Annual Report 2023
On the move
3D Oil has established a pathway
towards a commercial gas discovery
with Joint Venturer ConocoPhillips
Australia, in what has been one of our
most exciting years yet.
Noel Newell, Executive Chairman
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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The 3D Oil Vision
Our Purpose
To provide energy solutions to our local
communities through collaboration and
consultation resulting in reliable, affordable
and sustainable energy.
Our Values
Integrity
We act ethically and honestly; staying true to our values;
and accountable for our actions
Awareness
We take account of all identified key issues in our decisions;
and considering future impacts
Professionalism
We strive to achieve the highest standards in excellence
in all facets of our activities.
Teamwork and Collaboration
We foster teamwork both within the Company
and externally; listening to external stakeholders;
and building long term relationships
Our Vision
Our aim is to enable the development Australia’s gas and
oil opportunities in support of Australia’s current and future
energy needs. We seek to leverage our strong technical
expertise and local knowledge to enhance value of energy
projects for the benefit of our shareholders and the
communities in which we operate.
Safety
We are committed to providing and maintaining a safe and
non-discriminatory working environment to safeguard the
health and safety of our employees, consultants, and others.
Creativity
As an organization we continually encourage a culture
where innovation can be explored. We are agile: do what
we say we are going to do; and bring focus to every project.
Responsibility
We respect each other, our communities, and the environment
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Executive Chairman’s
Letter to Shareholder
3D Oil has now completed two of the best farmout deals in
Australia for arguably almost two decades. In addition, we
have achieved this but forming a joint venture with a global
leader in oil and gas sector, ConocoPhillips (COP), and aiming
to target exploration in at least one region that has witnessed
a very high exploration success rate for two decades. Further,
it is a gas-rich province adjacent existing under-utilised
infrastructure feeding a significantly under supplied market.
The stage is now set for an incredibly
exciting two years ahead of 3D Oil.
Admittedly COP’s arrival in Bass Strait has
flown largely under the radar to date, but
now with the signing of Transocean Equinox
the market will slowly become aware of
their presence – and not an insignificant
presence. It comes at time when Bass Strait
production is falling over a cliff while the
‘energy transition’ will ensure gas has an
important role to play for many decades.
Not neglecting gas is required for a myriad
of everyday industrial processes.
The Transocean Equinox is literally on the
horizon and is expected to arrive in Australia
next year, from Norway, to commence
an extensive program for the Bass Strait
drilling consortium. Our Joint Venture (JV)
has contracted the rig for a minimum of
two wells with the potential of additional
four wells – not an insignificant program.
3D Oil is carried for the first two wells
to the combined tune of US$65 million –
an enviable position by any measure.
Our JV is spoilt for choice with numerous
exciting gas prospects demonstrating
Direct Hydrocarbon Indicators (DHIs).
Most likely the first two wells will be
located within the ‘sweet spot’ of the
Otway Basin – a truly world class area in
terms of the associated exploration risk.
As the JV are the largest acreage holders in
the Otway Basin we have potentially many
years of exploration and, assuming success,
production drilling ahead of us. When
considering other potential areas to supply
gas to the East Coast it is not inconceivable
to contemplate our JV will be the largest
supplier excluding LNG imports. That will
be an incredible achievement.
While our Otway position is obviously the
jewels in the 3D Oil crown and providing
our major strategy our other positions in
Australia are not insignificant and provide
further exciting additional opportunities.
The acquisition of GSEL 759 represents an
exciting development opportunity for the
Company in broadening 3D Oil’s strategy
in the rapidly changing East Coast energy
market. The GSEL is ideally located being
only 20km southeast of Mount Gambier
and proximal to the South East Pipeline
System. 3D Oil has undertaken technical
work to better understand the reservoirs’
suitability for gas storage applications,
including storage capacity and reservoir
deliverability with a view to determining
the most feasible business model from
multiple gas storage and supply scenarios.
The pre-existing Caroline Field may yet
provide an integral component to our
Otway gas strategy.
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The 100% owned WA-527-P permit in
the offshore Bedout Sub basin, Western
Australia, still provides much excitement for
the 3D Oil team. The neighbouring Dorado
oil and gas field, the largest oil discovery in
Australia in 3 decades, has now been given
the green light by the regulators to proceed
to development – it only needs the final
investment decision from the Joint Venture
which in addition to Santos and Carnarvon
now includes the Taiwanese national oil
company. The prospectivity of WA-527-P
was further significantly upgraded with
the discovery of the neighbouring Pavo
oil discovery. Pavo 1 de-risks uncertainties
around source presence and hydrocarbon
migration away from existing discoveries
and towards the basin margin, and supports
migration to any erosional truncation
leads in WA-527-P. In addition, Carnarvon
recently released an updated Resource
Evaluation for their Bedout acreage. This
included the Starbuck Group of prospects,
directly adjacent to our permit which has
the potential to contain over 2 TCF of gas
and 400 MMbbl of oil. The actual Starbuck
Prospect has an impressive Chance of
Succes (COS) of 58%. The Company
continues to work on obtaining an
Environmental Plan (EP) for the acquisition
of the Sauropod 3D seismic survey.
It remains a challenging time in our industry
and will remain so. Climate change
concerns, the emerging ESG environment,
access to funds, together with the volatility
in global markets. Despite these difficulties
3D Oil is in a unique position in our sector.
Fossil fuels stubbornly dominate global
energy despite the surge in renewables
and currently still provide 82% of the world
energy needs. This is not expected to
change in the foreseeable future. Oil and gas
are critical for transport, mining (including
critical minerals), manufacture and industrial
uses. In addition, petrochemicals are used
in about half a million different products.
The Global South are energy hungry where
economic growth is tied to power usage.
There is a direct correlation between energy
use and GDP.
On behalf of the Company, I thank the
Board and the 3D Oil team for their
endeavors, commitment and energy over
the last year – they are an inspiration and
honour to work with. They are an integral
part of realising our ambition to become
a significant Australian energy company.
Noel Newell
Executive Chairman
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Review of
operations
FY23 EXPLORATION HIGHLIGHTS
79%
increase in gross prospective
resource (VIC/P79)
1115 km2
3D seismic reprocessed
(Flanagan)
1782 km2
3D seismic processed
(Sequoia)
687 line km
2D seismic reprocessed
(T/49P)
US$35M
carry towards one exploration well
(VIC/P79 farmout)
US$3M
cash received
(VIC/P79 farmout)
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3D has achieved
several milestones over
FY23 and continues to build
value for investors.
3D is now firmly set
on the pathway to achieve
its goal of becoming an
east coast gas producer.
Second successful farmout
to ConocoPhillips Australia
completed. Up to US$65M carry
towards 2 exploration wells in the
Otway signifies 3D is climbing
the value chain for investors.
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database
The Otway Joint Venture
has developed a material
portfolio of amplitude
supported gas targets.
Gas targets with potential
are proximal to infrastructure
in the event of a successful
upcoming drilling campaign.
Semi-submersible rig
contracted for 2025 drilling
operations. Drilling contract
allows for 2 firm exploration
wells to be drilled in 2025,
and up to 4 optional
wells. Success could be
transformational for 3D.
Secured a gas storage
exploration licence.
3D is exploring the feasibility
of onshore gas storage
at the depleted Caroline
field, diversifying its range
of energy solutions.
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Figure 1 – 3D Oil has positioned itself as an east coast gas explorer
EAST COAST OFFSHORE EXPLORATION
3D Oil has strategically positioned itself as
an active offshore east coast gas explorer,
boasting a highly prospective portfolio
(Figure 1) in support of its goal to become
an East Coast gas supplier. Significant
uncertainty around both short and long-
term gas supply on the east coast means
that 3D Oil’s business model has never been
more relevant:
» Victoria is rapidly depleting its natural
gas reserves as production from
the Bass Strait gas fields declines,
accentuating the urgency to replace
reserves through exploration
» Victoria’s gas demand is higher than
any other state and consumption is
forecast to have only a minimal decline
over the coming decades1
» Victoria faces a projected gas shortfall
in 2027 which extends to all southern
states, leaving no external supply from
other jurisdictions2
» Unless new supply is developed,
Victoria is forecast to become a net
importer of gas from winter 20272
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There is a strong need for near-term
investment to expand gas supply across
the southern states, and 3D Oil believes
it has a role to play in securing the energy
needs of Victoria:
» 3D Oil is the largest acreage holder by
area for Victorian offshore exploration,
providing significant opportunities for
potential gas discoveries.
» The 3D Oil/ConocoPhillips Australia
Joint Venture have developed a
significant prospective gas resource
consisting of prospective amplitude
supported gas prospects.
» The Otway Basin has a world class
88% success rate in drilling amplitude
supported gas prospects
» These gas prospects are located
proximal to existing gas discoveries
and infrastructure, including pipelines
and gas plants with spare capacity.
» The 3D Oil/ConocoPhillips Australia
Joint Venture have announced an
exploration drilling program, targeting
up to 6 exploration wells in the Otway
Basin, commencing in 2025.
“Gas storage is an
important component
of the east coast gas
story by ensuring the
maintenance of a reliable
gas supply during periods
of high demand”
1 AEMO Gas Statement of Opportunities
2 AEMO Victorian Gas Planning Report
“The Joint Venture has
developed a robust
portfolio of drill targets,
proximal to existing
offshore infrastructure,
that are supported by
seismic amplitudes”
OTWAY BASIN
Significant opportunity exists in the Otway
Basin for the 3D Oil/ConocoPhillips Joint
Venture due to nearby underutilised
infrastructure, namely the Athena and
Otway gas plants. While the Otway gas
plant is currently operating at ~80%
capacity, the Athena gas plant is only
utilising ~16% of its capacity (AEMO gas
bulletin board). The rapid decline curve
for production rates once new fields are
connected means that a constant pipeline
of opportunities are required to maintain
consistent output.
The Joint Venture has developed a robust
portfolio of drill targets (Figure 2), proximal
to existing offshore infrastructure, that
are supported by seismic amplitudes.
Since the application of 3D seismic in
exploration from the 1990s, the Otway
Basin has enjoyed an outstanding success
rate for exploration wells owing to the
strong seismic amplitude response of gas
discoveries in the basin.
With plans to undertake the drilling of up
to 6 exploration wells, this venture would
mark the largest offshore exploration
campaign in the basin in the past two
decades and could potentially yield a
resource equivalent to several years’ worth
of Victoria’s gas supply.
Figure 2 – Otway Basin leads and prospects portfolio
VIC/P79 Exploration Permit – Offshore Victoria
T/49P Exploration Permit – Offshore Tasmania
20% 3D Oil Limited, 80% ConocoPhillips Australia (Operator)
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FY23 Highlights
FY24 Activities
» Complete the reprocessing and
interpretation of La Bella and
Investigator 3D seismic surveys
» Interpret reprocessed datasets
and Sequoia 3D seismic
» Update leads and prospects
inventories for both permits
» Submit the drilling Environmental Plan
» Conduct seabed surveys for upcoming
exploration wells
» Complete an array of drilling
related contracts in preparation
for the drilling program
» Successfully farmed down 80% interest
in VIC/P79 to ConocoPhillips Australia
» Announced an exploration drilling
program consisting of up to six
exploration wells
» Secured a rig contract for 2 exploration
wells in 2025, with the option for an
additional 120 days of drilling
» Initiated stakeholder consultation
and environmental planning for
exploration drilling
» Commenced reprocessing of the La Bella
and Investigator 3D seismic surveys
» Upgraded Prospective Resource
estimates over southern VIC/P79
to 533 Bcf (gross best estimate)
» Identified additional new leads in the
La Bella Complex
» Completed the processing of the
Sequoia 3D and reprocessing of
Flanagan 3D in T/49P
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PERMITS OVERVIEW
COMMERCIAL
3D Oil Limited holds a 20% participating
interest in both VIC/P79 and T/49P offshore
exploration permits, both operated by
ConocoPhillips Australia. The Company has
established a strong acreage position within
Commonwealth waters of the Otway Basin,
covering ~7,265km2 along the shallow inner
margin of the continental shelf, generally
in water depths around 100m. The Joint
Venture now has access to 78% of Otway
Basin exploration permits (by area).
VIC/P79 covers an area of 2,575km2 and
is flanked to the north by existing gas
discoveries at La Bella and producing fields
along the Pecten High trend (including
Casino), which are connected via pipeline
to the onshore Athena gas plant (operated
by Cooper Energy). To date, 533 Bcf (gross
best estimate) in Prospective Resources
has been identified within the southern half
of the permit, proximal to infrastructure.
The permit primary work program has a
minimum commitment of 630km2 of 3D
seismic reprocessing and the drilling of one
exploration well before February 2025.
