operations
Directors' report
Auditor's independence declaration
Statement of profit or loss and
other comprehensive income
Statement of financial position
Statement of changes in equity
Statement of cash flows
Notes to the financial statements
Directors' declaration
Independent auditor's report to the
members of 3D Oil Limited
Shareholder information
Corporate directory
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3
letteR
fRom the
executive
chAiRmAn
4
3D Oil is now one of the last small cap
companies exploring in the offshore of
Australia. While there are still some small
companies on title in the offshore, very few
are exploring and recently there has been a
dramatic increase in licenses being revoked
by the Federal Government due to work
programs not being completed.
3D Oil provides an opportunity for
shareholders to share in exposure to
the potential wealth creation that is the
prize in successful offshore hydrocarbon
exploration, nonetheless patience is
required to reap the benefits.
The appraisal and subsequent sale of
the West Seahorse oil field in 2010
demonstrated 3D Oil’s ability to add value
to an asset and convert it to tangible
income. Since this transaction, 3D Oil has
successfully executed the initial stages
of a new strategy involving acquisition of
high impact exploration acreage, addition
of value through high quality technical
work and ultimately farming out to major
Exploration & Production companies who
can carry the projects forward.
3D Oil has demonstrated success in this
strategy by the acquisition of T/49P (Otway
Basin), WA-527P (Bedout Sub-basin) and
the recent VIC/P74 (Gippsland Basin), all
currently held at 100%. All three blocks
have the potential to contain world class
assets. It is difficult to think of another
small company in Australia with such
potentially transformative portfolio.
But, as a small fish in the offshore you have
to be nimble and think ahead of the pack.
You can’t be a follower; you need to
be there first. As I said last year ‘you
have to be a risk taker, you have to be
opportunistic, you have to be counter
cyclical, you have to have some luck,’ but
most importantly you have to be patient.
Patience is of fundamental importance for
the next stage of this strategy which will
involve attraction of major E&P companies
that will convert this exploration portfolio
into potential large rewards for 3D Oil and
its shareholders. Patience is necessary for
this phase because to attract a major, it is
necessary to work to their timetable which
can be lengthy. Outsiders to our industry
would find it incredible how long a process
for a major to undertake a new project and
ultimately the opportunity needs to stack
in a global seriatim.
Since acquiring T/49P we have been
engaged with a number of major
companies, some of which we have worked
with for longer than 12 months. 3D Oil has
developed new ideas with respect to the
prospectivity of the southern Otway Basin.
These ideas are new and exciting; however,
Major companies need to first digest our
new ideas prior to undertaking their own
exhaustive technical studies before finally
taking their recommendations back to their
overseas head offices. As I said last year
‘Our team have created a world class story
with exceptionally good technical work. In
my view compelling.’
The time-line has increased as a result of
the investment climate in the energy sector
in Australia which remains under a cloud.
Clear Federal energy policy is necessary
to undertake long term investment and
offshore regulatory policy is becoming
increasingly challenging.
A significant achievement for 3D Oil in
2019, providing significant incentive for
potential farminees, is the acceptance of
our Environmental Plan (EP) by NOPSEMA
for our Dorrigo 3D seismic acquisition.
I cannot overstate how important and
difficult this was to achieve. We are seeing
some companies taking a number of years
to obtain a valid EP, with sometimes two or
three submissions. 3D Oil achieved success
on first submission with a 2000+ page
document and over 200 stakeholders to
engage! No minor achievement for a small
company. This is certainly a feather in our
cap, and has been well received by the
industry.
Our acquisition of the WA-527P permit
prior to the Dorado discovery continues to
appear a stunning counter cyclical move. It
is rumored the gazettal block on the west
side of the Santos/Carnarvon acreage
received approximately 10 bids this year
involving wells promised in the primary
term. We also note Santos have now
acquired the permit north of WA-527P. At
the time of writing this the Dorado-3 well
was completed, confirming hydrocarbons
and pressure communication within the
Caley, Baxter and Crespin reservoirs. The
well will be flow tested shortly, which the
industry is keenly anticipating. Dorado
is arguably the largest oil find in Australia
in over 30 years and has certainly
re-invigorated the industry.
3D Oil is in an enviable position and
considering the best options going
forward. We have undertaken our EP for
the Sauropod 3D seismic program, to be
conducted in WA-527P, and it has been
made public for comment. We will be
submitting the application to NOPSEMA in
the coming weeks. 3D Oil’s primary work
bid was only 510 km2 – somewhat less than
multiple wells bid for the adjacent acreage
during the recent gazettal round.
The acquisition of WA-527P prior to the
drilling of Dorado was no accident or a
stroke of luck but rather a thorough piece
of technical work underlying the bid
following a very deliberate and aggressive
strategy to be opportunistic front runners.
and aggressive strategy yet again. The
permit is adjacent to the largest oil field
discovered in Australia, Kingfish, with over
one billion barrels produced to date. There
is obviously an extremely rich petroleum
system operating in the southern Gippsland
Basin. Nonetheless success has alluded
previous explorers in the VIC/P74 region.
The rationale for the acquisition of
VIC/P74 is based on the likely significant
enhancement of the 3D seismic in the
basin as a result of reprocessing being
undertaken by service company CGG.
Exploration of this region has been
previously hampered by severe depth
conversion issues related to velocity
complexities in the shallow section above
the reservoir target. Recent advances in
reprocessing techniques have made
significant improvements in relation to
this technical issue as evidenced in 3D Oil’s
other Gippsland permit VIC/P57. 3D Oil
interpret that the permit may have the
potential for significant hydrocarbon
accumulations as evidenced by the
neighbouring Kingfish Field. The permit
also contains the Omeo gas and
condensate discovery. We note that
Cooper Energy were recently awarded
the block directly to the north on the
basis of the same rationale.
We have an exciting year ahead at 3D Oil
with the acquisition of the Dorrigo and
Sauropod 3D seismic surveys in the Otway
Basin and Bedout Sub-basin respectively.
Following on, we believe we will have high
impact drilling locations in both areas.
While we don’t have the funding in place
presently, I am quietly confident that 3D Oil
will have, so much so that we have our EPs
in train.
The team at 3D Oil have our sights set high
– we are not looking for slow organic growth
but transformational transactions. 3D Oil
has survived through tough times which
means that we can keep participating in
these high risk, but high value, projects for
the long haul, therefore maximizing the
potential return to shareholders.
On behalf of the Company, I thank the
Board, our board advisor Peter Willcox, and
the 3D Oil team for their endeavors and
commitment over the last year. They are
an integral part of realizing our ambition
of becoming an Australian oil and gas
producer.
The recent acquisition of VIC/P74 once
again demonstrates that deliberate
Noel Newell
Managing Director
5
Review of
opeRAtions
6
FIGURE 1
WA-527-P
349 MMbbls*
BEDOUT SUB-BASIN
OTWAY BASIN
OPERATIONS MAP
VIC/P57
367.2 BCF*
31 MMbbls*
GIPPSLAND BASIN
T/49P
10.03 TCF*
110.85 MMbbls*
*Best Estimate Total Recoverable Prospective Resource
Figure 1 – Operations map
WA/527-P, BEDOUT SUB-BASIN, OFFSHORE NORTHWEST SHELF
drilling, which began with the drilling of
Doardo-2. Revised contingent resource
estimates indicate an upgrade in the C2
resource estimate from 283 to 344 MMboe
(refer CVN Announcement, 15 JUL 2019).
Exploration permit WA/527-P is a large
permit covering approximately 6,500km2
in the Bedout Sub-basin of the Northwest
Shelf, approximately 80km north-east
of the recent Dorado-1 oil discovery
(Carnarvon Petroleum 20%, Santos 80%).
TDO has identified at least fifteen leads
across the permit, and a Triassic erosional
channel system, analogous to that which
set-up the Dorado oil discovery.
The Bedout Sub-basin is an element of the
Roebuck Basin located along the prolific
Northwest Shelf of Australia. A recent
exploration campaign which was previously
led by privately owned Quadrant Energy
has resulted in the discovery and appraisal
of a prolific, new petroleum system located
in permits adjacent to 3D Oil’s 100%-owned
WA/527-P.
The exploration history began with the
drilling of the Phoenix South and Roc wells
between 2014 and 2018. Phoenix South-1
discovered a series of light oil zones, while
the Roc and other Phoenix South wells all
discovered gas-condensate within sands
of the Triassic, Caley reservoir. The most
significant discovery was made in July 2018,
when Dorado-1 discovered 162 MMbbls of
liquids and 748 Bcf of gas within multiple
reservoir zones of the Lower Triassic.
In August of 2018 Santos acquired 100% of
Quadrant Energy for an initial $2.15 Billion
USD (refer STO Announcement, 22 AUG
2018). Since this time, the Santos led Joint
Venture has proceeded with an aggressive
exploration and appraisal campaign in the
area surrounding Dorado. The most notable
news has been the Dorado appraisal
“ A recent exploration
program… has resulted in
the discovery and
appraisal of a prolific,
new petroleum system
located adjacent to 3D Oil’s
100%-owned WA-527-P"
Figure 2 – WA/527-P Location
7
FIGURE 2
Activities
During the year 3D Oil completed
reprocessing of seven open-file 2D seismic
lines. Analysis of these data, combined with
licenced multi-client data has confirmed
the existence of an erosional channel
system within the south-western quadrant
of the acreage. The channel system could
provide an analogous trapping mechanism
to the Dorado discovery. This intelligence
has allowed 3D Oil to determine the best
possible location for its upcoming seismic
commitment, now named the Sauropod
3D Marine Seismic Survey.
FIGURE 3
3D Oil has completed and submitted
an Environment Plan for the Sauropod
3D MSS. The Sauropod 3D program will
allow for acquisition for up to 3,500 km2
of 3D seismic data that will have multiple
exploration objectives, including:
– Evaluation of any targets potentially
set-up by the recently discovered Triassic
erosional channel system,
– Provision of further insight to the
Salamader, Jaubert and Whaleback
Leads, and,
– Investigation of the potential Palaeozoic
play interpreted to be operating in the
eastern side of the acreage.
Full Fold Acquisition Area:
3447km2.
“ Multi-client data has
confirmed the existence of
an erosional channel system
within the south-western
quadrant of the acreage.
The channel system could
provide an analogous
trapping mechanism to the
Dorado discovery”
Figure 3 – WA/527-P Location, recent oil & gas
discoveries and the Basin Margin
Throughout the year 3D Oil hosted
a number of data rooms for multiple
interested Exploration & Production
Companies, and will continue to do so
throughout the next financial year.
