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ANN UAL REP ORT 202 1
S AME R OCKS
NEW IDEAS
NEW IDEAS
NEW
O PP ORTUNIT Y
2
NEW
OPP ORT UNIT Y
‘There are probably no other shareholders
in a small oil and gas explorer in Australia
exposed to so much upside.’
NOEL NEWEL L, EXECUTIVE CH AIR MAN
Executive Chairman’s Letter to shareholders
Review of Operations
Directors' report
Auditor's independence declaration
Consolidated statement of profit or loss and other comprehensive income
Consolidated statement of financial position
Consolidated statement of changes in equity
Consolidated statement of cash flows
Notes to the consolidated financial statements
Directors' declaration
Independent auditor's report to the members of 3D Oil Limited
Shareholder information
Corporate directory
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3
EXECUTIVE
CHAIRMAN’S
LETTER TO
SHAR EHOLD ERS
4
In this world of emissions reduction, I would
like to discuss my view on the relevance of the
oil and gas industry going forward, but first
up I must address some of the highlights for
3D Oil in the last year.
3D Oil is firmly on a course to become an east
coast gas producer in a critical time of energy
transition and constraint.
As I write this the Geo Coral seismic vessel
is currently in Bass Strait acquiring the Sequoia
3D Seismic Survey in T/49P for ConocoPhillips
as operator. It is a very exciting time for both
companies as we are about to reveal the gas
potential of an area 3D Oil has championed
for almost ten years. I have said this previously –
it is 3D Oil’s belief that the T/49P permit
is the last place on the east coast where
significantly large gas reserves can
potentially be uncovered. There is nowhere
else. 3D Oil is now being carried towards the
drilling of an exploration well that could realise
reserves of potentially more than 1 TCF gas
and provide an answer to the southeast gas
supply deficit. The acquisition will almost
certainly go significantly over budget largely
due to weather, but 3D Oil has no exposure
to cost over runs. And in the event COP decide
to drill, 3D Oil shall be carried for the first
US$30 mill of expenditure.
There are probably no other shareholders
in a small oil and gas explorer in Australia
exposed to so much upside – and this
is without considering our other
exploration permits.
Once again, I need to compliment my team
for the acquisition of WA-527-P permit prior
to the discovery of Dorado – it was a strategic
master stroke, leveraging excellent technical
insights and balancing risk versus reward in
a highly underexplored area with exciting play
concepts. It was not an accident or luck. We
now see the development of the Dorado oil
field moving forward, next door to our permit,
with two exciting exploration wells to be drilled
in the coming months – Pavo and Apus. 3D Oil
are planning the acquisition of 3D seismic in
WA-527-P early in 2022 – preferably and likely
with a partner.
The acquisition of the Gippsland Basin permit
VIC/P74 with a near minimal bid continues
to reveal leads and prospects which have
not been previously recognized by the
industry – in an area adjacent to the largest
oil field discovered in Australia – Kingfish.
We have been surprised by the unsolicited
approaches we have received from potential
farm-in partners to evaluate the permit –
our team has spent much of this year engaged
with these parties. Recently we released an
ASX announcement that revealed further
Prospective Resources in the permit. It must
be remembered the commercial threshold
within this area is relatively low due to its
proximity to existing infrastructure.
The recent report from the Inter-governmental
Panel on Climate Change shows the world has
no other option but to take practical steps to
address the challenge. However, in the media
the role of hydrocarbons moving forward is
often portrayed as a binary debate – one of
good vs evil – that we must immediately stop
using any hydrocarbons.
As our shareholders realise, the world of energy
supply and the global economy are far more
complicated and energy-dependent than that.
Hydrocarbons, including gas, still supplied
83 per cent of all global energy in 2020.
Even in the world of electric vehicles, oil and
gas is integral to manufacturing of components.
Thousands of products depend on oil and
natural gas, from smart-phones and computers
to sporting equipment and the clothes on your
back. Petrochemicals are used in about half
a million different products!
A more rational debate would be about how
technology can help us achieve net zero while
maintaining affordable and reliable energy.
APPEA recently estimated that our industry
provides $66 billion of royalties, used to build
hospitals, police stations, roads and schools.
The industry has contributed $450 billion
of investment into regional communities,
and either directly or indirectly placed
80,000 people into jobs.
The Australian government estimates gas
exports have the potential to lower emissions
in LNG-importing countries by about
170 million tonnes of CO2 equivalent per year
by providing an alternative to higher emissions
fuels. That equates to almost a third of
Australia’s total annual emissions. Natural gas
has only half the greenhouse gas emissions
of coal when used to generate electricity
and can currently achieve things that
renewables simply cannot do, such as power
manufacturing plants and provision of reliable
energy base load.
Of course, our industry can contribute
significantly to de-carbonization – we can and
are championing technologies such as Carbon
Capture and Storage (CCS) and the production
of blue hydrogen utilising natural gas feedstock.
3D Oil is now fully committed to becoming
a significant east coast gas producer –
a resource that remains an essential
component to an energy mix with
increasing reliance on renewables.
In Victoria alone more than two million homes
are connected to natural gas (83% of homes),
65,000 commercial gas customers and more
than 600 large industrial users of natural gas.
Victoria needs reliable and cheaper energy
that comes from natural gas.
According to Canstar, gas running costs are
approximately 30 to 45 per cent lower than
their electricity counterparts and that doesn’t
consider the cost to convert your home from
gas to electricity.
Arguably, displacing gas energy sources with
electricity in Victoria would result in uptake
of proportionally higher dirtier fuel sources,
as the state’s electricity production is heavily
reliant on brown coal which makes up more
than 70% of our energy mix. Renewable energy
currently makes up the equivalent of just
4 per cent of Victoria’s energy consumption.
As we have seen other parts of the world
such as Britain, Europe, the US and
elsewhere, natural gas plays a critical role
in complementing intermittent renewable
energy sources such as wind and solar.
Gas has a critical role in any cleaner energy
future. The role of natural gas as a lower
emitting and cleaner burning fuel is driving
much of the international demand for
liquefied natural gas (LNG). Gas demand
in Asia is booming largely driven by China
with surging energy demand, gas replacing
coal and low hydro output.
As I write this, we are witnessing a global gas
shortage. In many countries, including Britain
and Spain, governments are rushing through
emergency measures to protect consumers.
Factories are being temporarily switched
off, from aluminum smelters in Mexico to
fertilizer plants in Britain. Markets are frantic.
One trader says it is like the global financial
crisis for commodities. While reasons behind
this are incredibly complex, they can be
reduced to a simple explanation – an energy
market with only thin safety buffers, that has
become acutely sensitive to disruptions with
a back-drop of subdued investment in fossil
fuels. Volatility in the global gas market is here
to stay.
It remains a challenging time in our industry
with access to funds becoming increasingly
hard and the volatility in global markets due
to COVID. Despite these difficulties the
company is in a unique position in our sector
with the potential for massive uplifts in the very
near future. I am aware we have many patient
shareholders as we have slowly built our world
class portfolio, all the while avoiding significant
capital raisings over the life of the company.
As a significant shareholder I believe we are
close to reaping the rewards.
On behalf of the Company, I thank the
Board and the 3D Oil team for their
endeavors and commitment over the last
year. They are an integral part of realizing
our ambition to become a significant
Australian energy company.
Noel Newell
Executive Chairman
5
REVIEW OF
OPER ATIONS
6
WA/527-P, BEDOUT SUB-BASIN,
OFFSHORE NORTHWEST SHELF
Exploration permit WA/527-P is a large
permit that covers 6,500km2 of the eastern
margin of the Bedout Sub-basin, a structural
element of the Roebuck Basin on the prolific
Northwest Shelf. The permit is situated
approximately 80km northeast of the
recent Dorado Field oil and gas condensate
discovery (Carnarvon Petroleum 20%,
Santos 80%) and TDO holds 100% interest
in the permit.
EXPLORATION
RATIONALE
Exploration in the Bedout Sub-basin began
during the 1980s with the drilling of the
Phoenix wells by BP Australia. Disappointing
results caused a lack of subsequent
exploration activity in the basin, until the
Phoenix South and Roc wells were drilled
between 2014 and 2019. Phoenix South 1
discovered a series of light oil zones, while
Roc 1 & 2 and other Phoenix South wells
all discovered gas-condensate within sands
of the lower Triassic, Caley reservoir.
Dorado 1 drilled in July 2018 fuelled a
resurgence of exploration activity in the
basin with the discovery of the largest oil
field in Australia over the last 30 years.
The discovery comprises 162 MMbbls
of liquids and 748 Bcf of gas within
multiple reservoirs of the Lower Triassic.
Flow testing of the Dorado-3 appraisal
well in September 2019 confirmed
excellent reservoir quality, recording a
maximum flow rate of 48 mscf/day of
gas and 4,500 bbl/day of oil from the
Baxter reservoir, while the Caley reservoir
achieved flow rates up to 11,100 bbl/day
oil and 21mcf/day associated gas
(STO release, 8 Oct 2019). Flow rates
from both intervals were constrained
by surface equipment and are some
of the best recorded on the Northwest
Shelf of Australia. These are excellent
results for reservoirs buried greater than
4000m depth.
The Santos led Joint Venture has recently
entered Front-End Engineering and Design
(FEED) on a multi-phased development of
Dorado Field, the first in the basin. A Final
Investment Decision (FID) on Dorado Field is
anticipated in mid-2022 and will ultimately
establish the Bedout Sub-basin as Australia’s
newest producing petroleum province.
The Joint Venture has also just finalised
the acquisition of the Archer 3D Marine
Seismic Survey (MSS), which images the
Dorado Field, as well as the Keraudren
Extension 3D MSS which lies directly
“The Sauropod 3D MSS
will provide TDO the
means to capitalise
on its strategic early
entry into what
remains a highly
underexplored basin”
Figure 1 WA 527/P Location
and Sea Floor Bathmetry
adjacent to WA/527-P. These 3D seismic
surveys will underpin a drilling campaign
that is anticipated to span several years
and will commence with the drilling
of two exploration wells at Pavo and
Apus prospects. These prospects have
similar source, seal, trap, and reservoir
characteristics to Dorado Field.
The Dorado discovery supports TDO’s long
held technical view that the region hosts
a prolific petroleum system, previously
overlooked by industry. The pre-Dorado
acquisition of WA/527-P reflects TDO’s
ability to recognize early opportunity and
act ahead of our larger competitors.
Importantly, Triassic targets within
WA/527-P are likely to have up to 1000m
less overburden than Dorado, and
therefore, reservoir potential is anticipated
to be similar, if not better. In addition,
the potential for analogous Dorado-style
stratigraphic traps also exists in WA/527-P.
A system of erosional incised valleys has
been identified on reprocessed legacy
2D seismic in the permit and will be fully
appraised after the acquisition of 3D
seismic data.
7
ACTIVITIES
Throughout the year TDO has been
engaged in negotiations with seismic
contractors to secure a vessel to shoot
the Sauropod 3D Marine Seismic Survey
(MSS), in compliance with Year 3 work
commitments. NOPSEMA approved
TDOs Environment Plan (EP) in July 2020
and acquisition was planned between
January and April 2021 inclusive. TDO
was disappointed to miss the acquisition
window due to protracted negotiations
with seismic contractors but continues
negotiations to ensure the timeline for the
next available acquisition window.
The Environmental Plan (EP) is in the
process of being updated for the new
acquisition window and will allow for a full
fold acquisition area of ~3447 km2 of 3D
seismic data. The survey is an integral next
step in the exploration strategy for the
permit and will have multiple objectives:
— Delineation of any targets analogous
to the Dorado discovery by virtue
of trapping against the interpreted
Triassic erosional channel systems in the
southwest of the acreage;
— Maturation of leads identified by legacy
2D seismic, including Salamander,
Jaubert, and Whaleback;
— Investigation of the potential Palaeozoic
play interpreted on the eastern side of
the acreage; and
— Identification of any structures that are not
imaged by the current 2D seismic data.
Figure 2 –
Interpretation of
reprocessed seismic
line JN87-20, including
a series of erosional
channels within
WA/527-P
The Sauropod 3D MSS is aptly named,
as the key to unlocking the potentially
significant prospectivity of the eastern
flank of the basin through the definition
of the northern extension of the Dorado
play. The Sauropod 3D MSS will provide
TDO the means to capitalise on its strategic
early entry into what remains a highly
underexplored basin. The existing 2D
seismic data over the permit is sparse
and not suitable for viewing hydrocarbon
related seismic signatures, if visible.
Recent 3D seismic acquisition in the basin
using the latest imaging techniques and
long offset streamer lengths has yielded
a significant uplift in image quality. The
Sauropod 3D MSS will enable TDO to
develop a risked and ranked leads and
prospects portfolio to attract favourable
farm-in terms in fulfilment of the secondary
term work program.
TDO has continued its farmout campaign
and hosted presentations and data rooms for
numerous interested parties under difficult
circumstances given the COVID-19 pandemic.
8
Figure 3 – WA/527-P Location, recent oil & gas
discoveries, and Triassic erosional channel systems
PROSPECTIVITY
Mesozoic leads
TDO has identified a series of structures
along the western side of the acreage
that may host Triassic sands like those
encountered at Dorado and Roc. Trap types
in the Triassic play include a combination of
conventional faulted anticlines and possible
stratigraphic traps sealed laterally by the
incised valley channel systems. Additional
inversion and fault-bound targets within
the Jurassic sections are also identified.