The neighbouring Thylacine and Geographe
fields, the largest in the basin to date, lie
just 5km to the east of VIC/P79, in the
area between the VIC/P79 and T/49P
permits. These gas fields are connected via
pipeline to the onshore Otway Gas Plant
(operated by Beach Energy). The T/49P
permit is situated west of King Island,
Tasmania, and contains the 1.3 Tcf Flanagan
Prosect (gross best estimate prospective
resource), located 30km west of Thylacine.
Additionally, the permit presents an
additional Prospective Resource of
8.7 Tcf (gross best estimate based on 2D
seismic data), distributed across a series
of structures trending towards the south,
which remains largely an underexplored
area. The permit’s work program has an
optional one well minimum commitment in
Year 6 of the secondary term.
The farmout of 80% interest in VIC/P79 to
ConocoPhillips Australia was completed on
16 March 2023, upon regulatory approval
from NOPTA and the receipt of US$3
million from ConocoPhillips. On 1 July 2022,
the Company announced the Farmout
Agreement (“FOA”) with ConocoPhillips
Australia SH2 Pty Ltd, under which
ConocoPhillips Australia would acquire
an 80% interest, and operatorship, in
exchange for an upfront payment of
US$3 million and a US$35 million carry
towards drilling costs of one exploration
well. Above the US$35 million cap,
3D Oil will contribute 20% of costs
in line with its interest.
ConocoPhillips Australia fulfilled a major
obligation of the T/49P FOA during FY23
with the delivery of the final processing
of the Sequoia 3D, at no cost to 3D Oil. As
part of the T/49P FOA with ConocoPhillips
Australia SH1 Pty Ltd, 3D Oil is entitled to a
US$30 million carry towards drilling costs
of one exploration well in T/49P, should
ConocoPhillips Australia elect to drill one
well. If the costs exceed the US$30 million
cap, the Company will contribute 20% of
the costs in line with its interest.
EXPLORATION
An Otway exploration drilling program was
announced during FY23, consisting of a
minimum of two and up to six exploration
wells. Subsequently, on 12 July 2023, a Letter
of Award was announced for the Transocean
semi-submersible drilling rig to drill two
firm exploration wells with an additional
120 days of optional drilling. Currently, the
rig is expected to arrive in the Otway region
in Q1 2025. Stakeholder consultation has
commenced, and the drilling Environmental
Plan is currently planned to be submitted to
NOPTA in 2023.
In VIC/P79, Vanguard Prospect was renamed
to Essington (Figure 2) and upgraded from
161 Bcf to 246 Bcf (gross best estimate
prospective resource) in Q1 2023, based on
the latest seismic interpretation and depth
conversion studies (ASX announcement on
8 March 2023). Rosetta and Monarch leads
were also added to the portfolio. These new
leads form the southern end of a string of
four drill targets that include the previously
defined, amplitude supported Defiance and
Trident prospects, which are located directly
adjacent to the La Bella gas discovery.
Together, these four drill targets constitute
the La Bella Complex (Figures 2,3),
presenting a combined best estimate
prospective resource of 255 Bcf across
three of the targets. The largest structure,
Monarch, is yet to be fully characterised
due to seismic imaging issues.
The Joint Venture commenced the La Bella
MC3D Reprocessing Project (Figure 2)
after the completion of the farmout deal
in FY23. Under this project, the entire
La Bella 3D seismic survey (887km2)
is being reprocessed and part of the
Investigator 3D seismic survey over
Essington Prospect, with a total area
of ~1,135km2. The project is estimated
to be completed in Q4, 2023 and will
be important for improving image quality
and seismic attributes at key leads and
prospects, especially along the southern
end of the La Bella Complex and potentially
uncovering new prospects.
Interpretation of the new data will enable
the maturation of Rosetta and Monarch,
an update of prospective resource
estimates for the permit, and improved
understanding of the prospectivity across
southern VIC/P79 to support the planned
drilling activity in 2025.
Processing of the 1782km2 Sequoia 3D
Marine Seismic Survey (Figure 2) in
T/49P has continued throughout FY23,
in combination with reprocessing of
the 1115km2 Flanagan 3D over Flanagan
Prospect, with acquisition having been
successfully completed in October 2021
by ConocoPhillips Australia. The Sequoia
3D plays a crucial role in unlocking the
hydrocarbon potential within the permit,
especially within the central corridor of
T/49P, where 2D seismic has previously
revealed a series of large structural traps
with a best estimate Prospective Resource
of 8.7Tcf (gross).
Interim Phase 2 processing was received in
Q3, 2022 and interim seismic interpretation
commenced in support of ongoing
processing workflows. The final Sequoia 3D
processing was received in Q2, 2023 and
the Joint Venture has now gained a high-
resolution data set over all pre-existing
leads within the permit. This will enable
a more comprehensive evaluation of the
major prospects, including seismic attribute
analysis, and high grading of prospective
gas targets as we progress towards the
drilling program in 2025.
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“a Letter of Award was
announced for the Transocean
semi-submersible drilling rig
to drill two firm exploration
wells with an additional
120 days of optional drilling”
Figure 3 – Cross-section through the La Bella Complex
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Figure 4 – VIC/P74 location map showing leads and prospects portfolio
VIC/P74 Exploration Permit – Offshore Victoria
100% 3D Oil Limited (Operator)
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FY23 Highlights
FY24 Activities
» 3D Oil has applied to vary its VIC/
» Dependent on the outcome of the
P74 work program and is currently
awaiting a decision from the regulator,
the National Offshore Petroleum Titles
Administrator (NOPTA)
variation application
“New prospectivity has
been identified within the
Golden Beach Sub-Group
utilising reprocessed
3D seismic, which has
provided a significant
uplift in seismic quality”
GIPPSLAND BASIN
The Bass Strait oil and gas fields, operated
by the Gippsland Basin Joint Venture, has
produced more than half of Australia’s
crude oil and hydrocarbon liquids. However,
the rapid depletion of these fields is causing
a tightening of gas supply to the east coast
while oil production has ceased.
Considering this challenge, 3D Oil believes
that significant opportunity still exists
within the deeper and poorly imaged areas
of the basin by leveraging its experience
and expertise in unlocking prospectivity
within the basin through the application of
new technologies and datasets.
New prospectivity has been identified
within the Golden Beach Sub-Group utilising
reprocessed 3D seismic, which has provided
a significant uplift in seismic quality and
resolved early issues caused by velocity
anomalies in the shallow overburden that led
to early dry holes, both within and around
the VIC/P74 exploration permit. 3D Oil has
identified a Prospective Resource of 1.8Tcf
(best estimate) across four drill targets
within the Golden Beach Sub-Group.
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PERMIT OVERVIEW
The VIC/P74 petroleum exploration permit
covers an area of 1,006 km2 and lies within
shallow Commonwealth waters of the
Gippsland Basin, where water depths
range up to 70m (Figure 13). The permit
was awarded to TDO in July 2019 and
subsequently, in October 2019, Hibiscus
Petroleum elected to enter the permit and
assumed a 50% non-operator interest. TDO
now holds 100% interest in the permit after
NOPTA approved a ‘Transfer of Title’ from
Hibiscus Petroleum in Q3, 2022.
Situated on the southern flank of the
Gippsland Basin, the permit straddles the
boundary of two geological domains, the
Southern Terrace and the Central Deep,
separated by a fault system that forms
the Megatooth and Oarfish closures.
The Central Deep is known to be the
primary source of the prolific hydrocarbon
generation in the Gippsland Basin.
Geologically, the permit has an
advantageous location and flanks several
important discoveries in the basin (Figure
4). The nearby Kingfish Field, Australia’s
largest oil field, lies just 5km to the east and
has produced over 1 billion barrels of oil
from the classic top Latrobe play. Similarly,
the Bream Field, located 5km to the north,
represents a significant gas-condensate
discovery within the same play.
EXPLORATION
As per the Offshore Petroleum and
Greenhouse Gas Storage Act 2006, work
programs are divided into a ‘primary” term
(the first three years) and ‘secondary’
term (Years 4, 5 and 6). The primary term
includes minimum work commitments
that are ‘guaranteed’. All primary term
work commitments for VIC/P74 have been
fulfilled, including licencing and interpreting
the multiclient 3D seismic reprocessing,
culminating in a strong portfolio of gas
leads within the Golden Beach and
Emperor subgroups, and oil leads within
shallower closures.
During the secondary term, each year’s
work program becomes guaranteed upon
entry and the minimum work commitment
must be completed within the permit year.
VIC/P74 was due to enter Year 4 on
26 July 2022, however, the Company
applied to the National Offshore
Petroleum Titles Administrator, “NOPTA”,
to vary aspects of the secondary work
program. As the current work program
stands, Year 4 work commitments are
designed to facilitate lead maturation
and include the acquisition or purchase
of 200km2 of modern 3D seismic data,
alongside seismic interpretation, depth
conversion, inversion and AVO. 3D Oil’s
variation application has been assessed
by NOPTA and is currently awaiting a
decision from the Joint Authority, prior
to a final decision from NOPTA.
The Company recognises the significant
potential for VIC/P74 in addressing the
impending east coast gas supply shortage
and remains committed to fulfilling the
secondary work program.
WEST COAST OFFSHORE EXPLORATION
In 2017, 3D Oil took a strategic move
to diversify its exploration portfolio by
venturing into a Northwest Shelf oil play,
gaining an early entry into Australia’s
newest petroleum province in the Bedout
Sub-Basin before the Dorado oil discovery
in 2018, Australia’s largest in 30 years.
Since the discovery of Dorado, many oil
and gas majors have turned their back on
oil exploration and investment in the face
of the growing momentum of the global
energy transition.
Despite this industry shift, BP and Shell
have recently reversed their outlook
signalling a more practical approach to the
energy transition. Wilsons Equity Research3
suggests that oil demand is more robust
today than it was 20 years ago, largely
driven by the rising oil consumption from
non-OECD (Organisation of Economic
Cooperation and Development) countries
(shifting from 45% to 55% over the past
two decades). Non-OECD countries
accounted for 55% of global crude and
liquids consumed in 2023, and demand is
only set to further grow, particularly from
populous developing nations such as China,
India, Indonesia and Brazil. When coupled
with the predicted decline of the US shale
production and recent lack of investment
in new supply, we are faced with a looming
global oil crisis.
3 Oil and Gas Tailwinds Begin, James Karakatsanis and Sam Catalano, Wilsons Equity Research
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Figure 5 – WA-527-P location, leads and Environmental Planning area for the Sauropod MC3D.
BEDOUT SUB-BASIN, NORTHWEST SHELF
The Bedout Sub-Basin offers a unique
opportunity for oil exploration in Australia
with two significant discoveries in basin
largely unexplored. Light fluids from the
Dorado and Pavo fields are highly suitable
for use as petrochemical feedstock (high
naphtha content), jet fuel and other
transportation fuels, with a growing demand
across Asia Pacific region4. Petrochemicals
are found in everyday items such as
clothing, plastics, fertilisers, tyres, digital
devices, packaging, medical equipment and
detergents, and petrochemical feedstock
accounts for 12% of global demand5.
Importantly, they are essential components
in almost every aspect of humanity,
underlining the importance of oil in the
energy mix moving forward.
3D Oil has recognised the potential
for ~350MMbbls of oil across three
structures on the eastern flank of the
Bedout Sub-Basin, with Salamander Lead
representing the third largest undrilled
structure in the basin. Furthermore, the
potential extension of the Dorado play
into the southwest corner of WA-527-P
highlights the excellent prospectivity
and requirement for 3D seismic over the
western side of the permit.
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WA-527-P Exploration Permit – Offshore Western Australia
100% Participating Interest (Operator)
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FY23 Highlights
FY24 Activities
» Preparation of Environmental Plan
» Submission of Sauropod MC3D
for 2024/2025 Sauropod 3D seismic
acquisition has continued
Environmental Plan to NOPSEMA for
public comment and assessment
» Successful application for Suspension
and Extension of Sauropod 3D work
program commitment
» Potential acquisition of the Sauropod
MC3D seismic survey
4 Carnarvon Energy Corporate Presentation – 8 March 2022
5 International Energy Agency
3D Oil were planning to have a valid
Environmental Plan for the 2023 acquisition
window (January-May inclusive), but
given the time required to plan and
undertake a revised and more detailed
stakeholder consultation process, as well
as the timeframe required for a rigorous
EP assessment and subsequent vessel
mobilisation and acquisition, the Sauropod
MC3D was unable to be acquired prior to
the closing of the acquisition window at the
end of May 2023.
Over 2023, a new stakeholder consultation
process has been developed to ensure all
relevant stakeholders are identified and
consulted with, including First Nations
Peoples. The identification of additional
relevant persons is underway, and
consultation has been ongoing, including
community sessions in relevant areas. The
previously prepared EP is also currently
under revision and is currently anticipated
to be re-submitted to NOPSEMA for public
comment and assessment in Q3, 2023.