1
8
Figure 4 – Proposed Location of Sauropod 3D
Full-Fold Acquisition Area
FIGURE 4
A
A’
Edge of Erosional Channel
Bland Section/Shale fill
JN87_18A Legacy Data
JN87_18A 2019 Time Scaled PSDM Repro
Lower Triassic sands
Figure 5 – Example of reprocessing and
interpretation of an erosional channel within
WA/527-P, shown with a comparison to Dorado
(bottom image)
A’
A
pRospectivity
The leads within WA/527-P include a series
of prospective features along the western
side of the acreage which may host Triassic
sands, similar to those encountered at
Dorado. However, 3D Oil has also identified
multiple targets within the shallower
Jurassic section and a series of possible
carbonate build-up targets within the
deeper Palaeozoic. These features are
interpreted to receive hydrocarbon from up
to two oil-prone source rocks.
Triassic Erosional Channel
System
The Dorado oil discovery demonstrated
that stratigraphic traps sealed by shale-
filled erosional channels can form highly
effective closures. 3D Oil has identified an
analogous erosional channel system within
the Lower Triassic section of WA/527-P.
This system has been mapped using a
combination of reprocessed open-file 2D
seismic data and licenced multi-client data.
The feature, oriented sub-parallel to the
western boundary of the permit, will be a
target of the upcoming Sauropod 3D MSS,
which will assist with determining whether
any traps, analogous to the Dorado
discovery are present within WA/527-P.
Mesozoic Leads
A series of inversion and fault-bound
targets within both the Triassic and Jurassic
sections have been identified along the
western side of WA/527-P. The largest of
these include Whaleback and Salamader,
with a Best Estimate Prospective Resource
of 86 MMbbls and 190 MMbbls respectively.
Palaeozoic Leads
3D Oil has identified the presence of at
least six reef-like features that could form
viable oil targets. These features range
in size from 3-30km2. These are mostly
identifiable within the eastern side of the
acreage, within what is interpreted to
be a section of an extensive Palaeozoic
Barrier Reef System. This system is proven
as an effective petroleum system by the
Blina and Ungani oil fields in the onshore
Canning Basin. The system was also the
objective of a recent 3D seismic acquisition
program led by Santos in the Bonaparte
Basin, which targeted the Beehive reef
feature of Carboniferous age. So far, results
of the Beehive seismic survey indicate a
feature consistent with a carbonate build-
up, capable of a Best Estimate Prospective
Resource of 388 MMbbls (Refer MAY ASX
Announcement, 14 JUN 2019).
3D Oil’s proposed play concept for the
Palaeozoic involves thermally mature
source rocks of Devonian and/or Early
Carboniferous age. Such source rocks are
proven in the onshore Canning Basin where
they have contributed strongly paraffinic,
light oil to successful oil fields such as Blina
and Ungani. These source rocks are likely
to be mature for oil expulsion within the
WA/527-P acreage and if so, may provide
hydrocarbon to Palaeozoic targets as well
as to shallower Mesozoic targets.
Table 1: WA/527-P Prospective Resource Estimate (MMbbls)
Recoverable Oil (ASX ann. 26/2/18)
Prospect
Salamander
Jaubert
Whaleback
WA/527-P Arithmetic Total
Status
Low
Lead
Lead
Lead
57
17
16
90
Best
191
72
87
High
713
205
219
350
1,137
9
10
Figure 6 – Otway Basin, Fields and
Infrastructure Location
“ The T/49-P permit is
optimally placed to
contribute much needed
gas to this market in
coming years”
“ Another potential target
for 3D seismic acquisition is
the Seal Rocks lead, with a
Best Estimate Prospective
Resource of over 4TCF.
seismic program is the Harbinger Lead,
supported by a Type III AVO anomaly
indicative of gas. Independent analysis has
estimated that Harbinger contains 790
BCF of Prospective Resources; however,
this analysis was constrained by broadly
spaced, decade old 2D seismic data. The
upcoming 3D seismic acquisition may allow
3D Oil to more definitively understand the
size of the prospective gas resource and
allow for accurate drill planning.
Another potential target for 3D seismic
acquisition is the Seal Rocks lead, with a
Best Estimate Prospective Resource of
over 4 TCF. Seal Rocks is also constrained
by widely spaced grid of 2D seismic and
requires modern 3D data to asses more
accurately.
11
T49/P, OTWAY BASIN, OFFSHORE VICTORIA
T/49P exploration permit is located in the
Tasmanian part of the offshore Otway
Basin, just West of King Island. 3D Oil
was awarded the permit in May 2013
and currently hold a 100 % interest in
this permit.
The Otway Basin is a northwest trending
rift basin. It is approximately 500km long
and extends along the southern margin of
South Australia and Victoria to north-west
Tasmania, covering an area of 150,000km2.
The basin has been an important supplier
of gas to the east coast of Australia since
the 1980s. The T/49-P permit is optimally
placed to contribute much needed additional
gas to this market in coming years.
The first commercial gas discoveries in the
offshore Otway were in Victorian waters,
in the early 1990s proving the existence
of what would become recognised as a
prolific gas province that is now known to
extend throughout much of the Victorian
Otway Basin and likely within 3D Oil’s
T/49-P exploration acreage. The permit
is located directly to the southeast of the
basin’s largest offshore gas field, Thylacine,
discovered in 2001. Thylacine and the
nearby Geographe gas field have been
producing since 2007 from infrastructure
that is located close to the northern
boundary of the T/49P permit and the
Flanagan Prospect. The offshore Otway
also supports two other gas production
projects at Casino and Minerva, both in
Victorian waters.
The T/49-P permit contains a number of
structures prospective for gas within an
area of 4,960 km2 and in water depths
generally no greater than 100m. The
north of the permit is covered by 974 km2
of modern 3D seismic, while the area to
the south remains lightly explored and
covered by a broad grid of 2D seismic
data of varying vintages. Only two early
exploration wells have been drilled in
the permit (in 1967 and 1970) on historic,
widely spaced 2D seismic. In subsequent
years the region was largely overlooked by
the industry despite the proximity of the
Thylacine and Geographe gas fields.
The T/49P work-program is currently
in Permit Year 5, having completed the
primary work-program (Years 1-3)
including the acquisition, processing
and interpretation of the Flanagan 3D
seismic survey.
Subsequent to the award of the work
program variation at the end of 2017,
3DOil began planning the acquisition of
the Dorrigo 3D MSS. This included highly
detailed planning, determination of optimal
acquisition parameters, determination of
the most efficient acquisition area, and
the commencement of the Environmental
Plan for the activity. The minimum work
commitment for the survey is 750km2,
however, 3D Oil is planning for the
acquisition of 1580km2 which would far
exceed its obligation. The survey has been
carefully designed to capture all remaining
leads located to the south of Flanagan.
One of the key leads to be targeted by the
FIGURE 6
A
AVO Attribute - 2019 Reprocessing
Figure 7 – Seal Rocks Reprocessing and revised
Depth Structure
A’
Top Porosity (Depth
mSS)
Activities
3D Oil continues to plan for 3D seismic
acquisition in 100% owned exploration permit
T/49-P. The survey is intended to cover the
central and southern part of the acreage. The
project will target a series of significant leads
across the central and southern portion of
T/49P with the intention of maturing several
of these to prospect status. 3D Oil intends to
combine insight gleaned from the new data
with that from existing seismic, to determine
the location of the exploration well planned
for 2020, subject to securing a suitable
exploration partner.
After finalising the technical part of the
Environment Plan, the Company focused on
finalising its consultation with community
stakeholders as per government regulatory
requirements. 3D Oil is strongly committed
to an open and thorough consultation
process and as such, this process has been
on-going since March 2018.
Delays during the Environment Planning
process forced the Company to apply to
the National Offshore Petroleum Titles
Administrator (NOPTA) for a Suspension
& Extension (S&E) in November 2018 as it
become clear that the Environment Plan
would not be approved before the end
of the Permit Year. An S&E was approved
on the 20th of January 2019 and Permit
Year 6 will now extend to the 21st of
February 2020. The Environmental Plan
was submitted to NOPSEMA on the 30th
of January with an acquisition period for
Dorrigo 3D, re-scheduled for Q3 2019,
pending vessel availability.
After receiving only one request for
further information in April 2019, the
Dorrigo 3D EP was approved by NOPSEMA
on the 13th of May 2019. This approval
demonstrates the Company’s capacity
to successfully navigate increasingly
challenging regulatory conditions.
Subsequently, 3DOil has started a formal
tendering process with seismic vessel
contractors in order to source a seismic
vessel for an acquisition kick-off in
September 2019.
In parallel, 3D Oil has continued its technical
work in order to further de-risk the permit.
A seismic reprocessing program of open-file
2D data over Seal Rocks was completed.
Interpretation of the new data indicates
the presence of amplitude anomalies that
seems to fit a series of tilted fault-blocks.
AVO analysis result are encouraging but
confirm the need for modern 3D seismic
data in order to be properly analysed for
hydrocarbon significance.
Table 2: T/49P Prospective Resource Estimate (TCF)
Recoverable Gas (ASX ann. 27–Jul-17)
Location
Flanagan
Munro (T/49P Part)
Whistler Point
British Admiral
Seal Rocks
Harbinger
Status
Prospect
Lead
Lead
Lead
Lead
Lead
Low
0.53
0.04
0.82
0.37
0.95
0.33
Best
1.34
0.19
2.04
1.03
4.64
0.79
High
2.74
0.57
8.95
4.45
10.64
1.43
T/49P Arithmetic Total
3.04
10.03
28.78
The estimated quantities of petroleum that may potentially be recovered by the application of a future
development project(s) relate to undiscovered accumulations. These estimates have both an associated
risk of discovery and a risk of development. Further exploration appraisal and evaluation is required to
determine the existence of a significant quantity of potentially moveable hydrocarbons
12
FIGURE 7
CGG 3D REGENERATION REPROCESSING OF
NORTHERN FIELDS 3D
KANGAFISH
LUCIFER
VIC/P57
FLINDERS
SALSA
DEXTER
POINTER
FELIX
15km
Figure 8 – VIC/P57 Location (blue polygon)
with Gippsland ReGeneration Reprocessing data
(red polygon)
VIC/P57, GIPPSLAND BASIN OFFSHORE VICTORIA
Exploration Permit VIC/P57 is located in the
northwest part of the offshore Gippsland
Basin. The permit is approximately 246km2
in size and located in shallow waters
close to shore and proximal to existing
infrastructure.
3D Oil holds a 24.9% interest in the VIC/
P57. By arrangement with permit operator
Carnarvon Hibiscus Pty Ltd (CHPL), 3D Oil
Limited continues to carry out subsurface
technical work for the permit on behalf
of the Joint Venture. The Joint Venture is
excited about the potential for this permit
to supply additional gas to the domestic
market.
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 prolific oil and gas producing basin.