The largest of the Mesozoic leads include
Whaleback and Salamader, with a Best
Estimate Prospective Resource of 86 MMbbls
and 190 MMbbls respectively. The Sauropod
3D MSS will allow TDO to delineate the
structural closure of these features more
accurately, and thus update the prospective
resource estimates.
Figure 4 – Proposed Location of Sauropod 3D MSS
Full-Fold Acquisition Area
PALAEOZOIC LEADS
TDO has identified the presence of at least
six reef-like features that could form viable
oil targets, ranging in size from 3-30km2.
These are mostly identified within the
eastern side of the acreage, within what
is interpreted as an extensive Palaeozoic
Barrier Reef System. The extension of this
system in the onshore Canning Basin is a
proven petroleum system at the Blina and
Ungani oil fields. The Sauropod 3D MSS will
provide imaging for the largest of these
features located in the north of the permit.
Table 1: WA/527-P Prospective Resources Estimate
(MMbbls) Recoverable Oil (ASX ann. 26/2/18)
Lead/Prospect
Salamander
Jaubert
Whaleback
WA/527-P Total
Status
Lead
Lead
Lead
Low
57
17
16
90
Best
191
72
87
High
713
205
219
350
1,137
9
Figure 5 – Otway Basin permits, fields
and infrastructure relative to T/49-P
10
T/49P, OTWAY BASIN, OFFSHORE VICTORIA
The primary objective of the survey is to
image the existing leads in the central
and southern areas of the permit with
high quality 3D seismic, and to provide
further technical insights on the Flanagan
Prospect. This will enable the Joint Venture
to develop a complete and consistent
prospect seriatim to facilitate forward
strategic decision making. COPA may elect
to drill around the drilling of an exploration
well following the interpretation of the
survey in fulfilment of the Year 6 work
commitment. In the event COPA elects
to drill an exploration well, TDO will be
carried for up to US$30M in drilling costs,
for an exploration well, after which it will
contribute 20% of drilling costs in line with
its interest.
The Joint Venture was pleased to receive
regulatory approval for the Sequoia 3D
MSS, with conditions and limitations, from
NOPSEMA on 10 August 2021. At the time
of writing this report, the Shearwater
GeoCoral had Shearwater’s Geo Coral has
commenced acquiring the initial lines of the
survey, the first step towards realising the
potential 10TCF perspectivity of the permit.
TDO holds 20% interest in the T/49P
exploration permit, which is operated by
ConocoPhillips Australia SH1 Pty Ltd (COPA).
The permit is situated west of King Island,
Tasmania, and covers 4,960 km2 of the
offshore Otway Basin. T/49-P is located
adjacent to the producing Thylacine and
Geographe gas fields (100% owned by
Beach Energy Limited (ASX: BPT)).
The Otway Basin covers an area of
~150,000 km2 along the southern margin
of Australia. The basin has been an
important supplier of gas to the east coast
since the 1980s and the T/49-P permit
is optimally placed to contribute much
needed additional resources to this market.
T/49-P is highly prospective for gas and
contains numerous structures 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, with only a broad
grid of 2D seismic data of varying vintage
and quality. 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.
EXPLORATION
RATIONALE
TDO management believes the south-east
Australian gas market will be strong in the
coming years as existing gas production
in both the Gippsland and Otway Basin
declines. The National COVID-19 Response
Coordination Commission has flagged
the importance of securing additional
gas supply to fuel industrial recovery
from the COVID-19 pandemic. In addition,
the Federal Government Technology
Roadmap discussion paper, released on
21 May 2020, comments that gas will play
an important role as the nation switches
from coal fired power, and will support
the uptake of renewable energy by filling
gaps in the grid where renewable energy
generation is intermittent.
TDO recognised the potential for the
shortfall in gas supply to south-east
Australia as early as 2012 and acquired the
T/49-P exploration permit on that basis. The
wider industry now shares the view that the
region contains significant yet-to-find gas.
As a result, there is significant exploration
activity in the basin. In August 2019, Cooper
Energy Ltd (ASX: COE) drilled Annie-1
resulting in the first offshore gas discovery
in the Otway Basin in 11 years. Beach Energy
Ltd (ASX: BPT) discovered gas at Enterprise
1 in November 2020 and has recently
kicked-off plans to drill up to 8 wells
between 2021 and 2023. The first of these,
the Artisan 1 exploration well, was drilled in
March 2021 and resulted in a gas discovery
consistent with pre-drill estimates.
A series of appraisal and/or development
wells will be drilled by Beach Energy Ltd
in the following campaign at Thylacine,
Geographe, and potentially La Bella, along
with the installation of subsea infrastructure
to tie-in wells to the existing platform and
infrastructure. Yet another compelling
indication of the importance of the Otway
Basin is the entrance of COPA, by way of
farm-in to TDO’s T/49-P exploration permit.
ACTIVITIES
The National Offshore Petroleum Titles
Administrator (NOPTA) approved the
farmout of 80% interest in T/49-P to COPA
on 9 June 2020. This event signified an
important step forward in TDO's strategy
to discover commercial gas in southeast
Australia and help mitigate the upcoming
supply shortfall to the local market.
Since transferring operatorship to COPA,
the Joint Venture commenced acquisition
of the Sequoia 3D Marine Seismic Survey
(MSS), formerly the Dorrigo MSS, covering
an area of ~2500 km2. This represents a
substantial increase from the minimum
requirement as per the Farmout Agreement
(“FOA”) and ensures most of the permit
will be covered with high quality 3D seismic
that leverages the latest advances in
acquisition and processing technology.
“TDO recognized
the potential for the
shortfall in gas supply
to south-east Australia
as early as 2012 and
acquired the T/49-P
exploration permit on
that basis”
11
Figure 6 – Modelled gas expulsion and migration
PROSPECTIVITY
TDO acquired T/49-P due to its unique
position within respect to the regional
structural configuration of the southern
Otway Basin. The permit is located along
the edge of a paleo-shelf break, the
depositional focus of a series of thick
progradational clinoforms over the last
35 Million Years. These clinoforms have
resulted in rapid loading of the proven
sources rocks in this section of the Otway
Basin. TDO is of the belief that this
mechanism is responsible for providing
gas of the largest offshore Otway Basin
gas fields, Thylacine and Geographe, and
is likely to contribute hydrocarbons to the
leads and prospects of T/49-P (Figure 6).
Flanagan Prospect
Flanagan is a ‘drill ready’ prospect located
in shallow water and defined by the
Flanagan 3D MSS, acquired in 2014. The
structure has a maximum aerial closure of
approximately 80 km2 and is ideally located
adjacent to multiple source kitchens. The
prospect has a best estimate prospective
resource of 1.34 TCF (announced 27 July
2017) and is the closest drill target to
existing infrastructure at Thylacine and
Geographe fields.
The potential for gas in the Flanagan
Prospect is supported by quantitative
geophysical modelling, which indicates the
presence of a Class III Amplitude Versus
Offset (AVO) anomaly. In the Otway Basin,
this type of response is known to be
indicative of gas bearing sands.
12
Figure 7 – Seismic Interpretation and high
amplitude zones at the Seal Rocks lead
Seal Rocks Lead
Located in the south of the permit and
at an analogous shelf-break location to
Thylacine Field, one of the key objectives
of the upcoming Sequoia 3D MSS is the
Seal Rocks lead (Figure 7). In 2019 TDO
completed reprocessing and interpretation
of legacy 2D seismic and defined the
presence of several high amplitude zones,
likely to represent good quality reservoir
sands (Figure 7). These reservoirs appear
to fit a series of tilted fault-blocks, and
while the reprocessed 2D seismic has
provided a more accurate understanding
of the structure at Seal Rocks, 3D seismic
is required to determine the true resource
potential of the structure.
Table 2: T/49P Prospective Resource Estimate (TCF)
Recoverable Gas (ASX ann. 27-Jul-17)
Lead/Prospect
Flanagan
Munro (T/49P Part)
Whistler Point
British Admiral
Seal Rocks
Harbinger
T/49P Total
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
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.
“TDO completed
reprocessing and
interpretation of
legacy 2D seismic and
defined the presence
of several high
amplitude zones”
13
Figure 8 – VIC/P57 location
(green) with area of reprocessed
3D seismic data (blue
polygon). Inset map shows
permit locations relative to the
Gippsland Basin.’
VIC/P57, GIPPSLAND BASIN OFFSHORE VICTORIA
Exploration Permit VIC/P57 lies in the
northwest offshore Gippsland Basin within
shallow waters close to shore (Figure 8).
TDO holds a 24.9% interest in VIC/P57 and,
by arrangement with operator Carnarvon
Hibiscus Pty Ltd (CHPL), continues to carry
out subsurface technical work on behalf
of the Joint Venture.
VIC/P57 covers an area of 246 km2 and is
located proximal to existing infrastructure.
The permit was renewed by TDO and
Carnarvon Hibiscus Pty Ltd (CHPL) in 2018
for a further five years. As a part of this
process the Joint Venture was required to
relinquish non prospective graticular blocks
and has retained the most valuable acreage.
EXPLORATION
RATIONALE
The Gippsland Basin is Australia’s most
prolific oil and gas producing basin, with
initial reserves estimated at 4 billion
barrels of oil and 11.5 trillion cubic feet of
gas. Twenty-one oil and gas fields are on
production with most of the hydrocarbons
hosted by the world-class sandstones
of the upper Latrobe Group.
The Gippsland Basin is considered
extremely important for gas supply to
southeast Australia, providing around 40%
of all gas used in eastern Australia and 80%
of Victoria’s gas over winter (ExxonMobil).
However, production is in decline and the
Australian Energy Market Operator (AEMO)
14
Gas Statement of Opportunities, released
in March 2021, suggests that southern gas
fields have declined faster than anticipated,
with the last major southern gas field
expected to deplete before winter 2023.
The A$400M West Barracouta development
delivered first gas to the east coast market
in April 2021 with the successful drilling of
two gas production wells and installation of
subsea production facilities.
Several important events have occurred
over the course of the year that have
implications for future exploration and
production in the basin. Having announced
in September 2019 an intent to divest
Bass Strait assets, ExxonMobil Corporation
(NYSE: XOM) abandoned their
multi-billion-dollar sale in November 2020,
shortly after their deadline for indicative
bids, citing an extensive portfolio and
market re-evaluation. Furthermore, at the
time of writing this report, BHP Group
Ltd (BHP) (50% partner in Bass Strait)
announced a merger with Woodside
Petroleum Ltd (ASX: WPL) to form a top
10 global independent energy company.
While the forward impact of these
events on the Gippsland Basin remains
unclear, it seems likely there will be
near term opportunities for small agile
companies such as TDO. The A$400M
West Barracouta development delivered
first gas to the east coast market in April
2021 with the successful drilling of two gas
production wells and installation of subsea
production facilities.
A major milestone was achieved in early
2021 with the delivery of fast-tracked
results from CGG’s basin scale multiclient
3D seismic acquisition in 2020, covering
some 12,000 km2. This dataset will play
a key role in unlocking a new wave of
exploration in the basin, leveraging
the latest acquisition and processing
technology to deliver a significant uplift
in image quality of deeper, non-traditional
plays such as the Golden Beach and
Emperor Subgroups.
TDO believes that there are significant
resources remaining in the Gippsland Basin,
with many plays remaining underexplored.
Innovative exploration leveraging the latest
reprocessing and acquisition techniques
is central to TDO’s strategy to identify
previously overlooked opportunities in
the basin. Moreover, the Gippsland 3D MSS
covers several of TDO’s major leads and
prospects, including Felix (VIC/P57) and
Bigfin (VIC/P74). Given the major role
Gippsland gas plays in the east coast gas
market, the newly acquired Gippsland
3D MSS will underpin the future security
of gas supply to south-east Australia.
TDO is well positioned with its near-term
and drill-ready Gippsland Basin exploration
assets to take advantage of the predicted
gas shortfall over the coming 5 years,
especially given the emphasis on a gas led
COVID-19 economic recovery.
ACTIVITIES
VIC/P57 entered the final year of the
Primary Term on 7 March 2020. TDO
applied for a 12-month Suspension and
Extension to the Primary Term of VIC/P57,
which has received approval from
the NOPTA, extending the Primary Term
to 6 March 2022.
The Joint Venture has completed its
technical evaluation in VIC/P57. The
primary term of the current renewal period
was designed to de-risk and high grade the
prospect inventory and ultimately progress
prospects to ‘drill-ready’ status.
“Innovative exploration
leveraging the latest
reprocessing and
acquisition techniques is
central to TDO’s strategy
to identify previously
overlooked opportunities
in the basin”
Two drilling candidates have been
identified in the permit, including Felix
and Pointer. Pointer Prospect is the
largest drill target in the permit and was
initially resolved on legacy 3D seismic
during amplitude screening. It has since
been matured to drill ready status using
multiclient 3D seismic reprocessing.
An AVO supported gas prospect with
proximity to shore and infrastructure,
Pointer is well placed to supply gas
to the east coast market.
Dexter is located down-dip and along strike
to Pointer and has been confirmed as a
strong lead. Exploration success at Pointer
would reduce geological uncertainties
at Dexter, which represents valuable
additional potential for the permit.