The EP under preparation will cover a two-
year acquisition window, as recommended
by NOPTA, extending from January-
May (inclusive) 2024, or January-May
(inclusive) 2025. The EP delineates the
same acquisition parameters as have been
previously proposed, with a maximum
full-fold acquisition area of 3447km2. The
survey acquisition is anticipated to take
approximately two months.
Despite the challenges, 3D Oil remains
committed to acquiring the Sauropod
MC3D Seismic Survey, which underpins
the WA-527-P exploration strategy. The
survey’s primary objective is to investigate
and determine the potential for remnant
traps associated with a Triassic erosional
channel system (Figure 6) that is analogous
to the trapping mechanism observed in the
nearby Dorado discovery.
Additionally, the Company has continued
its renewed farmout campaign following
the Pavo oil discovery in 2022, which has
significantly upgraded the prospectivity
of the Caley Sandstone play in WA-527-P
(Refer ASX Announcement 24 March
2022). The Company has observed
significant renewed interest from the
farm-in market and continues to hold active
discussions and data rooms with interested
farm-in candidates to explore potential
partnerships for the venture.
15
Figure 6 – Amplitude anomaly (full stack) on reprocessed 2D seismic, truncated by a potential
erosional channel system within WA-527-P (red arrows delineate edges of channel).
PERMIT OVERVIEW
EXPLORATION
3D Oil holds a 100% participating interest
in WA-527-P exploration permit, which
covers an area of 6,580km2 over shallow
Commonwealth waters of the Bedout
Sub-Basin, where water depths generally
range from 100-150m (Figure 5). The permit
is located 195km west of Broome, on the
Northwest Shelf, adjacent to the 2018
Dorado Discovery, the largest oil discovery
in 30 years, and along trend from the recent
2022 Pavo oil discovery.
WA-527-P was awarded in March 2017
as part of the 2016 Gazettal round. The
minimum work program requirement
includes geological and geophysical
studies, and the acquisition of ~510km2 of
3D seismic over the most prospective area
of the permit.
3D Oil is currently focused on the
acquisition of the Sauropod MC3D
seismic survey, which covers a potential
northern extension of the Dorado incised
valley channel system (Figure 6). The
Environmental Planning (EP) area for this
seismic survey covers 3447km2, the entire
western half of the permit (Figure 5).
The Sauropod survey aims to define new
potential prospects and upgrade the
existing leads portfolio.
In Q2 FY23, 3D Oil received a Suspension
and Extension of the Permit Year 1-3 work
program, extending the primary term to
28 December 2023.
The Company has been focused on
progressing the Sauropod Environmental
Plan over the course of FY23 for the
acquisition of the Sauropod MC3D seismic
survey, while simultaneously running a
farmout campaign to seek an industry
partner for WA-527-P.
Seismic company CGG is managing
the environmental permitting process,
which is a critical requirement for the
acquisition of the Sauropod MC3D
survey. In recent developments during
FY23, Santos lost their federal court
case around their consultation methods
with First Nations groups surrounding
its Barossa gas project in the Timor Sea.
Subsequently in 2022, the federal court
dismissed a challenge to the first instance
decision and provided more authoritative
clarification of the requirements for
consultation in the Offshore Environment
Regulations administered by NOPSEMA
(National Offshore Petroleum Safety and
Environmental Management Authority).
On 15 December 2022, NOPSEMA released
its amended guidelines on stakeholder
consultation in direct response to the
court’s decision. As a result of these
amended guidelines, a new stakeholder
consultation process would be required
for Sauropod to ensure all relevant
stakeholders are identified and consulted.
“3D Oil has recognised the potential
for ~350MMbbls of oil across three
structures on the eastern flank of
the Bedout Sub-Basin”
EAST COAST GAS STORAGE
3D Oil is exploring the feasibility of the
depleted Caroline carbon dioxide (CO2)
field, within the onshore Otway Basin,
as a potential gas storage site that could
be suitable for the storage of hydrogen,
natural gas, or carbon dioxide.
Caroline Field was previously held by Air
Liquide Australia Ltd and was relinquished
at the end of April 2022 having produced
approximately 21.5 BCF of CO2. Caroline
was discovered in 1967 during petroleum
exploration drilling and flowed CO2 in
commercial quantities at up to 99% purity,
making it the single most profitable well in
South Australia. Food grade liquid CO2 was
processed onsite continuously from 1968
until 2016. However, over the last decade of
production, the field’s production declined
and was shut in during 2017, then plugged,
abandoned and the site remediated in 2019.
Gas storage is an important component of
the east coast gas story by ensuring the
maintenance of a reliable gas supply during
periods of high demand, and forms part of
an emerging broader energy strategy for
3D Oil in a time of an impending energy
crisis in Eastern Australia and the transition
in the domestic and global energy sector.
OTWAY BASIN, SOUTH AUSTRALIA
GSEL 759 Gas Storage Exploration Permit –
Onshore South Australia
100% Participating Interest (Operator)
hexagon-check
clipboard-check
FY23 Highlights
FY24 Activities
» Awarded GSEL 759 gas storage
exploration licence
» Initiated technical studies to better
understand the storage capacity and
reservoir deliverability.
» Feasibility study on using the depleted
Caroline Field for storage of hydrogen,
natural gas or carbon dioxide continues
PERMIT OVERVIEW
EXPLORATION
Gas Storage Exploration Licence GSEL 759
(Figure 7) was awarded 100% to 3D Oil in
July 2022. The permit is located only 20km
southeast of Mount Gambier and proximal
to the South East Pipeline System (SEPS).
The licence covers an area of 1.02km2 and is
centrally located around the plugged and
abandoned Caroline-1 wellhead, over part
of the now depleted Caroline Field.
The GSEL has a 5-year work program
culminating in a final gas storage business
model and includes reservoir deliverability
and seal integrity studies, seismic
interpretation (potentially reprocessing) to
assist with the development of a static and
dynamic model, and the development of an
economic model that incorporates drilling,
completions, and engineering studies.
During FY23, 3D Oil has initiated technical
studies to better understand the reservoirs’
suitability for gas storage applications,
including storage capacity, reservoir
deliverability and seal integrity, with a view
to determining the most feasible business
model from multiple gas storage and
supply scenarios.
Preliminary work to understand the
reservoir has included the compilation
of historical reservoir data and a
petrophysical assessment of the Caroline-1
well, aimed at understanding the pay
zones and reservoir properties within the
Flaxmans/Waarre reservoirs. Detailed
studies are ongoing to further evaluate the
reservoir deliverability and seal integrity, in
combination with ongoing geomechanics
and geophysical studies.
16
Figure 7 – GSEL 759 location relative to Mount Gambier and the South East Pipeline System.
17
Directors’
report
18
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 2023.
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
Mr Trevor Slater
PRINCIPAL ACTIVITIES
During the financial year the principal
continuing activities of the Company
consisted of exploration and development
of upstream oil and gas assets.
DIVIDENDS
There were no dividends paid or declared
during the current or previous financial year.
The Consolidated Entity does not have
franking credits available for subsequent
financial years.
REVIEW OF OPERATIONS
The profit for the Consolidated Entity after
providing for income tax amounted to
$3,414,258 (30 June 2022: loss of $1,147,179).
Refer to the detailed Review of Operations
preceding this Directors' Report.
FINANCIAL POSITION
The net assets increased by $3,431,011
to $9,905,237 at 30 June 2023 (30 June
2022: $6,474,226). During the year the
Consolidated Entity spent a net amount
after reimbursements of $1,029,655 (2022:
$715,100) on exploration, mainly in relation
to WA-527-P, T/49P, VIC/P79 and VIC/P74.
The working capital position of the
Consolidated Entity as at 30 June 2023 is
$2,708,803 (30 June 2022: $137,577). The
Consolidated Entity incurred net operating
cash outflows of $1,405,663 (2022:
$997,474). The cash balances as at 30 June
2023 was $3,221,377 (2022: $1,243,195).
RISKS AND UNCERTAINTIES
Foreign currency risk
The Company is subject to risks that
are specific to the Company and the
Company’s business activities, as well as
general risks.
Future funding risks
The Company is involved in exploration
and development of upstream oil and gas
assets and is yet to generate revenues.
The Company has a cash and cash
equivalents balance of $3,221,377 and net
assets of $9,905,237 as at 30 June 2023.
The Company may require substantial
additional financing in the future to
sufficiently fund exploration commitments
and its other longer-term objectives.
As the Company is still in the early stages of
exploration it has the ability to control the
level of its operations and hence the level
of its expenditure over the next 12 months.
However, the Company's ability to raise
additional funds will be subject to, among
other things, factors beyond the control of
the Company and its Directors, including
cyclical factors affecting the economy and
share markets generally. If for any reason
the Company was unable to raise future
funds, its ability to meet the exploration
commitments and future development
would be significantly affected.
The Directors regularly review the spending
pattern and ability to raise additional
funding to ensure the Company’s ability to
generate sufficient cash inflows to settle its
creditors and other liabilities.
Joint Venture Operations risks
The Company participates in a number of
joint ventures for its business activities.
This is a common form of business
arrangement designed to share risk and
other costs. Under certain joint venture
operating agreements, the Company may
not control the approval of work programs
and budgets and a Joint Venture Partner
may vote to participate in certain activities
without the approval of the Company. As
a result, the Company may experience
a dilution of its interest or may not gain
the benefit of the activity, except at a
significant cost penalty later in time.
Failure to reach agreement on exploration,
development and production activities may
have a material impact on the Company’s
business. Failure of the Company’s Joint
Venture Partner’s to meet financial and
other obligations may have an adverse
impact on the Company’s business.
The Company works closely with its Joint
Venture Partner’s.
Certain exploration transactions are
denominated in foreign currency and the
Company is exposed to foreign currency
risk through foreign exchange rate
fluctuations, which is beyond the control
of the Company. The Company monitors
exchange rate risk and considers control
mechanisms, as well as managing it through
the Company’s cashflow forecasting.
Commodity price risks
Future value, growth and financial
conditions are dependent upon the
prevailing prices for oil and gas. Those
prices are subject to fluctuations and are
affected by numerous factors beyond the
control of the Company.
Prospective resources
estimate risks
Oil and gas resource estimates are
expressions of judgement based on
knowledge, experience and industry
practice. These estimates may alter
significantly or become uncertain when
new information becomes available
and/or there are material changes of
circumstances which may result in the
Company altering its plans. This could
have a positive or negative effect on the
Company’s operations. Other risks may
affect the resource estimate, for example,
commodity price movements.
Environmental and social risks
The business of exploration, development
and production, involves a variety of risks
which may impact the community and the
environment.
The Company’s exploration and
development activities are subject to local,
state, and federal environmental laws
and regulations. Oil and gas exploration
and development can be potentially
environmentally hazardous, giving rise
to substantial costs for environmental
rehabilitation, damage control and losses.
The legal framework governing this area of
law is complex and constantly developing.
There is a risk that the environmental
regulations may become more onerous,
making the Company’s operations more
expensive or causing delays.
It is the Company’s policy to conduct
its activities to the highest standard of
environmental obligation. There is no
assurance that new environmental laws,
regulations or stricter enforcement policies,
if implemented, will not oblige the Company
to incur significant expense and undertake
significant investment, which could have
a material adverse effect on its business,
financial conditions and results of operations.
19
The long-term viability of the Company
is closely associated to the wellbeing of
the communities and environments in
which the Company conduct operations.
At any stage, the Company’s operations
and activities may have or be seen to
have significant adverse impacts on
communities and environments. In these
circumstances, the Company may fail
to meet the evolving expectations of
our stakeholders (including investors,
governments, employees, suppliers,
customers and community members)
whose support is needed to realise our
strategy and purpose. This could lead to
loss of stakeholder support or regulatory
approvals, increased taxes and regulation,
enforcement action, litigation or class
actions, or otherwise impact our licence
to operate and adversely affect our
reputation, fund raising capability, ability
to attract and retain talent, operational
continuity and financial performance.
Exploration and
development risks
Exploration is a speculative activity with an
associated risk of discovery to find oil and
gas in commercial quantities, and a risk of
development. If the Company is unsuccessful
in locating and developing or acquiring
new reserves and resources that are
commercially viable, this may have a material
adverse effect on future business, results of
operations and financial conditions.
Oil and gas exploration is a speculative
endeavour and the nature of the business
carries a degree of risk associated with
failure to find hydrocarbons in commercial
quantities or at all.
The Company utilises well-established
prospect evaluation, ranking methodologies
and experienced personnel to manage
exploration and development risks.
Reliance on key personnel
The Company’s success depends to a
significant extent upon its key management
personnel, as well as other management
and technical personnel including those
employed on a contractual basis. The
loss of the services of such personnel or
the reduced ability to recruit additional
personnel could have an adverse effect on
the performance of the Company.