Twenty-one oil and gas fields are on
production with most of the hydrocarbons
hosted by the world-class sandstones of
the Latrobe Group.
However, Gippsland Basin production is
in decline and major operators such as
ExxonMobil are working hard to identify
commercially viable prospects to sustain
production from Gippsland facilities. The
basin has an important role to play in future
gas supply to the east coast gas market,
with the Exxon-BHP Joint Venture recently
reaching FID on the West Barracouta gas
field. ExxonMobil also recently invested
$4.5billion in the Kipper Tuna Turrum
offshore project, as well as $1billion on the
Longford Gas Conditioning Plant.
Current market demands and a strong
appetite for gas makes this an ideal time
for small explorers such as 3D Oil to bring
new drill-ready prospects to market.
This is confirmed by the development of
previously marginal gas fields, such as the
Sole Field. The exploration of new plays
and prospects will play an important part
in meeting the predicted supply shortfall,
as evidenced by the commencement of an
offshore gas exploration drilling program
by ExxonMobil in deep water during 2018.
The deep water well Sculpin 1 will spud in
the second half of this year.
Much of the historical success in the basin
was achieved by the interpretation of
2D seismic data. The dominant acreage
position of the Esso-BHP 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.
VIC/P57 is covered by the Northern Fields
3D seismic, which was recently reprocessed
using state-of-the-art techniques as part
of the 2018 CGG Gippsland ReGeneration
Reprocessing Project. This has delivered
significant improvements in imaging of the
sub-surface and has helped mitigate issues
created by anomalous shallow seismic
velocities. Broader bandwidth, less noise, a
significantly improved velocity model and
more sophisticated migration algorithms
have resulted in a dramatic improvement in
imaging compared with previous attempts.
The data provides those exploring in the
Gippsland Basin with a reliable means to
identify and exploit previously un-detected
near-field opportunities within the Upper
Latrobe Group such as Felix and Pointer,
and importantly, mature the deeper gas
fairway within the Emperor and Golden
Beach Sub-groups, which is generally not
well imaged on legacy datasets.
At 3D Oil, we believe we can help address
the coming gas supply shortfall through the
farm-out of quality exploration prospects
such as Pointer and Dexter.
Activities
The Joint Venture successfully renewed
VIC/P57 for a further 5 years in March 2018.
The primary term of the renewal period, the
first three years, was designed to de-risk
and high grade the prospect inventory
and ultimately progress prospects to
‘drill-ready’ status, while also providing
an opportunity to identify previously
undetected gas targets.
The Joint Venture has purchased a 564km2
sub-set of the CGG state-of-the-art
reprocessing covering VIC/P57 and relevant
nearby oil & gas fields. This dataset was
received in July 2018 and includes offset
stacks, gathers and a velocity model.
The reprocessing covers existing data
gaps at the northern end of Pointer from
previous 2011 reprocessing and has yielded
significant improvement in imaging within
the Seahorse Syncline, permitting higher
confidence mapping of the Golden Beach,
Emperor and Strzelecki groups.
Year 1 activities have fulfilled the primary
term work commitments and have
high-graded several drill-targets to
prospect status, including Felix and Pointer.
High-resolution interpretation of the latest
reprocessing, including fault and horizon
13
FIGURE 8
DEXTER
Top Lakes Entrance
FELIX
Top Latrobe
MMd
ULb
LLB
Golden Beach
Top Emperor
Top Strz
Image courtesy of CGG Multi-Client & New Ventures
Figure 9 - Arbitrary seismic line through
Dexter and Felix structures (Image courtesy
of CGG Multiclient & New Ventures)
mapping and depth conversion, has been
completed and has reduced the uncertainty
on trapping mechanisms and closures.
A detailed velocity model has mitigated
velocity anomalies over the area caused
by channelling in the shallow overburden,
leading to the refinement of the leads
and prospects portfolio to Felix, Dexter
and Pointer.
The Joint Venture has completed a variety
of Geological and Geophysical studies,
including Petrophysics, Rock Physics and
Stochastic Modelling studies, to understand
a significant seismic amplitude anomaly
at the Pointer Prospect. Rock physics and
AVO forward modelling studies utilise rock
physics inputs from wells from surrounding
fields to constrain the seal and reservoir
lithologies and determine the types of
amplitude responses that can be expected
for a range of fluid scenarios. This work
has reduced the uncertainty surrounding
hydrocarbon presence at Pointer Prospect.
The technical program has now been
completed and a farm-out campaign has
been initiated. A data room has been
prepared and companies will be hosted
over the second half of 2019. Throughout
the reporting period the Joint Venture has
already entertained preliminary discussions
with major Exploration & Production
companies which have expressed strong
interest in Pointer. The Joint Venture is also
currently in the process of completing a
prospective resource update for VIC/P57.
14
pRospectivity
Felix Prospect
Felix Prospect is an inversion anticline
(Figure 9) favourably situated between
the Moonfish and Wirrah discoveries along
the Seahorse Fault. Migration modelling
suggests that the structure is highly
likely to have access to charge from the
same kitchen as the existing discoveries.
The reservoir-seal configuration is well
constrained by these wells and excellent
reservoir seal pairs are anticipated across
the L.balmei zone at Felix.
Seismic mapping and depth conversion
using the new reprocessed 3D seismic has
confirmed Felix Prospect to be a low-
risk exploration target. Imaging is now
significantly clearer with an exceptional
increase in the level of observable detail.
3D Oil believes that it is now possible to
understand the trapping mechanism at
Felix with far greater accuracy.
The improved velocity model has helped
to de-risk the presence of closure in the
depth domain across the L.balmei zone
and will assist with the selection of a
suitable drilling location. Improved depth
conversion has also reduced uncertainty
surrounding the range of prospective
resources within L.balmei reservoirs.
Revised volumes will be communicated
in the near future. Based on rock physics
modelling, the seismic response at Felix
is consistent with the seismic response
observed in local fields at similar depths.
Pointer Prospect
The Pointer Prospect is a combination
structural-stratigraphic gas prospect within
the Upper L.balmei reservoir. The prospect
shows a clear rising amplitude with offset
response, a Class III AVO (Figure 10).
Improved imaging has permitted high-
resolution mapping of the fault architecture
(Figure 11) and has reduced uncertainty on
the trapping mechanism, highlighting a
conformance of amplitude with structure.
This has important implications for
potential hydrocarbon presence.
Rock physics and stochastic modelling
studies provided important necessary
constraints and local calibrations to
understand the cause of the AVO amplitude
anomaly at Pointer. The gathers and angle
stack dataset necessary for quantitative
geophysical methods were received in
December 2018. Subsequent rock physics
and AVO modelling has eliminated a
variety of seal/reservoir lithology and fluid
scenarios. Based on our understanding of
lithological variation between offset wells
and the anticipated lithologies at Pointer,
AVO forward modelling has shown a strong
positive hydrocarbon response, with gas
being the anticipated hydrocarbon phase.
A clear AVO anomaly has solidified Pointer
as a strong candidate to contribute much
needed gas to the East Australian market.
FIGURE 9
NEAR STACK
FAR STACK
NE
SW
Figure 10 – Pointer Prospect Amplitude Anomaly
(image courtesy of CGG Multiclient & New
Ventures)
“ A clear AVO has solidified Pointer as a strong
candidate to contribute much needed gas to
the east Australian market”
FIGURE 10
VIC/P57
Figure 11 – Pointer Prospect Amplitude Anomaly
(Full Stack)
15
FIGURE 11
Legacy Northern Fields 3D
2019 CGG Reprocessing
Figure 12 – Comparison of imaging quality
between legacy data (left) and the 2018 CGG
reprocessing (right) (mage courtesy of CGG
Multiclient & New Ventures).
Table 3: Total VIC/P57 Prospective Resources Estimate (MMbbls)
Recoverable Oil (ASX ann. 27/7/17)
Location
Felix
Salsa
VIC/P57 Total
Status
Prospect
Lead
Low
6.8
10.7
17.5
Best
15.9
15.1
High
26.9
20.6
31.0
47.5
Table 4: Total VIC/P57 Prospective Resource Estimate (BCF)
Recoverable Gas (ASX ann. 27/7/17)
Location
Pointer
Dexter
Status
Prospect
Lead
Low
140.1
37.0
Best
235.3
132.0
High
364.9
259.1
VIC/P57 Total
177.1
367.3
624.0
Deeper Gas Potential
The Emperor Sub-group play presents
an additional prospective gas fairway
within VIC/P57, proven by the along-trend
Longtom and Judith gas discoveries.
Seismic reprocessing has provided
a significant uplift on image quality,
permitting higher confidence mapping of
the top Emperor Sub-Group. As a result,
subsequent mapping and depth conversion
has supported a trapping configuration at
Dexter Lead. Figure 12 shows the previous
vintage of seismic data (left) where the
section was barely visible, compared with
the CGG Gippsland Regeneration dataset
(right), which shows clearly visible tilted
fault blocks and involved bedding.
Dexter Lead is a three-way fault-dependent
closure at Middle M.diversus and Top
Emperor Sub-Group, where it relies on
cross-fault seal with the Strzelecki Group.
The structure is now considered an
important lead that offers additional upside
potential for the permit.
16
FIGURE 12
Figure 13 – VIC/P74 Location
VIC/P74, GIPPSLAND BASIN OFFSHORE VICTORIA
Under the terms of a pre-bid agreement
Hibiscus Petroleum Berhad can elect to
enter into a Joint Venture with 3D Oil
(Operator) for up to a 50% interest in
VIC/P74 on a ground floor basis.
On 26 July 2019 the National Offshore
Petroleum Title Administrator (“NOPTA”)
awarded the 3D Oil the VIC/P74 permit
in the offshore Gippsland Basin. The
1,006 km2 permit is located on the southern
side of the Gippsland Basin, adjacent the
giant Kingfish Oil Field. The world class
Kingfish Field is the largest oil field ever
discovered in Australia and to date has
produced over one billion barrels of oil.
The primary work programme is modest
and largely consists of purchase of
reprocessed 3D seismic data.
The rationale for the acreage acquisition of
VIC/P74 is based on the likely significant
enhancement of the of 3D seismic in
the basin as a result of reprocessing
being undertaken by service company
CGG. Exploration of this region has been
previously hampered by severe depth
conversion issues related to velocity
complexities in the shallow section above
the reservoir target. Recent advances
in reprocessing techniques have made
significant improvements in relation to
this technical issue as evidenced in 3D
Oil’s other Gippsland permit VIC/P57. 3D
Oil interpret that the permit may have
the potential for significant hydrocarbon
accumulations as evidenced by the
neighbouring Kingfish Field.