Felix is a low-risk Oil & Gas prospect
located between the Wirrah and Moonfish
discoveries. Excellent local well control
provides an excellent understanding of the
petroleum system and significantly de-risks
the prospect.
Over the course of the year TDO has
continued its farmout campaign to
support the drilling of one of these drill
ready prospects, hosting data rooms for
numerous interested parties. The low risk
profile of Felix and the potential for Pointer
to provide low-cost gas to the domestic
market is recognized by industry.
Figure 9 – Arbitrary seismic line through
Wirrah Discovery, Felix Prospect and Moonfish
Field (Image courtesy of CGG Multiclient
& New Ventures)
PROSPECTIVITY
Felix Prospect
Felix Prospect is an inversion anticline
favourably situated between the Moonfish
and Wirrah discoveries along the Seahorse
Fault. (Figure 9). 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 nearby wells and excellent
reservoir seal pairs are anticipated across
the L.balmei zone at Felix.
Since finalizing interpretation of the latest
reprocessed seismic data, TDO understands
the trapping mechanism at Felix with far
greater accuracy. This provides a higher
degree of certainty with respect to the
prospective resource estimations for the
prospect. The improved velocity model
from the reprocessed data has helped to
de-risk the presence of closure in the depth
domain across the L.balmei zone and has
assisted with determining the best drilling
location at the prospect.
15
Figure 10 – Pointer Prospect Amplitude
Anomaly (image courtesy of CGG Multiclient
& New Ventures)
Pointer Prospect
Pointer Prospect is a combination
structural-stratigraphic trap within the
Upper L.balmei reservoir of the upper
Latrobe Group. The prospect shows a clear
rising amplitude with offset response, a
Class III AVO (Figure 10) which is likely
to represent dry gas. Improved imaging
has permitted high-resolution mapping
of the fault architecture and has reduced
uncertainty on the trapping mechanism,
highlighting a conformance of amplitude
with structure. Located proximal to existing
infrastructure within water depths of less
than 40m, and a drilling depth of ~1600m,
Pointer represents a low-cost development
for the domestic gas market.
Table 3: Total VIC/P57 Prospective Resources Estimate
(MMbbls) Recoverable Oil (ASX ann. 27/7/17)
Lead/Prospect
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
“The prospect shows
a clear rising amplitude
with offset response,
a Class III AVO which
is likely to represent
dry gas”
16
Figure 11 – VIC/P74 Location
VIC/P74, GIPPSLAND BASIN OFFSHORE VICTORIA
Located in the Offshore Gippsland Basin,
VIC/P74 was awarded to TDO on 26 July
2019 by the NOPTA. The permit covers
1,006 km2 of the shallow continental shelf
with water depths ranging up to 70m.
Geologically, the permit straddles the
boundary of the Southern Terrace and the
Central Deep on the southern flank of the
Gippsland Basin.
VIC/P74 is ideally situated, flanking several
important discoveries in the basin (Figure
11). Kingfish Field, the largest oil field in
Australia, lies 5km to the east and has
produced over 1 billion barrels from the
classic top Latrobe play. Likewise, Bream
Field lies 5km to the north and represents a
significant gas-condensate discovery within
the same play. An exploration campaign
in the 1980s by former operator Aquitane
yielded the first and only discovery inside
the permit, consisting of gas condensate
within the lower Latrobe Group at Omeo
Field – a three-way downside dip closure
located adjacent to newly discovered leads
against the Southern Terrace.
EXPLORATION
RATIONALE
Exploration well post-mortems completed
by TDO identified that several well failures
in VIC/P74 can be attributed to trap
presence, owing to drilling on coarse legacy
2D seismic, as well as depth conversion
issues caused by velocity anomalies in
the shallow overburden. VIC/P57 on
the northern flank of the basin has the
same velocity issues, however, TDO has
significantly enhanced depth models by
licencing CGG’s 3D seismic reprocessing
over VIC/P57. TDO observed a significant
uplift in seismic quality and velocities,
which has enhanced the accuracy of depth
models over Felix Prospect and supported
the maturation of Pointer Prospect.
TDOs exploration rationale in acquiring
VIC/P74 was to licence the CGG multiclient
3D seismic reprocessing to exploit recent
advances in reprocessing techniques and
resolve previously missed traps within
a prolific petroleum system.
ACTIVITIES
TDO has rapidly advanced the VIC/P74
work program over the course of the
year, despite the impacts of the COVID-19
pandemic. VIC/P74 entered Year 2 of the
primary work program on 26 July 2020.
TDO fulfilled a major work commitment
of the primary term in August 2020 by
licencing 1,004 km2 of the CGG multiclient
3D reprocessing, including full and offsets
stacks, gathers, and a velocity cube.
In October 2020, TDO progressed its
strategy to fund exploration activities
through strategic partnerships, with
NOPTA approving the formation of a Joint
Venture (JV) with Carnarvon Hibiscus Pty
Ltd (“CHPL”), a wholly owned subsidiary
of Hibiscus Petroleum Berhad. Under the
terms of the Joint Operating Agreement,
TDO retained operatorship with 50% equity
in the permit.
17
Figure 12 – Comparison between legacy and CGG
3D reprocessed seismic at Bigfin Lead
Figure 13 – Top Golden Beach Subgroup depth
map with identified closures (purple outlines)
have additional smaller closures within
overlying upper Latrobe Group reservoirs,
which are likely oil prone. Stargazer
represents an untested play type in the
basin as a stratigraphic pinch-out onto the
Strzelecki Group of the Southern Terrace,
which forms a proven cross-fault seal
at Longtom Field.
Additional gas prospectivity is currently
under assessment within the deeper
Emperor Subgroup play with a view
to updating the current prospective
resource estimates.
Encouragingly, TDO has been approached
by several interested parties over the
course of the year, and despite the
impacts of COVID, has hosted numerous
presentations and virtual data rooms. The
Joint Venture is seeking the best possible
terms to facilitate the next stages of
exploration, including seismic acquisition
and drilling.
Over the course of the year the Joint
Venture has fully interpreted the newly
licenced reprocessing, which has provided a
significant uplift in data quality (Figure 12).
Twelve key seismic horizons were interpreted
across the shallow overburden, upper
Latrobe Group, and prospective Golden
Beach and Emperor subgroups within the
lower Latrobe Group.
Mapping of the shallow overburden was
particularly important for constraining
shallow interval velocities, as previous
drilling failures in the permit have been
attributed to depth conversion error caused
by complex velocity inversions within the
overburden. The velocity cube from the
newly reprocessed 3D seismic provides
unprecedented resolution of these inversions.
gas-condensate prospectivity through
the presence of major structural and
stratigraphic traps (Figure 13). Closures are
supported by detailed depth conversion
studies, including comprehensive sensitivity
analysis underpinned by a range of depth
conversion techniques.
On 16 February 2021, TDO released a
leads inventory with prospective resource
estimates to the market, validating the
original strategy in acquiring VIC/P74.
At least four leads are considered
prospective for gas-condensate within
the Golden Beach Subgroup. The largest
of the identified leads is Bigfin, located
in the northeast corner of the permit,
which has a Best Estimate recoverable
volume of 534 Bcf (502 Bcf in permit).
A series of structures with small oil-prone
closures across several Upper Latrobe
reservoirs have been identified, however,
deeper mapping of the top Golden Beach
Subgroup reservoir revealed significant
Stargazer, Oarfish, and Megatooth leads
flank the Southern Terrace and have a
combined Best Estimate prospective
resource of 785 Bcf and 27 MMbbls
condensate. Megatooth and Oarfish leads
18
PROSPECTIVITY
Bigfin Lead
Bigfin is a faulted anticline at the top
Golden Beach Subgroup with a target
drilling depth of ~2950m TVDSS. Bigfin
lies directly adjacent to the world class
Kingfish structure and has a large areal
closure (~29km2) and vertical relief (up to
230m). Bigfin is ideally located with respect
to established production infrastructure
at nearby Bream Field, where production
is currently suspended, and lies in shallow
water depths of ~80m. Given the large
size of the closure, the structure has a
commercial Best Estimate gas volume
of 534 Bcf (502 Bcf in permit).
The overlying structure was tested in 1969
by Gurnard-1, a dry hole that recovered
an oil show from formation water in the
overlying F.longus reservoir. Well failure
at the primary Top Latrobe objective is
attributed to a lack of cross-fault seal.
Gurnard 1 did not intersect the underlying
Golden Beach section, which TDO
estimates could hold as much as 783 Bcf
and 38.6 MMbbls in the high estimate.
Paleogeographic maps indicate these
resources will likely be hosted by coastal
plain sands top sealed by Campanian aged
volcanics, which have been intersected in
nearby offset wells, including the Omeo
wells, Speke 1, and Melville 1. Volcanics are
proven to form a competent top seal at
analogous producing fields in the basin,
including Kipper and Manta.
The structure has a large throw and relies
on cross-fault seal with the F.longus lower
coastal plain, consisting of interbedded
shales, siltstones and coals. Volcanic
intrusions within fault planes form
important cross-fault seals for fields along
the margin of the Northern Terrace and
may also provide an additional cross-fault
sealing mechanism at Bigfin, given the
presence of local intrusive volcanics.
The structure has a large throw and relies
on cross-fault seal with the F.longus lower
coastal plain, consisting of interbedded
shales, siltstones and coals. Volcanic
intrusions within fault planes form
important cross-fault seals for fields along
the margin of the Northern Terrace and
may also provide an additional cross-fault
sealing mechanism at Bigfin, given the
presence of local intrusive volcanics.
Table 1: VIC/P74 Prospective Resources Estimate
(Bcf) Recoverable Gas (Nett to TDO in brackets)
(ASX ann. 16-Feb-21)
Lead/Prospect
Bigfin
Stargazer
Oarfish
Megatooth
Status
Lead
Lead
Lead
Lead
Low
Best
High
296 (148)
502 (251)
783 (392)
192 (96)
344 (172)
564 (282)
132(66)
237 (119)
400 (200)
114 (57)
204 (102)
345 (173)
VIC/P74 Total
734 (367)
1287 (644)
2092 (1047)
Table 2: VIC/P74 Prospective Resources Estimate
(MMbbls) Recoverable Condensate
(Nett to TDO in brackets) (ASX ann. 16-Feb-21)
Lead/Prospect
Bigfin
Stargazer
Oarfish
Megatooth
VIC/P74 Total
Status
Lead
Lead
Lead
Lead
Low
2 (1)
3 (1.5)
2 (1)
1.7 (0.85)
Best
19 (10)
12 (6)
8 (4)
7 (3.5)
High
39 (20)
37 (19)
26 (13)
22 (11)
9 (4)
46 (24)
124 (63)
Table 3: VIC/P74 Prospective Resources Estimate
(MMbbls) Recoverable Oil (Nett to TDO in brackets)
(ASX ann. 16-Feb-21)
Lead/Prospect
Megatooth
Oarfish
VIC/P74 Total
Status
Lead
Lead
Low
28 (14)
23 (11)
Best
58 (29)
40 (20)
High
107 (54)
71 (35)
51 (25)
98 (49)
178 (89)
“The largest of the
identified leads is
Bigfin, located in the
northeast corner of
the permit, which
has a Best Estimate
recoverable volume
of 534 Bcf (502 Bcf
in permit)”
19
DIRECTORS’
REP ORT
20
The Directors present their report, together
with the financial statements, on the
consolidated entity (referred to hereafter
as the 'Consolidated Entity') consisting
of 3D Oil Limited (referred to hereafter as
the 'Company' or 'parent entity') and the
entities it controlled at the end of, or during,
the year ended 30 June 2021.
DIRECTORS
The following persons were Directors
of 3D Oil Limited during the whole of the
financial year and up to the date of this
report, unless otherwise stated:
Mr Noel Newell
Mr Ian Tchacos
Mr Leo De Maria
PRINCIPAL ACTIVITIES
During the financial year the principal
continuing activities of the Consolidated
Entity 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
$1,142,095 (30 June 2020: $3,006,065).
Refer to the detailed Review of Operations
preceding this Directors' Report.
FINANCIAL POSITION
The net assets decreased by $1,133,023
to $7,609,520 at 30 June 2021 (30 June
2021: $8,742,543). During the year the
Consolidated Entity spent a net amount
after reimbursements of $851,721 (2020:
$726,453) on exploration, mainly in relation
to WA/527P, T49/P and VIC/P74 during
the year.
The working capital position of the
Consolidated Entity as at 30 June 2021 is
$2,067,184 (30 June 2020: $4,033,946). The
Consolidated Entity incurred net operating
cash outflows of $1,048,675 (2020:
$980,209). The cash balance as at 30 June
2021 was $3,048,802 (2020: $5,077,191).
Based on the above the Directors believe
the Consolidated Entity is in a position
to continue to pursue its current
operational objectives.
SIGNIFICANT
CHANGES IN THE
STATE OF AFFAIRS
On 14 July 2020, the Consolidated Entity
announced that it has been awarded
the necessary environmental approvals
from the Commonwealth Statuary
National Agency, NOPSEMA, to acquire
the Sauropod 3D Marine Seismic Survey
(MSS) within 100% owned WA-527-P of the
Offshore Roebuck Basin.
On 9 October 2020, the Consolidated
Entity announced that the NOPTA
approved Hibiscus Petroleum Berhad to
enter into a Joint Venture with TDO in
the offshore Gippsland Basin exploration
permit VIC/P74. Under the terms of the
Assignment Agreement, TDO will remain
as operator with 50% equity.