The Company maintains a mixture of
permanent staff and expert consultants to
advance its programs and ensure access
to multiple skill sets. The Company reviews
remunerations to human resources regularly.
20
IT system failure and cyber
security risks
Any information technology system is
potentially vulnerable to interruption and/or
damage from a number of sources, including
but not limited to computer viruses, cyber
security attacks and other security breaches,
power, systems, internet and data network
failures, and natural disasters.
The Company is committed to preventing
and reducing cyber security risks through
outsourced the IT management to a
reputable services provider.
Regulatory risk
The Company operates in a highly
regulated environment and complies with
regulatory requirements. There is a risk that
regulatory approvals are withheld or take
longer than expected, or that unforeseen
circumstances arise where requirements
may not be adequately addressed in the
eyes of the regulator and costs may be
incurred to remediate perceived non-
compliance and/or obtain approval(s).
The Company’s business or operations may
be impacted by changes in personnel and
Governments, or in monetary, taxation and
other laws in Australia or overseas.
The Company’s permits and activities may
be subject to extensive regulation by local,
state and federal governments. There is no
assurance that future government policy
will not change, and this may adversely
affect the long-term prospects of the
Company. Future changes in governments,
regulations and policies may have an
adverse impact on the Company.
SIGNIFICANT CHANGES IN THE
STATE OF AFFAIRS
On 11 August 2022, the Company
completed the application to relinquish its
participating interest in VIC/P57.
On 2 September 2022, the Consolidated
Entity announced that the South Australia
Department of Energy and Mining has
awarded the Company the GSEL 759 Gas
Storage Exploration Licence in onshore
Otway Basin. The licence covers an area
of 1.02km2, centrally located around
the plugged and abandoned Caroline-1
wellhead, over part of the now depleted
Caroline Field, originally used for the
production of carbon dioxide in the Otway
Basin. The Field is potentially suitable for
the storage of hydrogen, natural gas, or
carbon dioxide.
On 21 September 2022, the Company
has received regulatory approval for the
Transfer of Title of Carnarvon Hibiscus’
50% participating interest in VIC/P74 to
the Company. The Company is now 100%
titleholder of VIC/P74.
On 21 October 2022, the Company
announced that ConocoPhillips Australia
and the Company have executed a Joint
Operating Agreement (“JOA”) in relation
to the offshore Victoria Permit VIC/P79
(“Permit”) which satisfied a key condition
of the FOA.
On 16 March 2023, the Consolidated
Entity announced the completion of
the VIC/P79 farmout to ConocoPhillips
Australia, following NOPTA approval
of the Transfer of Title of 80% interest
in VIC/P79 exploration permit to
ConocoPhillips Australia SH2 Pty Ltd.
3D Oil has received a cash payment
of USD$3million (approximately
AUD $4.48 million). On 1 July 2022,
the Company announced the Farmout
Agreement (“FOA”) with ConocoPhillips
Australia SH2 Pty Ltd, under which
ConocoPhillips Australia would acquire
an 80% interest, and operatorship, in
exchange for an upfront payment of
US$3 million and a US$35 million carry
towards drilling costs in relation to
one exploration well, after which it will
contribute 20% of costs in line with its
interest in the Permit.
On 5 May 2023, the Company issued
431,000 Performance Rights to eligible
employees, subject to certain vesting
conditions set out in the corresponding
invitation letter in accordance with the
Company's Equity Incentive Plan. The
Performance Rights vest subject to both
the 5-day VWAP being equal to or greater
than $0.07 (7 cents), at any time between
grant and 9 March 2026, and continued
employment up until 9 March 2026.
On 12 May 2023, the Company issued
185,185 fully paid ordinary shares to Mr
Trevor Slater, a Non-Executive Director of
the Company upon exercise of unlisted
options, which were granted to Mr Slater
in lieu of professional fees, as approved
by shareholders at the AGM held on
10 November 2022.
There were no other significant changes
in the state of affairs of the Consolidated
Entity during the financial period.
MATTERS SUBSEQUENT TO THE
END OF THE FINANCIAL YEAR
No matter or circumstance has arisen since
30 June 2023 that has significantly affected,
or may significantly affect the Consolidated
Entity's operations, the results of those
operations, or the Consolidated Entity's
state of affairs in future financial years.
LIKELY DEVELOPMENTS AND
EXPECTED RESULTS FROM
OPERATIONS
The Consolidated Entity will continue to
pursue its exploration interest in
— VIC/P74 in the offshore Gippsland Basin,
Victoria;
— T/49P in the Otway Basin, Offshore
Tasmania in partnership with Conoco
Phillips Australia SH1 Pty Ltd;
— VIC/P79 in the Otway Basin, Offshore
Victoria in partnership with Conoco
Phillips Australia SH2 Pty Ltd;
— WA-527-P in the Roebuck Basin, Western
Australia; and
— GSEL759 in the Otway Basin, South
Australia.
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 2023.
INFORMATION ON DIRECTORS
Mr Noel Newell
Mr Leo De Maria
Executive Chairman
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 21 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
44,875,960 ordinary fully paid shares.
Interests in options
None
Interests in rights
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
Chair of the Audit and Risk Committee
and member of the Remuneration and
Nomination Committee
Interests in shares
650,070 ordinary fully paid shares.
Interests in options
None
Interests in rights
None
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)
None
Special responsibilities
Member of the Audit and Risk Committee
and Chair of the Remuneration and
Nomination Committee
Interests in shares
428,500 ordinary fully paid shares
Interests in options
None
Interests in rights
None
21
Trevor Slater
COMPANY SECRETARY
Non-Executive Director
Mr Stefan Ross B.Bus (Acc)
Company Secretary
Mr Ross has over 10 years of experience in
accounting and secretarial services for ASX
listed companies. His extensive experience
includes ASX compliance, corporate
governance control and implementation,
statutory financial reporting, shareholder
meeting requirements, capital raising
management, and board and secretarial
support. Stefan has 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 2023, and the
number of meetings attended by each
Director were:
Meetings
Held
Meetings
Attended
6
6
6
6
6
6
6
6
Mr N Newell
Mr L De Maria
Mr I Tchacos
Mr T Slater
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
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
— Share-based compensation
— providing a clear structure for earning
— Additional information
— Additional disclosures relating to key
management personnel
rewards
In accordance with best practice corporate
governance, the structure of non-
executive Director and executive Director
remuneration is separate.
Qualifications
B.Bus (Acc), Fellow of CPA Australia, Fellow
of the Governance Institute of Australia.
Experience and expertise
Trevor has extensive experience in the
development and operations of resource
and construction projects within Australia
and overseas performing as a director or
senior executive in ASX listed or unlisted
companies for over 30 years. Formerly,
Trevor operated as an executive director
for a gas production and storage project
in Bass Strait; and as country director
and manager for oil and gas exploration
projects in Brunei.
Trevor has also held senior roles in the
development of oil and gas fields in the
Timor Sea and consulted widely in South-
East Asia. He has also been extensively
involved in the development of significant
resource projects including the Ballarat
Gold Project where as CFO, he assisted the
Company in its initial exploration programs
and project development.
Other current directorships
None
Former directorships (last 3 years)
None
Special responsibilities
Member of the Audit and Risk Committee
and Remuneration and Nomination
Committee
Interests in shares
449,938 ordinary fully paid shares
Interests in options
None
Interests in rights
None
'Other current directorships' quoted above
are current directorships for listed entities
only and excludes directorships in all other
types of entities, unless otherwise stated.
'Former directorships (in the last 3 years)'
quoted above are directorships held in
the last 3 years for listed entities only and
excludes directorships in all other types of
entities, unless otherwise stated.
22
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. The chairman is not present at any
discussions relating to determination of his/
her own remuneration.
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 or performance rights 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 from 2021 financial year,
Directors and employees' remuneration
packages have included performance-
based components. Performance rights
may be granted which offer the recipient
the right, upon achieving certain vesting
conditions, 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 2023, the Company
granted performance rights to eligible
employees 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. There
was no performance-based remuneration
to the Executive Director during the year
(2022: Nil).
Voting and comments made at
the Company's 10 November 2022
Annual General Meeting ('AGM')
The Company received 99.52% of 'for' votes
in relation to its remuneration report for the
year ended 30 June 2022, during the AGM
held on 10 November 2022. 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.
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, annual leave, short term
incentives and non-monetary benefits
— share-based payments; and
— other remuneration such as
superannuation and long service leave
The combination of these comprises the
executive's total remuneration.
Fixed remuneration, consisting of base
salary, superannuation and non-monetary
benefits, are reviewed annually by the
Board, based on individual and business
unit performance, the overall performance
of the Company and comparable market
remunerations.
Executives can receive their fixed
remuneration in the form of cash or other
fringe benefits (for example motor vehicle
benefits) where it does not create any
additional costs to the Company and adds
additional value to the executive.
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 key management personnel of the
Consolidated Entity consisted of the
following Directors of 3D Oil Limited:
— Mr Noel Newell
— Mr Ian Tchacos
— Mr Leo De Maria
— Mr Trevor Slater
2023
Non-Executive Directors:
Mr I Tchacos*
Mr L De Maria*
Mr T Slater
Executive Directors:
Mr N Newell
Short-term
benefits
Post-
employment
benefits
Long-term
benefits
Equity settled
share based
payments
Salaries and
fees
Super-
annuation
Long service
leave
Performance
rights
$
$
42,760
40,724
40,724
4,509
4,276
4,276
$
-
-
-
$
(5,180)
(5,180)
9,815
Total
$
42,089
39,820
54,815
335,903
27,069
460,111
40,130
7,782
7,782
-
370,754
(545)
507,478
*Equity settled remuneration amounts for the current financial year were in credit due to the
reversal of fair value of performance rights. These fair value reversals were recognised directly
in accumulated losses from share-based payment reserve, through statement of changes of
equity. These performance rights were granted on 16 December 2020, but lapsed during the
year, as the conditions attached with these securities were not met or have become incapable
of being satisfied.
Short-term
benefits
Post-
employment
benefits
Long-term
benefits
Equity settled
share based
payments
Salaries and
fees
Super-
annuation
Long service
leave
Performance
rights
2022
Mr I Tchacos
Mr L De Maria
Mr T Slater*
Mr N Newell
$
43,004
40,956
25,568
$
4,296
4,091
2,557
346,439
23,100
455,967
34,044
$
-
-
-
8,893
8,893
The proportion of remuneration linked to performance and the fixed proportion are as follows:
$
2,590
2,590
-
-
Total
$
49,890
47,637
28,125
378,432
5,180
504,084
Name
Non-Executive Directors:
Mr I Tchacos
Mr L De Maria
Mr T Slater
Executive Directors:
Mr N Newell
24
Fixed remuneration
At-risk long term remuneration
2023
2022
2023
2022
112%
113%
82%
94%
95%
100%
100%
100%
(12%)
(13%)
18%
-
6%
5%
-
-
SERVICE AGREEMENTS
Mr N Newell
Remuneration and other terms of
employment for key management
personnel are formalised in service
agreements. Details of these agreements
are as follows:
Executive Chairman
Agreement commenced
Share-based compensation
Issue of shares
There were no ordinary shares issued to
directors and key management personnel
as part of compensation during the year
ended 30 June 2023 (2022: Nil).
Options
There were 185,185 options over ordinary
shares granted to a director as part of
compensation during the year ended
30 June 2023. These options vested and
were exercised during the year ended
30 June 2023 (2022: Nil).
The number of options over ordinary shares
granted to and vested by Directors and
other key management personnel as part
of compensation during the year ended
30 June 2023 are set out below:
1 November 2006
Details
(i) Mr Newell may resign from his position
and thus terminate this contract by
giving 6 months written notice.
(ii) The Company may terminate this
employment agreement by providing
6 months written notice.
(iii) The Company may terminate the
contract at any time without notice
if serious misconduct has occurred.
Where termination with cause occurs,
Mr Newell is only entitled to that
portion of remuneration which is fixed,
and only up to the date of termination.
(iv) On termination of the agreement,
Mr Newell will be entitled to be paid
those outstanding amount owing to
him up until the Termination date.
Key management personnel have no
entitlement to termination payments in the
event of removal for misconduct.
Name
Mr T Slater
Grant date
Vesting date
Number
of options
granted
Value of
options
granted
Number
of options
vested
16/12/2022
16/12/2022
185,185
9,815
185,185
Value of
options
vested
9,815
Performance rights
There were no performance rights over
ordinary shares issued to Directors as part
of compensation that were outstanding as
at 30 June 2023 (2022: 225,806).