17
diRectoRs’
RepoRt
18
MATTERS SUBSE qUENT
to the end of the
finAnciAl yeAR
On 26 July 2019, the National Offshore
Petroleum Title Administrator (“NOPTA”)
has awarded the Company the VIC/P74
permit in the offshore Gippsland Basin. The
1,006 km2 permit is located on the southern
side of the Gippsland Basin. There are no
matters or circumstances that have arisen
since 30 June 2019 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 VIC/P57 in
Joint Venture partnership with Carnarvon
Hibiscus Pty Ltd and WA-527-P in the
Roebuck Basin of Western Australia.
3D Oil will continue to develop other
permits held. 3D Oil is seeking a farm-in
partner to assist in financing the T/49P
work program.
enviR onmentAl
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 2019.
significAnt chAnges in
the stAte of AffAiR s
– On 5 September 2018, the consolidated
entity announced a $3 million capital
raising at $0.115 (11.5 cents) per share
to fund purchase of seismic data
and undertake a comprehensive
prospectivity update across its
100% owned WA-527-P permit.
The capital raising comprised of a
$2.5 million placement to institutional
and sophisticated investors and a
fully underwritten share purchase plan
raising $0.5 million.
– On 11 September 2018, the consolidated
entity issued 21,304,348 fully paid
ordinary shares at $0.115 (11.5 cents )
per share in relation to the Tranche
1 placement to institutional and
sophisticated investors.
– On 3 October 2018, the consolidated
entity issued 4,374,170 fully paid ordinary
shares at $0.115 (11.5 cents) per share in
relation to the Share Purchase Plan Offer
dated 12 September 2018.
– On 21 November 2018, the consolidated
entity issued 434,782 shares at $0.115
(11.5 cents) per share to Mr Noel Newell
as the Tranche 2 placement following
shareholder approval on 2 November
2018.
– On 21 February 2019, the Company
announced that it had been awarded a
12-month suspension of the Year 5 work
program commitment for T/49P, with a
corresponding 12-month extension of
the permit term. As a result, Permit Year
6 will end on 21 February 2021. This will
allow the Company up until 21 February
2020 to complete acquisition, processing
and interpretation of a minimum
750 km2 of 3D seismic data.
– On 15 May 2019, the Company
announced that it had received
Environmental Approval from NOPSEMA
for the Dorrigo 3D Seismic Survey. The
survey covers a number of key leads in
3D Oil’s 100%-owned T/49-P project.
Dorrigo 3D Seismic Survey scheduled
for late 2019.
There were no other significant changes
in the state of affairs of the consolidated
entity during the financial year.
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', '3D Oil' or 'parent entity') and
the entities it controlled at the end of, or
during, the year ended 30 June 2019.
diRectoR s
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 Noel Newell
Mr Ian Tchacos
Mr Leo Demaria
pRincipAl A ctivities
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 loss for the consolidated entity after
providing for income tax amounted to
$1,089,254 (30 June 2018: $1,154,810).
Refer to the detailed Review of Operations
preceding this Directors' Report.
finAnciAl position
The net assets increased by $1,697,850
to $11,742,743 at 30 June 2019 (30 June
2018: $10,044,893). During the period the
consolidated entity spent a net amount
after reimbursements of $880,967
(2018: $314,206) on exploration, mainly
in relation to T/49P during the period.
The working capital position as at
30 June 2019 of the consolidated entity
results in an excess of current assets over
current liabilities of $903,047 (30 June
2018: $103,564). The consolidated entity
made a loss after tax of $1,089,254 during
the financial year (2018 loss: $1,154,810)
and had net operating cash outflows of
$958,034 (2018: $982,352). The cash
balances, including term deposits, as at
30 June 2019 was $1,934,458
(2018: $1,007,865).
Based on the above the Directors believe
the Company is in a stable position to
continue to pursue its current operations.
19
infoRmA tion on diRectoR s
compAny secRetARies
Mr Noel Newell
Executive Chairman
Mr Leo Demaria
Non-Executive Director
Ms Melanie Leydin
Company Secretary
Qualifications
B App Sc (App Geol)
Experience and expertise
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
44,082,229 ordinary fully paid shares.
Interests in options
None
Experience and expertise
Leo is a Chartered Accountant with extensive
experience in company management,
financial management, mergers and
acquisitions and risk management.
Other currentDirectorships
None
Former Directorships
(last 3 years)
None
Ms Leydin has 25 years’ experience in the
accounting profession including 13 years in
the Corporate Secretarial professions and is
a company secretary and finance officer for
a number of entities listed on the Australian
Securities Exchange. She is a Chartered
Accountant and a Registered Company
Auditor. Since February 2000, she has been
the principal of Leydin Freyer. The practice
provides outsourced company secretarial
and accounting services to public and
private companies specialising in ASX listed
entities.
Special responsibilities
Chairman of Audit Committee and
Remuneration and Nomination Committee
Mr Stefan Ross
Company Secretary
Interests in shares
650,070 ordinary fully paid shares.
Interests in options
None
Mr Ross has over 10 years of experience in
accounting and secretarial services for ASX
Listed companies. His extensive experience
includes ASX compliance, corporate
governance control and implementation
and statutory financial reporting.
Mr Ian Tchacos
Non-Executive Director
Experience and expertise
Ian Tchacos is an oil and gas professional
with over 30 years international experience
in corporate development and strategy,
mergers and acquisitions, petroleum
exploration, development and production
operations, decision analysis, commercial
negotiation, oil and gas marketing
and energy finance. He has a proven
management track record in a range of
international energy company environments.
Other current Directorships
Xstate Resources Limited, ADX Energy Ltd
Former Directorships
(last 3 years)
None
Special responsibilities
Member of Audit Committee and Member of
Remuneration and Nomination Committee
Interests in shares
428,500 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.
20
meetings of diRectoR s
The number of meetings of the Company's
Board of Directors ('the Board') held
during the year ended 30 June 2019, and
the number of meetings attended by each
Director were:
Mr N Newell
Mr L Demaria
Mr I Tchacos
Meetings Held*
Meetings Attended
5
5
5
5
5
3
Held: represents the number of meetings held during the time the Director held office.
*There are no sub-committees.
RemuneRAtion RepoR t
(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:
– Principles used to determine the nature
and amount of remuneration
– Details of remuneration
– Service agreements
– Share-based compensation
– Additional information
– Additional disclosures relating to
key management personnel
The reward framework is designed to align
executive reward to shareholders' interests.
The Board have considered that it should
seek to enhance shareholders' interests by:
– focusing on sustained growth in
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
– attracting and retaining high calibre
executives
Additionally, the reward framework should
seek to enhance executives' interests by:
– rewarding capability and experience
– reflecting competitive reward for
contribution to growth in shareholder
wealth
– providing a clear structure for earning
rewards
In accordance with best practice
corporate governance, the structure of
non-executive Director and executive
Director remuneration is separate.
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:
– competitiveness and reasonableness
– acceptability to shareholders
– alignment of executive compensation
– transparency
The Board is responsible for determining
and reviewing remuneration arrangements
for its Directors and executives. The
performance of the consolidated entity and
the 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.
21
detAils of RemuneRA tion
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.
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 Executive Chairman's remuneration.
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 2 November
2018 Annual General Meeting
('AGM')
The Company received 98.73%% of 'for'
votes in relation to its remuneration
report for the year ended 30 June 2018.
The Company did not receive any specific
feedback at the AGM regarding its
remuneration practices.
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:
– base pay and non-monetary benefits
– share-based payments
– other remuneration such as
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 Executive Chairman's
remuneration package, and the Executive
Chairman reviews the senior Executives'
remuneration packages annually by
reference to the consolidated entity's
performance, executive performance and
comparable information within the industry.
22
Short-term
benefits
Post-
employment
benefits
Long-term
benefits
Share-based
payments
Salary
Termination
Non-
and fees
fees
monetary
Super-
annuation
Long
service leave
Equity-settled
performance
rights
2019
Non-Executive Directors:
Mr I Tchacos
Mr L Demaria
Executive Directors:
Mr N Newell
2018
Non-Executive Directors:
Mr I Tchacos
Mr L Demaria
Executive Directors:
Mr N Newell
$
43,151
41,096
337,488
421,735
$
43,151
41,096
337,488
421,735
$
-
-
-
-
$
-
-
-
-
$
-
-
-
-
$
-
-
-
-
$
4,099
3,904
19,308
27,311
$
4,099
3,904
19,308
27,311
$
-
-
-
-
$
-
-
-
-
Total
$
47,250
45,000
356,796
449,046
$
47,250
45,000
$
-
-
-
-
$
-
-
17,952
17,952
374,748
466,998
The proportion of remuneration linked to performance and the fixed proportion are as follows:
Name
Non-Executive Directors:
Mr I Tchacos
Mr L Demaria
Executive Directors:
Mr N Newell
Fixed remuneration
At risk – STI
At risk – LTI
2019
2018
2019
2018
2019
2018
100%
100%
100%
100%
100%
95%
-
-
-
-
-
-
-
-
-
-
-
5%
23
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
Executive Chairman
Mr Ian Tchacos
Non-Executive Director
Mr Leo Demaria
Non-Executive Director
Agreement commenced
1 November 2006
Agreement commenced
14 October 2016
Agreement commenced
30 September 2014
Details
(i) Mr Newell may resign from his position
and thus terminate this contract by
giving 6 months written notice.
(ii) The Company may terminate this
employment agreement by providing
6 months written notice.
(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.
(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.
Details
(i) Mr Tchacos may resign from his
position and thus terminate this
contract by giving 3 months written
notice.
(ii) The Company may terminate this
employment agreement by providing
3 months written notice.
(iii) The Company may terminate the
contract at any time without notice
if serious misconduct has occurred.
Where termination with cause occurs,
Mr Tchacos is only entitled to that
portion of remuneration which is fixed,
and only up the date of termination.
(iv) On termination of the agreement,
Mr Tchacos will be entitled to be paid
those outstanding amounts owing to
him up until the Termination date.
Details
(i) Mr Demaria may resign from his position
and thus terminate this contract by
giving 3 months written notice.
(ii) The Company may terminate this
employment agreement by providing
3 months written notice.
(iii) The Company may terminate the
contract at any time without notice
if serious misconduct has occurred.
Where termination with cause occurs,
Mr Demaria is only entitled to that
portion of remuneration, which is fixed,
and only up the date of termination.
(iv) On termination of the agreement,
Mr Demaria will be entitled to be paid
those outstanding amounts owing to
him up until the Termination date.
Key management personnel have no
entitlement to termination payments in
the event of removal for misconduct.
24
SHARE-BASED COMPENSATION
Issue of shares
The Company issued 1,552,072 shares to
a Director and a former key management
personnel as part of compensation during
the year ended 30 June 2019.