On 16 December 2020, the Consolidated
Entity announced the issue of 225,806
Performance Rights to Directors of the
Company, with Mr Leo De Maria receiving
112,903 Performance Rights and Mr Ian
Tchacos each receiving 112,903 Performance
Rights, following shareholder approval at
the Company’s Annual General Meeting
on 17 November 2020. Vesting of the
Performance Rights is contingent on both
the share price of the Company reaching
$0.09 (9 cents) at any time between grant
date and 17 November 2022 and continued
employment through 17 November 2022.
The Performance Rights expire 3 years
following the grant date.
On 15 February 2021, the Consolidated Entity
announced the issue of 516,128 Performance
Rights to eligible employees under the
Consolidated Entity's Equity Incentive
Plan. Vesting of the Performance Rights is
contingent on both the share price of the
Company reaching $0.09 (9 cents) at any
time between grant date and 17 November
2022 and continued employment through
17 November 2022. The performance rights
expire 3 years following their grant date.
On 16 February 2021, the Consolidated
Entity announced that a series of Leads
with a total Best Estimate Prospective
Resource of 370 MMboe have been
delineated by interpretation of newly
reprocessed seismic data and the
completion of detailed depth conversion
studies. The largest is the Bigfin Lead
which is hosted within the Lower Latrobe
Group and has a Best Estimate Prospective
Resource of 502 Bcf and 19 MMbbls of
condensate. Bigfin is located approximately
8km West of the Kingfish Oil Field which
has produced over 1 billion bbls to date.
An additional three Leads also hosted by
the Lower Latrobe Group have a total Best
Estimate Prospective Resource of 785 Bcf
gas. Two of these Leads are also considered
prospective for oil within the Upper Latrobe
Group with a combined Best Estimate
Prospective Resource of 98 MMbbls.
On 1 March 2021, the Consolidated Entity
announced that TDO’s wholly owned
subsidiary, 3D Oil T49P Pty Ltd, together
with its partner in T/49P, ConocoPhillips
Australia SH1 Pty Ltd (“COP”), has contracted
the Shearwater vessel the Geo Coral to
acquire the Sequoia 3D seismic survey.
There were no other significant changes
in the state of affairs of the Consolidated
Entity during the financial year.
MATTERS SUBSEQUENT
TO THE END OF THE
FINANCIAL YEAR
In accordance with the announcement
of 1 March 2021, the Consolidated Entity
announced on 11 August 2021 that
ConocoPhillips Australia SH1 Pty Ltd
(“ConocoPhillips Australia”) as operator of
the T/49P joint venture with TDO’s wholly
owned subsidiary, 3D Oil T49P Pty Ltd, will
commence acquisition of the Sequoia MSS
3D seismic survey using the Shearwater
vessel the Geo Coral.
The survey is planned to cover an area of
approximately 2,500 km2 with the seismic
survey acquisition estimated to take
approximately 60 days between the middle
of August and the end of October 2021.
ConocoPhillips Australia is the operator
of the T/49P joint venture with an 80%
interest in the T/49P Permit, the Company
having the remaining 20% interest.
Under the terms of the Farmout
Agreement, ConocoPhillips Australia was
to acquire a minimum of 1580 km2 of 3D
seismic at no expense to the Company
(TDO ASX Announcement 11 June 2020).
The proposed increase in size of the
acquisition area will provide coverage of
all leads within the T/49P Permit and tie in
with the previously acquired Flanagan 3D
seismic survey.
No other matter or circumstance has arisen
since 30 June 2021 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.
21
LIKELY DEVELOPMENTS
AND EXPECTED
RESULTS FROM
OPERATIONS
The Consolidated Entity will continue to
pursue its exploration interest in
— VIC/P57 and VIC/P74 in partnership with
Carnarvon Hibiscus Pty Ltd;
— T49P in partnership with Conoco Phillips
Australia SH1 Pty Ltd;
— WA/527-P in the Roebuck Basin of
Western Australia.
In July and August 2021, the Australian
economy has experienced disruption
related to COVID 19 triggered, Statewide
lockdowns across all major States including
New South Wales, Victoria and Queensland.
These lockdowns have caused disruption to
the broader business community and the
Australian mining and exploration industry's
operations have not been immune. There is
significant uncertainty around the breadth
and duration of business disruptions related
to COVID-19 and therefore the Consolidated
Entity has taken precautionary measures
by temporarily closing the Consolidated
Entity’s office and having arranged for the
employees to work remotely, as well as
curtailing travel.
Management believes that this will allow
the continuance of its current principal
business activities. At the date of this
report, the impact of these measures is
not expected to significantly impact the
completion of the activities currently
being undertaken. However, as the
circumstances continue to evolve, there
may be disruptions to future activities,
work timelines if employees, consultants
or their respective families are personally
impacted by COVID-19 or if travel and other
operational restrictions are not lifted.
ENVIRONMENTAL
REGULATION
The Consolidated Entity holds participating
interests in a number of oil and gas areas.
The various authorities granting such
tenements require the licence holder to
comply with the terms of the grant of the
licence and all directions given to it under
those terms of the licence. There have
been no known breaches of the tenement
conditions, and no such breaches have
been notified by any government agencies
during the year ended 30 June 2021.
22
INFORMATION ON DIRECTORS
Mr Noel Newell
Executive Chairman
Mr Leo De Maria
Non-Executive Director
Qualifications
B App Sc (App Geol)
Experience and expertise
Noel Newell holds a Bachelor of Applied
Science and has over 30 years' experience
in the oil and gas industry, with 20 years of
this time with BHP Billiton and Petrofina.
With these companies Mr Newell 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,
Mr Newell was Principal Geologist working
within the Southern Margin Company
and primarily responsible for exploration
within the Gippsland Basin. Mr Newell 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. Mr Newell is
the founder of 3D Oil. Immediately prior to
starting 3D Oil, Mr Newell 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
44,192,229 ordinary fully paid shares.
Interests in options
None
Experience and expertise
Leo De Maria is a Chartered Accountant
with extensive experience in company
management, financial management,
mergers and acquisitions and risk
management.
Other current directorships
None
Former directorships
(last 3 years)
None
Special responsibilities
Chairman of the Audit and the
Remuneration and Nomination Committees
Interests in shares
650,070 ordinary fully paid shares.
Interests in options
None
Interests in rights
112,903 performance rights
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
ADX Energy Ltd
Former directorships
(last 3 years)
Xstate Resources Limited (Resigned on 26
November 2019)
Special responsibilities
Member of the Audit Committee and the
Remuneration and Nomination Committee
Interests in shares
428,500 ordinary fully paid shares
Interests in options
None
Interests in rights
112,903 performance rights
COMPANY
SECRETARIES
Melanie Leydin – BBus
(Acc. Corp Law) CA FGIA
Joint Company Secretary
Melanie Leydin holds a Bachelor of
Business majoring in Accounting and
Corporate Law. She is a member of the
Institute of Chartered Accountants, Fellow
of the Governance Institute of Australia
and is a Registered Company Auditor. She
graduated from Swinburne University in
1997, became a Chartered Accountant
in 1999 and since February 2000 has
been the principal of Leydin Freyer. The
practice provides outsourced company
secretarial and accounting services to
public and private companies across a
host of industries including but not limited
to the Resources, technology, bioscience,
biotechnology and health sectors.
Melanie has over 25 years’ experience in the
accounting profession and over 15 years as
a Company Secretary. She has extensive
experience in relation to public company
responsibilities, including ASX and ASIC
compliance, control and implementation of
corporate governance, statutory financial
reporting, reorganisation of Companies and
shareholder relations.
Mr Stefan Ross BBus (Acc)
Joint Company Secretary
Mr Stefan Ross has over 12 years of
experience in accounting and secretarial
services for ASX Listed companies.
His extensive experience includes ASX
compliance, corporate governance control
and implementation, statutory financial
reporting and board and secretarial
support. Mr Ross graduated from ACU in
2008 obtaining a Bachelor of Business
majoring in Accounting.
MEETINGS
OF DIRECTORS
The number of meetings of the Company's
Board of Directors ('the Board') held
during the year ended 30 June 2021, and
the number of meetings attended by each
Director were:
Meetings
Held
Meetings
Attended
6
6
6
6
6
6
Mr N Newell
Mr L De Maria
Mr I Tchacos
Held: represents the number of meetings
held during the time the Director held office.
REMUNERATION
REPORT (AUDITED)
The remuneration report, which has
been audited, outlines the director and
executive remuneration arrangements
for the Company, in accordance with the
requirements of the Corporations Act 2001
and its Regulations.
Key management personnel are those
persons having authority and responsibility
for planning, directing and controlling the
activities of the entity, directly or indirectly,
including all Directors.
The remuneration report is set out under
the following main headings:
— 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
'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.
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.
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.
23
DETAILS OF
REMUNERATION
Amounts of remuneration
Details of the remuneration of key
management personnel of the
Consolidated Entity are set out in the
following tables.
Details of the remuneration of the directors
and other key management personnel
(defined as those who have the authority
and responsibility for planning, directing
and controlling the major activities of the
company) of the Company are set out in
the following tables.
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'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 its cost to the
Consolidated Entity and expensed. Options
and performance rights are valued using
the Hoadley Trading & Investment Tools
(“Hoadley”) ESO5 option valuation model.
The long-term incentives ('LTI') includes
long service leave and share-based
payments. Shares, options or performance
rights are awarded to executives on the
discretion of the Board based on long-term
incentive measures.
Consolidated Entity
performance and link to
remuneration
Commencing in the 2021 financial year,
Directors and employees' remuneration
packages include performance-based
components. Performance rights may be
granted which offer the recipient the right,
upon achieving predetermined milestones,
to participate in the benefits accruing to
shareholders through the alignment of
the terms of the performance rights to the
shareholders' interests. During the year
ended 30 June 2021, the Company granted
performance rights which are conditional
upon the achievement of a target share
price and tenure of employment. The
intention of this program is to facilitate goal
congruence between Directors, Executives
and employees with that of the business
and shareholders. Generally, the executive's
remuneration is tied to the Consolidated
Entity's successful achievement of certain
key milestones as they relate to its
operating activities.
Voting and comments
made at the Company's
17 November 2020 Annual
General Meeting ('AGM')
The Company received 92.73% of 'for' votes
in relation to its remuneration report for the
year ended 30 June 2020. 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/her 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 have three components:
— base pay, statutory entitlements including
superannuation, annual leave and long
service leave and cash bonuses; and
— share-based payments
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.
24
Short-term
benefits
Short term
incentives
Post-
employment
benefits
Long-term
benefits
Equity settled
share based
payments
Salaries
and fees
Cash
bonus
Super-
annuation
Long
service leave
Performance
rights
2021
Non-Executive Directors:
Mr I Tchacos
Mr L De Maria
Executive Directors:
Mr N Newell
2020
Non-Executive Directors:
Mr I Tchacos
Mr L De Maria
Executive Directors:
Mr N Newell
$
-
-
6,752
6,752
$
-
-
$
43,151
41,096
$
-
-
$
4,099
3,904
350,794
50,000
21,694
435,041
50,000
29,697
$
4,099
3,904
$
43,151
41,096
353,180
437,427
$
-
-
-
-
23,275
14,414
31,278
14,414
Total
$
48,847
46,597
$
1,597
1,597
-
429,240
3,194
524,684
$
-
-
-
-
$
47,250
45,000
390,869
483,119
The proportion of remuneration linked to performance and the fixed proportion are as follows:
Name
Non-Executive Directors:
Mr I Tchacos
Mr L De Maria
Executive Directors:
Mr N Newell
Fixed
remuneration
At-risk short term
remuneration
At-risk long term
remuneration
2021
2020
2021
2020
2021
2020
97%
97%
100%
100%
-
-
89%
100%
11%
-
-
-
3%
3%
-
-
-
-
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
Agreement commenced
1 November 2006
Details
(i) Mr Newell may resign from his position
and thus terminate this contract by
giving 6 months written notice.
Mr Newell is only entitled to that
portion of remuneration which is fixed,
and only up to the date of termination.
(ii) The Company may terminate this
(iv) On termination of the agreement,
employment agreement by providing
6 months written notice.
(iii) The Company may terminate the
Mr Newell will be entitled to be paid
those outstanding amount owing to
him up until the Termination date.
contract at any time without notice
if serious misconduct has occurred.
Where termination with cause occurs,
Key management personnel have
no entitlement to termination payments
in the event of removal for misconduct.
25
SHARE-BASED COMPENSATION
Issue of shares
The Company issued nil (2020: nil)
shares to directors and key management
personnel as part of compensation during
the year ended 30 June 2021.
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 2021 (2020: Nil).
Performance rights
There were 225,806 performance rights
over ordinary shares issued to Directors
as part of compensation that were
outstanding as at 30 June 2021 (2020: Nil).
Grant date
17 November 2020
Vesting date and
exercisable date
Expiry date
Share price
hurdle for
vesting
Fair value
per right at
grant date
17 November 2022
17 November 2023
$0.090
$0.046
Name
Number of
rights granted
Grant date
Vesting date and
exercisable date
Expiry date
Mr Ian Tchacos
112,903
17 November 2020
17 November 2022
17 November 2023
Mr Leo De maria
112,903
17 November 2020
17 November 2022
17 November 2023
Share price
hurdle for
vesting
Fair value
per right at
grant date
$0.090
$0.090
$0.046
$0.046
Performance rights granted carry no dividend or voting rights. No performance rights vested and were exercised during the year.