Additional information
The earnings of the Consolidated Entity
for the five years to 30 June 2023 are
summarised below:
Other income including interest income
Net profit/(loss) before tax
Net profit/(loss) after tax
2023
$
4,202,908
2022
$
467
2021
$
2020
$
2019
$
87,478
85,279
43,629
3,414,258
(1,147,179)
(1,142,095)
(3,006,065)
(1,089,254)
3,414,258
(1,147,179)
(1,142,095)
(3,006,065)
(1,089,254)
The factors that are considered to affect total shareholders return ('TSR') are summarised below:
Share price at financial year start ($)
Share price at financial year end ($)
Basic earnings/(loss) per share (cents per share)
2023
0.050
0.050
1.287
2022
0.050
0.050
2021
0.070
0.050
2020
0.110
0.070
2019
0.050
0.110
(0.433)
(0.430)
(1.130)
(0.420)
25
Additional disclosures relating
to key management personnel
Shareholding
The number of shares in the Company held
during the financial year by each Director
and other members of key management
personnel of the Consolidated Entity,
including their related parties, is set out
below:
Ordinary shares
Mr N Newell
Mr L De Maria
Mr I Tchacos
Mr T Slater*
Balance at
the start of
the year
Received
as part of
remuneration
Additions
Disposals/
other
44,381,998
650,070
428,500
264,753
45,725,321
-
-
-
-
-
493,962
-
-
185,185
679,147
-
-
-
-
-
Balance at
the end of
the year
44,875,960
650,070
428,500
449,938
46,404,468
*There were 185,185 options over ordinary
shares granted to Mr Trevor Slater as part
of compensation during the year ended 30
June 2023. These options vested and were
exercised during the year ended 30 June
2023 (2022: Nil).
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
Option holding
The number of Options 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:
Options over ordinary shares
Mr T Slater
This concludes the remuneration report, which has been audited.
Balance at
the start of
the year
112,903
112,903
225,806
Granted
Vested
Expired/
forfeited/
other
Balance at
the end of
the year
-
-
-
-
-
-
(112,903)
(112,903)
(225,806)
-
-
-
Balance at
the start of
the year
Granted
Vested and
exercised
Expired/
forfeited/
other
Balance at
the end of
the year
-
-
185,185
(185,185)
185,185
(185,185)
-
-
-
-
26
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
5 March 2023
Expiry date
5 March 2026
Exercise price
Number under rights
$0.000
431,000
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
185,185 ordinary shares of 3D Oil Limited
were issued on the exercise of options
during the year ended 30 June 2023 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 2023.
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.
This report is made in accordance with a
resolution of Directors, pursuant to section
306(3)(a) of the Corporations Act 2001.
Non-audit services
Auditor
Details of the amounts paid or payable to
the auditor for non-audit services provided
during the financial year by the auditor
are outlined in note 23 to the financial
statements.
The Directors are satisfied that the
provision of non-audit services during the
financial year, by the auditor (or by another
person or firm on the auditor's behalf), is
compatible with the general standard of
independence for auditors imposed by the
Corporations Act 2001.
The Directors are of the opinion that the
services as disclosed in note 23 to the
financial statements do not compromise
the external auditor's independence
requirements of the Corporations Act 2001
for the following reasons:
— all non-audit services have been
reviewed and approved to ensure that
they do not impact the integrity and
objectivity of the auditor; and
— none of the services undermine the
general principles relating to auditor
independence as set out in APES
110 Code of Ethics for Professional
Accountants issued by the Accounting
Professional and Ethical Standards
Board, including reviewing or auditing
the auditor's own work, acting in a
management or decision-making
capacity for the Company, acting as
advocate for the Company or jointly
sharing economic risks and rewards.
Officers of the Company who are former
partners of RSM Australia Partners
There are no officers of the Company who are
former partners of RSM Australia Partners.
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.
Grant Thornton Audit Pty Ltd resigned
as Company’s auditors during the year.
RSM Australia Partners was appointed as
Company’s auditor during the year and
continues in office in accordance with
section 327 of the Corporations Act 2001
Rounding of amounts
3D Oil Limited is a type of Company
that is referred to in ASIC Corporations
(Rounding in Financial/Directors’ Reports)
Instrument 2016/191 and therefore the
amounts contained in this report and in
the financial report have been rounded to
the nearest dollar.
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
28 September 2023
Melbourne
27
RSM Australia Partners
Level 21, 55 Collins Street Melbourne VIC 3000
PO Box 248 Collins Street West VIC 8007
T +61 (0) 3 9286 8000
F +61 (0) 3 9286 8199
www.rsm.com.au
AUDITOR’S INDEPENDENCE DECLARATION
As lead auditor for the audit of the financial report of 3D Oil Limited for the year ended 30 June 2023, I declare
that, to the best of my knowledge and belief, there have been no contraventions of:
(i)
(ii)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
any applicable code of professional conduct in relation to the audit.
RSM AUSTRALIA PARTNERS
J S Croall
Partner
Melbourne, Victoria
Dated: 28 September 2023
THE POWER OF BEING UNDERSTOOD
AUDIT | TAX | CONSULTING
RSM Australia Partners is a member of the RSM network and trades as RSM. RSM is the trading name used by the members of the RSM network. Each member of the
RSM network is an independent accounting and consulting firm which practices in its own right. The RSM network is not itself a separate legal entity in any jurisdiction.
RSM Australia Partners ABN 36 965 185 036
Liability limited by a scheme approved under Professional Standards Legislation
28
Financial
Reports
29
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME
For the year ended 30 June 2023
Other income
Interest income
Expenses
Corporate expenses
Employment expenses
Occupancy expenses
Depreciation and amortisation expense
Exploration expenses
Share based payments
R&D tax provision write-back
Finance costs
Profit/(loss) before income tax expense
Income tax expense
Profit/(loss) after income tax expense for the year attributable to the
owners of 3D Oil Limited
Other comprehensive income/(loss) for the year, net of tax
Total comprehensive income/(loss) for the year attributable to the
owners of 3D Oil Limited
Basic earnings/(loss) per share
Diluted earnings/(loss) per share
Note
2023
$
5
4,188,464
14,444
Consolidated
2022
$
-
467
6
6
6
7
(690,826)
(473,583)
(613,403)
(505,620)
(27,014)
(14,449)
(119,742)
(121,275)
-
(16,753)
695,894
(16,806)
(15,994)
(11,886)
-
(4,839)
3,414,258
(1,147,179)
-
-
3,414,258
(1,147,179)
-
-
3,414,258
(1,147,179)
Cents
1.287
1.285
Cents
(0.433)
(0.433)
31
31
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes
30
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2023
Assets
Current assets
Cash and cash equivalents
Other receivables
Financial assets
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
2023
$
2022
$
8
9
10
11
12
13
14
15
20
16
20
17
3,221,377
1,243,195
8,729
93,577
41,002
29,992
93,577
-
3,364,685
1,366,764
11,126
17,542
168,957
257,109
22,038
47,212
7,095,490
6,207,257
7,297,611
6,529,120
10,662,296
7,895,884
327,486
925,255
93,763
75,488
234,633
228,444
655,882
1,229,187
96,267
4,910
190,555
1,916
101,177
192,471
757,059
1,421,658
9,905,237
6,474,226
18
55,483,678
55,483,678
1,823
17,559
(45,580,264)
(49,027,011)
9,905,237
6,474,226
The above consolidated statement of financial position should be read in conjunction with the accompanying notes
31
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 30 June 2023
Consolidated
Balance at 1 July 2021
Loss after income tax expense for the year
Other comprehensive income/(loss) for the year, net of tax
Total comprehensive income/(loss) for the year
Transactions with owners in their capacity as owners:
Lapse of performance rights
Share-based payments
Balance at 30 June 2022
Consolidated
Balance at 1 July 2022
Profit after income tax expense for the year
Other comprehensive income/(loss) for the year, net of tax
Total comprehensive income/(loss) for the year
Transactions with owners in their capacity as owners:
Share-based payments
Lapse of performance rights
Balance at 30 June 2023
Contributed
equity
Accumulated
losses
Reserves
Total equity
$
$
$
$
55,483,678
(47,883,230)
9,072
7,609,520
-
-
-
-
-
(1,147,179)
-
(1,147,179)
-
-
-
(1,147,179)
-
(1,147,179)
3,398
-
(3,398)
11,885
-
11,885
55,483,678
(49,027,011)
17,559
6,474,226
Contributed
equity
Accumulated
losses
Reserves
Total equity
$
$
$
$
55,483,678
(49,027,011)
17,559
6,474,226
-
-
-
-
-
3,414,258
-
3,414,258
-
-
-
3,414,258
-
3,414,258
-
16,753
16,753
32,489
(32,489)
-
55,483,678
(45,580,264)
1,823
9,905,237
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes
32
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 30 June 2023
Cash flows from operating activities
Payments to suppliers and employees (inclusive of GST)
Interest received
Interest on lease liabilities paid
Note
Consolidated
2023
$
2022
$
(1,400,777)
(993,446)
13,269
811
(18,155)
(4,839)
Net cash used in operating activities
30
(1,405,663)
(997,474)
Cash flows from investing activities
Payments for computer equipment
Payments for exploration and evaluation
Receipts from farmout 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
Effects of exchange rate changes on cash and cash equivalents
11
-
(6,362)
(1,029,655)
(715,100)
4,468,200
-
3,438,545
(721,462)
(76,013)
(86,671)
(76,013)
(86,671)
1,956,869
(1,805,607)
1,243,195
3,048,802
21,313
-
Cash and cash equivalents at the end of the financial year
8
3,221,377
1,243,195
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes
33
NOTES TO THE CONSOLIDATED 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.
As disclosed in the financial statements,
the Consolidated Entity incurred operating
cash outflows of $1,405,663 and invested
$1,029,655 in exploration and evaluation
during the year ended 30 June 2023.
The Consolidated Entity is required to fund
the exploration commitments as noted
in note 25 in line with its interest in the
respective tenements.
These factors indicate a material
uncertainty which may cast significant
doubt as to whether the consolidated
entity will continue as a going concern and
therefore whether it will realise its assets
and extinguish its liabilities in the normal
course of business and at the amounts
stated in the financial statements.
The Consolidated Entity is in the early
development phase of activities and
has the ability to control the level of its
operations and hence the level of its
expenditure over the next 12 months. In
considering the ability of the Consolidated
Entity to continue as a going concern the
Directors considered the following matters:
— 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; and
— Subject to negotiation and approval,
minimum work requirements may be
varied or suspended, and/or permits may
be surrendered or cancelled.
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. The Directors are
therefore confident that the going concern
basis of preparation is appropriate as at the
date of this report.
The financial statements do not include
any adjustments relating to the amounts
or classification of recorded assets or
liabilities that might be necessary if the
Consolidated Entity does not continue as a
going concern.
ROUNDING OF AMOUNTS
3D Oil Limited is a type of Company
that is referred to in ASIC Corporations
(Rounding in Financial/Directors’ Reports)
Instrument 2016/191 and therefore the
amounts contained in this report and in
the financial report have been rounded to
the nearest dollar.
BASIS OF PREPARATION
These general purpose financial statements
have been prepared in accordance with
Australian Accounting Standards and
Interpretations issued by the Australian
Accounting Standards Board ('AASB') and
the Corporations Act 2001, as appropriate
for for-profit oriented entities. These
financial statements also comply with
International Financial Reporting Standards
as issued by the International Accounting
Standards Board ('IASB').
Historical cost convention
The financial statements have been
prepared under the historical cost
convention.
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 27.
30 June 2023
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 28 September 2023. 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.
34
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 2023 and the
results of all subsidiaries for the year then
ended. 3D Oil Limited and its subsidiaries
together are referred to in these financial
statements as the 'Consolidated Entity'.
Subsidiaries are all those entities over
which the Consolidated Entity has control.
The Consolidated Entity controls an entity
when the Consolidated Entity is exposed
to, or has rights to, variable returns from
its involvement with the entity and has
the ability to affect those returns through
its power to direct the activities of the
entity. Subsidiaries are fully consolidated
from the date on which control is
transferred to the Consolidated Entity.
They are de-consolidated from the date
that control ceases.
Intercompany transactions, balances
and unrealised gains on transactions
between entities in the Consolidated
Entity are eliminated. Unrealised losses
are also eliminated unless the transaction
provides evidence of the impairment of
the asset transferred. Accounting policies
of subsidiaries have been changed where
necessary to ensure consistency with the
policies adopted by the Consolidated Entity.
The acquisition of subsidiaries is accounted
for using the acquisition method of
accounting. A change in ownership interest,
without the loss of control, is accounted for
as an equity transaction, where the difference
between the consideration transferred and
the book value of the share of the non-
controlling interest acquired is recognised
directly in equity attributable to the parent.
Where the Consolidated Entity loses
control over a subsidiary, it derecognises
the assets including goodwill, liabilities
and non-controlling interest in the
subsidiary together with any cumulative
translation differences recognised in
equity. The Consolidated Entity recognises
the fair value of the consideration received
and the fair value of any investment
retained together with any gain or loss in
profit or loss.
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.
35
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
36
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.