Options
There were no options over ordinary shares
granted to or vested by Directors and other
key management personnel as part of
compensation during the year ended
30 June 2019.
Performance rights
There are no outstanding performance
rights at 30 June 2019. The terms and
conditions of each grant of performance
rights over ordinary shares affecting
remuneration of Directors and other
key management personnel related to
the comparative financial periods are
as follows:
Grant date
Vesting date and exercisable date
Expiry date
Share price hurdle for vesting
Fair value per right at grant date
24/11/2015
23/11/2018
24/12/2015
23/12/2018
23/11/2018
23/12/2018
$0.000
$0.000
$0.027
$0.021
Performance rights granted carry no dividend or voting rights. Performance rights vested and exercised during the year. There are no
outstanding performance rights at 30 June 2019.
teRms of peRfoRmAnce Rights
The Performance Rights were issued for
$Nil consideration, and the vesting of
the rights is contingent on the Company
achieving certain hurdles over a three year
performance period.
The number of Performance Rights which
vest is determined by assessing the
performance of the Company, as measured
by Total Shareholder Return (TSR) at the
Performance Date relative to a comparator
group of companies. The VWAP of the
Shares in the one-month preceding the
Performance Date compared to the VWAP
of the Shares in the one-month preceding
the grant date, will be used in calculating
the TSR over the three year period. The
TSR incorporate capital returns as well
as dividends notionally reinvested and is
considered the most appropriate means of
measuring the Company’s performance.
Performance Rights will only convert to
Shares subject to the Performance Period
being met and subject to the Company’s
TSR being at least equal to the median of
the comparator group performance. The
entire annual allocation will convert if the
Company’s TSR is at the 75th percentile
or higher than the comparator group
performance. The detailed breakdown of
the relationship between the Company’s
performance and the conversion of
Performance Rights is:
– 0% converting if the Company TSR
performance is below the median
performance of the comparator group.
– 50% to 100% converting if the Company
TSR performance is at or above the
median performance of the comparator
group, but below the 75th percentile
performance of the comparator group.
– 100% converting if the Company
TSR performance is at or above the
75th percentile performance of the
comparator group.
Under the LTI Plan there will be a straight
line pro-rata conversion of Performance
Rights to Shares where the Company’s TSR
performance is between the median and
75th percentile performance.
1,552,072 performance rights over
ordinary shares granted to a Director and
a former key management personnel
vested during the year ended 30 June
2019. Consequently, the Company issued
equivalent number of shares to the
rights owners. There are no outstanding
performance rights or shares granted to
Directors and other key management
personnel at 30 June 2019.
Additional information
The earnings of the consolidated entity for the five years to 30 June 2019 are summarised below:
Interest income/sundry income
Net profit/(loss) before tax
Net profit/(loss) after tax
2019
$
2018
$
2017
$
2016
$
2015
$
43,629
27,696
14,677
73,967
192,286
(1,089,254)
(1,154,810)
(1,839,978)
(10,332,422)
2,356,252
(1,089,254)
(1,154,810)
(1,839,978)
(10,291,156)
2,314,986
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)
2019
0.05
0.11
(0.42)
2018
0.04
0.05
(0.49)
2017
0.02
0.04
(0.77)
2016
0.06
0.02
(4.33)
2015
0.07
0.06
0.97
25
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 related parties, is set
out below:
Ordinary shares
Mr N Newell
Mr L Demaria
Mr I Tchacos
Balance at the
start of the year
Received as part
of remuneration
Additions
Disposals/other
Balance at the
end of the year
42,545,454
1,101,993
434,782
650,070
428,500
-
-
-
-
43,624,024
1,101,993
434,782
-
-
-
-
44,082,229
650,070
428,500
45,160,799
Performance rights holding
The number of performance rights 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 related parties, is set
out below:
Performance rights over
ordinary shares
Mr N Newell
Balance at the
start of the year
Granted
Vested
forfeited/ other
Expired/
Balance at the
end of the year
1,496,000
1,496,000
-
-
(1,101,993)
(1,101,993)
(394,007)
(394,007)
-
-
This concludes the remuneration report, which has been audited.
26
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.
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
immediately after this Directors' report.
Auditor
Grant Thornton Audit Pty Ltd continues in
office in accordance with section 327 of the
Corporations Act 2001.
Rounding of amounts
3D Oil Limited is a type of Company that is
referred to in ASIC Corporations (Rounding
in Financial/Directors’ Reports) Instrument
2016/191 and therefore the amounts
contained in this report and in the financial
report have been rounded to the nearest
dollar.
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
Executive Chairman
30 September 2019
Melbourne
Shares under option
There were no unissued ordinary shares of
3D Oil Limited under option outstanding at
the date of this report.
Shares under performance
rights
There were no unissued ordinary shares of
3D Oil Limited under performance rights
outstanding at the date of this report.
Shares issued on the exercise
of options
There were no ordinary shares of 3D Oil
Limited issued on the exercise of options
during the year ended 30 June 2019 and
up to the date of this report.
Shares issued on the exercise
of performance rights
The consolidated entity issued 1,552,072
ordinary shares on the exercise of
performance rights during the year ended
30 June 2019 and up to the date of this
report. Please refer note 16 to the financial
statements for further information.
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.
Indemnity and insurance
of auditor
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.
Proceedings on behalf of the
Company
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.
27
Auditor's independence declaration
[This page has intentionally been left
blank for the insertion of the auditor's
independence declaration]
28
Grant Thornton Audit Pty Ltd ACN 130 913 594asubsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389‘Grant Thornton’ refers to thebrand 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. www.grantthornton.com.auCollins Square, Tower 5727 Collins StreetMelbourneVIC 3008Correspondence to:GPO Box 4736Melbourne VIC 3001T+61 3 8320 2222F+61 3 8320 2200Einfo.vic@au.gt.comWwww.grantthornton.com.auAuditor’s Independence Declaration To the Directors of 3D Oil LimitedIn accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the audit of 3D Oil Limitedfor the year ended30 June 2019, I declare that, to the best of my knowledge and belief, therehave been:ano contraventions ofthe auditor independence requirements of the Corporations Act 2001 in relation to the audit; andbno contraventions of any applicable code of professional conduct in relation to the audit.Grant Thornton Audit Pty LtdChartered AccountantsB L Taylor Partner - Audit &AssuranceMelbourne,30September 2019 finAnciAl
RepoRts
29
stAtement of pRofit oR loss
And otheR compRehensive income
For the year ended 30 June 2019
Interest income calculated using the effective interest method
Expenses
Corporate expenses
Administrative expenses
Employment expenses
Occupancy expenses
Note
Consolidated
2019
$
2018
$
43,629
27,696
(479,721)
(233,525)
(88,952)
(55,759)
(418,442)
(613,471)
(91,619)
(106,014)
Depreciation and amortisation expense
5
(32,762)
(65,386)
Foreign exchange loss
Exploration costs written off
Share based payments
Finance costs
Loss before income tax expense
Income tax expense
-
(146)
(19,740)
(83,992)
-
(23,654)
(1,647)
(559)
(1,089,254)
(1,154,810)
-
-
5
6
Loss after income tax expense for the year attributable to the owners of 3D Oil Limited
(1,089,254)
(1,154,810)
Other comprehensive income for the year, net of tax
-
-
Total comprehensive income for the year attributable to the owners of 3D Oil Limited
(1,089,254)
(1,154,810)
Basic earnings per share
Diluted earnings per share
28
28
Cents
(0.42)
(0.42)
Cents
(0.49)
(0.49)
The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes
30
stAtement of finAnciAl position
As at 30 June 2019
Assets
Current assets
Cash and cash equivalents
Financial assets at amortised cost
Short term investments
Prepayments
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
Employee benefits
Total current liabilities
Non-current liabilities
Employee benefits
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Accumulated losses
Total equity
The above statement of financial position should be read in conjunction with the accompanying notes
Note
Consolidated
2019
$
2018
$
7
8
9
10
11
12
13
14
15
16
17
934,458
1,007,865
58,288
15,329
1,000,000
-
38,401
24,489
2,031,147
1,047,683
17,800
94,160
14,289
108,922
10,735,892
9,821,789
10,847,852
9,945,000
12,878,999
10,992,683
1,000,333
127,767
1,128,100
832,167
111,952
944,119
8,156
8,156
3,671
3,671
1,136,256
947,790
11,742,743
10,044,893
55,483,678
52,657,366
-
53,221
(43,740,935)
(42,665,694)
11,742,743
10,044,893
31
STATEMENT OF CHANGES IN E qUITY
For the year ended 30 June 2019
Consolidated
Balance at 1 July 2017
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
Expiry of Options
Balance at 30 June 2018
Consolidated
Balance at 1 July 2018
Contributed
equity
Accumulated
losses
Reserves
Total equity
$
$
$
$
52,657,366
(41,525,787)
44,470
11,176,049
-
-
-
-
-
(1,154,810)
-
(1,154,810)
-
-
-
(1,154,810)
-
(1,154,810)
-
23,654
23,654
14,903
(14,903)
-
52,657,366
(42,665,694)
53,221
10,044,893
Contributed
equity
Accumulated
losses
Reserves
Total equity
$
$
$
$
52,657,366
(42,665,694)
53,221
10,044,893
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:
-
-
-
(1,089,254)
-
(1,089,254)
Contributions of equity, net of transaction costs (note 16)
2,787,104
-
-
-
-
-
Expiry of performance rights
Conversion of vested performance rights
-
14,013
39,208
-
(14,013)
(39,208)
(1,089,254)
-
(1,089,254)
2,787,104
-
-
Balance at 30 June 2019
55,483,678
(43,740,935)
-
11,742,743
The above statement of changes in equity should be read in conjunction with the accompanying notes
32
stAtement of cAsh flows
For the year ended 30 June 2019
Cash flows used in operating activities
Payments to suppliers and employees (inclusive of GST)
Interest received
Interest paid
Note
Consolidated
2019
$
2018
$
(984,616)
(1,009,715)
28,230
(1,648)
27,922
(559)
Net cash used in operating activities
27
(958,034)
(982,352)
Cash flows from/(used in) investing activities
Payments for property, plant and equipment
Payments for intangibles
Payments for exploration and evaluation
Proceeds (used) / from short term investments
Net cash from/(used in) investing activities
Cash flows from financing activities
Proceeds from issue of shares
Share issue transaction costs
Net cash from financing activities
Net decrease in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
10
11
(18,845)
(2,665)
-
-
(880,967)
(314,206)
(1,000,000)
1,000,000
(1,902,477)
685,794
16
3,003,035
(215,931)
2,787,104
-
-
-
(73,407)
(296,558)
1,007,865
1,304,423
Cash and cash equivalents at the end of the financial year
7
934,458
1,007,865
The above statement of cash flows should be read in conjunction with the accompanying notes
33
notes to the finAnciAl st Atements
30 June 2019
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 18
41 Exhibition Street
Melbourne VIC 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 2019. 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 either in the
respective notes or below. These policies
have been consistently applied to all the
years presented, unless otherwise stated.
new oR Amended
Accounting stAndARds
And inteRpRet Ations
Adopted
The consolidated entity has adopted all of
the new or amended Accounting Standards
and Interpretations issued by the Australian
Accounting Standards Board ('AASB') that
are mandatory for the current reporting
period.