Additional information
The earnings of the Consolidated Entity
for the five years to 30 June 2021 are
summarised below:
2021
$
2020
$
2019
$
2018
$
2017
$
Other income including interest income
87,478
85,279
43,629
27,696
14,677
Net loss before tax
Net loss after tax
(1,142,095)
(3,006,065)
(1,089,254)
(1,154,810)
(1,839,978)
(1,142,095)
(3,006,065)
(1,089,254)
(1,154,810)
(1,839,978)
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 loss per share (cents per share)
2021
0.07
0.05
(0.43)
2020
0.11
0.07
(1.13)
2019
0.05
0.11
(0.42)
2018
0.04
0.05
(0.49)
2017
0.02
0.04
(0.77)
26
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 De Maria
Mr I Tchacos
Performance rights holding
The number of performance rights over
ordinary shares in the Company held during
the financial year by each Director of the
Consolidated Entity, including their related
parties, is set out below:
Performance rights over ordinary shares
Mr L De Maria
Mr I Tchacos
This concludes the remuneration report, which has been audited.
Balance
at the start
of the year
Received
as part of
remuneration
Additions
Disposals/
other
44,192,229
650,070
428,500
45,270,799
-
-
-
-
-
-
-
-
-
-
-
-
Balance
at the end
of the year
44,192,229
650,070
428,500
45,270,799
Balance
at the start
of the year
Granted
Vested
Expired/
forfeited/
other
Balance
at the end
of the year
-
-
-
112,903
112,903
225,806
-
-
-
-
-
-
112,903
112,903
225,806
27
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
Unissued ordinary shares of 3D Oil Limited
under performance rights at the date of this
report are as follows:
Grant date
17 November 2020
28 January 2021
29 January 2021
1 February 2021
11 February 2021
Expiry date
17 November 2023
17 November 2023
17 November 2023
17 November 2023
17 November 2023
No person entitled to exercise the
performance rights had or has any right
by virtue of the performance right to
participate in any share issue of the
Company or of any other body corporate.
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 2021 and up
to the date of this report.
Shares issued on
the exercise of
performance rights
There were no ordinary shares of
3D Oil Limited issued on the exercise
of performance rights during the year
ended 30 June 2021.
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.
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.
This report is made in accordance with a
resolution of Directors, pursuant to section
306(3)(a) of the Corporations Act 2001.
Auditor
Grant Thornton Audit Pty Ltd continues in
office in accordance with section 327 of the
Corporations Act 2001.
Exercise price
Number under rights
$0.000
$0.000
$0.000
$0.000
$0.000
225,806
80,645
80,645
112,903
241,935
741,934
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.
Forward looking
statements
This Financial Report includes certain
forward-looking statements that have
been based on current expectations about
future acts, events and circumstances.
These forward-looking statements are,
however, subject to risks, uncertainties
and assumptions that could cause those
acts, events and circumstances to differ
materially from the expectations described
in such forward-looking statements.
These factors include, among other things,
commercial and other risks associated
with the meeting of objectives and other
investment considerations, as well as other
matters not yet known to the Company or
not currently considered material by the
Company.
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
23 September 2021
Melbourne
28
[This page has intentionally been left
blank for the insertion of the auditor's
independence declaration]
29
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 Melbourne Victoria 3008 Correspondence to: GPO Box 4736 Melbourne VIC 3001 T +61 3 8320 2222 F +61 3 8320 2200 E info.vic@au.gt.com W www.grantthornton.com.au Auditor’s Independence Declaration To the Directors of 3D Oil Limited In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the audit of 3D Oil Limited for the year ended 30 June 2021, I declare that, to the best of my knowledge and belief, there have been: a no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and b no contraventions of any applicable code of professional conduct in relation to the audit. Grant Thornton Audit Pty Ltd Chartered Accountants D G Ng Partner – Audit & Assurance Melbourne, 23 September 2021 FI NA NCIAL
REP ORTS
30
CONSOLIDATED STATEMENT OF PROFIT
OR LOSS AND OTHER COMPREHENSIVE INCOME
For the year ended 30 June 2021
Other income
Interest income
Expenses
Corporate expenses
Employment expenses
Occupancy expenses
Depreciation and amortisation expense
Impairment of exploration assets
Exploration costs
Share based payments
Finance costs
Loss before income tax expense
Income tax expense
Consolidated
2020
$
75,873
9,406
2021
$
82,908
4,570
(451,925)
(572,794)
(563,528)
(471,800)
(43,954)
(34,427)
(118,136)
(110,207)
-
(1,886,343)
(33,088)
(9,072)
(9,870)
-
-
(15,773)
(1,142,095)
(3,006,065)
-
-
Note
5
6
14
14
6
7
Loss after income tax expense for the year attributable to the owners of 3D Oil Limited
(1,142,095)
(3,006,065)
Other comprehensive income for the year, net of tax
-
-
Total comprehensive income for the year attributable to the owners of 3D Oil Limited
(1,142,095)
(3,006,065)
Basic earnings per share
Diluted earnings per share
31
31
Cents
(0.43)
(0.43)
Cents
(1.13)
(1.13)
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes
31
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2021
Assets
Current assets
Cash and cash equivalents
Other receivables
Short term investments
Prepayments
Total current assets
Non-current assets
Property, plant and equipment
Right-of-use assets
Intangibles
Exploration and evaluation
Total non-current assets
Total assets
Liabilities
Current liabilities
Trade and other payables
Lease liabilities
Employee benefits
Total current liabilities
Non-current liabilities
Lease liabilities
Employee benefits
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Accumulated losses
Total equity
Note
Consolidated
2021
$
2020
$
8
9
10
11
12
13
14
15
20
16
20
17
3,048,802
5,077,191
31,752
93,577
41,924
8,216
93,577
39,447
3,216,055
5,218,431
16,525
79,156
76,641
14,031
165,496
74,068
5,374,599
4,546,537
5,546,921
4,800,132
8,762,976
10,018,563
820,345
96,614
231,912
934,177
102,039
148,269
1,148,871
1,184,485
-
4,585
4,585
85,705
5,830
91,535
1,153,456
1,276,020
7,609,520
8,742,543
18
55,483,678
55,483,678
9,072
-
(47,883,230)
(46,741,135)
7,609,520
8,742,543
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes
32
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 30 June 2021
Consolidated
Balance at 1 July 2019
Contributed
equity
Accumulated
losses
$
$
55,483,678
(43,740,935)
Adjustment from adoption of AASB 16
-
5,865
Balance at 1 July 2019 – restated
55,483,678
(43,735,070)
Reserves
Total equity
$
-
-
-
-
-
-
$
11,742,743
5,865
11,748,608
(3,006,065)
-
(3,006,065)
8,742,543
Reserves
Total equity
$
-
-
-
-
$
8,742,543
(1,142,095)
-
(1,142,095)
-
-
-
(3,006,065)
-
(3,006,065)
55,483,678
(46,741,135)
Contributed
equity
Accumulated
losses
$
$
55,483,678
(46,741,135)
(1,142,095)
-
(1,142,095)
-
-
-
-
Loss after income tax expense for the year
Other comprehensive income for the year, net of tax
Total comprehensive income for the year
Balance at 30 June 2020
Consolidated
Balance at 1 July 2020
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
Balance at 30 June 2021
-
9,072
9,072
55,483,678
(47,883,230)
9,072
7,609,520
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes
33
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 30 June 2021
Cash flows from operating activities
Payments to suppliers and employees (inclusive of GST)
Interest received
Interest on lease liabilities paid
COVID-19 incentives
Note
Consolidated
2021
$
2020
$
(1,132,676)
(1,058,349)
4,963
25,245
(9,870)
(12,353)
(1,137,583)
(1,045,457)
88,908
65,248
Net cash used in operating activities
30
(1,048,675)
(980,209)
Cash flows from investing activities
Payments for computer equipment
Payments for intangibles
Payments for exploration and evaluation
Proceeds from short term investments
Proceeds from farm-out arrangement
Net cash from/(used in) investing activities
Cash flows from financing activities
Payment of principal element of lease liabilities
Net cash used in financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
11
13
14
(6,862)
(30,001)
-
-
(851,721)
(726,453)
-
-
906,423
5,000,000
(888,584)
5,179,970
(91,130)
(57,028)
(91,130)
(57,028)
(2,028,389)
4,142,733
5,077,191
934,458
Cash and cash equivalents at the end of the financial year
8
3,048,802
5,077,191
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes
34
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
30 June 2021
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 23 September 2021. 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
INTERPRETATIONS
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.
The following Accounting Standards and
Interpretations are most relevant to the
Consolidated Entity:
21RU-005 Cloud
computing
arrangement costs
The IFRS® Interpretations Committee
(IFRIC) has issued two final agenda
decisions on cloud computing
arrangements. The March 2019 decision
considers whether a customer receives
a software asset at the contract
commencement date or a service over
the contract term. The April 2021 decision
builds on the 2019 decision and considers
how a customer accounts for configuration
or customisation costs where an intangible
asset is not recognised. These decisions
have no impact on the Consolidated
Entity's financial statements.
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
2021 of the Consolidated Entity results in an
excess of current assets over current liabilities
of $2,067,184 (30 June 2020: $4,033,946).
The Consolidated Entity made a loss after tax
of $1,142,095 during the financial year (2020
loss: $3,006,065) and had net operating cash
outflows of $1,048,675 (2020: $980,209).
The cash balances, including term deposits,
as at 30 June 2021 was $3,142,379 (2020:
$5,170,768). 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 as and when
required. To meet the Consolidated Entity's
funding requirements as and when they
fall due the Consolidated Entity 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 Consolidated Entity’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 Consolidated Entity.
In July and August 2021, the Australian
economy has experienced disruption
related to COVID-19 triggered Statewide
lockdowns across all major States including
New South Wales, Victoria and Queensland.
These lockdowns have caused disruption to
the broader business community and the
Australian mining and exploration industry's
operations have not been immune. There is
significant uncertainty around the breadth
and duration of business disruptions related
to COVID-19 and therefore the Consolidated
Entity has taken precautionary measures
by temporarily closing the Consolidated
Entity’s office and having arranged for the
employees to work remotely, as well as
curtailing travel.
Management believes that this will allow
the continuance of its current principal
business activities. At the date of this
report, the impact of these measures is
not expected to significantly impact the
completion of the activities currently
being undertaken. However, as the
circumstances continue to evolve, there
may be disruptions to future activities,
work timelines if employees, consultants
or their respective families are personally
impacted by COVID-19 or if travel and other
operational restrictions are not lifted.
Having 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. Based on the
aforementioned conclusions reached by
the Directors, the financial statements have
been prepared 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').
35
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 26.
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 2021 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
36
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.
INTEREST INCOME
Interest revenue is recognised as interest
accrues using the effective interest
method. This is a method of calculating
the amortised cost of a financial asset and
allocating the interest income over the
relevant period using the effective interest
rate, which is the rate that exactly discounts
estimated future cash receipts through the
expected life of the financial asset to the
net carrying amount of the financial asset.
Other revenue
Other revenue is recognised when it is
received or when the right to receive
payment is established.
INCOME TAX
The income tax expense or benefit for the
period is the tax payable on that period's
taxable income based on the applicable
income tax rate for each jurisdiction,
adjusted by the changes in deferred
tax assets and liabilities attributable to
temporary differences, unused tax losses
and the adjustment recognised for prior
periods, where applicable.
Deferred tax assets and liabilities are
recognised for temporary differences at the
tax rates expected to be applied when the
assets are recovered or liabilities are settled,
based on those tax rates that are enacted
or substantively enacted, except for:
— 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
CLASSIFICATION
Assets and liabilities are presented in the
statement of financial position based on
current and non-current classification.
An asset is classified as current when: it is
either expected to be realised or intended
to be sold or consumed in 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.
JOINT OPERATIONS
A joint operation is a joint arrangement
whereby the parties that have joint control
of the arrangement have rights to the assets,
and obligations for the liabilities, relating to
the arrangement. The Consolidated Entity
has recognised its share of jointly held
assets, liabilities, revenues and expenses
of joint operations. These have been
incorporated in the financial statements
under the appropriate classifications.
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; or
(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
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.
LEASES
At inception of a contract, the Consolidated
Entity assesses whether a contract is, or
contains, a lease. A contract is, or contains,
a lease if the contract conveys the right
to control the use of an identified asset
for a period of time in exchange for
consideration. To assess whether a contract
conveys the right to control the use of an
identified asset, the Consolidated Entity
assesses whether:
— The contract involves the use of an
identified asset – this may be specified
explicitly or implicitly and should
be physically distinct or represent
substantially all of the capacity of a
physically distinct asset. If the supplier
has a substantive substitution right, then
the asset is not identified;
— The Consolidated Entity has the
right to obtain substantially all of the
economic benefits from use of the asset
throughout the period of use; and
— The Consolidated Entity has the
right to direct the use of the asset.
The Consolidated Entity has this right
when it has the decision-making rights
that are most relevant to changing
how and for what purpose the asset is
used. In rare cases where the decision
about how and for what purpose the
asset is used is predetermined, the
Consolidated Entity has the right to
direct the use of the asset if either:
— The Consolidated Entity has the right
to operate the asset; or
— The Consolidated Entity designed the
asset in a way that predetermine how
and for what purpose it will be used.