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.
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.
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 2023. 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.
SHARE-BASED PAYMENT
TRANSACTIONS
The Consolidated Entity measures the
cost of equity-settled transactions with
employees by reference to the fair value
of the equity instruments at the date at
which they are granted. The fair value is
determined by using either the 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.
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.
37
INCREMENTAL BORROWING
RATE
EMPLOYEE BENEFITS
PROVISION
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.
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
NOTE 4. OPERATING SEGMENTS
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 Consolidated Entity
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.
ACCOUNTING POLICY FOR
OPERATING SEGMENTS
Operating segments are presented using
the ‘management approach’, where the
information presented in these 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.
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.
NOTE 5. OTHER INCOME
Gain from farm-out arrangement
On 16 March 2023, the Consolidated
Entity completed the VIC/P79 farmout to
ConocoPhillips Australia and transferred
80% interest in VIC/P79 exploration permit
to ConocoPhillips Australia SH2 Pty Ltd.
The Company received a cash payment of
$4,468,200 (US$ 3,000,000) for the title
transfer, which is recognised as other income
net of carried forward costs of $279,736.
38
Consolidated
2022
$
-
2023
$
4,188,464
NOTE 6. EXPENSES
Profit/(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
Superannuation contributions
Salaries, wages and other employment expenses
Total employment costs
Finance costs
Consolidated
2023
$
2022
$
(6,416)
(5,355)
(88,152)
(86,491)
(94,568)
(91,846)
(25,174)
(29,429)
(119,742)
(121,275)
(45,539)
(37,498)
(567,864)
(468,122)
(613,403)
(505,620)
Interest and finance charges paid/payable on lease liabilities
(16,806)
(4,839)
NOTE 7. INCOME TAX EXPENSE
Numerical reconciliation of income tax expense and tax at the statutory rate
Profit/(loss) before income tax expense
Tax at the statutory tax rate of 25%
Tax effect amounts which are not deductible/(taxable) in calculating taxable income:
Permanent differences
Prior period adjustments
Amounts not brought to account as deferred tax assets
Income tax expense
amount can be deducted against
assessable receipts in future years.
The Company has not recognised a
deferred tax asset with respect to the
carried forward un-deducted expenditure.
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, T49P 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
Consolidated
2023
$
2022
$
3,414,258
(1,147,179)
853,565
(286,795)
(184,260)
3,320
(10,875)
(234,022)
(658,430)
517,497
-
-
39
Consolidated
2023
2022
69,940
64,935
(1,795,681)
(1,551,815)
14,942,030
15,959,509
13,216,289
14,472,629
Net deferred Tax Assets not recognised at 25% (30 June 2022: 25%)
Deferred tax assets not recognised comprises temporary differences attributable to:
Temporary differences relating to provisions, accruals, other
Exploration expenditure
Tax losses
Net 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 and will only be
recognised 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.
NOTE 8. CURRENT ASSETS – CASH AND CASH EQUIVALENTS
Consolidated
2023
$
2022
$
3,221,377
1,243,195
Consolidated
2022
$
18,024
129
11,839
2023
$
-
1,304
7,425
8,729
29,992
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.
NOTE 9. CURRENT ASSETS – OTHER RECEIVABLES
Other receivables
Interest receivable
GST receivable
Other receivables represent reimbursement
of venture costs by joint venture partners.
No interest is charged on the receivables.
Due to the short-term nature of these
receivables, their carrying value is assumed
to be approximate to their fair value.
ACCOUNTING POLICY FOR
OTHER RECEIVABLES
Other receivables are recognised at
amortised cost, less any allowance for
expected credit losses.
40
NOTE 10. CURRENT ASSETS – FINANCIAL ASSETS
Cash on deposit
This amount relates to cash on deposit held
with an original term to maturity greater
than 3 months.
Consolidated
2023
$
2022
$
93,577
93,577
NOTE 11. NON-CURRENT ASSETS – PROPERTY, PLANT AND EQUIPMENT
Furniture and fittings – 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 2021
Additions
Depreciation expense
Balance at 30 June 2022
Depreciation expense
Balance at 30 June 2023
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:
Furniture, computer equipment
3-7 years
The residual values, useful lives and
depreciation methods are reviewed,
and adjusted if appropriate, at each
reporting date.
Consolidated
2023
$
2022
$
184,083
184,083
(184,083)
(184,083)
-
-
32,080
32,080
(20,954)
(14,538)
11,126
17,542
11,126
17,542
Computer
equipment
$
16,525
6,372
(5,355)
17,542
(6,416)
Total
$
16,525
6,372
(5,355)
17,542
(6,416)
11,126
11,126
41
NOTE 12. NON-CURRENT ASSETS – RIGHT-OF-USE ASSETS
The Consolidated Entity has a lease
arrangement for office space. In June 2022,
the lease was renewed for a three-year
period from 1 June 2022 to 31 May 2025
with no further option to extend. 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
2023
$
2022
$
516,286
516,286
(347,329)
(259,177)
168,957
257,109
Office space
– right-of-use
$
79,156
264,444
(86,491)
257,109
(88,152)
Total
$
79,156
264,444
(86,491)
257,109
(88,152)
168,957
168,957
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 2023.
Consolidated
Balance at 1 July 2021
Additions
Depreciation expense
Balance at 30 June 2022
Depreciation expense
Balance at 30 June 2023
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.
42
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 2021
Amortisation expense
Balance at 30 June 2022
Amortisation expense
Balance at 30 June 2023
ACCOUNTING POLICY FOR
INTANGIBLE ASSETS
Intangible assets acquired measured at
cost and are subsequently measured at
cost less amortisation and any impairment.
The gains or losses recognised in profit
or loss arising from the derecognition of
intangible assets are measured as the
difference between net disposal proceeds
and the carrying amount of the intangible
asset. The method and useful lives of
finite life intangible assets are reviewed
annually. Changes in the expected pattern
of consumption or useful life are accounted
for prospectively by changing the
amortisation method or period.
SOFTWARE
Significant costs associated with software
are deferred and amortised on a straight-
line basis over the period of their expected
benefit, being their finite life of 5 years.
Consolidated
2023
$
2022
$
364,791
364,791
(342,753)
(317,579)
22,038
47,212
Software
$
Total
$
76,641
76,641
(29,429)
(29,429)
47,212
47,212
(25,174)
(25,174)
22,038
22,038
43
NOTE 14. NON-CURRENT ASSETS – EXPLORATION AND EVALUATION
Exploration and evaluation expenditure
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 2021
Additions during the year
Balance at 30 June 2022
Additions during the year
Amount de-recognised on farm-out (Note 5)
Consolidated
2023
$
2022
$
7,095,490
6,207,257
Area of interest
T/49P
Area of interest
VIC/P74
Area of interest
WA-527-P
Area of interest
VIC/P79
$
$
$
4,017,578
342,452
4,360,030
477,821
-
524,950
38,309
563,259
102,499
-
832,071
327,418
1,159,489
250,371
Total
$
5,374,599
$
-
124,479
832,658
124,479
337,277
6,207,257
1,167,968
-
(279,735)
(279,735)
Balance at 30 June 2023
4,837,851
665,758
1,409,860
182,021
7,095,490
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, WA-527-P in Western
Australia and VIC/P79, an offshore
exploration permit in the Otway Basin.
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.
The Consolidated Entity has carried out an
impairment review of the carrying amount
of its exploration expenditure in relation
to VIC/P74, T/49P, WA-527-P and VIC/P79
following the end of the financial year as
at 30 June 2023. Based on the review no
impairments indicators 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 farminor as a gain on
disposal. Please refer to note 29 for further
information on the Consolidated Entity’s
farm-out arrangements.
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.
44
NOTE 15. CURRENT LIABILITIES – TRADE AND OTHER PAYABLES
Trade payables
Research and development tax grant
Sundry payables and accrued expenses
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.
NOTE 16. CURRENT LIABILITIES – EMPLOYEE BENEFITS
Annual leave
Long service leave
Employee benefits
AMOUNTS NOT EXPECTED TO
BE SETTLED WITHIN THE NEXT
12 MONTHS
The current provision for long service leave
includes all unconditional entitlements
where employees have completed the
required period of service and also those
where employees are entitled to pro-rata
payments in certain circumstances. The
entire amount is presented as current,
since the company does not have an
unconditional right to defer settlement.
ACCOUNTING POLICY FOR
EMPLOYEE BENEFITS
Short-term employee benefits
Liabilities for wages and salaries, including
non-monetary benefits, annual leave, long
service leave and accumulating sick 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. Non-accumulating
sick leave is expensed to profit or loss when
incurred.
Consolidated
2022
$
119,505
695,894
109,856
2023
$
220,386
-
107,100
327,486
925,255
Consolidated
2023
$
2022
$
66,055
69,769
149,024
134,591
19,554
24,084
234,633
228,444
45
NOTE 17. NON-CURRENT LIABILITIES – EMPLOYEE BENEFITS
Long service leave
Consolidated
2023
$
2022
$
4,910
1,916
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
2023
Shares
2022
Shares
2023
$
2022
$
Consolidated
Ordinary shares – fully paid
265,373,557
265,188,372
55,483,678
55,483,678
Date
Shares
$
01 July 2021
265,188,372
55,483,678
30 June 2022
265,188,372
55,483,678
12 May 2023
185,185
-
30 June 2023
265,373,557
55,483,678
ACCOUNTING POLICY FOR
ISSUED CAPITAL
Ordinary shares are classified as equity.
Incremental costs directly attributable
to the issue of new shares or options are
shown in equity as a deduction, net of tax,
from the proceeds.
Movements in ordinary share capital
Details
Balance
Balance
Shares issued upon exercise of options
Balance
ORDINARY SHARES
CAPITAL RISK MANAGEMENT
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.
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 while
achieving the exploration objectives.
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.
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 2022
Annual Report.
46
NOTE 19. EQUITY – DIVIDENDS
There were no dividends paid or declared
during the current or previous financial year.
ACCOUNTING POLICY FOR
DIVIDENDS
The Consolidated Entity does not have
franking credits available for subsequent
financial years.
Dividends are recognised when declared
during the financial year and no longer at
the discretion of the Company.
NOTE 20. LEASE LIABILITIES
Lease liabilities
Current lease liabilities
Non-current lease liabilities
Total lease liabilities
Lease liability maturity analysis – contractual undiscounted cash flows
Less than one year
Two to five years
Total undiscounted lease liabilities
LEASE LIABILITY FINANCE
COSTS
ACCOUNTING POLICY FOR
LEASE LIABILITIES
During the year ended 30 June 2023,
the Consolidated Entity incurred interest
charges of $16,806, as disclosed in note 6.
LEASE LIABILITY OUTFLOWS
During the year ended 30 June 2023, lease
liability related cash outflows was $76,013
as disclosed in the statement of cashflows.
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.
Consolidated
2023
$
2022
$
93,763
96,267
75,488
190,555
190,030
266,043
Consolidated
2023
104,397
2022
92,045
99,194
203,591
203,591
295,636
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.
47
NOTE 21. FINANCIAL INSTRUMENTS
Risk management is carried out by senior
executives 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. Senior executives, evaluates
and manages the financial risks within the
Consolidated Entity's operating units as per
the approved policies. Results are reported
to the Board periodically.
FINANCIAL RISK MANAGEMENT
OBJECTIVES
The Consolidated Entity's activities expose
it to a variety of financial risks: liquidity
risk, market risk (including foreign currency
risk and interest rate risk) and credit risk.
The Consolidated Entity's overall risk
management program focuses managing
liquidity risk 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 forecasting cash flows to manage
liquidity risk, sensitivity analysis in the
case of interest rate and foreign exchange
ageing analysis for credit risk.
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.
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.
Consolidated – 2023
% change
Effect on
profit after tax
Effect
on equity
% change
Effect on
profit after tax
Effect
on equity
AUD strengthened
AUD weakened
US dollar
10%
(158,662)
(158,662)
10%
209,863
209,863
Consolidated – 2022
% change
Effect on
profit after tax
Effect
on equity
% change
Effect on
profit after tax
Effect
on equity
AUD strengthened
AUD weakened
US dollar
10%
2,117
2,117
10%
(2,587)
(2,587)
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.
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. Movements in interest rates are not
material to the financial statements at the
respective reporting dates.
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’s operations not resulted in material
trade or other receivables at the reporting
date. The credit risk on liquid funds and
financial instruments are limited because
the counterparties are banks with high
credit-ratings assigned by international
credit rating agencies. The Consolidated
Entity measures credit risk on a fair value
basis. 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.
LIQUIDITY RISK
Liquidity risk is the risk that the
Consolidated Entity will not be able to pay
its debts as and when they fall due. The
Consolidated Entity has no borrowings at
reporting date and the Directors ensure
that the cash on hand is sufficient to meet
the commitments and the Consolidated
Entity be able to pay debts as and when
they become due and payable.