Any new or amended Accounting Standards
or Interpretations that are not yet mandatory
have not been early adopted.
34
going conceRn
The financial report has been prepared on
the going concern basis, which assumes
continuity of normal business activities and
the realisation of assets and the settlement of
liabilities in the ordinary course of business.
The working capital position as at 30 June
2019 of the consolidated entity results in
an excess of current assets over current
liabilities of $903,047 (30 June 2018:
$103,564). The consolidated entity made
a loss after tax of $1,089,254 during the
financial year (2018 loss: $1,154,810) and had
net operating cash outflows of $958,034
(2018: $982,352). The cash balances,
including term deposits, as at 30 June 2019
was $1,934,458 (2018: $1,007,865). The
continuing viability of the consolidated
entity and its ability to continue as a
going concern is dependent upon the
consolidated entity being successful in its
continuing efforts in exploration projects
and accessing additional sources of capital
to meet the commitments within twelve
(12) months from the date of this report.
To meet the Company's funding
requirements as and when they fall due the
Group will need to take appropriate steps,
including a combination of:
– Raising capital by one of or a
combination of the following: placement
of shares, rights issue, share purchase
plan, etc;
– Meeting its obligations by either
farm-out or partial sale of the Group’s
exploration interests;
– Subject to negotiation and approval,
minimum work requirements may be
varied or suspended, and/or permits
may be surrendered or cancelled; or
– Other avenues that may be available to
the Group.
This financial report has been prepared on
a going concern basis which contemplates
the continuity of normal business
activities and the realisation of assets and
settlement of liabilities in the ordinary
course of business. Should the Group be
unable to obtain the funding as described
above, there is a material uncertainty
as to whether the Group will be able to
continue as a going concern, and therefore,
whether it will be required to realise its
assets and extinguish its liabilities other
than in the normal course of business and
at amounts different from those stated in
the financial report. The financial report
does not include any adjustment relating
to the recoverability and classification
of recorded asset amounts nor to the
amounts and classification of liabilities
that may be necessary should the
Group be unable to continue as a going
concern. Having carefully assessed the
potential uncertainties relating to the
consolidated entity’s ability to effectively
fund exploration activities and operating
expenditures, the Directors believe that the
consolidated entity will continue to operate
as a going concern for the foreseeable
future. Therefore, the Directors consider
it is appropriate to prepare the financial
statements on a going concern basis.
Rounding of Amounts
3D Oil Limited is a type of Company that
is referred to in ASIC Corporations
(Rounding in Financial/Directors’ Reports)
Instrument 2016/191 and therefore the
amounts contained in this report and in the
financial report have been rounded to the
nearest dollar.
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
financial assets and liabilities at fair value
through profit or loss, financial assets at
fair value through other comprehensive
income, 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 24.
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 2019 and the
results of all subsidiaries for the year then
ended. 3D Oil Limited and its subsidiaries
together are referred to in these financial
statements as the 'consolidated entity'.
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.
Revenue Recognition
Interest
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.
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:
– 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
– 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 clA ssificAtion
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 the consolidated
entity's 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 the
consolidated entity's 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.
35
exploRAtion expendituRe
Exploration 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.
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.
leA ses
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 of GST recoverable from,
or payable to, the tax authority is included
in other receivables or other payables in the
statement of financial position.
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.
fAiR vAlue meA suRement
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.
new Accounting
stAndARds And
inteRpRet Ations not
yet mAnd AtoRy 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 2019.
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.
36
AASB 16 Leases
This standard is applicable to annual
reporting periods beginning on or after
1 January 2019. The standard replaces
AASB 117 'Leases' and for lessees will
eliminate the classifications of operating
leases and finance leases. Subject to
exceptions, a 'right-of-use' asset will be
capitalised in the statement of financial
position, measured at the present value
of the unavoidable future lease payments
to be made over the lease term. The
exceptions relate to short-term leases of
12 months or less and leases of low-value
assets (such as personal computers and
small office furniture) where an accounting
policy choice exists whereby either a
'right-of-use' asset is recognised or lease
payments are expensed to profit or loss as
incurred. A liability corresponding to the
capitalised lease will also be recognised,
adjusted for lease prepayments, lease
incentives received, initial direct costs
incurred and an estimate of any future
restoration, removal or dismantling costs.
Straight-line operating lease expense
recognition will be replaced with a
depreciation charge for the leased asset
(included in operating costs) and an
interest expense on the recognised lease
liability (included in finance costs). In the
earlier periods of the lease, the expenses
associated with the lease under AASB 16
will be higher when compared to lease
expenses under AASB 117. However, EBITDA
(Earnings Before Interest, Tax, Depreciation
and Amortisation) results will be improved
as the operating expense is replaced by
interest expense and depreciation in profit
or loss under AASB 16. For classification
within the statement of cash flows, the
lease payments will be separated into both
a principal (financing activities) and interest
(either operating or financing activities)
component. For lessor accounting, the
standard does not substantially change
how a lessor accounts for leases.
The consolidated entity will adopt this
standard from 1 July 2019. The consolidated
entity has elected to apply the modified
retrospective method of adoption. This
transition method requires the cumulative
effect of initially applying AASB 16 as
an adjustment to the opening balance
of retained earnings from the date of
initial application. In accordance with
the modified retrospective method,
comparative figures are not restated.
As at reporting date, the Group has
assessed the impact of the standard and
the expected impacts are as follows:
1. Increase in assets and liabilities
amounting to $259,557 and $260,424
respectively.
2. Increase in the accumulated losses in
the amount of $867.
3. It is not expected that there will be
any net impact on the consolidated
statement of cash flows.
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. The expectation of recovery
of the costs capitalised is based on the
assumption that the Group will be able
to obtain adequate financing to allow the
continued exploration and subsequent
development of areas of interest by either
successfully farming out a proportion
of existing permits or raising adequate
capital in its own right. 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.
Accounting policy for
operating segments
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.
37
NOTE 5. ExPENSES
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
Finance costs
Interest and finance charges paid/payable
NOTE 6. INCOME TAx ExPENSE
Numerical reconciliation of income tax expense and tax at the statutory rate
Loss before income tax expense
Tax at the statutory tax rate of 27.5%
Tax effect amounts which are not deductible/(taxable) in calculating taxable income:
Entertainment expenses
Share-based payments
Prior year under/over adjustment
Unrecognised tax losses
Income tax expense
Consolidated
2019
$
2018
$
(15,334)
(29,699)
(17,428)
(35,687)
(32,762)
(23,065)
(65,386)
(34,527)
-
(17,740)
(23,065)
(52,267)
(84,364)
(94,037)
(1,647)
(559)
Consolidated
2019
$
2018
$
(1,089,254)
(1,154,810)
(299,545)
(317,573)
1,997
-
-
297,548
1,324
6,505
274,077
35,667
-
-
38
Petroleum Resource Rent Tax
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%.
Eligible expenditure incurred in relation
to permits VIC/P57, T49P and WA-527-P,
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.
Deferred tax assets not recognised
Deferred tax assets not recognised comprises temporary differences attributable to:
Tax losses
Total deferred tax assets not recognised
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.
Consolidated
2019
$
2018
$
16,685,138
15,846,704
16,685,138
15,846,704
NOTE 7. CURRENT ASSETS – CASH AND CASH E qUIVALENTS
Cash at bank
Cash on deposit
Accounting policy for cash
and cash equivalents
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.
Consolidated
2018
$
795,884
211,981
2019
$
720,969
213,489
934,458
1,007,865
39
NOTE 8. CURRENT ASSETS – FINANCIAL ASSETS AT AMORTISED COST
Trade receivables
Interest receivable
GST receivable
Consolidated
2018
$
-
1,305
14,024
2019
$
27,954
16,704
13,630
58,288
15,329
Trade receivables represent reimbursement
of labour costs and third party invoices by
JV partners.
nature of these receivables, their carrying
value is assumed to be approximate to their
fair value.
expected credit losses. Trade receivables
are generally due for settlement within 30
days.
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
Accounting policy for 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 allowance for
Other receivables are recognised at
amortised cost, less any allowance for
expected credit losses.
NOTE 9. CURRENT ASSETS – SHORT TERM INVESTMENTS
Cash on deposit
This amount relates to cash on deposit held with a term to maturity greater than 3 months.
Consolidated
2018
$
-
2019
$
1,000,000
NOTE 10. NON-CURRENT ASSETS – PROPERTY, PLANT AND
EqUIPMENT
Consolidated
2019
$
2018
$
184,083
201,096
(184,083)
(186,807)
-
14,289
18,845
(1,045)
17,800
-
-
-
17,800
14,289
Plant and equipment – at cost
Less: Accumulated depreciation
Computer equipment – at cost
Less: Accumulated depreciation
40
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 2017
Depreciation expense
Balance at 30 June 2018
Additions
Depreciation expense
Balance at 30 June 2019
Plant &
Equipment
$
Total
$
43,988
43,988
(29,699)
(29,699)
14,289
18,845
14,289
18,845
(15,334)
(15,334)
17,800
17,800
Accounting policy for
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.
NOTE 11. NON-CURRENT ASSETS – INTANGIBLES
Software – at cost
Less: Accumulated amortisation
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 2017
Amortisation expense
Balance at 30 June 2018
Additions
Amortisation expense
Balance at 30 June 2019
Consolidated
2019
$
2018
$
334,790
421,011
(240,630)
(312,089)
94,160
108,922
Software
$
144,609
(35,687)
Total
$
144,609
(35,687)
108,922
108,922
2,665
2,665
(17,427)
(17,427)
94,160
94,160
41
Accounting policy for
intangible assets
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.
NOTE 12. NON-CURRENT ASSETS – ExPLORATION AND EVALUATION
Exploration and evaluation expenditure
10,735,892
9,821,789
Consolidated
2019
$
2018
$
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 2017
Expenditure during the year
Balance at 30 June 2018
Expenditure during the year
Impairment of assets
Balance at 30 June 2019
The exploration and evaluation assets
relate to VIC/P57 offshore Gippsland Basin
in Victoria, T/49P offshore Otway Basin
in Tasmania and WA-527-P in Western
Australia. The recoverability of the carrying
amounts of the exploration and evaluation
expenditure is dependent on the successful
development and commercial exploitation,
or alternatively the sale, of the respective
areas of interest.