This policy is applied to contracts entered
into, or changed, on or after 1 July 2019.
At inception or on reassessment of a
contract that contains a lease component,
the Consolidated Entity allocates the
consideration in the contract to each lease
component on the basis of their relative
stand-alone prices. However, for the
leases of land and buildings in which it is a
lessee, the Consolidated Entity has elected
not to separate non-lease components
and account for the lease and non-lease
components as a single lease component.
As a lessee
The Consolidated Entity recognises a
right-of-use asset and a lease liability at the
lease commencement date. The right-of-use
asset is initially measured at cost, which
comprises the initial amount of the lease
liability adjusted for any lease payments
made at or before the commencement date,
plus any initial direct costs incurred and an
estimate of costs to dismantle and remove
the underlying asset or to restore the
underlying asset or the site on which it is
located, less any lease incentives received.
The right-of-use asset is subsequently
depreciated using the straight-line method
from the commencement date to the earlier
of the end of the useful life of the right-of-
use asset or the end of the lease term. The
estimated useful lives of right-of-use assets
are determined on the same basis as those
of property and equipment. In addition, the
right-of-use asset is periodically reduced by
impairment losses, if any, and adjusted for
certain remeasurements of the lease liability.
The lease liability is initially measured at the
present value of the lease payments that
are not paid at the commencement date,
discounted using the interest rate implicit
in the lease or, if that rate cannot be readily
determined, the Consolidated Entity’s
incremental borrowing rate. Generally, the
Consolidated Entity uses its incremental
borrowing rate as the discount rate.
37
Lease payments included in the
measurement of the lease liability comprise
the following:
— Fixed payments, including in-substance
fixed payments;
— Variable lease payments that depend
on an index or a rate, initially measured
using the index or rate as at the
commencement date;
— Amounts expected to be payable under
a residual value guarantee; and
— The exercise price under a purchase
option that the Consolidated Entity is
reasonably certain to exercise, lease
payments in an optional renewal period
if the Consolidated Entity is reasonably
certain to exercise an extension option,
and penalties for early termination of a
lease unless the Consolidated Entity is
reasonably certain not to terminate early.
The lease liability is measured at amortised
cost using the effective interest method,
It is remeasured when there is a change
in future lease payments arising from
a change in an index or rate, if there is
a change in the Consolidated Entity’s
estimate of the amount expected to be
payable under a residual value guarantee,
or if the Consolidated Entity changes its
assessment of whether it will exercise a
purchase, extension or termination option.
When the lease liability is remeasured in this
way, a corresponding adjustment is made
to the carrying amount of the right-of-use
assets, or is recorded in profit or loss if the
carrying amount of the right-of-use asset
has been reduced to zero.
Short-term leases and
leases of low-value assets
The Consolidated Entity has elected not
to recognise right-of-use assets and lease
liabilities for short-term leases that have a
lease term of 12 months or less and leases
of low-value assets, including IT equipment.
The Consolidated Entity recognises the
lease payments associated with these
leases as an expense on a straight-line basis
over the lease term.
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.
38
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
MEASUREMENT
When an asset or liability, financial or
non-financial, is measured at fair value for
recognition or disclosure purposes, the fair
value is based on the price that would be
received to sell an asset or paid to transfer
a liability in an orderly transaction between
market participants at the measurement
date; and assumes that the transaction will
take place either: in the principal market; or
in the absence of a principal market, in the
most advantageous market.
Fair value is measured using the
assumptions that market participants
would use when pricing the asset or
liability, assuming they act in their
economic best interests. For non-financial
assets, the fair value measurement is based
on its highest and best use. Valuation
techniques that are appropriate in the
circumstances and for which sufficient
data are available to measure fair value,
are used, maximising the use of relevant
observable inputs and minimising the use
of unobservable inputs.
NEW ACCOUNTING
STANDARDS AND
INTERPRETATIONS NOT
YET MANDATORY OR
EARLY ADOPTED
Australian Accounting Standards and
Interpretations that have recently been
issued or amended but are not yet
mandatory, have not been early adopted
by the Consolidated Entity for the annual
reporting period ended 30 June 2021. The
Consolidated Entity has not yet assessed
the impact of these new or amended
Accounting Standards and Interpretations.
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.
Coronavirus (COVID-19)
pandemic
Judgement has been exercised in
considering the impacts that the
Coronavirus (COVID-19) pandemic has
had, or may have, on the Consolidated
Entity based on known information. This
consideration extends to the nature of the
products and services offered, customers,
supply chain, staffing and geographic
regions in which the Consolidated Entity
operates. Other than as addressed in
specific notes, there does not currently
appear to be either any significant impact
upon the financial statements or any
significant uncertainties with respect to
events or conditions which may impact the
Consolidated Entity unfavourably as at the
reporting date or subsequently as a result
of the Coronavirus (COVID-19) pandemic.
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 the Hoadley Trading
& Investment Tools (“Hoadley”) ESO5
option valuation 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.
Impairment of
non-financial assets
other than goodwill
and other indefinite
life intangible assets
The Consolidated Entity assesses
impairment of non-financial assets other
than goodwill and other indefinite life
intangible assets at each reporting date
by evaluating conditions specific to the
Consolidated Entity and to the particular
asset that may lead to impairment. If an
impairment trigger exists, the recoverable
amount of the asset is determined. This
involves fair value less costs of disposal or
value-in-use calculations, which incorporate
a number of key estimates and assumptions.
Income tax
The Consolidated Entity is subject to
income taxes in the jurisdictions in which
it operates. Significant judgement is
required in determining the provision for
income tax. There are many transactions
and calculations undertaken during the
ordinary course of business for which the
ultimate tax determination is uncertain.
The Consolidated Entity recognises
liabilities for anticipated tax audit issues
based on the Consolidated Entity's current
understanding of the tax law. Where the
final tax outcome of these matters is
different from the carrying amounts, such
differences will impact the current and
deferred tax provisions in the period in
which such determination is made.
Recovery of deferred
tax assets
Deferred tax assets are recognised for
deductible temporary differences only
if the Consolidated Entity considers it is
probable that future taxable amounts will
be available to utilise those temporary
differences and losses.
Lease term
The lease term is a significant component
in the measurement of both the right-of-
use asset and lease liability. Judgement
is exercised in determining whether
there is reasonable certainty that an
option to extend the lease or purchase
the underlying asset will be exercised,
or an option to terminate the lease will
not be exercised, when ascertaining the
periods to be included in the lease term.
In determining the lease term, all facts and
circumstances that create an economical
incentive to exercise an extension
option, or not to exercise a termination
option, are considered at the lease
commencement date. Factors considered
may include the importance of the asset
to the Consolidated Entity's operations;
comparison of terms and conditions to
prevailing market rates; incurrence of
significant penalties; existence of significant
leasehold improvements; and the costs
and disruption to replace the asset. The
Consolidated Entity reassesses whether it is
reasonably certain to exercise an extension
option, or not exercise a termination option,
if there is a significant event or significant
change in circumstances.
Incremental borrowing rate
Where the interest rate implicit in a
lease cannot be readily determined, an
incremental borrowing rate is estimated to
discount future lease payments to measure
the present value of the lease liability at
the lease commencement date. Such a rate
is based on what the Consolidated Entity
estimates it would have to pay a third party
to borrow the funds necessary to obtain
an asset of a similar value to the right-of-
use asset, with similar terms, security and
economic environment.
Employee benefits
provision
As discussed in note 2, the liability for
employee benefits expected to be settled
more than 12 months from the reporting
date are recognised and measured
at the present value of the estimated
future cash flows to be made in respect
of all employees at the reporting date.
In determining the present value of the
liability, estimates of attrition rates and pay
increases through promotion and inflation
have been taken into account.
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. Significant
judgement is required by management
when assessing each of area of interest and
therefore management's judgement carries
the risk of been misstated.
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 in this financial
statements 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.
39
NOTE 5. OTHER INCOME
COVID-19 incentives
COVID-19 incentives represent the job
keeper and cash flow boost payments
received from Federal Government in
response to ongoing novel coronavirus
(COVID-19) pandemic. Government grants
are recognised in the financial statements
at expected values or actual cash received
when there is a reasonable assurance that
the Consolidated Entity will comply with
the requirements and that the grant will
be received. The Consolidated Entity has
recognised its share of revenues, expenses
and expenses reimbursements of joint
operations, which give rise to job keeper
payments, within exploration assets in the
financial statements.
NOTE 6. EXPENSES
Loss before income tax includes the following specific expenses:
Depreciation
Plant and equipment
Right-of-use assets
Total depreciation
Amortisation
Software
Total depreciation and amortisation
Post-employment benefit plans – Superannuation contributions
Employment entitlements
Consolidated
2021
$
2020
$
82,908
75,873
Consolidated
2021
$
2020
$
(4,368)
(3,769)
(86,340)
(86,346)
(90,708)
(90,115)
(27,428)
(20,092)
(118,136)
(110,207)
(26,306)
(29,106)
(541,909)
(442,694)
(568,215)
(471,800)
Finance costs
Interest and finance charges paid/payable on lease liabilities
(9,870)
(15,773)
40
NOTE 7. 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 26% (2020: 27.5%)
Tax effect amounts which are not deductible/(taxable) in calculating taxable income:
Entertainment expenses
Impairment of exploration assets
Share-based payments
Prior year under/over adjustment
Amounts not brought to account as deferred tax assets
Non-assessable non-exempt income – cashflow boost
Proceeds from farm-out arrangement tax at statutory tax rates
Previously unrecognised DTA now brought to account
Income tax expense
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, VIC/P74, T/49P and
WA-527-P, attach to the permit and can
be carried forward. Certain specified un-
deducted 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
includes 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
2021
$
2020
$
(1,142,095)
(3,006,065)
(296,945)
(826,668)
949
-
2,359
2,986
1,037
518,744
-
-
290,651
293,137
-
-
-
-
-
13,750
-
1,375,000
(1,375,000)
-
The Company has not recognised a
deferred tax asset with respect to the
carried forward un-deducted expenditure.
Consolidated
2021
$
2020
$
15,247,233
15,887,558
15,247,233
15,887,558
41
NOTE 8. CURRENT ASSETS – CASH AND CASH EQUIVALENTS
Cash at bank
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
2021
$
2020
$
3,048,802
5,077,191
NOTE 9. CURRENT ASSETS – OTHER RECEIVABLES
Consolidated
2020
$
6,000
865
1,351
2021
$
23,659
472
7,621
31,752
8,216
Other receivables
Interest receivable
GST receivable
Other receivables represent reimbursement
of venture costs by joint venture partners.
No interest is charged on the receivables.
The Consolidated Entity has financial risk
management policies in place to ensure
that all receivables are received within the
credit timeframe. Due to the short-term
nature of these receivables, their carrying
value is assumed to be approximate to their
fair value.
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 expected
credit losses. Trade receivables are generally
due for settlement within 30 days.
Other receivables are recognised at
amortised cost, less any allowance for
expected credit losses.
NOTE 10. 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
2021
$
2020
$
93,577
93,577
42
NOTE 11. NON-CURRENT ASSETS –
PROPERTY, PLANT AND EQUIPMENT
Furniture and equipment – at cost
Less: Accumulated depreciation
Computer equipment – at cost
Less: Accumulated depreciation
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 2019
Depreciation expense
Balance at 30 June 2020
Additions
Depreciation expense
Balance at 30 June 2021
Consolidated
2021
$
2020
$
184,083
184,083
(184,083)
(184,083)
-
-
25,708
(9,183)
16,525
18,845
(4,814)
14,031
16,525
14,031
Computer
equipment
$
17,800
(3,769)
14,031
6,862
(4,368)
Total
$
17,800
(3,769)
14,031
6,862
(4,368)
16,525
16,525
Accounting policy for
furniture, computer and
equipment
Furniture and computer equipment are
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:
Computer and equipment
3-7 years
The residual values, useful lives and
depreciation methods are reviewed,
and adjusted if appropriate, at each
reporting date.
43
NOTE 12. NON-CURRENT ASSETS – RIGHT-OF-USE ASSETS
The Consolidated Entity has lease
arrangements for office space. Rental
contracts are typically made for fixed
periods of 12 to 36 months but may
have an extension option. This note
provides information for leases where the
Consolidated Entity is a lessee.
Lease terms are negotiated on an individual
basis and may contain a wide range of
different terms and conditions. The lease
agreements do not impose any covenants
other than the security interests in the
leased assets that are held by the lessor.
Leased assets may not be used as security
for borrowing purposes.
Consolidated
2021
$
2020
$
251,842
251,842
(172,686)
(86,346)
79,156
165,496
$
251,842
(86,346)
165,496
(86,340)
Total
$
251,842
(86,346)
165,496
(86,340)
79,156
79,156
Reconciliations
Reconciliations of the written down values
at the beginning and end of the current and
previous financial year are set out below:
Office space- right-of-use
Less: Accumulated depreciation
Refer note 20 to these financial statements
for the current and non-current lease
liabilities. Depreciation expenses of right
of use assets and finance charges on lease
liabilities are presented in note 6 to the
financial statements.