Operating cash flows are used to maintain
and expand the Consolidated Entity’s
assets. The Consolidated Entity manages
liquidity risk by monitoring forecast cash
flows and ensuring that adequate cash
and also through assessment of available
funding to identify risks to the cash position
of the business.
48
Weighted
average
interest rate
1 year
or less
Between
1 and 2 years
Between
2 and 5 years
Consolidated – 2023
Non-derivatives
Non-interest bearing
Trade and other payables
Interest-bearing – fixed rate
Lease liability
Total non-derivatives
Consolidated – 2022
Non-derivatives
Non-interest bearing
%
-
$
327,486
$
-
7.50%
104,397
431,883
99,194
99,194
Trade and other payables
-
925,255
-
$
-
-
-
-
Remaining
contractual
maturities
$
327,486
203,591
531,077
925,255
Interest-bearing – fixed rate
Lease liability
Total non-derivatives
The cash flows in the maturity analysis
above are not expected to occur
significantly earlier than contractually
disclosed above.
7.50%
92,045
1,017,300
104,397
104,397
99,194
99,194
295,636
1,220,891
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
Executive Chairman
Mr Ian Tchacos
Non-Executive Director
Mr Leo De Maria Non-Executive Director
Mr Trevor Slater
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
Share-based payments
Consolidated
2023
$
2022
$
460,111
455,967
40,130
34,044
7,782
(545)
8,893
5,180
507,478
504,084
49
NOTE 23. REMUNERATION OF AUDITORS
During the financial year the following fees
were paid or payable for services provided
by RSM Australia Partners and Grant
Thornton Audit Pty Ltd (resigned as auditor
on 19 June 2023) (2022: Grant Thornton
Audit Pty Ltd), the auditor of the Company:
Audit or review of the financial statements
RSM Australia Partners (Audit fees at 30 June 2023)
Grant Thornton Audit Pty Ltd (Audit and review fees at 31 December 2022 and 30 June 2022)
Other services – RSM Australia Partners
Preparation of the tax return
Other taxation services
NOTE 24. CONTINGENT LIABILITIES
The Consolidated Entity provided a security
deposit of $48,827 (2022: $48,827). The
Consolidated Entity will forgo this deposit if
conditions of return are not met.
There were no other contingent liabilities as
at 30 June 2023.
NOTE 25. COMMITMENTS
Exploration Licenses – Commitments for Expenditure
Committed at the reporting date but not recognised as liabilities, payable:
Within one year
Two to five years
Consolidated
2022
$
-
58,500
2023
$
40,000
30,500
70,500
58,500
8,750
12,900
21,650
-
-
-
Consolidated
2023
$
2022
$
4,610,000
4,660,000
40,000
80,000
4,650,000
4,740,000
In order to maintain current rights of tenure
to exploration tenements, the Consolidated
Entity is required to outlay rentals and to
meet the minimum work requirements
and associated indicative expenditure of
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.
VIC/P74
The Company holds 100% interest in VIC/
P74 Offshore Gippsland Basin in Victoria.
Exploration commitments related VIC/P74’s
the primary term, year 1-3 were met.
currently in progress at the date of this
report. Subject to regulatory approvals,
aspects of the secondary work program
including timing of year 4 commitments
likely to be altered to a future date.
Commitments from year 4 onwards
are confirmed on a year-by-year basis
dependent on the Company agreeing to
proceed. The commitment table above
includes $1.5 million associated with
tenement year 4, which ended on 25 July
2023. However, timing of this commitment
is expected to change as a variation of
Title Conditions’ application to NOPTA is
If the Company was to proceed beyond year
5 in relation to VIC/P74, the current indicative
expenditure commitment for Years 5-6 is
currently gross $40.6 million, and this would
be occurring in 2023-2025 years. However, as
noted above timing of these commitments
are likely to be altered to a future date
subject to regulatory approvals.
50
WA-527-P
The Company holds 100% interest in the
WA-527-P Exploration Permit, which covers
6,500km2 of the offshore Bedout Sub-basin.
During the year, NOPTA approved a
12-month suspension of the WA-527-P
permit condition in respect of the Permit
Year 1-3 work program commitment with a
corresponding 12-month extension of the
WA 527-P permit team. Accordingly, the
primary term (Permit Year 1-3) will now end
on 28 December 2023 and the permit term
will end on 28 December 2026.
The commitment table above includes
$3.06 million for indicative expenditure
in the year 3 amounting, which ends
on 28 December 2023. The acquisition
and processing of 510km2 of 3D seismic
data, the Sauropod MC3D seismic survey,
forms a minimum work commitment
for the primary term (Years 1-3) work
program of WA-527-P. The Company
progressed preparations for the acquisition
of the Sauropod MC3D, working with
geophysical service company, CGG, who
is preparing the Environmental Plan (EP).
The EP under preparation will cover a
two-year acquisition window extending
from January-May (inclusive) 2024
or 2025, as recommended by NOPTA
(National Offshore Petroleum Titles
Administrator). The EP delineates the
same acquisition parameters as have been
previously proposed, with a maximum
full-fold acquisition area of 3447km2. The
survey acquisition is anticipated to take
approximately two months.
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
2023-2026 years. However, as noted above
timing of these commitments are likely
to be altered to a future date subject to
regulatory approvals.
T/49P
The Consolidated Entity holds 20%
interest in the T/49P Exploration Permit
and ConocoPhillips Australia SH1 Pty Ltd
holds 80% interest in the Permit and is
Operator on behalf of the Joint Venture.
The commitments above do 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, as
per Joint Operating Agreement. Under the
terms of Joint Operating Agreement, the
Company will contribute 10% of the Joint
Venture's expenses until ConocoPhillips
Australia has completed an exploration
well or spent at least US$30 million toward
drilling of an exploration well (which are
excluded from the commitment table above).
On 16 March 2021, NOPTA issued a variation
notice to the Exploration Permit T/49P, as a
result of which seismic acquisition and drill
planning works in Year 5 and the drilling
of an exploration well in Year 6 have been
deferred to the year ended 21 August 2023
and 21 August 2024, respectively.
NOTE 26. RELATED PARTY TRANSACTIONS
Parent entity
3D Oil Limited is the parent entity.
Subsidiaries
Interests in subsidiaries are set out in note 28.
Joint operations
Interests in joint operations are set out in
note 29.
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
During the year, the Company issued
185,185 options over ordinary shares with
a fair value of $9,815 to Mr T Slater, a Non-
Executive Director of the Company as part
of compensation for the consulting services
offered to the Company.
During the year, the Company paid $25,667
for consulting services to NB Resources
Ltd, an entity associated with Mr T Slater, a
Non-Executive Director of the Company.
There were no other transactions with
related parties during the current and
previous financial year.
VIC/P79
The Consolidated Entity holds 20% interest
in the VIC/P79 Exploration Permit and
ConocoPhillips Australia SH2 Pty Ltd holds
80% interest in the Permit and is Operator
on behalf of the Joint Venture.
The above commitment note include 10%
of year one (1) to three (3) commitment,
which the Company expects to contribute
under the terms of Joint Venture
Agreement. In addition, under the terms
of Joint Venture Agreement, the Company
will contribute 10% of the Joint Venture's
expenses (which are excluded from the
commitment table above).
It is expected that the ConocoPhillips
Australia will also undertake to drill an
exploration well as required by the Permit’s
Primary Term minimum work commitment
(currently required by February 2025).
The Company will be carried for up to
USD$35 million in well costs, above which
it will contribute 20% of costs in line with
its interest in the Exploration Permit.
Commitments from year 4 onwards
are confirmed on a year-by-year basis
dependent on the Joint Venture agreeing
to proceed. If the Company and farm-in
partner, ConocoPhillips Australia Pty Ltd
was to proceed beyond year 4 in relation to
VIC/P79, the current indicative expenditure
commitment for Years 4-6 is currently
gross $12.8 million and this would be
occurring in 2025-2028 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.
51
2023
$
Parent
2022
$
3,413,944
(1,147,188)
3,413,944
(1,147,188)
2023
$
Parent
2022
$
3,364,630
1,274,029
7,910,794
6,816,818
506,858
1,229,187
757,059
3,093,744
55,483,678
55,483,678
1,823
17,559
(48,331,766)
(51,778,163)
7,153,735
3,723,074
NOTE 27. PARENT ENTITY INFORMATION
Set out below is the supplementary
information about the parent entity.
Statement of profit or loss and other
comprehensive income
Profit/(loss) after income tax
Total comprehensive income/(loss)
Statement of financial position
Total current assets
Total assets
Total current liabilities
Total liabilities
Equity
Issued capital
Share-based payments reserve
Accumulated losses
Total equity
Guarantees entered into by the parent
entity in relation to the debts of its
subsidiaries
The parent entity had no guarantees in
relation to the debts of its subsidiaries as at
30 June 2023 and 30 June 2022.
Contingent liabilities
The parent entity had no contingent liabilities
as at 30 June 2023 and 30 June 2022.
Capital commitments –
Property, plant and equipment
Other than the commitments disclosed
in note 25, the parent entity had no
capital commitments for property,
plant and equipment as at 30 June 2023
and 30 June 2022.
52
Significant accounting policies
The accounting policies of the parent
entity are consistent with those of the
Consolidated Entity, as disclosed in note 2,
except for the following:
— Investments in subsidiaries are
accounted for at cost, less any
impairment, in the parent entity.
— Investments in associates are accounted
for at cost, less any impairment, in the
parent entity.
— Dividends received from subsidiaries
are recognised as other income by the
parent entity and its receipt may be
an indicator of an impairment of the
investment.
— Significant estimates and judgement –
recoverability of loan to subsidiary. No
objective indicators of impairment as
the current best estimates of potential
resources indicate a quantity of oil/gas
that would allow recovery of the amount
due in full.
NOTE 28. INTERESTS IN SUBSIDIARIES
The consolidated financial statements
incorporate the assets, liabilities and
results of the following subsidiary in
accordance with the accounting policy
described in note 2:
Name
Principal place of business / Country of incorporation
3D Oil T49P Pty Ltd
Australia
NOTE 29. 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/P79, Otway Basin, offshore Victoria**
Australia
* On 21 September 2022, the Company has received regulatory approval for the Transfer
of Title of Carnarvon Hibiscus’ 50% participating interest in VIC/P74 to the Company. The
Company is now 100% titleholder of VIC/P74.
** On 16 March 2023, the Consolidated Entity announced the completion of the VIC/P79
farmout to ConocoPhillips Australia, following NOPTA approval of the Transfer of Title of
80% interest in VIC/P79 exploration permit to ConocoPhillips Australia SH2 Pty Ltd. 3D Oil
has received a cash payment of USD$3million (approximately AUD $4.48 million).
Ownership interest
2023
%
2022
%
100.00%
100.00%
Ownership interest
2023
%
2022
%
20.00%
100.00%
20.00%
50.00%
20.00%
100.00%
53
NOTE 30. RECONCILIATION OF PROFIT/(LOSS) AFTER
INCOME TAX TO NET CASH USED IN OPERATING ACTIVITIES
Profit/(loss) after income tax expense for the year
Adjustments for:
Depreciation and amortisation
Gain from farm-out arrangement
Share-based payments
Unrealised gain on foreign currency translation
Change in operating assets and liabilities:
Decrease/(increase) in other receivables
Decrease/(increase) in prepayments
Decrease in trade and other payables
Increase in employee benefits
Net cash used in operating activities
NOTE 31. EARNING / (LOSS) LOSS PER SHARE
Consolidated
2023
$
2022
$
3,414,258
(1,147,179)
119,717
112,920
(4,188,464)
-
16,753
11,886
(21,313)
-
3,239
(40,977)
(3,875)
41,924
(718,060)
(19,808)
9,184
6,658
(1,405,663)
(997,474)
Consolidated
2023
$
2022
$
Profit/(loss) after income tax attributable to the owners of 3D Oil Limited
3,414,258
(1,147,179)
Weighted average number of ordinary shares used in calculating basic earnings/(loss) per share
265,213,740
265,188,372
Adjustments for calculation of diluted earnings per share:
Performance rights
431,000
-
Number
Number
Weighted average number of ordinary shares used in calculating diluted earnings/(loss) per share
265,644,740
265,188,372
Cents
1.287
1.285
Cents
(0.433)
(0.433)
Basic earnings/(loss) per share
Diluted earnings/(loss) per share
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.
54
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 16 December 2020, the Consolidated
Entity issued of 225,806 Performance
Rights to Directors of the Company
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. These
performance rights were lapsed during the
year, as the conditions attached with these
securities were not met or have become
incapable of being satisfied.
On 15 February 2021, the Consolidated
Entity issued 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. 298,387 of these performance rights
expired in the year ended June 2022 and
the balance 217,741 rights expired during the
year ended June 2023. These performance
rights lapsed as the conditions attached
with these securities were not met or have
become incapable of being satisfied.