The Company carried out an impairment
review of the carrying amount of its
exploration expenditure in VIC/P57, T/49P
and WA-527-P as at 30 June 2019.
Farm-outs — in the
exploration and evaluation
phase
The consolidated entity does not record
any expenditure made by the farminee
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 farminee 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.
42
Exploration &
Evaluation
Expenditure
$
Total
$
9,507,583
9,507,583
314,206
314,206
9,821,789
9,821,789
933,843
(19,740)
933,843
(19,740)
10,735,892
10,735,892
Accounting policy for
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.
NOTE 13. CURRENT LIABILITIES – TRADE AND OTHER PAYABLES
Trade payables
Sundry payables and accrued expenses
Refer to note 19 for further information on financial instruments.
Accounting policy for 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.
NOTE 14. CURRENT LIABILITIES – EMPLOYEE BENEFITS
Annual leave
Long service leave
Accounting policy for 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 wholly within 12 months of the reporting date are
measured at the amounts expected to be paid when the liabilities are settled.
Consolidated
2019
$
2018
$
91,510
32,986
908,823
799,181
1,000,333
832,167
Consolidated
2018
$
20,562
91,390
2019
$
15,538
112,229
127,767
111,952
NOTE 15. NON-CURRENT LIABILITIES – EMPLOYEE BENEFITS
Long service leave
Consolidated
2019
$
2018
$
8,156
3,671
Accounting policy for long-
term employee benefits
The liability for 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.
43
NOTE 16. EqUITY – ISSUED CAPITAL
Ordinary shares – fully paid
265,188,372
237,523,000
55,483,678
52,657,366
Consolidated
2019
Shares
2018
Shares
2019
$
2018
$
Date
Shares
Issue price
$
1 July 2017
237,523,000
52,657,366
52,657,366
30 June 2018
30 July 2018
237,523,000
1,552,072
$0.000
39,208
11 September 2018
21,304,348
$0.110
2,450,000
3 October 2018
21 November 2018
4,374,170
434,782
$0.110
$0.110
503,035
50,000
-
$0.000
(215,931)
30 June 2019
265,188,372
55,483,678
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 2018
Annual Report.
Options
For further information in relation to
unissued ordinary shares of 3D Oil Limited
under option, refer to the Directors' report
and Note 29.
Accounting policy for
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.
Movements in ordinary share capital
Details
Balance
Balance
Conversion of vested performance rights
Share placement
Share placement
Share placement
Capital raising costs
Balance
Ordinary shares
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.
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.
Capital risk management
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.
Capital is regarded as total equity, as
recognised in the statement of financial
position, plus net debt. Net debt is
calculated as total borrowings less cash
and cash equivalents.
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.
44
NOTE 17. EqUITY – RESERVES
Share-based payments reserve
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 2017
Share based payments
Expiry of options
Balance at 30 June 2018
Expiry of options (Note 29)
Conversion of vested performance rights (Note 29)
Balance at 30 June 2019
NOTE 18. 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.
Accounting policy for
dividends
Dividends are recognised when declared
during the financial year and no longer at
the discretion of the Company.
Consolidated
2019
$
-
2018
$
53,221
Options
Reserve
$
44,470
23,654
Total
$
44,470
23,654
(14,903)
(14,903)
53,221
(14,013)
(39,208)
53,221
(14,013)
(39,208)
-
-
45
NOTE 19. 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 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.
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:
Consolidated
US dollars
2019
$
33
Assets
2018
$
31
Liabilities
2019
2018
$
-
$
-
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$23 and the exchange rate used to translate the balance at 30 June 2019 was $0.69768.
Consolidated – 2018
% change
US dollar
4%
AUD strengthened
AUD weakened
Effect on
profit
before tax
$
(1)
Effect on
equity
% change
Effect
on profit
before tax
Effect on
equity
$
(1)
9%
$
3
$
3
Price risk
The consolidated entity is not exposed to
any significant price risk.
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.
Basis points increase
Basis points decrease
Consolidated – 2019
Basis points
change
Effect on
profit
before tax
Effect on
equity
Basis points
change
Cash at bank
50
$
306
$
306
Effect
on profit
before tax
Effect on
equity
$
$
-
(306)
(306)
Consolidated – 2018
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
5,039
5,039
50
(5,039)
(5,039)
46
cRedit 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.
The consolidated entity has adopted
a lifetime expected loss allowance in
estimating expected credit losses to
trade receivables through the use of a
provisions matrix using fixed rates of
credit loss provisioning. These provisions
are considered representative across all
customers of the consolidated entity
based on recent sales experience, historical
collection rates and forward-looking
information that is available.
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.
Generally, trade receivables are written off
when there is no reasonable expectation
of recovery. Indicators of this include
the failure of a debtor to engage in a
repayment plan, no active enforcement
activity and a failure to make contractual
payments for a period greater than 1 year.
LIqUIDITY RISk
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.
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 – 2019
Non-derivatives
Non-interest bearing
Trade and other payables
Total non-derivatives
Consolidated – 2018
Non-derivatives
Non-interest bearing
Trade and other payables
Total non-derivatives
Weighted
average
interest rate
%
-
Weighted
average
interest rate
%
-
1 year or less
$
889,345
889,345
1 year or less
$
832,167
832,167
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
$
889,345
889,345
Remaining
contractual
maturities
$
832,167
832,167
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. When
appropriate, 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.
47
NOTE 20. kEY MANAGEMENT PERSONNEL DISCLOSURES
diRectoR s
The following persons were Directors of 3D Oil Limited during the financial year:
Mr Noel Newell
Mr Leo De Maria
Mr Ian Tchacos
Executive Chairman
Non-Executive Director
Non-Executive Director
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
Share-based payments
Consolidated
2019
$
2018
$
421,735
421,735
27,311
-
27,311
17,952
449,046
466,998
NOTE 21. 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:
Audit services – Grant Thornton Audit Pty Ltd
Audit or review of the financial statements
52,580
59,022
Consolidated
2019
$
2018
$
48
NOTE 22. C OMMITMENTS
Operating Lease Commitments
Committed at the reporting date but not recognised as liabilities, payable:
Within one year
One to four years
Exploration Licenses – Commitments for Expenditure
Committed at the reporting date but not recognised as liabilities, payable:
Within one year
One to five years
More than five years
Consolidated
2019
$
2018
$
84,792
196,248
91,936
-
281,040
91,936
1,840,000
311,111
2,177,778
4,937,778
600,000
-
4,617,778
5,248,889
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 Administrator ('NOPTA').
Minimum commitments may be subject
to renegotiation and with approval may
otherwise be avoided by sale, farm out
or relinquishment. These obligations are
therefore not provided for in the financial
statements as payable.
The Company has included its
commitments for indicative expenditure
in the above note partly relating to
Exploration Permit T/49P up to year 4 as
outlined in the permit documentation.
Commitments from year 5 onwards
are confirmed on a year-by-year basis
dependent on the Company agreeing to
proceed. If the Company was to proceed
beyond year 4 in relation to T/49P, the
current indicative expenditure commitment
for Years 5-6 is currently gross $30 million
and this would be occurring in 2018-2020
years.
In relation to VIC/P57, the joint venture
applied to NOPTA in September 2017
for a further 5 year tenure. The program
includes minor but, high impact and
carefully designed work commitments
including state-of-the-art reporcessing of
the 3D seismic data covering the permit.
The Company announced on 7 March 2018
the renewal of the permit by NOPTA for a
further five years.
In relation to WA-527-P, the Company has
included its commitments for indicative
expenditure in the above note relating to
WA-527-P up to year 4. Commitments
from year 5 onwards are confirmed on
a year-by-year basis dependent on the
Company agreeing to proceed. If the
Company was to proceed beyond year 5 in
relation to WA-527-P, the current indicative
expenditure commitment for Years 5-6 is
currently gross $30.5 million and this would
be occurring in 2022-2023 years.
On 26 July 2019, the Company was
awarded VIC/P74 permit. The Company
has included its commitments for indicative
expenditure in the above note relating to
VIC/P74 up to year 5. Commitments from
year 6 onwards are confirmed on a year-
by-year basis dependent on the Company
agreeing to proceed. If the Company was
to proceed beyond year 6 in relation to
VIC/P74, the current indicative expenditure
commitment for Years 6-7 is currently gross
$40.3 million and this would be occurring in
2024-2025 years.
NOTE 23.
RelAted pARty
tRAns Actions
Parent entity
3D Oil Limited is the parent entity.
Subsidiaries
Interests in subsidiaries are set out in
note 25.
Key management personnel
Disclosures relating to key management
personnel are set out in note 20 and
the remuneration report included 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.
49
2019
$
Parent
2018
$
(1,089,683)
(1,154,834)
(1,089,683)
(1,154,834)
2019
$
Parent
2018
$
1,965,976
1,090,309
10,124,978
8,239,091
1,015,871
852,729
1,136,256
947,790
55,483,678
52,657,366
-
53,222
(46,494,956)
(45,419,287)
8,988,722
7,291,301
NOTE 24. PARENT ENTITY INFORMATION
Set out below is the supplementary information about the parent entity.
Statement of profit or loss and other comprehensive income
Loss after income tax
Total comprehensive income
Statement of financial position
Total current assets
Total assets
Total current liabilities
Total liabilities
Equity
Issued capital
Share-based payments reserve
Accumulated losses
Total equity
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 2019 and 30 June 2018.
Contingent liabilities
The parent entity had no contingent
liabilities as at 30 June 2019 and
30 June 2018.
Capital commitments –
Property, plant and equipment
The parent entity had no capital
commitments for property, plant and
equipment as at 30 June 2019 and
30 June 2018.
50
Significant accounting policies
The accounting policies of the parent
entity are consistent with those of the
consolidated entity, as disclosed in note 2,
except for the following:
– Investments in subsidiaries are
accounted for at cost, less any
impairment, in the parent entity.
– Investments in associates are accounted
for at cost, less any impairment, in the
parent entity.
– 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.
– Significant estimates and judgement –
recoverability of loan to subsidiary.
No objective indicators of impairment
due to:
– current best estimates of potential
resources indicate a quantity of oil/gas
that would allow recovery of the amount
due in full.
NOTE 25. 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
3D Oil T49P Pty Ltd
Australia
Ownership interest
2019
%
2018
%
100.00%
100.00%
NOTE 26. EVENTS AFTER THE REPORTING PERIOD
On 26 July 2019, the National Offshore
Petroleum Title Administrator (“NOPTA”)
has awarded the Company the VIC/P74
permit in the offshore Gippsland Basin.