The Consolidated Entity had no short-term
lease arrangements during the year ended
30 June 2021.
Consolidated
Balance at 1 July 2019
Depreciation expense
Balance at 30 June 2020
Depreciation expense
Balance at 30 June 2021
Accounting policy for
right-of-use assets
A right-of-use asset is recognised at the
commencement date of a lease. The
right-of-use asset is measured at cost,
which comprises the initial amount of the
lease liability, adjusted for, as applicable,
any lease payments made at or before
the commencement date net of any lease
incentives received, any initial direct costs
incurred, and, except where included in the
cost of inventories, an estimate of costs
expected to be incurred for dismantling
and removing the underlying asset, and
restoring the site or asset.
Right-of-use assets are depreciated on a
straight-line basis over the unexpired period
of the lease or the estimated useful life of
the asset, whichever is the shorter. Where
the Consolidated Entity expects to obtain
ownership of the leased asset at the end of
the lease term, the depreciation is over its
estimated useful life. Right-of use assets are
subject to impairment or adjusted for any
remeasurement of lease liabilities.
The Consolidated Entity has elected not
to recognise a right-of-use asset and
corresponding lease liability for short-term
leases with terms of 12 months or less and
leases of low-value assets. Lease payments
on these assets are expensed to profit or
loss as incurred.
44
NOTE 13. 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 2019
Amortisation expense
Balance at 30 June 2020
Additions
Amortisation expense
Balance at 30 June 2021
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.
NOTE 14. NON-CURRENT ASSETS –
EXPLORATION AND EVALUATION
Exploration and evaluation expenditure
Less: Impairment
Consolidated
2021
$
2020
$
364,791
334,790
(288,150)
(260,722)
76,641
74,068
Software
$
Total
$
94,160
94,160
(20,092)
(20,092)
74,068
30,001
74,068
30,001
(27,428)
(27,428)
76,641
76,641
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.
Consolidated
2021
$
2020
$
5,374,599
6,432,880
-
(1,886,343)
5,374,599
4,546,537
45
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 2019
Expenditure during the year
Area of
interest
VIC / P57
Area of
interest
T49P
Area of
interest
VIC/P74
Area of
interest
WA-527-P
$
$
1,870,088
8,440,582
$
-
Total
$
$
425,217
10,735,887
16,255
152,245
185,709
342,784
696,993
Impairment of exploration assets
(1,886,343)
-
(5,000,000)
-
-
-
-
(1,886,343)
(5,000,000)
3,592,827
424,751
185,709
339,241
768,001
4,546,537
64,070
828,062
4,017,578
524,950
832,071
5,374,599
-
-
-
-
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.
Exploration and evaluation
costs expensed
Upon completion of the to the
aforementioned impairment review, it was
concluded that area of interest VIC/P57
currently will not generate future economic
benefits as a result of which exploration
costs of $33,088 incurred were immediately
expensed in the statement of profit or loss
and other comprehensive income in the
year ended 30 June 2021.
Proceeds from farm-out arrangement
Balance at 30 June 2020
Additions
Balance at 30 June 2021
The exploration and evaluation assets
relate to VIC/P74, an offshore project in
the Gippsland Basin in Victoria, T/49P
which is an offshore project in the Otway
Basin in Tasmania and WA-527-P in
Western Australia. The recoverability of the
exploration and evaluation expenditure's
carrying amounts is dependent on the
successful development and commercial
exploitation, or alternatively the farm-out
or sale, of the respective areas of interest.
Area of interest VIC/P57 is an offshore
project in the Gippsland Basin in Victoria
which was written down to a carrying
amount of nil as of 30 June 2020.
The Consolidated Entity has carried out
an impairment review of the carrying
amount of its exploration expenditure in
relation to VIC/P74, T/49P and WA-527-P
following the end of the financial year as
at 30 June 2021. Based on the review no
impairments were identified in relation to
these tenements.
Farm-out 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. Please refer to note 28 for further
information on the Consolidated Entity’s
farm-out arrangements.
46
NOTE 15. CURRENT LIABILITIES –
TRADE AND OTHER PAYABLES
Trade payables
Research and development tax grant
Sundry payables and accrued expenses
The Research and development tax grant
relates to an R&D tax incentive refund
received during the financial year ended
30 June 2012. The Company had received a
notification that AusIndustry had reversed
this claim, and hence this amount is carried
as a liability.
Refer to note 21 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.
Consolidated
2020
$
150,649
695,894
87,634
2021
$
54,467
695,894
69,984
820,345
934,177
NOTE 16. CURRENT LIABILITIES – EMPLOYEE BENEFITS
Annual leave
Long service leave
Employee benefits
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
2021
$
2020
$
58,076
22,145
136,956
126,124
36,880
-
231,912
148,269
47
NOTE 17. NON-CURRENT LIABILITIES –
EMPLOYEE BENEFITS
Long service leave
Consolidated
2021
$
2020
$
4,585
5,830
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.
NOTE 18. EQUITY – ISSUED CAPITAL
2021
Shares
2020
Shares
Consolidated
2021
$
2020
$
Ordinary shares – fully paid
265,188,372
265,188,372
55,483,678
55,483,678
NOTE 19. 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.
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.
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 2020
Annual Report.
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.
48
NOTE 20. LEASE LIABILITIES
Lease liabilities
Current
Non-current
Right of use lease assets note 12
Lease liability maturity
analysis – contractual
undiscounted cash flows
Less than one year
Two to five years
Total undiscounted lease liabilities
Lease liability finance costs
During the year ended 30 June 2021, the
Consolidated Entity incurred interest
charges of $9,870, as disclosed in note 6.
Lease liability outflows
Lease liability related cash outflows are
disclosed in the statement of cashflows.
Consolidated
2021
$
2020
$
96,614
102,039
-
85,705
96,614
187,744
Consolidated
2021
$
2020
$
79,156
165,496
Consolidated
2021
2020
96,614
112,246
-
91,711
96,614
203,957
Lease liabilities are measured at amortised
cost using the effective interest method.
The carrying amounts are remeasured if
there is a change in the following: future
lease payments arising from a change in
an index or a rate used; residual guarantee;
lease term; certainty of a purchase option
and termination penalties. When a lease
liability is remeasured, an adjustment is
made to the corresponding right-of use
asset, or to profit or loss if the carrying
amount of the right-of-use asset is fully
written down.
Accounting policy for
lease liabilities
A lease liability is recognised at the
commencement date of a lease. The lease
liability is initially recognised at the present
value of the lease payments to be made
over the term of the lease, discounted using
the interest rate implicit in the lease or, if
that rate cannot be readily determined,
the Consolidated Entity's incremental
borrowing rate. Lease payments comprise
of fixed payments less any lease incentives
receivable, variable lease payments that
depend on an index or a rate, amounts
expected to be paid under residual value
guarantees, exercise price of a purchase
option when the exercise of the option
is reasonably certain to occur, and any
anticipated termination penalties. The
variable lease payments that do not
depend on an index or a rate are expensed
in the period in which they are incurred.
49
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.
The Consolidated Entity manages liquidity
risk by maintaining adequate cash
reserves and available borrowing facilities
by continuously monitoring actual and
forecast cash flows and matching the
maturity profiles of financial assets and
liabilities.
Remaining contractual
maturities
The following tables detail the Consolidated
Entity's remaining contractual maturity
for its financial instrument liabilities. The
tables have been drawn up based on
the undiscounted cash flows of financial
liabilities based on the earliest date on
which the financial liabilities are required
to be paid. The tables include both interest
and principal cash flows disclosed as
remaining contractual maturities and
therefore these totals may differ from
their carrying amount in the statement of
financial position.
NOTE 21. 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. The
transactions and balances denominated
in US dollars are not material to these
financial statements.
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 2021 was $0.6878 (30 June
2020: $0.6878).
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.
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.
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.
50
Consolidated – 2021
Non-derivatives
Non-interest bearing
Trade and other payables
Interest-bearing – variable
Lease liability
Total non-derivatives
Consolidated – 2020
Non-derivatives
Non-interest bearing
Trade and other payables
Interest-bearing – variable
Lease liability
Between
1 and 2 years
Between
2 and 5 years
Over 5 years
Weighted
average
interest rate
%
-
1 year or less
$
820,345
7.50%
96,614
916,959
-
934,177
$
-
-
-
-
Remaining
contractual
maturities
$
820,345
96,614
916,959
934,177
203,957
1,138,134
$
-
-
-
-
-
-
$
-
-
-
-
-
-
Total non-derivatives
1,046,423
91,711
7.50%
112,246
91,711
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. Where
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.
NOTE 22. KEY MANAGEMENT PERSONNEL DISCLOSURES
Directors
The following persons were Directors of
3D Oil Limited during the financial year:
Mr Noel Newell
Mr Ian Tchacos
Mr Leo De Maria
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
Long-term benefits
Consolidated
2021
$
2020
$
485,041
437,427
29,697
9,946
31,278
14,414
524,684
483,119
51
NOTE 23. 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
Consolidated
2021
$
2020
$
Audit or review of the financial statements
55,000
53,500
NOTE 24. COMMITMENTS
Exploration Licenses – Commitments for Expenditure
Committed at the reporting date but not recognised as liabilities, payable:
Within one year
One to five years
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
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.
On 8 October 2020, NOPTA approved
Hibiscus Petroleum Berhad to enter into
a Joint Venture with the Company in the
offshore Gippsland Basin exploration permit
VIC/P74, in which the Company remains the
operator with 50% equity. The Company has
included in in the above commitments its
share of indicative expenditure relating to
VIC/P74 up to year 3. Commitments from
year 4 onwards are confirmed on a year-
by-year basis dependent on the Company
agreeing to proceed. If the Company was
to proceed beyond year 4 in relation to
VIC/P74, the current indicative expenditure
commitment for Years 4-6 is currently gross
$42.1 million, and this would be occurring in
2022-2025 years.
In relation to VIC/P57, the joint venture
applied to NOPTA in September 2017 for a
further 5 year tenure, which was granted on
7 March 2018. The program includes minor
but high impact and carefully designed
work commitments including state-of-the-
art reprocessing of the 3D seismic data
covering the permit. During the year ended
30 June 2021, the Joint Venture received
approval for a 12 Month Suspension and
Extension to the Primary Term of VIC/P57,
which will now expire on 6 March 2022.
If the Company was to proceed beyond
year 3 in relation to VIC/P57, the current
indicative expenditure commitment for
Years 4-5 is currently gross $31.3 million and
this would be occurring in 2022-2023 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 3. Commitments
from year 4 onwards are confirmed on
a year-by-year basis dependent on the
Company agreeing to proceed. If the
Company was to proceed beyond year 4 in
relation to WA-527-P, the current indicative
expenditure commitment for Years 4-6 is
currently gross $30.8 million and this would
be occurring in 2022-2023 years.
Consolidated
2021
$
2020
$
3,060,000
544,133
-
1,066,667
3,060,000
1,610,800
The commitments above does not include
commitments for indicative expenditure
relating to Exploration Permit T49P, as they
are expected to be covered by the farm-in
partner, ConocoPhillips Australia Pty Ltd
(COP), as per JOA. Under the terms of
JOA, TDO will contribute 10% of the joint
operation expenses until ConocoPhillips
Australia has completed an exploration
well or spent at least US$30 million toward
drilling of an exploration well.
During the March 2021 quarter, the
joint venture was awarded a 30-month
Suspension and Extension on the Year 5
permit commitments, allowing up until 21
August 2023 to complete the Year 5 work
programme. Upon interpretation of the 3D
seismic survey, COP may elect to drill an
exploration well which will fulfill the current
Year 6 work programme.
52
NOTE 25. RELATED PARTY TRANSACTIONS
Parent entity
3D Oil Limited is the parent entity.
Subsidiaries
Interests in subsidiaries are set out in note 27.
Joint operations
Interests in joint operations are set out in
note 28.
Key management
personnel
Disclosures relating to key management
personnel are set out in note 22 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.
NOTE 26. 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
2021
$
Parent
2020
$
(1,142,047)
(3,003,234)
(1,142,047)
(3,003,234)
2021
$
Parent
2020
$
3,123,331
5,125,658
5,976,850
7,267,372
1,113,888
1,184,485
1,118,473
1,276,020
55,483,678
55,483,678
9,072
-
(50,634,373)
(49,492,326)
4,858,377
5,991,352
53
— Significant estimates and judgement –
recoverability of loan to subsidiary.
No objective indicators of impairment
as the current best estimates of potential
resources indicate a quantity of oil/gas
that would allow recovery of the amount
due in full.
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 2021 and 30 June 2020.
Contingent liabilities
The parent entity had no contingent
liabilities as at 30 June 2021 and
30 June 2020.
Capital commitments –
Property, plant and
equipment
The parent entity had no capital
commitments for property, plant and
equipment as at 30 June 2021 and
30 June 2020.
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.
NOTE 27. 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
3D Oil T49P Pty Ltd
Principal place of business / Country of incorporation
Australia
NOTE 28. INTERESTS IN JOINT OPERATIONS
The Consolidated Entity has recognised
its share of jointly held assets, liabilities,
revenues and expenses of joint operations.