On 5 May 2023, the Company issued
431,000 Performance Rights to eligible
employees at nil exercise price, subject
to certain vesting conditions set out in
the corresponding invitation letter in
accordance with the Company's Equity
Incentive Plan. The Performance Rights
vest subject to both the 5-day VWAP being
equal to or greater than $0.07 (7 cents),
at any time between grant and 9 March
2026, and continued employment up until
9 March 2026.
Set out below are summaries of
performance rights granted to directors
and employees:
2023
Grant date
Expiry date
Exercise price
Balance at the
start of the year
Granted
Exercised
Expired/
forfeited/other
Balance at the
end of the year
17/11/2020
17/11/2023
28/01/2021
28/01/2024
29/01/2021
29/01/2024
01/02/2021
01/02/2024
05/03/2023
05/03/2026
$0.000
$0.000
$0.000
$0.000
$0.000
225,806
80,645
80,645
56,451
-
-
-
-
-
431,000
443,547
431,000
-
-
-
-
-
-
(225,806)
(80,645)
(80,645)
(56,451)
-
(443,547)
-
-
-
-
431,000
431,000
2022
Grant date
Expiry date
Exercise price
Balance at the
start of the year
Granted
Exercised
Expired/
forfeited/other
Balance at the
end of the year
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
$0.000
$0.000
$0.000
$0.000
$0.000
225,806
80,645
80,645
112,903
241,935
741,934
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(56,452)
(241,935)
(298,387)
225,806
80,645
80,645
56,451
-
443,547
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
Share price
at grant date
05/03/2023
05/03/2026
$0.064
Exercise
price
$0.000
Expected
volatility
82.890%
Dividend
yield
Risk-free
interest rate
Fair value at
grant date
-
3.146%
$0.062
The weighted average remaining
contractual life of performance rights
at 30 June 2023 is 3 years.
55
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
Geometric Brownian Motion model and
Monte Carlo simulation 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.
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.
NOTE 33. EVENTS AFTER THE REPORTING PERIOD
No matter or circumstance has arisen
since 30 June 2023 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.
56
DIRECTORS' DECLARATION
30 June 2023
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 2023 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
28 September 2023
Melbourne
57
RSM Australia Partners
Level 21, 55 Collins Street Melbourne VIC 3000
PO Box 248 Collins Street West VIC 8007
T +61 (0) 3 9286 8000
F +61 (0) 3 9286 8199
www.rsm.com.au
INDEPENDENT AUDITOR’S REPORT
To the Directors of 3D Oil Limited
Opinion
We have audited the financial report of 3D Oil Limited (the Company), and its subsidiaries (the Group), which
comprises the consolidated statement of financial position as at 30 June 2023, the consolidated statement of profit
or loss and other comprehensive income, the consolidated statement of changes in equity and the 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 the Group is in accordance with the Corporations Act 2001,
including:
(i)
(ii)
giving a true and fair view of the Group’s financial position as at 30 June 2023 and of its financial
performance for the year then ended; and
complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of
our report. We are independent of the Group in accordance with the auditor independence requirements of the
Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s
APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial
report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been given to
the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor’s
report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Material Uncertainty Related to Going Concern
We draw attention to Note 2 in the financial report, which indicates that the Group incurred operating cash outflows
of $1.4m during the ended 30 June 2023 and. As stated in Note 2, these events or conditions, along with other
matters as set forth in Note 2, indicate that a material uncertainty exists that may cast significant doubt on the
Group’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.
THE POWER OF BEING UNDERSTOOD
AUDIT | TAX | CONSULTING
RSM Australia Partners is a member of the RSM network and trades as RSM. RSM is the trading name used by the members of the RSM network. Each member of the
RSM network is an independent accounting and consulting firm which practices in its own right. The RSM network is not itself a separate legal entity in any jurisdiction.
RSM Australia Partners ABN 36 965 185 036
Liability limited by a scheme approved under Professional Standards Legislation
58
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of
the financial report of the current period. These matters were addressed in the context of our audit of the financial
report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
In addition to the matter described in the Material Uncertainty Related to Going Concern section, we have
determined the matters described below to be the key audit matters to be communicated in our report.
Key Audit Matter
Valuation of Exploration and Evaluation assets
Refer to Note 14 in the financial statements
the Group held capitalised
At 30 June 2023
exploration and evaluation assets (“E&E Asset”) of
$7.1 million. This represents 66% of the total assets
of the Group at that date.
We consider the carrying amount of these assets to
be a key audit matter, under AASB 6 Exploration for
and Evaluation of Mineral Resources, due to the
significant management
involved,
including:
judgments
• Whether the exploration and evaluation spend
can be associated with finding specific mineral
resources, and
that
expenditure is allocated to an area of interest in
line with AASB 6;
the basis on which
• The Group's ability and intention to continue to
explore the area;
• The existence of any impairment indicators, and
if so, those applied to determine and quantify any
impairment loss; and
Whether exploration activities have reached the
stage at which the existence of an economically
recoverable reserve may be determined.
How our audit addressed this matter
Our audit procedures included:
• Obtaining evidence that the Group has valid rights
to explore in the specific areas of interest;
• Critically assessing and evaluating management’s
impairment
indicators of
that no
assessment
existed;
• Agreeing a sample of the additions to capitalised
exploration assets to supporting documentation, to
confirm they were capitalised in line with the
measurement and other criteria of the Group's
policy and AASB 6;
• Holding discussions with, and making enquiries of,
the Group’s management team, reviewing of the
Group’s ASX announcements, and other relevant
documentation;
• Confirming the existence of plans to determine that
the Group will incur substantive expenditure on
further exploration for and evaluation of mineral
resources in the specific areas of interest;
• Confirming the Group's intention to carry out
significant exploration and evaluation activity in the
relevant exploration area, through enquiries, and
by assessing
future cashflow
the Group's
forecasts, and reviewing the Group's business and
financial strategy; and
• Confirming that management has not resolved to
discontinue activities in the specific area of interest.
59
Key Audit Matters (continued)
Key Audit Matter
Accounting for new Farmout agreement
Refer to Note 5 in the financial statements
During the financial year ended 30 June 2023, 3D Oil
executed a farmout arrangement with ConocoPhillips
on the sale of 80% interest in the VIC/P79 tenement.
This arrangement resulted in a cash consideration of
USD$3 million (approximately A$4.4 million as at the
date of payment received).
ConocoPhillips Australia have an obligation for a
US$35 million carry towards drilling costs of one
exploration well. Above the US$35 million cap, 3D Oil
will contribute 20% of costs in line with its interest.
3D Oil have accounted for this at as a Joint Operation
under AASB 11 Joint Arrangements whereby cash
consideration received directly from ConocoPhillips
Australia is credited against the cost previously
capitalised in relation to the whole interest with any
excess accounted as a gain on disposal.
We have considered the accounting treatment to be
a key audit matter due to the materiality and
complexities of the arrangement.
Other Information
How our audit addressed this matter
Our audit procedures included:
• Reviewing Joint Operating Agreement and
Farmout Arrangement executed with farmee;
• Reviewing
relevant Australian Accounting
Standards and other accounting resources to
ensure correct
farmout
arrangement;
treatment of
the
• Critically
and
assessing
evaluating
and
accounting
management’s
assessment of the accounting treatment of
farmout income;
policy
• Holding discussions with, and making
enquiries of, the Group’s management team,
reviewing of the Group’s ASX announcements,
and other relevant documentation; and
• Confirming that management has adequately
farmout
and accurately disclosed
arrangement in the financial statements.
the
The directors are responsible for the other information. The other information comprises the information included
in the Group's annual report for the year ended 30 June 2023, but does not include the financial report and the
auditor's report thereon.
Our opinion on the financial report does not cover the other information and accordingly 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.
60
Responsibilities of the Directors for the Financial Report
The directors of the Group 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 ability of the Group 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 Group or to cease operations, or have no realistic
alternative but to do so.
Auditor's Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably
be expected to influence the economic decisions of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing and
Assurance Standards Board website at: https://www.auasb.gov.au/admin/file/content102/c3/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 the directors' report for the year ended 30 June 2023.
In our opinion, the Remuneration Report of 3D Oil Limited, for the year ended 30 June 2023, 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.
RSM AUSTRALIA PARTNERS
J S CROALL
Partner
Dated: 28 September 2023
Melbourne, Victoria
61
Ordinary shares Ordinary shares
Number of
holders
%
of total
shares issued
%
performance
rights
Number of
performance
rights
Number of
performance
holders
total shares
issued
14,042
373,858
1,067,102
18,755,146
0.01
0.14
0.40
7.07
92.38
245,163,409
-
-
-
-
-
-
19.95
80.05
86,000
345,000
100.00
265,373,557
100.00
431,000
0.34
915,002
-
-
SHAREHOLDER INFORMATION
30 June 2023
The shareholder information set out below
was applicable as at 12 September 2023.
DISTRIBUTION OF EQUITABLE
SECURITIES
Analysis of number of equitable security
holders by size of holding:
50
112
124
447
247
980
232
1 to 1,000
1,001 to 5,000
5,001 to 10,000
10,001 to 100,000
100,001 and over
Holding less than a marketable parcel
EQUITY SECURITY HOLDERS
Twenty largest quoted equity
security holders
The names of the twenty largest security
holders of quoted equity securities are
listed below:
MR NOEL NEWELL
OCEANIA HIBISCUS SDN BHD\C
MR JOHN PHILIP DANIELS
BILL HOPPER
CITICORP NOMINEES PTY LIMITED
NORTHERN BUSINESS PLANNING CENTRE PTY LTD
SANLIRRA PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
BNP PARIBAS NOMS PTY LTD
MR TAI TRAN
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED - A/C 2
PENGOLD PTY LTD
VIN NAIDU + WENDY NAIDU
MR RICHARD JOHN LOVERIDGE + MRS KATRINA LOVERIDGE
MR GIOVANNI MONTELEONE + MRS FRANCES MONTELEONE
MR RUSSELL BARWICK
EILIE SUNSHINE PTY LTD
MR MICHAEL ANDREW JAKET
MR PETER ALARIC HAYES
MR ALAN ROBERT BLAKENEY
62
-
-
-
1.00
1.00
1.00
-
Ordinary shares
% of total
shares issued
14.55
11.67
4.50
2.44
2.16
1.95
1.88
1.88
1.80
1.70
1.54
1.40
1.07
1.04
0.96
0.94
0.94
0.85
0.84
0.80
Number held
38,604,620
30,963,000
11,929,628
6,475,000
5,740,449
5,169,347
5,000,000
4,976,886
4,784,650
4,500,000
4,088,895
3,714,000
2,837,500
2,771,419
2,550,000
2,500,000
2,500,000
2,250,000
2,237,000
2,124,975
145,717,369
54.91
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
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.
CORPORATE GOVERNANCE
STATEMENT
The Company’s 2023 Corporate
Governance Statement is available on the
Company’s website at:
https://www.3doil.com.au/about/
corporate-governance
Performance rights
There are no voting rights attached to
performance rights.
There are no other classes of equity
securities.
PETROLEUM TENEMENT HOLDINGS
Tenement and Location
VIC/P79 Offshore Otway Basin, VIC
T/49P Offshore Otway Basin, TAS
WA-527-P Offshore Roebuck Basin, WA
VIC/P74 Offshore Gippsland Basin, VIC
GSEL759 Otway Basin, SA
Number on issue
Number of holders
431,000
2
Number held
% of total shares issued
Ordinary shares
44,875,960
30,963,000
16.91
11.67
ANNUAL GENERAL MEETING
3D Oil Limited advises that its Annual
General Meeting will be held on Friday,
24 November 2023. 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 (AEDT)
on 13 October 2023.
Beneficial interest
%
20%
20%
100%
100%
100%
63
CORPORATE
DIRECTORY
30 June 2023
DIRECTORS
Noel Newell (Executive Chairman)
Ian Tchacos (Non-Executive Director)
Leo De Maria (Non-Executive Director)
Trevor Slater (Non-Executive Director)
COMPANY SECRETARY
Stefan Ross
REGISTERED OFFICE
Level 18, 41 Exhibition Street
Melbourne, VIC 3000
Telephone: +61 3 9650 9866
PRINCIPAL PLACE OF BUSINESS
Level 18, 41 Exhibition Street
Melbourne, VIC 3000
Telephone: +61 3 9650 9866
SHARE REGISTER
Computershare Investor Services
Pty Limited
452 Johnston Street
Abbotsford, Victoria 3067
Telephone: 1300 850 505
(within Australia)
Telephone: +61 3 9415 4000
(outside Australia)
AUDITOR
RSM Australia Partners
Level 21
55 Collins 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
64
Annual Report 2023
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