The 1,006 km2 permit is located on the
southern side of the Gippsland Basin. There
are no other matters or circumstances that
have arisen since 30 June 2019 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 27. RECONCILIATION OF LOSS AFTER INCOME TAx TO NET
cAsh used in opeRAting Activities
Loss after income tax expense for the year
Adjustments for:
Depreciation and amortisation
Share-based payments
Impairment of exploration and evaluation
Accrued interest
Change in operating assets and liabilities:
Decrease in financial assets at amortised cost
Increase in prepayments
Increase/(decrease) in trade and other payables
Increase in employee benefits
Consolidated
2019
$
2018
$
(1,089,254)
(1,154,810)
32,762
-
19,740
(15,400)
394
(13,912)
87,336
20,300
65,386
23,653
-
-
87,657
(1,022)
(5,968)
2,752
Net cash used in operating activities
(958,034)
(982,352)
51
NOTE 28. EARNINGS PER SHARE
Consolidated
2019
$
2018
$
Loss after income tax attributable to the owners of 3D Oil Limited
(1,089,254)
(1,154,810)
Weighted average number of ordinary shares used in calculating basic earnings per share
259,489,921
237,523,000
Weighted average number of ordinary shares used in calculating diluted earnings per share
259,489,921
237,523,000
Number
Number
Cents
(0.42)
(0.42)
Cents
(0.49)
(0.49)
Basic earnings per share
Diluted earnings per share
Accounting policy for 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.
NOTE 29. SHARE-BASED PAYMENTS
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.
There were no share based payments were
made to the employees and Directors
during the year ended on 30 June 2019. Set
out below are summaries of performance
rights granted under the plan in the
comparative periods:
2019
Grant date
Expiry date
Exercise price
24/11/2015
23/11/2018
24/12/2015
23/12/2018
$0.000
$0.000
2018
Grant date
Expiry date
Exercise price
24/11/2015
23/11/2018
24/12/2015
23/12/2018
$0.000
$0.000
Balance at
the start
of the year
1,496,000
611,000
2,107,000
Balance at
the start
of the year
1,496,000
611,000
2,107,000
Granted
Exercised
Expired/
forfeited/
other
Balance at
the end of
the year
-
-
-
(1,101,993)
(394,007)
(450,079)
(160,921)
(1,552,072)
(554,928)
-
-
-
Granted
Exercised
-
-
-
-
-
-
Expired/
forfeited/
other
-
-
-
Balance at
the end of
the year
1,496,000
611,000
2,107,000
The weighted average remaining contractual life of performance rights outstanding at the end of the financial year was nil years (30 June 2018: 3 years).
52
For the performance rights the valuation model inputs used to determine the fair value at the
grant date, are as follows:
Grant date
Expiry date
24/11/2015
23/11/2018
24/12/2015
23/12/2018
Share price at
grant date
$0.040
$0.030
Exercise
price
$0.000
$0.000
Expected
volatility
62.700%
62.700%
Dividend
yield
Risk-free
interest rate
Fair value
at grant date
-
-
2.130%
2.030%
$0.027
$0.021
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.
Accounting policy for
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:
– 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.
– 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.
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.
53
DIRECTORS'
declARAtion
In the Directors' opinion:
– 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;
– 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;
– the attached financial statements and
notes give a true and fair view of the
consolidated entity's financial position as
at 30 June 2019 and of its performance for
the financial year ended on that date; and
– 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
Executive Chairman
30 September 2019
Melbourne
54
Independent auditor's report to the
members of 3D Oil Limited
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55
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. www.grantthornton.com.au Collins Square, Tower 5 727 Collins Street Docklands Victoria 3008 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 audit of the financial report Opinion We have audited the financial report of 3D Oil Limited (the Company) and its subsidiaries (the Group) which comprises the statement of financial position as at 30 June 2019, the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, and the Directors’ declaration. In our opinion, the accompanying financial report of 3D Oil Ltd and controlled entities is in accordance with the Corporations Act 2001, including: a giving a true and fair view of the Group’s financial position as at 30 June 2019 and of its performance for the year ended on that date; and b complying with Australian Accounting Standards and the Corporations Regulations 2001. Basis for opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Material uncertainty related to going concern We draw attention to Note 2 in the financial statements, which indicates that the Group incurred a net loss of $1,089,254 during the year ended 30 June 2019 and had net operating cash outflows of $958,034. As stated in Note 2, these events or conditions, along with other matters as set forth in Note 2, indicate that a material uncertainty exists that may cast doubt on the Group’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.
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56
Key audit matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. In addition to the matter described in the Material uncertainty related to going concern section, we have determined the matters described below to be the key audit matters to be communicated in our report. Key audit matter How our audit addressed the key audit matter Exploration and Evaluation Assets - valuation As all of the tenements held by 3D Oil Limited are in the exploration stage, exploration expenditure is capitalised in accordance with Australian Accounting Standard AASB 6 Exploration for and Evaluation of Mineral Resources. The company is required to assess at each reporting date if there are any triggers for impairment which may suggest the carrying value is in excess of the recoverable value. Any impairment losses are then measured in accordance with AASB 136 Impairment of Assets. AASB 6 Exploration for and Evaluation of Mineral Resources requires exploration and evaluation asset to be assessed for impairment when facts and circumstances suggest that the carrying amount of an exploration and evaluation asset may exceed its recoverable amount. AASB 6 provides a list of four indicators, however that list is not exhaustive and therefore subjectivity is involved in the assessment. This area is a key audit matter as significant judgement is required in determining whether the facts and circumstances suggest that the carrying amount of an exploration and evaluation asset may exceed its recoverable amount, and then consequently in measuring any impairment loss. Our procedures included, amongst others: Obtaining the management prepared reconciliation of capitalised exploration and evaluation expenditure and agreeing to the general ledger; Selecting a sample of capitalised exploration and evaluation expenditure and obtaining documentation to support the amount capitalised in line with AASB 6; Critically reviewing management's assessment of impairment indicators for the Group's capitalised exploration assets under AASB 6 by: o Assessing the period for the right to explore the areas of interest have not expired or will not expire in the near future without an expectation of renewal; o Enquiring of management regarding their intentions to carry out exploration and evaluation activity in the relevant exploration area, including review of managements’ budgeted expenditure; o Understanding whether any data exists that indicates the carrying value of these exploration and evaluation assets are unlikely to be recovered from successful development or by sale; and o Considering any other available evidence of impairment. Assessing management's consequent determination of impairment loss (if any); and Reviewing related financial statement disclosures. Information other than the financial report and auditor’s report thereon The Directors are responsible for the other information. The other information comprises the information included in the Company’s annual report for the year ended 30 June 2019, but does not include the financial report and our auditor’s report thereon. Our opinion on the financial report does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
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57
Responsibilities of the Directors’ 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 and for 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. In preparing the financial report, the Directors are responsible for assessing the Company’s/Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so. Auditor’s responsibilities for the audit of the financial report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance Standards Board website at: http://www.auasb.gov.au/auditors_responsibilities/ar1.pdf. This description forms part of our auditor’s report. Report on the remuneration report Opinion on the remuneration report We have audited the Remuneration Report included in pages 21 to 26 of the Directors’ report for the year ended 30 June 2019. In our opinion, the Remuneration Report of 3D Oil Limited, for the year ended 30 June 2019 complies with section 300A of the Corporations Act 2001. Responsibilities 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. Grant Thornton Audit Pty Ltd Chartered Accountants B L Taylor Partner – Audit & Assurance Melbourne, 30 September 2019
shAReholdeR infoRmA tion
The shareholder information set out below was applicable as at 27 September 2019.
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
The names of the twenty largest security holders of quoted equity securities are listed below:
Noel Newell (Newell Family A/C)
Oceania Hibiscus SDN BHD
H Louey Pang & Co Pty Ltd (Demaria Family A/C)
Fugro Exploration Pty Ltd
Citicorp Nominees Pty Limited
Bill Hopper
Sanlirra Pty Ltd (Sanlirra Super Fund A/C)
J K Demaria Pty Ltd
HSBC Custody Nominees (Australia) Limited - A/C 2
PAND JR Pty Ltd (John Demaria Family A/C)
Northern Business Planning Centre Pty Ltd (Newell Super A/C)
Pengold JR Pty Ltd (Pengold Super Fund A/C)
Andrew Paterson
Vin Naidu and Wendy Naidu
Mr Giovanni Monteleone and Mrs Frances Monteleone
Mr Russell Barwick
Eilie Sunshine Pty Ltd (Eilie Sunshine Superfund A/C)
Blamnco Trading Pty Ltd
Blamnco Trading Pty Ltd
Miclon Pty Ltd (Talty Super Fund A/C)
58
Number of holders of ordinary shares
44
129
134
461
265
1,033
190
Ordinary shares
% of total
shares issued
13.40
10.75
2.97
2.61
2.47
2.25
1.94
1.67
1.75
1.70
1.52
1.29
1.12
0.99
0.89
0.87
0.87
0.82
0.81
0.75
Number held
38,604,620
30,963,000
8,550,000
7,511,000
7,110,250
6,475,000
5,600,000
4,823,935
5,031,740
4,886,510
4,375,616
3,714,000
3,237,500
2,837,500
2,550,000
2,500,000
2,500,000
2,367,490
2,325,000
2,146,348
148,109,509
51.44
Unquoted equity securities
There are no unquoted equity securities.
Substantial holders
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.
Ordinary shares
% of total
shares issued
14.92
10.75
Number held
42,980,236
30,963,000
59
60
coRpoRAte diRectoR y
Directors
Noel Newell (Executive Chairman)
Ian Tchacos (Non-Executive Director)
Leo Demaria (Non-Executive Director)
Solicitors
Baker McKenzie
Level 19, 181 William Street
Melbourne,Victoria 3000
Stock exchange listing
3D Oil Limited securities are listed on the
Australian Securities Exchange.
(ASX Code: TDO)
Website
3doil.com.au
Corporate Governance
Statement
Corporate governance documents can be
found in the Company's website
www.3doil.com.au/about/corporate-
governance
Annual General Meeting
3D Oil Limited advises that its Annual
General Meeting will be held on Monday,
11 November 2019. The time and other
details relating to the meeting will be
advised in the Notice of Meeting to be
sent to all Shareholders and released to
the ASX in due course.
Company secretaries
Melanie Leydin
Stefan Ross
Registered office
Level 18, 41 Exhibition Street
Melbourne, VIC 3000
Telephone: (03) 9650 9866
Principal place of business
Level 18, 41 Exhibition Street
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
Collins Square Tower 5
727 Collins Street
Melbourne Victoria 3008
Cover image: PGS Ramform Tethys, courtesy PGS
61
AnnuAl
RepoRt
2019