These have been incorporated in the
financial statements under the appropriate
classifications. Information relating to
joint operations that are material to the
Consolidated Entity are set out below:
Name
Principal place of business / Country of incorporation
T/49P, Otway Basin, offshore Tasmania
Australia
VIC/P74, Gippsland Basin, offshore Victoria*
Australia
VIC/P57, Gippsland Basin, offshore Victoria
Australia
Ownership interest
2021
%
2020
%
100.00%
100.00%
Ownership interest
2021
%
20.00%
50.00%
24.90%
2020
%
20.00%
100.00%
24.90%
*On 9 October 2020, the Consolidated Entity announced that the NOPTA approved Hibiscus Petroleum Berhad to enter a Joint Venture with TDO
in the offshore Gippsland Basin exploration permit VIC/P74. Under the terms of the Assignment Agreement, TDO will remain as operator with
50% equity.
54
NOTE 29. EVENTS AFTER THE REPORTING PERIOD
In accordance with the announcement
of 1 March 20121, the Consolidated
Entity announced on 11 August 2021 that
ConocoPhillips Australia SH1 Pty Ltd
(“ConocoPhillips Australia”) as operator of
the T/49P joint venture with TDO’s wholly
owned subsidiary, 3D Oil T49P Pty Ltd, will
commence acquisition of the Sequoia MSS
3D seismic survey using the Shearwater
vessel the Geo Coral.
The survey is planned to cover an area of
approximately 2,500 km2 with the seismic
survey acquisition estimated to take
approximately 60 days between the middle
of August and the end of October 2021.
ConocoPhillips Australia is the operator
of the T/49P joint venture with an 80%
interest in the T/49P Permit, the Company
having the remaining 20% interest.
Under the terms of the Farmout
Agreement, ConocoPhillips Australia was
to acquire a minimum of 1580 km2 of 3D
seismic at no expense to the Company
(TDO ASX Announcement 11 June 2020).
The proposed increase in size of the
acquisition area will provide coverage of
all leads within the T/49P Permit and tie in
with the previously acquired Flanagan 3D
seismic survey.
No other matter or circumstance has arisen
since 30 June 2021 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 30. 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
Forgiveness of lease payments
Accrued interest
Change in operating assets and liabilities:
Decrease in other receivables
Increase in prepayments
Decrease in trade and other payables
Increase in employee benefits
Net cash used in operating activities
NOTE 31. LOSS PER SHARE
Consolidated
2021
$
2020
$
(1,142,095)
(3,006,065)
118,136
110,207
9,072
-
-
-
-
1,886,343
(4,625)
3,420
123
(2,477)
(113,832)
82,398
22,118
(1,046)
(8,737)
18,176
(1,048,675)
(980,209)
Consolidated
2021
$
2020
$
Loss after income tax attributable to the owners of 3D Oil Limited
(1,142,095)
(3,006,065)
Weighted average number of ordinary shares used in calculating basic loss per share
Number
Number
265,188,372
265,188,372
Weighted average number of ordinary shares used in calculating diluted loss per share
265,188,372
265,188,372
Basic earnings per share
Diluted earnings per share
Cents
(0.43)
(0.43)
Cents
(1.13)
(1.13)
55
Accounting policy for
earnings loss per share
Basic loss per share
Basic loss per share is calculated by
dividing the loss 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 loss per share
Diluted loss per share adjusts the figures
used in the determination of basic loss 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 32. SHARE-BASED PAYMENTS
On 17 November 2020, the Company
issued 225,806 performance rights
to Directors and on 15 February 2021,
516,128 performance rights to employees.
The performance rights issued to the
Company's Directors have an exercise price
of nil, a share price hurdle of $0.09
(9 cents), vesting date of 17 November 2022
and expire on 17 November 2023.
The performance rights issued to the
Company's employees in February 2021
have an exercise price of nil, a share price
hurdle of $0.09 (9 cents), a vesting date
of 17 November 2022 and expire 3 years
following the grant date.
Exercise
price
$0.000
$0.000
$0.000
$0.000
$0.000
Balance
at the start
of the year
Granted
Exercised
Expired/
forfeited/
other
Balance
at the end
of the year
-
-
-
-
-
-
225,806
80,645
80,645
112,903
241,935
741,934
-
-
-
-
-
-
-
-
-
-
-
-
225,806
80,645
80,645
112,903
241,935
741,934
Share price
at grant date
Exercise
price
Expected
volatility
Dividend
yield
Risk-free
interest rate
Fair value
at grant date
$0.056
$0.057
$0.055
$0.055
$0.054
$0.000
$0.000
$0.000
$0.000
$0.000
80.000%
80.000%
80.000%
80.000%
80.000%
-
-
-
-
-
0.110%
0.105%
0.105%
0.105%
0.105%
$0.045
$0.054
$0.054
$0.054
$0.054
2021
Grant date
Expiry date
17/11/2020
17/11/2023
28/01/2021
28/01/2024
29/01/2021
29/01/2024
01/02/2021
01/02/2024
11/02/2021
11/02/2024
For the performance rights issued during
the current financial year, the valuation
model inputs used to determine the fair
value at the grant date, are as follows:
Grant date
Expiry date
17/11/2020
17/11/2023
28/01/2021
28/01/2024
29/01/2021
29/01/2024
01/02/2021
01/02/2024
11/02/2021
11/02/2024
The weighted average remaining
contractual life of performance rights
at 30 June 2021 is 2.53 years.
56
An additional expense is recognised, over
the remaining vesting period, for any
modification that increases the total fair
value of the share-based compensation
benefit as at the date of modification.
If the non-vesting condition is within
the control of the Consolidated Entity
or employee, the failure to satisfy the
condition is treated as a cancellation. If
the condition is not within the control of
the Consolidated Entity or employee and
is not satisfied during the vesting period,
any remaining expense for the award is
recognised over the remaining vesting
period, unless the award is forfeited.
If equity-settled awards are cancelled,
it is treated as if it has vested on the
date of cancellation, and any remaining
expense is recognised immediately. If a
new replacement award is substituted for
the cancelled award, the cancelled and
new award is treated as if they were a
modification.
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
the Hoadley Trading & Investment Tools
(“Hoadley”) ESO5 option valuation model.
The option pricing model that takes into
account the exercise price, the share hurdle
price, 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.
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.
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.
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 2021 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
23 September 2021
Melbourne
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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 controlled entities (the Consolidated Entity), which comprises the consolidated statement of financial position as at 30 June 2021, the consolidated statement of profit or loss and other comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, 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 Consolidated Entity’s financial position as at 30 June 2021 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 Consolidated Entity 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. [This page has intentionally been left
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59
2 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. Key audit matter How our audit addressed the key audit matter Exploration and Evaluation Assets – valuation (Note 14) As all of the tenements held by 3D Oil Limited and its controlled entities (the Consolidated Entity) are in the exploration stage, qualifying exploration expenditure is capitalised in accordance with Australian Accounting Standard AASB 6 Exploration for and Evaluation of Mineral Resources. The Consolidated Entity 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. 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 management’s 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; • Assessing management's treatment of the Joint Operating Agreement entered into during the period; • Evaluating management's assessment of impairment indicators for the Consolidated Entity's capitalised exploration assets under AASB 6 by: o assessing whether the period for the right to explore the areas of interest has not expired or will not expire in the near future without an expectation of renewal; o making enquires of management regarding their intentions to carry out exploration and evaluation activity in the relevant exploration area, including review of managements’ budgeted expenditure; o Obtaining an understanding as to 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; o Considering any other available evidence of impairment. • Assessing management’s consequent determination of impairment loss; and • Evaluating related financial statement disclosures. This page has intentionally been left blank
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3 Key audit matter How our audit addressed the key audit matter Going concern (Note 2) 3D Oil Limited and its controlled entities (the Consolidated Entity) made a loss after tax of $1.1m for the year ended 30 Jun 2021. The working capital position of the Consolidated Entity was $2.0m at 30 June 2021 as an excess of current assets over current liabilities. The cash and cash equivalents reduced from $5.2m at 30 June 2020 to $3.1m at 30 June 2021 as a result of $1.2m of operating expenses and $0.8m of capitalised exploration and evaluation expenditures. The Consolidated Entity is in the exploration and evaluation phase and therefore does not generate revenue from its operations and relies on funding from its shareholders or other sources to continue as a going concern. These funds are used to meet expenditure requirements to maintain the good standing of the Consolidated Entity’s tenements, progress project feasibility studies, and to cover corporate overheads. Under AASB 101: Presentation of Financial Statements the Directors of the Consolidated Entity are required to assess the appropriateness of the preparation of the financial report on a going concern basis. The Consolidated Entity has prepared cash flow projections which include a number of assumptions and judgements, including estimates of project and administrative expenditure. These projections are used to support the sufficiency of working capital. This area is a key audit matter due to its importance to the financial report and the level of judgement involved. Our procedures included, amongst others: • Assessing the going concern assumptions for reasonableness by discussing with management and reviewing board minutes; • Obtaining and evaluating a copy of management’s cash-flow forecast for mathematical accuracy and assessing whether it appears the current cash levels can sustain the operations of the Consolidated Entity for the 12 month period from date of signing of the financial statements; • Assessing the inputs and assumptions used by management in the cash flow forecasts for reasonableness and consistency and minimum exploration expenditure required under existing permits; • Considering the impact of any subsequent events on the going concern assessment; and • Evaluating 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 Consolidated Entity’s annual report for the year ended 30 June 2021, 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. 61
4 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 Consolidated Entity’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. https://www.auasb.gov.au/auditors_responsibilites/ar1_2020.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 24 to 27, of the Directors’ report for the year ended 30 June 2021. In our opinion, the Remuneration Report of 3D Oil Limited, for the year ended 30 June 2021 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 D G Ng Partner – Audit & Assurance Melbourne, 23 September 2021 SHAREHOLDER INFORMATION
The shareholder information set out below
was applicable as at 10 September 2021.
Distribution of equitable
securities
Analysis of number of equitable security
holders by size of holding:
Number
Number
of holders
of ordinary
shares
of
ordinary
shares units
% of
ordinary
shares
of holders of
performance
rights
of
performance
rights
% of
performance
rights
1 to 1,000
1,001 to 5,000
5,001 to 10,000
10,001 to 100,000
100,001 and over
49
121
128
457
275
15,444
399,282
1,102,823
19,138,031
0.01
0.15
0.42
7.22
244,532,792
92.20
1,030
265,188,372
100.00
Holding less than a marketable parcel
240
937,549
0.35
-
-
-
4
3
7
-
-
-
-
274,193
467,741
-
-
-
36.96
63.04
741,934
100.00
-
-
62
Equity security holders
Twenty largest quoted
equity security holders
The names of the twenty largest security
holders of quoted equity securities are
listed below:
MR NOEL NEWELL
OCEANIA HIBISCUS SDN BHD\C
BILL HOPPER
SANLIRRA PTY LTD
CITICORP NOMINEES PTY LIMITED
BLAMNCO TRADING PTY LTD
BNP PARIBAS NOMINEES PTY LTD SIX SIS LTD
NORTHERN BUSINESS PLANNING CENTRE PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED – A/C 2
PENGOLD PTY LTD
MR TAI TRAN
VIN NAIDU + WENDY NAIDU
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
MR JOHN PHILIP DANIELS
MR GIOVANNI MONTELEONE + MRS FRANCES MONTELEONE
MR RUSSELL BARWICK
EILIE SUNSHINE PTY LTD
SANLIRRA PTY LTD
MICLON PTY LTD
MR VINCENZO MONTELEONE
Unquoted equity securities
Performance rights over ordinary shares issued
Substantial holders
Substantial holders in the Company are set out below:
NOEL NEWELL
OCEANIA HIBISCUS SDN BHD\C
Ordinary shares
% of total
shares issued
14.56
11.68
2.44
2.11
2.07
1.89
1.79
1.69
1.63
1.40
1.24
1.07
1.01
0.99
0.96
0.94
0.94
0.87
0.81
0.75
Number held
38,604,620
30,963,000
6,475,000
5,600,000
5,500,348
5,000,000
4,755,500
4,485,616
4,322,740
3,714,000
3,300,000
2,837,500
2,670,863
2,626,150
2,550,000
2,500,000
2,500,000
2,300,000
2,146,348
2,000,000
134,851,685
50.84
Number
on issue
741,934
Number
of holders
7
Ordinary shares
% of total
shares issued
16.66
11.68
Number held
44,192,229
30,963,000
63
Voting rights
The voting rights attached to ordinary
shares are set out below:
Ordinary shares
All issued shares carrying voting rights on a
one-for-one basis.
Performance rights
There are no voting rights attached
to performance rights
There are no other classes of
equity securities.
Corporate Governance
Statement
The Company’s 2021 Corporate Governance
Statement is available on the Company’s
website at: https://www.3doil.com.au/
about/corporate-governance
Annual General Meeting
3D Oil Limited advises that its Annual
General Meeting will be held on Monday,
15 November 2021. 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
ASX in due course. In accordance with
the ASX Listing Rules and the Company’s
Constitution, the closing date for receipt
of nominations for the position of
Director are required to be lodged at
the registered office of the Company by
5.00pm (AEST) on 4 October 2021.
CORPORATE DIRECTORY
Auditor
Grant Thornton Audit Pty Ltd
Collins Square Tower 5
727 Collins Street
Melbourne, Victoria 3008
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
Directors
Noel Newell (Executive Chairman)
Ian Tchacos (Non-Executive Director)
Leo De Maria (Non-Executive Director)
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
Telephone: (03) 9650 9866
Share register
Computershare Investor Services
Pty Limited
452 Johnston Street
Abbotsford, Victoria 3067
Telephone: (03) 9415 5000
64